2015 02 17 CCCITY COUNCIL
AGENDA
CITY HALL COUNCIL CHAMBERS
78-495 Calle Tampico, La Quinta
REGULAR MEETING ON TUESDAY, FEBRUARY 17, 2015
3:30 P.M. CLOSED SESSION | 4:00 P.M. OPEN SESSION
CALL TO ORDER
ROLL CALL: Councilmembers: Franklin, Osborne, Peña, Radi, Mayor Evans
PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA
At this time, members of the public may address the City Council on any matter not listed
on the agenda. 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
CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO
Њ͵
GOVERNMENT CODE SECTION 54956.8 FOR PROPERTIES LOCATED IN
PROXIMITY TO CALLE TAMPICO AND AVENIDA LA FONDA, WEST OF THE
LA QUINTA PUBLIC LIBRARY AND WELLNESS CENTER (APNS: 770-123-
011, 770-123-012 AND 770-124-010)
CITY NEGOTIATOR: FRANK J. SPEVACEK, CITY MANAGER
NEGOTIATING PARTY: MARVIN INVESTMENTS, INC.
UNDER CONSIDERATION: POTENTIAL TERMS AND CONDITIONS OF
ACQUISITION AND/OR DISPOSITION OF PROPERTY
QDBDRR SN BKNRDC RDRRHNM
RECONVENE AT 4:00 P.M.
CITY COUNCIL AGENDA 1
February 17, 2015
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
PAGE
1. COUNTY OPERATIONS UPDATE BY SUPERVISOR JOHN BENOIT
2. CHAMBER OF COMMERCE PRESENTATION
7
CONSENT CALENDAR
NOTE: Consent Calendar items are routine in nature and can be approved by one motion.
1. APPROVE MINUTES OF FEBRUARY 3, 2015
11
2. APPROVE DEMAND REGISTERS DATED JANUARY 30 AND
19
FEBRUARY 6, 2015
3. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORTS FOR
37
THE MONTH OF JANUARY 2015
4. APPROVE FISCAL YEAR 2014/2015 MID-YEAR BUDGET
45
ADJUSTMENTS
5. DENIAL OF CLAIM FOR DAMAGES FILED BY RICHARD AND
49
KRISTEN SIMONS; DATE OF LOSS SEPTEMBER 8, 2014
6. DENIAL OF CLAIM FOR DAMAGES FILED BY RICARDO VEGA;
51
DATE OF LOSS SEPTEMBER 8, 2014
7. DENIAL OF CLAIM FOR DAMAGES FILED BY GUADALUPE
53
ALVERIZ; DATE OF LOSS SEPTEMBER 8, 2014
8. DENIAL OF CLAIM FOR DAMAGES FILED BY DALE WISSMAN;
55
DATE OF LOSS SEPTEMBER 8, 2014
CITY COUNCIL AGENDA 2
February 17, 2015
PAGE
9. APPROVE OVERNIGHT TRAVEL FOR PUBLIC WORKS
57
DIRECTOR/CITY ENGINEER TO ATTEND LEAGUE OF
CALIFORNIA CITIES PUBLIC WORKS OFFICERS INSTITUTE ON
MARCH 25-27, 2015
10. APPROVE CONTRACT CHANGE ORDERS AND SETTLEMENT
59
AGREEMENT WITH ARCH INSURANCE COMPANY, ACCEPT THE
ADAMS STREET BRIDGE PROJECT, AND APPROPRIATE FUNDS
FROM TRANSPORTATION DEVELOPMENT IMPACT FEES
BUSINESS SESSION
1. APPROVE MEMORANDUM OF UNDERSTANDING AMONG
71
LLC, AND THE CITY OF LA QUINTA FOR ADAMS STREET
SIGNAL AND STREET IMPROVEMENT PROJECT
STUDY SESSION
1. CONTINUED DISCUSSION OF RESERVES POLICY
101
REPORTS AND INFORMATIONAL ITEMS
1. CVAG COACHELLA VALLEY CONSERVATION COMMISSION
(Evans)
2. CVAG ENERGY & ENVIRONMENTAL RESOURCES COMMITTEE
(Evans)
3. CVAG EXECUTIVE COMMITTEE
(Evans)
4. GREATER PALM SPRINGS CONVENTION & VISITORS BUREAU
(Evans)
5. LEAGUE OF CALIFORNIA CITIES DELEGATE
(Evans)
6. SO. CALIFORNIA ASSOCIATION OF GOVERNMENTS
(Evans)
7. COACHELLA VALLEY WATER DISTRICT POLICY COMMITTEE
(Evans)
8. CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
(Franklin)
9. COACHELLA VALLEY MOUNTAINS CONSERVANCY
(Franklin)
10. JACQUELINE COCHRAN REGIONAL AIRPORT AUTHORITY
(Franklin)
11. SUNLINE TRANSIT AGENCY
(Franklin)
12. CVAG PUBLIC SAFETY COMMITTEE
(Osborne)
13. CVAG VALLEY-WIDE HOMELESSNESS COMMITTEE
(Osborne)
14. DESERT SANDS SCHOOL DISTRICT COMMITTEE
(Osborne & Franklin)
15.
(Osborne)
16. ANIMAL CAMPUS COMMISSION
(Pena)
17. CIVIC CENTER ART PURCHASE COMMITTEE
(Pena and Radi)
18. COACHELLA VALLEY ECONOMIC PARTNERSHIP
(Radi)
19. CVAG TRANSPORTATION COMMITTEE
(Radi)
CITY COUNCIL AGENDA 3
February 17, 2015
PAGE
20. CHAMBER OF COMMERCE INFO EXCHANGE COMMITTEE
(Radi)
21. PALM SPRINGS AIRPORT COMMISSION
113
22. INVESTMENT ADVISORY BOARD MEETING MINUTES DATED
115
NOVEMBER 12, 2014 AND DECEMBER 10, 2014
23. COMMUNITY SERVICES COMMISSION MEETING MINUTES
121
DATED DECEMBER 8, 2014
DEPARTMENTAL REPORTS
1. CITY MANAGER
2. CITY ATTORNEY
3. CITY CLERK UPCOMING EVENTS AND CITY CALENDAR
125
4. COMMUNITY DEVELOPMENT - TRAKIT SOFTWARE
129
IMPLEMENTATION AND GARAGE SALE PERMITS
5. COMMUNITY SERVICES MONTHLY REPORT / JANUARY 2015
133
6. PUBLIC WORKS MONTHLY REPORT / JANUARY 2015
141
PUBLIC HEARINGS NONE
ADJOURNMENT
*********************************
The next regular meeting of the City Council will be held on March 3, 2015
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, Teresa Thompson, Deputy City Clerk, of the City of La Quinta, do hereby declare
that the foregoing Agenda for the La Quinta City Council meeting was posted on
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 February 13, 2015.
DATED: February 13, 2015
Teresa Thompson, Deputy City Clerk
City of La Quinta, California
CITY COUNCIL AGENDA 4
February 17, 2015
Public Notices
The La Quinta City Council Chamber is handicapped accessible. If special
777-7103, twenty-four (24) hours in advance of the meeting and accommodations
will be made.
If special electronic equipment is needed to make presentations to the City Council,
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 5
February 17, 2015
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CITY COUNCIL
MINUTES
TUESDAY, FEBRUARY 3, 2015
A regular meeting of the La Quinta City Council was called to order at 3:30 p.m. by
Mayor Evans.
PRESENT: Councilmembers Franklin, Osborne, Peña, Radi, Mayor Evans
ABSENT: None
PUBLIC COMMENT ON MATTERS NOT ON AGENDA None
CLOSED SESSION
1.CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO
GOVERNMENT CODE SECTION 54956.8 FOR PROPERTY LOCATED IN
PROXIMITY TO AVENIDA MONTEZUMA, AVENIDA VILLA AND AVENIDA
NAVARRO (APN: 773-076-018).
CITY NEGOTIATOR: EDIE HYLTON, DEPUTY CITY MANAGER
NEGOTIATING PARTY: CITY OF LA QUINTA AND ALTHEA PROPERTIES
UNDER CONSIDERATION: PRICE AND TERMS OF PAYMENT
MAYOR EVANS RECESSED TO CLOSED SESSION AT 3:31 P.M.
MAYOR EVANS RECONVENED THE CITY COUNCIL MEETING AT 4:02 P.M.
WITH ALL MEMBERS PRESENT. NO ACTIONS WERE TAKEN IN CLOSED
SESSION THAT REQUIRES REPORTING PURSUANT TO GOVERNMENT
CODE SECTION 54957.1 (BROWN ACT).
Mayor Evans led the audience in the pledge of allegiance.
PUBLIC COMMENT ON MATTERS NOT ON AGENDA
PUBLIC SPEAKER: Patrick Swarthout, La Quinta Mr. Swarthout described a
recent dog attack on his wife and dog causing injury to both that required medical
treatment and stitches. He said he believes the dog should be euthanized to
prevent another attack.
Councilmembers asked Community Development Director Johnson to review the
incident with Animal Control Officers and provide a memo to the Council
summarizing the event.
CITY COUNCIL MINUTES 1
FEBRUARY 3, 2015
PUBLIC SPEAKER: Allen Worthy, La Quinta Mr. Worthy said he is homeless and
living on the streets of Venice Beach and the desert. He requested City Attorney
assistance with his case against the City of Palm Springs.
PUBLIC SPEAKER: Shanden Sessions, La Quinta Mr. Sessions said he represents
Organic Solutions and is interested in becoming a medical marijuana provider in La
Quinta. He stated that his 3,285 La Quinta customers plus customers to the east
would benefit by not having to drive to Palm Springs for their medication.
City Attorney Ihrke explained the current law in La Quinta outlawing marijuana
dispensaries and the December 16, 2014 federal law preventing the enforcement
of federal laws against the sale of medical marijuana in states that permit medical
marijuana sales. He explained the steps necessary to change the local law,should
Council so choose.
PUBLIC SPEAKER: Nolan Sparks, Palm Desert Mr. Sparks thanked the Council
for their support on behalf of the YMCA.
CONFIRMATION OF AGENDA
Mayor Evans informed the Council that staff requested the Study Session item be
heard before the Business Session item.
Councilmember Franklin requested that Consent Calendar Item Nos. 3 and 4 be
pulled for discussion and separate vote.
Council concurred.
ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS None
CONSENT CALENDAR
1.APPROVE MINUTES OF JANUARY 10 AND JANUARY 20, 2015
2.APPROVE DEMAND REGISTERS DATED JANUARY 16 AND JANUARY 23,
2015
3.pulled for discussion by Councilmember Franklin >> APPROVE PLANS,
ADVERTISEMENT FOR BIDS FOR PARKWAY LANDSCAPING DESIGN FOR
CITY OWNED PROPERTIES ALONG AVENUE 52 NEAR CALLE AMIGO
CITY COUNCIL MINUTES 2
FEBRUARY 3, 2015
4.pulled for discussion by Councilmember Franklin >> ADOPT RESOLUTION
GRANTING CONDITIONAL APPROVAL OF AMENDED FINAL MAP AND
SUBDIVISION IMPROVEMENT AGREEMENTS ASSOCIATED WITH THE
MONTERRA DEVELOPMENT
\[RESOLUTION 2015-006\]
5.AUTHORIZE OVERNIGHT TRAVEL FOR TRAFFIC SIGNAL TECHNICIAN TO
ATTEND TRAINING MARCH 11-12, 2015 IN GLENDALE, ARIZONA
6.DENIAL OF CLAIM FOR DAMAGES FILED BY WILLIAM WALKER; DATE OF
LOSS SEPTEMBER 8, 2014
7.AUTHORIZE OVERNIGHT TRAVEL FOR FOUR MEMBERS OF THE PLANNING
COMMISSION AND THE COMMUNITY DEVELOPMENT DIRECTOR TO
ATTEND THE ANNUAL PLANNING COMMISSIONERS ACADEMY IN
NEWPORT BEACH, CALIFORNIA - MARCH 4-6, 2015
MOTION A motion was made and seconded by Councilmembers Pea/Radi to
ñ
approve Consent Calendar Item Nos. 1-2 and 5-7 as recommended. Motion passed
unanimously.
Regarding Item No. 3, in response to Councilmember Franklin, Public Works
Director Jonasson described the landscaping plans for the site and stated that if
needed, the lot could be accessed for parking.
PUBLIC SPEAKER: Steve Zabala, Mission Viejo Mr. Zabala spoke on behalf of
the project builders, Woodbridge Pacific Group. In response to Councilmember
Franklin, he explained that the map was amended
because it was desirable for the
association. The main entrance for the project is now the main Greg Norman
entrance. The access off Monroe Street will be for emergencies only. He said it
association.
MOTION A motion was made and seconded by Councilmembers Peña/Radi to
approved Consent Calendar Item Nos. 3 and 4 as recommended, with Item No. 4
adopting Resolution 2015-006. Motion passed unanimously.
STUDY SESSION
1.YEAR END FISCAL YEAR 2013/2014, MID YEAR 2014/2015 AND RESERVE
DISCUSSIONS
CITY COUNCIL MINUTES 3
FEBRUARY 3, 2015
Finance Director Conrad presented the staff report, which is on file in the City
Councilmember Osborne asked what the carryover was from Fiscal Year
2012/2013 into Fiscal Year 2013/2014. Ms. Conrad stated about $1 million.
Ms. Conrad stated there are three items to consider: the reserve for insurance
premium increases; amending the revenue budget; and an $80,000 request from
Community Development for temporary contract staffing.
Councilmembers discussed and commented on the presentation, expressed their
appreciation to the Investment Advisory Board for their hard work and review, and
had a consensus to hold another study session for further review and input from
City Manager Spevacek, who was absent.
