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CITY COUNCIL
AGENDA
CITY HALL COUNCIL CHAMBERS
78-495 Calle Tampico, La Quinta
REGULAR MEETING ON TUESDAY, JUNE 17, 2014
3:00 P.M. CLOSED SESSION | 4:00 P.M. OPEN SESSION
CALL TO ORDER
ROLL CALL: Councilmembers: Evans, Franklin, Henderson, Osborne, Mayor Adolph
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. Okd`rd bnlokdsd ` !qdptdrs sn rod`j! enql `mc khlhs xntq bnlldmsr sn
sgqdd lhmtsdr- 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).
CLOSED SESSION
1.PUBLIC EMPLOYEE PERFORMANCE EVALUATION, PURSUANT TO
GOVERNMENT CODE SECTION 54957, COUNCIL APPOINTED POSITION
CITY MANAGER
2.CONFERENCE WITH LABOR NEGOTIATOR, TERRY DEERINGER, REGARDING
NEGOTIATIONS WITH THE LA QUINTA CITY EMPLOYEES ASSOCIATION
PURSUANT TO GOVERNMENT CODE SECTION 54957.6 MEET AND
CONFER PROCESS
QDBDRR SN BKNRDC RDRRHNM
RECONVENE AT 4:00 P.M.
CITY COUNCIL AGENDA 1
JUNE 17, 2014
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. Okd`rd bnlokdsd ` !qdptdrs sn rod`j! enql `mc khlhs xntq bnlldmsr sn
sgqdd lhmtsdr- 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
ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS
NONE
CONSENT CALENDAR
NOTE: Consent Calendar items are routine in nature and can be approved by one motion.
PAGE
1.APPROVE MINUTES OF JUNE 3, 2014 7
2.APPROVE DEMAND REGISTER DATED JUNE 17, 2014 17
3.APPROVE INVESTMENT ADVISORY BOARD WORK PLAN FOR 31
FISCAL YEAR 2014/2015
4.ADOPT RESOLUTION TO EXTEND TIME TO COMPLETE ON-SITE 33
AND OFF-SITE IMPROVEMENTS FOR PARCEL MAP NO. 33954
\]
\[RESOLUTION 2014-025
5.ADOPT RESOLUTION TO REAFFIRM ADOPTION OF ANNUAL 41
ASSESSMENT FOR COUNTY SERVICE AREA 152, AUTHORIZE
RIVERSIDE COUNTY TO CONTINUE TO LEVY ASSESSMENTS,
AND INDEMNIFY AND HOLD THE COUNTY HARMLESS FOR
LEVYING ASSESSMENTS ON CITY PARCELS
\[RESOLUTION 2014-
\]
026
6.ADOPT A RESOLUTION APPROVING THE SUBORDINATION OF 47
THE STATUTORY PASS-THROUGH PAYMENTS DUE TO THE CITY
OF LA QUINTA FROM THE SUCCESSOR AGENCY FOR THE
COUNTY OF RIVERSIDE
\[RESOLUTION 2014-027\]
7.APPROVE OVERNIGHT TRAVEL FOR ONE COUNCILMEMBER AND 57
CITY CLERK TO ATTEND THE QUARTERLY LEAGUE OF
CALIFORNIA CITIES POLICY COMMITTEE MEETINGS IN
SACRAMENTO, CALIFORNIA JUNE 18-19, 2014
CITY COUNCIL AGENDA 2
JUNE 17, 2014
PAGE
8.59
JUNE 4, 2014 ARCHITECTURAL AND LANDSCAPING REVIEW
BOARD MEETING
9.APPROVE A CONTRACT EXTENSION WITH VINTAGE 61
ASSOCIATES FOR PARK LANDSCAPE MAINTENANCE FOR
FISCAL YEAR 2014/2015
10.APPROVE A PROFESSIONAL SERVICES AGREEMENT WITH JNS 65
MEDIA FOR MARKETING SERVICES
11.S DATED FEBRUARY 91
28, 2014 AND MARCH 31, 2014
12.RECEIVE AND FILE REVENUE AND EXPENDITURE REPORTS 103
DATED FEBRUARY 28, 2014 AND MARCH 31, 2014
13.APPROVE A CONTRACT SERVICES AGREEMENT WITH THE LA 117
QUINTA CHAMBER OF COMMERCE
14.APPROVE A CONTRACT SERVICES AGREEMENT WITH THE LA 137
QUINTA ARTS FOUNDATION
15.APPROVE PROFESSIONAL SERVICES AGREEMENT WITH BENGAL 167
ENGINEERING TO PROVIDE ENGINEERING SERVICES FOR DUNE
PALMS ROAD BRIDGE IMPROVEMENTS
16.ADOPT A RESOLUTION APPROVING THE INVESTMENT POLICY 180
OF THE CITY OF LA QUINTA FOR FISCAL YEAR 2014/2015
\[RESOLUTION 2014-028\]
17.APPROVE A PROFESSIONAL SERVICES AGREEMENT WITH 307
TERRA NOVA PLANNING AND RESEARCH INC. FOR PLANNING
AND ENVIRONMENTAL SERVICES
18.APPROVE 331
AUTHORIZE STAFF TO OBTAIN BIDS FOR PHASE 1 OF LA
QUINTA MUSEUM AMERICANS WITH DISABILITIES ACT PUBLIC
FACILITY IMPROVEMENTS PROJECT
CITY COUNCIL AGENDA 3
JUNE 17, 2014
BUSINESS SESSION
PAGE
1.ADOPT RESOLUTION TO APPROVE FISCAL YEAR 2014/2015 333
BUDGET AND ESTABLISH
\]
\[RESOLUTION 2014-029
2.INTERVIEWS AND APPOINTMENTS OF RESIDENTS TO 347
VARIOUS CITY BOARDS AND COMMISSIONS
3.349
ESTIMATE AND ADVERTISE FOR BID PHASE II OF THE
SILVERROCK GOLF COURSE RESTORATION PROJECT
4.APPOINT VOTING DELEGATE AND ALTERNATE TO THE 2014 359
LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE
STUDY SESSION - NONE
REPORTS AND INFORMATIONAL ITEMS
1.CVAG CONSERVATION COMMISSION
(Evans)
2.CVAG ENERGY & ENVIRONMENTAL RESOURCES COMMITTEE
(Evans)
3.GREATER PALM SPRINGS CONVENTION & VISITORS BUREAU
(Evans)
4.ANIMAL CAMPUS COMMISSION
(Franklin)
5.CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
(Franklin)
6.CHAMBER OF COMMERCE INFO EXCHANGE COMMITTEE
(Franklin)
7.COACHELLA VALLEY ECONOMIC PARTNERSHIP
(Franklin)
8.COACHELLA VALLEY MOUNTAINS CONSERVANCY
(Franklin)
9.JACQUELINE COCHRAN REGIONAL AIRPORT AUTHORITY
(Franklin)
10.CVAG PUBLIC SAFETY COMMITTEE
(Henderson)
11.CVAG TRANSPORTATION COMMITTEE
(Henderson)
12.LEAGUE OF CALIFORNIA CITIES DELEGATE
(Henderson)
13.RIVERSIDE COUNTY TRANSPORTATION COMMISSION
(Henderson)
14.CVAG VALLEY-WIDE HOMELESSNESS COMMITTEE
(Osborne)
15.DESERT SANDS UNIFIED SCHOOL DISTRICT COMMITTEE
(Osborne & Franklin)
16.
(Osborne)
17.COACHELLA VALLEY WATER DISTRICT JOINT POLICY COMMITTEE
(Adolph)
18.CVAG EXECUTIVE COMMITTEE
(Adolph)
19.SO. CALIFORNIA ASSOCIATION OF GOVERNMENTS DELEGATE
(Adolph)
CITY COUNCIL AGENDA 4
JUNE 17, 2014
20.SUNLINE TRANSIT AGENCY
(Adolph) PAGE
21.PALM SPRINGS AIRPORT COMMISSION REPORT 365
DEPARTMENTAL REPORTS
1.CITY MANAGER 367
2.CITY ATTORNEY
3.CITY CLERK UPCOMING EVENTS AND CITY CALENDAR 369
4.COMMUNITY SERVICES REPORT MAY 2014 373
5.PUBLIC WORKS REPORT MAY 2014 381
PUBLIC HEARINGS NONE
ADJOURNMENT
*********************************
The next regular meeting of the City Council will be held on July 1, 2014,
commencing with closed session at 3:00 p.m. and open session at 4:00 p.m. at
the City Hall Council Chambers, 78-495 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
website, near the entrance to the Council Chambers at 78-495 Calle Tampico, and
the bulletin boards at the Stater Brothers Supermarket at 78-630 Highway 111,
and the La Quinta Cove Post Office at 51-321 Avenida Bermudas, on June 13,
2014.
DATED: June 13, 2014
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
777-7103, twenty-four (24) hours in advance of the meeting and accommodations
will be made.
CITY COUNCIL AGENDA 5
JUNE 17, 2014
If special electronic equipment is needed to make presentations to the City Council,
arrangements should be made in advance by contacting the City
777-7103. A one (1) week notice is required.
If background material is to be presented to the Councilmembers during a City
Council meeting, please be advised that eight (8) copies of all documents, exhibits,
etc., must be supplied to the City Clerk for distribution. It is requested that this
take place prior to the beginning of the meeting.
Any writings or documents provided to a majority of the City Council regarding any
item(s) 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 AGENDA 6
JUNE 17, 2014
CONSENT:1
CITY COUNCIL
MINUTES
TUESDAY, JUNE 3, 2014
A regular meeting of the La Quinta City Council was called to order at 3:03 p.m. by
Mayor Adolph.
PRESENT: Councilmembers Franklin, Henderson, Osborne, Mayor Adolph
ABSENT: Councilmember Evans
\[arrived at 3:05 p.m.\]
MOTION A motion was made and seconded by Councilmembers Henderson/Franklin
to excuse the absence of Councilmember Evans.
COUNCILMEMBER EVANS JOINED THE MEETING AT 3:05 P.M.
PUBLIC COMMENT ON MATTERS NOT ON AGENDA
None
CLOSED SESSION
1. CONFERENCE WITH CITY ATTORNEY, ANTICIPATED LITIGATION,
INITIATION OF LITIGATION PURSUANT TO GOVERNMENT CODE SECTION
54956.9 (c) (1 MATTER)
2. PUBLIC EMPLOYEE PERFORMANCE EVALUATION, PURSUANT TO
GOVERNMENT CODE SECTION 54957, COUNCIL APPOINTED POSITION
CITY ATTORNEY
3. PUBLIC EMPLOYEE PERFORMANCE EVALUATION, PURSUANT TO
GOVERNMENT CODE SECTION 54957, COUNCIL APPOINTED POSITION
CITY MANAGER
4.
J. SPEVACEK, PURSUANT TO GOVERNMENT CODE SECTION 54956.8
CONCERNING THE POTENTIAL TERMS AND CONDITIONS OF
ACQUISITION AND/OR DISPOSITION OF REAL PROPERTY LOCATED AT
-200-026; 776-150-021; 776-150-023; 770-
060-056; 770-060-057; 770-060-058; 770-060-059; 770-060-061; 770-060-062;
777-490-004; 777-490-006; 777-490-007; 777-490-012 AND 777-490-014).
PROPERTY NEGOTIATORS: JOHN GAMLIN, MERIWETHER COMPANIES;
ROBERT S. GREEN, JR., THE ROBERT GREEN COMPANY
COUNCIL RECESSED TO CLOSED SESSION AT 3:05P.M.
CITY COUNCIL MINUTES 1
JUNE 3, 2014
7
MAYOR ADOLPH RECONVENED THE CITY COUNCIL MEETING AT 4:00 P.M. WITH
ALL MEMBERS PRESENT.
City Attorney Jenson reported that the City Council took action on Closed Session Item
No. 1 and the resulting settlement agreement will be available to the public from the City
MOTION A motion was made and seconded by Councilmembers Osborne/Franklin to
approve the Completion and Settlement Agreement with Bond Safeguard Insurance
Company regarding a dispute over the enforcement of the Subdivision Improvement
Agreement for Tract Map 31852, subject to minor changes approved by the City
Manager and City Attorney. Motion passed unanimously.
Mayor Adolph led the audience in the pledge of allegiance.
PUBLIC COMMENT ON MATTERS NOT ON AGENDA
PUBLIC SPEAKER: Christopher English, La Quinta Mr. English spoke about the
Street/Calle
Tampico site. He asked Council to communicate with the company and take action to
keep the store in place.
soon as possible.
PUBLIC SPEAKER: Sheila Clemens, La Quinta Ms. Clemens said she does not want
the closing of the
PUBLIC SPEAKER: Thomas Allen Worthy Mr. Worthy said he is homeless and
applied for housing to Coral Mountain Apartments. Mr. Worthy also spoke about his
litigation against Eisenhower Medical Center.
PUBLIC SPEAKER: Samantha Hoffman, La Quinta Ms. Hoffman spoke in favor of
open - 576-4377
or on Ralphs.com.
CONFIRMATION OF AGENDA
City Manager Spevacek requested that Consent Calendar Item No. 2 be moved to
the June 17, 2014 agenda.
Councilmember Osborne requested that Consent Calendar Item No. 8 be pulled for
discussion and separate vote.
Councilmember Henderson requested that Consent Calendar Item No. 13 be moved
to Business Session Item No. 4 for discussion.
Council concurred.
CITY COUNCIL MINUTES 2
JUNE 3, 2014
8
ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS
COACHELLA VALLEY ECONOMIC PARTNERSHIP PRESENTATION
1.
Thomas Flavin, CEO/President of the Coachella Valley Economic Partnership (CVEP),
provided an update on programs supported by the City of La Quinta including college
scholarship awards, career pathways program, business development business
training, and the East Valley Innovation Hub.
Councilmember Franklin requested more information and clarification regarding plans
for a parcel tax through the school districts to provide ongoing funding to CVEP for the
Workforce Jobs Pipeline project; the Federal planning grant received, and; the Federal
grant CVEP will apply for in the fall.
LIBRARY & MUSEUM QUARTERLY REPORT FOR JANUARY MARCH 2014
2.
Sherry Martinez, Desert Zone Manager, presented the report for the library and Anne
Phillips, Museum Manager presented the report for the museum; both of which are on
e.
PRESENTATION TO RETIRING BUILDING OFFICIAL AND EMERGENCY
3.
MANAGER
Mayor Adolph and Councilmembers presented a plaque to retiring Building Official/
Emergency Manager Greg Butler in appreciation of more than seventeen years of
service to the City of La Quinta.
CONSENT CALENDAR
1. APPROVE MINUTES OF MAY 20, 2014
2.
pulled by the City Manager and rescheduled for the June 17, 2014 Council
APPROVE CONTRACT EXTENSION WITH VINTAGE
meeting >>>
ASSOCIATES FOR PARK LANDSCAPE MAINTENANCE SERVICES FOR
FISCAL YEAR 2014/2015
3. ADOPT RESOLUTIONS (A) CALLING AND GIVING NOTICE OF THE
HOLDING OF A GENERAL MUNICIPAL ELECTION ON TUESDAY,
NOVEMBER 4, 2014 AND (B) REQUESTING THE COUNTY CONSOLIDATE
THE NOVEMBER 4, 2014 MUNICIPAL ELECTION WITH THE STATEWIDE
GENERAL ELECTION
\[RESOLUTIONS 2014-019 AND 2014-020\]
4. APPROVE THE REDUCTION OF REGULAR CITY COUNCIL MEETINGS TO
ONE PER MONTH DURING AUGUST AND SEPTEMBER, 2014 BY
CANCELLING THE REGULAR MEETINGS OF AUGUST 19 AND
SEPTEMBER 2, 2014
CITY COUNCIL MINUTES 3
JUNE 3, 2014
9
5. DENIAL OF CLAIM FOR DAMAGES FILED BY: DAVID PLOUFFE; DATE OF
LOSS NOVEMBER 16, 2013
6. APPROVE AMENDMENT AND CONTRACT CHANGE ORDER WITH
KIRKPATRICK LANDSCAPING SERVICES, INC. FOR CITYWIDE
LANDSCAPE MAINTENANCE
7. APPROVE AMENDMENT TO CONTRACT WITH A.M. LASALLE ELECTRIC,
INC., FOR LANDSCAPE LIGHTING MAINTENANCE SERVICES
8. pulled for discussion and separate vote by Councilmember Osborne >>>
APPROVE COMMUNITY SERVICES COMMISSION WORK PLAN FOR
FISCAL YEAR 2014/2015
9. APPROVE PROFESSIONAL SERVICES AGREEMENT WITH GRAPHTEK
INTERACTIVE FOR DIGITAL MARKETING SERVICES
10. ACCEPT CITY HALL LIGHTING CONVERSION PROJECT
11. ACCEPT PREVENTATIVE MAINTENANCE PROJECT: REPLACEMENT OF
CITY HALL BUILDING HEATING, VENTILATION AND AIR CONDITIONING
SYSTEMS 1 AND 2
12. AUTHORIZE CITY MANAGER TO SUBMIT GRANT APPLICATION TO
EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM
AND ACCEPT FUNDS
13.
Pulled by Councilmember Henderson and moved to the Business Session >>>
APPROVE A REQUEST FOR PROPOSALS TO OBTAIN PROFESSIONAL
LANDSCAPE ARCHITECTURAL SERVICES FOR NORTH LA QUINTA
PARKWAYS AND ENTRYWAYS LANDSCAPE CONVERSION PROJECT
14. AUTHORIZE CITY MANAGER TO SUBMIT A GRANT APPLICATION TO
TRILOGY AT LA QUINTA COMMUNITY SERVICES ORGANIZATION FOR A
NEW CITIZENS ON PATROL VEHICLE
15. APPROVE DEMAND REGISTER DATED JUNE 3, 2014
16. APPROVE MUNICIPAL STORMWATER IMPLEMENTATION AND COST
SHARING AGREEMENT WITH RIVERSIDE COUNTY FLOOD CONTROL AND
WATER CONSERVATION DISTRICT
MOTION A motion was made and seconded by Councilmembers Evans/Franklin to
approve Consent Calendar Item Nos. 1, 3-7, 9-12, and 14-16 with Item No. 3 adopting
Resolutions 2014-019 and 2014-020 as recommended. Motion passed unanimously.
CITY COUNCIL MINUTES 4
JUNE 3, 2014
10
Item No. 8APPROVE COMMUNITY SERVICES COMMISSION WORK PLAN FOR
FISCAL YEAR 2014/2015
MOTION A motion was made and seconded by Councilmembers Osborne/Evans to
approve the Consent Calendar Item No. 8 with the addition of the review of Pillars of the
Community submissions. Motion passed unanimously.
BUSINESS SESSION
1. SELECT A REPRESENTATIVE TO THE CHAMBER OF COMMERCE
WORKSHOP/INFORMATION EXCHANGE COMMITTEE
Community Services Director Hylton presented the staff report, which is on file in the
MOTION A motion was made and seconded by Councilmembers Evans/ Henderson
to select Councilmember Franklin to the Chamber of Commerce Workshop/Information
Exchange Committee. Councilmember Franklin accepted the appointment. Motion
passed unanimously.
2. ADOPT RESOLUTIONS APPROVING A MAJOR REVISION TO THE
COACHELLA VALLEY MULTIPLE SPECIES HABITAT CONSERVATION
PLAN
\[RESOLUTIONS 2014-021 AND 2014-022\]
Community Development Director Johnson presented the staff report, which is on file in
ice.
MOTION A motion was made and seconded by Councilmembers Evans/Henderson to
adopt Resolutions 2014-021 and 2014-022 approving a major revision to the Coachella
Valley Multiple Species Habitat Conservation Plan. Motion passed unanimously.
3. APPROVE
Chris Escobedo, Assistant to City Manager, and Intern Nick Herr-Kostic presented the
staff report.
MOTION A motion was made and seconded by Councilmembers Evans/Henderson to
4.APPROVE A REQUEST FOR PROPOSALS TO
Consent Calendar No. 13:
OBTAIN PROFESSIONAL LANDSCAPE ARCHITECTURAL SERVICES FOR
NORTH LA QUINTA PARKWAYS AND ENTRYWAYS LANDSCAPE
CONVERSION PROJECT
Councilmember Henderson said it appears from the staff report that the problem on the
north side is solved when in fact, it is not. She suggested that approval is premature
CITY COUNCIL MINUTES 5
JUNE 3, 2014
11
and could be misleading to the community. Ms. Henderson requested that action on
this item be postponed until after the tax measure is on the ballot thereby giving Council
greater flexibility for solutions.
Councilmember Evans said that developing the landscape concepts does not make the
project a done deal because a funding source would still need to be identified. A
landscape design would provide more information on what is required.
MOTION A motion was made and seconded by Councilmembers Henderson/
Osborne to delay action on this item until after the tax measure is on the ballot. Motion
passed: ayes 4, no 1 (Evans).
MAYOR ADOLPH CALLED A SHORT RECESS AT 5:20 P.M.
MAYOR ADOLPH RECONVENED THE CITY COUNCIL MEETING AT 5:29 P.M.
STUDY SESSION
1. CONTINUED DISCUSSION ON FISCAL YEAR 2014/15 PROPOSED BUDGET
Office.
Councilmembers received clarification from staff on supplemental requests; information
technology reserves; audit expenses; park needs; promotion of Adopt-a-Park program;
marketing funds throughout the budget; Community Development Department
personnel benefits; water cost increases; East Valley iHub funding; CVEP funding; grant
program funding for various groups; emergency services budget reduction; SilverRock
Resort budget; cost of public notices and advertising; police budget increases; council
meeting videos; an insurance reserve fund; cash flow reserve; and fund balance.
The Council gave staff the following direction regarding the 2014/15 draft budget and
the allocation of the estimated surplus of $476,494:
Include the supplemental requests in the amount of $48,140
Increase marketing by $100,000 and label it economic development/marketing
Increase the grants budget by $20,000
Add funding for homeless programs in the amount of $50,000
Establish an insurance reserve fund with $100,000 if possible
Set aside funds for labor relations in the amount of $120,000
Reduce CVEP funding by $40,000
Allocate to reserves: 25% of the beginning surplus = $119,000
Change the label for the $500 Wheeler Letter to demographic publications
Promote La Quinta as a movie location
Allow special conditions in the grant program that permit grants to exceed $5,000
Include in final budget, a section showing reserve fund balances
CITY COUNCIL MINUTES 6
JUNE 3, 2014
12
PUBLIC SPEAKER: Janet Seto, Principal of La Quinta Middle School Ms. Seto said
that the grant information requested by Council has been submitted and asked Council
to consider funding the Middle School programs described at the last Council meeting.
MAYOR ADOLPH RECESSED THE CITY COUNCIL MEETING AT 6:46 P.M.
MAYOR ADOLPH RECONVENED THE CITY COUNCIL MEETING AT 7:12 P.M.
PUBLIC SPEAKER: Dave Heckman, La Quinta Mr. Heckman said that the tax on
landlords he suggested at the last Council meeting may be more accurately categorized
as a fee but it would serve the purpose of increasing code enforcement.
City Manager Spevacek explained that revenue from such a fee would have to be
dedicated to enforcement of landlord-renter matters, not code enforcement in general.
PUBLIC COMMENT ON MATTERS NOT ON AGENDA
PUBLIC SPEAKER: Catherine Goodsell, La Quinta Ms. Goodsell spoke in opposition
to the closing of the Ralph
PUBLIC SPEAKER: Mark Jucht, La Quinta Mr. Jucht, who lives on Roadrunner Lane,
expressed his opposition to the addition of a roundabout at Westward Ho and
Roadrunner.
PUBLIC SPEAKER: Reneé Jucht, La Quinta Ms. Jucht said she lives on Roadrunner
Lane and is opposed to a roundabout at Westward Ho and Roadrunner.
PUBLIC SPEAKER: Christopher English, La Quinta Mr. English said he is opposed to
store at Washington Street and Calle Tampico.
PUBLIC SPEAKER: Eileen Kramer Ms. Kramer said she is opposed to the closing of
store.
2. DISCUSS A SALES TAX SHARING AGREEMENT WITH MICHAEL SHOVLIN
FOR CERTAIN IMPROVEMENTS ASSOCIATED WITH 111 LA QUINTA CENTER
Community Development Director Johnson presented the staff report, which is on file in
The Council discussed the 50%-50% tax share arrangement; the importance of the new
traffic signal; the need to expedite the opening of the Hobby Lobby tenant; the need to
address turns in and out from Adams Street to the centers on either side; and access
points for the CVlink project.
The Council directed staff to move forward with the 50%-50% tax sharing agreement
provided there is a time limit imposed on recouping the $400,000 in improvements and
also provided a specific list and schedule of improvements is included.
CITY COUNCIL MINUTES 7
JUNE 3, 2014
13
PUBLIC HEARINGS
1.ADOPT RESOLUTION CONFIRMING THE DIAGRAM AND ASSESSMENT FOR
LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT 89-1, FISCAL YEAR
2014/2015
\[RESOLUTION 2014-023\]
Public Works Director Jonasson presented the staff report, which is on file in the City
Mayor Adolph declared the PUBLIC HEARING OPEN at 7:25 p.m.
PUBLIC SPEAKER: None
Mayor Adolph declared the PUBLIC HEARING CLOSED at 7:26 p.m.
MOTION A motion was made and seconded by Councilmembers Evans/Franklin to
adopt Resolution No. 2014-023 entitled:
ADOPT RESOLUTION CONFIRMING THE DIAGRAM AND ASSESSMENT
FOR LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT 89-1,
FISCAL YEAR 2014/2015
Motion passed unanimously.
2.ADOPT RESOLUTION FOR FISCAL YEAR 2014/2015 THROUGH 2017/2018
CAPITAL IMPROVEMENT PROGRAM
\[RESOLUTION 2014-024\]
Principal Engineer McKinney presented the staff report, which is on file in the City
Mayor Adolph declared the PUBLIC HEARING OPEN at 7:45 p.m.
PUBLIC SPEAKER: Mark Riconoscinto, La Quinta Mr. Riconoscinto owns a home on
Roadrunner Lane and spoke against the addition of a roundabout on Westward Ho.
Mayor Adolph declared the PUBLIC HEARING CLOSED at 7:50 p.m.
MOTION A motion was made and seconded by Councilmembers Evans/Henderson to
adopt Resolution 2014-024 with Project No. 201406, the new roundabout at Westward
Ho and Roadrunner Lane removed from Exhibit A.
ADOPT A RESOLUTION APPROVING FISCAL YEAR 2014/2015
THROUGH 2017/2018 CAPITAL IMPROVEMENT PROGRAM
Motion passed unanimously.
REPORTS AND INFORMATIONAL ITEMS
participation in the following organizations meeting:
GREATER PALM SPRINGS CONVENTION & VISITORS BUREAU
CITY COUNCIL MINUTES 8
JUNE 3, 2014
14
ve for 2014, Councilmember Franklin reported on her
participation in the following organizations meeting:
COACHELLA VALLEY ECONOMIC PARTNERSHIP
ve for 2014, Councilmember Henderson reported on her
participation in the following organizations meeting:
LEAGUE OF CALIFORNIA CITIES POLICY COMMITTEE
ve for 2014, Councilmember Osborne reported on his
participation in the following organizations meeting:
CVAG VALLEY-WIDE HOMELESSNESS COMMITTEE
ve for 2014, Mayor Adolph reported on his participation in the
following organizations meeting:
CVAG EXECUTIVE COMMITTEE
SUNLINE TRANSIT AGENCY
DEPARTMENT REPORTS
Community Development Department report was received and filed. Copies are
Councilmember Osborne noted that the net for the SilverRock operation was $86,000
above projections as of April 2014.
Mayor Adolph discussed the letter from a Realtor who commented on the quality of La
Quinta schools and his response to the Realtor when they met.
Mayor Adolph said he received a request from a local teacher and parent for way-
finding signs for the schools and suggested the c
signs be changed to include the schools. Councilmember Evans suggested that this
matter be discussed at the next 2x2 meeting between the City and school officials with
the offer that the city will install the sign and the school will pay for it. Council concurred
to add this matter to the next 2x2 agenda.
MOTION A motion was made and seconded by Councilmembers Evans/Osborne to
pull Closed Session Item No. 3 and reschedule to June 17, 2014. Motion passed
unanimously.
CITY COUNCIL MINUTES 9
JUNE 3, 2014
15
ADJOURNMENT
There being no further business, a motion was made and seconded by
Councilmembers Evans/Henderson to adjourn at 8:47 p.m. Motion passed
unanimously.
Respectfully submitted,
SUSAN MAYSELS, City Clerk
City of La Quinta, California
CITY COUNCIL MINUTES 10
JUNE 3, 2014
16
June 17, 2014 AGENDA CATEGORY:
CITY / SA / HA / FA MEETING DATE:
APPROVEDEMAND REGISTER DATED
ITEM TITLE:
BUSINESS SESSION:
JUNE 17, 2014
CONSENT CALENDAR:
2
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Approve Demand Register dated June 17, 2014.
EXECUTIVE SUMMARY:
None.
FISCAL IMPACT:
Demand of Cash: -- City $ 2,008,412.00
-- Successor Agency of RDA $ 0.00
-- Housing Authority $ 0.00
-- Housing Authority Commission $ 0.00
BACKGROUND/ANALYSIS:
Between City Council meetings, there is a need to pay routine bills in order to avoid
late fees being charged to the City, as well as payroll and related payroll taxes. These
items are listed below:
Warrants Issued:
103335 - 103391} $ 103,377.54
103392 - 103455} $ 182,776.50
Voids} $ 0.00
Wire Transfers} $ 1,448,747.75
P/R 36977 - 36982} $ 180,941.79
P/R Tax Transfers} $ 92,568.42
$ 2,008,412.00
17
The most significant expenditures being paid on the demand registers listed above are
as follows:
Significant Items on Demand Register (over $20,000):
Vendor: Account Name: Amount: Purpose:
Vintage Associates Various $ 41,092.00 May-Landscape Maint.
Desert Sands Unified School Officer $ 31,005.71 School Officer
12/12/13-2/5/14
Dell Financial Services Machinery $ 25,203.75 Lease 5/1/144/30/15
Imperial Irrigation Dist. Various $ 21,165.79 Electricity Service
CV Water District Various $ 20,138.62 Water Service
Of the $1,448,747.75 in wire transfers (see Attachment 1), $1,200,000 is for the
purchase of 5 Certificates of Deposits (CDs) at $240,000 each. The Investment
Advisory Board (IAB) directed the City Treasurer to utilize more CDs, with laddered
terms and matur
ALTERNATIVES:
The City Council may approve, partially approve or reject the Demand Register.
Report prepared by: Sandra Mancilla, Account Technician
Report approved for submission by: Rita Conrad, Finance Director
Attachments: 1. Wire transfers
2. Demand Register
18
19
20
21
22
23
24
25
26
27
28
29
30
June 17, 2014
AGENDA CATEGORY:
CITY / SA / HA / FA MEETING DATE:
APPROVE INVESTMENT ADVISORY
ITEM TITLE:
BUSINESS SESSION:
BOARD WORK PLAN FOR FISCAL YEAR 2014/2015
CONSENT CALENDAR:
3
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Approve the Investment Advisory Board Work Plan for Fiscal Year 2014/2015.
EXECUTIVE SUMMARY:
plans in order to provide an opportunity for potential modifications to the
existing plans.
The current work plan for the Investment Advisory Board (IAB) reflects the
five principal functions of the B Municipal Code.
The IAB has recommended the addition of one task for the 2014/15 Work
Plan, which is a complete analysis of two potential investment opportunities.
FISCAL IMPACT:
None.
BACKGROUND/ANALYSIS:
The five principal functions of the IAB are as follows:
Review at least annually the City's investment policy and recommend
appropriate changes.
31
Review monthly treasury report and note compliance with the investment
policy and adequacy of cash and investments for anticipated obligations.
Receive and consider other reports provided by the City Treasurer.
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.
Serve as a resource for the City Treasurer on matters such as proposed
investments, internal controls, use of change of financial institutions,
custodians, brokers and dealers.
Over the past three months, IAB has been meeting to review and discuss the
current Investment Policy in order to develop recommendations to the City Council
regarding potential revisions. During the course of these meetings, there was
discussion regarding adding two investment opportunities to the existing Policy -
specifically, the Investment Trust of California (CalTrust) and the Riverside County
Pooled Investment Fund. IAB concluded that further investigation of each
opportunity was warranted prior to
Investment Policy. Accordingly, at its May 14, 2014 meeting, IAB directed staff to
add as a sixth task, the following:
Investigate as potential investment opportunities the Investment
Trust of California (CalTrust) and the Riverside County Pooled
Investment Fund
ALTERNATIVES:
Council may choose not to add this sixth item to the work plan; however, its
addition does not bind the City to any agreements and only provides additional
information for the IAB to consider. Therefore, staff does not recommend an
alternative.
Report prepared by: Rita Conrad, Finance Director
Report approved for submission by: Frank J. Spevacek, City Manager
32
AGENDA CATEGORY:
June 17, 2014
CITY / SA / HA / FA MEETING DATE:
BUSINESS SESSION:
ADOPT RESOLUTION TO EXTEND TIME TO
ITEM TITLE:
CONSENT CALENDAR:
COMPLETE ON-SITE AND OFF-SITE IMPROVEMENTS
4
FOR PARCEL MAP NO. 33954
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Adopt a Resolution to extend the time for completion of the on-site and off-site
improvements as specified in the approved Subdivision Improvement Agreements for
Parcel Map No. 33954.
EXECUTIVE SUMMARY:
Final Parcel Map No. 33954, located north of Calle Amigo and east of Avenida
Bermudas (Attachment 1), was approved in 2007 for three live/work units.
The developer, Phoenix Row III, LLC, has requested City Council approval of a time
extension of the Subdivision Improvement Agreements to June 17, 2015 to complete
the off-site and on-site improvements.
On-site improvements are not necessary at this time and there have been no
requests for either on-site or off-site improvements.
FISCAL IMPACT:
None. Cash securities of sufficient value are currently in place to secure the incomplete
improvements.
BACKGROUND/ANALYSIS:
On November 20, 2007, the City Council approved Parcel Map No. 33954. In a letter dated
May 20, 2014, the developer requests an additional time extension due to adverse
economic conditions (Attachment 2). The off-site improvements include installing water
and sewer connections as well as constructing sidewalk along the project frontage on Calle
Amigo. Staff has received no requests regarding these off-site improvements and therefore
33
recommends approval of a one-year extension to the Subdivision Improvement
Agreements for this project.
ALTERNATIVES
:
Since no requests for the required improvements have been received, staff does not
recommend an alternative.
Report prepared by: Edward J. Wimmer, P.E., Principal Engineer
Report approved for submission by: Timothy R. Jonasson, P.E.
Public Works Director/City Engineer
Attachments: 1. Vicinity Map
2. Letter from Francis La Branche, Jr. of Phoenix Row III, LLC
34
RESOLUTION NO. 2014
-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF LA QUINTA, CALIFORNIA,GRANTING AN
EXTENSION OF TIME FOR THE COMPLETION OF THE
ON-SITE AND OFF-SITE IMPROVEMENTS AS SPECIFIED
IN THE SUBDIVISION IMPROVEMENT AGREEMENTS
UNTIL JUNE 17, 2015 FOR PARCEL MAP NO. 33954
WHEREAS
, the City Council approved the Subdivision Improvement Agreement
(SIA) for Parcel Map No. 33954 on June 12, 2008; and
WHEREAS
, Section 6. Completion of Improvements, of the approved SIA
requires that the developer begin construction of the improvements within ninety days
and complete the construction within twelve months after the approval of the
Agreement; and
WHEREAS
, failure by the developer to complete construction of the
improvements by June 12, 2014 shall constitute cause for the City, in its sole discretion
and when it deems necessary, to declare the Subdivider in default of the approved
agreement; and
WHEREAS
, Section 8. Time Extension, of the approved SIA allows for, at the
City Council’s sole and absolute discretion, an extension of time for completion of the
improvements with additions or revisions to the terms and conditions of the Agreement.
NOW, THEREFORE, BE IT RESOLVED
by the City Council of the City of La
Quinta, California, as follows:
SECTION 1. The time for the completion of the on-site and off-site improvements as
required by the approved SIAs is extended to June 17, 2015.
SECTION 2. The time extension for completing the improvements shall expire when
City offices close for regular business on June 17, 2015 if the installation of the
improvements has not been completed.
SECTION 3. The provided security amount as required in the approved SIA is
satisfactory. No additional securities are required.
SECTION 4. All other terms, responsibilities and conditions as listed in the approved
SIA shall remain in full force and effect.
35
Resolution No. 2014-
Parcel Map No. 33954
Adopted: June 17, 2014
Page 2
PASSED, APPROVEDADOPTED
and at a regular meeting of the La Quinta City
th
Council held on this 17 day of June 2014, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
DON ADOLPH, Mayor
City of La Quinta, California
ATTEST:
_____________________________________
SUSAN MAYSELS, City Clerk
City of La Quinta, California
(CITY SEAL)
APPROVED AS TO FORM:
_______________________________________
M. KATHERINE JENSON, City Attorney
City of La Quinta, California
36
ATTACHMENT 1
Parcel map no. 33954
V I C I N I T Y M A P
NOT TO SCALE
37
38
ATTACHMENT 2
39
40
AGENDA CATEGORY:
:
June 17,2014
CITY / SA / HA / FA MEETING DATE
BUSINESS SESSION:
ADOPT RESOLUTION TO REAFFIRM
ITEM TITLE:
ADOPTION OF ANNUAL ASSESSMENT FOR COUNTY
CONSENT CALENDAR:
5
SERVICE AREA 152, AUTHORIZE RIVERSIDE COUNTY
TO CONTINUE TO LEVY ASSESSMENTS, AND
STUDY SESSION:
INDEMNIFY AND HOLD THE COUNTY HARMLESS FOR
PUBLIC HEARING:
LEVYING ASSESSMENTS ON CITY PARCELS
RECOMMENDED ACTION:
Adopt a resolution to reaffirm adoption of the annual assessment for County Service Area
152 for Fiscal Year 2014/2015, authorize Riverside County to continue to levy
assessments, and indemnify and hold the County harmless for levying assessments on City
parcels.
EXECUTIVE SUMMARY:
The City has an agreement with Riverside County (“County”) wherein the County
assesses properties within the City for the maintenance and operations of street
sweeping, flood control, retention basin and other drainage activities within the City
in order to improve overall storm water quality.
These activities are required under the Clean Water Act and the National Pollutant
Discharge Elimination System Program.
Annually, the City Council must adopt a resolution authorizing the County to assess
City parcels and holding the County harmless for levying the assessments.
For Fiscal Year 2014/2015, the assessment rate per parcel will remain unchanged
from its original 1997 rate of $9.99 per Benefit Assessment Unit.
FISCAL IMPACT:
County Service Area (“CSA”) 152 assessments will generate approximately $285,000
during Fiscal Year 2014/2015, $100,000 of which is used to offset retention basin
maintenance in the City-wide lighting and landscape maintenance district.
41
BACKGROUND/ANALYSIS:
In 1991, the County enacted CSA 152 to provide funding for local jurisdictions to maintain
flood control and storm drain facilities. In 1994, the City joined CSA 152 and in 1997, the
City Council adopted a resolution approving the Benefit Assessment Unit rate of $9.99.
The City/County Agreement is available for review in the Public Works Department.
The recommended action continues the City’s participation in CSA 152 and authorizes the
County to levy and collect these assessments for Fiscal Year 2014/2015.
The City of Murrieta was investigating the potential of raising the levy amount. The City
Attorney spoke with the Deputy City Attorney for the City of Murrieta and found that any
levy amount above $9.99 (the maximum amount authorized by the County in 1991) must
comply with Proposition 218 requirements for assessment districts. At this time, the County
is not interested in increasing this assessment per the Proposition 218 requirements.
ALTERNATIVES:
The City will receive approximately $285,000 from the CSA 152 assessment, which helps
offset flood control and storm drain maintenance costs. Since this requires annual
affirmation of the requirements of CSA 152, staff does not recommend an alternative.
Report prepared by: Edward J. Wimmer, P.E., Principal Engineer
Report approved for submission by: Timothy R. Jonasson, P.E.
Public Works Director/City Engineer
42
RESOLUTION NO. 2014 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA QUINTA, CALIFORNIA, MAKING FINDINGS AND
REAFFIRMING THE ESTABLISHMENT AND SETTING OF
RATES FOR THE COUNTY SERVICE AREA 152 TO FUND
THE CITY’S STREET SWEEPING PROGRAM AND
OPERATE AND MAINTAIN THE CITY’S DRAINAGE AND
FLOOD CONTROL SYSTEMS
WHEREAS
, the Riverside County Service Area 152 (CSA 152) was created
under the Benefit Assessment Act of 1982 (Government Code Section 54702, et seq.),
which authorized local agencies to impose benefit assessments to finance the
maintenance and operation costs of flood control and drainage systems, based on the
proportionate storm water runoff from each parcel; and
WHEREAS
, under the federally-mandated but unfunded National Pollutant
Discharge Elimination System Program, the City is required to have a valid permit from
the Regional Water Quality Control Board to discharge water runoff from properties
within the boundaries of the City; and
WHEREAS
, street sweeping is a pro-active method of ensuring pro-active
maintenance from street runoff into the flood control and drainage systems of the City;
and
WHEREAS
, the City is a co-permittee of Permit No. CAS-617002 with the
Coachella Valley Water District, County of Riverside and the incorporated cities therein;
and
WHEREAS,
the City, by its Resolution No. 97-39, adopted on May 20, 1997,
authorized Riverside County to levy and establish a Benefit Assessment Unit rate for
the 1997-1998 Fiscal Year CSA 152 assessments; and
WHEREAS,
the City by its Resolution No. 97-39, adopted on May 20, 1997,
agreed to indemnify and hold the County harmless for levying Assessments on the City
parcels under CSA 152; and
WHEREAS,
the City uses revenues from CSA 152 assessments solely for the
purpose of maintaining and operating the City’s flood control and drainage system to
comply with the National Pollutant Discharge Elimination System Permit and to provide
street sweeping within the City of La Quinta; and
WHEREAS,
Proposition 218, adopted by voters on November 6, 1996,
established new procedures and approval requirements for all existing assessments,
unless the assessment is exempt from the new requirements; and
43
Resolution No. 2014-
CSA 152
Adopted: June 17, 2014
Page 2
WHEREAS,
certain assessments that existed on November 6, 1996, are
specifically exempt from the Proposition 218 procedures and approval requirements,
including assessments imposed exclusively to finance the capital costs and
maintenance and operation expenses for sidewalks, streets, sewers, water, flood
control, drainage systems or vector control.
NOW, THEREFORE, BE IT RESOLVED
by the City Council of the City of La
Quinta, California, as follows:
Section 1. The City Council finds the foregoing recitals to be true and correct.
Section 2. The City Council finds and declares that the City’s CSA 152 charges are
assessments within the definition of California Constitution Article XIIID, Section 2(b), in
that they confer special benefits upon each parcel of property subject to the
assessments.
Section 3. The City Council finds and declares that pursuant to Article XIIID, Section
5(a), the City’s CSA 152 assessments are exempt from the new procedures and
approval requirements of Article XIIID, Section 4, because the City’s CSA 152
assessments existed before November 6, 1996, and the assessments are imposed
exclusively to finance the capital costs and maintenance and operation expenses for
street sweeping, flood control, and drainage systems in the City.
Section 4. The City Council hereby reaffirms its adoption of the annual assessment
for CSA 152 and hereby determines that the annual assessment rate for Fiscal Year
2014/2015 for CSA 152 is to be set at nine dollars and ninety-nine cents ($9.99) per
Benefit Assessment Unit. The method of computation has not been changed nor has
the rate of assessment been increased since August 6, 1996.
Section 5. The City Council hereby authorizes the County of Riverside to levy
assessments under CSA 152 for the benefit of the City. The City agrees that it shall
indemnify, defend and hold County and members of its Board, and its officers,
employees and agents harmless from (1) any and all claims, demands, and causes of
action of any kind or nature whatsoever and (2) any and all liability of any kind or nature
whatsoever that may arise out of or be caused by, or be attributable to the imposition,
collection, or allocation of any tax (special or general), assessment fees or charges,
and/or any other revenue generated through City’s application of reliance on or use of
County Service Area 152.
44
Resolution No. 2014-
CSA 152
Adopted: June 17, 2014
Page 3
PASSED, APPROVEDADOPTED
and at a regular meeting of the La Quinta City
th
Council held on this 17 day of June 2014, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_____________________________
DON ADOLPH, Mayor
City of La Quinta, California
ATTEST:
_______________________________
SUSAN MAYSELS, CITY CLERK
City of La Quinta, California
(CITY SEAL)
APPROVED AS TO FORM:
_________________________________
M. KATHERINE JENSON, City Attorney
City of La Quinta, California
45
46
June 17, 2014
AGENDA CATEGORY:
CITY / SA/ HA/ FA MEETING DATE:
ADOPT A RESOLUTION APPROVING THE
ITEM TITLE:
BUSINESS SESSION:
SUBORDINATION OF THE STATUTORY PASS-
THROUGH PAYMENTS DUE TO THE CITY OF LA
CONSENT CALENDAR:
6
QUINTA FROM THE SUCCESSOR AGENCY FOR THE
STUDY SESSION:
COUNTY OF RIVERSIDE
PUBLIC HEARING:
RECOMMENDED ACTION:
Adopt a Resolution approving the subordination of Statutory Pass-Through
Payments allocated to the City of La Quinta in connection with the refinancing of
2010A
and 2010B tax allocation bond issues.
EXECUTIVE SUMMARY:
Assembly Bill 1484 allows successor agencies to refinance former
redevelopment agency bonds to reduce annual bond payments.
The Successor Agency for the County of Riverside (Agency) plans to
refinance the Desert Communities Redevelopment Project Area (DCPA)
2010A and 2010B tax allocation bonds prior to the end of Fiscal Year
2014/15.
The City receives minimal property tax revenue from the DCPA provided per
a pass-through payment that was established via the former redevelopment
statutes.
The Agency is requesting that the City subordinate its statutory pass-through
payment to the refinancing bond debt service payments (Attachment 1).
The refinancing bonds will lower the total debt service payments without
increasing the term of the bonds.
response is due on or before July 18, 2014. A non-response will
be deemed an automatic approval and shall be final.
47
FISCAL IMPACT:
that Project Area
DCPA will generate sufficient tax increment revenues to cover both the bond debt
service and the $15.7 million in pass-through payments over the next 30 years.
BACKGROUND/ANALYSIS:
Pursuant to the Health and Safety Code, a redevelopment agency may, with the
-Through Payments to bonds
issued by the redevelopment agency for the project area. This improves the credit
position of the bonds and potentially increases the revenue stream for financing the
bonds.
Disapproval by the City must be based on substantial evidence that the Agency
cannot pay the debt service and statutory pass-through payments. Staff has
reviewed the revenue projections and proposed debt service schedule provided by
the Agency. This review indicates that there is sufficient revenue to pay both the
pass-through payments and bond debt service. Further, the refinancing will reduce
bond interest costs and the total amount of revenue needed to make bond
payments, which will further secure th-through payments.
ALTERNATIVES:
Council may choose not to respond; however, doing so will trigger an automatic
approval. Therefore, staff does not recommend an alternative.
Report prepared by: Teresa Thompson, Deputy City Clerk
Report approved for submission by: Susan Maysels, City Clerk
Attachment: 1. Riverside County EDA correspondence
48
RESOLUTION NO. 2014 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF LA QUINTA, CALIFORNIA, APPROVING THE
SUBORDINATION OF STATUTORY PASS-THROUGH
PAYMENTS ALLOCATED TO THE CITY OF LA
QUINTA IN CONNECTION WITH THE DESERT
COMMUNITIES REDEVELOPMENT PROJECT AREA
NO. 4 TO THE SUCCESSOR AGENCY FOR THE
COUNTY OF RIVERSIDE PAYMENT OBLIGATIONS
FOR REFUND OF BOND ISSUE 2010A AND 2010B
WHEREAS, AB 1484 added Health and Safety Code section 34177.5,
which provides, among other provisions, that a successor agency has the
authority, rights, and powers of redevelopment agencies for the purpose of
issuing bonds or incurring other indebtedness for specified purposes, including
but not limited to refunding existing bonds or other indebtedness of the former
redevelopment agency; and
WHEREAS, the Successor Agency for the County of Riverside (Agency)
increment revenue, and
WHEREAS, California Health and Safety Code Section 33607.5(e)
provides that the Agency , subordinate
amounts payable from tax increments of a redevelopment project area
(Statutory Pass-Through Payments) to bonds issued by the Agency; and
WHEREAS, the Agency has requested that the City of La Quinta agree to
subordinate the Statutory Pass-Through Payments it receives from the County
of Riverside Redevelopment Project Area No. 4 to the debt service on the
Bonds.
WHEREAS, the Agency has provided a tax revenue projection summary
that includes debt service analysis showing sufficient funds available to pay
both debt service on the Bonds and the Statutory Pass-Through Payments
required to pay the City of La Quinta.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
La Quinta, California, as follows:
49
Resolution 2014-
Subordination Request
Adopted:
Page
The City Manager is authorized to execute the attached Acknowledgement
(Exhibit A) and submit the Acknowledgement to the Agency by July 18, 2014.
PASSED, APPROVED, and ADOPTED at a regular meeting of the La
Quinta City Council held on this day of 2014
by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_____________________________
DON ADOLPH, Mayor
City of La Quinta, California
ATTEST:
__________________________________________
SUSAN MAYSELS, City Clerk
City of La Quinta, California
(CITY SEAL)
APPROVED AS TO FORM:
_______________________________________
M. KATHERINE JENSON, City Attorney
50
51
52
53
54
55
56
AGENDA CATEGORY:
June 17, 2014
CITY / SA / HA / FA MEETING DATE:
BUSINESS SESSION:
CONSENT CALENDAR:
APPROVE OVERNIGHT TRAVEL FOR ONE 7
ITEM TITLE:
COUNCILMEMBER AND CITY CLERK TO ATTEND
STUDY SESSION:
THE QUARTERLY LEAGUE OF CALIFORNIA CITIES
POLICY COMMITTEE MEETINGS IN SACRAMENTO,
PUBLIC HEARING:
CALIFORNIA - JUNE 18-19, 2014
RECOMMENDED ACTION:
Authorize overnight travel for Councilmember Terry Henderson and City Clerk
Susan Maysels to attend the League of California Cities Policy Committee Meetings
being held in Sacramento, California, June 18-19, 2014.
EXECUTIVE SUMMARY:
Sgd Kd`ftd ne B`khenqmh` BhshdrŬ 'Kd`ftdŬr( onkhbx bnllhssddr qduhdv ahkkr nq
regulatory proposals and make recommendations to the League Board of
Directors for a formal League position.
The quarterly meetings provide a venue for policy discussion and an
opportunity to receive detailed background information/clarity on upcoming
issues.
Councilmember Henderson is a member of the League Board of Directors as
well as a Revenue and Taxation Policy Committee Member. City Clerk
Maysels is a member of the Administrative Services Policy Committee.
FISCAL IMPACT:
The estimated total cost to attend this training is $898. Funds are available in the
Fiscal Year 2013/2014 budget.
57
BACKGROUND/ANALYSIS:
The League is an association of California city officials who work together to
enhance their knowledge and skills, exchange information, and combine resources
so that they may influence State and Federal policy decisions that affect cities.
Sgd Kd`ftdŬr pt`qsdqkx lddshmfr oqnuhcd the opportunity for local leaders to learn
from leading experts as well as from their peers. Attendees receive updates on
new legislation and court rulings affecting cities.
ALTERNATIVES:
As it is crucial that the City has representation and input on upcoming legislation,
and funds have already been set aside, staff does not recommend and alternative.
Report prepared by: Pam Nieto, Secretary
Report approved for submission by: Susan Maysels, City Clerk
58
June 17, 2014
CITY / SA / HA / FA MEETING DATE:
AGENDA CATEGORY:
DWBTRD AN@QC LDLADQ Q@X QNNJDQŬR
ITEM TITLE:
BUSINESS SESSION:
ABSENCE FROM THE JUNE 4, 2014,
ARCHITECTURAL AND LANDSCAPING REVIEW
CONSENT CALENDAR:
8
BOARD MEETING
STUDY SESSION:
PUBLIC HEARING
:
RECOMMENDED ACTION:
Approve a request from Board Member Ray Rooker to be excused from the June 4,
2014 Architectural and Landscaping Review Board meeting.
BACKGROUND/ANALYSIS:
Board Member Rooker requested to be excused from the June 4, 2014
Architectural and Landscaping Review Board meeting due to being out of the area
for a personal matter. The Municipal Code does not allow a member to be absent
from two consecutive regular meetings or three scheduled meetings within a fiscal
year without causing his/her office to become vacant. A request may be made for
Bntmbhk sn dwbtrd ` an`qc ldladqŬr `asence after-the-fact, for extenuating
circumstances, and the absence would then not be counted toward the limitation
on absences. Board Member Rooker has had no other absences during this fiscal
year and staff recommends this absence be excused by Council.
ALTERNATIVES:
Council may deny the request, which would result in the absence being counted
toward his limitation on absences as noted above.
Report prepared by: Les Johnson, Community Development Director
Report approved for submission by: Frank J. Spevacek, City Manager
59
60
AGENDA CATEGORY:
June 17, 2014
CITY / SA / HA / FA MEETING DATE:
BUSINESS SESSION:
APPROVE A CONTRACT EXTENSION
ITEM TITLE:
CONSENT CALENDAR:
WITH VINTAGE ASSOCIATES FOR PARK
9
LANDSCAPE MAINTENANCE SERVICES FOR FISCAL
STUDY SESSION:
YEAR 2014/15
PUBLIC HEARING:
RECOMMENDED ACTION:
Approve a one-year contract extension and reinstate tree maintenance and dog
park over-seeding for park landscape maintenance services and authorize the City
Manager to execute the extension.
EXECUTIVE SUMMARY:
The City has a park maintenance contract with Vintage Landscape, which is
renewed annually and allows the City to extend it each year over a four-year
period.
This one-year extension would be the fourth extension, and would also
reinstate tree maintenance for $10,000 per year and dog park over-seeding
for $2,000 per year. This increased maintenance would occur during Fiscal
Year 2014/15.
FISCAL IMPACT:
The current annual cost of this contract is $493,100. Reinstating tree
maintenance and dog park over-seeding will increase the contract to $505,100
annually. Funds for this service are included in the draft Fiscal Year 2014/15
budget in the Park Maintenance, Landscape and Lighting District, Library, and
Museum divisions.
BACKGROUND/ANALYSIS:
On May 4, 2010, the City Council awarded a contract to Vintage Landscape, a
division of Vintage Associates, Inc., for park landscape maintenance services in the
amount of $388,380. The contract was for a period of one year with a provision
for four one-year extensions, not to exceed a total contract length of five years.
61
On June 15, 2010, Council approved Contract Change Order No. 1 in the amount
of $121,920 for the Bear Creek Trail and Seasons Retention Basin to be maintained
under the Parks Maintenance Contract (previously maintained under the Lighting
and Landscape Contract) due to recreational uses at these facilities.
On September 21, 2010, Council approved Contract Change Order No. 2 for the
maintenance of the sports fields at Colonel Paige Middle School under the terms of
the May 18, 2010 Joint Use Agreement with the Desert Sands Unified School
District. The annual cost for the maintenance was $26,400.
On June 6, 2011, Council approved Contract Change Order No. 3 for a one-year
contract extension with no cost increase.
On June 5, 2012, Council approved Contract Change Order No. 4 for a one-year
extension and service reductions for a cost savings in the amount of $43,600. The
reductions, starting July 1, 2012, included:
Discontinuing winter park over-seeding <$13,600>
Reducing tree pruning to safety only <$10,000>
Reducing landscape labor by .5 full-time employee <$10,000>
Eliminating the Desert ARC Program <$10,000>
On May 7, 2013, Contract Change Order No. 5 was approved for a one-year
extension with no changes to the contract amount.
The City reduced park maintenance in order to decrease operating budget expenses
when faced with budget deficits. These reductions, however, have deteriorated
turf conditions at the dog parks to a point where they are now worn to expose dirt.
Staff recommends reinstating over-seeding to strengthen the turf. Winter grass
will provide a growing ground cover while protecting the dormant Bermuda grass
underneath. Staff also recommends reinstating park tree maintenance to improve
appearance and reduce damage and replacement. Both of these recommendations
were considered by the City Council when reviewing the FY 2014/15 budget; the
Council concurred with these recommendations and directed staff to include
funding in the final budget.
ALTERNATIVES:
Should Council choose not to extend the landscape contract, staff would solicit
new bids for maintenance services.
Report prepared by: Steve Howlett, Parks, Golf, & Facilities Manager
Report approved for submission by: Edie Hylton, Community Services Director
Attachment: 1. Contract Change Order No. 6
62
ATTACHMENT 1
Sheet 1 of 1
CONTRACT CHANGE ORDER NO. 6
PROJECT NO. 2009-20
CONTRACT: Park Landscape Maintenance Services
CONTRACTOR: Vintage Associates, Inc.
****************************************************************************************
Pursuant to the terms of the original Contract Agreement, you are hereby directed to make the herein described changes
or do the following described work not included in the plans and specifications for this Contract. Unless otherwise
stated all work shall conform to the terms, general conditions, and special provisions of the original Contract.
DESCRIPTION OF CHANGES EFFECTIVE JULY 1, 2014:
Contract extension for Fiscal Year 2013/2014.
Reinstate tree maintenance for $10,000/yr.
Reinstate dog park over-seeding for $2,000/yr.
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Original Contract Amount $388,380
Change Order Nos. 1 through 5 $104,720
Add This Change Order No. 6 $12,000
Revised Contract Total $505,100
By reason of this contract change order the time of completion is adjusted as follows:
The contract completion date is June 30, 2015.
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Submitted By: Date:
Approved By: Date:
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Accepted By: Title: _____________________
Contractor: Vintage Associates, Inc. Date: _
63
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AGENDA CATEGORY:
June 17, 2014
CITY / SA / HA / FA MEETING DATE:
BUSINESS SESSION:
APPROVAL OF A PROFESSIONAL
ITEM TITLE:
CONSENT CALENDAR:
10
SERVICES AGREEMENT WITH JNS MEDIA FOR
MARKETING SERVICES
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Approve a Professional Services Agreement with JNS Media and authorize the City
Manager to execute the agreement.
EXECUTIVE SUMMARY:
A request for proposals (RFP) for print/media marketing services was sent to
firms in and around the Coachella Valley.
A selection committee reviewed two proposals and interviews were
conducted with each firm.
JNS Media received the highest scores and the committee recommends
approval of the attached Professional Services Agreement (Attachment 1).
FISCAL IMPACT:
Implementing this agreement would cost $110,000. Funds are available for this
work in the marketing budget.
BACKGROUND/ANALYSIS:
On May 6, 2014, marketing strategies for Fiscal Year 2014/15 were presented to
Council. The presentation outlined strategies to maximize marketing dollars, which
included new print and media methods to increase sales tax and transient
occupancy tax through tourism to La Quinta. These new methods include:
Local and Regional Television Ads
Greater Palm Springs Travel Host Magazine
65
Regional Messaging Campaigns
Los Angeles Magazine
o
San Diego Magazine
o
Inland Empire Magazine
o
Orange Coast Magazine
o
BntmbhkŬr hmots v`r trdc sn oqdo`qd `m RFP, which was transmitted to local
l`qjdshmf ehqlr `mc onrsdc nm sgd BhsxŬr RFP Manager System on the website.
While many stated interest, only two firms responded. These firms were FG
Bqd`shud+ sgd BhsxŬr btqqdms l`qjdshmf rdquices provider whose contract ends June
30, 2014, and JNS Media.
A selection committee was comprised of Edie Hylton, Community Services
Director; Chris Escobedo, Assistant to City Manager; and Tustin Larson, Recreation
Supervisor. Scoring was based on experience, design creativity, project
understanding and ability to complete the projects in a timely manner. JNS Media
received the highest scores of the two firms. In addition, JNS Media is a local firm
with offices in Old Town La Quinta and works closely with the Greater Palm
Springs Convention and Visitors Bureau, which aligns with the approved marketing
strategies.
JNS Media has met all of the qualifications and the selection committee
recommends approval of the Professional Services Agreement.
ALTERNATIVES:
As the selection process has met City requirements and the selected firm meets or
exceeds all required qualifications, staff does not recommend an alternative.
Report prepared by: Tustin K. Larson, Recreation Supervisor
Report approved for submission by: Edie Hylton, Community Services Director
Attachment: 1. Professional Services Agreement
66
ATTACHMENT 1
PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT FOR CONTRACT SERVICDR 'sgd Ů@fqddldmsů( hr l`cd
and entered into by and between the CITY NE K@ PTHMS@+ 'ŮBhsxů(+ ` B`khenqmh`
ltmhbho`k bnqonq`shnm+ `mc IMR LDCH@ 'ŮBnmrtks`msů(- Sgd o`qshdr gdqdsn `fqdd `r
follows:
1.0 SERVICES OF CONSULTANT
1.1 Scope of Services. In compliance with all terms and conditions of this
Agreement, Consultant shall provide those services related to Print and Media
L`qjdshmf Rdquhbdr+ `r rodbhehdc hm sgd ŮRbnod ne Rdquhbdrů `ss`bgdc gdqdsn `r
Dwghahs Ů@ů `mc hmbnqonq`sdc gdqdhm ax sghr qdedqdmbd 'sgd Ůrdquhbdrů nq Ůvnqjů(-
Consultant warrants that all services will be performed in a competent, professional
and satisfactory manner in accordance with the standards prevalent in the industry
for such services.
1.2 Compliance with Law. All services rendered hereunder shall be provided
in accordance with all ordinances, resolutions, statutes, rules, regulations and laws
of the City of La Quinta and any Federal, State or local governmental agency of
competent jurisdiction.
1.3 Licenses, Permits, Fees and Assessments. Except as otherwise specified
herein, Consultant shall obtain at its sole cost and expense such licenses, permits
and approvals as may be required by law for the performance of the services
required by this Agreement. Consultant shall have the sole obligation to pay for
any fees, assessments and taxes, plus applicable penalties and interest, which may
be imposed by law and arise from or are necessary for the performance of the
services required by this Agreement.
1.4 Familiarity with Work. By executing this Agreement, Consultant
warrants that (a) it has thoroughly investigated and considered the work to be
performed, (b) it has investigated the site of the work and fully acquainted itself
with the conditions there existing, (c) it has carefully considered how the work
should be performed, and (d) it fully understands the facilities, difficulties and
restrictions attending performance of the work under this Agreement. Should
Consultant discover any latent or unknown conditions materially differing from
those inherent in the work or as represented by City, Consultant shall immediately
inform City of such fact and shall not proceed except at Consultant's risk until
written instructions are received from the Contract Officer (as defined in Section
4.2 hereof).
