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2018 04 03 CC CITY COUNCIL AGENDA 1 APRIL 3, 2018 CITY COUNCIL AGENDA CITY HALL COUNCIL CHAMBERS 78-495 Calle Tampico, La Quinta REGULAR MEETING ON TUESDAY, APRIL 3, 2018 3:00 P.M. CLOSED SESSION | 4:00 P.M. OPEN SESSION CALL TO ORDER ROLL CALL: Councilmembers: Fitzpatrick, Peña, Radi, Sanchez, Mayor Evans PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA At this time, members of the public may address the City Council on any matter not listed on the agenda. Please complete a "Request to Speak" form and limit your comments to three minutes. The City Council values your comments; however in accordance with State law, no action shall be taken on any item not appearing on the agenda unless it is an emergency item authorized by GC 54954.2(b). CONFIRMATION OF AGENDA CLOSED SESSION 1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54956.8 FOR PROPERTY LOCATED ON HIGHWAY 111 EAST OF DUNE PALMS (APN 600-020-053) CITY NEGOTIATOR: CHRIS ESCOBEDO, ACTING CITY MANAGER NEGOTIATING PARTY: SUNRIDGE HOTEL GROUP UNDER NEGOTIATION: PRICE AND TERMS OF PAYMENT AND/OR DISPOSITION OF THE PROPERTY IDENTIFIED 2. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION: SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO PARAGRAPH (2) OR (3) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9 (NUMBER OF POTENTIAL CASES: 1) City Council agendas and staff reports are available on the City’s web page: www.LaQuintaCA.gov CITY COUNCIL AGENDA 2 APRIL 3, 2018 3. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54956.8 FOR THE PROPERTIES LISTED BELOW: CITY NEGOTIATOR: CHRIS ESCOBEDO, ACTING CITY MANAGER NEGOTIATING PARTIES: OWNERS AS LISTED BELOW UNDER NEGOTIATION: PRICE AND TERMS OF PAYMENT  46300 DUNE PALMS ROAD --- ENGLISH CONGREGATION OF JEHOVAH’S WITNESSES  46400 DUNE PALMS ROAD (PORTIONS) --- CHIN FAMILY PROPERTIES, LIMITED  46400 DUNE PALMS ROAD, UNIT 58 --- LETICIA ARIAS  46400 DUNE PALMS ROAD, UNIT 59 --- ALEJANDRO AND MARIA PREBOT  46400 DUNE PALMS ROAD, UNIT 82 --- MARIA C. MARRUFO  46400 DUNE PALMS ROAD, UNIT 83 --- JOSE AND IMELDA BENAVIDES  RECESS TO CLOSED SESSION RECONVENE AT 4:00 P.M. REPORT ON ACTIONS(S) TAKEN IN CLOSED SESSION PLEDGE OF ALLEGIANCE PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA At this time, members of the public may address the City Council on any matter not listed on the agenda. Please complete a "Request to Speak" form and limit your comments to three minutes. The City Council values your comments; however in accordance with State law, no action shall be taken on any item not appearing on the agenda unless it is an emergency item authorized by GC 54954.2(b). ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS 1. RECOGNITION – PROCLAMATION FOR DMV / DONATE FOR LIFE CALIFORNIA MONTH 2. CERTIFICATE OF APPRECIATION TO PAULA DEAL, C.E.R.T. AND POLICE VOLUNTEER CONSENT CALENDAR NOTE: Consent Calendar items are routine in nature and can be approved by one motion. PAGE 1. APPROVE MINUTES OF MARCH 20, 2018 7 2. EXCUSE ABSENCES FOR COMMISSIONER D. QUILL FROM THE APRIL 9, 2018 COMMUNITY SERVICES COMMISSION MEETING, AND COMMISSIONER P. QUILL FROM THE APRIL 10, 2018 PLANNING COMMISSION MEETING 15 CITY COUNCIL AGENDA 3 APRIL 3, 2018 3.ACCEPT ART DONATION FROM MELODY COHN 17 4. WITHDRAW THE AUTHORITY FOR CITY STAFF TO PARTICIPATE IN THE PUBLIC AUCTION FOR THE FORMER SAM’S CLUB BUILDING AND RE-ALLOCATE FUNDS TO GENERAL FUND UNASSIGNED RESERVES 21 5. APPROVE DEMAND REGISTERS DATED MARCH 16 AND 23, 2018 23 6. APPROVE REIMBURSEMENT AGREEMENT WITH THE COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS FOR DESIGN AND CONSTRUCTION OF THE WASHINGTON STREET INTERSECTION WITH FRED WARING DRIVE (PROJECT NO. 2017-01) 43 7. ACCEPT ON-SITE IMPROVEMENTS ASSOCIATED WITH THE MADISON CLUB RESIDENTIAL DEVELOPMENT (TRACT MAP NO. 33076-2) LOCATED SOUTH OF AVENUE 52, EAST OF MADISON STREET, AND WEST OF MONROE STREET 55 8. ADOPT A RESOLUTION TO AUTHORIZE THE CITY MANAGER TO EXECUTE A SIDE LETTER AGREEMENT WITH LA QUINTA CITY EMPLOYEE ASSOCIATION IMPLEMENTING THE CITY’S EMPLOYEE PERFORMANCE ONLY PAY PLAN [RESOLUTION NO. 2018-011] 59 9. ADOPT A RESOLUTION TO RECLASSIFY VARIOUS POSITIONS [RESOLUTION NO. 2018-012] 65 BUSINESS SESSION 1. APPROVE AMENDMENT NO. 3 TO THE FACILITY USE AGREEMENT WITH THE LA QUINTA ARTS FOUNDATION EXTENDING THE TERM TO 2019 FOR THE ANNUAL ARTS FESTIVAL 75 2.APPROVE MULTI-AGENCY PARTICIPATING AGREEMENT FOR COACHELLA VALLEY REGIONAL TRAFFIC SIGNAL SYNCHRONIZATION PROGRAM BETWEEN COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS AND PARTICIPATING CITIES OF LA QUINTA, CATHEDRAL CITY, DESERT HOT SPRINGS, COACHELLA, RANCHO MIRAGE, INDIAN WELLS, INDIO, PALM DESERT, PALM SPRINGS, AND THE COUNTY OF RIVERSIDE 83 3. ADOPT A RESOLUTION TO APPROVE A DEBT MANAGEMENT POLICY [RESOLUTION NO. 2018-013] 95 4. ADOPT A RESOLUTION TO APPROVE REVISIONS TO THE CITY’S PURCHASING AND CONTRACTING POLICY [RESOLUTION NO. 2018-014] 109 CITY COUNCIL AGENDA 4 APRIL 3, 2018 STUDY SESSION 1. DISCUSS PICKLEBALL COURTS PLACEMENT 133 2. DISCUSS SENATE BILL 1 FUNDS FOR ROAD MAINTENANCE AND REHABILITATION ACT 135 3. DEVELOPMENT SERVICES 2018 UPDATED 141 4. DISCUSS RESERVE POLICY ANALYSIS REPORT AND FINDINGS 151 PUBLIC HEARINGS – NONE DEPARTMENTAL REPORTS 1. CITY MANAGER 2. CITY ATTORNEY 3. CITY CLERK 4. COMMUNITY RESOURCES 5. DESIGN AND DEVELOPMENT 6. FACILITIES 7. FINANCE MAYOR’S AND COUNCIL MEMBERS’ ITEMS REPORTS AND INFORMATIONAL ITEMS 1. CVAG COACHELLA VALLEY CONSERVATION COMMISSION (Evans) 2. CVAG ENERGY AND ENVIRONMENTAL RESOURCES COMMITTEE (Evans) 3. CVAG EXECUTIVE COMMITTEE (Evans) 4. GREATER PALM SPRINGS CONVENTION AND VISITORS BUREAU (Evans) 5. LEAGUE OF CALIFORNIA CITIES DELEGATE (Evans) 6. COACHELLA VALLEY WATER DISTRICT JOINT POLICY COMMITTEE (Evans) 7. SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS (Evans) 8. ECONOMIC DEVELOPMENT SUBCOMMITTEE (Evans & Radi) 9. COACHELLA VALLEY MOUNTAINS CONSERVANCY (Fitzpatrick) 10. DESERT RECREATION DISTRICT COMMITTEE (Fitzpatrick and Radi) 11. COACHELLA VALLEY UNIFIED SCHOOL DISTRICT COMMITTEE (Fitzpatrick and Peña) 12. CHAMBER OF COMMERCE INFO EXCHANGE COMMITTEE (Fitzpatrick) 13. RIVERSIDE COUNTY TRANSPORTATION COMMISSION (Fitzpatrick) 14. SILVERROCK EVENT SITE AD HOC COMMITTEE (Fitzpatrick) 15. CANNABIS AD HOC COMMITTEE (Peña and Sanchez) 16. CVAG PUBLIC SAFETY COMMITTEE (Peña) 17. EAST VALLEY COALITION (Peña) 18. CVAG VALLEY-WIDE HOMELESSNESS COMMITTEE (Peña) 19. JACQUELINE COCHRAN REGIONAL AIRPORT AUTHORITY (Peña) CITY COUNCIL AGENDA 5 APRIL 3, 2018 20. LEAGUE OF CALIFORNIA CITIES – PUBLIC SAFETY POLICY COMMITTEE (Peña) 21. COACHELLA VALLEY ECONOMIC PARTNERSHIP (Radi) 22. CVAG TRANSPORTATION COMMITTEE (Radi) 23. SUNLINE TRANSIT AGENCY (Radi) 24. CITYWIDE SECURITY CAMERAS AD HOC COMMITTEE (Radi) 25. DESERT SANDS UNIFIED SCHOOL DISTRICT COMMITTEE (Radi and Sanchez) 26. ANIMAL CAMPUS COMMISSION (Sanchez) 27. IID ENERGY CONSUMERS’ ADVISORY COMMITTEE (Sanchez) 28. LEAGUE OF CALIFORNIA CITIES/TRANSPORTATION & LABOR POLICY (Sanchez) ADJOURNMENT ********************************* The next regular meeting of the City Council will be held on April 17, 2018, at 4:00 p.m. at the City Hall Council Chambers, 78495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, Susan Maysels, 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 City’s website, near the entrance to the Council Chambers at 78495 Calle Tampico, and the bulletin boards at the Stater Brothers Supermarket at 78630 Highway 111, and the La Quinta Cove Post Office at 51321 Avenida Bermudas, on March 30, 2018. DATED: March 30, 2018 SUSAN MAYSELS, 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, arrangements should be made in advance by contacting the City Clerk’s office at 777- 7103. A one (1) week notice is required.  If background material is to be presented to the Councilmembers during a City Council meeting, please be advised that eight (8) copies of all documents, exhibits, etc., must be supplied to the City Clerk for distribution. It is requested that this take place prior to the beginning of the meeting. CITY COUNCIL AGENDA 6 APRIL 3, 2018  Any writings or documents provided to a majority of the City Council regarding any item(s) on this agenda will be made available for public inspection at the Community Development counter at City Hall located at 78-495 Calle Tampico, La Quinta, California, 92253, during normal business hours. CITY COUNCIL MINUTES Page 1 of 8 MARCH 20, 2018 CITY COUNCIL MINUTES TUESDAY, MARCH 20, 2018 CALL TO ORDER A regular meeting of the La Quinta City Council was called to order at 3:00 p.m. by Mayor Evans. PRESENT: Councilmembers Fitzpatrick, Peña, Radi, Sanchez, Mayor Evans ABSENT: None PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None CONFIRMATION OF AGENDA City Manager Spevacek said he would like to pull Business Session Item No. 2 from the agenda and bring it back for Council consideration at a future meeting, once all discussion items have been finalized. Councilmember Radi said he would like to comment on Consent Calendar Item No. 7. Councilmember Sanchez stated he has a conflict of interest and will recuse himself from discussion and vote on Closed Session Item No. 3 due to a potential business relationship and source of income. Councilmember Sanchez said he has a conflict of interest and will abstain from discussion and vote on Consent Calendar Item No. 7 due to the project’s proximity to real property; this item will be pulled for a separate vote. Council concurred. CLOSED SESSION 1. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54957.6; CITY DESIGNATED REPRESENTATIVE: CHRIS ESCOBEDO, COMMUNITY RESOURCES DIRECTOR; AND EMPLOYEE ORGANIZATION: LA QUINTA CITY EMPLOYEES ASSOCIATION 2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54956.8 FOR PROPERTY LOCATED AT 77895 CALLE MONTEZUMA (APN 773-101-005); CITY NEGOTIATOR: FRANK J. SPEVACEK, CITY MANAGER CONSENT CALENDAR ITEM NO. 1 7 CITY COUNCIL MINUTES Page 2 of 8 MARCH 20, 2018 PROPERTY OWNER: STRATEGIC ACQUISITIONS, INC./DLI PROPERTIES UNDER NEGOTIATION: PRICE AND TERMS OF PAYMENT AND/OR DISPOSITION OF THE PROPERTY IDENTIFIED 3. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO PARAGRAPH (2) OR (3) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9 (NUMBER OF POTENTIAL CASES: 1) COUNCIL RECESSED THE OPEN SESSION PORTION OF THE MEETING AND MOVED INTO CLOSED SESSION AT 3:03 P.M. MAYOR EVANS RECONVENED THE OPEN SESSION PORTION OF THE CITY COUNCIL MEETING AT 4:00 P.M. WITH ALL MEMBERS PRESENT. REPORT ON ACTION(S) TAKEN IN CLOSED SESSION: City Attorney Ihrke reported no actions were taken in Closed Session that require reporting pursuant to Government Code section 54957.1 (Brown Act). He noted, Councilmember Sanchez recused himself from discussion and vote on Closed Session Item No. 3 and left the room due to a conflict of interest stemming from a potential source of income. PLEDGE OF ALLEGIANCE Mayor Pro Tem Fitzpatrick led the audience in the pledge of allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA PUBLIC SPEAKER: Mr. Edgar Castro, Public Outreach Coordinator for the Coachella Valley Mosquito and Vector Control District (CVMVCD) – said CVMVCD was hosting the 3rd annual “Fight the Bite” 5K on Saturday, March 24, 2018, at 8:00 a.m., in Rancho Mirage; the goal is to raise awareness of potential mosquito-related threats and viruses to valley residents; and asked Council for their support, participation, and assistance in promoting the race. PUBLIC SPEAKER: Ms. Rod Wilson, La Quinta – said Griffin Ranch residents have been experiencing issues with horse manure filth flies due to unmaintained neighboring pastures at the polo grounds. He asked Council for 1) an effective and efficient corrective action plan to get the pastures cleared and to ensure they are cleared daily; and 2) a preventative action plan to ensure this situation does not happen again, and the officers inspecting the property are familiar with the City’s municipal code and are enforcing it if warranted. 8 CITY COUNCIL MINUTES Page 3 of 8 MARCH 20, 2018 PUBLIC SPEAKER: Mr. Debra Wilson, La Quinta – spoke about the issues she had experienced dealing with the filth flies surrounding her property due to the unmaintained neighboring horse pastures; and provided a verbal detailed timeline of communications between Mr. and Mrs. Wilson with the City, between July 2017 through March 2018, and the steps taken to try to resolve this issue; she asked Council for their assistance in finding a resolution. PUBLIC SPEAKER: Garry Brooks, President of the Griffin Ranch Homeowner Association – spoke of the horse manure firth flies issue Griffin Ranch home-owners are experiencing; asked that the officers check-up visits are unannounced; thanked Council for the opportunity to speak about this issue; and urged Council for assistance in getting this matter resolved. PUBLIC SPEAKER: Pete Dittemore, La Quinta – said a lot of his concerns were already mentioned by his neighbors, Mr. and Mrs. Wilson, and Mr. Brooks; noted that horses raised in an equestrian overlay district are to be for personal use only and asked if there is a way to verify the use of the animals at the polo property; and asked Council for assistance in getting the matter resolved. PUBLIC SPEAKER: Shelly Jordan, Project Manager with Lennar Homes and builder of the Griffin Ranch residential community – spoke about the unmaintained horse pasture neighboring Griffin Ranch to the east; the nuisance of dealing with filth flies due to improper disposal of horse manure; potential health concerns due to the diseases the flies carry; asked Council to implement a corrective action plan to ensure that the horse pasture property to the east is in compliance with the City’s equestrian overlay district regulations, particularly regulation no. 5 as it relates to manure collection and disposal; thanked staff for their efforts so far to bring the property into compliance; and asked Council to continue to put pressure on the owners of the unmaintained property until it is fully in compliance. PUBLIC SPEAKER: Kevin Prosser, La Quinta – said he is a homeowner and also runs the Lennar sales office at the Griffin Ranch development; spoke about the filth flies issues Griffin Ranch was experiencing; and asked Council to ensure that the owners of the horse pastures to the east bring their property into compliance as soon as possible. PUBLIC SPEAKER: Randy Rounds, La Quinta – Mayor Evans said Mr. Rounds was unable to attend the meeting, but had submitted a Request to Speak Form requesting that Simon Drive be named and dedicated to fallen Deputy Bruce Lee. Due to the contributions and involvement of the Simon family with La Quinta, including Saint Francis of Assisi, she suggested that possibly a different street in the City could be considered for this request. Mr. Rounds will speak at the next Council meeting. 9 CITY COUNCIL MINUTES Page 4 of 8 MARCH 20, 2018 ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS 1. PRESENT VOLUNTEER OF THE YEAR AWARD FROM CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS (CSMFO) Mr. Isaiah Hagerman, CPA, Director of Administrative Services with the City of Rancho Mirage and Co-Chair of CSMFO, presented Finance Director Karla Campos with the 2017 CSMFO Volunteer of the Year award; he commended Mrs. Campos for her time, dedication, and leadership to promote professional development; mentorship; and succession planning in La Quinta and in many other organizations in the Coachella Valley. 2. INTRODUCE NEW LA QUINTA LIBRARY BRANCH MANAGER, ELIZABETH (LISA) BAIZ Ms. Sue Duran, former La Quinta Library Manager spoke about the many different programs and events the library facilitated under her guidance; thanked the Council and staff for their participation and support; introduced the new La Quinta Library Branch Manager Lisa Baiz; and noted Ms. Baiz experience and qualifications. CONSENT CALENDAR 1. APPROVE MINUTES OF SPECIAL MEETING OF FEBRUARY 27, 2018 2. APPROVE MINTUES OF MARCH 6, 2018 3. ADOPT A RESOLUTION TO CERTIFY MITIGATED NEGATIVE DECLARATION FOR THE EISENHOWER DRIVE RETENTION BASIN PROJECT NO. 2015-12B LOCATED AT THE NORTHWEST CORNER OF EISENHOWER DRIVE AND AVENIDA FERNANDO [RESOLUTION NO. 2018-010] 4. AUTHORIZE OVERNIGHT TRAVEL FOR MARKETING AND COMMUNICATIONS SUPERVISOR TO ATTEND CALIFORNIA TRAVEL ASSOCIATION SUMMIT 2018 IN SAN DIEGO, CALIFORNIA, MAY 30 – JUNE 1, 2018 5. APPROVE DEMAND REGISTERS DATED MARCH 2 AND 9, 2018 6. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORTS DATED JANUARY 31, 2018 7. ACCEPT NORTH LA QUINTA PARKWAY TURF CONVERSION PROJECT LOCATED AT THE ACACIA DEVELOPMENT ON THE NORTH SIDE OF MILES AVENUE BETWEEN VIA ROSA AND NORTH HARLAND DRIVE (PROJECT NO. 2016-03B) 10 CITY COUNCIL MINUTES Page 5 of 8 MARCH 20, 2018 8. APPROVE AMENDMENT NO. 1 TO AGREEMENT WITH JNS MEDIA SPECIALISTS FOR MARKETING SERVICES 9. EXCUSE ABSENCE FOR HOUSING COMMISSIONER DAVIDSON FROM THE HOUSING COMMISSION MEETING OF MARCH 14, 2018 Councilmember Sanchez said he has a conflict of interest and will abstain from voting on Consent Calendar Item No. 7 due to the project’s proximity to real property. Councilmember Radi said Consent Calendar Item No. 7 was the first section of the reconditioning of the north La Quinta parkways made possible in large part by Measure G revenues; thanked staff for their efforts and commitment in addressing residents’ concerns who were now extremely pleased with the improvements; the project was completed under budget and before the proposed timeline. MOTION – A motion was made and seconded by Councilmembers Fitzpatrick/Peña to approve the Consent Calendar Item Nos. 1-6, 8, and 9 as recommended, with Item No. 3 adopting Resolution No. 2018-010. Motion passed unanimously. MOTION – A motion was made and seconded by Councilmembers Radi/Peña to approve the Consent Calendar Item No. 7. Motion passed: ayes 4, noes 0, abstain 1 (Sanchez). BUSINESS SESSION 1. APPROVE AN AGREEMENT WITH VOCADEMY TO PURCHASE EQUIPMENT, CURRICULUM AND TRAINING FOR THE LA QUINTA MAKERSPACE; AND APPROVE THE FIRST AMENDMENT TO THE MEMORANDUM OF UNDERSTANDING WITH THE COUNTY OF RIVERSIDE LIBRARY SYSTEMS FOR MAKERSPACE OPERATIONS. Business Analyst Tustin Larson presented the staff report, which is on file in the Clerk’s Office. PUBLIC SPEAKER: Mr. Gene Sherman, founder and CEO of Vocademy – thanked the Council for their support, innovative vision, and transforming the community by bringing MakerSpace to La Quinta, the first in the Coachella Valley, a place where the millennials have an opportunity to create and make things. Council commended Mr. Sherman’s passion, enthusiasm, and commitment to this project. Council discussed collaboration with all local teachers and offering moonlight opportunities; software and equipment to be used and associated costs; learning curve and class schedules; types of materials that can be used to print and surfacing 11 CITY COUNCIL MINUTES Page 6 of 8 MARCH 20, 2018 capabilities; no metal printing available on site; estimated annual supply cost of $15,000, ability for the users to purchase their own, pre-approved, materials from local stores, and ability for the City to partner with local stores for material donations; nominal initial investment; differentiating between a student and a hobbyist; offering the community an opportunity to learn new skills; room configuration; 28 people maximum occupancy for the proposed space; safety precautions; age restrictions; best practices; private bookings and group events; team building; space constraints and opportunities to expand in the future; the multitude of third-party printing materials and shipping options available; and start-up user fees. MOTION – A motion was made and seconded by Councilmembers Radi/Fitzpatrick to approve agreement with Vocademy to purchase equipment, curriculum and training for the La Quinta makerspace; approve Amendment No. 1 to the Memorandum of Understanding with the County of Riverside library services for MakerSpace operations; and authorize the City Manager to execute the agreements. Motion passed unanimously. 2. pulled off the agenda >>> APPROVE THE THIRD AMENDMENT AND RESTATEMENT OF THE JOINT POWERS AGREEMENT OF THE COACHELLA VALLEY ASSOCIATIO OF GOVERNMENTS At Confirmation of Agenda City Manager Spevacek pulled Business Session Item No. 2 off the agenda and said it would be brought back for Council consideration at a future meeting, once all discussion items have been finalized. 3. APPROVE AMENDED RELOCATION PLAN FOR WASHINGTON STREET APARTMENTS Development Consultant Jon McMillen presented the staff report, which is on file in the Clerk’s Office. In response to Councilmember Peña, Mr. McMillen said that a special rate has been negotiated with Homewood Suites, and because the tenants’ stay will exceed 30 days, Transient Occupancy Tax will not be added to the rate. MOTION – A motion was made by Councilmembers Fitzpatrick, and seconded by all remaining Councilmembers in unison to approve the Amended Relocation Plan for Washington Street Apartments; and authorize the City Manager to submit this plan to the State Department of Housing and Community Development. Motion passed unanimously. 12 CITY COUNCIL MINUTES Page 7 of 8 MARCH 20, 2018 STUDY SESSION 1.DISCUSS WELLNESS CENTER ANNUAL FITNESS MEMBERSHIP FEES Community Resources Manager Calderon presented the report, which is on file in the City Clerk’s Office. Council discussed plans for new recreation software; extended hours of operation implemented; automatic annual renewal of membership; membership rates for residents versus non-residents; increasing non-resident membership fees; proportion of non-resident members; adjusting the $5 daily rate; use of the Wellness Center by La Quinta Resort guests; exploring weekly, seasonal, and multi-year rates; the planned rate increases by neighboring Desert Recreation District facility; age and life of Center equipment; affordability for seniors; importance of maintaining superior quality; and, partnering with or accepting sponsorships from local hotels and country clubs. The consensus of the Council was to increase resident rates to $75 per year, and asked staff to return with additional information on weekly, seasonal and multi-year rates, as well as cost recovery data at which time, the Council will consider an appropriate increase to non-resident rates. PUBLIC HEARINGS – None DEPARTMENTAL REPORTS All reports are on file in the City Clerk’s Office. MAYOR’S AND COUNCIL MEMBERS’ ITEMS Councilmember Radi described an American Association of Retired Persons video report about fraud and means of protection against it. He stated that this was valuable information for residents and suggested that staff arrange for the video to be aired at the Library and/or Museum in collaboration with the Police Department. Mr. Radi also reported that he attended the event honoring Mary Helen Kelly as La Quinta’s representative. Councilmember Sanchez reported that he ran the New York City half marathon as La Quinta’s representative. Councilmember Fitzpatrick reported that she represented the Mayor at the Veterans of Foreign War Post 3699 dinner honoring a La Quinta resident, and at a High School Women’s health and wellness event. Mayor Evans displayed a crystal bowl awarded to the City by the Life Stream organization in recognition of its participation in the nine cities blood donation challenge, which will be held on July 14th this year. She also reported on attendance 13 CITY COUNCIL MINUTES Page 8 of 8 MARCH 20, 2018 at the opening of the Loma Linda Children’s Clinic in Indio where she presented a proclamation from the City of La Quinta; Supervisor Perez’ meet and greet at the Wellness Center; and, Cathedral City’s State of the City event. REPORTS AND INFORMATIONAL ITEMS La Quinta’s representative for 2018, Mayor Evans reported on her participation in the following organization’s meeting:  GREATER PALM SPRINGS CONVENTION AND VISITORS BUREAU La Quinta’s representative for 2018, Councilmember Fitzpatrick reported on her participation in the following organizations’ meetings:  COACHELLA VALLEY MOUNTAINS CONSERVANCY  DESERT RECREATION DISTRICT COMMITTEE (Fitzpatrick & Radi)  RIVERSIDE COUNTY TRANSPORTATION COMMISSION  SILVERROCK EVENT SITE AD HOC COMMITTEE La Quinta’s representative for 2018, Councilmember Peña reported on his participation in the following organization’s meeting:  EAST VALLEY COALITION La Quinta’s representative for 2018, Councilmember Radi reported on his participation in the following organizations’ meetings:  DESERT SANDS SCHOOL DISTRICT COMMITTEE  DESERT RECREATION DISTRICT COMMITTEE La Quinta’s representative for 2018, Councilmember Sanchez reported on his participation in the following organization’s meeting:  LEAGUE OF CALIFORNIA CITIES TRANSPORTATION & LABOR POLICY COMMITTEE ADJOURNMENT There being no further business, a motion was made and seconded by Councilmembers Peña/Fitzpatrick to adjourn at 6:24 p.m. Motion passed unanimously. Respectfully submitted, MONIKA RADEVA, Deputy City Clerk City of La Quinta, California 14 City of La Quinta CITY COUNCIL MEETING: April 3, 2018 STAFF REPORT AGENDA TITLE: EXCUSE ABSENCES FOR COMMISSIONER QUILL FROM THE APRIL 9, 2018, COMMUNITY SERVICES COMMISSION MEETING AND COMMISSIONER QUILL FROM THE APRIL 10, 2018, PLANNING COMMISSION MEETING RECOMMENDATION Excuse absences for Commissioner Dori Quill from the April 9, 2018, Community Services Commission meeting and Commissioner Paul Quill from the April 10, 2018, Planning Commission meeting. EXECUTIVE SUMMARY Commissioner Dori Quill requested to be excused from the April 9, 2018, Community Services Commission meeting due to a personal matter. She has 1 prior excused absence since her appointment in June 2016. Commissioner Paul Quill requested to be excused from the April 10, 2018, Planning Commission meeting. He has had no absences since being appointed in June 2016. FISCAL IMPACT No meeting attendance compensation is paid to absent members. BACKGROUND/ANALYSIS The Municipal Code states: “If any member of a board, commission, or committee absents him/herself from two consecutive regular meetings, or absents him/herself from a total of three regular meetings within any fiscal year, his/her office shall become vacant and shall be filled as any other vacancy. A board, commission, or committee member may request advance permission from the city council to be absent at one or more regular meetings due to extenuating circumstances, and/or may request the city council to excuse an absence after-the-fact where such extenuating circumstances prevented the member from seeking advance permission to be absent. If such permission or excuse is granted by the city council, the absence shall not be counted toward the above-stated limitations on absences.” ALTERNATIVES Council may deny this request, which would result in the absences being counted toward the commissioners’ limitation on absences as noted above. Prepared by: Pam Nieto, Deputy City Clerk Approved by: Susan Maysels, City Clerk CONSENT CALENDAR ITEM NO. 2 15 16 City of La Quinta CITY COUNCIL MEETING: April 3, 2018 STAFF REPORT AGENDA TITLE: ACCEPT ART DONATION FROM MELODY COHN RECOMMENDATION Accept art donation from Melody Cohn. EXECUTIVE SUMMARY •Melody Cohn is a local artist and resident who wishes to donate an art piece to the City. •The Community Services Commission unanimously approved the Symphony on the Salton Sea aluminum print, which would be placed at the Wellness Center. FISCAL IMPACT Site preparation costs will be approximately $100 paid from the Art in Public Places (APP) Maintenance Account (270-0000-60683). BACKGROUND/ANALYSIS Melody Cohn is a local artist and La Quinta resident who approached Staff about donating an art piece. She has painted fine art for many years and her artwork can be viewed at her studio/gallery in La Quinta. Ms. Cohn has offered to donate Symphony on the Salton Sea to the City’s permanent APP program. The aluminum print is 23” tall and 29” wide and is placed inside a wood frame. The estimated value is $1,500 and would be installed at the Wellness Center along with the City’s other Salton Sea related art pieces. On March 12, the Community Services Commission unanimously agreed and recommended the Symphony on the Salton Sea for placement at the Wellness Center. The artwork would be installed in 2 weeks. ALTERNATIVES Council may accept/not accept this donation. Prepared by: Christina Calderon, Community Resources Manager Approved by: Chris Escobedo, Acting City Manager Attachment: 1. Photo of the art piece CONSENT CALENDAR ITEM NO. 3 17 18 ATTACHMENT 1ATTACHMENT 1 19 20 City of La Quinta CITY COUNCIL MEETING: April 3, 2018 STAFF REPORT AGENDA TITLE: WITHDRAW THE AUTHORITY FOR CITY STAFF TO PARTICIPATE IN THE PUBLIC AUCTION FOR THE FORMER SAM’S CLUB BUILDING AND RE-ALLOCATE FUNDS TO GENERAL FUND UNASSIGNED RESERVES RECOMMENDATION Withdraw the authority for staff to participate in the public auction sale of the former Sam’s Club Property and re-allocate funds to General Fund unassigned reserves. EXECUTIVE SUMMARY •On January 30, 2018, Council authorized staff, by a unanimous vote, to participate in a public auction pursuant to a trustee’s sale for all right, title, and interest in the property identified in Closed Session as 79315 Highway 111 (APNs: 600-340-002, 600-020-029, 600-340-003, 600-340-023, 600-020-028, 600-340- 028) also formerly known as Sam’s Club. •The trustee’s sale of the property formerly known as Sam’s Club has been postponed multiple times with the recent being postponed until April 24, 2018. •Council has recommended the City withdraw from participating in the public auction. FISCAL IMPACT Funds authorized for this auction ($2,000,000) would be re-allocated to unassigned General Fund reserves. BACKGROUND/ANALYSIS On January 30, 2018, the Council authorized staff to participate in a public auction for the 138,000-square-foot empty building located at 79315 Highway 111 (former Sam’s Club). The wholesale store has remained vacant since closing the doors in 2010. The trustee’s sale of the property at auction has been postponed multiple times and now is scheduled for April 24, 2018. Council has recommended the City withdraw from participating in the public auction and re-allocate the approved funds to General Fund unassigned reserves. ALTERNATIVES No alternatives recommended. Prepared by: Karla Campos, Finance Director Approved by: Chris Escobedo, Acting City Manager CONSENT CALENDAR ITEM NO. 4 21 22 City of La Quinta CITY COUNCIL MEETING: April 3, 2018 STAFF REPORT AGENDA TITLE: APPROVE DEMAND REGISTERS DATED MARCH 16 AND 23, 2018 RECOMMENDATION Approve demand registers dated March 16 and 23, 2018. EXECUTIVE SUMMARY – None FISCAL IMPACT Demand of Cash: City 7,444,967.15$ Successor Agency of RDA 145.00$ Housing Authority 13,390.35$ 7,458,502.50$ BACKGROUND/ANALYSIS Between Council meetings, routine bills and payroll must be paid. Attachment 1 details the weekly demand registers for March 16 and 23, 2018. Warrants Issued: 117979-118041 1,162,178.54$ 118042-118042 3,985.84$ 118043-118106 4,332,903.79$ Void (3,985.84)$ Wire Transfers 1,744,494.77$ Payroll Tax transfers 36,732.30$ Payroll Chk 37321-37322 & Direct Deposit 182,193.10$ 7,458,502.50$ CONSENT CALENDAR ITEM NO. 5 23 The most significant expenditures on the demand register are: Account Name Amount Riverside County Sheriff Various 1,077,889.55$ Nov - Police Services Riverside County Sheriff Various 1,029,963.42$ Dec - Police Services Riverside County Sheriff Various 1,023,540.26$ Oct - Police Services Riverside County Sheriff Various 1,013,528.28$ Sep - Police Services Urban Habitat Construction 201,456.05$ North La Quinta Environmental Turf Conversion PurposeVendor Wire Transfers: Six transfers totaled $1,744,494.77. Of this amount, $36,881.05 was for CalPERS, $163,791.89 to Landmark and $1,536,201.34 for La Quinta Housing Authority. (See Attachment 2 for a full listing). ALTERNATIVES Council may approve, partially approve, or reject the demand registers. Prepared by: Derrick Armendariz, Account Technician Approved by: Rosemary Hallick, Financial Services Analyst Attachments: 1. Demand Registers 2. Wire Transfers 24 3/15/2018 4:48:42 PM Page 1 of 7 Demand Register City of La Quinta, CA Packet: APPKT01521 - DA 03/16/18 AmountVendor Name Payment Number Description (Item)Account Name Account Number Fund: 101 - GENERAL FUND 606.00Community Experiences01/01/18-01/01/19- INSURANCE FOR DYO117979ALLIANT INSURANCE SERVICES …101-3003-60149 50.00Travel & Training02/28/18- BI LINGUAL TEST117980ALTA LANGUAGE SERVICES INC 101-1004-60320 20.00Blood/Alcohol Testing01/31/18- BLOOD ANALYSIS/SHERIFF117981AMERICAN FORENSIC NURSES …101-2001-60174 107.14Utilities - Gas02/28/18- FS #32 GAS TANK RENTAL117982AMERIGAS 101-2002-61100 40.00Fitness Membership Reimburs…03/07/18- FITPASS REIMB117986CHAUDHRY, ELIZABETH 101-1004-50252 25,829.75MSHCP Mitigation Fee02/2018- MITIGATION FEE117989COACHELLA VALLEY CONSERV…101-0000-20310 -258.30CVMSHCP Admin Fee02/2018- MITIGATION FEE117989COACHELLA VALLEY CONSERV…101-0000-43631 605.03Utilities - Water -Pioneer Park03/07/18- WATER SERVICE117990COACHELLA VALLEY WATER DI…101-3005-61207 568.36Utilities - Water03/13/18- WATER SERVICE117990COACHELLA VALLEY WATER DI…101-2002-61200 725.20Utilities - Water -Monticello Pa…03/13/18- WATER SERVICE117990COACHELLA VALLEY WATER DI…101-3005-61201 93.76Utilities - Water -Fritz Burns pa…03/13/18- WATER SERVICE117990COACHELLA VALLEY WATER DI…101-3005-61204 18.28Utilities - Water -Seasons Park03/13/18- WATER SERVICE117990COACHELLA VALLEY WATER DI…101-3005-61208 185.52Utilities - Water -Community P…03/13/18- WATER SERVICE117990COACHELLA VALLEY WATER DI…101-3005-61209 93.49Utilities - Water03/13/18- WATER SERVICE117990COACHELLA VALLEY WATER DI…101-3008-61200 223.61Utilities - Water03/13/18- WATER SERVICE117990COACHELLA VALLEY WATER DI…101-2002-61200 165.08Utilities - Water -Eisenhower P…03/13/18- WATER SERVICE117990COACHELLA VALLEY WATER DI…101-3005-61203 46.30Utilities - Water -Velasco Park03/13/18- WATER SERVICE117990COACHELLA VALLEY WATER DI…101-3005-61205 120.65Utilities - Water -Desert Pride03/13/18- WATER SERVICE117990COACHELLA VALLEY WATER DI…101-3005-61206 36.06PM 10 - Dust Control03/13/18- WATER SERVICE117990COACHELLA VALLEY WATER DI…101-7006-60146 32,106.96School