Discussion included: possibility of redefining reserve policy; investigating better
ways to protect reserves; exploring contractual reserves for police/public safety
services; including capital and infrastructure reserves; unfunded pensions;
combining economic development and stabilization reserves; providing more
expense forecasting; concern with future prospect of state disallowing cities to
have independent contractors; noted that the state cannot do another triple flip
until bonds are paid off \[Proposition 57\]; definition of emergency reserves;
emergency reserve allocations; redefining earmarks for
county/state/federal takeaways; revisiting allocations with suggestion of moving
disaster funds to capital; participatory budget allowing community to submit
projects and vote on how money is used; review of council flexibility in
reallocating reserves; and the need for more reserves.
City Attorney Ihrke commented that there are currently some constitutional
protections for city sales, use, and property taxes, and there may be contractual
ways of protecting reserves; however, he said that placing reserves under
contractual protections means that the moneys can only be used for that
designated contractual use with a private third party. He added that no action can
be taken that is against public policy or would interfere with the legislative power
of a future city council, nor is anything absolute with respect to state legislation
impacting city revenues, but there are ways of providing a possible higher standard
of protection for reserves. He will do further research and get back to council.
MAYOR EVANS MOVED THE PUBLIC HEARING AGENDA ITEM UP, TO BE HEARD
AS CLOSE TO THE 5:00 P.M. PUBLISIZED HEARING TIME AS POSSIBLE.
CITY COUNCIL MINUTES 4
FEBRUARY 3, 2015
PUBLIC HEARINGS
1. ADOPT RESOLUTIONS TO APPROVE A SITE DEVELOPMENT PERMIT AND
TENTATIVE TRACT MAP TO ALLOW THE DEVELOPMENT OF 48 SINGLE
FAMILY HOMES AT ANDALUSIA, EAST OF MADISON STREET AND SOUTH
OF AVENUE 58
\[RESOLUTIONS 2015-007 AND 2015-008\]
Community Development Director Johnson presented the staff report, which is on
file in
Councilmembers discussed the timeline for installing landscaping along Madison
Street, Monroe Street and Avenue 60; parking pockets within the development;
emergency vehicle access; and consistency with the Specific Plan.
Mayor Evans declared the PUBLIC HEARING OPEN at 5:50 p.m.
PUBLIC SPEAKER: Nolan Sparks, Palm Desert Mr. Sparks spoke as a
representative of the developer, Coral Option I, LLC, saying the project is expected
to be a walkable environment, such as a campus, and a lock and leave property
for buyers from areas such as Orange County, Los Angeles County and the
Northwest. Sale prices will range from $800,000 to $1.1 million. He added that
landscaping along Avenue 60 is associated with a future project that is three to
five years away.
Mayor Evans declared the PUBLIC HEARING CLOSED at 5:57 p.m.
MOTION A motion was made and seconded by Councilmembers Franklin/Pea to
ñ
adopt RESOLUTION 2015-007 entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA,
CALIFORNIA, APPROVING SITE DEVELOPMENT PERMIT 2013-928,
ALLOWING THE DEVELOPMENT OF 48 SINGLE FAMILY HOMES
WITHIN THE ANDALUSIA PROJECT
Motion passed unanimously.
MOTION A motion was made and seconded by Councilmembers Franklin/Pea to
ñ
adopt RESOLUTION 2015-008 entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA,
CALIFORNIA, APPROVING TENTATIVE TRACT MAP 36524 LOCATED
WITHIN THE ANDALUSIA PROJECT, AT THE SOUTHWEST CORNER
OF AVENUE 58 AND MONROE STREET
Motion passed unanimously.
PUBLIC COMMENT ON MATTER NOT ON THE AGENDA:
CITY COUNCIL MINUTES 5
FEBRUARY 3, 2015
PUBLIC SPEAKER: Jennifer Carlson, Bermuda Dunes Ms. Carlson said the Up
with People organization is returning to the Coachella Valley March 16-23. They
will be raising money for the Ophelia Project with benefit concerts in Indio and
Palm Springs. She explained that the organization is looking for host families to
house their 110 international and out-of-town performers and provided the website
for further information, tickets and support: upwithpeople.org.
BUSINESS SESSION
1.RECEIVE AND FILE COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR
YEAR ENDED JUNE 30, 2014
Finance Director Conrad presented the staff report, which is on file in the City
Councilmembers discussed
ying
repayment, which is not intended; the requirement for Council action to remove the
; source of repayment to the civic center fund; financial
statement for the Housing and Financing Authority; monthly revenue from
Washington Street Apartments; payments to City, if any, for acting as an agent;
payment of interest on advances; possibility of reclassifying advances to
investments; unfunded pension liabilities; and Finance Department staff training on
the new software system, accounting webinars and overnight travel to key
seminars.
City Attorney Ihrke stated he will check whether City costs could be recouped
under the Improvement Act.
COUNCILMEMBER PEA LEFT THE MEETING AT 6:23 P.M.
Ñ
MOTION A motion was made and seconded by Councilmembers Radi/Franklin to
receive and file the Comprehensive Annual Financial Report for year ended June
30, 2014. Motion passed 4-0-1 (Pea absent).
ñ
REPORTS AND INFORMATIONAL ITEMS
entative for 2015, Mayor Evans reported on her participation in
the following organizations meeting:
GREATER PALM SPRINGS CONVENTION & VISITORS BUREAU
ve for 2015, Councilmember Franklin reported on her
participation in the following organizations meeting:
SUNLINE TRANSIT AGENCY
CITY COUNCIL MINUTES 6
FEBRUARY 3, 2015
representative for 2015, Councilmember Osborne reported on his
participation in the following organizations meetings:
CVAG VALLEY-WIDE HOMELESSNESS COMMITTEE
reported on his
participation in the following organizations meetings:
COACHELLA VALLEY ECONOMIC PARTNERSHIP
CVAG TRANSPORTATION COMMITTEE
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
DEPARTMENT REPORTS
Department Reports were received and filed. Copies are available in the City
Mayor Evans requested that staff attempt to complete the Municipal Code review
project in less than the anticipated 18 months.
Mayor Evans thanked the Riverside County
of its Thermal Station and commented on the dedication of the Officers to the City
and its residents.
Mayor Evans announced that the next Mayor and Council walk will be held on
Saturday, February 20 at 8:00 a.m., starting at La Quinta Park a great
opportunity to interact with the community. She also recognized the Museum for
setting a new record on guests; commented that the Chamber had a successful car
show event also on Saturday; encouraged more collaboration with community
organizations; and mentioned the State of the City will be held on Thursday,
February 5.
Councilmembers discussed the importance of questioning the claims, statements
and actions of outside agencies on whose boards they serve as La Quinta
La Quinta City staff. Councilmembers provided examples where agencies
requested approval for projects that had no ongoing funding source.
MAYOR EVANS RECESSED AGAIN BACK TO CLOSED SESSION AT 6:57
P.M.
CITY COUNCIL MINUTES 7
FEBRUARY 3, 2015
COUNCILMEMBER OSBORNE LEFT THE MEETING AT THE END OF THE
CLOSED SESSION.
MAYOR EVANS RECONVENED THE CITY COUNCIL MEETING AT 7:40 P.M.
WITH COUNCILMEMBERS FRANKLIN AND RADI PRESENT, AND
COUNCILMEMBERS OSBORNE AND PEA ABSENT. NO ACTIONS WERE
Ñ
TAKEN IN CLOSED SESSION THAT REQUIRES REPORTING PURSUANT TO
GOVERNMENT CODE SECTION 54957.1 (BROWN ACT).
ADJOURNMENT
There being no further business, a motion was made and seconded by
Councilmembers Franklin/Radi to adjourn at 7:41 p.m. Motion passed
unanimously.
Respectfully submitted,
SUSAN MAYSELS, City Clerk
City of La Quinta, California
CITY COUNCIL MINUTES 8
FEBRUARY 3, 2015
CITY MEETING DATE: February 17, 2015
ITEM TITLE: APPROVE DEMAND REGISTERS DATED
JANUARY 29 AND FEBRUARY 6, 2015
AGENDA CATEGORY
BUSINESS SESSION:
CONSENT CALENDAR: 2
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Approve Demand Registers dated January 29 and February 6, 2015.
EXECUTIVE SUMMARY:
None.
FISCAL IMPACT:
Demand of Cash: -- City $ 3,588,472.45
-- Successor Agency of RDA $ 4,181.25
-- Housing Authority $ 0.00
-- Housing Authority Commission $ 0.00
$ 3,592,653.70
BACKGROUND/ANALYSIS:
Between City Council meetings, routine bills and payroll must be paid in order to avoid
late fees/penalties. Attachment 1 provides the detail for the weekly demand registers
from January 24 through February 6, 2015.
Warrants Issued:
105852 - 105915} $ 1,802,528.24
105764 - 105851} $ 1,453,521.79
Voids} $ (417.22)
Wire Transfers} $ 134,776.40
Payroll Deposits and 37049-37050} $ 162,937.92
Payroll Tax Transfers} $ 39,306.57
$ 3,592,653.70
Note: In the amounts listed above, Check No. 10554 in the sum of $400.00was
misplaced by the vendor. A stop payment was initiated and payment was reissued.
Check No. 103152 for $17.22 became stale dated and payment was reissued.
The most significant expenditure on the demand registers listed above is as follows:
Significant Expenditures:
Vendor: Account Name: Amount: Purpose:
*Burrtec Various $1,498,863.03 Property Tax Payment
Riverside Co. Sheriff Various $ 939,246.21 Police Service
10/16/14 - 11/12/14
Doug Wall Construction Construction $ 268,403.27 Wellness Center
O & J Construction Construction $ 88,089.77 SRR Golf Course
* The payment to Burrtec is for refuse fees included on City tax rolls and then
forwarded to Burrtec (Pass-Through Only).
Wire Transfers: Two wire transfers totaled $134,776.40. Both amounts were to
CalPERS: $89,457.41 was for health insurance premiums and $45,318.99 for
retirement costs (see Attachment 2 for a full listing).
ALTERNATIVES:
City Council may approve, partially approve, or reject the register of demands.
Report prepared by: Sandra Mancilla, Account Technician
Report approved for submission by: Rita Conrad, Finance Director
Attachments: 1. Demand Registers
2. Wire Transfers
CITY MEETING DATE: February 17, 2015
ITEM TITLE: RECEIVE AND FILE REVENUE AND
EXPENDITURE REPORTS FOR THE MONTH OF
JANUARY 2015
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: 3
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 (YTD) revenues and
expenditures for January 2015 (Attachment 1).
FISCAL IMPACT:
None.
BACKGROUND/ANALYSIS:
Revenues
Below is a summary of the column headers used on the Revenue Summary Report
All Funds:
Original Total Budget represents the revenue budget the Council adopted in
June 2014 for Fiscal Year (FY) 2014/2015
Current Total Budget includes original adopted revenue budget, plus
carryovers, from the prior FY and Council-approved budget amendments.
The bulk of the carryovers are related to Capital Improvement Project (CIP)
matters. Each year total CIP projects are budgeted; however, project length
may span over multiple years. Therefore, unfinished projects from the prior
year are carried over (along with associated revenue reimbursements).
Period Activity represents actual revenues received in the reporting month
(January).
Fiscal Activity presents actual revenues collected YTD. For example, the
January report shows revenues collected in the Period Activity column, but
revenues collected from July through January 31, 2015 are presented in the
Fiscal Activity column.
Variance Favorable/ (Unfavorable) represents the difference between YTD
collections and the budgeted amount.
Percent Used represents the percentage of budgeted revenues collected
YTD.
The revenue report includes revenues and transfers into funds from other funds
(income items). Unlike expenditures, revenues are not received uniformly
throughout the year, which results in peaks and valleys depending upon large
payments that are received throughout the year. For example, large property tax
payments are usually received in December and April. Similarly, Redevelopment
Property Tax Trust Fund payments are typically received in January and June.
January Revenues
$5.6 million in General Fund revenue was collected in January bringing the total
YTD collections to 37.56% ($13.6 million). Total collections overall in January
were $7 million, bringing total collections for all funds to 17.9% ($27.3 million).
The larger payments in the General Fund consisted of:
$1.7 million for the first of two Motor Vehicle in Lieu payments from the
State.
from the State.
YTD collections to $2.3 million (58.91% collected).
Expenditures
Below is a summary of the column headers used on the Expenditure Summary
Report All Funds:
Original Total Budget represents the expenditure budget adopted by
Council in June 2014 for FY 2014/2015.
Current Total Budget includes the original adopted expenditure budget plus
any carryovers from the prior FY, and any Council approved budget
amendments. The bulk of the carryovers are related to CIP matters. Each
year total CIP projects are budgeted; however, project length can span over
multiple years. Therefore, unfinished projects from the prior year are carried
over (along with associated revenue reimbursements).
Period Activity represents actual expenditures made in the reporting month
(January).
Fiscal Activity presents actual expenditures made YTD. For example, the
January report shows expenditures made in the Period Activity column
(January), but expenditures from July through January are presented in the
Fiscal Activity column.
Variance Favorable/ (Unfavorable) represents the difference between YTD
expenditures and the budgeted amount (the amount yet to be expended).
Percent Used represents the percentage of budget spent to date.
The expenditure report includes expenditures and transfers out to other funds.
Unlike revenues, expenditures are fairly consistent month to month. However,
large Debt Service payments, or CIP expenditures can cause swings.
January Expenditures
General Fund expenditures in January totaled $2.5 million; of this amount,
$865,925 is related to monthly personnel costs (salaries, benefits, etc.). YTD
General Fund personnel costs are $4.6 million (54% expended), which is on target.
