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2012 07 03 CCp� tT] S OF Tt14'94' City Council agendas and staff reports are available on the City's web page: www.la-quinta.org CITY COUNCIL AGENDA CITY COUNCIL CHAMBERS 78-495 Calle Tampico, La Quinta, California Regular Meeting TUESDAY, JULY 3, 2012 3:30 p.m. Closed Session 1 4:00 p.m. Open Session Beginning Resolution No. 2012-038 CALL TO ORDER Ordinance No. 500 Roll Call: Council Members:' Evans, Franklin, Henderson, Osborne and Mayor Adolph PUBLIC COMMENT At this time, members of the public may address the City Council on any matter not listed on the agenda. Please complete a "request to speak" form and limit your comments to three minutes. CLOSED SESSION NOTE: Time permitting the City Council may conduct Closed Session discussions during the dinner recess. Persons identified as negotiating parties are not invited into the Closed Session meeting when acquisition of real property is considered. 1. CONFERENCE WITH THE CITY ATTORNEY, ANTICIPATED LITIGATION, INITIATION OF LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(c) (TWO MATTERS) RECESS TO CLOSED SESSION RECONVENE AT 4:00 P.M. PLEDGE OF ALLEGIANCE CITY COUNCIL AGENDA 1 JULY 3, 2012 e _.. 001 PUBLIC COMMENT At this time members of the public may address the City Council on any matter not listed on the agenda. Please complete a "request to speak" form and limit your comments to three minutes. CONFIRMATION OF AGENDA PRESENTATIONS 1. PRESENTATION OF THE TOM GENOVESE MEMORIAL SCHOLARSHIP BY THE COACHELLA VALLEY ECONOMIC PARTNERSHIP WRITTEN COMMUNICATIONS — NONE APPROVAL OF MINUTES 1. APPROVAL OF MINUTES OF JUNE 19, 2012 CONSENT CALENDAR NOTE: Consent Calendar items are routine in nature and can be approved by one motion. 1. APPROVAL OF DEMAND REGISTER DATED JULY 3, 2012 2. ADOPTION OF A RESOLUTION APPROVING THE FISCAL YEAR 2012/2013 CITY OF LA QUINTA BUDGET AND ESTABLISHING THE CITY'S APPROPRIATION LIMIT 3. DENIAL OF CLAIM FOR DAMAGES FILED BY DUANE ERICKSON - DATE OF LOSS: APRIL 26, 2012 4. APPROVAL OF SECOND READING AND ADOPTION OF ORDINANCE NO. 499 AMENDING THE OFFICIAL ZONING MAP BY CHANGING TWO DEVELOPED PUBLIC PROPERTIES FROM VILLAGE COMMERCIAL TO MAJOR COMMUNITY FACILITIES. PROPERTY LOCATIONS: LA QUINTA MUSEUM, 77885 AVENIDA MONTEZUMA AND THE VILLAGE PARKING LOT, NW CORNER OF AVENIDA MONTEZUMA/BERMUDAS. APPLICANT: CITY OF LA QUINTA 5. APPROVAL OF A REQUEST FOR PROPOSALS FOR THE PREPARATION OF THE PRELIMINARY ASSESSMENT FORMATION REPORT FOR SEVERAL NORTH LA QUINTA SUBDIVISIONS CURRENTLY RECEIVING SPECIAL BENEFIT u. ... 002 CITY COUNCIL AGENDA 2 JULY 3, 2012 6. APPROVAL OF A REQUEST FOR PROPOSALS TO OBTAIN PROFESSIONAL ENGINEERING SERVICES TO PREPARE THE PLANS, SPECIFICATIONS AND ESTIMATES FOR THE CALLE SINALOA/AVENUE 52 SIDEWALK IMPROVEMENTS, PROJECT 2011-08 7. AUTHORIZATION FOR OVERNIGHT TRAVEL FOR THE CITY MANAGER TO ATTEND THE 2012 LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE TO BE HELD SEPTEMBER 5-7, 2012 IN SAN DIEGO, CALIFORNIA 8. ADOPTION OF A RESOLUTION APPROVING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF LA QUINTA AND THE LA QUINTA CITY EMPLOYEES' ASSOCIATION FOR FISCAL YEARS 2012/2013 AND 2013/2014, AND ADOPTION OF A RESOLUTION FOR EMPLOYER PAID MEMBER CONTRIBUTIONS TO CALPERS PURSUANT TO GOVERNMENT CODE SECTION 20691 9. ADOPTION OF A RESOLUTION APPROVING A COST -OF -LIVING AND BENEFIT ADJUSTMENTS FOR MANAGEMENT, CONTRACT MANAGEMENT AND CONFIDENTIAL EMPLOYEES FOR FISCAL YEARS 2012/2013 AND 2013/2014 BUSINESS SESSION 1. CONSIDERATION OF AN ART DONATION FROM BENJAMIN ROSKER 2. CONSIDERATION OF A CONTRACT TO CONSTRUCT THE PM-10 STABILIZATION OF CITY -OWNED PROPERTIES, PROJECT 2011-12 3. CONSIDERATION OF AN UPDATED COOPERATIVE MARKETING PROGRAM FOR THE USE AND MARKETING AGREEMENT BY AND BETWEEN DESERT CLASSIC CHARITIES AND THE CITY OF LA QUINTA 4. CONSIDERATION OF A PROFESSIONAL SERVICES AGREEMENT WITH WILLDAN FINANCIAL FOR CITYWIDE PARK, OPEN SPACE AND TRAIL ASSESSMENT DISTRICT FORMATION 5. CONSIDERATION OF APPOINTMENT OF VOTING DELEGATE AND ALTERNATE TO THE 2012 LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE STUDY SESSION 1. DISCUSSION OF SILVERROCK RESORT VISION AND OPTIONS 003 CITY COUNCIL AGENDA 3 JULY 3, 2612 REPORTS AND INFORMATIONAL ITEMS 1. ANIMAL CAMPUS COMMISSION (FRANKLIN) 2. CITY COUNCIL AD HOC COMMITTEE REPORTS 3. CVAG COMMITTEE REPORTS 4. CHAMBER OF COMMERCE INFO EXCHANGE COMMITTEE (OSBORNE) 5. C.V. CONSERVATION COMMISSION (EVANS) 6. C.V. MOSQUITO AND VECTOR CONTROL DISTRICT (ROBERT COX) 7. C.V. MOUNTAINS CONSERVANCY (FRANKLIN). 8. C.V.W.D. JOINT WATER POLICY COMMITTEE (ADOLPH) 9. IID ENERGY CONSUMERS' ADVISORY COMMITTEE (OSBORNE) 10. JACQUELINE COCHRAN REGIONAL AIRPORT AUTHORITY (FRANKLIN) 11. LEAGUE OF CALIFORNIA CITIES (HENDERSON) 12. GREATER PALM SPRINGS CONVENTION & VISITORS BUREAU (EVANS) 13. 'PALM SPRINGS INTERNATIONAL AIRPORT COMMISSION (ROBERT TEAL) 14. RIVERSIDE COUNTY FREE LIBRARY ADVISORY COMMITTEE (DIANE GUNN) 15. RIVERSIDE COUNTY TRANSPORTATION COMMISSION (HENDERSON) 16. SUNLINE TRANSIT AGENCY/SUNLINE SERVICES GROUP (ADOLPH) 17. INVESTMENT ADVISORY BOARD MINUTES OF APRIL 11 AND MAY 9, 2012 DEPARTMENT REPORTS 1. CITY MANAGER 2. CITY ATTORNEY 3. CITY CLERK - NONE 4. BUILDING & SAFETY DEPARTMENT REPORT - NONE 5. COMMUNITY SERVICES DEPARTMENT REPORT - NONE 6. FINANCE DEPARTMENT REPORT - NONE 7. PLANNING DEPARTMENT REPORT - GENERAL PLAN UPDATE 8. PUBLIC WORKS DEPARTMENT REPORT - NONE 9. POLICE DEPARTMENT REPORT - NONE 10. FIRE DEPARTMENT QUARTERLY REPORT - NONE MAYOR'S AND COUNCIL MEMBERS' ITEMS - NONE PUBLIC HEARINGS - NONE NO PUBLIC HEARINGS ARE SCHEDULED, THEREFORE, THE CITY COUNCIL WILL ADJOURN AND NOT RECONVENE AT 7:00 P.M. UNLESS THERE ARE ITEMS FROM THE AFTERNOON SESSION THAT HAVE NOT BEEN CONSIDERED ADJOURNMENT CITY COUNCIL AGENDA 4 JULY 3, 20171"' - 004 The next regular 'meeting of the City Council will be held on July 17, 2012 commencing with closed session at 3:00 p.m. and open session at 4:00 p.m. in the City Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, Susan Maysels, Interim City Clerk of the City of La Quinta, do hereby declare that the foregoing agenda for the La Quinta City Council meeting was posted on the outside entry to the Council Chamber at 78-495 Calle Tampico and on the bulletin boards at 51-321 Avenida Bermudas and 78-630 Highway 1 1 1, on June 29, 2012. DATED: June 28, 2012 SUSAN MAYSELS, In rim City Clerk City of La Quinta, California Public Notices • The La Quinta City Council Chamber is handicapped accessible. If special equipment is needed for the hearing impaired, please call the City Clerk's Office at 777-7103, twenty-four (24) hours in advance of the meeting and accommodations will be made. • If special electronic equipment is needed to make presentations to the City Council, arrangement should be made in advance by contacting the City Clerk's Office at 777-7103. A one (1) week notice is required. • If background material is to be presented to the City Council during a City Council meeting, please be advised that eight (8) copies of all documents, exhibits, etc., must be supplied to the City Clerk for distribution. It is requested that this take place prior to the beginning of the meeting. • Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at the City Clerk counter at City Hall located at 78-495 Calle Tampico, La Quinta, California, 92253, during normal business hours. CITY COUNCIL AGENDA 5 „u- 005 JULY 3, 2012 Tit9p 4 4Q CITY SA/HA/FA MEETING DATE: JUIV 3, 2012 ITEM TITLE: Approval of Demand Register Dated July 3, 2012 Approve Demand Register Dated July 3, 2012 BACKGROUND AND OVERVIEW: Prepaid Warrants: Payable Warrants: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: I STUDY SESSION: PUBLIC HEARING: 96225 - 96245 } $204,159.57 96246 - 96281 } $225,779.81 Voids } $172.23- Wire Transfers} $200,465.96 P/R 36644 — 36650 } $196,237.12 P/R Tax Transfers } $53,086.79 96282 - 96379 } $355,467.82 $1,235,024.84 FISCAL IMPLICATIONS: Demand of Cash City $1,010,418.81 Demand of Cash -Successor Agency of RDA $224,606.03 Demand of Cash — HA $0.00 Respectfully submitted, John M. Falconer, Pinance Director °. _ 006 for submission by: City Manager 007 CITY OF LA QUINTA BANK TRANSACTIONS 6/13/12 - 6/26/12 O6/20/12 WIRE TRANSFER - LANDMARK $134,552.59 O6/22/12 WIRE TRANSFER - LQCEA $140.00 06/22/12 WIRE TRANSFER - PERS $54,446.10 06/22/12 WIRE TRANSFER - ICMA $9,994.67 06/26/12 WIRE TRANSFER - TASC $1,332.60 TOTAL WIRE TRANSFER OUT $200,465.96 -. i1 008 1� ,Oq W < O Z , QVi, W 1 W w 0 1 Q �OQ 1 1 LLQ , W S I 1 n r oul N O�1MM m �t �t met �TnNnmNM M P P oM M ow M cmN Y 1 m m -oV W NNPN my wz 1 , M M l w v MNMN Ill M mm M rPMbnb�1NN n P P Mb o OM M rNo SO , N N dim Il1o P P NMoobOOMo V �t �} �}Q P e�f 0` NM UO 1 ., M o P r �•, �t M b b M.•�Il1M MM N�t �i O N., M mr N z I Q 1 m r M M M N MM N PP P O o O b 1 1 O N I b , O , W f , Q O , s • >K r • a s a Y J J J J J J J J U 1 Q Q Q Q W 1 f F F O X 0 S I O O 0 zz M , U w 00 w N Y. m wC K M Oa OC O O OC r- N J Z. > O wM O O W O O M O 0 00 O ZF N 0, m q Hf O oc O J q O \ q O NN 0 wmw Z QQ z W z Q Z z V Z Z Z <000 Qp H.1 0 W 00 W UUfU W 0 W W , W W zz W X.J >N S1 1 Z > ww > »Q> >. > > 2 > JJ > 00 > Jm ON WM1 w Ff- womm OC 0 WW wM J w fL\ 01 3 WWOW v Q ww zz W=N e 01 z W W Q Q H Q 0 O O M Q Q Q Q Q Q 0 1 Q W W W= H W Q -Oq 33V13 •+ 6000QQQQQ W Qz mm ozo OG . � LL FO N G mm rPbW V .+MMMMMMMM M �t �} .•,V MMM N LL1 0 ZQ b Om OO.+N O ONNMOI(1l/ Wa mw M MM 0O MMM O MP �i �tQM m WNNMMgNM �fV �tm vvv X M MM M.,N., M MMMMMMMMM O MM MM .,MN W 1 M Off} NONM O ... 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Q Q W O 2 q r N a\ 0u xN Q z W U \ Z r w U x r O yi i > U LL J a* Q N w Wa OV J W N U o Q r W 1 U Q 2 P In m U 1 1I10 r z v Z W W O M J > O O as oa Ja q e IL o LL N W � \ O r o 2 q q l O r0 O w U m N 1 U U 1 W I Q rl 1 N 1 1 m J 1 r 0 W w 1 O O m U I m x a 1 UI Z Y U r 1 N W 1 2 N m 1 V 2 O 1 U Oz�1 V UO 1 0 q Uw o M 1 arm 1 lli, O QQaI awl > J J J 1 .0. m m 1 O ww 1 UO 1 n m N22=1 a WO . o m o\QQQI mmml e o N N x x x l 0, O.WNol m 31 N w M o x V O 0 0 1-1 1 > 1 m N WIL W N N YY1 q N \= z 2 m m 1 1 \ m1 z I- NO W z"w wW \w 1 Z v x m 0 r r_1 w 0 V co Q1 rw o CD iUWWg l r z •• Z m1 w R 1 ow x amu01 w ow w ma a m W am w 0 ace O 000. aw WO m 000. m W x mm 0 mmm 1 r0 Q as mQCa 1 rr zz 00 U x a ►._ 026 � F'b *DTVVe IT SA/HA/FA MEETING DATE: July 3, 2012 AGENDA CATEGORY: BUSINESS SESSION: ITEM TITLE: Adoption of a Resolution Approving the Fiscal Year 2012/2013 City of La Quinta Budget and CONSENT CALENDAR: Establishing the City's Appropriation Limit STUDY SESSION: PUBLIC HEARING: RECOMMENDATION: Adopt a Resolution of the City Council approving the Fiscal Year 2012/2013 City of La Quinta Budget and establishing the City's Appropriation Limit. FISCAL IMPLICATIONS: All Fiscal Year 2012/2013 revenues, operational appropriations and capital project funding are included in the Proposed Fiscal Year 2012/2013 Budget (Attachment 1). The final estimated net increase (decrease) in the General Fund balances for Fiscal Year 2012/2013 is $0, after changes have been made based upon the June 5, 2012 Preliminary Budget Council Meeting. In order to balance this year's General Fund budget an application of $2,187,759 in available Fund Balances reserves is required. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: At the City Council Meeting of June 5, 2012, the City Council adopted the Preliminary Budget and provided staff, direction regarding the Final Budget for the 2012/2013 Fiscal Year. Additionally, staff has provided a list of continuing appropriations/encumbrances for Fiscal Year 201 1 /2012, as well as a copy of the June 5, 2012 Staff Report for reference (Attachments 2). 027 As indicated in the City Manager's Budget Message, actions by the State of California relating to the termination of the La Quinta Redevelopment Agency have resulted in a curtailment to our Capital Improvement Program, limited our housing efforts, and limited our economic efforts. Contingency Grant Program & Coachella Valley Economic Partnership (CVEP) At the budget hearing on June 5, 2012, staff was directed to change the preliminary budget line item 'for the Coachella Valley Economic Partnership from $21,250 to $50,000. Staff was also directed to change the Contingency Grant Program line item from $21,000 to'$37,250. The total of these two program increases was funded by reducing the Economic Development line item in the Development Services Division in the City Manager's Department from $45,000 to $0 in the Final Budget. The auditors have prepared a Gann Limit report (Attachment 3) on the City's Appropriation limit and did not report any negative findings. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1) Adoption of a Resolution of the City Council approving the Fiscal Year 2012/2013, City of La Quinta Budget and establishing the City's Appropriation Limit; or 2) Provide staff with alternative direction. Respectfully submitted, John M. Falconer,, Finance Director Approved for submission by: 028 Attachments: 1 2. 3. City of La Quinta Fiscal Year 2012/2013 Annual Budget and Supporting Document (under separate cover) June 5, 2012 Staff Report Auditors Gann Limit Worksheet •6 029 RESOLUTION NO. 2012 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, ESTABLISHING THE CITY'S APPROPRIATION LIMIT FOR FISCAL YEAR 2012/2013 AND APPROVING A BUDGET FOR FISCAL YEAR 2012/2013 WHEREAS, each year the La Quinta City Council adopts a Budget for Revenues and Expenditures for the upcoming Fiscal Year; and WHEREAS; the City Council desires to make provisions for a level of services commensurate with the needs of the City; and WHEREAS, the City Council has reviewed said budget and has had several public meetings to receive public input; and WHEREAS! the City Council has, after due deliberation and consideration, made such amendments in the proposed budget as it considers desirable; and WHEREAS:,I Section 7910 of the government Code of the State of California provides that each year the governing body of each local jurisdiction shall, by resolution, establish its appropriations limit for the following fiscal year; and WHEREAS; Section 7902(b) of the Government Code sets forth the method for determining the said appropriations limit, to be based upon the limit applicable for the prior fiscal year and adjusted for changes in the cost -of -living and in City population. NOW, THEREFORE, BE IT RESOLVED by the City of La Quinta to adopt, as follows: SECTION 1. The appropriations limit for the City of La Quinta established in accordance with Section 7902(b) of the California Government Code, for Fiscal Year 2012-2013 is $96,357,500. SECTION 2. It is hereby found and determined that in compliance with Government Code Section 7910, the documentation used in the determination of said appropriations limit for Fiscal Year 2012/2013 was available to the public in the Finance Department of the City and in the Office of the City Clerk at least fifteen days prior to this date.! SECTION 3. The Fiscal Year 2012/2013 Budget which is on file with the City Clerk is hereby approved. 030 Resolution No: 2012• I Budget Approval FY 2012/2013 Adopted July 3, 2012 Page 2 SECTION 4. The Successor Agency to the Redevelopment Agency agrees to the reimbursement to the City for services performed by the City on behalf of the Agency. Such reimbursement, as computed and included in the budget document, shall include salary, salary related costs, direct costs, and indirect overhead costs. SECTION 5. Continuing Appropriations which remain unspent and were authorized by Council in Fiscal Year 201 1 /2012 are approved in the Fiscal Year 2012/2013 Budget in an amount not to exceed $1,247,684 of which $119,564 will be offset by grant funding (Exhibit A). SECTION 6. Encumbrances for Fiscal Year 2012/2013 for committed appropriations are approved in the Fiscal Year 201 1 /2012 Budget in an amount not to exceed $73,069,of which $0 will be offset by grant funding (Exhibit A). SECTION 7. Budget adjustment procedures are approved as follows: A. Additional appropriations and the transfer of cash or unappropriated fund balance from one fund to another shall be made only upon City Council approval. B. Transfers of budgeted appropriations between divisions or capital projects shall be made only upon City Council approval. C. Transfers of budgeted appropriations between accounts within a division or capital project may be made with the approval of the City Manager or his designee. D. Prior year budget continuing Appropriations and Encumbrances for unexpended capital project appropriations remaining from uncompleted prior year capital projects shall be made with City Manager approval. , These carry-over appropriations are for prior year Council approved capital projects and shall not exceed the approved project budget. SECTION 8. The City Council, recognizing the need for maintaining Fund Balance reserveslhas established a General Fund Cash Flow Reserve for Fiscal Year 2012/2013 of 8:.25% of the Fiscal Year 2012/2013 budget which amounts to $3,185,984 for Fiscal Year 2012/2013, and has also established a General Fund Emergency Reserve for Fiscal Year 2012/2013 of 35% of the Fiscal Year 2012/2013 budget plus $4,000,000 which amounts to $17,516,295. The two aforementioned 031 Resolution No. 2012- 1 Budget Approval FY 2012/2013 Adopted July 3, 2012 Page 3 reserve categories cannot be appropriated without the explicit approval of the City Council. In addition, the following are the estimated reserves to General Fund Balances as of June 30, 2012 including the already mentioned cash flow and emergency reserve amounts: II'Quinta City of La Reserves & Designations Fiscal Year End 201 1 /2012 General Fund: Advances Ilto other funds $15,525,000 Deposits j 9,830 Prepaids 1,500 Encumbrances & Carryover appropriations 1,041,172 Less revenue offsets (119,564) Debt service payment 173,426 Post retirement health care benefits 1,523,401 Land held for resale 8,320,000 Future operational deficit 3,184,702 Cash flow 3,185,984 Emergency reserve 17,516,295 Continuing' operation and projects 39,339,226 $ 89, 700, 97 2 Other Funds: Encumbrances & Carryover appropriations JAG Grant $7,989 AB 939 11,916 Quimby 200,000 Information, Technology 59,676 Capital Projects - net 0 032 Resolution No. 2012- Budget Approval FY 2012/2013 Adopted July 3, 2012 !, Page 4 SECTION 9. The City Manager shall render a monthly report to the City Council on the status of City operations as it relates to the approved budget and any amendments thereto. PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City Council held on this 3rd day of July, 2012, by the following vote: AYES: NOES: ABSENT: ABSTAIN: DON ADOLPH, Mayor City of La Quinta, California ATTEST: SUSAN MAYSELS, Interim City Clerk City of La Quinta; California (SEAL) APPROVED AS TO FORM: M. KATHERINE J IENSON, City Attorney City of La Quintal California 0133 EXHIBIT A 00 0 �' O OpOo nn oq mmpy O o o Ww OI G nrin 11 OO OViggB ui, mmoo Y' m 2' Y A.md1 m� V C! OI G O ONmoo Ct Nm�m�Wf�m F 8 p O p N' m W W n OAP 0 �1 NN 'Omt7d ml mi�wm m r, E w` �O uO1iN @ c d d H $$ 8g� y 3 a vi vi a w ®O 00 S f0 tl O O P 0 n M N N S O a W N 0 O� UQ00 l7a pO 1q N19 O d yO� d �Pp Clq W d p 1�N p O 00O NNO N O O p 'Of YGa 0 0 Op' O V1�^Om qa @ � m O OR _ $ a E4 m y d S S m.@ E nW a i ILSr n W. u J z¢ @ E,aOzzY "as5�`5� ma ��fa mae o gsbd$ =wssmoo a U ¢ §Qcis c�c� imom¢ =fww�oo e1 m pw` d a 66 mm iA W mW C] d Q n $ pqpq 1� 8 C'am�OO 0 0 O N ml� N n n n n n n a N NQm N QNvm N N N N N N N N l;` ��� N n 4 4 NmmCJ N C'1 d C O w_ Y� �o dr 9YF N� o YaF Y�4��Y—m° �e1 �i YI�A5�p��ipd�p�pnS H S8 d �{o Yi uSmo pyd gyd� HVI e3e HSHSHHVI SSHSiA yc g Si nvOi Y`TN nO��OOOh U' O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O Fd O m S y � N y d m § m w 02 035 SEE BUDGET BINDER ATTACHMENT 1 tj. 036 ATTACHMENT 2 F C-S rj I ��cFM OFF .. IT A/HAXA MEETING DATE: June 5, 2012 ITEM TITLE: Consideration of Fiscal Year 2012/2013 Preliminary Budget AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: RECOMMENDATION: Adopt the Fiscal Year 2012/2013 Preliminary Budget and direct staff to prepare a Fiscal Year 2012/2013 Final Budget for the July 3, 2012 City Council Meeting. FISCAL IMPLICATIONS: All Preliminary Fiscal Year 2012/2013 revenues, operational appropriations and capital projects funding are included in this Preliminary Budget. Pursuant to City Council direction, I staff has presented the City Council with a balanced General Fund budget using $2.2 million of General Fund Balance reserves from the estimated $89.7 million General Fund Balance at June 30, 2012. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Introduction As the City Council is aware, the Budgeting process actually starts in February when the City Council discusses the City Council Goals and the Annual Financial Management review. This year the Annual Financial Management review focused on the Resource Allocation Plan, which was the basis for the May 1, 2012 Study Session to discuss the Fiscal Year 2012/2013. During the Study Session, the City Council discussed the options presented by staff to reduce the projected $4.3 million General Fund deficit by nearly half. The City Council has since reviewed the C 3 7 �� 4 Economic Development Plan, the Capital Improvement Program and the Marketing Plan for the upcoming Fiscal Year. Each of these components has been incorporated into the proposed budget. This preliminary 1 Fiscal Year 2012/2013 Budget is similar to the format implemented in previous years. This format utilizes two separate documents to develop the City, Successor Agency (SA) to the Redevelopment Agency, Financing and Housing Authorities Budget. The first of the two documents utilized for presentation of this year's budget is titled: "Fiscal Year 2012/2013 Preliminary Budget," and includes the total scope of operations for the City, Successor Agency, Financing and Housing Authorities. The second document is titled: "Supporting Document." This document provides the detail for each program operation. Executive The following table shows a comparison of the revenues and expenditures in the General Fund from; Fiscal year 2012/2013 and 2011 /2012: 20122013 20112012 Change Estinated Budgeted Revenues Application of Reserves - Personnel Reductions Application of Reserves- Operational Deficit Transfers In - Reimbursements $ 32,896,938 - 2,187,759 148.308 4,893,076 $ 31,424,168 757,369 2,354.857 135.844 6,016,214 $ 1,472,770 (757.369) (167,098) 12,464 (1,123.138) Total Sources 40,126,081 40,688,452 (562.3711 Estinated Operating Expenditures Transfers Out 38,617,987 1.508.094 40.053,127 635,325 (1,435,140) 872.769 Total Uses 40,126.081 1 40,688,452 (562,371) $ - $ - $ - Net income (loss) General Fund Reserves The General Fund is the only fund in the City in which the City Council has total discretion over the appropriation of funds. For thirty years the City has experienced continued growth in its General Fund Balance or its "reserves" and has one of the highestbalances in the Coachella Valley. These reserves represent the net income that has been received from year to year since incorporation and is projected to be at, $89.75 million at June 30, 2012. This balance has resulted from current and past Council's belief that the City should operate within its means it G38 I on a year to yearly basis. Unfortunately, for the last four years the country has been experiencing a recession which has impacted the City in many ways — lower property tax collections, lower sales tax revenues, lower development fees and permits, lower transient occupancy taxes and lower interest income from lower interest rates. To combat these revenue declines, the City has been reducing its expenditures including staff and outside contractors and consultants. For instance, the, total authorized positions in Fiscal Year 2012/2013 are 88 positions compared to 105 in Fiscal Year 2008/2009. It is important to note that this decrease in staff positions would have been greater, which many of our surrounding communities have experienced) if not for the City's belief to contract out to the private sector for many of the services that our residents receive. To deal with this I revenue downturn, the City has cut its costs wherever possible with the intent of lessening any direct impact of services to our residents' and visitors' perception of La Quinta as the "Gem of the Desert." Some of the cost savings undertaken to date include: (1) lowering the amount of marketing funds allocated , (2) lowering funding for street sweeping, tree trimming and landscaping programs, (3) eliminating consultant construction inspection services, (5) lowering funding for park maintenance, and (6) paying cash whenever possible for items previously financed due to low interest rates on investments. It is important to note that during this slow down, the City has not closed facilities, reduced hours of operations, implemented furloughs, forced employee layoffs, limited or reduc4standby and call out pay. While staff continues to look for ways to decrease costs, the economic downturn that has impacted, the City continues into the current Fiscal Year 2012/2013 with the State Supreme Court decision in December 2011 to uphold the Governor's proposal to dissolve Redevelopment Agencies. The La Quinta Redevelopment Agency was one of the fifteen largest in the State which has significantly impacted the General Fund. In Fiscal Year 2010/2011, the City Council, anticipating the continued downturn in the economy reserved $7.5 million of fund balances to cover possible operating deficits for the next three years. The anticipated balance at the end of Fiscal Year 2011/2012 is $3.2 million. In addition to they, aforementioned cost cutting measures, the City Council has looked at new or increasing existing revenue sources, which some of our surrounding communities have in place — park assessment districts, utility user taxes, public safety taxes or by increasing our existing revenues, such as user fees, sales or transient occupancy tax rates or by joining the Coachella Valley U.,,- C 3 9 Association of Governments (CVAG) Transportation Uniform Mitigation Fee (TUMF) program. The following table shows a breakdown of the estimated Fund Balance as of June 30, 2012 as further detailed on page C-2 of the Budget Document: City of La Quinta'I Reserves & Designations Fiscal Year End 201 1 /2012 Advances to other funds $15,525,000 Deposits 9,830 Prepaids 1,500 Encumbrances & Carryover appropriations 977,949 Less revenue offsets (6,554) Debt service payment 173,426 Post retirement health care benefits 1,523,401 Land held for resale 8,320,000 Future operational, deficit 3,184,702 Cash flow 3,185,984 Emergency reserve 17,516,295 Continuing operation and projects 39,339,226 $ 89, 750, 759 As the table illustrates the General Fund has $39.3 million of continuing operation and project reserves. Summary of This Year's Budget Revenues — General Fund This year's General Fund projected revenues of $40.13 million, which includes using $2.19 million of reserves, is down from the $40.69 million from the prior year as projected i the following table: 040 REVENUE TYPE INCREASES Sales Tax $ 847,000 Fees for Service 336,534 Transient Occupancy Tax 300,000 Property Tax 366,000 County Fire Operations 220,736 Miscellaneous Document Transfer Tax - Change in Transfers in, 12,464 intergovernmental 1,500 Franchise Fee 2,084,234 (DECREASES) Change in Reimbursements S (1,123,138) Application of reserves - Operational deficit (924,467) Interest (599,000) Motor Vehicle in Lieu Licenses & Permits Subtotal (2,646,605) Total $ (562,371) Reconciliation: Prior Year Revenues FY 2011/2012 $ 34,672,238 Previous Year Reimbursement FY 2011/2012 6,016,214 Budget Summary FY 2011/2012 Sources $ 40,688,452 Budget Summary FY 2012/2013 Sources 40,126,081 Change 5 (562,371) Revenues - Use of Reserves In order to balance the Fiscal Year 2012/2013 General Fund Budget, staff is proposing the use Iof $2.19 million in reserves. While the City has seen sales tax, and transient occupancy taxes increases, and property tax declines have stabilized, the elimination of, the Redevelopment Agency has resulted in a loss of interest income to the General Fund and lower reimbursements for City provided services. Revenuelncreases The major increase in revenues for Fiscal Year 2012/2013 is sales tax - $847,000 and transient occupancy taxes - $300,000. The following charts show the five year budgets for these two revenue sources: it 041 II Sales Tax 0 ii ii IN, ON ME: NEW ,,, ,,, �■ M■ �■ _ M■ NEW, 1" ,„ 11/12 7.490,000 1 6,637.000 1 7,136,000 Transient Occupancy Tax 6,000,000 51000,000 4,�000,000 3I�000,000 2.000.000 1,�000.000 0 12113 7,983,000 The charts indicate that while the Fiscal Year 2012/2013 budgets for these two revenues are budgeted to increase they are a combined $1.9 million less than the amounts budgetedlin Fiscal Year 2008/2009. Revenue Decreases In March and April of 2011, the Redevelopment Agency repaid all of the outstanding loan amounts to the City. These were long term loans that were paying interest be 7% and 10%. The repayment of these loans provided cash to the City's General Fund that negatively impacted the City's operating revenue. Overall, Fiscal Year 2012/2013 interest income is projected to be $599,000 less than Fiscal Year 2011 /2012. 042 Expenditures — General Fund This year's General Fund projected expenditures of $40.13 million is down from the $40.69 million from the prior year as projected in the following table which reflects by Department the increase and decreases from last year's budget: DEPARTMENT TOTAL EXPENDITURES CHANGES REIMBURSEMENTS CHANGES INCREASES Department Community Services 461,410 50,940 512,350 Plannin 159,406 151,223 310,629 9 Police 27,134 0 27,134 City Clerk 1 24,961 11,700 36,661 Building & Safety 18,294 540,380 558,674 Fire 442 1,070 1,512 Subtotal 691,647 755,313 1,446,960 (DECREASES) Departments General Government (1,378,224) 369,785 (1,008,439) Public Works (723,784) (68,896) (792,680) Finance (24,779) 66,936 42,157 Subtotal (2,126,787) 367,825 (1,758,962) Net Increase in Expenditures (1,435,140) 1,123,138 (312,002) Decrease in Transfers I 872,769 Total ($562,371) Reconciliation: Prior Year Expenditures FY 2011/2012 $40,053,127 Previous Year Transfers Out FY 2011/2012 635,325 Budget Summary FY 2011/2012 Sources $40,688,452 Budget Summary FY 2012/2013 Sources 40,126,081 Change ($562,371) 043 Increases in General Fund Expenditures The following are some of the notable increases in the General Fund over $50,000: • Increase of $575,000 in funding the street pavement management program. • Increase of, $502,523 park maintenance fund charges in the Community Services Department. • Increase of $165,000 for a park assessment district study. • Increase of $75,000 for a special benefits assessment district study. Decreases in General Fund Expenditures With the estimated reduction in revenues forecasted for Fiscal Year _2012/2013, the following reductions over $50,000 in this year's budget compared to last year's Budget, as outlined in Attachment 1, are as follows: • Decrease of 1($757,369) in Fiscal salary reductions from early retirement. • Decrease of',($220,000) in marketing service expenses. • Decrease in existing salaries and fringe benefits ($204,330). • Decrease of ($100,000) in Public Works contract inspections. • Decrease of ,$(75,000) in legal expenses. • Decrease of ($50,505) in the City wide landscape maintenance contract. Personnel The following chanl'ges for Fiscal Year 2012/2013 that are being recommended to the Authorized Positions list as detailed in Section I are as follows: One (1) position is being recommended for deletion from the City authorized positions listing bringing the City-wide total from 89 in Fiscal Year 2011 /2012 to 88 in Fiscal Year 2012/2013. • Public Works, Department — Senior Secretary • Transferring back an Assistant Planner from the City Manager Development Services Division to the Planning Division The Fiscal Year 20112/2013 budget contains no increases in cost of living. This year's budget does include merit increases for those employees who are eligible. Police and Fire Department Budget Discussions Police Services — the overall budget for Police Services has remained virtually unchanged from the prior year. The Police Department budget represents the largest service level cost in the preliminary budget. Police Services represents •.; G44 31.7% of total General Fund expenditures for Fiscal Year 2012/2013 as compared with 31.7% of the Fiscal Year 2011/2012 budget. This year the Police budget has no change in staffing. As previously mentioned the total Police Budget for Fiscal Year 2012/2013 did not change significantly from the $12,712,089 budgeted in Fiscal Year 2010/2011. Line items that did increase include $27,000 in contract services for rent of the Highway 111 Police substation, a reduction in equipment replacement internal service charges of $6,332, and an increase of $6,466 in information technology internal service charges. Also included within the Police Department proposal is $190,000 in special enforcement funds, $70,000 for the Humana Challenge costs for public safety, and $108,300 for rent expenses for the Highway 111 Police sub- station. Fire Services - the overall budget for Fire Services has also virtually remained unchanged from the prior year and totals $5,029,690 for Fiscal Year 2012/2013. This represents the third largest service level in the proposed budget. Fire Services represents 12.5% of total General Fund expenditures for Fiscal Year 2012/2013 as compared with 12.4% for Fiscal Year 2011/2012. The primary factor for the increase is an increase in equipment replacement internal service charges of $2,942, and a decrease of $2,500 in information technology internal service charges. No change in Fire Services personnel is being recommended. In the past revenues for these services have come from the Fire Structural Tax and Property Tax increment from RDA Project Area 1 and 2, which would exceed appropriations and continue to result in a surplus. Due to the elimination of the RDA, the question has surfaced if the City will continue to receive the same amount of tax increment based property taxes to support fire services. This budget has been prepared with the understanding that the County of Riverside will continue to allocate these tax increment funds in'Fiscal Year 2012/2013 as they have done in the past. Internal Service Funds Update The City has three internal service funds - Equipment Replacement, Information Technology and Park Maintenance Equipment & Facility. These funds were established to set aside each year funds to ultimately replace fixed assets. For example, the City' currently charges approximately $20,000 for ten years to purchase a street sweeper. This is done so that in ten years the City is not faced with a $200,000 (funding request which could dramatically impact the budget process. The amount of internal service charges for Fiscal Year 2012/2013 is reflected in the following table and the current cash balances as of May 31, 2012: ,is C"5 FY 12/13 FY 12/13 FY 12/13 BUDGETED NORMAL REDUCED May 31st FUND CHARGES CHARGES CHARGES Cash on Hand Equipment Replacement 584,823 584,823 - 1,996,315 Information Technology 491,581 491,581 - 1,120,002 Park Maintenance Equipment & FacTty 502,523 502,523 - 652,285 1,578,928 1,578,928 - 3.768,602 Community Marketing Service Projects The following tablel'lists Community Marketing Service items exceeding $5,000 as contained in the Preliminary Budget: AGENCIES FY 12/13 BUDGETED Chamber of Commerce 127,500 La Quinta Arts Foundation 124,000 Grant Contingency 21.200 Soroptomist Facility Rent 5,025 Boys & Gvls Club - Facility Use (1) 60,000 YMCA Pool Contract 22,000 Jacqueline Cochran Regional Airport (Airshow and dues) 12,500 Coachella Valley Economic Partnership 21,250 (1) $30,000 from Community Development Bbdc Grant Capital Improvement Program • The Fiscat Year 2012/2013 Preliminary Budget incorporates the planned capital expenditures for next year, which total $3,605,159. The projects can be found on Pages 1-1 and 1-2 and include funding for three (3) major CIP projects; Pavement Management & Slurry Seal Program, Sports Complex Lighting Rehabilitation and Expansion, and the Adams Street Signal and', Street Improvements. 1-1 also lists the sales and transient tax reimbursements that the City of La Quinta General Fund is estimated to pay which total $431,094 for Fiscal Year 2012/2013. Five -Year Resource Allocation Plan City staff presented the Five -Year Resource Allocation Plan (RAP) February mid- year report and used it as the basis for the May 1, 2012 Study Session. This five- year plan forecasts the operating expenditures and the anticipated revenues to pay for these expenditures. At the Study Session no changes were proposed to be made to the Fiscal Year 2012/2013 budget brought forward by staff (Attachment 046 2). Subsequently staff has incorporated the following changes into the Preliminary budget as follows: Changes from Study Session Net income (loss) - Study Session 18,478 (1) Additions to net income:' Salary & Fringe benefit savings from City Manager Position 56,610 Additional AB939 salary reimbursements 55,075 Deletion of Concurs de Elegance Event 10,000 Salary & Fringe benefit savings from City Clerk Positron 7,200 128,885 (2) Deletions to net income:' Reduction in administrative reimbursements from CIP (67,532) Additional expenditures to PSDRCVA for additional TOT (5,500) Additional expenditures for City Council travel (5,500) (78,532) (3) Net Income Qoss) 68,831 (1)+(2)+(3)=(4) Application of Reserves - Operational Deficit - Study Session 2,256,590 (5) Application of Reserves - Operational Deficit- Final Budget 2,187,759 (4)-(5)=(6) Timeline Attached is a one -page summary of highlights of this year's budget (Attachment 3).Also attached are a Summary and Supporting Fiscal Year 2012/2013 Preliminary Budget for Council's consideration (Attachment 4). Staff is requesting' that, at the June 5, 2012 City Council meeting, the Council review and make amendments as necessary to the Preliminary Budget. Subsequent to this review, staff is requesting approval.of the Preliminary Budget with a July 1, 2012, effective date. Staff will then incorporate all changes pursuant to the discussion of the Preliminary Budget and schedule the item for consideration at the July 3, 2012, City Council meeting for Final Budget adoption Summary Overall, the City's General Fund Budget continues to be a challenging story. As identified on page 'C-1 of the Preliminary Budget, this year's budget is currently balanced using reserves. This memorandum is intended only as a summary of the issues and details of the budget. We look forward to these discussions with the City Council at the',June 5, 2012 City Council special meeting. The City staff will rp- 047 be prepared with recommendations, and requests to report on methods/suggestions to balance the operating budget. FINDINGS AND ALTERNATIVES: City staff is requesting: 1► Review and comment on the 2012/2013 Fiscal Year Budget and provide direction regarding any proposed changes to the document; or 2) Approval of the 2012/2013 Fiscal Year Preliminary Budget as amended at the June 5, 2012, City Council Meeting. {Any approved changes by the City Council to be incorporated into the Final. Budget for adoption on July 3, 2012.); or 3) Provide staff with alternative direction. Respectfully submitted, ,)4, tut , John M. Falconer, Finance Director Approved for submission by: Mark Weiss, Interim City Manager Attachments: 1. Changes between Fiscal Year 2012/2013 & 2011/2012 General Fund Expenditures 2. May 1, 2012 Study Session Staff Report Only 3. Major Highlights 4. 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C I m m r d m � Q Q 0 � C55 CITY / SA / HA / PA MEETING DATE: May 1, 2012 ITEM TITLE: Discussion of Recommended Options for the Fiscal Year 2012/2013 Budget WMI AGENDA CATEGORY: BUSINESS SESSION: Program CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: RECOMMENDATION: That the City Council review staff recommendations for -a balanced Fiscal Year 2012/2013 Budget and provide policy direction with respect to the preparation of a budget document for consideration in June 2012. FISCAL IMPLICATIONS: The proposed changes and/or reductions represent a balanced Fiscal Year 2012/2013 Operating Budget. However, approximately $2.25 million of the "Future Operation Reserve" is utilized in achieving this balance, leaving approximately $925,000 of that Reserve for future allocation. CHARTER CITY IMPLICATIONS: None for this action. BACKGROUND AND OVERVIEW: The City's Annual Financial Management Review (FMR) projected a General Fund budget deficit of $4.2 million for Fiscal Year 2012/2013, growing to $5.3 million in Fiscal Year 2013/2014. A multi -faceted approach involving expenditure reductions and revenue enhancements was proposed in the FMR to stabilize and reverse the projected deficits: As part of that effort, staff initiated a modified zero -based budget (ZBB) process in an effort to identify appropriate options for consideration during this year's budget review. The modified ZBB process involves the following steps: H. 056 1. Finance prepares a base budget projection, including anticipated revenues and required expenditures to maintain current service levels (i.e., the base);; a projected city-wide surplus/deficit is ascertained via this process. The size of any projected deficit determines the depth to which service reductions are considered. 2. Each Department is provided the base budget dollar amount for its Fiscal Year 2012/2013 operations and is afforded an opportunity submit proposed and prioritized Program Changes including Additions (i.e., requested new program funding) and Reductions. Staff was requested to evaluate reductions totaling no less than 15% of base budgets this year. 3. The City Manager reviews Program Changes with Department Directors and formulates a city-wide budget recommendation for City Council consideration. The emphasis at this stage is primarily on the General Fund. Staff recognizes and must account, however, for impacts upon other dedicated and enterprise funds in this endeavor. Creation of an Ad Hoc Budget Subcommittee afforded the City Manager the opportunity to review the budget process and recommended program changes with the Subcommittee as a pre -cursor to full City Council consideration. Staff met with the Subcommittee on April 18, 2012 for that purpose. Two substantive changes have been made to the packet subsequent what was provided the Subcommittee: 1. Sales Tax Revenues were increased by approximately $150,000 in consideration of newly received HDL estimates; 2. A Program Change. was added for Assessment Engineering ($225,000) related to Landscape and Parks funding pursuant to Council direction at the April 17, 2012 meeting. The net result of these.two changes reduces the reserve carryover for Fiscal Year 2013/2014 from $1;000,000 to $925,000. Fiscal Year 2012/2013 Base Budget Projections Budget projections this year are complicated by recent State Legislature and Supreme Court actions affecting Redevelopment Agencies throughout the State of California. Unknown and changing implementing assumptions, implementing decisions of the RDA Oversight Board and Department of Finance, and pending legislation may all have dramatic impacts upon staff projections, especially as they relate to property tax distribution and available revenues associated with RDA dissolution and Successor Agency activities. With that caveat, Attachment 1 is. a revenue and expenditure summary incorporating recommended adjustments toward achieving a balanced budget for Fiscal Year 2012/2013. Attachment 2 reflects a detailed summary of �r. C 5 7 recommended Program Changes for Fiscal Year 2012/2013, plus a listing of additional changes (2Y) that may be required the following year to bring the City's General Fund budget into balance. Items 1 through 52 on Attachment 2, entitled Program Changes and Reductions - Detail, are recommended for Fiscal Year 2012/2013. -Attachment 3 represents a summary of revenues and expenditures -for Fiscal Year 2013/2014 assuming 2Y changes were implemented for next year. Attachment 4 provides revenue estimates. Attachment 5 represents the base budget calculations for each Department. Attachment 6 includes the actual Program Change forms with more detailed program description and impacts submitted by Departments. Philosophic Approach As noted in the FMR, staff recommends a multi -faceted approach in addressing the budget challenge. Potential revenue enhancements include: • Application for TUMF Membership $412,5004550,000 • Fee adjustments $300,0004500,000 • TOT enforcement $300,000-$600,000 While very few Program Additions are recommended (e.g., funding for elections, economic development consulting, and NPDES permit increase), an extensive list of Program Reductions are considered with over $900,000 in cuts proposed in Fiscal Year 2012/2013. Miscellaneous operational cuts are proposed throughout the City. Additionally, staff recommends significant reductions in marketing and promotions; 15% reductions in.funding for the La Quinta Chamber of Commerce (Chamber), the La Quinta Arts Foundation and . the Coachella Valley Economic Partnership (CVEP); elimination of one vacant Senior Secretary position in Public Works; elimination of an engineering development review contract in Public Works; reductions to landscape and maintenance contracts throughout the City; reassignment of one full-time employee from the City Manager's Office to Planning to help establish a program for more focused enforcement of TOT; and exercising the option to terminate the lease agreement for the Police Substation on Corporate Centre Drive. Additionally, staff has embarked upon employee negotiations with an eye toward salary and benefit adjustments to further close the gap between expected revenues and projected expenses. The combination of revenue enhancements, expenditure reductions, compensation adjustments and judicious use of budgeted reserves may allow the City Council to approve a budget for Fiscal Year 2012/2013 without requiring employee layoffs or dramatic service reductions. Itappears, however, that staffing reductions will be necessary to fully achieve long term sustainable operations (i.e., wherein stabilized revenues fully fund ongoing expenditures). Accordingly, staff has identified selected positions and additional programs (i.e., ''2Y') that may be subject to elimination if further or alternative reductions are required. Identifying these programs -at this time '.uu C 5 8 will allow the City the opportunity to plan ahead for the eventual paring of programs and services, cross -train personnel where appropriate, and better position itself for the uncertainties associated with State actions affecting activities previously associated with Redevelopment that are now in a state of suspension or shutdown. Fiscal Year 2012/2013 Program Changes A complete listing and description of Program Changes, Additions, and Reductions are included in the attachments. Following is a brief narrative of some of the highlights of recommended Fiscal Year 2012/2013 changes by Department: Legislative • Reduction of Legal budget consistent with expenditure history for the past two years • Reduction in Travel budget allowing sufficient funds for each Council Member to attend one conference, plus funding for Council Member's official duties with the League of California Cities City Manager • Transfer of one position to Planning for implementation of TOT enforcement initiative; 11 • Reducing consulting marketing services by 50%, eliminating some programs (i.e., calendar), reducing others, and bringing some activities in-house . • Reducing contributions to the Riverside County Fair and National Date Festival and Jacqueline Cochran Air Show by 50% • Reducing CVEP and the Chamber contribution by 15% • Cutting miscellaneous operation accounts, affecting budgets for training, promotional materials, employee recognition event, and etc. • Addition of General Fund monies for Economic Development consulting ($451-000) City Clerk • Addition of funding for legally mandated election • Eliminate funding for the Holiday Open House Community Services) • Reduction in miscellaneous operational accounts affecting various special events and special projects • Eliminating funding for the Prestige Golf Event � u C59 • Reduced funding for PM 10 activities at SilverRock consistent with new contract provisions • Reduced funding for utilities consistent with anticipated expenses upon installation of new equipment at the La Quinta Senior Center • Reduced funding for the La Quinta Arts Foundation by 15% (i.e., consistent with reductions to the Chamber and CVEP) • Reduced funding for non -safety related tree maintenance and park over -seeding No changes proposed to Library/Museum in anticipation of continued pass through of previous tax increment funding • No changes to SilverRock (other than reduced operation of the entry water feature) in consideration of its. Enterprise Fund and revenue -generating nature Building and Safety • Reductions in miscellaneous operational accounts • Reduction in low-income Code Compliance grant program to a level more consistent with historic expenditure patterns Fire • Eliminate Volunteer Appreciation Dinner • No other reductions.in anticipation of continued pass through of previous tax increment funding Finance • No changes proposed Police • Termination of Substation Lease at Corporate Centre Drive Planning • Addition of one time funding for setup of TOT enforcement program; involves transfer of one position from the City Manager's Office to Planning Public Works • Addition of funding for Assessment Engineering (Special Assessments and Parks, $225,000); and NPDES permit costs ($30,000) • Eliminate vacant Senior Secretary position • Reduction of 15% to street sweeping program • Reduction to palm tree trimming and landscaping programs • Reduction in miscellaneous operation accounts affection training, supplies and commercial graffiti abatement • Eliminate consultant construction inspection services (relying upon in-house staff) 2Y Program Changes Further cuts than those proposed above for Fiscal Year 2012/2013 generally involve occupied positions. While staff is not proposing these cuts for Fiscal Year 2012/2013, we do believe it important to plan for reductions that may be required in the near future to obtain a sustainable balance. These reductions may be partially avoided pending improvements to the economy, economic development success, possible restoration of some level of housing/redevelopment activity, and adjustments to employee compensation levels. Additionally, it is likely the next City Manager may consider structural reorganizations in an effort to realize greater organizational efficiencies.' FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Review staff recommendations for a balanced for Fiscal Year 2012/2013 Budget and provide policy direction with respect to preparation of a budget document for consideration in June 2012; or 2. Provide staff with alternative direction. Respectfully submitted, Mark Weiss, Interim City Manager Attachment: 1. Fiscal Year 2012/2013 Program Changes & Reductions - Summary 2. Fiscal Year 2012/2013 Program Changes & Reductions - Detail . 3. Fiscal Year 2013/2014 Program Changes & Reductions - Summary ". u: C6i 4. General Fund Revenues Detail 5. Fiscal Year 2012/2013 Base Budget Calculation 6. Program Change Forms By Department 062 3 City of La Quinta FY 2012t2013 - Major Highlights Staff Resources: Reduced Funding for City Manager Reduced Funding for City Clerk Reduced Funding for Senior Secretary Capital Spending -$ Major Projects - Dune Palms Road Bridge Improvements Coral Mountain Apartments Fred Waring/Palm Royale Island Median Improve Pavement Management and Slurry Seal Program Sports Complex Lighting Rehab & Expansion Adams Street Signal & Street Improvements Hwy 111 & Washington St Intersection Improvements Village Land Acquisition Washington St Dual Left at Ave 48 Traffic Signal - Eisenhower Dr and Sinaloa REVENUES All Funds Anticipated Fund Sources Three Major Fund revenues: General Fund SA - RDA PA#1 Debt Service 1 RDA PA#1 Debt Service 2 SA- RDA PA 1 Low/Moderate Income Fund General Fund Anticipated Funding Sources (A) Major Sources of General Fund Revenues Sales Intergovernmental Hotel Room Tax Property tax - EXPENDITURES All Funds Anticipated Uses Three Major Fund Expenditures: Capital Projects SA - RDA PA 1 Debt Service Fund SA - RDA PA 2 Debt Service Fund SA - RDA PA 1 Low/Moderate Income Fund General Fund Anticipated Expenditures (8) Surplus/(Deficit) (A)-(B) 25-May-12 Department City Manager City Clerk Public Works - Administration $ 3,605,159 I I $ 19,691,294 I 1 $ (16.086, $ 1,000,000 $ 888,875 $ 720,500 $ 12.408,000 $ 5.037.754 $ 1,115,240 $ 513.300 $87,605,546 11 $124,297,077 11 $ (36,691,531) $32,8 $31424,118 1,4792,770 II$8,847,000I $,2120$$10,273,472 35 413128 I$ $941,946 $ 19,202,124 $ (18,260,178 $6,227,990 $ (2,619,010 $40.126.081 1 1 $40,687,312 1 1 $ (561,231 19.89% 13.98% 5.91% 22.82% 21.95% 0.87% 12.59% 11.67% 0.92% 15.76% 1820% -2.44% $75.942,585 $149,672,832 $ (73.730. $4,036:253 $20,196,294 $ (i6, 160,041 $10.273,472 11 $39,843:422 11 $ (29,569,950 $932,646 $21,007,692 $ (20.075,046 $6.227.990 $2.868,136 $ 3,359,854 $40,126,081 1 1 $ 40,687,312 1 1 $ 061 q 1 0 0 0 0 .. •000 a ®® ATTACHMENT 3 CERTIFIED PUBLIC ACCOUNTANTS • Brandon W. Burrows, CPA • David E. Hale, CPA, CFP A Professional Corporation • Donald G. Slater, CPA • Richard K. Kikuchi, CPA • Susan F Matz, CPA • Shelly K. Jackley, CPA • Bryan S. Gruber, CPA • Deborah A. Harper, CPA INDEPENDENT ACCOUNTANTS' REPORT ON AGREED -UPON PROCEDURES APPLIED TO APPROPRIATIONS LIMIT WORKSHEETS To the Honorable Mayor and Members of the City Council City of La Quinta, California We have performed the procedures enumerated below to the accompanying Appropriations Limit Worksheet No. 6 (or other alternative computation) of the City of La Quinta, Califomia for the year ended June 30, 2012. These procedures which were agreed to by the City of La Quinta and the League of California Cities (as presented in the publication entitled Agreed -Upon Procedures Applied to the Appropriations Limitation Prescribed by Article XI I I-B of the California Constitution), were performed solely to assist the City of La Quinta in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. The City of La Quinta's management is responsible for the Appropriations Limit Worksheet No. 6 (or other alternative computation). This agreed -upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested, or for any other purpose. The procedures performed and our findings were as follows: 1. We obtained the completed Worksheets No. 1 through No. 7 (or other alternative computations) and compared the limit and annual adjustment factors included in those worksheets to the limitand annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote of the City Council. Finding: No exceptions were noted as a result of our procedures. 2. For the accompanying Appropriations Limit Worksheet No. 6 we multiplied line A, last year's limit, by line D, ratio of change, and agreed the resulting amount to line E, this year's limit. Finding: No exceptions were noted as a result of our procedures. 3. We compared the current year information presented in the accompanying Appropriations Limit Worksheet No. 6 to the other worksheets described in No. 1 above. Finding: No exceptions were noted as a result of our procedures. 4. We compared the prioryear appropriations limit presented in the accompanying Appropriations Limit Worksheet No. 6 to the prior year appropriations limit adopted by the City Council for the prior year. Finding: No exceptions were noted as a result of our procedures. C' 64 Lance, Soil & Longhand, LLP 203 North Brea Boulevard • Suite 203 • Brea, CA 92821 TEL: 714.672.0022 • Fax: 714.672.0331 www.lslcpas.com Orange County • Temecula Valley • Silicon Valley 000 LSE GOO 00 MIMED PUBLIC ACCOUNTANTS To the Honorable Mayor and Members of the City Council City of La Quints, California Page 2 We were not engaged to, and did not perform an audit, the objective of which would be the expression of an opinion on the accompanying Appropriations Limit Worksheet No. 6. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to, you. No procedures have been performed with respect to the determination of the appropriation limit for the base year as defined by the League publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines. This report is intended solely for the use of the City of La Quinta, California, and should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes. However, this report is a matter of public record and its distribution is not limited. i 10 Brea, California June 8, 2012 0;6 5 CITY OF LA QUINTA 2011-2012 APPROPRIATIONS LIMIT CALCULATION A. 2010-2011 APPROPRIATIONS LIMIT: B. 2011-2012 CHANGE IN PER CAPITA PERSONAL INCOME: C. 2011-2012 CHANGE IN POPULATION: D. RATIO OF CHANGE (1.0251 x 1.0142) E. 2011-2012 APPROPRIATIONS LIMIT: ($88,404,325 x 1.03965642) $ 88,404,325 2.51 % 1.42% x 1.03965642 91,910,12 " 066 t FA MEETING DATE: July 3, 2012 AGENDA CATEGORY: ITEM TITLE: Denial of Claim for Damages Filed by: BUSINESS SESSION: Duane Erickson; Date of Loss - April 26, 2012 3 CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: RECOMMENDATION: Deny the Claim for Damages filed by Duane Erickson; Date of Loss - April 26, 2012. FISCAL IMPLICATIONS: The amount of the claim was for $1,203.90. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: A claim was filed,by Duane Erickson with a reported date of loss of April 26, 2012 (Attachment 1). It was forwarded to Carl Warren & Co., the City's claims administrator. Carl Warren & Co. has reviewed the matter and recommends that the City Council deny the claim. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Deny the Claim for Damages filed by Duane Erickson with a reported date of loss of April 26, 2012; or 2. Accept the claim, or some portion thereof; or 3. Provide staff with alternative direction. 067 Respectfully submitted, Terry L. IDeeringer, Human Resources/ General Services Manager Approved for submission by: Attachment: 1. Duane Erickson, Claim for Damages City Manager ,if G 6 8 RECEH FILE WITH: CITY CLERK'S OFFICE CLAIM FOR tE'fi ATTACHMENT 1 P.O.La 1504 TO PERSON OR PROPff>Ti IM C P.O. Box 1504 ;C�RA No. La Ouinta, CA 92253 CITY CLERK'S OFFCE INSTRUCTIONS 1. Claims for death, injury to person or to personal property must be filed not later than six months after the occurrence. (Gov. Code § 911.2.) a 2. Claims for damages to real property must be filed not later than 1 year after the occurrence. (Gov. t n Code § 9112.) 3. Read entire claim form before filing. —i ca 4. See page 2 for diagram upon which to locate place of accident. r o M -ri 5. This claim form must be signed on page 2 at bottom. 70 r-- r. 5. Attach separate sheets, if necessary, to give full details. SIGN EACH SHEET. > TO: (Name of City] Date of Birth of Claimant o Name of Claimant Guar Occupation of laimant: o a rn e S V ( �� G3W Home Address of Claimant ity and $fate (e� y/O I-ee G. o "IZ Home Telephone of Claimant: Business Address of Claimant: / City a d State UL� Bu 'nepc Telephone of Claifll�nt i! Give address and telephone number to which you desire nofice or oo muni ons to be sent / `i 6� Claimant's Social Security No.: ,regarding claim: 7 — 3�Z — 06 ! /(oS0 Gv�GfPa i� /�G� �O f'll�T1 i Vf�C 5 44 e0q / 9 IF.2 "P6 S - When did D GE or INJURY occur? Names of any city employees involved in INJURY or DAMAGE: Date: Z(o Time: -` dry .1 If Claim Is r Equitable Indemnity, give date claimant served with the complaint: Date: Where did DAMAGE or INJURY occur? Describe fully, and locate on diagram on reverse side of this sheet Where appropriate, give street names and address and measurements from landmarks: escribe in detail how the D MAGE C"/iv kr% fly �0/i fr y f /Zco or INJURY occulted. q (� -(r,? /'-uja/C Why do u claim the city is responsible? /� Gr was �taj/ yeu f Hof ,o��vicli /dr�i/ .c' 7A -fet-'P /�'K A/-Pf//QG1C P �tfilii5 �uCPt�dl�i� ouY fo�Sf?��o�2 Describe in detail each INJURY or DAMAGE '4gw J� GfP l �Py S( � deal"., `tecje wvw (e f /CltS !� y0614fi7�7tJ4 SEE PAGE 2 (OVER) THIS CLAIM MUST BE SIGNED ON REVERSE SIDE 069 The amount claimed, as of the date of presentation of this claim, is computed as follows: Damages Incurred to date (exact): ice' fz' e- Estimated prospective damages as far as known: Damage to property .......4. , .. $ Future expenses for medical and hospital care .$ Expenses for medical and hospital care ..... $ Future loss of earnings ....................$ Loss of earnings ........................ $ Other prospective special damages ..........$ Special damages for ..................... $ Prospective general damages ..............$ Total estimated prospective damages .......$ General damages ....................... $ Total damages incurred to date .......... $ /.?,o 3 Total amount claimed as of date of presentation of this daim: $ Was damage and/or injury investigated by police? 1U0 If so, what city? N Were paramedics or ambulance caged? _1V0 If so, name city or ambulance [ff If injured, state date, time, name and address of doctor of your Initial visit 1i4 WITNESs� S to DAMAGE9� INJUR : list ag persons and addresses of pers ns kno to av infonnatiog: Name /Yalvt L f'j//GScit Address /IS�G'a/G(Pu (� C30/d�hone 7/�-3��—��� Name Address Phone Name Address Phone DOCTOR AND HOSPITALS: Hospital Address Phone Doctor Address Phone Doctor Address Phone READ CAREFULLY Forall accidentdalms place on following diagram name of streets, including North, accident by °A-1" and location of yourselfor your vehicle at the time of the acaden East, South, And West; indicate place of accident by "X" and by showing house by'B-1" and the point of impact by W numbers or distances to street comers. If City Vehicle was involved, designate by loger N location of City Vehicle when you first saw it, and by "B" location of yourself NOTE: Idiagrams below do not fit the situation, attach hereto a proper diagran or your vehicle when you first saw City Vehicle; location of City vehicle at time of signed by claimant. HL SIDEWALK CURB CURB PARKWAY SIDEWALK 77fl signature of ualmant or person hung on ms Denan giving relationsmp r ypeu r u me: to Clahnant: �14leite sore 5 �Y�/2 NOTE: CLAIMS MUST BE FILED WITH CITY CLERK (Gov. Code § 915a.) Presentation of a false claim is a felony (Pen. Code § 72.) Date: Estimate ID: Estimate Version: Preliminary Profile 10: Jack's Body Works, Inc. 68350 Commercial Road, Cathedral City, CA 92234 (760) 3214752 Fax: (760)770.0217 Email: jack(jacksbodyworks.com Damage Assessed By: DOUG IPROSISE Deductible: UNKNOWN Owner: DUANE ERICKSON Address: 1650 GOLDEN HILLS RD, COLORADO SPRINGS, CO 80919 6/ 412012 02:23 PM 8763 0 65.00 Mitchell Service: 911304 Description: 2011 Audi A5 Prem. Plus Quattr Vehicle Production Date: 3111 Body Style: 2D Conv - Drive Train: 2.01- Turbo Inj 4 Cyl 8A AWD VIN: WAULFAFH9BN015422 License: 624RXE CO Mileage: 7,305 OEMIALT: 0 Search Code:: None Color: SILV Options: PASSENGER AIRBAG, DRIVER AIRBAG, POWER DRIVER SEAT, POWER LOCK, POWER WINDOW CRUISE CONTROL, TILT STEERING COLUMN, POWER PASSENGER SEAT TELESCOPIC STEERING COLUMN, ANTI -LOCK BRAKE SYS., FOG LIGHTS, ALUM/ALLOY WHEELS AUXILIARY INPUT, LEATHER STEERING WHEEL, SATELLITE RADIO, 4WD OR AWD FRONT AIR DAM, AUTO AIR CONDITION, TRIP COMPUTER WIND DEFLECTOR OR BUFFER FOR CONVERTIBLE, SUBWOOFER, VARIABLE ASSISTED STEERING SIDE AIRBAGS, ANTI -THEFT SYSTEM, SIDE HEAD CURTAIN AIRBAGS AMIFM STEREO CDIMP3 PLAYER, ELECTRONIC STABILITY CONTROL, FRONT BUCKET SEATS FRONT SEATS WITH POWER LUMBAR SUPPORT, INTERIOR AIR FILTER, KEYLESS ENTRY SYSTEM POWER DISC BRAKES, POWER HEATED EXTERIOR MIRRORS, REAR LOCKING DIFFERENTIAL STEERING WHEEL AUDIO CONTROLS Line Entry Labor Item _ Number Type_ 1 102508 BOY 2 AUTO REF 3 101271 BDY 4 101273 BDY 5 100318 BDY 6 102245 BDY 7 100719 REF 8 101870 BDY 9 101872 BDY 10 100759 BDY 11 101141 BDY 12 AUTO REF 13 933003 REF 14 933007 REF 16 933017 REF 16 933018 REF 17 AUTO 18 AUTO 19 AUTO - Line Item Operation Description REPAIR L Frt Door Shell REFINISH L Frt Door Outside REMOVEIINSTALL REMOVEIINSTALL REMOVEIINSTALL REMOVEIINSTALL BLEND REMOVEIINSTALL REMOVEIINSTALL REMOVEIINSTALL REMOVEIINSTALL ADD'L OPR i ADD'L OPR ADD'L OPR ADD'L OPR ADD'L OPR ADO'L COST ADD'L COST ADD'L COST L Frt Otr Belt Moulding L Frt Door Mirror L Frt Door Trim Panel L Frt Otr Door Handle L Quarter Panel Outside L Rocker Moulding L Belt Moulding L Rear Combination Lamp Rear Bumper Cover Clear Coat TINT COLOR FEATHER, PRIME & BLOCK FINISH SAND AND BUFF MASK FOR OVERSPRAY PaInVMaterials Shop Materials Hazardous Waste Disposal ESTIMATE RECALL NUMBER: O U0412012 14:19:27 8763 - Mitchell Data Version: OEM: MAR_12_V Copyright (C) 1994 - 2012 Mitchell International Software Version: 7.0.440 All Rights Reserved PartTypel Dollar Labor Part Number ____ Amount_ Units Existing 4.0'# C 2.2 0.3 # 0.8 # INC 0.3 C 1.0 0.8 0.3 INC 1.6 # 1.1 1.8• 7.50 • 0.5' 262.00 4.00 5.00 Page 1 of 2 �.