Officer07/01-11/08/17- SCHOOL OFFICER BP# 1-5117992DESERT SANDS UNIFIED SCHO…101-2001-60168 5,468.07School Officer11/09-12/16/17- SCHOOL OFFICER BP#6117992DESERT SANDS UNIFIED SCHO…101-2001-60168 1,100.00Sexual Assault Exam Fees12/05/17-01/26/18- EXAM LA173400036 …117994EISENHOWER MEDICAL CENTER 101-2001-60193 50.00Miscellaneous Deposits03/06/18- FACILITY DEPOSIT REFUND117998FRANCO, BIANCA 101-0000-22830 50.42Utilities - Gas01/19-02/20/18- FS#32 GAS SERVICE118000GAS COMPANY, THE 101-2002-61100 112.90Utilities - Gas01/25-02/27/18- FS#93 GAS SERVICE118000GAS COMPANY, THE 101-2002-61100 509.30Utilities - Gas01/19-02/20/18- CITY HALL GAS SERVICE118000GAS COMPANY, THE 101-3008-61100 135.62Utilities - Gas01/19-02/20/18- WC GAS SERVICE118000GAS COMPANY, THE 101-3008-61100 678.05Utilities - Electricity03/07/18- ELECTRICITY SERIVCE118004IMPERIAL IRRIGATION DIST 101-2002-61101 13.52Utilities - Electric - Monticello …03/07/18- ELECTRICITY SERIVCE118004IMPERIAL IRRIGATION DIST 101-3005-61102 1,569.87Utilities - Electric - Civic Center…03/07/18- ELECTRICITY SERIVCE118004IMPERIAL IRRIGATION DIST 101-3005-61103 1,168.06Utilities - Electric - Fritz Burns …03/07/18- ELECTRICITY SERIVCE118004IMPERIAL IRRIGATION DIST 101-3005-61105 2,237.54Utilities - Electric - Sports Com…03/07/18- ELECTRICITY SERIVCE118004IMPERIAL IRRIGATION DIST 101-3005-61106 47.85Utilities - Electric - Colonel Pai…03/07/18- ELECTRICITY SERIVCE118004IMPERIAL IRRIGATION DIST 101-3005-61108 4,457.35Utilities - Electric - Community…03/07/18- ELECTRICITY SERIVCE118004IMPERIAL IRRIGATION DIST 101-3005-61109 56.14Utilities - Electric - Adams Park03/07/18- ELECTRICITY SERIVCE118004IMPERIAL IRRIGATION DIST 101-3005-61110 14.95Utilities - Electric - Velasco Park03/07/18- ELECTRICITY SERIVCE118004IMPERIAL IRRIGATION DIST 101-3005-61111 21.81Utilities - Electric - Eisenhower…03/07/18- ELECTRICITY SERIVCE118004IMPERIAL IRRIGATION DIST 101-3005-61113 12.94Utilities - Electric - Desert Pride03/07/18- ELECTRICITY SERIVCE118004IMPERIAL IRRIGATION DIST 101-3005-61114 7,211.61Utilities - Electricity03/07/18- ELECTRICITY SERIVCE118004IMPERIAL IRRIGATION DIST 101-3008-61101 4,818.87Community ExperiencesMARKETING FOR COMMUNITY EVENTS118006JNS MEDIA SPECIALISTS 101-3003-60149 62,783.11Marketing & Tourism Promoti…FY 17/18 PRINT & DIGITAL MARKETING SE…118006JNS MEDIA SPECIALISTS 101-3007-60461 25.00Cash Over/Short03/01/18- DUPLICATE BUS. LIC REFUND118010MCLEAN COMPANY RENTALS 101-0000-42300 70.00Cash Over/Short02/21/18- REFUND OVERPAYMENT118011MONICA TILE 101-0000-42300 60.00Lot Cleaning03/12/18- LOT ABATEMENT 79-315 HWY …118012MOYA, DANIEL 101-6004-60120 250.00Lot Cleaning03/07/18- LOT ABATEMENT118012MOYA, DANIEL 101-6004-60120 13,292.50ConsultantsPROFESSIONAL ENGINEERING SERVICES118014NAI CONSULTING INC 101-7006-60104 474.60Temporary Agency Services03/02/18- CITY CLERK TEMP118018OFFICE TEAM 101-1005-60125 614.00Fire Plan Review Deposits03/15/18- FIRE INSP RFND BCOM2017-00…118019OLD TOWN LA QUINTA, LLC 101-0000-22811 -351.00Fire Plan Review Fee03/15/18- FIRE INSP RFND BCOM2017-00…118019OLD TOWN LA QUINTA, LLC 101-0000-42420 39.01Mechanical Permits01/29/18- REFUND OVERPAYMENT118022PRIORITY ONE AIR CONDITION…101-0000-42402 -171.68Sales Taxes Payable02/22/18- POLICE HELMETS TAX118023PRORIDER INC 101-0000-20304 2,133.68Special Enforcement Funds02/22/18- POLICE HELMETS SAFETY FAIR118023PRORIDER INC 101-2001-60175 1,270.00Maintenance/Services03/05/18-WC PLUMBING SERVICES118025ROTO ROOTER PLUMBERS INC 101-3008-60691 Attachment 1 25 Demand Register Packet: APPKT01521 - DA 03/16/18 3/15/2018 4:48:42 PM Page 2 of 7 AmountVendor Name Payment Number Description (Item)Account Name Account Number 614.00Fire Plan Review Deposits03/15/18- FIRE INSP RFND BCOM2017-00…118026SOUTH WEST CONCEPTS 101-0000-22811 -351.00Fire Plan Review Fee03/15/18- FIRE INSP RFND BCOM2017-00…118026SOUTH WEST CONCEPTS 101-0000-42420 53.29Fire Station12/26/18- EOC SUPPLIES118027STAPLES ADVANTAGE 101-2002-60670 39.00Safety Gear02/27/18- SAFETY SHIRT - TREVER118028SUMMIT SAFETY LLC 101-7006-60427 202.70Safety Gear02/28/18- SAFETY SHIRTS - TREVER118028SUMMIT SAFETY LLC 101-7006-60427 47.00Pest Control02/09/18- PUBLIC WORKS PEST CONTROL118033TRULY NOLEN INC 101-3008-60116 -9.80Sales Taxes Payable02/08-02/23/18- WATER FILTERS118039WELLS FARGO BUSINESS CARD 101-0000-20304 -2.28Sales Taxes Payable02/08-02/23/18- CLEANING TABLETS TAX118039WELLS FARGO BUSINESS CARD 101-0000-20304 44.38Travel & Training02/08-02/23/18- UPDATE WITH MAYOR118039WELLS FARGO BUSINESS CARD 101-1001-60320 80.00Travel & Training02/08-02/23/18- HOUSING CONFERENCE118039WELLS FARGO BUSINESS CARD 101-1001-60320 195.75Travel & Training02/08-02/23/18- COUNCIL MEETING118039WELLS FARGO BUSINESS CARD 101-1001-60320 28.28Operating Supplies02/08-02/23/18- CLEANING TABLETS118039WELLS FARGO BUSINESS CARD 101-1002-60420 121.80Operating Supplies02/08-02/23/18- WATER FILTERS118039WELLS FARGO BUSINESS CARD 101-1002-60420 -1.05Sales Taxes Payable01/31-02/28/18- DYO SUPPLIES TAX118040WELLS FARGO BUSINESS CARD 101-0000-20304 -13.78Sales Taxes Payable01/31-02/28/18- TACOS & TEQUILA EVENT…118040WELLS FARGO BUSINESS CARD 101-0000-20304 -13.12Sales Taxes Payable01/31-02/28/18- EMERGENCY BLANKETS …118040WELLS FARGO BUSINESS CARD 101-0000-20304 -1.00Sales Taxes Payable01/31-02/28/18- CEAQ GUIDLINES TAX118040WELLS FARGO BUSINESS CARD 101-0000-20304 160.00Travel & Training01/31-02/28/18- CSMFO CHAPTER MEETI…118040WELLS FARGO BUSINESS CARD 101-1006-60320 122.99Travel & Training01/31-02/28/18- LINKS SUPPLIES118040WELLS FARGO BUSINESS CARD 101-1006-60320 505.00Subscriptions & Publications01/31-02/28/18- GFOA AWARD REVIEW F…118040WELLS FARGO BUSINESS CARD 101-1006-60352 76.11Office Supplies01/31-02/28/18- EXTERNAL HARDDRIVE118040WELLS FARGO BUSINESS CARD 101-1006-60400 163.07Disaster Prep Supplies01/31-02/28/18- EMERGENCY BLANKETS118040WELLS FARGO BUSINESS CARD 101-2002-60406 283.98Printing01/31-02/28/18- EOC GUIDE MAPS118040WELLS FARGO BUSINESS CARD 101-2002-60410 596.95Fire Station01/31-02/28/18- AMR GRANT PURCHASE118040WELLS FARGO BUSINESS CARD 101-2002-60670 158.43Fire Station01/31-02/28/18- AMR GRANT CAMERA & …118040WELLS FARGO BUSINESS CARD 101-2002-60670 21.91Community Experiences01/31-02/28/18- DYO SUPPLIES118040WELLS FARGO BUSINESS CARD 101-3003-60149 20.28Community Experiences01/31-02/28/18- LQ ROCKET LAUNCH SUP…118040WELLS FARGO BUSINESS CARD 101-3003-60149 171.46Community Experiences01/31-02/28/18- TACOS & TEQUILA EVENT…118040WELLS FARGO BUSINESS CARD 101-3003-60149 62.00Community Experiences01/31-02/28/18- LQ ROCKET LAUNCH118040WELLS FARGO BUSINESS CARD 101-3003-60149 200.00Membership Dues01/31-02/28/18- AMERICANS FOR ART M…118040WELLS FARGO BUSINESS CARD 101-3003-60351 700.10Travel & Training01/31-02/28/18- HOTEL FOR CPRS CONF118040WELLS FARGO BUSINESS CARD 101-3005-60320 1,070.00Travel & Training01/31-02/28/18- CPRS CONF - AMBRIZ118040WELLS FARGO BUSINESS CARD 101-3005-60320 1,848.70Materials/Supplies01/31-02/28/18- 5 WATER COOLERS CITY…118040WELLS FARGO BUSINESS CARD 101-3008-60431 108.75Subscriptions & Publications01/31-02/28/18- CEAQ GUIDLINES118040WELLS FARGO BUSINESS CARD 101-6002-60352 143.29Printing03/05/18- EVENT RACK CARDS118041XPRESS GRAPHICS 101-3007-60410 80.15Printing03/07/18- DYO SIGNS118041XPRESS GRAPHICS 101-3007-60410 Fund 101 - GENERAL FUND Total:179,134.32 Fund: 201 - GAS TAX FUND 201.51Equipment Rental02/13/18- EQ RENTAL117995ELMS EQUIPMENT RENTAL INC 201-7003-61701 40.00Traffic Control Signs02/27/18- POST BASE SIGN118001HD SUPPLY CONSTRUCTION S…201-7003-60429 815.50Utilities - Electricity03/07/18- ELECTRICITY SERVICE118004IMPERIAL IRRIGATION DIST 201-7003-61101 38.77Traffic Control Signs02/28/18- HAZMAT SIGN118031TOPS'N BARRICADES INC 201-7003-60429 92.11Traffic Control Signs02/28/18- STOP SIGN118031TOPS'N BARRICADES INC 201-7003-60429 57.20Traffic Control Signs02/28/18- YELLOW REFLECTORS118031TOPS'N BARRICADES INC 201-7003-60429 181.83Traffic Control Signs02/28/18- YELLOW STRIPING118031TOPS'N BARRICADES INC 201-7003-60429 49.60Materials/Supplies03/01/18- DIG ALERT SERVICES 25118034UNDERGROUND SERVICE ALERT 201-7003-60431 Fund 201 - GAS TAX FUND Total:1,476.52 Fund: 202 - LIBRARY & MUSEUM FUND 126.08Utilities - Water03/13/18- WATER SERVICE117990COACHELLA VALLEY WATER DI…202-3006-61200 144.06Utilities - Gas01/19-02/20/18- LIBRARY GAS SERVICE118000GAS COMPANY, THE 202-3004-61100 2,284.89Utilities - Electricity03/07/18- ELECTRICITY SERIVCE118004IMPERIAL IRRIGATION DIST 202-3004-61101 637.30Utilities - Electricity03/07/18- ELECTRICITY SERIVCE118004IMPERIAL IRRIGATION DIST 202-3006-61101 308.88HVAC02/02/18- LIBRARY HVAC PREV MAINT118020PACIFIC WEST AIR CONDITION…202-3004-60667 3,045.00Museum OperationsARCHIVING SERVICES FOR LQ HISTORICAL …118021PARKOS-MARTINEZ, SHERRY A 202-3006-60105 74.00Pest Control02/09/18- LIBRARY PEST CONTROL118033TRULY NOLEN INC 202-3004-60116 642.18Operating Supplies01/31-02/28/18- MUSEUM BOOKS118040WELLS FARGO BUSINESS CARD 202-3006-60420 Fund 202 - LIBRARY & MUSEUM FUND Total:7,262.39 Fund: 215 - LIGHTING & LANDSCAPING FUND 2,283.75Materials/Supplies01/17/18- LAMP RINGS117983BAHNSON'S MACHINE SHOP 215-7004-60431 26 Demand Register Packet: APPKT01521 - DA 03/16/18 3/15/2018 4:48:42 PM Page 3 of 7 AmountVendor Name Payment Number Description (Item)Account Name Account Number 484.87Operating Supplies02/27/18- PLANT REPLACEMENT117984CALIFORNIA DESERT NURSERY,…215-7004-60420 415.83Utilities - Water - Medians03/07/18- WATER SERVICE117990COACHELLA VALLEY WATER DI…215-7004-61211 4,384.44Utilities - Water - Medians03/13/18- WATER SERVICE117990COACHELLA VALLEY WATER DI…215-7004-61211 6,100.00ConsultantsCITYWIDE LANDSCAPE LIGHTING MAINTE…118003HORIZON LIGHTING 215-7004-60104 5,228.34Utilities - Electric03/07/18- ELECTRICITY SERVICE118004IMPERIAL IRRIGATION DIST 215-7004-61116 2,379.99Utilities - Electric - Medians03/07/18- ELECTRICITY SERVICE118004IMPERIAL IRRIGATION DIST 215-7004-61117 502.71Utilities - Electric03/13/18- ELECTRICITY SERVICE118004IMPERIAL IRRIGATION DIST 215-7004-61116 37.50Utilities - Electric - Medians03/13/18- ELECTRICITY SERVICE118004IMPERIAL IRRIGATION DIST 215-7004-61117 5,278.00SilverRock Way LandscapeSILVERROCK RESORT PERIMETER LANDSC…118008LANDMARK GOLF MANAGEM…215-7004-60143 109.71Materials/Supplies03/01/18- ELECTRICAL MATERIAL118038WALTERS WHOLESALE ELECTR…215-7004-60431 547.98Materials/Supplies03/01/18- ELECTRICAL MATERIAL118038WALTERS WHOLESALE ELECTR…215-7004-60431 363.29Materials/Supplies03/01/18- ELECTRICAL MATERIAL118038WALTERS WHOLESALE ELECTR…215-7004-60431 Fund 215 - LIGHTING & LANDSCAPING FUND Total:28,116.41 Fund: 217 - DEVELOPMENT AGREEMENT 145.00Land AcquisitionFRONTIER PROPERTY WALL118014NAI CONSULTING INC 217-0000-74010 Fund 217 - DEVELOPMENT AGREEMENT Total:145.00 Fund: 224 - TUMF FUND 163,357.29TUMF Payable to CVAG02/2018- TUMF FEE117988COACHELLA VALLEY ASSOC OF…224-0000-20320 Fund 224 - TUMF FUND Total:163,357.29 Fund: 241 - HOUSING AUTHORITY 358.05Temporary Agency Services02/23/18- CITY MANAGER TEMP118018OFFICE TEAM 241-9101-60125 477.40Temporary Agency Services03/02/18- CITY MANAGER TEMP118018OFFICE TEAM 241-9101-60125 10,000.00Rental Expenses03/15/18- INS DEDUCTIBLE PROPERTY 53-…118036VINCERE INDUSTRIES, INC.241-9103-60157 Fund 241 - HOUSING AUTHORITY Total:10,835.45 Fund: 248 - SA 2004 LO/MOD BOND FUND (Refinanced in 2014) 145.00Relocation Benefits02/08-02/23/18- WSA MGMT MEETING118039WELLS FARGO BUSINESS CARD 248-9102-60159 Fund 248 - SA 2004 LO/MOD BOND FUND (Refinanced in 2014) Total:145.00 Fund: 250 - TRANSPORTATION DIF FUND 40,000.00Developer Reimbursements03/15/18- ST IMPROVEMENTS AVE 54117993EAST OF MADISON LLC 250-0000-80105 61,818.00Developer Reimbursements03/15/18- RAISED LANDSCAPE IMPROVE…117993EAST OF MADISON LLC 250-0000-80105 50,909.90Developer Reimbursements03/15/18- RAISEDMEDIAN IMPROVEMEN…117993EAST OF MADISON LLC 250-0000-80105 36,364.00Developer Reimbursements03/15/18- RAISED LANDSCAPE FRED WAR…118009LENNAR HOMES OF CALIFORN…250-0000-80105 40,000.00Developer Reimbursements03/15/18- MADISON ST IMPROVEMENTS118015ND LA QUINTA PARTNERS LLC 250-0000-80105 65,455.00Developer Reimbursements03/15/18- AVE 52 ST & RAISED LANDSCAP…118015ND LA QUINTA PARTNERS LLC 250-0000-80105 47,273.00Developer Reimbursements03/15/18- AVE 50 MEDIAN/CURB LANDSC…118030TOLL BROS., INC.250-0000-80105 25,455.00Developer Reimbursements03/15/18- AVE 52 MEDIAN ISLAND IMPR…118030TOLL BROS., INC.250-0000-80105 32,727.00Developer Reimbursements03/15/18- RAISED LANDSCAPE HWY 111 N…118037WALMART STORES, INC C/O B…250-0000-80105 Fund 250 - TRANSPORTATION DIF FUND Total:400,001.90 Fund: 401 - CAPITAL IMPROVEMENT PROGRAMS 2,057.85TechnicalCNS ENGINEERS BPMP PROJECT NO. 2017…117987CNS ENGINEERS, INC 401-0000-60108 173.95Construction03/01/18- CITY HALL BATHROOM MATERI…117997FERGUSON ENTERPRISES, INC 401-0000-60188 4,037.11Construction03/01/18- CITY HALL BATHROOM REMOD…117997FERGUSON ENTERPRISES, INC 401-0000-60188 3,271.25DesignON-CALL PROFESSIONAL SVCS118002HERMANN DESIGN GROUP INC 401-0000-60185 1,187.50DesignON-CALL PROF LANDSCAPE ARCHITECTUR…118002HERMANN DESIGN GROUP INC 401-0000-60185 902.50DesignON-CALL PROF LANDSCAPE ARCHITECTUR…118002HERMANN DESIGN GROUP INC 401-0000-60185 3,900.00TechnicalON-CALL CONSTRUCTION SURVEYING SVC118013MSA CONSULTING INC 401-0000-60108 1,435.00Professional ServicesPROFESSIONAL ENGINEERING SERVICES118014NAI CONSULTING INC 401-0000-60103 65.00Professional ServicesPROFESSIONAL ENGINEERING SERVICES118014NAI CONSULTING INC 401-0000-60103 145.00Professional ServicesWASHINGTON ST AT FRED WARING DRIVE118014NAI CONSULTING INC 401-0000-60103 4,219.17Professional ServicesPROFESSIONAL ENGINEERING SERVICES118014NAI CONSULTING INC 401-0000-60103 290.00Professional ServicesSB821 LQ HIGH ADA118014NAI CONSULTING INC 401-0000-60103 2,320.00Professional ServicesPROFESSIONAL ENGINEERING SERVICES118014NAI CONSULTING INC 401-0000-60103 1,015.00Professional ServicesPROFESSIONAL ENGINEERING SERVICES118014NAI CONSULTING INC 401-0000-60103 4,032.50Professional ServicesPROFESSIONAL ENGINEERING SERVICES118014NAI CONSULTING INC 401-0000-60103 2,965.00Professional ServicesPROFESSIONAL ENGINEERING SERVICES118014NAI CONSULTING INC 401-0000-60103 145.00Professional ServicesPROFESSIONAL ENGINEERING SERVICES118014NAI CONSULTING INC 401-0000-60103 250.00Professional ServicesPROFESSIONAL ENGINEERING SERVICES118014NAI CONSULTING INC 401-0000-60103 65.00Professional ServicesBPMP BRIDGE PREVENTATIVE MAINT PLAN118014NAI CONSULTING INC 401-0000-60103 27 Demand Register Packet: APPKT01521 - DA 03/16/18 3/15/2018 4:48:42 PM Page 4 of 7 AmountVendor Name Payment Number Description (Item)Account Name Account Number 1,305.00Professional ServicesPROFESSIONAL ENGINEERING SERVICES118014NAI CONSULTING INC 401-0000-60103 1,402.50Professional ServicesCALLE TAMPICO DRAINAGE118014NAI CONSULTING INC 401-0000-60103 3,190.00Professional ServicesPROFESSIONAL ENGINEERING SERVICES118014NAI CONSULTING INC 401-0000-60103 375.00Professional ServicesSSAR SYS SAFETY ANALYSIS RPT118014NAI CONSULTING INC 401-0000-60103 870.00DesignPROFESSIONAL ENGINEERING SERVICES118014NAI CONSULTING INC 401-0000-60185 -2,742.50Retention PayablePO#1718-0125 RETENTION 2017-03118016NEW CONSTRUCTION SOLUTI…401-0000-20600 54,850.00ConstructionNEW CONSTRUCTION SOLUTIONS INC., P…118016NEW CONSTRUCTION SOLUTI…401-0000-60188 -10,602.95Retention PayablePO#1718-0105 RETENTION 2016-03B118035URBAN HABITAT ENVIRONME…401-0000-20600 212,059.00ConstructionNORTH LA QUINTA TURF CONVERSION - A…118035URBAN HABITAT ENVIRONME…401-0000-60188 Fund 401 - CAPITAL IMPROVEMENT PROGRAMS Total:293,182.88 Fund: 501 - FACILITY & FLEET REPLACEMENT 22,551.97Vehicles, Rentals & Leases03/2018- FLEET LEASE CHARGES117996ENTERPRISE FM TRUST 501-0000-71030 1,292.98Fuel & Oil03/05/18- FUEL CHARGES117999FUELMAN 501-0000-60674 13.03Fuel & Oil02/08/18- MOTOR OIL & FUEL118005INLAND POWER EQUIPMENT …501-0000-60674 44,149.34Machinery & EquipmentQUINN QAT SKID STEER LOADER118024QUINN COMPANY 501-0000-80100 1,179.63Fuel & Oil02/26-02/28/18- UNLEAD/DIESEL FUEL118032TOWER ENERGY GROUP 501-0000-60674 Fund 501 - FACILITY & FLEET REPLACEMENT Total:69,186.95 Fund: 502 - INFORMATION TECHNOLOGY 1,560.00Utilities - Cable03/10-04/09/18- CITY HALL FIBER118029TIME WARNER CABLE 502-0000-61400 50.00Software Licenses02/08-02/23/18- BASECAMP118039WELLS FARGO BUSINESS CARD 502-0000-60301 48.00Software Licenses01/31-02/28/18- CISCO SOFTWARE118040WELLS FARGO BUSINESS CARD 502-0000-60301 180.00Software Licenses01/31-02/28/18- G SUITE TRIAL118040WELLS FARGO BUSINESS CARD 502-0000-60301 Fund 502 - INFORMATION TECHNOLOGY Total:1,838.00 Fund: 503 - PARK EQUIP & FACILITY FUND 910.00Parks02/08-02/21/18- CONCRETE TESTING FRIT…118007LANDMARK GEO-ENGINEERS &…503-0000-71060 Fund 503 - PARK EQUIP & FACILITY FUND Total:910.00 Fund: 504 - INSURANCE FUND 6,146.84Claims03/12/18- REFUND OVERPYAMENT ON IN…117985CALIFORNIA JOINT POWERS IN…504-1010-60442 172.42Office Supplies02/27/18-KEY BOARDS118017OFFICE DEPOT 504-1010-60400 Fund 504 - INSURANCE FUND Total:6,319.26 Fund: 601 - SILVERROCK RESORT 267.17SilverRock Buildings02/21/18- SRR BALLAST117991CONSOLIDATED ELECTRICAL DI…601-0000-60556 Fund 601 - SILVERROCK RESORT Total:267.17 Grand Total:1,162,178.54 28 Demand Register Packet: APPKT01521 - DA 03/16/18 3/15/2018 4:48:42 PM Page 5 of 7 Fund Summary Fund Expense Amount 101 - GENERAL FUND 179,134.32 201 - GAS TAX FUND 1,476.52 202 - LIBRARY & MUSEUM FUND 7,262.39 215 - LIGHTING & LANDSCAPING FUND 28,116.41 217 - DEVELOPMENT AGREEMENT 145.00 224 - TUMF FUND 163,357.29 241 - HOUSING AUTHORITY 10,835.45 248 - SA 2004 LO/MOD BOND FUND (Refinanced in 2014)145.00 250 - TRANSPORTATION DIF FUND 400,001.90 401 - CAPITAL IMPROVEMENT PROGRAMS 293,182.88 501 - FACILITY & FLEET REPLACEMENT 69,186.95 502 - INFORMATION TECHNOLOGY 1,838.00 503 - PARK EQUIP & FACILITY FUND 910.00 504 - INSURANCE FUND 6,319.26 601 - SILVERROCK RESORT 267.17 Grand Total:1,162,178.54 Account Summary Account Number Account Name Expense Amount 101-0000-20304 Sales Taxes Payable -212.71 101-0000-20310 MSHCP Mitigation Fee 25,829.75 101-0000-22811 Fire Plan Review Deposits 1,228.00 101-0000-22830 Miscellaneous Deposits 50.00 101-0000-42300 Cash Over/Short 95.00 101-0000-42402 Mechanical Permits 39.01 101-0000-42420 Fire Plan Review Fee -702.00 101-0000-43631 CVMSHCP Admin Fee -258.30 101-1001-60320 Travel & Training 320.13 101-1002-60420 Operating Supplies 150.08 101-1004-50252 Fitness Membership Reim…40.00 101-1004-60320 Travel & Training 50.00 101-1005-60125 Temporary Agency Servic…474.60 101-1006-60320 Travel & Training 282.99 101-1006-60352 Subscriptions & Publicati…505.00 101-1006-60400 Office Supplies 76.11 101-2001-60168 School Officer 37,575.03 101-2001-60174 Blood/Alcohol Testing 20.00 101-2001-60175 Special Enforcement Funds 2,133.68 101-2001-60193 Sexual Assault Exam Fees 1,100.00 101-2002-60406 Disaster Prep Supplies 163.07 101-2002-60410 Printing 283.98 101-2002-60670 Fire Station 808.67 101-2002-61100 Utilities - Gas 270.46 101-2002-61101 Utilities - Electricity 678.05 101-2002-61200 Utilities - Water 791.97 101-3003-60149 Community Experiences 5,700.52 101-3003-60351 Membership Dues 200.00 101-3005-60320 Travel & Training 1,770.10 101-3005-61102 Utilities - Electric - Montic…13.52 101-3005-61103 Utilities - Electric - Civic C…1,569.87 101-3005-61105 Utilities - Electric - Fritz Bu…1,168.06 101-3005-61106 Utilities - Electric - Sports …2,237.54 101-3005-61108 Utilities - Electric - Colonel…47.85 101-3005-61109 Utilities - Electric - Comm…4,457.35 101-3005-61110 Utilities - Electric - Adams…56.14 101-3005-61111 Utilities - Electric - Velasco…14.95 101-3005-61113 Utilities - Electric - Eisenh…21.81 101-3005-61114 Utilities - Electric - Desert …12.94 101-3005-61201 Utilities - Water -Monticel…725.20 29 Demand Register Packet: APPKT01521 - DA 03/16/18 3/15/2018 4:48:42 PM Page 6 of 7 Account Summary Account Number Account Name Expense Amount 101-3005-61203 Utilities - Water -Eisenho…165.08 101-3005-61204 Utilities - Water -Fritz Bur…93.76 101-3005-61205 Utilities - Water -Velasco …46.30 101-3005-61206 Utilities - Water -Desert Pr…120.65 101-3005-61207 Utilities - Water -Pioneer …605.03 101-3005-61208 Utilities - Water -Seasons …18.28 101-3005-61209 Utilities - Water -Commun…185.52 101-3007-60410 Printing 223.44 101-3007-60461 Marketing & Tourism Pro…62,783.11 101-3008-60116 Pest Control 47.00 101-3008-60431 Materials/Supplies 1,848.70 101-3008-60691 Maintenance/Services 1,270.00 101-3008-61100 Utilities - Gas 644.92 101-3008-61101 Utilities - Electricity 7,211.61 101-3008-61200 Utilities - Water 93.49 101-6002-60352 Subscriptions & Publicati…108.75 101-6004-60120 Lot Cleaning 310.00 101-7006-60104 Consultants 13,292.50 101-7006-60146 PM 10 - Dust Control 36.06 101-7006-60427 Safety Gear 241.70 201-7003-60429 Traffic Control Signs 409.91 201-7003-60431 Materials/Supplies 49.60 201-7003-61101 Utilities - Electricity 815.50 201-7003-61701 Equipment Rental 201.51 202-3004-60116 Pest Control 74.00 202-3004-60667 HVAC 308.88 202-3004-61100 Utilities - Gas 144.06 202-3004-61101 Utilities - Electricity 2,284.89 202-3006-60105 Museum Operations 3,045.00 202-3006-60420 Operating Supplies 642.18 202-3006-61101 Utilities - Electricity 637.30 202-3006-61200 Utilities - Water 126.08 215-7004-60104 Consultants 6,100.00 215-7004-60143 SilverRock Way Landscape 5,278.00 215-7004-60420 Operating Supplies 484.87 215-7004-60431 Materials/Supplies 3,304.73 215-7004-61116 Utilities - Electric 5,731.05 215-7004-61117 Utilities - Electric - Media…2,417.49 215-7004-61211 Utilities - Water - Medians 4,800.27 217-0000-74010 Land Acquisition 145.00 224-0000-20320 TUMF Payable to CVAG 163,357.29 241-9101-60125 Temporary Agency Servic…835.45 241-9103-60157 Rental Expenses 10,000.00 248-9102-60159 Relocation Benefits 145.00 250-0000-80105 Developer Reimbursemen…400,001.90 401-0000-20600 Retention Payable -13,345.45 401-0000-60103 Professional Services 23,219.17 401-0000-60108 Technical 5,957.85 401-0000-60185 Design 6,231.25 401-0000-60188 Construction 271,120.06 501-0000-60674 Fuel & Oil 2,485.64 501-0000-71030 Vehicles, Rentals & Leases 22,551.97 501-0000-80100 Machinery & Equipment 44,149.34 502-0000-60301 Software Licenses 278.00 502-0000-61400 Utilities - Cable 1,560.00 503-0000-71060 Parks 910.00 504-1010-60400 Office Supplies 172.42 504-1010-60442 Claims 6,146.84 30 Demand Register Packet: APPKT01521 - DA 03/16/18 3/15/2018 4:48:42 PM Page 7 of 7 Account Summary Account Number Account Name Expense Amount 601-0000-60556 SilverRock Buildings 267.17 Grand Total:1,162,178.54 Project Account Summary Project Account Key Expense Amount **None**465,948.76 091002P 2,320.00 091004P 2,965.00 111205P 4,219.17 141517P 145.00 151603P 4,032.50 151612P 3,852.50 1718CPMD 870.00 1718PMPP 1,305.00 201601P 250.00 201602P 65.00 201603CT 212,059.00 201603D 2,090.00 201603P 3,190.00 201603RP -10,602.95 201603T 3,900.00 201608D 3,271.25 201701P 145.00 201702DEV 400,001.90 201703CT 54,850.00 201703FFE 4,211.06 201703RP -2,742.50 201705P 290.00 201707P 65.00 201707T 2,057.85 201708P 375.00 ARCHIVEE 3,045.00 Grand Total:1,162,178.54 31 3/19/2018 10:51:22 AM Page 1 of 2 Demand Register City of La Quinta, CA Packet: APPKT01524 - JD 3/16/18 AmountVendor Name Payment Number Description (Item)Account Name Account Number Fund: 101 - GENERAL FUND 266.38Marketing & Tourism Promoti…3/2/18- MISSION LQ EVENT118042PALMS TO PINES PRINTING 101-3007-60461 Fund 101 - GENERAL FUND Total:266.38 Fund: 221 - AB 939 - CALRECYCLE FUND 874.17AB 939 Recycling Solutions2/23/18-RECYCLING GIVEAWAY PROMO A…118042PALMS TO PINES PRINTING 221-0000-60127 2,845.29AB 939 Recycling Solutions2/23/18- RECYCLE GIVEAWAY PROMO AB …118042PALMS TO PINES PRINTING 221-0000-60127 Fund 221 - AB 939 - CALRECYCLE FUND Total:3,719.46 Grand Total:3,985.84 32 Demand Register Packet: APPKT01524 - JD 3/16/18 3/19/2018 10:51:22 AM Page 2 of 2 Fund Summary Fund Expense Amount 101 - GENERAL FUND 266.38 221 - AB 939 - CALRECYCLE FUND 3,719.46 Grand Total:3,985.84 Account Summary Account Number Account Name Expense Amount 101-3007-60461 Marketing & Tourism Pro…266.38 221-0000-60127 AB 939 Recycling Solutions 3,719.46 Grand Total:3,985.84 Project Account Summary Project Account Key Expense Amount **None**3,985.84 Grand Total:3,985.84 33 3/22/2018 11:26:28 AM Page 1 of 5 Demand Register City of La Quinta, CA Packet: APPKT01533 - DA 03/23/18 AmountVendor Name Payment Number Description (Item)Account Name Account Number Fund: 101 - GENERAL FUND 303.06Prepaid Expense03/02/18-03/01/19- TYPEWRITER MAINT …118043ADVANCED IMAGING SOLUTI…101-0000-13600 151.52Typewriters03/02/18-03/01/19- TYPEWRITER MAINT …118043ADVANCED IMAGING SOLUTI…101-1007-60663 -17.50Sales Taxes Payable03/02/18- NITRILE GLOVES TAX118044ATCO MANUFACTURING COM…101-0000-20304 288.00Instructors03/19/18- PILATES118046BERETTO, LUCILLA 101-3002-60107 8,670.00Boys & Girls ClubCDBG FUNDING SUB-RECIPIENT FOR 17/18…118047BOYS & GIRLS CLUB OF COACH…101-3001-60135 196.05LT Care Insurance PayLONG TERM CARE118048CALPERS LONG-TERM CARE P…101-0000-20949 533.40Instructors03/19/18- SUN STYLE TAI CHI118049COHEN, ANN MARIE 101-3002-60107 560.00Traffic Counts/StudiesON CALL TRAFFIC DATA COLLECTION118051COUNTS UNLIMITED INC 101-7006-60145 189.55Citywide Conf Room Supplies03/12/18- CITYWIDE COFFEE SUPPLIES118052DAIOHS FIRST CHOICE SERVICES 101-1007-60403 209.53Citywide Conf Room Supplies03/15/18- CITYWIDE COFFEE SUPPLIES118052DAIOHS FIRST CHOICE SERVICES 101-1007-60403 70.00Blood/Alcohol Testing02/22/18- BLOOD ANALYSIS118053DEPARTMENT OF JUSTICE 101-2001-60174 48.93Subscriptions & Publications04/2018- SUBSCRIPTION SERVICE118055DESERT SUN, THE 101-6001-60352 65.58Subscriptions & Publications04/2018- SUBSCRIPTION SERVICE118055DESERT SUN, THE 101-3002-60352 165.00Consultants02/23/18- RANDOM TESTING118056EISENHOWER OCCUPATIONAL…101-1004-60104 705.00Plan ChecksON CALL BUILDING PLAN REVIEW & INSPE…118057ESGIL CORPORATION 101-6003-60118 1,228.00Fire Plan Review Deposits03/20/18- FIRE INSP RNFD FAA2017-0041,…118059FIRE SPRINKLER SYSTEMS, INC 101-0000-22811 -468.00Fire Plan Review Fee03/20/18- FIRE INSP RNFD FAA2017-0041,…118059FIRE SPRINKLER SYSTEMS, INC 101-0000-42420 850.00Community Experiences02/09/18- WEBSITE UPDATE REMAINING …118062GIZMO BEACH 101-3003-60149 520.00Instructors03/19/18- PERSONAL TRAINER118066KEPLER, KRISTOFFER 101-3002-60107 1,751.30Due to Other Agencies02/09/18- TOAST OF LA QUINTA TICKET S…118067LA QUINTA HISTORICAL SOCIE…101-0000-20300 257.00Temporary Use Permit02/08/18-REFUND APPLICATION VOIDED …118068MCLEAN COMPANY 101-0000-42439 4.63Credit Card Fee Revenue02/08/18-REFUND APPLICATION VOIDED118068MCLEAN COMPANY 101-0000-43505 269.50Instructors03/19/18- TAI CHI CHUAN118069MEDEIROS, JOYCELEEN 101-3002-60107 79.00Travel & Training04/30/2018- EXCEL TRAINING REGISTRATI…118071MORENO, ANTHONY 101-6004-60320 241.43LQ Police Volunteers02/16/18- POLICE BUSINESS CARDS118074OFFICE DEPOT 101-2001-60109 80.48LQ Police Volunteers02/16/18- POLICE BUSINESS CARDS118074OFFICE DEPOT 101-2001-60109 363.31Forms03/07/18- 8 1/2X11 CITYWIDE COPY PAPER118074OFFICE DEPOT 101-1007-60402 474.60Temporary Agency Services03/09/18- CC TEMP SERVICES118075OFFICE TEAM 101-1005-60125 13.18Postage03/03/18- OVERNIGHT MAIL118076ONTRAC 101-1007-60470 65.00Travel & Training05/18/18- PROCLAMATION PRESENTING118077PALM SPRINGS PRIDE 101-1001-60320 62.88Cash Over/Short03/05/18- REFUND TOT OVERPAYMENT118078PALM SPRINGS VACATION H…101-0000-42300 253.31Community Experiences03/08/18- PILLARS OF COMMUNITY BRASS…118080POWERS AWARDS INC 101-3003-60149 598.69Travel & Training03/13-03/16/18- IIMC SERIES 200 REIMB118081RADEVA, MONIKA 101-1005-60320 622,864.09Sheriff Patrol09/14-10/11/17- POLICE SERVICE BP#4118082RIVERSIDE COUNTY SHERIFF D…101-2001-60161 13,066.51Police Overtime09/14-10/11/17- PATROL DUTY OT118082RIVERSIDE COUNTY SHERIFF D…101-2001-60162 133,357.25Target Team09/14-10/11/17- TARGET TEAM118082RIVERSIDE COUNTY SHERIFF D…101-2001-60163 50,414.00Community Services Officer09/14-10/11/17- COMMUNITY SERVICES …118082RIVERSIDE COUNTY SHERIFF D…101-2001-60164 12,316.80Gang Task Force09/14-10/11/17- GANG TASK FORCE118082RIVERSIDE COUNTY SHERIFF D…101-2001-60166 12,316.80Narcotics Task Force09/14-10/11/17- NARCOTICS TASK FORCE118082RIVERSIDE COUNTY SHERIFF D…101-2001-60167 84,771.96Motor Officer09/14-10/11/17- MOTOR OFFICER118082RIVERSIDE COUNTY SHERIFF D…101-2001-60169 33,190.10Dedicated Sargeant09/14-10/11/17- DEDICATED SARGEANT118082RIVERSIDE COUNTY SHERIFF D…101-2001-60170 14,126.56Dedicated Lieutenant09/14-10/11/17- DEDICATED LIEUTENANT118082RIVERSIDE COUNTY SHERIFF D…101-2001-60171 31,699.94Sheriff - Mileage09/14-10/11/17- SHERIFF MILEAGE118082RIVERSIDE COUNTY SHERIFF D…101-2001-60172 3,754.94Special Enforcement Funds09/14-10/11/17- SPECIAL ENFORCEMENT …118082RIVERSIDE COUNTY SHERIFF D…101-2001-60175 605,220.64Sheriff Patrol12/07/17-01/03/18- SHERIFF PATROL118083RIVERSIDE COUNTY SHERIFF D…101-2001-60161 18,729.77Police Overtime12/07/17-01/03/18- PATROL DUTY OT118083RIVERSIDE COUNTY SHERIFF D…101-2001-60162 124,418.71Target Team12/07/17-01/03/18- TARGET TEAM118083RIVERSIDE COUNTY SHERIFF D…101-2001-60163 51,577.40Community Services Officer12/07/17-01/03/18- COMMUNITY SERVIC…118083RIVERSIDE COUNTY SHERIFF D…101-2001-60164 12,316.80Gang Task Force12/07/17-01/03/18- GANG TASK FORCE118083RIVERSIDE COUNTY SHERIFF D…101-2001-60166 12,316.80Narcotics Task Force12/07/17-01/03/18- NARCOTICS TASK FO…118083RIVERSIDE COUNTY SHERIFF D…101-2001-60167 87,222.85Motor Officer12/07/17-01/03/18- MOTOR OFFICER118083RIVERSIDE COUNTY SHERIFF D…101-2001-60169 34,822.40Dedicated Sargeant12/07/17-01/03/18- DEDICATED SARGEA…118083RIVERSIDE COUNTY SHERIFF D…101-2001-60170 20,180.80Dedicated Lieutenant12/07/17-01/03/18- DEDICATED LIEUTEN…118083RIVERSIDE COUNTY SHERIFF D…101-2001-60171 34 Demand Register Packet: APPKT01533 - DA 03/23/18 3/22/2018 11:26:28 AM Page 2 of 5 AmountVendor Name Payment Number Description (Item)Account Name Account Number 34,073.48Sheriff - Mileage12/07/17-01/03/18- SHERIFF MILEAGE118083RIVERSIDE COUNTY SHERIFF D…101-2001-60172 10,713.88Special Enforcement Funds12/07/17-01/03/18- SPECIAL ENFORCEM…118083RIVERSIDE COUNTY SHERIFF D…101-2001-60175 645,870.99Sheriff Patrol11/09-12/06/17- SHERIFF PATROL118084RIVERSIDE COUNTY SHERIFF D…101-2001-60161 30,473.13Police Overtime11/09-12/06/17- PATROL DUTY OT118084RIVERSIDE COUNTY SHERIFF D…101-2001-60162 132,636.40Target Team11/09-12/06/17- TARGET TEAM118084RIVERSIDE COUNTY SHERIFF D…101-2001-60163 50,318.16Community Services Officer11/09-12/06/17- COMMUNITY SERVICES …118084RIVERSIDE COUNTY SHERIFF D…101-2001-60164 12,316.80Gang Task Force11/09-12/06/17- GANG TASK FORCE118084RIVERSIDE COUNTY SHERIFF D…101-2001-60166 12,316.80Narcotics Task Force11/09-12/06/17- NARCOTICS TASK FORCE118084RIVERSIDE COUNTY SHERIFF D…101-2001-60167 87,799.53Motor Officer11/09-12/06/17- MOTOR OFFICER118084RIVERSIDE COUNTY SHERIFF D…101-2001-60169 34,822.40Dedicated Sargeant11/09-12/06/17- DEDICATED SARGEANT118084RIVERSIDE COUNTY SHERIFF D…101-2001-60170 18,162.72Dedicated Lieutenant11/09-12/06/17- DEDICATED LIEUTENANT118084RIVERSIDE COUNTY SHERIFF D…101-2001-60171 34,277.81Sheriff - Mileage11/09-12/06/17- SHERIFF MILEAGE118084RIVERSIDE COUNTY SHERIFF D…101-2001-60172 6,357.15Special Enforcement Funds11/09-12/06/17- SPECIAL ENFORCEMENT …118084RIVERSIDE COUNTY SHERIFF D…101-2001-60175 633,968.31Sheriff Patrol10/12-11/08/17- POLICE SERVICE BP #05118085RIVERSIDE COUNTY SHERIFF D…101-2001-60161 17,139.17Police Overtime10/12-11/08/17- PATROL DUTY OT118085RIVERSIDE COUNTY SHERIFF D…101-2001-60162 114,398.90Target Team10/12-11/08/17- TARGET TEAM118085RIVERSIDE COUNTY SHERIFF D…101-2001-60163 49,583.00Community Services Officer10/12-11/08/17- COMMUNITY SERVICES …118085RIVERSIDE COUNTY SHERIFF D…101-2001-60164 12,316.80Gang Task Force10/12-11/08/17- GANG TASK FORCE118085RIVERSIDE COUNTY SHERIFF D…101-2001-60166 12,316.80Narcotics Task Force10/12-11/08/17- NARCOTICS TASK FORCE118085RIVERSIDE COUNTY SHERIFF D…101-2001-60167 83,979.03Motor Officer10/12-11/08/17- MOTOR OFFICER118085RIVERSIDE COUNTY SHERIFF D…101-2001-60169 35,910.60Dedicated Sargeant10/12-11/08/17- DEDICATED SARGEANT118085RIVERSIDE COUNTY SHERIFF D…101-2001-60170 15,135.60Dedicated Lieutenant10/12-11/08/17- DEDICATED LIEUTENANT118085RIVERSIDE COUNTY SHERIFF D…101-2001-60171 33,205.24Sheriff - Mileage10/12-11/08/17- SHERIFF MILEAGE118085RIVERSIDE COUNTY SHERIFF D…101-2001-60172 3,049.16Special Enforcement Funds10/12-11/08/17- SPECIAL ENFORCEMENT …118085RIVERSIDE COUNTY SHERIFF D…101-2001-60175 200.00Garnishments PayableGARNISHMENT118086RIVERSIDE DEPARTMENT OF C…101-0000-20985 10.00Miscellaneous Permits01/31/18- REFUND CANCELLED PERMIT118087ROADRUNNER POOLS INC 101-0000-42404 0.18Credit Card Fee Revenue01/31/18- REFUND CANCELLED PERMIT118087ROADRUNNER POOLS INC 101-0000-43505 10.00Miscellaneous Permits01/31/18- REFUND CALCELLED PERMIT118087ROADRUNNER POOLS INC 101-0000-42404 0.18Credit Card Fee Revenue01/31/18- REFUND CALCELLED PERMIT118087ROADRUNNER POOLS INC 101-0000-43505 1,166.20Instructors03/19/18 TAEKWONDO118088ROJAS, MIGUEL ANGEL 101-3002-60107 315.00Operating Supplies03/13/18- WC GYM PREVENATIVE MAINT118089ROYAL GYM SERVICES, LLC 101-3002-60420 31,258.09Developer Deposits800890- MCVEIGH CEQA118090RUTAN & TUCKER 101-0000-22810 24.00Attorney800892- GUNNETT FPPC118090RUTAN & TUCKER 101-1003-60153 11,000.00Attorney800882- RETAINER MATTER118090RUTAN & TUCKER 101-1003-60153 717.50Attorney800891- DUNE PALMS PRJT ROW ACQ118090RUTAN & TUCKER 101-1003-60153 5,421.42Attorney800880- CODE ENFORCEMENT118090RUTAN & TUCKER 101-1003-60153 20,997.12Attorney800877- GENERAL ACCOUNT118090RUTAN & TUCKER 101-1003-60153 67.00Attorney800883- GENERAL IP118090RUTAN & TUCKER 101-1003-60153 520.39Attorney/Litigation800879- LITIGATION GENERAL118090RUTAN & TUCKER 101-1003-60154 189.00Instructors03/19/18- WATERCOLOR118091RYAN, JOAN FRANCIS 101-3002-60107 182.00Instructors03/19/18- ZUMBA118092SALCEDO, KATHLEEN KENNEDY 101-3002-60107 450.80Instructors03/19/18- BALLROOM DANCING118093SHIRY, TERESA 101-3002-60107 569.60Instructors03/19/18- PERSONAL TRAINER118094SNYDER, JANICE 101-3002-60107 180.00Instructors03/19/18- COMPUTER LITERACY118095SPARKMAN, STANLEY KEITH 101-3002-60107 98.91Office Supplies02/27/18- FLASH DRIVES & SUPPLIES118096STAPLES ADVANTAGE 101-7003-60400 193.00Office Supplies03/09/18- MUSEUM & IT SUPPLIES118096STAPLES ADVANTAGE 101-3001-60400 1.90Operating Supplies03/09/18- OFFICE