Total YTD General Fund expenditures are $16.5 million (43.5% expended). In
addition to personnel costs, the other significant General Fund expenditure in
January was $920,816 for the police services contract (Riverside County Sheriff).
Total expenditures for all funds equaled $3.3 million in January. The largest non-
General Fund expenditures were related to various CIP projects, including
$553,705 to O&J Golf Construction.
Summary
All funds are generally on target or under budget with regard to expenditures.
Revenue collections appear low due to timing issues discussed in the revenue
section above. The timing imbalance of revenues receipts vs. outflows for
expenditures is the reason why the City maintains a cash flow reserve. The FY
2014/2015 mid-year report presented to the City Council on February 3, 2015,
provided updated projections for the remainder of FY 2014/2015.
Report prepared by: Rita Conrad, Finance Director
Report approved for submission by: Frank J. Spevacek, City Manager
Attachment: 1. Revenue and Expenditure Reports for January 2015
ATTACHMENT 1
CITY MEETING DATE: February 17, 2015
ITEM TITLE: APPROVE FISCAL YEAR 2014/2015
MID-YEAR BUDGET ADJUSTMENTS
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: 4
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Approve recommended adjustments to Fiscal Year 2014/2015 revenue and
expenditure budgets as outlined in report.
EXECUTIVE SUMMARY:
This report is a follow-up to the February 3, 2015 City Council study session
item regarding the Fiscal Year (FY) 2014/2015 mid-year budget update.
Council directed staff to return with the recommended budget adjustments
discussed during the study session.
The suggested adjustments will increase the General Fund balance (reserves)
by $595,800.
FISCAL IMPACT:
Projected revenues will be increased by $884,800 and projected expenditures will
be increased by $289,000, increasing the overall General Fund balance by
$595,800.
BACKGROUND/ANALYSIS:
EX 1/03.1/04 Qdudmtdr
The FY 2014/2015 Mid-Year Report projected revenues to be $884,800 higher
than projected at the beginning of the fiscal year.
Property Tax $ 312,100
Transient Occupancy Tax $ 385,600
Sales Tax $ (86,400)
Licenses and Permits $ 65,800
Charges for Services $ 108,200
Other Revenues $ 99,500
Total Revenue Increase: $ 884,800
(See Attachment 1 for line-item revenue detail.)
EX 1/03,1/04 Dwodmchstqdr
During the February 3 study session, staff recommended an increase to the
Community Development Budget (Planning Division) of $80,000 to assist with
increased plan-check and development-related activity. The $80,000 appropriation
is for temporary/contract assistance. Development-related revenue is anticipated to
be $174,000 higher than projected. Should activity decrease, so will use of
temporary services.
For liability insurance premiums, $209,000 was set aside in General Fund
Reserves. Funds had been appropriated in FY 2013/2014 but the actual payment
was not made until FY 2014/2015, so these funds need to be appropriated again in
FY 2014/2015.
ALTERNATIVES:
As the revenue budget may show a large variance at the end of the fiscal year if
not adjusted, staff does not recommend an alternative. Similarly, if the budget
adjustment for the insurance item is not approved, the insurance premium line-item
will be over budget.
Should the incr
budget not be approved, the level of service delivery may be impacted; therefore,
no alternative is recommended.
Report prepared by: Rita Conrad, Finance Director
Report approved for submission by: Frank J. Spevacek, City Manager
Attachment: 1. Revenue line-item detail
ATTACHMENT 1
CITY MEETING DATE: February 17, 2015
ITEM TITLE: DENIAL OF CLAIM FOR DAMAGES
FILED BY RICHARD AND KRISTEN SIMONS; DATE
OF LOSS — SEPTEMBER 8, 2014
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: 5
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Deny the claim for damages of Richard and Kristen Simons in its entirety.
EXECUTIVE SUMMARY:
• A claim was filed by Richard and Kristen Simons with a reported date of loss
of September 8, 2014.
• It was forwarded to Carl Warren & Company ("CW"), the City's claims
administrator.
• CW reviewed the claim and recommends denial.
FISCAL IMPACT:
Stated damages are approximately $50,000.
BACKGROUND/ANALYSIS:
The claimants allege the City failed to properly maintain the storm drain system,
which caused floodwaters to back up into the street, onto their property, and into
their home causing damage. CW recommends denying the claim as the
floodwaters were due to a 700 -year storm, which overwhelmed the existing storm
drain system by washing debris into the storm drain, causing a blockage.
ALTERNATIVES:
As CW is relied on to perform an accurate and thorough preliminary assessment of
the claim from a liability standpoint and has recommended rejection of this claim,
staff does not recommend an alternative action.
Report prepared by: Terry Deeringer, Human Resources/Risk Manager
Report approved for submission by: Frank J. Spevacek, City Manager
CITY MEETING DATE: February 17, 2015
ITEM TITLE: DENIAL OF CLAIM FOR DAMAGES FILED
BY RICARDO VEGA; DATE OF LOSS — SEPTEMBER
8, 2014
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: 6
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Deny the claim for damages of Ricardo Vega in its entirety.
EXECUTIVE SUMMARY:
• A claim was filed by Ricardo Vega with a reported date of loss of September
8, 2014.
• It was forwarded to Carl Warren & Company ("CW"), the City's claims
administrator.
• CW reviewed the claim and recommends denial.
FISCAL IMPACT:
Stated damages are approximately $25,000.
BACKGROUND/ANALYSIS:
The claimant alleges the City failed to properly maintain the storm drain system,
which caused floodwaters to back up into the street, onto his property, and into his
home causing damage. CW recommends denying the claim as the floodwaters
were due to a 700 -year storm, which overwhelmed the existing storm drain system
by washing debris into the storm drain, causing a blockage.
ALTERNATIVES:
As CW is relied on to perform an accurate and thorough preliminary assessment of
the claim from a liability standpoint and has recommended rejection of this claim,
staff does not recommend an alternative action.
Report prepared by: Terry Deeringer, Human Resources/Risk Manager
Report approved for submission by: Frank J. Spevacek, City Manager
CITY MEETING DATE: February 17, 2015
ITEM TITLE: DENIAL OF CLAIM FOR DAMAGES FILED
BY GUADALUPE ALVERIZ; DATE OF LOSS —
SEPTEMBER 8, 2014
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: 7
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Deny the claim for damages of Guadalupe Alveriz in its entirety.
EXECUTIVE SUMMARY:
• A claim was filed by Guadalupe Alveriz with a reported date of loss of
September 8, 2014.
• It was forwarded to Carl Warren & Company ("CW"), the City's claims
administrator.
• CW reviewed the claim and recommends denial.
FISCAL IMPACT:
Stated damages are approximately $19,500.
BACKGROUND/ANALYSIS:
The claimant alleges the City failed to properly maintain the storm drain system,
which caused floodwaters to back up into the street, onto her property, and into
her home causing damage. CW recommends denying the claim as the floodwaters
were due to a 700 -year storm, which overwhelmed the existing storm drain system
by washing debris into the storm drain, causing a blockage.
ALTERNATIVES:
As CW is relied on to perform an accurate and thorough preliminary assessment of
the claim from a liability standpoint and has recommended rejection of this claim,
staff does not recommend an alternative action.
Report prepared by: Terry Deeringer, Human Resources/Risk Manager
Report approved for submission by: Frank J. Spevacek, City Manager
CITY MEETING DATE: February 17, 2015
ITEM TITLE: DENIAL OF CLAIM FOR DAMAGES FILED
BY DALE WISSMAN; DATE OF LOSS — SEPTEMBER
8, 2014
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: 8
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Deny the claim for damages of Dale Wissman in its entirety.
EXECUTIVE SUMMARY:
• A claim was filed by Dale Wissman with a reported date of loss of
September 8, 2014.
• It was forwarded to Carl Warren & Company ("CW"), the City's claims
administrator.
• CW reviewed the claim and recommends denial.
FISCAL IMPACT:
Stated damages are approximately $59,850.
BACKGROUND/ANALYSIS:
The claimant alleges the City failed to properly maintain the storm drain system,
which caused floodwaters to back up into the street, onto his property, and into his
home causing damage. CW recommends denying the claim as the floodwaters
were due to a 700 -year storm, which overwhelmed the existing storm drain system
by washing debris into the storm drain, causing a blockage.
ALTERNATIVES:
As CW is relied on to perform an accurate and thorough preliminary assessment of
the claim from a liability standpoint and has recommended rejection of this claim,
staff does not recommend an alternative action.
Report prepared by: Terry Deeringer, Human Resources/Risk Manager
Report approved for submission by: Frank J. Spevacek, City Manager
CITY MEETING DATE: February 17, 2015
ITEM TITLE: AUTHORIZE OVERNIGHT TRAVEL FOR
PUBLIC WORKS DIRECTOR/CITY ENGINEER TO
ATTEND LEAGUE OF CALIFORNIA CITIES PUBLIC
WORKS OFFICERS INSTITUTE ON MARCH 25, 26
AND 27, 2015
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: 9
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Authorize overnight travel for the Public Works Director/City Engineer to attend the
League of California Cities Public Works Officers Institute on March 25, 26 and 27,
2015 in Newport Beach, California.
EXECUTIVE SUMMARY:
The League of California Cities Public Works Officers Institute is held
annually for public works professionals of all career levels.
Sgd BhsxŬr Otakhb Vnqjr Chqdbsnq.Bhsx Dmgineer has an opportunity to learn
about the latest developments in public works, management, leadership,
transportation, infrastructure, and water quality programs.
FISCAL IMPACT:
The estimated total cost for this training is $1,200, which includes registration,
travel, lodging, parking and me`kr- Etmcr vdqd hmbktcdc hm sgd Otakhb VnqjŬr Ehrb`k
Year 2014/2015 budget for this purpose.
BACKGROUND/ANALYSIS:
The League of California Cities Public Works Officers Institute provides
professionals the latest in executive leadership/management development as well
as planning and building infrastructure improvements.
Sghr xd`qŬr Hmrshstsd vhkk dms`hk aqd`jnts and strategy sessions focused on:
managing flood channels, stormwater funding, pavement preservation, managing
utility costs, building resilient infrastructure, and improving workforce performance.
Other activities include leadership development, a legislative update, an awards
luncheon, and a networking reception.
This Institute is a three-day event and involves overnight lodging. Per City policy,
the City Council must approve all overnight travel.
ALTERNATIVES:
The Council may elect to not approve this request. However, training is essential
to ensure employees are current on trends in public works.
Report prepared by: Timothy R. Jonasson
Public Works Director/City Engineer
Report approved for submission by: Frank J. Spevacek, City Manager
CITY MEETING DATE: February 17, 2015
ITEM TITLE: APPROVE CONTRACT CHANGE
ORDERS AND SETTLEMENT AGREEMENT WITH
ARCH INSURANCE COMPANY, ACCEPT THE
ADAMS STREET BRIDGE PROJECT, AND
APPROPRIATE FUNDS FROM TRANSPORTATION
DEVELOPMENT IMPACT FEES
AGENDA CATEGORY:
BUSINESS SESSION
CONSENT CALENDAR: 10
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Approve Contract Change Order Nos. 14, 24, 29, 31-36 and the settlement
agreement with Arch Insurance Company; accept the Adams Street Bridge Project;
and appropriate $94,000 from Transportation Development Impact Fees.
EXECUTIVE SUMMARY:
In 2011, the City awarded FTR International a construction project to build
the Adams Street Bridge across the White Water Channel.
In early 2012, FTR International abandoned the project in the middle of
construction and filed for bankruptcy. Per the requirements of the contract
rodbhehb`shnmr+ ESQŬr rtqdsx bnlo`mx+ Arch Insurance (Arch), was required
to complete construction of the bridge project.
In July 2012, Arch hired Granite Construction to complete the project. The
City subsequently withheld certain payments and in October 2013, Arch
filed suit against the City. The City and Arch have been negotiating a
settlement so the City may accept the completed project.
The Contract Change Orders (CCOs) and settlement agreement were
prepared in accordance with City Council direction, and have been executed
by Arch.
FISCAL IMPACT:
Original Contract Amount: $8,287,990.43
Contract Quantity Adjustments:$116,041.74
CCOs 1-35: $510,319.70
Final Contract Amount:$8,914,351.87
Less Liquidated Damages (105 Working Days):($357,000)
Total Compensation: $8,557,351.87
Compensation Paid to Date: $7,109,773.72
Remaining Compensation:$1,447,578.15
Settlement of Liquidated Damages$289,000.00
CCOs 1-35 (unpaid balance) $296,825.51
Release of Retention $861,752.64
Amount of Contract Funds Available to Complete:$1,447,578.15
PROJECT FUNDING
Approved Funding: $12,856,611
Total Cost (if settlement is approved): ($13,227,560)
Shortfall ($ 370,949)
The Adams Street Bridge construction was funded with a combination of federal
and local funds, with the Coachella Valley Association of Governments (CVAG)
providing 75 percent of the local funding. Staff has discussed the approximate
$371,000 shortfall with CVAG, and CVAG staff has agreed to process 75 percent
of the shortfall as an eligible project cost tonm qdbdhos ne sgd BhsxŬr ehm`k hmunhbd-
The remaining 25 percent, or approximately $94,000, is available in the
Transportation Developer Impact Fee fund.
BACKGROUND/ANALYSIS:
The Adams Street Bridge Project (Project No. 2006-06) replaced the low-water
crossing just south of Blackhawk Way with a four-lane, all-weather bridge with
raised sidewalks for improved vehicular and pedestrian safety. FTR International
was awarded the initial construction contract in May 2011 after a competitive
bidding process. FTR was set to install the bridge columns in the channel in early
2012 when they abandoned the project without notice to the City. Per the
bnmsq`bs rodbhehb`shnmr+ ESQŬr rtqdsx+ @qbg+ was required to complete the project.