Last revised 5-20-14 1
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1.5 Care of Work and Standard of Work.
a. Care of Work. Consultant shall adopt reasonable methods during the life
of the Agreement to furnish continuous protection to the work performed by
Consultant, and the equipment, materials, papers and other components thereof to
prevent losses or damages, and shall be responsible for all such damages, to
persons or property, until acceptance of the work by City, except such losses or
damages as may be caused by City's own negligence. The performance of
services by Consultant shall not relieve Consultant from any obligation to correct
any incomplete, inaccurate or defective work at no further cost to City, when such
inaccuracies are due to the negligence of Consultant.
b. Standard of Work. Consultant acknowledges and understands that the
services and work contracted for under this Agreement require specialized skills
and abilities and that, consistent with this tmcdqrs`mchmf+ Bnmrtks`msŬr rdquhbdr `mc
work will be held to a heightened standard of quality and workmanship. Consistent
with Section 1.4 hereinabove, Consultant represents to City that it holds the
necessary skills and abilities to satisfy the heightened standard of work as set forth
in this Agreement.
1.6 Additional Services. In accordance with the terms and conditions of this
Agreement, Consultant shall perform services in addition to those specified in the
Rbnod ne Rdquhbdr 'Ů@cchshnm`k Rdquhbdrů( vgdm chqdbsdc to do so by the Contract
Officer. Consultant shall not perform any Additional Services until receiving prior
written authorization from the Contract Officer. It is specifically understood and
agreed that oral requests and/or approvals of Additional Services shall be barred
and are unenforeceable. Failure of Consuls`ms sn rdbtqd sgd Bnmsq`bs L`m`fdqŬr
written authorization for Additional Services shall constitute a waiver of any and all
right to adjustment of the Contract Sum or time due, whether by way of
compensation, restitution, quantum meruit, etc. for Additional Services provided
without the appropriate authorization from the Contract Manager. Compensation
for properly authorized Additional Services shall be made in accordance with
Section 2.2 of this Agreement.
1.7 Special Requirements. Additional terms and conditions of this
Agreement, if any, which are made a part gdqdne `qd rds enqsg hm Dwghahs ŮCů 'sgd
ŮRodbh`k Qdpthqdldmsrů(- Hm sgd dudms ne ` conflict between the provisions of the
Special Requirements and any other provisions of this Agreement, the provisions of
the Special Requirements shall govern.
2.0 COMPENSATION
2.1 Contract Sum. For the services rendered pursuant to this Agreement,
Bnmrtks`ms rg`kk ad bnlodmr`sdc hm `bbnqc`mbd vhsg Dwghahs ŮAů 'sgd ŮRbgdctkd ne
Last revised 5-20-14 2
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Bnlodmr`shnmů( hm ` sns`k `lntms mns to exceed One Hundred Ten Thousand
Dollars ($110,000( 'sgd ŮBnmsq`bs Rtlů(+ dwbdos `r provided in Section 1.6. The
method of compensation set forth in the Schedule of Compensation may include a
lump sum payment upon completion, payment in accordance with the percentage
of completion of the services, payment for time and materials based upon
Consultant's rate schedule, but not exceeding the Contract Sum, or such other
methods as may be specified in the Schedule of Compensation. Compensation
may include reimbursement for actual and necessary expenditures for reproduction
costs, transportation expense, telephone expense, and similar costs and expenses
when and if specified in the Schedule of Compensation. Regardless of the method
ne bnlodmr`shnm rds enqsg hm sgd Rbgdctkd ne Bnlodmr`shnm+ Bnmrtks`msŬr nudq`kk
compensation shall not exceed the Contract Sum, except as provided in Section
0-5 ne sghr @fqddldms+ Ů@cchshnm`k Rdquhbdr-ů
2.2 Compensation for Additional Services. Additional services approved
in advance by the Contract Manager pursuant to Section 1.6 of this Agreement,
Ů@cchshnm`k Rdquhbdr+ů rg`kk ad o`hc enq hm an amount agreed to in writing by both
City and Consultant in advance of the Additional Services being rendered by
Consultant. Any compensation for Additional Services amounting to five percent
(5%) or less of the Contract Sum may be approved by the Contract Officer. Any
greater amount of compensation for additional services must be approved by the La
Quinta City Council. Under no circumstances shall Consultant receive
compensation for any Additional Services unless prior written approval for the
Additional Services is obtained from the Contract Officer pursuant to Section 1.6 of
this Agreement.
2.3 Method of Billing. Any month in which Consultant wishes to
receive payment, Consultant shall submit to City no later than the tenth (10th)
working day of such month, in the form approved by City's Finance Director, an
invoice for services rendered prior to the date of the invoice. Such invoice shall (1)
describe in detail the services provided, including time and materials, and (2)
specify each staff member who has provided services and the number of hours
assigned to each such staff member. Such invoice shall contain a certification by a
principal member of Consultant specifying that the payment requested is for work
performed in accordance with the terms of this Agreement. City will pay
Consultant for all expenses stated thereon which are approved by City pursuant to
this Agreement no later than thirty (30) days after invoices are received by the
BhsxŬr Ehm`mbd Cdo`qsldms-
3.0 PERFORMANCE SCHEDULE
3.1 Time of Essence. Time is of the essence in the performance of this
Agreement.
Last revised 5-20-14 3
69
3.2 Schedule of Performance. All services rendered pursuant to this
Agreement shall be performed diligently and within the time period established in
Dwghahs A 'sgd ŮRbgdctkd ne Odqenql`mbdů(- Extensions to the time period specified
in the Schedule of Performance may be approved in writing by the Contract Officer.
3.3 Force Majeure. The time period specified in the Schedule of Performance
for performance of the services rendered pursuant to this Agreement shall be
extended because of any delays due to unforeseeable causes beyond the control
and without the fault or negligence of Consultant, including, but not restricted to,
acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine
restrictions, riots, strikes, freight embargoes, acts of any governmental agency
other than City, and unusually severe weather, if Consultant shall within ten (10)
days of the commencement of such delay notify the Contract Officer in writing of
the causes of the delay. The Contract Officer shall ascertain the facts and the
extent of delay, and extend the time for performing the services for the period of
the forced delay when and if in his or her judgment such delay is justified, and the
Contract Officer's determination shall be final and conclusive upon the parties to
this Agreement. Extensions to the Schedule of Performance which are determined
by the Contract Officer to be justified pursuant to this Section shall not entitle the
Consultant to additional compensation in excess of the Contract Sum.
3.4 Term. The term of this agreement shall commence on July 1, 2014 and
terminate on June 30, 2015 (initial term). This agreement may be extended for
two (2) additional years upon mutual agreement by both parties (extended term).
Unless earlier terminated in accordance with Sections 8.7 or 8.8 of this Agreement,
this Agreement shall continue in full force and effect until completion of the
services, except as otherwise provided in the Schedule of Performance.
4.0 COORDINATION OF WORK
4.1 Representative of Consultant. The following principals of Consultant are
hereby designated as being the principals and representatives of Consultant
authorized to act in its behalf with respect to the work specified herein and make
all decisions in connection therewith:
a.Garry Sage, President / CEO
Email: JNS_Ads@msn.com
It is expressly understood that the experience, knowledge, capability, and
reputation of the foregoing principals were a substantial inducement for City to
enter into this Agreement. Therefore, the foregoing principals shall be responsible
during the term of this Agreement for directing all activities of Consultant and
devoting sufficient time to personally supervise the services hereunder.
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70
The foregoing principals may not be changed by Consultant and no other
personnel may be assigned to perform the service required hereunder without the
express written approval of City.
4.2 Contract Officer. The Contract Officer shall be the City Manager or such
other person as may be designated by the City Manager of City. It shall be
Consultant's responsibility to assure that the Contract Officer is kept informed of
the progress of the performance of the services and Consultant shall refer any
decisions, which must be made by City to the Contract Officer. Unless otherwise
specified herein, any approval of City required hereunder shall mean the approval of
the Contract Officer.
4.3 Prohibition Against Subcontracting or Assignment. The experience,
knowledge, capability and reputation of Consultant, its principals and employees
were a substantial inducement for City to enter into this Agreement. Except as set
forth in this Agreement, Consultant shall not contract with any other entity to
perform in whole or in part the services required hereunder without the express
written approval of City. In addition, neither this Agreement nor any interest herein
may be assigned or transferred, voluntarily or by operation of law, without the prior
written approval of City.
4.4 Independent Contractor. Neither City nor any of its employees shall have
any control over the manner, mode or means by which Consultant, its agents or
employees, perform the services required herein, except as otherwise set forth.
Consultant shall perform all services required herein as an independent contractor
of City and shall remain at all times as to City a wholly independent contractor with
only such obligations as are consistent with that role. Consultant shall not at any
time or in any manner represent that it or any of its agents or employees are agents
or employees of City.
4.5 City Cooperation. City shall provide Consultant with any plans,
publications, reports, statistics, records or other data or information pertinent to
services to be performed hereunder which are reasonably available to Consultant
only from or through action by City.
5.0 INSURANCE
5.1 Insurance. Prior to the beginning of and throughout the duration of the
Work performed under this Agreement, Consultant shall procure and maintain, at
its cost, and submit concurrently with its execution of this Agreement, Commercial
General Liability insurance against all claims for injuries against persons or damages
to property resulting from Consultant's acts or omissions rising out of or related to
Consultant's performance under this Agreement. The insurance policy shall contain
Last revised 5-20-14 5
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a severability of interest clause providing that the coverage shall be primary for
losses arising out of Consultant's performance hereunder and neither City nor its
insurers shall be required to contribute to any such loss. A certificate evidencing
the foregoing and naming City and its officers and employees as additional insured
(on the Commercial General Liability policy only) shall be delivered to and approved
by City prior to commencement of the services hereunder.
The following policies shall be maintained and kept in full force and effect
providing insurance with minimum limits as indicated below and issued by insurers
with A.M. Best ratings of no less than A-:VI:
Commercial General Liability (at least as broad as ISO CG 0001)
$1,000,000 (per occurrence)
$2,000,000 (general aggregate)
Commercial Auto Liability (at least as broad as ISO CA 0001)
$1,000,000 (per accident)
Errors and Omissions Liability
$1,000,000 (per claim and aggregate)
VnqjdqrŬ Bnlodmr`shnm
(per statutory requirements)
Consultant shall carry automobile liability insurance of $1,000,000 per
accident against all claims for injuries against persons or damages to property
arising out of the use of any automobile by Consultant, its officers, any person
directly or indirectly employed by Consultant, any subcontractor or agent, or
anyone for whose acts any of them may be liable, arising directly or indirectly out
of or related to Consultant's performance under this Agreement. If Consultant or
Bnmrtks`msŬr dloknxddr vill use personal autos in any way on this project,
Consultant shall provide evidence of personal auto liability coverage for each such
odqrnm- Sgd sdql Ů`tsnlnahkdů hmbktcdr+ ats is not limited to, a land motor vehicle,
trailer or semi-trailer designed for travel on public roads. The automobile insurance
policy shall contain a severability of interest clause providing that coverage shall be
primary for losses arising out of Consultant's performance hereunder and neither
City nor its insurers shall be required to contribute to such loss.
Professional Liability or Errors and Omissions Insurance as appropriate shall be
written on a policy form coverage specifically designed to protect against acts,
errors or omissions of the consultant `mc ŮBnudqdc Oqnedrrhnm`k Rdquhbdrů `r
designated in the policy must specifically include work performed under this
agreement. The policy limit shall be no less than $1,000,000 per claim and in the
`ffqdf`sd- Sgd onkhbx ltrs Ůo`x nm adg`ke neů sgd hmrtqdc `mc ltrs hmbktcd `
Last revised 5-20-14 6
72
oqnuhrhnm drs`akhrghmf sgd hmrtqdqŬr ctsx sn defend. The policy retroactive date shall
be on or before the effective date of this agreement.
Consultant shall carry Workers' Compensation Insurance in accordance with
State Worker's Compensation laws with dloknxdqŬr kh`ahkhsx khlhsr mn kdrr sg`m
$1,000,000 per accident or disease.
All insurance required by this Section shall be kept in effect during the term of
this Agreement and shall not be cancelable without written notice to City of
proposed cancellation. The procuring of such insurance or the delivery of policies
or certificates evidencing the same shall not be construed as a limitation of
Consultant's obligation to indemnify City, its officers, employees, contractors,
subcontractors, or agents.
5.2 Remedies. In addition to any other remedies City may have if Consultant
fails to provide or maintain any insurance policies or policy endorsements to the
extent and within the time herein required, City may, at its sole option:
a. Obtain such insurance and deduct and retain the amount of the
premiums for such insurance from any sums due under this Agreement.
b. Order Consultant to stop work under this Agreement and/or
withhold any payment(s) which become due to Consultant hereunder until
Consultant demonstrates compliance with the requirements hereof.
c. Terminate this Agreement.
Exercise of any of the above remedies, however, is an alternative to any other
remedies City may have. The above remedies are not the exclusive remedies for
Consultant's failure to maintain or secure appropriate policies or endorsements.
Nothing herein contained shall be construed as limiting in any way the extent to
which Consultant may be held responsible for payments of damages to persons or
property resulting from Consultant's or its subcontractors' performance of work
under this Agreement.
5.3 General Conditions pertaining to provisions of insurance coverage by
Consultant. Consultant and City agree to the following with respect to insurance
provided by Consultant:
1. Consultant agrees to have its insurer endorse the third party general
liability coverage required herein to include as additional insureds City, its officials,
employees and agents, using standard ISO endorsement No. CG 2010 with an
edition prior to 1992. Consultant also agrees to require all contractors, and
subcontractors to do likewise.
Last revised 5-20-14 7
73
2. No liability insurance coverage provided to comply with this
Agreement shall prohibit Consultant, or Cnmrtks`msŬr dloknxddr+ nq `fdmsr+ eqnl
waiving the right of subrogation prior to a loss. Consultant agrees to waive
subrogation rights against City regardless of the applicability of any insurance
proceeds, and to require all contractors and subcontractors to do likewise.
3. All insurance coverage and limits provided by Contractor and
available or applicable to this agreement are intended to apply to the full extent of
the policies. Nothing contained in this Agreement or any other agreement relating
to the City or its operations limits the application of such insurance coverage.
4. None of the coverages required herein will be in compliance with
these requirements if they include any limiting endorsement of any kind that has
not been first submitted to City and approved of in writing.
5. No liability policy shall contain any provision or definition that would
rdqud sn dkhlhm`sd rn,b`kkdc Ůsghqc o`qsx `bshnm nudqů bk`hlr+ hmcluding any exclusion
for bodily injury to an employee of the insured or of any contractor or
subcontractor.
6. All coverage types and limits required are subject to approval,
modification and additional requirements by the City, as the need arises.
Consultant shall not make any reductions in scope of coverage (e.g. elimination of
contractual liability or reduction of discovdqx odqhnc( sg`s l`x `eedbs BhsxŬr
oqnsdbshnm vhsgnts BhsxŬr prior written consent.
7. Proof of compliance with these insurance requirements, consisting
of certificates of insurance evidencing all of the coverages required and an
additional insured endorsement to Constks`msŬr fdmdq`k kh`ahkhsx onkhbx+ rg`kk ad
delivered to City at or prior to the execution of this Agreement. In the event such
proof of any insurance is not delivered as required, or in the event such insurance is
canceled at any time and no replacement coverage is provided, City has the right,
but not the duty, to obtain any insurance it deems necessary to protect its interests
under this or any other agreement and to pay the premium. Any premium so paid
by City shall be charged to and promptly paid by Consultant or deducted from
sums due Consultant, at City option.
8. It is acknowledged by the parties of this agreement that all
insurance coverage required to be provided by Consultant or any subcontractor, is
intended to apply first and on a primary, non-contributing basis in relation to any
other insurance or self insurance available to City.
Last revised 5-20-14 8
74
9. Consultant agrees to ensure that subcontractors, and any other
party involved with the project that is brought onto or involved in the project by
Consultant, provide the same minimum insurance coverage required of Consultant.
Consultant agrees to monitor and review all such coverage and assumes all
responsibility for ensuring that such coverage is provided in conformity with the
requirements of this section. Consultant agrees that upon request, all agreements
with subcontractors and others engaged in the project will be submitted to City for
review.
10. Consultant agrees not to self-insure or to use any self-insured
retentions or deductibles on any portion of the insurance required herein (with the
exception of professional liability coverage, if required) and further agrees that it
will not allow any contractor, subcontractor, Architect, Engineer or other entity or
person in any way involved in the performance of work on the project
contemplated by this agreement to self-insure its obligations to City. If
Bnmrtks`msŬr dwhrshmf bnudq`fd hmbktcdr ` cdctbshakd nq rdke,hmrtqdc qdsdmshnm+ sgd
deductible or self-insured retention must be declared to the City. At that time the
City shall review options with the Consultant, which may include reduction or
elimination of the deductible or self-insured retention, substitution of other
coverage, or other solutions.
11. The City reserves the right at any time during the term of the
contract to change the amounts and types of insurance required by giving the
Consultant ninety (90) days advance written notice of such change. If such
change results in substantial additional cost to the Consultant, the City will
negotiate additional compensation proportional to the increased benefit to City.
12. For purposes of applying insurance coverage only, this Agreement
will be deemed to have been executed immediately upon any party hereto taking
any steps that can be deemed to be in furtherance of or towards performance of
this Agreement.
13. Consultant acknowledges and agrees that any actual or alleged
failure on the part of City to inform Consultant of non-compliance with any
insurance requirement in no way imposes any additional obligations on City nor
does it waive any rights hereunder in this or any other regard.
14. Consultant will renew the required coverage annually as long as
City, or its employees or agents face an exposure from operations of any type
pursuant to this agreement. This obligation applies whether or not the agreement
is canceled or terminated for any reason. Termination of this obligation is not
effective until City executes a written statement to that effect.
Last revised 5-20-14 9
75
15. Consultant shall provide proof that policies of insurance required
herein expiring during the term of this Agreement have been renewed or replaced
with other policies providing at least the same coverage. Proof that such coverage
has been ordered shall be submitted prior to expiration. A coverage binder or letter
eqnl Bnmrtks`msŬr hmrtq`mbd `fdms sn sghr effect is acceptable. A certificate of
insurance and/or additional insured endorsement as required in these specifications
applicable to the renewing or new coverage must be provided to City within five (5)
days of the expiration of coverages.
05- Sgd oqnuhrhnmr ne `mx vnqjdqrŬ compensation or similar act will not
limit the obligations of Consultant under this agreement. Consultant expressly
agrees not to use any statutory immunity defenses under such laws with respect to
City, its employees, officials and agents.
17. Requirements of specific coverage features or limits contained in
this section are not intended as limitations on coverage, limits or other
requirements nor as a waiver of any coverage normally provided by any given
policy. Specific reference to a given coverage feature is for purposes of
clarification only as it pertains to a given issue, and is not intended by any party or
insured to be limiting or all-inclusive.
18. These insurance requirements are intended to be separate and
distinct from any other provision in this agreement and are intended by the parties
here to be interpreted as such.
19. The requirements in this Section supersede all other sections and
provisions of this Agreement to the extent that any other section or provision
conflicts with or impairs the provisions of this Section.
20. Consultant agrees to be responsible for ensuring that no contract
used by any party involved in any way with the project reserves the right to charge
City or Consultant for the cost of additional insurance coverage required by this
agreement. Any such provisions are to be deleted with reference to City. It is not
the intent of City to reimburse any third party for the cost of complying with these
requirements. There shall be no recourse against City for payment of premiums or
other amounts with respect thereto.
21. Consultant agrees to provide immediate notice to City of any claim
or loss against Consultant arising out of the work performed under this agreement.
City assumes no obligation or liability by such notice, but has the right (but not the
duty) to monitor the handling of any such claim or claims if they are likely to
involve City.
Last revised 5-20-14 10
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6.0 INDEMNIFICATION.
6.1 General Indemnification Provision.
a. Indemnification for Professional Liability. When the law establishes
` oqnedrrhnm`k rs`mc`qc ne b`qd enq Bnmrtks`msŬr Rdquhbdr+ sn sgd etkkdrs dwsdms
permitted by law, Consultant shall indemnify, protect, defend and hold harmless
City and any and all of its officials, emplnxddr `mc `fdmsr 'ŮHmcdlmhehdc O`qshdrů(
from and against any and all claims, losses, liabilities of every kind, nature and
description, damages, injury (including, without limitation, injury to or death of an
employee of Consultant or subconsultants), costs and expenses of any kind,
whether actual, alleged or threatened, including, without limitation, incidental and
consequential damages, court costs, attorndxrŬ eddr+ khshf`shnm dwodmrdr+ `mc eddr
of expert consultants or expert witnesses incurred in connection therewith and
costs of investigation, to the extent same are cause in whole or in part by any
negligent or wrongful act, error or omission of Consultant, its officers, agents,
employees or subconsultants (or any entity or individual that Consultant shall bear
the legal liability thereof) in the performance of professional services under this
agreement. With respect to the design of public improvements, the Consultant
shall not be liable for any injuries or property damage resulting from the reuse of
the design at a location other than that specified in Exhibit A without the written
consent of the Consultant.
b. Indemnification for Other Than Professional Liability. Other than in
the performance of professional services and to the full extent permitted by law,
Consultant shall indemnify, defend and hold harmless City, and any and all of its
employees, officials and agents from and against any liability (including liability for
claims, suits, actions, arbitration proceedings, administrative proceedings,
regulatory proceedings, losses, expenses or costs of any kind, whether actual,
alleged or threatened, including, without limitation, incidental and consequential
c`l`fdr+ bntqs bnrsr+ `ssnqmdxrŬ eddr+ litigation expenses, and fees of expert
consultants or expert witnesses) incurred in connection therewith and costs of
investigation, where the same arise out of, are a consequence of, or are in any way
attributable to, in whole or in part, the performance of this Agreement by
Consultant or by any individual or entity for which Consultant is legally liable,
including but not limited to officers, agents, employees or subconsultants of
Consultant.
6.2 Standard Indemnification Provisions. Consultant agrees to obtain
executed indemnity agreements with provisions identical to those set forth herein
this section from each and every subconsultant or any other person or entity
involved by, for, with or on behalf of Consultant in the performance of this
agreement. In the event Consultant fails to obtain such indemnity obligations from
others as required herein, Consultant agrees to be fully responsible according to the
Last revised 5-20-14 11
77
terms of this section. Failure of City to monitor compliance with these
requirements imposes no additional obligations on City and will in no way act as a
waiver of any rights hereunder. This obligation to indemnify and defend City as set
forth herein is binding on the successors, assigns or heirs of Consultant and shall
survive the termination of this agreement or this section.
a. Indemnity Provisions for Contracts Related to Construction.
Without affecting the rights of City under any provision of this agreement,
Consultant shall not be required to indemnify and hold harmless City for liability
attributable to the active negligence of City, provided such active negligence is
determined by agreement between the parties or by the findings of a court of
competent jurisdiction. In instances where City is shown to have been actively
mdfkhfdms `mc vgdqd BhsxŬr `bshud mdfkhfence accounts for only a percentage of the
liability involved, the obligation of Consultant will be for that entire portion or
percentage of liability not attributable to the active negligence of City.
b. Indemnification Provision for Design Professionals.
1. Applicability of Section 6.2(b). Notwithstanding Section
6.2(a) hereinabove, the following indemnification provision shall apply to
Bnmrtks`msr vgn bnmrshstsd Ůcdrhfm oqnedrrhnm`krů `r sgd sdql hr cdehmdc hm
paragraph 3 below.
2. Scope of Indemnification. To the fullest extent permitted by
law, Consultant shall indemnify, defend, and hold harmless City `mc BhsxŬr `fdmsr+
officers, officials, employees, representashudr+ `mc cdo`qsldmsr 'ŮHmcdlmhehdc
O`qshdrů( eqnl `mc `f`hmrs `mx `mc `kk bk`hlr+ losses, liabilities of every kind, nature
and description, damages, injury (including, without limitation, injury to or death of
an employee of Consultant or subconsultants), costs and expenses of any kind,
whether actual, alleged or threatened, including, without limitation, incidental and
consequential damages, court costs, attorndxrŬ eddr+ khshf`shnm dwodmrdr+ `mc eddr
of expert consultants or expert witnesses incurred in connection therewith and
costs of investigation, that arise out of, pertain to, or relate to, directly or
indirectly, in whole or in part, the negligence, recklessness, or willful misconduct of
Consultant, any subconsultant, anyone directly or indirectly employed by them or
anyone that they control.
3. Design Professional Defined. As used in this Section 6.2(b),
sgd sdql Ůcdrhfm oqnedrrhnm`ků rg`kk ad khlited to licensed architects, registered
professional engineers, licensed professional land surveyors and landscape
architects, all as defined under current law, and as may be amended from time to
time by Civil Code § 2782.8.
Last revised 5-20-14 12
78
7.0 RECORDS AND REPORTS.
7.1 Reports. Consultant shall periodically prepare and submit to the Contract
Officer such reports concerning Consultant's performance of the services required
by this Agreement as the Contract Officer shall require. Quarterly reports shall be
submitted by Consultant and shall be prepared in a manner that is appropriate for
th
City Council review. Quarterly reports shall be due on or about the 15 of
September 2014, December 2014, March 2015, June 2015.
7.2 Records. Consultant shall keep such books and records as shall be
necessary to perform the services required by this Agreement and enable the
Contract Officer to evaluate the cost and the performance of such services. Books
and records pertaining to costs shall be kept and prepared in accordance with
generally accepted accounting principals. The Contract Officer shall have full and
free access to such books and records at all reasonable times, including the right to
inspect, copy, audit, and make records and transcripts from such records.
7.3 Ownership of Documents. Originals of all drawings, specifications,
reports, records, documents and other materials, whether in hard copy or electronic
form, which are prepared by Consultant, its employees, subcontractors and agents
in the performance of this Agreement, shall be the property of City and shall be
delivered to City upon termination of this Agreement or upon the earlier request of
the Contract Officer, and Consultant shall have no claim for further employment or
additional compensation as a result of the exercise by City of its full rights of
ownership of the documents and materials hereunder. Consultant shall cause all
subcontractors to assign to City any documents or materials prepared by them, and
in the event Consultant fails to secure such assignment, Consultant shall indemnify
City for all damages suffered thereby.
In the event City or any person, firm or corporation authorized by City reuses
said documents and materials without written verification or adaptation by
Consultant for the specific purpose intended and causes to be made or makes any
changes or alterations in said documents and materials, City hereby releases,
discharges, and exonerates Consultant from liability resulting from said change.
The provisions of this clause shall survive the completion of this Contract and shall
thereafter remain in full force and effect.
7.4 Release of Documents. The drawings, specifications, reports, records,
documents and other materials prepared by Consultant in the performance of
services under this Agreement shall not be released publicly without the prior
written approval of the Contract Officer or as required by law. Consultant shall not
disclose to any other entity or person any information regarding the activities of
City, except as required by law or as authorized by City.
Last revised 5-20-14 13
79
8.0 ENFORCEMENT OF AGREEMENT.
8.1 California Law. This Agreement shall be construed and interpreted both
as to validity and to performance of the parties in accordance with the laws of the
State of California. Legal actions concerning any dispute, claim or matter arising
out of or in relation to this Agreement shall be instituted in the Superior Court of
the County of Riverside, State of California, or any other appropriate court in such
county, and Consultant covenants and agrees to submit to the personal jurisdiction
of such court in the event of such action.
8.2 Disputes. In the event of any dispute arising under this Agreement, the
injured party shall notify the injuring party in writing of its contentions by
submitting a claim therefore. The injured party shall continue performing its
obligations hereunder so long as the injuring party commences to cure such default
within ten (10) days of service of such notice and completes the cure of such
default within forty-five (45) days after service of the notice, or such longer period
as may be permitted by the Contract Officer; provided that if the default is an
immediate danger to the health, safety and general welfare, City may take such
immediate action as City deems warranted. Compliance with the provisions of this
section shall be a condition precedent to termination of this Agreement for cause
and to any legal action, and such compliance shall not be a waiver of any party's
right to take legal action in the event that the dispute is not cured, provided that
nothing herein shall limit City's right to terminate this Agreement without cause
pursuant to Section 8.7.
8.3 Retention of Funds. City may withhold from any monies payable to
Consultant sufficient funds to compensate City for any losses, costs, liabilities, or
damages it reasonably believes were suffered by City due to the default of
Consultant in the performance of the services required by this Agreement.
8.4 Waiver. No delay or omission in the exercise of any right or remedy of a
non defaulting party on any default shall impair such right or remedy or be
construed as a waiver. City's consent or approval of any act by Consultant
requiring City's consent or approval shall not be deemed to waive or render
unnecessary City's consent to or approval of any subsequent act of Consultant.
Any waiver by either party of any default must be in writing and shall not be a
waiver of any other default concerning the same or any other provision of this
Agreement.
8.5 Rights and Remedies are Cumulative. Except with respect to rights and
remedies expressly declared to be exclusive in this Agreement, the rights and
remedies of the parties are cumulative and the exercise by either party of one or
more of such rights or remedies shall not preclude the exercise by it, at the same or
Last revised 5-20-14 14
80
different times, of any other rights or remedies for the same default or any other
default by the other party.
8.6 Legal Action. In addition to any other rights or remedies, either party
may take legal action, at law or at equity, to cure, correct or remedy any default,
to recover damages for any default, to compel specific performance of this
Agreement, to obtain injunctive relief, or to obtain any other remedy consistent
with the purposes of this Agreement.
8.7 Termination Prior To Expiration Of Term. This section shall govern any
termination of this Agreement, except as specifically provided in the following
Section 8.8 for termination for cause. City reserves the right to terminate this
Agreement at any time, with or without cause, upon thirty (30) days' written
notice to Consultant. Upon receipt of any notice of termination, Consultant shall
immediately cease all services hereunder except such as may be specifically
approved by the Contract Officer. Consultant shall be entitled to compensation for
all services rendered prior to receipt of the notice of termination and for any
services authorized by the Contract Officer thereafter in accordance with the
Schedule of Compensation or such as may be approved by the Contract Officer,
except as provided in Section 8.3.
8.8 Termination for Default of Consultant. If termination is due to the failure
of Consultant to fulfill its obligations under this Agreement, City may, after
compliance with the provisions of Section 8.2, take over work and prosecute the
same to completion by contract or otherwise, and Consultant shall be liable to the
extent that the total cost for completion of the services required hereunder exceeds
the compensation herein stipulated (provided that City shall use reasonable efforts
to mitigate such damages), and City may withhold any payments to Consultant for
the purpose of setoff or partial payment of the amounts owed City as previously
stated in Section 8.3.
8.9 Attorneys' Fees. If either party commences an action against the other
party arising out of or in connection with this Agreement, the prevailing party shall
be entitled to recover reasonable attorneys' fees and costs of suit from the losing
party.
9.0 CITY OFFICERS AND EMPLOYEES; NONDISCRIMINATION.
9.1 Non-liability of City Officers and Employees. No officer or employee of
City shall be personally liable to Consultant, or any successor in interest, in the
event or any default or breach by City or for any amount which may become due to
Consultant or to its successor, or for breach of any obligation of the terms of this
Agreement.
Last revised 5-20-14 15
81
9.2 Conflict of Interest. No officer or employee of City shall have any
personal interest, direct or indirect, in this Agreement nor shall any such officer or
employee participate in any decision relating to the Agreement which affects his or
her personal interest or the interest of any corporation, partnership or association in
which she or he is, directly or indirectly, interested, in violation of any State statute
or regulation. Consultant warrants that it has not paid or given and will not pay or
give any third party any money or general consideration for obtaining this
Agreement.
9.3 Covenant against Discrimination. Consultant covenants that, by and for
itself, its heirs, executors, assigns, and all persons claiming under or through them,
that there shall be no discrimination against or segregation of, any person or group
of persons on account of race, color, creed, religion, sex, marital status, national
origin or ancestry in the performance of this Agreement. Consultant shall take
affirmative action to insure that applicants are employed and that employees are
treated during employment without regard to their race, color, creed, religion, sex,
marital status, national origin or ancestry.
10.0 MISCELLANEOUS PROVISIONS
10.1 Notice. Any notice, demand, request, consent, approval, communication
either party desires or is required to give the other party or any other person shall
be in writing and either served personally or sent by prepaid, first-class mail to the
address set forth below. Either party may change its address by notifying the other
party of the change of address in writing. Notice shall be deemed communicated
forty-eight (48) hours from the time of mailing if mailed as provided in this section.
To City: To Consultant:
CITY OF LA QUINTA JNS MEDIA
Attention: Frank Spevacek, Attention: Garry Sage
City Manager President/CEO
78-495 Calle Tampico 78100 Main Street, Suite 202
La Quinta, California 92253 La Quinta, California, 92253
10.2 Integrated Agreement. This Agreement contains all of the agreements of
the parties and all previous understanding, negotiations and agreements are
integrated into and superseded by this Agreement.
10.3 Amendment. This Agreement may be amended at any time by the
mutual consent of the parties by an instrument in writing signed by both parties.
10.4 Severability. In the event that any one or more of the phrases,
sentences, clauses, paragraphs, or sections contained in this Agreement shall be
declared invalid or unenforceable by a valid judgment or decree of a court of
Last revised 5-20-14 16
82
competent jurisdiction, such invalidity or unenforceability shall not affect any of the
remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement
which are hereby declared as severable and shall be interpreted to carry out the
intent of the parties hereunder.
10.5 Authority. The persons executing this Agreement on behalf of the
parties hereto warrant that they are duly authorized to execute this Agreement on
behalf of said parties and that by so executing this Agreement the parties hereto
are formally bound to the provisions of this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
dates stated below.
CITY OF LA QUINTA a California municipal corporation
______________________________
Frank J. Spevacek, City Manager Date
ATTEST:
______________________________________
Susan Maysels, City Clerk
APPROVED AS TO FORM:
___________________________________
M. Katherine Jenson, City Attorney
JNS MEDIA
By: _____________
Name:
Title:
Date:_ __________________
Last revised 5-20-14 17
83
84
Exhibit A
Scope of Services
Marketing Budget/Plan
Consultant will develop a budget that includes a strategic media plan that will
support local businesses and improve tourism to La Quinta. The plan will contain
specific information on research, demographics, and how Consultant will plan,
coordinate, oversee, and manage all print and electronic advertising/marketing
efforts including, but not limited to media placement, recommendations,
optimizations, reporting, and verifying insertion of approved media advertising.
Marketing plan will include but not limited to Print, Television, Radio, Billboards,
etc. A portion of the marketing plan will be to support Shoulder Season Events,
CVB Co-op opportunities, local co-op opportunities, local and regional messaging..
Print and Electronic
Consultant will research print media, television, and radio media to best reach
predetermined target audience.
Print Media will include regional publications such as: LA Magazine, San Diego
Magazine, Inland Empire Magazine, and OC Magazine and local publications such
as: The Desert Sun, Travel Host Magazine, Palm Springs Life, etc. Consultant will
also develop an airport display in a high-traffic area to capture fly market tourists.
Television will include: Time Warner Cable on such Networks for Women 35+ as
Bravo, Lifetime, WE, A & E, Food, E, HGTV, Oxygen, Own, ABC Family. Networks
for Men 35+ include: FOX News, CNN, MSNBC, ESPN, FOX Sports, AMC, FX,
history, TNT, TBS. To reach the Millennial target group networks such as MTV,
Animal Planet, Discovery, ESPN, FOX Sports, Spike, Game Show Network, Music
Choice, Nick at Nite, SYFI).
Radio will include CBS Radio in regional drive market. This plan will include FREE
Live Mentions talking about the experience tourists will receive by visiting the Gem
ne sgd Cdrdqs ŮK` Pthms`-ů Sgdx vill also promote Events through these live
mentions.
Last revised 5-20-14 18
85
Building the Audience
The goals of this campaign are as follows:
1.Coordinate with Graphtek Interactive to l`hms`hm sgd Bhsx ne K` Pthms`Ŭr
messaging.
2.Create awareness
3.Inspire Consumers to make a trip to La Quinta
4.Engage audiences that support the assets in La Quinta
a.Outdoor Adventure (Hiking, Biking, etc.)
b.Health and Wellness
c.Arts & Culture
d.Events
Creative
Consultant will develop creative compatible and consistent with online creative that
depicts the essence of La Quinta. Creative will be designed to showcase the wide
array of activities and experiences for residents and tourists.
Creative will include the development of a new Tourism/Events Brochure promoting
tobnlhmf ŮRhfm`stqd Dudmsr+ů knb`k duents, on-going local programs at museum,
library, farmers market, and other community programs. Consultant will produce
and distribute this brochure to hotels, visitor centers, etc. around the Coachella
Valley.
Monitoring & Reporting
Consultant will implement a monitoring system and will provide a Monthly,
Quarterly, and an Annual report showing the effectiveness of campaigns.
86
Exhibit B
Schedule of Compensation
With the exception of compensation for Additional Services, provided for in
Section 2.2 of this Agreement, the maximum total compensation to be paid to
Consultant under this Agreement is not to exceed One Hundred Ten Thousand
Dollars ($110,000( 'ŮBnmsq`bs Rtlů(- Sgd Bnmsq`bs Rtl rg`kk ad o`hc sn
Consultant in installment payments made on a monthly basis and in an amount
identified in Consultants Schedule of Compensation attached hereto for the work
tasks performed and properly invoiced by Consultant in conformance with Section
2.2 of the Agreement.
Last revised 5-20-14 20
87
88
Exhibit C
Schedule of Performance
Consultant shall complete all services within the term of this Agreement.
89
Exhibit D
Special Requirements
None.
90
AGENDA CATEGORY:
June 17, 2014
CITY / SA / HA / FA MEETING DATE:
BUSINESS SESSION:
: RECEIVE AND FILE TREASURER'S REPORT
ITEM TITLE
CONSENT CALENDAR:
11
DATED MARCH 31, 2014
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Receive and file.
EXECUTIVE SUMMARY:
the Investment Advisory Board
and the City Council for review.
This report summarizes all cash and investments of the City, Successor Agency,
Housing Authority, and Financing Authority.
There is sufficient investment liquidity and anticipated revenues available to
FISCAL IMPACT:
None.
BACKGROUND/ANALYSIS:
(Attachment 1) is submitted monthly to the City Council as
required by the California Government Code and City Municipal Code. It certifies that
all pooled investments are reported accurately and fairly in compliance
with the applicable codes and also certifies that there is sufficient investment liquidity
Due
to the fact that the City pools all cash and investments, this report combines all City
entities including the Successor Agency, Financing Authority, and Housing Authority.
91
The investment portfolio decreased by $5.3 million and ended the month at $111
million. The primary reason for the decrease was due to the following large payments:
Capital Improvements $707,000
Debt Service $3.2 million
Cash Disbursements $1.3 million
During the month, the Local Agency Investment Fund account remained the same at
$31.8 million. Treasury bills in the amount of $12.0 million matured and were placed
in a Mutual Fund Account at U.S. Bank.
Overall portfolio performance remained stable from the previous month, earning .30%.
ALTERNATIVES:
None.
Report prepared by: Rita Conrad, Finance Director
Report approved for submission by: Frank J. Spevacek, City Manager
Attachment:
92
ATTACHMENT 1
93
94
Exceptions
NoneNoneNoneNoneNoneNoneNoneNoneNone
agencies or assets of $500 million
at least Standard & Poors "AA"
and investor SEC licensed > 5 yrs
Standard & Poors/Moody's
AAA by two of three rating
95
Credit Quality
FDIC InsuredFDIC Insured
A-1, P-1
Unrated
10 years
10 years 3 years 3 years
90 days
Maximum
Maturity
3 years60 days
3 years5 years3 years
$50,000,000 per account$30,000,000 per account
<=$250,000 per institution<=$250,000 per institution
$10,000,000 per Issuer
Except no more than $8 million may be invested over Restricted to per-issuer limits
Maintain $1 per share
$30.0 million$25.0 million$20.0 million$20.0 million$95.0 million
Restrictions
par value.
Utilize DVPUtilize DVP
below:
2 years
15%
(10,000,000)(25,000,000)(2,000,000)(20,000,000)(57,000,000)
Over (Under)
-100.00%
Surplus
-80.63%-60.00%-15.00%-10.00%-10.00%-10.00%
28.13%
-1.20%
N/A
n/a
$
$
--
20,000,00018,000,00038,000,000
Surplus
28.80%48.13%81.00%
4.37%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
%
$
30,000,00025,000,00020,000,00020,000,000
95,000,000
Maximum
Surplus
100.00%
85.00%60.00%30.00%15.00%10.00%30.00%10.00%10.00%
N/A
20%
(10,000,000)(23,000,000)(2,000,000)(20,000,000)(55,000,000)(5,000,000)(5,000,000)(10,000,000)(10,000,000)
All Funds
-100.00%
-82.21%-58.48%-15.00%-20.00%-10.00%-10.00%
Over (Under)10.72%
-1.21%
N/A
n/a
00
The City Treasurer will be permitted to invest in the following types of investments subject to the maximum
-$ - -
20,000,0002,000,00018,000,00040,000,000
All Funds
Actual %100.00%
36.17%28.79%30.72%
2.79%1.52%0.00%0.00%0.00%0.00%0.00%
$
95,000,0005,000,000
5,000,0000.436%0.020%0.304%
30,000,00025,000,00020,000,00020,000,00010,000,00010,000,000
All Funds
Maximum
100.00%
85.00%60.00%30.00%15.00%20.00%30.00%10.00%10.00%20.00%
N/A
Investment Agreements for bond proceeds and/or reserve funds.
Government Securities ( except any collateralized mortgage obligation (CMO) or structured note which contains embedded Money market mutual funds regulated by the Securities and
Exchange Commission and whose portfolio consists only of US
Agency Securities maintaining a par value per share of $1.
U.S. Government Sponsored Enterprises and Federal
percentage compliance limits and bid process requirements:
Local Agency Bonds/CA Local Agency Bond Obligations
- Government National Mortgage Association (GNMA) - Federal Home Loan Mortgage Corporation (FHLMC)
All maturities must be less than the maximum allowed.
- Federal Home Loan Bank Notes & Bonds (FHLB)
- Federal National Mortgage Association (FNMA)
PERMISSIBLE DEPOSITS AND INVESTMENTS Annualized Earnings of Pooled Cash InvestmentsAnnualized Earnings of Fiscal Agent Investments
U.S. Treasury Bills, Strips, Notes and Bonds.
Checking/Savings and other time accounts
March 31, 2014
Annualized Earnings of All Investments
Medium Term Corporate Notes - TLGP
Local Agency Investment Fund (LAIF)
Professionally Managed Account
CITY OF LA QUINTA
- Federal Farm Credit (FFCB)
Prime Commercial Paper
Certificate of Deposits
Type of Investments
Total
98
-$ 72,77636,801,13239,955,55640,191,78942,942,099001,440,0003,215,081164,618,433455,40738,010,86239,959,60272,974,9138,998,32111,997,2020724,00016,088,410189,208,717277,22934,7
88,19158,936,59819,991,54719,992,88810,044,211724,00045,298,094190,052,758
JuneJuneJuneJune
$ $
$ $ $ $ $ $
$ $ $
(782,812)
001,680,0002,412,2692,980,8408,997,6509,996,3420724,0003,763,623
39,947,64940,992,19228,000,00039,910,86239,944,84772,968,698
$
-
706,23835,801,132149,539,480179,286,86237,588,19171,930,15219,988,72919,994,86210,053,732969,0001,380,031161,121,885
MayMayMayMay
$
$
$
$ $ $ $ $
$ $ $
39,938,37340,992,80123,000,000001,680,0002,409,320254,70035,510,86239,928,76573,368,1958,996,9569,998,3880724,0003,397,985
$
-
42,116147,563,742172,179,851692,7424,998,261969,0001,380,031154,098,915
39,501,13231,088,19184,921,30119,985,81810,063,571
AprilAprilAprilApril
$ $
$ $
$ $ $ $
$ $ $
00001,680,0003,000,000001,680,0002,490,2599,996,8280724,0003,612,383
31,804,33739,953,82533,928,99339,928,37961,037,947-343,07236,675,65339,912,28758,369,81023,996,161
3,591,157110,958,312214,52137,971,689146,322,795172,944,05010,492,68724,417,85884,911,98519,983,0004,997,14910,073,092969,0001,380,031157,224,802
MarchMarchMarchMarch
$
$ $
$ $ $ $ $
$ $ $ $
31,804,337011,999,46439,952,498001,680,00025,098,87539,919,09361,036,8583,000,000001,680,0009,029,3196,838,07331,975,65339,896,31358,371,96823,998,99614,998,7170724,0003,585,189
5,680,831116,216,005555,859154,992,818180,388,9095,074,3678,998,807969,0001,380,031164,023,437
39,771,68912,617,85894,900,73124,998,58115,084,062
FebruaryFebruaryFebruaryFebruary
$
$ $ $
$ $ $ $
$ $ $ $
0001,680,0000001,200,0002,462,2081,057,9190724,000
31,804,33715,201,84139,951,30018,645,07039,909,51061,035,73739,975,65339,581,01943,970,93323,997,92014,996,53715,983,994
3,557,663110,840,2111,706,69946,871,689153,185,843180,287,9751,159,90417,290,98094,890,56924,997,9928,998,19415,095,061969,0003,593,955166,995,655
January 14January 13January 12January 11
$
$ $ $
$ $ $ $
$ $ $ $
(487,400)
18,793,075030,200,80539,949,973001,680,00012,559,82139,898,49461,033,3800001,200,0002,462,175979,79639,150,98539,563,95043,967,69614,997,6136,999,4270724,00016,132,569
-$ -$
1,931,555105,115,229142,053,474162,516,036926,611969,0003,593,955146,849,776
37,946,82531,373,65594,879,31615,107,239
DecemberDecemberDecemberDecember
$ $
$
$ $ $
$ $ $ $
(374,384)(5,885,412)
17,993,075040,199,48139,948,647001,680,0002,559,79926,246,82539,987,00761,031,070000480,0002,503,903-1,090,19826,650,98439,546,82460,962,43014,996,84205,002,025724,00016,130,247
-$
123,6937,647,081847,9372,791,490688,423956,376814,6152,530,511916,2731,501,366527,528238,667163,1437,755,1092,729,237 2,729,23780,64180,641110,958,312 565,369102,946,371141,237,659162,923,154656,6169
69,000581,796187,244,524
38,897,71923,12692,904 58,386,468 14,151,59033,740,679 49,761,966 10,988,85441,973,65487,990,21739,953,82515,119,416
NovemberNovemberNovemberNovember
TotalsTotals
$
$ $ $
$ $ $
$
$ $ $ $ $
$ $ $ $
$ $ $ $ $
(1,030,761)
15,993,075040,200,51642,947,363001,680,0002,846,26529,646,825000480,0002,497,18713,795,08515,200,98439,527,82060,955,23514,996,09605,008,776724,00016,130,247
-$ -$
4,949,6761,157,48426,3961,658,214 7,791,770 925,976 925,976 1,684,060105,351,279142,557,903166,338,243481,879969,000581,796149,272,528
39,972,42970,992,22344,123,65587,984,99815,131,200
Project Area
OctoberOctoberOctoberOctober
$ $
$ $ $
2
$ $
$ $ $
$ $ $ $
(5,911,808)(240,460)
17,624,53739,966,84440,199,15242,946,036001,680,0003,436,04626,519,00539,955,73770,986,31104,999,7210480,0002,540,266249,77817,278,74539,514,61572,949,19514,995,32505,015,752724,00016,767,608
--
$ $
9,201,9146,597,6251,803,261 1,803,261 697,949146,550,564347,529145,828,569167,495,018969,000581,796151,335,255
32,082,465 41,970,196 46,914,61287,966,92915,143,378
Project Area
SeptemberSeptemberSeptemberSeptember
80,641.00
1
$ $
$
$ $ $
$
$ $ $
$ $ $ $
18,824,53739,964,50440,196,75042,944,752001,680,00015,671,31117,769,00539,941,36770,986,3188,999,7094,999,0250480,00015,464,8379,976,52817,978,74515,007,11458,947,72219,997,3714,997,43310,024,534724,
00045,258,832
-$ -$
648,459159,930,313787,300159,427,561182,912,279969,000581,790163,513,493
11,536,39937,314,61397,956,52815,155,163
AugustAugustAugustAugust
$ $
$ $ $ $
$ $ $ $
(524,579)(519,652)
001,440,0003,215,1168,999,0150724,000281,578724,000
34,424,53739,962,56440,194,27142,943,42637,144,00539,975,73572,981,33411,998,60516,025,08621,378,74510,001,05158,942,15919,994,45919,992,88810,034,37345,287,175
-$
437,484162,617,398187,323,201186,636,42847,314,61397,935,01118,999,29815,167,340969,000581,790180,447,400
July 13July 12July 11July 10
$ $
$
$ $ $ $
$ $ $ $
Distribution of Cash & Investments & Balances
U.S. Government Sponsored EnterprisesU.S. Government Sponsored EnterprisesU.S. Government Sponsored EnterprisesU.S. Government Sponsored Enterprises
Distribution of Cash & Investments
Interest bearing active bank depositInterest bearing active bank depositInterest bearing active bank deposit
Low & Moderate Income FundsLow & Moderate Income Funds
Equipment Replacement Fund
Information Technology Fund
Landscape & Lighting Fund
Capital Improvement Funds
Supplemental Pension Plan
Park Equipment & Facility
Prime Commercial PaperPrime Commercial PaperPrime Commercial PaperPrime Commercial Paper
U.S. Treasury Bills/NotesU.S. Treasury Bills/NotesU.S. Treasury Bills/NotesU.S. Treasury Bills/Notes
Certificates of DepositCertificates of DepositCertificates of DepositCertificates of Deposit
Developer Impact fees
Trust & Agency Funds
Financing Authority
Capital Project Fund
Cash & InvestmentsCash & InvestmentsCash & InvestmentsCash & Investments
Successor Agency
Debt Service FundsDebt Service Funds
Art in Public Places Housing Authority
Infrastructure Fund
SilverRock ResortSuccessor Agency
City of La Quinta
Special Revenue
Corporate NotesCorporate NotesCorporate NotesCorporate Notes
Cash Balances
March 31, 2014
Project Funds
General FundMutual FundsMutual FundsMutual FundsMutual Funds
Quimby Fund
Interest Fund
State PoolState PoolState PoolState Pool
Subtotal Subtotal Subtotal Subtotal
Gas Tax
AB 939
Total
TotalTotalTotalTotal
TypeTypeTypeType
City
99
116,216,00512,082,937(15,252,819)(2,089,674)1,863110,958,312
$
to Maturityto Maturity
0.061%0.061%
YieldYield
3/27/20143/27/2014
DateDate
(2,000,000)(10,000,000)(3,252,819)(15,252,819)(2,089,674)
10012,082,837 12,082,9371,863
PrincipalPrincipal
$
$
Reinvested Interest Income - Quarterly
Mutual Fund Purchases
TypeType
Mutual Fund Interest
US TreasuryUS Treasury
Bond Draw
City, Successor Agency and Financing Authority
Unamortized Premium/Discount Change
Unamortized Premium/Discount change
Checking & Savings - Net Change
Checking & Savings - Net Change
Total Investments Sold/Matured
Summary of Investment Activities
Total Investments Purchased
Plus : Investments Purchased
Prior Month Ending Balance
Investments Sold/Matured
Investments Purchased
Less: Investments Sold
Month Ending Balance
Investment Change
City of La Quinta
March 31, 2014
LAIF - City
US BankUS Bank
NameName
T BillT Bill
City of La Quinta
Comparative Rates of Interest
March 31, 2014
City of La Quinta
Commercial Paper
Annualized EarningsAverageTreasury Bills/NoteThree Month
YearMonthPooled Cash Fiscal Agent OverallMaturity (days)Three Month Six Month One Year Two Year Non-FinancialLAIF Rate
FY 09/10July 20090.69%0.30%0.65%1110.19%0.28%0.47%1.00%0.28%1.04%
August 20090.64%0.30%0.61%920.16%0.26%0.46%1.00%0.24%0.93%
Sept 20090.56%0.31%0.53%1120.12%0.19%0.41%1.00%0.19%0.75%
Oct 20090.52%0.31%0.50%900.08%0.19%0.38%1.00%0.19%0.65%
Nov 20090.56%0.31%0.53%1520.04%0.14%0.32%0.75%0.15%0.61%
Dec 20090.56%0.15%0.51%2390.11%0.20%0.16%1.00%0.16%0.57%
Jan 20100.46%0.15%0.43%1790.06%0.14%0.34%0.88%0.13%0.56%
Feb 20100.51%0.16%0.48%1620.13%0.19%0.32%0.88%0.15%0.58%
Mar 20100.50%0.16%0.47%1720.15%0.24%0.38%1.00%0.20%0.55%
Apr 20100.52%0.16%0.48%1620.15%0.24%0.49%1.00%0.23%0.59%
May 20100.52%0.16%0.48%1160.17%0.22%0.37%0.75%0.28%0.56%
June 20100.44%0.02%0.30%1340.16%0.22%0.32%0.63%0.32%0.53%
FY 10/11July 20100.50%0.15%0.47%1190.16%0.20%0.30%0.63%0.28%0.53%
August 20100.49%0.15%0.46%1080.15%0.19%0.26%0.38%0.25%0.51%
Sept 20100.55%0.15%0.51%1070.16%0.19%0.27%0.38%0.24%0.50%
Oct 20100.55%0.15%0.51%880.13%0.17%0.23%0.38%0.23%0.48%
Nov 20100.53%0.15%0.49%840.18%0.21%0.28%0.50%0.23%0.45%
Dec 20100.57%0.14%0.52%2650.15%0.19%0.30%0.63%0.23%0.46%
Jan 20110.51%0.14%0.43%2060.16%0.18%0.28%0.63%0.24%0.54%
Feb 20110.55%0.17%0.46%2100.15%0.17%0.31%0.63%0.23%0.51%
Mar 20110.54%0.17%0.45%2180.05%0.13%0.26%0.75%0.23%0.50%
Apr 20110.59%0.17%0.48%1920.05%0.10%0.28%0.63%0.20%0.59%
May 20110.48%0.17%0.41%1560.06%0.12%0.20%0.50%0.16%0.41%
June 20110.53%0.00%0.35%1260.03%0.10%0.20%0.38%0.15%0.45%
FY 11/12July 20110.53%0.00%0.35%1120.07%0.12%0.15%0.20%0.14%0.38%
August 20110.60%0.00%0.38%1020.02%0.05%0.10%0.13%0.16%0.41%
Sept 20110.58%0.03%0.39%1240.02%0.06%0.09%0.13%0.14%0.38%
Oct 20110.53%0.03%0.35%1170.01%0.06%0.12%0.25%0.15%0.39%
Nov 20110.52%0.03%0.37%940.03%0.07%0.10%0.25%0.14%0.40%
Dec 20110.48%0.03%0.35%860.02%0.06%0.11%0.13%0.14%0.39%
Jan 20120.45%0.03%0.34%740.05%0.08%0.11%0.25%0.14%0.39%
Feb 20120.49%0.05%0.36%720.12%0.15%0.17%0.25%0.17%0.39%
Mar 20120.44%0.05%0.34%740.08%0.14%0.19%0.25%0.18%0.38%
Apr 20120.44%0.09%0.35%610.10%0.15%0.19%0.25%0.20%0.37%
May 20120.43%0.09%0.34%620.09%0.14%0.19%0.25%0.19%0.36%
June 20120.38%0.08%0.29%470.10%0.15%0.21%0.25%0.21%0.36%
FY 12/13July 20120.41%0.08%0.31%1120.11%0.15%0.18%0.22%0.22%0.36%
August 20120.41%0.08%0.29%310.11%0.14%0.20%0.25%0.20%0.38%
Sept 20120.43%0.09%0.33%340.11%0.14%0.18%0.25%0.20%0.35%
Oct 20120.47%0.10%0.36%220.13%0.16%0.18%0.25%0.19%0.34%
Nov 20120.48%0.10%0.36%1610.10%0.15%0.18%0.25%0.20%0.32%
Dec 20120.47%0.10%0.36%1370.08%0.12%0.16%0.13%0.20%0.33%
Jan 20130.44%0.10%0.34%1110.08%0.11%0.14%0.25%0.16%0.30%
Feb 20130.37%0.10%0.29%1050.13%0.14%0.15%0.25%0.17%0.29%
Mar 20130.39%0.09%0.30%1230.08%0.11%0.15%0.25%0.15%0.29%
Apr 20130.31%0.08%0.25%1860.05%0.08%0.14%0.13%0.12%0.26%
May 20130.30%0.06%0.23%1750.05%0.08%0.14%0.25%0.10%0.25%
June 20130.30%0.07%0.23%2120.05%0.09%0.16%0.38%0.10%0.24%
FY 13/14July 20130.28%0.07%0.21%3360.03%0.07%0.12%0.25%0.11%0.27%
August 20130.28%0.06%0.21%3030.03%0.06%0.07%0.14%0.09%0.27%
Sept 20130.30%0.07%0.23%3210.01%0.04%0.01%0.25%0.08%0.26%
Oct 20130.48%0.06%0.31%4270.05%0.08%0.16%0.25%0.11%0.27%
Nov 20130.49%0.06%0.31%4440.05%0.08%0.16%0.25%0.09%0.26%
Dec 20130.49%0.05%0.31%3960.07%0.09%0.14%0.25%0.09%0.26%
Jan 20140.44%0.05%0.32%3810.04%0.06%0.13%0.38%0.09%0.24%
Feb 20140.44%0.03%0.30%3570.05%0.08%0.12%0.25%0.10%0.24%
Mar 20140.44%0.02%0.30%3520.05%0.07%0.12%0.38%0.10%0.24%
100
101
March'14
Two Year Treasury Note Rate
February'14
Six Month Treasury Bill Rate
January'14
Annualized Earnings of All Investments
Months
December'13
Annualized Earnings of Fiscal Agent Investments
November'13
October 2013 through March 2014
Annualized Earnings of Pooled Cash Investments
Chart of Interest Rates
City of La Quinta
October'13
Percent
0.60%0.50%0.40%0.30%0.20%0.10%0.00%
102
AGENDA CATEGORY:
June 17, 2014
CITY / SA / HA / FA MEETING DATE:
BUSINESS SESSION:
RECEIVE AND FILE REVENUE AND
ITEM TITLE:
CONSENT CALENDAR:
12
EXPENDITURE REPORTS DATED MARCH 31, 2014
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Receive and file.
EXECUTIVE SUMMARY:
Revenue and expenditure reports are submitted monthly to City Council for
review.
The reports summarize year-to-date revenues and expenditures of the City.
FISCAL IMPACT:
None.
BACKGROUND/ANALYSIS:
The Statements of Revenues and Expenditures for the City are submitted to the City
Council monthly to review, receive, and file. The March 31, 2014 Statements of
Revenues and Expenditures are attached (Attachments 1 and 2, respectively).
Revenues received for all funds through March 31, 2014, are at approximately $41.3
million or 27.2 percent of the budgeted amount of $150.2 million. Revenues are not
received uniformly throughout the fiscal year, which accounts for the low percentage
for the first six months of the fiscal year. This is why the City maintains a cash-flow
reserve as part of its overall reserves; the cash-flow reserve covers City expenses until
a bulk of the municipal revenues are paid to the City. The cash-flow reserve is then
replenished.
103
Expenditures for all funds are at 20.9 percent of their budgeted amounts. Due to
timing differences in billing from various vendors, the expenditures are also below the
budgeted amounts.
ALTERNATIVES:
None.
Report prepared by: Rita Conrad, Finance Director
Report approved for submission by: Frank J. Spevacek, City Manager
Attachments: 1. Revenue Reports for March 31, 2014
2. Expenditure Reports for March 31, 2014
104
105
106
107
108
109
110
111
112
113
114
115
116
AGENDA CATEGORY:
June 17, 2014
CITY / SA / HA / FA MEETING DATE:
BUSINESS SESSION:
APPROVE CONTRACT SERVICES
ITEM TITLE:
AGREEMENT WITH THE LA QUINTA CHAMBER OF
CONSENT CALENDAR:
13
COMMERCE
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Approve a Contract Services Agreement with the La Quinta Chamber of Commerce
and authorize the City Manager to execute the agreement.
EXECUTIVE SUMMARY:
The La Quinta Chamber of Commerce (Chamber) provides support to
businesses in La Quinta.
The City has contracted with the Chamber since 1991 to support their
business development and retention, and tourism promotion initiatives.
This year, the Contract Services Agreement (Attachment 1) includes
measurable objectives regarding economic and business development
FISCAL IMPACT:
The budget for Chamber services for Fiscal Year 2014/2015 is $127,500. The
Chamber will provide the following specific services:
Business Retention/Promotion and Economic Development $25,000
Sgd FDL Community Newsletter (10 City inserts) $89,000
Sgd UhrhsnqŬr Bdmsdq $8,500
Annual Financial Review $5,000
BACKGROUND/ANALYSIS:
The City has been entering into an annual agreement with the La Quinta Chamber
of Commerce since Fiscal Year 1991/1981- Sgd BhsxŬr ehm`mbh`k bnllhsldms
allows both entities to support La Quinta businesses. As part of their business
development and retention and tourism promotion, the Chamber offers the
117
following:
Resources for local businesses, including networking and advertising
opportunities.
The GEM, a monthly newsletter mailed to residents.
The Hot Rod and Custom Car Show and Taste of La Quinta events
The La Quinta Visitor Center.
This year the scope of work in the agreement includes measurable objectives for
the Chamber regarding economic and business development. These new objectives
include:
Visit new and existing businesses and provide business outreach and solicit
feedback on City services.
Coordinate an information exchange with commercial brokers and the City
Council Economic Development sub-committee and provide useful
information to attract new retail enterprises.
Create a Chief Executive Officer Forum to establish dialog among small and
medium sized business owners.
Support and promote local business retention programs through e-commerce
and summer discount programs.
Improve the aesthetics of the K` Pthms` UhrhsnqŬr Bdmsdq-
Per the agreement, the Chamber is to submit a full audit every three years, and an
annual financial review in the interim years. Next fiscal year a full audit of the
organization will be completed. Once submitted, staff will report to City Council
any major findings.
The Chamber of Commerce also has a Facility Rental Agreement with the City for
office space at the Library. The Chamber is in discussions with City staff regarding
the rental of office space at City Hall this fall. Once this is underway, Chamber
and City staff will work together to improve the appearance of the new La Quinta
Visitor Center.
ALTERNATIVES:
Make modifications to the funding level of the Agreement.
Report prepared by: Tustin Larson, Recreation Supervisor
Report approved for submission by: Edie Hylton, Community Services Director
Attachment: 1. Contract Services Agreement
118
ATTACHMENT 1
CONTRACT SERVICES AGREEMENT
SGHR BNMSQ@BS RDQUHBDR @FQDDLDMS 'sgd Ů@fqddldmsů( hr l`cd `mc
entered into as of, ____________________, 2014 by and between the CITY OF LA
QUINTA, a California municipal corporation 'ŮBhsxů(+ `mc K@ PTHMS@ BG@LADQ NE
BNLLDQBD 'ŮBnmsq`bsnqů(-
RECITALS
A. City desires to utilize the services of Contractor as an independent
contractor to promote the City by encouraging, representing, and retaining
businesses and business activities in the City.