SUPPLIES118096STAPLES ADVANTAGE 101-1004-60420 23.26Office Supplies03/09/18- OFFICE SUPPLIES118096STAPLES ADVANTAGE 101-3001-60400 30.77Office Supplies03/23/18- COBRA FOLDER FILES118096STAPLES ADVANTAGE 101-1004-60400 56.13Operating Supplies03/13/18- OFFICE SUPPLIES118096STAPLES ADVANTAGE 101-6001-60420 53.46Operating Supplies03/13/18- OFFICE SUPPLIES118096STAPLES ADVANTAGE 101-6006-60420 70.12Utilities - Cable03/16-04/15/18- FS #32 CABLE118097TIME WARNER CABLE 101-2002-61400 3.16Utilities - Cable03/05-04/04/18- FS #32 CABLE118097TIME WARNER CABLE 101-2002-61400 119.98Utilities - Cable03/03-04/02/18- FS#93 CABLE SERVICE118097TIME WARNER CABLE 101-2002-61400 59.99Utilities - Cable03/2018- FS #32 INTERNET118097TIME WARNER CABLE 101-2002-61400 156.80Instructors03/19/18- SUNSET YOGA118099TRUE, ARTHUR ALLEN 101-3002-60107 62.00United Way DeductionsCONTRIBUTION118101UNITED WAY OF THE DESERT 101-0000-20981 2,447.24Contract Traffic EngineerON-CALL TRAFFIC ENGINEERING SERVICES118104WILLDAN 101-7006-60144 1,404.50Contract Traffic EngineerON-CALL TRAFFIC ENGINEERING SERVICES118104WILLDAN 101-7006-60144 97.98Printing03/12/18- EVENT SIGNS118105XPRESS GRAPHICS 101-3007-60410 35 Demand Register Packet: APPKT01533 - DA 03/23/18 3/22/2018 11:26:28 AM Page 3 of 5 AmountVendor Name Payment Number Description (Item)Account Name Account Number 1,532.50Plan ChecksYoung Engineering- On-Call Building Inspe…118106YOUNG ENGINEERING SVC 101-6003-60118 Fund 101 - GENERAL FUND Total:4,198,299.59 Fund: 201 - GAS TAX FUND 11.84Materials/Supplies03/13/18- DRIP TRAY118045AUTOZONE 201-7003-60431 31.54Materials/Supplies03/06/18- REFLECTIVE GLASS BEADS118098TOPS'N BARRICADES INC 201-7003-60431 Fund 201 - GAS TAX FUND Total:43.38 Fund: 202 - LIBRARY & MUSEUM FUND 14.13Operating Supplies03/09/18- MUSEUM & IT SUPPLIES118096STAPLES ADVANTAGE 202-3006-60420 15.20Operating Supplies03/09/18- OFFICE SUPPLIES118096STAPLES ADVANTAGE 202-3006-60420 Fund 202 - LIBRARY & MUSEUM FUND Total:29.33 Fund: 212 - SLESA (COPS) FUND 1,649.33COPS Burglary/Theft Preventi…09/14-10/11/17- COPS BURGLARY/THEFT …118082RIVERSIDE COUNTY SHERIFF D…212-0000-60179 18,369.89COPS Burglary/Theft Preventi…12/07/17-01/03/18- COPS BURG/THEFT P…118083RIVERSIDE COUNTY SHERIFF D…212-0000-60179 12,537.66COPS Burglary/Theft Preventi…11/09-12/06/17- COPS BURGLARY/THEFT …118084RIVERSIDE COUNTY SHERIFF D…212-0000-60179 12,537.65COPS Burglary/Theft Preventi…10/12-11/08/17- COPS BURGLARY/THEFT …118085RIVERSIDE COUNTY SHERIFF D…212-0000-60179 Fund 212 - SLESA (COPS) FUND Total:45,094.53 Fund: 215 - LIGHTING & LANDSCAPING FUND 238.31Materials/Supplies03/02/18- NITRILE GLOVES118044ATCO MANUFACTURING COM…215-7004-60431 12.93Materials/Supplies11/14/17- ELECTRICAL MATERIALS118058FASTENAL COMPANY 215-7004-60431 979.30Consultants01/23/18- ELECTRICAL SERVICE118064HORIZON LIGHTING 215-7004-60104 150.00Maintenance/Services03/13/18- BEE REMOVAL118100TRULY NOLEN INC 215-7004-60691 686.37Materials/Supplies02/23/18- ELECTRICAL MATERIAL118103WALTERS WHOLESALE ELECTR…215-7004-60431 1,264.24Materials/Supplies03/25/18- ELECTRICAL MATERIAL118103WALTERS WHOLESALE ELECTR…215-7004-60431 Fund 215 - LIGHTING & LANDSCAPING FUND Total:3,331.15 Fund: 221 - AB 939 - CALRECYCLE FUND 1,606.52AB 939 Recycling Solutions03/14/18- RECYCLED COFFEE TUMBLER118079PALMS TO PINES PRINTING 221-0000-60127 Fund 221 - AB 939 - CALRECYCLE FUND Total:1,606.52 Fund: 241 - HOUSING AUTHORITY 477.40Temporary Agency Services03/09/18- HA TEMP SERVICE118075OFFICE TEAM 241-9101-60125 2,077.50Attorney800881- HOUSING AUTH MISC118090RUTAN & TUCKER 241-9101-60153 Fund 241 - HOUSING AUTHORITY Total:2,554.90 Fund: 270 - ART IN PUBLIC PLACES FUND 6,750.00Art PurchasesAPP PURCHASE - 3 PLAQUES & 1 SCULPTU…118070METALREVELATIONS 270-0000-74800 Fund 270 - ART IN PUBLIC PLACES FUND Total:6,750.00 Fund: 401 - CAPITAL IMPROVEMENT PROGRAMS 2,755.73Construction03/14/18- OFFICE FURNITURE118054DESERT BUSINESS INTERIORS 401-0000-60188 -2,627.75Retention PayablePO# 1718-0125 RETENTION 2017-03118073NEW CONSTRUCTION SOLUTI…401-0000-20600 52,555.00ConstructionNEW CONSTRUCTION SOLUTIONS INC., P…118073NEW CONSTRUCTION SOLUTI…401-0000-60188 Fund 401 - CAPITAL IMPROVEMENT PROGRAMS Total:52,682.98 Fund: 501 - FACILITY & FLEET REPLACEMENT 194.82Motorcycle Repair & Mainten…03/07/18- MOTOR ST1300 REPAIR118063HONDA YAMAHA OF REDLAN…501-0000-60679 950.44Vehicle Repair & Maintenance03/07/18- C.O.P FORD EXPLORER REPAIR118072MOUNTAIN VIEW TIRE 501-0000-60676 Fund 501 - FACILITY & FLEET REPLACEMENT Total:1,145.26 Fund: 502 - INFORMATION TECHNOLOGY 13,050.00ConsultantsFY 17/18 RIM MGMT INFORMATION TEC…118050CONVERGEONE, INC 502-0000-60104 177.64Utilities - Cable03/04-04/03/18- DSL SERVICE118060FRONTIER-INTERNET 502-0000-61400 6,937.46Copiers12/01/17-02/28/18- COPIER CONTRACT118065INNOVATIVE DOCUMENT SOL…502-0000-60662 29.34Operating Supplies03/09/18- MUSEUM & IT SUPPLIES118096STAPLES ADVANTAGE 502-0000-60420 130.19Utilities - Cable02/15-03/14/18- CABLE SERVICE118097TIME WARNER CABLE 502-0000-61400 978.82Technical02/26-03/25/18- LQPD WIRELESS118102VERIZON WIRELESS 502-0000-60108 Fund 502 - INFORMATION TECHNOLOGY Total:21,303.45 Fund: 601 - SILVERROCK RESORT 7.50Bank Fees02/2018- SRR ARMORED SERVICE118061GARDAWORLD 601-0000-60455 55.20Bank Fees02/2018- SRR ARMORED SERVICE118061GARDAWORLD 601-0000-60455 Fund 601 - SILVERROCK RESORT Total:62.70 Grand Total:4,332,903.79 36 Demand Register Packet: APPKT01533 - DA 03/23/18 3/22/2018 11:26:28 AM Page 4 of 5 Fund Summary Fund Expense Amount 101 - GENERAL FUND 4,198,299.59 201 - GAS TAX FUND 43.38 202 - LIBRARY & MUSEUM FUND 29.33 212 - SLESA (COPS) FUND 45,094.53 215 - LIGHTING & LANDSCAPING FUND 3,331.15 221 - AB 939 - CALRECYCLE FUND 1,606.52 241 - HOUSING AUTHORITY 2,554.90 270 - ART IN PUBLIC PLACES FUND 6,750.00 401 - CAPITAL IMPROVEMENT PROGRAMS 52,682.98 501 - FACILITY & FLEET REPLACEMENT 1,145.26 502 - INFORMATION TECHNOLOGY 21,303.45 601 - SILVERROCK RESORT 62.70 Grand Total:4,332,903.79 Account Summary Account Number Account Name Expense Amount 101-0000-13600 Prepaid Expense 303.06 101-0000-20300 Due to Other Agencies 1,751.30 101-0000-20304 Sales Taxes Payable -17.50 101-0000-20949 LT Care Insurance Pay 196.05 101-0000-20981 United Way Deductions 62.00 101-0000-20985 Garnishments Payable 200.00 101-0000-22810 Developer Deposits 31,258.09 101-0000-22811 Fire Plan Review Deposits 1,228.00 101-0000-42300 Cash Over/Short 62.88 101-0000-42404 Miscellaneous Permits 20.00 101-0000-42420 Fire Plan Review Fee -468.00 101-0000-42439 Temporary Use Permit 257.00 101-0000-43505 Credit Card Fee Revenue 4.99 101-1001-60320 Travel & Training 65.00 101-1003-60153 Attorney 38,227.04 101-1003-60154 Attorney/Litigation 520.39 101-1004-60104 Consultants 165.00 101-1004-60400 Office Supplies 30.77 101-1004-60420 Operating Supplies 1.90 101-1005-60125 Temporary Agency Servic…474.60 101-1005-60320 Travel & Training 598.69 101-1007-60402 Forms 363.31 101-1007-60403 Citywide Conf Room Suppl…399.08 101-1007-60470 Postage 13.18 101-1007-60663 Typewriters 151.52 101-2001-60109 LQ Police Volunteers 321.91 101-2001-60161 Sheriff Patrol 2,507,924.03 101-2001-60162 Police Overtime 79,408.58 101-2001-60163 Target Team 504,811.26 101-2001-60164 Community Services Offic…201,892.56 101-2001-60166 Gang Task Force 49,267.20 101-2001-60167 Narcotics Task Force 49,267.20 101-2001-60169 Motor Officer 343,773.37 101-2001-60170 Dedicated Sargeant 138,745.50 101-2001-60171 Dedicated Lieutenant 67,605.68 101-2001-60172 Sheriff - Mileage 133,256.47 101-2001-60174 Blood/Alcohol Testing 70.00 101-2001-60175 Special Enforcement Funds 23,875.13 101-2002-61400 Utilities - Cable 253.25 101-3001-60135 Boys & Girls Club 8,670.00 101-3001-60400 Office Supplies 216.26 101-3002-60107 Instructors 4,505.30 101-3002-60352 Subscriptions & Publicati…65.58 37 Demand Register Packet: APPKT01533 - DA 03/23/18 3/22/2018 11:26:28 AM Page 5 of 5 Account Summary Account Number Account Name Expense Amount 101-3002-60420 Operating Supplies 315.00 101-3003-60149 Community Experiences 1,103.31 101-3007-60410 Printing 97.98 101-6001-60352 Subscriptions & Publicati…48.93 101-6001-60420 Operating Supplies 56.13 101-6003-60118 Plan Checks 2,237.50 101-6004-60320 Travel & Training 79.00 101-6006-60420 Operating Supplies 53.46 101-7003-60400 Office Supplies 98.91 101-7006-60144 Contract Traffic Engineer 3,851.74 101-7006-60145 Traffic Counts/Studies 560.00 201-7003-60431 Materials/Supplies 43.38 202-3006-60420 Operating Supplies 29.33 212-0000-60179 COPS Burglary/Theft Prev…45,094.53 215-7004-60104 Consultants 979.30 215-7004-60431 Materials/Supplies 2,201.85 215-7004-60691 Maintenance/Services 150.00 221-0000-60127 AB 939 Recycling Solutions 1,606.52 241-9101-60125 Temporary Agency Servic…477.40 241-9101-60153 Attorney 2,077.50 270-0000-74800 Art Purchases 6,750.00 401-0000-20600 Retention Payable -2,627.75 401-0000-60188 Construction 55,310.73 501-0000-60676 Vehicle Repair & Mainte…950.44 501-0000-60679 Motorcycle Repair & Main…194.82 502-0000-60104 Consultants 13,050.00 502-0000-60108 Technical 978.82 502-0000-60420 Operating Supplies 29.34 502-0000-60662 Copiers 6,937.46 502-0000-61400 Utilities - Cable 307.83 601-0000-60455 Bank Fees 62.70 Grand Total:4,332,903.79 Project Account Summary Project Account Key Expense Amount **None**4,248,962.72 16-013E 31,258.09 201703CT 52,555.00 201703FFE 2,755.73 201703RP -2,627.75 Grand Total:4,332,903.79 38 3/20/2018 7:28:58 PM Page 1 of 2 Payment Reversal Register City of La Quinta, CA APPKT01522 - DA 03/15/18 Canceled Payables Vendor Set:01 - Vendor Set 01 Bank:APBNK - APBNK 08329 Vendor Number PALMS TO PINES PRINTING Total Vendor Amount -3,985.84 Vendor Name Check 117944 03/15/2018 -3,985.8403/09/2018 03/15/2018 Payment Type Payment Number Original Payment Date Reversal Date Cancel Date Payment Amount Payable Number:Description Payable AmountDue DatePayable Date 209CLQE-FA-R 03/09/201802/23/18- RECYCLING GIVEAWAYS AB 939 874.1702/23/2018 210CLQPT-FA-R 03/09/201802/23/18- RECYCLING GIVEAWAYS AB 939 2,845.2902/23/2018 223CLQSP-FA-R 03/09/201803/02/18- MISSION LQ EVENT 266.3803/02/2018 39 Payment Reversal Register Packet: APPKT01522 - DA 03/15/18 3/20/2018 7:28:58 PM Page 2 of 2 Bank Code Summary Canceled Payables Payables Left To Pay AgainBank Code Total APBNK -3,985.84 0.00 -3,985.84 -3,985.84 0.00Report Total:-3,985.84 40 City of La Quinta Bank Transactions 3/10/18 – 3/23/18 Wire Transaction Listed below are the wire transfers from 3/10/18 – 3/23/18 Wire Transfers: 03/12/2018 - WIRE TRANSFER - LA QUINTA HOUSING AUTHORITY 1,536,201.34$ 03/13/2018 - WIRE TRANSFER - TASC 1,224.96$ 03/19/2018 - WIRE TRANSFER - LANDMARK 163,791.89$ 03/23/2018 - WIRE TRANSFER - PERS 36,881.05$ 03/23/2018 - WIRE TRANSFER - ICMA 5,909.53$ 03/23/2018 - WIRE TRANSFER - LQCEA 486.00$ TOTAL WIRE TRANSFERS OUT 1,744,494.77$ Attachment 2 41 42 City of La Quinta CITY COUNCIL MEETING: April 3, 2018 STAFF REPORT AGENDA TITLE: APPROVE REIMBURSEMENT AGREEMENT WITH THE COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS FOR DESIGN AND CONSTRUCTION OF THE WASHINGTON STREET INTERSECTION WITH FRED WARING DRIVE (PROJECT NO. 2017-01) RECOMMENDATION Approve reimbursement agreement with the Coachella Valley Association of Governments for the design and construction of the Washington Street intersection with Fred Waring Drive Project and authorize the City Manager to execute the agreement. EXECUTIVE SUMMARY The estimated cost of the Design and Construction Phases of the Washington Street Intersection with Fred Waring Drive Project (Project) is $1,860,745. As a part of its regional share, the Coachella Valley Association of Governments (CVAG) will reimburse the City 75% of the Project cost (not-to-exceed $1,395,555). Staff will work with the Cities of Palm Desert and Indian Wells to prepare a separate reimbursement agreement for the remaining 25% of the Project cost. La Quinta will pay 50% of the local agency costs with Palm Desert and Indian Wells splitting the other 50%. Project construction is estimated to start in summer of 2019, but must commence within two years of execution of this agreement (Agreement) (Attachment 1). FISCAL IMPACT The City would pay $232,595. This represents 50% of the local agency costs and is based on the City’s percentage of ownership Project of this intersection. The remaining 50% of the local cost would be shared by the cities of Palm Desert and Indian Wells. The City’s share is budgeted in the Capital Improvement Program. BACKGROUND/ANALYSIS The proposed project will create triple left turn lanes on all four approaches to the Washington Street and Fred Waring Drive intersection. The work will include the adjustment of median curb locations and the reconstruction of curb, gutter and sidewalk at the intersection corners. CONSENT CALENDAR ITEM NO. 6 43 The most recent update to the City’s general plan acknowledged that Washington Street has operational deficiencies. Staff determined that placing triple left turn lanes at critical intersections would help traffic flow and has successfully placed triple lefts at the intersections of Calle Tampico, Eisenhower Drive and Highway 111. The Project was proposed to the cities of Palm Desert and Indian Wells. Both cities voiced support for adding an additional left turn lane on all approaches to the intersection to help with traffic flow and to reduce delays at the intersection. An intersection improvements analysis was submitted to CVAG and the executive committee approved the project on February 26, 2018. ALTERNATIVES Council may choose not to approve the agreement. This would require the local agencies to pay the full cost of the project. Prepared by: Bryan McKinney, P.E., City Engineer Approved by: Chris Escobedo, Acting City Manager Attachment: 1. Agency Reimbursement Agreement 44 ATTACHMENT 1 45 46 47 48 49 50 51 52 53 54 City of La Quinta CITY COUNCIL MEETING: April 3, 2018 STAFF REPORT AGENDA TITLE: ACCEPT ON-SITE IMPROVEMENTS ASSOCIATED WITH THE MADISON CLUB RESIDENTIAL DEVELOPMENT (TRACT MAP NO. 33076-2) LOCATED SOUTH OF AVENUE 52, EAST OF MADISON STREET, AND WEST OF MONROE STREET RECOMMENDATION Accept the on-site improvements associated with Tract Map No. 33076-2, the Madison Club; authorize Staff to release the performance security; and direct Staff to release the labor and materials security 90 days after City Council acceptance of the improvements. EXECUTIVE SUMMARY The Madison Club residential development is located south of Avenue 52, east of Madison Street, and west of Monroe Street (Attachment 1). East of Madison, LLC (Developer) has requested release of the performance, labor and materials securities. Since all on-site improvements have been completed, Staff recommends acceptance and release of the performance, labor, and materials securities. FISCAL IMPACT – None. BACKGROUND/ANALYSIS The Developer has completed all on-site improvements required by Tract Map No. 33076-2. The improvements include grading, pavement, curb and gutter, curb ramps, signing and striping, storm drains, catch basins, water and sewer improvements, landscaping, and survey monumentation. Staff inspected the improvements and verified they meet City- approved plans and standards. ALTERNATIVES Staff does not recommend an alternative action. Prepared by: Bryan McKinney, P.E., City Engineer Approved by: Chris Escobedo, Acting City Manager Attachment: 1. Vicinity Map CONSENT CALENDAR ITEM NO. 7 55 56 ATTACHMENT 2 57 58 City of La Quinta CITY COUNCIL MEETING: April 3, 2018 STAFF REPORT AGENDA TITLE: ADOPT A RESOLUTION TO AUTHORIZE THE CITY MANAGER TO EXECUTE A SIDE LETTER AGREEMENT WITH LA QUINTA CITY EMPLOYEE ASSOCIATION IMPLEMENTING THE CITY’S EMPLOYEE PERFORMANCE ONLY PAY PLAN RECOMMENDATION Adopt a Resolution authorizing the City Manager to execute a Side Letter Agreement with La Quinta City Employee Association implementing the City’s Employee Performance Only Pay Plan. EXECUTIVE SUMMARY The City’s Performance Only Pay Plan will recognize employees’ performance with incentives for employee success, retention, and professional development. The Performance Only Pay Plan will open the salary schedule beyond the job rate to incorporate discretionary performance only steps, “Merit Max.” The City met and conferred with the La Quinta City Employees Association (LQCEA) and reached agreement on a Side Letter Agreement. FISCAL IMPACT The 2018 Class and Compensation Study report and Labor Negotiations will determine the fiscal impact of the implementation of the Performance Only Pay Plan (“Plan”). Staff anticipates findings from the 2018 Class and Compensation Study and Labor Negotiations to be finalized by June 2018. BACKGROUND/ANALYSIS The City’s mission is to be a high performing organization that provides optimal programs and services to residents and businesses. Retaining and attracting high performing employees is critical to achieving the City’s objectives and is dependent upon ensuring the City has in place a comprehensive compensation and performance reward program for employees. The proposed Plan would allow for employees at job rate whose performance exceeds the standard for the job class to be eligible for a one-time award or a performance only increase to their base compensation (Merit Max Salary Schedule). The performance only increase is not an automatic increase to an employee’s salary. Employees must meet all requirements before being granted the award. LQCEA and CONSENT CALENDAR ITEM NO. 8 59 the City have agreed to meet and confer to establish policies and guidelines for the proposed Plan. Implementation of the Plan will help the City to reduce CalPERS pension costs and retain high performing employees. The LQCEA and the City met and agreed to the attached Side Letter Agreement. ALTERNATIVES Council could elect not to adopt the resolution approving the proposed Side Letter Agreement between LQCEA and the City. Doing so would impact the upcoming negotiation process between the City and LQCEA. Prepared by: Angela Scott, Human Resources Analyst Approved by: Chris Escobedo, Acting City Manager 60 RESOLUTION NO. 2018 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE A SIDE LETTER AGREEMENT WITH LA QUINTA CITY EMPLOYEES ASSOCIATION TO IMPLEMENT PERFORMANCE ONLY PAY PLAN WHEREAS, the purpose of the City’s Performance Only Pay Plan is to support the success and retention of productive employees and to encourage and reward activities that promote the City’s mission, vision and values as a highly performing organization; and WHEREAS, the City desires to retain individuals who are customer oriented, demonstrate initiative, are team players, and accept responsibility, authority and accountability for work performance. The City believes that incentives are critical if the employees are to be successful in achieving the mission, goals and objectives of the City; and WHEREAS, the City will offer appropriate developmental and advancement opportunities and recognize performance with incentives for employee success, retention and professional development. The City will administer this in an open, fair, and equitable fashion; and WHEREAS, employees who receive “Exceeds Expectations” rating will be eligible for performance pay in the form of a one-time award or base salary increase dependent on guidelines to be negotiated. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: The City Manager is authorized to execute a Side Letter Agreement (Exhibit A) with La Quinta City Employees Association implementing the Performance Only Pay Plan. PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City Council held on this 3rd day of April 2018, by the following vote: AYES: NOES: ABSENT: 61 Resolution No. 2018- Performance Only Pay Plan Adopted: April 3, 2018 Page 2 of 2 ABSTAIN: _____________________________ LINDA EVANS, Mayor City of La Quinta, California ATTEST: __________________________________________ SUSAN MAYSELS, City Clerk City of La Quinta, California (CITY SEAL) APPROVED AS TO FORM: _______________________________________ WILLIAM H. IHRKE, City Attorney City of La Quinta, California 62 63 64 City of La Quinta CITY COUNCIL MEETING: April 3, 2018 STAFF REPORT AGENDA TITLE: ADOPT RESOLUTION TO RECLASSIFY VARIOUS POSITIONS RECOMMENDATION Adopt a Resolution to reclassify the Accountant, Administrative Technician, Customer Services Manager, Deputy City Clerk, Human Resources Analyst, Management Specialist, Marketing & Events Supervisor, and Permit Operations Supervisor positions. EXECUTIVE SUMMARY As a part of their review of the city’s classification and compensation system, Fox Lawson identified 16 positions that have evolved since the original classification system was implemented. Fox Lawson has requested that 3 positions receive amended pay grades and 5 positions receive title and classification changes. These actions will reflect the appropriate classifications of work being performed by staff. FISCAL IMPACT Annual salary and benefit costs associated with these changes are estimated at $42,500. Implementation of changes would be effective April 16, 2018 and be an additional $8,860 cost to the current fiscal budget. Funds are available in the savings from the employee contingency account. Funds for 2017/18 are available in the Contingency for Staffing account (101-1007-50115). BACKGROUND/ANALYSIS Since September 2017 the City has been working with Fox Lawson on the 2018 Classification and Compensation update. This process includes the identification of positions that may need to be classified differently due to role changes since the original classification study in 2014. The position assessment was done by providing Position Description Questionnaires to 16 identified staff. Those questionnaires were then reviewed by the consultant and follow up questions were made to staff where needed. The following recommendations were received from Fox Lawson: CONSENT CALENDAR ITEM NO. 9 65   POSITION CURRENT GRADE RECOMMENDED GRADE NEW TITLE Accountant B32 B25 N/A Administrative Technician B21 B22 Management Assistant Customer Services Manager D61 C43 Management Analyst Deputy City Clerk B24 B25 N/A Human Resources Analyst C42 D61 Human Resources Manager Management Specialist B24 B25 N/A Marketing & Events Supervisor B24 C41 Marketing Management Coordinator Permit Operations Supervisor B32 C42 Management Analyst With the implementation of these changes, staff will be aligned with the correct classification for the duties they are performing. The City’s Classification Plan and Salary Schedule establish job classifications and salary schedules. The Plan and Schedule were adopted via Council resolution and amendments require Council action. ALTERNATIVES The Council could elect to delay, modify, or reject the requested revisions. Doing so would impact the ability to continue to deliver internal and external services, and comply with regulatory requirements. Prepared by: Chris Escobedo, Community Resources Director Approved by: Frank J. Spevacek, City Manager 66 RESOLUTION NO. 2018 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AMENDING THE PAY GRADE OF ACCOUNTANT MANAGEMENT SPECIALIST AND DEPUTY CITY CLERK, AND WORKING TITLES AND CLASSIFICATIONS OF MARKETING & EVENTS SUPERVISOR TO MARKETING MANAGEMENT COORDINATOR; ADMINISTRATIVE TECHNICIAN TO MANAGEMENT ASSISTANT; PERMIT OPERATIONS SUPERVISOR TO MANAGEMENT ANALYST; HUMAN RESOURCES ANALYST TO HUMAN RESOURCES MANAGER; AND CUSTOMER SERVICES MANAGER TO MANAGEMENT ANALYST WHEREAS, the City Council previously approved and adopted the 2017/18 Classification Plan; and WHEREAS, the City’s Personnel Policy Section 2.05, Preparation and Amendment of Classification Plan, requires amendments to the Classification Plan be adopted by a Resolution of the City Council; and WHEREAS, amendment of the Accountant, Deputy City Clerk, Management Specialist, Marketing & Events Supervisor, Administrative Technician, Permit Operations Supervisor, Human Resources Analyst, and Customer Services Manager will allow the City to continue to achieve benefits, efficiencies and expanded duties. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: SECTION 1. The City does hereby approve and adopt the revisions to the Classification Plan for Fiscal Year 2017/18, attached hereto as Exhibit A and incorporated herein by reference. PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City Council held on this 3rd day of April, 2018, by the following vote: AYES: NOES: ABSENT: ABSTAIN: 67 Resolution No. 2018- PDQ Reclassifications Adopted: April 3, 2018 Page 2 of 2 _____________________________ LINDA EVANS, Mayor City of La Quinta, California ATTEST: __________________________________________ SUSAN MAYSELS, City Clerk City of La Quinta, California (CITY SEAL) APPROVED AS TO FORM: _______________________________________ WILLIAM H. IHRKE, City Attorney City of La Quinta, California 68 2017/18 Salary ScheduleWorking Title Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7Administrative/Office AssistantA11 Annually 38,625.89 40,557.18 42,488.47 44,419.77 46,351.06Administrative TechnicianB21 Annually 50,249.87 52,762.36 55,274.86 57,787.35 60,299.84Executive AssistantB22 Annually 54,120.65 56,826.68 59,532.71 62,238.75 64,944.78Building Inspector IB22 Annually $54,120.65 $56,826.68 $59,532.71 $62,238.75 $64,944.78Code Compliance Officer IB22 Annually $54,120.65 $56,826.68 $59,532.71 $62,238.75 $64,944.78Permit TechnicianB22 Annually $54,120.65 $56,826.68 $59,532.71 $62,238.75 $64,944.78Code Compliance Officer IIB23 Annually $57,991.44 $60,891.01 $63,790.59 $66,690.16 $69,589.73Building Inspector IIB23 Annually $57,991.44 $60,891.01 $63,790.59 $66,690.16 $69,589.73Construction Inspection B23 Annually $57,991.44 $60,891.01 $63,790.59 $66,690.16 $69,589.73Animal Control/Code Compliance Officer SupervisorB32 Annually $68,650.63 $72,083.16 $75,515.70 $78,948.23 $82,380.76Permit Operations SupervisorB32Annually $68,650.63$72,083.16$75,515.70$78,948.23$82,380.76Plans Examiner/Inspector SupervisorB32 Annually $68,650.63 $72,083.16 $75,515.70 $78,948.23 $82,380.76Construction Manager/Inspections SupervisorC43 Annually $77,989.82 $81,239.65 $84,489.49 $87,739.33 $90,989.16$94,235.10 $97,487.27Buildings WorkerA11 Annually $38,625.89 $40,557.18 $42,488.47 $44,419.77 $46,351.06Maintenance Worker IA11 Annually $38,625.89$40,557.18 $42,488.47 $44,419.77 $46,351.06Parks WorkerA11 Annually $38,625.89$40,557.18 $42,488.47 $44,419.77 $46,351.06Maintenance Worker IIA12 Annually $42,496.68$44,621.51 $46,746.35 $48,871.18 $50,996.01Traffic Signal TechnicianB21 Annually $50,249.87$52,762.36 $55,274.86 $57,787.35 $60,299.84Buildings CoordinatorB23 Annually $57,991.44$60,891.01 $63,790.59 $66,690.16 $69,589.73Maintenance ForemanB24 Annually $62,838.64$65,980.57 $69,122.51 $72,264.44 $75,406.37Parks ForemanB24 Annually $62,838.64$65,980.57 $69,122.51 $72,264.44 $75,406.37Buildings SuperintendentB32 Annually $68,650.63$72,083.16 $75,515.70 $78,948.23 $82,380.76Parks SuperintendentB32 Annually $68,650.63$72,083.16 $75,515.70 $78,948.23 $82,380.76Community Resources CoordinatorB21 Annually $50,249.87$52,762.36 $55,274.86 $57,787.35 $60,299.84Management AssistantB21 Annually $50,249.87$52,762.36 $55,274.86 $57,787.35 $60,299.84Account TechnicianB22 Annually $54,120.65$56,826.68 $59,532.71 $62,238.75 $64,944.78Finance AssistantB22 Annually $54,120.65$56,826.68 $59,532.71 $62,238.75 $64,944.78Vacation Rental/License AssistantB22 Annually $54,120.65$56,826.68 $59,532.71 $62,238.75 $64,944.78Management AssistantB22Annually $54,120.65$56,826.68 $59,532.71 $62,238.75 $64,944.78Deputy City ClerkB24 Annually $62,838.64$65,980.57 $69,122.51 $72,264.44 $75,406.37Junior AccountantB24 Annually $62,838.64$65,980.57 $69,122.51 $72,264.44 $75,406.37Management SpecialistB24 Annually $62,838.64$65,980.57 $69,122.51 $72,264.44 $75,406.37Marketing and Events SupervisorB24Annually$62,838.64$65,980.57$69,122.51$72,264.44$75,406.37Deputy City ClerkB25Annually $68,650.63$72,083.16 $75,515.70 $78,948.23 $82,380.76Management SpecialistB25Annually $68,650.63$72,083.16 $75,515.70 $78,948.23 $82,380.76AccountantB32 B25Annually $68,650.63$72,083.16 $75,515.70 $78,948.23 $82,380.76Marketing Management CoordinatorC41Annually $70,557.91$73,498.06 $76,438.21 $79,378.36 $82,318.51 $85,255.13 $88,197.39RatingManagement AdministrationMaintenance and OperationsCode Administration AdministrativeCity Council Approval 06/20/17; 07/05/17; 09/19/17; 10/17/17; 01/16/18; and 04/03/181 of 3Effective 06/26/17Revisions 07/06/17; 09/20/17; 10/18/17; 01/22/18; and 04/16/18EXHIBIT A 69Click here to return to AgendaEXHIBIT A 2017/18 Salary ScheduleWorking Title Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7RatingAssociate PlannerC42 Annually$74,273.87 $77,368.86 $80,463.85 $83,558.84 $86,653.83 $89,745.11 $92,842.33Business AnalystC42 Annually $74,273.87$77,368.86 $80,463.85 $83,558.84 $86,653.83 $89,745.11 $92,842.33Community Resources AnalystC42 Annually $74,273.87$77,368.86 $80,463.85 $83,558.84 $86,653.83 $89,745.11 $92,842.33Financial Services AnalystC42 Annually $74,273.87$77,368.86 $80,463.85 $83,558.84 $86,653.83 $89,745.11 $92,842.33Human Resources AnalystC42 Annually $74,273.87$77,368.86 $80,463.85 $83,558.84 $86,653.83 $89,745.11 $92,842.33Management AnalystC42 Annually $74,273.87$77,368.86 $80,463.85 $83,558.84 $86,653.83 $89,745.11 $92,842.33Public Safety AnalystC42 Annually $74,273.87$77,368.86 $80,463.85 $83,558.84 $86,653.83 $89,745.11 $92,842.33Senior AccountantC42 Annually $74,273.87$77,368.86 $80,463.85 $83,558.84 $86,653.83 $89,745.11 $92,842.33Traffic Operations AnalystC42 Annually $74,273.87$77,368.86 $80,463.85 $83,558.84 $86,653.83 $89,745.11 $92,842.33Management AnalystC43Annually $77,989.82$81,239.65 $84,489.49 $87,739.33 $90,989.16 $94,235.10 $97,487.27Senior PlannerC44 Annually $82,643.13$86,086.87 $89,530.61 $92,974.35 $96,418.09 $99,857.70 $103,303.91Building OfficialD61 Annually $92,875.95$96,746.10 $100,616.24 $104,486.38 $108,356.52 $112,222.02 $116,094.94Community Resources ManagerD61 Annually $92,875.95$96,746.10 $100,616.24 $104,486.38 $108,356.52 $112,222.02 $116,094.94Customer Service Center ManagerD61Annually$92,875.95$96,746.10$100,616.24$104,486.38$108,356.52$112,222.02$116,094.94Human Resources ManagerD61Annually $92,875.95$96,746.10 $100,616.24 $104,486.38 $108,356.52 $112,222.02 $116,094.94Maintenance ManagerD61 Annually $92,875.95$96,746.10 $100,616.24 $104,486.38 $108,356.52 $112,222.02 $116,094.94Planning ManagerD61 Annually $92,875.95$96,746.10 $100,616.24 $104,486.38 $108,356.52 $112,222.02 $116,094.94Public Safety ManagerD61 Annually $92,875.95$96,746.10 $100,616.24 $104,486.38 $108,356.52 $112,222.02 $116,094.94Senior Civil EngineerD61 Annually $92,875.95$96,746.10 $100,616.24 $104,486.38 $108,356.52 $112,222.02 $116,094.94City ClerkD62 Annually $97,519.75$101,583.40 $105,647.05 $109,710.70 $113,774.34 $117,833.12 $121,899.69City EngineerD65 Annually $112,891.31$117,595.49 $122,299.67 $127,003.85 $131,708.03 $136,406.57 $141,114.13Community Resources DirectorE82 Annually $124,462.66$129,649.01 $134,835.37 $140,021.73 $145,208.09 $150,388.23 $155,578.32Design and Development Director/EngineerE82 Annually $124,462.66$129,649.01 $134,835.37 $140,021.73 $145,208.09 $150,388.23 $155,578.32Facilities DirectorE82 Annually $124,462.66$129,649.01 $134,835.37 $140,021.73 $145,208.09 $150,388.23 $155,578.32Finance Director/TreasurerE82 Annually $124,462.66$129,649.01 $134,835.37 $140,021.73 $145,208.09 $150,388.23 $155,578.32City ManagerF101* Annually $168,260.80$175,272.23 $182,283.66 $189,295.08 $196,306.51 $203,309.52 $210,326.00Recreation LeaderA01 Hourly $11.00 $11.55 $12.10 $12.65 $13.20Senior Recreation LeaderA02 Hourly $15.00 $15.75 $16.50 $17.25 $18.00Office AssistantA11 Hourly $18.57 $19.50 $20.43 $21.36 $22.28Administrative TechnicianB21 Hourly $24.16 $25.37 $26.57 $27.78 $28.99Plans ExaminerB24 Hourly $30.21 $31.72 $33.23 $34.74 $36.25Software Program Report WriterB24 Hourly $30.21 $31.72 $33.23 $34.74 $36.25MayorMonthly $2,800.00Council MembersMonthly $2,300.00Management Administration (continued)Continued on Next PageManagementPart-Time EmployeesElected Official PositionsCity Council Approval 06/20/17; 07/05/17; 09/19/17; 10/17/17; 01/16/18; and 04/03/182 of 3Effective 06/26/17Revisions 07/06/17; 09/20/17; 10/18/17; 01/22/18; and 04/16/1870Click here to return to Agenda 2017/18 Salary ScheduleWorking Title Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7RatingMeeting StipendCommunity Services Commission$75.00Construction Appeals Board$0.00Housing Commission$50.00Financial Advisory Commission $75.00Oversight Board$0.00Planning Commission $100.00Per MeetingPer MeetingPer MeetingPer MeetingBoards and Commission MembersPer MeetingPer MeetingCity Council Approval 06/20/17; 07/05/17; 09/19/17; 10/17/17; 01/16/18; and 04/03/183 of 3Effective 06/26/17Revisions 07/06/17; 09/20/17; 10/18/17; 01/22/18; and 04/16/1871Click here to return to Agenda 72Click here to return to Agenda CT O A TAATOR E POSTOSE ECT E APR 16 2 1ATOR E WOR TTE RATAdministrative Administrative Assistant Administrative/Office Assistant A11 Administrative Technician Administrative Technician B21Executive Assistant B22Code Administration Code Administration Technician Building Inspector I B22Code Compliance Officer I B22Permit Technician B22 Code Administration Specialist Building Inspecttor II B23Code Compliance Officer II B23Construction Inspector B23 Code Administration Supervisor Animal Control/Code Compliance Supervisor B32 Permit Operations Supervisor B32 Plans Examiner/Inspection Supervisor B32 Code Administration Coordinator Construction Manager/Inspection Supervisor C43 Maintenance Operations Maintenance & Operations Worker Buildings Worker A11 Maintenance Worker I A11 Parks Worker A11 Maintenance Worker II A12 Maintenance & Operations Technician Traffic Signal Technician B21 Buildings Coordinator B23 Maintenance & Operations Coordinator Maintenance Foreman B24 Parks Foreman B24 Maintenance & Operations Superintendent Buildings Superintendent B32 Parks Superintendent B32 Management Administration Management Assistant Community Resources Coordinator B21 Management Assistant B21/B22 Account Technician B22 Vacation Rental/License Assistant B22 Management Specialist Deputy City Clerk B24/B25 Junior Accountant B24 Management Specialist B24/B25 Marketing Events Supervisor B24 Accountant B32 B25 Management Coordinator Marketing Management Coordinator