�,. 07 -Judgment Item # - Labor Note Applies C - Included in Clear Coat Calc Estimate Totals Date: 51412012 02:23 PM Estimate ID: 8763 Estimate Version: 0 Preliminary Profile ID: 55.00 Add9 Labor Sublet I. Labor Subtotals Units Rate Amount Amount Totals 11. Part Replacement Summary Amount Body 8.0 55.00 0.00440.00 Refinish 8.6 65.00 7.50 0.00 480.60 Total Replacement Parts Amount 0.00 Non -Taxable Labor 920.50 Labor Summary 16.6 1 920.60 III. Additional Costs Amount IV. Adjustments _ Amount Taxable Costs 258.00 Customer Responsibility 0.00 Sales Tax @ 8.750% 22AO Non -Taxable Costs - 6.00 Total Additional Costs 283.40 Paint Material Method: Rates Init Rate = 40.00 , Init Max Hours = 99.9, Addl Rate = 0.00 I. Total Labor. $20.60 II. Total Replacement Parts: 0.00 III. Total Additional Costs: 283AO - Gross Total: 1.203.90 IV, Total Adjustments: 0.00 - Net Total: 1,203.90 This is a preliminary estimate. Additional chanties to the estimate may be required for the actual repair. ESTIMATE RECALL NUMBER: 05104/2012 14:19:27 8763 Mitchell Data Version: OEM: MAR 12_V Copyright (C) 1994 - 2012 Mitchell International Page 2 of 2 Software Version: 7.0.440 All Rights Reserved 012 F y C� S 5 OF CITY SA / HA / FA MEETING DATE: July 3, 2012 ITEM TITLE: Approval of Second Reading and Adoption of Ordinance No. 499 Amending the Official Zoning Map by Changing Two Developed Public Properties From Village Commercial to Major Community Facilities. Property Locations: La Quinta Museum, 77885 Avenida Montezuma and the Village Parking Lot, NW Corner of Avenida Montezuma/Bermudas. Applicant: City of La Quinta RECOMMENDATION Adopt Ordinance No. 499 on second reading. FISCAL IMPLICATIONS: None. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: AGENDA CATEGORY: BUSINESS SESSION: _ CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: The purpose of this amendment is to bring the La Quinta General Plan and Zoning land use designations of certain existing public facility sites into consistency with their current and intended future use as sites serving the community's needs. Section 9.70.090 of the Zoning Ordinance identifies Major Community Facilities (MC) zoning for public schools, government offices, fire and police stations, post offices, libraries, community centers, corporate yards, and similar uses. Both of the sites proposed for the rezoning are developed and functioning as Major Community Facilities but do not have the MC zoning designation. it.,- 013 The two properties included in this amendment are the La Quinta Museum property located at 77885 Avenida Montezuma and the Village Public Parking Lot property located at the northwest corner of Avenida Montezuma and Avenida Bermudas. Both properties are currently designated by the General Plan and the Zoning Ordinance as Village Commercial. The Parking Lot property is surrounded by Village Commercial zoning and the Museum property has Parks and Recreation zoning to the north, Village Commercial zoning to the west and east with Cove Residential zoning to the south. On June 5, 2012, the City Council moved to take up this Zone Change as Ordinance No. 499 on first reading. The City Council further moved to introduce Ordinance No. 499 on first reading. Both motions were unanimously approved. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: Adopt Ordinance No. 499 on second reading; or 2. Provide staff with alternative direction. Respectfully submitted, 5� Susan Maysels, Interim ogity Clerk Approved for s J. Spe�ac4,%City �. _ 074 CIT / SA / HA / FA MEETING DATE: July 3, 2012 ITEM TITLE: Approval of a Request for Proposal for the Preparation of the Preliminary Assessment Formation Report for Several North La Quinta Subdivisions Currently Receiving Special Benefit RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: 5 STUDY SESSION: PUBLIC HEARING: Approve a Request for Proposal (RFP) for the preparation of the Preliminary Assessment Formation Report for several north area La Quinta subdivisions that are currently receiving special benefit. FISCAL IMPLICATIONS: None at this time. Once proposals are received and reviewed, staff will bring a recommendation back to City Council along with fiscal implications. CHARTER CITY IMPLICATIONS: None at this time. BACKGROUND AND OVERVIEW: At the April 17, 2012 City Council meeting, staff presented information that identified several north La Quinta subdivisions (Acacia, Cactus Flower, La Quinta Del Oro, La Quinta Highlands, Rancho Ocotillo, Topaz, Marbella, Quinterra, Century Homes/Siena Del Rey, and Inco/Desert Pride) that receive special benefit of having their perimeter, entrance and retention basin landscaping maintained. In particular, the City provides flowers at each of the entrances twice per year, decomposed granite to the flower beds as needed, and tree trimming annually similar to the maintenance that is normally provided by a homeowners association. The above mentioned subdivisions were not required to form homeowners associations (HOA's) or maintenance organizations when they were entitled but were instead incorporated into the City's Landscape and Lighting District. it - 075 The City Council adopted the Fiscal Year 2012/2013 Engineer's Annual Levy Report prepared by Willdan Financial. Table 3 of the Engineer's Report presents an estimated cost of $140,282 for the maintenance and administration of the north La Quinta subdivisions in Fiscal Year 2012/2013. Since these improvements benefit the adjacent subdivisions only this cost could be considered a special benefit and therefore the property owners who benefit from these improvements could be assessed these costs. This would require evaluation in an engineer's report. At the April 17, 2012 City Council meeting staff was directed to move forward in selecting a consultant to prepare a preliminary assessment formation report for these north La Quinta subdivisions. Attachment 2 is the RFP to solicit for these consulting services, and the scope of work includes: • coordinate assessment district formation process; • prepare updated property and ownership information; • develop the district budget; • develop the assessments; • prepare an engineer's report; • prepare resolutions for the formation of the assessment districts; • conduct public outreach and education services; • conduct community, survey to assess viability of assessments; • implement a public information plan; • develop ballot language, prepare notices and ballots, print and mail notices and ballots; and • coordinate public hearing and ballot tabulation. Staff has already implemented cost -saving measures such as reducing plant replacement costs at the entrances to these developments as part of the Fiscal Year 2012/2013 budget. This will help reduce the cost for maintaining these perimeters. Further costs savings measures would need to be taken should the property owners vote against an assessment district. The City Manager intends to appoint a selection committee consisting of the following members: Timothy R. Jonasson, Public Works Director/City Engineer; James Lindsey, Maintenance Services Manager; and Ann Dixson, Management Analyst. If the City Council wishes to appoint a different Selection Committee, the Committee would be subject to the Brown Act unless the Committee consists solely of two council members. If the City Council approves the RFP, the following events would occur: City Council Approves RFP RFP Advertisement Period Review Proposals/Consultant Interviews July 3, 2012 July 9th through August 17th 2012 August 20th through August 31 st 2012 016 Consideration of PSA by City Council September 18, 2012 Completion of Engineer's Report January 2013 Public Outreach ' February through April 2013 Property Owner Balloting May 2013 FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Approve the Request for Proposal for the preparation of the Preliminary Assessment Formation Report for several north area La Quinta subdivisions that are currently receiving special benefit; or 2. Provide staff with alternative direction. Respectfully submitted, R dT othy R. Jo as P.E. Public Works irec or/City Engineer Approved for submission by: Orank k, :City �Mana�ger Attachments: 1. Fiscal Year 2012/2013 Engineer's Annual Levy Report 2. Request for Proposal the preparation of the Preliminary Assessment Formation Report ATTACHMENT Is City! of La Quinta Street Lighting and Landscape District No. 89-1 2012/2013 ENGINEER'S ANNUAL LEVY REPORT Intent Meeting: April 17, 2012 Public Hearing: May 15, 2012 WmWILLDAN Financial Services G.73 ENGINEER'S REPORT AFFIDAVIT CITY OF LA QUINTA Street Lighting and Landscape District No. 89-1 Riverside County, State of California This Report and the enclosed diagrams show the exterior boundaries of the District as they existed at the time of the passage of the Resolution of Intention. Reference is hereby made to the Riverside County Assessor's maps for a detailed description of the lines and dimensions of parcels within the District. The undersigned respectfully submits the enclosed Report as directed by the City Council. Dated this _I � day of _Ap,', , 2012, Willdan Financial Services Assessment Engineer On Behalf of the City of La Quinta BY: �ed Stacee Reynolds Senior Project Manager, District Administration Services By: Richard Kopecky R. C. E. # 16742 11 079 ENGINEER'S REPORT CITY OF LA QUINTA STREET LIGHTING AND LANDSCAPE DISTRICT NO. 89-1 I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll thereto attached was filed with me on the day of 2012. BY: Susan Maysels, Interim City Clerk City of La Quinta Riverside County, California I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll thereto attached, was approved and confirmed by the City Council of the City of La Quinta, California, on the day of 2012. BY: Susan Maysels, Interim City Clerk City of La Quinta Riverside County, California I HEREBY CERTIFY that the enclosed Assessment Roll was filed with the County Auditor of the County of Riverside, on the day of 2012. BY: Susan Maysels, Interim City Clerk City of La Quinta Riverside County, California 080 TABLE OF CONTENTS /. OVERVIEW 1 A. INTRODUCTION 1 B. HISTORICAL BACKGROUND AND LEGISLATION 1 A DESCRIPTION OF THE DISTRICT 2 A. DISTRICT BOUNDARIES AND SPECIFIC AREAS OF IMPROVEMENT 2 B. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT 2 C. IMPROVEMENTS WITHIN THE DISTRICT 4 X METHOD OFAPPORTIONMENT 5 A. GENERAL 5 B. BENEFITANALYSIS 5 C. METHODOLOGY 7 IV DISTRICT BUDGETS 10 A. DESCRIPTION OF BUDGET ITEMS B. 2012/2013 DISTRICT BUDGET C. AREAS OF ADDITIONAL SPECIAL BENEFIT 10 11 14 APPENDIX A - DISTRICT ASSESSMENT DIAGRAM 17 APPENDIX B - 2012/2013 COLLECTION ROLL 18 p' C81 WILLDAN Financial Services /. OVERVIEW A. INTRODUCTION The City of La Quinta (the "City") annually levies and collects special assessments in order to provide and maintain the facilities, improvements and services within Street Lighting and Landscape District No. 89-1 (the "District"). The District was formed in 1989 pursuant to the Landscaping and Lighting Act of 1972 (the "1972 Act"), Part 2 of Division 15 of the Streets and Highways Code and authorizes the Agency to annually levy and collect assessments to maintain the services and improvements related thereto. This Engineer's Annual Levy Report (the "Report") describes the District, any changes to the District, and the proposed assessments for Fiscal Year 2012/2013. The proposed assessments are based on the estimated cost to maintain improvements that provide special benefit to properties assessed within the District. The various improvements within the District and the costs of those improvements are identified and budgeted separately, including expenditures, deficits, surpluses, revenues, and reserves. The word "parcel," for the purposes of this Report, refers to an individual property assigned its own Assessor Parcel Number ("APN") by the Riverside County Assessor's Office. The Riverside County Auditor/Controller uses Assessor Parcel Numbers and specific fund numbers on the tax roll to identify properties assessed for special district benefit assessments. Each parcel within the District is assessed proportionately for those improvements provided by the District and from which the parcel receives special benefit. Following consideration of public comments, written protests at a noticed public hearing and review of the Report, the City Council may order amendments to the Report or confirm the Report as submitted. Following final approval of the Report, and confirmation of the assessments, the Council may order the levy and collection of assessments for Fiscal Year 2012/2013 pursuant to the 1972 Act. In such case, the assessment information will be submitted to the County Auditor/Controller, and included on the property tax roll for each benefiting parcel for Fiscal Year 2012/2013. B. HISTORICAL BACKGROUND AND LEGISLATION The assessments for the District provide a special benefit to the parcels assessed, and the City utilizes General Fund Revenues to fund improvements and services that are considered general benefit. 2012/2013 LLD 89-1 Page 1 of 18 082 �VWI LLDAN � Financial Services This District was formed pursuant to the 1972 Act, which permits the establishment of assessment districts by cities for the purpose of providing for the maintenance of certain public improvements, which include the facilities existing within the District, as those improvements provide a special benefit to parcels. The City Council reviews the current and projected years' costs for the construction, operation, maintenance, and servicing of the District facilities and sets the assessment for the ensuing fiscal year, which runs between July 1 and June 30. A DESCRIPTION OF THE DISTRICT A. DISTRICT BOUNDARIES AND SPECIFIC AREAS OF IMPROVEMENT The boundaries of the District are coterminous with the boundaries of the City. The Diagram of the District showing the exterior boundaries has been submitted to the City Clerk at the City and is included by reference. B. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT As applicable or may be applicable to this District, the 1972 Act defines improvements to mean one or any combination of the following: 2012/2013 • The installation or planting of landscaping. • The: installation or construction of statuary, fountains, and other ornamental structures and facilities. • The installation or construction of public lighting facilities. • The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof, including, but not limited to, grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities. • The'maintenance or servicing, or both, of any of the foregoing. • The acquisition of any existing improvement otherwise authorized pursuant to this section. LLD 89-1 Page 2 of 18 ,.n.j . 083 WILLDAN Financial Services Incidental expenses associated with the improvements including, but not limited to: • The cost of preparation of the report, including plans, specifications, estimates, diagram, and assessment; • The costs of printing, advertising, and the publishing, posting and mailing of notices; • Compensation payable to the County for collection of assessments; • Compensation of any engineer or attorney employed to render services; • Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements; • Any expenses incidental to the issuance of bonds or notes pursuant to Section 22662.5. • Costs associated with any elections held for the approval of a new or increased assessment. The 1972 Act defines "Maintain" or "maintenance" to mean furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including: • Repair, removal, or replacement of all or any part of any improvement. • Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury. • The removal of trimmings, rubbish, debris, and other solid waste. • The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. Furthermore, the 1972 Act specifies that where the cost of improvements (other than maintenance and operations) is greater than can be conveniently raised from a single annual assessment, an assessment to be levied and collected in annual installments. In that event, the governing body may choose to do any of the following: 2012/2013 • Provide for the accumulation of the moneys in an improvement fund until there are sufficient moneys to pay all or part of the cost of the improvements. LLD 89-1 Page 3 of 18 p.�. 084 VW I LLDAN '� ! / Financial Services Provide for a temporary advance to the improvement fund from any available and unencumbered funds of the local agency to pay all or part of the cost of the improvements and collect those advanced moneys from the annual installments collected through the assessments. • Borrow an amount necessary to finance the estimated cost of the proposed improvements. The amount borrowed, including amounts for bonds issued to finance the estimated cost of the proposed improvements. C. IMPROVEMENTS WITHIN THE DISTRICT The District improvements are the operation, servicing and maintenance of landscaping, lighting and appurtenant facilities, including, but not limited to, personnel, electrical energy, water, materials, contracting services, and other items necessary for the satisfactory operation of these services described as follows: • Landscaping and Appurtenant Facilities include, but are not limited to, landscaping, planting, shrubbery, trees, irrigation systems, hardscapes, fixtures, sidewalk maintenance and appurtenant facilities, located within the public street rights -of -way, parkways, medians, trails, and dedicated street, drainage or sidewalk easements within the boundary of the District. • Lighting and Appurtenant Facilities include, but are not limited to, poles, fixtures, bulbs, conduits, equipment including guys, anchors, posts and pedestals, metering devices, controllers and appurtenant facilities as required to provide safety lighting and traffic signals within public street rights -of -way and easements within the boundaries of the District. 201212013 1LLD 89-1 Page 4 of 18 ,.0.j . 085 iVI LLDAN � Financial Services Maintenance is defined as the furnishing of services and materials for the operation and usual maintenance, operation and servicing of the landscaping, public lighting facilities and appurtenant facilities, including repair, removal or replacement of landscaping, public lighting facilities, or appurtenant facilities; providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; and the removal of trimmings, rubbish, debris and other solid waste. Servicing is defined as the furnishing of water for the irrigation of the landscaping and the furnishing of electric current or energy, gas or other illuminating agent for the public lighting facilities, or for the lighting or operation of landscaping or appurtenant facilities. The plans and specifications for the improvements are on file in the office of the City Engineer and are by reference made a part of this report. METHOD OF APPORTIONMENT A. GENERAL The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements that include the construction, maintenance and servicing of public lights, landscaping and appurtenant facilities. The 1972 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value: "The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements." The formula used for calculating assessments in this District therefore reflects the composition of the parcels, and the improvements and services provided, to apportion the costs based on benefit to each parcel. B. BENEFIT ANALYSIS Properties within the District boundary are found to derive a special benefit from the improvements provided by the District. These properties include single family residential, non-residential, vacant residential and non-residential, golf courses, 2012/2013 LLD 89-1 Page 5 of 18 aI 086 WI LLDAN Financial Services agricultural and hillside conservation properties, vacant and remote non- residential and rural and estate residential properties. Special Benefits The method of apportionment (method of assessment) is based on the premise that each assessed parcel receives special benefit from the improvements maintained and funded by the assessments, specifically, landscaping and lighting improvements installed in connection with the development of these parcels. The desirability of properties within the District is enhanced by the presence of well -maintained parks, landscaping and lighting improvements in close proximity to those properties. The annual assessments outlined in this Report are based on the estimated costs to provide necessary services, operation, administration, and maintenance required to ensure the satisfactory condition and quality of each improvement. The special benefits associated with the parks and landscaping improvements are specifically: • Enhanced desirability of properties through association with the improvements. • Improved aesthetic appeal of properties within the District providing a positive representation of the area. • Enhanced adaptation of the urban environment within the natural environment from adequate green space and landscaping. • Environmental enhancement through improved erosion resistance, and dust and debris control. • Increased sense of pride in ownership of property within the District resulting from well -maintained improvements associated with the properties. • Reduced criminal activity and vandalism) against properties in surroundings and amenities. property -related crimes (especially the District through well -maintained • Enhanced environmental quality of the parcels by moderating temperatures, providing oxygenation and attenuating noise. The special benefits of street lighting are the convenience, safety, and security of property, improvements, and goods, specifically: 2012/2013 • Enhanced deterrence of crime —an aid to police protection. Increased nighttime safety on roads and highways. • Improved visibility of pedestrians and motorists. LLD 89-1 Page 6 of 18 0187 (WILLDAN Financial Services • Improved ingress and egress to and from property. • Reduced vandalism, damage to improvements or property, and other criminal acts. • Improved traffic circulation and reduced nighttime accidents and personal property loss. • Increased promotion of business during nighttime hours in the case of commercial properties. The preceding special benefits contribute to a specific enhancement and desirability of each of the assessed parcels within the District. C. METHODOLOGY Pursuant to the 1972 Act, the costs of the District may be apportioned by any formula or method that distributes the net amount to be assessed among the assessable parcels in proportion to the estimated special benefits to be received by each such parcel from the improvements. The special benefit formula used within the District should reflect the composition of the parcels - and the improvements and services provided therein - to apportion the costs based on estimated special benefit to each parcel. The cost to provide maintenance and service of the improvements within the District shall be equitably distributed among each assessable parcel based on the estimated special benefit received by each parcel. Equivalent Dwelling Units To equitably spread special benefit to each parcel, it is necessary to establish a relationship between the various types of properties within the District and the improvements that benefit those properties. Each parcel within the District is assigned an Equivalent Dwelling Unit ("EDU") factor that reflects its land use, size and development, or development potential. Parcels that receive special benefit from the various District improvements are proportionately assessed for the cost of those improvements based on their calculated EDU. The EDU method assessment for this District uses the Single Family Residential parcel as the basic unit of assessment. A Single Family Residential ("SFR") parcel equals one EDU. Every other land -use is assigned an EDU factor based on an assessment formula that equates the property's specific land -use and relative special benefits compared to the Single Family Residential parcel. The EDU method of apportioning special benefits is typically seen as the most appropriate and equitable assessment methodology for districts formed under the 1972 Act, as the benefits to each parcel from the improvements are apportioned as a function of land use type, size, and development. The following 2012/2013 LLD 89-1 Page 7 of 18 use saffiffl0*1 *ILLDAN i� Financial services table provides a listing of land use types, the EDU use and the multiplying factor used to calculate each each improvement provided in the District. factors applied to that land parcel's individual EDU for During the formation of the District, a methodology was developed to calculate the EDUs for other residential and non-residential land use parcels, which are outlined below for reference. Every land use is assigned EDUs based on the assessment formula approved for the District. Parcels which have been determined to receive greater benefit than the SFR parcel are assigned more than 1 EDU and parcels that are determined to receive lesser benefit than SFR parcels are assigned less than 1 EDU as reflected in the Assessment Methodology. o Exempt Parcels 0.0 Single Family Residential Parcels 1.0 per unit Non -Residential Parcels 5.0 per acre; 1.0 minimum Vacant Residential Parcels 0.33 per unit Vacant Non -Residential Parcels 1.65 per acre for first 20 acres only Golf Course Parcels 0.50 per acre; 1.0 minimum Agricultural Parcels 0.25 per acre; 1.0 minimum Hillside Conservative Zone Parcels 0.10 per acre Vacant & Remote Parcels 0.825 per acre for first 20 acres only Rural/Estate Residential 1.0 + 0.33 per acre in excess 1 acre Single -Family Residential The City's General Plan allows up to one acre of area for subdivided residential lots. The subdivided single family lot equal to or less than one acre in size is the basic unit for calculation of the benefit assessments. Parcels less than one acre in size zoned for single-family residential use are assessed one (1) EDU. Non -Residential The factor used for converting nonresidential is based on the average number of typical single-family residential lots of five per acre. Therefore, non-residential parcels will be assessed five (5) EDUs per acre with a minimum number per parcel of one (1) EDU. Vacant Residential Parcels defined as single family residential parcels less than one acre and having no structure will be assessed 33 percent (33%) of a single-family dwelling, or 0.33 EDU per parcel. 2012/2013 LLD 89-1 Page 8 of 18 AWILLDAN Financial Services Vacant Non -Residential Parcels not considered single family residential parcels less than one acre, and having no structure will be assessed based on acreage. The typical development in La Quinta occurs in increments of twenty (20) acres or less. The first twenty (20) acres of a Vacant Non -Residential parcel will be assessed at a rate of 33 percent (33%) of developed nonresidential properties, or 1.65 EDU per acre or any portion of an acre. The minimum number of EDUs per parcel is one (1) EDU. Any parcel of land greater than twenty (20) acres is considered open space and exempt from assessment until such time as parcel subdivision or development occurs. Golf Courses Properties identified as golf courses will be assessed a rate of 10 percent (10%) of the developed nonresidential properties, or 0.50 EDU per acre or any portion of an acre. The minimum number per parcel is one (1) EDU. Agricultural Properties identified as agricultural will be assessed a rate of 5 percent (5%) of developed nonresidential properties, or 0.25 EDU per acre or any portion of an acre. The minimum number per parcel is one (1) EDU. Hillside Conservation Parcels located in areas zoned Hillside Conservation per the City's Official Zoning Map will be assessed on the basis of allowable development within the Hillside Conservation Zone. The parcel will be assessed as one dwelling unit per ten (10) acres or 0.10 EDU per acre or any portion of an acre. Vacant and Remote Non -Residential Parcels (Annexation No. 9) Parcels not considered single family residential parcels less than one (1) acre and do not contain structures, will be assessed based on acreage. The City defines Vacant and Remote Non -Residential as parcels physically separated from City services and not readily able to develop due to difficult access and utility limitations. The land values are typically one half the value of other Vacant Non -Residential parcels because of the high cost of constructing appropriate access and utility infrastructures necessary. The Vacant and Remote Non - Residential parcels are assessed a rate of 0.825 EDUs per acre or portion thereof, for the first twenty (20) acres, with a minimum of one (1) EDU per parcel. Rural/Estate Residential Parcels of one acre or more in size, but having only one residential unit are identified as Rural/Estate Residential. These parcels will be assessed a rate of one (1) EDU for the first acre and 0.33 EDUs for each additional acre or portion of an acre. 2012/2013 1 LLD 89-1 Page 9 of 18 U.90 - WILLDAN �J Financial Services Exempt Property Publicly owned property and utility rights -of -way are exempt from assessment, as well as parcels of land shown on the County Assessor's records as Vacant Desert Land, Vacant Mountain Land, Agricultural Preserve and Public Utility owned land. This Report does not propose an increase in the District assessment rates for Fiscal Year 2012/2013 over or above the maximum rate established. The proposed rate per EDU for Fiscal Year 2012/2013 is the same rate assessed for Fiscal Year 2011/2012. The base assessment rate to be approved for Fiscal Year 2012/2013 is $35.60. The maximum assessment rate per EDU may not increase without a vote of the property owners in the District. Therefore, the assessment is proposed to remain at the maximum amount of $35.60 per EDU. This equates to total projected assessment revenue of $961,361. The City proposes the remaining $1,985,759 be funded through a General Fund contribution of $1,732,759 and $253,000 of revenue from CSA 152. IV DISTRICT BUDGETS A. DESCRIPTION OF BUDGET ITEMS The 1972 Act requires that a special fund be established and maintained for the revenues and expenditures of the District. Funds raised by assessment shall be used only for the purposes as stated herein. A contribution to the District by the City may !,be made to reduce assessments, as the City Council deems appropriate. The following describes the services and costs that are funded through the District, shown in the District Budgets. District Costs Personnel — Reflects relevant City Staff salaries, wages and benefits, and also includes Worker's Comp insurance, Stand -By, and Overtime labor. 2012/2013 Contract Services — Includes contracted labor, such as the Riverside County Tax Roll Administration Fees, maintenance and repair of traffic signals, tree trimming, and security service. Rental Services — Reflects funds used for the purpose of uniform rental. Vehicle Operations — Includes the maintenance of fleet vehicles. Utilities — Includes the electric, telephone, and water services. LLD 89-1 Page 10 of 18 WVWILLDAN Financial Services Travel Training & Meetings — Reflects the funds used for the purposes of training and meetings. Information Technology — Includes computers, printers, and other related items and services. Operating Supplies — This item includes plant replacement, safety gear, field materials, and the materials used for the purposes of removing graffiti. Small Tools/Equipment — Includes non -capital small tools and equipment. District Administration — The cost for providing the coordination of District services and operations, response to public concerns and education, as well as procedures associated with the levy and collection of assessments. This item also includes the costs of contracting with professionals to provide any additional administrative, legal or engineering services specific to the District including any required notices, mailings or property owner protest ballot proceedings. B. 2012/2013 DISTRICT BUDGET For the purpose of estimating costs for the maintenance and servicing, actual costs are used where possible. However, where the improvements are new, or where actual maintenance experience is lacking, cost estimates will be used to determine costs. The Budget of estimated cost of operation, servicing, and maintenance for Fiscal Year 2012/2013 is summarized on the next page in Table 1. 2012/2013 LLD 89-1 Page 11 of 18 G9"l �FWILLDAN Services Table 1 Fiscal Year 2 12/2013 Budget '. Personnel Salaries -Permanent Full Time $204,401 $82,039 $122,362 Other Benefits & Deductions 92,045 37,435 54,610 Stand By Stand By Overtime Overtime Total Personnel $296,446 $119,474 $176.972 Contract Annual Lighting & Landscape Report $15,000 $15,000 Services Civic Center Campus Lake Maintenance 4,000 4,000 Landscape Lighting Maintenance 147,500 127,500 20,000 Financial Services Admin. Fee 15,000 15,000 Cityv vide Maintenance Contract 967,335 588,855 378,480 Undeveloped Parks PM10 Services Maintenance & Repair 15,000 15,000 CVWD lease -Pioneer Dog Park 1 1 Tree Trimming 21,000 15,000 6,000 Janitorial Services 28,000 28,000 Security Service - Corporation Yard 250 1.350 1,000 Total Contract Services $1.215:386 $762,705 $452.481 Rental Services Uniforms $1,320 $1,320 $0 Total Rental Services $1,320 $1,320 $0 Park Equipment Facilities Charges $1,923 $1,923 Vehicle Fleet Maintenance 6,638 6,638 Operations Facility & Equipment De reciation 502,523 502,523 Total Vehicle Operations $511,084 6,638 $504,446 Utilities Electric $295,000 $149,000 $146,000 Phone 800 - 400 400 Water 322,000 200.000 122.000 Total Utilities $617 800 $349 400 $268,400 Travel Training & $1,130 $530 $600 Meetings Total Travel Training & Meetings $1 130 $530 $600 Information Computers Printers and Services $10,355 $4,931 $5,424 TechnologyTotal Information Technolo $10 355 $4 931 $5,424 Operating Plant Replacement $56,000 $50,000Supplies $6,000 Graffiti Removal 25,000 10,000 15,000 Safety Gear 400 400 Field Materials 85,000 35,000 50.000 Total Operating Supplies 1 $166400 $95,400 $71000 Small Tools I Non -Capital $250 $250 $0 Equipment Total Small Tools/Equipment $250 $250 $0 Total Landscape & Linhting Budget $2,819.971 $1,340,648 $1,479,323 District Public Works Administration $32,093 $32,093 $0 Administration Ci ide Administration 95.056 38,329 56,727 Total District Administration $127.149 $70 422 $56,727 Total Landscape & Lighting Expenditures $2,947,120 $1,411,070 $1,536,050 Less CSA 152 Revenue $253,000 Less General Fund Contribution $1,732,759 Balance to Levy $961,361 Total EDU 27,008 Levy Per EDU $35.60 2012/2013 LLD 89-1 Page 12 of 18 I,�1 WWILLDAN Financial services The following information was obtained from the Riverside County Assessor's Secured Roll, Assessor's Parcel Maps, and the City's Planning Department. The land use categories were developed to classify the different land use types in the City. Table 2 P ' ' @ti7 Agricultural 19 371.80 93.31 $3,321.80 93.30 $3,321.80 Exempt 2,282 9,492.49 0.00 0.00 0.00 0.00 Golf Course 288 3,540.64 1,840.56 65,522.20 1,827.36 65,052.28 Hillside Conservation 12 319.03 31.90 1 1,135.62 31.90 1,135.62 Multi -Family Residential 38 92.81 643.00 22,890.80 643.00 22,819.60 Non -Residential 256 555.37 2,679.65 95,395.54 2,805.40 99,181 Rural/ Estate 52 108.08 95.45 3,397.38 87.67 3,121 Single Family Residential 19,855 2,428.11 19,930.00 709,508.00 19,841.00 706,304 Vacant/ Remote 18 338.97 214.78 7,646.04 180.96 6,442 Vacant Non -Residential 244 654.34 767.78 27,330.80 681.95 24,276 Vacant Residential 2,472 1,177.62 788.37 1 28,046.86 1 815.76 29,021 9WOM I Wt: :i fflamgo I OZIMM (1) The difference in the "Balance to Levy" figure in the previous table and the land use classification proposed levy in this table is due to the Riverside County even penny requirement for each charged parcel. At the time of the Report there was a decrease in EDU assessed of 76.50 over the prior year estimates. Actual changes will be based on the final County Secured Roll for Fiscal Year 2012/2013. The difference is due to changes in County Land Use Classifications and development. 2012/2013 LLD 89-1 Page 13 of 18 0,94 WILLDAN � �Financial Services C. AREAS OF ADDITIONAL SPECIAL BENEFIT In conjunction with the review of the District budget, Willdan analyzed several North La Quinta subdivisions that receive special benefits from the District by having their perimeter and entrance landscaping maintained by the District. Table 3 shows certain areas within the City that require additional maintenance costing approximately $126,721 annually. These maintenance costs include turf, shrub, irrigation, as well as water, electric and plant replacement costs. The District's budget includes the following administration line items: $70,422 for administrative costs, $119,474 for Personnel costs, $15,000 for the Engineer's Report and $15,000 for financial services administration fee, totaling $219,896. Dividing $219,896 by the District's total EDU count of 27,008 yields an administration cost of $8.14 per EDU. In addition to the maintenance costs for the areas shown in Table 3 below, it is estimated that $13,561 is required for administration, which was derived by multiplying $8.14 times the number of lots (1,666) in those areas receiving additional benefits. This $8.14 per EDU figure is an estimate and it is not indicative of what the actual administration cost would be in these areas after a more detailed assessment formation engineering analysis is completed. The total maintenance and administration costs for the additional work required in these areas total approximately $140,282 as shown in Table 3 below. These costs are currently being financed by the the District. In order for the City to recover these funds through assessments placed on properties, certain proceedings would need to take place. This involves the City Council initiating proceedings through resolution to form a landscaping district under the 1972 Act, and ultimately sending out ballots to the affected property owners in conformance with Proposition 218. A landscaping district could be formed as an overlapping district, which would be in addition to the current assessment. A separate Engineer's Report detailing the analysis of special and general benefit would be required describing the improvements and properties involved. After approval of the Engineer's Report, the City Council would need to adopt a resolution stating its intention to form the landscaping district and set the time and place for a public hearing. The district would require that the ballots submitted in favor of the assessment outweigh those submitted in opposition to it, with ballots weighed according to the assessment amount. Table 3 details the maintenance and administration costs involved in the areas being discussed: 2012/2013 LLD 89-1 Page 14 of 18 Z.�J U �O` OD M N O a it GI .J p �C O 3 a m n �o LL N rn a ^ \I o a o M vi v m o" a l Q ao 0 0 A N N O Q Q N n Q n M N tD t0 O H Cj H H H (O n f0 Q O) q N N M ,O N (O Cp N V' O m tD O O 10 yQ N M M Q co O q M A OOC n M ql N M O ' W N n n N N W O f9 a Y lllJll � H H in N H H H aA O O O O O O O O O W O O O O O O O O G C tU N Ld N M ui 16 O 00 y o 0 0 0 Q Q v H w w •U d LO b Q M OND A W Or W Cl) CL fn O O tO N A N n N OQf O m ui i H w H w H dp C p O CO O M f0 N N O O) Qr Q1 i0 ul J J M M N w LO M m O) O N M O Q V m 0 O n N C N Q C N N O Q N r M M M N ID V N H H H H W W < M O N cp N O W M Q M N O 9 M CO M N Q Iq V N (7 (h A M N H H H H m N O O (CU�I rn O N in N N a N C m y ^ N p= N m mJ J v) m E E t o ¢ w m N j a7 d .> E E UI m> p �'c LL c E 3 a m a m a m a > Q ¢ m 3 o Nm y m v LL a ¢ vo ^ m U o o �.o e p c LL lLLL LLa p72�— 00 O C w m L t>6 N L^ Q U O Lp M Ip y_ O y u d @ m ig Uo Va 0-a O m o LL J op J p m K V U Ol N R W O N c m N Ecn O C (0 m N E O p E O C a v R O C y W m N y O C N O m a `°m a RE E.za mm EE `m EE m O c m o � W dp N WK 0.W d(4 N Wtn amN W> m a _ U96 0 c N 17 0 y ro N n Q'Z N 0 b b c°%! 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N '_ O O N N h r N N tl W V1 W M M Y d !6 ma 0 � Y � � O N � O O O n r n VV N O N � � N a W� � N N M Q IO M t9 N N IH l9 0 0 y N O I`9 O a W N t0 a W O N o p O c0 O Cp m V i0 O 17 10 la }{j ro o2 I� t✓f m O N N V Of H M W IA W pp � N o r'L'U�Jyyf ry lli.{ N N (n N y 0 O Yl V O «O a T N E v ,d 0 d d y y mma_"i C T U) w rn Uj y rn a a O W 3 c 3 c O a o a ¢0 y � y p� H EE O m` T(n� LL N E N 55 Z d ind O y U d m Q m Q o�u ma> y NT.9N dm EO N C N N T c W mwo om O 3E_E mN y. mep L= N N N N> N v E_ L- cQ 6 6N a 6 nOa m ¢ Cm 7 V Ca 0 00 0 0 « O a U N m Y 10 S M d N Y N N N ?. rl Y E m E E yy E O a day O E a wv O E a E3 En 0 a ma y 9 o N `m Qa V! w V) d�N o coN dm In m 0 m N a 71 09i wWILLDAN Financial Services APPENDIX A— DISTRICT ASSESSMENT DIAGRAM The Boundary Diagrams for the original districts have previously been submitted to the Clerk of the City in the format required under the 1972 Act and are made part of this Report by reference. The parcel identification, lines and dimensions of each parcel within the District are those lines and dimensions shown on the Assessor Maps of Riverside County for the year in which this Report was prepared and is incorporated by reference and made part of this Report. 201212013 LLD 89-1 Page 17 of 18 098 WILLDAN Financial Services APPENDIX B — 2012/2013 COLLECTION ROLL Parcel identification, for each lot or parcel within the District, shall be the parcel as shown on the Riverside County Assessor Parcel Maps and/or the Riverside County Secured Tax Roll for the year in which this Report is prepared. Non -assessable lots or parcels may include government owned land; public utility owned property, land principally encumbered with public right-of-ways or easements and dedicated common areas. These parcels will not be assessed. A listing of parcels within the District, along with the proposed assessment amounts, has been submitted to the City Clerk and, by reference, is made part of this Report. Upon approval of the Report and confirmation of the assessments, the assessment information will be submitted to the County Auditor/Controller, and included on the property tax roll in Fiscal Year 2012/2013. If the parcels or APNs within the District and referenced in this Report, are re -numbered, re -apportioned or changed by the County Assessor's Office after approval of the Report, the new parcel or APNs with the appropriate assessment amount will be submitted to the County Auditor/Controller. If the parcel change made by the County includes a parcel split, parcel merger or tax status change, the assessment amount submitted on the new parcels or APNs will be based on the method of apportionment and levy amount approved in this Report by the City Council. 2012/2013 LLD 89-1 Page 18 of 18 099 ATTACHMENT 2 REQUEST FOR PROPOSALS TO PROVIDE PRELIMINARY ASSESSMENT FORMATION REPORT FOR SEVERAL NORTH AREA LA QUINTA SUBDIVISIONS I. INVITATION You are hereby invited to submit a proposal to prepare a preliminary assessment formation report and services described in the "scope of services" contained herein. Four (4) copies of your proposal shall be submitted no later than 5:00 p.m. on Friday, August 17, 2012. Proposals will be submitted to the attention of Mr. Tim Jonasson, P.E., Director of Public Works, P.O. Box 1504, 78-495 Calle Tampico, La Quinta, California 92247-1504. 11. BACKGROUND The enclosed Fiscal Year 2012/2013 Engineer's Annual Levy Report for the City's Lighting and Landscape District 89-1 includes a preliminary analysis and cost for several north La Quinta subdivisions. III. SCHEDULE City Council Approves RFP RFP Advertisement Period Review of Proposals/Consultant Interviews Consideration of PSA by City Council Completion of Engineer's Report Public Outreach Property Owner Balloting IV. SCOPE OF SERVICES July 3, 2012 July 9th - August 17th 2012 August 20th - August 31 st 2012 September 18, 2012 January 2013 February through April 2013 May 2013 Consultant shall perform the following services: A. Assessment District Coordination & Development 100 Conduct "all hands" kick-off meeting to discuss details of the overall approach to the project. Establish a comprehensive project timeline for the assessment district formation identifying all key milestones that need to be met including outreach efforts and the technical tasks aspects of the formation process. B. Assessment Development For the several north area La Quinta properties currently receiving special benefit from the City, consultant will: 1) update the parcel database with the County Assessor's Office secured roll data currently available to identify any parcel discrepancies and incorporate any updated property changes as well as ownership and mailing information; 2) develop an appropriate method of apportionment and assessments for each parcel and using this data generate the assessment roll for the Engineer's Report, mailing data for public outreach efforts and balloting. 3) develop the improvement budgets to incorporate accurate full cost recovery estimate; 4) develop and finalize a proposed assessment district structure, cost allocation, method of apportionment to be applied based on proportional special benefits, and the proposed assessments. C. Assessment Documentation In accordance with the Landscaping & Lighting Act of 1972 and Article XIIID of the California Constitution (Proposition 218), consultant will prepare the Engineer's Report for the proposed assessments and modifications (if applicable) that will be presented to the City Council. The Engineer's Report will include, but not be limited to, plans and specifications that describe the ongoing maintenance and operation of the areas specified in the scope of this work; method of apportionment that outlines the special benefit conferred on properties within the proposed district; the budget that outlines the costs and expenses to provide maintenance, including incidental expenses authorized by the 1972 Act; assessment diagram that identifies the boundaries of the proposed district(s); the assessment roll containing Assessor Parcel Numbers and their proportional maximum assessment; and an affidavit stating the report has been prepared by a professional engineer. Prior to the scheduled Intent Meeting, the consultant will provide the City with an electronic copy of the Engineer's Report for City staff review and comment. When finalized, a final electronic version as well as two hardcopies of the report will be provided to the City. The assessment roll may be provided to the City as a separate document or electronic file. Consultant will prepare draft resolutions for City review and implementation for the Intent Meeting and Public Hearing. Consultant will assist City in the preparation and review of City Council staff reports. Consultant will attend City Council meetings, be available to answer questions regarding the Engineer's Report and balloting process, and if necessary update the Engineer's Report to reflect changes ordered by the City Council prior to the Public Hearing. D. Public Education/Outreach Services Consultant, in close coordination with City, will develop and implement a Public Information Plan to ensure the City is well positioned for a potential ballot. The Public Information Plan might include, but not be limited to, a custom -designed community survey; development and strategy for communicating key informational messages; direct mail program; community meeting or "town hall" meeting coordination; use of a citizen task force; press coverage (as allowed); response to media or citizen inquiries; and development of ballot language. E. Proposition 218 Notice and Ballot Services Consultant will prepare, print and mail the required notice of the public hearing and assessment ballots that are required pursuant to Proposition 218. Consultant will attend the public hearing and be available to answer questions and to assist the City Clerk with the tabulation of the returned ballots. Consultant will provide ballot tabulation summary of the results as well as a record of each ballot tabulated within two days of the public hearing. V. PROPOSAL FORMAT Proposals (work proposal and cost proposal) are to be submitted in separate envelopes clearly marked with the consultants name address and phone number. Only one proposal per consultant will be considered. �.. 102 Consultants are encouraged to keep their proposals brief and relevant to the specific work required. Proposals shall include the following items: 1.. Work Proposal (envelope 1) - submit 4 copies a. Cover letter on company's letterhead summarizing the proposal and signed by an individual authorized to execute legal documents on behalf of the consultant including: • A summary of the qualifications of the firm to perform the services described herein, including, but not necessarily limited to: - The firm's previous experience in performing similar services for other municipalities; - The firm's ability to produce the required product in a timely fashion and the ability to present any necessary reports or studies to elected officials and/or the general public. b. The proposal shall contain the following: 1) Legal name and address of company and 2) Legal form of company (partnership, corporation, joint venture, etc.). If joint venture, identify the members of the joint venture and provide all information required under this section for each member. c. If company is wholly owned subsidiary of a "parent company," identify the "parent company." d. Description of the Project Team. The names, titles, and qualifications (resumes) of the proposed project manager and support staff and subcontractors who will be conducting the work on this assignment, including their experience and projects in which they had "hands on" responsibility and length of time with the firm. The selected consultant shall not substitute the project manager without prior approval of the City of La Quinta. The project manager will be expected to be fully involved and conversant in the details of the project on a day-to-day basis. e. Scope of work for each project (a description of the work program including a description of deliverables and activities). f. Description of the extent to which City staff support will be required. g. Outline of the proposed work plan for each project. h. Work proposal shall be no more than 25 pages. i. Proposed project schedule to begin no later than September 24, 2012. to 103 2. Cost Proposal (envelope 2) — submit 2 copies The consultant is to submit a detailed cost proposal for all services and materials anticipated in completing the project. Staff hours and extended billing rates per classification of personnel will be indicated for each defined task and/or sub -task. a. A description of the project budget itemized according to individual tasks. Project budgets should include a project schedule with activities, milestones, and deliverables; and project budget defined, at minimum, as follows: ■ By task with a collective total by milestone and deliverable; ■ Labor rates for all project team members; ■ General overhead rates; and ■ Costs for expenses such as printing, travel and attendance at meetings. c. The consultant shall present a specific "not to exceed" fixed fee, including associated fees (i.e., printing costs, attendance at meetings, travel). A requested payment schedule should accompany the work schedule. Each phase of work should have an itemized budget including labor costs and expenses for each piece of work. The proposal should include staff hourly rates. d. Proposed services to be sub -consulted, anticipated subcontractors, and anticipated cost for these services. e. A list of references from other municipalities for similar projects including the name of the organization and the primary contact person(s). ANY PROPOSAL NOT CONTAINING FULL AND COMPLETE RESPONSES TO THE ABOVE MINIMUM ELEMENTS WILL BE DEEMED UNRESPONSIVE TO THIS RFP. ALL LATE AND UNRESPONSIVE PROPOSALS WILL BE SET ASIDE BY THE REVIEW PANEL AND ELIMINATED FROM FURTHER CONSIDERATION. ONLY THOSE SUBMISSIONS RESPONSIVE TO THIS RFP AND SUBMITTED BY THE DEADLINE NOTED BELOW, WILL BE EVALUATED BY THE REVIEW PANEL AND PRESENTED (ONE PROPOSAL) TO THE CITY COUNCIL AS APPROPRIATE. FOUR COPIES WITH ONE BEING AN UNBOUND COPY OF THE RESPONDENT'S PROPOSAL SHALL BE SUBMITTED BY NO LATER THAN 5:00 PM, MONDAY, AUGUST 6, 2012. VI. AVAILABLE BUDGET/CONTRACT The City wishes to negotiate a fixed price contract with a "not to exceed" dollar total based on a clearly defined scope of work. It should be noted that the selected consultant(s) shall be required to meet the insurance requirements outlined in the City's attached Professional Services Agreement (PSA). to 104 Selected prospective consultant shall be required to participate in negotiations with City staff. The successful consultant will be expected to enter into the attached standard City Professional Services Agreement (PSA). VII. SELECTION CRITERIA Work programs will be reviewed by a consultant selection committee. The committee will rank the consultants for contract negotiations based upon the materials submitted within the work proposal. The committee may or may not choose to interview two or more closely -rated firms, but will not expect or schedule time for elaborate presentations. Cost proposals will be opened only after the ranking process is complete. The City will open contract negotiations with the top -ranked firm. The successful consultant will enter into the attached Professional Services Agreement (PSA). Proposals will be evaluated based on the following criteria: • Thoroughness and understanding of the tasks to be completed. • Background and experience in organizational analysis evaluation. • Staff expertise and overall experience of personnel assigned to the work. • Time required to accomplish the requested services. • Responsiveness to requirements of the project. • Recent public sector experience, preferably in a municipal setting, conducting similar studies. • Costs. Vlll. REVISION TO THE RFP The City reserves the right to revise the RFP prior to the date that proposals are due. Revisions to the RFP shall be posted on the City's RFP Manager website www.lgrfpmanager.com as addendums and an email notification will be sent out. The City reserves the right to extend the date by which the proposals are due. IX. DISCRETION AND LIABILITY WAIVER The City reserves the right to exercise discretion and apply its judgment with respect to any proposals submitted. 105 The City reserves the right to reject any proposal, either in part or in its entirety, or to request and obtain, from one or more of the consulting firms submitting proposals, supplementary information as may be necessary for City staff to analyze the proposals pursuant to the consultant selection criteria contained herein. The City may elect to award a contract for either project, or award projects in multiple phases, as is deemed to be in the City's best interest. Should the City award projects in phases, the City reserves the right to award the multiple phases to the same firm. The City may require consultants to participate in additional rounds of more refined submittals before the ultimate selections of a consulting team(s) are made. These rounds could encompass revisions of the submittal criteria in response to the nature and scope of the initial proposals. The consultant, by submitting a response to this RFP, waives all right to protest or seek any legal remedies whatsoever regarding any aspect of this RFP. Although, it is the City's intent to choose only a small number of the most qualified consulting teams to interview with the City, the City reserves the right to choose any number of qualified finalists. This RFP does not commit the City to award a contract, to defray any costs incurred in the preparation of a proposal pursuant to this RFP or to procure or contract for work. All proposals submitted in response to this RFP become the property of the city and public records and, as such, may be subject to public review. The City reserves the right to cancel, in part or in its entirety, this RFP including, but not limited to: selection procedures, submittal date, and submittal requirements. If the City cancels or revises the RFP, all consultants will be notified by e-mail. X. INSURANCE REQUIREMENTS The Consultant shall demonstrate the willingness and ability to provide the required insurance coverage as set forth in the Professional Services Agreement (PSA). All endorsements are to be received and approved by the City prior to the commencement of any work. The successful consultant will be required to enter into a Professional Services Agreement (PSA) with the City and secure a City business license. 106 XI. DIRECTIONS FOR DELIVERY OF THE PROPOSAL Proposals shall be clearly identified as: "Response to Request for Proposals for PRELIMINARY ASSESSMENT FORMATION REPORT FOR SEVERAL NORTH AREA LA QUINTA SUBDIVISIONS". Proposal packages are to be submitted to the City on/or before Friday, August 17 2012 at/or before 5:00 p.m. Proposals received after the stated deadline shall not be accepted. Proposal packages are to be delivered to: Timothy R. Jonasson, Public Works Director/City Engineer City of La Quinta Public Works Department 78-495 Calle Tampico, La Quinta, CA 92253 XII. CONTACTS All questions regarding this project should be directed to Timothy R. Jonasson, Public Works Director/City Engineer at (760) 777-7042. Enclosures: (1) A copy of the City's Professional Services Agreement is attached as an exhibit (before any work is performed on the project, the Agreement must be fully executed). (2) Fiscal Year 2012/2013 Engineer's Annual Levy Report 107 FA MEETING DATE: July 3, 201 ITEM TITLE: Approval of a Request for obtain Professional Engineering Services the Plans, Specifications, and Estimates the Calle Sinaloa/Avenue 52 Sidewalk Im Project Number 201 1-08 RECOMMENDATION: Authorize staff to distribute a Request fo engineering services to prepare the plans, (PS&E) for the Calle Sinaloa/Avenue 52 S 201 1-08; appropriate Community Developr amount of $255,722; and include the Improvements, Project Number 2012-08 Program (CIP). FISCAL IMPLICATIONS: Staff was recently notified by County EDA allocation is $130,372, which is $14,6. requested. This project is estimated to c received $125,350 in CDBG funding, the been approved by County EDA and will be the project. CHARTER CITY IMPLICATIONS: This project is being financed with Commi funds from the U.S. Department of Housinc 5701, (24CFR 85.36) and is subject to Prev� AGENDA CATEGORY: to BUSINESS SESSION: Prepare &E) for CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Proposal (RFP) to obtain professional specifications and engineer's estimate idewalk Improvements, Project Number lent Block Grant (CDBG) funding in the Calle Sinaloa/Avenue 52 Sidewalk with the City's Capital Improvement that the Fiscal Year 2012/2013 CDBG 18 less than the $145,000 originally Est $255,722. To date, the City has )alance of the funding ($130,372) has Sent to the City prior to construction of nity Development Block Grant (CDBG) and Urban Development (24 CFR Part iling Wage Requirements. i 108 BACKGROUND AND OVERVIEW: The proposed improvements are located on Calle Sinaloa/Avenue 52, between Eisenhower Drive and Desert Club Drive, and include the construction of American's with Disability Act (ADA) compliant sidewalk, curb ramps and driveway approaches on the north and south sides of the Calle Sinaloa/Avenue 52 intersection. The project area and proposed improvements are illustrated in the RFP (Attachment 1). These improvements will be coordinated with the Eisenhower Drive and Calle Sinaloa intersection improvements. The estimated cost of these improvements is as follows: Construction: $166,922 Design: $25,500 Inspection/Testing/Survey: $25,000 Administration: $12,800 Contingency: $25,500 Total Anticipated Budget: $255,722 The attached RFP will be used to obtain engineering services to prepare the PS&E. The City Manager intends to appoint a consultant selection committee consisting of the following members: Tim Jonasson, P.E., Public Works Director/City Engineer, Bryan McKinney, Engineering Services/CIP, Principal Engineer, and Nick Nickerson, Project Manager. If the City Council wishes to appoint a different committee, the committee would be subject to the Brown Act unless the committee consists solely of two council members. Contingent upon City Council authorization to distribute the RFP, the following is the anticipated project schedule: City Council Approves RFP Proposal Due Date Recommendations to City Council Project Design (4 months) FINDINGS AND ALTERNATIVES: July 3, 2012 August 20, 2012 September 18, 2012 October 2012 to January 2013 The alternatives available to the City Council include: 1. Authorize staff to distribute a Request for Proposal (RFP) to obtain professional engineering services to prepare the plans, specifications and engineer's estimate (PS&E) for the Calle Sinaloa/Avenue 52 Sidewalk Improvements, Project Number 2011-08; appropriate Community Development Block Grant (CDBG) funding in the amount of $255,722; and 109 include the Calle Sinaloa/Avenue 52 Sidewalk Improvements, Project Number 2012-08 with the City's Capital Improvement Program (CIP); or 2. Provide staff with alternative direction. Respectfully submitted, Timothy R. on ss E. Public Works rec r/City Engineer Approved for submission by: k J. qre-J4ek, City Manager Attachment: 1. Request for Proposal 110 o� F CE`y OF �ti REQUEST FOR PROPOSAL PROFESSIONAL ENGINEERING AND DESIGN SERVICES CALLE SINALOA/AVENUE 52 SIDEWALK IMPROVEMENTS CITY PROJECT NO. 2012-08 CDBG PROJECT NO. 4.LQ.13-11 CDBG PROJECT NO. 4.LQ.09-10 The City of La Quinta requests proposals from qualified professional engineering consultants to prepare a single set of plans, specifications, and estimates (PS&E), and contract bid documents for the Calle Sinaloa Sidewalk Improvements, City Project No. 2012-08, CDBG Project 4.LQ.13-11 and CDBG Project No. 41Q.09- 10. Project Description: The proposed improvements on Calle Sinaloa/Avenue 52, between Eisenhower Drive and Desert Club Drive, include the construction of American's with Disability Act (ADA) compliant sidewalk, curb ramps and driveway approaches on the north and south sides of Calle Sinaloa/Avenue 52. The project area and proposed improvements are illustrated on Attachment 1. Design of the proposed improvements must be coordinated with the intersection improvements at Eisenhower Drive/Calle Sinaloa (either roundabout or traffic signal) which is currently in design. Project Funding: This project is being financed with Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (24 CFR Part 570), (24CFR 85.36) and subject to certain requirements, compliance with "Section 3" Affirmative Action Requirements, Executive Order #11246, and others. Information pertaining to the Federal requirements is on file with the City of La Quinta and the County of Riverside Economic Development Agency. The following forms, presented at Attachment 2, must be completed and included Page 1 of 6 111 with the Professional Engineering Consultant's proposal. Proposals which fail to include the required forms will not be considered. A. Exhibit B-5/13-6: BIDDER CERTIFICATION FOR AFFIRMATIVE ACTION B. Exhibit B-8: QUESTIONNAIRE REGARDING BIDDER C. Exhibit PA-5: SECTION 3 SUMMARY REPORT Services Requested Services and products to be rendered in performing all work associated with project development may include, but may not be limited to: • Perform the appropriate engineering related field survey, verify/establish right-of-way, and prepare base maps. • Prepare project plans, specifications and engineer's estimates of probable construction costs for the proposed improvements: o Improvement plans shall be prepared at 1"=40' scale. Profiles, if required, shall be at 1 "=4' scale. Driveway and access improvements shall be at a scale appropriate for the required work. o The consultant shall prepare Project Specifications and Bid Documents including a detailed project description, bid schedule, payment methods, special provisions, technical specifications, and any specification detail sheets specific to the project. • Consultant coordination will include an appropriate number of meetings with City staff and adjacent property owners. The consultant may be required to attend a City Council meeting. The design consultant will be expected to attend the pre -bid meeting and will respond to contractor request for clarification or information during the bid process. • Perform utility coordination, obtain clearances, and provide the utility coordination documentation to the City at the conclusion of design; • Prepare the appropriate environmental document to comply with the requirements of the California Environmental Quality Act (CEQA); • Consultant will assist the City during the bid and construction phases by responding to Requests for Information (RFI) and provide clarification on its plans as necessary. Page 2 of 6 'o 112 Project Development Process 1. Pre -Design Meeting The pre -design meeting is an initial meeting between the consultant and City staff to clarify project design objectives. 