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2019 10 01 Council CITY COUNCIL AGENDA 1 OCTOBER 1, 2019 CITY COUNCIL AGENDA CITY HALL COUNCIL CHAMBER 78495 Calle Tampico, La Quinta REGULAR MEETING ON TUESDAY, OCTOBER 1, 2019 3:00 P.M. CLOSED SESSION | 4:00 P.M. OPEN SESSION CALL TO ORDER ROLL CALL: Councilmembers: Fitzpatrick, Peña, Radi, Sanchez, Mayor Evans PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA At this time, members of the public may address the City Council on any matter not listed on the agenda. Please complete a "Request to Speak" form and limit your comments to three minutes. The City Council values your comments; however in accordance with State law, no action shall be taken on any item not appearing on the agenda unless it is an emergency item authorized by GC 54954.2(b). CONFIRMATION OF AGENDA CLOSED SESSION 1. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) of GOVERNMENT CODE SECTION 54956.9; NAME OF CASE: WASHINGTON-111, LTD., CLAIMANT, V. CITY OF LA QUINTA, RESPONDENT, JUDICATE WEST ALTERNATIVE DISPUTE RESOLUTION CASE NO. A257070 2. CONFERENCE WITH LEGAL COUNSEL – PENDING LITIGATION PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9. NAME OF CASE: CITY OF LA QUINTA V. CHIN FAMILY PROPERTIES LIMITED PARTNERSHIP, ET AL., RIVERSIDE COUNTY SUPERIOR COURT CASE NO. PSC1803284 City Council agendas and staff reports are available on the City’s web page: www.LaQuintaCA.gov CITY COUNCIL AGENDA 2 OCTOBER 1, 2019 3. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54957.6; CITY DESIGNATED REPRESENTATIVE: CHRIS ESCOBEDO, DIRECTOR OF COMMUNITY RESOURCES; AND EMPLOYEE ORGANIZATION: LA QUINTA CITY EMPLOYEES’ ASSOCIATION RECESS TO CLOSED SESSION RECONVENE AT 4:00 P.M. REPORT ON ACTIONS(S) TAKEN IN CLOSED SESSION PLEDGE OF ALLEGIANCE PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA At this time, members of the public may address the City Council on any matter not listed on the agenda. Please complete a "Request to Speak" form and limit your comments to three minutes. The City Council values your comments; however in accordance with State law, no action shall be taken on any item not appearing on the agenda unless it is an emergency item authorized by GC 54954.2(b). ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS 1. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) FOR FISCAL YEAR 2017/18 AWARD OF FINANCIAL REPORTING ACHIEVEMENT 2. PROCLAMATION IN SUPPORT OF THE UNITED STATES 2020 CENSUS UPDATE 3. PROCLAMATION IN RECOGNITION OF NATIONAL FIRE PREVENTION WEEK – OCTOBER 6 – 12, 2019 CONSENT CALENDAR NOTE: Consent Calendar items are routine in nature and can be approved by one motion. PAGE 1. APPROVE MINUTES OF SEPTEMBER 17, 2019 7 2. APPROVE DEMAND REGISTERS DATED SEPTEMBER 6 AND 13, 2019 23 3. AUTHORIZE OVERNIGHT TRAVEL FOR THE CITY CLERK AND DEPUTY CITY CLERK TO ATTEND THE LEAGUE OF CALIFORNIA CITIES CITY CLERKS’ NEW LAW AND ELECTIONS SEMINAR IN ORANGE COUNTY, CALIFORNIA, DECEMBER 11 – 13, 2019 37 CITY COUNCIL AGENDA 3 OCTOBER 1, 2019 4.ADOPT RESOLUTION TO AUTHORIZE APPLICATION FOR, AND RECEIPT OF, CALIFORNIA SENATE BILL 2 PLANNING GRANTS PROGRAM FUNDS TO STREAMLINE AND INCREASE HOUSING PRODUCTION [RESOLUTION NO. 2019-041] 39 5. APPROVE AGREEMENT FOR CONTRACT SERVICES WITH Z&K CONSULTANTS BUILDING SOLUTIONS TO PROVIDE CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES FOR THE SILVERROCK PARK VENUE PROJECT (PROJECT NO. 2016-08) 45 6. APPROVE AGREEMENT FOR CONTRACT SERVICES WITH BEST SIGNS, INC. FOR THE PURCHASE AND INSTALLATION OF SIGNS FOR THE HIGHWAY 111 AUTO DEALER SIGNAGE PROJECT (PROJECT NO. 2019-06) 87 7. APPROVE INFORMATION TECHNOLOGY EQUIPMENT PURCHASES WITH CDWG, NEWEGG, AND DELL 139 8.ADOPT RESOLUTION TO APPROVE AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS BETWEEN THE CITY OF LA QUINTA AND MICHAEL P. SHEPPARD AND KAREN M. SHEPPARD DECLARATION OF TRUST FOR ONE VACANT PARCEL LOCATED IN THE DESERT CLUB ESTATES BEARING ASSESSOR’S PARCEL NUMBER 770- 174-001 [RESOLUTION NO. 2019-042] 141 BUSINESS SESSION PAGE 1. APPROVE FIRST ROUND COMMUNITY SERVICES GRANTS FOR FISCAL YEAR 2019/20 167 2.ADOPT RESOLUTION TO RECLASSIFY THE CITY ENGINEER POSITION TO PUBLIC WORKS DIRECTOR/CITY ENGINEER, AMEND THE TITLE AND CLASSIFICATION OF THE FACILITIES DIRECTOR POSITION TO FACILITIES DEPUTY DIRECTOR, AND APPROVE THE PUBLIC WORKS DIRECTOR/CITY ENGINEER EMPLOYMENT AGREEMENT [RESOLUTION NO. 2019-043] 175 STUDY SESSION PAGE 1. RECEIVE AND FILE ANNUAL REPORT OF ACTIVE DEVELOPMENT AGREEMENTS 205 2. DISCUSS 2019 UPDATE OF THE DEVELOPMENT IMPACT FEE STUDY 221 CITY COUNCIL AGENDA 4 OCTOBER 1, 2019 PUBLIC HEARINGS – NONE DEPARTMENTAL REPORTS 1. CITY MANAGER 2. CITY ATTORNEY 3. CITY CLERK 4. COMMUNITY RESOURCES 5. DESIGN AND DEVELOPMENT 6. FACILITIES 7. FINANCE – INVESTMENT POLICY CERTIFICATION 311 MAYOR’S AND COUNCIL MEMBERS’ ITEMS REPORTS AND INFORMATIONAL ITEMS 1. CVAG COACHELLA VALLEY CONSERVATION COMMISSION (Evans) 2. CVAG ENERGY AND ENVIRONMENTAL RESOURCES COMMITTEE (Evans) 3. CVAG EXECUTIVE COMMITTEE (Evans) 4. GREATER PALM SPRINGS CONVENTION AND VISITORS BUREAU (Evans) 5. LEAGUE OF CALIFORNIA CITIES DELEGATE (Evans) 6. COACHELLA VALLEY WATER DISTRICT JOINT POLICY COMMITTEE (Evans) 7. SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS (Evans) 8. ECONOMIC DEVELOPMENT SUBCOMMITTEE (Evans & Radi) 9. COACHELLA VALLEY MOUNTAINS CONSERVANCY (Fitzpatrick) 10. DESERT RECREATION DISTRICT COMMITTEE (Fitzpatrick and Radi) 11. COACHELLA VALLEY UNIFIED SCHOOL DISTRICT COMMITTEE (Fitzpatrick & Peña) 12. RIVERSIDE COUNTY TRANSPORTATION COMMISSION (Fitzpatrick) 13. SILVERROCK EVENT SITE AD HOC COMMITTEE (Fitzpatrick) 14. CANNABIS AD HOC COMMITTEE (Peña and Sanchez) 15. CVAG PUBLIC SAFETY COMMITTEE (Peña) 16. EAST VALLEY COALITION (Peña) 17. CVAG VALLEY-WIDE HOMELESSNESS COMMITTEE (Peña) 18. LEAGUE OF CALIFORNIA CITIES – PUBLIC SAFETY POLICY COMMITTEE (Peña) 19. CVAG TRANSPORTATION COMMITTEE (Radi) 20. GREATER CV CHAMBER OF COMMERCE INFORMATION EXCHANGE COMMITTEE (Radi) 21. SUNLINE TRANSIT AGENCY (Radi) 22. CITYWIDE SECURITY CAMERAS AD HOC COMMITTEE (Radi) 23. DESERT SANDS UNIFIED SCHOOL DISTRICT COMMITTEE (Radi and Sanchez) 24. ANIMAL CAMPUS COMMISSION (Sanchez) 25. COACHELLA VALLEY ECONOMIC PARTNERSHIP (Sanchez) 26. LEAGUE OF CALIFORNIA CITIES – GOVERNANCE, TRANSPARENCY AND LABOR POLICY COMMITTEE (Sanchez) CITY COUNCIL AGENDA 5 OCTOBER 1, 2019 27. RIVERSIDE LOCAL AGENCY FORMATION COMMISSION (Sanchez) ADJOURNMENT ********************************* The next regular meeting of the City Council will be held on October 15, 2019 at 4:00 p.m. at the City Hall Council Chambers, 78495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, Monika Radeva, City Clerk, of the City of La Quinta, do hereby declare that the foregoing Agenda for the La Quinta City Council meeting was posted on the City’s website, near the entrance to the Council Chambers at 78495 Calle Tampico, and the bulletin boards at the Stater Brothers Supermarket at 78630 Highway 111, and the La Quinta Cove Post Office at 51321 Avenida Bermudas, on September 27, 2019 DATED: September 27, 2019 MONIKA RADEVA, City Clerk City of La Quinta, California Public Notices  The La Quinta City Council Chamber is handicapped accessible. If special equipment is needed for the hearing impaired, please call the City Clerk’s office at (760) 777-7092, twenty-four (24) hours in advance of the meeting and accommodations will be made.  If special electronic equipment is needed to make presentations to the City Council, arrangements should be made in advance by contacting the City Clerk’s office at (760) 777-7092. 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 78495 Calle Tampico, La Quinta, California, 92253, during normal business hours. CITY COUNCIL MINUTES Page 1 of 16 SEPTEMBER 17, 2019 CITY COUNCIL MINUTES TUESDAY, SEPTEMBER 17, 2019 CALL TO ORDER A regular meeting of the La Quinta City Council was called to order at 3:00 p.m. by Mayor Evans. PRESENT: Councilmembers Fitzpatrick, Peña, Radi, Sanchez, Mayor Evans ABSENT: None PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None CONFIRMATION OF AGENDA City Manager McMillen requested to introduce new City Staff under the Announcements, Presentations, and Written Communications section of the meeting. Mayor Evans requested to add a presentation by Martin Arredondo regarding the City’s recognition award for most units of blood collected overall during LifeStream’s 2019 Nine Cities Blood Drive Challenge. Councilmember Radi requested to comment on Consent Calendar Item Nos. 2, 3, 4, and 5; and to pull Consent Calendar Item No. 9 for a separate vote. Councilmember Peña said he will recuse himself from discussion and vote on Consent Calendar Item No. 10 due to potential conflict of interest stemming from the proximity of the project to real property he owns. City Clerk Radeva said: Consent Calendar Item No. 3 – a typo was corrected in the staff report to correctly reflect the year for the training is 2020, and not 2019; and Public Hearing Item No. 2 – the City received correspondence from Palmieri Tyler Attorneys at Law on behalf of their client and property owner, DWCG1, LLC, of one of the properties under consideration. Council concurred. CONSENT CALENDAR ITEM NO. 1 7 CITY COUNCIL MINUTES Page 2 of 16 SEPTEMBER 17, 2019 CLOSED SESSION 1. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9; NAME OF CASE: WASHINGTON-111, LTD., CLAIMANT, V. CITY OF LA QUINTA, RESPONDENT, JUDICATE WEST ALTERNATIVE DISPUTE RESOLUTION CASE NO. A257070. 2. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO PARAGRAPH (2) OR (3) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9 (NUMBER OF POTENTIAL CASES: 1) 3. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO PARAGRAPH (2) OR (3) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9 (NUMBER OF POTENTIAL CASES: 1) 4. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54957.6; CITY DESIGNATED REPRESENTATIVE: CHRIS ESCOBEDO, DIRECTOR OF COMMUNITY RESOURCES; AND EMPLOYEE ORGANIZATION: LA QUINTA CITY EMPLOYEES’ ASSOCIATION. COUNCIL RECESSED THE OPEN SESSION PORTION OF THE MEETING AND MOVED INTO CLOSED SESSION AT 3:04 P.M. MAYOR EVANS RECONVENED THE OPEN SESSION PORTION OF THE CITY COUNCIL MEETING AT 4:00 P.M. WITH ALL MEMBERS PRESENT REPORT ON ACTION(S) TAKEN IN CLOSED SESSION: City Attorney Ihrke reported no actions were taken in Closed Session that require reporting pursuant to Government Code section 54957.1 (Brown Act). PLEDGE OF ALLEGIANCE Councilmember Radi led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA PUBLIC SPEAKER: Kathy Kronemeyer, La Quinta – thanked Council for expanding the water aerobics program at the City’s community pool at Fritz Burns park by adding classes and approving year-round pool operations; said Desert Recreation District is doing a great job managing the pool operations, 8 CITY COUNCIL MINUTES Page 3 of 16 SEPTEMBER 17, 2019 and truly listens to the residents’ requests and recommendations regarding programming needs; and recommended that the year-round operation and new programming be better advertised to inform the community of the changes, and suggested enhancing lighting at the facility. ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS 1. added by City Manager McMillen >>> INTRODUCE NEW CITY STAFF City Manager McMillen introduced Management Specialist Doug Kinley III with the City Manager’s Office; Mr. Kinley spoke about his education, past professional experience, and career goals. 2. renumbered >>> LEADERSHIP INVESMENT KNOWLEDGE SHARING (LINKS) – CITY OF LA QUINTA ACADEMY RECOGNITION Mayor Evans explained the City’s LINKS program, and jointly with Councilmembers presented the following City employees with a certificate of completion in the program: Employee Name Department  Alfred Berumen, Management Analyst Facilities  Michael Calderon, Management Assistant Community Resources  Gerald Duchene, Code Officer I Community Resources  Angela Ferreira, Management Analyst City Manager’s Office  Tania Flores, Management Assistant City Clerk’s Office  Scott Hamilton, Traffic Operations Analyst Design and Development  Julie Mignogna, Management Analyst Design and Development  Monika Radeva, City Clerk City Clerk’s Office  Benjamin Tellez, Maintenance Worker I Facilities 3. renumbered >>> PROCLAMATION IN RECOGNITION OF CONSTITUTION WEEK – SEPTEMBER 17-23, 2019, COMMEMORATING THE SIGNING OF THE U. S. CONSTITUTION Mayor Evans and Councilmembers presented Chapter Regent Norma Burton, and Members Rosemary Hallick and Meredith Bettencourt with the National Society Daughters of American Revolution with a proclamation in recognition of Constitution Week celebrating and commemorating the 232nd anniversary of the signing of the U.S. Constitution. 4. added by Mayor Evans >>> LIFESTREAM BLOOD BANK – NINE CITIES BLOOD CHALLENGE RECOGNITION FOR THE MOST UNITS COLLECTED BY MARTIN ARREDONDO 9 CITY COUNCIL MINUTES Page 4 of 16 SEPTEMBER 17, 2019 Mayor Evans said on July 27, 2019, the City of La Quinta held a blood drive at the Wellness Center as part of the City’s participation in the LifeStream’s 2019 Nine Cities Blood Drive Challenge; La Quinta collected the most units overall (115 units) during the month of July. Regional Development Coordinator Martin Arredondo with LifeStream Blood Bank spoke about the great need and importance for blood donations; and presented Council with a plaque recognizing La Quinta’s contribution and collecting the most units overall. Realtor Stephanie West with Keller Williams Realty said the blood donation drive challenge the organization held on July 31, 2019, had a great turn-out; another such event will be held on October 28, 2019; commended and thanked everyone who supported and participated in the event; and encouraged the community to continue to give the gift of life at mobile drives or donor centers. CONSENT CALENDAR 1. APPROVE MINUTES OF AUGUST 6, 2019 2. AUTHORIZE OVERNIGHT TRAVEL FOR THE FINANCE DIRECTOR AND TWO FINANCE DEPARTMENT EMPLOYEES TO ATTEND THE CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS (CSMFO) CONFERENCE IN ANAHEIM, CALIFORNIA, JANUARY 28 – 31, 2020 3. AUTHORIZE OVERNIGHT TRAVEL FOR ACCOUNTANT TECHNICIAN TO ATTEND THE CALIFORNIA ASSOCIATION OF PUBLIC PROCUREMENT OFFICIALS (CAPPO) ANNUAL CONFERENCE IN SAN DIEGO, CALIFORNIA, FEBRUARY 17 – 21, 2020 4. AUTHORIZE OVERNIGHT TRAVEL FOR THE COMMUNITY RESOURCES DIRECTOR TO ATTEND THE CALIFORNIA PUBLIC EMPLOYERS LABOR RELATIONS ASSOCIATION TRAINING CONFERENCE IN MONTEREY, CALIFORNIA, NOVEMBER 19 – 22, 2019 5. AUTHORIZE OVERNIGHT TRAVEL FOR FACILITIES MAINTENANCE WORKER I TO ATTEND THE INTERNATIONAL MUNICIPAL SIGNAL ASSOCIATION COURSE IN ONTARIO, CALIFORNIA, NOVEMBER 4 – 7, 2019 6. EXCUSE ABSENCES FOR PLANNING COMMISSIONERS McCUNE AND PROCTOR FROM THE SEPTEMBER 24, 2019 MEETING, AND 10 CITY COUNCIL MINUTES Page 5 of 16 SEPTEMBER 17, 2019 PLANNING COMMISSIONER CALDWELL FROM THE OCTOBER 8, 2019 MEETING 7. ADOPT RESOLUTION TO AUTHORIZE THE ADOPTION OF CALTRANS’ LOCAL ASSISTANCE PROCEDURES MANUAL CHAPTER 10 [RESOLUTION NO. 2019-034] 8. ADOPT RESOLUTION TO APPROVE TIME EXTENSION TO COMPLETE ON-SITE IMPROVEMENTS FOR THE CAPISTRANO RESIDENTIAL DEVELOPMENT (TRACT MAP NO. 31910) LOCATED ON THE WEST SIDE OF MONROE STREET APPROXIMATELY 1,300 FEET NORTH OF AVENUE 58 [RESOLUTION NO. 2019-035] 9. pulled for a separate vote by Councilmember Radi >>> ADOPT RESOLUTION TO APPROVE TIME EXTENSION TO COMPLETE ON- SITE IMPROVEMENTS FOR GRIFFIN RANCH RESIDENTIAL DEVELOPMENT (TRACT MAP NO. 32879) LOCATED AT THE SOUTHEAST CORNER OF AVENUE 54 AND MADISON STREET [RESOLUTION NO. 2019-036] 10. pulled for a separate vote by Councilmember Pena >>> APPROPRIATE FUNDS, APPROVE PLANS, SPECIFICATIONS, ENGINEER’S ESTIMATE, AND ADVERTISE FOR BID THE FRITZ BURNS PARK SIDEWALK AND PARKING PROJECT LOCATED ON THE NORTH SIDE OF FRANCIS HACK LANE ALONG THE SKATE PARK (PROJECT NO. 2017-22) 11. ACCEPT OFF-SITE AND ON-SITE IMPROVEMENTS ASSOCIATED WITH THE MONTERRA RESIDENTIAL DEVELOPMENT (TRACT MAP NO. 32742 LOCATED ON MONROE STREET BETWEEN AVENUE 54 AND AIRPORT BOULEVARD 12. APPROVE AGREEMENT FOR CONTRACT SERVICES WITH CASC ENGINEERING AND CONSULTING FOR ON-CALL STORMWATER COMPLIANCE INSPECTION SERVICES 13. APPROVE AGREEMENT FOR CONTRACT SERVICES WITH ST. FRANCIS ELECTRIC FOR ON-CALL TRAFFIC SIGNAL REPAIR SERVICES 14. APPROVE DEMAND REGISTERS DATED AUGUST 2, 9, 16, 23, AND 30, 2019 11 CITY COUNCIL MINUTES Page 6 of 16 SEPTEMBER 17, 2019 15. RECEIVE AND FILE FOURTH QUARTER 2018/19 TREASURY REPORTS FOR APRIL, MAY, AND JUNE 2019, WITH FISCAL YEAR- END SUMMARY 16. AWARD AGREEMENT FOR CONTRACT SERVICES TO DESERT LIMNOLOGISTS, INC., DBA SOUTHWEST AQUATICS FOR CIVIC CENTER CAMPUS LAKE MAINTENANCE SERVICES (PROJECT NO. 2019-11) CONSENT CALENDAR ITEM NOs. 2, 3, 4, AND 5 Councilmember Radi said Council is very supportive of Staff development, and encourages its Staff to attend trainings to continue to enhance their knowledge and leadership, establish connections, and identify best practices to better serve the City and the needs of the community. MOTION – A motion was made and seconded by Councilmembers Radi/Fitzpatrick to approve Consent Calendar Item Nos. 1-8 and 11-16, as recommended, with Item Nos. 7 and 8 adopting Resolution Nos. 2019-034 and 2019-035, respectively. Motion passed unanimously. CONSENT CALENDAR ITEM NO. 9 Councilmember Radi said he supports the requested time extension; written communications from citizens have been received and made part of the record; the developer will need to meet the City’s development standards; and asked City Manager McMillen to provide a status update on this project based on Staff’s site inspections. City Manager McMillen said Staff has been in communications with the Griffin Ranch Streets Improvement Committee and the developer (Lennar Homes), and said all parties are currently in agreement as to the necessary street improvements, and phased timeline to complete the improvements. MOTION – A motion was made and seconded by Councilmembers Radi/Fitzpatrick to approve Consent Calendar Item No. 9 adopting Resolution No. 2019-036 as recommended. Motion passed unanimously. COUNCILMEMBER PEÑA RECUSED HIMSELF FROM VOTING ON CONSENT CALENDAR ITEM NO. 10 DUE TO A POTENTIAL CONFLICT OF INTEREST STEMMING FROM THE PROXIMITY OF THE PROJECT TO REAL PROPERTY HE OWNS CONSENT CALENDAR ITEM NO. 10 MOTION – A motion was made and seconded by Councilmembers Fitzpatrick/Radi to approve Consent Calendar Item No. 10 as recommended. Motion passed: ayes – 4, noes – 0, abstain – 1 (Peña). 12 CITY COUNCIL MINUTES Page 7 of 16 SEPTEMBER 17, 2019 BUSINESS SESSION – None STUDY SESSION 1. DISCUSS SHORT-TERM VACATION RENTAL (STVR) PROGRAM AND CODE COMPLIANCE UPDATES HUB Manager Sanchez, Management Specialist Mendoza, Code Compliance Supervisor Meredith, and Public Safety Manager Mendez presented the staff report, which is on file in the Clerk’s Office. Council discussed the number of registered STVR properties has increased from 2018 due to non-compliant properties being brought under compliance in 2019; certain properties continuously don’t follow the regulations established by the City’s STVR program and require compliance enforcement interference; the level of property maintenance and compliance greatly differ between owner-occupied versus investor-owned STVR properties; the hotline is an effective and necessary tool to monitor compliance, however, the property owner(s) is responsible to ensure and enforce compliance with the City’s STVR regulations, not the neighbors calling in to report issues; how other communities are dealing with challenges imposed by STVR, including complete ban of such programs, over- regulating, limiting the number of STVR permits allowed, shifting the responsibility for paying the fines from the property owner to the tenants, requiring the local contact’s name and phone number be posted on each property and clearly visible from the street, and the local contact has 45 minutes to respond to address the issue reported; the City continuously monitors the STVR program in order to be able to implement changes that allow Staff to better invoke, manage, and enforce compliance; importance to develop tracking mechanism to identify what number of total noise complaints received is related to STVR specifically; non-compliance with parking and property maintenance regulations could also result in violations; current definition of noise under the La Quinta Municipal Code (LQMC) and the 10 p.m. hourly restriction; the City has suspended 12 STVR licenses in 2019 because these properties were issued three or more violations, mostly due to the lack of responding within the established 45 minute period, and the measures Staff has in place to ensure suspended properties do not continue to rent for the duration of the suspension; if STVR activities continue during a suspension, additional fine is imposed and the suspension period is extended; a license suspension is a public record; explore the ability to post the STVR license suspension on the property to increase community awareness, as well as posting a list of suspended STVR permits by address on the City’s website. Council further discussed pros and cons of limiting the number of allowed STVR permits based on a random drawing; consider amending the “Three Strikes 13 CITY COUNCIL MINUTES Page 8 of 16 SEPTEMBER 17, 2019 Policy” of the LQMC to impose a permanent STVR permit suspension; the number of properties reporting zero transient occupancy tax (TOT) income, and Staff’s review process to ensure reporting compliance; community outreach efforts and collaborations with homeowners associations (HOAs). Mayor Evans noted this item is a Study Session which provides an opportunity to review how the program is progressing, discuss what is going well and areas for improvement, receive public input on how the program can be enhanced, and Staff’s update on the Request for Proposal for STVR compliance monitoring and ability to apply and issue permits and TOT reporting online. The following PUBLIC SPEAKERs spoke in opposition of STVR in La Quinta, and provided comments on the challenges they have experienced with STVR in their communities; including a variety of excessive noise complaints such as playing loud music, pool splashing, yelling and screaming, partying after hours, etc.; bright lights that shine into the adjacent properties; illegal and excessive parking of vehicles that exceed the allowed parking restrictions; police response times for noise complaints vary dependent