In July 2012, Arch retained Granite Construction to complete the bridge, which
opened to traffic in September 2013. Prioq sn @qbgŬr s`jdnudq ne sgd oqnidbs+ ESQ
had several outstanding claims for additional work, which were transferred to Arch
as the successor to FTR.
The outstanding CCOs (summarized in Attachment 1) and settlement agreement
(Attachment 2) with Arch will settle all claimr ax @qbg `mc @qbgŬr bnmsq`bsnqr+ ESQ
International and Granite Construction. The major areas of disagreement concerned
sgd BhsxŬr `rrdrrldms ne odm`kshdr enq bnmpleting the project more than six months
after the project was originally scheduled sn ad bnlokdsd 'h-d-+ ŮKhpthc`sdc
C`l`fdrů( `r vdkk `r `cchshnm`k o`xldms sgd bnmsq`bsnq qdptdrsdc enq dwb`u`shnm
and demolition work not shown on the plans and specifications. The CCOs also
contain payment for additional work that was verified and recommended for
`ooqnu`k ax sgd BhsxŬr bnmsq`bs `clhmhrsq`snq+ SXKhm-
In November 2013, the project was 100 percent complete and ready for
acceptance by the City. Upon approval of the settlement agreement and
acceptance of the project by City Council, one half of the retention in the amount
of $430,876.32 will be released to Arch. The remaining retention of $430,876.32
would be released 35 days following the recorded Notice of Completion.
ALTERNATIVES:
Disapproval of the settlement agreement and outstanding CCOs would not allow
the project to be closed out and would likely lead to a lawsuit. Therefore, staff
does not recommend this alternative.
Report prepared by: Ed Wimmer, P.E., Principal Engineer
Report approved for submission by: Timothy R. Jonasson, P.E.
Public Works Director/City Engineer
Attachments: 1. Contract Change Order Summary
2. Settlement Agreement
ATTACHMENT 1
ADAMSSTREETBRIDGEIMPROVEMENTPROJECT
SummaryContractChangeOrderNos.14,24,29,3136
DATETOCCODATESIGNEDBY
CCO#DESCRIPTION
CONTRACTORAMOUNTARCH
Variousadjustmentstothebridgeabutmentquantities
1402/05/2014$13,536.201/26/2015
tomeetfieldconditions
Additionalworktoaddstampedconcreteonthebridge
2411/11/2013$19,785.601/26/2015
deckandD.G.inthebridgeapproaches.
IncreaseIIDconduitsizethroughbridgedeckduetoa
2902/24/2014$58,091.001/26/2015
changeinIIDstandardssincedesignofproject.
Creditforchangestotheretainingwallconstructionand
31theeliminationofaportionofthewaterlineworkthat02/26/2014$7,512.371/26/2015
wasperformedbyCVWD
CreditforCityinspectionfeesforworkperformed
3202/26/2014$19,498.521/26/2015
outsideofregularworkhours
Additionalworkperformedbythebridgecontractorin
33ordertoaccommodateundergroundingofIID$142,900.001/26/2015
distributionlinesatbothbridgeapproaches.
34Additionalworktorelocate18"PVCSewerforCVWD.$36,510.001/26/2015
Additionalexcavationrequiredtoprovideasafeside
35$38,520.001/26/2015
slopeperOSHAstandardsforchangeinsoiltype.
36BidItemAdjustments&LiquidatedDamages$357,000.001/26/2015
ATTACHMENT 2
SETTLEMENT AGREEMENT RELEASE
AND
This Settlement Agreement and Release (hereinafter the "Release") is entered by and between
CITY OF LA QUINTA ("City") and ARCH INSURANCE COMPANY ("Arch") (collectively referred
to as the "Parties") with reference to the following facts:
Recitals
A.Arch issued a payment and performance bond to FTR International. Inc. ("FTR") for the
construction project known as the Adams Street Bridge Improvements Project (the "Project"), which is
owned by the City.
B.FTR abandoned the Project and the City held FTR in default. On March 9, 2012. the
City terminated its contract with FIR for the Project. The City then made demand upon Arch, pursuant to
Arch's obligations under the performance bond, to complete the Project.
C.On or about July 2. 2012, the City and Arch executed a Takeover Agreement (the
"Agreement") by which Arch agreed to take over and complete the Project.
I). On or about January 22, 2013, the City notified Arch that the City would assess liquidated
damages on the Project.
E.On October 23, 2013, Arch filed a lawsuit against the City, entitled Arch Insurance
PSC
1301939 (the "Action").
Company v. City of La Quinta, Riverside County Superior Court Case No.
The Action alleged that the City improperly assessed liquidated damages for the Project.
F.Throughout the course of construction of the Project, Arch has requested that the City
agree to certain Contract Change Orders ("CCO") relating to the work performed. Those CCO requests
are not the subject of the Action, or any other pending legal action against the City. By this Release, the
City and Arch intend to settle all matters relating to the Action and also to settle all present and future
CCO requests by Arch relating to the Project.
Terms of Settlement
NOW THEREFORE, in consideration of the mutual covenants set forth herein, the Part ies agree
as follows:
1. Obligations of
City.
a. Concurrently with the execution of this Release, the City shall execute the CCOs
identified as CCO #14, CCO #24, CCO #29, CCO #31, CCO #32, CCO #33, CCO #34, CCO #35, and
CCO #36 in the forms as are attached hereto as Exhibit 1.
290/015610-0127
7916807.1 a02/05/15
b. Upon receipt of Arch's progress payment request, the City shall release to Arch fifty
percent (50%) of the Project retention in the amount of $430,876.32 and progress payments in the
amount of $585,825.51. The City shall release to Arch the remaining fifty percent (50%) of the Project
retention, in the amount of $430,876.32, thirty-five (35) days after recordation of the Notice of
Completion for the Project.
Obligations
2. of Arch
a. Concurrently with the execution of this Release, Arch shall execute the CCOs
identified as CCD #14, CCO #24, CCO #29, CCO #31, CCD #32, CCO #33, CCO #34, CCO #35, and
CCO #36 in the forms as are attached hereto as Exhibit 1.
b. Within five (5) business days of the full execution of this Release, Arch shall file a
request for dismissal with prejudice of the entire Action.
3.
Accounting
The Parties agree that the following constitutes the final Project accounting upon which this
Agreement and the CCO's are based:
Original Contract Amount: $8,287,990.43
Contract Quantity Adjustments: $ 116,041.74
Contract Change Orders: $ 510,319.70
$8,914,351.87
Final Contract Amount:
Less Liquidated Damages (LD's) (105 Working Days): ($357,000)
$8,557,351.87
Total Compensation:
Amount Paid to Date: $7,109,773.72
$1,447,578.15
Amount Due to Contractor:
Retention Withheld: $ 861,752.64
Previously Withheld LD"s to be Returned: $ 289,000.00
Pending Contract Change Orders: $ 296,825.51
$1,447,578.15
Amount of Contract Funds Available to Complete:
4. No Admission of Fault.
This Release is a compromise and settlement of disputed claims. Nothing in this Release shall be
interpreted, used, or construed as an admission of fault or wrongful conduct of any kind by any of the
Parties.
-2-
290/015610-0127
7916807.1 a02/05/15
5.
Release.
(a)In consideration for the agreements as set forth herein, Arch, on behalf of itself and its
owners, heirs, successors, assigns, insurers, lenders, lien holders, attorneys, agents, and other
representatives does hereby release the City, and its councilmembers, mayors, officials, boards,
commissions, managers, employees, attorneys, insurance companies, agents, and other representatives,
from any and all claims, actions and causes of action, obligations, liabilities, indebtedness, breaches of
duty, claims for injunctive and other equitable relief, suits, liens, losses, costs or expenses, including
attorneys' fees, of any nature whatsoever, known or unknown, fixed or contingent, arising out of the
claims made in the Action, or arising from the Project, including but not limited to any future CCO
requests or requests for additional monies due for work on the Project.
(b)Waiver of Civil Code Section 1542: By releasing and forever discharging claims both
known and unknown as above provided, Arch expressly waives any rights under California Civil Code
section 1542, which provides:
"A GENERAL RELEASE DOES NOT EXTEND CLAIMS
TO
WHICH NOT SUSPECT
THE CREDITOR DOES KNOW ORTO
EXIST IN THE TIME OF EXECUTING
HIS FAVOR ATTHE
KNOWN BY MUST
RELEASE WHICH IF HIM HAVE
AFFECTED
MATERI ALLY HIS SETTLEMENT WIT H THE
DEBTOR."
Arch waives and relinquishes any rights and benefits which it has or may have under section
1542
of the Civil Code of the State of California. Arch has performed a full and complete investigation
of the facts pertaining to the settlement. Nevertheless, Arch acknowledges that it is aware that it may
hereafter discover facts in addition to or different from those which it now knows or believes to be true
with respect to the subject matter of this Release, but it is Arch's intention hereby to fully and finally
forever settle and release any and all matters, disputes and differences, known or unknown, suspected
and unsuspected, which now exist, may exist or heretofore have existed, as against the City, arising out
of the claims made in the Action and, in furtherance of this intention, the release herein given shall be
and remain in effect as a full and complete general release notwithstanding discovery or existence of any
such additional or different facts.
6. Agreement.
Entire
This Release sets forth the entire agreement of the Parties and supersedes any and all prior
agreements or understandings, if any, between them pertaining to the subject matter hereof, and shall not
be modified or altered except by a subsequent written agreement signed by the parties. This Release shall
be binding upon and inure to the benefit of the Parties, their respective representatives, shareholders,
officers, directors, employees, affiliates, successors, heirs and assigns.
-3-
290/015610-0127
7916807.1 a02/05/15
Warranty.
7.
The Parties hereby expressly warrant and represent that they have not transferred or assigned or
attempted to transfer or assign any of the claims released hereunder. The persons signing this Release
hereby warrant that they have the power and authority to bind any party on whose behalf this Release is
signed.
8.
Controlling Law.
This Release shall be interpreted and construed in accordance with the laws of the State of
California, without giving regard to principles of choice of law.
9.
Attorneys' Fees and Costs.
The Parties shall bear all of their own respective costs and attorneys' fees incurred relating to the
matters encompassed in this Release.
10.
Severability
. If any provision and/or part of this Release is held, determined, or adjudicated to be invalid,
unenforceable or void for any reason, each such provision shall be severed from the remaining
provisions of the Release and shall not affect the validity and enforceability of such remaining
provisions.
11.
Counterparts.
This
Release may be executed in counterparts and by facsimile or other electronic transmission.
12.Review
of Release.
The Parties each acknowledge and represent that they have read this Release, have had the
opportunity to consult with their respective attorneys concerning its contents and consequences, that the
Release is being executed solely in reliance on their respective judgment, belief and knowledge of the
matters set forth herein and on the advice of their respective attorneys.
13. Interpretation.
Neutral
The Parties agree that all parts of this Release shall in all cases be construed as a whole
according to their fair meaning and shall not be construed strictly for or against any party hereto.
14.
Modification.
This Release shall not be modified, amended or supplemented unless such modifications,
amendments or supplements are in writing and signed by each party to this Release.
.4.
290/015610-0127
7916807.1 a02/05/15
15.
Enforceability Under CCP § 664.6
The Parties agree that this agreement is fully enforceable under California Code of Civil
Procedure section 664,6, and that the Court may enter judgment pursuant to this Agreement under that
section, The Parties consent that the Court retain jurisdiction over the Parties to enforce the settlement
notwithstanding any dismissals that are filed in the Action, The Parties further agree to request that the
Court retain jurisdiction to enforce the settlement, hi any action to enforce this agreement, including a
motion filed pursuant to Code of Civil Procedure section 664.6, the prevailing party is entitled to recover
attorney's fees and costs incurred in enforcing this agreement against any party that breaches this
agreement.
IN WITNESS WHEREOF, the parties have executed this Release on the date set forth
below.
CITY OF LA QUINTA
., 2015
Date:
B:
y
Its:
ARCH INSURANCE COMPANY
, 2015
/ /
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290/015610-0127
7916807.1 a02/05/15
CITY MEETING DATE: February 17, 2015
ITEM TITLE: APPROVE MEMORANDUM OF
UNDERSTANDING AMONG JNGKŬR CDO@QSLDMS
STORE, INC., ONE ELEVEN LA QUINTA, LLC, AND
THE CITY OF LA QUINTA FOR ADAMS STREET
SIGNAL AND STREET IMPROVEMENT PROJECT
AGENDA CATEGORY:
BUSINESS SESSION: 1
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Approve a Memorandum of Understanding `lnmf JngkŬr Cdo`qsldms Rsnqdr+ Hmb-+
One Eleven La Quinta, LLC, and the City ne K` Pthms` enq sgd cdudknodqrŬ
participation in the Adams Street Signal and Street Improvement project, subject to
minor modifications by the City Attorney.
EXECUTIVE SUMMARY:
The City and property owners within the One-Eleven Shopping Center desire
to construct a new traffic signal and intersection improvements at Adams
Street and Corporate Center Drive in order to facilitate access into the
commercial center and improve traffic safety on Adams Street.
The improvements include installing a new west leg to the intersection,
signalizing the intersection, and installing a hardscape median from Highway
111 to the Adams Street Bridge.
The Memorandum of Understanding (MOU) requires the private property
nvmdqr 'JngkŬr Cdo`qsldms Rsnqdr+ Hmb- 'ŮJngkŬrů( `mc Nmd Dkdudm K` Pthms`+
LLC) to each contribute $50,000 as well as dedicate the right-of-way
necessary for these improvements.