C41 Management Analyst Associate Planner C42 Business Analyst C42 Community Resources Analyst C42 Financial Services Analyst C42 Human Resources Analyst C42 Management Analyst C42/C43 Public Safety Analyst C42 Senior Accountant C42 Traiffic Operations Analyst C42 Associate Engineer C43 Senior Planner C44 Management Manager Building Official D61 Community Resources Manager D61 Customer Service Center Manager D61 Human Resources Manager D61 Maintenance Manager D61 Planning Manager D61 Public Safety Manager D61 Senior Civil Engineer D61 City Clerk D62 City Engineer D65 Director Community Resources Director E82 Design Development Director/City Engineer E82 Facilities Director E82 Finance Director/Treasurer E82 City Manager City Manager F101* C ASS CAT O SPEC CAT O * City Manager salary is determined by City Council contract 73 Click here to return to Agenda 74 City of La Quinta CITY COUNCIL MEETING: April 3, 2018 STAFF REPORT AGENDA TITLE: APPROVE AMENDMENT NO. 3 TO THE FACILITY USE AGREEMENT WITH THE LA QUINTA ARTS FOUNDATION EXTENDING THE TERM TO 2019 FOR THE ANNUAL ARTS FESTIVAL RECOMMENDATION Approve Amendment No. 3 to the Facility Use Agreement with the La Quinta Arts Foundation and authorize the City Manager to execute the Amendment. EXECUTIVE SUMMARY The La Quinta Arts Foundation (Foundation) has a Facility Use Agreement (Agreement) with the City for use of the Civic Center Campus, portions of City Hall and Library parking lots, Wellness Center, and undeveloped parcels used as parking lots for the La Quinta Arts Festival (LQAF). The Agreement expires June 30, 2018. Amendment No. 3 (Amendment) (Attachment 1) would extend the Agreement term through March 31, 2019. The Foundation has approved the proposed Amendment. FISCAL IMPACT The fees and costs to the Foundation would be the same as under the existing agreement. The Foundation would be exempt from facility use fees, which is approximately $28,000 and the City would incur the Burrtec charges of approximately $3,000 paid from the Recycling Fund. The Foundation would continue to pay all other applicable services and fees including traffic, police, fire, and business license to conduct the Festival. In 2018, the Festival generated $6,800 in business license revenue and approximately $66,000 in sales tax. BACKGROUND/ANALYSIS In 2008, the City entered into a Facility Use Agreement with the Foundation for use of City facilities. This Amendment would allow the 2019 festival to take place at Civic Center Campus. In 2020, the City will be implementing roadway, intersection, and flood control improvements per the Active Transportation Planning (ATP) grant, which will impact the use of Civic Center Campus for the Festival. The City and Foundation are working on developing a location called the SilverRock Event Site in La Quinta that could BUSINESS SESSION ITEM NO. 1 75 accommodate the festival in 2020 and beyond. An Ad Hoc SilverRock Event Site committee has been created to develop design concepts for Council consideration in the near future. The Amendment would make the following changes: Amends Section 2 (Period of Use of Property) to provide use of City property for the 2019 La Quinta Arts Festival; Amends Section 3 (Term) to extend the agreement until March 31, 2019; Removes all references to the “Blues & Brews Event” and “Art Under the Umbrellas” as the Foundation no longer produces those events. The Amendment makes the following clarifications: Clarifies the properties used as depicted on Exhibit A. This better identifies all properties used by the Foundation for the Festival, taking into account property acquired by the City since the last amendment; Confirms that construction activity relating to the Village Advanced Transportation Program (ATP) project will not begin until after the 2019 Festival; Affirms the City’s waiver of fees for facility use and City payment of Burrtec solid waste removal charges in exchange for City sponsorship recognition for the 2019 Festival. ALTERNATIVES Council may elect to not approve this Amendment. Prepared by: Chris Escobedo, Director – Community Resources Approved by: Frank Spevacek, City Manager Attachment: 1. Amendment No. 3 76 77 78 79 80 7 7 0 1 2 3 0 11 7 7 0 1 2 3 0 11 7 7 0 1 2 4 0 1 0 7 7 0 1 2 4 0 1 0 7 7 0 1 2 5 0 0 3 7 7 0 1 2 5 0 0 3 7 7 0 1 2 5 0 0 2 7 7 0 1 2 5 0 0 2 7 7 0 1 2 3 0 1 2 7 7 0 1 2 3 0 1 2 City of La QuintaPlanning DivisionCity Owned Properties September 2017® 81 82 City of La Quinta CITY COUNCIL MEETING: April 3, 2018 STAFF REPORT AGENDA TITLE: APPROVE MULTI AGENCY PARTICIPATING AGREEMENT FOR COACHELLA VALLEY REGIONAL TRAFFIC SIGNAL SYNCHRONIZATION PROGRAM BETWEEN COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS AND PARTICIPATING CITIES OF LA QUINTA, CATHEDRAL CITY, DESERT HOT SPRINGS, COACHELLA, RANCHO MIRAGE, INDIAN WELLS, INDIO, PALM DESERT, PALM SPRINGS, AND THE COUNTY OF RIVERSIDE RECOMMENDATION Approve Multi Agency Participating Agreement for Coachella Valley Regional Traffic Signal Synchronization Program between Coachella Valley Association of Governments and participating cities of La Quinta, Cathedral City, Desert Hot Springs, Coachella, Rancho Mirage, Indian Wells, Indio, Palm Desert, Palm Springs, and the County of Riverside and authorize the City Manager to execute the agreement. EXECUTIVE SUMMARY The Multi Agency Participating Agreement (Agreement) outlines each agency’s responsibility for the Coachella Valley Regional Traffic Signal Synchronization Program. Key Agreement points for consideration: 1) City required to waive fees to implement program; 2) City must allow the Coachella Valley Association of Governments (CVAG) access to its signal controllers and equipment; and 3) if City pulls out of agreement, it must reimburse CVAG for costs expended within La Quinta traffic corridors. At the February 26, 2018 CVAG Executive Committee Meeting, the Signal Synchronization Master Plan and Participating Agreement (Attachment 1) was approved and now must be approved by participating Cities. FISCAL IMPACT The estimated cost of waiving encroachment permit fees is $4,000 BACKGROUND/ANALYSIS In 2013, CVAG issued a call for projects for the Congestion Management Air Quality (CMAQ) grant and received numerous applications for traffic signal synchronization projects. CVAG determined that the best use of the $7.7 million in grant funding was to establish a regional signal synchronization project. CVAG would serve as the lead agency and a masterplan was prepared by Advantec Consulting Engineers for regional traffic signal synchronization. BUSINESS SESSION ITEM NO. 2 83 If this agreement is approved, it would waive encroachment fees in the amount of $4,000 to be paid by CVAG. The nominal expense of the fee waiver is offset by the estimated $500,000 in new traffic signal equipment that the City will receive under this agreement. The Agreement would also provide CVAG access to the signal controllers and equipment in the City, which CVAG would need to monitor regional traffic. The City would still retain control over the system and any changes to signal timing and coordination. In the event the City withdrew from this agreement, the Agreement would require the City to reimburse CVAG for the costs of the new equipment and software provided by this Agreement. A Transportation Systems Management and Operations Committee comprised of participating agency engineering staff would oversee and work out future signal timing issues and protocols. This agreement establishes a Transportation Systems Management and Operations Committee to oversee and work out future signal-timing issues and protocols. ALTERNATIVES Staff does not recommend an alternative. Prepared by: Bryan McKinney P.E., City Engineer Approved by: Chris Escobedo, Acting City Manager Attachment: 1. Participating Agreement between CVAG and the Participating Agencies 84 ATTACHMENT 1 85 86 87 88 89 90 91 92 93 94 City of La Quinta CITY COUNCIL MEETING: April 3, 2018 STAFF REPORT AGENDA TITLE: ADOPT A RESOLUTION TO APPROVE A DEBT MANAGEMENT POLICY RECOMMENDATION Adopt a resolution to approve a Debt Management Policy. EXECUTIVE SUMMARY •The Debt Management Policy (Policy) provides guidelines for debt issuance practices, management of debt, and adherence to various laws and regulations. •The Policy governs all current and future debt issued by the City or its related entities. •The City does not plan to issue bonds at this time and any future bonds would require voter approval. •Staff, City Attorney, and two independent auditing firms have reviewed the proposed Policy. The Policy conforms to current laws. FISCAL IMPACT - None BACKGROUND/ANALYSIS Debt management policies are written guidelines, allowances, and restrictions that guide the debt issuance practices, management of debt, and adherence of various laws and regulations. The policy signals to rating agencies and the capital markets that the City is well managed and likely to meet its debt obligations in a timely manner. Senate Bill 1029 requires issuers of debt to formally adopt debt management policies addressing: •The purpose for which the debt proceeds may be used; •The types of debt that may be issued; •The relationship of the debt to, and integration with, the issuer’s capital improvement program or budget; •The policy goals related to the issuer’s planning goals and objectives; and •The internal control procedures that the issuer has implemented to ensure that the proceeds of debt issuance will be directed to their intended use. The City does not plan on issuing bonds at this time and any future general obligation bonds would require voter approval. However, the City currently has one general obligation lease revenue bond, which matures in October 2018. The Successor Agency to the former Redevelopment agency holds four tax allocation bonds, which are not General Fund debt BUSINESS SESSION ITEM NO. 3 95 obligations. This policy governs all debt issued by the City or its related entities for which the governing body consists of the same individuals as the City Council of the City (including, but not limited to, the La Quinta Finance Authority, Successor Agency to the La Quinta Redevelopment Agency, and the Housing Authority of the City of La Quinta). To ensure compliance with current laws and regulatory requirements, the proposed Policy was reviewed by staff, City Attorney, and two independent governmental accounting auditing firms. ALTERNATIVES The Council may approve as presented, incorporate changes, or request further review. Prepared by: Karla Campos, Finance Director Approved by: Chris Escobedo, Acting City Manager 96 RESOLUTION NO. 2018 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, ADOPTING A DEBT MANAGEMENT POLICY WHEREAS, the Debt Management Policy sets forth debt management objectives and guidelines for the issuance and administration of debt and other financing obligations of the City of La Quinta; and WHEREAS, the debt management policy provides transparency and consistency; and WHEREAS, debt management policies demonstrate a commitment to long- term capital and financial planning for the efficient use and expenditure of public funds. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: SECTION 1. The debt management policy attached hereto as Exhibit A and incorporated herein by reference shall govern debt issuance guidelines, allowances, and restrictions. SECTION 2. This policy is consistent, with Section 8855(i) of the California Government Code as amended by SB 1029 enacted as Chapter 307, Statues of 2016. SECTION 3. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The City Council hereby declare that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof. SECTION 4. This Resolution shall become effective upon adoption. The Debt Management Policy adopted by this Resolution shall go into effect immediately. PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City Council held on this day of April 2018 by the following vote: AYES: NOES: 97 Resolution No. 2018- Debt Management Policy Adopted: Page 2 of 2 ABSENT: ABSTAIN: __________________________ LINDA EVANS, Mayor City of La Quinta, California ATTEST: ________________________________________ SUSAN MAYSELS, City Clerk City of La Quinta, California (CITY SEAL) APPROVED AS TO FORM: _______________________________________ WILLIAM H. IHRKE, City Attorney City of La Quinta, California 98 Exhibit A to Council Resolution No. 2018- Debt Management Policy Adopted: Page 1 of 10 DEBT MANAGEMENT POLICY 1.PURPOSE: This Debt Management Policy (the "Policy") sets forth debt management objectives and guidelines for the issuance and administration of debt and other financing obligations of the City of La Quinta and its related entities for which the governing body consists of the same individuals as the City Council of the City (including, but not limited to, the La Quinta Finance Authority, Successor Agency to the La Quinta Redevelopment Agency, and the Housing Authority of the City of La Quinta). As used in this Policy, "City" shall mean the City and/or the City and its related entities, as the context may require. As used in this Policy, "debt" shall be interpreted broadly to mean bonds, notes, certificates of participation, financing leases, or other financing obligations, but the use of such term in this Policy shall be solely for convenience and shall not be interpreted to characterize any such obligation as an indebtedness or debt within the meaning of any constitutional debt limitation where the substance and terms of the obligation comport with exceptions thereto. Prudent management of the City's debt program is necessary to achieve cost­ effective access to capital markets. 2.SCOPE: This Policy establishes the policies of the City of La Quinta and its related entities with respect to the issuance and administration of debt. 3.GENERAL POLICY: Objectives: This section of the Policy sets forth certain equally important objectives for the City and establishes overall parameters for responsibly issuing and administering the City's debt. Additionally, this Policy is intended to facilitate compliance by the City, and is consistent, with Section 8855(i) of the California Government Code as amended by Senate Bill 1029 ("SB 1029"), enacted as Chapter 307, Statutes of 2016. •Minimize debt service and issuance costs •Maintain access to cost-effective borrowing •Achieve and maintain highest reasonable credit rating •Full and timely repayment of debt •Maintain compliance with financial disclosure and reporting undertakings 99 Exhibit A to Council Resolution No. 2018- Debt Management Policy Adopted: Page 2 of 10 •Ensure compliance with state and federal laws and regulations 4.RELATIONSHIP TO CAPITAL IMPROVEMENT PROGRAM OR BUDGET, PLANNING GOALSAND OBJECTIVES The City is committed to long-term financial planning, maintaining appropriate reserves levels and employing prudent practices in governance, management and budget administration. The City may issue debt for the purposes stated in this Policy and to implement policy decisions incorporated in the City's annual operations and capital budgets and the City's five-year capital improvement plan. This Policy is intended to ensure that debt levels and their related annual costs will advance the City's planning goals and objectives. 5.GOVERNING AUTHORITY AND RESPONSIBILITY Pursuant to the provisions of the City of La Quinta Charter and sections 37209 and 40805.5 of the Government Code of the State of California, the Finance Director shall be responsible for all of the financial affairs of the City. This Policy grants the Finance Director the authority to select the financing team (subject to City Council approval, if required), coordinate the administration and issuance of debt, communicate with the rating agencies, as well as to fulfill all the pre-issuance and post-issuance disclosure information. The Finance Director or its designee will use the Request for Proposal (RFP) process to select various Financing Team Members. Requests for Proposals for Financial Advisors should be done on a periodic basis not to exceed ten (10) years but is subject to review after four (4) years. Below is a brief description of the main Financing Team, along with their functions. The typical Debt Financing Team consists of: A. Financial Advisor •Assists with capital planning and long term financial planning. •Coordinates the financing and debt issuance process. •Helps evaluate underwriter proposals and provides financial analysis and recommendations. •Assists with the securing of other professional services and other members of the financing team. •Monitors and evaluates market conditions for opportunities to issue debt at low interest rates. •Works with the City and underwriter to develop investor outreach and market approach. •Manages competitive bid process. •Ensures negotiated prices are fair and reasonable in the marketplace. 100 Exhibit A to Council Resolution No. 2018- Debt Management Policy Adopted: Page 3 of 10 B. Bond Counsel •Prepare an approving legal opinion. •Provide expert and objective legal opinion and advice. •Prepare and review documents necessary to authorize, issue, sell and deliver the bonds, as well as coordination of the authorization and execution of closing documents. •Review legal issues relating to the structure of the bond issue. •Prepare election proceedings or pursue validation proceedings if necessary. •Review or prepare those sections of the official statement that relate to the bonds, financing documents, bond counsel opinion, and tax exemption. •Assists the City with presenting information to bond rating organizations and credit enhancement providers relating to legal issues affecting the issuance of the bonds. •Review or prepare the Notice of Sale or Bond Purchase Contract for the bonds and review or draft the continuing disclosure undertaking of the City. •Post-issuance advice for bond covenant compliance. C. Underwriter •Serves as the original purchaser of the bonds and assumes the risk of selling the bonds to the public. •Provides the City with market knowledge. •Assist with credit analysis and preparation. •Premarketing of the bonds. •Pricing and original purchase of bonds from the City. •Sale to public market of the bonds. D. Placement Agent •Usually a registered underwriter acting in the more limited capacity of placement agent when a direct placement is used as the method of sale. •Provides the City with proposed financial institutions eligible for direct purchase. •Assist the City with requests for proposals for direct purchase by financial institutions. E. Trustee/Fiscal Agent/Paving Agent •Establishes and holds the funds and accounts relating to the bond issue. •Maintains the list of names and addresses of all registered owners of the bonds and recordings of transfers and exchanges of the bonds. •Acts as the authenticating agent. •Acts as the paying agent. 101 Exhibit A to Council Resolution No. 2018- Debt Management Policy Adopted: Page 4 of 10 •Protects the interests of the bondholders by monitoring compliance with covenants and acts on behalf of the bondholders in the event of default. •As the escrow agent holds proceeds or the investments acquired with the proceeds of a refunding bond issue and uses those funds, or payments received on those investments, to pay debt service on the refunded bonds. 6.TYPES OF DEBT The City recognizes that there are numerous types of financing structures and funding sources available, each with specific benefits, risks, and costs. All potential funding sources are reviewed by management within the context of this Policy and the overall portfolio to ensure that any financial product or structure is consistent with the City's objectives. Regardless of what financing structure(s) is utilized, due diligence review must be performed for each transaction, including the quantification of potential risks and benefits, and analysis of the impact on City creditworthiness and debt affordability and capacity. Prior to the issuance of debt or other financing obligations to finance a project, the City will carefully consider the overall long-term affordability of the proposed debt issuance and alternative financing sources, such as grants. The City shall not assume debt or other financing obligations without conducting an objective analysis of the City's ability to assume and support additional debt service payments. The City will consider its long-term revenue and expenditure trends and the impact on operational flexibility. The evaluation process shall include a review of generally accepted measures of affordability and will strive to achieve and or maintain debt levels consistent with its current operating and capital needs. In addition, the City’s future borrowing capability is limited by the debt coverage ratio and debt limitations required by bond covenants. The following are the types of debt the City could issue: A. New Money Bonds New Money bonds are bonds issued to finance the cost of capital improvement projects or other large and extraordinary costs as approved by the City Council. B. Refunding Bonds Refunding bonds are bonds issued to refinance (refund) previously issued outstanding debt. The City may issue refunding bonds to refinance the principal of and interest on outstanding bonds or other debt to achieve debt service savings, restructure scheduled debt service, convert from or to a variable or fixed interest rate, change or modify the source(s) of payment and security for the refunded debt, or modify covenants otherwise binding upon the City. Refunding bonds may be issued either on a current or advance basis. See also the "Refunding" subsection contained in Section 7 of this Policy. C. Revenue Bonds and Certificates of Participation 102 Exhibit A to Council Resolution No. 2018- Debt Management Policy Adopted: Page 5 of 10 Revenue Bonds are generally issued by enterprise funds that are financially self-sustaining without the use of taxes and therefore rely on the revenues collected by the enterprise fund to repay the debt. Sometimes, Certificates of Participations ("COPs") are issued instead of revenue bonds, which in this case would typically be secured by an installment sale arrangement between the City and another public entity and by the revenues collected from the enterprise fund. Each COP represents a fractional share of an issuer's installment payment to be received by the investor. D. Assessment Bonds The Improvement Bond Act of 1915 (Streets and Highways Code Section 8500 et seq.) allows the City to issue bonds to finance the "special benefit" improvements on the real property within its jurisdiction provided by the City. Assessment installments typically are collected through the secured property tax roll of the county. E. Community Facilities District Mello-Roos is a form of financing for a variety of local agencies, including but not limited to cities and joint powers authorities. Mello-Roos Community Facilities Districts (referred to as "CFDs") raise money through special taxes that must be approved by 2/3rds of the voters within the district. While a CFD may be formed to finance public improvements and services within the district, bonds cannot be issued to pay for services financed through a CFD. The taxes are secured by a continuing lien and typically are levied annually against property within the district through the secured property tax roll of the county. F. General Obligation (GO) Bonds In California, GO Bonds require a 2/3 voter approval. GO Bonds are secured by a dedicated, voter-approved property tax override rate (i.e., a property tax more than the 1% basic ad valorem property tax rate) in amounts sufficient to meet debt service requirements. While the dedicated revenue stream to repay the debt makes GO Bonds an attractive option, additional considerations for this financing mechanism include the time and expense of an election, the possibility that the electorate will not approve the ballot measure, and the legal bonding capacity limit for GO Bonds. G. General Fund-Supported Debt General Fund Supported Debt generally includes Certificates of Participation (COPs) and Lease Revenue Bonds (LRBs) that are lease obligations secured by a lease-back arrangement between the City and another public entity. Typically, the City appropriates available General Fund moneys to pay the lease payments to the other public entity and, in turn, the public entity uses such lease payments received to pay debt service on the bonds or COPs. General Fund Supported Debt may also include bonds issued to refund obligations imposed by law, such as judgments obligation bonds (JOBs), unfunded accrued actuarial liabilities for pension plans (pension obligation bonds (POBs), or operating leases (such as computers, printers, hardware). These obligations do not constitute indebtedness under the state constitutional debt limitation and, therefore, are not subject to voter approval. 103 Exhibit A to Council Resolution No. 2018- Debt Management Policy Adopted: Page 6 of 10 Payments to be made under valid leases are payable only in the year in which use, and occupancy of the leased property is available, and lease payments may not be accelerated. Lease financing requires the fair market rental value of the leased property to be equal to or greater than the required debt service or lease payment schedule. The lessee (City) is obligated to include in its annual budget and appropriate the rental payments that are due and payable during each fiscal year the lessee has use of the leased property. H. Tax Increment Financing Tax Increment Financing is a financing method whereby a portion of ad valorem property taxes (commonly called the "tax increment") is allocated to an entity, such as a successor agency to redevelopment agency (Successor Agency), an enhanced infrastructure financing district (EIFD), or a community revitalization and investment authority (CRIA), and the entity is permitted to incur debt payable from and secured by the tax increment revenues. Tax increment debt for redevelopment agencies and Successor Agencies is entitled to the benefits of Article XVI, Section 16, of the California Constitution. I. Fixed vs. Variable Rate Debt Fixed interest rate debt is typically preferred to maintain a more predictable debt service burden. Variable rate debt obligations ("VRDOs") can be utilized on a limited basis when the potential advantages of capturing the lowest interest rates available in the current market outweigh forecasted risks (including interest rate risk, remarketing risk, liquidity risk, and risk of expiration of credit support instruments prior to the final maturity of the VRDOs). While VRDOs sometimes can provide a lower cost of borrowing in the short run, they generally involve greater medium-term or long-term risk. Due diligence review must be performed for each transaction, including the quantification of potential risks and benefits, analysis of the impact on City creditworthiness and debt affordability and capacity, and an evaluation of the ability of the City to withstand the medium-term or long-term risk attendant to VRDOs, including the feasibility of exit strategies. J. Derivative Products The use of certain derivative products, such as interest rate swaps, may be considered to hedge the risks of VRDOs, to the extent the City has such debt outstanding or under consideration. The City will exercise extreme caution in the use of derivative instruments for hedging purposes and will consider their utilization only when sufficient understanding of the products and sufficient expertise for their appropriate use has been developed. K. Conduit Debt Conduit financing provides for the issuance of securities by a government agency to finance a project of a third party, such as a non-profit organization or other private entity. The City may sponsor conduit financings for those activities that have a general public purpose and 104 Exhibit A to Council Resolution No. 2018- Debt Management Policy Adopted: Page 7 of 10 are consistent with the City's overall service and policy objectives. Unless a compelling public policy rationale exists, such conduit financings will not in any way pledge the City's faith and credit. L. Interfund Borrowing The City may borrow internally from other funds with surplus cash in lieu of issuing bonded debt. Purposes, warranting the use of this type of borrowing could include short-term cash flow imbalances due to grant terms, interim financing pending the issuance of bonds, or capital financing in lieu of bonds. Interfund loans will be evaluated on a case by case basis. Any borrowing between two City funds which exceeds 12 months require a repayment schedule approved by City Council and shall include an interest rate based on market conditions at the time the loan was taken out. M. Joint Powers Authority (JPA) In addition to some of the long and short-term financing instruments, the City may also consider joint arrangements with other governmental agencies when a project serves the public interest beyond City boundaries. 7.PURPOSE OF DEBT Long-term Debt - Long-term debt may be used to finance the purchase or improvement of land, infrastructure, facilities or equipment when it is appropriate to spread these costs over more than one budget year. Long­ term debt may also be used to fund capitalized interest, costs of issuance, required reserves, and any other financing related costs which may be legally capitalized. Long-term debt may not be used to fund City operating costs. Short-term Debt - Short-term debt, such as notes, commercial paper, and lines of credit, will be studied as an interim source of funding in anticipation of long term borrowing. Short-term debt may be issued for the same purpose as long-term debt, including capitalized interest and other financing related costs. In addition, short-term debt borrowing may be considered to address justifiable cash flow requirements to meet short­ term operating needs to provide necessary public services, subject to applicable restrictions in California law. Refunding - Periodic reviews of existing debt will be undertaken to identify refunding opportunities. Refunding will be considered (within state law and federal tax law constraints) if and when there is a net benefit of the refunding. Non-economic refunding may be considered to achieve City goals relating to changes in covenants, call provisions, operational flexibility, tax status, or the debt service profile. The City may purchase its bonds in the open market for the purpose of retiring the obligation when the purchase is cost effective. Except for instances in which a bullet payment or spike in debt service is being refinanced, the City will generally seek to achieve debt service savings which, on a net present value 105 Exhibit A to Council Resolution No. 2018- Debt Management Policy Adopted: Page 8 of 10 basis, are at least 3% of the debt being refinanced. Refunding’s which produce a net present value savings of less than 3% will be considered on a case-by-case basis. Notwithstanding the foregoing, a refunding of Successor Agency bonds shall be determined based on the requirements of Health and Safety Code Section 34177.5. 8.MANNER OF SALE There are several market factors that will affect the success of a bond offering, and each should be carefully considered before selecting a method of sale. These factors include, but are not limited to, the following: 1) market perception of the City's credit quality, 2) interest rate volatility, 3) size of the proposed issue, 4) complexity of the proposed issue, and 5) competition with other issuers for investor interest (bond supply). Competitive Sales of Bonds The terms and prices of the bonds are determined by the City, with the assistance of its financial advisor, through a bidding process by which the City publishes a notice of sale for the bonds, and interested underwriters submit bids for the respective terms upon which they propose to purchase the bonds. The sale is awarded to the underwriter judged to have submitted the best bid that offers the lowest interest rate, considering underwriting spread, interest rates and any discounts or premiums. Negotiated Sale of Bonds A method of sale for bonds, notes, or other financing vehicles in which the City selects in advance, based on proposals received or by other means, one of more underwriters to work with it in structuring, marketing and finally offering an issue to investors. The negotiated sale method is often used when the proposed debt is a first-time sale by a issuer (a new credit), the issuer of the debt is a relatively small entity, the proposed debt involves a complex security structure, such as a variable rate transaction, the proposed debt is an unusually large issue, or in a highly volatile or congested market. Direct or Private Placement A direct placement or private placement is a variation of a negotiated sale in which the City, with the help of a financial advisor and a placement agent, will attempt to place the entire new issue directly with an investor (typically, a financial institution). The investor will negotiate the specific terms and conditions of the financing before agreeing to purchase the issue. Direct or private placements are someti mes undertaken when the transaction is complex or unique, requiring direct negotiations with the investor, when market conditions indicate that a direct or private placement may result in a lower interest rate on the debt, or because the issue is small, and a direct offering provides economies of scale. 9.PERFORMANCE STANDARDS The City of La Quinta strives to maintain 'investment grade' ratings in the municipal market of “A” (without regard to numerical or "+" or "-" modifiers within the "A" category). Ratings assigned by a nationally-recognized statistical rating organization of "BBB" 106 Exhibit A to Council Resolution No. 2018- Debt Management Policy Adopted: Page 9 of 10 or higher are considered an adequate investment grade. 10.MARKET RELATIONSHIPS The Finance Director will be responsible for maintaining relationships with investors, credit analysts, and rating agencies. 