B. Contractor represents that it is fully qualified to perform such services
by virtue of its experience and the training, education and expertise of its principals
and employees.
C. City desires to retain Contractor, and Contractor desires to serve City
to perform these services subject to the terms contained herein and all applicable
local, state and federal laws and regulations.
NOW, THEREFORE, in consideration of the performance by the parties of the
mutual promises, covenants, and conditions contained herein, the parties agree as
follows:
1.0SERVICES OF CONTRACTOR
1.1.Scope of Services. In compliance with all terms and conditions of this
Agreement, Contractor shall promote the City by encouraging, representing, and
retaining businesses and business activities in the City as specified hm sgd ŮRbnod ne
Rdquhbdrů `ss`bgdc gdqdsn `r Dwghahs Ů@ů `nd incorporated herein by this reference
'bnkkdbshudkx+ sgd Ůrdquhbdrů nq Ůvnqjů(- Bontractor warrants that all services will
be performed in a competent, professional, and satisfactory manner in accordance
with the standards prevalent in the industry for such services.
1.2.Compliance with Law. All services rendered hereunder shall be provided in
accordance with all ordinances, resolutions, statutes, rules, regulations and laws of
the City of La Quinta and any Federal, State or local governmental agency of
competent jurisdiction.
1.3.Licenses, Permits, Fees and Assessments. Except as otherwise specified
herein, Contractor shall obtain at its sole cost and expense such licenses, permits
and approvals as may be required by law for the performance of the services
required by this Agreement. Contractor shall be responsible for ensuring that event
vendors have proper permits, licenses, and approvals as may be required by all
applicable laws and ordinances. Contractor shall have the sole obligation to pay for
any fees, assessments and taxes, plus applicable penalties and interest, which may
1
Last Revised 05/20/14
119
be imposed by law and arise from or are necessary for the performance of the
services required by this Agreement.
1.4.Familiarity with Work. By executing this Agreement, Contractor warrants
that (a) it has thoroughly investigated and considered the work to be performed, (b)
it has investigated the site of the work and fully acquainted itself with the
conditions there existing, (c) it has carefully considered how the work should be
performed, and (d) it fully understands the facilities, difficulties and restrictions
attending performance of the work under this Agreement. Should Contractor
discover any latent or unknown conditions materially differing from those inherent
in the work or as represented by City, it shall immediately inform City of such fact
and shall not proceed except at ContractorŬr qhrj tmshk vqhssdm hmrsqtbshnmr `qd
received from the Contract Officer (as defined in Section 4.2 hereof).
1.5.Standard of Care. Contractor acknowledges and understands that the
services and work contracted for under this Agreement require specialized skills
and abilities and that, consistent with this tmcdqrs`mchmf+ Bnmsq`bsnqŬr rdquhbdr `mc
work will be held to a heightened standard of quality and workmanship. Consistent
with Section 1.4 hereinabove, Contractor represents to City that it holds the
necessary skills and abilities to satisfy the heightened standard of work as set forth
in this Agreement. Contractor shall adopt reasonable methods during the life of the
Agreement to furnish continuous protection to the work performed by Contractor,
and the equipment, materials, papers and other components thereof to prevent
losses or damages, and shall be responsible for all such damages, to persons or
property, until acceptance of the work by City, except such losses or damages as
l`x ad b`trdc ax BhsxŬr nvm mdfkhfdmce. The performance of services by
Contractor shall not relieve Contractor from any obligation to correct any
incomplete, inaccurate or defective work at no further cost to City, when such
inaccuracies are due to the negligence of Contractor.
1.6.Special Requirements. Additional terms and conditions of this Agreement, if
`mx+ `qd rds enqsg hm Dwghahs ŮCů 'sgd ŮRodbh`k Qdpthqdldmsrů( vghbg hr hmbnqonq`sdc
herein by this reference and expressly made a part hereof. In the event of a
conflict between the provisions of the Special Requirements and any other
provisions of this Agreement, the provisions of the Special Requirements shall
govern.
2.0COMPENSATION
2.1 Contract Sum. For the services rendered pursuant to this Agreement,
Bnmsq`bsnq rg`kk ad bnlodmr`sdc hm `bbnqc`mbd vhsg Dwghahs ŮAů 'sgd ŮRbgdctkd ne
Bnlodmr`shnmů( hm ` sns`k `lntms ne Nmd Gtmcqdc Svdmsx,Rdudm Sgntr`mc Ehud
Hundred Dollars and Zero Cents ($127,50/-//( 'sgd ŮBnmsq`bs Rtlů( dwbdos `r
provided in Section 1.6. The method of compensation set forth in the Schedule of
Compensation may include a lump sum payment upon completion, payment in
accordance with the percentage of completion of the services, payment for time
and materials based upon Consultant's rate schedule, but not exceeding the
-2-
Last Revised 05/20/14
120
Contract Sum, or such other methods as may be specified in the Schedule of
Compensation. Compensation may include reimbursement for actual and necessary
expenditures for reproduction costs, transportation expense, telephone expense,
and similar costs and expenses when and if specified in the Schedule of
Compensation. Regardless of the method of compensation set forth in the
Rbgdctkd ne Bnlodmr`shnm+ Bnmrtks`msŬr overall compensation shall not exceed the
Contract Sum, except as provided in Sebshnm 0-5 ne sghr @fqddldms+ Ů@cchshnm`k
Rdquhbdr-ů
2.2 Compensation for Additional Services. Additional services approved in
advance by the Contract Manager pursuant to Section 1.6 of this Agreement,
Ů@cchshnm`k Rdquhbdr+ů rg`kk ad o`hc enq hm an amount agreed to in writing by both
City and Consultant in advance of the Additional Services being rendered by
Consultant. Any compensation for Additional Services amounting to five percent
(5%) or less of the Contract Sum may be approved by the Contract Officer. Any
greater amount of compensation for additional services must be approved by the La
Quinta City Council. Under no circumstances shall Consultant receive
compensation for any Additional Services unless prior written approval for the
Additional Services is obtained from the Contract Officer pursuant to Section 1.6 of
this Agreement.
2.3 Method of Billing. Any month in which Consultant wishes to receive
payment, Consultant shall submit to City no later than the tenth (10th) working day
of such month, in the form approved by City's Finance Director, an invoice for
services rendered prior to the date of the invoice. Such invoice shall (1) describe in
detail the services provided, including time and materials, and (2) specify each staff
member who has provided services and the number of hours assigned to each such
staff member. Such invoice shall contain a certification by a principal member of
Consultant specifying that the payment requested is for work performed in
accordance with the terms of this Agreement. City will pay Consultant for all
expenses stated thereon which are approved by City pursuant to this Agreement no
later than thirty (30) days after invoicdr `qd qdbdhudc ax sgd BhsxŬr Ehm`mbd
Department.
3.0PERFORMANCE SCHEDULE
3.1.Time of Essence. Time is of the essence in the performance of this
Agreement.
3.2.Schedule of Performance. All services rendered pursuant to this Agreement
shall be performed diligently and within thd shld odqhnc drs`akhrgdc hm Dwghahs ŮBů
'sgd ŮRbgdctkd ne Odqenql`mbdů(- Dwsdmrhons to the time period specified in the
Schedule of Performance may be approved in writing by the Contract Officer.
3.3.Force Majeure. The time period specified in the Schedule of Performance for
performance of the services rendered pursuant to this Agreement shall be extended
because of any delays due to unforeseeable causes beyond the control and without
-3-
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the fault or negligence of Contractor, including, but not restricted to, acts of God
or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions,
riots, strikes, freight embargoes, acts of any governmental agency other than City,
and unusually severe weather, if Contractor shall notify the Contract Officer in
writing of the causes of the delay. The Contract Officer shall ascertain the facts
and the extent of delay, and extend the time for performing the services for the
period of the forced delay when and if in his or her judgment such delay is justified,
`mc sgd Bnmsq`bs NeehbdqŬr cdsdqlhm`shnm rg`kk ad ehm`k `mc bnmbktrhud tonm sgd
parties to this Agreement.
3.4.Term. Unless earlier terminated in accordance with Section 8.6 of this
Agreement, this Agreement shall commence on July 1, 2014 and terminate on
June 30, 2015.
4.0COORDINATION OF WORK
4.1.Representative of Contractor. The following principals of Contractor are
hereby designated as being the representatives of Contractor authorized to act in
its behalf with respect to the work specified herein and make all decisions in
connection therewith:
a.Douglas W. Motz, Chairman of the Board
Email: dougmotz@yahoo.com
b.Kellie Kennedy, Treasurer
c.Deborah Tryon, Secretary
d.David Archer, President/CEO
Email: david@lqchamber.com
It is expressly understood that the experience, knowledge, capability, and
reputation of the foregoing principals were a substantial inducement for City to
enter into this Agreement. Therefore, the foregoing principals shall be responsible
during the term of this Agreement for directing all activities of Contractor and
devoting sufficient time to personally supervise the services hereunder.
The foregoing principals may not be changed by Contractor and no other
personnel may be assigned to perform the service required hereunder without the
express written approval of City, which approval shall not be unreasonably
withheld.
4.2.Contract Officer. The Contract Officer shall be Frank J. Spevacek, City
Manager or such other person as may be designated in writing by the City Manager
ne Bhsx- Hs rg`kk ad Bnmsq`bsnqŬr qdronmrhahkhsy to assure that the Contract Officer is
kept informed of the progress of the performance of the services and Contractor
shall refer any decisions which must be made by City to the Contract Officer.
Unless otherwise specified herein, any approval of City required hereunder shall
mean the approval of the Contract Officer.
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4.3.Prohibition Against Subcontracting or Assignment. The experience,
knowledge, capability and reputation of Contractor, its principals and employees
were a substantial inducement for City to enter into this Agreement. Except as set
forth in this Agreement, Contractor shall not subcontract with any other entity to
perform in whole or in part the services required hereunder without the express
written approval of Contract Officer. In addition, neither this Agreement nor any
interest herein may be assigned or transferred, voluntarily or by operation of law,
without the prior written approval of City. Any attempted or purported assignment
or sub-contracting by Contractor without sgd BhsxŬr dwoqdrr vqhssdm `ooqnu`k rg`kk
be null, void and of no effect. Notwithstanding this general prohibition, Contractor
shall be permitted to subcontract for the following ancillary services: security
services, fencing, traffic control, food and beverage vendors, parking-related
services, and similar ancillary services which were provided by subcontract in
connection with Chamber events.
4.4.Independent Contractor. Neither City nor any of its employees shall have
any control over the manner, mode or means by which Contractor, its agents or
employees, perform the services required herein, except as otherwise set forth.
Contractor shall perform all services required herein as an independent contractor
of City and shall remain at all times as to City a wholly independent contractor with
only such obligations as are consistent with that role. Contractor shall have no
power to incur any debt, obligation, or liability on behalf of City. Contractor shall
not at any time or in any manner represent that it or any of its agents or employees
are agents or employees of City. Contractor agrees to pay all required taxes on
amounts paid to Contractor under this Agreement, and to indemnify and hold City
harmless from any and all taxes, assessments, penalties, and interest asserted
against City by reason of the independent contractor relationship created by this
Agreement. Contractor shall fully compkx vhsg sgd vnqjdqrŬ bnlodmr`shnm k`vr
qdf`qchmf Bnmsq`bsnq `mc Bnmsq`bsnqŬr dlployees. Contractor further agrees to
indemnify and hold City harmless from any failure of Contractor to comply with
`ookhb`akd vnqjdqrŬ bnlodmr`shon laws. City shall have the right to offset against
the amount of any fees due to Contractor under this Agreement any amount due to
City from Contractor as a result of Contr`bsnqŬr e`hktqd sn oqnloskx o`x sn Bhsx `mx
reimbursement or indemnification arising under this Section 4.4.
4.5.City Cooperation. City shall provide Contractor with any plans, publications,
reports, statistics, records or other data or information pertinent to services to be
performed hereunder which are reasonably available to Contractor only from or
through action by City.
5.0INSURANCE
5.1.Insurance. Prior to the beginning of any Work under this Agreement and
throughout the duration of the term of this Agreement, Contractor shall procure
and maintain, at its sole cost, and submit concurrently with its execution of this
Agreement, insurance as described herein. All insurance coverage required by this
Agreement shall be placed with insurers authorized to do business in the State of
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California with an A,M, Best and Company rating level of A- or better, Class VI or
adssdq+ tmkdrr nsgdqvhrd `ooqnudc ax sgd BhsxŬr Qhrj L`m`fdq hm vqhshmf-
5.1.1. Minimum Coverage. Insurance shall include the following (or broader)
coverage:
a. Insurance Services Office Commercial General Liability coverage
Ůnbbtqqdmbdů enql BF // /0 nq hsr equivalent with an edition date
prior to 2004 and with minimum limits of $1,000,000 per occurrence
and $2,000,000 in the aggregate.
b. Insurance Services Office form number CA 0001 or equivalent
covering Automobile Liability, including hired and non-owned
automobile liability with a minimum limit of $1,000,000 per accident.
If Contractor owns no vehicles, this requirement may be satisfied by a
mnm,nvmdc `mc ghqdc `tsn dmcnqrdldms sn Bnmsq`bsnqŬr bnlldqbh`k
general liability policy.
c. Contractor shall carry Workers' Compensation Insurance
bnlokxhmf vhsg B`khenqmh`Ŭr vnqjdq's compensation laws, including
rs`stsnqx khlhsr enq vnqjdqrŬ bnlodmr`shnm `mc `m DloknxdqŬr Kh`ahkhsx
limit no less than $1,000,000 per accident or disease.
5.1.2. Required Endorsements. Commercial General Liability insurance
policies required to be provided by Contractor hereunder shall contain or be
endorsed to contain the following provisions:
a. City, its employees, officials, agents and member agencies shall
be covered as additional insureds. Coverage shall apply to any and all
liability arising out of Chamber events or related to the Contract.
Additional insured status under the general liability requirement shall
be provided on Insurance Services Office Form CG 20 10 with an
edition date prior to 2004, or its equivalent. Additional insured status
for completed operations shall be provided either in the additional
insured form or through another endorsement such as CG 20 37 with
an edition date prior to 2004.
b. General and automobile liability insurance shall apply separately
to each insured against whom a claim is made or suit is brought,
except with respect to the limits of sgd hmrtqdqŬr kh`ahkhsx- Bnudq`fd
will not be limited to CisxŬr uhb`qhntr kh`ahkhsx-
c. Liability coverage shall be primary and non-contributing with any
insurance maintained by the City.
d. Each policy required hereunder, and the associated evidence of
bnudq`fd 'hmbktchmf sgd vnqjdqrŬ bnlodmr`shnm `mc dloknxdqŬr kh`ahkhsx
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policies), shall provide that coverage shall not be suspended, voided,
canceled or reduced in coverage or in limits except after prior written
notice has been given to City. Such provision shall not include any
limitation of liability of the insurer for failure to provide such notice.
e. No liability insurance coverage provided to comply with this
@fqddldms rg`kk oqnghahs Bnmsq`bsnq+ nq Bnmsq`bsnqŬr employees, or
agents, from waiving the right of recovery prior to a loss. Contractor
waives its right of recovery against City.
5.1.3. No Waiver or Obligation. There shall be no recourse against City for
payment of premiums or other amounts with respect to the insurance
required to be provided by Contractor hereunder. Any failure, actual or
alleged, on the part of City to monitor compliance with these requirements
will not be deemed as a waiver of any rights on the part of City. City has no
additional obligations by virtue of requiring the insurance set forth herein. In
the event any policy of insurance required under this Agreement does not
comply with these requirements or is canceled and not replaced, City has the
right but not the duty to obtain the insurance it deems necessary and any
premium paid by City will be promptly reimbursed by Contractor or City will
withhold amounts sufficient to pay premium from Contractor payments.
5.1.4. Prompt Notice. Contractor agrees to provide immediate notice to City
of any claim or loss against Contractor arising out of the work performed
under this agreement. City assumes no obligation or liability by such notice,
but has the right (but not the duty) to monitor the handling of any such claim
or claims if they are likely to involve City
5.1.5. Subcontractors. Contractor shall include all subcontractors, if any, as
insureds under its policies or shall furnish separate certificates and
endorsements for each subcontractor approved by City. All coverages for
subcontractors, if any, shall be subject to all of the requirements stated
gdqdhm tmkdrr nsgdqvhrd `ooqnudc hm `cu`mbd hm vqhshmf ax BhsxŬr Qhrj
Manager.
6.0INDEMNIFICATION
6.1Indemnification. To the fullest extent permitted by law, Contractor shall
indemnify, protect, defend and hold harmless City and any and all of its officials,
dloknxddr `mc `fdmsr 'ŮHmcdlmhehdc O`qshdrů( eqnl `mc `f`hmrs `mx `mc `kk kh`ahkhsx+
claims, suits, actions arbitration proceedings, administrative proceedings, regulatory
proceedings, losses, expenses or costs of any kind, whether actual, alleged or
threatened, including, without limitation, incidental and consequential damages,
actual attorney fees incurred by City, court costs, interest, defense costs including
fees of expert Contractors or expert witnesses incurred in connection therewith
and any other costs or expenses of any kind whatsoever incurred in relation to, as
a consequence of or arising out of or in any way attributable in whole or in part to
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the performance of this agreement. All obligations under this provision are to be
paid by Contractor as the City incurs them.
6.1.1.Dwbdoshnm sn Bnmsq`bsnqŬr Nakhf`shnm to Indemnify. Without affecting
the rights of City under any provision of this Agreement or this section,
Contractor shall not be required to indemnify and hold harmless City as set
forth above for liability attributable to the sole fault of City, provided such
sole fault is determined by agreement between the parties or by the findings
of a court of competent jurisdiction. This exception will apply only in
instances where City is shown to have been solely at fault and not in
instances where Contractor is solely or partially at fault or in instances where
BhsxŬr e`tks `bbntmsr enq nmkx ` odqbdms`fd ne sgd kh`ahkhsx hmunkudc- Hm sgnrd
instances, the obligation of Contractor will be all-inclusive and City will be
indemnified for all liability incurred, even though a percentage of the liability
is attributable to conduct of the City.
6.1.2.Contractor Acknowledgment. Contractor acknowledges that its
obligation pursuant to this section extends to liability attributable to City, if
that liability is less than the sole fault of City.
6.1.3.Indemnity Provisions for Subcontractors. Contractor agrees to obtain
executed indemnity agreements with provisions identical to those set forth
here in this section from each and every subcontractor, sub tier contractor or
any other person or entity involved by, for, with or on behalf of Contractor in
the performance of this Agreement. In the event Contractor fails to obtain
such indemnity obligations from others as required here, Contractor agrees
to be fully responsible according to the terms of this section.
6.1.4.No Waiver; Survival. Failure of City to monitor compliance with the
requirements of this Section 6.1 imposes no additional obligations on City
`mc vhkk hm mn v`x `bs `r ` v`hudq ne `mx qhfgsr gdqdtmcdq- Bnmsq`bsnqŬr
obligation to indemnify and defend City as a set forth herein is binding on the
successors, assigns, or heirs of Contractor and shall survive the termination
of this Agreement or this section.
6.2.Remedies. In addition to any other remedies City may have if Contractor
fails to provide or maintain any insurance policies or policy endorsements to the
extent and within the time herein required, City may, at its sole option:
a. Obtain such insurance and deduct and retain the amount of the
premiums for such insurance from any sums due under this Agreement.
b. Order Contractor to stop work under this Agreement and/or withhold
any payment(s) which become due to Contractor hereunder until Contractor
demonstrates compliance with the requirements hereof.
c. Terminate this Agreement.
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Exercise of any of the above remedies, however, is an alternative to any
other remedies City may have. The above remedies are not the exclusive remedies
enq Bnmsq`bsnqŬr e`hktqd sn l`hms`hm nq secure appropriate policies or endorsements.
Nothing herein contained shall be construed as limiting in any way the extent to
which Contractor may be held responsible for payments of damages to persons or
oqnodqsx qdrtkshmf eqnl Bnmsq`bsnqŬr nq hsr rtabnmsq`bsnqrŬ odqenql`mbd ne vnqj
under this Agreement.
7.0RECORDS AND REPORTS
7.1.Reports. Contractor shall periodically prepare and submit to the Contract
Officer such reports concerning ContractorŬr odqenql`mbd ne sgd rdquhbdr qdpthqdc
by this Agreement as the Contract Officer shall require.
7.2.Records. Contractor shall keep such books and records as shall be
necessary to perform the services required by this Agreement and enable the
Contract Officer to evaluate the cost and the performance of such services. Books
and records pertaining to costs shall be kept and prepared in accordance with
generally accepted accounting principles. The Contract Officer shall have full and
free access to such books and records at all reasonable times, including the right to
inspect, copy, audit, and make records and transcripts from such records.
7.3.Contractor Ownership of Chamber Events and Related Documents. The
parties agree that: (a) this Agreement is a contract for the performance of the
services by Contractor to City; (b) Chamber events and all documents and other
materials prepared by Contractor in connection therewith are owned by Contractor
and not the City; and (c) City shall have no ownership of Chamber events and such
documents and other materials.
7.4.Release of Documents. The drawings, specifications, reports, records,
documents and other materials prepared by Contractor in the performance of
services under this Agreement shall not be released publicly without the prior
written approval of the Contract Officer or as required by law. Contractor shall not
disclose to any other entity or person any information regarding the activities of
City, except as required by law or as authorized by City.
7.5.Confidentiality. Contractor covenants that all data, documents, discussion,
or other information, if any, developed or received by Contractor or provided for
performance of this Agreement are deemed confidential and shall not be disclosed
by Contractor to any person or entity without prior written authorization by City.
City shall grant such authorization if disclosure is required by law. All City data
shall be returned to City upon the terminathnm ne sghr @fqddldms- Bnmsq`bsnqŬr
covenant under this section shall survive the termination of this Agreement.
Bnmsq`bsnqŬr `tchsdc ehm`mbh`k rs`sdldms qdpthqdc sn ad oqnuhcdc sn sgd Bhsx
pursuant to this Agreement shall not be released to the public unless the release is
required by the California Public Records Act, Government Code section 6250, ds
rdp-+ the Brown Act, Government Code section 54950 ds rdp-+ or pursuant to
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subpoena or court order. Whether the financial statement is required to be
provided to a member of the public is a determination to be made solely be the City
Attorney. If the City receives a request for the financial statement, the City will
promptly notify Contractor and Contractor promptly may: (a) submit any legal
argument it wishes to be reviewed to the City Attorney regarding whether or not
the document is subject to disclosure; or (b) seek a protective order. Contractor
recognizes that the City, by law, generally has only 10 days to respond to a
request under the Public Records Act. Nothing in this paragraph shall prohibit the
City from complying with the Public Records Act or any subpoena or court order in
the manner determined appropriate by the City Attorney. Nothing in this
Agreement shall prohibit the Contract Officer from utilizing the information
contained in the financial statement as he/she deems appropriate in carrying out
his/her official City duties, including, but not limited to, disclosing any information
deemed relevant to the City Council at a public meeting.
8.0ENFORCEMENT OF AGREEMENT
8.1.California Law. This Agreement shall be construed and interpreted both as
to validity and to performance of the parties in accordance with the laws of the
State of California. Legal actions concerning any dispute, claim or matter arising
out of or in relation to this Agreement shall be instituted in the Superior Court of
the County of Riverside, State of California, or any other appropriate court in such
county, and Contractor covenants and agrees to submit to the personal jurisdiction
of such court in the event of such action.
8.2.Disputes. In the event of any dispute arising under this Agreement, the
injured party shall notify the injuring party in writing of its contentions by
submitting a claim therefore. The injured party shall continue performing its
obligations hereunder so long as the injuring party commences to cure such default
within ten (10) days of service of such notice and completes the cure of such
default within forty-five (45) days after service of the notice, or such longer period
as may be permitted by the Contract Officer; provided that if the default is an
immediate danger to the health, safety and general welfare, City may take such
immediate action as City deems warranted. Compliance with the provisions of this
section shall be a condition precedent to termination of this Agreement for cause
and to any legal action, and such complianbd rg`kk mns ad ` v`hudq ne `mx o`qsxŬr
right to take legal action in the event that the dispute is not cured, provided that
mnsghmf gdqdhm rg`kk khlhs BhsxŬr qhfgs sn sdqlhm`sd sgis Agreement without cause.
8.3.Waiver. No delay or omission in the exercise of any right or remedy of a non
defaulting party on any default shall impair such right or remedy or be construed as
` v`hudq- BhsxŬr bnmrdms nq `ooqnu`k ne `mx `bs ax Bnmsq`bsnq qdpthqhmf BhsxŬr
bnmrdms nq `ooqnu`k rg`kk mns ad cddldc sn v`hud nq qdmcdq tmmdbdrr`qx BhsxŬr
consent to or approval of any subsequent act of Contractor. Any waiver by either
party of any default must be in writing and shall not be a waiver of any other
default concerning the same or any other provision of this Agreement.
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8.4.Rights and Remedies are Cumulative. Except with respect to rights and
remedies expressly declared to be exclusive in this Agreement, the rights and
remedies of the parties are cumulative and the exercise by either party of one or
more of such rights or remedies shall not preclude the exercise by it, at the same or
different times, of any other rights or remedies for the same default or any other
default by the other party.
8.5.Legal Action. In addition to any other rights or remedies, either party may
take legal action, at law or at equity, to cure, correct or remedy any default, to
recover damages for any default, to compel specific performance of this
Agreement, to obtain injunctive relief, or to obtain any other remedy consistent
with the purposes of this Agreement.
8.6.Termination Prior to Expiration of Term. This section shall govern any
termination of this Agreement. City reserves the right to terminate this Agreement
at any time, with or without cause, upon thirty (30( c`xrŬ vqhssdm mnshbd sn
Contractor. Upon receipt of any notice of termination, Contractor shall immediately
cease all services hereunder except such as may be specifically approved by the
Contract Officer. Contractor shall be entitled to retain all compensation theretofore
paid to Contractor hereunder.
8.7.@ssnqmdxrŬ Eddr- He dhsgdq o`qsx bnlldmbdr `m `bshnm `f`hmrs sgd nsgdq o`qsx
arising out of or in connection with this Agreement, the prevailing party shall be
dmshskdc sn qdbnudq qd`rnm`akd `ssnqmdxrŬ fees and costs of suit from the losing
party.
9.0CITY OFFICERS AND EMPLOYEES; NONDISCRIMINATION
9.1.Non-liability of City Officers and Employees. No officer or employee of City
shall be personally liable to Contractor, or any successor in interest, in the event or
any default or breach by City or for any amount which may become due to
Contractor or to its successor, or for breach of any obligation of the terms of this
Agreement.
9.2.Conflict of Interest. No officer or employee of City shall have any personal
interest, direct or indirect, in this Agreement nor shall any such officer or employee
participate in any decision relating to the Agreement which affects his or her
personal interest or the interest of any corporation, partnership or association in
which she or he is, directly or indirectly, interested, in violation of any State statute
or regulation. Contractor warrants that it has not paid or given and will not pay or
give any third party any money or general consideration for obtaining this
Agreement.
9.3.Covenant Against Discrimination. Contractor covenants that, by and for
itself, its heirs, executors, assigns, and all persons claiming under or through them,
that there shall be no discrimination against or segregation of, any person or group
of persons on account of race, color, creed, religion, sex, marital status, national
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origin or ancestry in the performance of this Agreement. Contractor shall take
affirmative action to insure that applicants are employed and that employees are
treated during employment without regard to their race, color, creed, religion, sex,
marital status, national origin or ancestry.
10.0MISCELLANEOUS PROVISIONS
10.1.Notice. Any notice, demand, request, consent, approval, communication
either party desires or is required to give the other party or any other person shall
be in writing and either served personally or sent by prepaid, first-class mail to the
address set forth below. Either party may change its address by notifying the other
party of the change of address in writing. Notice shall be deemed communicated
forty-eight (48) hours from the time of mailing if mailed as provided in this section.
To Contractor:
To City:
CITY OF LA QUINTA CHAMBER OF COMMERCE
Attn: Frank J. Spevacek Attn: David Archer
78495 Calle Tampico 78275 Calle Tampico
La Quinta, CA 92253 La Quinta, CA 92253
10.2.Integrated Agreement. This Agreement contains all of the agreements of the
parties and all previous understanding, negotiations and agreements are integrated
into and superseded by this Agreement.
10.3.Exhibits; Precedence. All documents referenced as exhibits in this
Agreement are hereby incorporated in this Agreement. In the event of any material
discrepancy between the express provisions of this Agreement and the provisions
of any document incorporated herein by reference, the provisions of this
Agreement shall prevail except as otherwise provided in Section 1.7.
10.4.Amendment. This Agreement may be amended at any time by the mutual
consent of the parties by an instrument in writing signed by both parties.
10.5.Severability. In the event that any one or more of the phrases, sentences,
clauses, paragraphs, or sections contained in this Agreement shall be declared
invalid or unenforceable by a valid judgment or decree of a court of competent
jurisdiction, such invalidity or unenforceability shall not affect any of the remaining
phrases, sentences, clauses, paragraphs, or sections of this Agreement which are
hereby declared as severable and shall be interpreted to carry out the intent of the
parties hereunder.
10.6.Authority. The persons executing this Agreement on behalf of the parties
hereto warrant that they are duly authorized to execute this Agreement on behalf
of said parties and that by so executing this Agreement the parties hereto are
formally bound to the provisions of this Agreement.
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the
dates stated below.
LA QUINTA CHAMBER OF COMMERCE
CITY OF LA QUINTA,
a California municipal corporation
By:
FRANK J. SPEVACEK, City Manager Name:
Dated: Title:
Dated: _______________________________
ATTEST:
SUSAN MAYSELS, City Clerk
APPROVED AS TO FORM:
M. KATHERINE JENSON, City Attorney
City of La Quinta, California
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Exhibit A
Scope of Services
FISCAL YEAR 2014/2015
The La Quinta Chamber of Commerce shall provide the following support
services per the attached Contract for Services Proposal:
A. Business Retention/Promotion & Economic Development
1. La Quinta Business Contacts & Event Coordination/Support
2. Existing Chamber Member Retention
3. New Member Recruitment to the Chamber
4. Chamber Member Communications
5. New Programs and Events (see below)
New Business Communication
Utilizing the !Mdv! Business License List from the City the Chamber will visit
100% of the !Mdv! ŮQds`hk `mc Qdrs`tq`msů businesses within the City Limits, 45
c`xr eqnl qdbdhos ne sgd ŮKhrsů enq sgd Fiscal Year 2014 - 2015. The Chamber will
meet with the business Owner/Manager, discuss how their business is progressing
and provide an online survey to gather specific information. Results will be tracked
and discussed monthly with City Staff and reported quarterly to City Council.
Existing Business Communication
Utilizing the current Business List from the City of approximately 324 retail and
restaurants, the Chamber will visit 50% of the existing business, which are 40
businesses quarterly for the term of the agreement. The Chamber will meet with
the business Owner/Manager, discuss how their business is doing and provide an
online survey to gather specific information. Results will be tracked and discussed
monthly with City Staff and reported quarterly to City Council.
Semi Annual CEO Forum
Implement and facilitate a Semi Annual CEO Forum inviting key individuals such as
General Managers' and Property Owners. The leaders of growing small and mid-
sized companies confront the constant challenge of constrained resources in the
face of increasing competition. The CEO Forum is formed to address these
strategic issues in a peer group setting. The objective of the Forums is to improve
the performance of their businesses through shared experiences and knowledge.
Each CEO Forum group is comprised of 5 - 8 executives from non-competing
businesses who will meet regularly as an ongoing team as deemed appropriate by
the team members. Results will be tracked and discussed as appropriate with City
Staff and reported quarterly to City Council.
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Commercial Brokers
Create an Information Exchange with Commercial Brokers in cooperation with the
City; provide additionally requested information such as quarterly sales tax
information, demographic information and other useful materials to attract retail
enterprise. The Chamber will coordinate scheduling the Commercial Broker
meetings with Chamber staff, City staff and a member of the City Council
Economic Development sub-committee (GROUP) will meet regularly with the key
Brokers working in La Quinta throughout the term. The GROUP will be present at
the Broker meetings to discuss activity in La Quinta and exchange information. An
online survey will be provided to gather specific information. Results will be tracked
and discussed monthly with City Staff and reported quarterly to City Council.
Shop Local Campaign
Chamber to develop a !Rgno Local" Campaign to be implemented in Fiscal Year
2014 - 2015
B. Sgd FDL Community Newsletter
1. Ten months/issues out of the year (with City funding)
2. Ten months/issues out of the year inclusion of City Pages
3. Chamber opting to fund two additional months/issues of Sgd FDL
(Chamber portion only; not City Pages)
B- Sgd UhrhsnqŬr Bdmsdq
Bg`ladq vhkk nodq`sd sgd K` Pthms` UhrhsnqŬr Center for the duration of this term In
addition; Chamber will coordinate with City Staff to improve the aesthetics of the
UhrhsnqŬr Bdmsdq- Sgdrd hloqnudldmsr vntkd include improved methods to display
promotional materials and other collateral, a seating area for visitors, and potential
video advertisements from the City of La Quinta and other local business.
D. Annual Financial Review/Audit
The La Quinta Chamber of Commerce shall provide a full audit every three
years and an annual financial review report in non-audit years. A full audit is
required for fiscal year ending June 30, 2016.
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Exhibit B
Schedule of Compensation
With the exception of compensation for Additional Services, provided for in
Section 2.2 of this Agreement, the maximum total compensation to be paid to
Consultant under this Agreement is One Hundred Twenty-Seven Thousand Five
Gtmcqdc Cnkk`qr '#016+4//( 'ŮBnmsq`bs Rtlů(- Sgd Bnmsq`bs Rtl rg`kk ad o`hc sn
Consultant in four (4) installment payments and in an amount identified in
Consultants Schedule of Compensation included hereto for the work tasks
performed and properly invoiced by Consultant in conformance with Section 2.2 of
the Agreement.
Payment Schedule is as follows:
July 29, 2014 $31,875
October 29, 2014 $31,875
January 29, 2015 $31,875
April 29, 2015 $31,875
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Exhibit C
Schedule of Performance
Consultant shall complete all services identified in the Scope of Services,
Dwghahs Ů@ů ne sghr @fqddldms hm accordance with the schedule below:
A.Business Retention/Promotion Ongoing
& Economic Development/Support (throughout fiscal
year)
B.Sgd FDL Community Newsletter Monthly
(City Pages; 10 issues per year)
C.Sgd UhrhsnqŬr Bdmsdq Ongoing
(Throughout fiscal year)
D.Annual Financial Review Non-Audit Years
& Full Audit Every Three Years
The La Quinta Chamber of Commerce shall provide the City with three (3)
written reports on its activities as required by this Agreement.
Ehqrs Qdonqs ũ Mnudladq 1/03
Rdbnmc Qdonqs ũ Edaqt`qx 1/04
Sghqc Qdonqs ũ L`x 1/04
17
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Exhibit D
Special Requirements
None.
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AGENDA CATEGORY:
BUSINESS SESSION:
: June 17, 2014
CITY / SA / HA / FA MEETING DATE
CONSENT CALENDAR:
14
APPROVE A CONTRACT SERVICES
ITEM TITLE:
AGREEMENT WITH THE LA QUINTA ARTS
STUDY SESSION:
FOUNDATION
PUBLIC HEARING:
RECOMMENDED ACTION:
Approve a Contract Services Agreement with the La Quinta Arts Foundation for the
2015 La Quinta Arts Festival and various other special events, and authorize the
City Manager to execute the Agreement.
EXECUTIVE SUMMARY:
Annually, the City and the La Quinta Arts Foundation (Foundation) negotiate
an agreement wherein the City provides funding to promote Foundation
events.
The events provide opportunities to market the community and attract users
who patronize La Quinta businesses.
The 2015 Agreement (Attachment 1) covers the Arts Festival and Art Under
the Umbrellas events.
FISCAL IMPACT:
The Agreement is in the amount of $103,130. Community Services has budgeted
$127,150, which includes an exemption for Facility Use Fees in the amount of
$24,020.
This year, the City received $45,558 in combined sales tax and business license
revenue from the Art Under the Umbrellas and Arts Festival. Last year, a Patron
Profile survey completed by the Foundation indicated that transient occupancy tax
and sales tax from shopping, dining, lodging and art purchases created
approximately $30 million in revenue. The Foundation prepared an economic
137
development analysis of their events identifying that the direct benefit to the City is
$172,493 (Attachment 2).
BACKGROUND/ANALYSIS:
The City and Foundation have had a partnership since 1987. During this time, the
City contracted with the Foundation to market the community. The rationale for
this partnership is that Foundation events advertise La Quinta and attract users to
La Quinta businesses. The proposed Agreement will fund promotion of special
events in the Village and marketing activities for the 2015 La Quinta Arts Festival.
The Agreement provides that the City will be the Premier Sponsor of the La Quinta
Arts Festival and the City name will be prominently displayed on print and web
materials and in a full-page advertisement in the event program. The Foundation is
to provide the City with a comprehensive marketing plan. The 2013/14 report is
attached (Attachment 3). The marketing plan outlines methods used by the
Foundation to promote the event and City. Staff at both agencies are working
together to increase the collaborative marketing efforts for the Art Under the
Umbrellas and the Art Festival.
The Foundation also agrees to maintain an ArtirsŬr Qdfhrsqx enq sgd Bhsx sg`s b`m ad
accessed by developers who desire artwork for their projects.
ALTERNATIVES:
The alternatives to the recommended action entail modifying the services or
funding level.
Report prepared by: Tustin Larson, Recreation Supervisor
Report approved for submission by: Edie Hylton, Community Services Director
Attachments: 1. Agreement
1- Entmc`shnmŬr @m`kxrhr Qdonqs
2- Entmc`shnmŬr 1/02.03 Ehm`k Qdonqs
138
ATTACHMENT 1
CONTRACT SERVICES AGREEMENT
SGHR BNMSQ@BS RDQUHBDR @FQDDLDMS 'sgd Ů@fqddldmsů( hr l`cd `mc
entered into as of, ____________________, 2014 by and between the CITY OF LA
PTHMS@+ ` B`khenqmh` ltmhbho`k bnqonq`shnm 'ŮBhsxů(+ `mc K@ PTHMS@ @QSR
ENTMC@SHNM 'ŮBnmsq`bsnqů(-
RECITALS
A. City desires to utilize the services of Contractor as an independent
contractor to promote the City by creating and producing the La Quinta Arts
Edrshu`k `mc u`qhntr rodbh`k dudmsr `mc `bshuhshdr 'bnkkdbshudkx+ sgd ŮKP@E Dudmsrů(-
B. Contractor represents that it is fully qualified to perform such services
by virtue of its experience and the training, education and expertise of its principals
and employees.
C. City desires to retain Contractor, and Contractor desires to serve City
to perform these services subject to the terms contained herein and all applicable
local, state and federal laws and regulations.
NOW, THEREFORE, in consideration of the performance by the parties of the
mutual promises, covenants, and conditions contained herein, the parties agree as
follows:
1.0SERVICES OF CONTRACTOR
1.1.Scope of Services. In compliance with all terms and conditions of this
Agreement, Contractor shall promote the City by creating and providing those
KP@E Dudmsr rodbhehdc hm sgd ŮRbnod ne Rdquhbdrů `ss`bgdc gdqdsn `r Dwghahs Ů@ů
and incorporated herein by this referenbd 'bnkkdbshudkx+ sgd Ůrdquhbdrů nq Ůvnqjů(-
Contractor warrants that all services will be performed in a competent,
professional, and satisfactory manner in accordance with the standards prevalent in
the industry for such services.
1.2.Compliance with Law. All services rendered hereunder shall be provided in
accordance with all ordinances, resolutions, statutes, rules, regulations and laws of
the City of La Quinta and any Federal, State or local governmental agency of
competent jurisdiction.
1.3.Licenses, Permits, Fees and Assessments. Except as otherwise specified
herein, Contractor shall obtain at its sole cost and expense such licenses, permits
and approvals as may be required by law for the performance of the services
required by this Agreement. Contractor shall be responsible for ensuring that LQAF
Event vendors have proper permits, licenses, and approvals as may be required by
all applicable laws and ordinances. Contractor shall have the sole obligation to pay
for any fees, assessments and taxes, plus applicable penalties and interest, which
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may be imposed by law and arise from or are necessary for the performance of the
services required by this Agreement.
1.4.Familiarity with Work. By executing this Agreement, Contractor warrants
that (a) it has thoroughly investigated and considered the work to be performed, (b)
it has investigated the site of the work and fully acquainted itself with the
conditions there existing, (c) it has carefully considered how the work should be
performed, and (d) it fully understands the facilities, difficulties and restrictions
attending performance of the work under this Agreement. Should Contractor
discover any latent or unknown conditions materially differing from those inherent
in the work or as represented by City, it shall immediately inform City of such fact
and shall not proceed except at ContractorŬr qhrj tmshk vqhssdm hmrsqtbshnmr `qd
received from the Contract Officer (as defined in Section 4.2 hereof).
1.5.Standard of Care. Contractor acknowledges and understands that the
services and work contracted for under this Agreement require specialized skills
and abilities and that, consistent with this tmcdqrs`mchmf+ Bnmsq`bsnqŬr rdquhbdr `mc
work will be held to a heightened standard of quality and workmanship. Consistent
with Section 1.4 hereinabove, Contractor represents to City that it holds the
necessary skills and abilities to satisfy the heightened standard of work as set forth
in this Agreement. Contractor shall adopt reasonable methods during the life of the
Agreement to furnish continuous protection to the work performed by Contractor,
and the equipment, materials, papers and other components thereof to prevent
losses or damages, and shall be responsible for all such damages, to persons or
property, until acceptance of the work by City, except such losses or damages as
l`x ad b`trdc ax BhsxŬr nvm mdfkhfdmce. The performance of services by
Contractor shall not relieve Contractor from any obligation to correct any
incomplete, inaccurate or defective work at no further cost to City, when such
inaccuracies are due to the negligence of Contractor.
1.6.Special Requirements. Additional terms and conditions of this Agreement, if
`mx+ `qd rds enqsg hm Dwghahs ŮCů 'sgd ŮRodbh`k Qdpthqdldmsrů( vghbg hr hmbnqonq`sdc
herein by this reference and expressly made a part hereof. In the event of a
conflict between the provisions of the Special Requirements and any other
provisions of this Agreement, the provisions of the Special Requirements shall
govern.
2.0COMPENSATION
For the services rendered pursuant to this Agreement, Contractor shall be
bnlodmr`sdc hm `bbnqc`mbd vhsg Dwghahs ŮAů 'sgd ŮRbgdctkd ne Bnlodmr`shnmů( hm `
total amount of One Hundred Three Thousand, One Hundred Thirty Dollars and
Ydqn Bdmsr '#0/2+02/-//( 'sgd ŮBnmsq`bs Rtlů( sn ad o`hc tonm dwdbtshnm ne sghr
Agreement.
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3.0PERFORMANCE SCHEDULE
3.1.Time of Essence. Time is of the essence in the performance of this
Agreement.
3.2.Schedule of Performance. All services rendered pursuant to this Agreement
shall be performed diligently and within thd shld odqhnc drs`akhrgdc hm Dwghahs ŮBů
'sgd ŮRbgdctkd ne Odqenql`mbdů(- Dwsdmrhons to the time period specified in the
Schedule of Performance may be approved in writing by the Contract Officer.
3.3.Force Majeure. The time period specified in the Schedule of Performance for
performance of the services rendered pursuant to this Agreement shall be extended
because of any delays due to unforeseeable causes beyond the control and without
the fault or negligence of Contractor, including, but not restricted to, acts of God
or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions,
riots, strikes, freight embargoes, acts of any governmental agency other than City,
and unusually severe weather, if Contractor shall notify the Contract Officer in
writing of the causes of the delay. The Contract Officer shall ascertain the facts
and the extent of delay, and extend the time for performing the services for the
period of the forced delay when and if in his or her judgment such delay is justified,
`mc sgd Bnmsq`bs NeehbdqŬr cdsdqlhm`shnm rg`kk ad ehm`k `mc bnmbktrhud tonm sgd
parties to this Agreement.
3.4.Term. Unless earlier terminated in accordance with Section 8.6 of this
Agreement, this Agreement shall commence on July 1, 2014and terminate on June
30, 2015.
4.0COORDINATION OF WORK
4.1.Representative of Contractor. The following principals of Contractor are
hereby designated as being the principals and representatives of Contractor
authorized to act in its behalf with respect to the work specified herein and make
all decisions in connection therewith:
a.Christi Salamone, Executive Director
Email: christi@lqaf.com
b. La Quinta Arts Foundation President
It is expressly understood that the experience, knowledge, capability, and
reputation of the foregoing principals were a substantial inducement for City to
enter into this Agreement. Therefore, the foregoing principals shall be responsible
during the term of this Agreement for directing all activities of Contractor and
devoting sufficient time to personally supervise the services hereunder.
The foregoing principals may not be changed by Contractor and no other
personnel may be assigned to perform the service required hereunder without the
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express written approval of City, which approval shall not be unreasonably
withheld.
4.2.Contract Officer. The Contract Officer shall be Frank J. Spevacek, City
Manager or such other person as may be designated in writing by the City Manager
ne Bhsx- Hs rg`kk ad Bnmsq`bsnqŬr qdronmrhahkhsy to assure that the Contract Officer is
kept informed of the progress of the performance of the services and Contractor
shall refer any decisions which must be made by City to the Contract Officer.
Unless otherwise specified herein, any approval of City required hereunder shall
mean the approval of the Contract Officer.
4.3.Prohibition Against Subcontracting or Assignment. The experience,
knowledge, capability and reputation of Contractor, its principals and employees
were a substantial inducement for City to enter into this Agreement. Except as set
forth in this Agreement, Contractor shall not subcontract with any other entity to
perform in whole or in part the services required hereunder without the express
written approval of Contract Officer. In addition, neither this Agreement nor any
interest herein may be assigned or transferred, voluntarily or by operation of law,
without the prior written approval of City. Any attempted or purported assignment
or sub-contracting by Contractor without sgd BhsxŬr dwoqdrr vqhssdm `ooqnu`k rg`kk
be null, void and of no effect. Notwithstanding this general prohibition, Contractor
shall be permitted to subcontract for the following ancillary services: security
services, fencing, traffic control, food and beverage vendors, parking-related
services, and similar ancillary services which were provided by subcontract in
connection with the 2013/2014 LQAF Events.
4.4.Independent Contractor. Neither City nor any of its employees shall have
any control over the manner, mode or means by which Contractor, its agents or
employees, perform the services required herein, except as otherwise set forth.
Contractor shall perform all services required herein as an independent contractor
of City and shall remain at all times as to City a wholly independent contractor with
only such obligations as are consistent with that role. Contractor shall have no
power to incur any debt, obligation, or liability on behalf of City. Contractor shall
not at any time or in any manner represent that it or any of its agents or employees
are agents or employees of City. Contractor agrees to pay all required taxes on
amounts paid to Contractor under this Agreement, and to indemnify and hold City
harmless from any and all taxes, assessments, penalties, and interest asserted
against City by reason of the independent contractor relationship created by this
Agreement. Contractor shall fully compkx vhsg sgd vnqjdqrŬ bnlodmr`shnm k`vr
qdf`qchmf Bnmsq`bsnq `mc Bnmsq`bsnqŬr dlployees. Contractor further agrees to
indemnify and hold City harmless from any failure of Contractor to comply with
`ookhb`akd vnqjdqrŬ bnlodmr`shon laws. City shall have the right to offset against
the amount of any fees due to Contractor under this Agreement any amount due to
City from Contractor as a result of Contr`bsnqŬr e`hktqd sn oqnloskx o`x sn Bhsx `mx
reimbursement or indemnification arising under this Section 4.4.
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4.5.City Cooperation. City shall provide Contractor with any plans, publications,
reports, statistics, records or other data or information pertinent to services to be
performed hereunder which are reasonably available to Contractor only from or
through action by City.
5.0INSURANCE
5.1.Insurance. Prior to the beginning of any Work under this Agreement and
throughout the duration of the term of this Agreement, Contractor shall procure
and maintain, at its sole cost, and submit concurrently with its execution of this
Agreement, insurance as described herein. All insurance coverage required by this
Agreement shall be placed with insurers authorized to do business in the State of
California with an A.M. Best and Company rating level of A- or better, Class VI or
adssdq+ tmkdrr nsgdqvhrd `ooqnudc ax sgd BhsxŬr Qhrj L`m`fdq hm vqhshmf-
5.1.1. Minimum Coverage. Insurance shall include the following (or broader)
coverage:
a. Insurance Services Office Commercial General Liability coverage
Ůnbbtqqdmbdů enql BF // /0 nq hsr equivalent with an edition date
prior to 2004 and with minimum limits of $1,000,000 per occurrence
and $2,000,000 in the aggregate.
b. Insurance Services Office form number CA 0001 or equivalent
covering Automobile Liability, including hired and non-owned
automobile liability with a minimum limit of $1,000,000 per accident.
If Contractor owns no vehicles, this requirement may be satisfied by a
mnm,nvmdc `mc ghqdc `tsn dmcnqrdldms sn Bnmsq`bsnqŬr bnlldqbh`k
general liability policy.
c. Contractor shall carry Workers' Compensation Insurance
bnlokxhmf vhsg B`khenqmh`Ŭr vnqjdq's compensation laws, including
rs`stsnqx khlhsr enq vnqjdqrŬ bnlodmr`shnm `mc `m DloknxdqŬr Kh`ahkhsx
limit no less than $1,000,000 per accident or disease.
5.1.2. Required Endorsements. Commercial General Liability insurance
policies required to be provided by Contractor hereunder shall contain or be
endorsed to contain the following provisions:
a. City, its employees, officials, agents and member agencies shall
be covered as additional insureds. Coverage shall apply to any and all
liability arising out of the LQAF Event or related to the Contract.
Additional insured status under the general liability requirement shall
be provided on Insurance Services Office Form CG 20 10 with an
edition date prior to 2004, or its equivalent. Additional insured status
for completed operations shall be provided either in the additional
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insured form or through another endorsement such as CG 20 37 with
an edition date prior to 2004.
b. General and automobile liability insurance shall apply separately
to each insured against whom a claim is made or suit is brought,
except with respect to the limits of sgd hmrtqdqŬr kh`ahkhsx- Bnudq`fd
will not be limited to CisxŬr uhb`qhntr kh`ahkhsx-
c. Liability coverage shall be primary and non-contributing with any
insurance maintained by the City.
d. Each policy required hereunder, and the associated evidence of
bnudq`fd 'hmbktchmf sgd vnqjdqrŬ bnlodmr`shnm `mc dloknxdqŬr kh`ahkhsx
policies), shall provide that coverage shall not be suspended, voided,
canceled or reduced in coverage or in limits except after prior written
notice has been given to City. Such provision shall not include any
limitation of liability of the insurer for failure to provide such notice.
e. No liability insurance coverage provided to comply with this
@fqddldms rg`kk oqnghahs Bnmsq`bsnq+ nq Bnmsq`bsnqŬr employees, or
agents, from waiving the right of recovery prior to a loss. Contractor
waives its right of recovery against City.
5.1.3. No Waiver or Obligation. There shall be no recourse against City for
payment of premiums or other amounts with respect to the insurance
required to be provided by Contractor hereunder. Any failure, actual or
alleged, on the part of City to monitor compliance with these requirements
will not be deemed as a waiver of any rights on the part of City. City has no
additional obligations by virtue of requiring the insurance set forth herein. In
the event any policy of insurance required under this Agreement does not
comply with these requirements or is canceled and not replaced, City has the
right but not the duty to obtain the insurance it deems necessary and any
premium paid by City will be promptly reimbursed by Contractor or City will
withhold amounts sufficient to pay premium from Contractor payments.
5.1.4. Prompt Notice. Contractor agrees to provide immediate notice to City
of any claim or loss against Contractor arising out of the work performed
under this agreement. City assumes no obligation or liability by such notice,
but has the right (but not the duty) to monitor the handling of any such claim
or claims if they are likely to involve City
5.1.5. Subcontractors. Contractor shall include all subcontractors, if any, as
insureds under its policies or shall furnish separate certificates and
endorsements for each subcontractor approved by City. All coverages for
subcontractors, if any, shall be subject to all of the requirements stated
gdqdhm tmkdrr nsgdqvhrd `ooqnudc hm `cu`mbd hm vqhshmf ax BhsxŬr Qhrj
Manager.
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6.0INDEMNIFICATION
6.1Indemnification. To the fullest extent permitted by law, Contractor shall
indemnify, protect, defend and hold harmless City and any and all of its officials,
dloknxddr `mc `fdmsr 'ŮHmcdlmhehdc O`qshdrů( eqnl `mc `f`hmrs `mx `mc `kk kh`ahkhsx+
claims, suits, actions arbitration proceedings, administrative proceedings, regulatory
proceedings, losses, expenses or costs of any kind, whether actual, alleged or
threatened, including, without limitation, incidental and consequential damages,
actual attorney fees incurred by City, court costs, interest, defense costs including
fees of expert Contractors or expert witnesses incurred in connection therewith
and any other costs or expenses of any kind whatsoever incurred in relation to, as
a consequence of or arising out of or in any way attributable in whole or in part to
the performance of this agreement. All obligations under this provision are to be
paid by Contractor as the City incurs them.
6.1.1.Dwbdoshnm sn Bnmsq`bsnqŬr Nakhf`shnm to Indemnify. Without affecting
the rights of City under any provision of this Agreement or this section,
Contractor shall not be required to indemnify and hold harmless City as set
forth above for liability attributable to the sole fault of City, provided such
sole fault is determined by agreement between the parties or by the findings
of a court of competent jurisdiction. This exception will apply only in
instances where City is shown to have been solely at fault and not in
instances where Contractor is solely or partially at fault or in instances where
BhsxŬr e`tks `bbntmsr enq nmkx ` odqbdms`fd ne sgd kh`ahkhsx hmunkudc- Hm sgnrd
instances, the obligation of Contractor will be all-inclusive and City will be
indemnified for all liability incurred, even though a percentage of the liability
is attributable to conduct of the City.
6.1.2.Contractor Acknowledgment. Contractor acknowledges that its
obligation pursuant to this section extends to liability attributable to City, if
that liability is less than the sole fault of City.
6.1.3.Indemnity Provisions for Subcontractors. Contractor agrees to obtain
executed indemnity agreements with provisions identical to those set forth
here in this section from each and every subcontractor, sub tier contractor or
any other person or entity involved by, for, with or on behalf of Contractor in
the performance of this Agreement. In the event Contractor fails to obtain
such indemnity obligations from others as required here, Contractor agrees
to be fully responsible according to the terms of this section.
6.1.4.No Waiver; Survival. Failure of City to monitor compliance with the
requirements of this Section 6.1 imposes no additional obligations on City
`mc vhkk hm mn v`x `bs `r ` v`hudq ne `mx qhfgsr gdqdtmcdq- Bnmsq`bsnqŬr
obligation to indemnify and defend City as a set forth herein is binding on the
successors, assigns, or heirs of Contractor and shall survive the termination
of this Agreement or this section.
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6.2.Remedies. In addition to any other remedies City may have if Contractor
fails to provide or maintain any insurance policies or policy endorsements to the
extent and within the time herein required, City may, at its sole option:
a. Obtain such insurance and deduct and retain the amount of the
premiums for such insurance from any sums due under this Agreement.
b. Order Contractor to stop work under this Agreement and/or withhold
any payment(s) which become due to Contractor hereunder until Contractor
demonstrates compliance with the requirements hereof.
c. Terminate this Agreement.
Exercise of any of the above remedies, however, is an alternative to any
other remedies City may have. The above remedies are not the exclusive remedies
enq Bnmsq`bsnqŬr e`hktqd sn l`hms`hm nq secure appropriate policies or endorsements.
Nothing herein contained shall be construed as limiting in any way the extent to
which Contractor may be held responsible for payments of damages to persons or
oqnodqsx qdrtkshmf eqnl Bnmsq`bsnqŬr nq hsr rtabnmsq`bsnqrŬ odqenql`mbd ne vnqj
under this Agreement.
7.0RECORDS AND REPORTS
At conclusion of the contract period, Contractor shall prepare and submit to the
Contract Officer a report concerning Contq`bsnqŬr odqenql`mbd ne sgd rdquhbdr
required by this Agreement, listing event attendance and sales results and
marketing efforts.
7.1.Records. Contractor shall keep such books and records as shall be
necessary to perform the services required by this Agreement and enable the
Contract Officer to evaluate the cost and the performance of such services. Books
and records pertaining to costs shall be kept and prepared in accordance with
generally accepted accounting principles. The Contract Officer shall have full and
free access to such books and records at all reasonable times, including the right to
inspect, copy, audit, and make records and transcripts from such records.
7.2.Contractor Ownership of LQAF Events and Related Documents. The parties
agree that: (a) this Agreement is a contract for the performance of the services by
Contractor to City; (b) the LQAF Events and all documents and other materials
prepared by Contractor in connection therewith are owned by Contractor and not
the City; and (c) City shall have no ownership of the LQAF Events and such
documents and other materials.
7.3.Release of Documents. The drawings, specifications, reports, records,
documents and other materials prepared by Contractor in the performance of
services under this Agreement shall not be released publicly without the prior
written approval of the Contract Officer or as required by law. Contractor shall not
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disclose to any other entity or person any information regarding the activities of
City, except as required by law or as authorized by City.
7.4.Confidentiality. Contractor covenants that all data, documents, discussion,
or other information, if any, developed or received by Contractor or provided for
performance of this Agreement are deemed confidential and shall not be disclosed
by Contractor to any person or entity without prior written authorization by City.
City shall grant such authorization if disclosure is required by law. All City data
shall be returned to City upon the terminathnm ne sghr @fqddldms- Bnmsq`bsnqŬr
covenant under this section shall survive the termination of this Agreement.
Bnmsq`bsnqŬr `tchsdc ehm`mbh`k rs`sdldms qdpthqdc sn ad oqnuhcdc sn sgd Bhsx
pursuant to this Agreement shall not be released to the public unless the release is
required by the California Public Records Act, Government Code section 6250, ds
rdp-+ the Brown Act, Government Code section 54950 ds rdp-+ or pursuant to
subpoena or court order. Whether the financial statement is required to be
provided to a member of the public is a determination to be made solely be the City
Attorney. If the City receives a request for the financial statement, the City will
promptly notify Contractor and Contractor promptly may: (a) submit any legal
argument it wishes to be reviewed to the City Attorney regarding whether or not
the document is subject to disclosure; or (b) seek a protective order. Contractor
recognizes that the City, by law, generally has only 10 days to respond to a
request under the Public Records Act. Nothing in this paragraph shall prohibit the
City from complying with the Public Records Act or any subpoena or court order in
the manner determined appropriate by the City Attorney. Nothing in this
Agreement shall prohibit the Contract Officer from utilizing the information
contained in the financial statement as he/she deems appropriate in carrying out
his/her official City duties, including, but not limited to, disclosing any information
deemed relevant to the City Council at a public meeting.
8.0ENFORCEMENT OF AGREEMENT
8.1.California Law. This Agreement shall be construed and interpreted both as
to validity and to performance of the parties in accordance with the laws of the
State of California. Legal actions concerning any dispute, claim or matter arising
out of or in relation to this Agreement shall be instituted in the Superior Court of
the County of Riverside, State of California, or any other appropriate court in such
county, and Contractor covenants and agrees to submit to the personal jurisdiction
of such court in the event of such action.
8.2.Disputes. In the event of any dispute arising under this Agreement, the
injured party shall notify the injuring party in writing of its contentions by
submitting a claim therefore. The injured party shall continue performing its
obligations hereunder so long as the injuring party commences to cure such default
within ten (10) days of service of such notice and completes the cure of such
default within forty-five (45) days after service of the notice, or such longer period
as may be permitted by the Contract Officer; provided that if the default is an
immediate danger to the health, safety and general welfare, City may take such
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immediate action as City deems warranted. Compliance with the provisions of this
section shall be a condition precedent to termination of this Agreement for cause
and to any legal action, and such complianbd rg`kk mns ad ` v`hudq ne `mx o`qsxŬr
right to take legal action in the event that the dispute is not cured, provided that
mnsghmf gdqdhm rg`kk khlhs BhsxŬr qhfgs sn sdqlhm`sd sgis Agreement without cause.
8.3.Waiver. No delay or omission in the exercise of any right or remedy of a non
defaulting party on any default shall impair such right or remedy or be construed as
` v`hudq- BhsxŬr bnmrdms nq `ooqnu`k ne `mx `bs ax Bnmsq`bsnq qdpthqhmf BhsxŬr
bnmrdms nq `ooqnu`k rg`kk mns ad cddldc sn v`hud nq qdmcdq tmmdbdrr`qx BhsxŬr
consent to or approval of any subsequent act of Contractor. Any waiver by either
party of any default must be in writing and shall not be a waiver of any other
default concerning the same or any other provision of this Agreement.
8.4.Rights and Remedies are Cumulative. Except with respect to rights and
remedies expressly declared to be exclusive in this Agreement, the rights and
remedies of the parties are cumulative and the exercise by either party of one or
more of such rights or remedies shall not preclude the exercise by it, at the same or
different times, of any other rights or remedies for the same default or any other
default by the other party.
8.5.Legal Action. In addition to any other rights or remedies, either party may
take legal action, at law or at equity, to cure, correct or remedy any default, to
recover damages for any default, to compel specific performance of this
Agreement, to obtain injunctive relief, or to obtain any other remedy consistent
with the purposes of this Agreement.
8.6.Termination Prior to Expiration of Term. This section shall govern any
termination of this Agreement. City reserves the right to terminate this Agreement
at any time, with or without cause, upon thirty (30( c`xrŬ vqhssdm mnshbd sn
Contractor. Upon receipt of any notice of termination, Contractor shall immediately
cease all services hereunder except such as may be specifically approved by the
Contract Officer. Contractor shall be entitled to retain all compensation theretofore
paid to Contractor hereunder.
8.7.@ssnqmdxrŬ Eddr- He dhsgdq o`qsx bnlldmbdr `m `bshnm `f`hmrs sgd nsgdq o`qsx
arising out of or in connection with this Agreement, the prevailing party shall be
dmshskdc sn qdbnudq qd`rnm`akd `ssnqmdxrŬ fees and costs of suit from the losing
party.
9.0CITY OFFICERS AND EMPLOYEES; NONDISCRIMINATION
9.1.Non-liability of City Officers and Employees. No officer or employee of City
shall be personally liable to Contractor, or any successor in interest, in the event or
any default or breach by City or for any amount which may become due to
Contractor or to its successor, or for breach of any obligation of the terms of this
Agreement.
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9.2.Conflict of Interest. No officer or employee of City shall have any personal
interest, direct or indirect, in this Agreement nor shall any such officer or employee
participate in any decision relating to the Agreement which affects his or her
personal interest or the interest of any corporation, partnership or association in
which she or he is, directly or indirectly, interested, in violation of any State statute
or regulation. Contractor warrants that it has not paid or given and will not pay or
give any third party any money or general consideration for obtaining this
Agreement.