2. Agency Approval Consultant will submit PS&E and/or other necessary documents to City to obtain approval. At a minimum, the consultant should anticipate the following plan check submittals: (1) 1st Review — 35% Concept Review (topo, utilities, ROW) (2) 2nd Review - 85-90% Check Plans & Specs (3) 3rd Review - 100% Check Plans, Specs, & Engineer's Estimate (4) 4th Review - Preliminary Final (screen check) B. Staff approved PS&E will be submitted to the City Council for final approval. C. All approved plans will be provided to the City on compact disk in AutoCAD 2008 or higher format, as well as on "D" size Mylar. Specification documents, including technical specifications, will be provided on digital medium disks in Microsoft Word for Windows format. The Engineer's estimate will be provided in Excel for Windows format. 3. Bidding Phase The consultant will be expected to provide technical support during the bidding and award process. 4. Construction Phase The consultant will be expected to provide technical support during the construction phase. This work objective will include the review and response to Requests for Information (RFI) and/or contractor questions. Proposal Format Proposals (work proposal and cost proposal) are to be submitted in separate envelopes clearly marked with the consultants name, address and phone number. Only one proposal per consultant will be considered. V Page 3 of 6 it 113 Proposal packages are to be submitted to the City on/or before August 20, 2012 at/or before 5:00 p.m. Proposals received after the stated deadline shall not be accepted. Proposal packages are to be delivered to: Bryan McKinney, P.E., Principal Engineer City of La Quinta Public Works Department 78-495 Calle Tampico La Quinta, CA 92253 Consultants are encouraged to keep their proposals brief and relevant to the specific work required. Proposals shall include the following items: 1. Work Proposal (envelope 1) - submit 4 copies A. Cover Letter (1) The name, address and phone number of the consultant's contact person for the remainder of the selection process. (2) Any qualifying statements or comments regarding the consultant's proposal, the information provided in the RFP or the proposed contract. (3) Identification of sub -consultants and their responsibilities. B. Statement of Qualifications (1) A listing of proposed project personnel, including personal experiences and individual resumes for prime and sub - consultants. (2) Consultant's and sub -consultant experience with similar work, including names and current phone numbers of reference for listed projects. C. Project Understanding and Approach A description of your project understanding, and how you will approach the project. D. Scope of Work Program A description of the tasks, sub -tasks, and deliverables that will be provided. E. Project Schedule Page 4 of 6 114 A comprehensive Critical Path Method (CPM) schedule is to be submitted describing the nature and scheduling of proposed tasks and reflecting September 19, 2012 as the start date. The City Council meets the 151 and 3rd Tuesday of each month. The project schedule should include all approvals expected during the project period. 2. Cost Proposal (envelope 2) - submit 2 copies The consultant is to submit a detailed cost proposal for all services and materials anticipated in completing the project. Man-hours and extended billing rates per classification of personnel will be indicated for each defined task and/or sub -task. Selection Process Work Programs will be reviewed by a Consultant Selection Committee. The Committee will rank the consultants for contract negotiations based upon the materials submitted within the Work Proposal. The Committee may or may not choose to interview two or more closely -rated firms, but will not expect or schedule time for elaborate presentations. Cost proposals will be opened only after the ranking process is complete. The City will open contract negotiations with the top -ranked firm.. The successful consultant will be expected to enter into the City's Professional Services Agreement provided as Attachment 3 to this RFP. Page 5 of 6 F 115 CITY OF LA QUINTA COST PROPOSAL SHEET PROFESSIONAL ENGINEERING AND DESIGN SERVICES CALLE SINALOA/AVENUE 52 SIDEWALK IMPROVEMENTS CITY PROJECT NO. 2012-08 CDBG PROJECT NO. 4.LQ.13-11 CDBG PROJECT NO. 4.LQ.09-10 The following is a summary of costs to provide the services outlined in the Request for Proposals for professional engineering consultants to prepare the PS&E for the Calle Sinaloa/Avenue 52 Sidewalk Improvements, City Project No. 2012-08, CDBG Project 4.LQ.13-11 and CDBG Project No. 4.LQ.09-10., and will be used as the basis for negotiating a Professional Services Agreement: Work Objectives Proposed Cost 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. TOTAL LUMP SUM FIXED FEE: $ Consultant may include as many, or as few, work objectives it believes are necessary to complete the project. Attached herein is a detailed man-hour and fee breakdown for the tasks and sub - tasks defined in our proposal. Prime Consultant Date Signed Page 6 of 6 % 116 Attachment 1 Project Area 117 A � A 0 0 r a o a � D a m ti m o D y 0 7 Ti EISENHOWER DRIVE Z DRIVEWAY r I�. _—. 'V , I o o CURB RAMP tub . v� - CURB RAMP - AVENIDA MARTINEZ CURB RAMP p CURB RAMP r 6' SIDEWALK DRIVEWAY 6' SIDEWALK 4 =, DRIVEWAY c o , D EX. CATCH BA91 D CURB RAMP, CURB RAMP �' CI AVENIDA MENDOZA CURB RAMP P' - CURB RAMP 6' SIDEWALK 1 Ya d 6' SIDEWALK CURB RAMP ,I, D, -' CURB RAMP AVENIDA V D ^ CURB RAMP .D 0 t CURB RAMPILLA DRIVEWAY 6' SIDEWALK r ° )� D DRIVEWAY .P D fi' SIDEWALK D EX. CATCH BASIN ':� D.W p ; CURB RAMP Fae.j P p - CURB RAW AVENIDA NAVARRO CURB RAMP a -.. �. CURB RAMP D I I D i 6' SIDEWALK 0 DRIVEWAY D i'i �f 6' SIDEWALK EX. CATCH BAST AVENIDA BERMUDA , a t u 6' SIDEWALK m > r rr 5 i m � F- •a _ E A � f'l 2� r r o T. o p at1 of 1 i 6' SIDEWALK m 1 DESERT CLUB DRIVE n. �� 118 Attachment 2 CDBG Certification and Reporting Forms 119 EXHIBIT B-5 COUNTY OF RIVERSIDE AFFIRMATIVE ACTION PROGRAM ECONOMIC OPPORTUNITIES FOR SECTION 3 RESIDENTS AND SECTION 3 BUSINESS CONCERNS The work to be performed under this contract is subject to the requirements of section 3 of the Housing and Urban Development Act of 1968, as amended,12 U.S.C. 1701u (section 3). The purpose of section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD -assisted projects covered by section 3, shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD Assistance for housing. 4 120 AFFIRMATIVE ACTION POLICY STATEMENT The County of Riverside, as the Community Development Block Grant Administrator, shall take Affirmative Action to insure to the greatest extent feasible that: Contracts for work (involving both construction and non -construction projects) funded from Community Development moneys be awarded to business located in and/or owned in substantial part by persons residing within the Section 3 covered project area. 2. Lower income residents of said project area are to be provided, to the greatest extent feasible, employment and training opportunities emanating from such contracts. It will be established policy to: 1. Enlist the support of community agencies, schools and unions in the recruitment, hiring and training of low income persons residing within Section 3 project areas. 2. Insure that project area business are afforded a maximum feasible opportunity to bid on contracts. 3. Insure that contractors understand and comply with their obligations under the Act (24 CFR Part 135). 4. Provide a system to periodically monitor and evaluate the effectiveness with which the plan is being carried out. To insure that we continue to meet our obligations and commitments we have developed a Section 3 Affirmative Action Program. All contractors and sub -contractors are expected to demonstrate a spirit of support and cooperation in the implementation of this program. The Executive Director of the Community Development Agency will be responsible for the implementation, administration, and monitoring of our policy and program. Date: February 8, 1988 Supervisor Walt P. Abraham Chairman, Board of Supervisors n. 121 DEFINITION OF TERMS 1. Business' concerns located within the Section 3 covered project area: Means those individuals or firms located within the relevant Section 3 covered project area as determined, pursuant to 24 CFR 135.5. 2. Business concerns owned in substantial part by persons residing in the Section 3 covered project area: Means those business concerns which are fifty-one (51) percent or more owned by persons residing within the relevant Section 3 covered project as determined pursuant to 24 CFR 135.5. Contracting party: Means any entity which contracts with a contractor for the performance of work in connection with a Section 3 covered project. 4. Contractor. Means any entity which performs work in connection with a Section covered project. 5. Lower income resident of the area: A person residing in the Community Development Block Grant project area of the County of Riverside whose annual family income does not exceed eighty (80) percent of the median income. (Calculations are to be based on the median income level as reported by HUD). 6. Project area: In most cases the project area will be bounded by the County limits (or participants' City limits as applicable). However, priority shall be given to persons living within the County's Impact Areas. III SPECIFIC AFFIRMATIVE ACTION STEPS In order to comply with Section 3 regulations affirmative action must be taken. This affirmative action will be at least as extensive and specific as the following: • Each contractor and sub -contractor shall incorporate in all contracts for work in connection with a Section 3 covered project the following Section 3 Clause: Every applicant, recipient, contracting party, contractor, and sub- contractor shall incorporate, or cause to be incorporated, in all contracts for work in connection with Section 3 covered project, the following clause (referred to as a Section 3 Clause): The work to be performed under this contract is on a project assisted under a program providing direct Federal financial assistance from the Department of Housing and Urban Development, and is subject to the requirements of Section 3 of the Housing and Urban Development act of 1968, as amended, 12 U.S.C. 1701u. Section 3 requires that to the greatest extent feasible opportunities for training and employment be given to lower income residents of the project area and contracts for work in connection with the project be u � 122 awarded to business concerns which are located in, or owned in substantial part by persons residing in the area of the project. The parties to this contract will comply with the provisions of said Section 3 and the regulations issued pursuant thereto by the Secretary of Housing and Urban Development set forth in 24 CFR 570, and all applicable rules and orders of the Department issued hereunder prior to the execution of this contract. The parties to this contract certify and agree that they are under no contractual or other disability which would prevent them from complying with these requirements. The contractor will send to each labor organization, or representative or workers, with which he has collective bargaining agreement or other contract, or understanding, if any, a notice advising the said labor organization or workers; representative of his commitments under this Section 3 Clause and shall post copies of the notice in a conspicuous place available to employees and applicants for employment or training. The contractor will include this Section 3 Clause in every sub -tier contract for work in connection with the project and will, at the direction of the applicant for, or recipient of, the Federal financial assistance, take appropriate action pursuant to the sub -tier contract upon finding that the subcontractor is in violation of the regulations issued by the Secretary of Housing, and Urban Development, 24 CFR 570. The contractor will not enter into any sub - tier contract with any subcontractor where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR 570 and will not let any subcontract unless the subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. Compliance with the provisions of Section 3, the regulations set forth in 24 CFR 570, and all applicable rules and orders of the Department issued thereunder prior to the execution of the contract, shall be a condition of the Federal financial assistance provided to the project binding upon the applicant or recipient for such assistance, its successors, and assigns. Failure to fulfill these requirements shall subject the applicant or recipient, its contractors and subcontractors, its successors, and assigns to those sanctions specified by the grant or loan agreement or contract through which Federal assistance is provided, and to such sanctions as are specified by 24 CFR 135. All contractors and their subcontractors shall include as part of their bid proposal copy of their Section 3 Affirmative Action Plan. The Plan should include the following: A preliminary statement of workforce needs (skilled, semi -skilled, unskilled labor and trainees by category). 2. Goals (in percentage) relative to utilization of lower income persons in project area. 3. Goals relative to the project dollar amount of subcontractors to be awarded to project area business. 123 IV DISSEMINATION OF SECTION 3 PROGRAM POLICY In order that all contractors of the County of Riverside have a full understanding of the County's position regarding this Section 3 Affirmative Action Plan the following procedures will be initialed: All advertisements and invitations to bid will include the County's Section 3 Affirmative Action Plan requirements. 2. All Community Development Block Grant contracts will include the County's Section 3 Affirmative Action Plan. 3. The Section 3 Grievance Procedure and signs shall be placed at construction sites identifying the project as a Section 3 covered project. V PROGRAM EVALUATION Pursuant to Section 3 requirements (24 CFR 135.72,) the County of Riverside, as Block Grant Administrator, shall assist and actively cooperate with the Department of Housing and Urban Development in insuring the compliance of our contractors and subcontractors. All contractors shall: Maintain a list of all lower income area residents who have applied whether on their own or on referral from any source. Set forth evidence, acceptable to the Executive Director or the Community Development Agency that its actions were not an attempt to circumvent program requirements, if vacant apprentice or trainee positions in its organization are filled immediately prior to undertaking work pursuant to a Section 3 covered project. VI COMPLAINT PROCEDURE Who may file a complaint? The following individuals and business concerns may, personally or through an authorized representative, file with the Assistant Secretary a complaint alleging noncompliance with section 3: 1. Any Section 3 resident on behalf of himself or herself, or as a representative of persons similarly situated, seeking employment, training or other economic opportunities generated from the expenditure of Section 3 covered assistance with a recipient or contractor, or by a representative who is not a section 3 resident but who represents one or more Section 3 residents; 124 2. Any Section 3 business concern on behalf of itself, or as a representative of other section 3 business concerns similarly situated, seeking contract opportunities generated from the expenditure of Section 3 covered assistance from a recipient or contractor, or by an individual representative of Section 3 business concerns. Where to file a complaint? A complaint must be filed with the: Assistant Secretary for Fair Housing and Equal Opportunity Department of Housing and Urban Development Washington, DC, 20410. Questions regarding Section 3 compliance, procedures for filing a complaint, or the County of Riverside's Affirmative Action Program, should be addressed to: Economic Development Agency CDBG Program Administrator - Section 3 Program 3403 10`h Street, Suite 500 Riverside, CA 92501 (951)955-8916 125 Page 1 of 2 EXHIBIT B-6 Required Bid Form for bids $100,000 or more BIDDER CERTIFICATION FOR SECTION 3 COMPLIANCE Project Title: (Housing and Community Development Act of 1968) Amount of Bid: The undersigned hereby certifies that he/she has read and understands Riverside County's Section 3 Affirmative Action Program as well as Section 3 of the Housing and Community Development Act of 1968, and further certifies adoption of, and adherence to, said program, and certifies understanding of the following for all construction contracts over $100,000: I understand and agree that in the event that I am awarded this contract, and in the event that any new employment opportunities are created as a result of this CDBG-funded project, I will forward to the Economic Development Agency all detailed job descriptions and Section 3 reports, in a form, at a place, and at a time as directed by the Economic Development Agency. _ Complete your proposed workforce plan for this project below: B CATEGORY ;PROFESSIONALS CURRENT POSITIONS NUMBER OF NEW HIRES IF AWARDED BID NUMBER OF NEW HIRES PROPOSED TO BE SECTION 3 RESIDENTS % OF NEW HIRES TO BE SECTION 3 TECHNICIANS OFFICEICLERICAL CONSTRUCTION BY TRADE TRADE TRADE TRADE TRADE TRADE TRADE APPRENTICE TRAINING OTHER TOTAL Initial Here 126 EXHIBIT B-6 Page 2 of 2 BIDDER CERTIFICATION FOR SECTION 3 COMPLIANCE I understand and agree that for any and all subcontracting opportunities that may result from this CDBG-funded project, I will request and review the County of Riverside Section 3 Subcontractor Database prior to selecting any subcontractor for my bid submittal. Initial Here I understand and agree that any and all sub -contracts and sub -tier agreements resulting from this CDBG-funded project are also subject to Section 3 compliance, and therefore, as the General/Prime Contractor, I am responsible to ensure compliance from all subcontractors. Initial Here !`nmr.la4a vmrr Cnhenntrnetin4 Plan for this nroieet below: " TRADE i AMOUNT OF SUBCONTRACT($) IS THE SUBCONTRACTOR SECTION 3 ELIGIBLE? YES OR NO " IF SUBCONTRACTOR IS SECTION 3, INDICATE ELIGIBLE STATUS. 51%OWNER 30%EMPLOYEE Bidder (Company) Name: Authorized Representative (Type Name): Signature: Date: 12l Page 1 of 2 EXHIBIT B-6 SUB Required Bid Form for bids $100,000 or more SUBCONTRACTOR CERTIFICATION FOR SECTION 3 COMPLIANCE Project Title: (Housing and Community Development Act of 1968) Amount of Subcontract: The undersigned hereby certifies that he/she has read and understands Riverside County's Section 3 Affirmative Action Program as well as Section 3 of the Housing and Community Development Act of 1968, and further certifies adoption of, and adherence to, said program, and certifies understanding of the following for all construction contracts over $100,000: I understand and agree that in the event that I am awarded this contract, and in the event that any new employment opportunities are created as a result of this CDBG-funded project, I will forward to the Economic Development Agency all detailed job descriptions and Section 3 reports, in a form, at a place, and at a time as directed by the Economic Development Agency. Complete your pro osed workforce plan for this project below: Initial Here JOB CATEGORY CURRENT POSITIONS NUMBER OF NEW HIRES IF AWARDED BID HIRES HI NUMBER OF NEW PROPOSED SECTION 3 RESIDENTS %OF NEW HIRES TO BE SECTION 3 PROFESSIONALS TECHNICIANS OFFICEICLERICAL CONSTRUCTION BY TRADE TRADE TRADE TRADE TRADE TRADE TRADE APPRENTICE TRAINING OTHER TOTAL 128 EXHIBIT B-6SUB Page 2 of 2 SUBCONTRACTOR CERTIFICATION FOR SECTION 3 COMPLIANCE Bidder (Company) Name: Authorized Representative (Type Name): Signature: Date: 129 QUESTIONNAIRE REGARDING BIDDERS Bidder has been engaged in the contracting business under the present name of Present business address is: Federal Tax ID: EXHIBIT B-8 Required Bid Form since (Date). Amount of Bid S State of California Contractor's License No.: Expiration Date: Because this project is Federally -funded, it is necessary to obtain information concerning minority and other group participation for statistical purposes. The U.S. Department of Housing and Urban Development (HUD) uses this information to determine the degree to which its programs are being utilized by minority business enterprises and targeted group contractors. A minority enterprise is defined by the Federal Government as a business that is fifty-one percent (51 %) or more "minority -owned". Please check applicable box concerning the ownership of your business: ❑ American Indian or Native Alaskan ❑ Asian or Pacific Islander/Native Hawaiian ❑ Black/African American ❑ Hispanic ❑ White ❑ Hasidic Jews ❑ Other A woman -owned enterprise is defined by the Federal Government as a business that is fifty - percent (50%) or more woman -owned. Please check applicable box concerning the ownership of your business: ❑ Woman/Female owned ❑ Male owned A Section 3 Contractor or Subcontractor is a business concern that is more than fifty-one percent (51%) owned by a low or very low-income person, or a business concern that provides economic opportunities to low and very low-income residents. Please check applicable box concerning the ownership of your business: ❑ Section 3 Business concern ❑ Non -Section 3 Business concern The United States Department of Housing and Urban Development (HUD) is authorized to solicit the information requested in this form by virtue of Title lZ United States Code, Section 1701 et seq., and other regulations. It will not be disclosed or released outside of HUD without your consent, except as required or permitted by law. 130 SECTION 3 SUMMARY REPORT ECONOMIC OPPORTUNITIES FOR LOW AND VERY LOW-INCOME PERSONS EXHIBIT PA-5 PROJECT NAME: I DATE CONTRACTOR: SUBCONTRACTOR: JOB CATEGORY NUMBER OF NEW HIRES NUMBER OF NEW SECTIRES THAT ARE ON 3 RESIDENTS % OF AGGREGATE NUMBER OFSTAFF THAT ARE HOURS OF NEW 3 % OF TOTAL STAFF HOURS FOR SECTION 3 EMPLOYEES PROFESSIONALS TECHNICIANS OFFICE / CLERICAL CONSTRUCTION BY TRADE BADE BADE BADE BADE BADE BADE OTHERS TOTAL NAME OF PERSON COMPLETING FORM: Section 3 "New Hires" refers to a person who is not on the Contractor's payroll for employment at the time of Contract award. Recipients and contractors subject to Section 3 requirements must maintain appropriate documentation to establish that HUD financial assistance for CDBG-funded projects was directed to low-income and very low-income persons. Low-income persons means families (including single people) whose incomes do not exceed 80% of the area median household income, as established by HUD, with adjustments for family size. Very low-income persons means families ( including single people) whose incomes do not exceed 50% of the area median household income, as established by HUD, with adjustments for family size. U 131 Attachment 3 City of La Quinta's Professional Services Agreement 132 PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT FOR CONTRACT SERVICES (the "Agreement") is made and entered into by and between the CITY OF LA QUINTA, ("City"), a California municipal corporation, and ("Consultant"). The parties hereto agree as follows: 1.0 SERVICES OF CONSULTANT 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide those services related to , Project No. , as specified in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by this reference (the "services" or "work"). Consultant warrants that all services will be performed in a competent, professional and satisfactory manner in accordance with the standards prevalent in the industry for such services. 1.2 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations and laws of the City of La Quinta and any Federal, State or local governmental agency of competent jurisdiction, including but not limited to the regulations pertaining to the Community Development Block Grant program (24 CFR and Part 570), Executive Order #1 1246,and other applicable requirements. 1.3 Licenses, Permits, Fees and Assessments. Except as otherwise specified herein, Consultant shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Consultant shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the performance of the services required by this Agreement. 1.4 Familiarity with Work. By executing this Agreement, Consultant warrants that (a) it has thoroughly investigated and considered the work to be performed, (b) it has investigated the site of the work and fully acquainted itself with the conditions there existing, (c) it has carefully considered how the work should be performed, and (d) it fully understands the facilities, difficulties and restrictions attending performance of the work under this Agreement. Should Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by City, Consultant shall immediately inform City of such fact and shall not proceed except at Consultant's risk until written instructions are received from the Contract Officer (as defined in Section 4.2 hereof). Last revised 5-29-12 1 U , 133 1.5 Care of Work and Standard of Work. a. Care of Work. Consultant shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work performed by Consultant, and the equipment, materials, papers and other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by City, except such losses or damages as may be caused by City's own negligence. The performance of services by Consultant shall not relieve Consultant from any obligation to correct any incomplete, inaccurate or defective work at no further cost to City, when such inaccuracies are due to the negligence of Consultant. b. Standard of Work. Consultant acknowledges and understands that the services and work contracted for under this Agreement require specialized skills and abilities and that, consistent with this understanding, Consultant's services and work will be held to a heightened standard of quality and workmanship. Consistent with Section 1.4 hereinabove, Consultant represents to City that it holds the necessary skills and abilities to satisfy the heightened standard of work as set forth in this Agreement. 1.6 Additional Services. In accordance with the terms and conditions of this Agreement, Consultant shall perform services in addition to those specified in the Scope of Services ("Additional Services") when directed to do so by the Contract Officer. Consultant shall not perform any Additional Services until receiving prior written authorization from the Contract Officer. It is specifically understood and agreed that oral requests and/or approvals of Additional Services shall be barred and are unenforeceable. Failure of Consultant to secure the Contract Manager's written authorization for Additional Services shall constitute a waiver of any and all right to adjustment of the Contract Sum or time due, whether by way of, compensation, restitution, quantum meruit, etc. for Additional Services provided without the appropriate authorization from the Contract Manager. Compensation for properly authorized Additional Services shall be made in accordance with Section 2.2 of this Agreement. 1.7 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in Exhibit "D" (the "Special Requirements"). In the event of a conflict between the provisions of the Special Requirements and any other provisions of this Agreement, the provisions of the Special Requirements shall govern. Last revised 5-29-12 2 '0 134 2.0 COMPENSATION 2.1 Contract Sum. For the services rendered pursuant to this Agreement, Consultant shall be compensated in accordance with Exhibit "B" (the "Schedule of Compensation") in a total amount not to exceed Dollars ($ ) (the "Contract Sum"), except as provided in Section 1.6. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment in accordance with the percentage of completion of the services, payment for time and materials based upon Consultant's rate schedule, but not exceeding the Contract Sum, or such other methods as may be specified in the Schedule of Compensation. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses when and if specified in the Schedule of Compensation. Regardless of the method of compensation set forth in the Schedule of Compensation, Consultant's overall compensation shall not exceed the Contract Sum, except as provided in Section 1.6 of this Agreement, "Additional Services." 2.2 Compensation for Additional Services. Additional services approved in advance by the Contract Manager pursuant to Section 1.6 of this Agreement, "Additional Services," shall be paid for in an amount agreed to in writing by both City and Consultant in advance of the Additional Services being rendered by Consultant. Any compensation for Additional Services amounting to five percent (5%) or less of the Contract Sum may be approved by the Contract Officer. Any greater amount of compensation for additional services must be approved by the La Quinta City Council. Under no circumstances shall Consultant receive compensation for any Additional Services unless prior written approval for the Additional Services is obtained from the Contract Officer pursuant to Section 1.6 of this Agreement. 2.3 Method of Billing. Any month in which Consultant wishes to receive payment, Consultant shall submit to City no later than the tenth (10th) working day of such month, in the form approved by City's Finance Director, an invoice for services rendered prior to the date of the invoice. Such invoice shall (1) describe in detail the services provided, including time and materials, and (2) specify each staff member who has provided services and the number of hours assigned to each such staff member. Such invoice shall contain a certification by a principal member of Consultant specifying that the payment requested is for work performed in accordance with the terms of this Agreement. City will pay Consultant for all expenses stated thereon which are approved by City pursuant to this Agreement no later than thirty (30) days after invoices are received by the City's Finance Department. Last revised 5-29-12 3 q m J 3.0 PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. 3.2 Schedule of Performance. All services rendered pursuant to this Agreement shall be performed diligently and within the time period established in Exhibit C (the "Schedule of Performance"). Extensions to the time period specified in the Schedule of Performance may be approved in writing by the Contract Officer. 3.3 Force Majeure. The time period specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant, including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than City, and unusually severe weather, if Consultant shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the forced delay when and if in his or her judgment such delay is justified, and the Contract Officer's determination shall be final and conclusive upon the parties to this Agreement. Extensions to the Schedule of Performance which are determined by the Contract Officer to be justified pursuant to this Section shall not entitle the Consultant to additional compensation in excess of the Contract Sum. 3.4 Term. The term of this agreement shall commence on , 20_ and terminate on 20(initial term). This agreement may be extended for additional year(s) upon mutual agreement by both parties (extended term). Unless earlier terminated in accordance with Sections 8.7 or 8.8 of this Agreement, this Agreement shall continue in full force and effect until completion of the services, except as otherwise provided in the Schedule of Performance. 4.0 COORDINATION OF WORK 4.1 Representative of Consultant. The following principals of Consultant are hereby designated as being the principals and representatives of Consultant authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: a. b. Last revised 5-29-12 4 136 It is expressly understood that the experience, knowledge, capability, and reputation of the foregoing principals were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing principals shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. The foregoing principals may not be changed by Consultant and no other personnel may be assigned to perform the service required hereunder without the express written approval of City. 4.2 Contract Officer. The Contract Officer shall be or such other person as may be designated by the City Manager of City. It shall be Consultant's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and Consultant shall refer any decisions, which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. 4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for City to enter into this Agreement. Except as set forth in this Agreement, Consultant shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of City. In addition, neither this Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of City. 4.4 Independent Consultant. Neither City nor any of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees, perform the services required herein, except as otherwise set forth. Consultant shall perform all services required herein as an independent consultant of City and shall remain at all times as to City a wholly independent consultant with only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. 4.5 City Cooperation. City shall provide Consultant with any plans, publications, reports, statistics, records or other data or information pertinent to services to be performed hereunder which are reasonably available to Consultant only from or through action by City. Last revised 5-29-12 ' 5 .1 137 5.0 INSURANCE 5.1 Insurance. Prior to the beginning of and throughout the duration of the Work performed under this Agreement, Consultant shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, Commercial General Liability insurance against all claims for injuries against persons or damages to property resulting from Consultant's acts or omissions rising out of or related to Consultant's performance under this Agreement. The insurance policy shall contain a severability of interest clause providing that the coverage shall be primary for losses arising out of Consultant's performance hereunder "and neither City nor its insurers shall be required to contribute to any such loss. A certificate evidencing the foregoing and naming City and its officers and employees as additional insured (on the Commercial General Liability policy only) shall be delivered to and approved by City prior to commencement of the services hereunder. The following policies shall be maintained and kept in full force and effect providing insurance with minimum limits as indicated below and issued by insurers with A.M. Best ratings of no less than A -:VI: Commercial General Liability (at least as broad as ISO CG 0001) $1,000,000 (per occurrence) $2,000,000 (general aggregate) Commercial Auto Liability (at least as broad as ISO CA 0001) $1,000,000 (per accident) Errors and Omissions Liability $1,000,000 (per claim and aggregate) Workers' Compensation (per statutory requirements) Consultant shall carry automobile liability insurance of $ 1,000,000 per accident against all claims for injuries against persons or damages to property arising out of the use of any automobile by Consultant, its officers, any person directly or indirectly employed by Consultant, any subconsultant or agent, or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Consultant's performance under this Agreement. If Consultant or Consultant's employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability coverage for each such person. The term "automobile" includes, but is not limited to, a land motor vehicle, trailer or semi -trailer designed for travel on public roads. The automobile insurance policy shall contain a severability of interest clause providing that coverage shall be Last revised 5-29-12 6 138 primary for losses arising out of Consultant's performance hereunder and neither City nor its insurers shall be required to contribute to such loss. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the consultant and "Covered Professional Services" as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must "pay on behalf of" the insured and must include a provision establishing the insurer's duty to defend. The policy retroactive date shall be on or before the effective date of this agreement. Consultant shall carry Workers' Compensation Insurance in accordance with State Worker's Compensation laws with employer's liability limits no less than $1,000,000 per accident or disease. All insurance required by this Section shall be kept in effect during the term of this Agreement and shall not be cancelable without written notice to City of proposed cancellation. The procuring of such insurance or the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Consultant's obligation to indemnify City, its officers, employees, consultants, subconsultants, or agents. 5.2 Remedies. In addition to any other remedies City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option: a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. b. Order Consultant to stop work under this Agreement and/or withhold any payment(s) which become due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof. C. Terminate this Agreement. Exercise of any of the above remedies, however, is an alternative to any other remedies City may have. The above remedies are not the exclusive remedies for Consultant's failure to maintain or secure appropriate policies or endorsements. Nothing herein contained shall be construed as limiting in any way the extent to which Consultant may be held responsible for payments of damages to persons or property resulting from Consultant's or its subconsultants' performance of work under this Agreement. Last revised 5-29-12 7 139 5.3 General Conditions pertaining to provisions of insurance coverage by Consultant. Consultant and City agree to the following with respect to insurance provided by Consultant: 1. Consultant agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials, employees and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Consultant also agrees to require all consultants, and subconsultants to do likewise. 2. No liability insurance coverage provided to comply with this Agreement shall prohibit Consultant, or Consultant's employees, or agents, from waiving the right of subrogation prior to a loss. Consultant agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all consultants and subconsultants to do likewise. 3. All insurance coverage and limits provided by Consultant and available or applicable to this agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operations limits the application of such insurance coverage. 4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 5. No liability policy shall contain any provision or definition that would serve to eliminate so-called "third party action over" claims, including any exclusion for bodily injury to an employee of the insured or of any consultant or subconsultant. 6. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Consultant shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City's protection without City's prior written consent. 7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Consultant's general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid Last revised 5-29-12 8 140 by City shall be charged to and promptly paid by Consultant or deducted from sums due Consultant, at City option. 8. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Consultant or any subconsultant, is intended to apply first and on a primary, non-contributing basis in relation to any other insurance or self insurance available to City. 9. Consultant agrees to ensure that subconsultants, and any other party involved with the project that is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subconsultants and others engaged in the project will be submitted to City for review. 10. Consultant agrees not to self -insure or to use any self -insured retentions or deductibles on any portion of the insurance required herein (with the exception of professional liability coverage, if required) and further agrees that it will not allow any consultant, subconsultant, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this. agreement to self -insure its obligations to City. If Consultant's existing coverage includes a deductible or self -insured retention, the deductible or self -insured retention must be declared to the City. At that time the City shall review options with the Consultant, which may include reduction or elimination of the deductible or self -insured retention, substitution of other coverage, or other solutions. 11. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City will negotiate additional compensation proportional to the increased benefit to City. 12. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 13. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non-compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights, hereunder in this or any other regard. Last revised 5-29-12 9 - , to. J 141 14. Consultant will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether or not the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect. 15. Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Consultant's insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to City within five (5) days of the expiration of coverages. 16. The provisions of any workers' compensation or similar act will not limit the obligations of Consultant under this agreement. Consultant expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials and agents. 17. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive. 18. These insurance requirements are intended to be separate and distinct from any other provision in this agreement and are intended by the parties here to be interpreted as such. 19. The requirements in this Section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Section. 20. Consultant agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Consultant for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto. Last revised 5-29-12 10 142 21. Consultant agrees to provide immediate notice to City of any claim or loss against Consultant arising out of the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. 6.0 INDEMNIFICATION. 6.1 General Indemnification Provision. a. Indemnification for Professional Liability. When the law establishes a professional standard of care for Consultant's Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend and hold harmless City and any and all of its officials, employees and agents ("Indemnified Parties") from and against any and all claims, losses, liabilities of every kind, nature and description, damages, injury (including, without limitation, injury to or death of an employee of Consultant or subconsultants), costs and expenses of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, attorneys' fees, litigation expenses, and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation, to the extent same are cause in whole or in part by any negligent or wrongful act, error or omission of Consultant, its officers, agents, employees or subconsultants (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Consultant shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A without the written consent of the Consultant. b. Indemnification for Other Than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, defend and hold harmless City, and any and all of its employees, officials and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, attorneys' fees, litigation expenses, and fees of expert consultants or expert witnesses) incurred in connection therewith and costs of investigation, where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Consultant or by any individual or entity for which Consultant is legally liable, including but not limited to officers, agents, employees. or subconsultants of Consultant. Last revised 5-29-12 I l 143 6.2 Standard Indemnification Provisions. Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth herein this section from each and every subconsultant or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this agreement. In the event Consultant fails to obtain such indemnity obligations from others as required herein, Consultant agrees to be fully responsible according to the terms of this section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth herein is binding on the successors, assigns or heirs of Consultant and shall survive the termination of this agreement or this section. a. Indemnity Provisions for Contracts Related to Construction. Without affecting the rights of City under any provision of this agreement, Consultant shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City's active negligence accounts for only a percentage of the liability involved, the obligation of Consultant will be for that entire portion or percentage of liability not attributable to the active negligence of City. b. Indemnification Provision for Design Professionals. 1. Applicability of Section 6.2(b)• Notwithstanding Section 6.2(a) hereinabove, the following indemnification provision shall apply to Consultants who constitute "design professionals" as the term is defined in paragraph 3 below. 2. Scope of Indemnification. To the fullest extent permitted by law, Consultant shall indemnify, defend, and hold harmless City and City's agents, officers, officials, employees, representatives, and departments ("Indemnified Parties") from and against any and all claims, losses, liabilities of every kind, nature and description, damages, injury (including, without limitation, injury to or death of an employee of Consultant or subconsultants), costs and expenses of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, attorneys' fees, litigation expenses, and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation, that arise out of, pertain to, or relate to, directly or indirectly, in whole or in part, the negligence, recklessness, or willful misconduct of. Consultant, any subconsultant, anyone directly or indirectly employed by them or anyone that they control. Last revised 5-29-12 12 14 4 n •J 3. Design Professional Defined. As used in this Section 6.2(b), the term "design professional" shall be limited to licensed architects, registered professional engineers, licensed professional land surveyors and landscape architects, all as defined under current law, and as may be amended from time to time by Civil Code § 2782.8. 7.0 RECORDS AND REPORTS. 7.1 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning Consultant's performance of the services required by this Agreement as the Contract Officer shall require. 7.2 Access to Records and Records Retention. The Consultant and any sub -consultants shall allow all duly authorized City, County, Federal, or State officials or authorized representatives access to the work area, as well as all books, documents, materials, papers, and records of the Consultant and any Sub - consultants that are directly pertinent to a specific program for the purpose of making audits, examinations, excerpts, and transcriptions. The Consultant and any sub -consultants further agree to maintain and keep such books, documents, materials, papers, and records, on a current basis, recording all transactions pertaining to this agreement in a form in accordance with generally acceptable accounting principles. All such books and records shall be retained for such periods of time as required by law, provided, however, notwithstanding any shorter periods of retention, all books, records, and supporting detail shall be retained for a period of at least four (4) years after the expiration of the term of this Agreement. 7.3 Ownership of Documents. Originals of all drawings, specifications, reports, records, documents and other materials, whether in hard copy or electronic form, which are prepared by Consultant, its employees, subconsultants and agents in the performance of this Agreement, shall be the property of City and shall be delivered to City upon termination of this Agreement or upon the earlier request of the Contract Officer, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership of the documents and materials hereunder. Consultant shall cause all subconsultants to assign to City any documents or materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages suffered thereby. In the event City or any person, firm or corporation authorized by City reuses said documents and materials without written verification or adaptation by Consultant for the specific purpose intended and causes to be made or makes any Last revised 5-29-12 13 145 changes or alterations in said documents and materials, City hereby releases,. discharges, and exonerates Consultant from liability resulting from said change. The provisions of this clause shall survive the completion of this Contract and shall thereafter remain in full force and effect. 7.4 Release of Documents. The drawings, specifications, reports, records, documents and other materials prepared by Consultant in the performance of services under this Agreement shall not be released publicly without the prior written approval of the Contract Officer or as required by law. Consultant shall not disclose to any other entity or person any information regarding the activities of City, except as required by law or as authorized by City. 8.0 ENFORCEMENT OF AGREEMENT. 8.1 California Law. This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 8.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer; provided that if the default is an immediate danger to the health, safety and general welfare, City may take such immediate action as City deems warranted. Compliance with the provisions of this section shall be a condition precedent to termination of this Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party's right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City's right to terminate this Agreement without cause pursuant to Section 8.7. 8.3 Retention of Funds. City may withhold from any monies payable to Consultant sufficient funds to compensate City for any losses, costs, liabilities, or damages it reasonably believes were suffered by City due to the default of Consultant in the performance of the services required by this Agreement. 8.4 Waiver. No delay or omission. in the exercise of any right or remedy of a non defaulting party on any default shall impair such right or remedy or be Last revised 5-29-12 14 146 construed as a waiver. City's consent or approval of any act by Consultant requiring City's consent or approval shall not be deemed to waive or render unnecessary City's consent to or approval of any subsequent act of Consultant. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 8.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 8.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, at law or at equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. 8.7 Termination Prior To Expiration Of Term. This section shall govern any termination of this Agreement, except as specifically provided in the following Section 8.8 for termination for cause. City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days' written notice to Consultant. Upon receipt of any notice of termination, Consultant shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Consultant shall be entitled to compensation for all services rendered prior to receipt of the notice of termination and for any services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 8.3. 8.8 Termination for Default of Consultant. If termination is due to the failure of Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 8.2, take over work and prosecute the same to completion by contract or otherwise, and Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Consultant for the purpose of setoff or partial payment of the amounts owed City as previously stated in Section 8.3. Last revised 5-29-12 15 147 8.9 Attorneys' Fees. If either party commences an action against the other party arising out of or in connection with this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs of suit from the losing party. 9.0 CITY OFFICERS AND EMPLOYEES; NONDISCRIMINATION. 9.1 Non -liability of City Officers and Employees. No officer or employee of City shall be personally liable to Consultant, or any successor in interest, in the event or any default or breach by City or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement. 9.2 Conflict of Interest. No officer or employee of City shall have any personal interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which affects his or her personal interest or the interest of any corporation, partnership or association in which she or he is, directly or indirectly, interested, in violation of any State statute or regulation. Consultant warrants that it has not paid or given and will not pay or give any third party any money or general consideration for obtaining this Agreement. 9.3 Federal Employee Benefit Clause. No member of or delegate to the congress of the United States, and no Resident Commissioner shall be admitted to any share or part of this agreement or to any benefit to arise from the same. 9.4 Covenant against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that the Consultant will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. Consultant will ensure that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin. The Consultant will take affirmative action to ensure that applicants are employed and the employees are treated during employment, without regard to their race color, religion, sex, or national origin. Such actions shall include, but are not limited to, the following: employment, up -grading, demotion, or transfer; recruitment or recruitment advertising; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Consultant agrees to post in a conspicuous place, available to employees and applicants for employment, notices to be provided by the County setting forth the provisions of this non -discriminating clause. Last revised 5-29-12 16 148 10.0 MISCELLANEOUS PROVISIONS 10.1 Notice. Any notice, demand, request, consent, approval, communication either party desires or is required to give the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this section. To City: To Consultant: CITY OF LA QUINTA Attention: Frank J. Spevacek, City Manager 78-495 Calle Tampico P.O. Box 1504 La Quinta, California 92247-1504 10.2 Integrated Agreement. This Agreement contains all of the agreements of the parties and all previous understanding, negotiations and agreements are integrated into and superseded by this Agreement. 10.3 Amendment. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing signed by both parties. 10.4 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder. 10.5 Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by so executing this Agreement the parties hereto are formally bound to the provisions of this Agreement. Last revised 5-29-12 17 149 IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. CITY OF LA O.UINTA a California municipal corporation Frank J. Spevacek, City Manager Date ATTEST: Susan Maysels, Interim City Clerk APPROVED AS TO FORM: M. Katherine Jenson, City Attorney CONSULTANT: -32 Title: Date: Last revised 5-29-12 18 o y 150 Exhibit A Scope of Services 151 Last revised 5-29-12 19 Exhibit B Schedule of Compensation With the exception of compensation for Additional Services, provided for in Section 2.2 of this Agreement, the maximum total compensation to be paid to Consultant under this Agreement is ($ ) ("Contract Sum"); The Contract Sum shall be paid to Consultant in installment payments made on a monthly basis and in an amount identified in Consultants Schedule of Compensation attached hereto for the work tasks performed and properly invoiced by Consultant in conformance with Section 2.2 of the Agreement. A 152 Last revised 5-29-12 20 Exhibit C Schedule of Performance Consultant shall complete all services identified in the Scope of Services, Exhibit "A" of this Agreement in accordance with the attached Project Schedule, attached hereto and incorporated herein by this reference. 153 Last revised 5-29-12 21 Exhibit D Special Requirements Section 3 of the Housing and Community Development Act of 1968 Economic Opportunities for Section 3 Residents and Section 3 Business Concerns Sec. 135.38 Section 3 clause. All Section 3 covered contracts shall include the following clause (referred to as the Section 3 Clause): A. The work to be performed under this contract is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701 u (Section 3). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD -assisted projects covered by Section 3, shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing. B. The parties to this contract agree to comply with HUD's regulations in 24 CFR part 135, which implement Section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the part 135 regulations. C. The consultant agrees to send to each labor organization or representative of workers with which the consultant has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers' representative of the consultant's commitments under this Section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin. 154 Last revised 5-29-12 22 D. The consultant agrees to include this Section 3 clause in every subcontract subject to compliance with regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 clause, upon a finding that the subconsultant is in violation of the regulations in 24 CFR part 135. The consultant will not subcontract with any subconsultant where the consultant has notice or knowledge that the subconsultant has been found in violation of the regulations in 24 CFR part 135. E. The consultant will certify that any vacant employment positions, including training positions, that are filled (1) after the consultant is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent the consultant's obligations under 24 CFR part 135. F. The consultant will certify that any vacant employment positions, including training positions, that are filled (1) after the consultant is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent the consultant's obligations under 24 CFR part 135. G. Noncompliance with HUD's regulations in 24 CFR part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts. H. With respect to work performed in connection with Section 3 covered Indian housing assistance, Section 7(b) of the Indian Self -Determination and Education Assistance Act (25 U.S.C. 450e) also applies to the work to be performed under this contract. Section 7(b) requires that to the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian -owned Economic Enterprises. Parties to this contract that are subject to the provisions of Section 3 and Section 7(b) agree to comply with Section 3 to the maximum extent feasible, but not in derogation of compliance with Section 7(b). 155 FA MEETING DATE: July 3, 2012 ITEM TITLE: Authorization of Overnight Travel for the City Manager to Attend the 2012 League of California Cities Annual Conference to be Held September 5-7, 2012 in San Diego, California RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: �7_ CONSENT CALENDAR: / STUDY SESSION: PUBLIC HEARING: Approve authorization of overnight travel for the City Manager to attend the 2012 League of California Cities Annual Conference to be held September 5-7, 2012 in San Diego, California. FISCAL IMPLICATIONS: Funds for this conference are included in the Fiscal Year 2012/2013 City Manager's Office Program's Travel, Training and Meetings Account (101-1002-413.51-01). Expenditures for this conference are estimated as follows: Registration $ 475 Travel $ 150 Lodging and Parking (2 nights) $ 450 Meals $ 225 Total $1,300 CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: The League of California Cities will be holding their annual conference entitled "Cities Guiding Healthy Government" at the San Diego Convention Center September 5-7, 2012. The conference will feature a variety of sessions and discussion forums on 156 topics such as finance, technology, public safety, and economic growth. City Manager Frank Spevacek has expressed an interest in attending this conference. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Approve authorization of overnight travel for the City Manager to attend the 2012 League of California Cities Annual Conference to be held September 5-7, 2012 in San Diego, California ; or 2. Provide staff with alternative direction Respectfully submitted, ur" (p, wt'� - Wanda P.Wise-Latta, Executive Assistant Approved for submission by: Attachment: 1. 