11.ON-GOING DEBT ADMINISTRATION The Finance Director will regularly review the City's outstanding obligations, particularly in declining interest rate environments. When rates begin to approach levels at which refunding is cost-effective, the City shall select a financing team to begin preparations for a refunding issue. Continuing Disclosure The Finance staff will ensure that the City's annual financial statements and associated reports are posted on the City's web site. The City will also contract with Consultant(s) to comply with its contractual undertakings entered into pursuant to the Securities and Exchange Commission Rule 15c2-12 by filing its annual financial statements, disclosure material events, and other financial and operating data for the benefit of its bondholders on the Electronic Municipal Market Access (EMMA) website of the Municipal Securities Rulemaking Board (MSRB). Arbitrage Rebate Compliance and Reporting The use and investment of bond proceeds must be monitored to ensure compliance with applicable arbitrage restrictions. Existing regulations for tax­ exempt debt require that issuers calculate rebate liabilities related to any bond issues, with rebates paid to the Federal Government every five years and as otherwise required by applicable provisions of the Internal Revenue Code and regulations. The Finance Director shall contract and work with a specialist to ensure that proceeds and investments are tracked in a manner that facilitates accurate, complete calculations, and if necessary, timely rebate payments. Compliance with Other Bond Covenants In addition to financial disclosures and arbitrage, the City is also responsible for verifying compliance with all undertakings, covenants, and agreements of each bond issuance on an ongoing basis. This typically includes ensuring: •Annual appropriation of revenues to meet debt service payments; •Taxes/fees are levied and collected where applicable; •Timely transfer of debt service payments to the trustee; and •Compliance with insurance requirements. The City shall comply with all covenants and conditions contained in governing law and any legal documents entered into at the time of the bond offering. The Finance Director will coordinate verification and monitoring of covenant compliance. 12.INTERNAL CONTROL PROCEDURES REGARDING USE OF DEBT PROCEEDS 107 Exhibit A to Council Resolution No. 2018- Debt Management Policy Adopted: Page 10 of 10 One of the City's priorities in the management of debt is to assure that the proceeds of the debt will be directed to the intended use for which the debt has been issued. In furtherance of this priority, the following procedures shall apply: A. The Finance Director shall retain a copy of each annual report filed with the California Debt and Investment Advisory Commission (CDIAC) pursuant to Section 8855(k) of the California Government Code concerning (1) debt authorized during the applicable reporting period (whether issued or not), (2) debt outstanding during the reporting period, and (3) the use during the reporting period of proceeds of issued debt. B. In connection with the preparation of each annual report to be filed with CDIAC pursuant to Section 8855(k) of the California Government Code, the Finance Director or the designee of the Finance Director shall keep a record of the original intended use for which the debt has been issued, and indicate whether the proceeds spent during the applicable one-year reporting period for such annual report conform with the intended use (at the time of original issuance or as modified pursuant to the following sentence). If a change in intended use has been authorized after the original issuance of the debt, the Finance Director or the designee of the Finance Director shall indicate in the record when the change in use was authorized and whether the City Council, City Manager, or another City official has authorized the change in intended use. The Finance Director shall report apparent deviations from the intended use in debt proceeds to the City Manager for further discussion, and if the City Manager determines appropriate in consultation with legal counsel (which may be bond counsel, if applicable, or the City Attorney), to the City Council. Additionally, an annual update of all outstanding debt and its adherence to this policy shall be reported to the City Council with the Comprehensive Annual Financial Report. C. If the debt has been issued to finance a capital project and the project timeline or scope of project has changed in a way that all or a portion of the debt proceeds cannot be expended on the original project, the Finance Director shall consult with the City Manager and legal counsel (which may be bond counsel, if applicable, or the City Attorney) as to available alternatives for the expenditure of the remaining debt proceeds (including prepayment of the debt). If deemed advisable by the City Manager after such consultation, direction of the City Council may be sought as to an alternative for the expenditure or use of such remaining debt proceeds. 13.DEBT MANAGEMENT POLICY REVIEW The Finance Director shall review this Policy at a minimum of every five (5) years and recommend any changes to the City Manager and City Council. 108 City of La Quinta CITY COUNCIL MEETING: April 3, 2018 STAFF REPORT AGENDA TITLE: ADOPT A RESOLUTION TO APPROVE REVISIONS TO THE CITY’S PURCHASING AND CONTRACTING POLICY RECOMMENDATION Adopt a resolution to approve revisions to the City’s Purchasing and Contracting Policy. EXECUTIVE SUMMARY The last update to the City’s Purchasing and Contracting Policy (Policy) was October 2015. A review of the Policy was conducted to align it with other City policies, and to incorporate necessary regulatory requirements. Staff, City Attorney, and two independent auditing firms have reviewed the proposed Policy revisions. The Policy conforms to current laws, risk management, and governmental accounting best practices. FISCAL IMPACT – None. BACKGROUND In October 2015, the Council amended the City’s Purchasing and Contracting Policy to adopt Resolution No. 2015-45 setting forth policies and procedures regulating purchasing and contracting. Staff has identified areas of the Policy that require amendments to provide consistency, clarification, meet regulatory requirements, and would facilitate a more efficient process. Exhibit A to the resolution has been redlined, showing the changes to the previous policy. The primary updates and additions include: The addition of the Administrative Guidelines section to address fraud protection, vendor limit, and vendor preferences; The expansion of the Equal Bids section to clarify the process of award selection; The definition of Maintenance and Repair services; Additional definitions under the Emergency Purchases section to clarify purchasing requirements in the event of an emergency; BUSINESS SESSION ITEM NO. 4 109  The addition of General Procurement Standards (Section VII) to comply with the Office of Management and Budget’s (OMB) new guidance requirement Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Title 2 U.S. Code of Federal Regulations Part 200. To ensure compliance with current laws and regulatory requirements, the amended Policy was reviewed by staff, City Attorney, and two independent governmental accounting auditing firms. ALTERNATIVES Council may approve as presented, incorporate changes, or request further review. Prepared by: Claudia Martinez, Senior Accountant Approved by: Karla Campos, Finance Director 110 RESOLUTION NO. 2018 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, ADOPTING A PURCHASING AND CONTRACTING POLICY WHEREAS, purchasing and contracting policies provide a guideline to city employees for purchasing and contracting for goods, services and projects to support, enhance and supplement city operations, and WHEREAS, purchasing and contracting policies provide transparency and consistency, and WHEREAS, purchasing and contracting policies enable the Finance department to maintain a system of financial controls for the efficient use and expenditure of public funds. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: SECTION 1. The purchasing and contracting policy attached hereto as Exhibit A and incorporated herein by reference shall govern the purchase of city supplies, goods, equipment, services and construction projects. SECTION 2. This policy, as applicable, shall constitute the procedures and rules governing the solicitation of bids and award of contracts for public works projects pursuant to Chapter 3.12, and shall constitute the procedures and rules governing the solicitation and selection of firms for services pursuant to Chapter 3.12, of the La Quinta Municipal Code. SECTION 3. Resolution No. 2015-045 is hereby repealed. This Resolution supersedes and replaces Resolution No. 2015-045. SECTION 4. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The City Council hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof. SECTION 5. This Resolution shall become effective upon adoption. The Purchasing and Contracting Policy adopted by this Resolution shall go into effect immediately. 111 Resolution No. 2018- Purchasing & Contracting Policy Adopted: April 3, 2018 Page 2 of 22 PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City Council held on this 3rd day of April 2018 by the following vote: AYES: NOES: ABSENT: ABSTAIN: __________________________ LINDA EVANS, Mayor City of La Quinta, California ATTEST: ________________________________________ SUSAN MAYSELS, City Clerk City of La Quinta, California (CITY SEAL) APPROVED AS TO FORM: _______________________________________ WILLIAM H. IHRKE, City Attorney City of La Quinta, California 112 Resolution No. 2018- Purchasing & Contracting Policy Adopted: April 3, 2018 Page 3 of 22 EXHIBIT A CITY OF LA QUINTA, CALIFORNIA PURCHASING AND CONTRACTING POLICY I. GENERAL RULES; EXCEPTIONS. This Purchasing and Contracting Policy (Policy) shall apply for the solicitation and selection of all purchases and contracts within the City of La Quinta (City). Any exceptions to this Policy must be approved by the City Council. The City Council may, by majority vote and in accordance with its fiduciary responsibilities, approve expenditures of any amount, for any length of term, not otherwise inconsistent with any applicable law. A. ADMINISTRATIVE GUIDELINES 1. Vendor Limit. Combined purchase orders cannot exceed $50,000 per vendor, per fiscal year except in the case of major expenditures in which a vendor has participated in a public formal bidding process. 2. Change Orders or Amendments. A change order or amendment is a change in a contract term, other than as specifically provided for in the contract, that authorizes or necessitates any increase or decrease of the cost of the contract or in the time of completion that can be authorized by the City Manager or Department Director. A valid request for a change order or amendment must meet the following criteria: a. the change was not reasonably foreseeable at the time that the contract was signed; b. the change must be relevant to the original contract; and c. the change is authorized by the contract provisions and in the best interest of the City. 3. Conflict of Interest. No employee, officer, Councilmember, or agent shall participate in the selection, award, or administration of a contract if he or she has a real or apparent conflict of interest. Such a conflict of interest would arise when the employee, officer, Councilmember, agent, or any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated, herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. Nothing in this Policy does or is to be construed as limiting the applicability of any other federal, state, or local laws and regulations governing prohibitions against financial conflicts of interest, including but not limited to the Political Reform Act (Government Code Section 81000 et seq.) and implementing regulations from the 113 Resolution No. 2018- Purchasing & Contracting Policy Adopted: April 3, 2018 Page 4 of 22 Fair Political Practices Commission (Title 2, Section 18110 et seq., of the California Code of Regulations), and Government Code Sections 1090-1999 and 1126. All such laws and regulations shall apply to every employee, officer, Councilmember, and agent of the City. 4. Local Vendors. Purchasing goods and services from local vendors which stimulate the local economy is encouraged but not required. 5. Green Purchasing Practices. The City is committed to Green Purchasing practices in obtaining goods and services. The City shall consider environmentally- preferable products when appropriate. Nothing in this policy requires the procurement of products that do not adequately perform their intended use, requires procurement that excludes adequate competition, or requires the procurement of products that are unavailable at a reasonable price or at a reasonable time. An environmentally-preferable product means a product that meets any of the following criteria: a. is durable, repairable, reusable, or recyclable; b. has minimal packaging, toxic content, or chemical-hazard potential; c. is resource or energy efficient in any or all phases of its manufacture, use, or disposal; or d. its use or disposal minimizes or eliminates the City’s potential environmental liability. II. EXPENDITURE CATEGORIES Purchases, which include those made by purchase order (PO), written agreement, amendment or change order that require city expenditures, are classified into five categories based on the anticipated expenditure amount. Each category establishes an authorization level, procurement method, and maximum term, which shall apply unless specifically exempted in accordance with this Policy. A. Expenditures of $50 or less (petty cash) B. Expenditures of $51 to $5,000 (operational) C. Expenditures of $5,001 to $15,000 (minor) D. Expenditures of $15,001 to $50,000 (intermediate) E. Expenditures over $50,001 (major) A. EXPENDITURES OF $50 OR LESS Authorization: Department Director, who may delegate to a department manager Procurement: No bids or PO necessary; petty cash advances or reimbursement Term Limit: N/A Note: These transactions take the place of ordinary ongoing purchases and shall be limited in use. 114 Resolution No. 2018- Purchasing & Contracting Policy Adopted: April 3, 2018 Page 5 of 22 A cash disbursement or reimbursement may be obtained from the Finance department and must not exceed $50. A petty cash request form shall be completed and signed by the department director before submittal. The form shall include the date, description of the item to be purchased, and account number. Petty cash amounts will be advanced to accommodate miscellaneous minor expenditure amounts of $50 or less and for which normal payment provisions are not practical. The Finance department will periodically audit petty cash expenditures as to form and regulations and may confirm purchases. B. EXPENDITURES OF $51 to $5,000 DURING THE INITIAL TERM1 Authorization: Department Director, who may delegate to a department manager4 Procurement: No PO necessary; 3 informal bids/proposals2 whenever possible Term Limit: 3 years plus one 3-year extension C. EXPENDITURES OF $5,001 to $15,000 DURING THE INITIAL TERM Authorization: Department Director Procurement: PO required plus 3 written informal bids/proposals Term Limit: 3 years plus one 3-year extension D. EXPENDITURES OF $15,001 to $50,000 DURING THE INITIAL TERM Authorization: City Manager Procurement: PO required plus 3 written informal bids/proposals plus city contract3 Term Limit: 3 years plus one 3-year extension E. EXPENDITURES OVER $50,001 Authorization: City Council Procurement: PO required plus formal bids/proposals plus city contract Term Limit: no limit, any term approved by majority vote of the City Council III. PROCUREMENT PROCEDURES - MAJOR EXPENDITURES (over $50,001) For purposes of this Policy, the “Initial Term” shall be either (i) a term under the contract or PO not to exceed one year, or (ii) a term longer than one year but not to exceed the maximum number of years authorized under a “Term Limit” (set forth below) as long as the contract includes a continuing obligation for performance by a contracting party and the City has an obligation for payment only for the services actually performed and accounted for by invoice or other monthly or regular periodic documentation acceptable to the City. Under any contract or PO, either the contracting party or City may terminate the contract or PO prior to the expiration of the Initial Term for the other party’s nonperformance. 2 “Informal” bid/proposal means verbal or written, via telephone, e-mail or other casual medium. 3 The city’s templates for contracts, agreements, amendments and change orders shall be used for category D and E purchases. The City Manager may allow for modifications of these templates or use of other contracts, agreements, amendments and change orders, or may require use of city templates for category B and C purchases when the City Manager determines it is prudent due to the level of risk exposure to the city, the need to spell out a complex scope of work, or any other reason s/he believes to be in the best interest of the city. To meet prevailing wage requirements any maintenance or repair project over $15,000 or construction project over $25,000 will require a written contract. 4 Designee must have signature authorization form on file with the Finance department, or active designation letter for a specific date range. 115 Resolution No. 2018- Purchasing & Contracting Policy Adopted: April 3, 2018 Page 6 of 22 A. FORMAL BIDS FOR MAJOR PUBLIC WORKS PROJECTS AND MAJOR SUPPLIES AND EQUIPMENT PURCHASES. Major public works projects and supplies and equipment as referenced in Chapter 3.12 of the La Quinta Municipal Code, are defined as purchases and projects having an actual or estimated value of greater than fifty thousand and one dollars ($50,001). The solicitation and selection of bids and award of contracts shall comply with Section 3.12.030 of the La Quinta Municipal Code (public works contracts), and this Policy, and shall be administered through each City Department, according to the following procedures: 1. Invitation for bids. An invitation for bids (the “invitation”) shall be published in a newspaper, electronic bulletin board or online submission source, City website, World Wide Web site or other generally-recognized source of local public works contract information, at least ten days prior to the date of the opening of bids. Invitations shall include general descriptions of the work to be performed, the time and place of the opening of bids, the place where bidders may obtain bid documents, the amount of bid security required, and the amount and nature of performance and labor materials security that will be required. 2. Form of bids. Bids conforming to the requirements of the invitation shall be submitted to the Department Director (the “Director”) in sealed packages or by other means which will prevent the divulging of bids prior to the stated time for opening of bids, all as specified in the invitation or the bid documents. Unopened bids should be clearly marked or otherwise identifiable as bids for the project to which they apply. 3. Bid security for public works projects. Bids for public works projects shall be accompanied by cash, cashier’s check, certified check, surety bond, or other form of security stated in the invitation or bid documents, in a sum equal to at least ten percent (10%) of the amount of the bid. 4. Opening of bids. At the time and place stated in the invitation, the bids shall be publicly opened and announced. The bid amounts shall be tabulated and the tabulation shall be available for public inspection at the Public Works Department during regular business hours for a period of not less than thirty (30) calendar days after the bid opening. 5. Review of bids. The Director shall review all bids received for completeness, accuracy, responsiveness to the invitation and the bid documents, and the City’s experience with or knowledge of the qualification and reliability of each bidder and shall prepare a recommendation to the City Council. Written amounts shall take precedence over associated numeric amounts. Mathematical errors, if found, shall be corrected and shall not disqualify a bid. The corrected total shall 116 Resolution No. 2018- Purchasing & Contracting Policy Adopted: April 3, 2018 Page 7 of 22 be the bid amount considered in determining the lowest responsible bidder and shall be the contract amount awarded if the bid is selected. 6. Award of contract. Contracts shall be awarded by the City Council to the lowest responsible bidder. Determination of the lowest responsible bidder shall be at the sole discretion of the City Council pursuant to findings and recommendations presented by the Director at the time of the award of contract. 7. Equal bids. If two or more equal low bids are received, the City Council may award the contract to any one of the equal low bidders by the following: a. Select one bid; or b. Reject all bids and re-solicit for bids; or c. Reject all bids and authorize negotiated agreement if consistent with federal and state laws; or d. Select one bid, which is the most responsible bidder; or e. Take any other action that the City Council deems to serve the best interest of the City. 8. No bids. When no bids are received from responsible firms, the City Council may accomplish the project in any manner it sees fit. 9. Rejection of bids. The City Council may reject any or all bids presented and may then direct that the project be re-advertised, may authorize negotiation of a contract with one or more responsible firms, or may resolve that the project can be performed more economically by City forces, day labor, time and materials contract, or other method. 10. Execution of contract. The successful bidder shall execute the contract and furnish required performance security and labor and materials security when required pursuant to the bid document. 11. Forfeiture of bid security for public works projects. If the successful bidder fails to execute the contract and furnish security within the stated time, and said failure is not primarily due to actions or omissions of the City or to acts of god, the bidder shall forfeit the bid security provided. The City Council may then consider the bid of the next lowest responsible bidder. 12. Release of bid security for public works projects. Bidders are entitled to the return of their bid security unless forfeited as provided herein. The City shall retain all bid security until a contract has been executed or until the City Council rejects all bids at which time all bid security not forfeited shall be returned to the appropriate bidders. 117 Resolution No. 2018- Purchasing & Contracting Policy Adopted: April 3, 2018 Page 8 of 22 13. Disposition of forfeited bid security for public works projects. The City shall retain forfeited bid security until a contract is awarded to another firm or the project is cancelled. The City shall retain an amount equal to the difference between the forfeiting firm’s bid and the new contract amount, if any, and an additional amount equal to administrative and other costs incurred as a result of the failure of the forfeiting bidder to enter into a contract and provide required security, and shall return any remaining amount of the bid security to the forfeiting bidder. 14. Performance security and labor and materials security for public works projects. The bidder to whom the contract is awarded (the “successful bidder”) shall furnish performance security and labor and materials security in amounts specified in the Invitation or Bid Documents. B. FORMAL PROPOSALS FOR MAJOR PROFESSIONAL AND TECHNICAL SERVICES. Major professional and technical services are defined as services having an actual or estimated value of greater than fifty thousand and one dollars ($50,001). The solicitation and selection of proposals and award of contracts shall comply with Section 3.12.020 of the La Quinta Municipal Code (service contracts), and this Policy, and shall be administered through each City Department, according to the following procedures: 1. Maintenance and Repair Services. Services intended to preserve and/or restore a public work to a clean, safe, efficient, and/or continually usable condition. Maintenance and repair services include, but are not limited to: carpentry, electrical, painting, plumbing, glazing, and other craftwork to preserve a facility in the condition for which it was intended; repairs, cleaning and other operations on machinery and other equipment permanently attached to a facility as fixtures; the mowing, pruning, and trimming of lawns, grass, trees, shrubs, bushes and hedges; and the regular removal or relocation of by-products or waste products accumulated at City facilities as the result of ongoing environmental processes. 2. The City Manager shall approve the preparation and release of all Requests for Proposals (RFP) and Requests for Qualifications (RFQ). 3. City staff shall determine, based on professional judgment, whether an RFP or an RFQ process best suits its needs and City staff, or a city-authorized consultant, shall prepare the RFP/RFQ document. 4. City staff, or a city-authorized consultant, or both shall prepare a list of suitable firms from known registries, professional organizations, and/or any other source. 5. City staff shall issue the RFP/RFQ to suitable firms, and may also advertise for competitive proposals. 118 Resolution No. 2018- Purchasing & Contracting Policy Adopted: April 3, 2018 Page 9 of 22 6. City staff shall form a selection committee, which may include private consultants, to review the RFPs/RFQs received, and the selection committee may conduct interviews and/or hold discussions with proposing firms. 7. The selection committee shall rank the proposing firms according to the criteria specified in LQMC Section 3.12.020 (service contracts) and City staff shall notify firms of their position in the ranking. For design-build projects, the selection committee may also take into account the criteria for selection of public works contacts specified in LQMC Section 3.12.030. 8. City staff, or a city-authorized consultant, shall negotiate with the top-ranked firm to arrive at mutually-acceptable contract terms. 9. City staff, or its authorized consultant shall terminate negotiations and begin negotiations with the next-ranked firm if an agreement cannot be reached and continue this process until negotiations are successfully concluded or until the list of qualified firms submitting proposals is exhausted and an agreement cannot be reached. 10. The City Council shall award or reject the contract negotiated by City staff. IV. PROCUREMENT PROCEDURES – NON-MAJOR EXPENDITURES ($50,000 & under) INFORMAL BIDS OR PROPOSALS - Intermediate, Minor, and Operational Expenditure category projects, including minor public works projects, supplies, goods, equipment and minor services as referenced in Chapter 3.12 of the La Quinta Municipal Code, are defined as projects having an actual or estimated value of fifty thousand dollars ($50,000) or less. The solicitation and selection of bids and award of contracts shall comply with Section 3.12.030 of the La Quinta Municipal Code (public works projects), Section 3.12.020 of the La Quinta Municipal Code (service contracts), and this Policy, and shall be administered through each City Department, according to the following procedures: 1. Informal bids shall be obtained verbally or in writing as dictated by this Policy from the open market and a written record of informal bids shall be kept with the related PO. 2. Bid security. Security and labor and material security shall conform to the requirements for major public works projects but may be modified or waived by the City staff person authorized to make the purchase if warranted and in the best interest of the City. 119 Resolution No. 2018- Purchasing & Contracting Policy Adopted: April 3, 2018 Page 10 of 22 3. Execution and Award of Contracts. The City Council, may award contracts, or the City Manager, or designated City Director, or staff personnel may award and execute contracts, set forth in Categories A, B, C or D of Section II above, may award and execute contracts and may waive competitive bidding requirements if in the best interest of the City, provided there are unencumbered appropriations in the fund accounts against which the expenses are to be charged. V. EXEMPTION TO ANY PROCUREMENT METHOD Justification for exemption to any required procurement method may be submitted to the City Manager or in the case of a major expenditure, to the City Council under the following circumstances: a. Sole-source or select-source purchase. To determine that a sole-source or select-source purchase exists, rationale and/or proof must be provided in the purchase requisition.  Acquisition of brand name to insure compatibility with other city products and equipment. For example standardization of fleet inventory (select- source).  Change orders - additions to an original scope of work when the original source is the only reasonable one to provide the additional goods, construction work or service needed (select-source).  Only one manufacturer or vendor makes and/or sells the required equipment (sole-source). b. State, County, or other public agency cooperative purchasing program or contracts utilizing funding or other participation from agencies which require conformance with state, federal or other contracting regulations. c. The City does not require a contract for equipment purchases such as a specific type or brand of supply or part necessary for acceptable operation of a machine or device, or as required by warranty or contract on the machine or device; written documentation supporting a purchase must be provided. d. Emergency purchases made necessary by an immediate threat to life or property or a substantial disruption of a vital public service.  In advance of any local emergency, the City seeks to retain a list of available local businesses willing to provide necessary supplies, materials, equipment, services, food, care or shelter to the City through the Office of Emergency Management. Once the Emergency Operations Center (EOC) is activated, these memorandums will be activated.  In the event of an emergency, the City Manager or designee may make immediate purchases of goods and services. Emergency purchases include any purchase required to prevent imminent danger or to prevent or 120 Resolution No. 2018- Purchasing & Contracting Policy Adopted: April 3, 2018 Page 11 of 22 mitigate the loss or impairment of life, health, property, or essential public services. Every effort shall be made to obtain advance approvals or to obtain approvals as soon as possible following the purchase.  The City is not required to engage in either formal or informal competitive bidding in an emergency. The City Council delegates to the City Manager and City Manager’s designee the authority to waive any procedures in the Policy that are not statutorily mandated when making emergency purchase of supplies, equipment, materials or services.  The City Council shall ratify emergency suspension of procedures at the next properly noticed Council meeting following the emergency procurement and consider whether further suspension of procedures is required to abate the impacts of the emergency. e. The awarding officer(s) may waive irregularities in formal or informal bids received provided that it is in the best interest of the City to do so, and it does not result in unfair advantage to any bidder. e. The City Council may authorize the award and execution of contracts without competitive bidding provided that such award is in the best interest of the City, or of the public health, safety and welfare. VI. CITY CREDIT CARD USE A. Authorization and Acknowledgement. Approval to use, issue and revoke a City credit card is at the discretion of the City Manager. Unless otherwise authorized by the City Manager, City credit cards shall have a credit limit of $5,000. The City Manager shall have the authority to set credit limits on a case by case basis up to $25,000. City credit cards shall be kept by the Finance Department and/or City Manager’s Office for safekeeping and prudence. Users authorized by the City Manager or designee (“Authorized Users”) must be City employees. Authorized Users may check credit cards in and out as necessary, but are encouraged to limit usage only when necessary. All credit cards shall be returned to Finance or the City Manager’s Office in a timely manner after use. The Finance Department requires Authorized Users to sign a Signature Authorization Form acknowledging his/her understanding of the policies and procedures for the use of the City credit card and acknowledging the receipt of the credit card. B. Appropriate City Credit Card Use. City credit cards may be used for the following: 1. Traveling on City business; 2. Purchasing goods and services from vendors where use of a check is not practical, such as the case with many internet purchases in which no actual storefront exists; 121 Resolution No. 2018- Purchasing & Contracting Policy Adopted: April 3, 2018 Page 12 of 22 3. Securing reservations and locations for various City activities, meetings and conference fees, community events, honoree luncheons, marketing promotions, and sales missions; 4. Paying for meals in conjunction with official City business such as meetings with City Council, developers, or consultants. C. Inappropriate City Credit Card Use. The credit card shall not be used for the following: 1. Cash advances, money orders, wire transfers, etc.; 2. Routine gasoline purchases; 3. Alcoholic beverages, tobacco products, and prescription drugs; 4. Political or religious organizations; 5. Firearms or ammunition; 6. Gifts including gift cards, flowers, etc.; 7. Long-term rentals or lease agreements; 8. Heavy-duty machinery that requires a maintenance agreement; 5. Use of the City credit card is not intended to replace effective procurement planning which enables volume discounts or to circumvent established competitive purchasing procedures. This means no purchases for goods or services should be made that would otherwise require competitive bidding; 6. Employees shall not use City credit cards for personal expenses. Charging personal items, services, entertainment or expenses of any kind on City cards is a misuse of City funds and a serious breach of City’s ethics policy. Doing so will result in disciplinary action, up to and including termination. Employees should use care in selecting between using their business and personal credit cards. D. Travel, Meetings, & Conferences. The uses of the City credit card for travel, local meetings, and conferences shall at all times comply with the standards and practices set forth within the City travel and meeting policy. All credit card charges must be supported by detailed charge receipts and submitted on an expense report within ten (10) days of return from a business trip to the Finance Department upon return from a business trip. E. Obtaining Goods and Services. Authorized purchases may be made in person, via approved internet site, or by telephone. Authorized Users must require vendors to itemize the receipt/invoice. An itemized receipt/invoice consists of the following information:  Date of purchase  Detailed description of goods or services purchased  Price per item  Amount of sales tax and total amount  Shipping charges, if any Upon completing the credit card transaction, the employee shall submit the itemized receipt with appropriate account numbers to the Finance Department. 