9.3.Covenant Against Discrimination. Contractor covenants that, by and for
itself, its heirs, executors, assigns, and all persons claiming under or through them,
that there shall be no discrimination against or segregation of, any person or group
of persons on account of race, color, creed, religion, sex, marital status, national
origin or ancestry in the performance of this Agreement. Contractor shall take
affirmative action to insure that applicants are employed and that employees are
treated during employment without regard to their race, color, creed, religion, sex,
marital status, national origin or ancestry.
10.0MISCELLANEOUS PROVISIONS
10.1.Notice. Any notice, demand, request, consent, approval, communication
either party desires or is required to give the other party or any other person shall
be in writing and either served personally or sent by prepaid, first-class mail to the
address set forth below. Either party may change its address by notifying the other
party of the change of address in writing. Notice shall be deemed communicated
forty-eight (48) hours from the time of mailing if mailed as provided in this section.
To City: To Contractor:
CITY OF LA QUINTA LA QUINTA ARTS FOUNDATION
Attn: Frank J. Spevacek Attn: Christi Salamone
78495 Calle Tampico 78150 Calle Tampico, Suite 215
La Quinta, CA 92253 La Quinta, CA 92253
10.2.Integrated Agreement. This Agreement contains all of the agreements of the
parties and all previous understanding, negotiations and agreements are integrated
into and superseded by this Agreement.
10.3.Exhibits; Precedence. All documents referenced as exhibits in this
Agreement are hereby incorporated in this Agreement. In the event of any material
discrepancy between the express provisions of this Agreement and the provisions
of any document incorporated herein by reference, the provisions of this
Agreement shall prevail except as otherwise provided in Section 1.7.
10.4.Amendment. This Agreement may be amended at any time by the mutual
consent of the parties by an instrument in writing signed by both parties.
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10.5.Severability. In the event that any one or more of the phrases, sentences,
clauses, paragraphs, or sections contained in this Agreement shall be declared
invalid or unenforceable by a valid judgment or decree of a court of competent
jurisdiction, such invalidity or unenforceability shall not affect any of the remaining
phrases, sentences, clauses, paragraphs, or sections of this Agreement which are
hereby declared as severable and shall be interpreted to carry out the intent of the
parties hereunder.
10.6.Authority. The persons executing this Agreement on behalf of the parties
hereto warrant that they are duly authorized to execute this Agreement on behalf
of said parties and that by so executing this Agreement the parties hereto are
formally bound to the provisions of this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
dates stated below.
CITY OF LA QUINTA, LA QUINTA ARTS FOUNDATION
a California municipal corporation
By:
FRANK J. SPEVACEK, City Manager
Name:
Dated:
Title:
Dated: _______________________________
ATTEST:
SUSAN MAYSELS, City Clerk
APPROVED AS TO FORM:
M. KATHERINE JENSON, City Attorney
City of La Quinta, California
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150
Exhibit A
Scope of Services
Promote the City by providing the following LQAF Events for Fiscal Year
2014/2015 Season:
La Quinta Arts Festival (the "Festival"): A four-day outdoor fine arts festival to be
to be held March 5 through 8, 2015 at the La Quinta Civic Center Campus.
Marketing services for the above include an extensive marketing plan provided to
sgd Bhsx vgdqdhm sgd m`ld ŮBhsx ne K` Pthms`ů `mc sgd neeicial City logo will be
prominently displayed as a Premier Sponsor where reasonably possible. Said
coverage may include, but is not limited to: newspapers, magazines, radio and
television advertising, as well as billboards, fine art posters (excluding Festival
Commemorative Poster for retail sale), and high quality program commemorating
the event and the City of La Quinta as a Premier Sponsor.
Contractor shall provide a link to the City ne K` Pthms`Ŭr vdarhsd nm Bnmsq`bsnqŬr
website. Contractor will send out email blasts promoting the events and activities
and share the information with the City to send out additional email information.
The City will receive a full page in the Edrshu`kŬr 1/04 oqnfq`l- Fq`oghb cdrhfm
may be provided by Contractor at request of the City.
Banners will be provided by Contractor and placed in various locations throughout
the City. The Planning Department will review the placement of the banners and
approve the locations. The Public Works Department will install and remove the
banners in the Village. If banners are installed at various intersections throughout
the City, Old Town, and the Civic Center Campus it will be the responsibility of
Contractor.
Contractor will promote the following additional LQAF Events:
Art Under the Umbrellas at Old Town La Quinta, October 25, November 15,
November 29, 2014, January 10, January 17, February 7, February 14, March 21,
2015.
@qshrsŬr Qdfhrsqx- Contractor will provide an Artist Registry available to the City and
local Developers at no charge. Such Registry will provide access to local and
regional artists that voluntarily elect to be listed and provide direct contact
information. The City may access such Registry to solicit proposals for the Art in
Public Places Program and may seek support by Contractor for expertise regarding
artist selection.
Contractor will provide the City with an Audited Financial Statements for
Bnmsq`bsnqŬr 1/02.1/03 ehrb`k xd`q mn k`sdq sgan December 1, 2015.
13
Last Revised 07/03/12
151
The following tickets will be provided sn sgd Bhsx L`m`fdqŬr neehbd9
ARTISTS FESTIVAL RECEPTION
Ten Tickets for the City Council and spouses.
Five Tickets for the Community Services Commission.
Five Tickets for Key Staff involved in event development
ART FESTIVAL
Ten Tickets for the City Council and spouses.
Ten Tickets for the Community Services Commission and spouses.
Ten Tickets for staff involved in event development.
Fifty tickets for distribution by the City Manager.
119/015610-0002
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4236988.5 a06/11/14
152
Exhibit B
Schedule of Compensation
Payment for the services rendered pursuant to this Agreement shall be
compensated in an amount of One Hundred ThreeThousand, One Hundred Thirty
Dollars and Zero Cents ($103,130.00), payable upon execution of this Agreement.
15
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Exhibit C
Schedule of Performance
Subject to the provisions of Section 8.6 of the Agreement, Contractor shall
complete all services within the term of this agreement.
119/015610-0002
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154
Exhibit D
Special Requirements
None.
17
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156
ATTACHMENT 2
LAQUINTAARTSFOUNDATIONACTIVITIES
RETURNTOLAQUINTA
The2013SurveyreportedthatwhileinLaQuintafortheLaQuintaArtsFestival,patronsspentan
averageof$1,063abovethecostofartpurchases,potentiallygenerating$26.5millionineconomic
activity.AddingArtUndertheUmbrellasbringstotalactivityto$30million.
LaQuintaArtsFestival2014Attendance25,000
52.2%=13,050PatronsexpresslyinLaQuintatoattendLaQuintaArtsFestival
LAQUINTAARTSFESTIVALPATRONS&ARTISTSSPENT$5+MILLIONONLODGING
TOTFestivalPatrons
FestivalPatronsreportedspending$423perpersononhotels,resortlodging
45.8%=11,450PatronsarefromoutsideoftheCoachellaValley=$4,843,350
4.6%=527StayedinLaQuintahotels,resorts=$222,921/$22,300TOT$22,300
TOTΑArtists
234ParticipatingArtists,150ArtistAssistants=384ArtistDelegation
200+ofthedelegationarefromoutsideoftheCoachellaValley
200+Stayinhotels,resorts,minimum5nights/$250night=$250,000/$25,000TOT
22+ArtistsstayedinLaQuintahotels,resorts=27,500$TOTcaptured$2,750
TOTPotentialCapture$572,500
TOTCaptured$25,050
LAQUINTAARTSFESTIVALPATRONS&ARTISTSSPENT$16+MILLIONONFOODGAS,VEHICLE
RENTAL,GROCERY,RETAIL&ENTERTAINMENTINADDITIONTOARTPURCHASES
SALESTAX
FestivalArtSales2014$3.1million=$31,000$31,000
FestivalFood&Beverage&RetailSales$155,202=$1,552$1,552
FestivalPatronsreportedspending$640ondining,gas,grocery,retail,etc.inLaQuinta
25,000x$640=$16,000,000
11,450outofareavisitorsx$640=$7,328,000$73,280
Artists200x$640=$128,000$1,280
Localresidents=13,550x$150(conservatively)=$2,032,500$20,325
LaQuintaArtsFestivalSalesTaxGeneration=$125,885
ARTUNDERTHEUMBRELLAS
Attendance=20,000,ParticipatingArtists80pershow
ArtPurchasesSalesTax=$825,632=$8,256$8,256
AUUPatronS
pending=10,000x$50(conservatively)=$500,000=$5,000$5,000
ArtistRoomNights=10artistsx8showsx1night=$20,000,TOT$2,000$2,000
ArtistSpendingSalesTaxArtistsbuycoffee,lunch,gas,etc.(conservatively)$500
Artist/VendorLicenseFeesCollected
250artists/vendorsx$15=$3,750$3,750
Permit,Inspection,Staff,RentalFees=$500$500
157
TOTALDIRECTRETURNTOCITYOFLAQUINTA$172,493
158
159
160
161
162
163
164
165
166
AGENDA CATEGORY:
June 17, 2014
CITY / SA / HA / FA MEETING DATE:
BUSINESS SESSION:
APPROVE PROFESSIONAL SERVICES
ITEM TITLE:
AGREEMENT WITH BENGAL ENGINEERING TO
CONSENT CALENDAR:
15
PROVIDE PROFESSIONAL ENGINEERING SERVICES
STUDY SESSION:
FOR DUNE PALMS ROAD BRIDGE IMPROVEMENTS
PUBLIC HEARING:
RECOMMENDED ACTION:
Approve a Professional Services Agreement with Bengal Engineering, in the amount of
$1,176,781, to provide professional engineering services for the Dune Palms Road
Bridge Improvements.
EXECUTIVE SUMMARY:
The Dune Palms Road Bridge Project will replace a low water crossing at the
Whitewater Channel with an all-weather, multimodal (car, golf cart, bike,
pedestrian) bridge that will improve access and safety between north La Quinta
and the commercial and residential areas to the south of the channel.
Approval of the Professional Services Agreement (PSA) will initiate the
engineering phase of the bridge improvements project including preparation of
environmental documentation, bridge and roadway engineering, and right-of-way
acquisition services.
The project is partially funded with Federal Surface Transportation Program
(STP) Funds through the State's Highway Bridge Program.
FISCAL IMPACT:
The City currently has $1,750,000 budgeted for the design of the Dune Palms Road
Bridge Improvements. The PSA with Bengal Engineering is a fixed fee contract with a
not-to-exceed total amount of $1,176,781. The remainder of the design budget will be
used for project management and agency permitting necessary to obtain environmental
clearance for the project.
167
STP Funds will underwrite 88.53 percent of project costs, and the Coachella Valley
Association of Governments (CVAG) has agreed to fund 75 percent of the required
11.47 percent local match. The design, project management and permitting costs will
be allocated as follows:
STP Funds $1,549,275
CVAG $150,543
City $50,182
The City's share will be funded through Local Transportation Developer Impact Fee
funds and Local Art in Public Places funds previously authorized in the Capital
Improvement Program.
BACKGROUND/ANALYSIS:
Dune Palms Road is an important link between north La Quinta, La Quinta High School,
south La Quinta, and the City’s commercial corridor on Highway 111. During severe
winter and summer storms, the existing low water crossing at the Whitewater Channel is
frequently inundated and damaged due to debris flows.The proposed improvements
will replace the existing low water crossing with an all-weather access bridge to prevent
the frequent road closures and provide a safe, reliable path for of travel across the
Whitewater Channel.
In 2012, staff was successful in securing the maximum reimbursement of federal funds
for the design and construction of Dune Palms Road Bridge. On October 16, 2013, City
Council authorized staff to advertise a Request for Proposals to obtain professional
engineering services to prepare the plans, specifications, and engineer's estimate for
the Dune Palms Road Bridge Improvements, City Project No. 2011-05 and Federal
Project Number BRLKS-5433(014).
Staff has since advertised the project and received four proposals on November 28,
2013. After interviewing the firms, the Consultant Selection Committee unanimously
selected and began negotiations with Bengal Engineering as the most qualified design
professional. Bengal, located in Temecula, had the strongest understanding and
approach of the interviewed firms, has a local project manager with extensive design
experience with the City, and had exemplary reference recommendations.
Due to the Federal STP Funds and the overall cost of the contract, the California
Department of Transportation required the City and Bengal Engineering to submit
contract documentation for a "Pre-Award" Audit. During this audit, the proposed
contract language was reviewed as well as Bengal Engineering's financial statements.
It was determined that the proposed contract and Bengal’s financial statements were in
conformance with Federal Cost Principals and the City has been authorized to execute
the contract. Therefore, staff recommends approval of the PSA with Bengal
Engineering. It has been reviewed and approved by the City Attorney and, due to its
length, is available for review at the Public Works Counter.
168
ALTERNATIVES:
Since this is a much needed improvement that is largely funded through Federal
Highways and CVAG, no alternative is recommended.
Report prepared by: Bryan McKinney, Principal Engineer
Report approved for submission by: Timothy R. Jonasson, P.E.
Public Works Director/City Engineer
169
170
June 17, 2014
AGENDA CATEGORY:
CITY / SA / HA / FA MEETING DATE:
ADOPT A RESOLUTION FOR THE
ITEM TITLE:
BUSINESS SESSION:
INVESTMENT POLICY OF THE CITY OF LA QUINTA
FOR FISCAL YEAR 2014/2015
CONSENT CALENDAR:
16
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Adopt a Resolution approving the Investment Policy of the City of La Quinta for
Fiscal Year 2014/2015.
EXECUTIVE SUMMARY:
California Government Code requires that the City Treasurer submit an
annual statement of investment policy.
(Policy), and has identified
minor items that should be updated.
The IAB is not recommending any major changes to the existing Investment
Policy at this time, but has directed the City Treasurer to continue exploring
the potential addition of two new investment opportunities.
FISCAL IMPACT:
None.
BACKGROUND/ANALYSIS:
The California Government Code imposes certain reporting requirements on State
and local agencies, which includes submitting an annual statement of investment
policy to the legislative body. As a result, in February 2014 the IAB began the
Between February and May 2014, IAB discussed proposed modifications to the
current Policy including the potential of adding two investment opportunities: the
Investment Trust of California (CalTrust) and the Riverside County Investment
Fund.
180
On May 14, 2014, IAB met with the City Manager, City Attorney and City
Treasurer to review the proposed Policy. While IAB expressed interest in the
potential of adding CalTrust and the Riverside County Investment Fund, they
ultimately determined that additional information was needed before recommending
them to City Council.
IAB recommended the Fiscal Year 2014/2015 Policy, which has been presented in
both a final version (Attachment 1) and redline version (Attachment 2) showing
pages that have changed from the prior year. The changes being recommended at
this time include clerical/grammatical corrections and corrections to inconsistencies
found during review of the document.
It is City policy to invest all public funds in a manner which will provide a
diversified portfolio with maximum security, while meeting daily cash flow
demands and the highest investment return in conformity with all State and local
statutes. This policy applies to all cash and investments of the City, Successor
Agency to the La Quinta Redevelopment Agency, La Quinta Housing Authority and
the La Quinta Financing Authority. The primary objectives of investment activity,
in order of priority, shall be:
Safety of principal;
Liquidity to meet all obligations and requirements that may be reasonably
anticipated;
A risk-based market rate of return.
A
Management responsibility for the investment program is delegated to the City
Treasurer, who establishes and implements written procedures for the operation of
also
required to establish and implement a system of internal controls to maintain the
safety of the portfolio. The internal control system ensures the timely preparation
and accurate reporting of the portfolio financial information. As part of the annual
adequacy of those controls and advises the City if weaknesses are found.
ALTERNATIVES:
Modifications to the Investment Policy may be identified and referred back to the
IAB.
Report prepared by: Rita Conrad, Finance Director/Treasurer
Report approved for submission by: Frank J. Spevacek, City Manager
Attachments: 1. Investment Policy for Fiscal Year 2014/15
2. Strikeout Version of Investment Policy for Fiscal Year 2014/15
181
RESOLUTION NO. 2014-
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LA QUINTA APPROVING AND ADOPTING
THE AMENDED INVESTMENT POLICY FOR FISCAL
YEAR 2014/2015
WHEREAS, the general purpose of the Investment Policy is to provide the rules
and standards users must follow in investing funds of the City of La Quinta; and
WHEREAS,
investment activity shall be:
Safety of principal is the foremost objective of the investment program.
Investments of the City of La Quinta shall be undertaken in a manner that seeks
to ensure the preservation of capital in the overall portfolio.
The investment portfolio shall remain sufficiently liquid to meet all operating
requirements that may be reasonably anticipated.
The investment portfolio shall be designed with the objective of attaining a
market rate of return or yield throughout budgetary and economic cycles, taking
into account the investment risk constraints and liquidity needs; and
WHEREAS, aut
derived from the City Ordinance. Management responsibility for the investment
program is delegated to the City Treasurer, who shall establish and implement written
procedures for the operati
Investment Policy for Fiscal Year 2014/2015; and
WHEREAS, the Investment Policy will be adopted before the end of June of
each year and amended as considered necessary.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La
Quinta to adopt the Fiscal Year Investment Policy (Exhibit A).
182
Resolution No. SA 2014-
Investment Policy
Adopted: June 17, 2014
Page 2 of 3
PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City
th
Council, held on this 17 day of June, 2014 by the following vote, to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
______________________________
DON ADOLPH, Mayor
City of La Quinta, California
ATTEST:
_________________________________________
SUSAN MAYSELS, Interim City Clerk
City of La Quinta, California
(SEAL)
APPROVED AS TO FORM:
_____________________________________
M. KATHERINE JENSON, City Attorney
City of La Quinta, California
183
Resolution No. 2014-
Investment Policy
Adopted: June 17, 2014
Page 3 of 3
Exhibit A
(TO BE ATTACHED)
184
EXHIBIT A
2014/2015
INVESTMENT
POLICY
185
CITY OF LA QUINTA
Investment Policy
Fiscal Year 2014/2015
Table of Contents
Section Topic Page
Executive Summary 2
I General Purpose 4
II Investment Policy 4
III Scope 4
IV Objectives 4
Safety of Principal
Provide Liquidity
Yield A Risk-Based Market Rate Of Return
V Maximum Maturities 6
VI Prudence 6
VII Authority 6
VIII Ethics and Conflicts of Interest 7
IX Authorized Financial Dealers and Institutions 7
Broker/Dealers
Financial Institutions
X Permissible Deposits and Investments 8
XI Investment Pools 12
XII Payment and Custody 13
XIII Interest Earning Distribution Policy 13
XIV Internal Controls and Independent Auditors 13
XV Reporting Standards 14
XVI Financial Assets and Investment Activity Not Subject to this Policy 15
XVII Investment of Bond Proceeds 15
XIII Investment Advisory Board - City of La Quinta 16
XIX Investment Policy Adoption 16
Appendices Topic Page
ASummary of Permissible Deposits and Investments 17
BCity of La Quinta Municipal Code Ordinance 2.70 - Investment Advisory Board 19
CCity of La Quinta Municipal Code Ordinance 3.08 - Investment of Moneys and Funds 20
DSegregation of Major Investment Responsibilities 22
EListing of Approved Financial Institutions 23
FBroker/Dealer Questionnaire and Certification 24
GRequest for Proposal for Professional Portfolio Management Firm 28
HPermissible Investment Chart Professional Portfolio Management Firm 34
IInvestment Management Process and Risk 35
JGlossary 36
1
186
CITY OF LA QUINTA
Investment Policy
Fiscal Year 2014/2015
Executive Summary
The general purpose of this Investment Policy is to provide the rules and standards that must be
followed in administering the City of La Quinta.
The Investment Policy conforms to all state and local statutes and applies to all deposits
and investments of the City of La Quinta, Successor Agency to the City of La Quinta
Redevelopment Agency, and the City of La Quinta Financing and Housing Authorities
().
It is the Cipolicy to deposit and invest public funds in a manner that shall provide:
Safety of principal;
Liquidity to meet ions and requirements that may be reasonably
anticipated; and
A risk-based market rate of return.
It is the Cit. This buy-and-hold
policy shall not prevent the sale of a security to minimize loss of principal when an issuer or
backer suffers declining credit worthiness or when the liquidity needs of the portfolio require
that a security be sold.
derived from the City Municipal Code.
Management responsibility for the investment program is delegated to the City Treasurer, who
shall establish and
program consistent with the Investment Policy. The Treasurer shall establish and implement a
system of internal controls to accomplish the following objectives:
Safeguard assets;
Orderly and efficiently conduct its business, including adherence to all City management
policies;
Prevent or detect errors and fraud;
Accurately complete all accounting records; and
Timely prepare all reliable financial information.
The System of Internal Controls developed by the City Treasurer shall be reviewed annually by the
independent auditors in connection with tatements.
The City Manager, City Treasurer and city employees involved in the Citys banking and
investment process shall conduct the Citys business in an ethical manner and refrain from any
activity or relationship that may be, or have the appearance of, a conflict of interest.
The City Treasurer maintains a listing of financial institutions which are approved for investment
purposes. All Broker/Dealers and financial institutions that provide investment services will be
subject to City Council approval.
The Treasurer will be permitted to invest only in the permissible deposits and investments
described in Section X and Appendix A up to the specified maximum allowable percentages
and/or dollar limitations and, where applicable, through the bid process requirements. Permissible
deposits and investments include, in general:
2
187
FDIC-Insured Checking, Savings, and Sweep Accounts;
Collateralized Bank Deposits;
Certificates of Deposit;
Negotiable Certificates of Deposit;
U.S. Government Agency Securities and Federal Government Securities;
Prime Commercial Paper;
Local Agency Investment Fund (LAIF);
Money Market Mutual Funds;
Corporate Notes; and
Professionally Managed Accounts.
The City deposits and investments are generally limited to three years maximum maturity.
However, the projected amount of funds not expected to be disbursed within five years may be
invested in notes and bonds maturing between three and five years. Additionally, funds may be
invested for up to ten (10) years as further discussed in Section V.
for a
rate of return on its investment portfolio. As a basi
monthly report will display the rates of return on the three-month Bill, six-month Bill, and the one
and two-year U.S. Treasury Note, comparable-period rates for commercial paper, and the yield
The Investment Policy shall be adopted by resolution of the La Quinta City Council on an annual
basis. The Investment Policy will be adopted before the end of June of each year.
This Executive Summary is only an overview of the City Investment Policy. Reading this
summary does not constitute a complete review, which can only be accomplished by reviewing all
of the pages herein.
3
188
City of La Quinta
Statement of Investment Policy
July 1, 2014 through June 30, 2015
Adopted by the City Council on June 17, 2014
I GENERAL PURPOSE
The general purpose of this document is to provide the rules and standards that must be followed
in administering the City of La Quintainvestments.
II INVESTMENT POLICY
It is the policy of the City of La Quinta to deposit and invest public funds in a manner that shall
provide:
Safety of principal;
Liquidity to meet ements that may be reasonably
anticipated; and
A risk-based market rate of return.
The Investment Policy conforms to all State and local statutes governing the investment of public
funds and sets forth the permissible deposits and investments of the Ci
limitations thereon.
III SCOPE
Except as further detailed in Section XVII, this Investment Policy applies to all deposits and
investments of the City of La Quinta, Successor Agency to the City of La Quinta Redevelopment
Agency and the City of La Quinta Financing and Housing Authorities (hereafter referred to in this
document as the "City"). These funds are reported in the City Comprehensive Annual Financial
Report (CAFR) and include all funds within the following fund types:
General
Special Revenue
Capital Projects
Debt Service
Enterprise
Internal Service
Trust and Agency
Any new fund types and fund(s) that may be created.
IV OBJECTIVES
The objectives of the City's investment activity, in order of priority and importance, are:
1. Safety of Principal
Safety of principal is the foremost objective of the investment program.
Investments shall be undertaken in a manner that seeks to ensure the preservation of
principal of the overall portfolio in accordance with the permissible deposits and
investments.
4
189
The City shall endeavor to preserve its investment principal by making only permissible
deposits and investments, undertaken in a controlled manner to minimize the possibility of
loss or misappropriation through malfeasance or otherwise. Investments not backed by
the full faith and credit of the United States Government shall be diversified by allocating
assets between different types of permissible investments, maturities, and issuers as a
means to mitigate credit risk and interest rate risk.
a. Credit Risk is the risk of loss from the failure of the security issuer or backer.
Credit risk may be mitigated by:
Limiting investments to investment grade securities as permitted in
Section X;
Diversifying the issuers of the securities in the investment portfolio so
that potential losses due to issuer failure or individual securities
downgrades may be minimized.
b. Interest Rate Risk is the risk that market values of securities in the portfolio will
decline due to changes in general interest rates. Interest rate risk may be mitigated
by:
Structuring the investment portfolio so that securities mature to meet
cash requirements for ongoing operations, thereby avoiding the need to
sell securities on the open market prior to maturity; and
Investing operating funds primarily in shorter-term securities.
c. Liquidity Risk is the risk that a security cannot be liquidated because of its unique
features or structure or because it is thinly traded. Liquidity risk is not a material
issue for the Citys portfolio because of the permissible deposits and investments
(see Section X) and because the City maintains a buy-and-hold policy and holds
securities and other investments to maturity. A discussion of the Citys investment
process and risk is presented in Appendix I.
2. Provide Liquidity
The investment portfolio shall remain sufficiently liquid to meet all cash needs
that may be reasonably anticipated. This is accomplished by structuring the portfolio so
that sufficient liquid funds are available to meet anticipated demands. Furthermore, since
all possible cash needs cannot be anticipated the portfolio should be diversified and
consist of securities with active secondary or resale markets.
rities and other investments to maturity. Accordingly,
securities shall not be sold prior to maturity with the following exceptions:
A security with declining credit quality can be sold early to minimize loss of
principal;
Unanticipated liquidity needs of the portfolio require that one or more securities be
sold.
3. Yield a Risk-Based Market Rate Of Return
The investment portfolio shall be structured with the objective of yielding a risk-
based market rate of return throughout budgetary and economic cycles. Return on
investment is less important than the safety and liquidity objectives described above.
for a rate of return on its investment portfolio. The
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influenced by several factors, including actions by the Federal Reserve Board, the
marketplace, and overall economic perceptions and conditions. These factors will not
-and-hold policy
As a basis for comparison only, the Treasurer monthly reports will display the rates of
return on the three-month Bill, six-month Bill, and one and two-year U.S. Treasury Note,
comparable-
Local Agency Investment Fund (LAIF). The Treasurer may use these or any other
published rates of return that the Treasurer deems appropriate for comparison to the return
V MAXIMUM MATURITIES
It is the policy to hold securities and other investments until maturity, thus avoiding the risk
of market value fluctuations with overall market interest rates. This buy-and-hold policy shall not
prevent the sale of a security to minimize loss of principal when an issuer or backer suffers
declining credit worthiness or when the liquidity needs of the City require that a security be sold.
The buy-and-hold policy requirebe structured so that
sufficient liquid funds are available from maturing investments and other sources to meet all
reasonably-anticipated cash needs. To meet anticipated cash needs, it is essential that the
Treasurer have reliable, diligently prepared cash flow projections.
Annually, the Treasurer shall project the amount of funds not expected to be disbursed within ten
years. For FY2014/2015, the amount of such funds is projected to be $20 million. Funds up to
that amount may be invested in U.S.Treasury notes and bonds, Local Agency Obligations, and
California Local Agency Obligations maturing between 3 and 10 years. For all other funds,
investments are limited to five years maximum maturity.
VI PRUDENCE
The City shall follow the Uniform Prudent Investor Act as adopted by the State of California in
Probate Code Sections 16045 through 16054.
Section 16053 sets forth the terms of a prudent person which are as follows: Investments shall
be made with judgment and care - under circumstances then prevailing - which persons of
prudence, discretion, and intelligence exercise in the professional management of their own
affairs, not for speculation, but for investment, considering the probable safety of their capital as
well as the probable income to be derived.
VII AUTHORITY
Authority to manage the City's investment portfolio is derived from section
Municipal Code. Management responsibility for the investment program is delegated to the City
Treasurer
Investment Policy.
The City Treasurer shall establish written procedures for the operation of the investment program
consistent with the Investment Policy. Procedures should include reference to safekeeping, wire
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transfer agreements, banking service contracts, and collateral/depository agreements. Such
procedures shall include explicit delegation of authority to persons responsible for investment
transactions. No person may engage in an investment transaction except as provided under the
terms of this Investment Policy and the procedures established by the City Treasurer. The City
Treasurer shall be responsible for all transactions undertaken and shall establish a system of
controls to regulate the activities of subordinate officials. The City Manager or his/her designee
shall acknowledge in writing all purchases and sales of investments prior to their execution by the
City Treasurer.
VIII ETHICS AND CONFLICTS OF INTEREST
The City Manager, City Treasurer and city employees involved in the Citys banking and
investment process shall conduct the Citys business in an ethical manner and refrain from any
activity or relationship that may be, or have the appearance of, a conflict of interest. Any
questionable activity or relationship shall be reported immediately and in compliance with the
procedures set forth in Section 1.40 Conflicts of Interest and Acceptance of Gifts and other
Gratuities of the City of La Quinta Personnel Manual. Reporting must be made in accordance with
the personnel policies of the City and, until resolved, the officer or employee shall refrain from
participating in the Citys business related to the matter.
The City Manager, City Treasurer and City employees may conduct personal business with banks,
brokers, and other financial institutions that are authorized to conduct business with the City
provided that the terms of the activity to the accountholder with the City are the same as those
that are available to the public in general.
IX AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The City Treasurer maintains a listing of financial institutions which are approved for direct
investment purposes. In addition a list will also be maintained of approved broker/dealers selected
by credit worthiness.
1. Broker/Dealers who desire to become bidders for direct investment transactions must
supply the City with the following:
Current audited financial statements;
Proof of Financial Industry Regulatory Authority (FINRA) Certification;
Trading resolution;
Resume of Financial broker; and
Completion of the City of La Quinta Broker/Dealer questionnaire (see Appendix F)
which contains a certification of having read the City Investment Policy.
The City Treasurer shall evaluate the documentation submitted by the broker/dealer and
independently verify existing reports on file for any firm and individual conducting
investment related business.
The City Treasurer will also contact the following agencies during the verification process:
Financial Industry Regulatory Authority (FINRA) Public Disclosure Report File (1-
800-289-9999).
State of California Department of Corporations (1-916-445-3062).
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The City Treasurer maintains a listing of financial institutions which are approved for
investment purposes. All Broker/Dealers and financial institutions that provide investment
services will be subject to City Council approval.
Each securities dealer shall provide monthly and quarterly reports filed pursuant to U.S.
Treasury Department regulations. Each mutual fund shall provide a prospectus and
statement of additional information.
2. Financial Institutions will be required to meet the following criteria in order to receive City
funds for deposit or investment (see Appendix E, Listing of Approved Financial
Institutions):
a. Insurance - Public Funds shall be deposited only in financial institutions having
accounts insured by the Federal Deposit Insurance Corporation (FDIC).
b. Collateral - The amount of the City deposits or investments not insured by the
FDIC shall be collateralized by securities with market values of 110%, or by
mortgages with market values 150%, of the amount of invested funds plus unpaid
interest earnings.
c. Disclosure - Each financial institution maintaining invested funds in excess of the
FDIC insured amount shall furnish the City a copy of the most recent Call Report.
The City shall not invest in excess of the FDIC insured amount in banking
institutions which do not disclose to the city a current listing of securities pledged
for collateralization in public monies.
X PERMISSIBLE DEPOSITS AND INVESTMENTS
Permissible deposits and investments are summarized below. A more comprehensive list is
included in Appendix A.
MaximumMaximum
Permissible Investments and Limitations
Restrictions
(See Appendix A for Additional Information)AllocationMaturity
Sweep Account:
Current /
Checking & Savings Accounts FDIC Insured & Sweep Accounts 85% of Portfolio U.S. Treasuries
On Demand
and/or GSE's
Interest bearing active bank deposits non FDIC insured collateralized by Current / $40 million
60% of Portfolio
110% of eligible securities On Demand per bank
<= $250,000,
Certificates of Deposit - FDIC Insured
60% of Portfolio 5 Years including interest
per institution
<= $250,000
Negotiable Certificates of Deposit FDIC Insured 30% of Portfolio 5 Years including interest
per institution
<=$20,000,000
U.S. Treasury Bills, Notes and Bonds, and Government National 100% of Portfolio 5 Years maturing 3-10
Mortgage Association (GNMA) Securities Yrs.
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MaximumMaximum
Permissible Investments and Limitations
Restrictions
AllocationMaturity
(See Appendix A for Additional Information)
<=$20,000,000
maturing 3-10
Yrs.
Local Agency Bonds / California Local Agency Obligations 30% of Portfolio 10 Years
Long term
better
U.S. Government Agency Securities and Federal Government Securities
$10 million per
purchase
which contain embedded rate options):
- Federal National Mortgage Association (FNMA) $20,000,000 5 Years 30% of Portfolio
- Federal Home Loan Bank Notes & Bonds (FHLB) $25,000,000 5 Years
- Federal Farm Credit Bank (FFCB) $30,000,000 5 Years
- Federal Home Loan Mortgage Corporation (FHLMC) $20,000,000 5 years
Prime Commercial Paperincluding Temporary Liquidity Guarantee $5,000,000 per
15% of Portfolio 90 Days
Program (TLGP) issuer maximum
Current / $50 million
Local Agency Investment Fund (LAIF) 30% of Portfolio
On Demand per account
Money market mutual funds regulated by the SEC that consist only of US Current / Maintain $1 per
20% of Portfolio
Treasury Securities or GSE's and maintain a par value of $1 per share On Demand share par value
$5,000,000 max
Corporate Notes 10% of Portfolio 3 Years per issuer AA
rated or better
$10,000,000 max
Corporate Notes - Temporary Liquidity Guarantee Program (TLGP) 20% of Portfolio 3 Years per issuer, AA
rated or better
Requires
Professionally Managed Account 10% of Portfolio 3 Years City Council-
Approved RFP
Long-Term Scale
S&P A1 AAA, AA+, AA, AA-, A+, A
P1 Aaa, Aa1, Aa2, Aa3, A1, A2
Fitch AAA, AA+, AA, AA-, A+, A
Checking, Savings, and Sweep Accounts The City will only maintain checking, savings,
and sweep accounts with FDIC insured financial institutions. As authorized by the City
Council, a U.S. Treasury and/or U.S. Agency Securities Money Market Sweep Account
with a $50,000 target balance may be maintained in conjunction with the checking
account.
In addition, the Treasurer may invest in an interest bearing active deposit account as
approved in Government Code Section 53632. The deposit account must be collateralized
with securities that are in accordance with Government Code Sections 53632.5(c). In
addition, the market value of the collateralized securities must be maintained in
accordance with 53652 (a), and be held by a custodian in accordance with the
requirements of Government Code Section 53656. The
the deposit account shall be determined in accordance with Government Code Section
53658.
Certificates of Deposit - As authorized in Government Code Section 53649, Certificates of
Deposit are fixed term investments which are required to be collateralized from 110% to
150% depending on the specific security pledged as collateral in accordance with
Government Code Section 53652.
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Collateralization will be required for Certificates of Deposits in excess of the FDIC insured
amount. The type of collateral is limited to City authorized investments. Collateral will
always be held by an independent third party from the institution that sells the Certificates
of Deposit to the City. Evidence of compliance with State Collateralization policies must
be supplied to the City and retained by the City Treasurer as follows:
Certificates of Deposits Insured by the FDIC: The City Treasurer may waive
collateralization of a deposit that is federally insured.
Certificates of Deposit in excess of FDIC Limits: The amount not federally insured
shall be 110% collateralized securities or 150% mortgages market value of that
amount of invested funds plus unpaid interest earnings.
portfolio.
Negotiable Certificates of Deposit - issued by a nationally or state-chartered bank, a
savings association or a federal association (as defined by Section 5102 of the Financial
Code), a state or federal credit union, or by a federally- or state- licensed branch of a
CDs.
U.S. Treasury Bills, Notes, and Bonds and Government National Mortgage Associations
(GNMA) securities The City may invest in U.S. Treasury bills, notes, and bonds and
GNMA securities directly issued and backed by the full faith and credit of the U.S.
Gprovides for investments in U.S. Treasury
issues and GNMAs of 100% of the portfolio.
Local Agency Bonds and California Local Agency Obligations The City may invest in
California local agency obligations pursuant to 56301(a) and 53301(e). 53601(a) pertains
to investing in bonds issued by a local agency, department, board, agency or authority of
the local agency. 53601(e) pertains to investing in bonds and other defined indebtedness
of a local agency or department, board, agency or authority of the local agency within the
State of California.
Local Agency obligations to 30% of the portfolio with up to a ten year maximum maturity.
In addition, the Agency obligations must be invested in the long term rating of A, A2, A or
In the case of an initial public offering, including refinancings, the Treasurer may purchase
directly from the Bond Underwriter. In the case of secondary issues, the Treasurer will
rely on the approved Broker/Dealers.
U.S. Government Agency Securities and Federal Government Securities The City may
invest in securities issued by U.S. Government instrumentalities and agencies (commonly
referred to as government sponsored enterprises or ). These securities are not
backed by the full faith and credit of the U.S. Government. Publicly owned GSE include
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195
Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation
(FHLMC) and Student Loan Marketing Association (SLMA). Non-publicly owned
include the Federal Home Loan Bank (FHLB), Federal Farm Credit Bank (FFCB), Federal
Land Bank (FLB) and Federal Intermediate Credit Bank (FICB).
and FFCB. For Fiscal Year 2014/2015, the maximum face amount per issuer is $20
million for FNMA and FHLMC, $25 million for FHLB and $30 million for FFCB. In addition,
maximum $10 million face amount per purchase.
Prime Commercial Paper - As authorized in Government Code Section 53601(g), a portion
qualifications regarding investments in commercial paper based on the financial strength of
investments in commercial paper with the following limitations:
Maximum 15% of the portfolio.
Maximum maturity of 90 days.
Maximum of $5 million per issuer.
These limitations are more restrictive than the State code which allows amounts of 25%
of the total portfolio with maturities up to 270 days with no per-issuer limitations.
Local Agency Investment Fund (LAIF) - As authorized in Government Code Section
16429.1 and by LAIF procedures, local government agencies are each authorized to invest
a maximum of $50 million per account in this investment program administered by the
California State Treasurer. The City Treasurer may not invest more than $50 million per
account in LAIF. The City's investment in LAIF is allowable as long as the average
maturity of its investment portfolio does not exceed two years, unless specific approval is
authorized by the City Council. The City limits investment to 30% of the portfolio.
Money Market Mutual Funds - As authorized in Government Code Section 53601(k), local
agencies are authorized to invest in shares of beneficial interest issued by diversified
management companies (mutual funds) in an amount
portfolio. There are a number of other qualifications and restrictions regarding allowable
investments in corporate notes and shares of beneficial interest issued by mutual funds
which include (1) attaining the highest ranking or the highest letter and numerical rating
provided by not less than two of the three largest nationally recognized rating services, or
(2) having an investment advisor registered with the Securities and Exchange Commission
with not less than five ye
with assets under management in excess of five hundred million dollars ($500,000,000).
market funds maintaining a par value of $1 per share that invest in direct issues of the
U.S. Treasury and/or US Agency Securities with an average maturity of their portfolio not
exceeding 90 days and the City limits such investments to 20% of the portfolio.
Corporate Notes - As authorized in Government Code Section 53601 (j), local agencies
may invest in corporate notes. The notes must be issued by corporations organized and
operating in the United States or by depository institutions licensed by the United States
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or any
investment in corporate notes authorized by the Government Code with the following
limitations:
Maturities shall not exceed three years from date of purchase;
Eligible notes shall be regularly quoted and traded in the marketplace;
or better; and
The maximum aggregate investment shall not exceed $5 million face amount for
each issuer.
This is more restrictive than the State code allowed amounts of 30% of the total portfolio
with maturities up to five years with no per-issuer limitations.
Professionally Managed Account(s) - The City Treasurer may place up to 10% of the
portfolio with a professional portfolio management firm (). The PPMF will be
completion of a request for proposal (RFP) as outlined in Appendix G. The PPMF shall
have:
An established professional reputation for asset or investment management;
Knowledge and working familiarity with State and Federal laws governing and
restricting the investment of public funds;
Substantial experience providing investment management services to local public
agencies whose investment policies and portfolio size are similar to those of the
City;
Professional liability (errors and omissions) insurance and fidelity bonding in such
amounts as are required by the City; and
Registration with the Securities and Exchange Commission under the Investment
Advisers Act of 1940.
Before engagement by the City and except as may be specifically waived or revised, the
PPMF with the
following exceptions:
The PPMF may be granted the discretion to purchase and sell investment securities
in accordance with Appendix I of this Investment Policy;
The PPMF is not required to adhere to the buy-and-hold policy of th
Investment Policy; and
The PPMF does not need City Manager or City Treasurer approval to make
permissible investments as detailed in column 8 of Appendix H of this Investment
Policy.
XI INVESTMENT POOLS
There are three (3) types of investment pools:
State-run pools (e.g., LAIF);
Pools that are operated by a political subdivision where allowed by law and the
political subdivision is the trustee (e.g., County Pools); and
Pools that are operated for profit by third parties.
The City Investment Policy permits investment only in pools authorized in Section X.
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XII PAYMENT AND CUSTODY
The City shall engage qualified third party custodians to act in a fiduciary capacity to maintain
custodians shall disburse funds, received from the City for a purchase, to the broker, dealer or
seller only after receiving evidence that the City has legal, record ownership of the securities.
Even though ownership is evidenced in book-entry form rather than by actual certificates, this
procedure is commonly accepted as the delivery versus payment (DVP) method for the transfer of
securities.
XIII INTEREST EARNING DISTRIBUTION POLICY
Interest earnings are generated from pooled investments and specific investments. The following
provisions apply to the calculation and distribution of interest earnings.
1. Pooled Investments - It is the general policy of the City to pool all available operating cash
of the City of La Quinta, Successor Agency to the City of La Quinta Redevelopment
Agency, La Quinta Financing Authority, and La Quinta Housing Authority, and to allocate
interest earnings in the following order, as follows:
a. Payment to the General Fund of an amount equal to the total annual bank service
charges as incurred by the general fund for all operating funds as included in the
annual operating budget.
b. Payment to the General Fund of a management fee equal to 5% of the annual
pooled cash fund investment earnings.
c. Payment to each fund of an amount based on the average computed daily cash
balance included in the common portfolio for the earning period.
2. Specific Investments - Specific investments purchased by a fund shall incur all earnings
and expenses to that particular fund.
XIV INTERNAL CONTROLS AND INDEPENDENT AUDITOR
The City Treasurer shall establish a system of internal controls to accomplish the following
objectives:
Safeguard assets;
The orderly and efficient conduct of its business, including adherence to management
policies;
Prevention or detection of errors and fraud;
The accuracy and completeness of accounting records; and
Timely preparation of reliable financial information.
While no internal control system, however elaborate, can guarantee absolute assurance that the
s assets are safeguards internal control to provide a reasonable
assurance that management of the ins objectives.
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The internal controls shall address the following:
Control of collusion. Collusion is a situation where two or more employees are working in
conjunction to defraud their employer.
Separation of transaction authority from accounting and record keeping. By separating the
person who authorizes or performs the transaction from the people who record or
otherwise account for the transaction, a separation of duties is achieved.
Custodial safekeeping. Securities purchased from any bank or dealer including appropriate
collateral (as defined by State Law) shall be placed with an independent third party for
custodial safekeeping.
Avoidance of physical delivery securities. Book entry securities are much easier to
transfer and account for since actual delivery of a document never takes place. Delivered
securities must be properly safeguarded against loss or destruction. The potential for
fraud and loss increases with physically delivered securities.
Clear delegation of authority to subordinate staff members. Subordinate staff members
must have a clear understanding of their authority and responsibilities to avoid improper
actions. Clear delegation of authority also preserves the internal control structure that is
contingent on the various staff positions and their respective responsibilities as outlined in
the Segregation of Major Investment Responsibilities appendices.
Written confirmation or telephone transactions for investments and wire transfers. Due to
the potential for error and improprieties arising from telephone transactions, all telephone
transactions shall be supported by written communications or electronic confirmations and
approved by the appropriate person. Written communications may be via fax if on
letterhead and the safekeeping institution has a list of authorized signatures. Fax
correspondence must be supported by evidence of verbal or written follow-up.
Development of a wire transfer agreement with the Cits bank and third party custodian.
This agreement should outline the various controls, security provisions, and delineate
responsibilities of each party making and receiving wire transfers.
The system of internal controls developed by the City, shall be reviewed annually by the
independent auditor in connection with the annuas Financial Statements. The
letter on internal control over financial reporting and compliance as it
pertains to cash and investments, if any, shall be directed to the City Manager who will direct the
letter, as it pertains, to cash and investment activitie
completion of each annual audit, the independent auditor shall meet with the Investment Advisory
Board and discuss the auditing procedures performed and the review of internal controls for cash
and investment activities. See Appendix D, Segregation of Major Investment Responsibilities.
XV REPORTING STANDARDS
The City Treasurer shall submit a monthly Treasurers Report to the City Council and the
Investment Advisory Board that includes all cash and investments under the authority of the
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Treasurer. The Treasurers Report shall summarize cash and investment activity and changes in
balances and include the following:
A certification by the City Treasurer;
A listing of purchases and sales/maturities of investments;
Cash and Investments categorized by authorized investments, except for LAIF
which will be provided quarterly and show yield and maturity;
Comparison of month end actual holdings to Investment Policy limitations;
Current year and prior year monthly history of cash and investments for trend
analysis;
Balance Sheet;
Distribution of cash and investment balances by fund;
A year to date historical cash flow analysis and projection for the next six months;
and
A two-year list of historical interest rates.
XVI FINANCIAL ASSETS AND INVESTMENT ACTIVITY NOT SUBJECT TO THIS POLICY
The Investment Policy does not apply to the following:
Cash and Investments raised from Conduit Debt Financing
ost-retirement benefit
programs
Cash and Investments held in lieu of retention by banks or other financial
institutions for construction projects
Short or long term loans made to other entities by the City or Agency
Short term (Due to/from) or long term (Advances from/to) obligations made
either between the City and its funds or between the City and Agency
XVII INVESTMENT OF BOND PROCEEDS
Investment Policy shall govern bond proceeds and bond reserve fund investments.
California Code Section 5922 (d) governs the investment of bond proceeds and reserve funds in
accordance with bond indenture provisions which shall be structured in accordance with the
s Investment Policy.
Arbitrage Requirement - The US Tax Reform Act of 1986 requires the City to perform arbitrage
calculations as required and return excess earnings to the US Treasury from investments of
proceeds of bond issues sold after the effective date of this law. These arbitrage calculations
may be contracted with an outside source to provide the necessary technical assistance to
comply with this regulation. Investable funds subject to the 1986 Tax Reform Act will be kept
segregated from other funds and records will be kept in a fashion to facilitate the calculations.
s investment position relative to the new arbitrage restrictions is to continue pursuing
the maximum yield on applicable investments while ensuring the safety of capital and liquidity. It
is the City's position to continue maximization of yield and to rebate excess earnings, if
necessary.
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XVIII INVESTMENT ADVISORY BOARD - CITY OF LA QUINTA
The Investment Advisory Board (IAB) is a standing board composed of five members from the
public that are appointed by the City Council. Background information will be requested and
potential candidates must agree to a background check and verification. On an annual basis, in
conjunction with the Political Reform Act disclosure statutes, or at any time if a change in
circumstances warrants, each board member will provide the City Council with a disclosure
statement which identifies any matters that have a bearing on the appropriateness of that
All board members shall report annually to the City Clerk on
Form 700, Statement of Economic Interests, any activities, interests, or relationships that may be,
or have the appearance of, a conflict of interest.
The IAB must meet at least quarterly, but usually meets monthly, to:
R
changes;
Review monthly treasury report and note compliance with the Investment Policy and
adequacy of cash and investments for anticipated obligations;
Receive and consider other reports provided by the City Treasurer;
M
procedures, internal controls and findings for cash and investment activities; and
Serve as a resource for the City Treasurer on matters such as proposed investments,
internal controls, use or change of financial institutions, custodians, brokers and dealers.
The IAB will report to the City Council after each meeting either in person or through
correspondence at a regular City Council meeting. See Appendix Investment Advisory Board
Provisions
XIX INVESTMENT POLICY ADOPTION
The Investment Policy will be reviewed annually by the Investment Advisory Board
and the City Treasurer. The Investment Advisory Board will forward the Investment Policy with
any revisions to the City Manager and City Attorney for their review and comment. A joint
meeting will be held with the Investment Advisory Board, City Manager, City Attorney, and City
Treasurer to review the Investment Policy and any comments prior to submission to the City
Council for their consideration. The Investment Policy shall be adopted by resolution of the City
Council annually before the end of June of each year.
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Rated AAA by 2 of 3 S & P rated AA or At least long term
S&P rated AA or
assets>=$500
FDIC Insured
Fidelity Insured
1)
FDIC InsuredFDIC InsuredFDIC Insured
The City Treasurer will be permitted to invest in the following types of investments subject to the maximum percentage allocation limits and bid process requirements. All maturities
agencies;
1)
-
Appendix A
Quality
Credit
Yrs.
better.
-
better
S&P (A
>5
SEC
-
Non
202
Current /on Demand
Current/On DemandCurrent/On Demand
On Demand
MaximumMaturity
Current /
10 years
90 days
years5 years3 yearsyearsyearsyearsyears3 years3 years3 years
City
CITY OF LA QUINTA
55555
Sweep Account: U.S. Treasuries and/or GSE's
ncluding interest per institution
<= $250,000 including interest per institution
Yrs.
Maintain $1 per share par value
$5,000,000 per issuer maximum
$10,000,000 max per issuer
$5,000,000 max per issuer
5
Requires Approved RFP
-
0,000,000 per bank
,0000,000 maturing 3
<=^$30,000,0000
Restrictions
per account
0,000,000
City
5
$
<= $250,000 i
4
$
30
<=$
State Maximum
100% Portfolio100% Portfolio100% Portfolio100% Portfolio100% Portfolio100% Portfolio100% Portfolio
Surplus
25% Portfolio30% Portfolio20% Portfolio30% Portfolio30% Portfolio
tion
270 Days
Funds
%
Alloca
30
SUMMARY OF PERMISSIBLE DEPOSITS AND INVESTMENTS
(Footnote
100% Portfolio
85% Portfolio60% Portfolio60% Portfolio30% Portfolio15% PortfolioPortfolio10% Portfolio20% Portfolio10% Portfolio
Allocation
$20,000,000$25,000,000$30,000,000$20,000,000$50,000,000
Maximum
City
100%
1)
20%
non FDIC insured collateralized
Money market mutual funds regulated by the SEC that consist only of
must be less than or equal to the maximum maturity allowed.
US Treasury Securities or GSE's and maintain a par value of $1 per
Prime Commercial Paper including Temporary Liquidity Guarantee
Temporary Liquidity Guarantee Program (TLGP)
17
Securities (except collateralized mortgage obligations (CMO's) or
U.S. Treasury Bills, Notes and Bonds, and Government National
Checking & Savings Accounts (FDIC Insured) & Sweep Accounts
U.S. Government Agency Securities and Federal Government
Permissible Deposits and Investments
h contain embedded rate options):
Federal Home Loan Mortgage Corporation (FHLMC)
Federal Home Loan Bank Notes & Bonds (FHLB)
Local Agency Bonds/California Agency Obligations
Federal National Mortgage Association (FNMA)
rtgage Association (GNMA) securities
Local Agency Investment Fund (LAIF)
est bearing active bank deposits
Federal Farm Credit Bank (FFCB)
Professionally Managed Account
Negotiable Certificate of Deposit
by 110% of eligible securities
Certificate of Deposit
structured notes whic
-
Corporate Notes
Program (TLGP)
Corporate Notes
share
Inter
Mo
----
Process
Bid
1222333456678
The City Treasurer will not be permitted to invest in the following types of investments (see Footnote all cash and investments, including bond proceeds. In addition, the State has
adopted limits on the
inclusive. Only
Appendix A (continued)
203
-
ot meant to be all
The above list of unauthorized deposits and investments is n
Mutual Funds other than money market mutual funds
Unauthorized Investments
Reverse Repurchase Agreements
Preferred and Common Stock
the Policy are permissible.
Repurchase Agreements
Asset Backed Securities
Bankers Acceptances
Indebtedness
Derivatives
, Mutual
State
--------
e City may engage the services of a professional portfolio management firm which may invest in Bankers Acceptances
investments are
uct a bid process at least every four (4) years or sooner if considered necessary for banking and/or custodian services. Since banking services and custodian services are so closely
related it is anticipated that the bid he Federal Deposit 1 listed on Money Market mutual funds must comply with Government Code Section 53601(k). The fund must be registered by 1 listed
on The professional portfolio management firm (PPMF) will be approved by the City Council based upon the City ursuant to completion of a request for proposal (RFP) as outlined in the
appendices. econdary issues follow bid process
has imposed a maximum limitation based upon the total portfolio of investments. Total portfolio
--
At least two bids from broker/dealers that qualify under Securities and Exchange Commission Rule 15C3
s and Exchange Commission Rule 15C3
The financial institutions can be either state or federally chartered and must be insured by t
erwriter, s
rom Bond Und
the SEC and must include marking the portfolio to market daily.
At least two bids from broker/dealers that qualify under Securitie
18
Initial offerings the Treasurer may purchase directly f
both services.
process would include the scope of
Insurance Corporation (FDIC).
investment of surplus funds.
proval.
See also Footnote 2.
Periodically cond
City Council Ap
The City
Policy.
Th
3.
Process
Footnote 1Footnote 2
Bid
1234567 8
Appendix B
City of La Quinta Municipal Code
Chapter 2.70
INVESTMENT ADVISORY BOARD PROVISIONS
Sections:
2.70.010 General Rules Regarding Appointment.
2.70.020 Board meetings.
2.70.030 Board functions.
2.70.010 General rules regarding appointment
A. Except as set out below, see Chapter 2.06 for General Provisions.
B. The Investment Advisory Board (board) is a standing board composed of five (5)
members from the public that are appointed by city council.
C. Applicants for the board should have a background in finance, preferably with knowledge
and/or experience in markets, controls and accounting for securities. Background information will
be requested and potential candidates must agree to a background check and verification.
D. On an annual basis, in conjunction with the Political Reform Act disclosure statutes, or at
any time if a change in circumstances warrants, each board member will provide the City Council
with a disclosure statement which identifies any matters that have a bearing on the
appropriatenes
limited to, changes in employment, changes in residence, or changes in clients.
E. To promote continuity, the expiration of the terms of the members of the board shall be
staggered. The term of service is three years, with one or two terms expiring each year.
2.70.020 Board meetings.
The Board usually will meet monthly, but this schedule may be extended to quarterly
meetings upon the concurrence of the Board and the City Council. The specific meeting dates will
be determined by the Board Members and meetings may be called for on an as needed basis.
2.70.030 Board functions.
A. The principal functions of the Board are: (1) rs Investment
Policy and recommend appropriate changes; (2) review monthly Treasury Report 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 s financial statements, and
s comments on auditing procedures, internal controls, and findings
for cash and investment activities, and; (5) serve as a resource for the City Treasurer on matters
such as proposed investments, internal controls, use or change of financial institutions, custodians,
brokers and dealers.
B. The Board will report to the City Council after each meeting either in person or through
correspondence at a regular City Council meeting.
19
204
Appendix C
City of La Quinta Municipal Code
Chapter 3.08
INVESTMENT OF MONEYS AND FUNDS
Sections:
3.08.010 Investment of city moneys and deposit of securities.
3.08.020 Authorized investments.
3.08.030 Sales of securities.
3.08.040 City bonds.
3.08.050 Reports.
3.08.060 Deposits of securities.
3.08.070 Trust fund administration.
3.08.010 Investment of city moneys and deposit of securities.
Pursuant to, and in accordance with, and to the extent allowed by, Sections
53607 and 53608 of the Government Code, the authority to invest and reinvest
moneys of the city, to sell or exchange securities, and to deposit them and provide for
their safekeeping, is delegated to the city treasurer. (Ord. 2 1 (part), 1982)
£
3.08.020 Authorized investments.
Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is
authorized to purchase, at their original sale or after they have been issued, securities
which are permissible investments under any provision of state law relating to the
investing of general city funds, including but not limited to Sections 53601 and 53635 of
the Government Code, as said sections now read or may hereafter be amended, from
moneys in his custody which are not required for the immediate necessities of the city
and as he may deem wise and expedient, and to sell or exchange for other eligible
securities and reinvest the proceeds of the securities so purchased. (Ord. 2 1 (part),
£
1982)
3.08.030 Sales of Securities.
From time to time the city treasurer shall sell the securities in which city moneys have
been invested pursuant to this chapter, so that the proceeds may, as appropriate, be
applied to the purchase for which the original purchase money may have been designated
or placed in the city treasury. (Ord.2 l (part),
£
3.08.040 City bonds.
Bonds issued by the city and purchased pursuant to this chapter may be cancelled
either in satisfaction of sinking fund obligations or otherwise if proper and appropriate;
provided, however, that the bonds may be held uncancelled and while so held may be
resold. (Ord. 2 1 (part), 1982)
£
20
205
3.08.050 Reports.
The city treasurer shall make a monthly report to the city council of all investments
madepursuant to the authority delegated in this chapter. (Ord. 2 1 (part), 1982)
£
3.08.060 Deposits of securities.
Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is
authorized to deposit for safekeeping, the securities in which city moneys have been
invested pursuant to this chapter, in any institution or depository authorized by the terms
of any state law, including but not limited to Section 53608 of the Government Code as
it now reads or may hereafter be amended. In accordance with said section, the city
treasurer shall take from the institution or depository a receipt for the securities so
deposited and shall not be responsible for the securities delivered to and receipted for by
the institution or depository until they are withdrawn therefrom by the city treasurer.
(Ord. 2 1 (part), 1982
£
3.08.070 Trust fund administration.
Any departmental trust fund established by the city council pursuant to Section
36523 of the Government Code shall be administered by the city treasurer in accordance
with Section 36523 and 26524 of the Government code and any other applicable
provisions of law. (Ord. 2 1 (part), 1982)
£
21
206
Appendix D
SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES
Function Responsible Parties
Develop and Recommend Modifications Investment Advisory Board
to Citys Formal Investment Policy and City Treasurer
Review Citys Investment Policy City Manager
and Recommend City Council Action and City Attorney
Adopt Formal Investment Policy City Council
Implement Formal Investment Policy City Treasurer
Review Financial Institutions & Select Investments City Treasurer
Acknowledge Investment Selections City Manager or his/her
designee
Execute Investment transactions City Treasurer or City Manager
Confirm Wires (if applicable) Accounting Manager or
Financial Services Assistant
Record Investment Ts Accounting Manager or
Accounting Records Financial Services Assistant
Investment Verification (match broker confirmation City Treasurer and Financial
to City investment records) Services Assistant
Reconcile Investment Records
to Accounting Records and Bank Statements Financial Services Assistant
Reconcile Investment Records
to Treasurers Report of Investments Accounting Manager
Security of Investments at City Accounting Manager or Senior
Secretary
Security of Investments outside City Third Party Custodian
Review Internal Control Procedures External Auditor
22
207
Appendix E
LISTING OF APPROVED FINANCIAL INSTITUTIONS
1. Banking Services - Wells Fargo Bank, Government Services,
Los Angeles, CA (Banking Services)
Rabobank N.A., Government Banking
Group, Roseville, CA (Collateralized Bank
Deposits)
2. Custodian Services - Bank of New York/Mellon
3. Deferred Compensation - International City/County Management
Association Retirement Corporation
4. Broker/Dealer Services - Banc of America Securities/Merrill Lynch
Morgan Stanley
CitiGroup
First Empire Securities
5. Government Pool - State of California Local Agency
Investment Fund
6. Bond Trustees - 1996 Lease Revenue Bonds US Bank
1998 RDA Project Area 1&2 US Bank
2001 RDA Project Area 1 US Bank
2002 RDA Project Area 1 US Bank
2003 RDA Project Area 1 US Bank
2004 Local Agency Rev US Bank
2011 RDA Project Area 2 US Bank
2011 Fin Auth Housing 1&2 US Bank
2013 Successor Agency US Bank
Assessment Districts US Bank
No Changes to this listing may be made without City Council approval
23
208
Appendix F
BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION
1. Name of Firm:________________________________________________________________________
2. Address:___________________________________________________________________________
3. Telephone: (___) ________________ (___ )____________________________________________
4. Broker's Representative to the City (attach resume):
Name:_____________________________________________________________________________
Title:_______________________________________________________________________________
Telephone: (___)____________________________________________________________________
5. Manager/Partner-in-charge (attach resume):
Name:_____________________________________________________________________________
Title:_______________________________________________________________________________
Telephone:_________________________________________________________________________
6. List all personnel who will be trading with or quoting securities to City employees (attach
resume)
Name:____________________________________________________________________________
Title:______________________________________________________________________________
Telephone: (___)__________________ (___)______________________________________________
7. Which of the above personnel have read the City's Investment Policy?
____________________________________________________________________________________
8. Which instruments are offered regularly by your local office? (Must equal 100%)
_____% U.S. Treasuries _____% Repos
_____% BA's _____% Reverse Repos
_____% Commercial Paper s
s _____% Derivatives
_____% Mutual Funds _____% Stocks/Equities
_____% Agencies (specify): _____% Other (specify):
_____________________________ __________________________
_____________________________ __________________________
_____________________________ __________________________
_____________________________ __________________________
9. References -- Please identify your most directly comparable public sector clients in our
geographical area.
Entity Entity
______________________________________________
Contact Contact
__________________________________________
24
209
Telephone Telephone
(____)____________ (___)_____________
Client Since Client Since
_____________________________________
10. Have any of your clients ever sustained a loss on a securities transaction arising from a
misunderstanding or misrepresentation of the risk characteristics of the instrument? If so,
explain.
___________________________________________________________________________________
____________________________________________________________________________________
___________________________________________________________________________________
____________________________________________________________________________________
11. Has your firm or your local office ever been subject to a regulatory or state/ federal
agency investigation for alleged improper, fraudulent, disreputable or unfair activities
related to the sale of securities? Have any of your employees been so investigated? If
so, explain.
__________________________________________________________________________________
___________________________________________________________________________________
____________________________________________________________________________________
___________________________________________________________________________________
12. Has a client ever claimed in writing that you were responsible for an investment loss?
Yes_________ No_________ If yes, please provide action taken________________________
___________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
Has a client ever claimed in writing that your firm was responsible for an investment
loss? Yes_________ No_________ If yes, please provide action taken_________________
____________________________________________________________________________________
___________________________________________________________________________________
____________________________________________________________________________________
Do you have any current or pending complaints that are unreported to FINRA?
Yes_________ No_________ If yes, please provide action taken__________________________
___________________________________________________________________________________
___________________________________________________________________________________
Does your firm have any current, or pending complaints that are unreported to FINRA?