on patrol availability; STVR properties owned by investors are less responsive to community complaints than owner occupied properties; properties that are out of compliance continue to rent; fines need to be substantially increased to a level that will evoke compliance; residential communities are transitioning into hotel districts, and destroying the peace and neighborhood-type character of the community; high concentration of STVRs, and encouraged limiting the number of STVR permits allowed; HOAs are equipped to deal with STVR violators because they have security on site that can address issues immediately; a third of the City’s TOT revenues are generated from STVRs; flying drones over neighboring properties; excessive trash and debris; smoking cannabis; privacy concerns; unlicensed STVR properties; and adverse effects of STVR to property values:  John Jameson, La Quinta;  Renee Payen, La Quinta – did not speak, and provided written comments read into the record by Mayor Evans;  Neeta Quinn, La Quinta; also submitted written comments, which were made available to the public and incorporated into the record;  Britt Wilson read into the records written comments submitted by Maria Puente, La Quinta, which were made available to the public and incorporated into the record; and  Cindy Warren, La Quinta; also submitted written comments, which were made available to the public and incorporated into the record. Staff explained a lot of the complaints received through the STVR hotline are either unfounded because they are not a violation of the LQMC, or Staff is unable to confirm the violation; there are instances when based on one complaint, Staff has observed and confirmed three violations, and the property was cited and the 14 CITY COUNCIL MINUTES Page 9 of 16 SEPTEMBER 17, 2019 license was revoked immediately; and citizens can make recordings of violations and provide it to Staff or the Police as evidence of the violation. The following PUBLIC SPEAKERs spoke in support of STVR in La Quinta, and provided comments regarding their experience with STVR and recommended best practices that can assist property owners and management companies in monitoring STVR properties and ensure compliance; including investing TOT revenue into the City’s STVR program to increase policing and enforce compliance; using a hidden noise detector (“noise aware system”) to monitor noise levels; installing surveillance cameras on the outside of the property to monitor noise, parking, and partying compliance; owner-managed STVR properties are usually compliant and better maintained than investor-owned properties; providing literature to the tenants to educate them on the STVR regulations they are subject to, including citations; personal benefits of STVR properties; importance to place the burden on non-compliant properties instead of considering eliminating STVRs all together; importance of communicating expectations to tenants from the beginning and holding them accountable; commended Staff for the community workshops held; public safety concerns existed prior to the STVR program implementation and growth; emphasis on implementing TOT electronic submittals; increase compliance monitoring on unregistered STVR; commended Staff for their efforts in managing and enhancing the program; and proactively managing the properties by establishing relationships with the neighbors, addressing matters before they become an issue, and being available and responsive:  Todd Ferguson, La Quinta  Vidal Coronel, La Quinta  Jose Coronel, La Quinta  Lori Jonasson, La Quinta  Tim Jonasson, La Quinta  Michele Hamid, Indio  David Dinnel, La Quinta Council reached a consensus that having a STVR program that is well managed and regulated is more efficient and better equips the City to control and address STVR-related issues, than to eliminate the program in its entirety; eliminating the program will not eliminate the problems as STVR activity will continue; it is very important to hold property owners and operators accountable when they are not meeting the City’s regulations because the onus for compliance is with them, and not with the neighbors; there are a lot of responsible property owners that manage their properties well; when property owners are applying for a STVR permit, as part of the application package Staff could recommend the use of a standardized tenant agreement template that aims to increase compliance by clearly listing the City’s regulations; imposing a saturation limit on STVR permits will not preclude non-licensed activity; explore the ability to add a checkbox on the police departments complaint form to specifically identify STVR-related noise 15 CITY COUNCIL MINUTES Page 10 of 16 SEPTEMBER 17, 2019 cases; importance of identifying the proper level of regulations to keep the program in place and running smoothly; individual freedom and rights are vital components of our nation; encouraged use of the hotline; TOT revenue is invested back into the community via infrastructure improvements, public facilities, programs, services, etc.; tourism is vital to the economic prosperity of the Coachella Valley; ability to submit permit applications and TOT payments online is imperative; importance to have policy in place that allows the City to manage the program; explore a better definition of noise, other than amplified sound; impose harsher penalties to those who do not adhere to the City’s regulations; publish a list of the suspended properties by address on the City’s website; identify investor-owned properties and monitor violations; will continue to monitor and re-visit the STVR program every time there is an issue, and provide Staff with policy that will allow them to effectively manage the program and address the issues at hand; continue investing to further enhance the program and solve challenges; and explore publications such as postcards, The Gem, etc. Council encouraged property owners and managers to explore creating a forum where ideas, best practices, and experience can be shared to help each other find alternatives and provide support when dealing with challenges related to STVR. Council commended Staff for efficiently managing the program, continuously identifying areas to improve and enhance it, to preserve the integrity and quality of the La Quinta community. Council apologized to the residents who are adversely impacted by STVR activity; thanked everyone for taking the time to show up and speak or provided written comments; said it is imperative to receive public input on all matters under consideration; commended citizens for providing constructive policy-driven comments; and noted the importance to hear from both sides to help find the right balance. Staff thanked Council for their support; and encouraged residents who are experiencing challenges with STVR to reach out to Staff for assistance to help resolve issues and identify ways to be proactive, in order to continue to improve the program for the community, and because Staff takes great pride in the services the City provides; and Staff will explore scheduling a STVR community workshop focused on adversely impacted residents to identify items that could be addressed. COUNCIL RECESSED FOR A SHORT BREAK AT 6:32 P.M. MAYOR EVANS RECONVENED THE OPEN SESSION PORTION OF THE CITY COUNCIL MEETING AT 6:49 P.M. WITH ALL MEMBERS PRESENT 16 CITY COUNCIL MINUTES Page 11 of 16 SEPTEMBER 17, 2019 PUBLIC HEARINGS – After 5:00 P.M. 1. ADOPT RESOLUTION TO APPROVE AND ADOPT THE RELOCATION PLAN PREPARED FOR THE ACQUISITION OF PERMANENT ROADWAY AND PUBLIC UTILITY EASEMENT INTERESTS IN A PORTION OF CERTAIN REAL PROPERTY IDENTIFIED AS ASSESSOR PARCEL NO. 600-030-010, 46400 DUNE PALMS ROAD, LOCATED IN LA QUINTA, RIVERSIDE COUNTY, CALIFORNIA, FOR THE DUNE PALMS ROAD BRIDGE PROJECT (PROJECT NO. 2011-05/111205) [RESOLUTION NO. 2019-037] Management Analyst Mignogna presented the staff report, which is on file in the Clerk’s Office. Council discussed there have been no changes to the relocation plan, and Council’s re-approval will adopt a new resolution that will supersede the resolution previously adopted. MAYOR EVANS DECLARED THE PUBLIC HEARING OPEN AT 6:52 P.M. PUBLIC SPEAKER: None. MAYOR EVANS DECLARED THE PUBLIC HEARING CLOSED AT 6:52 P.M. MOTION – A motion was made and seconded by Councilmembers Peña/Fitzpatrick to adopt Resolution No. 2019-037 to adopt and approve the relocation plan prepared for the acquisition of permanent roadway and public utility easement interests in a portion of certain real property identified as Assessor Parcel No. 600-030-010, 46400 Dune Palms Road, located in La Quinta, Riverside County, California, in accordance with the California Relocation Assistance Law and the California Relocation and Real Property Acquisition Guidelines, superseding Resolution No. 2019-033 as recommended: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING AND ADOPTING THE RELOCATION PLAN PREPARED FOR THE ACQUISITION OF PERMANENT ROADWAY AND PUBLIC UTILITY EASEMENT INTERESTS IN A PORTION OF CERTAIN REAL PROPERTY IDENTIFIED AS ASSESSOR PARCEL NO. 600-030-010, 46400 DUNE PALMS ROAD, LOCATED IN LA QUINTA, RIVERSIDE COUNTY, CALIFORNIA, FOR THE DUNE PALMS ROAD BRIDGE PROJECT PROJECT NO. 2011-05 / 111205 ADDRESS: 46400 DUNE PALMS ROAD APN: 600-030-010 Motion passed unanimously. 17 CITY COUNCIL MINUTES Page 12 of 16 SEPTEMBER 17, 2019 2. APPROVE RESOLUTIONS DECLARING THE PUBLIC INTEREST AND NECESSITY TO ACQUIRE PORTIONS OF PROPERTIES LOCATED AT: (1) 46400 DUNE PALMS ROAD; (2) 79440 CORPORATE CENTER DRIVE; AND (3) ASSESSOR PARCEL NUMBER (APN) 600-030-018, FOR THE DUNE PALMS ROAD BRIDGE PROJECT (PROJECT NO. 2011 05/111205) THROUGH EMINENT DOMAIN [RESOLUTION NOS. 2019-038, 2019-039, AND 2019-040] Management Analyst Mignogna presented the staff report, which is on file in the Clerk’s Office. Staff noted receipt of written correspondence from Peterson Law Group on behalf of the Chin Family Properties Limited Partnership (Chin) and Palmieri Tyler Attorneys at Law on behalf of DWCG1, LLC: Council discussed timeline for relocating the residents. MAYOR EVANS DECLARED THE PUBLIC HEARING OPEN AT 6:58 P.M. PUBLIC SPEAKER: None. Mayor Evans said the City received correspondence which was made available to the public, and incorporated into the record. Legal Counsel Cosgrove with Rutan and Tucker, LP provided information regarding the comments provided by the correspondence received from Peterson Law Group on behalf of the Chin Family Properties Limited Partnership and Palmieri Tyler Attorneys at Law on behalf of DWCG1, LLC:  August 30, 2019 correspondence from Peterson Law Group:  Installation of raised median to eliminate left-turn movement to and from Dune Palms Road; Mr. Cosgrove said these improvements do not affect the circuity of travel to a level the City believes would exceed a threshold for actionable damage or to trigger additional environmental review; and  Additional travel distance due to the elimination of the left turn movement; Mr. Cosgrove said in terms of south-bound traffic the nearest U-turn availability is 2,180 ft. to the southerly entrance and 2,460 ft. to the northerly entrance; in terms of north-bound traffic a U- turn is available approximately 100 ft. away near the La Quinta High School; and noted that if the vacant property to the south develops it will likely develop with a traffic signal which will allow U-turn movement approximately quarter of a mile away; and  Generating additional traffic trips; Mr. Cosgrove said the environmental review does not show this project will increase the number of traffic trips; the project is designed to accommodate ambient background growth, and not to generate additional growth; and 18 CITY COUNCIL MINUTES Page 13 of 16 SEPTEMBER 17, 2019  Increase of Noise; Mr. Cosgrove said the environmental review indicates possible four to seven decibels increase of noise, experts generally advise that anything change of three decibels or lower is undetectable; the identified noise level is within the City’s established noise standard for a front yard, thus there is no substantial impact; also, as part of the project a perimeter wall will be built, which will further mitigate noise; and  Regarding the allegation of improper piecemealing this project from the Dune Palms Road Widening project; Mr. Cosgrove said the “Road Widening” and “Bridge” projects are two separate projects that have had separate environmental reviews, separate construction documents, and different funding sources. The Bridge project is partially funded with federal funds which imposed a separate schedule; and  Regarding the allegation that a new environmental study should be conducted; Mr. Cosgrove said the issues identified are not those that would trigger additional environmental review under California Environmental Quality Act Regulations Section 15162 – Subsequent EIRs and Negative Declarations.  September 17, 2019 correspondence from Palmieri Tyler Attorneys at Law:  Regarding the allegation the City should not be acquiring easements and instead should acquire fee interest; Mr. Cosgrove said under the California Code of Civil Procedure, the City is allowed to take only what is necessary for the project under eminent domain, and the City can accomplish the project objectives within the scope of the rights being acquired in the defined easements; and  Regarding the concern that the proposed permanent easement takings burden the private property with risk and liability; Mr. Cosgrove said staff is aware of no instance of liability arising from residual ownership under street easements from roadway issues, so far in La Quinta, thus there is no precedent for this concern; rather, the owner retaining ownership of the easement land inures to the benefit of the owners in terms of calculating buildable square footage, set-backs, lot coverage, minimum lot size, etc., which further supports the finding required that the project is planned in a manner that will create the greatest public good and the least private injury. Mr. Cosgrove said that legal counsel does not believe that any of the comments received should dissuade Council from adopting the resolutions as recommended by Staff. MAYOR EVANS DECLARED THE PUBLIC HEARING CLOSED AT 7:05 P.M. MOTION – A motion was made and seconded by Councilmembers Peña/Radi to adopt Resolution Nos. 2019-038, 2019-039, and 2019-040 declaring that the 19 CITY COUNCIL MINUTES Page 14 of 16 SEPTEMBER 17, 2019 public interest and necessity require the acquisition of portions of properties through eminent domain located on three properties: A. (1) 46400 Dune Palms Road; APN 600-030-010 (portion); Owner: Chin Family (2) 46400 Dune Palms Road; APN 600-030-010 (Space 1 Mobile Home Coach); Owner: Yvette Ontiveros; (3) 46400 Dune Palms Road; APN 600-030-010 (Space 31 Mobile Home Coach); Owner: Hilda Bedolla; B. APN 600-030-018 (portion); Owner: DWCG1, LLC; and C. 79440 Corporate Center Drive; APN 600-390-033 (portion); Owner: James R. Paul and Sharon L. Paul, Trustees. as recommended: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, DECLARING THE PUBLIC INTEREST AND NECESSITY TO ACQUIRE PORTIONS OF PROPERTY LOCATED AT 46400 DUNE PALMS ROAD, AND APPROVING AND ADOPTING A RESOLUTION OF NECESSITY PROJECT NO. 2011-05 / 111205 APN: 600-030-010 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, DECLARING THE PUBLIC INTEREST AND NECESSITY TO ACQUIRE PORTIONS OF PROPERTY LOCATED ON DUNE PALMS ROAD, ASSESSOR PARCEL NO. 600-030-018, AND APPROVING AND ADOPTING A RESOLUTION OF NECESSITY PROJECT NO. 2011-05/111205 APN: 600- 030-018 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, DECLARING THE PUBLIC INTEREST AND NECESSITY TO ACQUIRE PORTIONS OF PROPERTY LOCATED AT 79440 CORPORATE CENTER DRIVE, ASSESSOR PARCEL NO. 600-390-033, AND APPROVING AND ADOPTING A RESOLUTION OF NECESSITY PROJECT NO. 2011- 05/111205 APN: 600-390-033 Motion passed unanimously. DEPARTMENTAL REPORTS All reports are on file in the City Clerk’s Office. MAYOR’S AND COUNCIL MEMBERS’ ITEMS Councilmember Peña said he will be attending Coachella Valley Association of Governments (CVAG) Valley-Wide Homelessness Committee tomorrow, and there will be a pre-meeting to review responses received to Requests for 20 CITY COUNCIL MINUTES Page 15 of 16 SEPTEMBER 17, 2019 Proposals for homelessness services; and discuss homelessness related funds received by other Coachella Valley cities to ensure services are not being duplicated throughout the valley; Path of Life contract has been extended through the end of December 2019. Councilmember Fitzpatrick said the 9/11 Candlelight Vigil was a wonderful ceremony honoring the victims of the World Trade Center, Pentagon, and Shanksville, Pennsylvania; and the event was very well attended. Councilmember Sanchez reported on his and Councilmember Peña’s attendance at the La Quinta High School (LQHS) first home game on September 6, 2019. Mayor Evans reported on Council’s participation at LQHS’s fundraising night for football and cheer held on September 3, 2019. Mayor Evans reported on her four-team’s win at the League of California Cities Golf Tournament held on September 13, 2019 and shared the trophy award they received. Mayor Evans reported on her presentation at the Women’s Council of Realtors Mayor’s Panel in Rancho Mirage on September 6, 2019, and that she spoke to the Berkshire Hathaway realtor group today and provided a La Quinta update. Mayor Evans thanked Councilmember Fitzpatrick for stepping in to cover “Top Readers” recognizing students reading during the summer from La Quinta’s Boys and Girls Club. Mayor Evans reported on Council’s attendance and participation at SunLine Transit Agency’s 2019 Student Art Contest; the unveiling of the buses wrapped with the first-place winning submissions was held on August 13, 2019 at SunLine’s headquarters in Thousand Palms. Mayor Evans said the City will be holding a series of community workshops to provide information, maps, and answer citizens’ questions regarding the December 8, 2019 Ironman Triathlon race. Councilmember Peña said he and several Staff members attended the Desert Valley Builders Association luncheon, held in Rancho Mirage on September 12, 2019, regarding the new Regional Housing Need Allocation mandates from the California Department of Housing and Community Development. 21 CITY COUNCIL MINUTES Page 16 of 16 SEPTEMBER 17, 2019 REPORTS AND INFORMATIONAL ITEMS La Quinta’s representative for 2019, Mayor Evans reported on her participation in the following organizations’ meetings: CVAG COACHELLA VALLEY CONSERVATION COMMISSION CVAG ENERGY AND ENVIRONMENTAL RESOURCES COMMITTEE La Quinta’s representative for 2019, Councilmember Fitzpatrick reported on her participation in the following organizations’ meetings: COACHELLA VALLEY MOUNTAINS CONSERVANCY RIVERSIDE COUNTY TRANSPORTATION COMMISSION (RCTC) La Quinta’s representative for 2019, Councilmember Radi reported on his participation in the following organization’s meeting: CVAG TRANSPORTATION COMMITTEE ADJOURNMENT There being no further business, a motion was made and seconded by Councilmembers Radi/Fitzpatrick to adjourn at 7:21 p.m. Motion passed unanimously. Respectfully submitted, MONIKA RADEVA, City Clerk City of La Quinta, California 22 City of La Quinta CITY COUNCIL MEETING: October 1, 2019 STAFF REPORT AGENDA TITLE: APPROVE DEMAND REGISTERS DATED SEPTEMBER 6 AND 13, 2019 RECOMMENDATION Approve demand registers dated September 6 and 13, 2019. EXECUTIVE SUMMARY – None FISCAL IMPACT Demand of Cash: City 1,715,384.77$ Successor Agency of RDA 432.27$ Housing Authority 6,642.72$ 1,722,459.76$ BACKGROUND/ANALYSIS Routine bills and payroll must be paid between Council meetings. Attachment 1 details the weekly demand registers for September 6 and 13, 2019. Warrants Issued: 123767-123800 250,873.08$ 123801-123864 309,197.75$ Wire Transfers 907,969.78$ AP Voids (8,720.74)$ Payroll Tax Transfers 45,388.52$ Payroll Direct Dep & Chks #37447-37450 217,751.37$ 1,722,459.76$ In the amounts listed above, one check was voided and reissued due to nonreceipt by vendor. CONSENT CALENDAR ITEM NO. 2 23 The most significant expenditures on the demand register are: Account Name Amount Urban Habitat Env Construction 136,500.70$ August 2019 Landscape Landscapes Improvement PWLC II, INC Landscape 57,254.00$ September 2019 Contract Landscape & Lighting Vintage Associates Landscape 54,855.00$ September 2019 Contract Parks & Retention Basin Henry's Glass Construction 47,000.00$ City Hall Entry Doors Company Rutan & Tucker Various 39,681.46$ July 2019 Legal Services PurposeVendor Wire Transfers: Seven transfers totaled $907,970. Of this amount, $591,772 was for Stifel (Investments), $159,603 for PERS, and $149,628 for Landmark. (See Attachment 2 for a full listing). Investment Transactions: Full details of investment transactions as well as total holdings are reported quarterly in the Treasurer’s Report. Transaction Issuer Type Par Value Settle Date Coupon Rate Maturity Riverwood Bank CD 248,000$ 9/5/19 1.400% Maturity Federal National Mortgage Agency 500,000$ 9/12/19 1.750% Association Purchase Federal Farm Credit Bank Agency 500,000$ 9/12/19 1.600% ALTERNATIVES Council may approve, partially approve, or reject the demand registers. Prepared by: Bernice Choo, Account Technician Approved by: Rosemary Hallick, Financial Services Analyst Attachments:1. Demand Registers 2.Wire Transfers 24 9/24/2019 10:43:22 AM Page 1 of 4 Demand Register City of La Quinta Packet: APPKT02120 - BC 09/06/19 AmountVendor Name Payable Number Description (Item)Account Name Account Number Fund: 101 - GENERAL FUND 196.05LT Care Insurance PayLONG TERM CARE0002028CALPERS LONG-TERM CARE P…101-0000-20949 92.00United Way DeductionsCONTRIBUTION0002029UNITED WAY OF THE DESERT 101-0000-20981 162.00Garnishments PayableGARNISHMENT0002030RIVERSIDE COUNTY SHERIFF'S …101-0000-20985 127.00Maintenance/Services08/27/19 - CAMPUS PARK BRONZE SCULP…082719BETTER BUILDING COMPANY 101-3005-60691 780.00Marketing & Tourism Promoti…09/2019 LOCAL PRINT PUBLICATION1535TRAVELHOST PALM SPRINGS 101-3007-60461 850.00Materials/Supplies08/27/19 - INSTALL TREE PIONEER SAMLL…213373VINTAGE ASSOCIATES 101-3005-60431 48.51Materials/Supplies08/26/19 - KEYS SPORTS FIELD LIGHTS326326MUSCO CORPORATION 101-3005-60431 158.05Operating Supplies08/13/19 - B & G CLUB LUNCHEON3583410041495SMART & FINAL 101-3002-60420 108.94Cable - Utilities08/24-09/23/19 - FS #93 CABLE SVC (2415)502415082419TIME WARNER CABLE 101-2002-61400 102.01Uniforms08/13/19 - BUILDING OFFICIAL SHIRTS510544994MISSION LINEN SUPPLY 101-6003-60690 380.00Contract Traffic Engineer08/07/19 BLACKHAWK ST LIGHT DESIGN617890WILLDAN 101-7006-60144 1,482.00Contract Traffic Engineer08/07/19 CALLE TAMPICO/PARK GUARD617891WILLDAN 101-7006-60144 13,946.00Maintenance/Services08/27/19 SEASONS PARK & RETENTION B…91626PWLC II, INC 101-3005-60691 54.31Materials/Supplies08/28/19 - KEYSAA00059172LOCK SHOP INC, THE 101-3005-60431 25.18Materials/Supplies07/25-08/23/19 - WC MATERIALSAUG'19980015809…LOWE'S HOME IMPROVEMENT…101-3008-60431 43.07Materials/Supplies07/25-08/23/19 - CH MATERIALSAUG'19980015809…LOWE'S HOME IMPROVEMENT…101-3008-60431 27.83Materials/Supplies07/25-08/23/19 - CH MATERIALSAUG'19980015809…LOWE'S HOME IMPROVEMENT…101-3008-60431 26.37Materials/Supplies07/25-08/23/19 - CH ADAPTERAUG'19980015809…LOWE'S HOME IMPROVEMENT…101-3008-60431 20.62Materials/Supplies07/25-08/23/19 - CH MATERIALAUG'19980015809…LOWE'S HOME IMPROVEMENT…101-3008-60431 41.31Tools/Equipment07/25-08/23/19 - SMX PRO 5-CT SPRAYAUG'19980015809…LOWE'S HOME IMPROVEMENT…101-3008-60432 20.64Tools/Equipment07/25-08/23/19 - KOBALT MULTI DRIVEAUG'19980015809…LOWE'S HOME IMPROVEMENT…101-3008-60432 68.15Tools/Equipment07/25-08/23/19 - WELLER SOLDRING GUNAUG'19980015809…LOWE'S HOME IMPROVEMENT…101-3008-60432 25.16Tools/Equipment07/25-08/23/19 - TOOLSAUG'19980015809…LOWE'S HOME IMPROVEMENT…101-3008-60432 68.11Operating Supplies07/25-08/23/19 - MAINT OPERATIONSAUG'19980015809…LOWE'S HOME IMPROVEMENT…101-7003-60420 9.29Operating Supplies07/25-08/23/19 - DUCT TAPEAUG'19980015809…LOWE'S HOME IMPROVEMENT…101-7003-60420 15.49Operating Supplies07/25-08/23/19 - TRASH BAGSAUG'19980015809…LOWE'S HOME IMPROVEMENT…101-7003-60420 32.54Operating Supplies07/25-08/23/19 - EQPT/BUG SPRAYAUG'19980015809…LOWE'S HOME IMPROVEMENT…101-7003-60420 43.35Tools/Equipment07/25-08/23/19 - EAR MUFFSAUG'19980015809…LOWE'S HOME IMPROVEMENT…101-7003-60432 1,381.50Attorney846469 - SILVERROCK RESORTJUL'19RUTAN & TUCKER 101-1003-60153 696.00Attorney845815 - SIGNATURE ART EVENT 2020JUL'19RUTAN & TUCKER 101-1003-60153 9,844.50Attorney845813 - WASHINGTON PLAZA PATH OF T…JUL'19RUTAN & TUCKER 101-1003-60153 1,515.70Attorney845812 - LQ POLO ESTATES ASS'N INCJUL'19RUTAN & TUCKER 101-1003-60153 473.00Attorney845810 - RESPONSES FOR PUBLIC RECORDJUL'19RUTAN & TUCKER 101-1003-60153 4,813.00Attorney845805 - DUNEPALMS PROJECT ROWJUL'19RUTAN & TUCKER 101-1003-60153 48.00Attorney845803 - GENERAL IPJUL'19RUTAN & TUCKER 101-1003-60153 11,000.00Attorney845800 - RETAINER MATTERJUL'19RUTAN & TUCKER 101-1003-60153 989.00Attorney845797 - CODE ENFORCEMENTJUL'19RUTAN & TUCKER 101-1003-60153 7,531.80Attorney846468 - GENERAL ACCOUNTJUL'19RUTAN & TUCKER 101-1003-60153 312.00Attorney845795 - PERSONNEL GENERALJUL'19RUTAN & TUCKER 101-1003-60153 894.00Attorney/Litigation845796 - LITIGATION GENERALJUL'19RUTAN & TUCKER 101-1003-60154 22.00Over Payments, AR Policy08/09/19 - LIC-0100311 REFUND OVERPY…R52435ESTRADA, EDUARDO 101-0000-20330 750.00Cash Over/Short08/30/19 - BRES2019-0140 REF PLAN CK D…R53082CORONEL ENTERPRISES, INC 101-0000-42300 40.00Over Payments, AR Policy09/03/19 - LIC-0106793 REFUND OVERPY…R53113MAHONY, THOMAS OR SONYA 101-0000-20330 69.81Cable - Utilities08/22-09/21/19 - EOC CABLESEP'195631DISH NETWORK 101-2002-61400 Fund 101 - GENERAL FUND Total:59,334.29 Fund: 201 - GAS TAX FUND 2,442.51Equipment Rental08/20/19 - EQPT RENTAL/REPLACEMENT50011051096HD SUPPLY CONSTRUCTION S…201-7003-61701 13.79Materials/Supplies07/25-08/23/19 - LUMBERAUG'19980015809…LOWE'S HOME IMPROVEMENT…201-7003-60431 5.74Materials/Supplies07/25-08/23/19 - SIDEWALK MATERIALAUG'19980015809…LOWE'S HOME IMPROVEMENT…201-7003-60431 32.02Materials/Supplies07/25-08/23/19 - MATERIAL/SUPPLYAUG'19980015809…LOWE'S HOME IMPROVEMENT…201-7003-60431 154.99Materials/Supplies07/25-08/23/19 - CONCRETE BLADESAUG'19980015809…LOWE'S HOME IMPROVEMENT…201-7003-60431 Fund 201 - GAS TAX FUND Total:2,649.05 ATTACHMENT 1 25 Demand Register Packet: APPKT02120 - BC 09/06/19 9/24/2019 10:43:22 AM Page 2 of 4 AmountVendor Name Payable Number Description (Item)Account Name Account Number Fund: 215 - LIGHTING & LANDSCAPING FUND 571.16Safety Gear08/23/19 - SAFETY GEAR241166BSUMMIT SAFETY LLC 215-7004-60427 107.51Operating Supplies08/24/19 - OPERATING SUPPLIES3423066286STAPLES ADVANTAGE 215-7004-60420 145.00Travel & Training12/01/19-11/30/20 - MEMBER J LINDSEYAUG'19123317CALIFORNIA PARK & RECREAT…215-7004-60320 308.58Materials/Supplies08/29/19 - MATERIALSS113838046.001WALTERS WHOLESALE ELECTR…215-7004-60431 473.34Materials/Supplies08/29/19 - MATERIALSS113838046.002WALTERS WHOLESALE ELECTR…215-7004-60431 Fund 215 - LIGHTING & LANDSCAPING FUND Total:1,605.59 Fund: 221 - AB 939 - CALRECYCLE FUND 223.88AB 939 Recycling Solutions07/22/19 - SHRED DAY8127915522SHRED-IT USA - SAN BERNADI…221-0000-60127 Fund 221 - AB 939 - CALRECYCLE FUND Total:223.88 Fund: 241 - HOUSING AUTHORITY 182.96Attorney845799 - HOUSING AUTHORITYJUL'19RUTAN & TUCKER 241-9101-60153 Fund 241 - HOUSING AUTHORITY Total:182.96 Fund: 248 - SA 2004 LO/MOD BOND FUND (Refinanced in 2014) 232.20Relocation Benefits09/04/19 - CLAIM WSA RELOC MISSING/B…090419FREITAS, DELLA 248-9102-60159 200.07Relocation Benefits09/04/19 - CLAIM WSA RELOC DAMAGED …090419KIRKWOOD DIANA 248-9102-60159 Fund 248 - SA 2004 LO/MOD BOND FUND (Refinanced in 2014) Total:432.27 Fund: 270 - ART IN PUBLIC PLACES FUND 1,400.00Art Purchases07/2019 ART CONSULTANT SERVICESLQ2261LEBASSE PROJECTS INTERNATI…270-0000-74800 Fund 270 - ART IN PUBLIC PLACES FUND Total:1,400.00 Fund: 401 - CAPITAL IMPROVEMENT PROGRAMS 36,700.15Design07/27/19 GHD VILLAGE COMPLETE STREE…124552GHD INC.401-0000-60185 7,145.00Technical08/12-08/23/19 EISENHOWER RET BASIN …4855CRM TECH 401-0000-60108 -7,184.25Retention PayablePO 1920-0033 RETENTION #25099URBAN HABITAT ENVIRONME…401-0000-20600 143,684.95Construction08/2019 2016-03D LQ LANDSCAPE IMPR -…5099URBAN HABITAT ENVIRONME…401-0000-60188 2.57Construction07/25-08/23/19 - HS CROSSWALK PARTSAUG'19980015809…LOWE'S HOME IMPROVEMENT…401-0000-60188 3.47Construction07/25-08/23/19 - CONDUITAUG'19980015809…LOWE'S HOME IMPROVEMENT…401-0000-60188 3.48Construction07/25-08/23/19 - ELECTRICAL EQPTAUG'19980015809…LOWE'S HOME IMPROVEMENT…401-0000-60188 Fund 401 - CAPITAL IMPROVEMENT PROGRAMS Total:180,355.37 Fund: 501 - FACILITY & FLEET REPLACEMENT 2,967.31Fuel & Oil07/12-07/31/19 - VEHICLE FUEL1319TOWER ENERGY GROUP 501-0000-60674 4.60Street Sweeper07/25-08/23/19 - MAINT STREET SWEEPERAUG'19980015809…LOWE'S HOME IMPROVEMENT…501-0000-60678 -157.53Fuel & Oil08/2019 - FUEL CHARGES CREDIT FIN CHG…NP56866958FUELMAN 501-0000-60674 827.36Fuel & Oil08/2019 - FUEL CHARGESNP56866958FUELMAN 501-0000-60674 Fund 501 - FACILITY & FLEET REPLACEMENT Total:3,641.74 Fund: 502 - INFORMATION TECHNOLOGY 800.00Consultants07/2019 COUNCIL MTG MEDIA RECORD, …1277FISHER INTEGRATED INC 502-0000-60104 247.93Cable - Utilities08/24-09/23/19 - WC CABLE (4601)504601082419TIME WARNER CABLE 502-0000-61400 Fund 502 - INFORMATION TECHNOLOGY Total:1,047.93 Grand Total:250,873.08 26 Demand Register Packet: APPKT02120 - BC 09/06/19 9/24/2019 10:43:22 AM Page 3 of 4 Fund Summary Fund Expense Amount 101 - GENERAL FUND 59,334.29 201 - GAS TAX FUND 2,649.05 215 - LIGHTING & LANDSCAPING FUND 1,605.59 221 - AB 939 - CALRECYCLE FUND 223.88 241 - HOUSING AUTHORITY 182.96 248 - SA 2004 LO/MOD BOND FUND (Refinanced in 2014)432.27 270 - ART IN PUBLIC PLACES FUND 1,400.00 401 - CAPITAL IMPROVEMENT PROGRAMS 180,355.37 501 - FACILITY & FLEET REPLACEMENT 3,641.74 502 - INFORMATION TECHNOLOGY 1,047.93 Grand Total:250,873.08 Account Summary Account Number Account Name Expense Amount 101-0000-20330 Over Payments, AR Policy 62.00 101-0000-20949 LT Care Insurance Pay 196.05 101-0000-20981 United Way Deductions 92.00 101-0000-20985 Garnishments Payable 162.00 101-0000-42300 Cash Over/Short 750.00 101-1003-60153 Attorney 38,604.50 101-1003-60154 Attorney/Litigation 894.00 101-2002-61400 Cable - Utilities 178.75 101-3002-60420 Operating Supplies 158.05 101-3005-60431 Materials/Supplies 952.82 101-3005-60691 Maintenance/Services 14,073.00 101-3007-60461 Marketing & Tourism Pro…780.00 101-3008-60431 Materials/Supplies 143.07 101-3008-60432 Tools/Equipment 155.26 101-6003-60690 Uniforms 102.01 101-7003-60420 Operating Supplies 125.43 101-7003-60432 Tools/Equipment 43.35 101-7006-60144 Contract Traffic Engineer 1,862.00 201-7003-60431 Materials/Supplies 206.54 201-7003-61701 Equipment Rental 2,442.51 215-7004-60320 Travel & Training 145.00 215-7004-60420 Operating Supplies 107.51 215-7004-60427 Safety Gear 571.16 215-7004-60431 Materials/Supplies 781.92 221-0000-60127 AB 939 Recycling Solutions 223.88 241-9101-60153 Attorney 182.96 248-9102-60159 Relocation Benefits 432.27 270-0000-74800 Art Purchases 1,400.00 401-0000-20600 Retention Payable -7,184.25 401-0000-60108 Technical 7,145.00 401-0000-60185 Design 36,700.15 401-0000-60188 Construction 143,694.47 501-0000-60674 Fuel & Oil 3,637.14 501-0000-60678 Street Sweeper 4.60 502-0000-60104 Consultants 800.00 502-0000-61400 Cable - Utilities 247.93 Grand Total:250,873.08 Project Account Summary Project Account Key Expense Amount **None**70,513.11 151603D 36,700.15 151612T 7,145.00 1920TMICT 9.52 27 Demand Register Packet: APPKT02120 - BC 09/06/19 9/24/2019 10:43:22 AM Page 4 of 4 Project Account Summary Project Account Key Expense Amount 201603CT 143,684.95 201603RP -7,184.25 CSA152E 4.60 Grand Total:250,873.08 28 9/12/2019 7:27:17 PM Page 1 of 5 Demand Register City of La Quinta Packet: APPKT02127 - BC 09/13/19 AmountVendor Name Payable Number Description (Item)Account Name Account Number Fund: 101 - GENERAL FUND 355.84Maintenance/Services08/14/19 - FS #93 REPL REFRIG FREEZER …081419SOUTHLAND APLIANCE SERVICE 101-2002-60691 15.00Consultants08/26/19 - FINGERPRINT VOLUNTEER090519RJW NOTARY PUBLIC 101-1004-60104 1,881.00Training & Education/MOU09/10/19 - TUITION REIMB091019AYON, UBALDO 101-1004-60322 500.00Administrative Citations09/11/19 - LQ162067 REFUND CITATION091119DAVID KEVIN OR EMILY PLOU…101-0000-42700 75.00Fitness Membership Reimburs…09/11/19 - FITNESS REIMB091119CHAUDHRY, ELIZABETH 101-1004-50252 75.00Fitness Membership Reimburs…09/11/19 - FITNESS REIMB091119ESCATEL-CARRELLO, ELIZABETH 101-1004-50252 437.85Operating Supplies09/19/19 - WC MONTHLY LUNCHEON091119PANERA BREAD 101-3002-60420 1,000.00Community Experiences11/02/19 - BREW IN LQ SUPPLIES DEPOSIT091119PARTY TIME RENTALS 101-3003-60149 445.55Maintenance/Services08/28/19 - SPORT COMPLEX101045LOCK SHOP INC, THE 101-3008-60691 155.62Professional Services09/2019 - ARMORED SERVICES10511833GARDAWORLD 101-1006-60103 180.00Maintenance/Services09/06/19 - PAINT SVCS CIVIC CENTER CA…1119BLOWNAWAY BY WILLIAM 101-3005-60691 1,298.47Telephone - Utilities08/23-09/22/19 - EOC120253089-0TPX COMMUNICATIONS 101-2002-61300 40.00Leisure Enrichment09/05/19 - REFUND EVENING YOGA120810MAYES-SMITH, SUSAN 101-0000-42200 203.73Operating Supplies08/15-08/29/19 - WC JANITORIAL SUPPLIES1402173248AMERIPRIDE SERVICES INC 101-3002-60420 157.68Safety Gear08/06/9 - SAFETY BOOTS O VARGAS14091JERNIGAN'S, INC 101-3008-60427 4,000.00Marketing & Tourism Promoti…10/2019 GRAPHIC DESIGN1700ARK CONNECTS LLC 101-3007-60461 253.00Maintenance/Services09/01/19 - FS #32 HVAC SVC18990906HYDE'S AC 101-2002-60691 2,943.00Maintenance/Services09/01/19 - FS #32 HVAC SVC18998510HYDE'S AC 101-2002-60691 415.00HVAC09/03/19 - CITY HALL HVAC SVC19004520HYDE'S AC 101-3008-60667 72.50Recruiting/Pre-Employment08/2019 - PRE EMPLOYMENT BACKGROU…2019080001IRC CORPORATION 101-1004-60129 349.91Materials/Supplies08/22/19 - CITY HALL PAINT2079436334DUNN-EDWARDS CORPORATI…101-3008-60431 41,890.00Landscape Contract09/2019 PARKS MAINT213474VINTAGE ASSOCIATES 101-3005-60112 3,397.20Community Experiences11/01/19 - BREW IN LQ FENCING & RESTR…2171302DIAMOND ENVIRONMENTAL S…101-3003-60149 -26.53Sales Taxes Payable08/29/19 - WC GYM WIPES SALES TAX2561692XL CORPORATION 101-0000-20304 438.23Operating Supplies08/29/19 - WC GYM WIPES2561692XL CORPORATION 101-3002-60420 2,073.17Consultants08/30/19 - 3RD QTR SALES TAX SVC32082-INHINDERLITER DE LLAMAS & AS…101-1006-60104 385.00Special Enforcement Funds08/16/19 - SOKKIA SRX5X REPAIR POLICE32417PRISM SURVEYING AND CONS…101-2001-60175 84.35Materials/Supplies08/16/19 - FRITZ POOL MATERIALS3298-409949CONSOLIDATED ELECTRICAL DI…101-3008-60431 791.50Maintenance/Services08/26/19 - WC PLUMBING SERVICE332339197ROTO ROOTER PLUMBERS INC 101-3008-60691 146.93Office Supplies08/29/19 - OFFICE SUPPLIES3423383056STAPLES ADVANTAGE 101-3002-60400 39.77Office Supplies08/30/19 - OFFICE SUPPLIES3423456818STAPLES ADVANTAGE 101-6001-60400 29.96Office Supplies08/28/19 - OFFICE SUPPLIES370114124001OFFICE DEPOT 101-1005-60400 59.31Materials/Supplies08/22/19 - CITY HALL PAINT4182-0THE SHERWIN-WILLIAMS CO.101-3008-60431 7,137.74Building Improvements05/20/19 - FS#70 CABINETS INSTALLED PO…4430-2AABSOLUTE CABINETS, INC 101-2002-72110 1,583.00Building Improvements05/20/19 - FS #70 CABINET INSTALL FINAL4432AABSOLUTE CABINETS, INC 101-2002-72110 20.00Credit Card Fees08/2019 - WC CREDIT CARD FEES519365PLUG & PAY TECHNOLOGIES I…101-3003-60122 20.00Administration08/2019 - HUB CREDIT CARD FEES519366PLUG & PAY TECHNOLOGIES I…101-6001-60102 580.00Land Acquisition07/29/19 GAS EASEMENT REVIEW RESIDE…5306RASA/ERIC NELSON 101-1007-74010 315.00Operating Supplies08/2019 - WC GYM EQUIP PREV MAINT5553ROYAL GYM SERVICES, LLC 101-3002-60420 -76.29Materials/Supplies09/05/19 - CREDIT BB053358458070LOCK SHOP INC, THE 101-3008-60431 163.91Citywide Conf Room Supplies08/28/19 - WC COFFEE SUPPLIES655718DAIOHS FIRST CHOICE SERVICES 101-1007-60403 78.00Pest Control08/21/19 - CITY HALL PEST CONTROL660211541TRULY NOLEN INC 101-3008-60116 47.00Pest Control08/12/19 - PW YARD PEST CONTROL660211607TRULY NOLEN INC 101-3008-60116 3,000.00Professional Services08/2019 STVRP COMPLIANCE SERVICES762VACATION RENTAL COMPLIAN…101-6006-60103 130.00Membership Dues08/27/19 - MEMBERSHIP AMBRIZ DORAN7841SCMAF 101-3002-60351 115.00Instructors08/27/19 - CONTRACT INSTR INSURANCE …7842SCMAF 101-3002-60107 380.00Recruiting/Pre-Employment09/04/19 - PHYSICALS83233EISENHOWER OCCUPATIONAL…101-1004-60129 1,461.00Landscape Contract09/2019 GENERAL MAINT LLMD PROJ 201…91643PWLC II, INC 101-2002-60112 57.84Materials/Supplies08/22/19 - CITY HALL PAINT9410-4THE SHERWIN-WILLIAMS CO.101-3008-60431 346.95Marketing & Tourism Promoti…08/27/19 - PS AIRPORT SIGNAGE97901SIGN A RAMA 101-3007-60461 24.80Gas - Utilities07/22-08/20/19 - FS #32 GAS SERVICEAUG'191208591246GAS COMPANY, THE 101-2002-61100 62.10Gas - Utilities07/29-08/27/19 - FS #93 GAS SVCAUG'19165682485…GAS COMPANY, THE 101-2002-61100 92.14Maintenance/Services08/19/19 - PIONEER PARKBB00533754LOCK SHOP INC, THE 101-3008-60691 29 Demand Register Packet: APPKT02127 - BC 09/13/19 9/12/2019 7:27:17 PM Page 2 of 5 AmountVendor Name Payable Number Description (Item)Account Name Account Number 1,727.71Electricity - Utilities09/06/19 - ELECTRICITY SERVICECSE163IMPERIAL IRRIGATION DIST 101-2002-61101 1,171.38Electric - Sports Complex - Utili…09/06/19 - ELECTRICITY SERVICECSE163IMPERIAL IRRIGATION DIST 101-3005-61106 12.34Electric - Colonel Paige - Utiliti…09/06/19 - ELECTRICITY SERVICECSE163IMPERIAL IRRIGATION DIST 101-3005-61108 36.67Electric - Adams Park - Utilities09/06/19 - ELECTRICITY SERVICECSE163IMPERIAL IRRIGATION DIST 101-3005-61110 1,686.18Water -Pioneer Park - Utilities09/06/19 - WATER SERVICECSW223COACHELLA VALLEY WATER DI…101-3005-61207 640.00Maintenance/Services07/31/19 - FS #32 EVAP COOLERFCO3106FIRST CHOICE A/C & HEATING …101-2002-60691 447.00HVAC08/26/19 - CITY HALL TRANE CHILLER MAI…I31163PACIFIC WEST AIR CONDITION…101-3008-60667 1,610.50Due to SunLine08/2019 - SUNLINE BUS PASSESINV03619SUNLINE TRANSIT AGENCY 101-0000-20305 -135.25Miscellaneous Revenue08/2019 - SUNLINE BUS PASSESINV03619SUNLINE TRANSIT AGENCY 101-0000-42301 1,232.88Operating Supplies10/2016 - RADIO MAINTIT0000000311RIVERSIDE COUNTY INFORMAT…101-2001-60420 238.82Materials/Supplies08/22/19 - CH MATERIALSS113794805.001WALTERS WHOLESALE ELECTR…101-3008-60431 37.32Telephone - Utilities08/28-09/27/19 - SPORTS COMPLEX PHO…SEP'197713100FRONTIER COMMUNICATIONS…101-3005-61300 6,600.00Professional ServicesBP3 FEE SCHEDULE COMPREHENSIVE STU…UFS0719-403CLEARSOURCE FINANCIAL CO…101-1005-60103 Fund 101 - GENERAL FUND Total:95,006.78 Fund: 202 - LIBRARY & MUSEUM FUND 910.00Landscape Contract09/2019 LIBRARY MAINT213474VINTAGE ASSOCIATES 202-3004-60112 190.00Landscape Contract09/2019 MUSEUM MAINT213474VINTAGE ASSOCIATES 202-3006-60112 4,985.00Maintenance/Services08/27/19 - LIBRARY CARPORT REPAIRS3188AMERICAN WROUGHT IRON 202-3004-60691 74.00Pest Control08/21/19 - LIBRARY PEST CONTROL660211443TRULY NOLEN INC 202-3004-60116 49.00Pest Control08/21/19 - MUSEUM PEST CONTROL660211494TRULY NOLEN INC 202-3006-60116 14.41Gas - Utilities07/22-08/20/19 - LIBRARY GAS SVCAUG'19152944404…GAS COMPANY, THE 202-3004-61100 Fund 202 - LIBRARY & MUSEUM FUND Total:6,222.41 Fund: 215 - LIGHTING & LANDSCAPING FUND 4,980.00Maintenance/Services09/05/19 - DEMO & REMOVAL AT EISENH…19034DESERT CONCEPTS CONSTRUC…215-7004-60691 11,865.00Landscape Contract09/2019 LIGHTING & LANDSCAPING MAINT213474VINTAGE ASSOCIATES 215-7004-60112 170.69Materials/Supplies08/23/19 - MATERIALS3486101SMITH PIPE & SUPPLY CO 215-7004-60431 55,793.00Landscape Contract09/2019 GENERAL MAINT LLMD PROJ 201…91643PWLC II, INC 215-7004-60112 792.52Electric - Utilities09/06/19 - ELECTRICITY SERVICEPW221IMPERIAL IRRIGATION DIST 215-7004-61116 351.88Electric - Medians - Utilities09/06/19 - ELECTRICITY SERVICEPW221IMPERIAL IRRIGATION DIST 215-7004-61117 817.35Water - Medians - Utilities09/06/19 - WATER SERVICEPWW205COACHELLA VALLEY WATER DI…215-7004-61211 Fund 215 - LIGHTING & LANDSCAPING FUND Total:74,770.44 Fund: 230 - CASp FUND, AB 1379 771.80Contributions to State Agency01/2019-03/2019 - SB1186 FEES 10%091119ADIVISION OF THE STATE ARCHI…230-0000-60480 417.80Contributions to State Agency04/2019-06/2019 - SB1186 FEES 10%091119BDIVISION OF THE STATE ARCHI…230-0000-60480 Fund 230 - CASp FUND, AB 1379 Total:1,189.60 Fund: 235 - SO COAST AIR QUALITY FUND 10,391.57CVAG04/01-06/30/19 - 4TH QTR VEHICLE REG …CV19253-19COACHELLA VALLEY ASSOC OF…235-0000-60186 Fund 235 - SO COAST AIR QUALITY FUND Total:10,391.57 Fund: 401 - CAPITAL IMPROVEMENT PROGRAMS 5,637.07Design07/2019 EISENHOWER DRAINAGE PRJ 201…1058630MICHAEL BAKER INTERNATIO…401-0000-60185 546.14Design07/2019 EISENHOWER DRAINAGE PRJ 201…1058630MICHAEL BAKER INTERNATIO…401-0000-60185 1,767.89Design07/2019 EISENHOWER DRAINAGE PRJ 201…1058630MICHAEL BAKER INTERNATIO…401-0000-60185 47,000.00Construction08/28/19 CITY HALL ENTRY DOORS PROJ …23620HENRY'S GLASS COMPANY 401-0000-60188 1,055.00Construction07/29/19 - IID SVC & METER 2009-044025447IMPERIAL IRRIGATION DIST 401-0000-60188 Fund 401 - CAPITAL IMPROVEMENT PROGRAMS Total:56,006.10 Fund: 501 - FACILITY & FLEET REPLACEMENT 2,442.95Fuel & Oil08/16-08/31/19 - VEHICLE FUEL1321TOWER ENERGY GROUP 501-0000-60674 574.00Vehicle Repair & Maintenance09/06-09/07/19 R.A.N. AUTO WASH255RAN AUTO DETAIL 501-0000-60676 19,215.28Vehicles, Rentals & Leases08/2019 - FLEET LEASEFBN3757658ENTERPRISE FM TRUST 501-0000-71030 19,061.54Vehicles, Rentals & Leases09/2019 - FLEET LEASEFBN3779921ENTERPRISE FM TRUST 501-0000-71030 Fund 501 - FACILITY & FLEET REPLACEMENT Total:41,293.77 Fund: 502 - INFORMATION TECHNOLOGY 2,492.10Telephone - Utilities08/23-09/22/19 - PHONE LINE SVC120253089-0TPX COMMUNICATIONS 502-0000-61300 800.00Consultants08/2019 COUNCIL MTG MEDIA RECORD, …1285FISHER INTEGRATED INC 502-0000-60104 20,050.00Consultants09/2019 IT SERVICES NETWORK ADMIN52226ACORN TECHNOLOGY SERVICES 502-0000-60104 65.01Cable - Utilities08/26-09/25/19 - CITY HALL DSLSEP'197712842FRONTIER COMMUNICATIONS…502-0000-61400 Fund 502 - INFORMATION TECHNOLOGY Total:23,407.11 30 Demand Register Packet: APPKT02127 - BC 09/13/19 9/12/2019 7:27:17 PM Page 3 of 5 AmountVendor Name Payable Number Description (Item)Account Name Account Number Fund: 601 - SILVERROCK RESORT 648.65Bank Fees09/2019 - SRR ARMORED SERVICES10510707GARDAWORLD 601-0000-60455 3.50Bank Fees07/2019 - SRR ARMORED SERVICES20384300GARDAWORLD 601-0000-60455 45.98Bank Fees08/2019 - SRR ARMORED SERVICES70093443GARDAWORLD 601-0000-60455 18.86Repair & Maintenance08/30/19 - SILVERROCKBB00533930LOCK SHOP INC, THE 601-0000-60660 192.98Repair & Maintenance08/16/19 - SRR THERMOSTATSS3022596.001JOHNSTONE SUPPLY 601-0000-60660 Fund 601 - SILVERROCK RESORT Total:909.97 Grand Total:309,197.75 31 Demand Register Packet: APPKT02127 - BC 09/13/19 9/12/2019 7:27:17 PM Page 4 of 5 Fund Summary Fund Expense Amount 101 - GENERAL FUND 95,006.78 202 - LIBRARY & MUSEUM FUND 6,222.41 215 - LIGHTING & LANDSCAPING FUND 74,770.44 230 - CASp FUND, AB 1379 1,189.60 235 - SO COAST AIR QUALITY FUND 10,391.57 401 - CAPITAL IMPROVEMENT PROGRAMS 56,006.10 501 - FACILITY & FLEET REPLACEMENT 41,293.77 502 - INFORMATION TECHNOLOGY 23,407.11 601 - SILVERROCK RESORT 909.97 Grand Total:309,197.75 Account Summary Account Number Account Name Expense Amount 101-0000-20304 Sales Taxes Payable -26.53 101-0000-20305 Due to SunLine 1,610.50 101-0000-42200 Leisure Enrichment 40.00 101-0000-42301 Miscellaneous Revenue -135.25 101-0000-42700 Administrative Citations 500.00 101-1004-50252 Fitness Membership Reim…150.00 101-1004-60104 Consultants 15.00 101-1004-60129 Recruiting/Pre-Employme…452.50 101-1004-60322 Training & Education/MOU 1,881.00 101-1005-60103 Professional Services 6,600.00 101-1005-60400 Office Supplies 29.96 101-1006-60103 Professional Services 155.62 101-1006-60104 Consultants 2,073.17 101-1007-60403 Citywide Conf Room Suppl…163.91 101-1007-74010 Land Acquisition 580.00 101-2001-60175 Special Enforcement Funds 385.00 101-2001-60420 Operating Supplies 1,232.88 101-2002-60112 Landscape Contract 1,461.00 101-2002-60691 Maintenance/Services 4,191.84 101-2002-61100 Gas - Utilities 86.90 101-2002-61101 Electricity - Utilities 1,727.71 101-2002-61300 Telephone - Utilities 1,298.47 101-2002-72110 Building Improvements 8,720.74 101-3002-60107 Instructors 115.00 101-3002-60351 Membership Dues 130.00 101-3002-60400 Office Supplies 146.93 101-3002-60420 Operating Supplies 1,394.81 101-3003-60122 Credit Card Fees 20.00 101-3003-60149 Community Experiences 4,397.20 101-3005-60112 Landscape Contract 41,890.00 101-3005-60691 Maintenance/Services 180.00 101-3005-61106 Electric - Sports Complex -…1,171.38 101-3005-61108 Electric - Colonel Paige - U…12.34 101-3005-61110 Electric - Adams Park - Util…36.67 101-3005-61207 Water -Pioneer Park - Utili…1,686.18 