2012 League of California Cities Annual Conference Registration Registration ATTACHMENT 1 l I.EACiU1: OI CM I W'I IA .CITIES Registration REGISTMTION Includes: . Admission to education sessions daily and evening networking events • Wednesday Host City Reception and Expo; Thursday lunch with Exhibitors; Friday voting delegate luncheon ONLINE REGISTRATION (credit card) - Ill online - You will meaive an Immediate conference confitmation email and a ud link to make housing reservations. MAIL -IN REGISTRATION (pay by check) - contact mWnr4cadtlnArg to request the registration form and foil" the mailing instructions. Checks should be payable to the League of California Cities and fun payment N reoulred with PIG registration form, no purchase order. After Monday, August 13, please register onsite. "Same city registration rate since 2008te fug Conference Registration Fees EARLY BIRO BEFORE MAY 25 AFTER MAY 26 AND ONSITE City Delegate Member City $475 t525 Nonmember City $1475 $1525 Public Official County/State $550 $6D0 Partner/ Exhibitor/All Others Company Representative $650 $700 Note Cmrb er Regi WAM a rewr<m0 no attend ppxmnerH meeohgs. pin Maeppr rM General Aslemary/ uM Aumess Meer) a Ar a Yaa,D Dekpme. One—Dsy Registration _ City Delegate SELECT - WEO/THURS/FRIDAY ..... ,......... __ Member City $2SO Nonmember City $1250 Public Offlcial County/State $300 Pmtnet/Exhibitor/AII Others Company Representative f3S0 Refund Policy Advance registrants unable to attend will receive a refund of rate Paid, minus a $75 pmcassIng Marge, only when a written request Is submitted to the League, Conference Registration, 14CO K Slree4 Sacramento, CA, 95814 or moum®cecaies.Org and nicsNed before 5,00 p.m. on Monday, August 12. Absolutely, no refunds will be provided after this Me. Send an alternata/substhuts probe to avoid financial penalty. Optional Registration Add-ons (rmn VU 0e0e) City Attorney Papers $55 pint WorNa pins orw) $25 flash drHe free odf City Cleft Pre -Conference Workshop $100 Member $250 nonmember Lo 30118 Nature s Nurture Tour $35 per person San Diego by Land a Sea Tour $45 per person Spouse Registration $100 158 http://s4.goesliow.com/cacities/annual/2012/registration.cfm 5/8/2012 Registration nauseav My It is rce ngNfraMt 7Jme is no,as is mprAe rervivskn ds Kvusr n9AMNNn. ]r la ntt sOHSMb ro uR my AIrNS ro replsfar d IGNrsP. Onslta ledge Fick Up You must pick up an Official 2012 Annual Conference badge at Uie registration desk it the Sin Diego Convention Center. Registration hours: Wednesday, September 5....... ......... 9:00 a.m. - 6:30 p.m. ThursdaY, September 6................... 7:00 a.m. - 4:00 p.m. . FddaY, September 7.... .... ................ :30 a.m. - MOO a.m. 0 Questions or special needs? Call the conference registrar at (916) 658-8291 before August 31. Home I Silemap I About the League I Contact Us 159 http://s4.goesliow-com/eacities/annual/2012/registration.cfm 5/8/2012 �T Twit 4 '`-i�/ 0 � y ti5 cFM OF COUNCIL SA MEETING DATE: July 3, 2012 AGENDA CATEGORY: ITEM TITLE: Adoption of a Resolution Approving a BUSINESS SESSION: Memorandum of Understanding Between the City Of CONSENT CALENDAR: La Quinta and the La Quinta City Employees' Association for Fiscal Years 2012/2013 and 2013/2014 and Adoption STUDY SESSION: of a Resolution for Employer Paid Member Contributions to PUBLIC HEARING: CalPERS Pursuant to Government Code Section 20691 RECOMMENDATION: Adopt a Resolution of the City Council approving a Memorandum of Understanding between the City of La Quinta and the La Quinta City Employees' Association for Fiscal Years 2012/2013 and 2013/2014 and adopt a resolution for Employer Paid Member Contributions to CalPERS pursuant to Government Code Section 20691. FISCAL IMPLICATIONS: The estimated net savings for the following negotiated adjustments over the two year period is approximately $300,000 as outlined below: Description FY 2012/2013 FY 2013/2014 Total Salary - 2% COLA 77,676 77,676 _- 155,352 Errployer Contribution to CalPERS 10,398 10,537 20,935 Employee 4% Contribution to CalPERS (146,186) (146,186) Employee 8% Contribution to CalPERS (292,372) (292,372) " Medical Contribution Hal Year (36,600) (36,600) Medical Contribution Full Year (73,200) (73,200) Increase (Savings) in Costs (94,712) (204,159) (298,871) 'Employer share of CalPERS Contribution is 13.914% for FY 2012/13 and 14.1 % for 2013/14 and is in addition to any share the Employer may pay toward the Employee Contribution e 160 CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: The City and the Association, in a series of meetings beginning April 5, 2012, met and conferred in good faith pursuant to the Meyers-Milias-Brown Act on matters relating to employment conditions and employer/employee relations including wages, hours, and other terms of employment. The LQCEA Negotiating Team worked diligently with City staff to explore and craft ways to assist the City in dealing with the deficit. The attached Memorandum of Understanding (Exhibit "A" of the Resolution) is the result of these meetings and discussions. A summary of the most significant changes from the previous year's MOU are outlined below: Term 2 year term, beginning 7/1 /12 and ending 6/30/14 Salary Year 1, 2% COLA, effective July 1, 2012 pursuant to 2012/2013 Salary Schedule (Attachment_ 1) Year 2, no change to 2012/2013 Salary Schedule Medical, Dental, Vision & Existing medical cap reduced to $1,312 per month Life Insurance Coverage ($100 reduction from existing $1,412 per month) effective 1/1/13; no medical reopener during term of MOU Educational Incentive Program Total fund balance reduced to $10,000 with maxi- mum $1,000 per employee (10%) per fiscal year . CalPERS Retirement Effective 7/1/12, Employer pays 4% of Employee's share of EPMC versus the current 8%; Effective 7/1/13, Employer pays 0% of Employee's share PERS Formula for New Hires Employees hired on or after 1/1/13 have PERS formula 2% @ 60 based on average of employee's three highest paid consecutive years Personnel Policy Additions & Amendments As outlined in Exhibit A to the Resolution FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Adopt a Resolution of the City Council approving a Memorandum of Understanding between the City of La Quinta and the La Quinta City Employees' Association for Fiscal Years 2012/2013 and 2013/2014 and adopt a resolution for Employer Paid Member Contributions to CalPERS pursuant to Government Code Section 20691; or 2. Do not adopt a Resolution of the City Council approving a Memorandum of Understanding between the City of La Quinta and the La Quinta City Employees' Association for Fiscal Years 2012/2013 and 2013/2014 and do not adopt a resolution for Employer Paid Member Contributions to CalPERS pursuant to Government Code Section 20691; or 3. Provide staff with alternative direction. Respectfully submitted, Terry D ringer, Human esources/ General Services Manager Attachment: 1 2012/, Approved for submission by: n.� 162 RESOLUTION NO. 2012- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING AND ADOPTING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF LA QUINTA AND THE LA QUINTA CITY EMPLOYEES' ASSOCIATION (LQCEA) COMMENCING ON JULY 1, 2012, AND TERMINATING JUNE 30, 2014 WHEREAS, the City of La Quinta, hereinafter referred to as "City" and the La Quinta City Employees' Association, the recognized organization representing its members, hereinafter referred to as "Association," have met and conferred over wages, hours, terms, and conditions of employment pursuant to Government Code 3500, as amended; and WHEREAS, the City and the Association have negotiated a Memorandum of Understanding for the period commencing on July 1, 2012, and terminating June 30, 2014; and WHEREAS, the Association ratified the Memorandum of Understanding on June 21, 2012. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: Section 1. The City does hereby ratify and approve, ratify and authorize implementation of each economic and non -economic benefit and right set forth in the Memorandum of Understanding between the City and the Association, attached and incorporated herein as Exhibit "A" and said to the extent the City may legally do so in accordance with the time constraints of said Memorandum of Understanding. PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City Council held on this 3rd day of July, 2012, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: 163 Resolution No. 2012- Adoption of 2012-14 LOCEA MOU Adopted: July 3, 2012 Page 2 of 2 DON ADOLPH, Mayor City of La Quinta, California ATTEST: SUSAN MAYSELS, Interim'City Clerk City of La Quinta, California (City Seal) APPROVED AS TO FORM: M. KATHERINE JENSON, City Attorney City of La Quinta, California 164 EXHIBIT A MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding ("MOU") is made and entered into by and between the CITY OF LA QUINTA ("City") and the LA QUINTA CITY EMPLOYEES' ASSOCIATION ("Association"). WHEREAS, the City and the Association have met and conferred in good faith with respect to the wages, hours, and terms and conditions of employment of City employees and all other subjects within the scope of bargaining under the Meyers-Milias-Brown Act (Government Code Section 3500, et seq.), and have reached an agreement that they wish to set forth in writing in the form of this MOU; NOW, THEREFORE, the City and the Association agree as follows: SECTION 1: TERM. This MOU shall take effect on July 1, 2012, and shall remain in effect for two (2) years through and including June 30, 2014. SECTION 2: SALARY A. Fiscal Year 2012-13. The 2012/2013 Schedule of Salary Ranges (Schedule), reflects a two percent (2%) COLA over the previous schedule in effect on June 30, 2012. The Schedule, attached hereto as Exhibit 1 and by this reference made a part hereof, shall become effective on July 1, 2012, and shall remain in effect during the full. term (July 1, 2012 through June 30, 2014) of this MOU. 2012-14 FINAL MOU -6-26-12-1--'„ll y 1 C 5 B. Fiscal Year 2013-14. For Fiscal Year 2013-14, there shall be no changes to the Schedule set forth in Exhibit 1, which shall remain in effect until the expiration of this MOU. The Schedule reflects a zero percent (0%) COLA over the previous year. SECTION 3: MEDICAL, DENTAL, VISION AND LIFE INSURANCE COVERAGE. Effective January 1, 2013, the parties agree to reduce the existing healthcare cap by $100.00 per month, taking it from a maximum contribution by the City of $1,412.00 per month to a maximum contribution by the City of $1,312.00 per month. The parties further agree the reduced healthcare cap will not be the subject of a future meet and confer or "reopener" negotiations during the term of this MOU. A. Contributions. The employee contribution for insurance coverage shall be paid by payroll deduction as a condition of enrollment and continuous insurance coverage. The benefits, terms and conditions of coverage shall be governed by the formal plan documents. B. Flexible Spending Plan. The City has implemented a Flexible Spending Plan through Total Administrative Services Corporation (TASC) for interested employees. The City has paid the initial one-time enrollment fee of $350.00 and will pay the $15.00 per employee enrollment fee for new employees who elect to join, 2012-14 FINAL MOU - 6-26-12 -2- 166 and those employees who participate will pay the monthly administration fee and optional medical reimbursement debit card fee through payroll deduction. SECTION 4: EDUCATIONAL INCENTIVE PROGRAM. All employees are eligible for tuition reimbursement pursuant to Section 15.25 of the City's Personnel Policies. The total of such reimbursement for all employees shall not exceed $10,000 during the term of this MOU at a maximum of $1,000 (or 10%) per employee. The last paragraph of Personnel Policy Section 15.25, Tuition Reimbursement, is amended to read as follows: No one employee may receive more than 10% of the total annual budgeted money available for tuition reimbursement. SECTION 5: MANAGEMENT RIGHTS. Except as limited by the terms of this MOU, the City retains sole and exclusive right to manage its operations and direct its work force using any or all of the powers and authority previously exercised or possessed by the City or traditionally reserved to management, including but not limited to the right to determine its organization and the kinds and levels of services to be provided; to direct the work of its employees; to assign work from one classification of employees to another, including work currently performed by employees in the classifications covered by this MOU; to establish work standards and levels of required performance; to utilize part-time or temporary employees; to pay wages and benefits in excess of those required by this MOU; to select, modify, alter, abandon, or modernize methods of 2012-14 FINAL MOU -6-26-12 -3- 167 N conducting its operations; to build, move, modify, close, or modernize facilities, machinery, processes, and equipment; to establish budgetary procedures and allocations; to determine methods of raising revenues; to sublet and subcontract work except work currently performed by City employees; to take all necessary action in the event of an emergency; to establish and amend rules of conduct and to impose discipline and discharge; to establish and amend rules for safety and health; to select, hire, classify, reclassify, assign, evaluate, transfer, promote, demote, upgrade, downgrade, reprimand, discipline, suspend, discharge, lay off, and rehire employees; to determine job content and to create, combine or modify job classifications and rates or classes of pay; and to exercise all other customary powers and authority of management, regardless of whether the City has exercised such power previously. Nothing in this provision shall be construed to restrict grievances concerning any part of this MOU. In the event of an emergency, the City may amend, modify or rescind any provision of the MOU. Such amendment, modification or rescission shall remain in force only for the period of the emergency. The City shall have the sole and complete discretion to declare that an emergency exists for the purposes of this Section. City retains the right to reopen negotiations during the term of this MOU for the purpose of meeting and conferring on implementation of furlough days. 2012-14 FINAL MOU - 6-26-12 -4- 168 SECTION 6: NON-DISCRIMINATION. All personnel decisions and actions, including but not limited to appointments, promotions, demotions, transfers, layoffs, and discharges, shall be made without regard to race, color, creed, sex, marital status, age, national origin or ancestry, physical or mental disability, medical condition, sexual orientation, or any other unlawful consideration. Further, the City shall not discriminate against any employee based upon his/her activity on behalf of his/her membership in any employee association or group. SECTION 7: HOURS. Employee hours of work shall be as stated in the City's Personnel Policies unless superseded as provided in Section 13 herein. SECTION 8: HOLIDAYS. Holidays shall be recognized as provided in the City's Personnel Policy unless superseded as provided herein. SECTION 9: VACATION. 9.1 Accrual. Vacation accrual shall be as provided in the City's Personnel Policies unless superseded as provided herein. 9.2 Buy-back. Vacation buy-back shall be as provided in the City's Personnel Policies unless superseded as provided herein. 2012-14 FMAL MOU - 6-26-12 -5- N .. 169 SECTION 10: SICK LEAVE. Sick leave shall be accrued as provided in the City's Personnel Policies unless superseded as provided herein. SECTION 11: CalPERS RETIREMENT A. Fiscal Year 2012-13. For purposes of the City's election to pay to the California Public Employees' Retirement System (CalPERS), effective July 1, 2012, the City shall pay on behalf of each full-time, regular employee, the required employer contribution, and an amount equal to 50% of the required member contribution to CalPERS, not to exceed four percent (4%). B. Fiscal Year 2013-14. Effective July 1, 2013, the City shall pay to CalPERS on behalf of each full-time, regular employee, the required employer contribution, and an amount equal to 0% of the required member contribution to CalPERS. Effective July 1, 2013, each full-time, regular employee shall pay an amount equal to 100% of the required member contribution to CalPERS, not to exceed eight percent (8%). 2012-14 HNAL MOU - 6-26-12 -6- yy 1 70 C. Public Employees' Retirement System (PERS) Retirement Formula for New Hires. Any employee hired on or after January 1, 2013 shall be subject to the following retirement formula with the retiree's annuity based on the average of the employee's three (3) highest paid consecutive years: Employees hired on or after January 1, 2013: 2% @ 60 The City will amend its contract with PERS to provide for the above 2% @ 60 retirement formula set forth in California Government Code Section 21363.1, to become effective January 1, 2013, or as soon as practicable thereafter. D. Unused Sick Leave Election. Government Code Section 20965 and the City's contract for retirement benefits with CalPERS permits conversion of unused sick leave to service credit, pursuant to certain restrictions. Upon retirement, employees are required to complete the "Unused Sick Leave Election Form" (Exhibit 2) prior to receiving their final paycheck. Upon retirement, employees will have the option of selecting one of the following: (1) receiving payout for the full amount of unused sick leave (pursuant to the payout schedule contained in Personnel Policy Section 14.20.4, as amended by this MOU); (2) receiving payout for a set amount of unused sick leave, and requesting conversion to 2012-14 FINAL MOU-6-26-12 -7- lF 171 service credit of the remainder; or (3) converting the entire amount of unused sick leave to service credit, waiving their right to a payout for unused sick leave. SECTION 12: COMPUTER PURCHASE PROGRAM. The City agrees to continue the Computer Purchase Program (Program) as set forth in the previous MOU, and to fund the Program in the amount of $17,500 for the term of this MOU at a maximum of $1,750 per employee. Any employee who has participated in the Program and has paid his/her loan in full may participate again if there is money available after those employees who have not previously participated have been funded. SECTION 13: ALTERNATE WORK WEEK SCHEDULE. The City and Association agree to continue the Alternate Work Week Schedule ("AWWS") as set forth in Exhibit 3, utilizing a 9/80 schedule, whereby employees may elect to participate in the AWWS by working eight 9-hour days and one 8-hour day, with every other 8-hour day off. The AWWS will continue for the term of this MOU, or until cancelled by Management, whichever occurs sooner. SECTION 14: PERSONNEL POLICY ADDITIONS AND AMENDMENTS The City and Association have agreed to modify City Personnel Policies where appropriate to clarify the intent of those policies. A red -lined 2012-14 FINAL MOU -6-26-12 -8- "1# - 172 version of the changes to the Personnel Policies is provided as Exhibit 4. The sections containing modifications are as follows: a) Safety and Health - Section 1.55 b) Vehicle and Seat Belt Policy - Section 1.60 c) Interim Appointments - Section 3.25 d) Stay At Work Program - Section 7.31 e) Vacation Leave Transfer Program - Section 14.15.5, Subsections J,N,&R f) Sick Leave - Section 14.20 g) Administrative Leave - Section 14.30.3 h) Standby - Section 14.35.6 i) Other minor changes to Personnel Policies intended to clarify ambiguous or unclear language. SECTION 15: EMPLOYEE FITNESS MEMBERSHIP SUBSIDY AT DESERT RECREATION DISTRICT FITNESS CENTER. The City agrees to subsidize the cost of membership at the Desert Recreation District's Fitness Center, which will be housed in La Quinta at the La Quinta Community Park on Avenida Montezuma. City employees may submit their paid receipt for Desert Recreation District membership to the City's Finance Department for reimbursement of $40.00 toward their $50.00 annual membership fee. ,,�.- 173 2012-14 FINAL MOU - 6-26-12 -9- SECTION 16: SOLE AND ENTIRE AGREEMENT. It is the intent of the parties hereto that the provisions of this MOU shall supersede all prior agreements, memoranda of agreement or memoranda of understanding, or contrary salary and/or personnel rules and regulations, administrative codes, provisions of the City (other than the Municipal Code), whether oral or written, expressed or implied, between the parties, and shall govern the entire relationship and be the sole source of any and all rights which may be asserted hereunder. This MOU is not intended to conflict with federal or state law. The Association and the City agree that all personnel rules not specifically included herein shall be incorporated herein by this reference. The City reserves the right to add to, modify or delete from its Personnel Policies, subject to its obligations under the Meyers-Milias- Brown Act. SECTION 17. WAIVER OF BARGAINING DURING TERM OF THIS AGREEMENT. During the term of this MOU, the Association agrees that it will not seek to negotiate or bargain with respect to wages, hours and terms and conditions of employment, whether or not covered by this MOU or in the negotiations preceding execution of this MOU, except as required by specific provisions of this MOU. Despite the terms of this waiver, the parties may, by mutual agreement, agree in writing to meet and confer concerning any matter during the term of this MOU. 2012-14 FINAL MOU-6-26-12 -10- ^..M 174 ..J This MOU is hereby executed by the parties hereto as set forth below. CITY OF LA QUINTA DATED: 2012 By: Don Adolph, Mayor LA QUINTA CITY EMPLOYEES' ASSOCIATION By: By: By: DATED: 2012 2012-14 FINAL MOU - 6-2642 -1 1 _ .. if •.. 175 EXHIBIT 1 a 'M•-WaDNMOt�HNNNhNI�NMMNMOMhI�WNWd1�0 NM�OW tD W W d W 0�000��11 W W W W to W OtOMhNm�ll hWO��NMONtD tWO�mAO�NM VIOp�W�O��VtOD_�aWDO�� MMMMMIh th t7 t7 [717 f7<C V <�00<dNNNhttl Yl N tD tUN !L d O h M cl 7 W O M O r h N N N IA N r N M M O O M N A W cl NI1: NM7O W a0 W W d .- W 0�000Y1 W M W W aq W OtO M1�N W �N HQ l/1 W I�yy� W hNMN(Q W W aD eCr W O]aO W O NM N tD 0 MtD 0 M a0N OD Cl! M'It Yl tpO rap WOell MdtOheD W ONMdt01�(DO NNMMMMMMMthMMMMdddddddddtn l�tA�HNhtp a MddOhM�Wa9hM0 AN NN NI�NI�N M M N m O M �IIAWN OtOM NNNI��NM�OWGDWWdWO•-NWW�Wp WOyyD UtpNWInlo yWy O'W O O tO OM F (n r�MN W tO aDt OJ O W O N M r�aDlPO•-•-NMdNmWC N t0 tO 1��Mdl01%6cWl Nm Odt01, NC1tV Nt7M Mt7MMMMMMMMdd<OVddd<lAtA illNHh d I�dOCl! 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W W ..W-ON�OO�I OfV W da1M W mNYIGmONdyny OdOONN001 W aWa NNNONmO00fNONOmOmOr W W W W rr rnr WW .6.6.6 ai mai ai0000����NN�'�C1d�' W Wvi Wm O W m W r N r N O W N< m O O_ H n O m N m m d N W d m d N m m 0 M m W Ny Wy W W mMr W m�MN�00m.- W am W NOO�m W rma�N'-07mONh O N m V O r O N 0 0 ONO r O O N V m W O m N m W aa N N N M m W O m p W N 0 0 O M W m O M tD m N W W C6 d m'i N W N tQ 0 m M d W W m M N W W O N d W m M W W N C4 C6 C6 6NW. ycl {gipp m drOmNm W n�0 W ON�OOh�00mN arpi, VM mNmdOO mNdd mO 0r UWW mNmOp00 MO�1li� OW NNO0N CMW NNWr NVW D-qrr�mONOm�OOW-NNNND000 O N O OW W d W 4 W m O MdW m M m m W O Ndm m M m W p M m N p C O---------'M------ viWWWWWWWrrnrr'W WWWWoi oim oi—�� �� — pp WMN"WOWNW yy ONmN�rNrNOW�N�pmah�Op00�O")�ami.N mdm D_ mMrN W N Wppm WOf7 rmm"MNmOON ClOO Wp m1 W tAN m W 0 V O r Y N O m W r W O N raa O O N ro C M N N N M W m O W O NWNWWMmm� 4J mrmO�Mdmmm�MW(pmONdmm�lhmm W ri W W W W m W W n n n n r W W W m W m of of ai o 0 0 0------ N---- W L- a <h� W Zvi vim N W vmt+i W tT IV dt0 W ClV V I�Gd W hNOO�mmr W Ci Cl�O M m O M W N r N aa p O M m m O M N Md W r W O�t?O t0 W m�C1m W mON d W .. Nmoaoo--- -NNNM W vinmtri viWmmWWWW rrrrnWWWWW 0l ai aiW------------- J Z W Q Z a N M d' W m r W m O N M d W m r W m O N M N m r W m o m N M p la m r W m o W m W t0 m m m W W n r n r r r r W W m W W m m m m OJ m m m m m omw "�� • 1 7 I EXHIBIT 2 F OFT UNUSED SICK LEAVE ELECTION FORM Government Code Section 20965 and the City's contract for retirement benefits with Ca1PERS provides that unused accumulated sick leave at time of retirement may be converted to additional service credit at the rate of 0.004 year of service credit for each day of unused sick leave (i.e., 250 days of sick leave equals one additional year of service credit). You will be required to have your available unused sick leave time certified by the City, should you elect to convert it to service credit upon retirement. I am requesting disposal of my unused sick leave as set forth below: Name of Employee: Retirement date: Last day of physical presence at City Hall: (Choose only one option below) Please pay me for all unused sick leave hours as of the retirement date indicated above. Please pay me for hours of unused sick leave, and certify the remainder for conversion to service credit. Please certify all of my unused sick leave hours for conversion to service credit. Employee Signature Date Received By: Date V:\FORMS AND LETTERSTorms-028-Unused Sick Leave Election Form 17-8 EXHIBIT 3 City of La Quinta 9/80 Alternate Work Week Schedule (AWWS) Participation Participation in the 9180 Alternate Work Week Schedule (AWWS) is voluntary and subject to Department Director approval consistent with the needs of the City. Employees shall be required to sign the "Alternate Work Week Schedule Agreement" (Attachment A) acknowledging receipt and acceptance of the requirements of this policy. This policy will remain in place until the expiration of the current Memorandum of Understanding with the La Quinta City Employees' Association, or until cancelled by management, whichever occurs sooner. 2. Work Schedule Participants in the 9/80 AWWS elect to work from 7:30 a.m. to 5:30 p.m. Monday through Thursday each week, and from 8:00 a.m. to 5:00 p.m. every other Friday, including a one hour unpaid lunch period each day, with the opposite Friday being designated as the "Regular Day Off" (RDO). Variations of this schedule may be approved by the Department Director for select positions when doing so will result in more efficient operations for the department (i.e., Code/Animal Control Officers; certain Public Works positions; certain Community Services positions; etc.). Employees may also elect to stay on a regular 5/40 work schedule (8 hours per day, 5 days per week). 3. FLSA Workweek The work period shall consist of, for FLSA purposes, a fixed and regularly recurring period of seven consecutive 24-hour periods (168 hours), or 40 hours worked within a seven-day period, beginning at noon on Friday and ending at noon the immediately subsequent Friday. 5/40 Employee Example: MON TUES WED THURS FRI Week 0 4 hrs (before noon) applies to week prior to Week 1 4 hrs after noon aPplies to Week 1 Week 1 8 hrs 8 hrs 8 hrs 8 hrs 4 hrs before noon applies to Week 1 4 hours after noon applies to Week 2 Week 2 8 hrs 8 hrs 8 hrs 8 hrs 4 hrs before noon applies to Week 2 4 hours (after noon) applies to Week 3 The 9/80 work schedule shall not reduce service to the public, departmental effectiveness, productivity or efficiency as determined by the department director. A/B Schedules — To continue to provide service to the public every Friday, employees on a 9/80 schedule are to be divided between two schedules, known as the "A" or "B" schedule, based upon departmental needs. For identification purposes, the schedules shall be known as follows: "A" schedule shall have "Payday" Friday off "B" schedule shall have the "Non -payday" Friday off Created December 2009 9/80 Employee Example (Schedule A): MON TUES WED THURS FRI Week 0 4 hrs (before noon) applies to week prior to Week 1 4 hrs after noon applies to Week 1 Week 1 9 hrs 9 hrs 9 hrs 9 hrs 8 hour Regular Day Off Week 2 9'hrs 9 hrs 9 hrs 9 hrs 4 hrs before noon applies to Week 2 4 hours (after noon) applies to Week 3 9/80 Employee Example (Schedule B): MON TUE WED THURS FRI Week 1 9 hrs 9 hrs 9 hrs 9 hrs 4 hrs fore n applies o Week 1 4 hours (after noon) applies to Week 2 Week 2 9 hrs 9 hrs 9 hrs 9 hrs 8 hour Regular Day Off •RDO's other than Fridays are utilized only by specific positions designated and approved by Department Directors for purposes of maintaining departmental efficiency. For staff on a 9/80 work schedule that includes Saturday and/or Sunday, the work period will begin four hours after the start time of the day of the week which constitutes the employee's alternating Regular Day Off. The work week shall end exactly 168 hours later. 4. Schedule Changes Changes to an employee's schedule may only be made when an employee requires a schedule change to accommodate major life changes (e.g. change in daycare situations, care for seriously ill relative, death of spouse, adoption of child, etc.). Directors have discretion to temporarily change an employee's schedule because of business demands, vacation schedules, disciplinary, issues, etc. All such temporary changes initiated by a Director must be for a minimum of two weeks and must begin at the beginning of a pay period. 5. Notification Both Human Resources and Payroll must be notified in writing at least 2 weeks in advance on the form referenced as Attachment A, when an employee begins or ends the 9/80 AWWS. The beginning notification must include the beginning date of the 9/80 AWWS, the ROO, and the 8-hour workday. The ending notification must designate the ending date of the 9/80 AWWS. 6. 8-Hour Workday For FLSA covered (non-exempt) employees, changes in the starting time or ending time (flexing the work shift) on the 8-hour day is not permitted unless specifically authorized to meet departmental work demands. Since flexing the work shift on the 8-hour workday incurs overtime liability, the Participant's time card must reflect appropriate hours worked to correspond with the flexing of the work shift. For example, an employee eligible for overtime cannot report to work one (1) hour late and work one hour over his/her regularly scheduled shift to make up for the one hour. The employee must use one (1) hour of available leave, authorized leave, or unauthorized leave without pay, to cover the one (1) hour absence. Created December 2009 ..11.... 1 � O .. 7. Lunch The Personnel Policies should be referred to regarding lunch breaks (Section 6.30), However, all employees on a 9/80 AWWS shall be required to take a minimum of one (1) hour lunch break (with the exception of Maintenance personnel). An employee may not combine the two (2) 15-minute breaks with the one (1) hour lunch break (for employees who currently have the 2 breaks and the half (1) hour lunch break, with the exception of Maintenance personnel) nor can the two (2) 15- minute breaks be used to leave early or to make up time when the employee arrives to work late. 8. 9180 Timekeeping Accurate time records must be maintained when administering the 9/80 AWWS. The employee and supervisor are responsible for accurate time reporting of hours worked and accounting for use of any and all accrued leave. 8.1 Implementation: When an employee first begins the 9/80 AWWS, the initial timecard must specify the start date of the 9180 AWWS and the RDO in the upper left hand corner (Sample 1). The code "9/80" and the RDO must be annotated in the upper left hand corner on each subsequent time card (Sample 2). 8.2 Leaves of Absence: 8.2.1 Military leave, long-term W/C injury absences and other approved leaves of absence of more than two (2) weeks require eight (8) hours or less of the employee's time per day. Therefore, employees on the 9/80 AWWS will be required to change to a regular five (5) day 40-hour work schedule during a leave of absence. The employee's timecard must be annotated "Off 9/80" in the upper left hand corner of the card with the date the employee is taken off the 9/80 AWWS and the schedule reverts to a regular 40-hour workweek (8 hours per day; 40 hours per week) (Sample 3). Removing employees from the 9180 AWWS because of a leave of absence usually requires special time keeping; therefore, please contact Payroll for assistance. 8.2.2 Jury duty: The provisions of the City's Personnel Policies shall continue to apply, however, if an employee is called to serve on jury duty during the employee's normal day off, Saturday or Sunday, then the jury duty shall be considered the same as having occurred during the employee's day off from work; therefore, the employee will receive no added compensation. 8.3 Holidays: For all holidays, including the floating holiday, the City will pay for the standard eight (8) hours of work. 8.3.1 On Workday: When a holiday falls on a regular nine (9) hour workday, the employee must use one (1) hour of personal accrued vacation, compensatory time, floating holiday, or administrative leave to make up the ninth (9tt') hour in order to receive a full paycheck. Each employee shall designate on his/her timesheet whether vacation, compensatory time, floating holiday or administrative leave should be used. The time may not be charged to sick leave. If a person has no leave time, he/she will be docked one (1) hour of Leave Without Pay (LWOP), which requires supervisor approval in advance (same as Sample 2). Created December 2009 181,. 8.3.2 On ROD: When a holiday falls on an employee's RDO, the employee will be required to take an alternate day off within the same week, subject to supervisory approval, and the employee will be required to use one (1) hour of personal accrued vacation, compensatory time, floating holiday, or administrative leave hour to make up for the ninth (91h) hour in order to receive a full paycheck. Each employee shall designate on his/her timesheet whether vacation, compensatory time, floating holiday or administrative leave should be used. The time may not be charged to sick leave. If a person has no leave time, he/she will be docked one (1) hour of Leave Without Pay (LWOP), which requires supervisor approval in advance (Sample 4). 8.4 Overtime for FLSA Covered Employees: 8A.1 Supervisory Approval: Overtime worked will be credited to the employee as compensatory time or paid overtime with supervisor approval (Sample 5). 8.4.2 Overtime at Time and One -Half: Employees eligible to receive overtime (FLSA covered employees), will continue to receive overtime in accordance with the MOU or the City's Personnel Policies for all hours in excess of forty (40) hours in a work week. 8.4.3 Overtime on RDO: An employee may occasionally be required to work overtime on their RDO. If or when this occurs, the employee will receive payment or be credited with compensatory time for the number of hours worked. The timecard must be coded ROO on the specific ROO day and the number of overtime hours worked must be identified below on that same day (Sample 6). 8.6 Absences: 8.5.1 9-Hour Day Absences: An employee who is absent on a nine (9) hour workday will be charged with nine (9) hours of paid leave. 8.6.2 LWOP: An employee who is absent on either Authorized or Unauthorized Leave Without Pay on a nine (9) hour day will be coded as nine (9) hours of either Authorized or Unauthorized Leave Without Pay. 9. Personal Time Off To the greatest extent possible, employees should attempt to schedule medical or other personal appointments on their scheduled regular Friday off (RDO). Also, employees should make all efforts to avoid taking miscellaneous time off on the "working" Fridays to avoid undue hardship on their fellow coworkers. 10. Emergencies All employees on the 9/80 AWWS are subject to be called to work any time to meet any and all emergencies or unusual conditions which, in the opinion of the City Manager, Department Director or designee may require such service from any of said employees. This includes staff shortages in a department. In the case of staff shortages, management will notify the affected employee at least one (1) week prior to the change of the work schedule. Policy questions regarding the AWWS may be directed to the Human Resources/Risk Manager at Extension 7041. Timekeeping questions may be directed to the Senior Account Technician at Extension 7059. Created December 2009 4 �°..; 182 EXHIBIT 4 CITY OF LA QUINTA PERSONNEL POLICIES AND PROCEDURES Amended: November 2000 July 2003 January 2007 October 2007 April 2008 July 2009 June 2010 July 2011 July 2012 SECTION 1: GENERAL PROVISIONS 6 --g- 1.05 PURPOSE 1.10 APPLICATION AND EXCEPTIONS - 6 --6- 1.15 VALIDITY OF POLICIES (SEVERABILITY) - 7 --7-- 1.20 VIOLATION OF POLICIES - 7 ---7- 1.25 DEFINITION OF TERMS - 7 ---�-- 1.30 NO CONTRACT OF EMPLOYMENT CREATED - 12 --42 1.35 ADMINISTRATION OF THE PERSONNEL SYSTEM - 12 --12- 1.40 CONFLICTS OF INTEREST AND ACCEPTANCE OF GIFTS AND OTHER L�J.7_lusil1l11il 1.45 OUTSIDE EMPLOYMENT 1.50 POLITICAL ACTIVITIES 1.55 SAFETY AND HEALTH - 15 --45 1.60 VEHICLE AND SEATBELT POLICY - 15 --45 1.65 DRUG AND ALCOHOL FREE WORKPLACE: - 16 --16- 1.70 DRUG AND ALCOHOL FREE WORKPLACE - PROHIBITED CONDUCT - 18 --4 8 1.75 DEPARTMENT OF TRANSPORTATION ALCOHOL AND DRUG ABUSE- 18 --48-- 1.80 EQUAL EMPLOYMENT POLICY AND SEXUAL HARASSMENT - 26 --26- 1.85 WORKPLACE VIOLENCE - 28 --28 1.90 SMOKING POLICY -29- 29 - 1.95 DRESS CODE 29 1.96 USE OF ELECTRONIC EQUIPMENT AND SYSTEMS 29 1.97 FRAUD IN THE WORKPLACE POLICY 34 1.98 CELL PHONE USE POLICY 39 SECTION 2: CLASSIFICATION AND SALARY PLAN 42+ 2.05 PREPARATION AND AMENDMENT OF CLASSIFICATION PLAN 424- 2.10 ALLOCATED POSITIONS 424- 2.15 NEW POSITIONS 424 2.20 CLASSIFICATION SPECIFICATIONS 424- 2.25 PREPARATION AND ADOPTION OF SALARY PLAN 42-I 2.30 APPROPRIATE SALARY STEP 424 2.35 BENEFIT PLAN 434 SECTION 3: TYPES OF APPOINTMENTS 442 3.05 TYPES OF APPOINTMENTS 442 3.10 PROBATIONARY APPOINTMENTS 442 3.15 FULL-TIME APPOINTMENT 442 3.20 EMERGENCY APPOINTMENTS 442 3.25 INTERIM APPOINTMENTS 453 3.30 WORKING OUT OF CLASS 453 -2- 184 3.35 TRANSFER 4744 3.40 PROMOTION 474-5 3.45 DEMOTION 4846 3.50 RECLASSIFICATION 4846 3.55 LAYOFFS/REDUCTION-IN-FORCE/RECALL 494-7 SECTION 4: RECRUITMENT AND SELECTION 530 4.05 EQUAL EMPLOYMENT GOALS AND POLICIES 530 4.10 PERSONNEL REQUESTS 530 4.15 JOB ANNOUNCEMENTS 530 4.20 PERSONNEL APPLICATIONS 530 4.25 DISQUALIFICATION OF APPLICATIONS 544- 4.30 RECRUITMENT 544- 4.35 EVALUATION OF APPLICATIONS 552 4.40 CANDIDATES' EXAMINATION INSPECTION 56�3 4.45 NEPOTISM POLICY 56-3 4.50 DRIVING SAFETY CHECK 58-55 4.55 ELIGIBILITY LISTS 585-5 4.60 FINAL DECISIONS OF SELECTION 59-6 4.65 PRE -EMPLOYMENT PHYSICAL 5936 4.70 EMPLOYMENT ELIGIBILITY VERIFICATION 60-57 4.75 PROBATIONARY PERIOD 6037 4.80 CRIMINAL CONDUCT - INELIGIBILITY FOR EMPLOYMENT 60-57 4.85 RESIGNATION 605-7 SECTION 5: COMPENSATION AND EVALUATION 6138 5.05 SALARY AT APPOINTMENT 61U 5.10 EMPLOYEE PERFORMANCE EVALUATION 6138 5.15 PROGRESSION ON MERIT STEPS 62-59 5.20 SALARY ANNIVERSARY DATE 62-59 5.25 BILINGUAL COMPENSATION 630 SECTION 6: ATTENDANCE AND HOURS OF WORK 644- 6.05 WORK WEEK AND OVERTIME 644- 6.10 NO GUARANTEE OF HOURS 644- 6.15 STAND-BY AND CALL-BACK POLICY 652 6.20 TIME SHEETS 652 6.25 ABANDONMENT OF EMPLOYMENT 652 6.30 LUNCH AND BREAK POLICY 652- SECTION 7: LEAVES 666- 7.05 JURY DUTY AND WITNESS LEAVE 666-3 7.10 PREGNANCY DISABILITY LEAVE 6663 -3- •_a;J 18S 7.15 MILITARY LEAVE 6467 7.20 LEAVE OF ABSENCE WITHOUT PAY 6966 7.25 FAMILY AND MEDICAL LEAVE 6966 7.30 ON -THE -JOB -INJURIES AND WORKERS' COMPENSATION COVERAGE 7672 7.31 STAY AT WORK PROGRAM 78 7.35 DISABILITY LEAVE 827-5 SECTION 8: CONDUCT AND DISCIPLINARY GUIDELINES 8477 8.05 GROUNDS FOR DISCIPLINARY ACTION 8479 SECTION 9: DISCIPLINARY ACTIONS 8790 9.05 DEFINITION OF DISCIPLINARY ACTION 8780 9.10 INFORMAL DISCUSSION 8790 9.15 FORMAL WARNING 8790 9.20 WRITTEN REPRIMAND 8790 9.25 DISCIPLINARY SUSPENSION 8790 9.30 REDUCTION IN PAY 888-� 9.35 DEMOTION 888-I 9.40 DISCHARGE 88" 9.45 DOCUMENTATION OF DISCIPLINARY ACTION 8881 SECTION 10: DISCIPLINARY PROCEDURES 8992 10.05 ADMINISTRATIVE REASSIGNMENT WITH PAY 8992 10.10 DISCIPLINARY ACTION SUBJECT TO SKELLY PROCEDURE 8992 10.15 APPEAL OF DEPARTMENT DIRECTOR'S DECISION 9083 10.20 AMENDED NOTICE OF DISCIPLINARY ACTION 9083 SECTION 11: APPEAL HEARING PROCESS 9184 11.05 HEARING OFFICER 9184 11.10 REQUEST FOR APPEAL 9184 11.15 ANSWER 9184 11.20 TIME FOR HEARING 9194 11.25 NOTICE OF HEARING 9194 11.30 PRE -HEARING MEETING 9285 11.35 WITNESS LIST AND SUBPOENAS 928-5 11.40 NATURE OF HEARING 928--ii 11.45 EXCLUSION OF WITNESSES 9386 11.50 PROPOSED FINDINGS OF FACT 9396 11.55 OFFICIAL/JUDICIAL NOTICE 9386 11.60 ORDER OF PROOF AT HEARING 9386 11.65 FINDINGS OF FACT & RECOMMENDATIONS TO THE CITY MANAGER 9386 11.70 DISPOSITION OF APPEAL 9386 11.75 BURDEN OF PROOF 997 me n 186 11.80 WITHDRAWAL OF AN APPEAL 948q SECTION 12: GRIEVANCES 9599 12.05 MATTERS SUBJECT TO GRIEVANCE PROCEDURES 9588 12.10 MATTERS NOT SUBJECT TO GRIEVANCE PROCEDURES 9599 12.15 FREEDOM FROM REPRISAL 9699 12.20 RESOLUTION 9689 12.25 WITHDRAWAL 9689 12.30 RESUBMISSION 9699 12.35 EMPLOYEE REPRESENTATION 9689 12.40 OBEY NOW/GRIEVE LATER 9689 12.45 INITIATION OF GRIEVANCE PROCEDURES 8996 12.50 INFORMAL GRIEVANCE PROCEDURE 9689 12.55 FORMAL GRIEVANCE PROCEDURE 9790 SECTION 13: EMPLOYEE RECORDS AND FILES 9892 13.05 PERSONNEL FILES 9892 13.10 DOCUMENTS IN PERSONNEL FILES 9892 13.15 DISCLOSURE OF INFORMATION 9892 13.20 CHANGE IN STATUS 9993 13.25 APPLICATION RETENTION 9993 13.30 DESTRUCTION OF PERSONNEL RECORDS 9993 SECTION 14: EMPLOYEE BENEFIT PLAN 10094 14.05 HEALTH BENEFITS 10094 14.10 HOLIDAYS 10094 14.15 VACATION LEAVE 1019-5 14.20 SICK LEAVE 10599 14.21 KIN CARE LEAVE 10804 14.25 BEREAVEMENT LEAVE 10803 14.30 ADMINISTRATIVE LEAVE 10802 14.35 OVERTIME COMPENSATION 11043 SECTION 15: TRAINING AND TRAVEL 11205 15.05 TRAINING 11205 15.10 IN-HOUSE TRAINING 11205 15.15 DEPARTMENT TRAINING 11205 15.20 SEMINARS AND CONFERENCES 11205 15.25 TUITION REIMBURSEMENT 11245 15.30 TRAINING AND TRAVEL REIMBURSEMENT 11306 15.31 TRAVEL AND EXPENSE POLICY 11407 (Last Update July, 201247) SECTION 1: GENERAL PROVISIONS 1.05 PURPOSE: The purpose of these Policies and Procedures is to establish systematic and uniform procedures for handling personnel matters. 1.10 APPLICATION AND EXCEPTIONS: 1.10.1 These Policies shall apply to all offices, positions, and employments in the service of the City, as defined in Section 1.25 of these Policies, with the exception of the following: A. Members of the City Council and other elected officials (except for Sections 2.35 and 14.05.) B. Members of commissions and advisory bodies appointed by the City Council or City Manager. C. Direct appointees of the City Council, including the City Manager and City Attorney. A regular employee who also holds the position of City Treasurer shall not be excluded from the Policies, unless the employee has entered into an employment agreement pursuant to sub -section "F" herein. D. Volunteer personnel who provide services to the City without receiving compensation (although such persons may receive reimbursement for actual expenses incurred in the service of the City). E. Outside and independent contractors, engaged to provide expert, professional, technical or other services. F. Regular employees who have entered into a written employment agreement with the City, unless otherwise specified in the employment agreement. 1.10.2 These Policies, with the exception of Sections 8 through 12 inclusive, shall apply to the following employees, who serve at the pleasure of their respective appointing authorities and are considered "at will" employees: A. Emergency employees, such as those hired to meet immediate needs of an emergency condition (i.e. fire, flood, or earthquake) which threatens life or property- B. Employees who are considered temporary or seasonal. C. Other non -career employees who are not specifically mentioned in Section 1.10.1 of these Personnel Policies. D. Probationary Employees. -6- p 1.15 VALIDITY OF POLICIES (SEVERABILITY): If any section, subsection, sentence, clause, phrase or portion of these Policies is for any reason held to be invalid or unconstitutional by the final decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of these Policies. The City Council of La Quinta hereby declares that it would have adopted these Policies and each section, subsection, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions may be declared invalid or unconstitutional. 1.20 VIOLATION OF POLICIES: Violation of these Policies may be grounds of discharge or other disciplinary action, subject to the applicable appeals procedure provided herein. 1.25 DEFINITION OF TERMS: All words and terms used in these Policies and in any ordinance or any resolution dealing with Personnel Policies and Regulations shall be defined as they are normally and generally defined in the field of personnel administration. For the purpose of convenience, the following words and terms most commonly used are defined. 1.25.1 Appointing Authority: The Employee Relations Officer or designee who, in his or her official capacity, has the final authority to appoint a person to a position of employment. 1.25.2 Appointment: The designation of a person to fill a position of employment. 1.25.3 At -Will Employee: A temporary, probationary or contract employee who has a written contract specifying the duties and terms of employment without a definite ending date. At -will employees are not governed by the terms and conditions of Sections 8-12 of these Policies, unless specifically provided herein. 1.25.4 Call - Back: When an employee is off -duty and is called back to work. 1.25.5 City: The City of La Quinta. 1.25.6 City Manager: The City's Chief Executive Officer. 1.25.7 Classification: A grouping of job positions with the same or similar title, salary range, and benefit package. 1.25.8 Classification Plan: A listing of job duties and responsibilities of City positions, as recommended by the Employee Relations Officer and adopted by the City Council. 1.25.9 Compensatory Time: Time accrued at time and a half or taken off from work with pay, in lieu of paid overtime compensation. 1.25.10 Competitive Service: The employment system whereby City Employees are hired and promoted through a competitive process based upon objective standards of merit to assure fair consideration all aspects of employment/promotion. 1.25.11 Confidential Employee: An employee performing the duties of a position which is designated as confidential by the City Council or designee. Rev. 6-26-1242-3-1-3 - 7 - ". 189 1.55 SAFETY AND HEALTH: Each employee shall comply with all applicable safety laws, Policies, and regulations, as follows:. . �ll c.,...leyee ��adhere to and follow the guidelines of the Safety Manual (a copy of which is available on the City's Human Resources Intranet on the H:Drive), all safety practices, use personal protective equipment as required and provided by the City, render every possible aid to safe operations, and report to the supervisor, department director or Ssafety Ccommittee all unsafe conditions or practices. Employees with questions about safety methods or practices should check with their supervisor. 1.60 VEHICLE AND SEATBELT POLICY: City and Association agree that the five feffla. ning othe aett"a-ee (3)individuals employed by City as Building Inspectors in 1998 shall receive a car allowance equal to the then allowable IRS standard mileage rate paid for a total of 1000 miles per month, so long as hethey remains continuously employed in that position. In the event that the IRS changes the allowable standard mileage rate, the monthly allowance shall be adjusted up or down accordingly on the first day of the next month. The City reserves the right to adjust the miles per month upward or downward in the event inspections increase or decrease significantly in the future. Any individual hired as a replacement for the individual employed as Building Inspector in 1998 one of the ea -rent Building inspectors shall not receive a car allowance but will be eligible to use a City pool vehicle. If required to use a personal vehicle, an employee shall be reimbursed at the then current IRS rate. All employees who are currently assigned a City vehicle for their job duties will continue to be provided access to a vehicle for the current fiscal year. In addition, a vehicle pool will be available for use by employees to conduct City business. Pool vehicles will be made available on a first -come, first -served basis. The pool will be administered by the Finance Department. An employee must check with the Finance Department prior to using his/her own vehicle on City business. If there is no pool vehicle available, and the employee cannot wait for one to become available, the employee may use his/her personal vehicle and be reimbursed at the current rate. Effective November 1, 2000, Foremen will no longer take City vehicles home on a daily basis. Instead, Foremen are authorized to take a City vehicle home when on scheduled standby. When on scheduled standby, Foremen shall be paid standby pay pursuant to Section 14.35.6. City shall make City pool vehicles available on a priority basis for those employees who are required to travel off paved roads on City business. If a pool vehicle is not available, and the employee must use his/her personal vehicle to travel off paved roads, the employee shall not be required to travel off paved roads if he/she reasonably believes that to do so would cause damage (other than normal wear and tear) to the vehicle. The employee shall inform his/her supervisor of such concerns, and the supervisor shall give alternate instructions. Employees required to use their own vehicle for City business and who receive either a monthly allowance or mileage reimbursement therefore are required to provide proof of a valid California drivers' license and of vehicle insurance for both liability and property damage. The City requires a copy of the drivers' license at the time of hire and at the time of each required renewal. Human Resources maintains these records and is responsible for notifying employees when their license needs to be renewed. Rev. 6-26-121:2 1-14 MMM n.- 19 0 3.25 INTERIM APPOINTMENTS: If deemed to be in the best interests of the City, the Employee Relations Officer may authorize and approve an interim appointment in order to fill either a temporary (i.e. a maternity or military leave) or regular (i.e. an employee's resignation or termination) vacancy. If the position being filled on an interim basis would normally require City Council approval (i.e. City Manager), the City Council shall authorize the interim appointment. An interim appointment may be authorized for a period not to exceed six (6) months from the date of that appointment. The Employee Relations Officer may authorize an additional (6) months extension for an interim appointment. All interim employees must meet the minimum qualifications of the vacant position. A regular employee may be assigned to another interim classification which is equal to or higher than the employee's regular classification. During the interim appointment period, the employee will be assigned the title of the interim classification, in a step that is at least five per cent (5%) higher than the current salary of the employee's regular classification, for the duration of the interim appointment if the interim classification is a higher grade. A regular employeegned to an interim classification which is not represented by the La Quinta City Employees' Association will have their membership suspended during the term of the interim appointment While serving in an interim capacity, a regular employee shall receive any benefits of the interim classification which are over and above the employee's regular benefits. If an employee receiving overtime benefits is assigned to an interim classification which does not receive overtime benefits, the employee shall not receive overtime pay for the duration of the interim period. The employee shall receive the prorated Administrative Leave benefits of the interim classification. A regular employee, in an interim classification, shall continue to accrue seniority in their regular classification and shall be eligible to receive merit increases in the regular position. An interim employee who is not currently a City employee shall be compensated as outlined in a written employment contract. If an interim employee is appointed to the position which the employee has been filling on an interim basis, any time worked in the interim position may be applied towards fulfilling the required probationary period. Interim appointments shall not be construed to create or imply any right in any employee to be permanently appointed to the job classification position that the employee is filling on an interim basis. At the expiration of any interim appointment, the employee shall return to the employee's regular job classification and shall also return to the rate of pay which corresponds to the regular classification as if the employee never left the classification. This section shall not be construed to prohibit the employment by contract of a person or entity to provide services to the City of an interim, indefinite, or other basis. 3.30 "WORKING OUT OF CLASS": When an employee is assigned to significant duties and responsibilities of an authorized job classification with a higher salary range on a full-time basis Rev. 6-26-1212 1 1-1 -45- 191 The employee or Department Director may submit a request for a job audit to the Employee Relations Officer who shall determine if the reclassification is justified and provide a recommendation to the City Manager for approval. Reclassification shall not be used for the purpose of avoiding restrictions concerning demotions, promotions, or unit modifications. The Employee Relations Officer may conduct objective, noncompetitive examinations to establish qualifications for the position. The salary of an employee in a position that is reclassified shall be determined as follows: 3.50.1 Classification with Same Salary Range: If the position is reclassified to a classification with the same salary range as the previous classification, and if the incumbent is appointed to the reclassified post, the salary rate and the salary anniversary date of the employee shall not change. The provision shall also apply to the change of classification title, provided there is no change in the basic duties of the classification. 3.50.2 Classification with Higher Salary Range: If the position is reclassified to a classification with a higher salary range than the previous classification, and if the incumbent is appointed to the reclassified position, the employee shall be compensated at the Step in the new salary range which comes nearest to, but is not lower than, the Step the employee held in the previous salary range. The incumbent's salary anniversary date shall not change. 3.50.3 Classification with Lower Salary Range: If the position is reclassified to a classification with a lower salary range than the previous classification, and if the incumbent is appointed to the reclassified position, the Employee Relations Officer may approve a Y-rate salary for the employee if the employee is at the top Step. Otherwise, the employee's new salary at the lower grade shall be placed at a Step which yields a salary closest to, but not less than, the current salary. The incumbent's salary anniversary date shall not change. Benefits may be Y-rated, as specifically approved by the Employee Relations Officer. The effective date of reclassification shall coincide with the first working day of a pay period after the reclassification is approved by the Employee Relations Officer and the new classification is adopted by City Council, if necessary. 3.55 LAYOFFS/REDUCTION-IN-FORCE/RECALL: Subject to City Council approval, the Employee Relations Officer may lay off permanent and probationary workers at any time based upon: 1) lack of work; 2) budgetary reasons; 3) elimination of programs; or 4) elimination of services. At least two (2) weeks written notice shall be given to any employee who is to be laid off. If less than two = ei-,ks neeeweeks' notice is provided, the employee will be paid for the difference between the date of layoff and two weeks. At the sole discretion of the Employee Relations Officer, a demotion or transfer to another department or classification may be made to prevent a layoff, provided the employee is qualified by education and/or experience and is capable of performing the duties of the classification. The Department Directors, in consultation with the Employee Relations Officer, and as approved by the City Manager, will effect the layoffs. Rev. 6-26-1212-1-11- 4•j . 192 Reduction in Force (RIF): When it becomes necessary to reduce the work force in the City, the Employee Relations Officer shall designate the job classification, division, department, or other organizational unit in order to effect a reduction in the work force. Contract, temporary, part- time, seasonal, or probationary employees in the same job classification as ones proposed to be reduced within the City shall be laid off first. Although the Employee Relations Officer may elect to do so, he/she is not required to allow laid off employees to "bump" employees in other classifications unless the employee has previously successfully held a position in another classification, in which case the laid off employee would be considered for layoff, if any, from the previously held classification, along with others in that classification, in accordance with the "Order of Layoff' set forth below. Probationary promotional employees who are laid off shall, if applicable, be returned to their former classification. Employees who accept lower positions or transfers in lieu of layoff shall be placed at a salary range and step which yields a salary closest to existing salary at the time of the giving of notice of layoff. Order of Layoff: The order of layoff of regular employees shall be made in accordance with a system which favors retention of the more meritorious employees, based upon evaluation of the following factors in the listed order of importance: A. The two most recent performance evaluation records as finalized and/or filed in Human I Resources, except when an employee has less than two years of service with the City. In that case, only one performance evaluation will be used. B. Documents of disciplinary actions during the preceding twenty-four (24) months. C. Seniority (length of service in a career position) a. in the City; and b. in the classification; and c. in the department. Other exceptional circumstances to deviate from this policy may include the desirability of maintaining a department or work unit with adequate staffing to perform required service, and maintaining employees in the classification, department or section who have demonstrated the ability to perform work available. Seniority: Seniority is determined from the day of official appointment to a City department as a regular employee, provided that any regular employee who, as a result of promotion, transfer or voluntary demotion, is appointed to a regular position in another department shall, for purposes of layoff, carry seniority previously acquired over to the new department. Seniority shall continue to accrue during periods of vacation, sick leave, layoff not exceeding two (2) years, any authorized leave of absence of less than three (3) months, or any call to military service for the duration of the call to duty. Seniority shall not accrue during any other break in continuous service, unless required by law. Rev. 6-26-124:2 1-1-4 E 111 °.� 193 policy shall not be a negative reflection on any employee, but rather as a way to more accurately monitor employee performance. Workers' Compensation Leave and benefits, as appropriate under State law, shall be granted to an employee upon acceptance of the claim by the claims administrator, and with physician's certification of "temporary disability" status, and the employee's inability to perform regular or modified duties. A claim denied by the claims administrator, a written statement from the treating physician indicating that the employee's condition is permanent and stationary or has reached maximum medical improvement, or separation from City service shall terminate an employee's eligibility for Workers' Compensation Leave and any applicable benefits from the City for that particular injury or illness. The employee may be eligible for other benefits under workers' compensation law. The City maintains its right to require that an employee provide regular physician's certification of work status, and see a City -designated physician on a periodic basis to determine the employee's disability status. If an employee is given work restrictions by the physician, the City will initiate an accommodation review to determine if the employee is able to return to work with or without reasonable accommodation. The City also maintains its right to require an employee to return to work on a "limited duty" status, provided that the employee has received authorization from the City -designated physician as well as from the Employee Relations Officer and the Department Director. Such "limited duty" status must be of a temporary nature, does not have to be in the same position or department, and is subject to Employee Relations Officer approval. Additional information concerning Workers' Compensation Leave or benefits may be obtained by contacting the Employee Relations Officer. 7.31 STAY AT WORK PROGRAM 7.31.1 PURPOSE The City of La Ouinta is committed to providing a work environment that is free from discrimination. In keeping with this commitment, the City maintains a strict policy prohibiting discrimination and harassment of injured employees. The purpose of the Stay at Work (SAW) Program is to facilitate the continued productivity of employees injured on the job during their recovery. If an employee is unable to perform his/her restrictions or other applicable factors. SAW assignments are temporary, and dependent on the City's ability to continue to provide SAW duties and the employee's abilityperform the SAW duties. Rev. 6-26-12-12-1-11 - 78 - `A.- 194 7.31.2 RESPONSIBILITY The Human Resources/General Services Manager will act as the SAW Coordinator. This individual will function as the liaison with the City's workers' compensation claims administrator.. The SAW Coordinator will work with the employee and his/her supervisor to define the scope, duties and duration of the temporary assignment. The SAW Coordinator will monitor the employee's work restrictions, and advise the employee and his/her supervisor when SAW duties can be modified or the employee can resume his/her usual and customary duties. A. EMPLOYEE responsibilities 1. Employees off work are to contact the SAW Coordinator promptly following a change in work restrictions or medical condition as determined by his/her treating physician. 2. Failure to contact the SAW Coordinator may result in disciplinary action. B. SAW COORDINATOR responsibility 1. The SAW Coordinator must immediately notify the workers' compensation claims administrator that the employee is not working. 7.31.3 PROCEDURES A. Identifying_ SAW Assignments: 1. Periodically, the SAW Coordinator may request that all or some departments complete the "Modified Duty Work Assignment" form (Exhibit A). This form assists the SAW Coordinator in identifying beforehand possible SAW assignments that are within the work restrictions. B. Employee Placed On SAW By A Treating Physician: 1. An employee placed on work restrictions by their treating physician is required to supply the SAW Coordinator with a work release noting the restrictions following every doctor's appointment. The City may request additional clarification on the emplovee's capabilities as required to evaluate suitable accommodation. 