Yes_________ No_________ If yes, please provide action taken___________________________
___________________________________________________________________________________
____________________________________________________________________________________
13. Explain your clearing and safekeeping procedures, custody and delivery process.
____________________________________________________________________________________
_____________________________________________________________________________________
Who audits these fiduciary responsibilities?____________________________________________
Latest Audit Report Date_____________________________________________________________
25
210
14. How many and what percentage of your transactions failed?
Last month? _______% $__________
Last year? _______% $__________
15. Describe the method your firm would use to establish capital trading limits for the City of
La Quinta.__________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
16. Is your firm a member in the S.I.P.C. insurance program? Yes_______ No_______
If yes, explain primary and excess coverage and carriers.________________________________
___________________________________________________________________________________
____________________________________________________________________________________
17. What portfolio information, if any, do you require from your clients?_____________________
____________________________________________________________________________________
____________________________________________________________________________________
___________________________________________________________________________________
18. What reports and transaction confirmations or any other research publications will the City
receive?____________________________________________________________________________
____________________________________________________________________________________
19. Does your firm offer investment training to your clients? Yes_______ No________
20. Does your firm have professional liability insurance? Yes_________ No_________
If yes, please provide the insurance carrier, limits and expiration date.__________________
___________________________________________________________________________________
____________________________________________________________________________________
21. Please list your FINRA/NASD Registration Number______________________________________
22. Do you have any relatives who work at the City of La Quinta?
Yes______ No_______ If yes, Name and Department____________________________________
23. Do you maintain an office in California? Yes_______ No_________
24. Do you maintain an office in La Quinta or Riverside County? Yes_______ No_________
25. Please enclose the following:
Latest audited financial statements;
Samples of reports, transaction confirmations and any other research/publications the
City will receive;
Samples of research reports and/or publications that your firm regularly provides to
clients; and
Complete schedule of fees and charges for various transactions.
26
211
***CERTIFICATION***
I hereby certify that I have personally read the Statement of Investment Policy of the City of La
Quinta, and have implemented reasonable procedures and a system of controls designed to
preclude imprudent investment activities arising out of transactions conducted between our firm
and the City of La Quinta. All sales personnel will bs investment
objectives, horizons, outlooks, strategies and risk constraints whenever we are so advised by the
City. We pledge to exercise due diligence in informing the City of La Quinta of all foreseeable
risks associated with financial transactions conducted with our firm.
By signing this document the City of La Quinta is authorized to conduct any and all background
checks.
Under penalties of perjury, the responses to this questionnaire are true and accurate to the best of
my knowledge.
Broker Representative____________________________________________________________________
Date______________________________ Title__________________________________________________
Sales Manager and/or Managing Partner*__________________________________________________
Date_______________________________ Title_________________________________________________
27
212
Appendix G
Request for Proposals
Professional Portfolio Management Firm
City of La Quinta, CA
The City of La Quinta, CA is soliciting Requests for Proposals (RFP) from interested firms for the
provision of a discretionary investment management services for City of La Quinta, CA. The
portfolio to be managed of the invested assets is will be appr
investment portfolio and will be invested between 0 3 years.
th
your information.
Questions regarding this RFP should be directed to:
Name: Rita Conrad
Title: Finance Director/Treasurer
City of: La Quinta, CA
Address: 78-495 Calle Tampico
City, State, Zip Code: La Quinta, CA 92253
Phone Number: (760)777-7150
I. CRITERIA FOR EVALUATION AND SELECTION
Experience of the firm in providing services to public sector entities of similar size
and with similar investment objectives;
Professional experience and qualifications of the individuals assigned to the
account;
Portfolio management resources, investment philosophy and approach;
Responsiveness to the RFP, communicating an understanding of the overall
program and services required;
Reporting capabilities;
Fees.
II. SELECTION TIMETABLE
A. \[Month, Day and Year\] Proposals due by \[Time\] PST.
B. \[Month, Day and Year\] Proposals evaluated: to be determined
C. \[Month, Day and Year\] \[City of La Quinta, CA\] \[Board/Council\] approves selection
and awards contract.
III. FORMAT FOR PROPOSALS
Please format your response to this RFP in the following manner:
A. Organization
28
213
1. Describe your organization, date founded, ownership and other business
affiliations. Provide number and location of affiliated offices. Specify the number
of years your organization has provided investment management service.
2.
research, etc.) and comment on your
3. Within the past three years, have there been any significant developments in your
organization (e.g., changes in ownership, new business ventures)? Do you expect
any changes in the near future?
4. Describe any U.S. Securities and Exchange Commission (SEC) censures or litigation
involving your organization, any officer, or employee at any time in the last ten
years.
5.
coverage. Include dollar amount of coverage.
B. Personnel
1. Identify the number of professionals employed by your firm by classification.
2. Provide an organization chart showing function, positions, and titles of all the
professionals in your organization.
3. Provide biographical information on investment professionals that will be involved
in the decision-making process for our portfolio, including number of years at your
firm. Identify the person who will be the primary portfolio manager assigned to the
account.
4. Describe
address any incentive compensation programs.
C. Assets Under Management
1.Summarize your institutional investment management asset totals by category for
your latest reporting period in the following table:
Nsgdq Qdrsqhbshud
Mtladq Mtladq ne
Etmcr
Nodq`shmf Etmcr
ne Bkhdmsr Bkhdmsr
Governmental _________ $_______________ _________ $_______________
Governmental Pension _________ $_______________ N/A N/A
Non Governmental
_________ $_______________
N/A N/A
Pension
29
214
Corporate _________ $_______________ N/A N/A
High Net Worth Client _________ $_______________ N/A N/A
Endowmental/Foun-
_________ $_______________ N/A N/A
dation
2.Provide the number of separate accounts whose portfolios consist of operating
funds.
3.List in the following table the percentage by market value of aggregate assets
under all governmental accounts under management for your latest reporting
period:
Percent by Market
Type of Asset
Value
U.S. Treasury securities
Federal Agency obligations
Corporate securities rated AAA-AA
Corporate securities rated A
Corporate securities rated BBB or
lower
Other
(specify_______________________)
4.Describe the procedures that your firm has in place to address the potential or
actual credit downgrade of an issuer and to disclose and advise a client of the
situation.
5. Provide data on account/asset growth over the past five years. Indicate the
number of government accounts gained and the number of government accounts
lost.
6. List your five governmental largest clients. Identify those that are exclusively
operating fund relationships and/or those that are other relationships (e.g., bond
fund, retirement fund).
7. I and II (including all schedules).
8. Provide proof of State of California Registration, if your firm is not eligible for SEC
registration.
9. Provide a sample contract for services.
30
215
D. Philosophy/Approach
1.
philosophy regarding average duration, maturity, investment types, credit quality,
and yield.
2. Describe in detail your investment process, as you would apply it to City of La
3. What are the primary strategies for adding value to portfolios?
4. Describe the process you would recommend for establishing the investment
objectives and constraints for this account.
5. Describe in detail your process of credit risk management, including how you
analyze credit quality, monitor credits on an ongoing basis, and report credit to
governmental accounts.
6.
7. -making process in terms of structure, committees,
membership, meeting frequency, responsibilities, integration of research ideas, and
portfolio management.
8. Describe your research capabilities as they would pertain to governmental
accounts. What types of analysis do you use?
9. with the broker-dealer
community.
E. Portfolio Management
1. Are portfolios managed by teams or by one individual?
2. What is the average number of accounts handled per manager?
3. Which professional staff member will be the primary client contact for City of La
Quinta, CA?
4. How frequently are you willing to meet with us?
5.Describe procedures used to ensure that portfolios comply with client investment
objectives, policies, and bond resolutions.
F.Fees Charged
1. schedule applicable to this RFP.
2.Identify any expenses that would not be covered through this fee structure and
31
216
3.Is there a minimum annual fee?
G. Performance Reporting
1.Please report on all accounts under $100 million.
2.Please provide performance history for governmental accounts for the last five
years.
3.Please provide risk measurements for governmental accounts for the last five
years.
4. Indicate whether your returns are calculated and compiled in accordance with
the Association for Investment Management and Research (AIMR/CFA Institute)
standards.
5. Do your reports conform to the State of California reporting standards? Are you
willing to customize your reports to meet our specifications?
6. How will you notify us of investment transactions?
7. Are confirmations of investment transactions sent directly by the broker/dealer to
the client?
8. Do your reports include rating information on investments which is required by
GASB 40?
H.References
Provide a list of at least five (5) client references in California. References should be
public agencies with portfolio size and investment objectives similar to City of La Quinta,
CA. Include length of time managing the assets, contact name, and phone number.
I.Insurance Requirements
Exhibit A defines the insurance requirements that will need to be met prior to the
J.Submittal of proposals
1.Seven (7) copies of the proposal shall be submitted in a sealed envelope bearing
the caption RFP for (City of La Quinta, CA) and addressed to:
City of La Quinta, CA
78-495 Calle Tampico
La Quinta, CA 92253
Attention: Rita Conrad, Finance Director/Treasurer
32
217
2.Proposal must be received no later than \[Time\] PST on \[Month, Day, and Year\].
3.Proposals should be verified before submission. The City of La Quinta, CA shall
not be responsible for errors or omissions on the part of the respondent in
preparation of a proposal. The City of La Quinta, CA reserves the right to reject
any and all proposals, to wave any irregularities, or informalities in the
proposals, and to negotiate modifications to any proposal.
Enclosures: Investment Policy
Treasurers Report
33
218
Appendix H
Portfolio
ment Firm
not need City Manager or City Treasurer approval to make permissible
Allowed per
Professional
YesYesYesYesYesYesYesYesYesYesYesYesYes
(8)
NoNoNoNoNoNoNoNo
219
Manage
Allowed per
City Policy
Yes
YesYesYesYesYesYesYesYesYesYes
(7)
NoNoNoNoNoNoNoNoNoNo
Collateralized 110%
Comments
(6)
.
ory Commission
1
-
1 / F
MultipleMultipleMultiple
Credit
Rating
Limits
NoneNoneNoneNoneNoneNoneNoneNoneNoneNoneNoneNoneNoneNoneNone
(5)
AA
does
-
A
1 / P
and
-
Investment: Investment Portfolio Reporting Practices CA Debt and Investment Advis
A
policy
portfolio
20% of the base value of the portfolio
Professional Portfolio Management Firm
buy and hold
Authorized Investment
Limits (% of Portfolio)
the base value of the
25% of portfolio
NoneNoneNoneNoneNoneNoneNoneNoneNoneNoneNoneNone
(4)
40%30%20%20%30%20%
is not required to adhere to the
20% of
180 Days270 Days
MaximumMaturity
92 Days92 Days
5 Years5 Years5 Years5 Years5 Years5 Years5 Years5 Years5 Years5 Years
1 Year
NoneNoneNoneNoneNoneNone
(3)
34
Firm (PPMF)
Reverse Repurchase Agreements
s)
Securities Lending Agreements
Interest bearing active deposits
Obligations
CA Local Agency Obligations
Collateralized Bank Deposits
Money Market Mutual Funds
County Pooled Investments
negotiable CD
Repurchase Agreements
Asset Backed Securities
lumn (8).
Investment Category Cash and Equivalents
Bankers Acceptances
Local Agency Bonds
Medium Term Notes
Commercial Paper
s
US Treasuriests
Permissible Investment Chart
Mutual Fundsment
US Agencies
Negotiable CDTime Deposi
of California
investments as detailed in co
LAIF
(2)
anage
-
(including non
-
Source of Columns (1) through (5)
Professional Portfolio m
State
City of La Quinta
53601(g), 53635
GovernmentCode Section
53601(m)
California
53601(a)53601(d)53601(h)53601(n)53601(b)1(e)
53601(c)53601(k)53601(k)
53601(f)deposits and
53601(i)53601(i)53601(i)
16429.1
5368453632
Note: The
(1)
5360
Appendix I
Investment Management Process and Risk
Except as provided for in Section 27000.3, Government Code Section 53600.3 declares as a trustee
each person, treasurer, or governing body authorized to make investment decisions on behalf of local
agencies. As trustees are subject to the prudent investor standard. These persons shall act with care,
skill, prudence, and diligence under the circumstances then prevailing when investing, reinvesting,
purchasing, acquiring, exchanging, selling, and managing funds. Section 53600.5 further stipulates
that the primary objective of any person investing public funds is to safeguard principal; secondly, to
meet liquidity needs of the depositor; and lastly, to achieve a return or yield on invested funds
(Government Code Section 27000.5 specifies the same objectives for county treasurers and board of
supervisors).
Risk is inherent throughout the investment process. There is investment risk associated with any
investment activity and opportunity risk related to inactivity. Market risk is derived from exposure to
overall changes in the general level of interest rates while credit risk is the risk of loss due to the failure
of the insurer of a security. The market value of a security varies inversely with the level of interest
rates. If an investor is required to sell an investment with a five percent yield in a comparable seven
percent rate environment, that security will be sold at a loss. The magnitude of that loss will depend on
the amount of time until maturity.
Purchasing certain allowable securities with a maturity of greater than five years requires approval of
the governing board (see Government Code Section 53601). Part of that approval process involves
assessing and disclosing the risk and possible volatility of longer-term investments
Another element of market risk is liquidity risk. Instruments with unique call features or special
structures, or those issued by little known companies, are often
thinly traded. Their uniqueness often makes finding prospective buyers in a secondary market more
difficult and, consequently, the securities' marketability and price are discounted. However, under
certain market conditions, gains are also possible with these types of securities.
Default risk represents the possibility that the borrower may be unable to repay the obligation as
scheduled. Generally, securities issued by the federal government and its agencies are considered the
most secure, while securities issued by private corporations or negotiable certificates of deposit issued
by commercial banks have a greater degree of risk. Securities with additional credit enhancements,
such as bankers acceptances, collateralized repurchase agreements and collateralized bank deposits are
somewhere between the two on the risk spectrum.
The vast majority of portfolios are managed within a buy and hold policy. Investments are purchased
with the intent and capacity to hold that security until maturity. At times, market forces or operations
may dictate swapping one security for another or selling a security before maturity. Continuous analysis
and fine tuning of the investment portfolio are considered prudent investment management.
The Government Code contains specific provisions regarding the types of investments and practices
permitted after considering the broad requirement of preserving principal and maintaining liquidity before
seeking yield. These provisions are intended to promote the use of reliable, diverse, and safe investment
instruments to better ensure a prudently managed portfolio worthy of public trust.
Chapter II. Fund Management
Local Agency Investment Guidelines 2010 Issued by California Debt and Investment Advisory Commission
35
220
Appendix J
GLOSSARY
(Adopted from the Municipal Treasurers Association)
The purpose of this glossary is to provide the reader of the City of La Quinta investment
policies with a better understanding of financial terms used in municipal investing.
AGENCIES: Federal agency securities and/or introductory material, and a detailed Statistical
Government-sponsored enterprises. Section.
ASKED: The price at which securities are offered. CONDUIT FINANCING: A form of Financing in
which a government or a government agency
BANKER ACCEPTANCE (BA): A draft or bill or lends its name to a bond issue, although it is
exchange accepted by a bank or trust company. acting only as a conduit between a specific project
The accepting institution guarantees payment of and bond holders. The bond holders can look only
the bill, as well as the issuer. to the revenues from the project being financed
for repayment and not to the government or
BID: The price offered by a buyer of securities. agency whose name appears on the bond.
(When you are selling securities, you ask for a
bid.) See Offer. COUPON: (a) The annual rate of interest that a
bons issuer promises to pay the bondholder on
BROKER: A broker brings buyers and sellers the bons face value. (b) A certificate attached
together for a commission. to a bond evidencing interest due on a payment
date.
CERTIFICATE OF DEPOSIT (CD): A time deposit
with a specific maturity evidenced by a DEALER: A dealer, as opposed to a broker, acts as
certificate. Large-denomination Cs are typically a principal in all transactions, buying and selling
negotiable. for his own account.
COLLATERAL: Securities, evidence of deposit or DEBENTURE: A bond secured only by the general
other property which a borrower pledges to credit of the issuer.
secure repayment of a loan. Also refers to
securities pledged by a bank to secure deposits of DELIVERY VERSUS PAYMENT: There are two
public monies. methods of delivery of securities: delivery versus
payment and delivery versus receipt. Delivery
COMMERCIAL PAPER: Short-term unsecured versus payment is delivery of securities with an
promissory notes issued by a corporation to raise exchange of money for the securities. Delivery
working capital. These negotiable instruments versus receipt is delivery of securities with an
are purchased at a discount to par value or at par exchange of a signed receipt for the securities.
value with interest bearing. Commercial paper is
issued by corporations such as General Motors DERIVATIVES: (1) Financial instruments whose
Acceptance Corporation, IBM, Bank America, etc. return profile is linked to, or derived from, the
movement of one or more underlying index or
COMPREHENSIVE ANNUAL FINANCIAL REPORT security, and may include a leveraging factor, or
(CAFR): The official annual report for the City of (2) financial contracts based upon notional
La Quinta. It includes five combined statements amounts whose value is derived from an
for each individual fund and account group underlying index or security (interest rates, foreign
prepared in conformity with GAAP. It also exchange rates, equities or commodities).
includes supporting schedules necessary to
demonstrate compliance with finance-related DISCOUNT: The difference between the cost price
legal and contractual provisions, extensive of a security and its maturity when quoted at
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lower than face value. A security selling below 3. FLBs (Federal Land Bank Bonds) - Long-term
original offering price shortly after sale also is mortgage credit provided to farmers by Federal
considered to be at a discount. Land Banks. These bonds are issued at
irregular times for various maturities ranging
DISCOUNT SECURITIES: Non-interest bearing from a few months to ten years. The
money market instruments that are issued a minimum denomination is $1,000. They carry
discount and redeemed at maturity for full face semi-annual coupons. Interest is calculated on
value, e.g., U.S. Treasury Bills. a 360-day, 30 day month basis.
DIVERSIFICATION: Dividing investment funds 4. FFCBs (Federal Farm Credit Bank) - Debt
among a variety of securities offering instruments used to finance the short and
independent returns. intermediate term needs of farmers and the
national agricultural industry. They are issued
FEDERAL CREDIT AGENCIES: Agencies of the monthly with three- and six-month maturities.
Federal government set up to supply credit to The FFCB issues larger issues (one to ten
various classes of institutions and individuals, year) on a periodic basis. These issues are
highly liquid.
farmers, farm cooperatives, and exporters.
5. FICBs (Federal Intermediate Credit Bank
1. FNMAs (Federal National Mortgage Debentures) - Loans to lending institutions
Association) - Like GNMA was chartered used to finance the short-term and
under the Federal National Mortgage intermediate needs of farmers, such as
Association Act in 1938. FNMA is a federal seasonal production. They are usually issued
corporation working under the auspices of the monthly in minimum denominations of $3,000
Department of Housing and Urban with a nine-month maturity. Interest is
Development (HUD). It is the largest single payable at maturity and is calculated on a 360-
provider of residential mortgage funds in the day, 30-day month basis.
United States. Fannie Mae, as the corporation
is called, is a private stockholder-owned 6. FHLMCs (Federal Home Loan Mortgage
Corporation) - a government sponsored entity
include a variety of adjustable mortgages and established in 1970 to provide a secondary
second loans, in addition to fixed-rate market for conventional home mortgages.
Mortgages are purchased solely from the
liquid and are widely accepted. FNMA Federal Home Loan Bank System member
assumes and guarantees that all security lending institutions whose deposits are insured
holders will receive timely payment of by agencies of the United States Government.
principal and interest. They are issued for various maturities and in
minimum denominations of $10,000. Principal
2. FHLBs (Federal Home Loan Bank Notes and and interest is paid monthly. Other federal
Bonds) - Issued by the Federal Home Loan agency issues are Small Business
Bank System to help finance the housing Administration notes (SBAs), Government
industry. The notes and bonds provide National Mortgage Association notes
liquidity and home mortgage credit to savings (GNMAs), Tennessee Valley Authority notes
and loan associations, mutual savings banks, (TVAs), and Student Loan Association notes
cooperative banks, insurance companies, and (SALLIE-MAEs).
mortgage-lending institutions. They are
issued irregularly for various maturities. The FEDERAL DEPOSIT INSURANCE CORPORATION
minimum denomination is $5,000. The notes (FDIC): A federal agency that insures bank
are issued with maturities of less than one deposits, currently up to $250,000 per deposit
year and interest is paid at maturity. through December 31, 2013.
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FEDERAL FUNDS RATE: The rate of interest at
$50,000,000 for any agency. The City is
which Fed funds are traded. This rate is currently
restricted to a maximum of ten transactions per
pegged by the Federal Reserve through open-month. It offers high liquidity because deposits
market operations. can be converted to cash in 24 hours and no
interest is lost. All interest is distributed to those
FEDERAL HOME LOAN BANKS (FHLB): agencies participating on a proportionate share
Government sponsored wholesale banks basis determined by the amounts deposited and
(currently 12 regional banks) which lend funds the length of time they are deposited. Interest is
and provide correspondent banking services to paid quarterly. The State retains an amount for
member commercial banks, thrift institutions, reasonable costs of making the investments, not
credit unions and insurance companies. The to exceed one-half of one percent of the earnings.
mission of the FHLBs is to liquefy the housing
related assets of its members who must purchase LIQUIDITY: A liquid asset is one that can be
stock in their district Bank. converted easily and rapidly into cash without a
substantial loss of value. In the money market, a
FEDERAL OPEN MARKET COMMITTEE (FOMC): security is said to be liquid if the spread between
Consists of seven members of the Federal bid and asked prices is narrow and reasonable size
Reserve Board and five of the twelve Federal can be done at those quotes.
Reserve Bank Presidents. The President of the
New York Federal Reserve Bank is a permanent LOCAL GOVERNMENT INVESTMENT POOL (LGIP):
member, while the other Presidents serve on a The aggregate of all funds from political
rotating basis. The Committee periodically meets subdivisions that are placed in the custody of the
to set Federal Reserve guidelines regarding State Treasurer for investment and reinvestment
purchases and sales of Government Securities in
the open market as a means of influencing the MARKET VALUE: The price at which a security is
volume of bank credit and money. trading and could presumably be purchased or
sold.
FEDERAL RESERVE SYSTEM: The central bank of
the United States created by Congress and MASTER REPURCHASE AGREEMENT: A written
consisting of a seven member Board of Governors contract covering all future transactions between
in Washington, D.C., 12 regional banks and about the parties to repurchase--reverse repurchase
5,700 commercial banks that are members of the
system. the transactions. A master agreement will often
specify, among other things, the right of the
GOVERNMENT NATIONAL MORTGAGE buyer-lender to liquidate the underlying securities
ASSOCIATION (GNMA or Ginnie Mae): Securities in the event of default by the seller-borrower.
influencing the volume of bank credit guaranteed
by GNMA and issued by mortgage bankers, MATURITY: The date upon which the principal or
commercial banks, savings and loan associations, stated value of an investment becomes due and
and other institutions. Security holder is payable
protected by full faith and credit of the U.S.
Government. Ginnie Mae securities are backed MONEY MARKET: The market in which short-term
by the FHA, VA or FMHM mortgages. The term debt instruments (bills, commercial paper,
pass-throughsbankers
Maes.
OFFER: The price asked by a seller of securities.
LAIF (Local Agency Investment Fund) - A special (When you are buying securities, you ask for an
fund in the State Treasury which local agencies offer.) See Asked and Bid.
may use to deposit funds for investment. There
is no minimum investment period and the OPEN MARKET OPERATIONS: Purchases and
minimum transaction is $5,000, in multiples of sales of government and certain other securities in
$1,000 above that, with a maximum balance of the open market by the New York Federal Reserve
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Bank as directed by the FOMC in order to
repurchase them at a fixed price on a fixed date.
influence the volume of money and credit in the y in effect lends sell
The bu
economy. Purchases inject reserves into the money for the period of the agreement, and the
bank system and stimulate growth of money and terms of the agreement are structured to
credit; sales have the opposite effect. Open compensate him for this. Dealers use RRP
extensively to finance their positions. Exception:
important and most flexible monetary policy tool. When the Fed is said to be doing RRP, it is lending
money that is increasing bank reserves.
PORTFOLIO: Collection of all cash and securities
under the direction of the City Treasurer, SAFEKEEPING: A service to customers rendered
including Bond Proceeds. by banks for a fee whereby securities and
valuables of all types and descriptions are held in
PRIMARY DEALER: A group of government the bank's vaults for protection.
securities dealers who submit daily reports of
market activity and positions and monthly SECONDARY MARKET: A market made for the
financial statements to the Federal Reserve Bank purchase and sale of outstanding issues following
of New York and are subject to its informal the initial distribution.
oversight. Primary dealers include Securities and
Exchange Commission (SEC)-registered securities SECURITIES & EXCHANGE COMMISSION: Agency
broker-dealers, banks and a few unregulated created by Congress to protect investors in
firms. securities transactions by administering securities
legislation.
QUALIFIED PUBLIC DEPOSITORIES: A financial
institution which does not claim exemption from SEC RULE 15C3-1: See Uniform Net Capital Rule.
the payment of any sales or compensating use or
ad valorem taxes under the laws of this state, STRUCTURED NOTES: Notes issued by
which has segregated for the benefit of the Government Sponsored Enterprises (FHLB, FNMA,
commission eligible collateral having a value of SLMA, etc.) and Corporations which have
not less than its maximum liability and which has imbedded options (e.g., call features, step-up
been approved by the Public Deposit Protection coupons, floating rate coupons, and derivative-
Commission to hold public deposits. based returns) into their debt structure. Their
market performance is impacted by the fluctuation
RATE OF RETURN: The yield obtainable on a of interest rates, the volatility of the imbedded
security based on its purchase price or its current options and shifts in the shape of the yield curve.
market price. This may be the amortized yield to
maturity on a bond the current income return. SURPLUS FUNDS: Section 53601 of the California
Government Code defines surplus funds as any
REPURCHASE AGREEMENT (RP OR REPO): A money not required for immediate necessities of
holder of securities sells these securities to an the local agency. The City has defined immediate
investor with an agreement to repurchase them necessities to be payment due within one week.
at a fixed price on a fixed date. The security
TREASURY BILLS: A non-interest bearing discount
period of the agreement, and the terms of the security issued by the U.S. Treasury to finance the
agreement are structured to compensate him for national debt. Most bills are issued to mature in
this. Dealers use RP extensively to finance their three months, six months or one year.
positions. Exception: When the Fed is said to be
doing RP, it is lending money that is increasing TREASURY BONDS: Long-term coupon-bearing
bank reserves. U.S. Treasury securities issued as direct
obligations of the U.S. Government and having
REVERSE REPURCHASE AGREEMENTS (RRP or initial maturities of more than 10 years.
RevRepo) - A holder of securities sells these
securities to an investor with an agreement to
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TREASURY NOTES: Medium-term coupon-bearing
U.S. Treasury securities issued as direct
obligations of the U.S. Government and having
initial maturities from two to 10 years.
UNIFORM NET CAPITAL RULE: Securities and
Exchange Commission requirement that member
firms as well as nonmember broker-dealers in
securities maintain a maximum ratio of
indebtedness to liquid capital of 15 to 1; also
called net capital rule and net capital ratio.
Indebtedness covers all money owed to a firm,
including margin loans and commitments to
purchase securities, one reason new public issues
are spread among members of underwriting
syndicates. Liquid capital includes cash and
assets easily converted into cash.
UNIFORM PRUDENT INVESTOR ACT: The State
of California has adopted this Act. The Act
contains the following sections: duty of care,
diversification, review of assets, costs,
compliance determinations, delegation of
investments, terms of prudent investor rule, and
application.
YIELD: The rate of annual income return on an
investment, expressed as a percentage. (a)
INCOME YIELD is obtained by dividing the current
dollar income by the current market price for the
security. (b) NET YIELD or YIELD TO MATURITY
is the current income yield minus any premium
above par or plus any discount from par in
purchase price, with the adjustment spread over
the period from the date of purchase to the date
of maturity of the bond.
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226
CITY OF LA QUINTA
Investment Policy
Fiscal Year 2014/2015
Table of Contents
Section Topic Page
Executive Summary 2
I General Purpose 4
II Investment Policy 4
III Scope 4
IV Objectives 4
Safety of Principal
Provide Liquidity
Yield A Risk-Based Market Rate Of Return
V Maximum Maturities 6
VI Prudence 6
VII Authority 6
VIII Ethics and Conflicts of Interest 7
IX Authorized Financial Dealers and Institutions 7
Broker/Dealers
Financial Institutions
X Permissible Deposits and Investments 8
XI Investment Pools 12
XII Payment and Custody 13
XIII Interest Earning Distribution Policy 13
XIV Internal Controls and Independent Auditors 13
XV Reporting Standards 14
XVI Financial Assets and Investment Activity Not Subject to this Policy 15
XVII Investment of Bond Proceeds 15
XIII Investment Advisory Board - City of La Quinta 16
XIX Investment Policy Adoption 16
Appendices Topic Page
ASummary of Permissible Deposits and Investments 17
BCity of La Quinta Municipal Code Ordinance 2.70 - Investment Advisory Board 19
CCity of La Quinta Municipal Code Ordinance 3.08 - Investment of Moneys and Funds 20
DSegregation of Major Investment Responsibilities 22
EListing of Approved Financial Institutions 23
FBroker/Dealer Questionnaire and Certification 24
GRequest for Proposal for Professional Portfolio Management Firm 28
HPermissible Investment Chart Professional Portfolio Management Firm 34
IInvestment Management Process and Risk 35
JGlossary 36
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CITY OF LA QUINTA
Investment Policy
Fiscal Year 2014/2015
Executive Summary
The general purpose of this Investment Policy is to provide the rules and standards that must be
followed in administering the City of La Quinta.
The Investment Policy conforms to all state and local statutes and applies to all deposits
and investments of the City of La Quinta, Successor Agency to the City of La Quinta
Redevelopment Agency, and the City of La Quinta Financing and Housing Authorities
().
It is the Cipolicy to deposit and invest public funds in a manner that shall provide:
Safety of principal;
Liquidity to meet ions and requirements that may be reasonably
anticipated; and
A risk-based market rate of return.
It is the Cit. This buy-and-hold
policy shall not prevent the sale of a security to minimize loss of principal when an issuer or
backer suffers declining credit worthiness or when the liquidity needs of the portfolio require
that a security be sold.
derived from the City Municipal Code.
Management responsibility for the investment program is delegated to the City Treasurer, who
shall establish and
program consistent with the Investment Policy. The Treasurer shall establish and implement a
system of internal controls to accomplish the following objectives:
Safeguard assets;
Orderly and efficiently conduct its business, including adherence to all City management
policies;
Prevent or detect errors and fraud;
Accurately complete all accounting records; and
Timely prepare all reliable financial information.
The System of Internal Controls developed by the City Treasurer shall be reviewed annually by the
independent auditors in connection with tatements.
The City Manager, City Treasurer and city employees involved in the Citys banking and
investment process shall conduct the Citys business in an ethical manner and refrain from any
activity or relationship that may be, or have the appearance of, a conflict of interest.
The City Treasurer maintains a listing of financial institutions which are approved for investment
purposes. All Broker/Dealers and financial institutions that provide investment services will be
subject to City Council approval.
The Treasurer will be permitted to invest only in the permissible deposits and investments
described in Section X and Appendix A up to the specified maximum allowable percentages
and/or dollar limitations and, where applicable, through the bid process requirements. Permissible
deposits and investments include, in general:
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FDIC-Insured Checking, Savings, and Sweep Accounts;
Collateralized Bank Deposits;
Certificates of Deposit;
Negotiable Certificates of Deposit;
U.S. Government Agency Securities and Federal Government Securities;
Prime Commercial Paper;
Local Agency Investment Fund (LAIF);
Money Market Mutual Funds;
Corporate Notes; and
Professionally Managed Accounts.
The City deposits and investments are generally limited to three years maximum maturity.
However, the projected amount of funds not expected to be disbursed within five years may be
invested in notes and bonds maturing between three and five years. Additionally, funds may be
invested for up to ten (10) years as further discussed in Section V.
for a
rate of return on its investment portfolio. As a basi
monthly report will display the rates of return on the three-month Bill, six-month Bill, and the one
and two-year U.S. Treasury Note, comparable-period rates for commercial paper, and the yield
The Investment Policy shall be adopted by resolution of the La Quinta City Council on an annual
basis. The Investment Policy will be adopted before the end of June of each year.
This Executive Summary is only an overview of the City Investment Policy. Reading this
summary does not constitute a complete review, which can only be accomplished by reviewing all
of the pages herein.
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City of La Quinta
Statement of Investment Policy
July 1, 2014 through June 30, 2015
Adopted by the City Council on June 17, 2014
I GENERAL PURPOSE
The general purpose of this document is to provide the rules and standards that must be followed
in administering the City of La Quintainvestments.
II INVESTMENT POLICY
It is the policy of the City of La Quinta to deposit and invest public funds in a manner that shall
provide:
Safety of principal;
Liquidity to meet ements that may be reasonably
anticipated; and
A risk-based market rate of return.
The Investment Policy conforms to all State and local statutes governing the investment of public
funds and sets forth the permissible deposits and investments of the Ci
limitations thereon.
III SCOPE
Except as further detailed in Section XVII, this Investment Policy applies to all deposits and
investments of the City of La Quinta, Successor Agency to the City of La Quinta Redevelopment
Agency and the City of La Quinta Financing and Housing Authorities (hereafter referred to in this
document as the "City"). These funds are reported in the City Comprehensive Annual Financial
Report (CAFR) and include all funds within the following fund types:
General
Special Revenue
Capital Projects
Debt Service
Enterprise
Internal Service
Trust and Agency
Any new fund types and fund(s) that may be created.
IV OBJECTIVES
The objectives of the City's investment activity, in order of priority and importance, are:
1. Safety of Principal
Safety of principal is the foremost objective of the investment program.
Investments shall be undertaken in a manner that seeks to ensure the preservation of
principal of the overall portfolio in accordance with the permissible deposits and
investments.
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The City shall endeavor to preserve its investment principal by making only permissible
deposits and investments, undertaken in a controlled manner to minimize the possibility of
loss or misappropriation through malfeasance or otherwise. Investments not backed by
the full faith and credit of the United States Government shall be diversified by allocating
assets between different types of permissible investments, maturities, and issuers as a
means to mitigate credit risk and interest rate risk.
a. Credit Risk is the risk of loss from the failure of the security issuer or backer.
Credit risk may be mitigated by:
Limiting investments to investment grade securities as permitted in
Section X;
Diversifying the issuers of the securities in the investment portfolio so
that potential losses due to issuer failure or individual securities
downgrades may be minimized.
b. Interest Rate Risk is the risk that market values of securities in the portfolio will
decline due to changes in general interest rates. Interest rate risk may be mitigated
by:
Structuring the investment portfolio so that securities mature to meet
cash requirements for ongoing operations, thereby avoiding the need to
sell securities on the open market prior to maturity; and
Investing operating funds primarily in shorter-term securities.
c. Liquidity Risk is the risk that a security cannot be liquidated because of its unique
features or structure or because it is thinly traded. Liquidity risk is not a material
issue for the Citys portfolio because of the permissible deposits and investments
(see Section X) and because the City maintains a buy-and-hold policy and holds
securities and other investments to maturity. A discussion of the Citys investment
process and risk is presented in Appendix I.
2. Provide Liquidity
The investment portfolio shall remain sufficiently liquid to meet all cash needs
that may be reasonably anticipated. This is accomplished by structuring the portfolio so
that sufficient liquid funds are available to meet anticipated demands. Furthermore, since
all possible cash needs cannot be anticipated the portfolio should be diversified and
consist of securities with active secondary or resale markets.
rities and other investments to maturity. Accordingly,
securities shall not be sold prior to maturity with the following exceptions:
A security with declining credit quality can be sold early to minimize loss of
principal;
Unanticipated liquidity needs of the portfolio require that one or more securities be
sold.
3. Yield a Risk-Based Market Rate Of Return
The investment portfolio shall be structured with the objective of yielding a risk-
based market rate of return throughout budgetary and economic cycles. Return on
investment is less important than the safety and liquidity objectives described above.
for a rate of return on its investment portfolio. The
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influenced by several factors, including actions by the Federal Reserve Board, the
marketplace, and overall economic perceptions and conditions. These factors will not
-and-hold policy
As a basis for comparison only, the Treasurer monthly reports will display the rates of
return on the three-month Bill, six-month Bill, and one and two-year U.S. Treasury Note,
comparable-
Local Agency Investment Fund (LAIF). The Treasurer may use these or any other
published rates of return that the Treasurer deems appropriate for comparison to the return
V MAXIMUM MATURITIES
It is the policy to hold securities and other investments until maturity, thus avoiding the risk
of market value fluctuations with overall market interest rates. This buy-and-hold policy shall not
prevent the sale of a security to minimize loss of principal when an issuer or backer suffers
declining credit worthiness or when the liquidity needs of the City require that a security be sold.
The buy-and-hold policy requirebe structured so that
sufficient liquid funds are available from maturing investments and other sources to meet all
reasonably-anticipated cash needs. To meet anticipated cash needs, it is essential that the
Treasurer have reliable, diligently prepared cash flow projections.
Annually, the Treasurer shall project the amount of funds not expected to be disbursed within ten
years. For FY2014/2015, the amount of such funds is projected to be $20 million. Funds up to
that amount may be invested in U.S.Treasury notes and bonds, Local Agency Obligations, and
California Local Agency Obligations maturing between 3 and 10 years. For all other funds,
investments are limited to five years maximum maturity.
VI PRUDENCE
The City shall follow the Uniform Prudent Investor Act as adopted by the State of California in
Probate Code Sections 16045 through 16054.
Section 16053 sets forth the terms of a prudent person which are as follows: Investments shall
be made with judgment and care - under circumstances then prevailing - which persons of
prudence, discretion, and intelligence exercise in the professional management of their own
affairs, not for speculation, but for investment, considering the probable safety of their capital as
well as the probable income to be derived.
VII AUTHORITY
Authority to manage the City's investment portfolio is derived from section
Municipal Code. Management responsibility for the investment program is delegated to the City
Treasurer
Investment Policy.
The City Treasurer shall establish written procedures for the operation of the investment program
consistent with the Investment Policy. Procedures should include reference to safekeeping, wire
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transfer agreements, banking service contracts, and collateral/depository agreements. Such
procedures shall include explicit delegation of authority to persons responsible for investment
transactions. No person may engage in an investment transaction except as provided under the
terms of this Investment Policy and the procedures established by the City Treasurer. The City
Treasurer shall be responsible for all transactions undertaken and shall establish a system of
controls to regulate the activities of subordinate officials. The City Manager or his/her designee
shall acknowledge in writing all purchases and sales of investments prior to their execution by the
City Treasurer.
VIII ETHICS AND CONFLICTS OF INTEREST
The City Manager, City Treasurer and city employees involved in the Citys banking and
investment process shall conduct the Citys business in an ethical manner and refrain from any
activity or relationship that may be, or have the appearance of, a conflict of interest. Any
questionable activity or relationship shall be reported immediately and in compliance with the
procedures set forth in Section 1.40 Conflicts of Interest and Acceptance of Gifts and other
Gratuities of the City of La Quinta Personnel Manual. Reporting must be made in accordance with
the personnel policies of the City and, until resolved, the officer or employee shall refrain from
participating in the Citys business related to the matter.
The City Manager, City Treasurer and City employees may conduct personal business with banks,
brokers, and other financial institutions that are authorized to conduct business with the City
provided that the terms of the activity to the accountholder with the City are the same as those
that are available to the public in general.
IX AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The City Treasurer maintains a listing of financial institutions which are approved for direct
investment purposes. In addition a list will also be maintained of approved broker/dealers selected
by credit worthiness.
1. Broker/Dealers who desire to become bidders for direct investment transactions must
supply the City with the following:
Current audited financial statements;
Proof of Financial Industry Regulatory Authority (FINRA) Certification;
Trading resolution;
Resume of Financial broker; and
Completion of the City of La Quinta Broker/Dealer questionnaire (see Appendix F)
which contains a certification of having read the City Investment Policy.
The City Treasurer shall evaluate the documentation submitted by the broker/dealer and
independently verify existing reports on file for any firm and individual conducting
investment related business.
The City Treasurer will also contact the following agencies during the verification process:
Financial Industry Regulatory Authority (FINRA) Public Disclosure Report File (1-
800-289-9999).
State of California Department of Corporations (1-916-445-3062).
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The City Treasurer maintains a listing of financial institutions which are approved for
investment purposes. All Broker/Dealers and financial institutions that provide investment
services will be subject to City Council approval.
Each securities dealer shall provide monthly and quarterly reports filed pursuant to U.S.
Treasury Department regulations. Each mutual fund shall provide a prospectus and
statement of additional information.
2. Financial Institutions will be required to meet the following criteria in order to receive City
funds for deposit or investment (see Appendix E, Listing of Approved Financial
Institutions):
a. Insurance - Public Funds shall be deposited only in financial institutions having
accounts insured by the Federal Deposit Insurance Corporation (FDIC).
b. Collateral - The amount of the City deposits or investments not insured by the
FDIC shall be collateralized by securities with market values of 110%, or by
mortgages with market values 150%, of the amount of invested funds plus unpaid
interest earnings.
c. Disclosure - Each financial institution maintaining invested funds in excess of the
FDIC insured amount shall furnish the City a copy of the most recent Call Report.
The City shall not invest in excess of the FDIC insured amount in banking
institutions which do not disclose to the city a current listing of securities pledged
for collateralization in public monies.
X PERMISSIBLE DEPOSITS AND INVESTMENTS
Permissible deposits and investments are summarized below. A more comprehensive list is
included in Appendix A.
MaximumMaximum
Permissible Investments and Limitations
Restrictions
(See Appendix A for Additional Information)AllocationMaturity
Sweep Account:
Current /
Checking & Savings Accounts FDIC Insured & Sweep Accounts 85% of Portfolio U.S. Treasuries
On Demand
and/or GSE's
Interest bearing active bank deposits non FDIC insured collateralized by Current / $40 million
60% of Portfolio
110% of eligible securities On Demand per bank
<= $250,000,
Certificates of Deposit - FDIC Insured
60% of Portfolio 5 Years including interest
per institution
<= $250,000
Negotiable Certificates of Deposit FDIC Insured 30% of Portfolio 5 Years including interest
per institution
<=$20,000,000
U.S. Treasury Bills, Notes and Bonds, and Government National 100% of Portfolio 5 Years maturing 3-10
Mortgage Association (GNMA) Securities Yrs.
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MaximumMaximum
Permissible Investments and Limitations
Restrictions
AllocationMaturity
(See Appendix A for Additional Information)
<=$20,000,000
maturing 3-10
Yrs.
Local Agency Bonds / California Local Agency Obligations 30% of Portfolio 10 Years
Long term
better
U.S. Government Agency Securities and Federal Government Securities
$10 million per
purchase
which contain embedded rate options):
- Federal National Mortgage Association (FNMA) $20,000,000 5 Years 30% of Portfolio
- Federal Home Loan Bank Notes & Bonds (FHLB) $25,000,000 5 Years
- Federal Farm Credit Bank (FFCB) $30,000,000 5 Years
- Federal Home Loan Mortgage Corporation (FHLMC) $20,000,000 5 years
Prime Commercial Paperincluding Temporary Liquidity Guarantee $5,000,000 per
15% of Portfolio 90 Days
Program (TLGP) issuer maximum
Current / $50 million
Local Agency Investment Fund (LAIF) 30% of Portfolio
On Demand per account
Money market mutual funds regulated by the SEC that consist only of US Current / Maintain $1 per
20% of Portfolio
Treasury Securities or GSE's and maintain a par value of $1 per share On Demand share par value
$5,000,000 max
Corporate Notes 10% of Portfolio 3 Years per issuer AA
rated or better
$10,000,000 max
Corporate Notes - Temporary Liquidity Guarantee Program (TLGP) 20% of Portfolio 3 Years per issuer, AA
rated or better
Requires
Professionally Managed Account 10% of Portfolio 3 Years City Council-
Approved RFP
Long-Term Scale
S&P A1 AAA, AA+, AA, AA-, A+, A
P1 Aaa, Aa1, Aa2, Aa3, A1, A2
Fitch AAA, AA+, AA, AA-, A+, A
Checking, Savings, and Sweep Accounts The City will only maintain checking, savings,
and sweep accounts with FDIC insured financial institutions. As authorized by the City
Council, a U.S. Treasury and/or U.S. Agency Securities Money Market Sweep Account
with a $50,000 target balance may be maintained in conjunction with the checking
account.
In addition, the Treasurer may invest in an interest bearing active deposit account as
approved in Government Code Section 53632. The deposit account must be collateralized
with securities that are in accordance with Government Code Sections 53632.5(c). In
addition, the market value of the collateralized securities must be maintained in
accordance with 53652 (a), and be held by a custodian in accordance with the
requirements of Government Code Section 53656. The
the deposit account shall be determined in accordance with Government Code Section
53658.
Certificates of Deposit - As authorized in Government Code Section 53649, Certificates of
Deposit are fixed term investments which are required to be collateralized from 110% to
150% depending on the specific security pledged as collateral in accordance with
Government Code Section 53652.
9
235
Collateralization will be required for Certificates of Deposits in excess of the FDIC insured
amount. The type of collateral is limited to City authorized investments. Collateral will
always be held by an independent third party from the institution that sells the Certificates
of Deposit to the City. Evidence of compliance with State Collateralization policies must
be supplied to the City and retained by the City Treasurer as follows:
Certificates of Deposits Insured by the FDIC: The City Treasurer may waive
collateralization of a deposit that is federally insured.
Certificates of Deposit in excess of FDIC Limits: The amount not federally insured
shall be 110% collateralized securities or 150% mortgages market value of that
amount of invested funds plus unpaid interest earnings.
portfolio.
Negotiable Certificates of Deposit - issued by a nationally or state-chartered bank, a
savings association or a federal association (as defined by Section 5102 of the Financial
Code), a state or federal credit union, or by a federally- or state- licensed branch of a
CDs.
U.S. Treasury Bills, Notes, and Bonds and Government National Mortgage Associations
(GNMA) securities The City may invest in U.S. Treasury bills, notes, and bonds and
GNMA securities directly issued and backed by the full faith and credit of the U.S.
Gprovides for investments in U.S. Treasury
issues and GNMAs of 100% of the portfolio.
Local Agency Bonds and California Local Agency Obligations The City may invest in
California local agency obligations pursuant to 56301(a) and 53301(e). 53601(a) pertains
to investing in bonds issued by a local agency, department, board, agency or authority of
the local agency. 53601(e) pertains to investing in bonds and other defined indebtedness
of a local agency or department, board, agency or authority of the local agency within the
State of California.
Local Agency obligations to 30% of the portfolio with up to a ten year maximum maturity.
In addition, the Agency obligations must be invested in the long term rating of A, A2, A or
In the case of an initial public offering, including refinancings, the Treasurer may purchase
directly from the Bond Underwriter. In the case of secondary issues, the Treasurer will
rely on the approved Broker/Dealers.
U.S. Government Agency Securities and Federal Government Securities The City may
invest in securities issued by U.S. Government instrumentalities and agencies (commonly
referred to as government sponsored enterprises or ). These securities are not
backed by the full faith and credit of the U.S. Government. Publicly owned GSE include
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236
Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation
(FHLMC) and Student Loan Marketing Association (SLMA). Non-publicly owned
include the Federal Home Loan Bank (FHLB), Federal Farm Credit Bank (FFCB), Federal
Land Bank (FLB) and Federal Intermediate Credit Bank (FICB).
and FFCB. For Fiscal Year 2014/2015, the maximum face amount per issuer is $20
million for FNMA and FHLMC, $25 million for FHLB and $30 million for FFCB. In addition,
maximum $10 million face amount per purchase.
Prime Commercial Paper - As authorized in Government Code Section 53601(g), a portion
qualifications regarding investments in commercial paper based on the financial strength of
investments in commercial paper with the following limitations:
Maximum 15% of the portfolio.
Maximum maturity of 90 days.
Maximum of $5 million per issuer.
These limitations are more restrictive than the State code which allows amounts of 25%
of the total portfolio with maturities up to 270 days with no per-issuer limitations.
Local Agency Investment Fund (LAIF) - As authorized in Government Code Section
16429.1 and by LAIF procedures, local government agencies are each authorized to invest
a maximum of $50 million per account in this investment program administered by the
California State Treasurer. The City Treasurer may not invest more than $50 million per
account in LAIF. The City's investment in LAIF is allowable as long as the average
maturity of its investment portfolio does not exceed two years, unless specific approval is
authorized by the City Council. The City limits investment to 30% of the portfolio.
Money Market Mutual Funds - As authorized in Government Code Section 53601(k), local
agencies are authorized to invest in shares of beneficial interest issued by diversified
management companies (mutual funds) in an amount
portfolio. There are a number of other qualifications and restrictions regarding allowable
investments in corporate notes and shares of beneficial interest issued by mutual funds
which include (1) attaining the highest ranking or the highest letter and numerical rating
provided by not less than two of the three largest nationally recognized rating services, or
(2) having an investment advisor registered with the Securities and Exchange Commission
with not less than five ye
with assets under management in excess of five hundred million dollars ($500,000,000).
market funds maintaining a par value of $1 per share that invest in direct issues of the
U.S. Treasury and/or US Agency Securities with an average maturity of their portfolio not
exceeding 90 days and the City limits such investments to 20% of the portfolio.
Corporate Notes - As authorized in Government Code Section 53601 (j), local agencies
may invest in corporate notes. The notes must be issued by corporations organized and
operating in the United States or by depository institutions licensed by the United States
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237
or any
investment in corporate notes authorized by the Government Code with the following
limitations:
Maturities shall not exceed three years from date of purchase;
Eligible notes shall be regularly quoted and traded in the marketplace;
or better; and
The maximum aggregate investment shall not exceed $5 million face amount for
each issuer.
This is more restrictive than the State code allowed amounts of 30% of the total portfolio
with maturities up to five years with no per-issuer limitations.
Professionally Managed Account(s) - The City Treasurer may place up to 10% of the
portfolio with a professional portfolio management firm (). The PPMF will be
completion of a request for proposal (RFP) as outlined in Appendix G. The PPMF shall
have:
An established professional reputation for asset or investment management;
Knowledge and working familiarity with State and Federal laws governing and
restricting the investment of public funds;
Substantial experience providing investment management services to local public
agencies whose investment policies and portfolio size are similar to those of the
City;
Professional liability (errors and omissions) insurance and fidelity bonding in such
amounts as are required by the City; and
Registration with the Securities and Exchange Commission under the Investment
Advisers Act of 1940.
Before engagement by the City and except as may be specifically waived or revised, the
PPMF with the
following exceptions:
The PPMF may be granted the discretion to purchase and sell investment securities
in accordance with Appendix I of this Investment Policy;
The PPMF is not required to adhere to the buy-and-hold policy of th
Investment Policy; and
The PPMF does not need City Manager or City Treasurer approval to make
permissible investments as detailed in column 8 of Appendix H of this Investment
Policy.
XI INVESTMENT POOLS
There are three (3) types of investment pools:
State-run pools (e.g., LAIF);
Pools that are operated by a political subdivision where allowed by law and the
political subdivision is the trustee (e.g., County Pools); and
Pools that are operated for profit by third parties.
The City Investment Policy permits investment only in pools authorized in Section X.
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XII PAYMENT AND CUSTODY
The City shall engage qualified third party custodians to act in a fiduciary capacity to maintain
custodians shall disburse funds, received from the City for a purchase, to the broker, dealer or
seller only after receiving evidence that the City has legal, record ownership of the securities.
Even though ownership is evidenced in book-entry form rather than by actual certificates, this
procedure is commonly accepted as the delivery versus payment (DVP) method for the transfer of
securities.
XIII INTEREST EARNING DISTRIBUTION POLICY
Interest earnings are generated from pooled investments and specific investments. The following
provisions apply to the calculation and distribution of interest earnings.
1. Pooled Investments - It is the general policy of the City to pool all available operating cash
of the City of La Quinta, Successor Agency to the City of La Quinta Redevelopment
Agency, La Quinta Financing Authority, and La Quinta Housing Authority, and to allocate
interest earnings in the following order, as follows:
a. Payment to the General Fund of an amount equal to the total annual bank service
charges as incurred by the general fund for all operating funds as included in the
annual operating budget.
b. Payment to the General Fund of a management fee equal to 5% of the annual
pooled cash fund investment earnings.
c. Payment to each fund of an amount based on the average computed daily cash
balance included in the common portfolio for the earning period.
2. Specific Investments - Specific investments purchased by a fund shall incur all earnings
and expenses to that particular fund.
XIV INTERNAL CONTROLS AND INDEPENDENT AUDITOR
The City Treasurer shall establish a system of internal controls to accomplish the following
objectives:
Safeguard assets;
The orderly and efficient conduct of its business, including adherence to management
policies;
Prevention or detection of errors and fraud;
The accuracy and completeness of accounting records; and
Timely preparation of reliable financial information.
While no internal control system, however elaborate, can guarantee absolute assurance that the
s assets are safeguards internal control to provide a reasonable
assurance that management of the ins objectives.
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239
The internal controls shall address the following:
Control of collusion. Collusion is a situation where two or more employees are working in
conjunction to defraud their employer.
Separation of transaction authority from accounting and record keeping. By separating the
person who authorizes or performs the transaction from the people who record or
otherwise account for the transaction, a separation of duties is achieved.
Custodial safekeeping. Securities purchased from any bank or dealer including appropriate
collateral (as defined by State Law) shall be placed with an independent third party for
custodial safekeeping.
Avoidance of physical delivery securities. Book entry securities are much easier to
transfer and account for since actual delivery of a document never takes place. Delivered
securities must be properly safeguarded against loss or destruction. The potential for
fraud and loss increases with physically delivered securities.
Clear delegation of authority to subordinate staff members. Subordinate staff members
must have a clear understanding of their authority and responsibilities to avoid improper
actions. Clear delegation of authority also preserves the internal control structure that is
contingent on the various staff positions and their respective responsibilities as outlined in
the Segregation of Major Investment Responsibilities appendices.
Written confirmation or telephone transactions for investments and wire transfers. Due to
the potential for error and improprieties arising from telephone transactions, all telephone
transactions shall be supported by written communications or electronic confirmations and
approved by the appropriate person. Written communications may be via fax if on
letterhead and the safekeeping institution has a list of authorized signatures. Fax
correspondence must be supported by evidence of verbal or written follow-up.
Development of a wire transfer agreement with the Cits bank and third party custodian.
This agreement should outline the various controls, security provisions, and delineate
responsibilities of each party making and receiving wire transfers.
The system of internal controls developed by the City, shall be reviewed annually by the
independent auditor in connection with the annuas Financial Statements. The
letter on internal control over financial reporting and compliance as it
pertains to cash and investments, if any, shall be directed to the City Manager who will direct the
letter, as it pertains, to cash and investment activitie
completion of each annual audit, the independent auditor shall meet with the Investment Advisory
Board and discuss the auditing procedures performed and the review of internal controls for cash
and investment activities. See Appendix D, Segregation of Major Investment Responsibilities.
XV REPORTING STANDARDS
The City Treasurer shall submit a monthly Treasurers Report to the City Council and the
Investment Advisory Board that includes all cash and investments under the authority of the
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Treasurer. The Treasurers Report shall summarize cash and investment activity and changes in
balances and include the following:
A certification by the City Treasurer;
A listing of purchases and sales/maturities of investments;
Cash and Investments categorized by authorized investments, except for LAIF
which will be provided quarterly and show yield and maturity;
Comparison of month end actual holdings to Investment Policy limitations;
Current year and prior year monthly history of cash and investments for trend
analysis;
Balance Sheet;
Distribution of cash and investment balances by fund;
A year to date historical cash flow analysis and projection for the next six months;
and
A two-year list of historical interest rates.
XVI FINANCIAL ASSETS AND INVESTMENT ACTIVITY NOT SUBJECT TO THIS POLICY
The Investment Policy does not apply to the following:
Cash and Investments raised from Conduit Debt Financing
ost-retirement benefit
programs
Cash and Investments held in lieu of retention by banks or other financial
institutions for construction projects
Short or long term loans made to other entities by the City or Agency
Short term (Due to/from) or long term (Advances from/to) obligations made
either between the City and its funds or between the City and Agency
XVII INVESTMENT OF BOND PROCEEDS
Investment Policy shall govern bond proceeds and bond reserve fund investments.
California Code Section 5922 (d) governs the investment of bond proceeds and reserve funds in
accordance with bond indenture provisions which shall be structured in accordance with the
s Investment Policy.
Arbitrage Requirement - The US Tax Reform Act of 1986 requires the City to perform arbitrage
calculations as required and return excess earnings to the US Treasury from investments of
proceeds of bond issues sold after the effective date of this law. These arbitrage calculations
may be contracted with an outside source to provide the necessary technical assistance to
comply with this regulation. Investable funds subject to the 1986 Tax Reform Act will be kept
segregated from other funds and records will be kept in a fashion to facilitate the calculations.
s investment position relative to the new arbitrage restrictions is to continue pursuing
the maximum yield on applicable investments while ensuring the safety of capital and liquidity. It
is the City's position to continue maximization of yield and to rebate excess earnings, if
necessary.
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XVIII INVESTMENT ADVISORY BOARD - CITY OF LA QUINTA
The Investment Advisory Board (IAB) is a standing board composed of five members from the
public that are appointed by the City Council. Background information will be requested and
potential candidates must agree to a background check and verification. On an annual basis, in
conjunction with the Political Reform Act disclosure statutes, or at any time if a change in
circumstances warrants, each board member will provide the City Council with a disclosure
statement which identifies any matters that have a bearing on the appropriateness of that
All board members shall report annually to the City Clerk on
Form 700, Statement of Economic Interests, any activities, interests, or relationships that may be,
or have the appearance of, a conflict of interest.
The IAB must meet at least quarterly, but usually meets monthly, to:
R
changes;
Review monthly treasury report and note compliance with the Investment Policy and
adequacy of cash and investments for anticipated obligations;
Receive and consider other reports provided by the City Treasurer;
M
procedures, internal controls and findings for cash and investment activities; and
Serve as a resource for the City Treasurer on matters such as proposed investments,
internal controls, use or change of financial institutions, custodians, brokers and dealers.
The IAB will report to the City Council after each meeting either in person or through
correspondence at a regular City Council meeting. See Appendix Investment Advisory Board
Provisions
XIX INVESTMENT POLICY ADOPTION
The Investment Policy will be reviewed annually by the Investment Advisory Board
and the City Treasurer. The Investment Advisory Board will forward the Investment Policy with
any revisions to the City Manager and City Attorney for their review and comment. A joint
meeting will be held with the Investment Advisory Board, City Manager, City Attorney, and City
Treasurer to review the Investment Policy and any comments prior to submission to the City
Council for their consideration. The Investment Policy shall be adopted by resolution of the City
Council annually before the end of June of each year.
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242
Rated AAA by 2 of 3 S & P rated AA or At least long term
S&P rated AA or
assets>=$500
FDIC Insured
Fidelity Insured
1)
FDIC InsuredFDIC InsuredFDIC Insured
The City Treasurer will be permitted to invest in the following types of investments subject to the maximum percentage allocation limits and bid process requirements. All maturities
agencies;
1)
-
Appendix A
Quality
Credit
Yrs.
better.
-
better
S&P (A
>5
SEC
-
Non
243
Current /on Demand
Current/On DemandCurrent/On Demand
On Demand
MaximumMaturity
Current /
10 years
90 days
years5 years3 yearsyearsyearsyearsyears3 years3 years3 years
City
CITY OF LA QUINTA
55555
Sweep Account: U.S. Treasuries and/or GSE's
ncluding interest per institution
<= $250,000 including interest per institution
Yrs.
Maintain $1 per share par value
$5,000,000 per issuer maximum
$10,000,000 max per issuer
$5,000,000 max per issuer
5
Requires Approved RFP
-
0,000,000 per bank
,0000,000 maturing 3
<=^$30,000,0000
Restrictions
per account
0,000,000
City
5
$
<= $250,000 i
4
$
30
<=$
State Maximum
100% Portfolio100% Portfolio100% Portfolio100% Portfolio100% Portfolio100% Portfolio100% Portfolio
Surplus
25% Portfolio30% Portfolio20% Portfolio30% Portfolio30% Portfolio
tion
270 Days
Funds
%
Alloca
30
SUMMARY OF PERMISSIBLE DEPOSITS AND INVESTMENTS
(Footnote
100% Portfolio
85% Portfolio60% Portfolio60% Portfolio30% Portfolio15% PortfolioPortfolio10% Portfolio20% Portfolio10% Portfolio
Allocation
$20,000,000$25,000,000$30,000,000$20,000,000$50,000,000
Maximum
City
100%
1)
20%
non FDIC insured collateralized
Money market mutual funds regulated by the SEC that consist only of
must be less than or equal to the maximum maturity allowed.
US Treasury Securities or GSE's and maintain a par value of $1 per
Prime Commercial Paper including Temporary Liquidity Guarantee
Temporary Liquidity Guarantee Program (TLGP)
17
Securities (except collateralized mortgage obligations (CMO's) or
U.S. Treasury Bills, Notes and Bonds, and Government National
Checking & Savings Accounts (FDIC Insured) & Sweep Accounts
U.S. Government Agency Securities and Federal Government
Permissible Deposits and Investments
h contain embedded rate options):
Federal Home Loan Mortgage Corporation (FHLMC)
Federal Home Loan Bank Notes & Bonds (FHLB)
Local Agency Bonds/California Agency Obligations
Federal National Mortgage Association (FNMA)
rtgage Association (GNMA) securities
Local Agency Investment Fund (LAIF)
est bearing active bank deposits
Federal Farm Credit Bank (FFCB)
Professionally Managed Account
Negotiable Certificate of Deposit
by 110% of eligible securities
Certificate of Deposit
structured notes whic
-
Corporate Notes
Program (TLGP)
Corporate Notes
share
Inter
Mo
----
Process
Bid
1222333456678
The City Treasurer will not be permitted to invest in the following types of investments (see Footnote all cash and investments, including bond proceeds. In addition, the State has
adopted limits on the
inclusive. Only
Appendix A (continued)
244
-
ot meant to be all
The above list of unauthorized deposits and investments is n
Mutual Funds other than money market mutual funds
Unauthorized Investments
Reverse Repurchase Agreements
Preferred and Common Stock
the Policy are permissible.
Repurchase Agreements
Asset Backed Securities
Bankers Acceptances
Indebtedness
Derivatives
, Mutual
State
--------
e City may engage the services of a professional portfolio management firm which may invest in Bankers Acceptances
investments are
uct a bid process at least every four (4) years or sooner if considered necessary for banking and/or custodian services. Since banking services and custodian services are so closely
related it is anticipated that the bid he Federal Deposit 1 listed on Money Market mutual funds must comply with Government Code Section 53601(k). The fund must be registered by 1 listed
on The professional portfolio management firm (PPMF) will be approved by the City Council based upon the City ursuant to completion of a request for proposal (RFP) as outlined in the
appendices. econdary issues follow bid process
has imposed a maximum limitation based upon the total portfolio of investments. Total portfolio
--
At least two bids from broker/dealers that qualify under Securities and Exchange Commission Rule 15C3
s and Exchange Commission Rule 15C3
The financial institutions can be either state or federally chartered and must be insured by t
erwriter, s
rom Bond Und
the SEC and must include marking the portfolio to market daily.