FISCAL IMPACT:
The total project cost is estimated to be $820,550. Per the MOU, the property
owners will fund $100,000 of this cost. The following is the proposed project
funding:
Measure A Funds: $261,000
Transportation DIF Funds: $459,500
Developer Contributions: $100,000
Total Anticipated Funding:$820,500
The following represents the anticipated project budget:
Original BudgetAnticipated Budget
Professional: $0$46,695
Design:$50,220$95,500
Inspection/Testing/Survey:$48,965$55,620
Construction: $502,200$570,460
City Administration: $25,110$28,522
Contingency:$94,005$23,703
Total Anticipated Project Budget:$720,500$820,500
BACKGROUND/ANALYSIS:
The Adams Street Signal and Street Improvement project will relieve congestion
and improve north/south passage on Adams Street between Highway 111 and the
Adams Street Bridge (Attachment 1). It will also improve crossing Adams Street
adsvddm sgd JngkŬr o`qjhmf kns `mc Sgd Pavilion at La Quinta shopping center, and
other commercial developments along Corporate Center Drive, east of Adams
Street.
This project initially was conceived to entail a three-legged intersection. However,
during the design phase, it was determined that a four-legged signalized
intersection would better facilitate traffic flows. In order to accommodate a four-
legged intersection, staff began negotiations vhsg JngkŬr `mc Nmd Dkdudm K` Pthms`+
LLC, to determine their level of participation in both the signal and on-site parking
lot improvements. These negotiations generated the recommended MOU
(Attachment 2).
The MOU has been executed by both KohlŬr `mc Nmd Dkdudm K` Pthms`+ KKB `mc
contains the agreed upon terms. In addition to the funding contributions, the
developers are dedicating permanent right-of-way for the street and signal
improvements as well as providing temporary right-of-way for construction.
Additionally, the MOU calls for the City to `rrhrs JngkŬr `mc Nmd Dkdudm K` Pthms`+
LLC in the preparation of a parcel map to dedicate half of the new entrance to
JngkŬr `r vdkk `r sn bqd`sd ` rdbnmc bnmmercial pad for One Eleven La Quinta, LLC
to the north of the intersection sometime in the future. The MOU also provides
that if the improvements are not construcsdc+ JngkŬr `mc Nmd Dkdudm K` Pthms`+
LLC will be entitled to a full refund and the City will be obligated to reestablish
existing access.
Bnmshmfdms tonm Bhsx BntmbhkŬr `ooqnu`k+ sgd enkknvhmf hr sgd `mshbho`sdc oqnidbs
schedule:
Design Phase Through March2, 2015
Plans Specifications & EstimateApprovalMarch3, 2015
Advertisement for Bids March 9through April 9, 2015
Award of Contract April21, 2015
Sign Contracts and Mobilize April22through May 18, 2015
Construction (45 Working Days)May19throughJuly 31, 2015
Project Substantially Complete*August 1, 2015
*The MOU requires completion of the street improvements no later than November
1, 2015.
ALTERNATIVES:
An alternative to the recommended action is to not construct a four-legged
intersection. Staff does not recommend this alternative because it would impact
traffic circulation and would reduce access to the One Eleven Center.
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. Site Plan
2. Memorandum of Understanding
ATTACHMENT 2
MEMORANDUM OF UNDERSTANDING
BY AND AMONG
KOHLS DEPARTMENT STORE, INC.,
AND
ONE ELEVEN LA QUINTA, LLC,
AND
THE CITY OF LA QUINTA
This Memorandum of Understanding (MOU), dated this ___ day of __________, 2015, is
made by and among the CITY OF LA QUINTA, a municipal corporation and charter city
(City), KOHLS DEPARTMENT STORES, INC., a Delaware corporation licensed to do
business in California (Kohls), and ONE ELEVEN LA QUINTA, LLC, a California limited
liability company (One Eleven). City, Kohls and One Eleven hereinafter may be referred to
individually as a Party and collectively as the Parties).
RECITALS
WHEREAS, the City is the lead agency with regard to the Adams Street Signal and Street
Improvements Project known as City Project #2012-01 (the Project). As part of the Project,
the City is the lead agency for infrastructure construction associated with a street signal and
related traffic circulation improvements at the intersection of Adams Street and Corporate Center
Drive (the Intersection), which improvements are the installation of a new four-legged traffic
signal, median improvements on Adams Street, and entry improvements onto One Eleven LLC
Tract (defined below), as more particularly set forth in Exhibit A and Exhibit B attached hereto
and incorporated herein by this reference (the Traffic Circulation Improvements) and
described in the scope of work set forth in Exhibit C attached hereto and incorporated herein by
this reference (the Scope of Work).
WHEREASKohls is the owner of certain real property in the City of La Quinta, County
,
of Riverside, State of California with Assessors Parcel Number 643-080-004 (Kohls Tract).
WHEREAS, One Eleven is the owner of certain real property in the City of La Quinta,
County of Riverside, State of California with Assessors Parcel Number 643-080-026 (One
Eleven LLC Tract).
WHEREAS, the Parties have negotiated and agree that the Traffic Circulation
Improvements at the Intersection, with appurtenant real property dedication, easements, and
other improvements, is the preferred alternative for the safety and convenience of the traveling
public, as more particularly set forth in this MOU.
COVENANTS
NOW, THEREFORE, based upon the foregoing Recitals, which are incorporated herein
by this reference and a substantive part of this MOU, and for other good and valuable
consideration, the Parties agree as follows:
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1.Construction of Improvements. Subject to the terms and conditions set forth in this
MOU, City shall construct and complete the Traffic Circulation Improvements no later
than November 1, 2015, in accordance with the Traffic Circulation Improvements and
Scope of Work, and the timing of the Traffic Circulation Improvements shall not exceed
180 days from the date of commencement of the Traffic Circulation Improvements under
the Scope of Work.
2.Kohls Payment Obligation
. Kohls shall contribute $50,000 to the Traffic Circulation
Improvements. Kohls shall pay to City four (4) equal installment payments of $12,500
each. Kohls shall make each installment payment annually, commencing with the first
installment payment due to City no later than April 1, 2015, and the final installment
payment due to City no later than April 1, 2018.
3.One Eleven Payment Obligation. One Eleven shall contribute $50,000 to the Traffic
Circulation Improvements. One Eleven shall pay to City four (4) equal installment
payments of $12,500 each. One Eleven shall make each installment payment annually,
commencing with the first installment payment due to City no later than April 1, 2015,
and the final installment payment due to City no later than April 1, 2018.
4.Dedication. In order to facilitate Citys completion of the Traffic Circulation
Improvements, One Eleven shall dedicate to the City that portion of the One Eleven LLC
Tract from beginning of curve on One Eleven LLC Tract to the existing right-of-way for
the full width of the new north-westerly leg of the Intersection as depicted on the Traffic
Circulation Improvements and containing approximately 1,827 square feet.
5.Transfer of Portion of One Eleven LLC Tract to Kohls. In order to facilitate the Citys
completion of the Traffic Circulation Improvements, a portion of the One Eleven LLC
Tract shall be deeded to Kohls, as depicted on the Traffic Circulation Improvements
(noted as Shovlin Property Deeded to Kohls). One Eleven shall apply for and process,
and City shall assist with, a new parcel map or lot-line adjustment pursuant to the
California Subdivision Map Act to cause one half of the relocated driveway into the
shopping center off of Adams Street to be included in the Kohls Tract as more
particularly depicted on the Traffic Circulation Improvements.
6.Transfer of Portion of Kohls Tract to One Eleven. In order to facilitate the Citys
completion of the Traffic Circulation Improvements, a portion of Kohls Tract shall be
deeded to One Eleven, as depicted on the Traffic Circulation Improvements (noted as
Kohls Property Deeded to Shovlin). One Eleven, with the consent of Kohls, shall
apply for and process, and City shall assist with, a new parcel map or lot-line adjustment
pursuant to the California Subdivision Map Act to cause the transfer of property
identified as Kohls Property Deeded to Shovlin as depicted on the Traffic Circulation
Improvements.
. Nothing in this MOU shall obligate the Planning
7.Reservation of Discretion
Commission, City Council, or any other body in the City with discretionary review or
legislative authority over a parcel map or lot-line adjustment. Kohls and One Eleven
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expressly acknowledge and agree that the Planning Commission, City Council, and any
other body with discretionary review or legislative authority over the Kohls Tract and
One Eleven LLC Tract have the discretionary power to approve, approve with conditions,
or deny any or all land use entitlements as may be required by law, and nothing in this
MOU removes or limits that discretionary power. In the event the Planning Commission,
City Council, or any other body in the City with discretionary review or legislative
authority should deny a parcel map or lot-line adjustment submitted pursuant to
paragraphs 5 or 6 of this MOU, Kohls and One Eleven shall be fully reimbursed for any
payments it made pursuant to paragraphs 2 and 3 of this MOU, and the City shall restore
an access driveway from Adams Street onto the Kohls Tract.
8.Closure of Access Driveways. Upon completion of the Traffic Circulation
Improvements, Kohls agrees to the permanent closure of two (2) access driveways from
Adams Street onto the Kohls Tract identified on Exhibit A as close access and exist
closed access along Adams Street (the Kohls Access Driveways). Kohls
acknowledges and agrees to the temporary closure of the access driveway identified on
Exhibit A as close access at intermittent periods during construction of the Project.
9.Temporary Construction Easement. In order to facilitate the Citys completion of the
Traffic Circulation Improvements, Kohls and One Eleven, respectively, shall provide the
City with their respective temporary construction easements in the areas shown in Traffic
Circulation Improvements as being required for the proper construction of curbing,
landscaping, cut and/or fill slopes, and other construction activities associated with the
Traffic Circulation Improvements. Said temporary construction easement shall be in the
forms attached hereto as Exhibit D and Exhibit D-1, and shall be at no cost to City. Said
temporary construction easement shall terminate on the date that is the earlier of one (1)
year from the date of this MOU or at such time as the Traffic Circulation Improvements
are completed.
10.Development of One Eleven LLC Tract. Except for the Traffic Circulation
Improvements as set forth in this MOU, One Eleven shall construct, or cause the
construction of, and shall pay for any and all other improvements to the One Eleven LLC
Tract in accordance with all applicable laws, entitlements, and approvals.
11.Compliance with Laws and Standards. The Traffic Circulation Improvements shall be
constructed to meet or exceed the standards applied to the balance of the Project and shall
be harmonious with the shopping center.
12.Maintenance of Improvements. Upon completion of the Traffic Circulation
Improvements, City shall be responsible for the operation and maintenance of the Adams
Street signal at the Intersection, the maintenance of the curb and gutter along Adams
Street, and the medians on Adams Street. City shall not be responsible for the operation
and maintenance of the other Traffic Circulation Improvements, on either the Kohls
Tract or the One Eleven LLC Tract, or of any other improvements on, over, under, or
about either the Kohls Tract or the One Eleven LLC Tract.
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13.Full Satisfaction of City Obligations; Waiver and Release of Claims. Kohls and One
Eleven, respectively, agree that the terms and conditions set forth in this MOU constitute
full satisfaction of any and all obligations from the City to both Kohls and One Eleven
for the Traffic Circulation Improvements. Neither Kohls nor One Eleven, jointly or
separately, shall seek any claims relating to the effect or impact the Traffic Circulation
Improvements have on the Kohls Tract and One Eleven LLC Tract, including without
limitation any claims for relocation assistance, relocation benefits, interruption of the use
and enjoyment of real property, any business interruption or loss of business goodwill,
compensation for real or personal property, improvements pertaining to the realty,
inverse condemnation or taking of property, inverse condemnation damages, pre-
condemnation damages, or damages of any nature whatsoever, except as expressly
provided in this MOU or the temporary construction easement. Except for
reimbursement and restoration of a driveway authorized pursuant to paragraph 7 of this
MOU and Kohls ability to exercise self-help (and be reimbursed) to both restore an
access driveway and complete any work on the Kohls Tract, the sole and exclusive
remedy against City by either Kohls or One Eleven, or both, for breach of this MOU by
the City, shall be to seek declaratory and injunctive relief to compel City to complete the
Traffic Circulation Improvements pursuant to this MOU.
14.Indemnification
. City shall indemnify, defend, protect and hold Kohls harmless from
and against any and all claims, demands, causes of action, damages, losses, or liabilities
incurred in connection with or arising out of the construction of the Project by the City or
invitees, contractors, or agents of the City performing work on behalf of the City, except
those claims, demands, causes of action, damages, losses, or liabilities attributed to or
caused by the negligence or willful misconduct of Kohls. City shall indemnify, defend,
protect and hold One Eleven harmless from and against any and all claims, obligation,
demands, causes of action, damages, losses, injuries or liabilities incurred in connection
with or arising out of the construction of the Project by the City or invitees, contractors,
or agents of the City performing work on behalf of the City, except those claims,
demands, causes of action, damages, losses, or liabilities attributed to or caused by the
negligence or willful misconduct of One Eleven.
15.Additional Waiver/Release; Reservation of Rights. In addition to the release/waiver of
claims in the preceding paragraph, Kohls shall seek neither a takings claim nor pursue an
inverse condemnation claim against City for the permanent closure of the Kohls Access
Driveways. Kohls shall provide City with conveyance documents, mutually acceptable
to the Parties, necessary to effectuate such permanent closures of the Kohls Access
Driveways.
16.Notice of Work to Kohls
. Prior to any construction activities on Kohls Tract or One
Eleven LLC Tract, City shall provide thirty (30) days advance written notice to Kohls
unless an emergency requires immediate access onto Kohls Tract or One Eleven LLC
Tract, in which case City shall provide written notice to Kohls of the emergency and the
Citys entry onto the Kohls Tract or One Eleven LLC Tract within the next business day.