101-3005-61300 Telephone - Utilities 37.32 101-3007-60461 Marketing & Tourism Pro…4,346.95 101-3008-60116 Pest Control 125.00 101-3008-60427 Safety Gear 157.68 101-3008-60431 Materials/Supplies 713.94 101-3008-60667 HVAC 862.00 101-3008-60691 Maintenance/Services 1,329.19 101-6001-60102 Administration 20.00 101-6001-60400 Office Supplies 39.77 101-6006-60103 Professional Services 3,000.00 202-3004-60112 Landscape Contract 910.00 32 Demand Register Packet: APPKT02127 - BC 09/13/19 9/12/2019 7:27:17 PM Page 5 of 5 Account Summary Account Number Account Name Expense Amount 202-3004-60116 Pest Control 74.00 202-3004-60691 Maintenance/Services 4,985.00 202-3004-61100 Gas - Utilities 14.41 202-3006-60112 Landscape Contract 190.00 202-3006-60116 Pest Control 49.00 215-7004-60112 Landscape Contract 67,658.00 215-7004-60431 Materials/Supplies 170.69 215-7004-60691 Maintenance/Services 4,980.00 215-7004-61116 Electric - Utilities 792.52 215-7004-61117 Electric - Medians - Utiliti…351.88 215-7004-61211 Water - Medians - Utilities 817.35 230-0000-60480 Contributions to State Ag…1,189.60 235-0000-60186 CVAG 10,391.57 401-0000-60185 Design 7,951.10 401-0000-60188 Construction 48,055.00 501-0000-60674 Fuel & Oil 2,442.95 501-0000-60676 Vehicle Repair & Mainte…574.00 501-0000-71030 Vehicles, Rentals & Leases 38,276.82 502-0000-60104 Consultants 20,850.00 502-0000-61300 Telephone - Utilities 2,492.10 502-0000-61400 Cable - Utilities 65.01 601-0000-60455 Bank Fees 698.13 601-0000-60660 Repair & Maintenance 211.84 Grand Total:309,197.75 Project Account Summary Project Account Key Expense Amount **None**240,073.71 091004CT 1,055.00 151612D 7,951.10 1920CPMCT 47,000.00 201835E 8,720.74 BREWE 4,397.20 Grand Total:309,197.75 33 9/10/2019 3:03:21 PM Page 1 of 2 Payment Reversal Register City of La Quinta APPKT02123 - BC 09/09/19 Canceled Payables Vendor Set:01 - Vendor Set 01 Bank:APBNK - APBNK 09410 Vendor Number ABSOLUTE CABINETS, INC Total Vendor Amount -8,720.74 Vendor Name Check 123294 09/09/2019 -8,720.7408/02/2019 09/09/2019 Payment Type Payment Number Original Payment Date Reversal Date Cancel Date Payment Amount Payable Number:Description Payable AmountDue DatePayable Date 4430-2-R 06/28/201905/20/19 - FS #70 CABINETS INSTALLED 7,137.7405/20/2019 4432-R 06/28/201905/20/19 - FS #70 CABINET INSTALL FINAL TOUCH UP 1,583.0005/20/2019 34 Payment Reversal Register Packet: APPKT02123 - BC 09/09/19 9/10/2019 3:03:21 PM Page 2 of 2 Bank Code Summary Canceled Payables Payables Left To Pay AgainBank Code Total APBNK -8,720.74 0.00 -8,720.74 -8,720.74 0.00Report Total:-8,720.74 35 City of La Quinta Bank Transactions 08/31/19 – 09/13/19 Wire Transaction Listed below are the wire transfers from 08/31/19 – 09/13/19 Wire Transfers: 09/06/2019 - WIRE TRANSFER - LANDMARK 149,627.93$ 09/06/2019 - WIRE TRANSFER - ICMA 4,724.22$ 09/06/2019 - WIRE TRANSFER - LQCEA 459.00$ 09/06/2019 - WIRE TRANSFER - PERS 43,160.35$ 09/09/2019 - WIRE TRANSFER - TASC 1,782.97$ 09/10/2019 - WIRE TRANSFER - PERS 116,443.09$ 09/12/2019 - WIRE TRANSFER - STIFEL 591,772.22$ TOTAL WIRE TRANSFERS OUT 907,969.78$ ATTACHMENT 2 36 City of La Quinta CITY COUNCIL MEETING: October 1, 2019 STAFF REPORT AGENDA TITLE: AUTHORIZE OVERNIGHT TRAVEL FOR THE CITY CLERK AND DEPUTY CITY CLERK TO ATTEND THE LEAGUE OF CALIFORNIA CITIES CITY CLERKS’ NEW LAW AND ELECTIONS SEMINAR IN ORANGE COUNTY, CALIFORNIA, DECEMBER 11 – 13, 2019 RECOMMENDATION Authorize overnight travel for the City Clerk and the Deputy City Clerk to attend the League of California Cities City Clerks’ New Law and Elections Seminar in Orange County, California, December 11 – 13, 2019. EXECUTIVE SUMMARY Annually, the League of California Cities (League) holds the City Clerks’ New Law and Elections Seminar (Seminar) which provides updates on new election-related legislation and election best practices. The Seminar’s location rotates between northern and southern California cities; this year it is held in Orange County. Staff will gain knowledge in key areas such as updates on elections, Fair Political Practices, and Public Records Act; records management; and performance management. FISCAL IMPACT Estimated expenses for two attendees are $2,200 (1,100 per person), which includes registration, travel, lodging, and meals. The Clerk’s Office was awarded a one-time scholarship, which will reduce the total cost by $250. Funds area available in the City Clerk’s Travel and Training budget (101-1005- 60320). BACKGROUND/ANALYSIS The League is an association of California city officials who work together to enhance their knowledge and skills, exchange information, and combine resources so that they may influence State and Federal policy decisions that affect cities. CONSENT CALENDAR ITEM NO. 3 37 This annual event is a two-day intensive Seminar which provides participants with the tools and resources to stay abreast on new legislation; and will review key topics such as elections, new law, and Fair Political Practices updates; new Public Records Act requirements; initiatives, referendums, and recalls; best practices for automating records management programs; and strategies for success in performance management. The Seminar also provides an opportunity to network with other industry professionals. ALTERNATIVES Council may elect not to authorize this request; however, since this will provide information that is vital to successfully administering the 2020 local election, Staff does not recommend this alternative. Prepared by: Nichole Romane, Deputy City Clerk Approved by: Monika Radeva, City Clerk 38 City of La Quinta CITY COUNCIL MEETING: October 1, 2019 STAFF REPORT AGENDA TITLE: ADOPT RESOLUTION TO AUTHORIZE APPLICATION FOR, AND RECEIPT OF, CALIFORNIA SENATE BILL 2 PLANNING GRANTS PROGRAM FUNDS TO STREAMLINE AND INCREASE HOUSING PRODUCTION RECOMMENDATION Adopt a resolution to authorize application for, and receipt of, California Senate Bill 2 Planning Grants Program Funds to streamline and increase housing production in the City of La Quinta; and authorize the City Manager to execute all related documents. EXECUTIVE SUMMARY On March 2, 2019, the State of California Department of Housing and Community Development issued a Notice of Funding Availability of up to $123 million under Senate Bill (SB 2) Planning Grants Program from the Building Homes and Jobs Trust Fund. Grant funds have been allocated in a non-competitive manner for all Counties and Cities in California, and requires apportionment based upon population size. The City can apply and receive up to $160,000 during the Year 1 round of funding in a non-competitive setting through SB 2 and utilize funds to streamline housing production. In order to receive SB 2 funding, Council must adopt a resolution authorizing application to the Planning Grants Program. FISCAL IMPACT Potential of receiving up to $160,000 grant for streamlining housing production. If awarded, a separate Special Fund would be established to track revenues and expenses associated with the grant. BACKGROUND/ANALYSIS SB 2 is the first permanent source of state funding dedicated to helping local governments increase housing production. The program is funded by fees levied on certain real estate transactions and is expected to generate between CONSENT CALENDAR ITEM NO. 4 39 $250 to $300 million annually. The California Department of Housing and Community Development (HCD) is administering the program. The revenues generated for the first year of funding will be split between homelessness programs and planning grants. Local governments will be eligible to apply for planning grants. HCD has identified that, as a smaller locality, the City is eligible to apply for up to $160,000 in a non-competitive manner. Such funds have been preliminarily identified by Staff for activities such as:  Review the feasibility of rezoning properties to permit by-right additional housing opportunities;  Create objective design and development standards;  Detail specific plans or form codes coupled with California Environmental Quality Act streamlining to create pre-approved projects for affordable housing efforts;  Promote awareness of accessory dwelling units and other innovative building strategies; and  Create expedited processing systems within the organization to streamline the entitlement and permitting processes. ALTERNATIVES The Council may elect to not pursue this funding source. Prepared by: Doug Kinley, Management Specialist Approved by: Gilbert Villalpando, Assistant to City Manager 40 RESOLUTION NO. 2019 - xxx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AUTHORIZING APPLICATION FOR, AND RECEIPT OF, SB 2 PLANNING GRANTS PROGRAM FUNDS WHEREAS, the State of California, Department of Housing and Community Development (Department) has issued a Notice of Funding Availability (NOFA) dated March 2, 2019, for its Planning Grants Program (PGP); and WHEREAS, the City of La Quinta desires to submit a project application for the PGP program to accelerate the production of housing and will submit a 2019 PGP grant application as described in the Planning Grants Program NOFA and SB 2 Planning Grants Program Guidelines released by the Department for the PGP Program; and WHEREAS, the Department is authorized to provide up to $123 million under the SB 2 Planning Grants Program from the Building Homes and Jobs Trust Fund for assistance to Counties (as described in Health and Safety Code section 50470 et seq. (Chapter 364, Statutes of 2017 (SB 2)) related to the PGP Program. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: SECTION 1. The City of La Quinta is hereby authorized and directed to apply for and submit to the Department the 2019 Planning Grants Program application released March 2, 2019 in the amount of $160,000. SECTION 2. In connection with the PGP grant, if the application is approved by the Department, the City Manager is authorized to enter into, execute, and deliver a State of California Agreement (Standard Agreement) for the amount of $160,000, and any and all other documents required or deemed necessary or appropriate to evidence and secure the PGP grant, the City’s obligations related thereto, and all amendments thereto (collectively the “PGP Grant Documents”). SECTION 3. The City shall be subject to the terms and conditions as specified in the Standard Agreement, the SB 2 Planning Grants Program Guidelines, and any applicable PGP guidelines published by the Department. 41 Resolution No. 2019-xxx SB 2 Planning Grants Program Funds Adopted: October 1, 2019 Page 2 of 3 Funds are to be used for allowable expenditures as specifically identified in the Standard Agreement. The application in full is incorporated as part of the Standard Agreement. Any and all activities funded, information provided, and timelines represented in the application will be enforceable through the executed Standard Agreement. The City Council hereby agrees to use the funds for eligible uses in the manner presented in the application as approved by the Department and in accordance with the Planning Grants NOFA, the Planning Grants Program Guidelines, and 2019 Planning Grants Program Application. SECTION 4. The City Manager is authorized to execute the City of La Quinta Planning Grants Program application, the PGP Grant Documents, and any amendments thereto, on behalf of the City as required by the Department for receipt of the PGP Grant. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held on this 1st day of October 2019, by the following vote: AYES: NOES: ABSENT: ABSTAIN: _______________________ LINDA EVANS, Mayor City of La Quinta, California ATTEST: __________________________ MONIKA RADEVA, City Clerk City of La Quinta, California 42 Resolution No. 2019-xxx SB 2 Planning Grants Program Funds Adopted: October 1, 2019 Page 3 of 3 (CITY SEAL) APPROVED AS TO FORM: ___________________________ WILLIAM H. IHRKE, City Attorney City of La Quinta, California 43 44 City of La Quinta CITY COUNCIL MEETING: October 1, 2019 STAFF REPORT AGENDA TITLE: APPROVE AGREEMENT FOR CONTRACT SERVICES WITH Z&K CONSULTANTS BUILDING SOLUTIONS TO PROVIDE CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES FOR THE SILVERROCK PARK VENUE PROJECT (PROJECT NO. 2016-08) RECOMMENDATION Approve Agreement for Contract Services with Z&K Consultants Building Solutions, in an amount not to exceed $100,000, to provide construction management and inspection services for the SilverRock Park Venue Site Project; and authorize the City Manager to execute the agreement. EXECUTIVE SUMMARY •On August 6, 2019, a contract was awarded to Urban Habitat for the construction of the La Quinta SilverRock Park Venue Project (Project) (Attachment 1) in the amount of $4,218,880; construction began in September 2019. •Due to the project’s complexity and current construction workload, staff recommends that a construction management and inspection services firm be retained to supplement staff capabilities. •In August, staff solicited proposals for construction management services from qualified firms. •Z&K Consultants Building Solutions was selected as the most qualified firm and staff recommends approval of the Agreement for Contract Services (Attachment 2). FISCAL IMPACT Time and materials cost not to exceed $100,000; funds are available in the SilverRock Park Venue Capital Improvement Program budget (Project 2016- 08). BACKGROUND/ANALYSIS Due to the complexity and construction duration, a construction management company would be best suited to provide the construction management and inspection services needed to implement this project. The City circulated a CONSENT CALENDAR ITEM NO. 5 45 request for proposals and received six responses on September 9, 2019. The Consultant Selection Committee reviewed the proposals and selected Z&K Consultants Building Solutions as the most qualified firm. Dudek, HR Green Pacific, Inc., GC Construction Inspection Management, NV5, Inc., and Project Dimensions, Inc. also submitted proposals. The following is the project schedule: Council Considers Agreement October 1, 2019 Construction (120 Working Days) October 2019 to March 2020 Accept Improvements March 2020 ALTERNATIVES Staff does not recommend an alternative. Prepared by: Julie Mignogna, Management Analyst Approved by: Bryan McKinney, City Engineer Attachments: 1. Vicinity Map 2.Agreement for Contract Services 46 13147 48 AGREEMENT FOR CONTRACT SERVICES THIS AGREEMENT FOR CONTRACT SERVICES (the “Agreement”) is made and entered into by and between the CITY OF LA QUINTA, (“City”), a California municipal corporation, and Z&K Consultants, Inc. (“Contracting Party”). The parties hereto agree as follows: 1.SERVICES OF CONTRACTING PARTY. 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Contracting Party shall provide those services related to construction management services for the SilverRock Park Venue Site Project, City Project No. 2016-08, as specified in the “Scope of Services” attached hereto as “Exhibit A” and incorporated herein by this reference (the “Services”). Contracting Party represents and warrants that Contracting Party is a provider of first-class work and/or services and Contracting Party is experienced in performing the Services contemplated herein and, in light of such status and experience, Contracting Party covenants that it shall follow industry standards in performing the Services required hereunder, and that all materials, if any, will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase “industry standards” shall mean those standards of practice recognized by one or more first-class firms performing similar services under similar circumstances. 1.2 Compliance with Law. All Services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations, and laws of the City and any Federal, State, or local governmental agency of competent jurisdiction. 1.3 Wage and Hour Compliance, Contracting Party shall comply with applicable Federal, State, and local wage and hour laws. 1.4 Licenses, Permits, Fees and Assessments. Except as otherwise specified herein, Contracting Party shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of the Services required by this Agreement, including a City of La Quinta business license. Contracting Party and its employees, agents, and subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required for the performance of the Services required by this Agreement. Contracting Party shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the performance of the Services required by this Agreement, and shall indemnify, defend (with counsel selected by City), and hold City, its elected officials, officers, ATTACHMENT 2 49 -2- employees, and agents, free and harmless against any such fees, assessments, taxes, penalties, or interest levied, assessed, or imposed against City hereunder. Contracting Party shall be responsible for all subcontractors’ compliance with this Section. 1.5 Familiarity with Work. By executing this Agreement, Contracting Party warrants that (a) it has thoroughly investigated and considered the Services to be performed, (b) it has investigated the site where the Services are to be performed, if any, and fully acquainted itself with the conditions there existing, (c) it has carefully considered how the Services should be performed, and (d) it fully understands the facilities, difficulties, and restrictions attending performance of the Services under this Agreement. Should Contracting Party discover any latent or unknown conditions materially differing from those inherent in the Services or as represented by City, Contracting Party shall immediately inform City of such fact and shall not proceed except at Contracting Party’s risk until written instructions are received from the Contract Officer, or assigned designee (as defined in Section 4.2 hereof). 1.6 Standard of Care. Contracting Party acknowledges and understands that the Services contracted for under this Agreement require specialized skills and abilities and that, consistent with this understanding, Contracting Party’s work will be held to an industry standard of quality and workmanship. Consistent with Section 1.5 hereinabove, Contracting Party represents to City that it holds the necessary skills and abilities to satisfy the industry standard of quality as set forth in this Agreement. Contracting Party shall adopt reasonable methods during the life of this Agreement to furnish continuous protection to the Services performed by Contracting Party, and the equipment, materials, papers, and other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the Services by City, except such losses or damages as may be caused by City’s own negligence. The performance of Services by Contracting Party shall not relieve Contracting Party from any obligation to correct any incomplete, inaccurate, or defective work at no further cost to City, when such inaccuracies are due to the negligence of Contracting Party. 1.7 Additional Services. In accordance with the terms and conditions of this Agreement, Contracting Party shall perform services in addition to those specified in the Scope of Services (“Additional Services”) only when directed to do so by the Contract Officer, or assigned designee, provided that Contracting Party shall not be required to perform any Additional Services without compensation. Contracting Party shall not perform any Additional Services until receiving prior written authorization (in the form of a written 50 -3- change order if Contracting Party is a contractor performing the Services) from the Contract Officer, or assigned designee, incorporating therein any adjustment in (i) the Contract Sum, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of Contracting Party. It is expressly understood by Contracting Party that the provisions of this Section shall not apply to the Services specifically set forth in the Scope of Services or reasonably contemplated therein. It is specifically understood and agreed that oral requests and/or approvals of Additional Services shall be barred and are unenforceable. Failure of Contracting Party to secure the Contract Officer’s, or assigned designee’s written authorization for Additional Services shall constitute a waiver of any and all right to adjustment of the Contract Sum or time to perform this Agreement, whether by way of compensation, restitution, quantum meruit, or the like, for Additional Services provided without the appropriate authorization from the Contract Officer, or assigned designee. Compensation for properly authorized Additional Services shall be made in accordance with Section 2.3 of this Agreement. 1.8 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in “Exhibit D” (the “Special Requirements”), which is incorporated herein by this reference and expressly made a part hereof. In the event of a conflict between the provisions of the Special Requirements and any other provisions of this Agreement, the provisions of the Special Requirements shall govern. 2.COMPENSATION. 2.1 Contract Sum. For the Services rendered pursuant to this Agreement, Contracting Party shall be compensated in accordance with “Exhibit B” (the “Schedule of Compensation”). The total amount payable by City as provided in Article 2.2, shall not exceed One Hundred Thousand Dollars ($100,000.00) (the “Contract Sum”), except as provided in Section 1.7.The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment in accordance with the percentage of completion of the Services, payment for time and materials based upon Contracting Party’s rate schedule, but not exceeding the Contract Sum, or such other reasonable methods as may be specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Contracting Party at all project meetings reasonably deemed necessary by City; Contracting Party shall not be entitled to any additional compensation for attending said meetings. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses when and if specified in the Schedule of Compensation. Regardless of the method of 51 -4- compensation set forth in the Schedule of Compensation, Contracting Party’s overall compensation shall not exceed the Contract Sum, except as provided in Section 1.7 of this Agreement. 