At least two bids from broker/dealers that qualify under Securitie
18
Initial offerings the Treasurer may purchase directly f
both services.
process would include the scope of
Insurance Corporation (FDIC).
investment of surplus funds.
proval.
See also Footnote 2.
Periodically cond
City Council Ap
The City
Policy.
Th
3.
Process
Footnote 1Footnote 2
Bid
1234567 8
Appendix B
City of La Quinta Municipal Code
Chapter 2.70
INVESTMENT ADVISORY BOARD PROVISIONS
Sections:
2.70.010 General Rules Regarding Appointment.
2.70.020 Board meetings.
2.70.030 Board functions.
2.70.010 General rules regarding appointment
A. Except as set out below, see Chapter 2.06 for General Provisions.
B. The Investment Advisory Board (board) is a standing board composed of five (5)
members from the public that are appointed by city council.
C. Applicants for the board should have a background in finance, preferably with knowledge
and/or experience in markets, controls and accounting for securities. Background information will
be requested and potential candidates must agree to a background check and verification.
D. On an annual basis, in conjunction with the Political Reform Act disclosure statutes, or at
any time if a change in circumstances warrants, each board member will provide the City Council
with a disclosure statement which identifies any matters that have a bearing on the
appropriatenes
limited to, changes in employment, changes in residence, or changes in clients.
E. To promote continuity, the expiration of the terms of the members of the board shall be
staggered. The term of service is three years, with one or two terms expiring each year.
2.70.020 Board meetings.
The Board usually will meet monthly, but this schedule may be extended to quarterly
meetings upon the concurrence of the Board and the City Council. The specific meeting dates will
be determined by the Board Members and meetings may be called for on an as needed basis.
2.70.030 Board functions.
A. The principal functions of the Board are: (1) rs Investment
Policy and recommend appropriate changes; (2) review monthly Treasury Report 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 s financial statements, and
s comments on auditing procedures, internal controls, and findings
for cash and investment activities, and; (5) serve as a resource for the City Treasurer on matters
such as proposed investments, internal controls, use or change of financial institutions, custodians,
brokers and dealers.
B. The Board will report to the City Council after each meeting either in person or through
correspondence at a regular City Council meeting.
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245
Appendix C
City of La Quinta Municipal Code
Chapter 3.08
INVESTMENT OF MONEYS AND FUNDS
Sections:
3.08.010 Investment of city moneys and deposit of securities.
3.08.020 Authorized investments.
3.08.030 Sales of securities.
3.08.040 City bonds.
3.08.050 Reports.
3.08.060 Deposits of securities.
3.08.070 Trust fund administration.
3.08.010 Investment of city moneys and deposit of securities.
Pursuant to, and in accordance with, and to the extent allowed by, Sections
53607 and 53608 of the Government Code, the authority to invest and reinvest
moneys of the city, to sell or exchange securities, and to deposit them and provide for
their safekeeping, is delegated to the city treasurer. (Ord. 2 1 (part), 1982)
£
3.08.020 Authorized investments.
Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is
authorized to purchase, at their original sale or after they have been issued, securities
which are permissible investments under any provision of state law relating to the
investing of general city funds, including but not limited to Sections 53601 and 53635 of
the Government Code, as said sections now read or may hereafter be amended, from
moneys in his custody which are not required for the immediate necessities of the city
and as he may deem wise and expedient, and to sell or exchange for other eligible
securities and reinvest the proceeds of the securities so purchased. (Ord. 2 1 (part),
£
1982)
3.08.030 Sales of Securities.
From time to time the city treasurer shall sell the securities in which city moneys have
been invested pursuant to this chapter, so that the proceeds may, as appropriate, be
applied to the purchase for which the original purchase money may have been designated
or placed in the city treasury. (Ord.2 l (part),
£
3.08.040 City bonds.
Bonds issued by the city and purchased pursuant to this chapter may be cancelled
either in satisfaction of sinking fund obligations or otherwise if proper and appropriate;
provided, however, that the bonds may be held uncancelled and while so held may be
resold. (Ord. 2 1 (part), 1982)
£
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246
3.08.050 Reports.
The city treasurer shall make a monthly report to the city council of all investments
madepursuant to the authority delegated in this chapter. (Ord. 2 1 (part), 1982)
£
3.08.060 Deposits of securities.
Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is
authorized to deposit for safekeeping, the securities in which city moneys have been
invested pursuant to this chapter, in any institution or depository authorized by the terms
of any state law, including but not limited to Section 53608 of the Government Code as
it now reads or may hereafter be amended. In accordance with said section, the city
treasurer shall take from the institution or depository a receipt for the securities so
deposited and shall not be responsible for the securities delivered to and receipted for by
the institution or depository until they are withdrawn therefrom by the city treasurer.
(Ord. 2 1 (part), 1982
£
3.08.070 Trust fund administration.
Any departmental trust fund established by the city council pursuant to Section
36523 of the Government Code shall be administered by the city treasurer in accordance
with Section 36523 and 26524 of the Government code and any other applicable
provisions of law. (Ord. 2 1 (part), 1982)
£
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247
Appendix D
SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES
Function Responsible Parties
Develop and Recommend Modifications Investment Advisory Board
to Citys Formal Investment Policy and City Treasurer
Review Citys Investment Policy City Manager
and Recommend City Council Action and City Attorney
Adopt Formal Investment Policy City Council
Implement Formal Investment Policy City Treasurer
Review Financial Institutions & Select Investments City Treasurer
Acknowledge Investment Selections City Manager or his/her
designee
Execute Investment transactions City Treasurer or City Manager
Confirm Wires (if applicable) Accounting Manager or
Financial Services Assistant
Record Investment Ts Accounting Manager or
Accounting Records Financial Services Assistant
Investment Verification (match broker confirmation City Treasurer and Financial
to City investment records) Services Assistant
Reconcile Investment Records
to Accounting Records and Bank Statements Financial Services Assistant
Reconcile Investment Records
to Treasurers Report of Investments Accounting Manager
Security of Investments at City Accounting Manager or Senior
Secretary
Security of Investments outside City Third Party Custodian
Review Internal Control Procedures External Auditor
22
248
Appendix E
LISTING OF APPROVED FINANCIAL INSTITUTIONS
1. Banking Services - Wells Fargo Bank, Government Services,
Los Angeles, CA (Banking Services)
Rabobank N.A., Government Banking
Group, Roseville, CA (Collateralized Bank
Deposits)
2. Custodian Services - Bank of New York/Mellon
3. Deferred Compensation - International City/County Management
Association Retirement Corporation
4. Broker/Dealer Services - Banc of America Securities/Merrill Lynch
Morgan Stanley
CitiGroup
First Empire Securities
5. Government Pool - State of California Local Agency
Investment Fund
6. Bond Trustees - 1996 Lease Revenue Bonds US Bank
1998 RDA Project Area 1&2 US Bank
2001 RDA Project Area 1 US Bank
2002 RDA Project Area 1 US Bank
2003 RDA Project Area 1 US Bank
2004 Local Agency Rev US Bank
2011 RDA Project Area 2 US Bank
2011 Fin Auth Housing 1&2 US Bank
2013 Successor Agency US Bank
Assessment Districts US Bank
No Changes to this listing may be made without City Council approval
23
249
Appendix F
BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION
1. Name of Firm:________________________________________________________________________
2. Address:___________________________________________________________________________
3. Telephone: (___) ________________ (___ )____________________________________________
4. Broker's Representative to the City (attach resume):
Name:_____________________________________________________________________________
Title:_______________________________________________________________________________
Telephone: (___)____________________________________________________________________
5. Manager/Partner-in-charge (attach resume):
Name:_____________________________________________________________________________
Title:_______________________________________________________________________________
Telephone:_________________________________________________________________________
6. List all personnel who will be trading with or quoting securities to City employees (attach
resume)
Name:____________________________________________________________________________
Title:______________________________________________________________________________
Telephone: (___)__________________ (___)______________________________________________
7. Which of the above personnel have read the City's Investment Policy?
____________________________________________________________________________________
8. Which instruments are offered regularly by your local office? (Must equal 100%)
_____% U.S. Treasuries _____% Repos
_____% BA's _____% Reverse Repos
_____% Commercial Paper s
s _____% Derivatives
_____% Mutual Funds _____% Stocks/Equities
_____% Agencies (specify): _____% Other (specify):
_____________________________ __________________________
_____________________________ __________________________
_____________________________ __________________________
_____________________________ __________________________
9. References -- Please identify your most directly comparable public sector clients in our
geographical area.
Entity Entity
______________________________________________
Contact Contact
__________________________________________
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250
Telephone Telephone
(____)____________ (___)_____________
Client Since Client Since
_____________________________________
10. Have any of your clients ever sustained a loss on a securities transaction arising from a
misunderstanding or misrepresentation of the risk characteristics of the instrument? If so,
explain.
___________________________________________________________________________________
____________________________________________________________________________________
___________________________________________________________________________________
____________________________________________________________________________________
11. Has your firm or your local office ever been subject to a regulatory or state/ federal
agency investigation for alleged improper, fraudulent, disreputable or unfair activities
related to the sale of securities? Have any of your employees been so investigated? If
so, explain.
__________________________________________________________________________________
___________________________________________________________________________________
____________________________________________________________________________________
___________________________________________________________________________________
12. Has a client ever claimed in writing that you were responsible for an investment loss?
Yes_________ No_________ If yes, please provide action taken________________________
___________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
Has a client ever claimed in writing that your firm was responsible for an investment
loss? Yes_________ No_________ If yes, please provide action taken_________________
____________________________________________________________________________________
___________________________________________________________________________________
____________________________________________________________________________________
Do you have any current or pending complaints that are unreported to FINRA?
Yes_________ No_________ If yes, please provide action taken__________________________
___________________________________________________________________________________
___________________________________________________________________________________
Does your firm have any current, or pending complaints that are unreported to FINRA?
Yes_________ No_________ If yes, please provide action taken___________________________
___________________________________________________________________________________
____________________________________________________________________________________
13. Explain your clearing and safekeeping procedures, custody and delivery process.
____________________________________________________________________________________
_____________________________________________________________________________________
Who audits these fiduciary responsibilities?____________________________________________
Latest Audit Report Date_____________________________________________________________
25
251
14. How many and what percentage of your transactions failed?
Last month? _______% $__________
Last year? _______% $__________
15. Describe the method your firm would use to establish capital trading limits for the City of
La Quinta.__________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
16. Is your firm a member in the S.I.P.C. insurance program? Yes_______ No_______
If yes, explain primary and excess coverage and carriers.________________________________
___________________________________________________________________________________
____________________________________________________________________________________
17. What portfolio information, if any, do you require from your clients?_____________________
____________________________________________________________________________________
____________________________________________________________________________________
___________________________________________________________________________________
18. What reports and transaction confirmations or any other research publications will the City
receive?____________________________________________________________________________
____________________________________________________________________________________
19. Does your firm offer investment training to your clients? Yes_______ No________
20. Does your firm have professional liability insurance? Yes_________ No_________
If yes, please provide the insurance carrier, limits and expiration date.__________________
___________________________________________________________________________________
____________________________________________________________________________________
21. Please list your FINRA/NASD Registration Number______________________________________
22. Do you have any relatives who work at the City of La Quinta?
Yes______ No_______ If yes, Name and Department____________________________________
23. Do you maintain an office in California? Yes_______ No_________
24. Do you maintain an office in La Quinta or Riverside County? Yes_______ No_________
25. Please enclose the following:
Latest audited financial statements;
Samples of reports, transaction confirmations and any other research/publications the
City will receive;
Samples of research reports and/or publications that your firm regularly provides to
clients; and
Complete schedule of fees and charges for various transactions.
26
252
***CERTIFICATION***
I hereby certify that I have personally read the Statement of Investment Policy of the City of La
Quinta, and have implemented reasonable procedures and a system of controls designed to
preclude imprudent investment activities arising out of transactions conducted between our firm
and the City of La Quinta. All sales personnel will bs investment
objectives, horizons, outlooks, strategies and risk constraints whenever we are so advised by the
City. We pledge to exercise due diligence in informing the City of La Quinta of all foreseeable
risks associated with financial transactions conducted with our firm.
By signing this document the City of La Quinta is authorized to conduct any and all background
checks.
Under penalties of perjury, the responses to this questionnaire are true and accurate to the best of
my knowledge.
Broker Representative____________________________________________________________________
Date______________________________ Title__________________________________________________
Sales Manager and/or Managing Partner*__________________________________________________
Date_______________________________ Title_________________________________________________
27
253
Appendix G
Request for Proposals
Professional Portfolio Management Firm
City of La Quinta, CA
The City of La Quinta, CA is soliciting Requests for Proposals (RFP) from interested firms for the
provision of a discretionary investment management services for City of La Quinta, CA. The
portfolio to be managed of the invested assets is will be appr
investment portfolio and will be invested between 0 3 years.
th
your information.
Questions regarding this RFP should be directed to:
Name: Rita Conrad
Title: Finance Director/Treasurer
City of: La Quinta, CA
Address: 78-495 Calle Tampico
City, State, Zip Code: La Quinta, CA 92253
Phone Number: (760)777-7150
I. CRITERIA FOR EVALUATION AND SELECTION
Experience of the firm in providing services to public sector entities of similar size
and with similar investment objectives;
Professional experience and qualifications of the individuals assigned to the
account;
Portfolio management resources, investment philosophy and approach;
Responsiveness to the RFP, communicating an understanding of the overall
program and services required;
Reporting capabilities;
Fees.
II. SELECTION TIMETABLE
A. \[Month, Day and Year\] Proposals due by \[Time\] PST.
B. \[Month, Day and Year\] Proposals evaluated: to be determined
C. \[Month, Day and Year\] \[City of La Quinta, CA\] \[Board/Council\] approves selection
and awards contract.
III. FORMAT FOR PROPOSALS
Please format your response to this RFP in the following manner:
A. Organization
28
254
1. Describe your organization, date founded, ownership and other business
affiliations. Provide number and location of affiliated offices. Specify the number
of years your organization has provided investment management service.
2.
research, etc.) and comment on your
3. Within the past three years, have there been any significant developments in your
organization (e.g., changes in ownership, new business ventures)? Do you expect
any changes in the near future?
4. Describe any U.S. Securities and Exchange Commission (SEC) censures or litigation
involving your organization, any officer, or employee at any time in the last ten
years.
5.
coverage. Include dollar amount of coverage.
B. Personnel
1. Identify the number of professionals employed by your firm by classification.
2. Provide an organization chart showing function, positions, and titles of all the
professionals in your organization.
3. Provide biographical information on investment professionals that will be involved
in the decision-making process for our portfolio, including number of years at your
firm. Identify the person who will be the primary portfolio manager assigned to the
account.
4. Describe
address any incentive compensation programs.
C. Assets Under Management
1.Summarize your institutional investment management asset totals by category for
your latest reporting period in the following table:
Nsgdq Qdrsqhbshud
Mtladq Mtladq ne
Etmcr
Nodq`shmf Etmcr
ne Bkhdmsr Bkhdmsr
Governmental _________ $_______________ _________ $_______________
Governmental Pension _________ $_______________ N/A N/A
Non Governmental
_________ $_______________
N/A N/A
Pension
29
255
Corporate _________ $_______________ N/A N/A
High Net Worth Client _________ $_______________ N/A N/A
Endowmental/Foun-
_________ $_______________ N/A N/A
dation
2.Provide the number of separate accounts whose portfolios consist of operating
funds.
3.List in the following table the percentage by market value of aggregate assets
under all governmental accounts under management for your latest reporting
period:
Percent by Market
Type of Asset
Value
U.S. Treasury securities
Federal Agency obligations
Corporate securities rated AAA-AA
Corporate securities rated A
Corporate securities rated BBB or
lower
Other
(specify_______________________)
4.Describe the procedures that your firm has in place to address the potential or
actual credit downgrade of an issuer and to disclose and advise a client of the
situation.
5. Provide data on account/asset growth over the past five years. Indicate the
number of government accounts gained and the number of government accounts
lost.
6. List your five governmental largest clients. Identify those that are exclusively
operating fund relationships and/or those that are other relationships (e.g., bond
fund, retirement fund).
7. I and II (including all schedules).
8. Provide proof of State of California Registration, if your firm is not eligible for SEC
registration.
9. Provide a sample contract for services.
30
256
D. Philosophy/Approach
1.
philosophy regarding average duration, maturity, investment types, credit quality,
and yield.
2. Describe in detail your investment process, as you would apply it to City of La
3. What are the primary strategies for adding value to portfolios?
4. Describe the process you would recommend for establishing the investment
objectives and constraints for this account.
5. Describe in detail your process of credit risk management, including how you
analyze credit quality, monitor credits on an ongoing basis, and report credit to
governmental accounts.
6.
7. -making process in terms of structure, committees,
membership, meeting frequency, responsibilities, integration of research ideas, and
portfolio management.
8. Describe your research capabilities as they would pertain to governmental
accounts. What types of analysis do you use?
9. with the broker-dealer
community.
E. Portfolio Management
1. Are portfolios managed by teams or by one individual?
2. What is the average number of accounts handled per manager?
3. Which professional staff member will be the primary client contact for City of La
Quinta, CA?
4. How frequently are you willing to meet with us?
5.Describe procedures used to ensure that portfolios comply with client investment
objectives, policies, and bond resolutions.
F.Fees Charged
1. schedule applicable to this RFP.
2.Identify any expenses that would not be covered through this fee structure and
31
257
3.Is there a minimum annual fee?
G. Performance Reporting
1.Please report on all accounts under $100 million.
2.Please provide performance history for governmental accounts for the last five
years.
3.Please provide risk measurements for governmental accounts for the last five
years.
4. Indicate whether your returns are calculated and compiled in accordance with
the Association for Investment Management and Research (AIMR/CFA Institute)
standards.
5. Do your reports conform to the State of California reporting standards? Are you
willing to customize your reports to meet our specifications?
6. How will you notify us of investment transactions?
7. Are confirmations of investment transactions sent directly by the broker/dealer to
the client?
8. Do your reports include rating information on investments which is required by
GASB 40?
H.References
Provide a list of at least five (5) client references in California. References should be
public agencies with portfolio size and investment objectives similar to City of La Quinta,
CA. Include length of time managing the assets, contact name, and phone number.
I.Insurance Requirements
Exhibit A defines the insurance requirements that will need to be met prior to the
J.Submittal of proposals
1.Seven (7) copies of the proposal shall be submitted in a sealed envelope bearing
the caption RFP for (City of La Quinta, CA) and addressed to:
City of La Quinta, CA
78-495 Calle Tampico
La Quinta, CA 92253
Attention: Rita Conrad, Finance Director/Treasurer
32
258
2.Proposal must be received no later than \[Time\] PST on \[Month, Day, and Year\].
3.Proposals should be verified before submission. The City of La Quinta, CA shall
not be responsible for errors or omissions on the part of the respondent in
preparation of a proposal. The City of La Quinta, CA reserves the right to reject
any and all proposals, to wave any irregularities, or informalities in the
proposals, and to negotiate modifications to any proposal.
Enclosures: Investment Policy
Treasurers Report
33
259
Appendix H
Portfolio
ment Firm
not need City Manager or City Treasurer approval to make permissible
Allowed per
Professional
YesYesYesYesYesYesYesYesYesYesYesYesYes
(8)
NoNoNoNoNoNoNoNo
260
Manage
Allowed per
City Policy
Yes
YesYesYesYesYesYesYesYesYesYes
(7)
NoNoNoNoNoNoNoNoNoNo
Collateralized 110%
Comments
(6)
.
ory Commission
1
-
1 / F
MultipleMultipleMultiple
Credit
Rating
Limits
NoneNoneNoneNoneNoneNoneNoneNoneNoneNoneNoneNoneNoneNoneNone
(5)
AA
does
-
A
1 / P
and
-
Investment: Investment Portfolio Reporting Practices CA Debt and Investment Advis
A
policy
portfolio
20% of the base value of the portfolio
Professional Portfolio Management Firm
buy and hold
Authorized Investment
Limits (% of Portfolio)
the base value of the
25% of portfolio
NoneNoneNoneNoneNoneNoneNoneNoneNoneNoneNoneNone
(4)
40%30%20%20%30%20%
is not required to adhere to the
20% of
180 Days270 Days
MaximumMaturity
92 Days92 Days
5 Years5 Years5 Years5 Years5 Years5 Years5 Years5 Years5 Years5 Years
1 Year
NoneNoneNoneNoneNoneNone
(3)
34
Firm (PPMF)
Reverse Repurchase Agreements
s)
Securities Lending Agreements
Interest bearing active deposits
Obligations
CA Local Agency Obligations
Collateralized Bank Deposits
Money Market Mutual Funds
County Pooled Investments
negotiable CD
Repurchase Agreements
Asset Backed Securities
lumn (8).
Investment Category Cash and Equivalents
Bankers Acceptances
Local Agency Bonds
Medium Term Notes
Commercial Paper
s
US Treasuriests
Permissible Investment Chart
Mutual Fundsment
US Agencies
Negotiable CDTime Deposi
of California
investments as detailed in co
LAIF
(2)
anage
-
(including non
-
Source of Columns (1) through (5)
Professional Portfolio m
State
City of La Quinta
53601(g), 53635
GovernmentCode Section
53601(m)
California
53601(a)53601(d)53601(h)53601(n)53601(b)1(e)
53601(c)53601(k)53601(k)
53601(f)deposits and
53601(i)53601(i)53601(i)
16429.1
5368453632
Note: The
(1)
5360
Appendix I
Investment Management Process and Risk
Except as provided for in Section 27000.3, Government Code Section 53600.3 declares as a trustee
each person, treasurer, or governing body authorized to make investment decisions on behalf of local
agencies. As trustees are subject to the prudent investor standard. These persons shall act with care,
skill, prudence, and diligence under the circumstances then prevailing when investing, reinvesting,
purchasing, acquiring, exchanging, selling, and managing funds. Section 53600.5 further stipulates
that the primary objective of any person investing public funds is to safeguard principal; secondly, to
meet liquidity needs of the depositor; and lastly, to achieve a return or yield on invested funds
(Government Code Section 27000.5 specifies the same objectives for county treasurers and board of
supervisors).
Risk is inherent throughout the investment process. There is investment risk associated with any
investment activity and opportunity risk related to inactivity. Market risk is derived from exposure to
overall changes in the general level of interest rates while credit risk is the risk of loss due to the failure
of the insurer of a security. The market value of a security varies inversely with the level of interest
rates. If an investor is required to sell an investment with a five percent yield in a comparable seven
percent rate environment, that security will be sold at a loss. The magnitude of that loss will depend on
the amount of time until maturity.
Purchasing certain allowable securities with a maturity of greater than five years requires approval of
the governing board (see Government Code Section 53601). Part of that approval process involves
assessing and disclosing the risk and possible volatility of longer-term investments
Another element of market risk is liquidity risk. Instruments with unique call features or special
structures, or those issued by little known companies, are often
thinly traded. Their uniqueness often makes finding prospective buyers in a secondary market more
difficult and, consequently, the securities' marketability and price are discounted. However, under
certain market conditions, gains are also possible with these types of securities.
Default risk represents the possibility that the borrower may be unable to repay the obligation as
scheduled. Generally, securities issued by the federal government and its agencies are considered the
most secure, while securities issued by private corporations or negotiable certificates of deposit issued
by commercial banks have a greater degree of risk. Securities with additional credit enhancements,
such as bankers acceptances, collateralized repurchase agreements and collateralized bank deposits are
somewhere between the two on the risk spectrum.
The vast majority of portfolios are managed within a buy and hold policy. Investments are purchased
with the intent and capacity to hold that security until maturity. At times, market forces or operations
may dictate swapping one security for another or selling a security before maturity. Continuous analysis
and fine tuning of the investment portfolio are considered prudent investment management.
The Government Code contains specific provisions regarding the types of investments and practices
permitted after considering the broad requirement of preserving principal and maintaining liquidity before
seeking yield. These provisions are intended to promote the use of reliable, diverse, and safe investment
instruments to better ensure a prudently managed portfolio worthy of public trust.
Chapter II. Fund Management
Local Agency Investment Guidelines 2010 Issued by California Debt and Investment Advisory Commission
35
261
Appendix J
GLOSSARY
(Adopted from the Municipal Treasurers Association)
The purpose of this glossary is to provide the reader of the City of La Quinta investment
policies with a better understanding of financial terms used in municipal investing.
AGENCIES: Federal agency securities and/or introductory material, and a detailed Statistical
Government-sponsored enterprises. Section.
ASKED: The price at which securities are offered. CONDUIT FINANCING: A form of Financing in
which a government or a government agency
BANKER ACCEPTANCE (BA): A draft or bill or lends its name to a bond issue, although it is
exchange accepted by a bank or trust company. acting only as a conduit between a specific project
The accepting institution guarantees payment of and bond holders. The bond holders can look only
the bill, as well as the issuer. to the revenues from the project being financed
for repayment and not to the government or
BID: The price offered by a buyer of securities. agency whose name appears on the bond.
(When you are selling securities, you ask for a
bid.) See Offer. COUPON: (a) The annual rate of interest that a
bons issuer promises to pay the bondholder on
BROKER: A broker brings buyers and sellers the bons face value. (b) A certificate attached
together for a commission. to a bond evidencing interest due on a payment
date.
CERTIFICATE OF DEPOSIT (CD): A time deposit
with a specific maturity evidenced by a DEALER: A dealer, as opposed to a broker, acts as
certificate. Large-denomination Cs are typically a principal in all transactions, buying and selling
negotiable. for his own account.
COLLATERAL: Securities, evidence of deposit or DEBENTURE: A bond secured only by the general
other property which a borrower pledges to credit of the issuer.
secure repayment of a loan. Also refers to
securities pledged by a bank to secure deposits of DELIVERY VERSUS PAYMENT: There are two
public monies. methods of delivery of securities: delivery versus
payment and delivery versus receipt. Delivery
COMMERCIAL PAPER: Short-term unsecured versus payment is delivery of securities with an
promissory notes issued by a corporation to raise exchange of money for the securities. Delivery
working capital. These negotiable instruments versus receipt is delivery of securities with an
are purchased at a discount to par value or at par exchange of a signed receipt for the securities.
value with interest bearing. Commercial paper is
issued by corporations such as General Motors DERIVATIVES: (1) Financial instruments whose
Acceptance Corporation, IBM, Bank America, etc. return profile is linked to, or derived from, the
movement of one or more underlying index or
COMPREHENSIVE ANNUAL FINANCIAL REPORT security, and may include a leveraging factor, or
(CAFR): The official annual report for the City of (2) financial contracts based upon notional
La Quinta. It includes five combined statements amounts whose value is derived from an
for each individual fund and account group underlying index or security (interest rates, foreign
prepared in conformity with GAAP. It also exchange rates, equities or commodities).
includes supporting schedules necessary to
demonstrate compliance with finance-related DISCOUNT: The difference between the cost price
legal and contractual provisions, extensive of a security and its maturity when quoted at
36
262
lower than face value. A security selling below 3. FLBs (Federal Land Bank Bonds) - Long-term
original offering price shortly after sale also is mortgage credit provided to farmers by Federal
considered to be at a discount. Land Banks. These bonds are issued at
irregular times for various maturities ranging
DISCOUNT SECURITIES: Non-interest bearing from a few months to ten years. The
money market instruments that are issued a minimum denomination is $1,000. They carry
discount and redeemed at maturity for full face semi-annual coupons. Interest is calculated on
value, e.g., U.S. Treasury Bills. a 360-day, 30 day month basis.
DIVERSIFICATION: Dividing investment funds 4. FFCBs (Federal Farm Credit Bank) - Debt
among a variety of securities offering instruments used to finance the short and
independent returns. intermediate term needs of farmers and the
national agricultural industry. They are issued
FEDERAL CREDIT AGENCIES: Agencies of the monthly with three- and six-month maturities.
Federal government set up to supply credit to The FFCB issues larger issues (one to ten
various classes of institutions and individuals, year) on a periodic basis. These issues are
highly liquid.
farmers, farm cooperatives, and exporters.
5. FICBs (Federal Intermediate Credit Bank
1. FNMAs (Federal National Mortgage Debentures) - Loans to lending institutions
Association) - Like GNMA was chartered used to finance the short-term and
under the Federal National Mortgage intermediate needs of farmers, such as
Association Act in 1938. FNMA is a federal seasonal production. They are usually issued
corporation working under the auspices of the monthly in minimum denominations of $3,000
Department of Housing and Urban with a nine-month maturity. Interest is
Development (HUD). It is the largest single payable at maturity and is calculated on a 360-
provider of residential mortgage funds in the day, 30-day month basis.
United States. Fannie Mae, as the corporation
is called, is a private stockholder-owned 6. FHLMCs (Federal Home Loan Mortgage
Corporation) - a government sponsored entity
include a variety of adjustable mortgages and established in 1970 to provide a secondary
second loans, in addition to fixed-rate market for conventional home mortgages.
Mortgages are purchased solely from the
liquid and are widely accepted. FNMA Federal Home Loan Bank System member
assumes and guarantees that all security lending institutions whose deposits are insured
holders will receive timely payment of by agencies of the United States Government.
principal and interest. They are issued for various maturities and in
minimum denominations of $10,000. Principal
2. FHLBs (Federal Home Loan Bank Notes and and interest is paid monthly. Other federal
Bonds) - Issued by the Federal Home Loan agency issues are Small Business
Bank System to help finance the housing Administration notes (SBAs), Government
industry. The notes and bonds provide National Mortgage Association notes
liquidity and home mortgage credit to savings (GNMAs), Tennessee Valley Authority notes
and loan associations, mutual savings banks, (TVAs), and Student Loan Association notes
cooperative banks, insurance companies, and (SALLIE-MAEs).
mortgage-lending institutions. They are
issued irregularly for various maturities. The FEDERAL DEPOSIT INSURANCE CORPORATION
minimum denomination is $5,000. The notes (FDIC): A federal agency that insures bank
are issued with maturities of less than one deposits, currently up to $250,000 per deposit
year and interest is paid at maturity. through December 31, 2013.
37
263
FEDERAL FUNDS RATE: The rate of interest at
$50,000,000 for any agency. The City is
which Fed funds are traded. This rate is currently
restricted to a maximum of ten transactions per
pegged by the Federal Reserve through open-month. It offers high liquidity because deposits
market operations. can be converted to cash in 24 hours and no
interest is lost. All interest is distributed to those
FEDERAL HOME LOAN BANKS (FHLB): agencies participating on a proportionate share
Government sponsored wholesale banks basis determined by the amounts deposited and
(currently 12 regional banks) which lend funds the length of time they are deposited. Interest is
and provide correspondent banking services to paid quarterly. The State retains an amount for
member commercial banks, thrift institutions, reasonable costs of making the investments, not
credit unions and insurance companies. The to exceed one-half of one percent of the earnings.
mission of the FHLBs is to liquefy the housing
related assets of its members who must purchase LIQUIDITY: A liquid asset is one that can be
stock in their district Bank. converted easily and rapidly into cash without a
substantial loss of value. In the money market, a
FEDERAL OPEN MARKET COMMITTEE (FOMC): security is said to be liquid if the spread between
Consists of seven members of the Federal bid and asked prices is narrow and reasonable size
Reserve Board and five of the twelve Federal can be done at those quotes.
Reserve Bank Presidents. The President of the
New York Federal Reserve Bank is a permanent LOCAL GOVERNMENT INVESTMENT POOL (LGIP):
member, while the other Presidents serve on a The aggregate of all funds from political
rotating basis. The Committee periodically meets subdivisions that are placed in the custody of the
to set Federal Reserve guidelines regarding State Treasurer for investment and reinvestment
purchases and sales of Government Securities in
the open market as a means of influencing the MARKET VALUE: The price at which a security is
volume of bank credit and money. trading and could presumably be purchased or
sold.
FEDERAL RESERVE SYSTEM: The central bank of
the United States created by Congress and MASTER REPURCHASE AGREEMENT: A written
consisting of a seven member Board of Governors contract covering all future transactions between
in Washington, D.C., 12 regional banks and about the parties to repurchase--reverse repurchase
5,700 commercial banks that are members of the
system. the transactions. A master agreement will often
specify, among other things, the right of the
GOVERNMENT NATIONAL MORTGAGE buyer-lender to liquidate the underlying securities
ASSOCIATION (GNMA or Ginnie Mae): Securities in the event of default by the seller-borrower.
influencing the volume of bank credit guaranteed
by GNMA and issued by mortgage bankers, MATURITY: The date upon which the principal or
commercial banks, savings and loan associations, stated value of an investment becomes due and
and other institutions. Security holder is payable
protected by full faith and credit of the U.S.
Government. Ginnie Mae securities are backed MONEY MARKET: The market in which short-term
by the FHA, VA or FMHM mortgages. The term debt instruments (bills, commercial paper,
pass-throughsbankers
Maes.
OFFER: The price asked by a seller of securities.
LAIF (Local Agency Investment Fund) - A special (When you are buying securities, you ask for an
fund in the State Treasury which local agencies offer.) See Asked and Bid.
may use to deposit funds for investment. There
is no minimum investment period and the OPEN MARKET OPERATIONS: Purchases and
minimum transaction is $5,000, in multiples of sales of government and certain other securities in
$1,000 above that, with a maximum balance of the open market by the New York Federal Reserve
38
264
Bank as directed by the FOMC in order to
repurchase them at a fixed price on a fixed date.
influence the volume of money and credit in the y in effect lends sell
The bu
economy. Purchases inject reserves into the money for the period of the agreement, and the
bank system and stimulate growth of money and terms of the agreement are structured to
credit; sales have the opposite effect. Open compensate him for this. Dealers use RRP
extensively to finance their positions. Exception:
important and most flexible monetary policy tool. When the Fed is said to be doing RRP, it is lending
money that is increasing bank reserves.
PORTFOLIO: Collection of all cash and securities
under the direction of the City Treasurer, SAFEKEEPING: A service to customers rendered
including Bond Proceeds. by banks for a fee whereby securities and
valuables of all types and descriptions are held in
PRIMARY DEALER: A group of government the bank's vaults for protection.
securities dealers who submit daily reports of
market activity and positions and monthly SECONDARY MARKET: A market made for the
financial statements to the Federal Reserve Bank purchase and sale of outstanding issues following
of New York and are subject to its informal the initial distribution.
oversight. Primary dealers include Securities and
Exchange Commission (SEC)-registered securities SECURITIES & EXCHANGE COMMISSION: Agency
broker-dealers, banks and a few unregulated created by Congress to protect investors in
firms. securities transactions by administering securities
legislation.
QUALIFIED PUBLIC DEPOSITORIES: A financial
institution which does not claim exemption from SEC RULE 15C3-1: See Uniform Net Capital Rule.
the payment of any sales or compensating use or
ad valorem taxes under the laws of this state, STRUCTURED NOTES: Notes issued by
which has segregated for the benefit of the Government Sponsored Enterprises (FHLB, FNMA,
commission eligible collateral having a value of SLMA, etc.) and Corporations which have
not less than its maximum liability and which has imbedded options (e.g., call features, step-up
been approved by the Public Deposit Protection coupons, floating rate coupons, and derivative-
Commission to hold public deposits. based returns) into their debt structure. Their
market performance is impacted by the fluctuation
RATE OF RETURN: The yield obtainable on a of interest rates, the volatility of the imbedded
security based on its purchase price or its current options and shifts in the shape of the yield curve.
market price. This may be the amortized yield to
maturity on a bond the current income return. SURPLUS FUNDS: Section 53601 of the California
Government Code defines surplus funds as any
REPURCHASE AGREEMENT (RP OR REPO): A money not required for immediate necessities of
holder of securities sells these securities to an the local agency. The City has defined immediate
investor with an agreement to repurchase them necessities to be payment due within one week.
at a fixed price on a fixed date. The security
TREASURY BILLS: A non-interest bearing discount
period of the agreement, and the terms of the security issued by the U.S. Treasury to finance the
agreement are structured to compensate him for national debt. Most bills are issued to mature in
this. Dealers use RP extensively to finance their three months, six months or one year.
positions. Exception: When the Fed is said to be
doing RP, it is lending money that is increasing TREASURY BONDS: Long-term coupon-bearing
bank reserves. U.S. Treasury securities issued as direct
obligations of the U.S. Government and having
REVERSE REPURCHASE AGREEMENTS (RRP or initial maturities of more than 10 years.
RevRepo) - A holder of securities sells these
securities to an investor with an agreement to
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TREASURY NOTES: Medium-term coupon-bearing
U.S. Treasury securities issued as direct
obligations of the U.S. Government and having
initial maturities from two to 10 years.
UNIFORM NET CAPITAL RULE: Securities and
Exchange Commission requirement that member
firms as well as nonmember broker-dealers in
securities maintain a maximum ratio of
indebtedness to liquid capital of 15 to 1; also
called net capital rule and net capital ratio.
Indebtedness covers all money owed to a firm,
including margin loans and commitments to
purchase securities, one reason new public issues
are spread among members of underwriting
syndicates. Liquid capital includes cash and
assets easily converted into cash.
UNIFORM PRUDENT INVESTOR ACT: The State
of California has adopted this Act. The Act
contains the following sections: duty of care,
diversification, review of assets, costs,
compliance determinations, delegation of
investments, terms of prudent investor rule, and
application.
YIELD: The rate of annual income return on an
investment, expressed as a percentage. (a)
INCOME YIELD is obtained by dividing the current
dollar income by the current market price for the
security. (b) NET YIELD or YIELD TO MATURITY
is the current income yield minus any premium
above par or plus any discount from par in
purchase price, with the adjustment spread over
the period from the date of purchase to the date
of maturity of the bond.
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ATTACHMENT 2
CITY OF LA QUINTA
Investment Policy
Fiscal Year 2013/20142014/2015
Table of Contents
Section Topic Page
Executive Summary 2
I General Purpose 4
II Investment Policy 4
III Scope 4
IV Objectives 4
Safety of Principal
Provide Liquidity
Yield A Risk-Based Market Rate Of Return
V Maximum Maturities 6
VI Prudence 6
VII Authority 7
VIII Ethics and Conflicts of Interest 7
IX Authorized Financial Dealers and Institutions 7
Broker/Dealers
Financial Institutions
X Permissible Deposits and Investments 8
XI Investment Pools 13
XII Payment and Custody 13
XIII Interest Earning Distribution Policy 13
XIV Internal Controls and Independent Auditors 14
XV Reporting Standards 15
XVI Financial Assets and Investment Activity Not Subject to this Policy 15
XVII Investment of Bond Proceeds 16
XIII Investment Advisory Board - City of La Quinta 16
XIX Investment Policy Adoption 17
Appendices Topic Page
ASummary of Permissible Deposits and Investments 18
BCity of La Quinta Municipal Code Ordinance 2.70 - Investment Advisory Board 20
CCity of La Quinta Municipal Code Ordinance 3.08 - Investment of Moneys and Funds 21
DSegregation of Major Investment Responsibilities 23
EListing of Approved Financial Institutions 24
FBroker/Dealer Questionnaire and Certification 25
GRequest for Proposal for Professional Portfolio Management Firm 29
HPermissible Investment Chart Professional Portfolio Management Firm 35
IInvestment Management Process and Risk 36
JGlossary 37
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CITY OF LA QUINTA
Investment Policy
Fiscal Year 2013/20142014/2015
Executive Summary
The general purpose of this Investment Policy is to provide the rules and standards that must be
followed in administering the City of La Quinta.
The Investment Policy conforms to all state and local statutes and applies to all deposits
and investments of the City of La Quinta, Successor Agency to the City of La Quinta
Redevelopment Agency, and the City of La Quinta Financing and Housing Authorities
(Cit).
It is the policy to deposit and invest public funds in a manner that shall provide:
Safety of principal;
Liquidity to meet ions and requirements that may be reasonably
anticipated; and
A risk-based market rate of return.
. This buy-and-hold
policy shall not prevent the sale of a security to minimize loss of principal when an issuer or
backer suffers declining credit worthiness or when the liquidity needs of the portfolio require
that a security be sold.
derived from the City Municipal Code.
Management responsibility for the investment program is delegated to the City Treasurer, who
sh
program consistent with the Investment Policy. The Treasurer shall establish and implement a
system of internal controls to accomplish the following objectives:
Safeguard assets;
Orderly and efficiently conduct its business, including adherence to all City management
policies;
Prevent or detect errors and fraud;
Accurately complete all accounting records; and
Timely prepare all reliable financial information.
The System of Internal Controls developed by the City Treasurer shall be reviewed annually by the
independent auditors in connection with tatements.
The City Manager, City Treasurer and city employees involved in the Citys banking and
investment process shall conduct the Citys business in an ethical manner and refrain from any
activity or relationship that may be, or have the appearance of, a conflict of interest.
The City Treasurer maintains a listing of financial institutions which are approved for investment
purposes. All Broker/Dealers and financial institutions that provide investment services will be
subject to City Council approval.
The Treasurer will be permitted to invest only in the permissible deposits and investments
described in Section X and Appendix A up to the specified maximum allowable percentages
and/or dollar limitations and, where applicable, through the bid process requirements. Permissible
deposits and investments include, in general:
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FDIC-Insured Checking, Savings, and Sweep Accounts;
Collateralized Bank Deposits;
Certificates of Deposit;
Negotiable Certificates of Deposit;
U.S. Government Agency Securities and Federal Government Securities;
Prime Commercial Paper;
Local Agency Investment Fund (LAIF);
Money Market Mutual Funds;
Corporate Notes; and
Professionally Managed Accounts.
The City deposits and investments are generally limited to three years maximum maturity.
However, the projected amount of funds not expected to be disbursed within five years may be
invested in notes and bonds maturing between three and five years. Additionally, funds may be
invested for up to ten (10) years as further discussed in Section V.
l or target yield for a
rate of return on its investment portfolio. As a basi
monthly report will display the rates of return on the three-month Bill, six-month Bill, and the one
and two-year U.S. Treasury Note, comparable-period rates for commercial paper, and the yield
The Investment Policy shall be adopted by resolution of the La Quinta City Council on an annual
basis. The Investment Policy will be adopted before the end of June of each year.
This Executive Summary is only an overview of the City Investment Policy. Reading this
summary does not constitute a complete review, which can only be accomplished by reviewing all
of the pages herein.
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City of La Quinta
Statement of Investment Policy
July 1, 20134 through June 30, 20145
Adopted by the City Council on
I GENERAL PURPOSE
The general purpose of this document is to provide the rules and standards that must be followed
in administering the City of La Quintainvestments.
II INVESTMENT POLICY
It is the policy of the City of La Quinta to deposit and invest public funds in a manner that shall
provide:
Safety of principal;
Liquidity to meet d requirements that may be reasonably
anticipated; and
A risk-based market rate of return.
The Investment Policy conforms to all State and local statutes governing the investment of public
funds and sets forth the permissible deposits and investments o
limitations thereon.
III SCOPE
Except as further detailed in Section XVII, this Investment Policy applies to all deposits and
investments of the City of La Quinta, Successor Agency to the City of La Quinta Redevelopment
Agency and the City of La Quinta Financing and Housing Authorities (hereafter referred to in this
document as the "City"). These funds are reported in the City Comprehensive Annual Financial
Report (CAFR) and include all funds within the following fund types:
General
Special Revenue
Capital Projects
Debt Service
Enterprise
Internal Service
Trust and Agency
Any new fund types and fund(s) that may be created.
IV OBJECTIVES
The objectives of the City's investment activity, in order of priority and importance, are:
1. Safety of Principal
Safety of principal is the foremost objective of the investment program.
Investments shall be undertaken in a manner that seeks to ensure the preservation of
principal of the overall portfolio in accordance with the permissible deposits and
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investments.
The City shall endeavor to preserve its investment principal by making only permissible
deposits and investments, undertaken in a controlled manner to minimize the possibility of
loss or misappropriation through malfeasance or otherwise. Investments not backed by
the full faith and credit of the United States Government shall be diversified by allocating
assets between different types of permissible investments, maturities, and issuers as a
means to mitigate credit risk and interest rate risk.
a. Credit Risk is the risk of loss from the failure of the security issuer or backer.
Credit risk may be mitigated by:
Limiting investments to investment grade securities as permitted in
Section X;
Diversifying the issuers of the securities in the investment portfolio so
that potential losses due to issuer failure or individual securities
downgrades may be minimized.
b. Interest Rate Risk is the risk that market values of securities in the portfolio will
decline due to changes in general interest rates. Interest rate risk may be mitigated
by:
Structuring the investment portfolio so that securities mature to meet
cash requirements for ongoing operations, thereby avoiding the need to
sell securities on the open market prior to maturity; and
Investing operating funds primarily in shorter-term securities.
c. Liquidity Risk is the risk that a security cannot be liquidated because of its unique
features or structure or because it is thinly traded. Liquidity risk is not a material
issue for the Citys portfolio because of the permissible deposits and investments
(see Section X) and because the City maintains a buy-and-hold policy and holds
securities and other investments to maturity. A discussion of the Citys investment
process and risk is presented in Appendix I.
2. Provide Liquidity
The investment portfolio shall remain sufficiently liquid to meet all cash needs
that may be reasonably anticipated. This is accomplished by structuring the portfolio so
that sufficient liquid funds are available to meet anticipated demands. Furthermore, since
all possible cash needs cannot be anticipated the portfolio should be diversified and
consist of securities with active secondary or resale markets.
ld securities and other investments to maturity. Accordingly,
securities shall not be sold prior to maturity with the following exceptions:
A security with declining credit quality can be sold early to minimize loss of
principal;
Unanticipated liquidity needs of the portfolio require that one or more securities be
sold.
3. Yield a Risk-Based Market Rate Of Return
The investment portfolio shall be structured with the objective of yielding a risk-
based market rate of return throughout budgetary and economic cycles. Return on
investment is less important than the safety and liquidity objectives described above.
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for a rate of return on its investment portfoli
influenced by several factors, including actions by the Federal Reserve Board, the
marketplace, and overall economic perceptions and conditions. These factors will not
-and-hold policy
As a basis for comparison only, the Treasurer monthly reports will display the rates of
return on the three-month Bill, six-month Bill, and one and two-year U.S. Treasury Note,
comparable-
Local Agency Investment Fund (LAIF). The Treasurer may use these or any other
published rates of return that the Treasurer deems appropriate for comparison to the return
V MAXIMUM MATURITIES
It is the policy to hold securities and other investments until maturity, thus avoiding the risk
of market value fluctuations with overall market interest rates. This buy-and-hold policy shall not
prevent the sale of a security to minimize loss of principal when an issuer or backer suffers
declining credit worthiness or when the liquidity needs of the City require that a security be sold.
The buy-and-hold policy be structured so that
sufficient liquid funds are available from maturing investments and other sources to meet all
reasonably-anticipated cash needs. To meet anticipated cash needs, it is essential that the
Treasurer have reliable, diligently prepared cash flow projections.
Annually, the Treasurer shall project the amount of funds not expected to be disbursed within ten
years. For FY2013/20142014/2015, the amount of such funds is projected to be $420 million.
Funds up to that amount may be invested in U.S.Treasury notes and bonds, Local Agency
Obligations, and California Local Agency Obligations maturing between 3 and 10 years. For all
other funds, investments are limited to five years maximum maturity.
VI PRUDENCE
The City shall follow the Uniform Prudent Investor Act as adopted by the State of California in
Probate Code Sections 16045 through 16054.
Section 16053 sets forth the terms of a prudent person which are as follows: Investments shall
be made with judgment and care - under circumstances then prevailing - which persons of
prudence, discretion, and intelligence exercise in the professional management of their own
affairs, not for speculation, but for investment, considering the probable safety of their capital as
well as the probable income to be derived.
VII AUTHORITY
Authority to manage the City's investment portfolio is derived from section
Municipal Code. Management responsibility for the investment program is delegated to the City
Treasurer
Investment Policy.
The City Treasurer shall establish written procedures for the operation of the investment program
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consistent with the Investment Policy. Procedures should include reference to safekeeping, wire
transfer agreements, banking service contracts, and collateral/depository agreements. Such
procedures shall include explicit delegation of authority to persons responsible for investment
transactions. No person may engage in an investment transaction except as provided under the
terms of this Investment Policy and the procedures established by the City Treasurer. The City
Treasurer shall be responsible for all transactions undertaken and shall establish a system of
controls to regulate the activities of subordinate officials. The City Manager or his/her designee
shall acknowledge in writing all purchases and sales of investments prior to their execution by the
City Treasurer.
VIII ETHICS AND CONFLICTS OF INTEREST
The City Manager, City Treasurer and city employees involved in the Citys banking and
investment process shall conduct the Citys business in an ethical manner and refrain from any
activity or relationship that may be, or have the appearance of, a conflict of interest. Any
questionable activity or relationship shall be reported immediately and in compliance with the
procedures set forth in Section 1.40 Conflicts of Interest and Acceptance of Gifts and other
Gratuities of the City of La Quinta Personnel Manual. Reporting must be made in accordance with
the personnel policies of the City and, until resolved, the officer or employee shall refrain from
participating in the Citys business related to the matter.
The City Manager, City Treasurer and City employees may conduct personal business with banks,
brokers, and other financial institutions that are authorized to conduct business with the City
provided that the terms of the activity to the accountholder with the City are the same as those
that are available to the public in general.
IX AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The City Treasurer maintains a listing of financial institutions which are approved for direct
investment purposes. In addition a list will also be maintained of approved broker/dealers selected
by credit worthiness.
1. Broker/Dealers who desire to become bidders for direct investment transactions must
supply the City with the following:
Current audited financial statements;
Proof of Financial Industry Regulatory Authority (FINRA) Certification;
Trading resolution;
Resume of Financial broker; and
Completion of the City of La Quinta Broker/Dealer questionnaire (see Appendix F)
which contains a certification of having read the City Investment Policy.
The City Treasurer shall evaluate the documentation submitted by the broker/dealer and
independently verify existing reports on file for any firm and individual conducting
investment related business.
The City Treasurer will also contact the following agencies during the verification process:
Financial Industry Regulatory Authority (FINRA) Public Disclosure Report File (1-
800-289-9999).
State of California Department of Corporations (1-916-445-3062).
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The City Treasurer maintains a listing of financial institutions which are approved for
investment purposes. All Broker/Dealers and financial institutions that provide investment
services will be subject to City Council approval.
Each securities dealer shall provide monthly and quarterly reports filed pursuant to U.S.
Treasury Department regulations. Each mutual fund shall provide a prospectus and
statement of additional information.
2. Financial Institutions will be required to meet the following criteria in order to receive City
funds for deposit or investment (see Appendix E, Listing of Approved Financial
Institutions):
a. Insurance - Public Funds shall be deposited only in financial institutions having
accounts insured by the Federal Deposit Insurance Corporation (FDIC).
b. Collateral - The amount of the City deposits or investments not insured by the
FDIC shall be collateralized by securities with market values of 110%, or by
mortgages with market values 150%, of the amount of invested funds plus unpaid
interest earnings.
c. Disclosure - Each financial institution maintaining invested funds in excess of the
FDIC insured amount shall furnish the City a copy of the most recent Call Report.
The City shall not invest in excess of the FDIC insured amount in banking
institutions which do not disclose to the city a current listing of securities pledged
for collateralization in public monies.
X PERMISSIBLE DEPOSITS AND INVESTMENTS
Permissible deposits and investments are summarized below. A more comprehensive list is
included in Appendix A.
MaximumMaximum
Permissible Investments and Limitations
Restrictions
(See Appendix A for Additional Information)AllocationMaturity
Sweep Account:
Current /
Checking & Savings Accounts FDIC Insured & Sweep Accounts 85% of Portfolio U.S. Treasuries
On Demand
and/or GSE's
Interest bearing active bank deposits non FDIC insured collateralized by Current / $40 million
60% of Portfolio
110% of eligible securities On Demand per bank
<= $250,000,
Certificates of Deposit - FDIC Insured
60% of Portfolio 5 Years including interest
per institution
<= $250,000
Negotiable Certificates of Deposit FDIC Insured 30% of Portfolio 5 Years including interest
per institution
<=$320,000,000
U.S. Treasury Bills, Notes and Bonds, and Government National 100% of Portfolio 5 Years maturing 3-10
Mortgage Association (GNMA) SecuritiesYrs.
Comment \[A1\]: Body of Policy (Pg10)
<=$320,000,000
10030% of
indicates 30% maximum, not 100%. Staff
Local Agency Bonds / California Local Agency Obligations 10 Years maturing 3-10
Portfolio
researched past IAB and Council reports and
Yrs.
found that this should have stated 30%.
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MaximumMaximum
Permissible Investments and Limitations
Restrictions
(See Appendix A for Additional Information)AllocationMaturity
Long term
better
U.S. Government Agency Securities and Federal Government Securities
$10 million per
purchase
which contain embedded rate options):
- Federal National Mortgage Association (FNMA) $20,000,000 5 Years 30% of Portfolio
- Federal Home Loan Bank Notes & Bonds (FHLB) $25,000,000 5 Years
- Federal Farm Credit Bank (FFCB) $30,000,000 5 Years
- Federal Home Loan Mortgage Corporation (FHLMC) $20,000,000 5 years
Prime Commercial Paperincluding Temporary Liquidity Guarantee $5,000,000 per
15% of Portfolio 90 Days
Program (TLGP) issuer maximum
Current / $50 million
Local Agency Investment Fund (LAIF) 30% of Portfolio
On Demand per account
Money market mutual funds regulated by the SEC that consistonly of US Current / Maintain $1 per
20% of Portfolio
Treasury Securities or GSE's and maintain a par value of $1 per shareOn Demand share par value
$5,000,000 max
Corporate Notes 10% of Portfolio 3 Years per issuer AA
rated or better
$10,000,000 max
Corporate Notes - Temporary Liquidity Guarantee Program (TLGP) 20% of Portfolio 3 Years per issuer, AA
rated or better
Requires
Professionally Managed Account 10% of Portfolio 3 Years City Council-
Approved RFP
Long-Term Scale
S&P A1 AAA, AA+, AA, AA-, A+, A
P1 Aaa, Aa1, Aa2, Aa3, A1, A2
Fitch AAA, AA+, AA, AA-, A+, A
Checking, Savings, and Sweep Accounts The City will only maintain checking, savings,
and sweep accounts with FDIC insured financial institutions. As authorized by the City
Council, a U.S. Treasury and/or U.S. Agency Securities Money Market Sweep Account
with a $50,000 target balance may be maintained in conjunction with the checking
account.
In addition, the Treasurer may invest in an interest bearing active deposit account as
approved in Government Code Section 53632. The deposit account must be collateralized
with securities that are in accordance with Government Code Sections 53632.5(c). In
addition, the market value of the collateralized securities must be maintained in
accordance with 53652 (a), and be held by a custodian in accordance with the
requirements of Government Code Section 53656. The
the deposit account shall be determined in accordance with Government Code Section
53658.
Certificates of Deposit - As authorized in Government Code Section 53649, Certificates of
Deposit are fixed term investments which are required to be collateralized from 110% to
150% depending on the specific security pledged as collateral in accordance with
Government Code Section 53652. There are no portfolio limits on the amount or maturity
Comment \[A2\]: Contradicts the table of
permissible investments, which shows limits
for this investment vehicle.
and restrictions.
Suggest striking this line.
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275
Collateralization will be required for Certificates of Deposits in excess of the FDIC insured
amount. The type of collateral is limited to City authorized investments. Collateral will
always be held by an independent third party from the institution that sells the Certificates
of Deposit to the City. Evidence of compliance with State Collateralization policies must
be supplied to the City and retained by the City Treasurer as follows:
Certificates of Deposits Insured by the FDIC: The City Treasurer may waive
collateralization of a deposit that is federally insured.
Certificates of Deposit in excess of FDIC Limits: The amount not federally insured
shall be 110% collateralized securities or 150% mortgages market value of that
amount of invested funds plus unpaid interest earnings.
portfolio.
The City does not allow investments in CDARs.
Comment \[A3\]: Suggest striking since it is
out here?
Negotiable Certificates of Deposit - issued by a nationally or state-chartered bank, a
savings association or a federal association (as defined by Section 5102 of the Financial
Code), a state or federal credit union, or by a federally- or state- licensed branch of a
CDs.
U.S. Treasury Bills, Notes, and Bonds and Government National Mortgage Associations
(GNMA) securities The City may invest in U.S. Treasury bills, notes, and bonds and
GNMA securities directly issued and backed by the full faith and credit of the U.S.
limits provides for investments in U.S. Treasury
issues and GNMAs toof 100% of the portfolio.
Comment \[A4\]: Suggest striking since it is
out here?
Local Agency Bonds and California Local Agency Obligations The City may invest in
California local agency obligations pursuant to 56301(a) and 53301(e). 53601(a) pertains
to investing in bonds issued by a local agency, department, board, agency or authority of
the local agency. 53601(e) pertains to investing in bonds and other defined indebtedness
of a local agency or department, board, agency or authority of the local agency within the
State of California.
Local Agency obligations to 30% of the portfolio with up to a ten year maximum maturity.
In addition, the Agency obligations must be invested in the long term rating of A, A2, A or
In the case of an initial public offering, including refinancings, the Treasurer may purchase
directly from the Bond Underwriter. In the case of secondary issues, the Treasurer will
rely on the approved Broker/Dealers.
U.S. Government Agency Securities and Federal Government Securities The City may
invest in securities issued by U.S. Government instrumentalities and agencies (commonly
referred to as government sponsored enterprises or ). These securities are not
backed by the full faith and credit of the U.S. Government. Publicly owned include
Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation
(FHLMC) and Student Loan Marketing Association (SLMA). Non-publicly owned
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include the Federal Home Loan Bank (FHLB), Federal Farm Credit Bank (FFCB), Federal
Land Bank (FLB) and Federal Intermediate Credit Bank (FICB).
icy allows investment only in securities of FNMA, FHLMC, FHLB
and FFCB. For Fiscal Year 2013/20142014/2015, the maximum face amount per issuer is
$20 million for FNMA and FHLMC, $25 million for FHLB and $30 million for FFCB. In
addition, no more than 30%
with a maximum $10 million face amount per purchase.
Prime Commercial Paper - As authorized in Government Code Section 53601(g), a portion
ial paper of the highest rating (A1 or
qualifications regarding investments in commercial paper based on the financial strength of
the corporation and the size of the investment.
investments in commercial paper with the following limitations:
Maximum 15% of the portfolio.
Maximum maturity of 90 days.
Maximum of $5 million per issuer.
These limitations are more restrictive than the State code which allows amounts of 25%
of the total portfolio with maturities up to 270 days with no per-issuer limitations.
The City is also permitted to invest in commercial paper issued under the FDIC Temporary
Liquidity Guarantee Program subject to the aforementioned commercial paper limitations.
Comment \[A5\]: TLGP program no longer
available
Local Agency Investment Fund (LAIF) - As authorized in Government Code Section
16429.1 and by LAIF procedures, local government agencies are each authorized to invest
a maximum of $50 million per account in this investment program administered by the
California State Treasurer. The City Treasurer may not invest more than $50 million per
account in LAIF. The City's investment in LAIF is allowable as long as the average
maturity of its investment portfolio does not exceed two years, unless specific approval is
authorized by the City Council. The City limits investment to 30% of the portfolio.
Money Market Mutual Funds - As authorized in Government Code Section 53601(k), local
agencies are authorized to invest in shares of beneficial interest issued by diversified
portfolio. There are a number of other qualifications and restrictions regarding allowable
investments in corporate notes and shares of beneficial interest issued by mutual funds
which include (1) attaining the highest ranking or the highest letter and numerical rating
provided by not less than two of the three largest nationally recognized rating services, or
(2) having an investment advisor registered with the Securities and Exchange Commission
with assets under management in excess of five hundred million dollars ($500,000,000).
s Investment Policy only allows investments in mutual funds that are money
market funds maintaining a par value of $1 per share that invest in direct issues of the
U.S. Treasury and/or US Agency Securities with an average maturity of their portfolio not
exceeding 90 days and the City limits such investments to 20% of the portfolio.
Corporate Notes - As authorized in Government Code Section 53601 (j), local agencies
may invest in corporate notes. The notes must be issued by corporations organized and
operating in the United States or by depository institutions licensed by the United States
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investment in corporate notes authorized by the Government Code with the following
limitations:
Maturities shall not exceed three years from date of purchase;
Eligible notes shall be regularly quoted and traded in the marketplace;
or better; and
Total investment shall not exceed 10% of the portfoliofor non-Temporary Liquidity
Guarantee Program (TLGP) Corporate Notes and 20% of the portfolio for TLGP
Corporate Notes; and
Comment \[A6\]: TLGP program no longer
available
The maximum aggregate investment shall not exceed $5 million face amount for
each issuer.
This is more restrictive than the State code allowed amounts of 30% of the total portfolio
with maturities up to five years with no per-issuer limitations.
The City is also permitted to invest in corporate notes issued under the FDIC Temporary
Liquidity Guarantee Program subject to the aforementioned corporate note limitations,
except that corporate notes issued under the Temporary Liquidity Guarantee Program or
otherwise backed by the United States government shall be limited to 20% of the portfolio
and the maximum aggregate investment for such notes shall not exceed $10 million face
amount for each issuer.
Professionally Managed Account(s) - The City Treasurer may place up to 10% of the
portfolio with a professional portfolio management firm (). The PPMF will be
approved by the City
completion of a request for proposal (RFP) as outlined in Appendix G. The PPMF shall
have:
An established professional reputation for asset or investment management;
Knowledge and working familiarity with State and Federal laws governing and
restricting the investment of public funds;
Substantial experience providing investment management services to local public
agencies whose investment policies and portfolio size are similar to those of the
City;
Professional liability (errors and omissions) insurance and fidelity bonding in such
amounts as are required by the City; and
Registration with the Securities and Exchange Commission under the Investment
Advisers Act of 1940.
Before engagement by the City and except as may be specifically waived or revised, the
PPMF with the
following exceptions:
The PPMF may be granted the discretion to purchase and sell investment securities
in accordance with Appendix I of this Investment Policy;
The PPMF is not required to adhere to the buy-and-hold policy of th
Investment Policy; and
The PPMF does not need City Manager or City Treasurer approval to make
permissible investments as detailed in column 8 of Appendix H of this Investment
Policy.
XI INVESTMENT POOLS
There are three (3) types of investment pools:
State-run pools (e.g., LAIF);
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278
Pools that are operated by a political subdivision where allowed by law and the
political subdivision is the trustee (e.g., County Pools); and
Pools that are operated for profit by third parties.
The City Investment Policy permits investment only in pools authorized in Section X.
XII PAYMENT AND CUSTODY
The City shall engage qualified third party custodians to act in a fiduciary capacity to maintain
custodians shall disburse funds, received from the City for a purchase, to the broker, dealer or
seller only after receiving evidence that the City has legal, record ownership of the securities.
Even though ownership is evidenced in book-entry form rather than by actual certificates, this
procedure is commonly accepted as the delivery versus payment (DVP) method for the transfer of
securities.