No construction activities performed by City shall occur on the Kohls Tract or One
Eleven LLC Tract from November 1 through January 15 without the prior written
698/015610-0002
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consent of Kohls, which may be granted or denied in its sole and absolute discretion
unless an emergency requires the City to have immediate access onto Kohls Tract or
One Eleven LLC Tract, in which case notice of said emergency shall comply with the
provisions of this paragraph.
17.Notice of Work to One Eleven. Prior to any construction activities on the One Eleven
LLC Tract, City shall provide thirty (30) days advance written notice to One Eleven
unless an emergency requires immediate access onto the One Eleven LLC Tract, in which
case City shall provide written notice to One Eleven of the emergency and the Citys
entry onto the One Eleven LLC Tract within the next business day. No construction
activities performed by City shall occur on the One Eleven LLC Tract from November 1
through January 15 without the prior written consent of One Eleven, which may be
granted or denied in its sole and absolute discretion unless an emergency requires the
City to have immediate access onto the One Eleven LLC Tract, in which case notice of
said emergency shall comply with the provisions of this paragraph.
18.Restore/Repair Kohls Tract. City shall restore, as close as is reasonably possible, any
portion of the Kohls Tract on which the City entered and used pursuant to the temporary
access rights and use easement set forth in this MOU to the condition in which that
portion of the Kohls Tract existed on the date on which City commences the
construction for the Traffic Circulation Improvements. City shall apply reasonable
efforts to instruct any contractor selected for the construction of the Traffic Circulation
Improvements not to perform any activities that would materially impact the operations
of the landowner, particularly during the months of November and December, and to
provide a constant free flow of traffic and directional signage, if requested and as needed,
to Kohls business.
19.Restore/Repair One Eleven LLC Tract
. City shall restore, as close as is reasonably
possible, any portion of the One Eleven LLC Tract on which the City entered and used
pursuant to the temporary access rights and use easement set forth in this MOU to the
condition in which that portion of the One Eleven LLC Tract existed on the date on
which City commences the construction for the Traffic Circulation Improvements. City
shall apply reasonable efforts to instruct any contractor selected for the construction of
the Traffic Circulation Improvements not to perform any activities that would materially
impact the operations of the landowner, particularly during the months of November and
December, and to provide a constant free flow of traffic and directional signage, if
requested and as needed, to the businesses on the One Eleven LLC Tract
20.Entire Agreement; Amendments. This MOU (which includes attachments and exhibits)
contains the entire agreement of the Parties hereto, and supersedes any prior written or
oral agreements between them concerning the subject matter contained herein. This
MOU cannot be changed or terminated orally or electronically but only by an amendment
in writing signed by the Parties.
21.Notices. All notices under this MOU shall be effective (i) upon personal delivery, (ii)
upon delivery by reputable express courier that provides a receipt with the date and time
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of delivery, or (iii) three (3) business days after deposit in the United States mail,
registered or certified, postage fully prepaid and addressed to the respective parties as set
forth below, or by method of delivery (such as e-mail) as may be acceptable to that Party
(memorialized in writing) or to such other address as the Parties may from time to time
designate in writing:
To Kohls: Kohls Department Stores, Inc.
N56 W17000 Ridgewood Drive
Menomonee Falls, WI 53051
Attn: Law Department
To One One Eleven La Quinta, LLC
Eleven: 71084 Tamarisk Lane
Rancho Mirage, CA 92270
Attention: Mr. Michael Shovlin
To City: City of La Quinta
78-495 Calle Tampico
La Quinta, California 92253
Phone No.: 760-777-7031
Attention: City Manager
with City Rutan & Tucker, LLP
Copy to: 611 Anton Boulevard, Suite 1400
Costa Mesa, CA 92628-1950
Phone No.: (714) 641-5100
Attention: William H. Ihrke, Esq.
22.Liability for Breach. No termination of this MOU shall release any Party from any
liability or obligation under this MOU resulting from any acts, material omissions, or
events happening prior to the termination of this MOU; provided, however, that the
remedies available for any liability shall be limited to those expressly provided in this
MOU.
23.No Cross-Default. There shall be no cross-defaults between Kohls and One Eleven. A
default under this MOU by Kohls shall not be deemed a default against One Eleven, and
a default under this MOU by One Eleven shall not be deemed a default against Kohls.
24.No Joint Venture. Nothing in this MOU is intended to or shall be deemed to create any
joint venture or partnership among the Parties, and each of the Parties shall remain an
independent entity and contracting party as related to the other Parties.
25.Assignments. This MOU shall be binding upon and shall inure to the benefit of the
Parties and their respective heirs, personal representatives, successors and assigns.
Except for transfers and assignments of real property interests as set forth in this MOU,
no Party may assign this MOU or any interest or right hereunder without the prior written
698/015610-0002
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consent and approval of the other Parties, which consent and approval may be withheld in
the sole and absolute discretion of either Party. No provision of this MOU is intended
nor shall in any way be construed to benefit any person or entity not a signatory hereto or
to create a third party beneficiary relationship.
26.Interpretation. This MOU is deemed to have been prepared by all of the Parties hereto,
after consulting with legal counsel, and any uncertainty or ambiguity herein shall not be
interpreted against the drafter, but rather, if such ambiguity or uncertainty exists, shall be
interpreted according to the applicable rules of interpretation of contracts under the law
of the State of California.
27.Authority to Bind Parties. The persons signing this MOU warrant that each of them has
the authority to execute this MOU on behalf of the Party on whose behalf said person is
purporting to execute this MOU, and that this MOU is a binding obligation of said
Parties.
28.Governing Law. This MOU shall be construed and enforced in accordance with the laws
of the State of California without regard to conflict of law principles.
29.Attorneys Fees. In the event of litigation relating to this MOU, the prevailing Party shall
be entitled to reasonable attorneys fees and costs, including any fees and costs on appeal.
30.Severability. In the event that any provisions of this MOU are held by a court of
competent jurisdiction to be invalid or unenforceable, the same shall not affect, in any
respect whatsoever, the validity of the remainder of this MOU.
31.Waiver. No waiver or consent shall be implied from silence or any failure of a Party to
act, except as otherwise specified by this MOU. Any Party may specifically and
expressly waive, in writing, any portion of this MOU or any breach hereof, but no such
waiver shall constitute a further or continuing waiver of any proceeding or succeeding
breach of the same or any other provision.
32.Counterparts. This MOU may be executed in two or more counterparts, each of which
when so executed and delivered shall be deemed an original and all of which, when taken
together, shall constitute one and the same instrument.
\[Signatures Appear on Next Page\]
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EXHIBIT A and EXHIBIT B
Traffic Circulation Improvements
\[attached\]
698/015610-0002
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EXHIBIT C
Scope of Work
\[attached\]
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EXHIBIT C: PROJECT DESCRIPTION AND SCOPE OF IMPROVEMENTS
Project Type:
Project:
Description
EXHIBITS D AND D-1
Temporary Construction Easement Forms
\[attached\]
698/015610-0002
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CITY MEETING DATE: February 17, 2015
ITEM TITLE: RESERVE POLICY REVIEW
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION: 1
PUBLIC HEARING:
RECOMMENDED ACTION:
Continue discussing General Fund Reserve policies and provide staff direction.
EXECUTIVE SUMMARY:
In 1994, the City established General Fund Reserve policies (Attachment 1)
to set aside funds for financial emergencies and to fund operations prior to
receiving revenue (cash flow reserves).
In the fall
Advisory Board (IAB) to review these policies and provide recommendations.
The IAB recommendations were presented at the February 3, 2015 Council
meeting. The Council requested additional time to consider this matter.
FISCAL IMPACT:
None.
BACKGROUND/ANALYSIS:
The City has consistently maintained emergency and cash flow reserves since they
were established in 1994. In 2013
1.3 million of cash
General Fund reserves. The City Council requested that the IAB review the current
recommendations:
Increase the designated cash reserves from the current 54.25 percent of
annual operating budget expenditures to 60 percent of annual operating
budget expenditures.
Allocate the 60 percent designated cash reserves as follows:
Increase the reserve for cash flow from the current 8.25 percent of
o
the annual operating budget to 10 percent
Modify the reserve for emergencies from the current policy of 35
o
percent of the annual operating budget plus $4.0 million to 40 percent
of the annual operating budget
Establish a reserve for economic stabilization of 9 percent of the
o
annual operating budget
of 1
o
percent of the annual operating budget.
Overall, the IAB recommended increasing the designated cash reserves by almost
six percent. Further, because the current definition governing the use of
Emergency Reserves is narrow and relates primarily to catastrophic disasters, the
IAB recommended creating the two new categories to provide more flexibility when
another economic downturn or state/federal takeaway occurs.
(Attachment 2) that
current expenditures should only be funded with current revenues; and, one-time
revenues should only be used for one-
of budgeting.
Staff Thoughts Reserve Policy
Staff offers the following for Council consideration:
Increase the overall designated reserves to 60 percent of the annual
operating budget. This would provide a greater financial cushion to assist
the City through difficult times and should buy ample time, in the event of a
financial catastrophe, to adjust municipal operations. Based upon the Fiscal
Year 2014/15 operating budget, this amount would be $21,568,400.
Allocate the $21,568,400 as follows:
$14,378,900 Emergency Reserves
o
$ 3,594,700 Cash Flow Reserves
o
$ 3,594,700 Economic Stabilization Reserves
o
Allocate $2,111,076 of the projected $12,388,474 of undesignated Fiscal
Year 2014/15 General Fund balances to increase the current $19,457,324
of designated reserves (Emergency and Cash Flow) to $21,568,400.
Review the current definition of emergency or disaster to ensure that the
events that must occur to trigger use of these funds are not virtually
impossible to achieve and thus severely
financial events when said disasters do occur.
Establish a new reserve policy that defines when the Economic Stabilization
Reserves may be used.
Establish a new reserve policy wherein (1) the reserve funds designated for
Emergency/Cash Flow/Economic Stabilization purposes are not reduced when
the operating budget falls below the Fiscal Year 2014/15 amount, and (2)
said reserve funds would be increased, on a parity basis, with operating
budget expenditure increases.
Staff Thoughts The Need for Additional Reserve Funds
Review of the February 3 Council discussion surfaced thoughts regarding allocating
reserves for future CalPERS costs, replenishing or increasing equipment, park and
technology replace funds, and establishing third-party relationships to guard against
potential future State take-aways. Staff does have thoughts regarding these points
that will be presented during the February 17 Study Session.
Of final note, if the City Council elected to fund the staff-recommended reserve
amounts, the City would have $10,277,398 in cash reserves available to be
invested in new endeavors. This amount is scheduled to increase by $1.4 million
by June 30, 2015; the City will begin receiving payment of the former
Redevelopment Agency General Fund loan.
Staff recommends that the Council discuss whether or not these unassigned
reserves should be saved, or designated for capital improvement or economic
development investment. If capital improvement investments are considered, they
should entail projects that improve the community and cannot be funded from
other resources. If economic development investments are considered, the focus
should be on projects that would generate recurring General Fund revenue.
ALTERNATIVES:
As this is a study session item, no alternatives are recommended.
Report prepared by: Frank J. Spevacek, City Manager
Attachments: 1. General Fund Reserve Policy
2. General Fund Reserve Guidelines
ATTACHMENT 1
City of La Quinta
General Fund Reserve Policy
The Government Finance Officers Association (GFOA), the association that establishes
best practices in the governmental finance profession, recommends a reserve equal to at
least 17% (two months of normal operating expenditures). Each organization, depending
upon their unique circumstances, needs to determine their reserve level. There is no
events then there are resources. Governments must balance the need to be fiscally
responsible with what is reasonable. Establishing reserves is essentially determining
that tolerance level. The following recommendations attempt to address minimum
requirements and tolerance for risk (note: the reserve for OPEB is not included as it will be
transferred to a non-revocable trust account in the future).
In addition to the recommendations below, the Council may also reserve funds for specific
itemized projects or purposes as they arise (for example, a set aside fund for a community
center, branch library, new city hall, special one-time projects, etc.).
Guiding principles:
In general, one-time revenues should not be utilized for on-going expenditures.
One-time revenues should be put into reserves or appropriated for one-time
expenditures.
Reserves for capital improvements, equipment replacement, and infrastructure
should be part of the on-going budget process. Based on depreciation, or other
relevant criteria, contributions
part of the budget process toward replacement of equipment, buildings,
infrastructure, etc.
When authorizing the use of reserves, developing a plan to replenish those reserves
should also be considered.
It is important to remember when budgeting that as expenditures increase, so will
reserve requirements (reserves are based on a percentage of expenditures).
th
The reserve policy should be amended by resolution and require 4/5 approval of
the Council.
Total Reserves:
Current: 54.25% Recommended: 60%
relative to other organizations, is desired. After discussing the issues relative to the City of
La Quinta and also reviewing the policies of other cities, the recommendation is to increase
overall reserves to 60% of normal operating expenditures
budget (excludes one-time capital costs or anomalies).
The reserve for emergencies has been adjusted downward so that the City may establish a
The reserve for emergencies is based on the
circumstances in section 2.20.020 of the municipal code which do not allow flexibility for
drastic swings in the economy, including state takeaways. Cash flow was slightly increased
to a level more consistent with other policies reviewed. Each category is briefly discussed
below:
Reserve for cash flow:
Current: 8.25% Recommended: 10%
This reserve addresses liquidity. A reserve for cash flow is needed to address the
imbalance of monthly income compared to monthly expenditures. Typically,
largest revenues
(property tax, property tax in lieu of MVLF, and property tax in lieu of sales tax) are
only made to the City in two annual installments.