122 Resolution No. 2018- Purchasing & Contracting Policy Adopted: April 3, 2018 Page 13 of 22 F. Monthly Statement. At the end of a billing cycle, the Finance Department will provide to Authorized Users a statement showing all transactions made during the billing cycle for which receipts/invoices have not already been turned into the Finance Department. Authorized Users are responsible to review and reconcile monthly credit card statements. Once reconciled, the Authorized User will attach the supporting detailed charge receipts and related invoices to the monthly credit card statement and turn it into the Finance Department within two (2) working days of receipt. Falsification of receipts will subject the employee to disciplinary action, up to and including termination of employment. The Finance Director reserves the right to review each credit card statement and determine if the expenses were purchased in accordance with the City policy. G. Disputed Charges. Authorized Users are responsible for ensuring that the vendor, the issuing bank, and the Finance Director are notified immediately of any disputed charges. Authorized Users will be responsible for resolving the disputed charge directly with the credit card company. H. Returned Items. If items purchased with the credit card are found defective or the repair or services faulty, the cardholder has the responsibility to return the item to the merchant for replacement or credit to the card. Cash refunds or store credit will not be permitted. I. Timely Payment. Based on the statement cycle date, the Finance Department will ensure timely payments. Credit card charges will be paid once reconciled by the Authorized Users and approved by the Finance Department. To avoid late fees and finance charges, the Finance Department reserves the option to pay all credit card charges, even if supporting documentation is not yet received. When subsequently received, the supporting documentation will be retroactively reconciled to the payment. J. Lost or Stolen Cards. Authorized Users are responsible for ensuring that the issuing bank and the Finance Department are notified immediately if the card is lost or stolen. Failure to do so may result in holding the Authorized User responsible for any fraudulent use of the card. K. Disciplinary Action. The City Manager Human Resources department is responsible for all disciplinary action surrounding misuse of cards, including cancellation of card privileges. L. Surrender upon Request or Separation. The credit card will be immediately surrendered upon separation from City employment, retirement, termination or upon request of the City Manager. Use of the credit card for any purpose after its surrender is prohibited. 123 Resolution No. 2018- Purchasing & Contracting Policy Adopted: April 3, 2018 Page 14 of 22 FEDERALLY FUNDED PROCUREMENTS This section pertains to federal-funded projects and purchases. VII. GENERAL PROCUREMENT STANDARDS A. Code of Conduct. As representatives of the City of La Quinta, all employees are expected to conduct themselves in a professional and ethical manner, maintaining high standards of integrity and the use of good judgement. Employees are expected to be principled in their business interactions and act in good faith with individuals both inside and outside the City. The following Code of Conduct shall govern the performance, behavior and actions of the City, including employees, directors, appointed or elected officials, volunteers, or agents who are engaged in any aspect of procurement, including, but not limited to, purchasing goods and services, awarding contracts and grants, and the administration and supervision of contracts: 1. No employee, director, appointed or elected official, volunteer, or agent of the City shall participate in the selection, award, or administration of contracts supported by a federal award if a conflict of interest is real or apparent to a reasonable person. 2. Conflicts of interest may arise when any employee, officer, or agent of the City, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a real or apparent financial or other interest in or a tangible personal benefit form a firm considered for the contract. 3. No employee, director, appointed or elected official, volunteer, or agent of the City shall do business with, award contracts to, or show favoritism toward a member of his or her immediate family, spouse’s family, or to any company, vendor, contractor, or parties to subcontractors who either employ or has any relationship to a family member; or award a contract or bid which violates the spirit or intent of federal, state and local procurement laws and policies established to maximize free and open competition among qualified vendors. 4. The City’s employees, directors, appointed or elected officials, volunteers, or agents shall neither solicit nor accept gratuities, favors, gifts, consulting fees, trips, or anything having a monetary value in excess of twenty-five dollars ($25.00) from a vendor, potential vendor, family or employees of a vendor, contractor or parties to subcontractors. 5. Disciplinary measures for violations of the Code of Conduct by employees, directors, appointed or elected officials, volunteers, or agents who are engaged in any aspect of procurement, including, but not limited to, purchasing goods and services, awarding contracts and grants, and the administration and supervision of 124 Resolution No. 2018- Purchasing & Contracting Policy Adopted: April 3, 2018 Page 15 of 22 contracts could lead to disciplinary measures, up to and including possible termination of employment. B. Solicitation Procedures 1. Acquisition of unnecessary or duplicative items must be avoided. Consideration should be given to consolidating or dividing procurements to obtain a more economical purchase. When appropriate, an analysis will be made of lease versus purchase alternatives, and any other appropriate analysis to determine the most economical approach. 2. To foster greater economy and efficiency, and in accordance with efforts to promote cost-effective use of shared services, the City shall enter into state and local intergovernmental agreements or inter-entity agreements where appropriate for procurement or use of common or shared goods and services. 3. Procuring federal excess and surplus property in lieu of purchasing new equipment and property whenever such use is feasible and reduces project costs shall be utilized. 4. Value engineering clauses may be used in contracts for construction projects of sufficient size to offer reasonable opportunities for cost reductions. Value engineering is a systematic and creative analysis of each contract item or task to ensure that its essential function is provided at the overall lower cost. 5. Contracts shall only be awarded to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. 6. Records will be maintained sufficient to detail the history of procurement. These records will include, but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. The City Clerk will be the repository for said records and shall be maintained for period of no less than seven (7) years. 7. Time and material type contracts (open-ended) may be used only after a determination that no other contract is suitable. Time and material type contract means a contract where the cost to the City is the sum of the actual cost of materials and direct labor hours charged at fixed hourly rates that reflect wages, general and administrative expense, and profit. Each time and material contract will set a ceiling price that the contractor exceeds at its own risk. A higher degree of oversight is required in order to obtain reasonable assurance that the contractor is using efficient methods and effective cost controls. 125 Resolution No. 2018- Purchasing & Contracting Policy Adopted: April 3, 2018 Page 16 of 22 6. The City alone will be responsible, in accordance with good administrative practice and sound business judgment, for the settlement of all contractual and administrative issues arising out of procurements. These issues include, but are not limited to, source evaluation, protests, disputes, and claims. These standards do not relieve the City of any contractual responsibilities under its contracts. The federal awarding agency will not substitute its judgment for that of the City unless the matter is primarily a federal concern. Violations of law will be referred to the local, state, or federal authority having proper jurisdiction. C. Competition 1. All procurement transactions must be conducted in a manner providing full and open competition. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, and invitations for bids or requests for proposals will be excluded from competing for such procurements. Some of the situations considered to be restrictive of competition include, but are not limited to: a. Placing unreasonable requirements on firms in order for them to qualify to do business; b. Requiring unnecessary experience and excessive bonding; c. Noncompetitive pricing practices between firms or between affiliated companies; d. Noncompetitive contracts to consultants that are on retainer contracts; e. Organizational conflicts of interest; f. Specifying only a brand name product instead of allowing an equal product to be offered and describing the performance or other relevant requirements of the procurement; and g. Any arbitrary action in the procurement process. 2. Procurements shall be conducted in a manner that prohibits the use of statutorily or administratively imposed state or local geographical preferences in the evaluation of bids or proposals, except in those cases where applicable federal statutes expressly mandate or encourage geographic preference. Nothing in this section preempts state licensing laws. When contracting for architectural and engineering (A/E) services, geographic location may be a selection criterion provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract. 3. All solicitations will incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured. Such description must not, in competitive procurements, contain features which unduly restrict competition. The description may include a statement of the qualitative nature of 126 Resolution No. 2018- Purchasing & Contracting Policy Adopted: April 3, 2018 Page 17 of 22 the material, product or service to be procured and, when necessary, must set forth those minimum essential characteristics and standard to which it must conform if it is to satisfy its intended use. Detailed product specifications should be avoided if at all possible. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a brand name or equivalent description may be used as a means to define the performance or other relevant requirements of procurement. The specific features of the named brand which must be met by offers must be clearly stated. 4. Bids and proposals shall identify all the requirements which the offerors must fulfill and all other factors to be used in evaluation bids or proposals D. Methods of Procurement. In addition to the City’s purchasing policy approval limits, one of the following methods should be used: 1. Micro-purchase: Purchases where the aggregate dollar amount does not exceed $3,500, or the current limitation set by the Federal Acquisition Regulation at 48 CFR Subpart 2.1, where this threshold is periodically adjusted for inflation. 2. Small purchase: Purchases up to the Simplified Acquisition threshold, which is currently $150,000. Informal purchasing procedures are acceptable, but price or rate quotes must be obtained from an adequate number of sources. 3. Sealed bid: Purchases over the Simplified Acquisition threshold, which is currently $150,000. Under this purchase method, formal solicitation is required, and the fixed price (lump sum or unit price) is awarded to the responsible bidder who conformed to all material terms and is the lowest in price. This method is the preferred procurement method for construction contracts, if the following conditions apply: a. A complete, adequate, and realistic specification or purchase description is available; b. Two or more responsible bidders are willing and able to compete effectively for the business, and, c. The procurement lends itself to a firm fixed price contract and the selection of the successful bidder can be made principally based on price. If this method is used, the following requirements shall apply: d. The invitation for bids will be publicly advertised and bids must be solicited from an adequate number of known suppliers, providing them sufficient response time prior to the date for opening the bids; 127 Resolution No. 2018- Purchasing & Contracting Policy Adopted: April 3, 2018 Page 18 of 22 e. The invitation for bids, which will include any specifications and pertinent attachments, must define the terms or services in order for the bidder to properly respond; f. All bids will be publicly opened at the time and place prescribed in the invitation for bids; g. A firm fixed price contract award will be made in writing to the lowest responsive and responsible bidder. Where specified in bidding documents, factors such as discounts will only be used in determining which bid is lowest. Payment discounts will only be used to determine the low bid when prior experience indicates that such discounts are usually taken advantage of; and h. Any or all bids may be rejected if there is a sound documented reason. 4. Competitive proposals: Purchases over the Simplified Acquisition threshold, which is currently $150,000. This procurement method requires formal solicitation, fixed- price or cost-reimbursement contracts, and is used when sealed bids are not appropriate. The contract should be awarded to the responsible firm whose proposal is most advantageous to the program, with price being one of the various factors. If this method is used, the following requirements apply: a. Requests for proposals must be publicized and identify all evaluation factors and their relative importance. Any response to publicized requests for proposals must be considered to the maximum extent practical; b. Proposals must be solicited from an adequate number of qualified sources; c. The methods for conducting technical evaluations of the proposals received and for selecting recipients may include, but not limited to: oral interviews, references, past performance, availability to perform work, and certifications as determined by project scope. d. Any response that takes exception to any mandatory items in this proposal process may be rejected and not considered; e. Contracts must be awarded to the responsible firm whose proposal is most advantageous to the program, with price and other factors considered; and, f. Competitive proposal procedures may be used for qualifications-based procurement of architectural/engineering (A/E) professional services whereby competitors’ qualifications are evaluated and the most qualified competitor is selected, subject to negotiation of fair and 128 Resolution No. 2018- Purchasing & Contracting Policy Adopted: April 3, 2018 Page 19 of 22 reasonable compensation. The method, where price is not used as a selection factor, can only be used in procurement of A/E professional services. It cannot be used to purchase other types of services, though A/E firms are a potential source to perform the proposed effort. 5. Noncompetitive proposals: Also known as sole-source procurement, this may be appropriate only when one or more of the following criteria are met: a. The item is available only from a single source; b. The public emergency for the requirement will not permit a delay resulting from competitive solicitation; c. The Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the non- federal entity; or d. After solicitation of a number of sources, competition is determined inadequate. E. Contract Cost and Price. A cost or price analysis shall be performed in connection with every procurement action in excess of the Simplified Acquisition threshold ($150,000) including contract modifications. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation, but as a starting point, independent estimates shall be made prior to receiving bids and proposals. 1. Profit shall be negotiated as a separate element of the price for each contract in which there is a no price competition and in all cases where cost analysis is performed. To establish a fair and reasonable profit, consideration must be given to the complexity of the work to be performed, the risk borne by the contractor, the contractor’s investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work. 2. Costs or prices based on estimated costs for contracts under the federal award are allowable only to the extent that costs incurred or cost estimates included in negotiated prices would be allowable for the City under Subpart E- Cost Principles of Part 200- Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. 3. The cost plus a percentage of cost and percentage of construction cost methods of contracting shall be used. 129 Resolution No. 2018- Purchasing & Contracting Policy Adopted: April 3, 2018 Page 20 of 22 F. Federal Awarding Agency or Pass-Through Entity Review. 1. The City shall make available, upon request of the federal awarding agency or pass- through entity, technical specifications on proposed procurements where the federal awarding agency or pass-through entity believes such review is needed to ensure that the item or service specified is the one being proposed for acquisition. This review generally will take place prior to the time the specification is incorporated into a solicitation document. However, if the City desires to have the review accomplished after a solicitation has been developed, the Federal awarding agency or pass-through entity may still review the specifications, with such review usually limited to the technical aspects of the proposed purchase. 2. The City will make available upon request, for the Federal awarding agency or pass- through entity pre-procurement review, procurement documents, such as requests for proposals or invitations for bids, or independent cost estimates, when: a. Procurement procedures or operations fails to comply with the procurement standards in this part; b. The procurement is expected to exceed the Simplified Acquisition Threshold ($150,000) and is to be awarded without competition or only one bid or offer is received in response to a solicitation; c. The procurement, which is expected to exceed the Simplified Acquisition Threshold, specifies a “brand name” product; d. The proposed contract is more than the Simplified Acquisition Threshold and is to be awarded to other than the apparent low bidder under a sealed bid procurement; or e. A proposed contract modification changes the scope of a contract or increases the contract amount by more than the Simplified Acquisition Threshold. 3. The City is exempt from the pre-procurement review in paragraph 2 of this section if the federal awarding agency or pass-through entity determines that its procurement systems comply with the standards of this part. 4. The City may request that its procurement system be reviewed by the federal awarding agency or pass-through entity to determine whether its system meets these standards in order for its system to be certified. Generally, these reviews must occur where there is continuous high-dollar funding, and third-party contracts are awarded on a regular basis; 5. The City may self-certify its procurement system. Such self-certification must not limit the federal awarding agency's right to survey the system. Under a self- certification procedure, the federal awarding agency may rely on written assurances from the City that it is complying with these standards. The City must cite specific policies, procedures, regulations, or standards as being in compliance with these requirements and have its system available for review. 130 Resolution No. 2018- Purchasing & Contracting Policy Adopted: April 3, 2018 Page 21 of 22 G. Bonding Requirements. For construction or facility improvement contracts or subcontracts exceeding the Simplified Acquisition Threshold ($150,000), the federal awarding or pass-through entity may accept the bonding policy and requirements of the City provided that the federal awarding agency or pass-through entity has made a determination that the federal interest is adequately protected. If such a determination has not been made, the minimum requirements must be as follows: 1. A bid guarantee from each bidder equivalent to five percent (5%) of the bid price. The bid guarantee must consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of the bid, execute such contractual documents as may be required within the time specified; 2. A performance bond on the part of the contractor for 100 percent (100%) of the contract price. A performance bond is one executed in connection with a contract to secure fulfillment of all the contractor’s obligations under such contract; and, 3. A payment bond on the part of the contractor for 100 percent (100%) of the contract price. A payment bond is one executed in connection with a contract to assure payment as required by law of all persons supplying labor and material in the execution of the work provided for in the contract. H. Contract Provisions. All federal funding source compliance provisions shall include the following: 1. Equal Employment Opportunity- All contracts, when funded in whole or partly by monies derived from the federal government (either directly or indirectly), shall contain a provision requiring compliance with Equal Employment Opportunity. 2. Davis-Bacon Act- Applies to construction contracts in excess of $2,000. It requires contracts to pay laborers and mechanics wages not less than the prevailing wage as determined by the Secretary of Labor and must be required to pay wages not less than once a week. Each bid solicitation published by the City must contain the current prevailing wage determination. Any award of the contract must be conditioned on contractor’s acceptance of that wage determination and suspected or reported violations of this act shall be immediately reported to the Federal awarding agency. 3. Copeland “Anti-Kickback” Act- Applies to construction contracts in excess of $2,000. It prohibits kickbacks in construction contracts funded with Federal monies. Contractors and subcontractors or subrecipients shall be prohibited from inducing any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled and suspected or reported violations shall be immediately reported to the Federal awarding agency. 131 Resolution No. 2018- Purchasing & Contracting Policy Adopted: April 3, 2018 Page 22 of 22 4. Clean Air Act & Federal Water Pollution Control Act- Applies to contracts and sub grants in excess of $150,000. Contractor shall be required to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act and the Federal Water Pollution Control Act. Suspected or reported violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA). 5. Debarment and Suspension- Contracts funded with federal grant monies may not be awarded to contractors that have been debarred or suspended from receiving federal monies pursuant to the System for Award Management (SAM). 6. Byrd Anti-Lobbying Amendment- Contractors that apply or bid for an award of $100,000 must certify that they will not and have not used federal funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award. I. Contracting with small and minority business, women’s business enterprises, and labor surplus area firms. All necessary affirmative steps will be taken to assure that minority business, women’s business enterprises, and labor surplus area firms are used when possible. Affirmative steps include: 1. Placing qualified small and minority businesses and women’s business enterprises on solicitation lists; 2. Assuring that small and minority businesses and women’s business enterprises are solicited whenever they are potential sources; 3. Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses and women’s business enterprises; 4. Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses and women’s business enterprises; 5. Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and, 6. Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in paragraphs (1) through (5) of this section. 132 City of La Quinta CITY COUNCIL MEETING: April 3, 2018 STAFF REPORT AGENDA TITLE: DISCUSS PICKLEBALL COURTS PLACEMENT RECOMMENDATION Discuss the placement of new pickleball courts. EXECUTIVE SUMMARY  The Tennis and Pickleball Court Conversion project was completed in October 2017. There are currently seven tennis courts and four pickleball courts at Fritz Burns Park.  Pickleball players have requested additional courts due to high demand.  In March 2018, Staff presented to Council the option to convert an existing tennis court into four pickleball courts at Fritz Burns Park. Council directed Staff to research alternatives. FISCAL IMPACT The cost to convert an existing tennis court into four pickleball courts at Fritz Burns Park is approximately $30,000. This cost includes in-ground sleeves, net posts, nets, and surface coating. Funds are available in the Park Equipment Replacement account (501-0000-71060). BACKGROUND/ANALYSIS At the March 6, 2018 Council meeting, Staff presented a study session item to discuss the pickleball players’ request for additional pickleball courts at Fritz Burns Park. Staff provided the option to convert one more tennis court to four pickleball courts. Council directed staff to research alternatives such as partnering with private clubs in La Quinta and discuss the possibility of pickleball at Desert Recreation District’s La Quinta Community Park and placement of courts at another City owned property. Staff contacted private clubs in La Quinta to determine their number of tennis and pickleball courts. Staff also asked each private club if their courts were open to the public. The chart below summarizes the information obtained. STUDY SESSION ITEM NO. 1 133 PRIVATE LA QUINTA CLUBS ORIGINAL NUMBER OF TENNIS COURTS TENNIS COURTS CONVERTED TO PICKLEBALL COURTS CURRENT NUMBER OF PICKLEBALL COURTS OPEN TO PUBLIC PGA West 18 4 16 No public, members only La Quinta Resort 22 2 8 No public (except for lessons) Andalusia at Coral Mountain 6 1 4 Open for lessons & guest invite only Palm Royale 4 1 3 No public, members only Rancho La Quinta 7 0 0 Tennis program is too large. Will not convert courts at this time. La Quinta Country Club 0 0 0 Tennis courts were taken out many years ago. Staff discussed with Desert Recreation District (DRD) the possibility of installing pickleball courts at La Quinta Community Park. DRD will consider site planning and evaluate configuration and report back their findings. Council may elect to direct Staff to convert one more tennis court at Fritz Burns Park into four pickleball courts within the 2017/18 fiscal year; leave the current pickleball and tennis courts as is; or direct Staff to include additional pickleball or tennis courts as part of the Capital Improvement Program. Prepared by: Robert Ambriz, Jr., Parks Superintendent Approved by: Steve Howlett, Facilities Director 134 City of La Quinta CITY COUNCIL MEETING: April 3, 2018 STAFF REPORT AGENDA TITLE: DISCUSS SENATE BILL 1 FUNDS FOR ROAD MAINTENANCE AND REHABILITATION ACT RECOMMENDATION Discuss use of Senate Bill 1 funds for road maintenance and rehabilitation act. EXECUTIVE SUMMARY Senate Bill 1 (SB-1), the Road Maintenance and Rehabilitation Act of 2017 will provide approximately $3,515,042 for use on eligible transportation related improvements during the next five fiscal years. In order to receive SB-1 funds, the City must comply with the following requirements: show an annual Maintenance of Effort (MOE) expenditure from the City’s General Fund in the amount of $1,786,109; and adopt a Council resolution of projects to be funded the following fiscal year with SB-1 funds. The required Resolution would include each project’s location, description, and useful life. The project list will be submitted for Council’s consideration on April 17, 2018. FISCAL IMPACT The following table represents the estimated SB-1 funding by fiscal year: 2018/19 2019/20 2020/21 2021/22 2022/23 TOTAL $675,500 $689,010 $702,790 $716,846 $730,896 $3,515,042 BACKGROUND/ANALYSIS SB-1 created a new funding source for road maintenance and rehabilitation projects for cities and counties. The project list must be submitted to the California Transportation Commission (CTC) by May 1, 2018 to be eligible for SB-1 funding for the following fiscal year. After factoring in the City’s current expenditures on the Landscape and Lighting District, Gas Tax Fund, and required spending for the Measure A sales tax, the remaining annual MOE expenditure would be approximately $49,102 to meet the required $1,786,109. The projects listed in this report would put the City’s MOE expenditure above the required amount. STUDY SESSION ITEM NO. 2 135 City may spend its apportionment of SB-1 funds on transportation priorities other than priorities outlined within the Senate Bill if the City’s average Pavement Condition Index (PCI) meets or exceeds 80. The City’s PCI is 85, which provides maximum flexibility for use of these funds on transportation needs. The draft fiscal year 2018/19 through 2022/23 Capital Improvement Plan proposes to use the SB-1 funding for the following transportation improvements (Attachment 1): Project Description 2018/19 2019/20 2020/21 2021/22 2022/23 Total La Quinta Village Complete Streets Improvement $318,000 $689,010 $1,007,010 Jefferson St/Ave 53 Roundabout $357,500 $357,500 Hwy 111 at La Quinta Center Drive Left Turn Lanes $702,790 $702,790 Dune Palms Road Pavement Rehabilitation $716,846 $716,846 Fred Waring Drive Pavement Rehabilitation $730,896 $730,896 TOTAL: $675,500 $689,010 $702,790 $716,846 $730,896 $3,515,042 The two projects proposed to receive SB-1 funding in 2018/19 are as follows: La Quinta Village Complete Streets Project The proposed improvements will convert the La Quinta Village into a bicycle and pedestrian friendly environment and include the installation of five new roundabouts. The project’s construction phase is 100% funded with State Advanced Transportation Program (ATP) funds. Project components such as right of way and enhanced landscaping and drainage improvements are not eligible for the grant funding. Staff is recommending the use of SB-1 funds, in the amount of $318,000 to supplement the existing project budget. Jefferson Street at Avenue 53 Roundabout Recently, the Council appropriated $225,000 to initiate the design phase of the proposed roundabout on Jefferson Street at Avenue 53 (future SilverRock Way). The proposed roundabout is estimated to cost approximately $2,086,000. Staff is recommending the project be funded with a mixture of Measure A, Transportation DIF, Developer Contributions, Unassigned CIP General Fund Savings, and SB-1 funds. If accepted, SB-1 funds in the amount of $357,500 will be used to supplement the anticipated project budget. Council could choose to install a traditional traffic signal at this location at a cost of approximately $1,100,000, which would require the current roundabout at Jefferson Street and Avenue 52 to be converted back to a traditional signalized intersection at a cost of approximately $2,800,000. 136 Projects for futures include: Highway 111 at La Quinta Center Drive (Dual Left Turn Lanes) Project will construct dual left turn lanes on Highway 111 and La Quinta Center Drive. Cost is estimated at $1,530,600 with $702,790 of SB-1 funds proposed. Dune Palms Road Pavement Rehabilitation (Miles Avenue to Fred Waring Drive) Staff is recommending SB-1 funds, in the amount of $716,846, be used to rehabilitate the pavement during FY 2021/22. Fred Waring Drive Pavement Rehabilitation (Palm Royale to Washington Street) Staff is recommending SB-1 funds, in the amount of $730,896, be used to rehabilitate the pavement during FY 2022/23. Prepared by: Bryan McKinney, P.E. City Engineer Approved by: Chris Escobedo, Acting City Manager Attachment: 1. Vicinity Map 137 138 CITY OF LA QUINTA SB1 RMRA VICINITY MAP ATTACHMENT 1ATTACHMENT 1 139 140 City of La Quinta CITY COUNCIL MEETING: April 3, 2018 STAFF REPORT AGENDA TITLE: DEVELOPMENT SERVICES 2018 UPDATE RECOMMENDATION Receive Development Services 2018 Update. EXECUTIVE SUMMARY In October 2013, the City invested in development permit, project, business license and short-term vacation rental process improvements by acquiring and implementing TRAKiT, a permit software system. 2018 key goals are to further improve customer service, internal and external communications, accessibility and transparency, and trans-divisional process uniformity. FISCAL IMPACT – None BACKGROUND/ANALYSIS This Study Session was scheduled to update the Council and community on the City’s efforts to further streamline processes and to outline initiatives proposed for 2018. The City’s “Hub” locates all staff involved in permit, project, and licensing transactions in one place so that customers do not need to roam from department to department. Fire permit reviews have been brought in-house where previously customers had to go to a County facility to pay and submit for fire review. This facilitated a common vision and enabled uniform implementation of operational goals and objectives. 