XIII INTEREST EARNING DISTRIBUTION POLICY
Interest earnings are generated from pooled investments and specific investments. The following
provisions apply to the calculation and distribution of interest earnings.
1. Pooled Investments - It is the general policy of the City to pool all available operating cash
of the City of La Quinta, Successor Agency to the City of La Quinta Redevelopment
Agency, La Quinta Financing Authority, and La Quinta Housing Authority, and to allocate
interest earnings in the following order, as follows:
a. Payment to the General Fund of an amount equal to the total annual bank service
charges as incurred by the general fund for all operating funds as included in the
annual operating budget.
b. Payment to the General Fund of a management fee equal to 5% of the annual
pooled cash fund investment earnings.
c. Payment to each fund of an amount based on the average computed daily cash
balance included in the common portfolio for the earning period.
2. Specific Investments - Specific investments purchased by a fund shall incur all earnings
and expenses to that particular fund.
XIV INTERNAL CONTROLS AND INDEPENDENT AUDITOR
The City Treasurer shall establish a system of internal controls to accomplish the following
objectives:
Safeguard assets;
The orderly and efficient conduct of its business, including adherence to management
policies;
Prevention or detection of errors and fraud;
The accuracy and completeness of accounting records; and
Timely preparation of reliable financial information.
13
279
While no internal control system, however elaborate, can guarantee absolute assurance that the
s assets are safeguards internal control to provide a reasonable
assurance that management of the ins objectives.
The internal controls shall address the following:
Control of collusion. Collusion is a situation where two or more employees are working in
conjunction to defraud their employer.
Separation of transaction authority from accounting and record keeping. By separating the
person who authorizes or performs the transaction from the people who record or
otherwise account for the transaction, a separation of duties is achieved.
Custodial safekeeping. Securities purchased from any bank or dealer including appropriate
collateral (as defined by State Law) shall be placed with an independent third party for
custodial safekeeping.
Avoidance of physical delivery securities. Book entry securities are much easier to
transfer and account for since actual delivery of a document never takes place. Delivered
securities must be properly safeguarded against loss or destruction. The potential for
fraud and loss increases with physically delivered securities.
Clear delegation of authority to subordinate staff members. Subordinate staff members
must have a clear understanding of their authority and responsibilities to avoid improper
actions. Clear delegation of authority also preserves the internal control structure that is
contingent on the various staff positions and their respective responsibilities as outlined in
the Segregation of Major Investment Responsibilities appendices.
Written confirmation or telephone transactions for investments and wire transfers. Due to
the potential for error and improprieties arising from telephone transactions, all telephone
transactions shall be supported by written communications or electronic confirmations and
approved by the appropriate person. Written communications may be via fax if on
letterhead and the safekeeping institution has a list of authorized signatures. Fax
correspondence must be supported by evidence of verbal or written follow-up.
Development of a wire transfer agreement with the Cits bank and third party custodian.
This agreement should outline the various controls, security provisions, and delineate
responsibilities of each party making and receiving wire transfers.
The system of internal controls developed by the City, shall be reviewed annually by the
independent auditor in connection with the annuas Financial Statements. The
letter on internal control over financial reporting and compliance as it
pertains to cash and investments, if any, shall be directed to the City Manager who will direct the
letter, as it pertains, be
completion of each annual audit, the independent auditor shall meet with the Investment Advisory
Board and discuss the auditing procedures performed and the review of internal controls for cash
and investment activities. See Appendix D, Segregation of Major Investment Responsibilities.
XV REPORTING STANDARDS
14
280
The City Treasurer shall submit a monthly Treasurers Report to the City Council and the
Investment Advisory Board that includes all cash and investments under the authority of the
Treasurer. The Treasurers Report shall summarize cash and investment activity and changes in
balances and include the following:
A certification by the City Treasurer;
A listing of purchases and sales/maturities of investments;
Cash and Investments categorized by authorized investments, except for LAIF
which will be provided quarterly and show yield and maturity;
Comparison of month end actual holdings to Investment Policy limitations;
Current year and prior year monthly history of cash and investments for trend
analysis;
Balance Sheet;
Distribution of cash and investment balances by fund;
A year to date historical cash flow analysis and projection for the next six months;
and
A two-year list of historical interest rates.
XVI FINANCIAL ASSETS AND INVESTMENT ACTIVITY NOT SUBJECT TO THIS POLICY
The Investment Policy does not apply to the following:
Cash and Investments raised from Conduit Debt Financing
Funds held in trusost-retirement benefit
programs
Cash and Investments held in lieu of retention by banks or other financial
institutions for construction projects
Short or long term loans made to other entities by the City or Agency
Short term (Due to/from) or long term (Advances from/to) obligations made
either between the City and its funds or between the City and Agency
XVII INVESTMENT OF BOND PROCEEDS
Investment Policy shall govern bond proceeds and bond reserve fund investments.
California Code Section 5922 (d) governs the investment of bond proceeds and reserve funds in
accordance with bond indenture provisions which shall be structured in accordance with the
s Investment Policy.
Arbitrage Requirement - The US Tax Reform Act of 1986 requires the City to perform arbitrage
calculations as required and return excess earnings to the US Treasury from investments of
proceeds of bond issues sold after the effective date of this law. These arbitrage calculations
may be contracted with an outside source to provide the necessary technical assistance to
comply with this regulation. Investable funds subject to the 1986 Tax Reform Act will be kept
segregated from other funds and records will be kept in a fashion to facilitate the calculations.
s investment position relative to the new arbitrage restrictions is to continue pursuing
the maximum yield on applicable investments while ensuring the safety of capital and liquidity. It
is the City's position to continue maximization of yield and to rebate excess earnings, if
necessary.
XVIII INVESTMENT ADVISORY BOARD - CITY OF LA QUINTA
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281
The Investment Advisory Board (IAB) is a standing board composed of five members from the
public that are appointed by the City Council. Background information will be requested and
potential candidates must agree to a background check and verification. On an annual basis, in
conjunction with the Political Reform Act disclosure statutes, or at any time if a change in
circumstances warrants, each board member will provide the City Council with a disclosure
statement which identifies any matters that have a bearing on the appropriateness of that
All board members shall report annually to the City Clerk on
Form 700, Statement of Economic Interests, any activities, interests, or relationships that may be,
or have the appearance of, a conflict of interest.
The IAB must meet at least quarterly, but usually meets monthly, to:
Review at least annually the C
changes;
Review monthly treasury report and note compliance with the Investment Policy and
adequacy of cash and investments for anticipated obligations;
Receive and consider other reports provided by the City Treasurer;
M
procedures, internal controls and findings for cash and investment activities; and
Serve as a resource for the City Treasurer on matters such as proposed investments,
internal controls, use or change of financial institutions, custodians, brokers and dealers.
The IAB will report to the City Council after each meeting either in person or through
correspondence at a regular City Council meeting. See Appendix Investment Advisory Board
Provisions
XIX INVESTMENT POLICY ADOPTION
The Investment Policy will be reviewed annually by the Investment Advisory Board
and the City Treasurer. The Investment Advisory Board will forward the Investment Policy with
any revisions to the City Manager and City Attorney for their review and comment. A joint
meeting will be held with the Investment Advisory Board, City Manager, City Attorney, and City
Treasurer to review the Investment Policy and any comments prior to submission to the City
Council for their consideration. The Investment Policy shall be adopted by resolution of the City
Council annually before the end of June of each year.
16
282
stated and should
state 30%. See Comment A1 above.
-
Was mis
283
Comment \[A7\]:
Rated AAA by 2 of 3 S & P rated AA or S&P rated AA or At least long term
assets>=$500
FDIC Insured
Fidelity Insured
1)
FDIC InsuredsuredFDIC Insured
d process requirements. All maturities
agencies;
1)
-
Appendix A
Quality
it
Yrs.
Unrated
better.
-
better
S&P (A
Cred
FDIC In
>5
-
Non
Current/On Demand Current /on Demand Current/On
On Demand
MaximumMaturity
Current /
10 years
Demand
90 days
yearsyearsyearsyearsyears
5 years3 years3 years3 years3 years
City
3 Years
CITY OF LA QUINTA
55555
tion limits and bi
Sweep Account: U.S. Treasuries and/or GSE's
<= $250,000 including interest per institution<= $250,000 including interest per institution
Yrs.
1 per share par value
$5,000,000 per issuer maximum
$10,000,000 max per issuer
5
$5,000,000 max per issuer
Requires Approved RFP
-
0,000,000 per bank
,0000,000 maturing 3
<=^$30,000,0000
Restrictions
per account
0,000,000
City
The City Treasurer will be permitted to invest in the following types of investments subject to the maximum percentage alloca
5
$
Maintain $
4
$
30
<=$
State Maximum
Surplus 100% Portfolio100% Portfolio100% Portfolio100% Portfolio100% Portfolio100% Portfolio100% Portfolio
25% Portfolio30% Portfolio20% Portfolio30% Portfolio30% Portfolio
Allocation
270 Days
Funds
%
30
00
1
SUMMARY OF PERMISSIBLE DEPOSITS AND INVESTMENTS
(Footnote 85% Portfolio 60% Portfolio 60% Portfolio 30% Portfolioio 15% Portfolio 20% Portfolio 10% Portfolio 20% Portfolio 10% Portfolio
Allocation
100% Portfol
$20,000,000$25,000,000$30,000,000$20,000,00000
Maximum
$50,000,0
City
100%
1)
ed collateralized
Money market mutual funds regulated by the SEC that consist only of
must be less than or equal to the maximum maturity allowed.
US Treasury Securities or GSE's and maintain a par value of $1 per
Prime Commercial Paper including Temporary Liquidity Guarantee
dity Guarantee Program (TLGP)
17
Securities (except collateralized mortgage obligations (CMO's) or
Checking & Savings Accounts (FDIC Insured) & Sweep Accounts
U.S. Treasury Bills, Notes and Bonds, and Government National
U.S. Government Agency Securities and Federal Government
Permissible Deposits and Investments
structured notes which contain embedded rate options):
non FDIC insur
LMC)
Federal Home Loan Bank Notes & Bonds (FHLB)
cal Agency Bonds/California Agency Obligations
Federal National Mortgage Association (FNMA)
Federal Home Loan Mortgage Corporation (FH
Mortgage Association (GNMA) securities
Local Agency Investment Fund (LAIF)
Interest bearing active bank deposits
Federal Farm Credit Bank (FFCB)
Temporary Liqui
Professionally Managed Account
Negotiable Certificate of Deposit
by 110% of eligible securities
Certificate of Deposit
-
Corporate Notes
Program (TLGP)
Corporate Notes
share
Lo
----
Process
Bid
1222333456678
No such document exists
284
Comment \[A8\]:
urer will not be permitted to invest in the following types of investments (see Footnote Only all cash and investments, including bond proceeds. In addition, the State has adopted limits
on the
Appendix A (continued)
inclusive.
-
The above list of unauthorized deposits and investments is not meant to be all
unds other than money market mutual funds
Unauthorized Investments
Reverse Repurchase Agreements
Preferred and Common Stock
the Policy are permissible.
Repurchase Agreements
Asset Backed Securities
Bankers Acceptances
Indebtedness
The City Treas
Derivatives
Mutual F
, Mutual
State
--------
The City may engage the services of a professional portfolio management firm which may invest in Bankers Acceptances
investments are
y four (4) years or sooner if considered necessary for banking and/or custodian services. Since banking services and custodian services are so closely related it is anticipated that
the bid The financial institutions can be either state or federally chartered and must be insured by the Federal Deposit 1 listed on Money Market mutual funds must comply with Government
Code Section 53601(k). The fund must be registered by 1 listed on The professional portfolio management firm (PPMF) will be approved by the City Council based upon the City s recommendation
pursuant to completion of a request for proposal (RFP) as outlined in the appendices. econdary issues follow bid process
--
The City has imposed a maximum limitation based upon the total portfolio of investments. Total portfolio
At least two bids from broker/dealers that qualify under Securities and Exchange Commission Rule 15C3fy under Securities and Exchange Commission Rule 15C3
erwriter, s
City Council Approval.
rom Bond Und
the SEC and must include marking the portfolio to market daily.
18
Initial offerings the Treasurer may purchase directly f
nd
process would include the scope of both services.
a
Periodically conduct a bid process at least ever
Completion of Investment Pool Questionnaire
At least two bids from broker/dealers that quali
rporation (FDIC).
ds.
investment of surplus fun
See also Footnote 2.
Insurance Co
Policy.
3.
Process
otnote 1Footnote 2
Bid
1234567 8
Fo
Appendix B
City of La Quinta Municipal Code
Chapter 2.70
INVESTMENT ADVISORY BOARD PROVISIONS
Sections:
2.70.010 General Rules Regarding Appointment.
2.70.020 Board meetings.
2.70.030 Board functions.
2.70.010 General rules regarding appointment
A. Except as set out below, see Chapter 2.06 for General Provisions.
B. The Investment Advisory Board (board) is a standing board composed of five (5)
members from the public that are appointed by city council.
C. Applicants for the board should have a background in finance, preferably with knowledge
and/or experience in markets, controls and accounting for securities. Background information will
be requested and potential candidates must agree to a background check and verification.
D. On an annual basis, in conjunction with the Political Reform Act disclosure statutes, or at
any time if a change in circumstances warrants, each board member will provide the City Council
with a disclosure statement which identifies any matters that have a bearing on the
limited to, changes in employment, changes in residence, or changes in clients.
E. To promote continuity, the expiration of the terms of the members of the board shall be
staggered. The term of service is three years, with one or two terms expiring each year.
2.70.020 Board meetings.
The Board usually will meet monthly, but this schedule may be extended to quarterly
meetings upon the concurrence of the Board and the City Council. The specific meeting dates will
be determined by the Board Members and meetings may be called for on an as needed basis.
2.70.030 Board functions.
A. The principal functions of the Board are: (1) review at least annually the Cits Investment
Policy and recommend appropriate changes; (2) review monthly Treasury Report 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 s financial statements, and
s comments on auditing procedures, internal controls, and findings
for cash and investment activities, and; (5) serve as a resource for the City Treasurer on matters
such as proposed investments, internal controls, use or change of financial institutions, custodians,
brokers and dealers.
B. The Board will report to the City Council after each meeting either in person or through
correspondence at a regular City Council meeting.
19
285
Appendix C
City of La Quinta Municipal Code
Chapter 3.08
INVESTMENT OF MONEYS AND FUNDS
Sections:
3.08.010 Investment of city moneys and deposit of securities.
3.08.020 Authorized investments.
3.08.030 Sales of securities.
3.08.040 City bonds.
3.08.050 Reports.
3.08.060 Deposits of securities.
3.08.070 Trust fund administration.
3.08.010 Investment of city moneys and deposit of securities.
Pursuant to, and in accordance with, and to the extent allowed by, Sections
53607 and 53608 of the Government Code, the authority to invest and reinvest
moneys of the city, to sell or exchange securities, and to deposit them and provide for
their safekeeping, is delegated to the city treasurer. (Ord. 2 1 (part), 1982)
£
3.08.020 Authorized investments.
Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is
authorized to purchase, at their original sale or after they have been issued, securities
which are permissible investments under any provision of state law relating to the
investing of general city funds, including but not limited to Sections 53601 and 53635 of
the Government Code, as said sections now read or may hereafter be amended, from
moneys in his custody which are not required for the immediate necessities of the city
and as he may deem wise and expedient, and to sell or exchange for other eligible
securities and reinvest the proceeds of the securities so purchased. (Ord. 2 1 (part),
£
1982)
3.08.030 Sales of Securities.
From time to time the city treasurer shall sell the securities in which city moneys have
been invested pursuant to this chapter, so that the proceeds may, as appropriate, be
applied to the purchase for which the original purchase money may have been designated
or placed in the city treasury. (Ord.2 l (part),
£
3.08.040 City bonds.
Bonds issued by the city and purchased pursuant to this chapter may be cancelled
either in satisfaction of sinking fund obligations or otherwise if proper and appropriate;
provided, however, that the bonds may be held uncancelled and while so held may be
resold. (Ord. 2 1 (part), 1982)
£
3.08.050 Reports.
20
286
The city treasurer shall make a monthly report to the city council of all investments
madepursuant to the authority delegated in this chapter. (Ord. 2 1 (part), 1982)
£
3.08.060 Deposits of securities.
Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is
authorized to deposit for safekeeping, the securities in which city moneys have been
invested pursuant to this chapter, in any institution or depository authorized by the terms
of any state law, including but not limited to Section 53608 of the Government Code as
it now reads or may hereafter be amended. In accordance with said section, the city
treasurer shall take from the institution or depository a receipt for the securities so
deposited and shall not be responsible for the securities delivered to and receipted for by
the institution or depository until they are withdrawn therefrom by the city treasurer.
(Ord. 2 1 (part), 1982
£
3.08.070 Trust fund administration.
Any departmental trust fund established by the city council pursuant to Section
36523 of the Government Code shall be administered by the city treasurer in accordance
with Section 36523 and 26524 of the Government code and any other applicable
provisions of law. (Ord. 2 1 (part), 1982)
£
21
287
Appendix D
SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES
Function Responsible Parties
Develop and Recommend Modifications Investment Advisory Board
to Citys Formal Investment Policy and City Treasurer
Review Citys Investment Policy City Manager
and Recommend City Council Action and City Attorney
Adopt Formal Investment Policy City Council
Implement Formal Investment Policy City Treasurer
Review Financial Institutions & Select Investments City Treasurer
Acknowledge Investment Selections City Manager or his/her
designee
Execute Investment transactions City Treasurer or City Manager
Confirm Wires (if applicable) Accounting Manager or
Financial Services Assistant
Record Investment Ts Accounting Manager or
Accounting Records Financial Services Assistant
Investment Verification (match broker confirmation City Treasurer and Financial
to City investment records) Services Assistant
Reconcile Investment Records
to Accounting Records and Bank Statements Financial Services Assistant
Reconcile Investment Records
to Treasurers Report of Investments Accounting Manager
Security of Investments at City Accounting Manager or Senior
Secretary
Security of Investments outside City Third Party Custodian
Review Internal Control Procedures External Auditor
22
288
Appendix E
LISTING OF APPROVED FINANCIAL INSTITUTIONS
1. Banking Services - Wells Fargo Bank, Government Services,
Los Angeles, CA (Banking Services)
Rabobank N.A., Government Banking
Group, Roseville, CA (Collateralized Bank
Deposits)
2. Custodian Services - Bank of New York/Mellon
3. Deferred Compensation - International City/County Management
Association Retirement Corporation
4. Broker/Dealer Services - Banc of America Securities/Merrill Lynch
Morgan Stanley
CitiGroup
First Empire Securities
5. Government Pool - State of California Local Agency
Investment Fund
6. Bond Trustees - 1996 Lease Revenue Bonds US Bank
1998 RDA Project Area 1&2 US Bank
2001 RDA Project Area 1 US Bank
2002 RDA Project Area 1 US Bank
2003 RDA Project Area 1 US Bank
2004 Local Agency Rev US Bank
2011 RDA Project Area 2 US Bank
2011 Fin Auth Housing 1&2 US Bank
2013 Successor Agency US Bank
Assessment Districts US Bank
No Changes to this listing may be made without City Council approval
23
289
24
290
Appendix F
BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION
1. Name of Firm:________________________________________________________________________
2. Address:___________________________________________________________________________
3. Telephone: (___) ________________ (___ )____________________________________________
4. Broker's Representative to the City (attach resume):
Name:_____________________________________________________________________________
Title:_______________________________________________________________________________
Telephone: (___)____________________________________________________________________
5. Manager/Partner-in-charge (attach resume):
Name:_____________________________________________________________________________
Title:_______________________________________________________________________________
Telephone:_________________________________________________________________________
6. List all personnel who will be trading with or quoting securities to City employees (attach
resume)
Name:____________________________________________________________________________
Title:______________________________________________________________________________
Telephone: (___)__________________ (___)______________________________________________
7. Which of the above personnel have read the City's Investment Policy?
____________________________________________________________________________________
8. Which instruments are offered regularly by your local office? (Must equal 100%)
_____% U.S. Treasuries _____% Repos
_____% BA's _____% Reverse Repos
_____% Commercial Paper s
s _____% Derivatives
_____% Mutual Funds _____% Stocks/Equities
_____% Agencies (specify): _____% Other (specify):
_____________________________ __________________________
_____________________________ __________________________
_____________________________ __________________________
_____________________________ __________________________
9. References -- Please identify your most directly comparable public sector clients in our
geographical area.
Entity Entity
______________________________________________
25
291
Contact Contact
__________________________________________
Telephone Telephone
(____)____________ (___)_____________
Client Since Client Since
_____________________________________
10. Have any of your clients ever sustained a loss on a securities transaction arising from a
misunderstanding or misrepresentation of the risk characteristics of the instrument? If so,
explain.
___________________________________________________________________________________
____________________________________________________________________________________
___________________________________________________________________________________
____________________________________________________________________________________
11. Has your firm or your local office ever been subject to a regulatory or state/ federal
agency investigation for alleged improper, fraudulent, disreputable or unfair activities
related to the sale of securities? Have any of your employees been so investigated? If
so, explain.
__________________________________________________________________________________
___________________________________________________________________________________
____________________________________________________________________________________
___________________________________________________________________________________
12. Has a client ever claimed in writing that you were responsible for an investment loss?
Yes_________ No_________ If yes, please provide action taken________________________
___________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
Has a client ever claimed in writing that your firm was responsible for an investment
loss? Yes_________ No_________ If yes, please provide action taken_________________
____________________________________________________________________________________
___________________________________________________________________________________
____________________________________________________________________________________
Do you have any current or pending complaints that are unreported to FINRA?
Yes_________ No_________ If yes, please provide action taken__________________________
___________________________________________________________________________________
___________________________________________________________________________________
Does your firm have any current, or pending complaints that are unreported to FINRA?
Yes_________ No_________ If yes, please provide action taken___________________________
___________________________________________________________________________________
____________________________________________________________________________________
13. Explain your clearing and safekeeping procedures, custody and delivery process.
____________________________________________________________________________________
_____________________________________________________________________________________
Who audits these fiduciary responsibilities?____________________________________________
26
292
Latest Audit Report Date_____________________________________________________________
14. How many and what percentage of your transactions failed?
Last month? _______% $__________
Last year? _______% $__________
15. Describe the method your firm would use to establish capital trading limits for the City of
La Quinta.__________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
16. Is your firm a member in the S.I.P.C. insurance program? Yes_______ No_______
If yes, explain primary and excess coverage and carriers.________________________________
___________________________________________________________________________________
____________________________________________________________________________________
17. What portfolio information, if any, do you require from your clients?_____________________
____________________________________________________________________________________
____________________________________________________________________________________
___________________________________________________________________________________
18. What reports and transaction confirmations or any other research publications will the City
receive?____________________________________________________________________________
____________________________________________________________________________________
19. Does your firm offer investment training to your clients? Yes_______ No________
20. Does your firm have professional liability insurance? Yes_________ No_________
If yes, please provide the insurance carrier, limits and expiration date.__________________
___________________________________________________________________________________
____________________________________________________________________________________
21. Please list your FINRA/NASD Registration Number______________________________________
22. Do you have any relatives who work at the City of La Quinta?
Yes______ No_______ If yes, Name and Department____________________________________
23. Do you maintain an office in California? Yes_______ No_________
24. Do you maintain an office in La Quinta or Riverside County? Yes_______ No_________
25. Please enclose the following:
Latest audited financial statements;
Samples of reports, transaction confirmations and any other research/publications the
City will receive;
Samples of research reports and/or publications that your firm regularly provides to
clients; and
Complete schedule of fees and charges for various transactions.
27
293
***CERTIFICATION***
I hereby certify that I have personally read the Statement of Investment Policy of the City of La
Quinta, and have implemented reasonable procedures and a system of controls designed to
preclude imprudent investment activities arising out of transactions conducted between our firm
and the City of La Quinta. All sales personnel will bs investment
objectives, horizons, outlooks, strategies and risk constraints whenever we are so advised by the
City. We pledge to exercise due diligence in informing the City of La Quinta of all foreseeable
risks associated with financial transactions conducted with our firm.
By signing this document the City of La Quinta is authorized to conduct any and all background
checks.
Under penalties of perjury, the responses to this questionnaire are true and accurate to the best of
my knowledge.
Broker Representative____________________________________________________________________
Date______________________________ Title__________________________________________________
Sales Manager and/or Managing Partner*__________________________________________________
Date_______________________________ Title_________________________________________________
28
294
Appendix G
Request for Proposals
Professional Portfolio Management Firm
City of La Quinta, CA
The City of La Quinta, CA is soliciting Requests for Proposals (RFP) from interested firms for the
provision of a discretionary investment management services for City of La Quinta, CA. The
portfolio to be managed of the invested assets is will be appr
investment portfolio and will be invested between 0 3 years.
tate statutes and
your information.
Questions regarding this RFP should be directed to:
Name: Robbeyn Bird Rita Conrad
Title: Finance Director/Treasurer
City of: La Quinta, CA
Address: 78-495 Calle Tampico
City, State, Zip Code: La Quinta, CA 92253
Phone Number: (760)777-7150
I. CRITERIA FOR EVALUATION AND SELECTION
Experience of the firm in providing services to public sector entities of similar size
and with similar investment objectives;
Professional experience and qualifications of the individuals assigned to the
account;
Portfolio management resources, investment philosophy and approach;
Responsiveness to the RFP, communicating an understanding of the overall
program and services required;
Reporting capabilities;
Fees.
II. SELECTION TIMETABLE
A. \[Month, Day and Year\] Proposals due by \[Time\] PST.
B. \[Month, Day and Year\] Proposals evaluated: to be determined
C. \[Month, Day and Year\] \[City of La Quinta, CA\] \[Board/Council\] approves selection
and awards contract.
III. FORMAT FOR PROPOSALS
Please format your response to this RFP in the following manner:
A. Organization
29
295
1. Describe your organization, date founded, ownership and other business
affiliations. Provide number and location of affiliated offices. Specify the number
of years your organization has provided investment management service.
2.
rese
3. Within the past three years, have there been any significant developments in your
organization (e.g., changes in ownership, new business ventures)? Do you expect
any changes in the near future?
4. Describe any U.S. Securities and Exchange Commission (SEC) censures or litigation
involving your organization, any officer, or employee at any time in the last ten
years.
5. nce
coverage. Include dollar amount of coverage.
B. Personnel
1. Identify the number of professionals employed by your firm by classification.
2. Provide an organization chart showing function, positions, and titles of all the
professionals in your organization.
3. Provide biographical information on investment professionals that will be involved
in the decision-making process for our portfolio, including number of years at your
firm. Identify the person who will be the primary portfolio manager assigned to the
account.
4.
address any incentive compensation programs.
C. Assets Under Management
1.Summarize your institutional investment management asset totals by category for
your latest reporting period in the following table:
Nsgdq Qdrsqhbshud
Mtladq Mtladq ne
Etmcr
Nodq`shmf Etmcr
ne Bkhdmsr Bkhdmsr
Governmental _________ $_______________ _________ $_______________
Governmental Pension _________ $_______________ N/A N/A
Non Governmental
_________ $_______________ N/A N/A
Pension
30
296
Corporate _________ $_______________ N/A N/A
High Net Worth Client_________$_______________N/AN/A
Endowmental/Foun-
_________ $_______________ N/A N/A
dation
2.Provide the number of separate accounts whose portfolios consist of operating
funds.
3.List in the following table the percentage by market value of aggregate assets
under all governmental accounts under management for your latest reporting
period:
Percent by Market
Type of Asset
Value
U.S. Treasury securities
Federal Agency obligations
Corporate securities rated AAA-AA
Corporate securities rated A
Corporate securities rated BBB or
lower
Other
(specify_______________________)
4.Describe the procedures that your firm has in place to address the potential or
actual credit downgrade of an issuer and to disclose and advise a client of the
situation.
5. Provide data on account/asset growth over the past five years. Indicate the
number of government accounts gained and the number of government accounts
lost.
6. List your five governmental largest clients. Identify those that are exclusively
operating fund relationships and/or those that are other relationships (e.g., bond
fund, retirement fund).
7. Form ADV, Parts I and II (including all schedules).
8. Provide proof of State of California Registration, if your firm is not eligible for SEC
registration.
9. Provide a sample contract for services.
31
297
D. Philosophy/Approach
1.
philosophy regarding average duration, maturity, investment types, credit quality,
and yield.
2. Describe in detail your investment process, as you would apply it to City of La
olio.
3. What are the primary strategies for adding value to portfolios?
4. Describe the process you would recommend for establishing the investment
objectives and constraints for this account.
5. Describe in detail your process of credit risk management, including how you
analyze credit quality, monitor credits on an ongoing basis, and report credit to
governmental accounts.
6.
7. -making process in terms of structure, committees,
membership, meeting frequency, responsibilities, integration of research ideas, and
portfolio management.
8. Describe your research capabilities as they would pertain to governmental
accounts. What types of analysis do you use?
9. proach to managing relationships with the broker-dealer
community.
E. Portfolio Management
1. Are portfolios managed by teams or by one individual?
2. What is the average number of accounts handled per manager?
3. Which professional staff member will be the primary client contact for City of La
Quinta, CA?
4. How frequently are you willing to meet with us?
5.Describe procedures used to ensure that portfolios comply with client investment
objectives, policies, and bond resolutions.
F.Fees Charged
1.Please i
2.Identify any expenses that would not be covered through this fee structure and
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298
3.Is there a minimum annual fee?
G. Performance Reporting
1.Please report on all accounts under $100 million.
2.Please provide performance history for governmental accounts for the last five
years.
3.Please provide risk measurements for governmental accounts for the last five
years.
4. Indicate whether your returns are calculated and compiled in accordance with
the Association for Investment Management and Research (AIMR/CFA Institute)
standards.
5. Do your reports conform to the State of California reporting standards? Are you
willing to customize your reports to meet our specifications?
6. How will you notify us of investment transactions?
7. Are confirmations of investment transactions sent directly by the broker/dealer to
the client?
8. Do your reports include rating information on investments which is required by
GASB 40?
H.References
Provide a list of at least five (5) client references in California. References should be
public agencies with portfolio size and investment objectives similar to City of La Quinta,
CA. Include length of time managing the assets, contact name, and phone number.
I.Insurance Requirements
Exhibit A defines the insurance requirements that will need to be met prior to the
J.Submittal of proposals
1.Seven (7) copies of the proposal shall be submitted in a sealed envelope bearing
the caption RFP for (City of La Quinta, CA) and addressed to:
City of La Quinta, CA
78-495 Calle Tampico
La Quinta, CA 92253
Attention: Rita ConradRobbeyn Bird, Finance Director/Treasurer
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299
2.Proposal must be received no later than \[Time\] PST on \[Month, Day, and Year\].
3.Proposals should be verified before submission. The City of La Quinta, CA shall
not be responsible for errors or omissions on the part of the respondent in
preparation of a proposal. The City of La Quinta, CA reserves the right to reject
any and all proposals, to wave any irregularities, or informalities in the
proposals, and to negotiate modifications to any proposal.
Enclosures: Investment Policy
Treasurers Report
34
300
301
Appendix H
Portfolio
ment Firm
e
Allowed per
not need City Manager or City Treasurer approval to make permissibl
Professional
YessYesYesYesYesYesYesYesYesYesYesYes
(8)
NoNoNoNoNoNoNoNo
Ye
Manage
Allowed perCity Policy
Yes
YesYesYesYesYesYesYesYesYesYes
(7)
NoNoNoNoNoNoNoNoNoNo
Collateralized 110%
Comments
(6)
.
rting Practices CA Debt and Investment Advisory Commission
- 1
1 / F
MultipleMultipleMultiple
Credit
Rating
Limits
NoneNoneNoneNoneNoneNoneNoneNoneNone NoneNoneNoneNoneNoneNone
(5)
AA
does
-
A
1 / P
and
-
A
policy
Professional Portfolio Management Firm
portfolio 0% of the base value of the portfolio
buy and hold
Authorized Investment
of Portfolio)
the base value of the
25% of portfolio
NoneNoneNoneNoneNoneNoneNoneNoneNoneNoneNoneNone
(4)
40%30%20%20%30%20%
Limits (%
is not required to adhere to the
20% of
2
Investment: Investment Portfolio Repo
Maturity 180 Days 270 Days
Maximum
92 Days92 Days
5 Years5 Years5 Years5 Years5 Years5 Years5 Years5 Years5 Years5 Years
1 Year
NoneNoneNoneNoneNoneNone
(3)
35
Firm (PPMF)
Reverse Repurchase Agreements
s)
Securities Lending Agreements
Interest bearing active deposits
Obligations
cal Agency Obligations
Collateralized Bank Deposits
Money Market Mutual Funds
County Pooled Investments
negotiable CD
Repurchase Agreements
Asset Backed Securities
investments as detailed in column (8).
Investment Category
Bankers AcceptancesCash and Equivalents
Local Agency BondsMedium Term Notes
Commercial Paper
s
Time Deposits
Treasuries
Permissible Investment Chart
ment
Mutual Funds
US Agencies
Negotiable CD
of California
LAIF
(2)
anage
-
(including non
-
US
Source of Columns (1) through (5)
Professional Portfolio m
CA Lo
State
City of La Quinta
53601(g), 53635
Government
Code Section
53601(m)
California
53601(a)53601(c)53601(d)53601(h)53601(k)53601(n)53601(b)53601(e)53601(k)
53601(f)deposits and
53601(i)53601(i)53601(i)
16429.1
5368453632
Note: The
(1)
Appendix I
Investment Management Process and Risk
Except as provided for in Section 27000.3, Government Code Section 53600.3 declares as a trustee
each person, treasurer, or governing body authorized to make investment decisions on behalf of local
agencies. As trustees are subject to the prudent investor standard. These persons shall act with care,
skill, prudence, and diligence under the circumstances then prevailing when investing, reinvesting,
purchasing, acquiring, exchanging, selling, and managing funds. Section 53600.5 further stipulates
that the primary objective of any person investing public funds is to safeguard principal; secondly, to
meet liquidity needs of the depositor; and lastly, to achieve a return or yield on invested funds
(Government Code Section 27000.5 specifies the same objectives for county treasurers and board of
supervisors).
Risk is inherent throughout the investment process. There is investment risk associated with any
investment activity and opportunity risk related to inactivity. Market risk is derived from exposure to
overall changes in the general level of interest rates while credit risk is the risk of loss due to the failure
of the insurer of a security. The market value of a security varies inversely with the level of interest
rates. If an investor is required to sell an investment with a five percent yield in a comparable seven
percent rate environment, that security will be sold at a loss. The magnitude of that loss will depend on
the amount of time until maturity.
Purchasing certain allowable securities with a maturity of greater than five years requires approval of
the governing board (see Government Code Section 53601). Part of that approval process involves
assessing and disclosing the risk and possible volatility of longer-term investments
Another element of market risk is liquidity risk. Instruments with unique call features or special
structures, or those issued by little known companies, are examples often
thinly traded. Their uniqueness often makes finding prospective buyers in a secondary market more
difficult and, consequently, the securities' marketability and price are discounted. However, under
certain market conditions, gains are also possible with these types of securities.
Default risk represents the possibility that the borrower may be unable to repay the obligation as
scheduled. Generally, securities issued by the federal government and its agencies are considered the
most secure, while securities issued by private corporations or negotiable certificates of deposit issued
by commercial banks have a greater degree of risk. Securities with additional credit enhancements,
such as bankers acceptances, collateralized repurchase agreements and collateralized bank deposits are
somewhere between the two on the risk spectrum.
The vast majority of portfolios are managed within a buy and hold policy. Investments are purchased
with the intent and capacity to hold that security until maturity. At times, market forces or operations
may dictate swapping one security for another or selling a security before maturity. Continuous analysis
and fine tuning of the investment portfolio are considered prudent investment management.
The Government Code contains specific provisions regarding the types of investments and practices
permitted after considering the broad requirement of preserving principal and maintaining liquidity before
seeking yield. These provisions are intended to promote the use of reliable, diverse, and safe investment
instruments to better ensure a prudently managed portfolio worthy of public trust.
Chapter II. Fund Management
Local Agency Investment Guidelines 2010 Issued by California Debt and Investment Advisory Commission
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Appendix J
GLOSSARY
(Adopted from the Municipal Treasurers Association)
The purpose of this glossary is to provide the reader of the City of La Quinta investment
policies with a better understanding of financial terms used in municipal investing.
AGENCIES: Federal agency securities and/or introductory material, and a detailed Statistical
Government-sponsored enterprises. Section.
ASKED: The price at which securities are offered. CONDUIT FINANCING: A form of Financing in
which a government or a government agency
BANKER ACCEPTANCE (BA): A draft or bill or lends its name to a bond issue, although it is
exchange accepted by a bank or trust company. acting only as a conduit between a specific project
The accepting institution guarantees payment of and bond holders. The bond holders can look only
the bill, as well as the issuer. to the revenues from the project being financed
for repayment and not to the government or
BID: The price offered by a buyer of securities. agency whose name appears on the bond.
(When you are selling securities, you ask for a
bid.) See Offer. COUPON: (a) The annual rate of interest that a
bons issuer promises to pay the bondholder on
BROKER: A broker brings buyers and sellers the bons face value. (b) A certificate attached
together for a commission. to a bond evidencing interest due on a payment
date.
CERTIFICATE OF DEPOSIT (CD): A time deposit
with a specific maturity evidenced by a DEALER: A dealer, as opposed to a broker, acts as
certificate. Large-denomination Cs are typically a principal in all transactions, buying and selling
negotiable. for his own account.
COLLATERAL: Securities, evidence of deposit or DEBENTURE: A bond secured only by the general
other property which a borrower pledges to credit of the issuer.
secure repayment of a loan. Also refers to
securities pledged by a bank to secure deposits of DELIVERY VERSUS PAYMENT: There are two
public monies. methods of delivery of securities: delivery versus
payment and delivery versus receipt. Delivery
COMMERCIAL PAPER: Short-term unsecured versus payment is delivery of securities with an
promissory notes issued by a corporation to raise exchange of money for the securities. Delivery
working capital. These negotiable instruments versus receipt is delivery of securities with an
are purchased at a discount to par value or at par exchange of a signed receipt for the securities.
value with interest bearing. Commercial paper is
issued by corporations such as General Motors DERIVATIVES: (1) Financial instruments whose
Acceptance Corporation, IBM, Bank America, etc. return profile is linked to, or derived from, the
movement of one or more underlying index or
COMPREHENSIVE ANNUAL FINANCIAL REPORT security, and may include a leveraging factor, or
(CAFR): The official annual report for the City of (2) financial contracts based upon notional
La Quinta. It includes five combined statements amounts whose value is derived from an
for each individual fund and account group underlying index or security (interest rates, foreign
prepared in conformity with GAAP. It also exchange rates, equities or commodities).
includes supporting schedules necessary to
demonstrate compliance with finance-related DISCOUNT: The difference between the cost price
legal and contractual provisions, extensive of a security and its maturity when quoted at
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lower than face value. A security selling below 3. FLBs (Federal Land Bank Bonds) - Long-term
original offering price shortly after sale also is mortgage credit provided to farmers by Federal
considered to be at a discount. Land Banks. These bonds are issued at
irregular times for various maturities ranging
DISCOUNT SECURITIES: Non-interest bearing from a few months to ten years. The
money market instruments that are issued a minimum denomination is $1,000. They carry
discount and redeemed at maturity for full face semi-annual coupons. Interest is calculated on
value, e.g., U.S. Treasury Bills. a 360-day, 30 day month basis.
DIVERSIFICATION: Dividing investment funds 4. FFCBs (Federal Farm Credit Bank) - Debt
among a variety of securities offering instruments used to finance the short and
independent returns. intermediate term needs of farmers and the
national agricultural industry. They are issued
FEDERAL CREDIT AGENCIES: Agencies of the monthly with three- and six-month maturities.
Federal government set up to supply credit to The FFCB issues larger issues (one to ten
various classes of institutions and individuals, year) on a periodic basis. These issues are
highly liquid.
farmers, farm cooperatives, and exporters.
5. FICBs (Federal Intermediate Credit Bank
1. FNMAs (Federal National Mortgage Debentures) - Loans to lending institutions
Association) - Like GNMA was chartered used to finance the short-term and
under the Federal National Mortgage intermediate needs of farmers, such as
Association Act in 1938. FNMA is a federal seasonal production. They are usually issued
corporation working under the auspices of the monthly in minimum denominations of $3,000
Department of Housing and Urban with a nine-month maturity. Interest is
Development (HUD). It is the largest single payable at maturity and is calculated on a 360-
provider of residential mortgage funds in the day, 30-day month basis.
United States. Fannie Mae, as the corporation
is called, is a private stockholder-owned 6. FHLMCs (Federal Home Loan Mortgage
Corporation) -a government sponsored entity
include a variety of adjustable mortgages and established in 1970 to provide a secondary
second loans, in addition to fixed-rate market for conventional home mortgages.
urities are also highly Mortgages are purchased solely from the
liquid and are widely accepted. FNMA Federal Home Loan Bank System member
assumes and guarantees that all security lending institutions whose deposits are insured
holders will receive timely payment of by agencies of the United States Government.
principal and interest. They are issued for various maturities and in
minimum denominations of $10,000. Principal
2. FHLBs (Federal Home Loan Bank Notes and and interest is paid monthly. Other federal
Bonds) - Issued by the Federal Home Loan agency issues are Small Business
Bank System to help finance the housing Administration notes (SBAs), Government
industry. The notes and bonds provide National Mortgage Association notes
liquidity and home mortgage credit to savings (GNMAs), Tennessee Valley Authority notes
and loan associations, mutual savings banks, (TVAs), and Student Loan Association notes
cooperative banks, insurance companies, and (SALLIE-MAEs).
mortgage-lending institutions. They are
issued irregularly for various maturities. The FEDERAL DEPOSIT INSURANCE CORPORATION
minimum denomination is $5,000. The notes (FDIC): A federal agency that insures bank
are issued with maturities of less than one deposits, currently up to $250,000 per deposit
year and interest is paid at maturity. through December 31, 2013.
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304
FEDERAL FUNDS RATE: The rate of interest at $50,000,000 for any agency. The City is
which Fed funds are traded. This rate is currently restricted to a maximum of ten transactions per
pegged by the Federal Reserve through open-month. It offers high liquidity because deposits
market operations. can be converted to cash in 24 hours and no
interest is lost. All interest is distributed to those
FEDERAL HOME LOAN BANKS (FHLB): agencies participating on a proportionate share
Government sponsored wholesale banks basis determined by the amounts deposited and
(currently 12 regional banks) which lend funds the length of time they are deposited. Interest is
and provide correspondent banking services to paid quarterly. The State retains an amount for
member commercial banks, thrift institutions, reasonable costs of making the investments, not
credit unions and insurance companies. The to exceed one-half of one percent of the earnings.
mission of the FHLBs is to liquefy the housing
related assets of its members who must purchase LIQUIDITY: A liquid asset is one that can be
stock in their district Bank. converted easily and rapidly into cash without a
substantial loss of value. In the money market, a
FEDERAL OPEN MARKET COMMITTEE (FOMC): security is said to be liquid if the spread between
Consists of seven members of the Federal bid and asked prices is narrow and reasonable size
Reserve Board and five of the twelve Federal can be done at those quotes.
Reserve Bank Presidents. The President of the
New York Federal Reserve Bank is a permanent LOCAL GOVERNMENT INVESTMENT POOL (LGIP):
member, while the other Presidents serve on a The aggregate of all funds from political
rotating basis. The Committee periodically meets subdivisions that are placed in the custody of the
to set Federal Reserve guidelines regarding State Treasurer for investment and reinvestment
purchases and sales of Government Securities in
the open market as a means of influencing the MARKET VALUE: The price at which a security is
volume of bank credit and money. trading and could presumably be purchased or
sold.
FEDERAL RESERVE SYSTEM: The central bank of
the United States created by Congress and MASTER REPURCHASE AGREEMENT: A written
consisting of a seven member Board of Governors contract covering all future transactions between
in Washington, D.C., 12 regional banks and about the parties to repurchase--reverse repurchase
5,700 commercial banks that are members of the
system. the transactions. A master agreement will often
specify, among other things, the right of the
GOVERNMENT NATIONAL MORTGAGE buyer-lender to liquidate the underlying securities
ASSOCIATION (GNMA or Ginnie Mae): Securities in the event of default by the seller-borrower.
influencing the volume of bank credit guaranteed
by GNMA and issued by mortgage bankers, MATURITY: The date upon which the principal or
commercial banks, savings and loan associations, stated value of an investment becomes due and
and other institutions. Security holder is payable
protected by full faith and credit of the U.S.
Government. Ginnie Mae securities are backed MONEY MARKET: The market in which short-term
by the FHA, VA or FMHM mortgages. The term debt instruments (bills, commercial paper,
pass-throughsbankers
Maes.
OFFER: The price asked by a seller of securities.
LAIF (Local Agency Investment Fund) - A special (When you are buying securities, you ask for an
fund in the State Treasury which local agencies offer.) See Asked and Bid.
may use to deposit funds for investment. There
is no minimum investment period and the OPEN MARKET OPERATIONS: Purchases and
minimum transaction is $5,000, in multiples of sales of government and certain other securities in
$1,000 above that, with a maximum balance of the open market by the New York Federal Reserve
39
305
Bank as directed by the FOMC in order to repurchase them at a fixed price on a fixed date.
influence the volume of money and credit in the The buy in effect lends sell
economy. Purchases inject reserves into the money for the period of the agreement, and the
bank system and stimulate growth of money and terms of the agreement are structured to
credit; sales have the opposite effect. Open compensate him for this. Dealers use RRP
extensively to finance their positions. Exception:
important and most flexible monetary policy tool. When the Fed is said to be doing RRP, it is lending
money that is increasing bank reserves.
PORTFOLIO: Collection of all cash and securities
under the direction of the City Treasurer, SAFEKEEPING: A service to customers rendered
including Bond Proceeds. by banks for a fee whereby securities and
valuables of all types and descriptions are held in
PRIMARY DEALER: A group of government the bank's vaults for protection.
securities dealers who submit daily reports of
market activity and positions and monthly SECONDARY MARKET: A market made for the
financial statements to the Federal Reserve Bank purchase and sale of outstanding issues following
of New York and are subject to its informal the initial distribution.
oversight. Primary dealers include Securities and
Exchange Commission (SEC)-registered securities SECURITIES & EXCHANGE COMMISSION: Agency
broker-dealers, banks and a few unregulated created by Congress to protect investors in
firms. securities transactions by administering securities
legislation.
QUALIFIED PUBLIC DEPOSITORIES: A financial
institution which does not claim exemption from SEC RULE 15C3-1: See Uniform Net Capital Rule.
the payment of any sales or compensating use or
ad valorem taxes under the laws of this state, STRUCTURED NOTES: Notes issued by
which has segregated for the benefit of the Government Sponsored Enterprises (FHLB, FNMA,
commission eligible collateral having a value of SLMA, etc.) and Corporations which have
not less than its maximum liability and which has imbedded options (e.g., call features, step-up
been approved by the Public Deposit Protection coupons, floating rate coupons, and derivative-
Commission to hold public deposits. based returns) into their debt structure. Their
market performance is impacted by the fluctuation
RATE OF RETURN: The yield obtainable on a of interest rates, the volatility of the imbedded
security based on its purchase price or its current options and shifts in the shape of the yield curve.
market price. This may be the amortized yield to
maturity on a bond the current income return. SURPLUS FUNDS: Section 53601 of the California
Government Code defines surplus funds as any
REPURCHASE AGREEMENT (RP OR REPO): A money not required for immediate necessities of
holder of securities sells these securities to an the local agency. The City has defined immediate
investor with an agreement to repurchase them necessities to be payment due within one week.
at a fixed price on a fixed date. The security
TREASURY BILLS: A non-interest bearing discount
period of the agreement, and the terms of the security issued by the U.S. Treasury to finance the
agreement are structured to compensate him for national debt. Most bills are issued to mature in
this. Dealers use RP extensively to finance their three months, six months or one year.
positions. Exception: When the Fed is said to be
doing RP, it is lending money that is increasing TREASURY BONDS: Long-term coupon-bearing
bank reserves. U.S. Treasury securities issued as direct
obligations of the U.S. Government and having
REVERSE REPURCHASE AGREEMENTS (RRP or initial maturities of more than 10 years.
RevRepo) - A holder of securities sells these
securities to an investor with an agreement to
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TREASURY NOTES: Medium-term coupon-bearing
U.S. Treasury securities issued as direct
obligations of the U.S. Government and having
initial maturities from two to 10 years.
UNIFORM NET CAPITAL RULE: Securities and
Exchange Commission requirement that member
firms as well as nonmember broker-dealers in
securities maintain a maximum ratio of
indebtedness to liquid capital of 15 to 1; also
called net capital rule and net capital ratio.
Indebtedness covers all money owed to a firm,
including margin loans and commitments to
purchase securities, one reason new public issues
are spread among members of underwriting
syndicates. Liquid capital includes cash and
assets easily converted into cash.
UNIFORM PRUDENT INVESTOR ACT: The State
of California has adopted this Act. The Act
contains the following sections: duty of care,
diversification, review of assets, costs,
compliance determinations, delegation of
investments, terms of prudent investor rule, and
application.
YIELD: The rate of annual income return on an
investment, expressed as a percentage. (a)
INCOME YIELD is obtained by dividing the current
dollar income by the current market price for the
security. (b) NET YIELD or YIELD TO MATURITY
is the current income yield minus any premium
above par or plus any discount from par in
purchase price, with the adjustment spread over
the period from the date of purchase to the date
of maturity of the bond.
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June 17, 2014
AGENDA CATEGORY:
CITY / SA/ HA/ FA MEETING DATE:
APPROVE A PROFESSIONAL SERVICES
ITEM TITLE:
BUSINESS SESSION:
AGREEMENT WITH TERRA NOVA PLANNING &
RESEARCH, INC. FOR PLANNING AND
CONSENT CALENDAR: 17
ENVIRONMENTAL SERVICES
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Approve a Professional Services Agreement with Terra Nova Planning & Research,
Inc. (Terra Nova) for planning and environmental services on an as-needed basis,
and authorize the Executive Director to execute said Agreement.
EXECUTIVE SUMMARY:
Terra Nova has provided planning-related development review and project
management services to the City for greater than 12 years.
Terra Nova is currently providing development review service for the City on
a case-by-case basis.
The proposed Professional Services Agreement (PSA) is for a period of three
years with provision for up to a three-year extension.
FISCAL IMPACT:
The proposed PSA has a maximum amount not to exceed $180,000 during the
three-year term. The PSA will be in effect beginning Fiscal Year 2014/2015
through 2016/2017.
BACKGROUND/ANALYSIS:
Terra Nova, primarily through the services of Nicole Criste, Principal, has provided a
variety of planning related services to the City including
General Plan and Housing Element updates as well as numerous case-specific
307
assistance in the review and processing of individual development applications.
Currently, development review assistance is being provided on a case-by-case basis
and invoiced monthly. In order to better facilitate management of these services,
staff is proposing a three-year PSA with Terra Nova that includes an extension
option for up to three additional years. Services to be provided include:
Review and analysis of development related applications;
Communication, coordination and meetings with applicants;
Preparation of environmental review documents;
Preparation of staff reports and presentation to decision making bodies; and
Administration of assigned files and timekeeping.
The primary purpose of the proposed PSA is to provide efficient, reliable and cost
effective development review services when the applicant demand for such
consistency in the quality and cost of the service and allows the service, and
subsequently its cost, to be reduced when the demand subsides. Based on Terra
Novaexperience, past performance, competitive cost, and familiarity with the
, staff recommends approval of the
proposed PSA.
ALTERNATIVES:
City Council may elect to delay, modify, or reject the approval of the PSA and
direct staff accordingly.
Report prepared by: David Sawyer, Planning Manager
Report approved for submission by: Les Johnson, Community Development
Director
Attachment: 1. PSA
308
ATTACHMENT 1
PROFESSIONAL SERVICES AGREEMENT
municipal corporation, and Sdqq` Mnu` Ok`mmhmf % Qdrd`qbg+ Hmb-
The parties hereto agree as follows:
1.0 SERVICES OF CONSULTANT
1.1 Scope of Services. In compliance with all terms and conditions of this
Agreement, Consultant shall provide those services related to Planning and
Environmental Services, on an as-needed basis and more particularly described in
the On-Call Planning Services proposal dated April 7, 2014, as specified in the
warrants that all services will be
performed in a competent, professional and satisfactory manner in accordance with
the standards prevalent in the industry for such services.
1.2 Compliance with Law. All services rendered hereunder shall be provided
in accordance with all ordinances, resolutions, statutes, rules, regulations and laws
of the City of La Quinta and any Federal, State or local governmental agency of
competent jurisdiction.
1.3 Licenses, Permits, Fees and Assessments. Except as otherwise specified
herein, Consultant shall obtain at its sole cost and expense such licenses, permits
and approvals as may be required by law for the performance of the services
required by this Agreement. Consultant shall have the sole obligation to pay for
any fees, assessments and taxes, plus applicable penalties and interest, which may
be imposed by law and arise from or are necessary for the performance of the
services required by this Agreement.
1.4 Familiarity with Work. By executing this Agreement, Consultant
warrants that (a) it has thoroughly investigated and considered the work to be
performed, (b) it has investigated the site of the work and fully acquainted itself
with the conditions there existing, (c) it has carefully considered how the work
should be performed, and (d) it fully understands the facilities, difficulties and
restrictions attending performance of the work under this Agreement. Should
Consultant discover any latent or unknown conditions materially differing from
those inherent in the work or as represented by City, Consultant shall immediately
inform City of such fact and shall not proceed except at Consultant's risk until
written instructions are received from the Contract Officer (as defined in Section
4.2 hereof).
1.5 Care of Work and Standard of Work.
Page 1 of 18
Last revised 5-20-14
309
a. Care of Work. Consultant shall adopt reasonable methods during the life
of the Agreement to furnish continuous protection to the work performed by
Consultant, and the equipment, materials, papers and other components thereof to
prevent losses or damages, and shall be responsible for all such damages, to
persons or property, until acceptance of the work by City, except such losses or
damages as may be caused by City's own negligence. The performance of
services by Consultant shall not relieve Consultant from any obligation to correct
any incomplete, inaccurate or defective work at no further cost to City, when such
inaccuracies are due to the negligence of Consultant.
b. Standard of Work. Consultant acknowledges and understands that the
services and work contracted for under this Agreement require specialized skills
work will be held to a heightened standard of quality and workmanship. Consistent
with Section 1.4 hereinabove, Consultant represents to City that it holds the
necessary skills and abilities to satisfy the heightened standard of work as set forth
in this Agreement.
1.6 Additional Services. In accordance with the terms and conditions of this
Agreement, Consultant shall perform services in addition to those specified in the
Scope of Services when directed to do so by the Contract
Officer. Consultant shall not perform any Additional Services until receiving prior
written authorization from the Contract Officer. It is specifically understood and
agreed that oral requests and/or approvals of Additional Services shall be barred
written authorization for Additional Services shall constitute a waiver of any and all
right to adjustment of the Contract Sum or time due, whether by way of
compensation, restitution, quantum meruit, etc. for Additional Services provided
without the appropriate authorization from the Contract Manager. Compensation
for properly authorized Additional Services shall be made in accordance with
Section 2.2 of this Agreement.
1.7 Special Requirements. Additional terms and conditions of this
Agreement, if any, which are made a part hereof are set
ct between the provisions of the
Special Requirements and any other provisions of this Agreement, the provisions of
the Special Requirements shall govern.
2.0 COMPENSATION
2.1 Contract Sum. For the services rendered pursuant to this Agreement,
Consultant shall be compensat
not to exceed One Hundred Eighty Thousand
Page 2 of 18
Last revised 5-20-14
310
Dollars ($180,000 as provided in Section 1.6. The
method of compensation set forth in the Schedule of Compensation may include a
lump sum payment upon completion, payment in accordance with the percentage
of completion of the services, payment for time and materials based upon
Consultant's rate schedule, but not exceeding the Contract Sum, or such other
methods as may be specified in the Schedule of Compensation. Compensation
may include reimbursement for actual and necessary expenditures for reproduction
costs, transportation expense, telephone expense, and similar costs and expenses
when and if specified in the Schedule of Compensation. Regardless of the method
of compensation set forth in the Schedule of Compensation, Consulta
compensation shall not exceed the Contract Sum, except as provided in Section
2.2 Compensation for Additional Services. Additional services approved
in advance by the Contract Manager pursuant to Section 1.6 of this Agreement,
City and Consultant in advance of the Additional Services being rendered by
Consultant. Any compensation for Additional Services amounting to five percent
(5%) or less of the Contract Sum may be approved by the Contract Officer. Any
greater amount of compensation for additional services must be approved by the La
Quinta City Council. Under no circumstances shall Consultant receive
compensation for any Additional Services unless prior written approval for the
Additional Services is obtained from the Contract Officer pursuant to Section 1.6 of
this Agreement.
2.3 Method of Billing. Any month in which Consultant wishes to
receive payment, Consultant shall submit to City no later than the tenth (10th)
working day of such month, in the form approved by City's Finance Director, an
invoice for services rendered prior to the date of the invoice. Such invoice shall (1)
describe in detail the services provided, including time and materials, and (2)
specify each staff member who has provided services and the number of hours
assigned to each such staff member. Such invoice shall contain a certification by a
principal member of Consultant specifying that the payment requested is for work
performed in accordance with the terms of this Agreement. City will pay
Consultant for all expenses stated thereon which are approved by City pursuant to
this Agreement no later than thirty (30) days after invoices are received by the
3.0 PERFORMANCE SCHEDULE
3.1 Time of Essence. Time is of the essence in the performance of this
Agreement.
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3.2 Schedule of Performance. All services rendered pursuant to this
Agreement shall be performed diligently and within the time period established in
Exhibit A to the time period
specified in the Schedule of Performance may be approved in writing by the
Contract Officer.
3.3 Force Majeure. The time period specified in the Schedule of Performance
for performance of the services rendered pursuant to this Agreement shall be
extended because of any delays due to unforeseeable causes beyond the control
and without the fault or negligence of Consultant, including, but not restricted to,
acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine
restrictions, riots, strikes, freight embargoes, acts of any governmental agency
other than City, and unusually severe weather, if Consultant shall within ten (10)
days of the commencement of such delay notify the Contract Officer in writing of
the causes of the delay. The Contract Officer shall ascertain the facts and the
extent of delay, and extend the time for performing the services for the period of
the forced delay when and if in his or her judgment such delay is justified, and the
Contract Officer's determination shall be final and conclusive upon the parties to
this Agreement. Extensions to the Schedule of Performance which are determined
by the Contract Officer to be justified pursuant to this Section shall not entitle the
Consultant to additional compensation in excess of the Contract Sum.
3.4 Term. Unless earlier terminated in accordance with Sections 8.7 or 8.8
of this Agreement, the term of this agreement shall commence on July 1, 2014
and terminate on June 30, 2017 (initial term). This agreement may be extended up
to three (3) additional years upon mutual agreement by both parties (extended
term).
4.0 COORDINATION OF WORK
4.1 Representative of Consultant. The following principals of Consultant are
hereby designated as being the principals and representatives of Consultant
authorized to act in its behalf with respect to the work specified herein and make
all decisions in connection therewith:
a. Nicole Sauviat Criste
b. Andrea Randall
c. Kelly Clark
It is expressly understood that the experience, knowledge, capability, and
reputation of the foregoing principals were a substantial inducement for City to
enter into this Agreement. Therefore, the foregoing principals shall be responsible
during the term of this Agreement for directing all activities of Consultant and
devoting sufficient time to personally supervise the services hereunder.
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The foregoing principals may not be changed by Consultant and no other
personnel may be assigned to perform the service required hereunder without the
express written approval of City.
4.2 Contract Officer. The Contract Officer shall be the Community
Development Director or such other person as may be designated by the City
Manager of City. It shall be Consultant's responsibility to assure that the Contract
Officer is kept informed of the progress of the performance of the services and
Consultant shall refer any decisions, which must be made by City to the Contract
Officer. Unless otherwise specified herein, any approval of City required hereunder
shall mean the approval of the Contract Officer.
4.3 Prohibition Against Subcontracting or Assignment. The experience,
knowledge, capability and reputation of Consultant, its principals and employees
were a substantial inducement for City to enter into this Agreement. Except as set
forth in this Agreement, Consultant shall not contract with any other entity to
perform in whole or in part the services required hereunder without the express
written approval of City. In addition, neither this Agreement nor any interest herein
may be assigned or transferred, voluntarily or by operation of law, without the prior
written approval of City.
4.4 Independent Contractor. Neither City nor any of its employees shall have
any control over the manner, mode or means by which Consultant, its agents or
employees, perform the services required herein, except as otherwise set forth.
Consultant shall perform all services required herein as an independent contractor
of City and shall remain at all times as to City a wholly independent contractor with
only such obligations as are consistent with that role. Consultant shall not at any
time or in any manner represent that it or any of its agents or employees are agents
or employees of City.
4.5 City Cooperation. City shall provide Consultant with any plans,
publications, reports, statistics, records or other data or information pertinent to
services to be performed hereunder which are reasonably available to Consultant
only from or through action by City.
5.0 INSURANCE
5.1 Insurance. Prior to the beginning of and throughout the duration of the
Work performed under this Agreement, Consultant shall procure and maintain, at
its cost, and submit concurrently with its execution of this Agreement, Commercial
General Liability insurance against all claims for injuries against persons or damages
to property resulting from Consultant's acts or omissions rising out of or related to
Consultant's performance under this Agreement. The insurance policy shall contain
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a severability of interest clause providing that the coverage shall be primary for
losses arising out of Consultant's performance hereunder and neither City nor its
insurers shall be required to contribute to any such loss. A certificate evidencing
the foregoing and naming City and its officers and employees as additional insured
(on the Commercial General Liability policy only) shall be delivered to and approved
by City prior to commencement of the services hereunder.
The following policies shall be maintained and kept in full force and effect
providing insurance with minimum limits as indicated below and issued by insurers
with A.M. Best ratings of no less than A-:VI:
Commercial General Liability (at least as broad as ISO CG 0001)
$1,000,000 (per occurrence)
$2,000,000 (general aggregate)
Commercial Auto Liability (at least as broad as ISO CA 0001)
$1,000,000 (per accident)
Errors and Omissions Liability
$1,000,000 (per claim and aggregate)
(per statutory requirements)
Consultant shall carry automobile liability insurance of $1,000,000 per
accident against all claims for injuries against persons or damages to property
arising out of the use of any automobile by Consultant, its officers, any person
directly or indirectly employed by Consultant, any subcontractor or agent, or
anyone for whose acts any of them may be liable, arising directly or indirectly out
of or related to Consultant's performance under this Agreement. If Consultant or
Consultant shall provide evidence of personal auto liability coverage for each such
limited to, a land motor vehicle,
trailer or semi-trailer designed for travel on public roads. The automobile insurance
policy shall contain a severability of interest clause providing that coverage shall be
primary for losses arising out of Consultant's performance hereunder and neither
City nor its insurers shall be required to contribute to such loss.