Reserve for emergencies:
Current: 35% + $4 million (approx. 46%) Recommended: 40%
As used , the terms emergency or disaster
mean:
The actual or threatened existence of conditions of disaster or of extreme peril to
the safety of persons and property within this city caused by such conditions as air
pollution, fire, flood, storm, epidemic, riot, earthquake or other conditions, including
conditions resulting from war or imminent threat of war but other than conditions
resulting from a labor controversy, which conditions are or are likely to be beyond
the control of the services, regular personnel, equipment and facilities of the city and
Reserve for economic stabilization:
Current: 0% Recommended: 9%
This reserve is for the purpose of stabilizing the delivery of city services during
periods of operational budget deficits resulting from the following conditions: drastic
and unanticipated economic downturns, or unanticipated spikes in operating costs.
For example the Great Recession of 2009 resulted in dramatic drops in City
revenues. Another example would be a sudden loss of TOT revenue in the event a
#¨³¸ ®¥ , 1´¨³ 2¤²¤±µ¤ 0®«¨¢¸ 0 ¦¤ Α
major hotel stops business. An example of an unanticipated spike in regular
operating costs would be a sudden increase in public safety contract costs.
Use of this reserve would be in conjunction with budget planning and is intended to
-term strategy
may be developed.
Reserve for :
Current: 0% Recommended: 1%
This reserve is for the purpose of stabilizing the delivery of city services during
periods of operational budget deficits resulting from revenue takeaways from the
federal, state or county government. The loss of Redevelopment funds is an
example of a situation where this reserve might be used.
Use of this reserve would be in conjunction with budget planning and is intended to
thought out long-term strategy
may be developed.
#¨³¸ ®¥ , 1´¨³ 2¤²¤±µ¤ 0®«¨¢¸ 0 ¦¤ Β
Reports/Informational Items: ______________
21
Report to La Quinta City Council
Palm Springs International Airport Commission Meeting
January 21, 2015
General:The Airport continues to grow in passenger and flight activities, but we are
sensitive to any signs of contraction. The only sign we’ve seen so far is the reduction of
American Airlines flights from 2/day to 1/day from Dallas to Palm Springs. Our goal is to
always be “out in front” of any business contraction, which requires vigilance.
Action Items:
The Palm Springs City Councilapproved the marketing incentive award of $52,500 to
WestJet Airlines, as requested by the Commission.This program has been very
successful so far, and has helped to acquire more routes: but, we are coming near the
end of the original funding.
Finance:
The audit for last year’s budget performance was clean, with no adjustments required.
Revenue was up$280,000 from last year, while expenses were reduced by $250,000.
Unrestricted cash is at $4,098,000 –on target.
Our planned bond redemption for December did not happen on time, as the Bond
Trustee failed to execute the redemption. They will absorb anyinterest expense we
encounter as a result of their error.
Airline Activity:
We had the inauguralflight of AirCanada Rougefrom Vancouver. We are hoping to
expand this initial flight to additional destinations and with higher frequency.
Passenger Activity:
2014 was the third year in a row for setting record passenger activity. The year’s total
was 1,914,402; up 9.3% from last year.
Advertising:
The Airport has placed ads in the Desert Sun (1/4 page), local magazines, and at local
college campuses.
Resolutions:
The Commission reviewed the Airport’s Annual Capital Improvement Program,and
resolved toforward it to the City Council for submittal to the FAA.
The next meeting is scheduledfor February 18, 2014.
Submitted: _________________________
Robert G. Teal, Commissioner
Palm Springs International Airport
Email: bob@teal.us.com
Phone: 760-899-4171
REPORTS AND INFORMATIONAL ITEM: 22
REPORTS AND INFORMATIONAL ITEM: 23
3
Department Report: 4
TO: The Honorable Mayor and Members of the City Council
FROM: Les Johnson, Community Development Director
DATE: February 17, 2015
SUBJECT: DEPARTMENT REPORT — TRAKIT SOFTWARE IMPLEMENTATION
AND GARAGE SALE PERMITS
TRAKiT Software Implementation
For the past several months, City staff has been diligently working on the
implementation of the new permit software system known as TRAKiT. The
TRAKiT software includes several applications that the City will be utilizing,
including eMarkup, eTRAKiT, GeoTRAK, LicenseTRAK and CodeTRAK. When fully
implemented, the software system will automate the tracking of permit activity,
code compliance, citizen issues, and business/occupational licenses.
The web -based system will track all permits, inspections, business licenses, and
plan reviews, as well as allow users to track and review code enforcement
violations. Once fully implemented and operational, TRAKiT will allow citizens,
contractors, architects, engineers and business owners to apply for permits online,
view the status of permits in process and request permit inspections. The software
will also allow the opportunity to pay for permits, either in-person or online, via
credit card.
A few of the software implementation progress highlights are as follows:
❖ eMarkup:
• Application provides for electronic review of building, planning and
engineering plans.
• Pilot test program is underway with select Architects, Engineers and
Page 1 of 3
DEPARTMENT REPORT: 6
TO: Honorable Mayor and Members of the City Council
FROM: Timothy R. Jonasson, P.E., Public Works Director/City Engineer
DATE: February 17, 2015
SUBJECT: PUBLIC WORKS DEPARTMENT REPORT FOR JANUARY 2015
1.For the month of January 2015, the total for all maintenance expenditures
recorded in GORequest was $77,339.27, with street sweeping, maintenance
yard, irrigation work, and debris removal being among the highest tasks in
terms of cost. Public Works maintenance workers recorded 1,312 task
hours associated with this work. A detailed breakdown of tasks and
associated costs is presented in the attached pie chart (Attachment 1).
The maintenance yard task was significant in January and represents all of
the work City crews have done to prepare the City lot on Avenida La Fonda
for the La Quinta Arts Festival. Specifically, the preparation included
fencing, cable placement, clearing, grubbing, tree removal, grading, and
gravel placement.
2.Residents continue to submit Customer Satisfaction Surveys through the
GORequest system. The Public Works Department received five surveys in
the month of January 2015, with residents commenting on how staff
handled reported issues. Employees were rated on their effectiveness,
response time, and courtesy. A summary of responses is provided below
and detailed surveys are provided as Attachment 2:
60% of respondents rated Employdd Bntqsdrx `r ŮRtodqhnqů nq
ŮFnnců
100% of respondents rated Response Shldr `r ŮRtodqhnqů nq ŮFnnců
5/$ ne qdronmcdmsr hmchb`sdc ŮDwbddcdců nq ŮLdsů tmcdq
Expectations Met
60% of respondents rated Employee Deedbshudmdrr `r Ů@udq`fdů nq
higher
Surveys also include positive feedback from residents, such as commending
sgd Bhsx enq ŮŴsgd roddc hm vghbg xnt ehx \[pot holes\]. It hr vnmcdqetk ů
3.Since the grand opening of the La Quinta Wellness Center, the contractor
has been completing punch list items prior to formal acceptance of the
facility.
4.The La Quinta Retirement Community on Seeley Drive (The Palms at La
Quinta) is now open and tenants have begun to move in. The grading of
Phase 2 has been partially completed and foundation work for the new
building has begun.
5.The on-site grading operations for the Century Theatre project have been
completed. Crews are currently constructing the building foundations and
slab. The project is located at the corner of Washington Street and Avenue
47.
6.On-site water, sewer, and storm drain construction continue at The
Signature project located at Avenue 54 and Jefferson Street (inside of the
PGA West development). The contractor has also begun the turn pocket
modifications for the project entrance on PGA Boulevard.
7.On-site construction of homes continues at Andalusia, located on Madison
Street between Avenue 58 and Avenue 60.
8.On-site construction of homes continues at Griffin Ranch, located on
Madison Street and Avenue 54.
9.On-site construction of homes continues at Darby Estates, located on Darby
Road.
10.A catch basin and storm drain pipe have been installed on Lake Cahuilla Road
at the Quarry Maintenance Yard by The Quarry.
Attachments: 1. Maintenance Expenditures by Task for January 2015
2. Customer Satisfaction Survey Details for January 2015
ATTACHMENT 1
ATTACHMENT 2
SUCCESSOR AGENCY
To The La Quinta Redevelopment Agency
AGENDA
CITY HALL COUNCIL CHAMBERS
78-495 Calle Tampico, La Quinta
SPECIAL MEETING ON TUESDAY, FEBRUARY 17, 2015 AT 4:00 P.M.
CALL TO ORDER
ROLL CALL:
Agency Members: Franklin, Osborne, Peña, Radi, Chairperson Evans
CLOSED SESSION - NONE
PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA
At this time, members of the public may address the Successor Agency on any matter not
listed on the agenda. Please complete a "request to speak" form and limit your comments
to three minutes. The Successor Agency 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 OCTOBER 21, 2014
4
2. ADOPT RESOLUTION APPROVING A RECOGNIZED OBLIGATION
6
PAYMENT SCHEDULE OF THE FORMER LA QUINTA
REDEVELOPMENT AGENCY FOR THE PERIOD OF JULY 1
THROUGH DECEMBER 31, 2015
\[RESOLUTION SA 2015-001\]
Special SUCCESSOR AGENCY TO RDA AGENDA 1
FEBRUARY 17, 2015
3. ADOPT RESOLUTION APPROVING THE SUCCESSOR AGENCY
20
ADMINISTRATIVE BUDGET FOR THE PERIOD OF JULY 1
THROUGH DECEMBER 31, 2015
\[RESOLUTION SA 2015-002\]
BUSINESS SESSION - NONE
STUDY SESSION - NONE
REPORTS AND INFORMATIONAL ITEMS NONE
DEPARTMENTAL REPORTS - NONE
CHAIR AND BOARD MEMBERS' ITEMS NONE
PUBLIC HEARINGS NONE
ADJOURNMENT
*************************************
For information about the next special meeting of the City as Successor Agency to
the La Quinta Redevelopment Agency
760-777-7000.
DECLARATION OF POSTING
I, Teresa Thompson, Deputy City Clerk of the City as Successor Agency to the La
Quinta Redevelopment Agency, do hereby declare that the foregoing agenda was
posted near the entrance to the Council Chambers at 78-495 Calle Tampico and on
the bulletin boards at the La Quinta Cove Post Office at 51-321 Avenida Bermudas
and at the Stater Brothers Supermarket at 78-630 Highway 111, on February 13,
2015.
DATED: February 13, 2015
SUSAN MAYSELS, Agency Secretary
Successor Agency to the
La Quinta Redevelopment Agency
Special SUCCESSOR AGENCY TO RDA AGENDA 2
FEBRUARY 17, 2015
Public Notices
The La Quinta City Council Chamber is handicapped accessible. If special equipment is
needed for the hearing impaired, please call the -7103, twenty-
four (24) hours in advance of the meeting and accommodations will be made.
If special electronic equipment is needed to make presentations to the Successor Agency,
arrangement should be made in advance by contacting the City Clerk's Office at 777-7103.
A one (1) week notice is required.
If background material is to be presented to the Successor Agency during a 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 Successor Agency regarding any
item on this agenda will be made available for public inspection at the City Clerk counter at
City Hall located at 78-495 Calle Tampico, La Quinta, California, 92253, during normal
business hours.
Special SUCCESSOR AGENCY TO RDA AGENDA 3
FEBRUARY 17, 2015
CONSENT:1
SUCCESSOR AGENCY TO THE
LA QUINTA REDEVELOPMENT AGENCY
MINUTES
TUESDAY, OCTOBER 21, 2014
A regular meeting of the La Quinta City Council in their capacity as Successor Agency
to the La Quinta Redevelopment Agency ( 5:53 pm by
Chairperson Adolph.
PRESENT: Agency Members Evans, Franklin, Henderson, Osborne, Chair Adolph
ABSENT: None
CLOSED SESSION
None
PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA
None
CONFIRMATION OF AGENDA
Confirmed
PRESENTATIONS
None
WRITTEN COMMUNICATIONS
None
CONSENT CALENDAR
1. APPROVE MINUTES OF SEPTEMBER 16, 2014
MOTION A motion was made and seconded by Agency Members Evans/Henderson
to approve the Consent Calendar as recommended. Motion passed unanimously.
DEPARTMENT REPORTS
None
BUSINESS SESSION
None
STUDY SESSION
None
ADJOURNMENT
There being no further business, it was moved and seconded by Agency Members
Henderson/Franklin to adjourn at 5:54 p.m. Motion passed unanimously.
Respectfully submitted,
SUSAN MAYSELS, Agency Secretary
CITY AS SUCCESSOR AGENCY TO RDA 1 OCTOBER 21, 2014
SA MEETING DATE: February 17, 2015
ITEM TITLE: ADOPT RESOLUTION APPROVING A
RECOGNIZED OBLIGATION PAYMENT SCHEDULE OF
THE FORMER LA QUINTA REDEVELOPMENT
AGENCY FOR THE PERIOD OF JULY 1 THROUGH
DECEMBER 31, 2015
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: 2
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Adopt a Resolution approving a Recognized Obligation Payment Schedule for the
period of July 1 through December 31, 2015.
EXECUTIVE SUMMARY:
A Recognized Obligation Payment Schedule (ROPS) identifies the obligations
of the former Redevelopment Agency (RDA) that must be paid.
The Successor Agency to the former RDA must submit a ROPS to the
Department of Finance (DOF),
Administrative Officer, and the County Auditor-Controller every six months.
The attached ROPS (Attachment 1) identifies $15,221,032 of Enforceable
Obligations that must be funded during the first half of Fiscal Year
2015/2016.
FISCAL IMPACT:
The Successor Agency requests authorization to expend $2,672,038 from bond
proceeds, and an allocation of $12,548,994 of property tax revenue from the
Redevelopment Property Tax Trust Fund (RPTTF). The $12,548,994 of RPTTF
funding includes $365,505 of administrative expenses (for the six-month period).