2. The employee and his/her supervisor will meet to discuss the SAW duties. The supervisor will notify the SAW Coordinator of the meeting and the SAW Coordinator will prepare the appropriate documentation of the offer of SAW duties in the form of an agreement letter for "Offer of Modified or Alternate Work." 3. The employee's supervisor will ensure that the employee understands the work restrictions and -is complying with and working within the work restrictions imposed by the treating physician. 4 The City of La Quinta has established a maximum time frame of ninety (90) calendar days for employee participation in a SAW program. i The City Manager or his/her designee can approve a one-time extension of that time frame for up to 90 additional calendar days where circumstances warrant. Rev. 6-26-1242-4-44 - 79 - ^ 195 C. Employee's Department Unable To Accommodate The Restrictions: 1. If the employee's department is unable to accommodate the restrictions the department will notify the SAW Coordinator immediately, and specify the reasons why accommodation is not possible. 2. The SAW Coordinator will: i. Check file for previously submitted SAW assignment forms (if any). ii. Contact other departments for possible SAW assignments based upon the employee's restrictions. iii. Instruct the employee where to report if an assignment in another department is located. (May be delegated to the employee's supervisor.) D. Unavailable Transitional Assignments: 1. If no SAW dutv assignment is available. or the emplovee cannot be accommodated, then the employee is covered by the conditions of the workers' compensation leave policy, until released to return to work without restrictions, released to work with restrictions that can be accommodated, or the employee has reached maximum medical improvement or permanent and stationary status E. Intermittent Assignment: 1. If an emplovee comnletes a SAW duty assignment and there is no additional SAW duty assignment available, then the employee is covered by the conditions of the workers' compensation leave policy, until released to return to work without restrictions, released to work with restrictions that can be accommodated, or the employee has reached maximum medical improvement or permanent and stationary status. F. Timesheet Procedures: 1. SAW duty shall be denoted as "Regular" time on the employee's timesheet. REFERENCES Americans with Disability Act of 1990 (Public Law 101-336) Americans with Disabilities Act Amendments Act of 2008 (Public Law 110-325) Fair Employment and Housing Act Rev. 6-26-1212-1-11 - 80 - ". 196 EXHIBIT A CITY OF LA QUINTA MODIFIED DUTY WORK ASSIGNMENT Goal: To reduce costs associated with lost -time occupational injuries. Method: Return employees with occupational injuries who are temporarily precluded from performing the essential functions of their normal and customary duties back to work in a transitional assignment. TRANSITIONAL MODIFIED DUTY ASSIGNMENTS (Generic Description) Time Period: (from to ) Department Section Contact Phone No: A) Duties: B) Location: C) Scheduled Hours: D) Supervisor: E) Physical Requirements of tasks: F) Skills Required: Please return to the Human Resources/General Services Manager Rev. 6-26-1212-1-11 -81- 197 of a request to participate in the VLTP will be resolved by the City Manager. The decision of the City Manager shall be final, not grievable and not subject to further appeal. C. The FRO shall manage all aspects of the VLTP. D. If a request for donated vacation leave or comp time is approved by the ERO, a notice will be posted informing City employees of the particular employee in need of donation assistance through the VLTP. E. Any employee wishing to contribute vacation leave or comp time must sign an authorization form specifying the employee to which the donation will be made and acknowledging that the donation is irrevocable. F. The application rate of an employee's vacation leave or comp time donation will be on an hour -for -hour basis with no adjustment for dollar value. G. All donations will be voluntary and confidential. H. Except for the notice and memorandum notifying employees of a specific employee's sick leave need, no City employee may solicit donations from any other employee. (General discussion of voluntary donation versus solicitation at La Quinta City Employees' Association meetings is exempted.) I. No supervisor shall make work -place decisions based on any employee's participation or non -participation in the VLTP. J. The City Finance Department (Finance) will set up a trust account for all approved employee vacation leave or compensatory time donation request in the requesting employee's name, into which each donating employee's vacation leave or comp time will be noted, and used as neededplfteed. K. Employees on VLTP shall be paid at regularly scheduled City pay periods from the trust account Finance establishes. The amount of payment shall be the total monetary amount of vacation leave or compensatory time donated up to a maximum of 100% of employee's regular pay, less: (1) any disability benefit offered through the City, Worker's Compensation Benefit, or Medicare amounts the employee is receiving during the pay period, and (2) regular taxes. L. Per the Federal Family Medical Leave Act (FMLA), group health insurance coverage and other negotiated benefits must be provided to all employees while on the VLTP, as long as the employee's total FMLA and VLTP time does not exceed twelve (12) working weeks. Thereafter, if the employee is not on paid status by virtue of continuing to utilize at least half (50%) of the hours needed per pay period to receive a full paycheck through the use of their accrued sick leave, vacation, compensatory time -off, administrative leave allowances, or leave donated under this Section 14.15.5, the employee will be required to personally fund this benefit if the employee wishes to retain it. If the employee uses less than 50% of the hours needed per pay period to receive a full paycheck through the use of their accruals, the employee will be Rev. 6-26-1212-1 41 -104- 198 required to personally fund their medical premium payments if the employee wishes to retain group health insurance coverage. M. Attendance and Payroll records of employees on VLTP shall denote a "DL," standing for Donated Leave, for time paid to employee while on this program. N. No sick leave, vacation leave, holiday credits, administrative leave, compensatory time, deferred compensation, PERS or any other applicable benefits shall accrue to receiving employee for any hours provided byte donee through the VLTP. O. Vacation leave donations or compensatory time shall in no way affect or modify the receiving employee's employment status with the City, nor shall it affect or modify the application of applicable City policies, rules and ordinances. P. Employees on VLTP who remain on an authorized unpaid leave of absence after FMLA is exhausted may continue to receive assigned donated vacation leave and compensatory time from other regular City employees until the employee returns to work, is terminated, or meets the maximum hours under Section U, below. Q. Availability of donated vacation leave or compensatory time shall in no way delay or prevent the City from taking action to medically separate or disability -retire an employee. R. Donated but unused vacation and compensatory time shall "expire" be ereata baek to the original a^^^• ^nee the requesting employee returns to work on a full-time basis. The Finanee Depanffleat will nati6� eaeh dena+ing employee this his/her untised donations afe He lenger needed S. The recipient employees must be unable to work in any capacity as a result of a serious injury or illness to the employee or a member of their immediate family in order to be eligible to receive donations under the VLTP. T. The total amount of hours donated to any individual shall not exceed two hundred forty (240) hours in any calendar year. U. Only the recipient employees for whom the VLTP has been established may receive donated hours from said plan. Such donated hours will be added to the employee's sick leave balance, as needed. V. The plan will be administered so that hours will be used only as needed and in the order donated. 14.20 SICK LEAVE: Sick Leave shall be allowed only in case of necessity and actual sickness or disability of the employee and employee's dependents (as "dependent" is defined in Section 1.25.15.1 of these Personnel Policies). Sick Leave is not an earned right to time off from work. If an employee is to be absent from work due to illness or other allowable reason, the employee must notify the Supervisor by telephone within the first half hour of normal reporting time, or earlier if possible. Rev. 6-26-1242 1 4 - 105 - >r 199 An employee's preventative medical and dental appointments (within reason) and dependent care ("dependent" is defined in Section 1.25.15.1 of these Personnel Policies) are acceptable uses of sick leave. The City's policy for Sick Leave accrual and "buy-back" is as follows: 14.20.1 Use of Sick Leave: Sick Leave shall be used for illness, off -duty, non -work connected injury, physical examination, including eye examinations, dentist appointments, or other commonly accepted health related matters. 14.20.2 Eli ibg ility: All full-time regular employees are eligible for Sick Leave after completing three (3) months of service. At which time sick leave, in an amount which would have been earned during the first three (3) months period, will be credited to the employee's Leave Account in a lump sum and is available for use. 14.20.3 Number of Hours Sick Leave Allowed: The employees shall be credited with eight (8) hours per month of work, or major fraction thereof. 14 20 4 Excessive Absenteeism or Tardiness: An employee may be disciplined for excessive absenteeism or tardiness (excused or not) which affects the employee's ability to perform assigned duties; interferes with the efficient or effective operation of City programs, or establishes a pattern of abuse or neglect Each situation of excessive absenteeism or tardiness shall be evaluated on a case -by -case basis (exceptions may include FMLA leave or other droved leaves of absence). Discipline under this Section shall be subject to the progressive discipline guidelines outlined in Personnel Policy Section 9.05. 14.20.5 Definitions: a Sick Leave: absence for health related matters of the employee or dependents of the employee (as defined in Section 1.25.15.1 of these Personnel Policies). b Improper Use of Sick Leave: Evidence substantiating any improper use of sick leave use of such leave for anything other than a bona fide reason or any violation of the rules herein shall be considered grounds for disciplinary action up to and including termination. C. Misuse of Sick Leave: Use of sick leave for that which it was not intended or provided. d Pattern Abuse: Consistent periods of sick leave usage, for example: i. Before and/or after weekends. ii. Any one specific day. iii. Half days. Rev. 6-26-1212-1 14 iv. Continued pattern of maintaining zero or near zero sick leave balances. WILD V. Excessive absenteeism — use of more sick leave than accrued or granted. 14.20.64 Sick Leave Pay ack: A. City agrees to provide Sick Leave pay back upon employee's termination, as follows: 2 through 4 years service 25% 5 through 9 years service 50% 10 years service and up 75% B. A maximum Sick Leave accrual of four hundred eighty (480) hours shall be established. If the maximum accrual of Sick Leave has been reached as of the last pay period in November 30-in any calendar year employee shall be reimbursed for the number of Sick Leave days that would have been accrued and unused above the maximum, according to the formula used for Sick Leave pay back upon employee termination, as above. Employees have the option to be reimbursed for accrued and unused sick leave above 240 hours up to 480 hours once every year. The sick time pay back will be issued as a separate check in December. C. City agrees to provide short-term disability insurance coverage. The actual terms and benefits of the City's Disability Leave are governed by the disability insurance program in effect at the time the disability leave is requested. 14.20.75 Filing Statement of Cause: An employee who is absent because of illness may be required to file a written statement describing the illness or reason for absence, which then must be approved by the Employee Relations Officer. If an absence because of illness or disability extends beyond three (3) consecutive work days, the employee may be required to file a statement from the employee's physician. 14.20.86 Effect of Absence on Sick Leave: Absence due to Sick Leave or other approved Leave of Absence will not affect computations for sick leave unless such absences exceed one (1) month, in which case that month, or more, shall be excluded from computation. 14.20.97 Temporary and Seasonal Employees shall not accrue paid sick leave, but may take leave without pay as approved by their Supervisors. 14.20.109 Regular Part -Time Employees who work at least thirty (30) hours per week shall accrue paid sick leave, pro -rated calculated by the number of hours worked as a percentage of a forty (40).hour workweek. Employees in this category may accrue up to three hundred sixty (360) hours of sick leave. Sick leave pay back shall be calculated pursuant to Section 14.20.64. Rev. 6-26-1212-3-1-1 - 147 - 201 14.30.1 Executive Management: The following positions shall receive eighty (80) hours (10 days) of Administrative Leave per calendar year: Building & Safety Director City Clerk City Manager Planning Director Finance Director/Treasurer Community Services Director Public Works Director/City Engineer If any of the above positions have a written employment contract with the City, administrative leave will be negotiated on a case by case basis, and the eighty (80) hours (ten days) shall not apply. 14.30.2 Professional/Administrative/Management Employees: The following positions shall receive forty (40) hours (5 days) of Administrative Leave per calendar year: Accounting Manager Associate Engineer Community Safety Manager Economic Development/Housing Manager Golf & Parks Landscape Manager Maintenance Manager Management Analyst (2) Management Assistant (23) Marketing/Economic Development Manager Human Resources/General Services Manager Planning Manager Principal Planner (2) Principal Engineer (2) Public Works Inspection Supervisor 14.30.3 Accrual and Use: Upon hire emplovees are credited a prorated amount of Administrative Leave upon appointment. The prorated €ul�-amount of Administrative Leave to be accrued for the calendar year may be used at any time during the year subject to the Supervisor's approval. Upon hire, employees are Pwpditp. Leave upon appointment. Administrative Leave is available for use by probationary employees, at the discretion of the Department Director. If an employee terminates, the employee will only be paid for the prorated Administrative Leave earned to the date of termination. If the employee who terminates has not earned enough prorated Administrative Leave to cover Administrative Leave used prior to termination, the remaining balance due shall be subtracted from any Vacation or Sick Leave buy out, or earned salary that the employee may be due upon termination. Rev. 6-26-1242111 - 109 - :u. 202 be subject to call by telephone or other approved methods. Standby assignments shall be scheduled in advance by the appropriate Department Director, and shall be automatically forfeited if the employee is unavailable or unfit when called for duty. Employees working standby assignments shall be paid twenty-five dollars ($25.00) per work day, and sixty4 dollars (%03-5.00) per holiday. In addition to the standby pay, an employee called for standby work shall be compensated at time and one-half, either with pay or compensatory time at the employee's discretion, from the time the employee enters the City limits until he/she leaves the City limits. All employees placed on standby must be able to reach the City limits within thirty (30) minutes under normal driving conditions. Rev. 6-26-1242-1 14 - Ill - 203 order to be reimbursed. If an employee has followed the foregoing requirements for reimbursement and, through no fault of his/her own, is laid off before completion of the approved class or workshop, the employee will continue to be eligible for reimbursement even though he/she is no longer employed by the City. No employee will be eligible for reimbursement for any class or workshop started after the employee has been given a written notice of layoff, notice of termination for failing to pass the probationary period, or notice of intent to terminate employment for cause. In general, training time during working hours shall be considered part of the job. Unless the City directs an employee to attend a specific training course and the course is not available during work hours, training after hours shall be considered voluntary and no additional pay, overtime, or compensatory time shall be given by the City unless advance special written approval is granted. Study time shall be considered completely voluntary. There is no mileage reimbursement for travel to and from educational classes. Required forms must be completed and necessary documentation (receipts and grades) must be provided in order to receive reimbursement. Final and conclusive determinations of the reimbursement amount shall be made by the Employee Relations Officer after review of the request and recommendations by the Department Director and the Employee Relations Officer. No one employee may receive more than 106% of the total annual budgeted money available for tuition reimbursement. 1530 TRAINING AND TRAVEL REIMBURSEMENT: In accordance with the Fair Labor Standards Act (F.L.S.A.), employees who are not exempt shall receive training and travel reimbursement as provided in this Section. Time spent in attending lectures, meetings, training programs and similar activities during work time shall be counted as time worked only if authorized in advance and in writing by the employee's Department Director. No such authorization shall be given unless the lecture, meeting, program, or other activity is directly related to improving the employee's ability to perform his/her job. Time spent in attending lectures, meetings, training programs and similar activities shall not be counted as time worked where such attendance is outside of the employee's regular working hours, except in situations where the employee is directed by the employee's Department Director to attend such lecture, meeting, training program or similar activity. Leisure and meal times are not considered time worked unless they are part of the seminar. Time spent by an employee traveling between the employee's residence and the regular work place is not work time and shall not be treated as hours worked. When an employee is assigned by the employee's Department Director to travel outside of the City, times spent traveling between the employee's home and assigned destination shall be treated as time worked only to the extent that it exceeds the amount of time normally taken by the employee to travel between the employee's residence and regular work place. Rev. 6-26-1212-1 1-1- -113- ". 204 RESOLUTION NO. 2012- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, FOR EMPLOYER PAID MEMBER CONTRIBUTIONS PURSUANT TO GOVERNMENT CODE SECTION 20691 WHEREAS, the governing body of the City of La Quinta has the authority to implement Government Code Section 20691; and WHEREAS, the governing body of the City of La Quinta has a written labor policy or agreement which specifically provides for the normal member contributions to be paid by the employer; and WHEREAS, one of the steps in the procedures to implement Section 20691 is the adoption by the governing body of the City of La Quinta of a Resolution to commence said Employer Paid Member Contributions (EPMC); and WHEREAS, the governing body of the City of La Quinta has identified the following conditions for the purpose of its election to pay EPMC: Section 1. This benefit shall apply to all employees of the Miscellaneous Group. Section 2. This benefit shall consist of paying four percent (4%) (the EMPLOYER paid portion) of the normal member contributions as EPMC beginning July 1, 2012 and, beginning July 1, 2013, shall consist of paying zero percent (0%) (the EMPLOYER paid portion) of the normal member contributions as EPMC. Section 3. The effective date of this Resolution shall be July 1, 2012. NOW, THEREFORE, BE IT RESOLVED, that the governing body of the City of La Quinta elects to pay EPMC, as set forth above. PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City Council held on this 3rd day of July, 2012, by the following vote to wit: AYES: NOES: ABSENT: -«.1 205 Resolution No. 2012- Employer Paid Member Contributions Adopted: July 3, 2012 Page 2 of 2 ABSTAIN: DON ADOLPH, Mayor City of La Quinta, California ATTEST: SUSAN MAYSELS, Interim City Clerk City of La Quinta, California (City Seal APPROVED AS TO FORM: M. KATHERINE JENSON, City Attorney City of La Quinta, California ATTACHMENT d 'M�rnED Y'iMOrNNNNrNrNMMNMppMNrrnNEDdrO OppfO )p Ct l�Nmh FWMVrn N .79CD MM! . M. . .Ooo.-h NUOuppf {T{ppT pmp �AHMN(R0p� ODr-IW� �O NIA C rN fA OaNm'lr NMQNt0 t0 r(O�O�NMd101�GOrnONMd raoO�M act t+fMMt+1 M l7MMt'�MMMV VYOYOdV�1 YI Y1NNNh NfC f0 t0 d pNMe-rn(ONMOrNNN�rNrNMMmWO MiOrrnNaOd Nr'yy-NM�opmppp aomma�mppO OOO�1[pplrnrnrnrnmO)OIG MAN W ~�rnOOmrnNfm'IOh�frnO�W�O�NMwwQ w ONCMIO�M N m rn N NIM CIMMMMl7 l7 th M(MMddddddddd�HHhNlff lnm M d d O M � rn O N M r N N N N r N r N M M m G0 0 M N r rn GppppD Oi O(ppO t�f 0. W U NpNfNh�-NM.-OTGyD OI O�d�O�yr)1O�OOO�NWQ��pp�{pOI 7 rmNv!V O PONMOV-mmrom)N OOOf C)CD'ID GIV OI fO Op OI+iN�N fV m 0G f0 l� rmcorn���NMdu)(p {O raornp�NMd�DrmrnO M N fV NfV Nl Mf�Ml Mth lh l�lM CfMCIdddO`PVQOdN�NN�m �. O1�MddOY1M�rnNNMOrmNNNrNrNMMma0OMYIr rhNNNhtte+pp+-�1NM�Ornmrnrnd0)0 rnTrnpWWO NmNmrn WVOOWO m Ww Mrnd mOONO O�m1D NWOriO��NcmiV nfp�rt0 O N NNNNN(�'1 t'�MClMMMMMMInMdddddddddmmYlm a Orn�MddOUiM�rn�ONI W W Md ON q.7 NTOmIWNW �ONI�VN NNNr�NM�O ui ,<cl; (y [.� �p Op {p g NO�bN�OlyVn rn ONir ymy��Im+IN��W�MnW(O ornD OfONmNWO cgWON fn )O tp )nr mlO Or1CIL N f0 fD r O) O1 N NNNIVNNNIhM Mt+l lh P'I f")MMMIh Ih V'dOOOddYVhN LU N ZO�NMd �MMMMC'fMt+1MMMOaYdadaa h{p rR10iO�NMVNtOrmrnpp NM�O{)n 1p r ClrnO ddNNNN1A IA O1NN Nt0 O 2 m p 207 J J a `�am '8i r={p'mpm�°'iN: os'io��vmrpi, q v. . . . .`. m Na{`ry8pi.9t 7lr.: ppmmp �`ap�, t`�v, dap (apg �Ih N[1m�OEOD�NmNNO?f?� (nW�tO lO Qni pfN'1i[1(Wp OmDONOfmON�MIroWONNtO fD.ON1N fU(O tD Nf�hl�f�l�appDmWmOD OI Of OI OiOOVOC ���.-��^p d o'.17-'C^^'.V-eYf-vi�Wm arO �tWO .MO. I . .. .. 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WGWD WthAm yTy�NN_00NNWOlO NV OW hpNOED ONDr�mn NONVr GpO��O bNNN�'p aN NNNI�INWO�Q fO OWN NaO�?W�p fA �pnWO�-nf �l �O m O��t7hmmON�IW Oi�MWmOe'1NNOrl �i ui ui rp rp ie �o mcc Corr rrei of �a6 cc of ai of o; 1 pd000��:p�����'�♦�� Qr OWpp10 tmO CN')nW Nnm NIpWpD ENO�Omf M l��m�pp Opi�^�'IN�OON�ODV� NcV WQphcRg��ppyy'7 H Qth (A �N�pp O CW'f 00NnNCO QNQ amrVNOm�nNWOpIO Nsrs��00D��0lNO NTmbONiN MVmrmO�MO(p(O Yfm Ol7 tO O1�Mh(OmONVm��-lhNmOCI vi ui vi vi vimWmmrom�onrrrnWao comWoi of of a'm W F Z �Nl"I..}}�[lm nmm0•-NIhYHmnmmO'-NMyyi[Jm mmmmpp mNmMONmmmnmW010 O ". 208 OQum& F COUNCIL / SA MEETING DATE: July 3, 2012 AGENDA CATEGORY: ITEM TITLE: Adoption of a Resolution Approving Cost- BUSINESS SESSION: of -Living and Benefit Adjustments for Management, CONSENT CALENDAR: Contract Management and Confidential Employees for Fiscal Years 2012/2013 and 2013/2014 STUDY SESSION: PUBLIC HEARING: DATION: Adopt a Resolution of the City Council approving cost -of -living and benefit adjustments for Management, Contract Management and Confidential Employees for Fiscal Years 2012/2013 and 2013/2014. FISCAL IMPLICATIONS: A 2% cost -of -living (COLA) effective July 1, 2012, will be given to Management, Contract Management (Building & Safety Director, City Clerk, City Manager, Community Services Director, Planning Director, Principal Engineer and Public Works Director) and Confidential Employees. The estimated two year savings is estimated to be $229,000 as outlined below: Description FY 2012/2013 FY 2013/2014 Total Salary - 2% COLA 62,907 62,907 125,814 Employer Contribution to CalPERS* 8,411 8,523 16,934 Flrployee 4% Contribution to CalPERS (118,558) (118,558) Employee 8% Contribution to CalPERS (237,116) (237,116) Medical Contribution - Half Year (16,200) (16,200) Medical Contribution - Full Year (32,400) (32,400) Increase (Savings) in Costs (63,440) (165,686) (229,126) *Employer share of CalPERS Contribution is 13.914% for FY 2012/13 and 14.1 % for 2013/14 and is in addition to any share the Employer may pay toward the Employee Contribution ,�. 209 CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Past practice has afforded the Management, Contract Management and Confidential employees the same salary and benefit adjustments as provided to the employees represented by the La Quinta City Employees' Association. The most significant negotiated benefits are outlined below: Term 2 year term, beginning 7/1/12 and ending 6/30/14 Salary Year 1, 2% COLA, effective July 1, 2012 pursuant to 2012/2013 Salary Schedule (Attachment 1) Year 2, no change to 2012/2013 Salary Schedule Medical, Dental, Vision & Existing medical cap reduced to $1,312 per month Life Insurance Coverage ($100 reduction from existing $1,412 per month) effective 1 /1 /13; no medical reopener during term of MOU Educational Incentive Program Total fund balance reduced to $10,000 with maxi- mum $1,000 per employee (10%) per fiscal year CaIPERS Retirement Effective 7/1 /12, Employer pays 4% of Employee's share of EPMC versus the current 8%; Effective 7/1/13, Employer pays 0% of Employee's share PERS Formula for New Hires Employees hired on or after 1/1/13 have PERS formula 2% @ 60 based on average of employee's three highest paid consecutive years Personnel Policy Additions & Amendments Changes to the following sections of the Personnel Policies (to the extent applicable): a) Safety and Health - Section 1.55 b) Vehicle and Seat Belt Policy - Section 1.60 c) Interim Appointments - Section 3.25 d) Stay At Work Program - Section 7.31 e) Vacation Leave Transfer Program - Section 14.15.5, Subsections J, N, & R f) Sick Leave - Section 14.20 g) Administrative Leave - Section 14.30.3 h) Standby - Section 14.35.6 i) Other minor changes to Personnel Policies intended to clarify ambiguous or unclear language FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Adopt a Resolution of the City Council approving a cost -of -living and benefit adjustment for Management, Contract Management and Confidential Employees for Fiscal Years 2012/2013 and 2013/2014; or 2. Do not adopt a Resolution of the City Council approving a cost -of -living and benefit adjustment for Management, Contract Management and Confidential Employees for Fiscal Years 2012/2013 and 2013/2014; or 3. Provide staff with alternative direction. Respectfully submitted, Terry Deei ger, Human esources/ General Services Manager Approved for submission by: N. 2 Jrl RESOLUTION NO. 2012- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING COST -OF - LIVING AND BENEFIT ADJUSTMENTS FOR NON - REPRESENTED MANAGEMENT, CONTRACT MANAGEMENT AND CONFIDENTIAL EMPLOYEES, COMMENCING ON JULY 1, 2012, AND TERMINATING JUNE 30, 2014 WHEREAS, the City of La Quinta, hereinafter referred to as "City" desires to make cost -of -living and benefit adjustments for non -represented management, contract management and confidential employees commencing on July 1, 2012 and terminating June 30, 2014. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: Section 1. The City does hereby ratify and approve, ratify and authorize for non -represented management, contract management and confidential employees implementation of salary and fringe benefit adjustments for Fiscal Years 2012/2013 and 2013/2014, as set forth in Exhibit "A." Section 2. The City recognizes contract management positions as the City Clerk, City Manager, Community Services Director, Planning Director, Principal Engineer, and Public Works Director. PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City Council held on this 3rd day of July, 2012, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: DON ADOLPH, Mayor City of La Quinta, California +: i 212 Resolution No. 2012- Adoption of COLA & Benefits Adjustments for Non -Represented Employees Adopted: July 3, 2012 Page 2 of 2 ATTEST: SUSAN MAYSELS, Interim City Clerk City of La Quinta, California (City Seal APPROVED AS TO FORM: M. KATHERINE JENSON, City Attorney City of La Quinta, California .n� 213 EXHIBIT A City of La Quinta Compensation and Benefit Adjustments for Non -Represented Employees July 1, 2012 The compensation and benefit package for City of La Quinta non -represented employees includes the following: Term 2 year term, beginning 7/1 /12 and ending 6/30/14 Salary Year 1, 2% COLA, effective July 1, 2012 pursuant to 2012/2013 Salary Schedule (Attachment 1) Year 2, no change to 2012/2013 Salary Schedule Medical, Dental, Vision & Existing medical cap reduced to $1,312 per month Life Insurance Coverage ($100 reduction from existing $1,412 per month) effective 1/1/13; no medical reopener during term of MOU Educational Incentive Program Total fund balance reduced to $10,000 with maxi- mum $1,000 per employee (10%) per fiscal year CalPERS Retirement Effective 7/1/12, Employer pays 4% of Employee's share of EPMC; Effective 7/1/13, Employer pays 0% of Employee's share of EPMC PERS Formula for New Hires Employees hired on or after 1/1/13 have PERS formula 2% @ 60 based on average of employee's three highest paid consecutive years Personnel Policy Additions & Amendments Changes to the following sections of the Personnel Policies: a) Safety and Health - Section 1.55 b) Vehicle and Seat Belt Policy -Section 1.60 c) Interim Appointments - Section 3.25 d) Stay At Work Program - Section 7.31 e) Vacation Leave Transfer Program - Section 14.15.5, Subsections J, N, & R M.� 214 f) Sick Leave - Section 14.20 g) Administrative Leave - Section 14.30.3 h) Standby - Section 14.35.6 i) Other minor changes to Personnel Policies intended to clarify ambiguous or unclear language e 215 T4'yl 4 4v Q" CITY SA/HA/FA MEETING DATE: July 3, 2012 ITEM TITLE: Consideration of an Art Donation Agreement with Benjamin Rosker RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: l CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Approve the Art Donation Agreement with Benjamin Rosker and authorize the City Manager to execute the Agreement. FISCAL IMPLICATIONS: Per City policy, the donor will pay costs associated with preparation and installation, and the City will purchase and engrave a standard City plaque at a cost of approximately $70. Funding is available in the Art in Public Places Operating Supplies, Account No. 270-0000-451.61-10. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: On April 20, 2012, Benjamin Rosker submitted an offer to donate artwork to the City as a memorial to his wife Jean Rosker (Attachment 1). Mrs. Rosker was a La Quinta resident and was a recognized local artist. Mrs. Rosker's work has been on display at the La Quinta Resort, the Wine and Art Show, and Art Under the Umbrellas along with other galleries and exhibits. She was also posthumously awarded the La Quinta Artist Acknowledgement Award in 2010. Mr. Rosker provided four paintings which were considered by the Community Services Commission. Photographs of the art work have been included as Attachment 2. The estimated value of each painting is $560 to $1,000. {' 216 The four art works considered include: • Malibu Beach 18"x24" • Three on a Swing 18"x36" • Boy Reading 18"x36" • California Kids 23"x30" On May 14, 2012, the Community Services Commission recommended that the City Council consider acceptance of the painting "Boy Reading". The proposed site for the art work would be in the children's section of the Library based on the subject matter and space availability. The City's conditions of a memorial gift align with this proposed donation. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council are: 1. Approve the Art Donation Agreement with Benjamin Rosker and authorize the City Manager to execute the Agreement; or 2. Provide staff with alternative direction. Respectfully submitted, iE Edie Hylton Community Services Director Approved for submission by: 4nkCity Manager Attachments: 1. Memorial Artwork Donor Information dated May 7, 2012 2. Photographs of the potential donations 3. Art Donation Agreement :,�. 217 ATTACHMENT 1 t MEMORIAL ARTWORK DONATION PROGRAM Name: I39AJJA O N H - Zaticc'R Address: Yi67S VIA M9Al+FS5A City: LA Qu#.urk State: « zip: QzzS3 Telephone: ( 760 ) 51,V -o9ff Fax: ( -- ) Email: 4t �� g Name of person being memorialized: YEA$ 'L. Rd S O-9 Time frame the person was a City of La Quinta resident: From: 19 47 To: ;�a i z Information about artwork being donated: Type: Artist e r — Artwork Title: h�ll�, . Value: -S110 Or Special care instructions: I�IJ(if! Wording on Plaque: This artwork donated in memory of JkAN T. 'RD5KEP- By BEN RosKE.R Date: Preferred Location (Please choose in order of preference): La Quinta City Hall X0 La Quinta Library La Quinta Museum La Quinta Senior Center 218 \' Donor's understanding, acceptance, and signature: 13t0,Jnr11N 9- VZ iKZX (print name), have read the information regarding the City of La Quinta's Memorial Artwork Donation Program. l understand, accept, and writ comply with all the terms as specified herein, and will not hold the City of La Quints liable for any damages or theft my donated artwork may suffer while housed in one of the City's face ties. ) understand that once the donation is accepted, ) no longer have any interest in the artwork, and that the City may dispose of the artwork as it seems fit. Donors CITY OF LA QUINTA USE ONLY ----------------- ------------------------------------------------- Date considered by City Council: ApprovallAcceptance of artwork: Yes No Location approved/determined by City Council: Date of Donation: Estimated Cost of Installation: Payment Received: Residency Requirement Met: Plaque Ordered: Artwork Delivered & Installed: Plaque Installed: Donor Notified: 219 MEMORIAL ARTWORK DONATION PROGRAM The City of La Quinta has established a program for those wishing to donate artwork to the City to be displayed at public facilities in memory of a loved one. The locations that are eligible for this program include: La Quinta City Hall La Quinta Library La Quinta Museum La Quinta Senior Center Residency requirements: The person being memorialized must have been a resident of La Quinta. When an individual or group is interested in making an art donation in a person's memory, the donor(s) must submit a letter to the City Council for consideration. The City Council will consider whether or not to accept the artwork and, if the City Council wishes to accept the artwork, determine a location. All costs associated with the preparation, installation, and removal of the art piece is the responsibility of the donor(s), as is the cost of purchasing and engraving a plaque with the following wording: This artwork donated in memory of JEAN = ROSKL--k by 7j3Q/ Rvyreg Date: The plaque will be affixed to the wall and placed beside the memorialart piece. Applicable installation fees must be received by the City before any preparation work can be undertaken in relation to displaying the artwork. If accepted, the donation then becomes the property of the City. The City will not be liable for any damages, loss or theft the art piece once it has been accepted by the City. The City also reserves to the right to terminate the display of the artwork if it determines, in its sole and absolute discretion, that it no longer wishes to have the artwork on display. If the City determines to dispose of the artwork, it may do so as it deems appropriate and shall have no obligation to notify the donor(s) of the intended disposition.. The City reserves the right to make modifications or alterations to this program -as deemed appropriate. For additional information, please contact the Community Services Department at (760) 777-7090. p 22.0 Dear Art Donor, Thank you for considering the City of La Quinta to donate art work. The City prides itself on enhancing the arts and culture of the community and adding art for all to enjoy strengthens our goal. Art donations made to the City by local artists, residents, or in memory of loved ones are greatly appreciated by the City Council Although the City would like to accept all donations provided to them that is simply not possible. The City has limited space for public display as well as storage capacity. Please consider the following items in contributing to the Art Donation Program: • The donated art work will become property of the City. • The determination for the City Council to accept the artwork will be based on a number of criteria including but not limited to appropriateness of the art, condition of the art, ongoing maintenance, and storage and location availability. , • If this is a Memorial Art Donation the City Council requests a 12 monthly "waiting period" before considering the art work. • It is requested that the donor pay for the initial installation of the art work and the City will pay for any further restoration, storage and ongoing maintenance and repair. • The decision to accept or deny the art work will be made by the City Council. • The City will retain the right to terminate the display of the art work and the if the City determines to dispose of the artwork it may do so as it deems appropriate and shall have no obligation to notify the donor of the intended disposition. Please fill out the attached form for donation of art to the City of La Quinta. If you have questions regarding the Art Donation Program please call the Community Services Department at (760) 777-7090. 221 JEAN I. ROSKER EDUCATION: University of Michigan IPA) Wright State UnNeraly, OH SammenW State College. CA Pasadena CityColage, CA - Advanced Art Northern Virgitta Art League PRIVATE INSTRUCTORS: Charlotte Robinson; Ra ph de &egos: Evelyn Tuner GALLERIES & EXHIBR UNT. WASHINGTON D.C. United States House at Representalves; Lord & Taylor Department Slone: Gart nMs Dept. Store DAYTON, OH - - Kettering Foundation; Dayton society o1 Pakdeis & Siargtas; Dayton Coledfon; Fairborn Ad League; WVt Patterson AFBBnsh & Paleffi: Wright Patterson AFB Medical Center. SACRAMENTO, CA Wlson Gallery: Breunars Home Furnlshlog: McClellan AFB Art Studio. LAGUNA BEACH, CA Westbrook Gallery; -_ PertlnantoGalaly- PASADENA,CA Paulsen Gallery; Mao Houston Gallery; Pasadena Art Gallery; Atelier Clemens F*m AdsGa"V WOmeds Club. Cagm is Institute d Technology. LA CANADA FUNTAIDGE CA Descarwo GeMens At Center Wells Fargo Ad CdWI n; La Canada Flydridge Pub Mary; Triage Gallery; (Iota Lee Gallery; La Canada Art Barn. LA QUINTA & Area, CA. Ia Ci ukda At Association; La Quota Resort & Club; Wive & Art Shaw: Art Under the Umbrelna; The Show. Audreys Ck eet: shadow Mountain Palette Ckib Special Award; Palm Desert At Center, Desert At Source Gallery: La Quints GfM; Cathedral City Plft Library: mwm Hm3 Caadelr Club; Woodhaven Comamyy Ckub; KaWdOScope 2003; Jane Bennnan Gallery: CVAA 2004; La Qulnta Inn; Rancho Mirage Pudic Library; 'trans -late' 2007: AAUW Arts In the Afternoon; Riverside County Fad 2008. J.ROSKER STUDIO ORIGINAL ACRYLIC PAINTINGS'.±;i'' JEAN I. ROSKER 47675 VIA MONTESSA- La Quinta, CA 92253,;,=. 222 Phone 760 564 ATTACHMENT 2 p 223 9 coli{ornia 7i ATTACHMENT 3 ART DONATION AND ACCEPTANCE AGREEMENT This Art Donation and Acceptance Agreement (the "Agreement") is entered into this _day of , 2012, by and between the City of La Quinta ("City") and Benjamin Rosker, ("Donor"). WHEREAS, the City wishes to accept and the Donor wishes to donate an artwork more fully described in Exhibit "A" attached hereto and incorporated herein by this reference; and, WHEREAS, the City desires to increase public awareness and exposure to the arts in a cost effective manner for the general welfare and benefit of the City's residents; and, WHEREAS, the Donor is interested in making the donation to the City to be displayed at the Library. NOW, THEREFORE, the parties hereto agree as follows: 1. The City shall accept the donation of the artwork described in Exhibit "A." 2. Donor agrees that the City shall place the artwork at the Library. 3. All transportation and installation, costs for display at the City's identified location shall be -borne by the Donor. All plans and installations for the artwork shall be approved by the appropriate City and/or other government officials. 4. Donor shall provide City with written instructions for appropriate maintenance and preservation of the artwork. 5. A plaque identifying the Donor and/or artist shall be installed and maintained near the artwork, by the Donor. 6. This Agreement, consisting of 4 pages and 2 exhibits, embodies the entire Agreement and understanding between the parties hereto, and there are no other agreements and understandings, oral or written, with reference to the subject matter hereof that are not merged herein and superseded hereby, except as set forth hereinabove. 7. No alteration, change or modification of the terms of the Agreement shall be valid unless made in writing and signed by each party hereto and approved by appropriate action of the City. 8. No waiver of performance by either party shall be construed as or operate as a waiver of any subsequent default of any terms, covenants and conditions of this Agreement. °' 225 9. This Agreement, regardless of where executed or performed, shall be governed by and construed in accordance with the laws of the State of California. 10. In addition to any other rights or remedies and subject to the restrictions otherwise set forth in this Agreement, either party may institute legal action to seek specific performance of the terms of this Agreement, to recover damages, or to obtain any other remedy, at law or in equity, consistent with the purpose of this Agreement. Such legal actions must be instituted in the Superior Court of the County of Riverside, in an appropriate Riverside County municipal court, or in the Federal District Court in the district of California which includes Riverside County. 11. If any party to this Agreement brings a legal action or proceeding against another party to enforce the provisions of this Agreement, or on account of a claim or dispute arising out of this Agreement, then the prevailing party in such arbitration or legal action or proceeding shall be entitled to reimbursement by the other party of the legal fees and costs, including reasonable attorney fees, incurred by the prevailing party in connection with the legal action or proceeding. 12. This Agreement shall be binding upon and shall inure to the benefit of the City and the Donor, and their respective heirs, personal representatives, successors and permitted assigns. 13. All notices, requests, demands and other communications which are required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given upon the delivery or receipt thereof, as the case may be, if delivered personally or sent by registered or certified mail, returned receipt requested, postage prepaid, as follows: To the City: City of La Quinta Attn: Community Services Director 78-495 Calle Tampico P.O. Box 1504 La Quinta, CA 92247-1504 To the Donor: Benjamin Rosker 47675 Via Montessa La Quinta, CA 92253 14. With respect to acts, errors or omissions in the performance of Donor's obligations hereunder, Donor agrees to indemnify and hold harmless the City and its officers, agents, employees, and representatives from and against any and all claims, demands, defense costs, liability or consequential damage of any `".1 226 kind or nature arising out of Donor's (including its subcontractors, agents, employees, assigns or licensees) negligent and/or willful acts, errors or omissions in the performance of Donor's obligations under this Agreement. 15. With respect to acts, errors or omissions in the performance of the City's obligations hereunder, the City agrees to indemnify and hold harmless Donor from and against any and all claims, demands, defense costs, liability or consequential damages of any kind or nature arising out of the City's (including its contractors') negligent and/or .willful acts, errors or omissions in the performance of the City's obligations under this Agreement. The foregoing indemnities shall be in effect without regard to the maintenance of insurance coverage for any such loss, costs, claims, damages or expenses. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first written below. Date ATTEST: SUSAN MAYSELS, City Clerk City of La Quinta, California APPROVED AS TO FORM: M. KATHERINE JENSON, City Attorney City of La Quinta, California Date CITY: CITY OF LA QUINTA, a California A municipal corporation M DON ADOLPH, Mayor City of La Quinta, California DONOR: Benjamin Rosker 227 EXHIBIT "A" DESCRIPTION OF ARTWORK The artwork is an 18"x 36" matted and framed acrylic painting titled 'Boy Reading." 'r. ' 228 EXHIBIT "B" REASONABLE COSTS The value of 'Boy Reading" art work is approximately $1,000. "•� 229 FA MEETING DATE: July 3, 2012 ITEM TITLE: Consideration of a Contract to Construct the PM-10 Stabilization of City -Owned Properties, Project No. 2011-12 RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: 2- CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Approve a construction contract with B.W. Simmons, Inc., in the amount of $137,438 to construct PM-10 Stabilization on City -Owned Properties, Project Number 2011-12 and authorize the City Manager to execute the contract. FISCAL IMPLICATIONS: The following is the project budget: Design: $1,000 Inspection/Testing/Survey: $14,000 Construction: $137,438 Contingency: $62,654 Total: $215,092 CHARTER CITY IMPLICATIONS: None of the funding sources require prevailing wages to be paid. BACKGROUND AND OVERVIEW: The City of La Quinta and the La Quinta Housing Authority own several properties in the Village (Attachment 1). The properties are unsecured and pose a dust control problem when unauthorized parking takes place. In order to comply with Air Quality -'"•J, 230 Management District (AQMD), as well as the Municipal Code requirements, staff investigated perimeter control measures to secure the properties so that they could be stabilized without the threat of vehicles and pedestrians prematurely breaking the crust of the chemical stabilizer. The lots will require stabilizer every 6 to 12 months until they are developed. The recommended option for securing the properties is to place a bollard and cable system around the perimeter. Recycled plastic posts were chosen in order to use AB939 funding. Once the bollard and cable system is in place, the contractor will stabilize the properties. The bollard and cable system will be designed to allow access for special events as well as periodic application of stabilizer. On February 21, 2012, City Council approved the plans, specifications, and engineer's estimate (PS&E) of probable construction costs, and authorized staff to advertise for bid the Stabilization of City Owned Properties, Project No. 201 1-12. The project was advertised with prevailing wage requirements. On March 22, 2012, the City received five (5) sealed bids for the construction of this project. After opening of bids, it was determined that the use of AB939 funds did not in fact require the project be constructed with prevailing wage requirements. The elimination of the prevailing wage requirement was estimated to provide a 10 to 20% savings in bid prices. Staff therefore recommended rejecting all bids and re -advertising the project without the prevailing wage requirements. On April 3, 2012 City Council formally acted to reject all bids and authorize staff to re - advertise for bids the Stabilization of City -Owned Properties, Project No. 2011-12. On May 31, 2012, the City received five (5) sealed bids for the construction of this project. A detailed bid comparison summary is provided for the City Council's review as Attachment 2. B.W. Simmons, Inc. submitted the lowest responsive bid in the amount of $284,733.68, which included the base bid area, plus Additive Alternates 1, 2, and 3. Staff recommends the City award a contract to B.W. Simmons, Inc. to construct the base bid area and Additive Alternate 1 only, in the total amount of $137,438. Due to an expressed need for special event parking by the La Quinta Arts Foundation and Old Town La Quinta, staff prepared a letter agreement (Attachment 3) to provide the terms of reimbursement for the heavier stabilizer and also the conditions of use of the four parcels located on the north and south sides of Main Street. The cost for this additional stabilizer is $5,644 which will be paid by the La Quinta Arts Foundation and Old Town La Quinta. This will provide temporary parking in the Village during special events. The letter agreement will be executed by the City Manager. 231 Contingent upon the City Council's award of the project on July 3, 2012, the following is the project schedule: Award of the Project Construction (30 working days) Accept Improvements FINDINGS AND ALTERNATIVES: July 3, 2012 August 2012/September 2012 October 2012 The alternatives available to the City Council include: 1. Direct staff to award a construction contract to B.W. Simmons, Inc., in the amount of $137,438 to construct the PM-10 Stabilization of City -Owned Properties, Project Number 201 1-12 and authorize the City Manager to execute the contract; or 2. Provide staff with alternative direction. Respectfully submitted, i imothy R. OQAasofi, P.E. Public Works Dire or/City Engineer Approved for submission by: J. S"p6var,%k, City Manager Attachments: 1 . Site Map 2. Bid Comparison Summary for Project Number 2011-12 3. Letter Agreement between the City of La Quinta and the La Quinta Arts Foundation and Old Town La Quinta LLC. . 232 i v ,{.,.. ,".,�.r 4�'T''•'&•a ��'�'�L .".�a. :it �f 4C. � ` fap F � � 1' � ir- '�R _,..a—,. - � �L. 1i � 4 � y♦ ♦ 'a"9- yr` (( t6 - I%AVENIDAMARIINEZ� VrtJ��� , a AJ VENIDAMENOOU _ 1 IAVENIOAMENDOU b f t I M - 1 � Q i T iA� �7'tzk �� t L a< I I:i_' {•. �� i M AVENIDAVIL� 7P -.,Y CAZ`'T\\\yky�W�`7aWNM MLA"' /AVENIOANAVARRO �1 13;f�ti q ,R"s ti• �ks- ���5.�..� �" �F' bC/�iNtit;-3.'YzhaN xS, �...Y �` �_ � iM v'Yro- �:`'+a n 3. Y ,:•-+15� AVENIOABERMUDAB ;hK.y.>: ~ Y.�,,.,..,..r�Y4 �ii�'4 y (��♦�'.Yc�.�}�S�y, w .' Y�'Pp�.'�`. �(� F j� �p .. n. 6 ! fh�CR_"1+ �u7�t I- jjjL' p iv TR��9 r�p' IAt 4c+^.3 t m�7m Zi i iii iCeNA x�, �. '�st t6 `&r Ms 4 a ���F}�LLL°1I �'t� 9M v f`.n Si ih� IMF I °o °op } I'SR i 7 f �� w _: i �, \ � f (�yq 3 ° n*^Ba'�Y'•t ? � � e a i� i � r7 Y,�yar �} r\ 74. F , ,j 4' DESERT CLUB �,��° t u E3`�pl� a �) � j i i _ w. � ....:i atr•��^ � p"`p r.,. �C � �'�w •�.`�'��� ° p, �"� i r y___r ppo ,y.. � �I �, v���� � F yvv� I � -.' �4♦y.''ti" j�� €�%y„yt�M. �. ���� ,1 ti: �^7 �� i�'Y�� n�i^� .:J '� t ..� \D���\ F' �,\\� ��� t1 P\ A � i, J� - ( � S � I �� 1 sl Ptyi.��.. •-8 i „M,AA AgV`ao ♦ rr. ,� f t rl `•is � � \,\�,���\\�, \W � \�� � Ob �e [ 44 > Jp � �✓ ! � i 7" i�l� � �� Y S -s., rwis Dm.�.w.+rrp#p...m.a..m�c+icv'rz•o'y.,+.3z +cf.m.'r4 oJwin��.vep\ryp.m ago, m� -. s;uu,s%iE �r,. ,F7,S,S,r a n t. nL m m n N 03, o a o 0 0 0 0 X n r`ri in • J g O E (D +J O C 0 a J No W a > n a n sE y O a W a 0 0 O T a L .�+ 88888 8 m e 3 $ O P a w� o 1 1 01 m - Fg u� E Z ff 8 m 8 z u 888888 _ ff �Bv�mB v 6 g z 2 W V g Ya O- z - ffocmmm a e M o c a a a m m 2 o a M 6 w � w o a ff E � 8888mm p O P � % 3 O OOOnn s � 88 8 d6 _u ff & i e e y 808000 O O O - 6�d6viw 6 a 0 W E w 0 0 0o. 8o 88 m � 8 ff z $$ o v o $ o w x ff o$ooem $ o d E o f «� Q j £ Y m N O z Qo-0 QN av� Z O u0 aV s.-o �-a moo 00 6 = W o Ic E ATTACHMENT 2 234 ATTACHMENT 3 June 12, 2012 Christie Salamone, Executive Director La Quinta Arts Foundation 78150 Calle Tampico, Ste. 215 La Quinta, CA 92253 Wells Marvin Old Town La Quinta, LLC 78100 Main Street, Ste. 206 La Quinta, CA 92253 Subject: Letter Agreement and Revocable License between the City of. La Quinta, the La Quinta Arts Foundation and Old Town La Quinta for the funding of heavy duty stabilizer on select City owned lots in the La Quinta Village area On May 31, 2012 the City of La Quinta received bids for the PM-10 Stabilization of City Owned Properties, Project No. 2011-12. The bid schedule contained three alternatives for placement of semi -permanent stabilizing product on select lots to allow temporary parking. On June 11, 2012, representatives from the City, La Quinta Arts Foundation and Old Town La Quinta met to discuss the selection and funding of stabilizers for the lots to be used for temporary parking. The followings terms were agreed upon between the parties: The City of La Quinta will award the project with Additive Alternate 1, which will place heavy duty glue on Lots A thru E as shown on the attached Exhibit No. 1; ,.n. 235 The Arts Foundation and Old Town La Quinta will split the additional cost of $5,644.00 for adding the heavy duty stabilizer to Lots A, B, C and D. The money will be paid to the City of La Quinta within thirty days of award of this project by the City Council. On a temporary basis, the Arts Foundation and Old Town La Quinta will be provided keys to unlock the cable barrier around Lots A thru D to allow temporary parking for special events during the Season. This is anticipated to involve approximately 16-20 weekends. For each such use or series of uses, the Foundation or Old Town will first obtain written approval, which approval may be granted via e-mail, from Maria Casillas or from Frank Spevacek. The granting of such approval will be within the discretion of the City, and the parties recognize that the City's use of the property will have priority over the use by the Foundation or Old Town. In addition, the Foundation and Old Town recognize that the City may desire to sell the property or to change its use, in which case, the area will no longer be made available for temporary parking. The City of La Quinta will maintain the bollard and cable system. The Arts Foundation and Old Town La Quinta will be responsible for any damage to the bollard and cable system as a result of the lots being used for temporary parking and will hold the City of La Quinta harmless for any claims arising from the lots use for temporary parking. Specifically, for their respective uses of the temporary parking area, the Foundation and Old Town each agree to defend, indemnify and hold the City of La Quinta and its officers, employees, and agents ("City indemnitees") free and harmless from any and all of claims, causes of action, obligations, losses, liabilities, judgments, damages, including reasonable attorneys fees and costs of litigation (collectively "Claims") arising out of and/or in any way relating to the use of the temporary parking area. In the event the City indemnitees are made a party to any action, lawsuit, or other adversarial proceeding in any way involving such Claims, the Foundation or Old Town (depending on which entity was using the temporary area) shall provide a defense to the City indemnitees, or at the City's option, reimburse the City indemnitees their costs of defense, including reasonable attorneys' fees, incurred in defense of such claim. In addition the Foundation and Old Town shall be obligated to promptly pay any final judgment or portion thereof rendered against the City indemnitees. For the Art Under the Umbrella events, both the Foundation and Old Town will be considered the users of the temporary parking area. Prior to being provided with the keys for the keys to access the parking area, the Foundation and Old Town shall each be required to provide a certificate of insurance showing the City as an additional insured on their respective insurance n 236 policies. The certificate of insurance and related endorsements shall require the approval of Terry Deeringer and the City Attorney., Unless terminated earlier by the City, the term of this agreement shall be one year from the date of execution of this agreement. The agreement may be extended by the mutual agreement of the subject parties.The City of La Quinta reserves the right to terminate this agreement at any time with a thirty day notice to the other signatories. Should the use of Lots A thru D for temporary parking cause the stabilizer to become damaged and allow dust to leave the lots, the Arts Foundation and Old Town La Quinta will perform dust control measures per chapter 6.16 of the La Quinta Municipal Code to eliminate dust from leaving the lots. Frank J. Spevacek, City Manager Concur: Concur: Christie Salamone, Executive Director Wells Marvin, President Old Town La Quinta, LLC .'�. 23 7 Taf 4 4v Q" FA MEETING DATE: July 3, 2012 ITEM TITLE: Consideration of an Updated Cooperative Marketing Program for the Use and Marketing Agreement by and Between Desert Classic Charities and the City of La Quinta RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: 3 CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Approve an updated Cooperative Marketing Program for the Use and Marketing Agreement by and between Desert Classic Charities and the City of La Quinta. FISCAL IMPLICATIONS: The Use and Marketing Agreement requires the City to fund a maximum of $1 10,000 in support of the Humana Challenge Golf Tournament. This financial support is allocated as follows: $95,000 for police and fire/medical services, and $15,000 for waste recycling services. These are not new costs but are costs included in the contracts for police, fire/medical, and waste recycling services with Riverside County and Burrtec, respectively. Funding has been included in the Fiscal Year 2012/2013 Budget. CHARTER CITY IMPLICATIONS: The City's Charter allows the City of La Quinta ("City") to utilize General Fund revenues to encourage, support, and promote economic development. The Humana Challenge Golf Tournament ("Tournament") will take place in the City and benefit the local economy. BACKGROUND AND OVERVIEW: The City and Desert Classic Charities ("Classic") entered into a Use and Marketing Agreement by and between Desert Classic Charities and the City of La Quinta ("Agreement") on November 1, 2011 (Attachment 1). The Agreement provides that, :.a ` 236 "both Parties shall review and approve the Marketing Benefits annually." Accordingly, staff has worked closely with the Classic, operator of the Tournament, to update the marketing activities related to the 2013 Humana Challenge. The updates are reflected in the "2013 Cooperative Marketing Program" (Attachment 2; Exhibit "B" of the Agreement). Some highlights of the updated marketing activities are provided below: • City of La Quinta will continue to be recognized as an official Tournament Sponsor and the "Host City" • Classic will provide the City with special event passes and tickets to the Tournament • Cross -promotion mediums shall include: mobile apps, social media, websites, online marketing, and traditional advertising (print, radio, TV) • Classic will provide general managers of La Quinta hotels tickets for customized packages to offer in connection with the Tournament • Classic will work with La Quinta businesses and offer them a 15% discount on advertising and exhibitor space • Classic will work with key partners such as the Chamber of Commerce • City in -kind services will entail providing four traffic safety message boards and installation of Tournament banners in the Village In addition to working with the Classic, City staff will be working directly with Humana on health and wellness events such as the Humana Well -Being Walk, the Humana Healthy Fun Fair, and Humana Day at Certified Farmers Market, which were organized by the City and funded by Humana. With hundreds of people participating, these community events were very successful, and provided fun and excitement leading up to the Tournament. The 2012 Humana Challenge enjoyed great success thanks to its new sponsor, Humana (who works in partnership with the Clinton Foundation), a new format which includes more professional players, the new partnerships formed, and the numerous other changes implemented in an effort to enhance the Tournament. Highlights from the 2012 Humana Challenge are summarized in a report from the Classic (Attachment 3). Greg Helm will be in attendance to share some high points with Council and answer any questions regarding the Tournament. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Approve an updated Cooperative Marketing Program for the Use and Marketing Agreement by and between Desert Classic Charities and the City of La Quinta; or 239 2. Do not approve an updated Cooperative Marketing Program for the Use and Marketing Agreement by and between Desert Classic Charities and the City of La Quinta; or 3. Provide staff with alternative direction. Respectfully submitted, Maria 4asillas Marketing/Economic Development Manager Approved for submission by: City Manager Attachments: 1. Use and Marketing Agreement by and between Desert Classic Charities and the City of La Quinta 2. 2013 Cooperative Marketing Program (Exhibit "B") 3. 