Professional Liability or Errors and Omissions Insurance as appropriate shall be
written on a policy form coverage specifically designed to protect against acts,
designated in the policy must specifically include work performed under this
agreement. The policy limit shall be no less than $1,000,000 per claim and in the
aggregat
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be on or before the effective date of this agreement.
Consultant shall carry Workers' Compensation Insurance in accordance with
$1,000,000 per accident or disease.
All insurance required by this Section shall be kept in effect during the term of
this Agreement and shall not be cancelable without written notice to City of
proposed cancellation. The procuring of such insurance or the delivery of policies
or certificates evidencing the same shall not be construed as a limitation of
Consultant's obligation to indemnify City, its officers, employees, contractors,
subcontractors, or agents.
5.2 Remedies. In addition to any other remedies City may have if Consultant
fails to provide or maintain any insurance policies or policy endorsements to the
extent and within the time herein required, City may, at its sole option:
a. Obtain such insurance and deduct and retain the amount of the
premiums for such insurance from any sums due under this Agreement.
b. Order Consultant to stop work under this Agreement and/or
withhold any payment(s) which become due to Consultant hereunder until
Consultant demonstrates compliance with the requirements hereof.
c. Terminate this Agreement.
Exercise of any of the above remedies, however, is an alternative to any other
remedies City may have. The above remedies are not the exclusive remedies for
Consultant's failure to maintain or secure appropriate policies or endorsements.
Nothing herein contained shall be construed as limiting in any way the extent to
which Consultant may be held responsible for payments of damages to persons or
property resulting from Consultant's or its subcontractors' performance of work
under this Agreement.
5.3 General Conditions pertaining to provisions of insurance coverage by
Consultant. Consultant and City agree to the following with respect to insurance
provided by Consultant:
1. Consultant agrees to have its insurer endorse the third party general
liability coverage required herein to include as additional insureds City, its officials,
employees and agents, using standard ISO endorsement No. CG 2010 with an
edition prior to 1992. Consultant also agrees to require all contractors, and
subcontractors to do likewise.
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2. No liability insurance coverage provided to comply with this
Agreement shall prohibit
waiving the right of subrogation prior to a loss. Consultant agrees to waive
subrogation rights against City regardless of the applicability of any insurance
proceeds, and to require all contractors and subcontractors to do likewise.
3. All insurance coverage and limits provided by Contractor and
available or applicable to this agreement are intended to apply to the full extent of
the policies. Nothing contained in this Agreement or any other agreement relating
to the City or its operations limits the application of such insurance coverage.
4. None of the coverages required herein will be in compliance with
these requirements if they include any limiting endorsement of any kind that has
not been first submitted to City and approved of in writing.
5. No liability policy shall contain any provision or definition that would
serve to eliminate so-
for bodily injury to an employee of the insured or of any contractor or
subcontractor.
6. All coverage types and limits required are subject to approval,
modification and additional requirements by the City, as the need arises.
Consultant shall not make any reductions in scope of coverage (e.g. elimination of
7. Proof of compliance with these insurance requirements, consisting
of certificates of insurance evidencing all of the coverages required and an
delivered to City at or prior to the execution of this Agreement. In the event such
proof of any insurance is not delivered as required, or in the event such insurance is
canceled at any time and no replacement coverage is provided, City has the right,
but not the duty, to obtain any insurance it deems necessary to protect its interests
under this or any other agreement and to pay the premium. Any premium so paid
by City shall be charged to and promptly paid by Consultant or deducted from
sums due Consultant, at City option.
8. It is acknowledged by the parties of this agreement that all
insurance coverage required to be provided by Consultant or any subcontractor, is
intended to apply first and on a primary, non-contributing basis in relation to any
other insurance or self insurance available to City.
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9. Consultant agrees to ensure that subcontractors, and any other
party involved with the project that is brought onto or involved in the project by
Consultant, provide the same minimum insurance coverage required of Consultant.
Consultant agrees to monitor and review all such coverage and assumes all
responsibility for ensuring that such coverage is provided in conformity with the
requirements of this section. Consultant agrees that upon request, all agreements
with subcontractors and others engaged in the project will be submitted to City for
review.
10. Consultant agrees not to self-insure or to use any self-insured
retentions or deductibles on any portion of the insurance required herein (with the
exception of professional liability coverage, if required) and further agrees that it
will not allow any contractor, subcontractor, Architect, Engineer or other entity or
person in any way involved in the performance of work on the project
contemplated by this agreement to self-insure its obligations to City. If
-insured retention, the
deductible or self-insured retention must be declared to the City. At that time the
City shall review options with the Consultant, which may include reduction or
elimination of the deductible or self-insured retention, substitution of other
coverage, or other solutions.
11. The City reserves the right at any time during the term of the
contract to change the amounts and types of insurance required by giving the
Consultant ninety (90) days advance written notice of such change. If such
change results in substantial additional cost to the Consultant, the City will
negotiate additional compensation proportional to the increased benefit to City.
12. For purposes of applying insurance coverage only, this Agreement
will be deemed to have been executed immediately upon any party hereto taking
any steps that can be deemed to be in furtherance of or towards performance of
this Agreement.
13. Consultant acknowledges and agrees that any actual or alleged
failure on the part of City to inform Consultant of non-compliance with any
insurance requirement in no way imposes any additional obligations on City nor
does it waive any rights hereunder in this or any other regard.
14. Consultant will renew the required coverage annually as long as
City, or its employees or agents face an exposure from operations of any type
pursuant to this agreement. This obligation applies whether or not the agreement
is canceled or terminated for any reason. Termination of this obligation is not
effective until City executes a written statement to that effect.
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15. Consultant shall provide proof that policies of insurance required
herein expiring during the term of this Agreement have been renewed or replaced
with other policies providing at least the same coverage. Proof that such coverage
has been ordered shall be submitted prior to expiration. A coverage binder or letter
insurance and/or additional insured endorsement as required in these specifications
applicable to the renewing or new coverage must be provided to City within five (5)
days of the expiration of coverages.
16.
limit the obligations of Consultant under this agreement. Consultant expressly
agrees not to use any statutory immunity defenses under such laws with respect to
City, its employees, officials and agents.
17. Requirements of specific coverage features or limits contained in
this section are not intended as limitations on coverage, limits or other
requirements nor as a waiver of any coverage normally provided by any given
policy. Specific reference to a given coverage feature is for purposes of
clarification only as it pertains to a given issue, and is not intended by any party or
insured to be limiting or all-inclusive.
18. These insurance requirements are intended to be separate and
distinct from any other provision in this agreement and are intended by the parties
here to be interpreted as such.
19. The requirements in this Section supersede all other sections and
provisions of this Agreement to the extent that any other section or provision
conflicts with or impairs the provisions of this Section.
20. Consultant agrees to be responsible for ensuring that no contract
used by any party involved in any way with the project reserves the right to charge
City or Consultant for the cost of additional insurance coverage required by this
agreement. Any such provisions are to be deleted with reference to City. It is not
the intent of City to reimburse any third party for the cost of complying with these
requirements. There shall be no recourse against City for payment of premiums or
other amounts with respect thereto.
21. Consultant agrees to provide immediate notice to City of any claim
or loss against Consultant arising out of the work performed under this agreement.
City assumes no obligation or liability by such notice, but has the right (but not the
duty) to monitor the handling of any such claim or claims if they are likely to
involve City.
6.0 INDEMNIFICATION.
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6.1 General Indemnification Provision.
a. Indemnification for Professional Liability. When the law establishes
es, to the fullest extent
permitted by law, Consultant shall indemnify, protect, defend and hold harmless
from and against any and all claims, losses, liabilities of every kind, nature and
description, damages, injury (including, without limitation, injury to or death of an
employee of Consultant or subconsultants), costs and expenses of any kind,
whether actual, alleged or threatened, including, without limitation, incidental and
of expert consultants or expert witnesses incurred in connection therewith and
costs of investigation, to the extent same are cause in whole or in part by any
negligent or wrongful act, error or omission of Consultant, its officers, agents,
employees or subconsultants (or any entity or individual that Consultant shall bear
the legal liability thereof) in the performance of professional services under this
agreement. With respect to the design of public improvements, the Consultant
shall not be liable for any injuries or property damage resulting from the reuse of
the design at a location other than that specified in Exhibit A without the written
consent of the Consultant.
b. Indemnification for Other Than Professional Liability. Other than in
the performance of professional services and to the full extent permitted by law,
Consultant shall indemnify, defend and hold harmless City, and any and all of its
employees, officials and agents from and against any liability (including liability for
claims, suits, actions, arbitration proceedings, administrative proceedings,
regulatory proceedings, losses, expenses or costs of any kind, whether actual,
alleged or threatened, including, without limitation, incidental and consequential
consultants or expert witnesses) incurred in connection therewith and costs of
investigation, where the same arise out of, are a consequence of, or are in any way
attributable to, in whole or in part, the performance of this Agreement by
Consultant or by any individual or entity for which Consultant is legally liable,
including but not limited to officers, agents, employees or subconsultants of
Consultant.
6.2 Standard Indemnification Provisions. Consultant agrees to obtain
executed indemnity agreements with provisions identical to those set forth herein
this section from each and every subconsultant or any other person or entity
involved by, for, with or on behalf of Consultant in the performance of this
agreement. In the event Consultant fails to obtain such indemnity obligations from
others as required herein, Consultant agrees to be fully responsible according to the
terms of this section. Failure of City to monitor compliance with these
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requirements imposes no additional obligations on City and will in no way act as a
waiver of any rights hereunder. This obligation to indemnify and defend City as set
forth herein is binding on the successors, assigns or heirs of Consultant and shall
survive the termination of this agreement or this section.
a. Indemnity Provisions for Contracts Related to Construction.
Without affecting the rights of City under any provision of this agreement,
Consultant shall not be required to indemnify and hold harmless City for liability
attributable to the active negligence of City, provided such active negligence is
determined by agreement between the parties or by the findings of a court of
competent jurisdiction. In instances where City is shown to have been actively
liability involved, the obligation of Consultant will be for that entire portion or
percentage of liability not attributable to the active negligence of City.
b. Indemnification Provision for Design Professionals.
1. Applicability of Section 6.2(b). Notwithstanding Section
6.2(a) hereinabove, the following indemnification provision shall apply to
paragraph 3 below.
2. Scope of Indemnification. To the fullest extent permitted by
nts,
and description, damages, injury (including, without limitation, injury to or death of
an employee of Consultant or subconsultants), costs and expenses of any kind,
whether actual, alleged or threatened, including, without limitation, incidental and
of expert consultants or expert witnesses incurred in connection therewith and
costs of investigation, that arise out of, pertain to, or relate to, directly or
indirectly, in whole or in part, the negligence, recklessness, or willful misconduct of
Consultant, any subconsultant, anyone directly or indirectly employed by them or
anyone that they control.
3. Design Professional Defined. As used in this Section 6.2(b),
professional engineers, licensed professional land surveyors and landscape
architects, all as defined under current law, and as may be amended from time to
time by Civil Code § 2782.8.
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7.0 RECORDS AND REPORTS.
7.1 Reports. Consultant shall periodically prepare and submit to the Contract
Officer such reports concerning Consultant's performance of the services required
by this Agreement as the Contract Officer shall require.
7.2 Records. Consultant shall keep such books and records as shall be
necessary to perform the services required by this Agreement and enable the
Contract Officer to evaluate the cost and the performance of such services. Books
and records pertaining to costs shall be kept and prepared in accordance with
generally accepted accounting principals. The Contract Officer shall have full and
free access to such books and records at all reasonable times, including the right to
inspect, copy, audit, and make records and transcripts from such records.
7.3 Ownership of Documents. Originals of all drawings, specifications,
reports, records, documents and other materials, whether in hard copy or electronic
form, which are prepared by Consultant, its employees, subcontractors and agents
in the performance of this Agreement, shall be the property of City and shall be
delivered to City upon termination of this Agreement or upon the earlier request of
the Contract Officer, and Consultant shall have no claim for further employment or
additional compensation as a result of the exercise by City of its full rights of
ownership of the documents and materials hereunder. Consultant shall cause all
subcontractors to assign to City any documents or materials prepared by them, and
in the event Consultant fails to secure such assignment, Consultant shall indemnify
City for all damages suffered thereby.
In the event City or any person, firm or corporation authorized by City reuses
said documents and materials without written verification or adaptation by
Consultant for the specific purpose intended and causes to be made or makes any
changes or alterations in said documents and materials, City hereby releases,
discharges, and exonerates Consultant from liability resulting from said change.
The provisions of this clause shall survive the completion of this Contract and shall
thereafter remain in full force and effect.
7.4 Release of Documents. The drawings, specifications, reports, records,
documents and other materials prepared by Consultant in the performance of
services under this Agreement shall not be released publicly without the prior
written approval of the Contract Officer or as required by law. Consultant shall not
disclose to any other entity or person any information regarding the activities of
City, except as required by law or as authorized by City.
8.0 ENFORCEMENT OF AGREEMENT.
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8.1 California Law. This Agreement shall be construed and interpreted both
as to validity and to performance of the parties in accordance with the laws of the
State of California. Legal actions concerning any dispute, claim or matter arising
out of or in relation to this Agreement shall be instituted in the Superior Court of
the County of Riverside, State of California, or any other appropriate court in such
county, and Consultant covenants and agrees to submit to the personal jurisdiction
of such court in the event of such action.
8.2 Disputes. In the event of any dispute arising under this Agreement, the
injured party shall notify the injuring party in writing of its contentions by
submitting a claim therefore. The injured party shall continue performing its
obligations hereunder so long as the injuring party commences to cure such default
within ten (10) days of service of such notice and completes the cure of such
default within forty-five (45) days after service of the notice, or such longer period
as may be permitted by the Contract Officer; provided that if the default is an
immediate danger to the health, safety and general welfare, City may take such
immediate action as City deems warranted. Compliance with the provisions of this
section shall be a condition precedent to termination of this Agreement for cause
and to any legal action, and such compliance shall not be a waiver of any party's
right to take legal action in the event that the dispute is not cured, provided that
nothing herein shall limit City's right to terminate this Agreement without cause
pursuant to Section 8.7.
8.3 Retention of Funds. City may withhold from any monies payable to
Consultant sufficient funds to compensate City for any losses, costs, liabilities, or
damages it reasonably believes were suffered by City due to the default of
Consultant in the performance of the services required by this Agreement.
8.4 Waiver. No delay or omission in the exercise of any right or remedy of a
non defaulting party on any default shall impair such right or remedy or be
construed as a waiver. City's consent or approval of any act by Consultant
requiring City's consent or approval shall not be deemed to waive or render
unnecessary City's consent to or approval of any subsequent act of Consultant.
Any waiver by either party of any default must be in writing and shall not be a
waiver of any other default concerning the same or any other provision of this
Agreement.
8.5 Rights and Remedies are Cumulative. Except with respect to rights and
remedies expressly declared to be exclusive in this Agreement, the rights and
remedies of the parties are cumulative and the exercise by either party of one or
more of such rights or remedies shall not preclude the exercise by it, at the same or
different times, of any other rights or remedies for the same default or any other
default by the other party.
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8.6 Legal Action. In addition to any other rights or remedies, either party
may take legal action, at law or at equity, to cure, correct or remedy any default,
to recover damages for any default, to compel specific performance of this
Agreement, to obtain injunctive relief, or to obtain any other remedy consistent
with the purposes of this Agreement.
8.7 Termination Prior To Expiration Of Term. This section shall govern any
termination of this Agreement, except as specifically provided in the following
Section 8.8 for termination for cause. City reserves the right to terminate this
Agreement at any time, with or without cause, upon thirty (30) days' written
notice to Consultant. Upon receipt of any notice of termination, Consultant shall
immediately cease all services hereunder except such as may be specifically
approved by the Contract Officer. Consultant shall be entitled to compensation for
all services rendered prior to receipt of the notice of termination and for any
services authorized by the Contract Officer thereafter in accordance with the
Schedule of Compensation or such as may be approved by the Contract Officer,
except as provided in Section 8.3.
8.8 Termination for Default of Consultant. If termination is due to the failure
of Consultant to fulfill its obligations under this Agreement, City may, after
compliance with the provisions of Section 8.2, take over work and prosecute the
same to completion by contract or otherwise, and Consultant shall be liable to the
extent that the total cost for completion of the services required hereunder exceeds
the compensation herein stipulated (provided that City shall use reasonable efforts
to mitigate such damages), and City may withhold any payments to Consultant for
the purpose of setoff or partial payment of the amounts owed City as previously
stated in Section 8.3.
8.9 Attorneys' Fees. If either party commences an action against the other
party arising out of or in connection with this Agreement, the prevailing party shall
be entitled to recover reasonable attorneys' fees and costs of suit from the losing
party.
9.0 CITY OFFICERS AND EMPLOYEES; NONDISCRIMINATION.
9.1 Non-liability of City Officers and Employees. No officer or employee of
City shall be personally liable to Consultant, or any successor in interest, in the
event or any default or breach by City or for any amount which may become due to
Consultant or to its successor, or for breach of any obligation of the terms of this
Agreement.
9.2 Conflict of Interest. No officer or employee of City shall have any
personal interest, direct or indirect, in this Agreement nor shall any such officer or
employee participate in any decision relating to the Agreement which affects his or
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her personal interest or the interest of any corporation, partnership or association in
which she or he is, directly or indirectly, interested, in violation of any State statute
or regulation. Consultant warrants that it has not paid or given and will not pay or
give any third party any money or general consideration for obtaining this
Agreement.
9.3 Covenant against Discrimination. Consultant covenants that, by and for
itself, its heirs, executors, assigns, and all persons claiming under or through them,
that there shall be no discrimination against or segregation of, any person or group
of persons on account of race, color, creed, religion, sex, marital status, national
origin or ancestry in the performance of this Agreement. Consultant shall take
affirmative action to insure that applicants are employed and that employees are
treated during employment without regard to their race, color, creed, religion, sex,
marital status, national origin or ancestry.
10.0 MISCELLANEOUS PROVISIONS
10.1 Notice. Any notice, demand, request, consent, approval, communication
either party desires or is required to give the other party or any other person shall
be in writing and either served personally or sent by prepaid, first-class mail to the
address set forth below. Either party may change its address by notifying the other
party of the change of address in writing. Notice shall be deemed communicated
forty-eight (48) hours from the time of mailing if mailed as provided in this section.
To City: To Consultant:
CITY OF LA QUINTA Terra Nova Planning & Research, Inc.
Attn: Frank J. Spevacek, Attn: Nicole Criste, Principal
City Manager
78-495 Calle Tampico 42635 Melanie Place
La Quinta, California 92253 Suite 101
Palm Desert, California 92211
10.2 Integrated Agreement. This Agreement contains all of the agreements of
the parties and all previous understanding, negotiations and agreements are
integrated into and superseded by this Agreement.
10.3 Amendment. This Agreement may be amended at any time by the
mutual consent of the parties by an instrument in writing signed by both parties.
10.4 Severability. In the event that any one or more of the phrases,
sentences, clauses, paragraphs, or sections contained in this Agreement shall be
declared invalid or unenforceable by a valid judgment or decree of a court of
competent jurisdiction, such invalidity or unenforceability shall not affect any of the
remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement
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which are hereby declared as severable and shall be interpreted to carry out the
intent of the parties hereunder.
10.5 Authority. The persons executing this Agreement on behalf of the
parties hereto warrant that they are duly authorized to execute this Agreement on
behalf of said parties and that by so executing this Agreement the parties hereto
are formally bound to the provisions of this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
dates stated below.
CITY OF LA QUINTA a California municipal corporation
______________________________
Frank J. Spevacek, City Manager Date
ATTEST:
______________________________________
Susan Maysels, City Clerk
APPROVED AS TO FORM:
___________________________________
M. Katherine Jenson, City Attorney
CONSULTANT: Terra Nova Planning & Research, Inc.
By: ___________________________________
Name: Nicole Sauviat Criste
Title: Principal
Date:_ _______________________
Page 17 of 18
Last revised 5-20-14
325
Exhibit A
Scope of Services
Schedule of Compensation
Schedule of Performance
Special Requirements
Scope of Services
Please see att -Call Planning Servic
dated April 7, 2014 submitted by Terra Nova Planning & Research, Inc.
Schedule of Compensation
With the exception of compensation for Additional Services, provided for in
Section 2.2 of this Agreement, the maximum total compensation to be paid to
Consultant under this Agreement is One Hundred Eighty Thousand Dollars
($180,000
installment payments made on a monthly basis and in an amount identified in
Consultants Schedule of Compensation attached hereto for the work
tasks performed and properly invoiced by Consultant in conformance with Section
2.2 of the Agreement.
Schedule of Performance
Consultant shall complete all services identified in the Scope of Services,
of this Agreement on an as needed basis.
Special Requirements
No special requirements apply to this agreement.
Last revised 5-20-1418
326
EXHIBIT ŮŮ@ů
TERRRA NOVVA PLAANNINGG & RESSEARCH, INC.
Aprill 7, 2014
Mr.LLes Johnson
Commmunity Deveelopment Diirector
Cityoof La Quintaa
78-4995 Calle Tammpico
La Quinta, CA 922253
RE:PProposal for On-Call Plaanning Services
DearLes:
As reecently discuussed, this letter has beenn prepared too address yoour need for oon-call
plannning and envvironmental sservices. Thee following briefly summmarizes the ttasks that
couldd be assignedd to us.
Undeerstandingoof Project
TheCCity has, andd would like to continue to assign Teerra Nova cuurrently plannning case
workk on an ‘as neeeded’ basis. The tasks wwhich could be assignedd to us includde:
Staff pressence at Cityy’s Planning Departmentt when requiired, includinng regularly
scheduledd office hourrs if agreed uupon with Ciity staff.
Review annd analysis oof applicatioon materials for developmment relatedd applicationns
includingSite Develoopment Permmits, Conditioonal Use Perrmits, Tract Maps and
SpecificPPlans.
Coordinattion and meeetings with aapplicants.
Preparatioon of environnmental reviiew for bothh case work aassigned to uus and from
other Cityy staff planneers.
Preparatioon of staff reeports, condiitions of appproval and reesolutions.
Preparatioon for and prresentations to Architectture and Lanndscaping Reeview Boardd,
PlanningCommissionn and/or Cityy Council.
Administrration of filees, timekeepiing and otheer similar tassks as requireed.
Wewwill keep all original matterials in the City’s files at City Halll. If the City is able to
proviide a work sppace as it cuurrently does at City Halll for us, we wwill operate from that
workk space.
4635 MELAIE PLACE, SUITE 101ERT, CA 2211 (760) 341-4800
22NN, PALM DESS99
327
Mr. Les Johnson
April 7, 2014
Page 2 of 3
It is understood that Terra Nova is allowed to maintain duplicate files at its office in Palm
Desert, if it chooses to do so. Terra Nova may work on assignments either at City Hall or
at its office, based on project timelines and deadlines.
We understand that the assignment of work is entirely at the City’s discretion, and that
this scope of work does not provide for any minimum or maximum assignment of work.
Budget
Terra Nova will bill on a time and materials basis, and will track time allocated to each
project per City’s project time tracking procedures. Invoicing will be case or project
specific. Terra Nova will also maintain time logs for each project on the City’s time log
template. The hourly fees for our staff are provided on the attached fee schedule.
Conclusion
I believe that the above accurately represents our conversation. Please let me know if
you have any questions or need additional information.
Sincerely,
Nicole Sauviat Criste
Principal
328
Mr. Les Johnson
April 7, 2014
Page 3 of 3
®
TERRA NOVA PLANNING & RESEARCH, INC.
42635 MELANIE PLACE, SUITE 101
PALM DESERT, CA 92211
STANDARD FEE SCHEDULE
2014
Terra Nova invoices its clients on a cost-basis using an hourly billing system. The scope
of each planning effort is typically broken down by task and assigned estimated
necessary staff time and the applicable hourly rate. Reimbursable expenses are charged
on a cost basis, except where otherwise indicated. All payments for services rendered are
to be made payable to Terra Nova Planning & Research, Inc. unless otherwise indicated.
Clients are invoiced on a monthly basis, and invoices are due and payable upon receipt. A
charge of 1.5% per month is added to all invoices over 30 days past due. The current fee
schedule is provided below:
Terra Nova StaffHourly Rate
Principal Planner $ 165.00
Senior Planner $ 140.00
Associate Planner $ 115.00
Assistant Planner $ 95.00
Media Specialist $ 85.00
Graphic Design Specialist $ 60.00
Administrative Assistant $ 45.00
REIMBURSABLES
Photo Copies (BW) $ 0.15 ea.
(Color) $ 1.00 ea.
Blueprints/Xerox (BW) $ 2.00/S.F.
(Color) $ 8.00/S.F.
Computer Plotter $ 30.00/Hr.
Telephone Toll Charges Cost
FAX Transmittals Cost
Reproduction, Special photographic services,
document printing, aerial photogrammetry, postage, etc. Cost +15%.
329
330
June 17, 2014
AGENDA CATEGORY:
CITY / SA / HA / FA MEETING DATE:
APPROVE SPECIFICATIONS AND
ITEM TITLE:
BUSINESS SESSION:
ENGINEER’S ESTIMATE AND AUTHORIZE STAFF TO
CONSENT CALENDAR:
18
OBTAIN BIDS FOR PHASE I OF LA QUINTA
MUSEUM
CT PUBLIC FACILIT
AMERICANS WITH DISABILITES
AY
STUDY SESSION:
IMPROVEMENTS PROJECT
PUBLIC HEARING:
RECOMMENDED ACTION:
Approve the specifications and engineer’s estimate and authorize staff to obtain bids for
Phase I of the La Quinta Museum Americans with Disabilities Act Public Facility
Improvements project.
EXECUTIVE SUMMARY:
The La Quinta Museum requires a variety of upgrades in order to comply with the
Americans with Disabilities Act (ADA).
During this first phase of the La Quinta Museum ADA Improvements project, a
general building contractor will be hired to address certain ADA deficiencies at
this City facility. An award recommendation will be presented in July 2014.
The project is being financed from the Library Fund and is not subject to
prevailing wage requirements.
FISCAL IMPACT:
The Phase I improvements are estimated to cost $60,000. A total of $369,780 was
approved for Phase 1 and Phase 2 ADA improvements at the La Quinta Museum in the
2013/2014 Capital Improvement Program.
BACKGROUND/ANALYSIS:
In 2011, the City conducted an ADA accessibility self-evaluation of its public facilities
and commissioned an accessibility survey prepared by Disability Access Consultants.
This survey identified the need for certain ADA improvements at the La Quinta Museum.
This project will correct these deficiencies that can be completed by a Class B General
Contractor such as installing an ADA compliant drinking fountain, mounting ADA
331
compliant signage, adjusting accessories on doors, adjusting restroom grab bars,
installing restroom dispensers, modifying hand railing, and other items. The Phase 2
improvements will require additional engineering work before they can be bid. Staff
anticipates undertaking the design phase of these improvements in September 2014.
The project specifications and bid documents are now complete and available for review
in the City’s Public Works Department.
Contingent upon City Council’s approval to advertise Phase I of the La Quinta Museum
Americans with Disabilities Act Public Facility Improvements on June 17, 2014, the
following is the expected project schedule:
City Council Bid Authorization June 17, 2014
Bid Period June 18, 2014 -- July 17, 2014
Award of Project August 5, 2014
Construction September 2014
Accept Phase 1 Improvements October 2014
ALTERNATIVES:
Since these requirements are necessary to comply with State and Federal law, no
alternative is recommended.
Report prepared by: Bryan McKinney, Principal Engineer
Report approved for submission by: Timothy R. Jonasson, P.E.
Public Works Director/City Engineer
332
June 17, 2014
AGENDA CATEGORY:
CITY / SA / HA / FA MEETING DATE:
___
ADOPT RESOLUTION TO APPROVE
ITEM TITLE:
BUSINESS SESSION:
1
FISCAL YEAR 2014/2015 CITY OF LA QUINTA
CONSENT CALENDAR:
APPROPRIATION LIMIT
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Adopt a Resolution approving the Fiscal Year 2014/2015 City of La Quinta Budget
appropriation limit.
EXECUTIVE SUMMARY:
The Fiscal Year (FY) 2014/2015 Proposed Budget consists of the City,
Successor Agency, Housing Authority and Financing Authority budgets.
The proposed budget, presented at the May 20, 2014 City Council meeting,
projected $36,125,620 in General Fund revenue, $35,649,126 in planned
expenditures, and a budget surplus of $476,494.
Subsequently, staff recommended $48,140 in supplemental requests and
Council added items totaling $350,000 to be included in the final budget, for
a total of $398,140 additional expenditures.
Staff is recommending additional modifications, which lowers the $398,140
in requests to $298,140.
Should the Council adopt the budget with these recommendations, the
remaining budget surplus would be reduced from $476,494 to $178,354.
FISCAL IMPLICATIONS:
All Fiscal Year 2014/2015 revenues, operational appropriations and capital project
funding are included in the Proposed FY 2014/2015 Budget, which projects
General Fund revenues of $36,125,620, planned expenditures totaling
$35,947,266, and an estimated operating surplus of $178,354.
333
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The Budget does not include the use of existing General Fund reserves. The
General Fund reserves for June 30, 2015 are estimated to be as follows:
Total Reserves: $94.6 million
Kdrr: Non Spendable: ($65.2) million (receivables/land for resale)
Kdrr: Designated for Specific Use: ($ 5.4) million (retiree health, specific
projects)
Kdrr9 Emergency Reserves: ($16.5) million (35% of expenditures +
$4 million)
Kdrr9 Cash Flow Contingency: ($ 2.9) million (8.25% of expenditures)
*Unassigned/Remaining: $ 4.6 million
Note: This does not include the expected budget surplus of $178,354. If Council
does not designate this surplus for specific items, the remaining surplus would
bring the total unassigned fund balance to $4.78 million.
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BACKGROUND/ANALYSIS:
The FY 2014/2015 Proposed Budget was introduced at the May 20, 2014 City
Council meeting and a follow-up budget report was presented at the June 3, 2014
meeting. At that time, the Council directed staff to include the following in the
Final Budget:
$12
Upgrade Community Services Director to Deputy City Manager
Reclassify Senior Secretary to Human Resources Assistant
Reclassify Executive Assistant to Content Editor/Writer
$9,800 to rent Colonel Mitchell Paige Middle School multipurpose room
$11,340 for part-time staff at Wellness Center (extended hours)
$3,000 for part-time staff at Franklin Elementary to hold for classes until
Wellness Center is open
$2,000 for dog park over-seeding
$10,000 for tree pruning
$100,000 to increase economic development and marketing budgets
334
$20,000 to increase community grants funding (for a total of $60,000)
$50,000 to assist homeless shelters
$120,000 for employee compensation adjustments
$100,000 for insurance reserves
Council also directed staff to reduce the budget for the Coachella Valley Economic
Partnership membership from $50,000 to $10,000.
These changes added $398,140 to the projected expenditures with a surplus of
$78,354.
Other Considerations
The Executive Team subsequently reviewed the final budget expenditure program.
This review surfaced the following recommendations:
Rescind recommendation to dedicate $100,000 to an insurance reserve.
Staff still recommends establishing an insurance reserve fund; however,
rather than contributing start-up monies, staff recommends funding reserves
over time with future savings from reduced insurance premiums, rebates
and/or refunds. The rationale is to reserve a greater amount of the projected
surplus for unanticipated expenditures that may arise during FY 2014/15.
Establish position of Business Analyst in the Finance Department and delete
vacant Assistant Planner position in Community Development Department.
The Community Development Department does not see the need for this
position in the near term since their current demand is to process building
permits and not planning entitlements. If the need arises for additional staff
to handle entitlements, staff believes that it can be handled thorough
contract services. (There is no increase to General Fund expenditures as a
result of this recommendation.)
The Finance Department has experienced a number of significant changes in
the last two years including the implementation of a new financial software
system; increase in professional/technical level work related to the
dissolution of the Redevelopment Agency and related required financial
reporting; and, increased professional/technical level work related to
Governmental Accounting Standards Board changes. Additionally, there are
critical areas in the Finance Department requiring cross-training, primarily
payroll and accounting-related functions. After assessing the needs of the
department, rather than requesting to re-establish the Senior Accounting
335
Technician position, the addition of a Business Analyst is recommended.
This addition will allow for a reallocation of duties within the department to
address the lack of cross training and back-up. Additionally, it will assist the
City in fully realizing the potential of the new financial system; provide
professional/technical level support for the department; assist in providing
enhanced customer service and information to departments; and assist in
providing a better level of fiscal analysis to the City Manager and Council.
Should the Council approve aforementioned recommendations, the General Fund
budget surplus would be as follows:
$ 78,354 surplus as of June 3, 2014 Study Session
$100,000 rescind $100,000 start-up funds for insurance reserves
$178,354 Revised Projected Surplus
Mnsd 9 Rgntkc sgd qdbnlldmcdc rs`eehmf bg`mfdr ad `ooqnudc+ rs`ee vhkk qdstqm sn
Bntmbhk vhsg qdbnlldmc`shnmr sn bqd`sd `mc nq `ldmc ina cdrbqhoshnmr-
Appropriations Limitation Calculation (Gann Limit)
Annually, the City is required to prepare the Gann Limit in accordance with Article
XIIIB of the State Constitution. The Gann initiative limits growth in government
spending to changes in population and inflation. The Gann Limit for FY 2014/2015
is $103,249,837. The amount subject to the Gann Limit is $35,982,642;
therefore, the City is significantly below the limit by a margin of $67,267,195.
Staff prepared and submitted the report for City auditors review. The auditors
completed their review and issued their report (Attachment 1), which included
verifying the calculation performed by the City for FY 2012/2013. (The FY
2013/2014 calculation will be reviewed as part of the FY 2013/14 year-end audit).
The auditors concluded that the Gann Limit was calculated in accordance with
Article XIIIA of the California Constitution and did not report any negative findings.
Continuing Appropriations/Encumbrance Carryovers
The list of estimated continuing appropriations (Attachment 2) and encumbrance
carryovers reflect City commitments to projects, services or purchases that were
made in FY 2013/14 but were not completed, fulfilled, or paid for by the end of the
fiscal year. The unexpended funds from FY 2013/2014 remain available but
Council approval is needed to re-appropriate them for use in the following fiscal
year (since technically all appropriations lapse at the end of the fiscal year). An
item is place on the encumbrance carryover list if a purchase order and/or contract
has been issued to a specific vendor for the item. Items are place on the
continuing appropriations list when a purchase order or contract has not been
issued but the funds were budgeted for a specific purpose. When the Council
originally approves a budget for a project, all funds needed might be budgeted
336
although the timeframe to complete the project may actually extend into the next
fiscal year.
General Fund encumbrance carryovers total approximately $12,600 and estimated
General Fund continuing appropriations total $506,650.
Next Steps
Upon adoption of the FY 2014/2015 Budget, staff will revise the Proposed Budget
to include items approved during the June 17, 2014 Council meeting and print and
distribute the final adopted budget.
ALTERNATIVES:
Council may further adjust the various appropriations.
Report prepared by: Rita Conrad, Finance Director
Report approved for submission by: Frank J. Spevacek, City Manager
Attachments: 1. Appropriations Limitation Calculation (Gann Limit)
2. FY 2013/2014 Continuing Appropriations/Encumbrances
337
338
RESOLUTION NO. 2014 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
APPROPRIATION LIMIT FOR FISCAL YEAR 2014/2015 AND
APPROVING A BUDGET FOR FISCAL YEAR 2014/2015
WHEREAS, each year the La Quinta City Council adopts a Budget for Revenues
and Expenditures for the upcoming Fiscal Year; and
WHEREAS, the City Council desires to make provisions for a level of services
commensurate with the needs of the City; and
WHEREAS, the City Council has reviewed said budget and has had several
public meetings to receive public input; and
WHEREAS, the City Council has, after due deliberation and consideration, made
such amendments in the proposed budget as it considers desirable; and
WHEREAS, Section 7910 of the Government Code of the State of California
provides that each year the governing body of each local jurisdiction shall, by
resolution, establish its appropriations limit for the following fiscal year; and
WHEREAS, Section 7902(b) of the Government Code sets forth the method for
determining the said appropriations limit, to be based upon the limit applicable for the
prior fiscal year and adjusted for changes in the cost-of-living and in City population.
NOW, THEREFORE, BE IT RESOLVED by the City of La Quinta to adopt, as
follows:
SECTION 1. The appropriations limit for the City of La Quinta established in
accordance with Section 7902(b) of the California Government Code, for Fiscal Year
2014/2015 is $103,249,837.
SECTION 2. It is hereby found and determined that in compliance with
Government Code Section 7910, the documentation used in the determination of said
appropriations limit for Fiscal Year 2014/2015 was available to the public in the
Finance Department of the City and in the Office of the City Clerk at least fifteen days
prior to this date.
SECTION 3. The Fiscal Year 2014/2015 Budget which is on file with the City
Clerk is hereby approved.
339
Resolution No. 2014-
Budget Approval FY 2014/2015
Adopted June 17, 2014
Page 2
SECTION 4. The Successor Agency to the Redevelopment Agency agrees to
the reimbursement to the City for services performed by the City on behalf of the
Agency. Such reimbursement, as computed and included in the budget document,
shall include salary, salary related costs, direct costs, and indirect overhead costs.
SECTION 5. Continuing Appropriations which remain unspent and were
authorized by Council in Fiscal Year 2013/2014 are approved in the Fiscal Year
2014/2015 Budget in an amount not to exceed $694,468. Of this amount, $506,650
is in General Fund Continuing Appropriations and will be offset by $71,415 in grant
funding (Exhibit A).
SECTION 6. Encumbrances for Fiscal Year 2013/2014 for committed
appropriations are approved in the Fiscal Year 2014/2015 Budget in an amount not to
exceed $30,698. (Exhibit A).
SECTION 7. Budget adjustment procedures are approved as follows:
A. Additional appropriations and the transfer of cash or
unappropriated fund balance from one fund to another shall be
made only upon City Council approval.
B. Transfers of budgeted appropriations between divisions or capital
projects shall be made only upon City Council approval.
C. Transfers of budgeted appropriations between accounts within a
division or capital project may be made with the approval of the
City Manager or his designee.
D. Prior year budget continuing Appropriations and Encumbrances for
unexpended capital project appropriations remaining from
uncompleted prior year capital projects shall be made with City
Manager approval. These carry-over appropriations are for prior
year Council approved capital projects and shall not exceed the
approved project budget.
SECTION 8. The City Council, recognizing the need for maintaining Fund
Balance reserves has established a General Fund Cash Flow Reserve for Fiscal Year
2014/2015 of 8.25% of the Fiscal Year 2014/2015 budget which amounts to
$2,875,781 for Fiscal Year 2014/2015, and has also established a General Fund
Emergency Reserve for Fiscal Year 2014/2015 of 35% of the Fiscal Year 2014/2015
budget plus $4,000,000 which amounts to $16,581,543. The two aforementioned
reserve categories cannot be appropriated without the explicit approval of the City
Council.
340
Resolution No. 2014-
Budget Approval FY 2014/2015
Adopted June 17, 2014
Page 3
SECTION 9. The City Manager shall render a monthly report to the City Council
on the status of City operations as it relates to the approved budget and any
amendments thereto.
PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City
Council held on this 17th day of June, 2014, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
DON ADOLPH, Mayor
City of La Quinta, California
ATTEST:
__________________________________________
SUSAN MAYSELS, City Clerk
City of La Quinta, California
(SEAL)
APPROVED AS TO FORM:
______________________________________
M. KATHERINE JENSON, City Attorney
City of La Quinta, California
341
342
EXHIBIT A
343
344
345
346
AGENDA CATEGORY:
June 17, 2014
CITY/ SA / HA / FA MEETING DATE:
BUSINESS SESSION:
2
INTERVIEWS AND APPOINTMENTS OF
ITEM TITLE:
CONSENT CALENDAR:
RESIDENTS TO VARIOUS CITY BOARDS AND
COMMISSIONS
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Make appointments to fill vacancies on Boards and Commissions for three-year terms.
EXECUTIVE SUMMARY:
The City sponsors a number of boards, commissions and committees, which
involve public participation and membership.
The Community Services Commission, Architectural & Landscaping Review
Board, Planning Commission, Investment Advisory Board, Historic Preservation
Commission, Housing Commission and the Palm Springs International Airport
Commission all have members whose terms are expiring.
The City advertised for applicants to fill the expiring positions and received 20
applications (Attachment 1).
The City Council will interview and appoint applicants to the vacancies by ballot
(Attachment 2).
Recruitment will continue for the Housing Commission and Historic Preservation
Commission as no applications were received.
FISCAL IMPACT:
The following Council-approved amounts (per member, per meeting attended) are
included in the Fiscal Year 2014/15 Budget:
Community Services Commission $75
Architectural & Landscaping Review Board $75
Planning Commission $100
Investment Advisory Board $75
Palm Springs Airport Commission $75
347
BACKGROUND/ANALYSIS:
All existing Board and Commission Members whose terms were expiring this year, as
well as applicants from the last round of appointments who were not seated, were e-
mailed and invited to reapply. The deadline for application submittal was June 2, 2014.
The following applicants replied by the deadline:
COMMUNITY SERVICES COMMISSION: (three vacancies)
Rosemary Anaya Linda Hagood
Mark L. Johnson Arthur Lambrose
Heather Engel Paula Kay Simonds
ARCHITECTURAL & LANDSCAPING REVIEW BOARD (one vacancy)
Kevin McCune
PLANNING COMMISSION (three vacancies)
Phillip Bettencourt Kathleen Fitzpatrick
Frank Blum Javier Lopez
Mike Carl Andrea Spirtos
INVESTMENT ADVISORY BOARD (one vacancy)
Jennifer Donais
Ronald Villa
PALM SPRINGS INTERNATIONAL AIRPORT COMMISSION one vacancy)
(
Tina Bartel Steven Rosen
Douglas Fioresi Robert Teal
Lawrence Ponce
Several changes to the Board and Commission chapters of the Municipal Code were
adopted by Ordinance 516, which took effect on August 16, 2013. Term rotations,
which limit service on any one board/commission to six consecutive years, now apply.
ALTERNATIVE:
Delay appointments to one or more positions, direct staff to continue to accept
applications and set a new deadline date for submissions.
Report prepared by: Susan Maysels, City Clerk
Report approved for submission by: Frank J. Spevacek, City Manager
Attachments: 1. Applications
2. Ballots
348
AGENDA CATEGORY:
June 17, 2014
CITY / SA / HA / FA MEETING DATE:
BUSINESS SESSION: 3
APPROVE PLANS, SPECIFICATIONS AND
ITEM TITLE:
CONSENT CALENDAR:
DMFHMDDQŬR DRSHL@SD @MC @CUDQSHRD ENQ AHC
PHASE II OF THE SILVERROCK GOLF COURSE
STUDY SESSION:
RESTORATION PROJECT
PUBLIC HEARING:
RECOMMENDED ACTION:
Approve the plans, specifications and enginddqŬr drshl`sd: `tsgnqhyd rs`ee sn nas`hm
bids for Phase II of the SilverRock Golf Course Restoration project; and authorize
sgd BhsxŬr fnke bntqrd nodq`snq+ K`mcl`qj Fnke+ sn oqd,otqbg`rd sgd qdpthqdc stqe sn
ensure availability.
EXECUTIVE SUMMARY:
In order to restore capacity to the Coachella Canal within SilverRock Resort,
the Coachella Valley Water District (CVWD) is constructing a parallel canal
just west of the existing canal.
In accordance with the license agreement with the United States Bureau of
Reclamation which is required to construct the Arnold Palmer Course at
SilverRock Resort (Course) adjacent to the Canal, the City is required to
relocate and/or modify golf improvemensr sg`s bnmekhbs vhsg BUVCŬr o`q`kkdk
canal project.
Lnchehb`shnmr sn sgd BntqrdŬr l`hm hrrigation system were completed in the
spring of 2014. This project entails reconstructing the Course to
accommodate the relocated Canal and involves grading, irrigation,
landscaping and fine grading/shaping of the impacted Course areas.
The plans, specifications, and estimates (PS&E) are now complete and
qdbnlldmcdc enq Bhsx BntmbhkŬr `ooqnual for advertisement for bid.
349
FISCAL IMPACT:
The following table presents the budget for the Course Irrigation Relocation (Phase
I) and Course Restoration (Phase II) projects:
BUDGET LINE ITEM BUDGET
Phase I Construction - Irrigation $ 522,069
Relocation Project:
Phase II Construction - Golf $1,852,000
Restoration:
Professional: $ 10,000
Technical (Insp/Test/Survey):$ 30,000
Contingency: $ 185,200
TOTAL BUDGET: $ 2,599,269
The original 2012 budget for the Phase II improvements was $1,285,000. This
budget anticipated that only those areas impacted by the relocated Canal would be
repaired. However, Arnold Palmer Golf Design Company (APDC) determined that
additional improvements were required to m`hms`hm sgd BntqrdŬr fnke ok`x rsq`sdfx-
This doubled the area that required improvements and increased the improvement
costs (this does not affect the Phase I work). The total 2012 budget was
$1,707,000; the revised budget is $2,599,269, which is an increase of $892,269.
Proceeds from the 2002 former redevelopment agency bonds will fund these
improvements.
In addition to the Phase II improvements, APDC has included modifications to the
th
10 hole bunker which is estimated to cost $125,000. These changes would
address an ongoing maintenance issue, replacing bunker sand after major
windstorms. Landmark Golf, the Course operator, indicates that the annual sand
replacement cost is $3,000. These bunker improvements will be bid as an additive
alternate and would be considered with the award recommendation in July 2014.
Landmark Golf also recommends that the City pre-purchase the required turf to
ensure availability of the specified sod in late September. Landmark Golf has
received a quote from West Coast Turf of $144,160 for the 424,000 square feet
of specialty sod that will be required. This cost is part of the Phase II improvement
budget. If approved by City Council, Landmark Golf will order the sod under its
Golf Course Management Agreement and cnnqchm`sd cdkhudqx vhsg sgd BhsxŬr fnke
contractor.
BACKGROUND/ANALYSIS:
On May 21, 2013, the City Council selected the Parallel Canal Option, which
involves CVWD constructing a new canal approximately 41 feet west of the
350
existing canal within the United States Atqd`t ne Qdbk`l`shnmŬr d`rdldms
(Attachment 1). In order to accommodate this work, the City was required to
relocate the golf course irrigation system and to subsequently restore the Course
hlo`bsdc ax sgd qdknb`shnm oqnidbs- BUVCŬr contractor is currently constructing
the new canal, which has to be operational no later than September 1, 2014.
CVWD will then abandon the old canal, backfill it, and bring it up to the grade of
sgd Bntqrd- Sgd BhsxŬr bnmsq`bsnq vhkk sgdm restore the Course (the Phase II effort).
On February 18, 2014, the City retained APCD to redesign the five golf holes that
will be impacted. This was necessary in order to maintain the Arnold Palmer
Signature Course branding. In order to maintain the strategy and playability,
@OBCŬr cdrhfm hmbktcdr lnchexhmf sgd e`hqways, native areas, and bunkering in
addition to restoring the old Canal right-of-way (Attachment 2). These
modifications were not known when the initial budget of $1,285,000 to restore the
Course was prepared in 2012.
The plans and specifications are now complete and ready for approval and available
in the Public Works Department. The construction contract will be on a tight time
table in order to complete the improvements and overseed the Course by October
2014. Contingent uonm Bhsx BntmbhkŬr `ooqnu`k sn `cudqshrd sgd oqnidbs nm Itmd
17, 2014, the following is the proposed schedule:
City Council Bid Authorization June 17, 2014
Bid Period June 17, through July 10, 2014
City Council Considers Award July 15, 2014
Construction August throughOctober 2014
Accept Improvements November 2014
ALTERNATIVES:
The City could restore only those areas that are in the old canal right-of-way;
however, this would: (1) not maintain the course as an Arnold Palmer Signature
Course and (2) delay the reconstruction process because new plans and
specifications would need to be prepared. The alternative is therefore not
recommended.
Report prepared by: Bryan McKinney, Principal Engineer
Report approved for submission by: Timothy R. Jonasson, P.E.
Public Works Director/City Engineer
Attachments: 1. Non-subsided Portion of Coachella Canal
2. Sample Rendering of Reconstructed Hole No. 12
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352
ATTACHMENT 1
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ATTACHMENT 2
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356
June 17, 2014
AGENDA CATEGORY:
CITY / SA/ HA/ FA MEETING DATE:
APPOINT VOTING DELEGATE AND
ITEM TITLE:
BUSINESS SESSION:
4
ALTERNATE TO THE 2014 LEAGUE OF CALIFORNIA
CITIES ANNUAL CONFERENCE
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Appoint one member of the City Council as the voting delegate and one member as
an alternate to the 2014 League of California Cities Annual Conference.
EXECUTIVE SUMMARY:
The 2014 League of California Cities (League) Annual Conference will be
held September 3-5, 2014 at the Los Angeles Convention Center.
Sgd Kd`ftdŬr @mmt`k Atrhmdrr Lddshmf+ gdkc ctqhmf sgd Fdmdq`k @rrdlakx+
takes action on resolutions that establish League policy.
In order to vote, Council must appoint a voting delegate. An alternate voting
delegate may also be appointed to ensure the City is represented in the event
the designated delegate is unable to serve.
The League requires either a resolution or completion of the attached form
(Attachment 1) to identify the voting delegate/alternate.
FISCAL IMPACT:
None.
BACKGROUND/ANALYSIS:
The League is an association of California city officials who work together to
enhance their knowledge and skills, exchange information, and combine resources
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so that they may influence policy decisions that affect cities. At the annual
business meeting, the membership considers and takes action on resolutions that
establish League policy.
Council Members Evans and Henderson have indicated that they plan to attend the
annual conference. The attached correspondence includes a voting
delegate/alternate form to be submitted to the League.
ALTERNATIVES:
As it is crucial to have City representation, staff does not recommend an
alternative.
Report prepared by: Wanda P. Wise-Latta, Executive Assistant
Report approved for submission by: Frank J. Spevacek, City Manager
Attachment: 1. League correspondence
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Reports/Informational Items: ______________
21
Report to La Quinta City Council
Palm Springs International Airport Commission Meeting
May 21, 2014
Appointment expiration:
My appointment as a Commissioner expires on June 30,
2014, and I would enjoy being re-appointed. It has been an interesting 3 years seeing
our community develop through the perspective of the airport.
Budget:
Budget performance has been excellent, with only minor variances. There was some
increase in labor costs, as the earlier furloughs expired, but hundreds of hours of
volunteer hours allowed good productivity. Also, the Presidential visits cost us in
overtime for staff support and for police and fire support.
Revenue exceeded plan due to strong leased parking demand.
We have met our goal of $7 million in unrestricted cash.
Passenger Activity:
May set another record for passenger activity, with 11.8% growth from last year.
Management continues to enjoy the growth, while being cautious and focusing on core
strengths and restraint.
Car Rental Fees:
airports. We have been fortunate in seeing higher percentages of passengers renting
vehicles. This is likely due to the valley-wide draw of tourists, requiring the mobility of a
car. Last year saw nearly 200,000 car rentals.
Car rental concession contracts expire this year, and are due for renewal/expiration of
their 3-year terms. The Staff negotiated terms for the next 3 years, and submitted the
new agreements to the Commission for recommendation to the City Council.
In summary, the new agreements include: an adjusted formula netting an additional
st
$250,000 (minimum) in the 1 year, and further increases in years 2 and 3. We chose to
extend the agreement for only 3 years, rather than 5, because PSP is planning to have
a significantly larger and improved car rental facility in 3 years. The design for this is
now in environmental review.
This is similar to the agreement used by LAX with its car rental agencies.
The Commission voted, unanimously, to recommend approval of the amendments by
the Palm Springs City Council.
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Perimeter Security:
Recently, in San Jose, CA, a teenager successfully stowed-away in the wheel well of a
passenger jet, and survived the flight to Hawaii. Studies of this incursion show that it
was successful only due to human inattention. Video camera
s
more advanced technologies (one of only 3 or 4 airports in the nation), and is not
dependent on the attention of a human.
Old Control Tower:
Asbestos abatement continues in the previous control tower. It was hoped that the
enclosure could be salvaged, and donated to the Palm Springs Air Museum, but the
structure has proven to be too weak to survive the transport. It will likely collapse as
soon as we attempt to lift it. It will be scrapped as removal progresses.
The next meeting is scheduled for May 21, 2014.
Submitted: _________________________
Robert G. Teal, Commissioner
Palm Springs International Airport
Email: bob@teal.us.com
Phone: 760-899-4171
366
DEPARTMENTREPORT:1
TO: Honorable Mayor and Members of the City Council
FROM: Chris Escobedo, Assistant to City Manager
DATE: June 17, 2014
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On May 27, 2014, the City received notifhb`shnm eqnl Q`kogŬr Fqnbdqx Bnlo`mx
that the store located at 50-929 Washington Street in the La Quinta Village
Shopping Center would be closed due to several years of underperformance. Since
that time, staff visited the store and spokd sn Q`kogŬr qdoqdrdms`shud+ Jdmcq` Cnxdk+
Vice President of Publications and Government Affairs who indicated the closure of
the store is final.
Staff spoke with the property manager for the La Quinta Village Shopping Center
who has retained a commercial broker to sdbtqd ` mdv sdm`ms sn qdok`bd Q`kogŬr-
They are currently pursuing two leads, but nothing is definitive at this time. The
property manager asked about reimbursements via a sales tax or property tax
rebate. Historically, the City has not provided such reimbursement for a grocery
store because of the low amount of sales tax generated (generally $35,000 to
$50,000 per annum). However, staff conveyed the ability to streamline and
expedite the permit process, and once the property manager confirms a new
tenant, he will have them contact the City.
In addition, staff conducted market research to identify potential grocers to replace
Q`kogŬr- @ooqnwhl`sdkx ehud companies are interested in opening new locations in
California in 2014 and 2015. New demographic and market area packets are being
generated and will be sent to the grocers to generate additional interest at the site.
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3
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DEPARTMENTREPORT:4
TO: Honorable Mayor and Members of the City Council
FROM: Edie Hylton, Community Services Director
DATE: June 17, 2014
SUBJECT: COMMUNITY SERVICES DEPARTMENT REPORT FOR MAY 2014
Upcoming events of the Community Services Department for July 2014:
Daily Activities Social Bridge
Mah Jongg
Quilters
Fitness Morning Workout
Mat Pilates
Arthritis Tai Chi
Tai Chi Chuan
Tai Chi Intermediate
Yoga for Health
Chair Yoga
Flex Yoga
Leisure Social Dance Fusion
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Sports Rojas Taekwondo
*Rojas Martial Arts
Events July Luncheon
*Movie Nights at Fritz Burns Pool
th of July Free Swim at Fritz Burns Pool
*4
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Community Services Department
Attendance Report for May 2014
Summary Sheet
Sessions Per Month
Program20142013Variance20142013
Leisure Classes95101-64836
Special Events565056520
Sports558548102422
Senior Center252286-347751
Total1,470935535151109
Senior Activies/Services (FREE)
Senior Center 397461-644628
Total397461-644628
Sports User Groups
La Quinta Park
AYSO
150100501725
La Quinta Youth & Sports10010001623
Friday Night Lights5005090
Desert Boot Camp505001011
Sports Complex
La Quinta Youth & Sports70070002323
Colonel Mitchell Paige
Friday Night Lights4000400200
Facility/Park Rentals
Senior Center
(Private Party)0400-40002
Museum
Meeting Room50250-20015
Library
(Sunday Church)300300044
Classroom60060001212
Civic Center Campus
(Private Party)5050011
Park Rentals
La Quinta Park 100100022
Fritz Burns Park150015030
Total2,7002,65050118108
Total Programs4,5674,046521315245
Volunteer Hours
Senior Center 22719037
Total Volunteer Hours22719037
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Community Services Department
Program Report for May 2014
2014201320142013
ParticipantsParticipantsVarianceMeetingsMeetings
Leisure Classes
Taekwondo 4 - 8 (Beg.)2426-288
Taekwondo 4 - 8 (Inter.)1637-2188
Taekwondo 9 & up2017388
Taekwondo Drop-ins80840
Rojas Martial Arts 4 - up2102180
Dance, Play & Pretend69-344
Totals958964028
2014201320142013
ParticipantsParticipantsVarianceMeetingsMeetings
Special Events
Moonlight Movies56521035522
Totals56521035522
2014201320142013
ParticipantsParticipantsVarianceMeetingsMeetings
Sports
Open Gym Basketball187240-53812
Open Gym Volleyball114744085
Nature Walk @ Bear Creek Trail812-411
Disc Golf Tournament @ L.Q. Park2022-211
Golf Tour, Escena Golf Club3941-211
Y Rookies T-Ball40251542
Y Tri (youth triathlon)150175-2511
Totals558589-312423
Community Services Totals1,2188883306653
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Senior Center Program Report for May 2014
ParticipationParticipationVarianceMeetingsMeetings
2014201320142013
Senior Activities/Social Services (Free)
Senior Activities253191623619
Senior Social Services144270-126109
Senior Activities/Services Total397461-644628
Volunteers
Senior Center2429-5n/an/a
Hours22719037n/an/a
Senior Classes/ Programs
Fitness
Chair Yoga/Yoga for Health45-184
Exercise (Morning Workout) 2329-61211
Flex Yoga1601640
Mat Pilates1016-61211
Drop-in Participation*44044230
Leisure
Let's Make Jewelry156944
Social Dance Fusion44044
May Luncheon7465911
Open Game Play
Bridge: Social & Party32112-8058
Mah Jongg3039-944
Senior Classes/Programs Total252276-247747
SENIOR CENTER TOTAL649737-8812375
*We accept drop-ins for all classes listed under Fitness.
A decrease in the total participation number due to a reduction in classes/programs offered
due to construction.
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Community Services Department
Monthly Revenue Report for May 2014
Monthly Revenue - Facility Rentals20142013Variance
Library 1,281.00$ $ -$ 1,281.00
Museum$ -$ 812.50$ (812.50)
Senior Center *$ -$ 1,887.50$ (1,887.50)
Parks$ 605.00$ 405.00$ 200.00
Sports Fields$ 600.00$ 1,177.50$ (577.50)
Monthly Facility Revenue $ 2,486.00$ 4,282.50$ (1,796.50)
Monthly Revenue
Senior Center**$ 1,637.00$ 2,566.50$ (929.50)
Community Services$ 7,408.00$ 8,494.00$ (1,086.00)
Total Revenue$ 9,045.00$ 11,060.50$ (2,015.50)
Revenue Year to Date
Facility Revenue$ 35,761.00$ 33,588.50$ 2,172.50
Senior Center$ 36,002.50$ 39,654.00$ (3,651.50)
Community Services$ 67,970.00$ 58,529.00$ 9,441.00
Total Revenue to Date$ 139,733.50$ 131,771.50$ 7,962.00
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Community Services Updates
May 2014
The surface for the interactive water feature at La Quinta Park has been replaced. The
water feature opened on May 16, 2014.
The vandalized benches at the top of the Bear Creek Trail have been replaced. All four
rest stops on the Bear Creek Trail now have new benches and trash cans. Staff is
planning to replace all four rest stop drinking fountains within the next two months. The
new drinking fountains will have a dog drinking fountain attachment similar to the
drinking fountains located in the dog parks.
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La Quinta Community Fitness Center Counts for May 2014
Memberships
Rubys SapphiresDiamonds Walk-ins Daily Daily
Day
SoldSoldSoldSoldSoldCountsTotals
55
1 5248
137
2 32132
38
3 236
0
4
221
5 92210
156
6 37146
206
7 45197
152
8 54143
142
9 511135
63
10 63
0
11
184
12 125167
157
13 41152
185
14 43178
150
15 611142
154
16 52147
49
17 346
0
18
102
19 10488
122
20 24116
169
21 3166
140
22 41135
153
23 87138
83
24 875
0
25
0
26
212
27 131198
188
28 65177
151
29 81142
2
30 2
2
31 2
AVG5.541003.05132.38100.963
TTL1332006131773373
The Gems symbolize the Wellness System Fees
Ruby Level = $50 (Self-Directed Program; One Year-Key Use)
Sapphire Level = $175 (All Ruby Level Benefits; Pre-Fitness Assessment Test; Custom
Diamond Level = $295 (All Ruby and Sapphire Level Benefits; Three Additional Personal
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membership cards scanned by us.
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DEPARTMENTREPORT:5
TO: Honorable Mayor and Members of the City Council
FROM: Timothy R. Jonasson, P.E., Public Works Director/City Engineer
DATE: June 17, 2014
SUBJECT: PUBLIC WORKS DEPARTMENT REPORT FOR MAY 2014
1. Staff will be accepting a total of 15 students into its Summer Internship Program,
which will run for six weeks starting June 15 and ending July 25, 2014. A total of
eight classes will be taught by Public Works staff, and a weekly brown bag lunch
hosted by the City Manager, City Attorney, and department directors will also be
offered. Class topics and activities will include: entitlement and plan check process;
capital improvement program process; field visits to project locations; GIS and
AutoCAD mapping systems; traffic signal operations; equipment operations; and
maintenance field work such as filling potholes and graffiti removal. Each student
will average 30 volunteer hours this summer. A graduation luncheon is scheduled
for July 29, 2014.
2. For the month of May, the total for all maintenance expenditures recorded in
GORequest was $130,466 with traffic signals, street sweeping, irrigation work, and
debris removal being among the highest tasks in terms of cost. Public Works
maintenance workers recorded 1,470 task hours associated with this work. Traffic
signal maintenance included work done at the Washington Street/Avenue 50 traffic
signal (i.e., replacement of signal cabinet and all damaged components), which
totaled over $40,000. A detailed breakdown of tasks and associated costs is
presented in the attached pie chart (Attachment 1).
3. Work continues on the County’s Fred Waring Drive widening project, between
Adams Street and Port Maria Road. Traffic has been re-routed to the north side
during construction of the south side improvements. The south side asphalt has
been removed and the contractor is currently preparing to pour the curb and gutter.
The contractor is continuing to work on the south side soundwalls and culvert drain.
The contactor has also begun to install the irrigation and electrical mainlines in the
center median island in preparation for the median landscape. Pedestrian access
will be restricted throughout construction due to the removal of sidewalk on the south
381
side of the street. Ultimately, Fred Waring Drive will be three lanes in each
direction. The project is on schedule for completion in August 2014.
4. The contractor for the La Quinta Wellness Center project has completed demolition
of the interior of the building. City staff has returned comments on the building plans
and the architect is addressing them. The portions of the facility not affected by the
project will remain open during construction, which is scheduled to be completed by
early 2015.
5. The contractor for the La Quinta Park Miscellaneous Americans with Disabilities Act
Improvements has removed and replaced the west side sidewalk near the
playground area, and is currently removing and replacing a portion of the sidewalk
and access ramps near the concessions stand. The project is on schedule for
completion in mid to late June 2014.
6. The City Hall Lighting Conversion project and City Hall Heating, Ventilation and Air
Condition System 1 & 2 Replacement project are both complete and operational,
and were accepted by City Council on June 3, 2014.
Attachment: 1. Total Maintenance Cost pie chart
382
ATTACHMENT 1
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