2017 was the first year of offering project and permit applications online. Of the total submitted applications, 32% have been done online. This online service has generated more efficient and simple entitlement, plan check, permit/license issuance and inspection processes. During the study, session Staff will present information regarding transaction statistics and performance metrics such as: 2017 Accomplishments 2017 Performance Metrics/Dynamic Reporting (Attachment 1) 2018 Goals 2018 Upcoming Development STUDY SESSION ITEM NO. 3 141 Prepared by: Bryan McKinney, City Engineer Approved by: Chris Escobedo, Acting City Manager Attachment: 1. 2017 Performance Metrics 142 2017 HUB STATISTICSCUSTOMERS SERVED9,697PERMITS ISSUED 3,190PROJECTS APPROVED169STVRP NEW PERMITS345BUSINESS LICENSES ISSUED899QUALITY 98%HELPFULLNESS97%WAIT  TIME92%ATTACHMENT 1ATTACHMENT 1 143 97%2%1%0%ON TIMEONE DAYTWO DAYSMORE THAN TWO DAYS201461% = D‐201583% = B‐201693% = A‐201797% = APUBLIC WORKS DEVELOPMENT6 6 6REVIEWSAverage Review TimeDept 2017Public Works 70.68%144 87%4%2%7%ON TIMEONE DAYTWO DAYSMORE THAN TWO DAYS201787% = B+CIP257REVIEWS145 80%15%3%2%ON TIMEONE DAYTWO DAYSMORE THAN TWO DAYS201466% = D+201577% = C+201679% = C+201780% = B‐BUILDING1758REVIEWS146 94%5% 0%1%ON TIMEONE DAYTWO DAYSMORE THAN TWO DAYS201462% = D‐201564% = D201687% = B+201794% = APLANNING6 8 0REVIEWSAverage Review TimeDept 2017Planning 76.42%147 95.72%2%1%1%ON TIMEONE DAYTWO DAYSMORE THAN TWO DAYS201795.72% = AFIRE327REVIEWS148 87%9%2%2%ON TIMEONE DAYTWO DAYSMORE THAN TWO DAYS201463% = D‐201576% = C+201684% = B201787% = B+DESIGN AND DEVELOPMENT COMBINED3361REVIEWS149 150 City of La Quinta CITY COUNCIL MEETING: April 3, 2018 STAFF REPORT AGENDA TITLE: DISCUSS RESERVE POLICY ANALYSIS REPORT AND FINDINGS RECOMMENDATION Discuss Reserve Policy Analysis Report and Findings. EXECUTIVE SUMMARY Council requested an analysis of the City’s reserves by the Financial Advisory Commission (FAC). The FAC established a subcommittee that prepared a Reserve Policy Analysis Report (Report). BACKGROUND/ANALYSIS During the 2017/18 budget process Council requested an analysis of the City’s reserves. Three members of the FAC joined the Finance staff to conduct an in-depth analysis with additional hours of independent research. The scope of the analysis included review of: current reserve policy and funding; reserve categories; Coachella Valley wide comparison of reserves and funding; best practices recommended by accounting standards boards; City demographics, revenues, expenditure volatility, other funds dependency on the General Fund, growth projections, and unfunded capital projects; risk mitigation - including a review of insurance policies; and City infrastructure and vulnerability to extreme events. The Report (Attachment 1) outlines recommendations to establish four reserve categories and a Pension Trust Fund (Attachment 2). Finance also updated the 10-year cash flow projections to incorporate identified capital improvement project priorities and outlined how the City may fund the recommended reserves over a period of time (Attachment 3). ALTERNATIVES Council could identify additional financial matters the FAC should evaluate, provide direction to draft a reserve policy, or request additional time to review the Report and funding options. Prepared by: Karla Campos, Finance Director Approved by: Chris Escobedo, Acting City Manager Attachments: 1. Reserve Policy Analysis Report 2. Reserve Categories and Allocation Methods 3. Reserve Funding Options and Five-Year Projections STUDY SESSION ITEM NO. 4 151 152 City of La Quinta Reserve Policy Analysis DRAFT Interim Report Financial Advisory Commission Reserve Policy Subcommittee AprilFebruary 2018 ATTACHMENT 1 153 TOC-i Table of Contents Contents Executive Summary ....................................................................................................................................... 1 1.0 Background .............................................................................................................................................. 3 1.0 Financial Advisory Commission & Reserve Analysis Subcommittee ...................... 3 1.1 Reserve Policy Subcommittee ............................................................................................... 3 2.0 Reserve Policy ....................................................................................................................................... 3 2.1 Background .................................................................................................................................... 3 2.2 Current Reserve Policy................................................................................................................ 4 2.3 Guiding Principles, City of La Quinta Reserves .................................................................... 5 2.4 Ten-Year Financial Projection .................................................................................................. 6 2.5 Reserves versus Fund Balances ............................................................................................... 7 3.0 General Fund Reserves ........................................................................................................................ 8 3.1 Emergency Reserve ..................................................................................................................... 8 3.1.1 Natural Disaster Component .................................................................................................. 9 3.1.2Economic Disaster Component .............................................................................................. 10 3.2 Cash Flow Reserve ..................................................................................................................... 11 3.3 CIP Sinking Fund Reserve ........................................................................................................ 13 3.4 Unfunded Pension Liability ..................................................................................................... 14 154 1 City of La Quinta Financial Advisory Commission Reserve Policy Sub-Committee Interim Report Executive Summary The City of La Quinta (City) formed the La Quinta Financial Advisory Commission (FAC) in June 2017 to replace the long-standing Investment Advisory Board (IAB). At the regular FAC meeting on August 9, 2017, the FAC appointed Commissioners Dick Mills, Daniel Twohey and Mark Johnson to serve on a sub-committee to analyze and recommend improvements to the City’s Reserve Policy. The Reserve Policy Subcommittee met with City Finance Staff sixfour times and met/communicated together as a group on several occasions. The Subcommittee focused on developing a pragmatic methodology to determine the appropriate reserve levels as opposed to utilizing a percentage. This process establishes a rationale and protocol that allows for an annual review of reserves based on actual economic conditions. The following interim recommendations were reviewed and approved by the FAC on November 15, 2017. This updated Report will be presented to the FAC on April 11, 2018. Recommendations The following Reserve Policy changes are recommended and summarized in Table 1: 1. Utilize a Ten-Year Projection to evaluate the City’s financial condition and update it annually. 2. Fund Balances and Reserves should be referenced separately in presentations to eliminate confusion and give true picture of Reserves. 3. Emergency Reserve with two components: Natural Disaster and Economic a. Emergency Reserve Natural Disaster Component i. Modify the City Ordinance to simplify access to the Emergency Reserve. ii. Utilizendertake a comprehensive Asset/Risk/Insurance/Government Funding Study (Study), which is essential to setting this reserve level. 155 2 Reserve/Trust Reserve Target Current Funding Over/(Under) Funded Annual Target Emergency Reserve Natural Disaster 10,000,000 16,534,000 16,534,000 1,500,000 Economic Disaster 11,000,000 - (11,000,000) 1,000,000 Total 21,000,000 16,534,000 5,534,000 2,500,000 Cash Flow Reserve 5,000,000 4,134,000 (866,000) - Capital Replacement 10,000,000 - (10,000,000) 1,000,000 Total Reserves 26,000,000 20,668,000 (5,332,000) 3,500,000 Pension Trust Fund 10,000,000 - (10,000,000) 1,000,000 Unassigned Reserves - 14,865,926 14,865,926 - Overall Total 36,000,000 35,533,926 (466,074) 4,500,000 iii. Establish an Asset Management Program as part of this Study to better track, maintain and replace assets and develop a long-term Capital Improvement Program (CIP). iv. Fund this reserve initially with $1.5 million and set the reserve level after the Study is complete. b. Emergency Reserve Economic Disaster Component-set at $11 million and fund with $1.0 million annually and define use of funds. 4. Cash Flow Reserve. Set at $5 million initially and, reset annually using the formula. 5. Capital ReplacementIP Sinking Fund Reserve. Set at $10 million and fund with $1.0 million annually. 6. CalPERS Pension Trust. Form an irrevocable trust and fund with $1 million annually for 10 years as a General Fund Expense. 7. Current Unassigned Reserves-utilize to fund the recommended Reserve/Trust targets and/or operating expenses at the discretion of the Council. Table 1-Reserve/Trust Recommendations 156 3 1.0 Background 1.0 Financial Advisory Commission & Reserve Analysis Subcommittee The principal functions of the FAC are: (1) review at least annually the City's investment policy and recommend appropriate changes; (2) review monthly treasury reports and note compliance with the investment policy and adequacy of cash and investments for anticipated obligations; (3) receive and consider other reports provided by the City Treasurer; (4) meet with the independent auditor after completion of the annual audit of the city's financial statements, and receive and consider the auditor's comments on auditing procedures, internal controls, and findings for cash and investment activities; (5) review annually the revenue derived from the one percent (1%) transactions and use tax (Measure G) instituted by voters in November 2016 to ensure these funds are used to provide services, programs and capital projects in the City, and (6) serve as a resource for the City treasurer on matters such as proposed investments, internal controls, use of financial institutions, custodians, brokers and dealers. The current FAC members include; George Batavick (Chairman), Richard (Dick) Mills (Vice-Chairperson), Steven Rosen, Javier Lopez, Sherwyn Turbow, Daniel Twohey and Mark Johnson. 1.1 Reserve Policy Subcommittee At the regular FAC meeting on August 8, 2017, the FAC appointed Dick Mills, Daniel Twohey and Mark Johnson to serve on a sub-committee to analyze and recommend improvements to the City’s Reserve Policy. 2.0 Reserve Policy 2.1 Background Financial Reserves provide the City with financial flexibility and strength to deal with planned and unplanned expenditures. Reserve levels must balance realistic financial need and risk. The Reserve Policy should strive to establish reserve levels that are not over or under-funded, specify the intended use of reserves, and the replenishment of underfunded reserves. 157 4 Reserve/Fund Balance Amount ($) Non-Spendable Prepaid Costs 10,578 Land Held for Resale 8,320,000 Advances to Other Funds 15,022,660 Due from Other Governments 29,154,040 Total Non-Spendable 52,507,278 Committed Working Capital Reserve (10%) 4,134,000 Emergency Reserve (40%) 16,534,000 Post Retirement Health Benefits 1,523,400 Carryovers 120,000 Total Committed 22,311,400 Assigned Public Safety Fire Services 9,371,699 Capital Projects 6,322,570 Total Assigned 15,694,269 Unassigned 16,949,526 TOTAL FUND BALANCE 107,462,473 2.2 Current Reserve Policy The current Reserve Policy includes the following major Reserve Fund Descriptions:  Non-spendable: not available to fund operating expenditures of the organization because they are in the form of land and receivables.  Restricted: limited to special purpose funds such as Measure A (transportation), Gas Tax Fund (streets) and Quimby Funds (parks).  Committed: cash flow (currently working capital), emergency, and operating carryovers.  Assigned: constrained by the City’s intent to use funds for public safety or capital projects.  Unassigned (Unappropriated): net reserves available after satisfying the other reserve categories. Table 2 depicts the General Fund Reserve/Fund Balances as of June 30, 2017. Table 2 - General Fund Reserve/Fund Balances-6/30/17 158 5 Current Reserve Policy includes the following targets:  Working Capital Reserve: 10% of Adopted Operating Budget  Emergency Reserve: 40% of Adopted Operating Budget The General Accounting Standards Board (GASB) is the organization that establishes standards for accounting and financial reporting for state and local governments. GASB provides that it is common practice for governments to put aside resources to be used in a financial emergency or for cash flow purposes. Reserve funds are crucial to the financial viability and stability of a municipality. Deferred maintenance, increased debt, and cash flow problems are common indicators of weak reserve balances. While strong reserve funds:  manage cash flows and volatility in revenue and expenditures  address unexpected economic fluctuations with long-term solutions  provide needed money if a municipality should find itself facing unexpected financial difficulties  reduce the cost of borrowing money. There is no guidance for a “maximum” reserve limit but rather each organization should evaluate reserves depending upon their unique circumstances. There will always be more needs and unanticipated events than there are resources; therefore, governments must balance the need to be fiscally responsible with what are reasonable reserves. The amount of reserves a municipality maintains is determined by the community’s risk tolerance; a low-risk tolerance will result in higher reserves while a high-risk tolerance will result in lower reserves. 2.3 Guiding Principles, City of La Quinta Reserves The City follows the following budgetary and cash management principles:  One-time revenues should not be utilized for on-going expenditures. One- time revenues should be put into reserves or appropriated for one-time expenditures.  Reserves for capital improvements, equipment replacement, and infrastructure should be part of the on-going budget process. Based on depreciation, or other relevant criteria, contributions should be made annually (into a revolving fund) as part of the budget process toward replacement of equipment, buildings, infrastructure, etc.  When authorizing the use of reserves, developing a plan to replenish those reserves should also be considered. 159 6  The Reserve Policy can be amended by resolution and requires a 4/5th approval of the Council. 2.4 Ten-Year Financial Projection A Ten-Year Financial Projection is essential to aid in determining an appropriate Reserve Policy. The La Quinta Advisory Committee1 developed this tool to analyze various Revenue and Expenditure Scenarios in FY 2015/16. Updated Ten-Year Financial Projections (Exhibits 1 and 2) are in the Appendix. The Ten-Year Financial Projection is an Excel model that utilizes the FY 2017/18 Budget as the Base Year and applies a specific inflator (growth projection) for most revenue and expenditure line items to each of the remaining ten years. The Model includes the following key features:  14 Revenue line items: All revenue line items have a 1% inflator except for Motor Vehicle In-Lieu, Fire Service Credit, Property Tax, and Transient Occupancy Tax which have a 2% inflator. The largest revenue line items are Property Tax, Sales Tax, and Transient Occupancy Tax (TOT).  13 Expenditure line items: Most expenditure line items have a 2% inflator except for Salaries and Medical Insurance Costs which have a 3% inflator and Police Contract which has an 8% inflator (Exhibit 1) to resemble historical increases or a 10% inflator (Exhibit 2) based on current police contract projections. The Capital Improvements line item is not inflated as these costs represent the annual minimum General Fund contribution for road maintenance to secure Measure A and SB1 Gas Tax Funding (restricted funds for road improvements). The Fire Service Contract is anticipated to increase by 4% annually.  Additional Revenue Sources: These revenues include (1) Measure G Sales Tax and (2) Redevelopment Agency (RDA) payback (ending in FY 2029/30). Please note, any potential TOT tax increase was not used for this analysis. The Model shows that before any Additional Revenue Sources are applied, there is a cumulative Revenues/Expenditure deficit of -$58.82.1 million at the end of the ten- year period (Exhibit 1) or a deficit of -$88.72 million (Exhibit 2). After the Additional Revenue Sources are applied and $3 million a year for capital improvements, there is a cumulative +$24.151.8 million Revenues/Expenditure surplus (Exhibit 1) or -$5.7+$21.9 million deficit (Exhibit 2). 1 The La Quinta Advisory Committee Report of January 2016 is a good reference for the City’s financial system. 160 7 The Ten-Year Projection demonstrates the importance of the RDA loan repayment and the impact of Measure G sales tax to the City’s financial future. It also shows that there is about $5 million/year available to fund the Reserve accounts during the next five yearsis Ten-Year period (Exhibit 1). However, if Police Contract services escalate to 10% the available funding is reduced to an average of $4 $21.9 million or $2.19 million annually over the next five years (Exhibit 2). In addition to the projected Ten-Year surplus (Exhibit 1), as of June 30, 2017the city currently hads an unassigned fund balance of approximately $16.9 million. These funds are non-restrictive and can be used to fund the recommended Reserve/Trust targets, capital projects, or operating expenses at the discretion of the Council. The Ten-Year Projection provides an easy tool for the City to periodically analyze its financial condition as new information becomes available. One can easily glean the impact on City finances by simply changing an inflator assumption or line item starting balance. It is clear that small changes in some of the inputs can result in significant changes in the financial projections. Recommendation: Utilize a Ten-Year Projection to evaluate the City’s financial condition and evaluate reserve funding optionsupdate the reserve levels/policy. The Ten-Year Projection should be updated annually. Recommendation: Utilize Current Unassigned Reserves to fund the recommended Reserve/Trust targets and/or operating expenses at the discretion of the Council. 2.5 Reserves versus Fund Balances The financial terminology utilized for the current Reserve Policy can be confusing, but is regulated by GASB Statement No. 54. The terms “reserve” and “fund balance” are used interchangeably and can lead to a misunderstanding of actual financial condition. For example, Table 2 shows a total General Fund Reserve/Fund Balance of $107 million at the end of FY 2016/17. The only line items in Table 2 classified as “reserves” are Emergency Reserve ($16.5 million) and Cash Flow Reserve ($4.1 million) for a total of $20.6 million. Therefore, true “reserves” are much less than the reported $107 million level. Recommendation: To eliminate this confusion, the following classifications are suggested and should be re-categorized to place actual reserves together (at the top) in the Committed Fund Balance category: 161 8 General Fund Balances  Non-Spendable General Fund Committed Reserves2  Emergency  Cash Flow (replaces Working Capital)  Capital Improvement Program (CIP) Sinking Fund  Carryovers This provides a grouping representation of reserves by re-categorizing the items of which there is no reserve funding potential. Fund balance reporting is governed by GASB. The GASB regulation is intended to provide a uniform method for reporting reserved and unreserved fund balances for all government agencies. Fund balances are reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purpose for which amounts in those funds can be spent. The proposed General Fund Reserve line items are further discussed in Section 3 of this report. 3.0 General Fund Reserves The subcommittee focused on developing a pragmatic methodology to determine the appropriate reserve levels as opposed to utilizing a percentage-based methodology. This process establishes a rationale and protocol that allows for an annual review of reserves based on actual economic conditions. 3.1 Emergency Reserve As defined in the City’s municipal code (§ 2.20.020 A), the terms emergency and disaster mean: “ The actual or threatened existence of conditions of disaster or of extreme peril to the safety of persons and property within this City caused by such conditions as air pollution, fire, flood, storm, epidemic, riot, earthquake or other conditions, including conditions resulting from war or imminent threat of war but other than conditions resulting from a labor controversy, which conditions are or are likely to be beyond the control of the services, regular personnel, equipment and facilities of the City and which may require the combined forces of other political jurisdictions to combat.” Fiscal emergencies can be caused by natural disasters or swings in the economy. 2 Note the Post-Retirement Health Benefits Fund is now an OPEB Trust being funded directly from the General Fund Budget. 162 9 Recommendation: One Emergency Reserve with two components---Natural Disaster and Economic. Modify the city ordinance to simplify access to the Emergency Reserve. 3.1.1 Natural Disaster Component The Emergency Reserve-Natural Disaster component will provide funding for floods, earthquakes and other natural disasters. The determination of the level of this reserve component requireds the following analysis: 1. Capital Asset Inventory & Valuation: What do we have and what is it worth? 2. Capital Asset Risk Assessment: Which assets are more critical in a disaster? 3. Insurance Coverage: How do we evaluate risk versus premium? 4. Government Disaster Funding: How much will Federal, state and/or county government contribute in a disaster? The City conducted a comprehensive Asset/Insurance/Government Funding Study (Study) analyzing these four items. Exhibit 4 summarizes the results from the Study. The City’s insured assets total $366 million. In an emergency, individual assets with insurance coverage do not qualify for federal or state reimbursement. Furthermore, federal reimbursement is limited to 75% and state reimbursement is limited to 18.75% of total expenditures. Based on current insurance coverage the potential city liability could be $19.2 million. Assets that are not covered by insurance or government natural disaster funding are depicted in the column labeled require 100% reserve funding. Non-critical assets require 50% reserve funding for a total recommended reserve of $10 million. A proper Emergency Reserve-Natural Disaster component cannot be established until these four items are researched and analyzed. Recommendation: Undertake a comprehensive Asset/Risk/Insurance/Government Funding Study as soon as possible. Establish an Asset Management Program to expand on the as part of this Study to better track, maintain and replace assets and develop long-term Capital Improvement Program (CIP). Consider hiring a consultant to perform these functions. Once the Study is complete, the Subcommittee will reconvene, evaluate, and recommend an Emergency Reserve-Natural Disaster component reserve level. Recommendation: Fund this reserve initially with the current Emergency Reserve balance. $1.5 million annually and set the reserve level after the Study is complete. 163 10 3.1.2 Economic Disaster Component The Emergency Reserve-Economic Disaster component will provide funding to respond to a downturn in the economy. To establish this reserve level, the City’s financial data was analyzed from 2000 to 2017 as this period included probably the worst economic downturn since the Great Depression. Figure 1, on the following page, (Long-Term Economic History) plots Revenue, Expenditures and Net Income adjusted for inflation during this period. The Net Income line is the key data as this gives a good indication of the financial health of the City in any given year. A linear regression line was applied to the Net Income data to establish the normalized level of Net Income for this Seven-Year period. Any Net Income below the Linear Regression curve indicates the need for economic input to recover. During the period from 2008 to 2014, there are two troughs. The period between 2008 and 2011 (economic recession) would require approximately $10 million to recover and the period from 2011 to 2014 (redevelopment dissolution) would require $11 million to recover. This was a very unusual economic period and back-to-back downturns are unlikely in the future. Access to this reserve should be granted for economic stabilization and volatility as a direct result of economic conditions during periods of unanticipated economic downturns or unanticipated spikes in operating costs. Use of emergency reserves due to economic pressures should be limited to maintaining essential day-to-day services, such as public safety or responding to adverse circumstances, while the City formulates a longer-term strategy. Use of the economic disaster reserves should be defined in policy and may include:  Used to balance the budget if revenues are projected to be 10% less than prior year actual revenues  Or if operating expenses are projected to be 10% more than prior year actual expenses. 164 11 $(10,000,000) $‐ $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 City of La Quinta‐Revenues‐Expenditures & Net Income CPI‐Adjusted FY2000‐2017 Revenue Expenses Net Income Linear (Net Income) Figure 1-Long-Term Economic History Recommendation: Set the Emergency Reserve-Economic Disaster component at $11 million, fund with $1.0 million annually and define the intended use of funds. 3.2 Cash Flow Reserve The Cash Flow Reserve replaces the existing terminology and calculation of Working Capital Reserve (currently based on 10% of the operating budget). This reserve covers the inherent mismatch of revenues versus expenditures due primarily to tax revenue receipts. This reserve also serves as a funding source for capital projects with various state and federal grants, which are typically reimbursement based. Reserves allows for capital projects to incur costs and stay on track with reimbursement, typically within 90-180 days. 165 12 Figure 2-Cash Flow Imbalance for FY 2016/17 It is recommended that the Cash Flow Reserve be updated annually by calculating the prior fiscal year monthly surplus/(deficit) of revenues versus expenditures; with the largest cumulative deficit becoming the updated Cash Flow Reserve. Figure 2 above shows the monthly cash imbalances whereby revenues are not received uniformly throughout the year, which results in peaks and valleys depending upon large payments that are received throughout the year. For example, large property tax payments are usually received in December and May. Similarly, transient occupancy tax payments increase during months with large festivals and events. The timing imbalance of revenue receipts versus expenditures is funded from the City’s cash flow reserves. For FY 2016/17 this analysis yielded a $4.7 million cash flow imbalance. Recommendation: Set Cash Flow Reserve at $5 million initially and fund annually subject to the calculation.  $‐  $1,000,000  $2,000,000  $3,000,000  $4,000,000  $5,000,000  $6,000,000  $7,000,000  $8,000,000  $9,000,000  $10,000,000 Revenue Expenditures 166 13 3.3 Capital ReplacementIP Sinking Fund Reserve Exhibit 3 (Appendix) is page 47 from the FY 2016/17 Comprehensive Annual Financial Report (CAFR) describing the City’s capital assets. Table 3 below summarizes the Depreciable Assets from this information. Table 3-Depreciable Assets The total Ten-Year Capital Improvement Program (CIP) budget utilized for Exhibits 1 and 2 includes minimum funding to secure Measure A and Gas Tax revenue for road improvements ($1.5 million annually). Capital expenses are typically supplemented with restricted funds such as those for road improvements, Quimby Funds for parks, developer impact fees (DIF), and grant funds. In addition to the General Fund, the City also maintains ten-year revenue and expenditure projections on these additional CIP funding sources. For FY 2017/18 General Fund capital expenses budgeted total $6.53 million or approximately 73% of depreciation (6.53/9.00=73) and are a reasonable barometer for evaluating the proper level of investment in capital assets. Additionally, $2.3 million is budgeted under special funds, for a total CIP budget of $8.83 or 98% of depreciation (8.83/9=98). Special revenue funds are derived from gas tax sales, property tax valuations, and developer impact fees; these revenue projections can vary greatly from year to year. Ideally, it would be desirable to match annual depreciation with capital spending, therefore it is recommended to establish a Capital ReplacementIP Sinking Fund Reserve to set aside funds to supplement funding gaps. Recommendation: Set Capital ReplacementIP Sinking Fund Reserve at $10 million and fund with $1.0 million annually. 167 14 3.4 Unfunded Pension Liability As of June 30, 2017, the CalPERS Net Pension Liability was $10.8 million (7.65% discount rate). Exhibits 1 and 2 shows the actual CalPERS Unfunded Liability cost of $454,756 in FY 2016/17. However, the CalPERS Net Pension Liability is a moving target and is dependent on the CalPERS discount rate. For example, if the discount rate lowers to 6.65%, the Net Pension Liability increases to $16.5 million. In December 2016, CalPERS lowered the discount rate (rate of return for investments) from 7.5% to 7%, which will increase the CalPERS total unfunded pension liability for all participating agencies, including the city. The City’s annual unfunded pension liability payment will further increase starting in FY 2018/19 continuing through 2021/22. In addition, every four years CalPERS evaluates all pension plans to ensure financial stability. This evaluation has been completed and was presented to the CalPERS Board on November 13-15, 2017. Results from this valuation confirmed lowering the discount rate to 7%. Eliminating or reducing the CalPERS Net Pension Liability is prudent as it will improve the financial condition of the City and send a message that the City is addressing this issue in a fiscally responsible manner. Assuming the CalPERS Net Pension Liability is $10 million (between $8.7 and $14.0 million), the liability could be eliminated or reduced in this Ten-Year period by contributing another $1.0 million/year. If the city chose to open and fund a pension trust, any additional discretionary payments would offset the unfunded pension liability and could be used for future contributions. In general, paying earlier reduces long-term pension costs because additional contributions have more time to compound investment returns, reducing the need for future contributions. The extent to which any additional contributions would lower future payments would depend largely on realized investment returns. Recommendation: Form an irrevocable CalPERS Pension Trust, and set at $10 million target, and fund with $1.0 million annually as a General Fund Expense. 