2.2 Method of Billing & Payment. Any month in which Contracting Party wishes to receive payment, Contracting Party shall submit to City no later than the tenth (10th) working day of such month, in the form approved by City’s Finance Director, an invoice for Services rendered prior to the date of the invoice. Such invoice shall (1) describe in detail the Services provided, including time and materials, and (2) specify each staff member who has provided Services and the number of hours assigned to each such staff member. Such invoice shall contain a certification by a principal member of Contracting Party specifying that the payment requested is for Services performed in accordance with the terms of this Agreement. Upon approval in writing by the Contract Officer, or assigned designee, and subject to retention pursuant to Section 8.3, City will pay Contracting Party for all items stated thereon which are approved by City pursuant to this Agreement no later than thirty (30) days after invoices are received by the City’s Finance Department. 2.3 Compensation for Additional Services. Additional Services approved in advance by the Contract Officer, or assigned designee, pursuant to Section 1.7 of this Agreement shall be paid for in an amount agreed to in writing by both City and Contracting Party in advance of the Additional Services being rendered by Contracting Party. Any compensation for Additional Services amounting to five percent (5%) or less of the Contract Sum may be approved by the Contract Officer, or assigned designee. Any greater amount of compensation for Additional Services must be approved by the La Quinta City Council, the City Manager, or Department Director, depending upon City laws, regulations, rules and procedures concerning public contracting. Under no circumstances shall Contracting Party receive compensation for any Additional Services unless prior written approval for the Additional Services is obtained from the Contract Officer, or assigned designee, pursuant to Section 1.7 of this Agreement. 3. PERFORMANCE SCHEDULE. 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. If the Services not completed in accordance with the Schedule of Performance, as set forth in Section 3.2 and “Exhibit C”, it is understood that the City will suffer damage. 3.2 Schedule of Performance. All Services rendered pursuant to this Agreement shall be performed diligently and within the time period established in “Exhibit C” (the “Schedule of Performance”). Extensions to the 52 -5- time period specified in the Schedule of Performance may be approved in writing by the Contract Officer, or assigned designee. 3.3 Force Majeure. The time period specified in the Schedule of Performance for performance of the Services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Contracting Party, including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than City, and unusually severe weather, if Contracting Party shall within ten (10) days of the commencement of such delay notify the Contract Officer, or assigned designee, in writing of the causes of the delay. The Contract Officer, or assigned designee, shall ascertain the facts and the extent of delay, and extend the time for performing the Services for the period of the forced delay when and if in the Contract Officer’s judgment such delay is justified, and the Contract Officer’s determination, or assigned designee, shall be final and conclusive upon the parties to this Agreement. Extensions to time period in the Schedule of Performance which are determined by the Contract Officer, or assigned designee, to be justified pursuant to this Section shall not entitle the Contracting Party to additional compensation in excess of the Contract Sum. 3.4 Term. Unless earlier terminated in accordance with the provisions in Article 8.0 of this Agreement, the term of this agreement shall commence on October 2, 2019, and terminate on June 30, 2020 (“Initial Term”). This Agreement may be extended upon mutual agreement by both parties (“Extended Term”). 4.COORDINATION OF WORK. 4.1 Representative of Contracting Party. The following principals of Contracting Party (“Principals”) are hereby designated as being the principals and representatives of Contracting Party authorized to act in its behalf with respect to the Services specified herein and make all decisions in connection therewith: (a)Name: Crystal Faqih Tel No. (951)310-7470 E-mail: cfaqih@zandkconsultants.com (b)Name: Zack Faqih Tel No. (949) 637-5040 Email: zfaqih@zandkconsultants.com 53 -6- It is expressly understood that the experience, knowledge, capability, and reputation of the foregoing Principals were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing Principals shall be responsible during the term of this Agreement for directing all activities of Contracting Party and devoting sufficient time to personally supervise the Services hereunder. For purposes of this Agreement, the foregoing Principals may not be changed by Contracting Party and no other personnel may be assigned to perform the Services required hereunder without the express written approval of City. 4.2 Contract Officer. The “Contract Officer”, otherwise known as Bryan McKinney, PE, City Engineer, or assigned designee may be designated in writing by the City Manager of the City. It shall be Contracting Party’s responsibility to assure that the Contract Officer, or assigned designee, is kept informed of the progress of the performance of the Services, and Contracting Party shall refer any decisions, that must be made by City to the Contract Officer, or assigned designee. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer, or assigned designee. The Contract Officer, or assigned designee, shall have authority to sign all documents on behalf of City required hereunder to carry out the terms of this Agreement. 4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability, and reputation of Contracting Party, its principals, and its employees were a substantial inducement for City to enter into this Agreement. Except as set forth in this Agreement, Contracting Party shall not contract or subcontract with any other entity to perform in whole or in part the Services required hereunder without the express written approval of City. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated, or encumbered, voluntarily or by operation of law, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Contracting Party, taking all transfers into account on a cumulative basis. Any attempted or purported assignment or contracting or subcontracting by Contracting Party without City’s express written approval shall be null, void, and of no effect. No approved transfer shall release Contracting Party of any liability hereunder without the express consent of City. 4.4 Independent Contractor. Neither City nor any of its employees shall have any control over the manner, mode, or means by which Contracting Party, its agents, or its employees, perform the Services required herein, except as otherwise set forth herein. City shall have no voice in the selection, 54 -7- discharge, supervision, or control of Contracting Party’s employees, servants, representatives, or agents, or in fixing their number or hours of service. Contracting Party shall perform all Services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Contracting Party shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Contracting Party in its business or otherwise or a joint venture or a member of any joint enterprise with Contracting Party. Contracting Party shall have no power to incur any debt, obligation, or liability on behalf of City. Contracting Party shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. Except for the Contract Sum paid to Contracting Party as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Contracting Party for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Contracting Party for injury or sickness arising out of performing the Services hereunder. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Contracting Party and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits. Contracting Party agrees to pay all required taxes on amounts paid to Contracting Party under this Agreement, and to indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Contracting Party shall fully comply with the workers’ compensation laws regarding Contracting Party and Contracting Party’s employees. Contracting Party further agrees to indemnify and hold City harmless from any failure of Contracting Party to comply with applicable workers’ compensation laws. City shall have the right to offset against the amount of any payment due to Contracting Party under this Agreement any amount due to City from Contracting Party as a result of Contracting Party’s failure to promptly pay to City any reimbursement or indemnification arising under this Section. 4.5 Identity of Persons Performing Work. Contracting Party represents that it employs or will employ at its own expense all personnel required for the satisfactory performance of any and all of the Services set forth herein. Contracting Party represents that the Services required herein will be performed by Contracting Party or under its direct supervision, and 55 -8- that all personnel engaged in such work shall be fully qualified and shall be authorized and permitted under applicable State and local law to perform such tasks and services. 4.6 City Cooperation. City shall provide Contracting Party with any plans, publications, reports, statistics, records, or other data or information pertinent to the Services to be performed hereunder which are reasonably available to Contracting Party only from or through action by City. 5.INSURANCE. 5.1 Insurance. Prior to the beginning of any Services under this Agreement and throughout the duration of the term of this Agreement, Contracting Party shall procure and maintain, at its sole cost and expense, and submit concurrently with its execution of this Agreement, policies of insurance as set forth in “Exhibit E” (the “Insurance Requirements”) which is incorporated herein by this reference and expressly made a part hereof. 5.2 Proof of Insurance. Contracting Party shall provide Certificate of Insurance to Agency along with all required endorsements. Certificate of Insurance and endorsements must be approved by Agency’s Risk Manager prior to commencement of performance. 6.INDEMNIFICATION. 6.1 Indemnification. To the fullest extent permitted by law, Contracting Party shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officers, employees, agents, and volunteers as set forth in “Exhibit F” (“Indemnification”) which is incorporated herein by this reference and expressly made a part hereof. 7.RECORDS AND REPORTS. 7.1 Reports. Contracting Party shall periodically prepare and submit to the Contract Officer, or assigned designee, such reports concerning Contracting Party’s performance of the Services required by this Agreement as the Contract Officer, or assigned designee, shall require. Contracting Party hereby acknowledges that City is greatly concerned about the cost of the Services to be performed pursuant to this Agreement. For this reason, Contracting Party agrees that if Contracting Party becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Services contemplated herein or, if Contracting Party is providing design services, the cost of the project being designed, Contracting Party shall promptly notify the Contract Officer, or assigned designee, of said fact, circumstance, technique, or event and the estimated 56 -9- increased or decreased cost related thereto and, if Contracting Party is providing design services, the estimated increased or decreased cost estimate for the project being designed. 7.2 Records. Contracting Party shall keep, and require any subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports (including but not limited to payroll reports), studies, or other documents relating to the disbursements charged to City and the Services performed hereunder (the “Books and Records”), as shall be necessary to perform the Services required by this Agreement and enable the Contract Officer, or assigned designee, to evaluate the performance of such Services. Any and all such Books and Records shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer, or assigned designee, shall have full and free access to such Books and Records at all times during normal business hours of City, including the right to inspect, copy, audit, and make records and transcripts from such Books and Records. Such Books and Records shall be maintained for a period of three (3) years following completion of the Services hereunder, and City shall have access to such Books and Records in the event any audit is required. In the event of dissolution of Contracting Party’s business, custody of the Books and Records may be given to City, and access shall be provided by Contracting Party’s successor in interest. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds Ten Thousand Dollars ($10,000.00), this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of City, for a period of three (3) years after final payment under this Agreement. 7.3 Ownership of Documents. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents, and other materials plans, drawings, estimates, test data, survey results, models, renderings, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings, digital renderings, or data stored digitally, magnetically, or in any other medium prepared or caused to be prepared by Contracting Party, its employees, subcontractors, and agents in the performance of this Agreement (the “Documents and Materials”) shall be the property of City and shall be delivered to City upon request of the Contract Officer, or assigned designee, or upon the expiration or termination of this Agreement, and Contracting Party shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the Documents and Materials hereunder. Any use, reuse or assignment of such completed Documents and 57 -10- Materials for other projects and/or use of uncompleted documents without specific written authorization by Contracting Party will be at City’s sole risk and without liability to Contracting Party, and Contracting Party’s guarantee and warranties shall not extend to such use, revise, or assignment. Contracting Party may retain copies of such Documents and Materials for its own use. Contracting Party shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any Documents and Materials prepared by them, and in the event Contracting Party fails to secure such assignment, Contracting Party shall indemnify City for all damages resulting therefrom. 7.4 In the event City or any person, firm, or corporation authorized by City reuses said Documents and Materials without written verification or adaptation by Contracting Party for the specific purpose intended and causes to be made or makes any changes or alterations in said Documents and Materials, City hereby releases, discharges, and exonerates Contracting Party from liability resulting from said change. The provisions of this clause shall survive the termination or expiration of this Agreement and shall thereafter remain in full force and effect. 7.5 Licensing of Intellectual Property. This Agreement creates a non- exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, rights of reproduction, and other intellectual property embodied in the Documents and Materials. Contracting Party shall require all subcontractors, if any, to agree in writing that City is granted a non-exclusive and perpetual license for the Documents and Materials the subcontractor prepares under this Agreement. Contracting Party represents and warrants that Contracting Party has the legal right to license any and all of the Documents and Materials. Contracting Party makes no such representation and warranty in regard to the Documents and Materials which were prepared by design professionals other than Contracting Party or provided to Contracting Party by City. City shall not be limited in any way in its use of the Documents and Materials at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk. 7.6 Release of Documents. The Documents and Materials shall not be released publicly without the prior written approval of the Contract Officer, or assigned designee, or as required by law. Contracting Party shall not disclose to any other entity or person any information regarding the activities of City, except as required by law or as authorized by City. 7.7 Confidential or Personal Identifying Information. Contracting Party covenants that all City data, data lists, trade secrets, documents with personal identifying information, documents that are not public records, draft 58 -11- documents, discussion notes, or other information, if any, developed or received by Contracting Party or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Contracting Party to any person or entity without prior written authorization by City or unless required by law. City shall grant authorization for disclosure if required by any lawful administrative or legal proceeding, court order, or similar directive with the force of law. All City data, data lists, trade secrets, documents with personal identifying information, documents that are not public records, draft documents, discussions, or other information shall be returned to City upon the termination or expiration of this Agreement. Contracting Party’s covenant under this section shall survive the termination or expiration of this Agreement. 8.ENFORCEMENT OF AGREEMENT. 8.1 California Law. This Agreement shall be interpreted, construed, and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Contracting Party covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 8.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer, or assigned designee; provided that if the default is an immediate danger to the health, safety, or general welfare, City may take such immediate action as City deems warranted. Compliance with the provisions of this Section shall be a condition precedent to termination of this Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party’s right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City’s right to terminate this Agreement without cause pursuant to this Article 8.0. During the period of time that Contracting Party is in default, City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, City may, in its sole discretion, elect to pay some or all of the outstanding invoices during any period of default. 59 -12- 8.3 Retention of Funds. City may withhold from any monies payable to Contracting Party sufficient funds to compensate City for any losses, costs, liabilities, or damages it reasonably believes were suffered by City due to the default of Contracting Party in the performance of the Services required by this Agreement. 8.4 Waiver. No delay or omission in the exercise of any right or remedy of a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. City’s consent or approval of any act by Contracting Party requiring City’s consent or approval shall not be deemed to waive or render unnecessary City’s consent to or approval of any subsequent act of Contracting Party. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 8.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 8.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, at law or at equity, to cure, correct, or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. 8.7 Termination Prior To Expiration of Term. This Section shall govern any termination of this Agreement, except as specifically provided in the following Section for termination for cause. City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30)days’ written notice to Contracting Party. Upon receipt of any notice of termination, Contracting Party shall immediately cease all Services hereunder except such as may be specifically approved by the Contract Officer, or assigned designee. Contracting Party shall be entitled to compensation for all Services rendered prior to receipt of the notice of termination and for any Services authorized by the Contract Officer, or assigned designee, thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, or assigned designee, except amounts held as a retention pursuant to this Agreement. 8.8 Termination for Default of Contracting Party. If termination is due to the failure of Contracting Party to fulfill its obligations under this Agreement, Contracting Party shall vacate any City-owned property which Contracting 60 -13- Party is permitted to occupy hereunder and City may, after compliance with the provisions of Section 8.2, take over the Services and prosecute the same to completion by contract or otherwise, and Contracting Party shall be liable to the extent that the total cost for completion of the Services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Contracting Party for the purpose of setoff or partial payment of the amounts owed City. 8.9 Attorneys’ Fees. If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorneys’ fees; provided, however, that the attorneys’ fees awarded pursuant to this Section shall not exceed the hourly rate paid by City for legal services multiplied by the reasonable number of hours spent by the prevailing party in the conduct of the litigation. Attorneys’ fees shall include attorneys’ fees on any appeal, and in addition a party entitled to attorneys’ fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery, and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. The court may set such fees in the same action or in a separate action brought for that purpose. 9.CITY OFFICERS AND EMPLOYEES; NONDISCRIMINATION. 9.1 Non-liability of City Officers and Employees. No officer, official, employee, agent, representative, or volunteer of City shall be personally liable to Contracting Party, or any successor in interest, in the event or any default or breach by City or for any amount which may become due to Contracting Party or to its successor, or for breach of any obligation of the terms of this Agreement. 9.2 Conflict of Interest. Contracting Party covenants that neither it, nor any officer or principal of it, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Contracting Party’s performance of the Services under this Agreement. Contracting Party further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent, or subcontractor without the express written consent of the Contract Officer, or assigned designee. Contracting Party agrees to at all times avoid conflicts of interest or the 61 -14- appearance of any conflicts of interest with the interests of City in the performance of this Agreement. No officer or employee of City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to this Agreement which effects his financial interest or the financial interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. Contracting Party warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement. 