The remaining $12,183,489 of the RPTTF allocation is to pay bond interest and
principal payments.
BACKGROUND/ANALYSIS:
The ROPS identifies the obligations of the former RDA that the Successor Agency
must fund during the first six months of FY 2015/2016. These obligations include
tax allocation bond debt service payments, third party contracts and administrative
costs.
The ROPS must be submitted to the above-mentioned entities by March 1, 2015.
The DOF then has 45 days to make its final determination regarding the
enforceable obligations, the dollar amounts, and funding sources. The Successor
Agency would then have five business days to request additional DOF review and
an opportunity to meet and confer on disputed items.
If the ROPS is submitted late, the City will be subject to a civil fine of $10,000 per
day.
ALTERNATIVES:
As this is a requirement of the DOF, staff does not recommend an alternative.
Report prepared by: Rita Conrad, Finance Director
Report approved for submission by: Frank J. Spevacek, City Manager
Attachment: 1. ROPS 15-16A for July 1 through December 31, 2015
RESOLUTION NO. SA 2015-
A RESOLUTION OF THE SUCCESSOR AGENCY TO THE
LA QUINTA REDEVELOPMENT AGENCY ADOPTING
RECOGNIZED OBLIGATION PAYMENT SCHEDULE 15-
16A FOR THE PERIOD OF JULY 1, 2015 THROUGH
DECEMBER 31, 2015
WHEREAS, the City Council of the City
as applicable) previously approved and adopted (i) the Redevelopment Plan for La
velopment
; and (ii) the Redevelopment Plan for La Quinta Redevelopment
as applicable);
WHEREAS, the former La Quinta Redevelopment Agency was
engaged in activities to execute and implement the Project Area No. 1
Redevelopment Plan and the Project Area No. 2 Redevelopment Plan (collectively,
Redevelopment Law (Health and Safety Code § 33000, et seq.) ; and
WHEREAS, as part of the 2011-12 State budget bill, the California
Legislature enacted and the Governor signed, ABx1 26
requiring that each redevelopment agency be dissolved and Assembly Bill 27
at would have allowed redevelopment agencies to remain in
existence if certain remittance payments were made; and
WHEREAS, an action challenging the constitutionality of ABx1 26 and ABx1
27 was filed in the California Supreme Court; and
WHEREAS, on December 29, 2011, the Court upheld ABx1 26 and struck
down ABx1 27 as unconstitutional; and
WHEREAS, on January 2, 2012, the City Council adopted City Council
Resolution No. 2012-successor a
the Agency; and
WHEREAS, on June 27, 2012, the California Legislature enacted, and the
made certain revisions to certain of the statutes added by ABx1 26; and
WHEREAS, Health and Safety Code Section 34177 requires successor
agencies to prepare and adopt, on a semi-annual basis,
Resolution No. SA 2015-
Adoption of Recognized Obligation Payment Schedule
Adopted: February 17, 2015
Page 2 of 3
that lists all obligations of the former redevelopment
agency that are enforceable within the meaning of subdivision (d) of Section
34171; and
WHEREAS, Successor Agency to the La Quinta Redevelopment Agency
staff have prepared ROPS 15-16A for the period of July 1,
2015 through December 31, 2015; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution
have occurred.
NOW THEREFORE, BE IT RESOLVED, by the Successor Agency to the La
Quinta Redevelopment Agency, as follows:
SECTION 1. Recitals. The Recitals set forth above are true and correct and
incorporated herein by reference.
SECTION 2. Approval of ROPS 15-16A In order to enable the Successor Agency
to strictly comply with ABx1 26, and based on the Recitals set forth above, the
Successor Agency hereby approves ROPS 15-16A attached hereto as Exhibit A as
the Recognized Obligation Payment Schedule for the period of July 1, 2015
through December 31, 2015. Pursuant to Health & Safety Section 34173(e), the
liability, including, but not limited to, its liability for the
obligations on the attached schedule, is limited to the total sum of property tax
revenues it receives pursuant to Part 1.85 of AB x1 26.
SECTION 3. Implementation. The Successor Agency hereby authorizes and directs
the Executive Director to submit ROPS 15-16A to the Oversight Board of the City
to submit a copy of the
approved ROPS 15-16A to the Department of Finance, State Controller, County
Administrative Officer, and County Auditor-Controller.
SECTION 4. Severability. If any provision of this Resolution or the application
thereof to any person or circumstance is held invalid, such invalidity shall not affect
other provisions or applications of this Resolution which can be given effect
without the invalid provision or application, and to this end the provisions of this
Resolution are severable. The Successor Agency hereby declares that it would
have adopted this Resolution irrespective of the invalidity of any particular portion
thereof.
SECTION 5. The Successor Agency Secretary shall certify to the adoption of this
Resolution.
Resolution No. SA 2015-
Adoption of Recognized Obligation Payment Schedule
Adopted: February 17, 2015
Page 3 of 3
PASSED, APPROVED, AND ADOPTED at the meeting of the Successor
Agency to the La Quinta Redevelopment Agency held this 17th of February 2015,
by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
__________________________________________
LINDA EVANS, Chairperson
City of La Quinta Acting as Successor
Agency to the La Quinta Redevelopment
Agency
ATTEST:
_____________________________________________
SUSAN MAYSELS, Secretary
City of La Quinta Acting as Successor
Agency to the La Quinta Redevelopment Agency
(AGENCY SEAL)
APPROVED AS TO FORM:
____________________________________________
WILLIAM H. IHRKE, Successor Agency Counsel
City of La Quinta Acting as Successor
Agency to the La Quinta Redevelopment Agency
SA MEETING DATE: FEBRUARY 17, 2015
ITEM TITLE: ADOPT RESOLUTION APPROVING THE
SUCCESSOR AGENCY ADMINISTRATIVE BUDGET
FOR THE PERIOD OF JULY 1 THROUGH DECEMBER
31, 2015
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: 3
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Adopt a resolution approving the Successor Agency Administrative Budget for the
period of July 1 through December 31, 2015.
EXECUTIVE SUMMARY:
The La Quinta Successor Agency (SA) administers the former
Redevelopment Agency-down activities and the Oversight Board (OB).
ABx1 26 (Dissolution Act) provides for an administrative allowance to carry
out these wind-down activities.
The Dissolution Act requires the SA to prepare an administrative budget
every six months, which is reviewed and approved by the OB.
FISCAL IMPACT:
For the period of July 1 through December 31, 2015, the Redevelopment Property
Tax Trust Fund (RPTTF) allocation for non-administrative costs totals
$12,183,489. Three percent of this total, $365,505, is requested from RPTTF
funds for administrative costs associated with the activities of the Successor
Agency.
BACKGROUND/ANALYSIS:
The Dissolution Act provides an administrative allowance for all successor agencies
to carry out wind-down activities of their former redevelopment agencies and to
administer the oversight boards. The amount is equal to three percent of the
RPTTF allocation listed on the Recognized Obligation Payment Schedule, subject to
change based on review and approval by the DOF.
The estimates below include staff time required to carry out SA and OB activities:
SA Administrative Budget
Personnel Costs 233,088
Professional Contract
Services 102,400
Supplies & Publications 4,017
Printing/Mailing/Advertising 1,000
Information Technology
Costs 8,000
Office & Equipment Costs 17,000
Total Administrative Costs $365,505
The two major cost components are personnel costs and professional contract
services. Personnel costs are related to City staff time required to manage SA
affairs. The contract services costs are legal counsel, audit, and consulting
services (as may be required).The detailed administrative budget for this time
period is included as Attachment 1.
Once the SA reviews and approves the administrative budget, the budget must be
reviewed and approved by the OB.
While the Dissolution Act does not require the administrative budgets to be
submitted to the DOF, the DOF does review the actions of oversight boards the
day after the oversight board meetings take place. Therefore, the DOF may
question an oversight bapproval of a successor a
budget.
ALTERNATIVES:
As this is a requirement of the DOF, staff does not recommend an alternative.
Report prepared by: Rita Conrad, Finance Director
Report approved for submission by: Frank J. Spevacek, City Manager
Attachment: 1. Administrative Budget for July 1 through December 31, 2015
RESOLUTION NO. SA 2015-
A RESOLUTION OF THE CITY OF LA QUINTA ACTING
AS THE SUCCESSOR AGENCY TO LA QUINTA
REDEVELOPMENT AGENCY APPROVING THE
SUCCESSOR AGENCY ADMINISTRATIVE BUDGET FOR
THE PERIOD OF JULY 1, 2015 THROUGH DECEMBER
31, 2015
WHEREAS, the City Council of the City of La Quinta or City,
as applicable) has been established to direct the Successor Agency to take certain
actions to wind down the affairs of the former La Quinta Redevelopment Agency
(Agency) in accordance with the California Health and Safety Code; and
WHEREAS, the Agency was engaged in activities to execute and implement
the Project Area No. 1 Redevelopment Plan and the Project Area No. 2
o the
provisions of the California Community Redevelopment Law (Health and Safety
Code § 33000, et seq
WHEREAS, as part of the 2011-12 State budget bill, the California
Legislature enacted and the Governor signed, ABx1 26 requiring that each
redevelopment agency be dissolved; and
WHEREAS, an action challenging the constitutionality of ABx1 26 and
companion bill ABx1 27 was filed in the California Supreme Court by the California
Redevelopment Association, the League of California Cities, and two individual
cities; and
WHEREAS, on December 29, 2011, the Court upheld ABx1 26; and
WHEREAS, Health and Safety Code Section 34177(j) requires each
successor agency to prepare a proposed administrative budget every six months
setting forth the successor agencys estimated administrative costs of carrying out
the wind-down activities of the former redevelopment agency, proposing sources of
payment for such estimated administrative costs, and proposing for arrangements
for administrative and operations services provided by a city, county and/or other
entity; and
WHEREAS, the Successor Agency has prepared a proposed administrative
budget for the six-month period of July 1, 2015 through December 31, 2015 (the
Administrative Budget); and
Resolution No. SA 2015-
Adoption of SA Administrative Budget
Adopted: February 17, 2015
Page 2
WHEREAS, all other legal prerequisites to the adoption of this Resolution
have occurred.
NOW THEREFORE, BE IT RESOLVED, by City of La Quinta acting as the
Successor Agency to La Quinta Redevelopment Agency, does hereby resolve as
follows:
Section 1. Recitals. The Recitals set forth above are true and correct and
incorporated herein by reference.
Section 2. Approval of Administrative Budget. The Successor Agency hereby
approves the Administrative Budget, which Administrative Budget is on file with
the Secretary of the Successor Agency.
Section 3. Severability. If any provision of this Resolution or the application
thereof to any person or circumstance is held invalid, such invalidity shall not affect
other provisions or applications of this Resolution which can be given effect
without the invalid provision or application, and to this end the provisions of this
Resolution are severable. The Oversight Board hereby declares that it would have
adopted this Resolution irrespective of the invalidity of any particular portion
thereof.
Section 4. The Oversight Board Secretary shall certify to the adoption of this
Resolution.
PASSED, APPROVED, AND ADOPTED at the meeting of the City of La
Quinta acting as the Successor Agency to La Quinta Redevelopment Agency held
this 17th day of February, 2015, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________________
Linda Evans, Mayor
City of La Quinta Acting as Successor
Agency to the La Quinta Redevelopment
Agency
ATTEST:
Resolution No. SA 2015-
Adoption of SA Administrative Budget
Adopted: February 17, 2015
Page 3
___________________________________________
SUSAN MAYSELS, City Clerk
City of La Quinta Acting as Successor Agency
To the La Quinta Redevelopment Agency
(AGENCY SEAL)
APPROVED AS TO FORM:
____________________________________________
WILLIAM H. IHRKE, Successor Agency Counsel
City of La Quinta Acting as Successor Agency
To the La Quinta Redevelopment Agency
ATTACHMENT 1
SUCCESSOR AGENCY/OVERSIGHT BOARD
JULY - DECEMBER 2015
ADMINISTRATIVE BUDGET
PERSONNEL$233,088
Includes base salary plus benefits.
Successor Agency Administration$168,088
Oversight Board Administration$65,000
SUPPLIES & SERVICES
CONTRACT SERVICES$102,400
This account provides for legal, consulting, and audit services
plus a portion of League of California Cities and California
Redevelopment Agency dues related to technical
assistance and training.
Audits as required by ABx1 26$10,000
League of California Cities Dues & Seminars/Webinars related to ABx1 26$1,950
Legal Services for Successor Agency$45,250
Consulting Services for Successor Agency$45,200
SUPPLIES AND PUBLICATIONS$4,017
This account provides for various office supplies and publications
to be used by SA and OB staff and board members
Successor Agency Supplies & Publications$2,517
Oversight Board Supplies & Publications$1,500
PRINTING/MAILING/ADVERTISING$1,000$1,000
This account provides for required mailings, agenda printing,
and legal advertising
INFORMATION TECHNOLOGY$8,000
This account provides for annual replacement charges for
information technology items such as computers, printers,
and computer related items attributable to SA/OB; and
support/hosting for SA/OB web pages, which are required
by ABx1 26$5,500
Computer Document Storage related to Successor Agency$2,000
On-Line Muni Code related to Successor Agency
$500
OFFICE & EQUIPMENT$17,000
This account provides for office space rental and equipment
usage in City Hall
Rent
$15,000
Equipment$2,000
TOTAL ADMINISTRATIVE BUDGET$365,505
FUNDING SOURCES:
Total Administrative Costs$365,505
3% Administrative Allowance per ROPS 15-16A$ 365,505
Excess Administrative costs $0
F:\\ROPS\\La Quinta ROPS 15-16A\\Admin Budget Jul-Dec 2015 FINAL