168 15 Appendix 169 16 List of Exhibits Exhibit 1–Ten-Year Financial Projection with an 8% Increase in Police Service Contract Exhibit 2–Ten-Year Financial Projection with a 10% Increase in Police Service Contract Exhibit 3–FY 2016/17 CAFR Page 47-Capital Assets Exhibit 4 – Summary of All Insured City Assets 170 City of La Quinta As of March 23 2018ActualGrowthAdjusted Budget2018/19 to 2027/282016/17 Projections 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28TOTAL1. Cash ReceiptsSales Tax - Bradley Burns8,597,655$ 1% 8,776,100$ 8,863,861$ 8,952,500$ 9,042,025$ 9,132,445$ 9,223,769$ 9,316,007$ 9,409,167$ 9,503,259$ 9,598,291$ 9,694,274$ 92,735,598$ Property Tax9,237,781 2%8,579,100 8,750,682 8,925,696 9,104,210 9,286,294 9,472,020 9,661,460 9,854,689 10,051,783 10,252,819 10,457,875 95,817,526 Transient Occupancy Tax8,933,184 2%8,516,900 8,687,238 8,860,983 9,038,202 9,218,966 9,403,346 9,591,413 9,783,241 9,978,906 10,178,484 10,382,054 95,122,832 Fire Service Property Tax ᵃ5,480,897 2%6,726,000 6,860,520 6,997,730 7,137,685 7,280,439 7,426,047 7,574,568 7,726,060 7,880,581 8,038,193 8,198,956 75,120,780 Fire Property Tax Reserves138,680 281,438 432,650 592,709 762,027 941,029 1,130,161 1,329,889 1,540,696 1,763,088 8,912,365 Motor Vehicle In-Lieu3,813,213 2%3,708,000 3,782,160 3,857,803 3,934,959 4,013,658 4,093,932 4,175,810 4,259,326 4,344,513 4,431,403 4,520,031 41,413,597 Other Revenue/Intergovernmental ᵇ1,190,129 1%1,735,600 1,452,956 1,467,486 1,482,160 1,496,982 1,511,952 1,527,071 1,542,342 1,557,765 1,573,343 1,589,077 15,201,134 Franchise Fees1,725,851 1%1,553,000 1,568,530 1,584,215 1,600,057 1,616,058 1,632,219 1,648,541 1,665,026 1,681,676 1,698,493 1,715,478 16,410,294 Charges for Services1,021,336 1%1,258,200 1,270,782 1,283,490 1,296,325 1,309,288 1,322,381 1,335,605 1,348,961 1,362,450 1,376,075 1,389,836 13,295,191 Development Related Permits759,969 1%936,700 946,067 955,528 965,083 974,734 984,481 994,326 1,004,269 1,014,312 1,024,455 1,034,700 9,897,954 Document Transfer Tax585,333 1%531,000 536,310 541,673 547,090 552,561 558,086 563,667 569,304 574,997 580,747 586,554 5,610,989 Business Licenses/Permits358,943 1%321,000 324,210 327,452 330,727 334,034 337,374 340,748 344,155 347,597 351,073 354,584 3,391,954 Fines and Assessments348,345 1%246,000 248,460 250,945 253,454 255,989 258,548 261,134 263,745 266,383 269,047 271,737 2,599,441 SilverRock Resort Net Revenue ᶜ531,400 1,260,000 2,500,000 2,960,000 2,842,000 3,222,000 3,540,000 3,575,400 3,611,154 24,041,954 2. Total Revenue$42,052,635$42,887,600 $43,430,456 $44,818,337 $46,424,627 $48,564,157 $49,946,182 $50,773,379 $52,122,447 $53,434,111 $54,488,518 $55,569,397 $499,571,6113. Cash Paid OutPolice Services Contract ᵈ14,417,358 8% 15,879,100 17,149,428 18,521,382 20,003,093 21,603,340 23,331,607 25,198,136 27,213,987 29,391,106 31,742,394 34,281,786 248,436,260 Fire Service Contract ᵈ5,643,880 4%6,730,000 6,999,200 7,279,168 7,570,335 7,873,148 8,188,074 8,515,597 8,856,221 9,210,470 9,578,888 9,962,044 84,033,145 Salaries (Full-Time Employees)4,989,399 3%5,527,700 5,693,531 5,864,337 6,040,267 6,221,475 6,408,119 6,600,363 6,798,374 7,002,325 7,212,395 7,428,767 65,269,952 Maintenance & Operations ᵉ4,029,463 2%4,613,700 4,705,974 4,800,093 4,896,095 4,994,017 5,093,898 5,195,776 5,299,691 5,405,685 5,513,799 5,624,075 51,529,102 Other Contract Services3,821,091 2%3,206,000 3,270,120 3,335,522 3,402,233 3,470,278 3,539,683 3,610,477 3,682,686 3,756,340 3,831,467 3,908,096 35,806,902 Capital Expenses ᶠ3,937,135 1,567,000 1,552,000 1,552,000 1,552,000 1,552,000 1,552,000 1,552,000 1,552,000 1,552,000 1,552,000 1,552,000 15,520,000 Employee Medical Insurance Costs880,980 3%1,373,300 1,414,499 1,456,934 1,500,642 1,545,661 1,592,031 1,639,792 1,688,986 1,739,655 1,791,845 1,845,600 16,215,646 Transfers Out ᶢ1,372,300 1,219,500 1,219,500 819,500 819,500 819,500 819,500 819,500 819,500 819,500 819,500 819,500 8,595,000 Other Personnel Costs618,674 2%896,100 914,022 932,302 950,948 969,967 989,367 1,009,154 1,029,337 1,049,924 1,070,922 1,092,341 10,008,286 PERS Unfunded Pension Liabilityͪ454,756 592,784 711,814 866,600 986,100 1,138,800 1,272,600 1,348,200 1,348,248 1,375,213 1,402,717 1,430,772 11,881,064 PERS Normal Payroll Costs348,821 2%363,816 605,238 617,343 629,690 642,283 655,129 668,232 681,596 695,228 709,133 723,315 6,627,187 Salaries (Part-Time/Temporary)143,123 2%340,400 347,208 354,152 361,235 368,460 375,829 383,346 391,013 398,833 406,810 414,946 3,801,831 1996 Bond Debt Service678,100 671,400 668,200 668,200 4. Total Operational Expenses$41,335,079$42,980,800 $45,250,734 $46,399,334 $48,712,138 $51,198,930 $53,817,838 $56,540,572 $59,361,639 $62,396,279 $65,631,870 $69,083,241 $558,392,5755. Yearly Operating Cash Position(2 minus 4) 717,556 (93,200) (1,820,278) (1,580,997) (2,287,511) (2,634,774) (3,871,656) (5,767,193) (7,239,191) (8,962,168) (11,143,352) (13,513,844) (58,820,964)6. Measure G Sales Tax Revenue(95% of Sales Tax Bradley Burns)1,462,6508,000,000 8,420,668 8,504,875 8,589,923 8,675,823 8,762,581 8,850,207 8,938,709 9,028,096 9,118,377 9,209,56188,098,818 7. Cash Position After Measure G(5 plus 6)$2,180,206 7,906,800$ 6,600,390$ 6,923,878$ 6,302,412$ 6,041,049$ 4,890,925$ 3,083,014$ 1,699,517$ 65,928$ (2,024,975)$ (4,304,284)$ 29,277,854$ 8. Measure G UsesPolice Services Contract ᶜ100,000 - Capital Expenses990,873 4,969,464 3,731,561 3,859,103 3,764,599 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,00032,355,263 Measure G Reserves471,777 330,500- Public Safety Fund300,000 - 9. Total Measure G Uses1,462,650$ 5,699,964$ 3,731,561$ 3,859,103$ 3,764,599$ 3,000,000$ 3,000,000$ 3,000,000$ 3,000,000$ 3,000,000$ 3,000,000$ 3,000,000$ 32,355,263$ 10. Cash Position After Measure G Uses(7 minus 9)717,556 2,206,836 2,868,829 3,064,775 2,537,813 3,041,049 1,890,925 83,014 (1,300,483) (2,934,072) (5,024,975) (7,304,284) (3,077,409) 11. RDA Loan RepaymentRepayment based on Last & Final ROPS1,826,881 2,441,620 2,490,453 2,540,262 2,591,066 2,642,888 2,695,746 2,749,661 2,804,654 2,860,747 2,917,962 2,976,321 27,269,760 12. Cash Position After RDA Repayment(10 plus 11)2,544,437$ 4,648,456$ 5,359,282$ 5,605,037$ 5,128,879$ 5,683,937$ 4,586,671$ 2,832,675$ 1,504,171$ (73,325)$ (2,107,013)$ (4,327,963)$ 24,192,351$ OPERATING BUDGET NOTES:a - Fire Property Tax Reserve account balance as of June 30, 2017 is $9,371,699. These funds are held in trust by the County of Riverside and restricted for fire services. b - Intergovernmental revenue will experience a decrease of $300,000 in 18/19 due one-time revenue in 17/18 and lower administrative reimbursements from Redevelopment dissolution resulting from an approved last and final repayment schedule. c - SilverRock Resort Net Revenue includes revenue derived from sales tax, property tax, transient occupancy tax and development fees. d - Police and Fire services are provided by the County of Riverside and subject to the County's annual budget for services. e - Maintenance and operations includes utilities and internal services charges. f - Capital expenses for 16/17 included the Eisenhower Drive retention basin land purchase. Ongoing projections include minimum capital funding for street and sidewalk improvements required to secure Measure A and Gas Tax funding. g - Transfers Out support the Gas Tax Fund for street improvements, the Landscape and Lighting District, and SilverRock golf course. A decrease in 19/20 is anticipated due to the scheduled disposition of SilverRock. h - PERS unfunded pension liability projections are based on CalPERS actuarial valuations as of June 30, 2016. GENERAL FUND FINANCIAL PROJECTIONSOPERATING BUDGETThe Adjusted Budget for 17/18 includes anticipated mid-year changes. Revenue projections are based on current economic conditions and historical trends. All assumptions include positive growth with no economic downturns. Expenditure projections are based on current operations, regulatory requirements, and anticipated increases. Measure G Uses Include:FY 16/17 Approved Uses:Eisenhower Dr. retention basin, Calle Tampico drainage improvementsFY 17/18 Approved Uses:Citywide drainage improvements, Village road diet, N. LQ landscape improvements, police servicesFY 18/19 Proposed Uses:Citywide drainage improvements, N. LQ landscape improvementsFY 19/20 & 20/21 Proposed Uses:N. LQ landscape improvements, corporate yard facilityFY 21/22 & beyond CIP TBDMEASURE G SALES TAX BUDGETRDA LOANRDA loan repayments end in 29/30. Additional revenue totals $5,784,105. EXHBIT 1171 City of La Quinta As of March 23, 2018ActualGrowthAdjusted Budget2018/19 to 2027/282016/17 Projections 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28TOTAL1. Cash ReceiptsSales Tax - Bradley Burns8,597,655$ 1% 8,776,100$ 8,863,861$ 8,952,500$ 9,042,025$ 9,132,445$ 9,223,769$ 9,316,007$ 9,409,167$ 9,503,259$ 9,598,291$ 9,694,274$ 92,735,598$ Property Tax9,237,781 2%8,579,100 8,750,682 8,925,696 9,104,210 9,286,294 9,472,020 9,661,460 9,854,689 10,051,783 10,252,819 10,457,875 95,817,526 Transient Occupancy Tax8,933,184 2%8,516,900 8,687,238 8,860,983 9,038,202 9,218,966 9,403,346 9,591,413 9,783,241 9,978,906 10,178,484 10,382,054 95,122,832 Fire Service Property Tax ᵃ5,480,897 2%6,726,000 6,860,520 6,997,730 7,137,685 7,280,439 7,426,047 7,574,568 7,726,060 7,880,581 8,038,193 8,198,956 75,120,780 Fire Property Tax Reserves138,680 281,438 432,650 592,709 762,027 941,029 1,130,161 1,329,889 1,540,696 1,763,088 8,912,365 Motor Vehicle In-Lieu3,813,213 2%3,708,000 3,782,160 3,857,803 3,934,959 4,013,658 4,093,932 4,175,810 4,259,326 4,344,513 4,431,403 4,520,031 41,413,597 Other Revenue/Intergovernmental ᵇ1,190,129 1%1,735,600 1,452,956 1,467,486 1,482,160 1,496,982 1,511,952 1,527,071 1,542,342 1,557,765 1,573,343 1,589,077 15,201,134 Franchise Fees1,725,851 1%1,553,000 1,568,530 1,584,215 1,600,057 1,616,058 1,632,219 1,648,541 1,665,026 1,681,676 1,698,493 1,715,478 16,410,294 Charges for Services1,021,336 1%1,258,200 1,270,782 1,283,490 1,296,325 1,309,288 1,322,381 1,335,605 1,348,961 1,362,450 1,376,075 1,389,836 13,295,191 Development Related Permits759,969 1%936,700 946,067 955,528 965,083 974,734 984,481 994,326 1,004,269 1,014,312 1,024,455 1,034,700 9,897,954 Document Transfer Tax585,333 1%531,000 536,310 541,673 547,090 552,561 558,086 563,667 569,304 574,997 580,747 586,554 5,610,989 Business Licenses/Permits358,943 1%321,000 324,210 327,452 330,727 334,034 337,374 340,748 344,155 347,597 351,073 354,584 3,391,954 Fines and Assessments348,345 1%246,000 248,460 250,945 253,454 255,989 258,548 261,134 263,745 266,383 269,047 271,737 2,599,441 SilverRock Resort Net Revenue ᶜ531,400 1,260,000 2,500,000 2,960,000 2,842,000 3,222,000 3,540,000 3,575,400 3,611,154 24,041,954 2. Total Revenue$42,052,635$42,887,600 $43,430,456 $44,818,337 $46,424,627 $48,564,157 $49,946,182 $50,773,379 $52,122,447 $53,434,111 $54,488,518 $55,569,397 $499,571,6113. Cash Paid OutPolice Services Contract ᵈ14,417,358 10% 15,879,100 17,467,010 19,213,711 21,135,082 23,248,590 25,573,449 28,130,794 30,943,874 34,038,261 37,442,087 41,186,296 278,379,155 Fire Service Contract ᵈ5,643,880 4%6,730,000 6,999,200 7,279,168 7,570,335 7,873,148 8,188,074 8,515,597 8,856,221 9,210,470 9,578,888 9,962,044 84,033,145 Salaries (Full-Time Employees)4,989,399 3%5,527,700 5,693,531 5,864,337 6,040,267 6,221,475 6,408,119 6,600,363 6,798,374 7,002,325 7,212,395 7,428,767 65,269,952 Maintenance & Operations ᵉ4,029,463 2%4,613,700 4,705,974 4,800,093 4,896,095 4,994,017 5,093,898 5,195,776 5,299,691 5,405,685 5,513,799 5,624,075 51,529,102 Other Contract Services3,821,091 2%3,206,000 3,270,120 3,335,522 3,402,233 3,470,278 3,539,683 3,610,477 3,682,686 3,756,340 3,831,467 3,908,096 35,806,902 Capital Expenses ᶠ3,937,135 1,567,000 1,552,000 1,552,000 1,552,000 1,552,000 1,552,000 1,552,000 1,552,000 1,552,000 1,552,000 1,552,000 15,520,000 Employee Medical Insurance Costs880,980 3%1,373,300 1,414,499 1,456,934 1,500,642 1,545,661 1,592,031 1,639,792 1,688,986 1,739,655 1,791,845 1,845,600 16,215,646 Transfers Out ᶢ1,372,300 1,219,500 1,219,500 819,500 819,500 819,500 819,500 819,500 819,500 819,500 819,500 819,500 8,595,000 Other Personnel Costs618,674 2%896,100 914,022 932,302 950,948 969,967 989,367 1,009,154 1,029,337 1,049,924 1,070,922 1,092,341 10,008,286 PERS Unfunded Pension Liabilityͪ454,756 592,784 711,814 866,600 986,100 1,138,800 1,272,600 1,348,200 1,348,248 1,375,213 1,402,717 1,430,772 11,881,064 PERS Normal Payroll Costs348,821 2%363,816 605,238 617,343 629,690 642,283 655,129 668,232 681,596 695,228 709,133 723,315 6,627,187 Salaries (Part-Time/Temporary)143,123 2%340,400 347,208 354,152 361,235 368,460 375,829 383,346 391,013 398,833 406,810 414,946 3,801,831 1996 Bond Debt Service678,100 671,400 668,200 668,200 4. Total Operational Expenses$41,335,079$42,980,800 $45,568,316 $47,091,663 $49,844,127 $52,844,180 $56,059,679 $59,473,230 $63,091,526 $67,043,434 $71,331,563 $75,987,751 $588,335,4695. Yearly Operating Cash Position(2 minus 4) 717,556 (93,200) (2,137,860) (2,273,326) (3,419,501) (4,280,024) (6,113,498) (8,699,851) (10,969,078) (13,609,323) (16,843,045) (20,418,354) (88,763,859)6. Measure G Sales Tax Revenue(95% of Sales Tax Bradley Burns)1,462,6508,000,000 8,420,668 8,504,875 8,589,923 8,675,823 8,762,581 8,850,207 8,938,709 9,028,096 9,118,377 9,209,56188,098,818 7.Cash Position After Measure G(5 plus 6)$2,180,206 7,906,800$ 6,282,808$ 6,231,549$ 5,170,423$ 4,395,799$ 2,649,083$ 150,356$ (2,030,370)$ (4,581,227)$ (7,724,668)$ (11,208,793)$ (665,041)$ 8. Measure G UsesPolice Services Contract ᶜ100,000 - Capital Expenses990,873 4,969,464 3,731,561 3,859,103 3,764,599 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,00032,355,263 Measure G Reserves471,777 330,500- Public Safety Fund300,000- 9. Total Measure G Uses1,462,650$ 5,699,964$ 3,731,561$ 3,859,103$ 3,764,599$ 3,000,000$ 3,000,000$ 3,000,000$ 3,000,000$ 3,000,000$ 3,000,000$ 3,000,000$ 32,355,263$ 10. Cash Position After Measure G Uses(7 minus 9)717,556 2,206,836 2,551,247 2,372,446 1,405,824 1,395,799 (350,917) (2,849,644) (5,030,370) (7,581,227) (10,724,668) (14,208,793) (33,020,304) 11. RDA Loan RepaymentRepayment based on Last & Final ROPS1,826,881 2,441,620 2,490,453 2,540,262 2,591,066 2,642,888 2,695,746 2,749,661 2,804,654 2,860,747 2,917,962 2,976,321 27,269,760 12.Cash Position After RDA Repayment(10 plus 11)2,544,437$ 4,648,456$ 5,041,700$ 4,912,708$ 3,996,890$ 4,038,687$ 2,344,829$ (99,983)$ (2,225,716)$ (4,720,480)$ (7,806,706)$ (11,232,473)$ (5,750,544)$ The Adjusted Budget for 17/18 includes anticipated mid-year changes. Revenue projections are based on current economic conditions and historical trends. All assumptions include positive growth with no economic downturns. Expenditure projections are based on current operations, regulatory requirements, and anticipated increases. Measure G Uses Include:FY 16/17 Approved Uses:Eisenhower Dr. retention basin, Calle Tampico drainage improvementsFY 17/18 Approved Uses:Citywide drainage improvements, Village road diet, N. LQ landscape improvements, police servicesFY 18/19 Proposed Uses:Citywide drainage improvements, N. LQ landscape improvementsFY 19/20 & 20/21 Proposed Uses:N. LQ landscape improvements, corporate yard facilityFY 21/22 & beyond CIP TBDRDA loan repayments end in 29/30. Additional revenue totals $5,784,105. OPERATING BUDGET NOTES:a - Fire Property Tax Reserve account balance as of June 30, 2017 is $9,371,699. These funds are held in trust by the County of Riverside and restricted for fire services. b - Intergovernmental revenue will experience a decrease of $300,000 in 18/19 due one-time revenue in 17/18 and lower administrative reimbursements from Redevelopment dissolution resulting from an approved last and final repayment schedule. c - SilverRock Resort Net Revenue includes revenue derived from sales tax, property tax, transient occupancy tax and development fees. d - Police and Fire services are provided by the County of Riverside and subject to the County's annual budget for services. e - Maintenance and operations includes utilities and internal services charges. f - Capital expenses for 16/17 included the Eisenhower Drive retention basin land purchase. Ongoing projections include minimum capital funding for street and sidewalk improvements required to secure Measure A and Gas Tax funding. g - Transfers Out support the Gas Tax Fund for street improvements, the Landscape and Lighting District, and SilverRock golf course. A decrease in 19/20 is anticipated due to the scheduled disposition of SilverRock. h - PERS unfunded pension liability projections are based on CalPERS actuarial valuations as of June 30, 2016. GENERAL FUND FINANCIAL PROJECTIONSOPERATING BUDGETMEASURE G SALES TAX BUDGETRDA LOANEXHIBIT 2172 CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2017 47 NOTE 4: CAPITAL ASSETS Capital asset activity for governmental activities for the year ended June 30, 2017, is as follows: Beginning Ending Balance at Balance at July 1, 2016 Additions Deletions Transfers June 30, 2017 Governmental activities: Capital assets, not being depreciated: Land 69,816,674$ 4,500,000$ -$ -$ 74,316,674 Right of way 284,928,794 - - - 284,928,794 Construction-in-progress 8,692,612 4,587,553 - (3,310,670) 9,969,495 Total Capital Assets, Not Being Depreciated 363,438,080 9,087,553 - (3,310,670) 369,214,963 Capital assets, being depreciated: Buildings and improvements 74,176,560 199,856 - 264,395 74,640,811 Equipment and furniture 3,442,965 39,957 --3,482,922 Vehicles 1,751,819 452,067 329,500 - 1,874,386 Infrastructure 218,399,541 - - 3,046,275 221,445,816 Total Capital Assets, Being Depreciated 297,770,885 691,880 329,500 3,310,670 301,443,935 Less accumulated depreciation for: Buildings and improvements 28,159,909 2,361,480 - - 30,521,389 Equipment and furniture 2,216,710 237,744 - - 2,454,454 Vehicles 1,563,715 68,123 329,500 - 1,302,338 Infrastructure 108,789,321 6,506,746 - - 115,296,067 Total Accumulated Depreciation 140,729,655 9,174,093 329,500 - 149,574,248 Total Capital Assets, Being Depreciated, Net 157,041,230 (8,482,213) - 3,310,670 151,869,687 Governmental Activities Capital Assets, Net 520,479,310$ 605,340$ -$ -$ 521,084,650 Depreciation expense was charged to the following functions in the Statement of Activities: General governments 634,400$ Planning and development 115,832 Community services 1,820,841 Public works 6,603,020 9,174,093$ EXHIBIT 3 173 EXHIBIT 4 Natural Disaster  Reserve % of  City Coverage Asset  Estimated  Replacement  Value  Recommended  Coverage Recommended  Coverage FEMA/State City Coverage 14 Parks 19,966,204    ‐ ‐18,718,316        1,247,888 623,944 50% 0%94%6% 12 City Buildings 60,322,936    31,197,068            52,562,286           1,678,125          111,875              111,875 100% 52%87%3%0.19% SilverRock 6,317,571       3,034,645              2,592,501             3,651,397          243,426              121,713 50% 48%41%58%4% Streets, Signals, 266,775,219  ‐ 823,394 248,557,904      16,570,527        8,285,263              50% Signs, Landscaping 0%0.31%93%6% Fleet Vehicles 693,182          693,182 ‐‐693,182              693,182 100% 100%0%100% Housing Assets 12,059,000    12,059,000            5,199,000             6,431,250          428,750              428,750 100% 100%43%53%4% TOTALS 366,134,112  46,983,895            61,177,181            279,036,992       19,295,648          10,264,728             Percentage of Total Value 13%17%76%5%3% Property Coverage (Flood, Fire, Wind) Earthquake  Coverage Estimated Replacement Costs  Funding Sources SUMMARY OF ALL INSURED CITY ASSETS  174 Reserve Category Current Allocation Method Alternative Allocation Method Additional Considerations Natural Disaster 40% of annual operating budget Comprehensive Asset Management Study performed every 5 years Modify City Ordinance to simply access to funds. Economic Disaster N/A 10 year historical financial analysis of the General Fund using revenue, expenditures and net income adjusted for inflation - Define access to funds in City Ordinance - economic downturns. * Used to balance the budget if revenues are projected to be 10% less than prior year actual revenues * Used to balance the budget if expenses are projected to be 10% more than prior year actual expenses - Intended to maintain essential daily operations while a long-term recovery strategy is formulated Cash Flow Reserve 10% of annual operating budget Update annually by calculating the prior fiscal year monthly surplus/deficit of revenues versus expenditures; with the largest cumulative deficit becoming the reserve target With budget adoption prior to the end of the fiscal year, a lag of one fiscal year would be required. Capital Replacement Reserve N/A Annual depreciation from total depreciable General Fund assets - Audited financial statements are completed six months after the fiscal year- end, a lag of one fiscal year would be required. - City also uses restricted funds for infrastructure improvements - Define access to funds in City Ordinance * Matching CIP grant funds, supplement CIP funding gaps Pension Trust Fund N/A - Target based on current CalPERS net pension liability - Subject to CalPERS actuarial studies, asset allocations, investment returns, and policies - Pension obligations will continue to increase - Funds available for reimbursement of up to two years of pension costs at any time ($2.2M today) - Section 115 Trust, restricted for pension obligations - All funds available for transfer to CalPERS at any time Unassigned Reserves GASB 54 GASB 54 - Unrestricted funds available to the City - Funding comes from annual savings (total revenue - total expenses) or budget surpluses - Has been used for: *Matching CIP funds *Land purchases *Cover minor or temporary anticipated budget shortfalls Reserve Categories and Allocation Methods OPTIONS - A - Keep the current allocation method. B - Implement the alternative allocation method. C - Keep the current allocation methods and use the alternative method for verification. ATTACHMENT 2 175 Reserve CategoryTarget Funding Current Funding Over/(Under) BalanceOther Funding SourcesFunding Sources Funding OptionsOver/(Under) Funding2017/18 2018/19 2019/20 2020/21 2021/22Estimated Over/(Under) FundingNatural Disaster 10,000,000 16,534,000 6,534,000 FEMA, State of CA, Special Funds-20% of realized year end surplus- - - - - - - - Economic Disaster 11,000,000 - (11,000,000) N/A-Reallocate overage from natural disaster- 20% of realized year end surpluses -One time $6,534,000-One time $1,000,000 (A) (3,466,000) 488,324 498,091 508,052 799,378 807,737 (364,418) Cash Flow Reserve 5,000,000 4,134,000 (866,000) N/A-Lump sum from unassigned reserves -One time $866,000 (B) - - - - - - - Capital Replacement Reserve 10,000,000 - (10,000,000) Special Funds-CIP savings - Measure G funds -One time $1,051,966 (C)-One time Measure G reserve $717,556 (8,230,478) 2,206,836 2,551,247 1,977,928 - - - -20% of realized year end surpluses 488,324 498,091 508,052 Pension Trust Fund 10,000,000 - (10,000,000) N/A-Annual salary and employee benefits savings-20% of realized year end surplus -One-time FY 16/17 savings $315,621 (J)-One-time $1,000,000 (D) (8,684,379) 488,324 498,091 508,052 799,378 807,737 (5,582,797)Unassigned - 14,865,926 14,865,926 N/A-20% of realized year end surplus -Allocate $3,917,966 of unassigned reserves 10,947,960 976,648 996,181 1,410,623 2,398,134 2,423,212 - Total 46,000,000 35,533,926 (10,466,074) (9,432,897) 4,648,456 5,041,700 4,912,708 3,996,890 4,038,687 (5,947,214)E F G H I No allocation of year end surplus for fully funded reserves. Surplus would remain in unassigned reserves. Surplus includes General Fund savings and unassigned RDA loan repayments which end in FY 2029/30.2016/17 2017/18 2018/19 2019/202021/222022/23EFG H ISurplus/(Deficit)* 2,544,437 4,648,456 5,041,700 4,912,708 3,996,890 4,038,687 14,865,926 Measure G (717,556) (2,206,836) (2,551,247) (2,372,446) (1,000,000)AS & B Savings (J) (315,621) (866,000)BAvailable for allocation 1,511,260 2,441,620 2,490,453 2,540,262 3,996,890 4,038,687 (1,051,966)C20% allocation20% 20%20%20%20%20% (1,000,000)DReserve Distribution 302,252 488,324 498,091 508,052 799,378 807,737 (3,917,966)Reserve Funding Options and Five-Year Projections* Based on General Fund 10-Year Projections, subject to change. Economic DisasterCash Flow ReserveCIP Sinking FundPension Trust FundOne-time Allocation of Unassigned ReservesCurrent Unassigned BalanceUse of Unassigned ReservesAnticipated Unassigned Balance 10,947,960 ATTACHMENT 3176 HAND OUTS CITY COUNCIL MEETING APRIL 3, 2018 POWER POINTS CITY COUNCIL MEETING APRIL 3, 2018 4/4/2018 1 City Council Meeting April 3, 2018 City Council Meeting April 3, 2018 B1 – Approve Amendment No. 3 to the Facility Use Agreement with the LQAF 4/4/2018 2 Amendment changes •Provides use of City property for the 2019 La  Quinta Arts Festival •Extends agreement term through March 31,  2019 •Removes all references to the “Blues & Brews  Event” and “Art Under the Umbrellas” Amendment clarifications •Identifies properties used by the Foundation  for the Festival •Confirms that Village Advanced Transportation  Program (ATP) project to begin activities after  2019 Festival •Affirms waivers for City facility use fees and  City Burrtec solid waster removal charges  4/4/2018 3 City Council Meeting April 3, 2018 B2 – Approve Participating Agreement with CVAG for Signal Synchronization 4/4/2018 4 Background •2014 –$7.7M CMAQ grant funding –CVAG seeks Valley-wide signal synchronization •Traffic system engineer selected –Prepare master plan –Multi‐agency participating agreement Signal Synchronization Project •Sub‐committee formed –April 2017 •CVAG Executive Committee Approval –February 2018 4/4/2018 5 Participating Agreement •Establishes systems management and operations  committee •Requires City waive permit fees •Allows CVAG access to City controllers/equipment •City reimburses equipment costs if city backs out  of agreement 4/4/2018 6 4/4/2018 7 City Council Meeting April 3, 2018 B3 – Debt Management Policy What is a Debt  Management  Policy? 4/4/2018 8 Why?  For who?The City and its entities  Housing AuthorityHousing Authority Successor AgencySuccessor Agency Financing AuthorityFinancing Authority Senate Bill 1029 Use of  proceeds Use of  proceeds Types of  debt that  may be  issued Types of  debt that  may be  issued CIP and  Budget  relationship CIP and  Budget  relationship Goals and  objectives Goals and  objectives Internal  controls  Internal  controls  Questions? 4/4/2018 9 City Council Meeting April 3, 2018 B4– Purchasing & Contracting Policy 4/4/2018 10 Why the need to updatethePolicy? Consistency & Clarification Federal Guidance Regulations Internal Controls What are the proposed changesto thePolicy? General Funding Addition of Administrative Guidelines section Expansion of Equal Bids section Addition of Maintenance & Repair definition Addition of Emergency Purchases requirements Federal Funding Addition of Section VII- to comply with Uniform Guidance requirements 4/4/2018 11 Looking Forward 2018/19 Citywide Training Collaboration with departmentsto monitor compliance QUESTIONS? 4/4/2018 12 City Council Meeting April 3, 2018 S2 – Discuss Senate Bill 1 Road Maintenance and Rehabilitation 4/4/2018 13 SB1 Summary •Enacted on April 28, 2017 •Creates a new permanent funding source for road maintenance and rehabilitation projects for cities and counties Senate Bill 1 Funding Requirements •Maintenance of Effort (MOE) –Expend General Funds equaling the annual average expenditures for the period 09/10 through 11/12 •Adopt a resolution by May 1st of each year –List of proposed projects –Project description/Limits –Anticipated useful life of projects 4/4/2018 14 Senate Bill 1 Maintenance of Effort (MOE) •The City’s MOE is calculated at $1,786,109 annually –General Fund Contribution to Gas Tax – [$350,00] –General Fund Contribution to L&L – [$450,00] –Measure A MOE – [$937,007] •New annual fund commitment will be approximately $49,102 SB1 Fiscal Impact •The City will receive approximately $3,515,042 from SB1 over the next five years: 2018/19 2019/20 2020/21 2021/22 2022/23 $675,500 $689,010 $702,790 $716,846 $730,896 4/4/2018 15 Proposed Projects Vicinity Map •FY 18/19 and 19/20 La Quinta Village Complete Streets –Five New Roundabouts –Create Pedestrian and Bicycle Friendly Roads –Funds for ROW, Landscape, and Drainage Proposed Projects •FY 18/19 Jefferson Street at Avenue 53 Roundabout –Construct new Roundabout –Entrance to new SilverRock Way Road 4/4/2018 16 Proposed Projects •FY 20/21 Highway 111 at La Quinta Center Drive –Construct dual left turn lanes on Highway 111 and La Quinta Center Drive Proposed Projects •FY 21/22 Dune Palms Road Pavement Rehabilitation –Rehabilitate Pavement from Fred Waring Drive to Miles Avenue 4/4/2018 17 Proposed Projects •FY 22/23 Fred Waring Drive Pavement Rehabilitation –Rehabilitate Pavement from Washington Street to Palm Royale Drive QUESTIONS? 4/4/2018 18 City Council Meeting April 3, 2018 S3 – Development Wind Up 2018 4/4/2018 19 ONE STOP SHOP EXPERIENCE “THE HUB”  &  Admin  Support Plan  Check Permits Business  License  &  STVRP Inspection CUSTOMER SERVICE INTERNAL AND EXTERNAL COMMUNICATION ACCESSIBILITY TRANSPARENCY TRANS- DIVISIONAL PROCESS UNIFORMITY 2017 ACCOMPLISHMENTS PROJECT COMPLETION DATE •Service Enhancements Ongoing •Interactive Development Map Completed •CIP BlueBeam digital plan review Completed •In-house Fire development review services May, 2017 •eTRAKiT Workshops May, 2017 •HUB Lounge June, 2017 •Paperless Plan Review August, 2017 •Minimum 85% on-time plan review for 2017 January, 2018 •Fritz Burns Park Tennis & Pickleball October, 2017 Court Improvements •Miles Avenue Median Island Improvements October, 2017 •La Quinta Acacia Turf Conversion Project February, 2018 •PMP Slurry Seal and Re-Striping Project November, 2017 4/4/2018 20 2018 GOALS GOALS COMPLETION DATE •Design and Development Handbook October 2017 •Online TOT reporting December 2017 •40% Planning Online Submittals December 2018 •Maintain 85% on-time plan review for 2018 January 2018 •Business License and TOT online July 2018 •Building Official Recruitment July 2018 •Lobby Enhancements Ongoing •HUB exchange May 2018 •Highway 111 Corridor ULI PAT June 2018 •LQ Art Alley Phase 1 October 2018 2017 HUB STATISTICS CUSTOMERS SERVED 9,697 PERMITS ISSUED 3,190 PROJECTS APPROVED 169 STVRP NEW PERMITS 345 BUSINESS LICENSES ISSUED 899 QUALITY  98% HELPFULLNESS 97% WAIT  TIME 92% 4/4/2018 21 97% 2% 1%0%ON TIME ONE DAY TWO DAYS MORE THAN TWO DAYS 2014 61% = D‐ 2015 83% = B‐ 2016 93% = A‐ 2017 97% = A PUBLIC WORKS DEVELOPMENT 6 6 6 R E V I E W S Average Review Time Dept 2017 Public Works 70.68% 87% 4%2%7%ON TIME ONE DAY TWO DAYS MORE THAN TWO DAYS 2017 87% =  B+ CIP 2 5 7 R E V I E W S 4/4/2018 22 80% 15% 3%2%ON TIME ONE DAY TWO DAYS MORE THAN TWO DAYS 2014 66% = D+ 2015 77% = C+ 2016 79% = C+ 2017 80% = B‐ BUILDING 1 7 5 8 R E V I E W S 94% 5% 0% 1%ON TIME ONE DAY TWO DAYS MORE THAN TWO DAYS 2014 62% = D‐ 2015 64% = D 2016 87% = B+ 2017 94% = A PLANNING 6 8 0 R E V I E W S Average Review Time Dept 2017 Planning 76.42% • 32% of planning projects/permits (50 out of 154 total planning cases) applied online 4/4/2018 23 95.72% 2%1%1%ON TIME ONE DAY TWO DAYS MORE THAN TWO DAYS 2017 95.72%  = A FIRE 3 2 7 R E V I E W S 87% 9%2%2%ON TIME ONE DAY TWO DAYS MORE THAN TWO DAYS 2014 63% = D‐ 2015 76% = C+ 2016 84% = B 2017 87% = B+ DESIGN AND DEVELOPMENT COMBINED 3 3 6 1 R E V I E W S 4/4/2018 24 DEVELOPMENT WIND UP 2018 ENGINEERING SILVERROCK CLUBHOUSE PGA WEST SPORT CLUB ANDALUSIA VILLAGE WASHINGTON STREET APT. BUILDING PERMITS SILVERROCK CONTOUR DERMATOLOGY GRIFFIN RANCH MONTERRA ANDALUSIA CODORNIZ EL POLLO LOCO MADISON CLUB HIDEAWAY TRADITION CLUB QUARRY ENTITLEMENT TRAVERTINE PAVILION PALMS CENTRE AT LA QUINTA HOTEL AT JEFFERSON SQUARE BUSINESS LICENSE/STVRP 3.700 LICENSES 2,200 STVR REGISTRANTS LA QUINTA ARTS FESTIVAL ARTS UNDER THE UMBRELLA OLD TOWN FARMER’S MARKET FRIDAY NIGHT LIGHTS COACHELLA FESTIVAL STAGECOACH FESTIVAL 4/4/2018 25 City Council Meeting April 3, 2018 S4 – Reserve Policy Analysis Report Where We Left Off? •Presented the process •Scope of the analysis  •Current fund balance descriptions & balances •Proposed reserve/trust categories •Presented initial recommendations  4/4/2018 26 Recommendations •Follow current guiding principles •Maintain 10‐year Long Range Financial Plan •Two components of Emergency Reserves – Economic and Natural Disasters •Add economic downturn definition to allow  access to reserves Recommendations  •Cash flow reserve based on annual revenue  and expenditure review •Establish Capital Replacement Fund •Establish trust for unfunded pension liability •Utilize unassigned reserves to fund  recommendations 4/4/2018 27 Natural Disaster Reserve  •Update asset inventory & values  –Undervalued or Missing  •Thorough risk‐versus‐cost analysis  –Likelihood of full or partial destruction  –Importance of the asset to City functions  –Cost of coverage at various percentage  levels Summary of All City Assets Natural Disaster  Reserve % of  City Coverage Asset  Estimated  Replacement  Value  FEMA/State City Coverage 14 Parks 19,966,204     18,718,316           1,247,888             623,944                 50% 94% 6%   12 City Buildings 60,322,936     1,678,125             111,875                111,875                 100% 3% 0.19%  SilverRock  6,317,571        3,651,397             243,426                121,713                 50% 58% 4%  Streets, Signals,  266,775,219   248,557,904         16,570,527          8,285,263             50% Signs, Landscaping 93% 6%  Fleet Vehicles 693,182           ‐                         693,182                693,182                 100% 100%  Housing Assets 12,059,000     6,431,250             428,750                428,750                 100% 53% 4%  TOTALS 366,134,112  279,036,992        19,295,648          10,264,728            Percentage of Total Value 76% 5% 3% Estimated Replacement Costs  Funding Sources 4/4/2018 28 Summary of Recommendations Reserve/Trust Reserve Target Current Funding Over/(Under) Funded Annual Target Emergency Reserve Natural Disaster 10,000,000 16,534,000 6,534,000 1,500,000 Economic Disaster 11,000,000 - (11,000,000) 1,000,000 Total 21,000,000 16,534,000 (4,466,000) 2,500,000 Cash Flow Reserve 5,000,000 4,134,000 (866,000) - Capital Replacement 10,000,000 - (10,000,000) 1,000,000 Total Reserves 36,000,000 20,668,000 (15,332,000) 3,500,000 Pension Trust Fund 10,000,000 - (10,000,000) 1,000,000 Unassigned Reserves - 14,865,926 14,865,926 - Overall Total 46,000,000 35,533,926 (10,466,074) 4,500,000 Next Steps Write Write a Reserve Policy for formal adoption Decide Decide reserve funding options (Attachment 3) Decide Decide the allocation method (Attachment 2) • % based to analytics based  Decide Decide on reserve categories (Attachment 2) •From 2 to 5 4/4/2018 29 Reserve Categories  Natural Disaster – fire, flood,  earthquake, extreme peril to safety  Exists as  Emergency  Reserve Economic Disaster – revenue declines or  expense spikes  New Cash Flow Reserve – cash imbalances Exists  Capital Replacement –matching CIP  funds, supplement grant funds  New Pension Trust Fund – unfunded pension  obligations  New Allocation Method CURRENT ALTERNATIVE Natural  Disaster 40% of budget $16,534,000 Asset Study every 5 years $10,000,000 Economic  Disaster New 10 year revenue/expense $11,000,000 Cash Flow  10% of budget  $4,134,000 Prior year cash activity $5,000,000 Capital  Replace. New Annual depreciation  $10,000,000 Pension  Trust New Unfunded pension Liab.  $10,000,000 4/4/2018 30 Summary of Funding Options  •Use $4M of unassigned as one‐time funding •Allocate any new unassigned reserves in 20%  increments at the five reserve categories •Allocate Measure G revenue to Capital  Replacement Reserve •Allocate annual salary & benefits savings to the  Pension Trust  Funding Option – One‐Time  •$4M of unassigned as one‐time funding 4/4/2018 31 Funding Option ‐ Ongoing  •Allocate any new unassigned reserves in 20%  increments to the five reserve categories Funding Option – Natural Disaster •Fully funded •Allocate overage to Economic Disaster 4/4/2018 32 Funding Option – Economic Disaster •One‐time $6,534,000 and $1M •20% of unassigned  Unfunded Funding Option – Cash Flow •One‐time $866,000 4/4/2018 33 Funding Option – Capital Replacement   •Allocate Measure G revenue  •Allocate annual CIP savings  •20% of unassigned Funding Option – Pension Trust  •Allocate annual salary & benefits  savings to the Pension Trust  •20% of unassigned  4/4/2018 34 Funding Option ‐ Unassigned •20% of unassigned  Current       After use of                      Annual Allocations $4M Discussion, Questions,  & Direction 4/4/2018 35