9.3 Covenant against Discrimination. Contracting Party covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any impermissible classification including, but not limited to, race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry in the performance of this Agreement. Contracting Party shall take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry. 10.MISCELLANEOUS PROVISIONS. 10.1 Notice. Any notice, demand, request, consent, approval, or communication either party desires or is required to give the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this Section. To City: CITY OF LA QUINTA Attention: Bryan McKinney, PE 78495 Calle Tampico La Quinta, California 92253 To Contracting Party: Z&K Consultants Inc. Crystal Faqih, President, 473 E Carnegie Drive, Suite 200 San Bernardino, CA 92408 62 -15- 10.2 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. 10.3 Section Headings and Subheadings. The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement. 10.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument 10.5 Integrated Agreement. This Agreement including the exhibits hereto is the entire, complete, and exclusive expression of the understanding of the parties. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements, and understandings, if any, between the parties, and none shall be used to interpret this Agreement. 10.6 Amendment. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by Contracting Party and by the City Council of City. The parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void. 10.7 Severability. In the event that any one or more of the articles, phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable, such invalidity or unenforceability shall not affect any of the remaining articles, phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless. 10.8 Unfair Business Practices Claims. In entering into this Agreement, Contracting Party offers and agrees to assign to City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials related to this Agreement. This assignment shall be made and become effective at the time City renders final payment to Contracting Party without further acknowledgment of the parties. 63 -16- 10.9 No Third-Party Beneficiaries. With the exception of the specific provisions set forth in this Agreement, there are no intended third-party beneficiaries under this Agreement and no such other third parties shall have any rights or obligations hereunder. 10.10 Authority. The persons executing this Agreement on behalf of each of the parties hereto represent and warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors, and assigns of the parties. [SIGNATURES ON FOLLOWING PAGE] 64 -17- IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. CITY OF LA QUINTA, a California Municipal Corporation JON MCMILLEN, City Manager City of La Quinta, California Dated: CONTRACTING PARTY: By: Name: Title: ATTEST: MONIKA RADEVA, City Clerk La Quinta, California By: Name: Title: APPROVED AS TO FORM: WILLIAM H. IHRKE, City Attorney City of La Quinta, California Crystal Faqih President 65 Scope of Services – Construction Management & Inspection Meetings & Project Start-Up: After award of the construction management contract, the Z&K Team will meet immediately with City personnel for an initial kick-off meeting with the City to discuss the proposed work plan and special concerns to be presented at the preconstruction meeting and be present at the pre-construction meeting. The Z&K Team will obtain a field office or use rotating space at the La Quinta City Hall for the duration of construction. The Z&K Team will administer the construction contract in conformance with the requirements set forth in the project plans and specifications including applicable requirements from Standard Specifications for Public Works Construction and the City. A pre-construction conference will be held with the City, construction management/inspection team, contractor, subcontractors, utilities, and all project stakeholders within a few weeks of the contractor’s award of contract. The Z&K Team will provide a preconstruction agenda using the City format and provide to the City for concurrence and notify all attendees. This will allow for sufficient coordination and communication with all project stakeholders. The construction management team will hold weekly construction progress meetings with the contractor, subcontractors, City staff, Design Engineer, subconsultants, affected outside agencies, and other stakeholders. The team will discuss current construction activities, procedures, progress, problems/issues, and go over the contractor’s “look ahead” schedule for upcoming work. The Z&K Team will prepare the agendas and minutes of all meetings and keep all records. Constructability Review: The Z&K internal design team will conduct a “third party” constructability review of the project plans and specifications that will be completed prior to the preconstruction conference. Prompt constructability reviews and alternative construction methods allow for cost and schedule savings. This review will identify potential problems that may need attention before construction starts. This review will also include identification of all long lead items for the project. The team will resolve the problems through fast and flexible problem solving. This approach will result in timely completion of the work, claims avoidance, and reduction of public inconvenience. To shorten the construction duration, we strongly recommend addressing and implementing the critical issues. Once the review is complete, the CM team will meet with the City and design team to discuss any comments. Supervision of Construction Inspection: The Construction Manager will review the inspectors’ daily reports and provide copies to the City on a weekly basis. Additionally, the Construction Manager will complete a daily/weekly report to the City which includes a summary/type of work completed, work scheduled for the next week, controlling operation, weather conditions, important decisions/agreements with the Contractor, and comments, concerns and project challenges. This will also include percentage of work completed, percentage of time elapsed, and any other important facts pertaining to the project that are not specifically covered elsewhere in the contract records. A monthly construction progress report will be submitted including accomplishments this period, anticipated progress next period, major closures, change orders, pending issues, recommendations, potential claims, environmental monitoring, public relations, safety issues, safety review, and project status. The Construction Manager will submit a monthly labor compliance report to the City and provide a Weekly Statement of Working Days, noting the controlling operations, to the contractor. The Z&K Team will have a Quality Control Plan in effect to assist quality assurance during the entire time the work is in effect. Our internal QA/QC process is simple and does not require additional time demands of the City. Routinely, our Construction Manager or Inspectors will conduct independent reviews of the project records for their adherence to the City policies and procedures. The Team will ensure accuracy and completeness of the calculations, related documents, and all other work furnished. The Quality Control Plan will establish a process whereby all work is independently checked, corrected and back- checked, in accordance with accepted practice, by our registered engineer, the Construction Manager. All original drawings and calculations will be maintained for the duration of the contract. As part of the constructability review and the Quality Control Plan, the Z&K Team will coordinate and check to ensure that conflicts and misalignment do not occur between different design documents he Z&K Inspectors understand the importance of verifying that the contractor’s dust control, Storm Water Pollution Prevention Plan (SWPPP), and traffic control plan implementation is consistent with the approved Plans. If there are deviations from the approved plan, the team will take contractually-stipulated action. All Z&K Inspection staff has completed their Qualified SWPPP Practitioner (QSP) and/or Qualified SWPPP Developer (QSD) training, and the majority are QSP/D certified for the new permitting guidelines. Page 13 of 15 Exhibit A Scope of Services Exhibit A Page 1 of 8 66 Multi-Disciplined staff results in cost- effective construction management services through staffing efficiency. Our objective is to provide the most qualified construction management team members that have City project experience. Our team has managed similar projects and are high caliber engineers that have worked on numerous park projects. Our team will coordinate and monitor the activities of on-site inspectors and administrators such that appropriate coverage of all contractor activities is provided. Construction Schedule: On a weekly basis, the Construction Manager will review and analyze the contractor’s schedule, including activity sequence and duration, schedule submittal and schedule delivery for products with long lead times, and identify potential areas of delay to the critical path. The Construction manager will also review the Contractor’s weekly scheduled for compliance with project specifications and note any contractual non- compliance and request remedial action pan from the Contractor. From the weekly look ahead schedule, the construction manager will ascertain that the schedule logic, milestones, and floats are within allotted tolerances. Coordination: The Construction Manager will provide on-going coordination, including, but not limited to: o City of La Quinta City Engineer o Other City Departments o Design Team o Other Agencies o Contractor o Coachella Valley Water District – Water & Sewer o Spectrum - Cable o SoCal Gas - Gas o Imperial Irrigation District - Electricity o Frontier - Telephone o Burrtec - Waste & Recycling Services o Utility Companies and Connections, as Needed o Paleo and Cultural Monitors o Biologist and have them conduct nesting bird surveys as required o Training Sessions required for City Staff o Field Walks with inspector(s), design engineer, and City representatives o Construction Surveying o Materials Testing Project Correspondence: The Z&K Construction Manager and Inspection staff bring a detailed understanding of the City processes for administering Contract Change Orders and Contractor payment per City’s standards & procedures. We will work closely under the direction of the City and with the contractor to verify that the contractor’s payments are processed, provide recommendations, and ensure they are executed promptly by the contract documents and City’s procedures. The Z&K Team will also review and analyze the Change Orders and recommend necessary or desirable changes in the Construction Contractor’s scope of work to the City. Z&K will negotiate with the Contractor and submit recommendations to the City supported by field data related to any additional work. If change orders are accepted by the City, Z&K will prepare change orders for signature and authorization by the City. The team will maintain a log of the change requests that will be available to the City. Inspectors will verify all work performed under time and materials, including equipment, contractor crew, and field measurements quantities. The Construction Manager will receive, review, log and respond to all submittals and Request for Information (RFIs) as they are received. The tracking log will include the date delivered, who it was transmitted to for comment/approval, and when it was returned. The team will submit requests for Information as required on any items that should be coordinated with the design engineer(s). Z&K will also review and approve Subcontracting Request forms. Z&K will receive, process, review, and accept all shop drawings, project data, samples, and other submittals including coordination with the design engineer for review as needed. The CM team will also establish and implement procedures for expediting the processing and approval of submittal. Z&K will review and approve laboratory, shop, and mill test reports of materials and equipment. Review on Contract Claims: The Construction Manager will perform on-going review throughout the project to avoid any potential claims. If claims arise, the Construction Manager will work with the City and Contractor to find the best solution to resolve any claims in a timely manner. All potential claims will be documented and maintained for account records. The team will provide all necessary documentation and support to the City in settling claims. Final Walk Through and “Punch-List”: The Construction Management Team will check the near-completed facilities to identify discrepancies and deficiencies in the work performed by the contractor and prepare the necessary punch lists. The Z&K Team will promptly perform a walk-through inspection with the contractor to finalize the punch list. Z&K will provide construction management documents and records to the City within 60 days of the filing of the notice of completion. “As-Built” Plans: The Z&K Team will collect “As-Built” data from all contractors and subcontractors and continuously update the plans as changes are approved. When the project is completed, the Construction Manager will submit a complete set of “As-Built” plans to the City. During the course of construction, the Inspectors will maintain one set of plans, with markings and dimensions in red ink, to denote field changes or other corrections. The team will Create and maintain “As-Built” project schedule with Microsoft Project or equivalent program. Page 14 of 15Exhibit A Page 2 of 8 67 Project Closeout: Z&K will provide the following, at a minimum: o Administer and coordinate final inspections. Coordinate the correction and the completion of the work. o Assist the City in determining when the project, or a designated portion thereof, is substantially complete. o Prepare for the City, a summary of the status of the work of the Contractor, listing changes in the previously issued certificates of substantial completion of the work, and recommending the times within which the Contractor shall complete uncompleted items on the certificate of substantial completion of the work. o Calculate the amount of final payment due to the prime Contractor and prepare the proposed final estimate. o Obtain evidence of certification of all lien releases after the City files their notice of completion. o Secure from the contractor and transmit to the City, required guarantees. o Coordinate any startup requirements. Deliver all equipment manuals, special equipment, spare parts, catalogs, and other materials required by specifications. o Make recommendation for the release of retention. Public Outreach: Under the direction of the City, Z&K will be overseeing the Public Relations/Outreach activities. The key to any successful outreach campaign is to front load the outreach effort at the beginning of the project. The team will work closely with the City to ensure that the businesses and residents are well informed and will deal with any complaints. Construction Inspection: The Z&K Engineers and Inspectors have the knowledge, skill, and experience to inspect all the anticipated construction operations for this contract. Throughout the project, the inspectors will review contract documents, plans, and permits. Inspectors will monitor and enforce construction noticing requirements, including but not limited to, PM- 10 and SWPPP requirements. Z&K will monitor the Contractor’s fugitive dust control plan and ensure that the Contractor uses approved haul routes and that they are kept clean. The Z&K Inspectors will verify compliance with the construction contract by monitoring, evaluating, approving or rejecting the Contractor’s work in accordance with the approved construction contract documents. Inspectors will determine that the Contractor’s work is being performed in accordance with the requirements of the contract documents and endeavor to guard the City against defect and deficiencies in the work. As appropriate, the team will require special inspection or testing, or make recommendations to the City regarding special inspection or testing of work not in accordance with the provisions of the contract documents, whether or not such work is fabricated, installed, or completed. Our Z&K Inspectors have excellent of ADA compliance experience and will provide inspection for all ADA features. Our proposed ICC certified inspector, Gregory Hunkle, will provide the following required special inspections: structural concrete over 2,500 psi, field welding, and epoxy/expansion anchors. Additionally, Z&K inspectors will coordinate soils compliance prior to foundation inspection. Reporting & Project Documentation: Our proposed staff has extensive documentation and filing experience. Our Inspectors know that a complete record of the project must include a full set of all contract drawings, specifications, change orders, logs, submittals, and RFI’s. Filing will include correspondence with all stakeholders and permit agencies, reports (daily, weekly, monthly) showing all day-to-day operations, the contractor's workforce, and equipment. In addition to the materials on hand, materials testing reports and sampling, copies of all permits, SWPPP plan, all reports, updates, and all other contract documents related to the construction of the project will be documented. The Z&K Team will maintain, on a current basis, a record copy of all contracts, drawings, specifications, addenda, change orders, and other modifications, in good order and marked to record all changes made during construction; shop drawings, product data; samples; submittal; purchases; materials; equipment; applicable handbooks; maintenance and operating manuals and instructions; other related documents and revisions which are relevant to the contract work. The Z&K proposed staff will maintain a field diary (bound notebook) during construction including a cumulative record of quantities constructed, daily and weekly reports, working day reports, change order documentation, photographs and other documentation. Maintain a separate field diary for change order work. The team will complete a Daily Report including weather, equipment om site, number of workers, crews/personnel, activities, quantities, work accomplished, problems encountered, photos (before, during and after construction), contractor and sub-contractors’ work onsite, critical conversations that took place each day, and other relevant data. Daily Reports and any other reports will be accessible by City staff to ensure that the City is informed of the project progress. These will include information on the Contractor and the entire project, showing percentages of completion. In addition to the diary and reports, the inspectors will maintain copies of all permits needed to construct the project and enforce special requirements of each. The team will provide and maintain a digital photographic history of the progress of the project. Photos will also be taken of the following: showing existing conditions prior to construction, disputed work items, work that has to be duplicated, replaced, or removed, completed work, and extra work. Page 15 of 15Exhibit A Page 3 of 8 68 Exhibit A Page 4 of 8 Additional services to be provided: •The site will have full-time coverage (8 hours a day) for all contractor working days. •Quality assurance construction survey and material testing is outside the scope of our services but can be added to our services as per the City's request •Construction Manager will be the main point of contact and can provide status updates at any time regarding work progress. •Construction Manager will conduct the weekly construction meetings, review and respond to submittals, RFIs, and CCOs, and provide weekly and monthly project status updates. •Cost proposal allots 1 hour a week for 24 weeks for Construction Manager. •Document control will be of no charge to the City. •Z&K Will perform all deputy and special inspection as per plans, specifications, and contract documents. •Greg is expected to work an average of 2 hours per week. His time can be increased based on special/deputy inspection needs. •When Greg is on-site, there will be no need to have any other inspectors. •Patrick will be on-site as the project inspector performing all periodic and regular inspections as per contract documents and will have full corporate support. •Patrick is allotted 8 hours a day for contractor working days. •Weekly hours adjusted based on the Contractors critical operations. 