2012 Humana Challenge Summary Report u 240 ATTACHMENT Use and Marketing Agreement by and between Desert Classic Charities and the City of La Quinta This Use and Marketing Agreement ("Agreement") is entered into this 151 day of November, 2011 by and between the City of La Quinta, a municipal corporation ("City") and the Desert Classic Charities, a California public benefit corporation ("Classic"). The City and Classic are sometimes hereinafter individually referred to as Party or collectively as Parties. RECITALS: A. The Classic holds a professional golf tournament played each year (usually in January or February) in the Coachella Valley over different golf courses ("The Tournament"). The City owns and maintains property generally located on the western side of Jefferson Street between Avenue 52 and Avenue 54 in the City of La Quinta ("the Property"). On or about June 6, 2007, the City and Classic entered into an Amended Use Agreement providing for various items to be provided and supplied during the Tournament each year for ten years for the purpose of assisting in the Classic Tournament. B. Four courses which were used in the 2010 and 2011 Classic Tournaments are located in the City of La Quinta at SilverRock Resort, two at the PGA West Golf Club and the La Quints Country Club. C. Earlier in 2011, Humana ("Sponsor"), the William J. Clinton Foundation ("Clinton") and the PGA TOUR ("PGAT") entered into a partnership for the benefit of The Tournament. Such partnership has an eight -year term, expiring after the 2019 Tournament. As a condition of this partnership, Classic formed a Tournament Committee comprised of representatives of all partners. D. The number and selection of courses to be used each year are subject to the determination by the Tournament Committee and PGA Tour. For 2012, SilverRock Resort was not selected as one of the Tournament courses. E. The parties mutually desire to enter into this Agreement to replace the Amended Use Agreement, to leverage marketing dollars, to enhance promotion of the City and the Classic bringing more visitors to the City and to the Tournament and to expand community participation including utilization of restaurants, hotels, retail stores, and other amenities located within the City of La Quinta. " 241 F. The parties mutually desire to enter into' this Agreement for the purpose of providing certain base levels of community safety resources, solid waste disposal and recycling services and in -kind services.during the Tournament as it is conducted each year at courses that are within the city limits of La Quinta ("La Quinta Courses") at PGA West, the La Quinta County Club or any other course determined by the PGA Tour and Tournament Committee to be utilized in exchange for the additional marketing and advertising that will promote .and provide publicity for the City and The Tournament and to provide substantial parking for participants and visitors to The Tournament. NOW, THEREFORE, in consideration of the above recitals and mutual covenants set forth and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: Section 1. Term of Agreement. The Term of this Agreement shall commence on November 1, 2011. Unless terminated earlier pursuant to the terms of this Agreement, this Agreement shall remain in effect after the conclusion of the Tournament of 2019 (the "Term"). The Term may be extended beyond the termination date with the written mutual consent of both Parties for an additional period of years. Notwithstanding any provision herein or in this Agreement to the contrary, the Parties agree that if and when, if at all, the PGAT terminates its affiliation with or sponsorship of the Tournament, then either Party may, but is not obligated to, terminate this Agreement upon submission of written notice to the other Party, without further right or obligation of either Party to the other Party, except for any unfulfilled obligations otherwise existing at the time of termination of this Agreement. In addition, as specified in Section 7, if the Classic ceases to conduct the Tournament and no replacement tournament meeting the requirements of Section 7 is to be conducted, this Agreement shall terminate. The Classic agrees to provide written notice to the City within 10 (ten) business days of (1) any action by the PGAT indicating it has or may terminate its affiliation with or sponsorship of the Tournament; and (2) any action or decision that may cause the Classic to not conduct the Tournament. Section 2. Early Termination. For the 2013 Tournament and each Tournament thereafter, the City's funding obligation under this Agreement is subject to and contingent upon the City Council's appropriation of the necessary funding during the annual budget preparation and adoption. Should the City Council not appropriate the funding necessary for this Agreement for any year during its Term, the City shall give notice to the Classic on or before July 151" of that year, and the Agreement shall be terminated effective upon such notification. Section 3. Marketing Benefits. In consideration for the public safety services, solid waste services, and parking, the Classic shall provide to the City additional marketing benefits as provided in Exhibit "B" attached hereto and 2 99999.96380\6009551.1 "•J,, 242 incorporated herein by this reference ("Marketing Benefits"). The Parties shall review and approve the Marketing Benefits annually. Section 4. Public Safety Services. Section 4.1 Public Safety Services at the La Quinta Courses. The Parties agree that for the Term of this Agreement, City shall provide a base level of public safety services for that portion of the Tournament held at the La Quinta Courses as specified in Exhibit "A", attached hereto and incorporated herein by this reference ("Public Safety Services"). Any additional public safety services requested by the Classic at the La Quinta Courses during the Term of this Agreement not specified in Exhibit "A" shall be charged to and paid for by the Classic. Section 4.2 Public Safety Services Beyond the La Quinta Courses, This Agreement does not afford public safety services for any and all events held outside City limits, and any and all Tournament events held within City limits beyond the La Quinta Courses. The Classic must contract directly with the Riverside County Sheriff's Department or private security for any and all public safety services not covered by this Agreement. Section 5. Solid Waste Disposal and Recycling Services. The Parties agree that for the Term of this Agreement, City shall provide solid waste disposal and recycling services at the La Quinta Courses as specified in Exhibit "A", attached hereto and incorporated herein by this reference ("Solid Waste Services"), The Classic shall pay for any additional services that are not specified in Exhibit "A". Section 6. In -Kind Services. The City of La Quinta agrees to provide four (4) traffic safety message boards, and the City's Public Works Department shall install street banners in the La Quinta Village, as provided in Exhibit "C". Section 7. Parking Facilities. The City has designated approximately 45 acres of the Property (the "45 Acre Site"), which will be able to accommodate parking during the Tournament. The Classic has previously provided a one-time contribution of Fifty Thousand Dollars ($50,000.00) ("One Time Contribution") to the City for the installation of turf, irrigation, and soil preparation and contouring on the 45 Acre Site. If the City determines to change use of the 45 Acre Site in a manner that will no longer accommodate Tournament parking, the City will designate 45 acres in another location at the Property to be used for Tournament parking (the "Replacement 45 Acre Site") in which case City shall pay for grading, access and other improvements including soil stabilization. If the Classic wishes to use an alternative location at the Property for Tournament parking, it may request the City to designate an alternative location. The City's decision of whether to designate an alternative site is in the City's sole and absolute discretion. If the City does designate an alterative site at the Classic's request, the Classic shall pay for 3 99999.96380\6009551.1 a 243 all costs of grading and other improvements including soil stabilization. The City shall not be responsible for any costs associated with the improvement or use of an alternative site requested by the Classic. Each year, the Classic shall notify the City of its parking plans no later than October 1 prior to the Tournament. If the Classic notifies the City after October 1 that it will not be utilizing the 45 Acre Site, the Classic will be responsible for reimbursing the City for any incurred costs associated with preparing the 45 Acre Site. The areas designated by the City for parking shall be referred to hereinafter as the "Parking Facilities." Classic shall be responsible for all measures necessary to prevent dust generation from the Parking . Facilities during the week of the Tournament. The Classic shall have exclusive use of and shall be responsible for operating the Parking Facilities during the week of the Tournament in accordance with required standards and regulations that include, but are not limited to the Americans with Disabilities Act (ADA) and the California accessibility regulations. Within seven (7) days after the Tournament, the Classic shall return the Parking Facilities to the condition that the Parking Facilities were in prior to the week of the Tournament. However, as to the Replacement 45 Acre Site, if the surface is not turfed or paved, the City shall be responsible for the installation of soil stabilizer. In addition, the agreements that the Classic enters with any operator or operators of the Parking Facilities must require that the operator(s) provide the same or greater levels of insurance and indemnity favor of the City as are set forth in this Agreement. The Classic agrees that the City shall have no liability for any injuries or losses arising out of the operation of the Parking Facilities, including but not limited to provision and maintenance of the required number of ADA accessible parking spaces. In addition, the Classic shall be responsible for providing handicap accessible restroom facilities adjacent .to the handicapped parking area. Section 8. Course Selection. Although the PGAT and Tournament Committee did not select the SilverRock Resort course to be part of the 2012 selection of courses for the playing of the Tournament, SilverRock Resort course may be considered at a future time as one of the courses for the playing of the Tournament if the City and the Classic agree that they wish to have it within the rotation in the Tournament. If at some point in the future the SilverRock Resort course is selected by the PGAT and the Tournament to be in the Tournament rotation, and both the City and the Classic agree to include it in the rotation, the City and the Classic shall enter into a new agreement that contains the requirements for operations, fees, and course conditions that were in the original Amended Use Agreement. Sectiori 9. Replacement Tournament/Sponsor. If the Classic ceases to conduct the Tournament during the Term of this Agreement or if the named sponsor of the Tournament changes, this Agreement will extend to a successor or replacement tournament if following conditions are met: (1) the Tournament is conducted and sponsored by the PGA Tour (2) the Tournament provides equal or l] 99999,96380\6009551.1 "�'� 244 greater media exposure and good will for the City (3) the Tournament and/or new sponsor is approved by the Classic (4) the Tournament is approved by the City Council, Condition number (4) will be automatically satisfied if (i) the Tournament is at least four (4) days in length and the (ii) Tournament is conducted and sponsored by the PGA Tour. Section 10. Indemnity. Section 10.1 City to Indemnify. The City hereby agrees to indemnify, defend, and hold the Classic and its officials, officers, employees, volunteers, and agents ("Classic Indemnified Parties") harmless against and from any liability for any claim, action or proceeding against the Classic Indemnified Parties that arises solely out of any negligent acts, omissions, or willful misconduct by the City and its officials, officers, employees, volunteers and agents in the performance of any act related to the subject matter of this Agreement. In their sole discretion and at their own cost and expense, the Classic Indemnified Parties may participate in the defense of any such claim, action or proceeding, utilizing legal counsel of their choice; however, such participation shall not relieve the City of any obligation imposed pursuant to this Agreement. The Classic shall promptly notify the City of any such claim, action or proceeding and shall cooperate fully in the defense of the same. Section 10.2 Classic to Indemnify. The Classic hereby agrees to indemnify, defend, and hold the City, its golf course operator, the La Quinta Redevelopment Agency, and their respective officials, officers, employees, volunteers, and agents ("City Indemnified Parties") harmless against and from any liability for any claim, action or proceeding against the City Indemnified Parties that arises solely out of any negligent acts, omissions, or willful misconduct by the Classic and its officials, officers, employees, volunteers, and agents in the performance of any act related to the subject matter of this Agreement. The Classic further agrees to indemnify, defend, and hold the City Indemnified Parties harmless against and from any liability for any claim, action or proceeding against the City Indemnified Parties that relates to the Tournament. In their sole discretion and at their own cost and expense, the City Indemnified Parties may participate in the defense of any such claim, action or proceeding, utilizing legal counsel of its choice; however, such participation shall not relieve the Classic of any obligation imposed pursuant to this Agreement. The City shall promptly notify the Classic of any such claim, action or proceeding and shall cooperate fully in the defense of the same. Section 10.3. Joint Defense. Notwithstanding the provisions of Section 5.3 above, the City and the Classic may agree in writing to a joint defense of any claim, action or proceeding that arises out of the joint acts or omissions of the Parties. Any such agreement may provide that the Parties appoint mutually 5 99999.96380\6009551.1 245 acceptable legal counsel to defend such claim, action or proceedings, In such a case, the Parties shall bear equally the cost of any joint defense and any amount paid. by the Parties in settlement of, or as a result of a court judgment, arbitration or mediation award related to the claim, action or proceeding, if any. The Parties shall also share equally in any amount awarded to or received by both Parties in settlement of, or as a result of, a court judgment, arbitration or mediation award of such a claim, action or proceeding. Neither Party may bind the other Party to any settlement of such a claim, action or proceeding, without the express written consent of the other Party. Section 10.4. Comparative Fault. Notwithstanding any provision contained herein to the contrary, in the event of any settlement, court judgment, or arbitration or mediation award that allocates or determines the comparative fault of the Parties, either Party may seek the reimbursement from the other Party, of defense costs, settlement payments, judgments or awards, that are consistent with such comparative fault to the extent that such settlement, judgment, award, payment or cost are not covered by insurance the Parties are required to maintain under this Agreement. Section 11. Insurance. Section 11.1 Minimum Scope of Insurance. The Classic and the City shall each procure and maintain throughout the term of this Agreement, at their respective cost and expense, the following types of insurance to cover their use of the Property and their performance under this Agreement: (1) a comprehensive general liability and property damage insurance and (2) worker's compensation insurance (as required by law) and employers' liability insurance ("Insurance Policies"). Such Insurance Policies shall insure against all claims for death and injuries to persons and damages to property which may arise from or in connection with the use of the Property. Section 11.2 Minimum Limits of Insurance. Coverage shall provide limits no less than: (1) General Liability: $10,000,000.00 per occurrence for bodily injury, personal injury and property damage, If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the Agreement or the general aggregate limit shall be twice the required occurrence limit; and (2) Workers' Compensation and Employers' Liability: Workers' Compensation limits as required by the, Labor Code of the State of California. Employers' liability limits of $1,000,000.00 per accident for bodily injury or disease. Section 11.3 Insurance Endorsements. The Insurance Policies shall contain the following provisions, or the Classic and the City, respectively, shall 99999.96380\6009551.1 'r 246 provide endorsements or additional party certificates to add the following provisions to the Insurance Policies: Section 11.4 General Liability. The general liability policy shall be endorsed to state that: (A) the other Party, its directors, officials, officers, employees and agents shall be covered as additional insureds with respect to the performance of the Agreement by the insuring Party and its officials, officers, directors, administrators, agents, representatives, employees or volunteers, including materials, parts or equipment furnished in connection with such services; and (B) the insurance coverage shall be primary insurance with respect to the other Party and its directors, officials, officers, employees and agents, or if excess, shall stand in an unbroken chain of coverage excess of the insuring Party's scheduled underlying coverage. Any insurance or self-insurance maintained by the other Party or its directors, officials, officers, employees and agents shall be excess of the insuring Party's insurance and shall not be called upon to contribute with it in any way. The Classic shall also list the City's golf course operator as an additional insured. Section 11.5 Workers' Compensation and Employers Liability Coverage. The insurer shall agree to waive all rights of subrogation against the other Party and its directors, officials, officers, employees and agents for losses paid under the terms of the insurance policy which arise from work performed by the insuring Party. Section 11.6 Coverages. Each insurance policy required by this Agreement shall be endorsed to state that coverage shall not be suspended, voided, reduced or canceled except after ten (10) days prior written notice by first class mail has been given to the other Party. Section 11.7 Separation of Insureds• No Special Limitations, The Insurance Policies required by this Section shall contain standard separation of insureds provisions. In addition, such Insurance Policies shall not contain any special limitations on the scope of protection afforded to the other Party or its directors, officials, officers, employees and agents. Section 10.8 Acceptability of Insurers, Insurance is to be placed with: (1) insurers with a current A.M. Best's rating no less than A: Vill, licensed to do business, in California, and satisfactory to the non -insuring Party; (2) with a joint powers agency acceptable to the non -insuring Party; or (3) under a self insurance program acceptable to the other Party. Any deductible under the Insurance Policies issued shall be the responsibility of, and paid by, the insuring Party. Section 11.9 Verification of Coverage. Each Party shall have the right of reasonable approval over any Insurance Policy obtained by the Other Party. 7 99999.96380\6009551.1 247 Each Party shall furnish original certificates of insurance and endorsements effecting coverage required by this Agreement with the other Party. The certificates and endorsements for each policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, Each Party reserves the right to require complete, certified copies of the required Insurance Policies at any time. Each Party may at any time review the insurance coverage obtained by the other Party, the coverage limits, the provider, or the form of the policy and may require that alternate or modified coverage be obtained if, in any Party's prudent business judgment, the policy is insufficient to provide adequate protection against the kind and extent of risk that is foreseeable for the use of the Property under this Agreement. Section 12, Compliance with Law. The Classic agrees to abide by all ordinances, resolutions, statutes, rules, regulations and laws of the City of La Quinta and any Federal, State or local governmental agency of competent jurisdiction. Section 12.1 Covenant Against Discrimination. Classic covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin, disability, or ancestry in the performance of this agreement. Classic shall take affirmative action to insure that anyone employed or contracted by the classic during and for the tournament is treated without regard to their race, color, creed, religion, sex, marital status, national origin, disability, or ancestry. Section 13. Additional City Benefits. The Classic shall provide to the City the following additional benefits. Section 13.1 Membership on Committee. The City, at its option, may have a representative on the Fund Distribution Committee ("Committee") during the Term of this Agreement. If the Committee is dissolved, the City will hold a seat on the replacement committee that determines the distribution of the charitable funds generated by the Classic. The representative shall have the same voting rights and other privileges as all other members of the Committee. Section 13.2 Event Related Items, The City annually shall be provided, free of charge, with all of the following: (1) ten (10) seats (a table with preferred seating if such is offered) at the Tournament's Opening Event; (2) ten (10) passes to the Bob Hope Club (or successor entity); (3) ten (10) passes to the Tournament's Closing Evening Event; (4) two thousand (2000) passes to the Tournament; and (5) the City will be recognized as an official sponsor of the Tournament and shall be exclusively designated as Host City. Additional marketing 8 99999.9636016009551.1 "� 248 benefits shall accrue for the City as outlined in the Cooperative Marketing Plan outlined in Exhibit "B". Section 14. Entire Agreement; Amendment. Except as provided herein, this Agreement and the terms herein stated shall constitute the entire Agreement between the Classic and the City and supersedes all prior written and verbal agreements, representatives, promises or understandings between the Parties. This Agreement shall supersede the Amended Use Agreement entered into between the City and the Classic on or about June 6, 2007. That Agreement shall have no further force and effect. Any amendment to this Agreement, or its terms, must be made in writing and be executed by both Parties. Section 15. Assignment. This Agreement or any interest of either Party herein shall not at any time after the date hereof, without the prior written consent of the other Party, be assigned or transferred. Section 16. Operational Contacts, The Classic and the City shall provide each other with the names and telephone numbers of personnel that are responsible for the day to day operations of programs and facilities including after- hours contacts in the event of emergency situations. Said list shall be updated as needed based on personnel changes. Section 17. Notices. All notices, statements, demands, requests, consents, approvals, authorizations, appointments or designations hereunder by either Party to the other shall be in writing and shall be sufficiently given and served upon the other Party, if sent by United States registered mail, return receipt requested, postage prepaid and addressed as follows: City: City Manager, City of La Quinta 78-495 Calle Tampico La Quinta, California 92253 Classic: Desert Classic Charities Attn: President P.O. Box 865 Rancho Mirage, CA 92270 Either Party may change its address by giving notice to the other Party in the manner provided for in this Section. Section 18. Waiver. The failure of either Party to insist upon strict performance of any of the terms, conditions or covenants in this Agreement shall not be deemed a waiver of any right or remedy for a subsequent breach or default of the terms; conditions or covenants herein contained. 0 99999.96380\6009551.1 :.a„_. 249 Section 19. 'Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one in the same Agreement. Section 20. Attorneys Fees. If either Party commences an action against the other Party either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing Party in such litigation shall be entitled to have and recover from the losing Party reasonable attorney's fees and all other costs of such action. Section 21. Applicable Law and Venue. This Agreement shall be interpreted in accordance with the laws of the State of California. Any legal action or proceeding brought to enforce the terms and provisions of this Agreement shall be brought in the Superior Court of the State of California, Riverside County or in the United States District Court, Central District of California. IN WITNESS WHEREOF, the Parties hereto have executed this Agreement in duplicate originals as of the dates set forth below. DATED: CITY OF LA QUINTA �✓/���C City Manager, City of La Quinta DESERT CL4(SSIC CHARITIES M. FOSTER, PRESIDENT 10 .,�� 99999.96380\6009551.1 250 APPROVED AS TO Quinta APPROVED AS TO FORM: r' David Er in, B t Best & Krieger, Counsel for Desert Classic Charities 11 99999.96380\6009551.1 •,,dl• J 251 5S EXHIBIT "A" PUBLIC SAFETY SERVICES AND SOLID WASTE DISPOSAL AND RECYCLING SERVICES To assist Classic in the Police and Fire Public Safety efforts during the term of this Agreement, the City agrees to pay for Police, Fire and EMT Services. In addition, in an effort to promote the green recycling efforts and maintain solid waste diversion mandates of the City of La Quinta and to supplement funding for the Desert Classic Charities, the City agrees to pay for the waste and recycling fees. The total paid by the City for the services mentioned above shall not exceed $110,000. This total may increase in the future based upon costs for such services reflected by increases from Fire, Police, EMT, solid waste disposal, and recycling services. The parties shall periodically meet to determine costs for future year's Classic. 12 99999.96380\6009551.1 .0;252 EXHIBIT "B" 2012 COOPERATIVE MARKETING AGREEMENT Marketing Programs 1. Classic and City of La Quinta shall cooperatively work to develop a year round marketing program that will market the Tournament and the City as a year round golf resort. Efforts shall include utilization of both the Tournament's website and City's tourism website (www.PlayinLaQuinta.com), and to the extent feasible shall use paid search engines to drive traffic to each. Each website shall have direct links to the other. Both Classic and City shall use its best efforts to increase attendance and expand the reach of Tournament promotion. 2. Classic and City shall use social media such as Facebook and phone applications ("apps"), to extent possible, to promote the Tournament and all of its related activities as well as promote the City as a premier tourist destination. 3. Classic and City will use its best efforts to engage the La Quinta business community in the promotion and marketing of the Tournament. This may include a La Quinta business expo exhibit, which could feature restaurants and retailers. Classic shall offer a prominent location at the Tournament Host Course for La Quinta businesses and shall offer reduced rental rates (reduced rates shall be defined at a later date). The City shall provide a letter signed by the Mayor encouraging participation in support of the Tournament from La Quinta businesses and residents. 4. Classic will assist the City and La Quinta hotels in developing Classic hotel, tournament, and golfing package promotions by providing up to 150 Clubhouse Badges and up to 500 daily tickets to La Quinta hotels for the sole purpose of joint advertising of hotel, tournament, and golfing packages for Classic, local hotels, and the City. No value may be placed upon the badges and tickets other than their face value. Classic Media & Advertising Plan 1 . Classic shall provide to the City a copy of its Media & Advertising Plan by October 15, 2011. 2. The Classic Media & Advertising Plan shall outline, as determined by that date, media purchases, advertising mediums, run dates/frequency, size of advertisements, and length of radio/TV commercials. Plan shall not include rates/costs for media purchases. 13 99999.9638M6009551.1 it ^-1 253 3. Plan shall include enhanced regional marketing in an effort to drive more visitors to La Quinta from throughout Southern California. Classic will work with the City on cooperative regional advertising that may include regional magazines and business journals (i.e., Los Angeles, Orange County, San Diego, and Inland Empire), area newspapers, and digital marketing all intended to yield value added coverage such as editorials and online exposure. 4. The Classic and the Tournament Committee will look into further expanding its marketing coverage in important Regional Drive-in Markets, inclusive of Los Angeles and Orange County, The City and Classic will further discuss working together to form a cooperative . effort, to market the City, the Tournament, and the City's lodging to the driving distance market. 5. Tournament graphic design for ads, banners, posters, billboards, etc, which has been designed by Classic, shall be submitted to City for review and comment by October 15, 2011. This requirement for submission does not include generic Host Course, i.e. Palmer Private at PGA West, signs/signage produced for 2011 Tournament that will be used again for 2012 Tournament. 6. All artwork, radio spots, commercials, emails, graphics and other marketing -related tangibles involving City, SilverRock, or La Quinta hotels/businesses designed by Classic shall be submitted to City for review and comment with at least a two -working day turnaround time. This requirement for submission does not include generic Host Course, i.e. Palmer Private at PGA West, signs/signage produced for 2011 Tournament that will be used again for 2012 Tournament. Benefits to City of La Quinta Television 1, The Classic will exercise its best efforts to encourage "The Golf Channel" to include the City of La Quinta in its commercials, promotions, on -air mentions, and advertisements in connection with their broadcast of the Tournament. Should Classic produce commercials, promotions, and advertisements exclusively for The Golf Channel, the City shall have the option to develop a City of La Quinta "tag phrase".that shall be incorporated into promotional material. The City will also provide a set of graphic guidelines for all City advertising/marketing handled by Classic; said guidelines will outline use of City logos, scripts, photography, text, and dimensions of graphic elements. 14 99999.96380\6009551.1 e•.` 254 Radio Print 2. City logo or City name will be graphically shown as "Host City" in video commercials on all targeted local and/or regional stations that might be run. 3. City logo or City name will be mentioned as "Host City" on all commercials that are run by the Classic on Time Warner Cable's local channels. City will provide Classic with City 30-second spots for incorporation in Time Warner Cable broadcast. 4. Classic will work to increase/leverage television coverage with other advertisers in an effort to reach a regional market. 1. City name will be mentioned as "Host City" in all local and/or regional radio advertising run by the Classic. For Classic produced radio commercials, promotions, and advertisements, the City shall have the option to develop a City of La Quinta "tag phrase" that shall be incorporated into promotional material. 2. City name will be mentioned as "Host City" during any live remotes conducted by the Classic. For Classic produced radio commercials, promotions, and advertisements, the City shall have the option to develop a City of La Quinta "tag phrase" that shall be incorporated into promotional material. 3. If a radio live remote is scheduled to be held in the City prior to or during the 2012 Tournament, the City name will be mentioned as "Host City" during that live remote. Promotion will include popular local DJ as the emcee and special guests including, but not limited to, the Classic Girls. Radio promotion shall include interview with the Mayor or a City representative. For Classic produced radio commercials, promotions, and advertisements, the City shall have the option to develop a City of La Quinta "tag phrase" that shall be incorporated into promotional material. 1. City logo or City name will be written as "Host City" in all Classic - produced Tournament ads to be run in The Desert Sun newspaper. As an alternative to "Host City, the City may use a marketing phrase such as "SHOP, DINE, STAY in La Quinta" to the extent possible. The City will also provide a set of graphic guidelines for all City advertising/marketing handled by Classic; said guidelines will outline use of City logos, scripts, photography, text, and dimensions of graphic elements. 2. City logo or City name will be written as "Host City" in all regional or national publications that the Classic produces and advertises in. As 15 99999.96380\6009551.1 "j 255 rlurla7 an alternative to "Host City" the City may use a marketing phrase such as "SHOP, DINE, STAY in La Quinta" to the extent possible. The City will also provide a set of graphic guidelines for . all City advertising/marketing handled by Classic; said guidelines will outline use of City logos, scripts, photography, text, and dimensions of graphic elements. 3. City logo or City name will be written as "Host City" on all pairings sheets, one three (3) day and three (3) single day pairing sheets. The City will also provide a set of graphic guidelines for all City advertising/marketing handled by Classic; said guidelines will outline use of City logos, scripts, photography, text, and dimensions of graphic elements. 4. Tournament Commemorative Program: • City entitled to a 4-page editorial about the City of La Quinta in addition to a welcome letter signed by the Mayor to be displayed inside the front section of the program; City to provide camera ready art work. 5. City logo or City name will be written as "Host City" on a variety of signage prepared for the tournament. Details include: "street banners" located in and around Old Town/Village area, and other signs throughout the City of La Quinta. As an alternative to "Host City" the City may use a marketing phrase such as "SHOP, DINE, STAY in La Quinta" to the extent possible, and as mutually agreed upon by Classic and City to promote the City of La Quinta in the best light possible. The City will also provide a set of graphic guidelines for all City advertising/marketing handled by Classic; said guidelines will outline use of City logos, scripts, photography, text, and dimensions of graphic elements. 6. City logo or City name will be written as "Host City" on the official Tournament poster. As an alternative to "Host City" the City may use a marketing phrase such as "SHOP, DINE, STAY in La Quinta" to the extent possible, and as mutually agreed upon by Classic and City to promote the City of La Quinta in the best light possible. The City will also provide a set of graphic guidelines for all City advertising/marketing handled by Classic; said guidelines will outline use of City logos, scripts, photography, text, and dimensions of graphic elements, 1. City and Classic shall work cooperatively to promote "SHOP, DINE and STAY in La Quinta" in the Classic website. 2. All hotels within the City of La Quinta will be featured in the Lodging section of the Classic website. 16 99999.9638016009551.1 256 3. There will be an active link to get to the City's tourism website (www.PlayinLaQuinta.com) directly from the Classic website. 4., The City will have a prominent position on the Classic's website, from November 2011 through January 2012, which may include an active banner. The banner will . have a direct link to the City's tourism website. 5. Classic/hotel/golf packages will be developed in coordination with Classic, the Arnold Palmer Classic Course at SilverRock, and La Quints hotels; and posted on respective parties' website to promote stay and play in La Quints during and/or after the Tournament. Electronic 1. Classic and City will work cooperatively to utilize electronic marketing, including but not limited to email blasts to increase marketing of Tournament and City. 2. Use Classic email blasts to promote hotel packages and other Tournament, City, SilverRock, shop/dine/play/stay La Quinta marketing efforts. 3. Tap into Southern California Golf Association/FORE membership email via Classic connection to promote hotel packages and other Tournament, City, SilverRock, shop/dine/play/stay La Quinta marketing efforts. Events & Other Promos 1. The Classic will make best efforts to open a retail store and participate in a La Quinta Museum exhibition within the City of La Quinta for the 2012 event. 2. The City business community, including hotels will be given the opportunity to utilize and host a hospitality tent on the 18` fairway of the Host Course. The participating businesses will be responsible for the hard costs associated with the building and catering of the structure. The Classic will waive any and all sponsorship fees that are typically part of the hospitality structures. 3. The City will be given twelve Bob Hope Club Memberships. 4. The Classic will provide special guests (PGA Tour Players, Celebrity Guest) to attend a Mayor's luncheon or breakfast if the event is planned at a mutually agreeable time during the lead up to the event. Classic will consider providing the venue during a practice round of the 2012 Classic. La Quinta Chamber of Commerce shall sponsor. 5. The Classic will work with the City of La Quinta to expand upon the "City of La Quinta Day" during the Tournament. The number of tickets will be increased and associated with the special day for La 99999.96380\6009551.1 17 >rr:1. 257 Quinta residents. Additional concepts to make the day special to residents of La Quinta shall be pursued by City and Classic. 6. The Classic will host the Charity Check Distribution event within the City of La Quinta again at a mutually agreed upon location. 7. City, in coordination with Classic and City marketing partners, shall explore the possibility of hosting a small welcome reception for Golf Channel crew members. Benefits to Classic 1. Assist the Classic in Police and Fire Public Safety efforts. The City agrees to pay for all Police Services within La Quinta City Limits that have to do with the Tournament. In addition, the City agrees to pay for all Fire and EMT Services that take place within La Quinta that have to do with the Tournament, In an effort to promote the green recycling efforts and maintain solid waste diversion mandates of the city of La Quinta and to supplement funding for the Tournament the City also agrees to pay for the waste and recycling fees.. The total paid by the City for the services mentioned above shall not exceed $1 10,000. 2. In an effort to promote the City of La Quinta and its association with the Tournament, the City agrees to focus a percentage of its budgeted marketing dollars to be used in joint or co -promotions with Classic, . SilverRock Resort and La Quinta businesses. The ads will include at a minimum the Tournament Name, Dates, Website, and Phone number. This will not only help to bring people into the city, but will help solidify and build the reputation of the city as host to one of the longest running PGA Tour events. The City and Classic agree to meet and further develop a joint marketing plan. 3. The Tournament will have a prominent position on the City's "www.PlaylnQuinta.com" website, from November 2011 through January 2012. The Classic will receive an active Banner during this time frame. The banner will have a direct link to the Tournament Website. 4. In an effort to keep the streets running and moving in the safest and most efficient manner during the Tournament, the City of La Quinta agrees to supply four (4) traffic safety message boards provided the City does not have a traffic safety event elsewhere in the city during the Tournament. 5, The City will use the Public Works Department to install the Street Banners that promote the event and the City of La Quinta's affiliation with the Classic within the La Quinta Village. 18 99999.96380\6009551.1 ".� 250 Collaboration/Cross-Marketing among Classic City, and Humana 1., In acknowledgement of the strong synergies that exist between Humana's intentions to use the Tournament to promote wellness and healthy living and City's on -going efforts to promote itself as one of the healthiest cities in the nation (e.g, taking the lead on promoting healthy lifestyles via nutrition, recreation, and exercise, as well as working on infrastructure to facilitate healthy activities like walking, running, hiking, biking, and golf), Classic will work to encourage joint marketing initiatives during the month of the Tournament and throughout the year that will further develop Humana's communication objectives while promoting the City of La Quinta as an award -winning Healthy Eating Active Living (H.E.A.L.) City. 2. Classic shall encourage Humana to work with the City of La Quinta, City businesses and key City partners such as the La Quinta Chamber of Commerce and La Quinta Arts Foundation. 99999.98380\6009551.1 19 : I. 259 EXHIBIT "C" IN -KIND SERVICES In an effort to move traffic in the safest and most efficient manner possible during the classic, the City of La Quinta agrees to supply four (4) traffic safety message boards provided the City does not have a traffic safety event elsewhere in the City during the Classic. The City's Public Works Department will install the Street Banners that promote the event and the City of La Quinta's affiliation with the Classic within the La Quinta Village. 99999.9638M009551.1 20 M:F 260 ATTACHMENT 2 EXHIBIT "B" 2013 COOPERATIVE MARKETING PROGRAM Marketing Programs 1. Desert Classic Charities ("Classic"), operator of the Tournament, and City of La Quinta ("City") shall cooperatively work to develop a year round marketing program that will market the Humana Challenge Golf Tournament ("Tournament") as a premier event and the City as a year round golf resort. Efforts shall include utilization of both the Tournament's website (www.HumanaChallenge.com) and City's tourism website (www.PlayinLaQuinta.com), and to the extent feasible shall use paid search engines to drive traffic to each. Each website shall have direct links to the other. Both Classic and City shall use its best efforts to increase attendance and expand the reach of Tournament promotion. 2. Classic and City shall use social media such as Facebook and mobile applications ("apps"), to extent possible, to promote the Tournament and all of its related activities as well as promote the City as a premier tourist destination. 3. Classic and City will use their best efforts to engage the La Quinta business community in the promotion and marketing of the Tournament. Classic shall offer La Quinta businesses (to be eligible a business must possess an active La Quinta business license and either be located in La Quinta or be a member of the La Quinta Chamber of Commerce) a fifteen (15%) discount on hospitality, advertising, and exhibitor rates provided commitments are received at least ninety (90) days prior to the Tournament. The City shall provide a letter signed by the Mayor encouraging such participation in support of the Tournament from La Quinta businesses and residents. 4. Classic will provide up to 150 Clubhouse Badges and up to 500 daily tickets to general managers of La Quinta hotels for the sole purpose of encouraging and assisting the hotels to develop and promote customized packages for the Tournament. No value may be placed upon the badges and tickets other than their face value. Classic Media & Advertising Plan 1. Classic shall provide to the City a copy of its Media & Advertising Plan sixty (60) days preceding the Tournament. 2. The Classic Media & Advertising Plan ("Plan") shall outline, as determined by above -referenced timeline, media purchases, advertising mediums, run dates/frequency, size of advertisements, and length of °261 radio/TV commercials. Plan shall not include rates/costs for media purchases. 3. The Classic and the Tournament Committee will look into further expanding its marketing coverage in important Regional Drive-in Markets, inclusive of Los Angeles and Orange County. The City and Classic will further discuss working together to form a cooperative effort, to market the City, the Tournament, and the City's lodging to the driving distance market. 4. Tournament graphic design for ads, banners, posters, billboards, etc., which has been designed by Classic, shall be submitted to City for review and comment sixty (60) days preceding the Tournament. This requirement for submission does not include generic Host Course, i.e. Palmer Private at PGA WEST, signs/signage produced for the prior year's Tournament that will be used again. 5. All artwork, radio spots, commercials, emails, graphics and other marketing -related tangibles involving City or La Quinta hotels/ businesses designed by Classic shall be submitted to City for review and comment with at least a two -working day turnaround time. This requirement for submission does not include generic Host Course, i.e. Palmer Private at PGA WEST, signs/signage produced for the prior year's Tournament that will be used again. Benefits to City of La Quinta Television Radio The City will provide a set of graphic guidelines for all City advertising/marketing handled by Classic (e.g., print, radio, television, online); said guidelines will outline use of City logos, scripts, photography, text, and dimensions of graphic elements. 1. The Classic will exercise its best efforts to encourage "The Golf Channel" to include the City of La Quinta in its commercials, promotions, on -air mentions, and advertisements in connection with its broadcast of the Tournament. 2. City logo or City name will be graphically shown as "Host City" in video commercials on all targeted local and/or regional stations, including Time Warner Cable, that might be run. 3. Classic will work to increase/leverage television coverage with other advertisers in an effort to reach a regional market. 1. City name will be mentioned as "Host City" in all local and/or regional radio advertising run by the Classic. 2 262 Print Web 2. City name will be mentioned as "Host City" during any live remotes conducted by the Classic. 3. If a radio live remote is scheduled to be held in the City prior to or during the Tournament, the City name will be mentioned as "Host City" during that live remote. The Mayor or a City representative shall be offered an opportunity to be interviewed on any such live remote in La Quinta. 1. City logo or City name will be written as "Host City" in all Classic produced Tournament ads to be run in The Desert Sun newspaper and any other local newspapers or magazines. 2. City logo or City name will be written as "Host City" in all regional or national publications that the Classic produces and advertises in. 3. City logo or City name will be written as "Host City" on all pairings sheets, one three (3) day and three (3) single day pairing sheets. 4. Humana Challenge Commemorative Program: • City entitled to a 4-page editorial about the City of La Quinta in addition to a welcome letter signed by the Mayor to be displayed inside the front section of the program; City to provide camera ready -art work. 5. City logo or City name will be written as "Host City" on a variety of signage prepared for the Tournament. Details include: "street banners" located in and around Old Town/Village area, and other signs throughout the City of La Quinta. 6. City logo or City name will be written as "Host City" on the official Tournament poster. 1. City and Classic shall work cooperatively to promote La Quinta as a premier destination on the Humana Challenge website. 2. All hotels within the City of La Quinta will be featured in the Lodging section of the Humana Challenge website. La Quinta hotels will be listed first with a complimentary 50-word description. They will be encouraged to use their complimentary listing to sell special customized packages for the Tournament. 3. There will be an active link to get to the City's tourism website (www.PlayinLaQuinta.com) directly from the Humana Challenge website. 4. The City will have a prominent position on the Humana Challenge website, the two months preceding the Tournament and during the month of the Tournament, which may include an active banner. The banner will have a direct link to the City's tourism website. 3 263 Electronic 1. Classic and City will work cooperatively to utilize electronic marketing, including but not limited to email blasts to increase marketing of Tournament and City. 2. Use Humana Challenge email blasts to promote the Tournament, related events, and the City. 3. Tap into Southern California Golf Association/FORE membership email via Classic connection to promote the Tournament, related events, and the City. Events & Other Promos 1. The Classic will make best efforts to open a retail store in La Quinta, if feasible and lease space is available. 2. The City will be provided with ten (10) Bob Hope Club Memberships. 3. The Classic will provide special guests (e.g., PGA TOUR Players, Celebrity Guest) to attend a Mayor's luncheon or breakfast if the event is planned at a mutually agreeable time leading up to the event. Classic will consider providing the venue during a practice round of the Tournament. La Quinta Chamber of Commerce shall sponsor. 4. The Classic will work with the City of La Quinta to expand upon the "City of La Quinta Day" during the Tournament. The number of tickets will be increased and associated with the special day for La Quinta residents. Additional concepts to make the day special to. residents of La Quinta shall be pursued by City and Classic. 5. The Classic will host the Charity Check Distribution event within the City of La Quinta. 6. City, in coordination with Classic and City marketing partners, shall explore the possibility of hosting a small welcome reception for Golf Channel crew members. Benefits to Classic 1. Assist the Classic in Police and Fire Public Safety efforts. The City agrees to pay for all Police Services within La Quinta City Limits that have to do with the Tournament. In addition, the City agrees to pay for all Fire and EMT Services that take place within La Quinta that have to do with the Tournament. In an effort to promote the green recycling efforts and maintain solid waste diversion mandates of the City of La Quinta and to supplement funding for the Tournament the City also agrees to pay for the waste and recycling fees. The total paid for 2013 by the City for the services mentioned above shall not exceed $1 10,000. 4 p 264 2. In an effort to promote the City of La Quinta and its association with the Tournament, the City agrees to support the Tournament via its local advertising campaign, including print and radio. Ads and radio spots will incorporate the Tournament name (i.e., Humana Challenge), its dates, related events, and website. This will not only help to bring people into the City, but will help solidify and build the reputation of the City as "Host City" to one of the longest running PGA TOUR events. The City and Classic agree to meet and further develop a joint marketing plan. 3. The Tournament will have a prominent position on the City's "www.PlaylnQuinta.com" website for the two months preceding the Tournament and during the month of the Tournament. The Tournament will receive an active banner during this time frame. The banner will have a direct link to the Humana Challenge Website. 4. In an effort to keep the streets running and moving in the safest and most efficient manner during the Tournament, the City of La Quinta agrees to supply four (4) traffic safety message boards provided the City does not have a traffic safety event elsewhere in the City during the Tournament. 5. The City will use the Public Works Department to install the street banners that promote the event and the City of La Quinta's affiliation with Humana and the Humana Challenge within the La Quinta Village. Collaboration/Cross-Marketing among Classic, City, and Humana 1. In acknowledgement of the strong synergies that exist between the intentions of Humana, Tournament Sponsor, to use the Tournament to promote wellness and healthy living and City's on -going efforts to promote itself as one of the healthiest cities in the nation (e.g. taking the lead on promoting healthy lifestyles via nutrition, recreation, and exercise, as well as working on infrastructure to facilitate healthy activities like walking, running, hiking, biking, and golf), Classic will work to encourage joint marketing initiatives during the month of the Tournament and throughout the year that will further develop Humana's communication objectives while promoting the City of La Quinta as an award -winning Healthy Eating Active Living (HEAL) City. 2. Classic shall encourage Humana to work with the City of La Quinta, City businesses and key City partners such as the La Quinta Chamber of Commerce. 265 5 ATTACHMENT 3 CLl NTON FOUNDAI"TON BOARD OF DIRECTORS June 5, 2012 03 If.EHS JOHN M. FOSTER La Quinta City Council PRESIDENT City of La. Quinta 78-495 Calle Tampico ERNIE DUNLEVIE La Quinta, CA 92253 VICE PRESIDENT JOHN M. LANE Honorable Mayor and Members of City Council:, TREASURER Words fail me (and that doesn't happen often) as I try to articulate the astonishing SECRET. ERWIN recovery our beloved Bob Hope Classic experienced as the newly transformed SECRETARY Humana Challenge in Partnership with the Clinton Foundation. I hope you will take the time to thoroughly review the attached report that details how we were able to ERNIE DUNLEVIE' make this tournament — and the week surrounding it — the 2012 Sports Event of the Year, as voted by SportsBusiness Journal. DAVID J. ERWIN' JOHN EVENSON For this La Quinta-based event to beat out the Super Bowl, NBA Finals and two other JOHN M. FOSTER* national sporting events is nothing short of miraculous and should be a tremendous THOMASJ.GORDON' source of pride for the City of La Quinta. It certainly is for us. Significant credit goes GREG J. HELM* - to City staff that helped expand this event into a week-long celebration of all things healthy. STEVE HUBBARD JOHN M. LANE" We cannot thankyou enough foryour continued support of our ultimate commitment VICTOR LoBUE, Jr. to local charities. With the support of Humana we were able to break all records and ROGER LOW contribute more than $2,100,000 to Coachella Valley charities. ROBERT MARRA importantly for La Quinta, the Humana Challenge experienced a huge increase in press KEVIN MCGUIRE coverage that generated more than 120,000,000 exposures. JOHN (JACK) METTLER• JAMES R, REED From all of us at Desert Classic Charities, thank you. CLARKE RHENEY` Sincerely, EUGENE WEISBERG DICK R. ZEIGLER Greg J. Helm Director, Member Executive Committee Chairman, Marketing Committee LARRY D,THIEL cc: Frank J. Spevacek, City Manager Bob Hope Classic Building, 39000 Bob Hope Drive • PO Box 865, Rancho Mirage, California 92270 IgYI C,,,J?,Yy_— FWt 760.346.8184 • 888.672.4673 • Fax: 760.346.6329 - info(a HumanaChallenae.com lhddt SW(� L� 266 A Report From Desert Classic Charities To The City Of La Quinta Regarding the Humana Challenge In Partnership With The Clinton Foundation May 10,2012 Snorts Business Journal's "2012 Snorts Event of the Year". On May 23, 2012, the Humana Challenge In Partnership with the Clinton Foundation received the highest honor awarded by the sports' business industry's most prestigious publications, Snorts Business Journal and Sports business Daily. Included among the other four finalists for 2012 Sports Event of the Year were the Super Bowl and the NBA Finals. "A week of health and well-being ... with a side of golf." In La Quinta, CA last January 2012, this simple phrase became the resounding theme of the Humana Challenge PGA TOUR golf tournament. The mantra signified a revolutionary pathway forward for the 53-year old — totally reinvented — event. It was just last April (2011) when Humana and the William J. Clinton Foundation agreed to sponsor the event. In the eight months leading up to the January, 2012 Humana Challenge, DCC worked closely with its new partners to not only reinvent but also expand the venerable event. The Challenge: DCC sought to revolutionize the event, honor the legacy of founder Bob Hope and challenge the concept of what a professional golf tournament could be. The 2012 Humana Challenge, in partnership with the William J. Clinton Foundation, had several strategic pillars that contributed to its success. These elements combined to create an event in La Quinta, CA that bred new thinking about major sporting events. The Associated Press called it "A smash hit." These elements included: 1. Dramatically Changing a Legendary Event 2. Creating a National Platform for Health and Well -Being 3. Activating Beyond a Four -Day Golf Tournament (Thank you City of La Quintal) 4. President Clinton 1. Dramatically Changing a Legendary Event For much of its 52-year history the Bob Hope Classic was known as a very successful PGA TOUR event. But that was then! DCC couldn't afford to be blinded by its history of success as the tournament's popularity among PGA TOUR pros, A -list celebrities, amateur contestants and the viewing public had significantly diminished in recent years. Desert Classic Charities 2 Je 267 DCC objectively faced the event's weaknesses and enthusiastically made bold and significant changes that proved to reinvigorate the tournament and make it a fan and player -favorite once again. Under the direction of professional golf tournament director Larry Thiel, the new Humana Challenge was dramatically revamped, with changes including: • Reducing the number of tournament days from five to four • Increasing the number of pros in the field from 128 to 144 • Reducing the number of courses utilized from four to three • Reducing the number of amateurs each pro played with from three per day to one (a significant change as it eliminated 240 amateur playing spots which reduced tournament revenues more than $2 million) DCC and its partners even made the controversial change of removing Bob Hope's name from the event. However, by working closely with Bob Hope's daughter, Linda, and introducing tactics to honor his legacy, even this change proved very successful. 2. Creating a National Platform for Health and Well -Being Early on, DCC and its partners, Humana, the William J. Clinton Foundation and the PGA TOUR, vowed to take a new approach to traditional event sponsorship, one that Inspired actionable, far-reaching change. They wanted to ensure there was a broad and meaningful dialogue about an issue of primary importance to Americans —their health and wellness. Using the Humana Challenge as a platform, the partners worked together to create a call -to -action and an opportunity to help people achieve lifelong health and well-being. A mission and theme already in practice in La Quintal This required changing the perception of what a golf tournament could be. Instead of focusing solely on the player field or ticket sales, the Humana Challenge became more about, "well-being ... with a side of golf." in the end, Humana and the Clinton Foundation did not merely add their names to a golf tournament. Instead, they transformed its very nature, revolutionizing the corporate sponsorship model. The Humana Challenge involved players, spectators and media in a comprehensive strategy to get people thinking more about their own well-being. This meant offering the players with healthy, locally sourced foods, Health -focused signs also dotted the course, reminding spectators that following the golfers had wellness benefits too. "Walklt" stations were set up around the course where nearly 12,000 free pedometers were distributed so players and spectators could track their steps. Through their participation, walkers not only contributed to their own health, but also raised $500,000 for local Coachella Valley charities through an incremental donation provided by Humana. The total number of steps recorded throughout the tournament week was nearly 84,000,0001 Desert Classic Charities 3 268 3. Activating Beyond a Four -Day Golf Tournament —Thank You, La Quintal In addition to ensuring there were noticeable changes during the tournament, the partnership team recognized an opportunity to transform the tournament into a nine - day event that inspired people to improve their health and well-being. This resulted in the creation of nine (9) entirely new events. The City of La Quinta eagerly jumped in to offer their local knowledge and expertise to broaden the week's offering. The week kicked off the preceding Saturday with a Humana/City of La Quinta well-being walk followed by a Humana/City of La Quinta healthy fun fair. Working closely with the City, Humana and City staff organized a five mile community trek that ended at a healthy fun fair featuring over 30 health -related vendors, live music, and a kids' station with an inflatable obstacle course, bungee run and rock climbing wall. On Sunday, Humana sponsored La Qu!nta's farmers' market that Included 28local growers offering fresh fruits and produce, music, and healthy cooking demonstrations that involved the Chef de Cuisine of Twenty6 restaurant and students from the La Quinta High School Culinary Arts Program. The goal of these three events was to get the community further activated around the idea of health and to lay the groundwork for the Humana Challenges' key message. More than 3,000 local residents participated. City staff organized all details and logistics of these three eventsl In addition, Humana and KaBOOM! (a national non-profit organization) joined forces to build a multi -generational playground in Thermal, California. The unique space features fitness stations and walking paths to promote good posture, balance and flexibility for adults and seniors, plus more traditional, kid -friendly equipment. Additional new pre -tournament events included a pedometer -based competition organized for employees of the Eisenhower Medical Center (the primary beneficiary of the tournament's charitable contributions), two new Pro -Am tournaments (on Monday and Wednesday) and a week-long local TV pedometer competition. The cornerstone of the additional activities was the inaugural Clinton Foundation Conference ("Health Matters") on Tuesday of tournament week. 4. The Impact of President Clinton By working with President Clinton and his foundation, the effort to inspire better health and well-being was amplified to a national audience in a manner that is entirely new to the PGA TOUR -- and other sporting events. President Clinton's Involvement in the event was more than just in name, as he personally assisted In the invitation process to golfers, celebrities and new sponsors. However, among his most impactful involvements was development of the inaugural "Health Matters: Activating Wellness in Every Generation" conference held on the Tuesday before the Humana Challenge. Desert Classic Charities 4 "' 269 The Health Matters Conference brought together more than 400 stakeholders from the worlds of health care, public policy, business, education, individual wellness and sports to identify strategies to promote and improve individual healthy lifestyles in the home, the community and the workplace. Speakers and panel discussion participants included such sports luminaries as Billie Jean King, Annika Sorenstam, Bob Lanier and Lillian Michaels. The conference helped add visibility to the entire tournament week through the following metrics: • 400 attendees r 17,000 webcast views (18 minutes per viewer) • 1.38 million unique impressions (social media channels) President Clinton's impact on the success of the event cannot be overstated. Not only did President Clinton host the conference but he also spent the entire week in La Quinta at the Humana Challenge personally engaging fans, pros, celebrities, amateur contestants and the media. Summary. Palm Springs has its Film Festival, Indio has its music festivals, and Indian Wells has tennis. All are world-renowned events. La Quanta should be very proud it now has the Humana Challenge in Partnership with the Clinton Foundation — a certified world- renowned event and the 2012 Sports Event of the Year. Desert Classic Charities 5 ".U. 270 2012 Humana Challenge Summary of Results 2012 versus 2011 Strength of Field (PGA TOUR Players) 11% improvement 6th strongest non -major field compared to all 2011 PGA TOUR events Tournament Attendance 68% improvement (81,400) Revenues 18%Increase Corporate Support (number of) 23% Increase TV Viewing 55+: 11% improvement HHs: 9% improvement Humana "Walkit" Challenge Participation 12,000 pedometers distributed; 84,000,000 steps taken $500,000 charitable dollars "earned" Community (La Quinta) Activities Participation (Walk, Fair, Farmers' Market) More than 5,000 community participants 58 health -oriented vendors News Media (Public Relations) Metrics 19% increase in news media outlets covering the week 13% increase in news media personnel 120,000,000 total impressions (eyeballs) — bylined, "La Quinta, CA" Clinton Foundation Conference 400 attendees 17,000 webcast views (18 minutes per viewer) Social media impressions: 1.38 million unique impressions Sports Business Journal "Sports Event of the Year" Capping the tremendous improvements in virtually all measurements was the naming of the Humana Challenge by Sports Business Journal as "Sports Event of the Year" (March 1, 2011 through February 29, 2012). The other nominees were the 2012 Super Bowl, the 2011 NBA Finals, IFC 129, and the Carrier Classic (NCAA Basketball Game on Veteran's Day aboard the USS Carl Vincent aircraft carrier in San Diego Harbor). Desert Classic Charities A it 271 T4hf 4 4 a" CID/ SA / HA / FA MEETING DATE: July 3, 2012 ITEM TITLE: Consideration of a Professional Services Agreement with Willdan Financial for Citywide Park, Open Space and Trail Assessment District Formation RECOMMENDATION: As deemed appropriate by City Council. FISCAL IMPLICATIONS: AGENDA CATEGORY: BUSINESS SESSION: �L CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: None for this action. Attachment 1 is a proposal from Willdan Financial to complete a Citywide Park, Open Space and Trail Assessment District Formation in the amount of $142,750. The cost proposal does not include consultant and sub -consultant's travel expenses, which would be billed at cost. While negotiations have not been completed with this consultant, staff anticipates the total cost to complete these services will not exceed $150,000. The Fiscal Year 2012/2013 budget includes $150,000 in account 101-3006-451.32- 07 for consultant services to complete the Citywide Park, Open Space and Trail Assessment District Formation. CHARTER CITY IMPLICATIONS: None at this time. BACKGROUND AND OVERVIEW: In 2008 City approved a Professional Services Agreement (PSA) with Willdan Financial Services to prepare a feasibility analysis of forming a citywide park improvement and maintenance district. In 2009 the City Council reviewed a Technical Memorandum (Attachment 2) that recommended that a citywide district could be formed and a n.j 272 portion of park and trail improvement and maintenance cost could be funded. No further action was taken until February 2012. At that time the City Council directed staff to bring back a proposal to form a citywide park, open space and trail assessment district. Because Willdan Financial prepared the initial analysis and is intimately familiar with the City's needs, staff recommends that the City Council select Willdan Financial to conduct the next phase of forming this district. Below is a summary of Willdan Financial's proposed schedule for completing this work: Approve PSA with Willdan Financial Project kick-off meeting with staff. Project work — update property owner info/develop budget/develop assessments/ prepare engineer's report/ prepare resolutions Community Survey Implement Public Information Plan Develop ballot language/prepare notices/print & mail notices& ballots Public Hearing & Ballot Tabulation July 17, 2012 September 2012 October — December 2012 November 2012 November 2012 through February 2013 February — March 2013 April 2013 Section 3.32.050 Exceptions to the Procedures Prescribed in Sections 3.32.010 and 3.32.030 paragraph "C" states that "the City Council may authorize award and execution of service contracts with no competitive proposals where experience with the proposed service provider has demonstrated competence and satisfactory performance or in the renewal or renegotiation of existing contracts for continuing services." Staff believes that Willdan Financials price to be competitive and that their demonstrated knowledge of the City's parks operations and budgets not likely to be matched by a local firm or out of the area consultant. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Direct staff to prepare a Professional Services Agreement (PSA) with Willdan Financial Services to initiate citywide park, open space and trail assessment district formation; or 2. Direct staff to prepare a Request for Proposals (RFP) to select a consultant to initiate citywide park, open space and trail assessment district formation; or �.:. 273 3. Provide staff with alternative direction. Respectfully submitted, 4imothy R on s on, P.E. Public Works Di ctor/City Engineer Approved for submission by: Attachments: 1. Willdan Financial Cost Proposal 2. Willdan Financial Technical Memorandum "' 274 l 401 I WILLDAN I Yn"09 Financial Services reach June 18,2012 Mr. Timothy Jonasson Public Works Director/City Engineer City of La Quinta 78-495 Calle Tampico La Quinta, California 92253 Re: Proposal to Form a Citywide Assessment District to Fund the City of La Quinta's Parks, Open Space and Trails Dear Mr. Jonasson Per the City's request, the following outlines Willdan Financial Services' (Willdan) scope of services, project schedule and fee to form a Citywide Assessment District to fund ongoing maintenance of parks, open space and trails in accordance with the Landscaping and Lighting Act of 1972 and the provisions of the California Constitution Article XIIID (Proposition 218). We appreciate this opportunity to continue to serve the City of La Quinta and look forward to hearing from you. Please feel free to contact Mr. Jim McGuire, senior project manager, directly at (951) 587-3536 or via email at imcouire(a).willdan.com if you have any questions regarding our proposal. Sincerely, WILLDAN FINANCIAL SERVICES Mark Risco President and CEO Enclosure Engineering and Planning I Energy Efficiency and Sustainability I Financial and Economic Consulting 1 National Preparedness and Interoperability 951.587.3500 1800.755.6864 1 fax: 951.587.3510 1 27368 Via Industria, Suite 110, Temecula, California 92590-4856 1 w .willdan.com 275 WW I LLDAN IN Financial Services Table of Contents TABLEOF CONTENTS.........................................................................I SCOPE OF SERVICES.........................................................................1 ProjectOverview..........................................................................................................1 Work 1 PROJECT SCHEDULE.......................................................................11 FEE FOR SERVICES..........................................................................12 WilldanHourly Rates.................................................................................................13 PROJECTTEAM.................................................................................14 i Proposal to Form a Citywide Assessment District for Parks, Trails and Open Space u., � 276 lWAVWILLDAN Financial Services Scope of Services Project Overview In May of 2009, Willdan completed an analysis of the City of La Quinta's park, open space and trail improvements to evaluate the feasibility of establishing a possible Citywide Assessment District to provide funding to support the maintenance and enhancement of the City's recreational improvements for properties within the City. Willdan worked closely with City staff gathering relevant information related to these improvements and developing the parameters for establishment of the possible district to fund costs associated with the ongoing operation and maintenance of parks, trails and open spaces, as well as the long term repairs, renovations and rehabilitation of those improvements and facilities. As part of that project, Willdan identified a possible district structure consisting of three zones of benefit, as well as possible assessment scenarios. In conjunction with the feasibility study of a Citywide Assessment District, the possibility of establishing a special tax to fund these improvements, and possibly the median landscaping as well, was discussed as an alternative funding approach. Recognizing that public education and outreach efforts are crucial to the success of a citywide assessment district balloting, Willdan has enlisted the services of The Lew Edwards Group (LEG) to assist the City of La Quinta with the public relations effort for this project, which will greatly enhance the chances of a successful outcome. LEG is recognized as one of the premier public relations consulting firms with a proven track record of success for revenue enhancement measures of all types; including property owner balloted assessment districts and revenue ballot measures (special taxes) that require a two-thirds voter approval. LEG will take the lead to communicate the issues and to educate property owners with the facts before they are asked to cast their ballot regarding the assessment. Work Plan Below is Willdan and LEG's proposed scope of services to assist the City of La Quinta with development and implementation of a Citywide Assessment District to fund the maintenance and operation of parks, trails, and open space areas determined to be of special benefit to properties within the City. We want to ensure that our scope of services is responsive to the City of La Quinta's needs and specific circumstances. Willdan and LEG will work with the City to revise our proposed scope based on input prior to approval of a contract, and as needed during the course of the project. A. Coordination of the Assessment District Formation Process • To address the City's needs, we propose to initiate the project by conducting an .all hands" kick-off meeting with City staff and representatives of the consultant team to discuss in detail the overall approach to the project; communication strategies; each team member's responsibilities; and the key dates and milestones for the project. This meeting should include all staff that will be directly involved in the various tasks associated with this project. t Proposal to Form a Citywide Assessment District for Parks, Trails and Open Space 277 *WILLDAN / Financial Services • After the kick-off meeting Willdan will prepare and distribute a comprehensive timeline for the assessment district formation process. The timeline will identify all key milestones that need to be met for the project including both outreach efforts and the technical tasks aspects of the formation process. • Although LEG will obviously take the lead on the public relations efforts and will be in regular contact with the City, Willdan will be responsible for monitoring and keeping the project on task to meet the agreed -upon project timeline milestones. • Willdan will provide the City and LEG with the necessary data related to the proposed assessments. • Willdan and LEG will provide our expertise and review of documentation required for implementing the assessments, including the report, resolutions, and the required notice and ballots. The consultant team will also assist in the preparation and review of staff reports and other Council documents that may be required throughout the process. B. Assessment Development Task B.1: Prepare Updated Property and Ownership Information Using the base electronic parcel information, assessment data and zone structure developed for the feasibility study, Willdan will update the parcel database with the County Assessor's Office secured roll data currently available (July 2012) to identify any parcel discrepancies and will incorporate updated property changes, as well as ownership and mailing information. This information will be enhanced through parcel research and specific information provided by the City. This data will then be incorporated into our model to update and fully develop the appropriate method of apportionment and assessments for each parcel. When finalized, this parcel specific data will be used to generate the assessment roll for the Engineer's Report, mailing data for LEG's public outreach efforts, and ultimately the notice and ballots for the proposed assessment to be mailed to each affected property owner. If requested, we will provide the City with a copy of this database. Task B.2: Fully Develop the Improvement Matrix and Zone Structure Willdan will work with the City to update and fully develop the list of improvements and facilities that will be incorporated into the assessment district (partially developed as part of the original feasibility study) and based on those improvements (both existing and proposed) review and update as necessary the previously developed district zone structure. While we do not anticipate significant changes to the improvements and zones identified in the original feasibility study, in order to ensure the proposed district and assessments are consistent with the special and general benefit requirements of the Constitution and current case law, a detailed review and evaluation of the improvements, services and zone structure is essential. Task B.3: Develop the District Budget Utilizing the improvement budgets previously developed during the feasibility study, and the findings of previous tasks, Willdan will work with the City staff to identify and incorporate an accurate full cost recovery estimate for the improvements (including energy and maintenance costs; foreseeable capital projects; and long-term replacement and rehabilitation costs). Recognizing that there is inherently some 2 Proposal to Form a Citywide Assessment District for Parks, Trails and Open Space `_f. 278 WILLDAN It Financial Services general benefit associated with park and recreational improvements, we will work with the City to clearly identify and separate those improvements and/or costs that are considered general benefit and those costs that may be assessed as special benefits. Also recognizing that the level of property owner support for an assessment may be less than the amount identified as special benefit, we will work with City staff and LEG to identify the key budget elements that foster the greatest support, thereby creating a more targeted assessment and ultimately the amount of revenue to be generated. Task BA: Develop the Assessments Based on the findings and discussions of the previous tasks, Willdan will develop and eventually finalize the proposed district structure (zones of benefit), the cost allocation of the budgeted improvements within those zones, the method of apportionment to be applied based on proportional special benefits, and ultimately the proposed assessments. As part of this process however, due to the timing and need for public input (the survey) we anticipate formulating two assessment scenarios (assessment models): an initial model and estimated assessments largely based on the original feasibility study and updated parcel data of Task 1, that may be used to gauge property owner support at an estimated assessment amount; and, ultimately a final assessment scenario that incorporates the fully developed district structure, budget and method of apportionment. As a working tool for the City and LEG once the initial assessment model has been completed, Willdan will prepare and distribute a Summary Memorandum of the proposed assessments. This document will outline and summarize the proposed assessment rates and assessment revenues by land use classification and zone based on an estimate for the full cost recovery budget (budget developed as part of the feasibility study). This memorandum will serve as a tool in formulating the initial public outreach efforts and survey to gauge the level of support for the proposed assessment. Ultimately, the district structure, budget, method of apportionment, and assessments that are finalized with City staff and LEG, will be incorporated into the Engineer's Report. C. Assessment Documentation Task CA: Prepare Engineer's Report In accordance with the Landscaping and Lighting Act of 1972 and Article XIIID of the California Constitution (Proposition 218), Willdan will prepare the Engineer's Report for the proposed assessments and modifications (if applicable) that will be presented to the City Council, including the following items: • Plans and specifications that describe the ongoing maintenance and operation of the park, open space and trail improvements to be maintained. • Method of apportionment that outlines the special benefit conferred on properties within the proposed district from the maintenance and the calculations used to establish each parcel's proportional special benefit assessment, as well as a description of the assessment range formula, if applicable, that establishes the maximum assessment rate in subsequent fiscal years. • The budget that outlines the costs and expenses to provide maintenance, including incidental expenses authorized by the 1972 Act. • Assessment diagram that identifies the boundaries of the proposed Citywide District. RA Proposal to Form a Citywide Assessment District for Parks, Trails and Open Space 219 WILLDAN )_I / Financial Services • The assessment roll which contains each of the Assessor Parcel Numbers and their proportional maximum assessment. • An affidavit stating the report has been prepared by a professional engineer. Prior to the scheduled Intent Meeting, Willdan will provide the City with an electronic copy of the Engineer's Report for City staff review and comment. When finalized with City staff, a final electronic version as well as two hardcopies of the report will be provided to the City that the City Clerk may incorporate into the City Council's agenda package. The proposed assessment roll that is typically incorporated into each Engineer's Report may be provided to the City as a separate document or electronic file. Task C.2: Prepare Resolutions For the formation of a Citywide Assessment District, Willdan anticipates drafting the following resolutions for City review and implementation: Intent Meeting Resolutions: o Resolution Initiating Proceeding, which calls for the Engineer's Report to be prepared; and o Resolution of Intention, which confirms the proposed assessments outlined in the Engineer's Report; sets the Public Hearing date; and calls for a mailed ballot proceeding. • Public Hearing Resolutions: o Resolution declaring the results of the balloting; o Resolution approving the Engineer's Report based on the results of the ballot tabulation; and o Resolution confirming the assessment diagram and assessments as approved, and orders the levy and collection of assessments for the upcoming fiscal year. Willdan will provide draft resolutions to the City prior to the City Council agenda deadline, for City review and comment. All draft resolutions should be reviewed by the City Attorney for form and content prior to finalizing these documents for City Council action. Task C.3: Meetings and Support The following are support services Willdan will provide to the City with respect to the assessment process: Attend the City Council Intent Meeting and be available to answer questions regarding the Engineer's Report and the balloting process. • At the City's request, Willdan will review and comment on the staff reports prepared by the City in connection with the proposed assessment proceedings (Intent Meeting and Public Hearing staff reports). 4 Proposal to Form a Citywide Assessment District for Parks, Trails and Open Space 280 WWILLDAN 1 / financial Services • After the initial presentation to the City Council (Intent Meeting), if necessary, update the Engineer's Report to reflect changes ordered by the City Council prior to the Public Hearing. D. Public Education/Outreach Services The following Public Education/Outreach Services have proven to be critical to the success of Willdan and LEG's other municipal and public agency clients that were planning for potential revenue enhancement measures. Willdan and LEG will work closely with the City to project -manage each of the City's planning efforts towards a successful revenue enhancement measure from start to finish. The following assumes that the City is considering an April benefit assessment mail ballot; although the final timeline will be established during the "all -hands" kick-off meeting (Work Plan, Task A). A survey will help to determine the best election timing and funding mechanism. Task DA: Assess Viability through a Community Survey A custom -designed community survey tailored to meet the City's specific needs will be necessary to analyze willingness to support a potential 2013 local revenue enhancement measure. Willdan and LEG will facilitate this process to ensure an excellent survey document is created that will provide the City a clear sense of, among other issues: • Community attitudes regarding a variety of service needs and how they rank compared to parks and open space needs; • Community attitudes and viewpoints on potential local revenue solutions across a variety of representative demographic categories, election timing, what type of mechanism and the type of solution desired, if any, by constituents; and • Whether the community is aware of the City's fiscal challenges and their current views on unemployment, the national economy, and the State budget crisis. The specific facts constituents are most interested in and the best ways for the City to effectively present this information. Creating a community survey that evaluates a variety of constituent issues, and thoroughly analyzing the results will allow Willdan and LEG to fully advise the City on its key options. Upon conclusion of the survey project, Willdan and LEG will independently analyze the results for feasibility and provide the City with a Strategic Memorandum that discusses viability, risks, opportunities, effective messages, and recommendations on public information activities. 5 Proposal to Form a Citywide Assessment District for Parks, Trails and Open Space 281 *WILLDAN �1 / Financial Sewices Task D.2: Implement Public Information Plan As referenced above, LEG will evaluate survey results and advise the City and Willdan on whether continued revenue project planning is feasible. In order to ensure that the City is well positioned for a potential Spring Mail Ballot consistent with the broader community concerns, Willdan and LEG will provide overall direction and project management for the City's communications efforts. In today's tough economy, citizens are extremely concerned about how their quality of life will be maintained in the face of the State's ongoing fiscal problems. Further, there is significant voter concern and distraction about unemployment, jobs and the economy. It will be critical to assess how the City's constituents rank park and open space needs when considering these issues. In designing the Public Information Program, messaging will be 'laser -focused" on the priorities and concerns as identified by your community in the survey. Following LEG's assessment of measure viability in the survey, Willdan and LEG will develop initial Public Information Recommendations. LEG will: • Assist the City in developing key informational messages, with a focus on articulating parks/open space benefits for local residents. As part of LEG's message, LEG will have to straightforwardly define what's at stake for residents. LEG's ability to make the message relevant to the average person, is key. • Develop and refine messages for inclusion in existing City communication vehicles to deliver and saturate the message, including the City newsletter, guest columns, copy for links on the City Web site, and focused PowerPoint presentations for the informational Speakers' Bureau, Stakeholder, key influential and community presentations. Willdan and LEG will provide first drafts of the material for review and approval by the City. Embedding consistent messages within each communication vehicle, including those that reach internal audiences such as employees will be important. • Recommend strategic methods to engage existing networks and organizations throughout the City to focus the message, and solicit and respond to questions from the public. User-friendly messaging and consistency of message is key — and LEG will assist in providing the leadership and implementation structure for effective deployment, including training the appropriate City messengers on the message and creating a deployment plan that is achievable. Communication Goals • Develop informational messages that effectively inform, solicit and respond to questions from the public. • Provide structure and copy for communications materials to educate residents about the park, trails and open space needs, and the services at stake. • Implement an earned (non -paid) media press and Internet program to highlight the services or projects at stake, budget realities and challenges. • Implement a direct mail program to the public -at -large to highlight budget realities, needs, service demands, and other relevant facts while engaging the public and soliciting input as time permits. Proposal to Form a Citywide Assessment District for Parks, Trails and Open Space " 282 W I LLDAN I� Financial Services Development of Key Messages The Public Information Program is a critical method of educating the public and raising awareness of the needs. The type of messaging information that is helpful to the City's effort typically includes: • Defining message of what's at stake for residents, and the fiscal challenges facing the City; • Information about the City's sound fiscal management; • Information about how new revenue benefiting parks, trails and open space will directly affect the quality of life and property values; and • How community perspectives are reflected in the City's proposal. "Message discipline" and a clear, concise focus are critical to the Public Information Program. LEG will draft and/or refine talking points for City staff and Council use. Any information provided to the public is factual, not advocacy, and approved by the City Attorney. Direct Mail Component LEG also recommends that a legally -permissible City direct mail program be implemented to the appropriate audience (property owners) to provide information on needs related to parks, trails and open space. Doing so will raise awareness beyond "insiders" or already -active stakeholders and key influential individuals, to the silent majority. The number and timing of mailers will depend on the City's budgetary parameters and the difficulty of the task as revealed by the community survey. In consultation with City staff, as previously noted, LEG will also draft and/or refine informational articles for the City newsletter, handouts, press releases and Web site, with appropriate supporting materials (charts, graphs, visual aids, etc.) to communicate key messages and inform residents. In addition, LEG will draft, review and/or refine supporting fact sheets, flyers and other communications. Other communications vehicles include community television and a Speakers' Bureau program; furthermore many of LEG's public agencies include YouTube and Twitter as part of their communications program. LEG would assist in drafting Tweets and scripts as needed. Community Meeting Outreach Plan: LEG has designed Speakers Bureau trainings, "town halls," and community meetings for participants as small as 25-50 and as large as several hundred. Following analysis of the poll, LEG will design a community outreach plan strategically directed to key organizations within the City. Designating the appropriate speakers will be an early decision point. As part of LEG's scope, the firm typically develops a tailored "Speakers Bureau Toolkit" for assigned City speaker/messengers including helpful hints, speaker objectives, "sticky" (difficult) QAs, and Speaker leave -behinds. LEG will conduct Speaker Training. 7' Proposal to Form a Citywide Assessment District for Parks, Trails and Open Space 283 XrWWILLDAN Financial Services Ad Hoc Citizens Task Force LEG has worked successfully in other cities to engage the participation of External Opinion Leaders and Community Stakeholders, such as business leaders, representatives of senior, civic or neighborhood organizations, parents, civic leaders, and even taxpayer advocates, in a high-level Citizens Task Force to provide additional input to the process prior to measure placement. These individuals would also be visible in the community by addressing the City's service and revenue enhancement needs. LEG looks forward to discussing whether the City of La Quinta feels that this strategy would be beneficial. Press Coverage LEG will review earned (non -paid) media press opportunities with City staff. Balanced or positive press coverage will build additional awareness and support throughout the process, which is critical to engaging community stakeholders and informing the public about park, trail and open space needs. Rapid Response LEG will redirect message points and materials to assist in rapid response to problematic media or citizen inquiries as necessary. Frequently, communities that pride themselves on having active stakeholder groups can, at times, be prone to being victims of inaccurate information, or controversy -based media coverage. LEG experts will be available to craft appropriate rapid responses as necessary to address changing external nuances. Task D.3: Develop Ballot Language LEG will collaborate with Willdan, the City Attorney and City staff on the proper and recommended wording and structure of the ballot language to address the public's concerns, if any. Willdan and LEG will work closely with the City Attorney to refine the notice and ballot and develop other submittals so that they are understandable to the average person. When pursuing a property owner mail ballot, the notice and ballot are subject to certain legal requirements and format protocols. Any information contained in the notice and ballot must be balanced and factual in nature. LEG experts work closely and successfully with the City Attorney to suggest and agree on more simplified, user- friendly terminology as appropriate, including references to the park, trail and open space programs or services affected by the proposed assessment. Proposal to Form a Citywide Assessment District for Parks, Trails and Open Space WWILLDAN Financial Services E. Proposition 218 Notice and Ballot Services Willdan will be responsible for preparing and mailing the required notice of the Public Hearing and assessment ballots that are required pursuant to Proposition 218 including: Task EA: Prepare Notices and Ballots Prepare the required notice for the Public Hearing and the assessment ballots to be mailed to each property owner. This documentation will be tailored so as to specifically address the assessments per individual property owner. Draft notices and ballots will be delivered to City staff for review and comment prior to final versions being printed, processed and mailed. To ensure adequate time to print and process these documents after the Intent Meeting, drafts will be prepared and finalized with the City prior to the Intent Meeting. Task E.2: Print and Mail Notices and Ballots Upon adoption of the Resolution of Intention, print and assemble notices and ballots for mailing. Notices and ballots will be printed double sided, in order to save money on postage. A return #9 envelope addressed to the City Clerk will be included for the convenience of the property owners to mail back the assessment ballot. Actual printing and mailing of the documents may be performed by a mailing house that subcontracts to Willdan for mailings such as this. Ballots will be addressed directly to the City Clerk and should not be opened until the close of the Public Hearing. Mailing of the ballots and notices will be done a minimum of 45-days prior to the Public Hearing date as required by law. Although we utilize the most up-to-date property owner information from the County to mail the notices and ballots, inevitably some documents will be returned to the City as undeliverable. At the City's request, we will research other sources to update owner and mailing information for these properties and resend the documents to those property owners. In addition, for various reasons, it may be necessary to provide some property owners with replacement ballots. Willdan will provide replacement ballots at no extra charge to the City, excluding mailing costs. Task E.3: Public Hearing and Ballot Tabulation Attend the Public Hearing in order to be available to answer any questions and to assist the City Clerk with the tabulation of the returned ballots. Upon the close of the Public Hearing, the City Clerk will be directed to open the ballots received, and upon completion of the tally, announce the results either at the same Council session or the next regularly scheduled session. Due to the number of parcels, tabulation of returned ballots could take a couple of days to complete and will likely require that the City Council adopt the appropriate resolutions at the next Council meeting. We anticipate that the ballots will be opened and tallied by the City Clerk with the assistance of Willdan staff. Willdan has developed ballot tabulation software that uses barcode scanning to electronically tabulate the ballots. This software provides a summary of the weighted ballot results as well as a record of each ballot tabulated. As noted above, while we may begin ballot tabulation the night of the Public Hearing, we anticipate the process to be completed within two to three days after the Hearing. Proposal to Form a Citywide Assessment District for Parks, Trails and Open Space VWILLDAN LY Financial Services Client Responsibilities We will rely on being able to obtain the following information from the City of La Quinta: • As needed, provide pertinent documentation associated with the maintenance, improvements, and budget information including, but not limited to, estimated renovation and installation costs, projected annual maintenance expenses, possible capital expenditures to be funded by the assessments, City overhead, available funding from other sources that may be used to offset costs, as well as any legal opinions or comments associated with this project. • Prepare internal memorandums, staff reports and other supporting documents necessary for City Council agendas. • Arrange for any required publication notice of Council meetings or Public Hearings in the local newspaper. • Review the draft reports and resolutions before the final documents are prepared for the Council packets. This review will most certainly include City staff but should be closely reviewed by the City's legal counsel. Requested changes shall be submitted to Willdan in writing. • The City of La Quinta acknowledges that Willdan and LEG shall rely upon the accuracy of the information provided by the City and the County and agrees that they shall not be liable for any inaccuracies contained in such information. Legal Opinions In preparing the Engineer's report, resolutions, notices and ballots, Willdan will provide our professional expertise. Since we do not practice law, we ask that your City Attorney, or other designated counsel, review the documents. We will assist your Attorney in identifying any pertinent legal issues. 10 Proposal to Form a Citywide Assessment District for Parks, Trails and Open Space t�: 286 L��WILLDAN Financialaervices Project Schedule General project timeframes are summarized in the table below. A more detailed project timeline will be developed following consultation with and in concert with City staff. We can work with the City to modify this schedule as necessary. Hands" Project Kick-off Meeting >are Updated Propertf Or<mer lnforu lien elop Impro%erl Matrix and Zone Structure ebp District Budget Prepare Engineer's Report Prepare Resolutions Assess Viability do Community Sury y Implement Public Information Plan Deselop Balbt Language Prepare Notices and Ballots Print and Mail Notices and Ballots Public Hearing and Ballot Tabulation Requlred45 Day Warm, . Period Proposal to Form a Citywide Assessment District for Parks. Trails and Open Space 11 WILLDAN l� Financial services Fee for Services Willdan and LEG will perform the tasks described in Scope of Services section for the fees outlined below. CitywideForm a Assessment District for Parks, Trails . Open Space QuintalCity of La Willdan Financial Services Assessment District Coordination and Development $21,375 Assessment Documentation $14,250 Proposition 218 Notice and Ballot Services (includes printing and mailing costs based on 21,000 parcels) $28 125 The Lew Edwards Groun Public Education / Outreach Services (fee is for six months of service) $30,000 Polling $19,000 Informational Mailers (presumes two mailings and a parcel count of 21,000) $30,000 Total Fee Based upon Identified Scope of Services $ 142,750 Notes: • Our fee will not be contingent on the outcome of the formation of the proposed citywide district. • Telephone conference calls are not considered "meetings" for the purpose of our proposal and are not limited by our scope of services. • Additional tasks or meetings outside our proposed work plan will require an additional fee. • The fees above include our estimated travel time for various meetings and workshops, but do not include travel expenses which will be billed at cost. • We will invoice the City of La Quinta monthly based on percentage of project completion. • As part of the mailing process, related to notices, ballots and public outreach materials, postage must be paid in advance to the mailing house before they will proceed with the mailing. Willdan will provide a postage estimate to City staff in order to receive funds prior to the mailing. Any remaining unused postage will be applied toward payment against our next regular invoice for services, including other mailing costs. 12 Proposal to Form a Citywide Assessment District for Parks, Trails and Open Space VFinancial services WILLDAN Willdan Hourly Rates Additional services to be provided by Willdan that are authorized by the City of La Quinta will be billed at our current hourly billing rates. Willdan Hourly Rate Schedule Position Hourly Rate Group Manager $210 Principal Consultant $200 Senior Project Manager $165 Project Manager $145 Senior Project Analyst $130 Senior Analyst $t20 Analyst $100 Analyst Assistant $75 Property Owner Services Representative $55 Support Staff $50 Notes: • Consistent with standards common among industry leaders in the public outreach consulting profession, without exception LEG does not charge or bill on a time and materials or hourly rate basis. • LEG is available to provide services for an advocacy campaign and these are campaign consulting costs that are outside of the purview of this proposal. Proposal to Form a Citywide Assessment District for Parks, Trails and Open Space 13 WW I LLDAN l� Financial Services Project Team Our management and supervision of the project team is very simple: staff every position with experienced, capable personnel in sufficient numbers to deliver a superior product to the City of La Quinta, on time and on budget. With that philosophy in mind, we have selected experienced professionals for this engagement. We are confident that our team possesses the depth of experience that will successfully fulfill your desired work performance. Mr. Jim McGuire, Senior Project Manager, will serve as project manager for this engagement. He will organize and direct consultant tasks and ensure deliverables are completed on time and within budget. Mr. McGuire will serve as the City's day-to-day contact and will be present at meetings and City Council presentations. Mr. McGuire is one of Willdan's experts regarding Landscaping and Lighting Districts, Proposition 218 re -engineering evaluations, fiscal analyses, cost recovery studies and long-term strategic planning for maintenance districts. Mr. Habib Isaac, Principal Consultant, will serve as technical advisor. His responsibilities will include overseeing the quality of work products and assuring timely completion of the project. Mr. Isaac specializes in consulting with public agencies to advise them on how to successfully implement new financing districts including: 1972 Act Landscaping and Lighting Districts; Community Facilities Districts; 1913/1915 Act Assessment Districts; 1982 Act Benefit Assessment Districts; and Fire Suppression Assessments; as well as to determine the feasibility of utilizing such districts. Mr. Isaac was a presenter at the 2011 League of California Cities Annual Conference on the topic of establishing special benefit in agency -wide Landscaping and Lighting Districts. To address the City's need for in-depth public outreach services, Willdan has partnered with The Lew Edwards Group, one of the most successful elections revenue consultants in California. Ms. Catherine Lew, co-founder and President/CEO of The Lew Edwards Group, will serve as the public outreach lead. With three decades of experience in the communications and political arena, Ms. Lew is a veteran of over 500 political campaigns, many of them difficult two-thirds requirement revenue enhancement measures. Furthermore, Ms. Lew was also a speaker at the 2011 League of California Cities Annual Conference regarding the topic of establishing special benefit in agency - wide Landscaping and Lighting Districts. Ms. Jennifer Rindahl, a Senior Associate at LEG, will provide additional public outreach support. Ms. Rindahl is experienced leading candidate, healthcare, and educational communications projects throughout California. She offers LEG clients creative expertise in winning campaigns and building support for their issues. Resumes for the team of professionals that will be devoted to the City of La Quinta's engagement follow for your review. 14 Proposal to Form a Citywide Assessment District for Parks, Trails and Open Space ..,1,,.. 290 vWILLDAN ov Financial Services Education Bachelor of Science, University of California, Irvine Jim McGuire Project Manager Jim McGuire is a senior project manager in the Financial Consulting Services group and specializes in district administration and formation of various special districts; Areas of Expertise including Landscaping and Lighting Districts, Benefit Assessment Districts for streets Special District Formation and storm drain facilities, Property and Business Improvement Districts, as well as and Administration parcel and property -related revenue audits and special taxes. Mr. McGuire also possesses extensive experience conducting study sessions for staff and City Parcel and Property -related Councils, along with facilitating and providing technical support for advisory Revenue Audits committees and property owner workshops. Feasibility Studies Related Experience Proposition 218 City of San Rafael — Pt. San Pedro Road Median Landscaping Assessment District: In 2011, Mr. McGuire assisted the City of San Rafael, in conjunction with the 20 Years Experience Point San Pedro Median Committee, to form this district under the provisions of the 1972 Act. Bonds were issued to fund the construction of new median improvements. The assessments will fund the ongoing maintenance of the median landscaping, as well as pay back the bonds issued. City of Arcadia — Citywide Lighting District 2010-1: Mr. McGuire oversaw the City of Arcadia's 1972 Act district formation project requiring the creation of a citywide parcel database, including multiple zones of benefit. The project also involved the noticing and balloting of affected property owners. City of Richmond — Marina Bay Landscaping and Lighting Maintenance District: Mr. McGuire served as project manager for the formation of a Landscaping and Lighting District for the Marina Bay area within the City of Richmond to fund the ongoing maintenance, servicing and operation of local parks, trails, landscaping and related improvements. The project required the identification and analysis of local park, trail and landscaping improvements, budgets, parcel maps, and cost -to benefit equities; as well as, the preparation of district budget, assessment diagram, public outreach mailers, Engineer's Report, notice and ballots, and resolutions. The scope further included public outreach, presentations and education sessions with Marina Bay property owners and City staff, tally of property owner ballots, and the levy of assessments on the annual property tax roll. City of Fairfield — On -Call Special District Formation and Annexation Services: Mr. McGuire has assisted the City of Fairfield since 2004 with numerous formations and annexations of Community Facilities Districts (CFDs) and Landscape Maintenance Districts (LMDs) in the role of technical advisor and project manager. Furthermore, in addition to the required Proposition 218 noticing and balloting and tabulation, some of these engagements have included extensive public outreach efforts including community meetings and property owner workshops. City of Paso Robles — Special District Formation Projects: Willdan has a long- standing relationship with the City of Paso Robles in terms of special district formation. During these engagements, the project team, led by Mr. McGuire, assisted with all phases of the formation process; including preparation of the Engineer's Report, noticing and balloting of affected property owners, and public outreach. 15 Proposal to Form a Citywide Assessment District for Parks, Trails and Open Space 291 WILLDAN i Financial Services Education Bache/or of Science, Applied Mathematics with Habib Isaac Technical Advisor Principal Consultant Habib Isaac has been selected to serve as technical advisor due emphasis in computational expertise. He to his extensive assessment formation experience and Proposition 218 ex P P P science, San Diego State specializes in consulting with public agencies to provide guidance regarding the University successful implementation of new financing districts; including Landscaping and Lighting Districts, Community Facilities Districts, 1913/1915 Act Assessment Districts, Areas of Expertise Benefit Assessment Districts, and Fire Suppression Assessments. Assessment District Formations More specifically, Mr. Isaac has been involved with the preparation of over 50 Engineer's Reports and Proposition 218 ballot proceedings, through the formation of Extensive Experience with Large Proposition 218 various special districts and Fire Suppression Assessments. He possesses a Balloting Measures thorough knowledge of the special benefit provisions of Proposition 218 and has facilitated numerous successful protest balloting g proceedings, in compliance with the Benefit Assessment State Constitution. Analyses Related Experience Formation of Community Facility Districts City of Arcadia — Citywide Lighting District 2010-1: Completed the successful formation of a multi -zone assessment district. The 1972 Act district formation project Reassessment Reports required the evaluation of the City's street lighting system and creation of a citywide parcel database. The project also involved public outreach and noticing and balloting Publications of affected property owners (16,000 parcels). "Cryptography with Cycling Chaos,"Physics City of Covina — Citywide 1972 Act Landscape and Lighting District: As project Letter A, v 303; Pages 345-351(2002) manager, Mr. Isaac provided district assessment engineering services related to the potential restructuring and re -balloting of Landscape Maintenance District No. 1 and e Years Experience Lighting District 1978-79 to a citywide special assessment to fund the ongoing maintenance and operation of landscaping and street lighting improvements. County of San Diego — Special Tax Consulting: Mr. Isaac is serving as project manager for the County's special tax consulting projects. To meet the demands of continued growth within the County, he is involved with the initial steps of forming three separate CFDs that will fund services and improvements ranging from Flood control maintenance and fire protection services, to necessary capital improvements. City of San Jose — Convention Center Facilities District No. 2008-1: Mr. Isaac managed the formation of a unique CFD under the City of San Jose's charter, designated as a Convention Center Facilities District (CCFD). The CCFD was formed to fund the expansion and rehabilitation of the City's Convention Center, and levied a special tax on all hotel properties within the City's boundaries. The total bonded indebtedness for the CCFD is up to $750 million. City of Moreno Valley — CFD No. 7: Mr. Isaac assisted the City in forming a CFD to fund flood control improvements for a commercial/industrial area of the City. He prepared multiple tax scenarios to optimize and determine the most equitable spread of taxes against benefiting parcels. He discussed initial scenarios and subsequent iterations with City staff and stakeholders throughout the formation proceedings. As part of the final method of assessment, three separate zones of benefit were created based on the tributary areas of the flood control improvements. 16 Proposal to Form a Citywide Assessment District for Parks, Trails and Open Space 292 VWILLDAN WFinancial Services Education University of California, Catherine Lew Public Outreach Lead — — Catherine Lew, co-founder and President/CEO of The Lew Edwards Group, is a Berkeley premier consultant in California providing Public Outreach and Communications University of San Services and political strategy to cities, counties, special districts, transportation Francisco School of Law authorities, K-12 school and community college districts, and other public agencies, as well as political action committees, private sector and nonprofit clients. Affiliations California State ear Ms. Lew possesses three decades of experience in the communications and political arena. She is a veteran of over 500 political campaigns, many of them difficult two- 30 Years Experience thirds requirement revenue enhancement measures. Selected clients represented by Ms. Lew include Benefit Assessment projects for the Cities of Arcadia, Burlingame, Gardena, and San Ramon and Parcel Tax/Park Bond projects for the Cities of Desert Hot Springs and San Juan Capistrano, Palm Drive Healthcare District, Oakland Unified School District, and Mountain Communities Healthcare District. She has extensive experience related to parks and open space issues through her representation of The Nature Conservancy, Presidio Trust, and Napa County Parks District and is well versed in Riverside County, having represented the Cities of Cathedral City, Indio, and Riverside. I Ms. Lew prides herself on her firm's excellent service to each and every client, diverse agencies and organizations that range dramatically in size and scope of strategic needs. She is a frequently sought-after trainer and motivational speaker for local leadership organizations and advocacy groups such as the League of California Cities and has been a featured speaker at the League's annual conventions. Through her work passing tough local measures in cities when pundits have predicted failure — and working with cities to beat back taxpayer -initiated challenges to existing revenue measures, often winning by a scant percentage or a handful of votes — Catherine Lew has earned a reputation as one of the State's toughest advocates and tacticians on behalf of local cities. 17 Proposal to Form a Citywide Assessment District for Parks, Trails and Open Space N.: 293 VW I LLDAN A, Financial Services Education Medill School of Journalism, Northwestern University 9 Years Experience Jennifer Rindahl Public Outreach Consultant Jennifer Rindahl has over nine years of experience leading candidate, healthcare, and educational communications projects throughout the State of California and offers Lew Edwards Group clients creative expertise in winning campaigns and building support for their issues. Ms. Rindahl has led successful two-thirds requirement revenue enhancement projects on behalf of the Counties of Imperial and Tulare County, the Cities of Ceres, Dinuba, Los Banos, Manteca, Reedley, and Selma and the recent Benefit Assessment renewal for McKinleyville Community Services District. Known as a top operative in coalition -building and community organizing, Ms. Rindahl also has specialized expertise in innovative Internet communications strategy and a- based organizing, fundraising, and outreach efforts derived from her years as Director of rockcity.com, a Southern -California based Internet Company that did original programming on the Internet. 18. Proposal to Form a Citywide Assessment District for Parks, Trails and Open Space " 294 May 12, 2009 Page 1 of 19 ATTACHMENT 2 i To: Tim Jonasson and Ann Weaver, City of La Quinta From: Jim McGuire, Jennie Carter, Willdan Financial Services Date: May 12, 2009 Re: La Quinta Proposed Park Maintenance District Preliminary Rate Structure Summary of Findings On behalf of the City of La Quinta ("City"), Willdan Financial Services ("Willdan") has conducted a preliminary analysis of the City's park, open space and trail improvements to evaluate the feasibility of establishing a district to provide a revenue source (funding) to support the maintenance and enhancement of the City's recreational improvements for the properties within the City. Over the recent months, Willdan has worked closely with City staff gathering relevant information regarding the City's park and recreational improvements and developing the parameters for establishing a possible Citywide Assessment District ("District") to fund the ongoing operational and maintenance costs of the parks, trails and open spaces (collectively referred to as "maintenance"), as well as the long term repairs, renovations and rehabilitation costs associated with those improvements and facilities (collectively referred to as "capital costs"). While this memo identifies an estimate of the possible assessments that may be associated with this District, these assessments are only a preliminary estimate of those possible assessments based on some basic assumptions regarding the overall cost of providing the improvements, cost allocations and the method of apportionment. Ultimately, the various preliminary findings and factors that are outlined in this memo will require further analysis and refinement (particularly the budgeted costs and method of apportionment) if the City decides to move £onward with the possible formation of the District. This additional analysis and refinement of the costs and assessments would be addressed in the development of an Engineer's Report that is required pursuant to the Landscaping and Lighting Act of 1972 and the California Constitution (Proposition 218). As part of this evaluation, Willdan has reviewed the improvements and budget information provided by the City and has researched parcel data and factors that support the formation of an assessment district within the boundaries of the City. Secured roll data, including parcel numbers, acreage, ownership, and land use codes were analyzed against and united with current geographic information system data in an effort to determine a basic method of apportionment and rate structure for an assessment district. While our evaluation concludes that an assessment district is a feasible approach for the City to consider, such a district would require the establishment of benefit zones which would reflect differences in special benefits and assessments within the City (Zones of Benefit). Although approximately 83% of the parcels within the City could be assessed for special benefits received from all park and recreational improvements, approximately 15% would be subject to special benefit assessments for trail maintenance and capital costs only and the remaining properties (less than 2%) 295 May 12, 2009 Page 2 of 19 have been identified as receiving no measurable special benefits and would not be assessed for existing improvements. Although our evaluation has determined that an assessment district with zones of benefit is a viable approach to creating a revenue source to support the City's recreational improvements, such an assessment district requires that general benefits be separated from special benefits and the District may only assess for special benefit. Our analysis of the improvements and associated costs suggests that approximately fifty-five percent (55%) of the regular annual maintenance costs would be considered special benefit, but capital costs, such as enhancement, renovation and rehabilitation of the improvements would be largely considered special benefits and recovered through the assessments, but such projects and costs need to be clearly identified and evaluated further as part of developing an Engineer's Report for the District. As outlined in this memo, we estimate that the City could recover approximately $1,268,500 of the $2,190,200 estimated to fully fund the maintenance and long term needs of the City's current park, open space and trail system infrastructure. The following provides a more detailed analysis of our findings and identifies key elements for the City to consider. , Method of Apportionment Based on the provisions of the 1972 Act and the California Constitution, this section of the memo summarize an analysis of the benefits associated with the City's existing park, open space and trail improvements that may be incorporated into a citywide special benefit assessment district (both general and special); the resulting district structure (zones of benefit); and the formulas used to calculate potential proportional special benefit assessments based on the entirety of the cost to provide the improvements (method of assessment). Benefit Analysis The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements, which include but are not limited to the construction, maintenance, operation, and servicing of park and recreational improvements. The 1972 Act requires that the cost of these improvements be levied according to benefit rather than assessed value: "The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel firm the improvements. " In conjunction with the provisions of the 1972 Act, the California Constitution Article YIIID addresses several key criteria for the levy of assessments, notably: Article XIIID Section 2d defines District as: `District means an area determined by an agency to contain all parcels wln'ch will receive a special benefit from a proposed public improvement or property -related service ",• N 296 May 12, 2009 Page 9 of 19 Article YIIID Section 2i defines Special Benefit as: "Special benefit" means a particular and distinct bent over and above general benefits conferred on real property located in the district or to the public at large. General enhancement of property value does not constitute "special benefit. " Article YIIID Section 4a defines proportional special benefit assessments as: An agency which proposes to levy an assessment shall identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed. The proportionate special benefit derived by each identified parcel shall be determined in relationshp to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided. No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that paroel. " The method of apportionment (cost allocation) established for an assessment district requires that each assessed property receives special benefits from the improvements and services that are funded by such assessments, and the assessment obligation for each parcel reflects that parcel's proportional special benefits as compared to other properties that receive special benefits as outlined in the preceding definitions of the 1972 Act and the California Constitution. In reviewing the location and extent of the City's parks, open spaces and trail system (Please refer. to Diagram 1— Improvement Details for an overview of the City's park, open spaces and trails) and the relationship these improvements have to properties within the City, it has been detemvned that all properties in the City (with the exception of the small area east of Monroe Street) are within one and a half miles (1 'h miles) of an existing park and/or open space area, which is well within what would typically be considered the average service area for local parks and open spaces. (Please refer to Diagram 2—1.5Mile Park and Open Space Radius for an overview of the sphere of influence of the City's park based on a 1'/2 mile radius). Furthermore, these parks and open spaces can be easily accessed by the City's interconnecting trail system that is immediately adjacent to all but approximately two percent (2%) of the City's properties and/or developments. While this would suggest that collectively, the City's parks, open spaces and trails provide a direct and local benefit to the properties within the City, it is also reasonable to conclude that the use and accessibility to these improvements is not limited to the properties and the owners of such properties and therefore provide some identifiable general benefit. In our evaluation of the City's trail system it was determined that the City has an extensive trail system that extends throughout most of the City and these various trail segments provide direct access to the City's parks and open spaces as well as other trails, of which approximately twenty percent (20%) of these trail segments provide access points to and from areas outside the City. This accessibility from outside the City suggests potential use by the general public and a measurable degree of general benefit. Similarly, consideration must be given to the likely or potential use of the City's parks by the general public to establish a level of general benefit for those improvements. Although actual park usage is often times difficult to quantify, in our research, the City's Community Services Department provided policy guidelines that the City has followed for a number of years that has limited non- resident participation in various recreational leagues to be no more than 25%. Clearly this indicates that the City (at least from a policy perspective) has limited or attempted to limit the general public's "^ 297 May 12, 2009 Page 4 of >9 use of the City's recreational improvements which in turn enhances a special benefit nexus to properties within the City. Collectively, trail accessibility from outside the City and limits on non- resident league participation strongly suggests that less than twenty-five percent (approximately 22.5%) of these combined improvements and their associated maintenance costs would be quantified as general benefit to the public at large. In conjunction with the measure of general benefit to the public at large, it is also recognized that because these improvements are collectively associated with the entire City and are not necessarily specific to a particular development or developments (which is often times the case with assessment districts), clearly there is some measure of general benefit to the properties within the City as well as the general public. Therefore, in addition to those costs attributable as general benefit to the public at large, it is reasonable to conclude that an additional percentage of the annual maintenance costs for parks, open spaces and trails should be considered general benefit to properties within the City (District). For purposes of this preliminary evaluation, the general benefit to properties within the City has been estimated to be approximately twenty percent (20%) based on two considerations: 1.) If such improvements (park and recreation improvements) provide a certain degree of general benefit to the public at large, properties within the district and the owners of those properties should reasonably have a similar level of general benefit from those improvements (22.5% based on the previous discussion); 2.) Although it is certainly reasonable to conclude that parcels within 1 1/2 miles of the City's various parks and open spaces each benefit from such improvements and the trail system clearly enhances that benefit nexus, it is also reasonable to assume that a measure of special