69 ADDENDUM TO AGREEMENT Re: Scope of Services If the Scope of Services include construction, alteration, demolition, installation, repair, or maintenance affecting real property or structures or improvements of any kind appurtenant to real property, the following apply: 1.Prevailing Wage Compliance. If Contracting Party is a contractor performing public works and maintenance projects, as described in this Section 1.3, Contracting Party shall comply with applicable Federal, State, and local laws. Contracting Party is aware of the requirements of California Labor Code Sections 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Sections 16000, et seq., (collectively, the “Prevailing Wage Laws”), and La Quinta Municipal Code Section 3.12.040, which require the payment of prevailing wage rates and the performance of other requirements on “Public works” and “Maintenance” projects. If the Services are being performed as part of an applicable “Public works” or “Maintenance” project, as defined by the Prevailing Wage Laws, and if construction work over twenty-five thousand dollars ($25,000.00) and/or alterations, demolition, repair or maintenance work over fifteen thousand dollars ($15,000.00) is entered into or extended on or after January 1, 2015 by this Agreement, Contracting Party agrees to fully comply with such Prevailing Wage Laws including, but not limited to, requirements related to the maintenance of payroll records and the employment of apprentices. Pursuant to California Labor Code Section 1725.5, no contractor or subcontractor may be awarded a contract for public work on a “Public works” project unless registered with the California Department of Industrial Relations (“DIR”) at the time the contract is awarded. If the Services are being performed as part of an applicable “Public works” or “Maintenance” project, as defined by the Prevailing Wage Laws, this project is subject to compliance monitoring and enforcement by the DIR. Contracting Party will maintain and will require all subcontractors to maintain valid and current DIR Public Works contractor registration during the term of this Agreement. Contracting Party shall notify City in writing immediately, and in no case more than twenty-four (24) hours, after receiving any information that Contracting Party’s or any of its subcontractor’s DIR registration status has been suspended, revoked, expired, or otherwise changed. It is understood that it is the responsibility of Contracting Party to determine the correct salary scale. Contracting Party shall make copies of the prevailing rates of per diem wages for each craft, classification, or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at Contracting Party’s principal place of business and at the project site, if any. The statutory penalties for failure to pay prevailing wage or to comply with State wage and hour laws will be enforced. Contracting Party must forfeit to City TWENTY- Exhibit A Page 5 of 8 70 FIVE DOLLARS ($25.00) per day for each worker who works in excess of the minimum working hours when Contracting Party does not pay overtime. In accordance with the provisions of Labor Code Sections 1810 et seq., eight (8)hours is the legal working day. Contracting Party also shall comply with State law requirements to maintain payroll records and shall provide for certified records and inspection of records as required by California Labor Code Section 1770 et seq., including Section 1776. In addition to the other indemnities provided under this Agreement, Contracting Party shall defend (with counsel selected by City), indemnify, and hold City, its elected officials, officers, employees, and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It is agreed by the parties that, in connection with performance of the Services, including, without limitation, any and all “Public works” (as defined by the Prevailing Wage Laws), Contracting Party shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law. Contracting Party acknowledges and agrees that it shall be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with such laws. Contracting Party shall require the same of all subcontractors. 2.Retention. Payments shall be made in accordance with the provisions of Article 2.0 of the Agreement. In accordance with said Sections, City shall pay Contracting Party a sum based upon ninety-five percent (95%) of the Contract Sum apportionment of the labor and materials incorporated into the Services under this Agreement during the month covered by said invoice. The remaining five percent (5%) thereof shall be retained as performance security to be paid to Contracting Party within sixty (60) days after final acceptance of the Services by the City Council of City, after Contracting Party has furnished City with a full release of all undisputed payments under this Agreement, if required by City. In the event there are any claims specifically excluded by Contracting Party from the operation of the release, City may retain proceeds (per Public Contract Code § 7107) of up to one hundred fifty percent (150%) of the amount in dispute. City’s failure to deduct or withhold shall not affect Contracting Party’s obligations under the Agreement. 3.Utility Relocation. City is responsible for removal, relocation, or protection of existing main or trunk-line utilities to the extent such utilities were not identified in the invitation for bids or specifications. City shall reimburse Contracting Party for any costs incurred in locating, repairing damage not caused by Contracting Party, and removing or relocating such unidentified utility facilities. Contracting Party shall not be assessed liquidated Exhibit A Page 6 of 8 71 damages for delay arising from the removal or relocation of such unidentified utility facilities. 4.Trenches or Excavations. Pursuant to California Public Contract Code Section 7104, in the event the work included in this Agreement requires excavations more than four (4) feet in depth, the following shall apply: (a)Contracting Party shall promptly, and before the following conditions are disturbed, notify City, in writing, of any: (1) material that Contracting Party believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; (2) subsurface or latent physical conditions at the site different from those indicated by information about the site made available to bidders prior to the deadline for submitting bids; or (3) unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the Agreement. (b)City shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in Contracting Party’s cost of, or the time required for, performance of any part of the work shall issue a change order per Section 1.8 of the Agreement. (c)in the event that a dispute arises between City and Contracting Party whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contracting Party’s cost of, or time required for, performance of any part of the work, Contracting Party shall not be excused from any scheduled completion date provided for by this Agreement, but shall proceed with all work to be performed under this Agreement. Contracting Party shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the contracting Parties. 5.Safety. Contracting Party shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out the Services, Contracting Party shall at all times be in compliance with all applicable local, state, and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, Exhibit A Page 7 of 8 72 Exhibit A Page 8 of 8 bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C)adequate facilities for the proper inspection and maintenance of all safety measures. 6.Liquidated Damages. Since the determination of actual damages for any delay in performance of the Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, Contracting Party shall be liable for and shall pay to City the sum of One Thousand dollars ($1,000.00) as liquidated damages for each working day of delay in the performance of any of the Services required hereunder, as specified in the Schedule of Performance. In addition, liquidated damages may be assessed for failure to comply with the emergency call out requirements, if any, described in the Scope of Services. City may withhold from any moneys payable on account of the Services performed by Contracting Party any accrued liquidated damages. 73 Exhibit B Page 1 of 2 Exhibit B Schedule of Compensation With the exception of compensation for Additional Services, provided for in Section 2.3 of this Agreement, the maximum total compensation to be paid to Contracting Party under this Agreement is not to exceed One Hundred Thousand Dollars ($ 100,000.00) (“Contract Sum”). The Contract Sum shall be paid to Contracting Party in payments made on a monthly basis and in an amount identified in Contracting Party’s schedule of compensation attached hereto for the work tasks performed and properly invoiced by Contracting Party in conformance with Section 2.2 of this Agreement. 74 Construction Manager Senior Site Inspector/ Deputy Inspector Senior Construction Inspector QA Construction Survey (Optional) Licensed Landscape Architect (Optional) Community Outreach Specialist Document Control SWPPP/ Environmental Specialist 145.00$130.00$130.00$130.00$135.00$125.00$125.00$120.00$-$ Total Hours Labor Cost Total Cost (Including Markup) Task 1 Construction Management 24 24 3,480.00$3,480.00$ Task 2 Construction Inspection and Reporting 22 720 742 96,460.00$ 96,460.00$ 0 -$ -$ 0 -$ -$ 0 -$ -$ 0 -$ -$ 24 22 720 0 0 0 0 0 766 3,480.00$2,860.00$93,600.00$ -$ -$ -$ -$ -$ -$ 1532 99,940.00$ 99,940.00$ 3,480.00$2,860.00$93,600.00$ -$ -$ -$ -$ -$ 99,940.00$ 99,940.00$ 0.6 0.55 18 0 0 0 0 0 38.3 99,940.00$ Note: The above rates are fully billable rates. All overhead costs are included. Total Hours Subtotals: FTE (Weeks) Total Cost: Cost Proposal Construction Management Services for SilverRock Park Venue Site City Project: 2016-08 Hourly Billing Rate Subtotals Including Markup: Markup (10%) : Exhibit B Page 2 of 2 75 Exhibit C Page 1 of 1 Exhibit C Schedule of Performance Contracting Party shall complete all services identified in the Scope of Services, Exhibit A of this Agreement, as requested by the City in the time allowed by the total contract sum. 76 Exhibit D Page 1 of 1 Exhibit D Special Requirements None 77 Exhibit E Page 1 of 6 Exhibit E Insurance Requirements E.1 Insurance. Prior to the beginning of and throughout the duration of this Agreement, the following policies shall be maintained and kept in full force and effect providing insurance with minimum limits as indicated below and issued by insurers with A.M. Best ratings of no less than A-VI: Commercial General Liability (at least as broad as ISO CG 0001) $2,000,000 (per occurrence) $4,000,000 (general aggregate) Must include the following endorsements: General Liability Additional Insured General Liability Primary and Non-contributory Commercial Auto Liability (at least as broad as ISO CA 0001) $1,000,000 (per accident) Personal Auto Declaration Page if applicable Errors and Omissions Liability $1,000,000 (per claim and aggregate) Workers’ Compensation (per statutory requirements) Must include the following endorsements: Workers Compensation with Waiver of Subrogation Workers Compensation Declaration of Sole Proprietor if applicable Contracting Party shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, Commercial General Liability insurance against all claims for injuries against persons or damages to property resulting from Contracting Party’s acts or omissions rising out of or related to Contracting Party’s performance under this Agreement. The insurance policy shall contain a severability of interest clause providing that the coverage shall be primary for losses arising out of Contracting Party’s performance hereunder and neither City nor its insurers shall be required to contribute to any such loss. An endorsement evidencing the foregoing and naming the City and its officers and employees as additional insured (on the Commercial General Liability policy only) must be submitted concurrently with the execution of this Agreement and approved by City prior to commencement of the services hereunder. Contracting Party shall carry automobile liability insurance of $5,000,000 per accident against all claims for injuries against persons or 78 Exhibit E Page 2 of 6 damages to property arising out of the use of any automobile by Contracting Party, its officers, any person directly or indirectly employed by Contracting Party, any subcontractor or agent, or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Contracting Party’s performance under this Agreement. If Contracting Party or Contracting Party’s employees will use personal autos in any way on this project, Contracting Party shall provide evidence of personal auto liability coverage for each such person. The term “automobile” includes, but is not limited to, a land motor vehicle, trailer or semi-trailer designed for travel on public roads. The automobile insurance policy shall contain a severability of interest clause providing that coverage shall be primary for losses arising out of Contracting Party’s performance hereunder and neither City nor its insurers shall be required to contribute to such loss. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Contracting Party and “Covered Professional Services” as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer’s duty to defend. The policy retroactive date shall be on or before the effective date of this agreement. Contracting Party shall carry Workers’ Compensation Insurance in accordance with State Worker’s Compensation laws with employer’s liability limits no less than $1,000,000 per accident or disease. If coverage is maintained on a claims-made basis, Contracting Party shall maintain such coverage for an additional period of three (3) years following termination of the contract. Contracting Party shall provide written notice to City within ten (10)working days if: (1) any of the required insurance policies is terminated; (2)the limits of any of the required polices are reduced; or (3) the deductible or self-insured retention is increased. In the event any of said policies of insurance are cancelled, Contracting Party shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Exhibit to the Contract Officer. The procuring of such insurance or the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Contracting Party’s obligation to indemnify City, its officers, employees, contractors, subcontractors, or agents. E.2 Remedies. In addition to any other remedies City may have if Contracting Party fails to provide or maintain any insurance policies or policy 79 Exhibit E Page 3 of 6 endorsements to the extent and within the time herein required, City may, at its sole option: a.Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. b.Order Contracting Party to stop work under this Agreement and/or withhold any payment(s) which become due to Contracting Party hereunder until Contracting Party demonstrates compliance with the requirements hereof. c.Terminate this Agreement. Exercise of any of the above remedies, however, is an alternative to any other remedies City may have. The above remedies are not the exclusive remedies for Contracting Party’s failure to maintain or secure appropriate policies or endorsements. Nothing herein contained shall be construed as limiting in any way the extent to which Contracting Party may be held responsible for payments of damages to persons or property resulting from Contracting Party’s or its subcontractors’ performance of work under this Agreement. E.3 General Conditions Pertaining to Provisions of Insurance Coverage by Contracting Party. Contracting Party and City agree to the following with respect to insurance provided by Contracting Party: 1.Contracting Party agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials, employees, and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Contracting Party also agrees to require all contractors, and subcontractors to do likewise. 2.No liability insurance coverage provided to comply with this Agreement shall prohibit Contracting Party, or Contracting Party’s employees, or agents, from waiving the right of subrogation prior to a loss. Contracting Party agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise. 3.All insurance coverage and limits provided by Contracting Party and available or applicable to this Agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to City or its operations limits the application of such insurance coverage. 80 Exhibit E Page 4 of 6 4.None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 5.No liability policy shall contain any provision or definition that would serve to eliminate so-called “third party action over” claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor. 6.All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Contracting Party shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City’s protection without City’s prior written consent. 7.Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all the coverages required and an additional insured endorsement to Contracting Party’s general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Contracting Party or deducted from sums due Contracting Party, at City option. 8.It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Contracting Party or any subcontractor, is intended to apply first and on a primary, non-contributing basis in relation to any other insurance or self-insurance available to City. 9.Contracting Party agrees to ensure that subcontractors, and any other party involved with the project that is brought onto or involved in the project by Contracting Party, provide the same minimum insurance coverage required of Contracting Party. Contracting Party agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contracting Party agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review. 10.Contracting Party agrees not to self-insure or to use any self- insured retentions or deductibles on any portion of the insurance required herein (with the exception of professional liability coverage, if required) and 81 Exhibit E Page 5 of 6 further agrees that it will not allow any contractor, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self-insure its obligations to City. If Contracting Party’s existing coverage includes a deductible or self-insured retention, the deductible or self-insured retention must be declared to the City. At that time the City shall review options with the Contracting Party, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions. 11.The City reserves the right at any time during the term of this Agreement to change the amounts and types of insurance required by giving the Contracting Party ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Contracting Party, the City will negotiate additional compensation proportional to the increased benefit to City. 12.For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 13.Contracting Party acknowledges and agrees that any actual or alleged failure on the part of City to inform Contracting Party of non- compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard. 14.Contracting Party will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect. 15.Contracting Party shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Contracting Party’s insurance agent to this effect is acceptable. A certificate of insurance and an additional insured endorsement is required in these specifications applicable to the renewing or new coverage must be provided to City within five (5) days of the expiration of coverages. 82 Exhibit E Page 6 of 6 16.The provisions of any workers’ compensation or similar act will not limit the obligations of Contracting Party under this agreement. Contracting Party expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials, and agents. 17.Requirements of specific coverage features, or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be limiting or all-inclusive. 18.These insurance requirements are intended to be separate and distinct from any other provision in this Agreement and are intended by the parties here to be interpreted as such. 19.The requirements in this Exhibit supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Exhibit. 20.Contracting Party agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Contracting Party for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto. 21.Contracting Party agrees to provide immediate notice to City of any claim or loss against Contracting Party arising out of the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. 83 Exhibit F Page 1 of 3 Exhibit F Indemnification F.1 Indemnity for the Benefit of City. a.Indemnification for Professional Liability. When the law establishes a professional standard of care for Contracting Party’s Services, to the fullest extent permitted by law, Contracting Party shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officials, employees, and agents (“Indemnified Parties”) from and against any and all claims, losses, liabilities of every kind, nature, and description, damages, injury (including, without limitation, injury to or death of an employee of Contracting Party or of any subcontractor), costs and expenses of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation, to the extent same are caused in whole or in part by any negligent or wrongful act, error or omission of Contracting Party, its officers, agents, employees or subcontractors (or any entity or individual that Contracting Party shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Contracting Party shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A without the written consent of the Contracting Party. b.Indemnification for Other Than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Contracting Party shall indemnify, defend (with counsel selected by City), and hold harmless the Indemnified Parties from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses) incurred in connection therewith and costs of investigation, where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Contracting Party or by any individual or entity for which Contracting Party is legally liable, including but not limited to officers, agents, employees, or subcontractors of Contracting Party. c.Indemnity Provisions for Contracts Related to Construction (Limitation on Indemnity). Without affecting the rights of City under any 84 Exhibit F Page 2 of 3 provision of this agreement, Contracting Party shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City’s active negligence accounts for only a percentage of the liability involved, the obligation of Contracting Party will be for that entire portion or percentage of liability not attributable to the active negligence of City. d.Indemnification Provision for Design Professionals. 1. Applicability of this Section F.1(d). Notwithstanding Section F.1(a) hereinabove, the following indemnification provision shall apply to a Contracting Party who constitutes a “design professional” as the term is defined in paragraph 3 below. 2.Scope of Indemnification. When the law establishes a professional standard of care for Contracting Party’s Services, to the fullest extent permitted by law, Contracting Party shall indemnify and hold harmless City and any and all of its officials, employees, and agents (“Indemnified Parties”) from and against any and all losses, liabilities of every kind, nature, and description, damages, injury (including, without limitation, injury to or death of an employee of Contracting Party or of any subcontractor), costs and expenses, including, without limitation, incidental and consequential damages, court costs, reimbursement of attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation, to the extent same are caused by any negligent or wrongful act, error or omission of Contracting Party, its officers, agents, employees or subcontractors (or any entity or individual that Contracting Party shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Contracting Party shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A without the written consent of the Contracting Party. 