benefit requires a more direct local nexus. Therefore, utilizing a reduced park radius of between '/z of a mile and/4 of a mile (which would be considered reasonable walking distance and clearly a direct local association between the various park sites and the surrounding developments and subdivisions), it has been determined that only about seventeen percent (17%) of the developments, subdivisions and properties within the City would be outside this more closely defined park radius. (Please refer to Diagram 3 — Special Benefit Park Radius for an overview of the sphere of influence of the City's parks based on a radius of less than '/< of a mile). Together these two considerations would suggest an average general benefit percentage of 20% to properties within the District. Based on the preceding discussion, collectively it is reasonable to conclude that approximately forty- three percent (42.5 %) of the City's annual maintenance cost for the existing parks, open spaces and trails should be considered general benefit (22.5 % to the public at large and 20% to properties within the City). However for purposes of this preliminary evaluation, the following discussion regarding budgets and assessments assumes a more conservative estimate of general benefit (Forty- five percent [45%]). This general benefit allocation would be applicable to the regular annual maintenance costs and incidental expenses associated with the improvements. Conversely, the costs to maintain various quasi -park improvements such as City Hall and the Civic Center Campus are considered to be entirely general benefit costs, while capital costs (excluding City Hall and the Civic Center Campus) are considered to be entirely special benefit because such efforts are for enhancement or expansion of the existing improvements which is entirely for the special benefit of properties in the City. '._11 � 298 May 12, 2009 Page i of 19 Assessment Methodology In order to calculate and identify the proportional special benefit received by each parcel and their proportionate share of the improvement costs, it is necessary to consider not only the improvements and services to be provided, but the relationship each parcel has to those improvements as compared to other parcels in the District. Article XIIID Section 4a reads in part: "...The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement or the maintenance and operation expenses of a public improvement or for the cost of the property related service being provided No assessment shall be imposed on any parcel which exceeds the reasonable cost of'the proportional special benefit conferred on that parcel " Parks, open spaces and trails, like most public improvements, provide varying degrees of benefit (whether they be general or special) based largely on the extent of such improvements, the location of the improvements in relationship to the properties, and the reason or need for such improvements as it relates to individual properties. In this analysis of a possible citywide district these issues are each considered in determining the proportional special benefit to each parcel by the use of benefit zones that reflect the extent and location of the improvements in relationship to the properties, as well as the specific use and size of each property which reflects each parcel's need for such improvements and its reasonable cost of the proportional special benefit as compared to other properties that benefit from those improvements. Zones ofBene6t In an effort to ensure an appropriate allocation of the estimated annual cost to provide the improvements based on proportional special benefits, this potential citywide assessment district would likely be established with benefit zones ("Zones") as authorized pursuant to Chapter 1 Article 4, Section 22374 of the 1972 Act: The diagram and assessment may class�ft various areas within an assessment district into d&erent tiones where, by reason of variations in the nature, location, and extent of the improvements, the various areas will meme differing degrees of ben fit from the improvements. A tione shall consist of all territory which will rrceire substantially the same degree of ben fit from the improvements. " While the California Constitution requires that "the proportionate pecial ben fit derived by each identfied parcel shall be determined in relationsbip to the entirety of the capital cost of a public improvement or the maintenance and operation expenses of a public improvement...", it is reasonable to conclude that the location and extent of the specific improvements in relationship to those neighborhoods or groups of parcels immediately adjacent or in close proximity to those improvements must be considered. In reviewing the location and extent of the various park, open space and trail improvements and the relationship these improvements have to properties within the City, it has been determined that these improvements are clearly local amenities that are directly associated with or desired for the development of such properties to their full and best use. As such, these local improvements have a direct and particular special benefit to the properties within close proximity to such improvements, which enhance their access or use of such improvements and provide a level of service and amenities that are not directly associated with other properties. u." 299 May 12, 2009 Page G of 19 As previously noted, with the exception of a small percentage of the parcels along the eastern boundary of the City, generally parcels within the City are located within a P/z- mile radius of an existing park or open space, and have direct and/or easy access to a park or open space via the City's existing trail system. In narrowing this radius to '/a mile, each parcel's proportional special benefit from the parks and trails is further clarified. In recognition of these differences, the District would initially be established with three (3) Zones to reflect the proportional special benefits that various properties receive from the various improvements and associated costs. The following provides a description of the three Zones: Zone 01 Zone 01 incorporates and includes those developments and properties in the City that are within 3/4 of a mile (radius) of a park and/or open space, and is adjacent to or in close proximity to one of the City's trail segments that provide direct and easy access to those parks and open spaces. Accordingly, parcels within this Zone would be assessed for their proportional share of the costs to maintain these parks, trails and open spaces, as well as their proportionate share to fund related capital improvements, replacements, expansion and renovation of these improvements. Zone 02 Zone 02 incorporates and includes those developments and properties in the City that are more than '/< of a mile (radius) from an existing park and/or open space, but is adjacent to or in close proximity to one of the City's trail segments that provide direct and easy access to those parks and open spaces. Accordingly, parcels within this Zone would be assessed for their proportional share of the annual costs to maintain the trails but not the parks and open spaces. However, because of their easy access to the parks and open space areas via the trail system it has been determined that these properties should be assessed for their proportionate share to fund related capital improvements, replacements, expansion and renovation of not only the trails, but the park and open space improvements. Zone 03 Zone 03 incorporates and includes those parcels within the City that are not included in Zones 01 or 02. These developments and properties are more than '/a of a mile (radius) from an existing park and/or open space, and are not currently adjacent to or in close proximity to one of the City's existing trail segments. Accordingly, parcels within this Zone would not be assessed for the annual costs to maintain the trails, parks or open spaces. While a case could be made that these parcels would receive special benefits from various capital improvement, replacement, expansion and renovation projects associated with the City's parks, trails and open spaces, those special benefits would likely depend on the specific projects. Therefore, for purposes of this preliminary analysis, it is assumed that properties within Zone 03 would have limited or no special benefit from these projects and would be exempt from special benefit assessments until such time that trails and/or parks are expanded so that these properties have a direct local presence from those improvements. Although our analysis suggests that three Zones of benefit would be initially established for a citywide assessment district based on the current improvement infrastructure, these Zones could potentially be consolidated into two Zones and possibly a single Zone if the City were to add additional trails within Zone 03 and/or construct one or more parks in the eastern area of the City. 300 May 12, 2009 Page 7 of 19 Please refer to Diagtam 4— Zone and Improvement Detail for an overview of the three Zones and the relationship to the various improvements. For clarity purposes, Diagram 5 — Zone Detail provides an overview of the Zones without the improvement overlay. Equivalent Benefr't Units In addition to the use of Zones, the method of apportionment established for an assessment district should reflect the proportional special benefit of each parcel utilizing a weighted methodology of apportionment. For purposes of determining an appropriate cost allocation, in this preliminary analysis we have utilized a weighted methodology typically referred to as an Equivalent Benefit Unit (EBU) methodology. This method of apportionment establishes the typically detached single-family home site as the basic unit of assessment. A single-family residential unit is assigned one (1.0) Equivalent Benefit Unit (EBU) and other property types (land uses) are proportionately weighted (weighted EBU) based on a benefit formula that equates each property's specific characteristics and special benefits to that of the single-family residential property. This proportional weighting may be based on several considerations that may include, but are not limited to: the type of development (land use), development -status (developed versus undeveloped), size of the property (acreage or units), population densities or other property related factors including any development restrictions or limitations; as well as the property's location and proximity to the improvements (which is addressed by its Zone designation). For the improvements and assessments outlined in this memo, it has been determined that the most appropriate proportional special benefit calculation for each parcel is reasonably determined by three . basic property characteristics: • Location — as previously noted, each parcel in the District shall be identified and grouped into one of three Zones based on each parcel's proximity and relationship to the District improvements. • Land use — for purposes of this analysis, we have classified and grouped various land uses into a few basic categories including: Developed Non -Residential Properties (various commercial, industrial, institutional and other non-residential properties including government owned properties); Residential Properties (Single-family, Multi- family, condominiums and timeshares); and Vacant land (undeveloped properties that may be zoned for either residential or non-residential use). • Property Size — Acreage for non-residential properties; Units for residential properties. Property size (acreage or units) provides a definable and comparative representation of each parcel's proportional special benefit not only to similar types of properties but to other properties as well. ' The following is a summary of the property types and Equivalent Benefit Unit assignments utilized for this preliminary analysis. The method of special benefit allocation to each parcel type shown below is based on typical industry standards, but adjusted to reflect the City's overall development characteristics including comparable residential density statistics from the U.S. Census Bureau from the years 2005-2007, and other documentation provided by the City. If the City chooses to move forward with the formation of an assessment district, it is likely that this basic allocation by land use " 301 May 12, 2009 Page 8 of 19 may be expanded or modified to more accurately reflect the proportional special benefits to various property types. Multiplier j,-- - Limits -, Developed Single Family 1.00 per Parcel NoaLiimmiitss. ft Developed Condo 0.75 per Unit No Limits @ - cu ftiatlS ' ,Wwwwiv C CflteC b(A Vacant 0.50 per Acre Minimum of 1 EBU, Maximum of 5 EBUs per Parcel o oo` fXa Based on the preceding method of special benefit allocation to each parcel type shown above and the parcel land use information from the most recent County secured roll data and the County's geographic information system ("GIS"), the following provides a summary of the number of parcels and Equivalent Benefit Units for each land use classification applied in this assessment analysis. Developed 15,818 15,818.00 �Si�ng�yle�Family� Developed Condo 1,279 959.25 ° u • Dry' �(1 Vacant 5,223 7,014.98 _ C�Cxu77Xi Cost Allocations Pursuant to the provisions of the California Constitution, the proportionate special benefit derived by each parcel within an assessment district and its corresponding assessment obligation shall be determined in relationship to the entirety of the capital cost of a public improvement or the maintenance and operation expenses of a public improvement. The following formulas are used to calculate each parcel's Levy Amount (proportional assessment obligation): Step 1: Based collectively on the preceding discussion and findings, the estimated annual cost to provide the various District improvements have been identified as either general benefit or special benefit. Those improvement costs determined to be of general benefit shall not be assessed to properties within the District and these costs are deducted from the total budget to establish the improvement costs determined to be of special benefit. Total Budget — General Benefit Costs = Total Special Benefit Costs Step 2: Those improvement costs determined to be of special benefit are apportioned to each of the three Zones established, in proportion to the cost of providing the improvements for that Zone. As previously noted, it has been determined that .'JO 302 May 12, 2009 Page9of19 properties within Zone 03 do not receive identifiable local special benefits from the City's existing improvements and receive only . general benefit from those improvements and facilities. Therefore, no costs are budgeted as special benefit in this Zone and the properties therein are not assessed. Zone Specific Special Benefit Costs = Total Zone Budget Step 3: The Total Zone Budget minus any additional contributionsfrom the City or other revenue sources establishes the "Balance to Levy" for that Zone. This Balance to Levy amount is proportionately allocated to each parcel within the Zone based on their calculated EBU. Total Zone Budget — Additional City Contribution = Balance to Levy (Zone) Step 4: Each parcel's proportional special benefit is calculated based on the Equivalent Benefit Unit rationale previously discussed: Parcers Land Use Benefit x (Acreage or Units) = Parcel's EBU Step 5: The total number of Equivalent Benefit Units for each Zone is determined by the sum of all individual EBU(s) applied to parcels that receive a special benefit from the improvements. An assessment amount per EBU (Assessment Rate) for each Zone is established by taking the Balance to Levy in that Zone, and dividing that amount by the total number of EBU(s) for that Zone. Total Balance to Levy/Total EBU = Assessment Rate (Calculated per Zone) Step 6: This Assessment Rate is then applied back to each parcel's individual EBU to detertnine the parcel's proportionate benefit and assessment obligation. Rate per EBU x Parcel EBU = Parcel Levy Amount The potential costs (budgets) that would be used to establish the assessment rate for each Zone are outlined in the following section. Budget (Cost) Assumptions In this analysis, Willdan has utilized budget details provided by the City for fiscal year 2008/2009, as displayed in the following table, to establish an estimate of expenses to properly maintain the improvements: 0 303 T it $ 49 N CJ N O tA3 g P p 1.. g g Ortl v R p 9 � 4 IIIJJJ N ' N W CCC © 0 © 0 ^p o c'J ry r g id 4i 6 ��' r� I'm R0 ® e 9 r eq� cppp� Trr I � I 9 No �S F5 HS:9�l�� Fi NIF � $i � .> ai � �I ITI T �1 do Ru p I Alp Ni 'I .,.1$ 304 May 12, 2009 Page 11 of 19 Based on the cost assumptions and calculations described in the preceding table, it is estimated that approximately 2.19 million dollars ($2,190,200) is required to maintain the City's current park, open space and trail system infrastructure of which approximately $542,600 is budgeted for the City's long term repairs, renovations and capital improvement projects. However, only about $1,268,500 of these costs have been identified as special benefit costs, with approximately $1,194,100 being associated with Zone 01 properties; approximately $74,400 associated with Zone 02 properties; and no costs being associated with Zone 03 properties. Utilizing these cost estimates, a preliminary estimate of proposed assessments for properties within the City has been developed based on the equivalent benefit units referenced in the preceding discussions. The following tables provide a summary of the special benefit cost allocations to the various Zones and land use types within those Zones. Total Cost Allocation Type EBU Parcels 'Total EBUs! Total Asmt �• ..-. . - soU7,9b961,8-08 aii�23?221]�3�1514,1T94y($�1�288�535� Zone 1 Cost Allocations TYPe Zone1 EBUs Zonet Total Psmt LZe ego edEi _e MLI f69F36 Developed Condo r o ercia 298 245 - Vacant Ifi 5 t7 9, 7,T0 619E ;A18 410 717� Based on the preceding tables, a single-family residential property in Zone 01 would have an annual assessment of approximately $46.30, which would be the assessment rate per EBU for that Zone. Zone 2 Cost Allocations TYPe Zone 2 EBU- Zone 2 Total Asmt OPKIMIr D yelop ipl arrt Go ercia 34 9 20 4 Vacant _ W4187.8T23l1$1i74!4581 305 May 1$ 2009 Page 12 of 19 Based on the preceding tables, a single-family residential property in Zone 02 would have an annual assessment of approximately $15.30, which would be the assessment rate per EBU for that Zone. Zone 3 Cost Allocations Type -Zone 3 ii EBUs _ J;.TotalAsmt; Zone3 N- -..•. _ 4evelgped Multiple Famil Commercial M41 Based on the preceding table, parcels within Zone 03 only receive general benefit from the existing improvements and therefore this Zone would have an assessment rate that is $0.00 per EBU. If the City elected to pursue the implementation of a special tax rather than an assessment utilizing a similar method of apportionment but not the Zone structure, this same revenue amount (approximately $1,268,500) would equate to an annual tax rate of approximately $40 (amount per a single-family residential property) but applied to all properties in the City including those in Zone 03. If the City wanted to pursue the full funding of the improvements through a special tax (approximately $2,190,200), the annual tax rate would be approximately $94 (amount per a single- family residential property). Regardless of whether the City selects an assessment district or a special tax to fund the City's parks and recreational improvements, the measure submitted to the property owners or voters should include an annual inflationary adjustment to be applied to future assessment/tax rates. Because the cost of operating, servicing and maintaining park, open space and trail improvements are impacted by inflation over time, the proposed assessment rates or tax rate and corresponding parcel assessment/tax should include an annual inflationary adjustment based on either a set percentage rate, or the annual percentage change in the local Consumer Price Index. Special Tax vs. Assessment District While the primary objective of Willdan's efforts and the focus of this memo has been to outline the feasibility and overall structure necessary to establish a Citywide Assessment District for the City's park, open space and trail system improvements, consideration should also be given to the possibility of establishing a special tax to fund such improvements and costs. Although a special tax requires a two -thuds (66.7%) approval of registered voters to implement compared to the simple majority approval of property owners for an assessment (weighted ballots), the following are some notable distinctions between special taxes and assessments that the City should consider: Advantages of a Special Tax A special tax does not require the detailed support and analysis of special benefit and general benefit required for an assessment and given the recent State Supreme Court decision (Silicon 306 May 1$ 2009 Page 13 of 19 Valley Taxpayers Association versus the Santa Clara County Open Space Authority), judicial review and possible challenges are a greater concern for an assessment than previously was the case; > A special tax can include costs which an assessment cannot (an assessment district cannot assess for general benefit while a special tax is only limited by the purposes specified for the special tax); > The cost allocation structure for a special tax is typically more simplistic than an assessment district. A special tax usually is based on a single rate for the entire City (a flat rate that may be applied to various land uses or even a simple per parcel tax) compared to that of an assessment district that because of special benefit and proportionality requirements (particularly for a Citywide district), inevitably requires more than a single assessment rate and a more detailed or complex apportionment to various property types; > Because the cost allocation structure is usually less complicated for a special tax, public education and informational efforts are usually more focused on the need and advantages of the revenue source rather than explaining the differences in assessments which tend to make the ballot measure less controversial; > Although a special tax has a greater voter threshold, those that are most likely to support funding for park and recreational improvements are usually the residents of the City (registered voters). Conversely for an assessment balloting, out-of-town property owners, multi -family residential property owners (apartments) and non-residential properties may be less likely to support such an assessment and could have a significant impact on the voting results; > For the City of La Quinta, in addition to funding park and recreational improvements, a special tax could be constructed to also fund recreational services and programs and/or funding of the City's median landscaping (replacement of the current assessments which has limited revenue capabilities); and > For an assessment district, expansion of the existing improvements would likely facilitate modifications to the existing zones (areas of benefit) and increases to the assessments for the affected areas, a special tax would not require such modifications ultimately reducing administrative costs. Advantages of an Assessment > The most obvious advantage for pursuing an assessment rather than a special tax is the simple majority approval threshold, and if multi -family residential property owners (apartments) and non-residential properties (specifically commercial properties) are generally supportive of such assessments, the chances for a successful ballot outcome are good; > Each property is assessed only for their proportional special benefits and benefits compared to other properties. Properties only pay for the local improvements that directly benefit the property (Example: In the proposed assessment district structure previously discussed, properties in Zone 3 would not be assessed unless and until local parks, open space or trails are constructed in their area); a 307 May 1Z 2009 Page 14 of 19 While the City cannot use City funds to advocate either a special tax or an assessment, because approval of an assessment is not considered an election, there are fewer restrictions on the use of City funds for public outreach and education; Balloting for an assessment can be done any time during the year (although there are some legal opinions to the contrary), while a special tax requires the election to be scheduled and conducted at specified dates established by the California Elections Code; and Balloting for a new assessment may be conducted by a mailed ballot proceeding, while the balloting for a special tax does not currently provide for a mailed ballot proceeding. (Typically a mailed ballot proceeding is less expensive to conduct than an election handled through the County Registrar of Voters). Additional Considerations The assumptions and calculations detailed in the preceding discussions reflect a preliminary estimate of possible assessment rates for the City's parks, open spaces and trails based on existing estimated maintenance cost data. Although the estimated assessment rate options outlined in this analysis certainly suggest that an assessment district may be a viable approach to funding the City's parks, open spaces and trails, there are several issues that must be considered: n The estimated annual maintenance costs outlined in this memo are based on the City's Fiscal Year 2008/2009 Park Operations Cost. • Our analysis relies heavily on County secured roll data for identifying and determining individual land uses and property characteristics (which is sometimes incomplete or inaccurate) as well as the County's geographic information system ("GIS"). Although an assessment rate based on this data is certainly appropriate, a detailed audit of all City parcels to identify accurate land use designations for all parcels, acreage for commercial and vacant properties and unit counts for multi -family residential properties is likely needed before assessment rates can be finalized. While we have included Capital costs based on the City's FY 08/09 Budget for Parks, the estimated costs and subsequent assessment rate estimates presented in this memo do not include the possible higher costs that will inevitably result from the City's plans to enhance and renovate the City's existing parks, open spaces and trail system. Farther identification and estimates of the associated costs for those specific improvements or enhancements will need to be developed before finalizing an assessment rate that would fund this increased burden. In the next phases of the project (if authorized by the City) Willdan will continue to refine the methodology presented here by working on the parcel database as well as collaborating with the City staff to develop reasonable cost estimates and methodology for the rate structure. We look forward to our continued collaboration on this project with the entire team as the project progresses. Please feel free to call or email Jim McGuire to discuss these findings at 951.587.3536 and jmcguire@willdan.com " 308 May 12, 2009 Page 15 of 19 Diagram 1 Improvement Details La Quints Perk Maintenance District (Parks, Open Spaces and Trails) N W+E 5 WILLDAN RI ! nancial Services "r 309 May 12, 2009 Page 16 of 19 L ��oam a.e.Y ®M. N W+E SS Diagram 2 1.5 Mile Park and Open Space Radius La Quints Park Maintenance District (Packs, Open Spacas and Trails) WILLDAN 1 Financial Services aeMmsjims May 1 Z 2009 Page 17 of 19 �b Q nw�ao.� sA-�.erv�uaw —ny eym ®n.�w 0 a.� om-• N w+E S Diagram 3 Special Benefit Park Radius La Quints Perk Maintenance District (Parka Open Spaces and Trails) 4WWILLDAN L� Fnancial Services I Re w5nm May 12, 2009 Page 18 of 19 keyme —.tines ®^b p m.� p m.. Diagram 4 Zone and Improvement Detail La ouinte Park Maintenance District (Packs, open Spaces and Trails) WW I LLDAN ae�s.� snaros Financial Services 312 May 12, 2009 Page 19 of 19 Diagram 5 Zone Detail La Quints Perk Maintenance District (Perks, Open Spaces and Traits) N W+E 5 VW I LLDAN Financial Services rLmi SM LU9 31.3 FA MEETING DATE: Julv 3, 2012 ITEM TITLE: Consideration of Appointment of Voting Delegate and Alternate to the 2012 League of California Cities Annual Conference RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: 5 CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Appoint one member of the City Council as the voting delegate and one member of the City Council as the alternate to the 2012 League of California Cities Annual Conference to be held September 5-7, 2012. FISCAL IMPLICATIONS: None. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: The 2012 League of California Cities Annual Conference will be on September 5-7, 2012 at the San Diego Convention Center. The League's Annual Business Meeting will be held during the General Assembly at noon on Friday, September 7, 2012. At this meeting the League membership considers and takes action on resolutions that establish League policy. In order to vote at the Annual Business Meeting the City Council must designate a voting delegate. The City Council may also appoint an alternate voting delegate, who may vote in the event that the designated voting delegate is unable to serve in that capacity. Mayor Adolph and Council Members Henderson, Franklin, Evans and Osborne plan to attend the annual conference. Staff has attached the correspondence received from 314 the League of California Cities regarding the designation of voting delegate and alternates. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Approve the selection of a voting delegate and an alternate for the League of California Cities Annual Conference; or 2. Provide staff with alternative direction. Respectfully submitted, Wanda P. Wise -Latta, Executive Assistant Approved for submission by: Attachment: 1. League of California Cities Memorandum dated May 3, 2012 315 ATTACHMENT 1400 K S'1REET SACKAMGNTO, CA 95814 ml:(916) 658-8200 rx:(916) 658-8240 Council Action Advised by August 3, 2012 May 3, 2012 TO: Mayors, City Managers and City Clerks l l o OF oU E CITIES \f %M.CACTILS.OKC. RE: DESIGNATION OF VOTING DELEGATES AND ALTERNATES League of California Cities Annual Conference — September 5 - 7, San Diego The League's 2012 Annual Conference is scheduled for September 5 - 7 in San Diego. An important part of the Annual Conference is the Annual Business Meeting (at the General Assembly), scheduled for noon on Friday, September 7, at the San Diego Convention Center. At this meeting, the League membership considers and takes action on resolutions that establish League policy. In order to vote at the Annual Business Meeting, your city council must designate a voting delegate. Your city may also appoint up to two alternate voting delegates, one of whom may vote in the event that the designated voting delegate is unable to serve in that capacity. Please complete the attached Voting Delegate form and return it to the League's office no later than Wednesday, August 15, 2012. This will allow us time to establish voting delegate/alternates' records prior to the conference. Please note the following procedures that are intended to ensure the integrity of the voting process at the Annual Business Meeting. • Action by Council Required. Consistent with League bylaws, a city's voting delegate and up to two alternates must be designated by the city council. When completing the attached Voting Delegate form, please attach either a copy of the council resolution the reflects the council action taken or have your city clerk or mayor sign the form affirming that. the names provided are those selected by the city council. Please note that Conference Registration Required. The voting delegate and alternates must be registered to attend the conference. They need not register for the entire conference; they may register for Friday only. To register for the conference, please go to our website: www.cacities.ore. In order to cast a vote, at least one person must be present at the Business Meeting and in possession of the voting delegate card. Voting delegates and alternates need to pick up their conference badges before signing in and picking up -over- " 316 the voting delegate card at the Voting Delegate Desk. This will enable them to receive the special sticker on their name badges that will admit them into the voting area during the Business Meeting. • Transferring Voting Card to Non -Designated Individuals Not Allowed. The voting delegate card may be transferred freely between the voting delegate and alternates, but only between the voting delegate and alternates. If the voting delegate and alternates find themselves unable to attend the Business Meeting, they may not transfer the voting card to another city official. Seating Protocol during General Assembly. At the Business Meeting, individuals with the voting card will sit in a separate area. Admission to this area will be limited to those individuals with a special sticker on their name badge identifying them as a voting delegate or alternate. If the voting delegate and alternates wish to sit together, they must sign in at the Voting Delegate Desk and obtain the special sticker on their badges. The Voting Delegate Desk, located in the conference registration area of the San Diego Convention Center, will be open at the following times: Wednesday, September 5, 9:00 a.m, — 6:30 p.m,; Thursday, September 6, 7:00 a.m, — 4:00 p.m.; and September 7, 7:30-10:00 a.m, The Voting Delegate Desk will also be open at the Business Meeting on Friday, but not during a roll call vote, should one be undertaken. The voting procedures that will be used at the conference are attached to this memo. Please share these procedures and this memo with your council and especially with the individuals that your council designates as your city's voting delegate and alternates. Once again, thank you for completing the voting delegate and alternate form and returning it to the League office by Wednesday, August 15. If you have questions, please call Mary McCullough at (916) 658-8247. Attachments: • 2012 Annual Conference Voting Procedures Voting Delegate/Alternate Form 317 LEAGUE 1400 K Street, Suite 400 • Sacramento, California 95814 Phone: 916.658.8200 Fax: 916.658.8240 OF CAL1FOltN[A www.cacities.org LIECITIES Annual Conference Voting Procedures 2012 Annual Conference 1. One City One Vote. Each member city has a right to cast one vote on matters pertaining to ;...League policy. . 2. Designating a City Voting Representative. Prior to the Annual Conference, each city council may designate a voting delegate and up to two alternates; these individuals are identified on the Voting Delegate Form provided to the League Credentials Committee, 3. Registering with the Credentials Committee. The voting delegate, or alternates, may pick up the city's voting card at the Voting Delegate Desk in the conference registration area. Voting delegates and alternates must sign in at the Voting Delegate Desk. Here they will receive a special sticker on their name badge and thus be admitted to the voting area at the Business Meeting. 4. Signing Initiated Resolution Petitions. Only those individuals who are voting delegates (or alternates), and who have picked up their city's voting card by providing a signature to the Credentials Committee at the Voting Delegate Desk, may sign petitions to initiate a resolution. 5. Voting. To cast the city's vote, a city official must have in his or her possession the city's voting card and be registered with the Credentials Committee. The voting card may be transferred freely between the voting delegate and alternates, but may not be transferred to another city official who is neither a voting delegate or alternate. 6. Voting Area at Business Meeting. At the Business Meeting, individuals with a voting card will sit in a designated area. Admission will be limited to those individuals with a special sticker on their name badge identifying them as a voting delegate or alternate. 7. Resolving Disputes. In case of dispute, the Credentials Committee will determine the validity of signatures on petitioned resolutions and the right of a city official to vote at the Business Meeting. �18 LEAGUE OF CALIFORNIA CITIES CITY: 2012 ANNUAL CONFERENCE VOTING DELEGATE/ALTERNATE FORM Please complete this form and return it to the League office by Wednesday, August 15, 2012. Forms not sent by this deadline may be submitted to the Voting Delegate Desk located in the Annual Conference Registration Area. Your city council may designate one voting delegate and up to two alternates. In order to vote at the Annual Business Meeting (General Assembly), voting delegates and alternates must be designated by your city council. Please attach the council resolution as proof of designation, As an alternative, the Mayor or City Clerk may sign this form, affirming that the designation reflects the action taken by the council. Please note: Voting delegates and alternates will be seated in a separate area at the Annual Business Meeting. Admission to this designated area will be limited to individuals (voting delegates and alternates) who are identified with a special sticker on their conference badge. This sticker can be obtained only at the Voting Delegate Desk. 1. VOTING DELEGATE Name: Title: 2. VOTING DELEGATE - ALTERNATE 3. VOTING DELEGATE - ALTERNATE Name: Title: Title: PLEASE ATTACH COUNCIL RESOLUTION DESIGNATING VOTING DELEGATE AND ALTERNATES. OR ATTEST: I affirm that the information provided reflects action by the city council to designate the voting delegate and alternate(s). Name: E-mail Mayor or City Clerk Phone: (circle one) (signature) Date: Please comnlete and return by Wednesday. August 15t1', to: League of California Cities ATTN: Mary McCullough 1400 K Street Sacramento, CA 95814 FAX: (916) 658-8240 E-mail: tnmccullough@cacities.org (916) 658-8247 319 T-af 4 4 a" CITY / SA / HA / FA MEETING DATE: July 3, 2012 AGENDA CATEGORY: ITEMTITLE: Discussion of SilverRock Resort Vision and BUSINESS SESSION: Options CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: RECOMMENDATION: Provide staff with direction regarding City Council's vision for SilverRock Resort ("SRR"), and engaging entities in discussions regarding SRR development opportunities. FISCAL IMPLICATIONS: None; the activities proposed are contained with the Fiscal Year 2012/2013 Economic Development Plan and will consist primarily of staff time, which is funded in the Fiscal Year 2012/2013 budget. CHARTER CITY IMPLICATIONS: The City Charter and its principles of "home rule" allow the City sufficient flexibility to undertake economic development activities. The Charter allows the City "to utilize revenues from the General Fund to encourage, support, and promote economic development." BACKGROUND AND OVERVIEW: Introduction Over the past year, there has been increasing developer interest in SRR. Staff has met with several developers who have presented various ideas and concepts, including hotel, timeshare, residential, convention, golf, retail, and other types of development. In addition, staff believes SRR provides a prime opportunity for partnerships with various community stakeholders and event organizers, such as Humana Health Care, AEG, La Quinta Arts Foundation, Thermal Motorsports Park, and others. There are likely numerous opportunities or events that may ties into or complement future development at SRR. 16 320 Staff is seeking Council input on two items related to SRR; first, their vision for SRR — whether the original master plan guiding principles are still desirable, or if Council would like to take SRR in a different direction; second, using these guiding principles, allow staff to engage in detailed discussions with those entities that have expressed interest and to seek out and engage other entities that may be interested in SRR development opportunities. Purpose of SRR Acquisition The former La Quinta Redevelopment Agency purchased SRR in 2002 — the Agency's mission was to create long term, recurring economic returns for the community. This would be accomplished by building championship golf courses, which would then attract private resort hotel/hospitality/retail development to generate TOT and sales tax, and enhance property tax values. Another benefit is La Quinta residents get to enjoy a top-notch golf and recreation experience at a reduced rate. Planning Documents SRR development is currently guided by a Master Plan (originally adopted in 2003, and revised in 2009-included as Attachment 1), the General Plan, and a Specific Plan. A majority of SRR is designated for Golf Course and Tourist Commercial uses. The Golf Course land use designation allows for both public and private golf courses and their associated ancillary uses; the Tourist Commercial designation allows resort hotels, multi -family resort residential casitas (revenue generating uses), recreational uses, conference centers and ancillary retail shops. The Specific Plan allows for the development of up to 1,160 hotel/resort residential (pure hotel, condominium hotel and fraction hotel) units and up to 160,000 square feet of commercial, restaurant and entertainment uses, as well as residential uses over first floor retail. The 35 acre parcel, located at the southwest corner of Jefferson Street and Avenue 52, is intended to be a passive use park. Special events such as public parking, automobile displays, art festivals, corporate events in conjunction with on -site hotels, and other similar activities are permitted subject to a temporary use permit. Funding The property was purchased and improved with a combination of tax-exempt bond proceeds, taxable bond proceeds, and accumulated non -housing tax increment. Land purchased with tax-exempt bond proceeds is limited to public uses (e.g., public golf, roadways, parks, etc.). Land purchased with taxable bond proceeds may be sold or leased for private development. The breakdown for SRR is as follows: Total acreage/uses (see graphic representation -Attachment 2): Private development pads = 85 acres Existing golf course = 188 acres Public uses = 252 acres 1. to 321 To date, total acquisition and Phase 1 and 2 improvement costs total $89.23 million .(see Attachment 3 for detail). The funding sources are: Tax-exempt bond proceeds = $61.15 million Taxable bond proceeds = $25.56 million Other funding sources = $ 2.52 million Outstanding Infrastructure Requirements at SilverRock Estimated costs to complete infrastructure are as follows: Wellsite dedication to CVWD (.up to 300 units/rooms built) $ 850,000 Wellsite dedication TO CVWD (over 300 units/rooms built) $ 850,000. Utilities to serve "Dog Bone" parcel $ 3.6 million Utilities to serve "South Area" hotel pads $ 5.0 million Canal Relocation $ TBD Further detail on infrastructure requirements/costs is included as Attachment 4. Available Funding There is currently $9.1 million reserved for canal and infrastructure improvements. These are tax-exempt bond proceeds, which can only be used for public improvement purposes. In order to ensure compliance with ABx1 26, staff may request that the Oversight Board approve the use of these bond proceeds to SSR infrastructure costs at its July 18, 2012 meeting. However, if the budget trailer bill passes, this may not be necessary, as the bill contains provisions authoring the use of pre-201 1 bond proceeds with some limitations. The City Attorney is currently studying the implications of the bill. Developer Interest In 2006, after an extensive Request for Qualifications (RFQ) process, the Agency Board approved a Disposition & Development Agreement (DDA) with Lowe Enterprises. Per the DDA, Lowe was to develop up to 710 boutique and resort hotel rooms, 81,000 square feet of resort commercial uses, a 7,500 square foot black box theater/conference facility, and related amenities. However, due to the economic downturn, financing for condominium hotel ownership collapsed and Lowe could not secure permanent lender financing commitments; therefore, the DDA was terminated in November 2009. The struggling economy further diminished development interest. However, staff has recently fielded many phone inquiries, and has met with several interested parties who have proposed a variety of concepts, as noted below. • Beverly Park Development Group - Extremely high -end hotel and spa development that includes a small convention facility; an exclusive residential component would be included to help finance the hotel; this `" 322 concept has the resort hotel being developed first. • Dick Hughes - Working with Tiger Woods Golf Course Design and possibly Discovery Land on golf/hotel concepts. • Polo Brown Company - A boutique hotel with restaurant, lounge, and meeting space along with an international golf school. • William Swank - A vacation ownership resort, similar to the WorldMark Club in Indio. • Lewis Group of Companies - Primarily interested in retail component. • The Athens Group - Competed and scored highly in 2006 RFP process; still interested in SRR development, but are currently working on other projects. Other concepts discussed have included golf teaching facilities, health, wellness, and spa facilities; a small-scale music venue; pure residential development; and outdoor recreation facilities. Staff plans to talk further with these and other interested developers to gather their ideas, to gauge development feasibility, to find developers who share the Council's vision, are creative and understand current and future trends, and have the financial backing necessary for future SilverRock development. Our bottom line is to partner with a development entity or entities who can demonstrate they have the equity resources to underwrite SRR development. Staff is seeking Council input on two items related to SRR; first, their vision for SRR - whether the original master plan guiding principles are still desirable, or if Council would like to take SRR in a different direction; second, using these guiding principles, allow staff to engage in detailed discussions with those entities that have expressed interest and to seek out and engage other entities that may be interested in SRR development opportunities. Respectfully submitted, Debbie Powell Economic Development/Housing Manager 323 Approved for Manager Attachments: 1. 2009 Master Plan 2. Land Use Graphic 3. Funding Summary 4. Outstanding Infrastructure Requirements -Detail 324 ATTACHMENT 2 Avenue 52 Avenue 54 Planning Area 1: Public Goff Course Planninc Area 2: Civic and Cultural Events Facilities Planning Area 3: Boutique Hotel Planning Area 4: Resort Hotel and Resort Casffes Private Development Pads Planning Area 6: Wmd-Use Reach Retal Village Mannino Area 6- Traditional Hotel and Resat Casilas Planning Area 7: Public Padc Planning Arm 8: Public Facilities 326 ATTACHMENT Phase 1 SILVERROCK RESORT LAND ACQUISITION IMPROVEMENTS SUBTOTAL Phase 2 Phase 1 - Closed Expended SILVERROCK RESORT GOLF COURSE PHASE II SILVERROCK RESORT CLUB HOUSE SILVERROCK RESORT INFRASTRUCTURE SILVERROCK RESORT ENTRY FEATURE & ROADS SUBTOTAL RDA i RDA 1 TAXABLE 2003 RDA 2 GENERAL AB939 TRANSPORTATION 36' RDA 1 Tax Exempt Bonds 42.811,967 42.413,984 85,025,951 85,025,951 Phase 2 Through June 30,2011 Phase 1 and 2 Expended Expended 85,025,951 423,995 423,995 2,092,239 2,092,239 1,521.403 1,521,403 159,043 159,043 4,196,679 4,196,679 4,190,679 89,222,630 82,83% 56,953,929 66.98% 4,196,679 100.00% 61,150,608 68.54% 15,64% 25.560,823 30.06% 0.00% 25,660,823 28.65% 0.93% 1,512.445 1.78% 0.00% 1.512,445 1.70% 0.31% 500.000 0.59% - 0,00% 500,000 0,56% 0.01% 8,754 0.01% - 0.00% 8,754 0.01% 0.30% 490,000 0.58% - 0.00% 490,000 0.55% 100.00% 85,025,951 100.00% 4,196,679 100.00% 69.222.630 100.00% 1998 3,567,171 2001 38,633,764 2002 18 940.673 61,150,608 `" 327 ATTACHMENT 4 Outstanding Infrastructure Requirements at SilverRock - Detail CVWD Agreement The remaining infrastructure work required for build out of SilverRock Resort is largely contained in the Domestic Water and Sanitation System Installation Agreement the RDA entered into with Coachella Valley Water District in 2005. Domestic water and sewer improvements are tied either to the number of units developed or, for water, by fire flow requirements on each of the private development pads. Dedication and/or construction of future well sites is tied both to the number of units as well to the amount of acreage that is developed at SRR. To date the City has dedicated five of the six mitigation well sites required and has built the backbone water and sewer improvements from Avenue 52 to the cul-de- sac on SilverRock Way just past Ahmanson Lane. Under either development scenario described below, CVWD would require the City to construct a fully improved well site (i.e., dedicated well site plus installed well) adding approximately $850,000 to the cost of the project. A second fully developed well site would be required if more than 300 units were constructed. "Dog Bone" Infrastructure Requirements and Cost In order to develop the Dog Bone parcel surrounded by the existing front nine holes of the golf course, water and electrical systems would require a second connection to a trunk line to provide the development with the looped connection. Since water and electrical have been brought up to the eastern edge of the development site, the secondary connection would be necessary from the west end back into Avenue 52. In order to develop the Dog Bone parcel surrounded by the first nine holes of the golf course, water and electrical systems would have to be looped back from their current terminus in SilverRock Way through the site to Avenue 52. This requirement is to insure the site can receive water or power from two different locations. Since the closest sewer trunk line is in Jefferson Street, the existing sewer would have to be extended from the end of SilverRock Way past the future clubhouse, under the canal and east to Jefferson Street where the connection would be made across from the entrance to The Hideaway (Avenue 53). Similarly, gas service would have to be brought from Jefferson Street to the site. RBF estimates the total cost for the utilities, including water, sewer, gas and phone service to be $3.6 million, including design and construction management with a 20% contingency applied to construction costs. Additional costs could include upgrades required by IID in order to have them take over what is currently a private electrical system within SilverRock Way. 328 South Area Hotel Pad Infrastructure Requirements In order to develop the South Boutique Area pads adjacent to Avenue 54, CVWD would require dedication and construction of a domestic water pressure reducing station including water main work within Avenue 54 in addition to extending a water main from Avenue 54 past the development site to provide a looped connection into Jefferson via Avenue 53. Sewer would have to be extended from the site south to connect to the existing truck sewer in Avenue 54. Power, gas and phone service would all have to be extended from Jefferson Street as well. The total cost for these utilities is estimated by RBF to be $5 million including design, construction management with a 20% contingency applied to construction costs. Constructing the road from Avenue 54 to the site would cost an additional $1.4 million including a 15% contingency. Canal Relocation Project On March 6, 2012, the City Council approved a cost sharing agreement with CVWD for the design of the reconstruction of the Coachella Canal through SRR as either an underground pipe in the parkway of Jefferson Street and Avenue 54, or as a parallel open channel just west of the existing channel. The design is currently underway with 50% plans due for review in mid -July. Staff anticipates completion of the 70% plans in September or October, at which time costs for each option will be brought to the City Council for consideration before the final design option is chosen and design completed. CVWD hopes to complete environmental review within a year and start work as early as the spring/summer of 2013. The increase in cost of the underground pipe canal relocation option on either of the two development options described above is unknown at this time. There would be no additional cost to either development option if the parallel canal relocation option is chosen. 329 REPORT/INFORMATIONAL ITEM:, 17 INVESTMENT ADVISORY BOARD Meeting April 11, 2012 I CALL TO ORDER Regular meeting of the La Quinta Investment Advisory Board was called to order at the hour of 4:05 p.m. by Chairperson Spirtos followed by the Pledge of Allegiance. PRESENT: Board Members Mortenson, Blum, Spirtos, Park and Donais ABSENT: None OTHERS PRESENT: John Falconer, Finance Director and Vianka Orrantia, Senior Secretary 11 PUBLIC COMMENT - None III CONFIRMATION OF AGENDA - Confirmed Mr. Falconer requested that an amended copy of the Treasurers Report be added to the agenda. Board concurred. IV CONSENT CALENDAR A. Approval of Minutes of Meeting on March 14, 2012 for the Investment Advisory Board. MOTION - It was moved by Board Members Park/Mortenson to approve the Minutes of March 14, 2012. Motion carried unanimously. V BUSINESS SESSION A. Transmittal of Treasury Report for February 2012 Mr. Falconer presented and reviewed the staff report for the month of February advising the Board that the portfolio increased by $101,000 ending the month at $180.4 million. Mr. Falconer also reported due to the low -yielding money 4 330 market fund investments, staff reinvested the funds in Treasury Bills, which will be reflected in the March report. Mr. Falconer reported on the two major expenditures for the month of February which included $1.36 million paid to Burrtec Waste for trash and recycling services and $1.63 million paid to the Riverside County Sheriffs. Mr. Falconer also reported on the $591,000 that was paid toward capital improvement projects in addition to reporting on revenue that was received for TOT for the month totaling $507,000 as well as payments received from the County for vehicle and lieu fees in the amount of $1.5 million and Sales Tax reimbursement in the amount of $825,000 (Mr. Falconer noted that this payment is normally received in January, but was received this year in February). In response to Board Member Blum, Mr. Falconer advised on the status of the construction of the Adams Street Bridge. Mr. Falconer advised that the portfolio performance was two basis points higher than the prior month ending the month at .36% and the performance of the pooled cash investments ended the month at .49%. In response to Board Member Mortenson, Mr. Falconer advised of the status of the Redevelopment Agency and the formation of the Successor Agency and their responsibilities as an agency. General discussion ensued amongst the Board and staff in regards to the elimination of the Redevelopment Agency and the appointed members and responsibilities of the Successor Agency. MOTION — It was moved by Board Members to review, receive, and file the Treasurers Report for February 2012. Motion carried unanimously. B. Continued Consideration of Fiscal Year 2012/2013 Investment Policy and Work Plan Items Mr. Falconer presented a redlined draft of the Board's recommended changes from the previous meeting to the 2012/2013 Investment Policy. Mr. Falconer advised the Board that at this time staff had no recommended changes to the policy. Chairperson Spirtos advised that if the Board had no further recommended changes that the Board approve the Fiscal Year 2012/2013 Investment Policy as amended. Board concurred. 331 PA MOTION - It was moved by Board Members Mortenson/Blum to approve the Investment Policy for Fiscal Year 2012/2013 as amended and continue this item to the June Investment Advisory Board for discussion and review with the Interim City Manager and City Attorney. Motion carried unanimously. VI CORRESPONDENCE AND WRITTEN MATERIAL A. Month End Cash Report - March 2012 In response to Chairperson Spritos, Mr. Falconer clarified that the ACH credit reported in the Month -End Cash Report is an acronym for Automated Clearing House. He further clarified that institute/bank collects all ATM payments made daily through the City and credits back all funds collected. Mr. Falconer presented and reviewed the month -end cash report for the month of March. Noted and Filed B. Pooled Money Investment Board Reports - February 2012 Mr. Falconer presented and reviewed the Pooled Money Investment Report for the month of February. In response to Board Member Park, Mr. Falconer advised that the impact of the RDA's elimination has caused a slight decline in LAIF's balance. Noted and Filed VII BOARD MEMBER ITEMS Chairman Spirtos advised the Board of the upcoming City events as follows: April 13, 2012: La Quinta History Series - Third and final lecture series to be held at the City of La Quinta Museum, guest speakers will include Terry Henderson and Kay Wolff. Talent Showcase to be held at the La Quinta Senior Center April 28, 2012: City of La Quinta's 30' Anniversary and Community Picnic to be held at Fitz Burn's Park N. 332 3 In response to Board Member Donais, Mr. Falconer updated the Board on the status of the recruitment of the City Manager. General discussion ensued amongst the Board and staff regarding the City Manager's recruitment, as well as the status and recruitment of the Finance Director. VIII ADJOURNMENT MOTION - It was moved by Board Members Mortenson/Park to adjourn the meeting at 4:46YA .—motion carried unanimously. _....V Senior Secretary If 333 4 INVESTMENT ADVISORY BOARD Meeting May 9, 2012 I CALL TO ORDER Regular meeting of the La Quinta Investment Advisory Board was called to order at the hour of 4:00 p.m. by Chairperson Spirtos followed by the Pledge of Allegiance. PRESENT: Board Members Mortenson, Blum and Spirtos ABSENT: Board Member Park and Donais OTHERS PRESENT: John Falconer, Finance Director and Vianka Orrantia, Senior Secretary II PUBLIC COMMENT - None III CONFIRMATION OF AGENDA - Confirmed IV CONSENT CALENDAR 1. Approval of Minutes of Meeting on April 11, 2012 for the Investment Advisory Board. MOTION - It was moved by Board Members Blum/Mortenson to approve the Minutes of April 11, 2012. Motion carried unanimously. V BUSINESS SESSION A. Transmittal of Treasury Report for March 2012 Mr. Falconer presented and reviewed the staff report for the month of March advising the Board that the portfolio had decreased by $7.74 million ending the month at $172.94 million. The primary reason for the decrease was due to a debt service payment that was due on March 1" in the amount of $6.8 million, in addition to $2.5 million in Capital Improvement Projects. The projects consisted of $1.76 million for the Coral Mountain apartments and $302,000 for the Adams Street Bridge Project. Mr. Falconer also advised that the average maturity had increased by two days ending the month of March at 74 days. It 334 Mr. Falconer further advised on the purchase of two commercial paper pieces totaling $10 million and one Federal Home Loan Bank Discount Note totaling $9 million. The overall portfolio performance had a two basis point decrease from the prior month and ended the month at .35%. Mr. Falconer noted that at this time last year, the portfolio was yielding .45% which reflects the current interest rate environment. Mr. Falconer further noted that despite the low market rates, the City's portfolio continues to remain steady with current investments in Rabobank, LAIF and two-year T-Bill, but will see a decline in November upon maturity of the two-year T-Bill. In response to Board Blum, Mr. Falconer advised on the City's upcoming budget and the dissolution of the redevelopment agency's impact to the City's finances. General discussion ensued amongst the Board and staff regarding the City's budget. In response to Chairperson Spirtos, Mr. Falconer clarified that the capital projects funds listed on page 8 of the report represents "improvement" funds and developer deposits that have been collected for future capital projects. (Mr. Falconer noted that these funds are to report the capitalization of the City's assets according to GASB standards.) Mr. Falconer further clarified that the funds will remain until the completion of the projects, and/or future projects; and the City's requirements have been satisfied. In response to Chairperson Spirtos, Mr. Falconer advised that staff will review and make any necessary corrections accordingly to the T.O.T. for the month of August reflected on page 9 of the report and report back to the Board at'the next scheduled meeting. Chairperson Spirtos requested a title correction be made to page 8, first column, listed under revenues, Redevelopment Agency should now read Successor Agency to the Redevelopment Agency. MOTION - It was moved by Board Members Mortenson/Blum to review, receive, and file the Treasurers Report for March 2012. Motion carried unanimously. VI CORRESPONDENCE AND WRITTEN MATERIAL A. Month End Cash Report - April 2012 Mr. Falconer presented and reviewed the month -end cash report for the month of April advising the Board that the Wells Fargo SilverRock Resort Sweep 335 Account ended the month at $37,000 netting its first profit. He further advised that LAIF remained at 36 basis points and Treasuries slightly increasing in price. In response to Chairperson Spirtos, Mr. Falconer advised that the information for the Pooled Cash is derived from page 2 of the Treasurer's Report. Noted and Filed B. Pooled Money Investment Board Reports — March 2012 Noted and Filed VII BOARD MEMBER ITEMS General discussion ensued amongst the Board and staff regarding City's forecasting. Chairperson Spirtos reported on the City of La Quinta's birthday celebration and the proposed cuts to the City's budget. General discussion ensued amongst the Board and staff regarding "Gann" limits. Vill ADJOURNMENT MOTION - It was moved by Board Members Blum/Mortenson to adjourn the meeting at 4:54 p m--Agojon carried unanimously. Vianka Orrantia Senior Secretary 336 Department Report: 7 ti �W OFT4��� TO: The Honorable Mayor and Members of the City Council FROM: Les Johnson, Planning Director DATE: July 3, 2012 SUBJECT: General Plan Monthly Update The draft 2035 General Plan and supporting draft Environmental Impact Report (E►R) have been completed and are now being prepared for publication and distribution. In anticipation of the release, the Planning Department will be hosting an open house event to introduce the new General Plan to the public on Wednesday July 11, 2012 in the Study Session Room at City Hall from 3:00 p.m. to 5:00 p.m. and from 6:00 p.m. to 8:00 p.m. Planning staff will be presenting a number of stations and exhibits at the open house related to land use, traffic and circulation, and environmental sustainability. Everyone is welcome and encouraged to attend. The 45-day public comment period for the draft General Plan will begin the following day, July 12, 2012. Printed and digital copies will be made available at the Planning Department, the library, and for download online at www.lg2035.org. All Council Members will be provided a bound copy of the General Plan and draft Environmental Impact Report for their review. Should you have any comments or questions as you review these documents, please feel free to contact me. Following the conclusion of the public comment period, the draft General Plan and EIR will be brought forward for a recommendation by the Planning Commission in September, with final consideration to be made by the City Council in October. It 337