3. Design Professional Defined. As used in this Section F.1(d), the term “design professional” shall be limited to licensed architects, registered professional engineers, licensed professional land surveyors and landscape architects, all as defined under current law, and as may be amended from time to time by Civil Code § 2782.8. F.2 Obligation to Secure Indemnification Provisions. Contracting Party agrees to obtain executed indemnity agreements with provisions 85 Exhibit F Page 3 of 3 identical to those set forth herein this Exhibit F, as applicable to the Contracting Party, from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Contracting Party in the performance of this Agreement. In the event Contracting Party fails to obtain such indemnity obligations from others as required herein, Contracting Party agrees to be fully responsible according to the terms of this Exhibit. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth in this Agreement are binding on the successors, assigns or heirs of Contracting Party and shall survive the termination of this Agreement. 86 City of La Quinta CITY COUNCIL MEETING: October 1, 2019 STAFF REPORT AGENDA TITLE: APPROVE AGREEMENT FOR CONTRACT SERVICES WITH BEST SIGNS, INC. FOR THE PURCHASE AND INSTALLATION OF SIGNS FOR THE HIGHWAY 111 AUTO DEALER SIGNAGE PROJECT (PROJECT NO. 2019-06) RECOMMENDATION Approve an agreement for contract services with Best Signs, Inc. for the purchase and installation of signs for the Highway 111 Auto Dealer Signage Project No. 2019-06; and authorize the City Manager to execute the agreement. EXECUTIVE SUMMARY •The Highway 111 Auto Dealership Signage Project is included in the 2019/20 Capital Improvement Program (CIP). •This project entails fabricating and installing signs along Highway 111 between Adams Street and La Quinta Center Drive (Attachment 1). •The project is part of the Auto Dealer frontage improvement efforts in coordination with the Highway 111 Auto Dealerships. •The La Quinta Auto Collection Sign Program (Attachment 2) was reviewed and approved by the Planning Commission at the August 13, 2019 meeting. FISCAL IMPACT The cost to fabricate and install the signs is $299,715. There are sufficient funds in the CIP project budget 401-0000-60188 (2019-06). BACKGROUND/ANALYSIS The Highway 111 Auto Dealership Signage Project was included in the 2019/20 CIP as part of a larger improvement effort with the auto dealerships. The sign installations will be coordinated with the auto dealerships’ project to construct auto pads and new landscape improvements along the Highway 111 frontage between Adams Street and La Quinta Center Drive and the City’s Highway 111 Sidewalk Improvement Project. CONSENT CALENDAR ITEM NO. 6 87 Best Signs, Inc. designed the signs as art pieces to emulate the La Quinta mountains. The signs include internal lighting, two-tone bronze and galvanized color material, and are approximately 11-14 ft in height. They will be installed along the frontage of the Highway 111 auto dealerships. In August, the sign design as well as the sign program was approved by the Planning Commission. Per the Agreement (Attachment 3), the signs will be installed pursuant to the City’s sign program. ALTERNATIVES Council may direct staff to find alternate sign options, but this will delay the project. Prepared by: Julie Mignogna, Management Analyst Approved by: Bryan McKinney, P.E., City Engineer Attachment: 1.Vicinity Map 2.Agreement for Contract Services with Best Signs, Inc. 88 *IMPORTANT* Maps and data are to be used for reference purposes only. Map features are approximate, and are not necessarily accurate to surveying or engineering standards. The County of Riverside makes no warranty or guarantee as to the content (the source is often third party), accuracy, timeliness, or completeness of any of the data provided, and assumes no legal responsibility for the information contained on this map. Any use of this product with respect to accuracy and precision shall be the sole responsibility of the user. © Riverside County GIS Legend Notes From Adams Street to La Quinta Drive REPORT PRINTED ON...2/7/2019 11:38:16 AM Vicinity Map Highway 111 Auto Dealership Signage Project (2019-06) 0 12,0376, 019 Feet Blueline Streams City Areas World Street Map ATTACHMENT 1 89 ATTACHMENT 1 90 AGREEMENT FOR CONTRACT SERVICES THIS AGREEMENT FOR CONTRACT SERVICES (the “Agreement”) is made and entered into by and between the CITY OF LA QUINTA, (“City”), a California municipal corporation, and Best Signs, Inc. (“Contracting Party”). The parties hereto agree as follows: 1.SERVICES OF CONTRACTING PARTY. 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Contracting Party shall provide those services related to Highway 111 Auto Dealership Signage Project (Project No. 2019-06) sign fabrication and installation, as specified in the “Scope of Services” attached hereto as “Exhibit A” and incorporated herein by this reference (the “Services”). Contracting Party represents and warrants that Contracting Party is a provider of first-class work and/or services and Contracting Party is experienced in performing the Services contemplated herein and, in light of such status and experience, Contracting Party covenants that it shall follow industry standards in performing the Services required hereunder, and that all materials, if any, will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase “industry standards” shall mean those standards of practice recognized by one or more first-class firms performing similar services under similar circumstances. 1.2 Compliance with Law. All Services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations, and laws of the City and any Federal, State, or local governmental agency of competent jurisdiction. 1.3 Wage and Hour Compliance, Contracting Party shall comply with applicable Federal, State, and local wage and hour laws. 1.4 Licenses, Permits, Fees and Assessments. Except as otherwise specified herein, Contracting Party shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of the Services required by this Agreement, including a City of La Quinta business license. Contracting Party and its employees, agents, and subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required for the performance of the Services required by this Agreement. Contracting Party shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the performance of the Services required by this Agreement, and shall indemnify, defend (with counsel selected by City), and hold City, its elected officials, officers, ATTACHMENT 2 91 -2- employees, and agents, free and harmless against any such fees, assessments, taxes, penalties, or interest levied, assessed, or imposed against City hereunder. Contracting Party shall be responsible for all subcontractors’ compliance with this Section. 1.5 Familiarity with Work. By executing this Agreement, Contracting Party warrants that (a) it has thoroughly investigated and considered the Services to be performed, (b) it has investigated the site where the Services are to be performed, if any, and fully acquainted itself with the conditions there existing, (c) it has carefully considered how the Services should be performed, and (d) it fully understands the facilities, difficulties, and restrictions attending performance of the Services under this Agreement. Should Contracting Party discover any latent or unknown conditions materially differing from those inherent in the Services or as represented by City, Contracting Party shall immediately inform City of such fact and shall not proceed except at Contracting Party’s risk until written instructions are received from the Contract Officer, or assigned designee (as defined in Section 4.2 hereof). 1.6 Standard of Care. Contracting Party acknowledges and understands that the Services contracted for under this Agreement require specialized skills and abilities and that, consistent with this understanding, Contracting Party’s work will be held to an industry standard of quality and workmanship. Consistent with Section 1.5 hereinabove, Contracting Party represents to City that it holds the necessary skills and abilities to satisfy the industry standard of quality as set forth in this Agreement. Contracting Party shall adopt reasonable methods during the life of this Agreement to furnish continuous protection to the Services performed by Contracting Party, and the equipment, materials, papers, and other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the Services by City, except such losses or damages as may be caused by City’s own negligence. The performance of Services by Contracting Party shall not relieve Contracting Party from any obligation to correct any incomplete, inaccurate, or defective work at no further cost to City, when such inaccuracies are due to the negligence of Contracting Party. 1.7 Additional Services. In accordance with the terms and conditions of this Agreement, Contracting Party shall perform services in addition to those specified in the Scope of Services (“Additional Services”) only when directed to do so by the Contract Officer, or assigned designee, provided that Contracting Party shall not be required to perform any Additional Services without compensation. Contracting Party shall not perform any Additional Services until receiving prior written authorization (in the form of a written 92 -3- change order if Contracting Party is a contractor performing the Services) from the Contract Officer, or assigned designee, incorporating therein any adjustment in (i) the Contract Sum, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of Contracting Party. It is expressly understood by Contracting Party that the provisions of this Section shall not apply to the Services specifically set forth in the Scope of Services or reasonably contemplated therein. It is specifically understood and agreed that oral requests and/or approvals of Additional Services shall be barred and are unenforceable. Failure of Contracting Party to secure the Contract Officer’s, or assigned designee’s written authorization for Additional Services shall constitute a waiver of any and all right to adjustment of the Contract Sum or time to perform this Agreement, whether by way of compensation, restitution, quantum meruit, or the like, for Additional Services provided without the appropriate authorization from the Contract Officer, or assigned designee. Compensation for properly authorized Additional Services shall be made in accordance with Section 2.3 of this Agreement. 1.8 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in “Exhibit D” (the “Special Requirements”), which is incorporated herein by this reference and expressly made a part hereof. In the event of a conflict between the provisions of the Special Requirements and any other provisions of this Agreement, the provisions of the Special Requirements shall govern. 2.COMPENSATION. 2.1 Contract Sum. For the Services rendered pursuant to this Agreement, Contracting Party shall be compensated in accordance with “Exhibit B” (the “Schedule of Compensation”) in a total amount not to exceed Two Hundred Ninety-Nine Thousand, Seven Hundred Fifteen Dollars and Twenty Four Cents ($299,715.24). (the “Contract Sum”), except as provided in Section 1.7. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment in accordance with the percentage of completion of the Services, payment for time and materials based upon Contracting Party’s rate schedule, but not exceeding the Contract Sum, or such other reasonable methods as may be specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Contracting Party at all project meetings reasonably deemed necessary by City; Contracting Party shall not be entitled to any additional compensation for attending said meetings. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses when and if specified in the Schedule of Compensation. Regardless of the method of 93 -4- compensation set forth in the Schedule of Compensation, Contracting Party’s overall compensation shall not exceed the Contract Sum, except as provided in Section 1.7 of this Agreement. 2.2 Method of Billing & Payment. Any month in which Contracting Party wishes to receive payment, Contracting Party shall submit to City no later than the tenth (10th) working day of such month, in the form approved by City’s Finance Director, an invoice for Services rendered prior to the date of the invoice. Such invoice shall (1) describe in detail the Services provided, including time and materials, and (2) specify each staff member who has provided Services and the number of hours assigned to each such staff member. Such invoice shall contain a certification by a principal member of Contracting Party specifying that the payment requested is for Services performed in accordance with the terms of this Agreement. Upon approval in writing by the Contract Officer, or assigned designee, and subject to retention pursuant to Section 8.3, City will pay Contracting Party for all items stated thereon which are approved by City pursuant to this Agreement no later than thirty (30) days after invoices are received by the City’s Finance Department. 2.3 Compensation for Additional Services. Additional Services approved in advance by the Contract Officer, or assigned designee, pursuant to Section 1.7 of this Agreement shall be paid for in an amount agreed to in writing by both City and Contracting Party in advance of the Additional Services being rendered by Contracting Party. Any compensation for Additional Services amounting to five percent (5%) or less of the Contract Sum may be approved by the Contract Officer, or assigned designee. Any greater amount of compensation for Additional Services must be approved by the La Quinta City Council, the City Manager, or Department Director, depending upon City laws, regulations, rules and procedures concerning public contracting. Under no circumstances shall Contracting Party receive compensation for any Additional Services unless prior written approval for the Additional Services is obtained from the Contract Officer, or assigned designee, pursuant to Section 1.7 of this Agreement. 3.PERFORMANCE SCHEDULE. 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. If the Services not completed in accordance with the Schedule of Performance, as set forth in Section 3.2 and “Exhibit C”, it is understood that the City will suffer damage. 3.2 Schedule of Performance. All Services rendered pursuant to this Agreement shall be performed diligently and within the time period established in “Exhibit C” (the “Schedule of Performance”). Extensions to the 94 -5- time period specified in the Schedule of Performance may be approved in writing by the Contract Officer, or assigned designee. 3.3 Force Majeure. The time period specified in the Schedule of Performance for performance of the Services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Contracting Party, including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than City, and unusually severe weather, if Contracting Party shall within ten (10) days of the commencement of such delay notify the Contract Officer, or assigned designee, in writing of the causes of the delay. The Contract Officer, or assigned designee, shall ascertain the facts and the extent of delay, and extend the time for performing the Services for the period of the forced delay when and if in the Contract Officer’s judgment such delay is justified, and the Contract Officer’s determination, or assigned designee, shall be final and conclusive upon the parties to this Agreement. Extensions to time period in the Schedule of Performance which are determined by the Contract Officer, or assigned designee, to be justified pursuant to this Section shall not entitle the Contracting Party to additional compensation in excess of the Contract Sum. 3.4 Term. Unless earlier terminated in accordance with the provisions in Article 8.0 of this Agreement, the term of this agreement shall commence on October 2, 2019, and terminate on June 30, 2020 (“Initial Term”). This Agreement may be extended upon mutual agreement by both parties (“Extended Term”). 4.COORDINATION OF WORK. 4.1 Representative of Contracting Party. The following principals of Contracting Party (“Principals”) are hereby designated as being the principals and representatives of Contracting Party authorized to act in its behalf with respect to the Services specified herein and make all decisions in connection therewith: (a) Name: Jim Cross Tel No. (760)250-2811 E-mail: jim@bestsignsinc.com (b) Name: Jennifer Cross Tel No. (760)320-3042 Email: jennifer@bestsignsinc.com 95 -6- It is expressly understood that the experience, knowledge, capability, and reputation of the foregoing Principals were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing Principals shall be responsible during the term of this Agreement for directing all activities of Contracting Party and devoting sufficient time to personally supervise the Services hereunder. For purposes of this Agreement, the foregoing Principals may not be changed by Contracting Party and no other personnel may be assigned to perform the Services required hereunder without the express written approval of City. 4.2 Contract Officer. The “Contract Officer”, otherwise known as the Bryan McKinney, PE, City Engineer, or assigned designee may be designated in writing by the City Manager of the City. It shall be Contracting Party’s responsibility to assure that the Contract Officer, or assigned designee, is kept informed of the progress of the performance of the Services, and Contracting Party shall refer any decisions, that must be made by City to the Contract Officer, or assigned designee. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer, or assigned designee. The Contract Officer, or assigned designee, shall have authority to sign all documents on behalf of City required hereunder to carry out the terms of this Agreement. 4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability, and reputation of Contracting Party, its principals, and its employees were a substantial inducement for City to enter into this Agreement. Except as set forth in this Agreement, Contracting Party shall not contract or subcontract with any other entity to perform in whole or in part the Services required hereunder without the express written approval of City. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated, or encumbered, voluntarily or by operation of law, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Contracting Party, taking all transfers into account on a cumulative basis. Any attempted or purported assignment or contracting or subcontracting by Contracting Party without City’s express written approval shall be null, void, and of no effect. No approved transfer shall release Contracting Party of any liability hereunder without the express consent of City. 4.4 Independent Contractor. Neither City nor any of its employees shall have any control over the manner, mode, or means by which Contracting Party, its agents, or its employees, perform the Services required herein, except as otherwise set forth herein. City shall have no voice in the selection, 96 -7- discharge, supervision, or control of Contracting Party’s employees, servants, representatives, or agents, or in fixing their number or hours of service. Contracting Party shall perform all Services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Contracting Party shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Contracting Party in its business or otherwise or a joint venture or a member of any joint enterprise with Contracting Party. Contracting Party shall have no power to incur any debt, obligation, or liability on behalf of City. Contracting Party shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. Except for the Contract Sum paid to Contracting Party as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Contracting Party for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Contracting Party for injury or sickness arising out of performing the Services hereunder. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Contracting Party and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits. Contracting Party agrees to pay all required taxes on amounts paid to Contracting Party under this Agreement, and to indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Contracting Party shall fully comply with the workers’ compensation laws regarding Contracting Party and Contracting Party’s employees. Contracting Party further agrees to indemnify and hold City harmless from any failure of Contracting Party to comply with applicable workers’ compensation laws. City shall have the right to offset against the amount of any payment due to Contracting Party under this Agreement any amount due to City from Contracting Party as a result of Contracting Party’s failure to promptly pay to City any reimbursement or indemnification arising under this Section. 4.5 Identity of Persons Performing Work. Contracting Party represents that it employs or will employ at its own expense all personnel required for the satisfactory performance of any and all of the Services set forth herein. Contracting Party represents that the Services required herein will be performed by Contracting Party or under its direct supervision, and 97 -8- that all personnel engaged in such work shall be fully qualified and shall be authorized and permitted under applicable State and local law to perform such tasks and services. 4.6 City Cooperation. City shall provide Contracting Party with any plans, publications, reports, statistics, records, or other data or information pertinent to the Services to be performed hereunder which are reasonably available to Contracting Party only from or through action by City. 5.INSURANCE. 5.1 Insurance. Prior to the beginning of any Services under this Agreement and throughout the duration of the term of this Agreement, Contracting Party shall procure and maintain, at its sole cost and expense, and submit concurrently with its execution of this Agreement, policies of insurance as set forth in “Exhibit E” (the “Insurance Requirements”) which is incorporated herein by this reference and expressly made a part hereof. 5.2 Proof of Insurance. Contracting Party shall provide Certificate of Insurance to Agency along with all required endorsements. Certificate of Insurance and endorsements must be approved by Agency’s Risk Manager prior to commencement of performance. 6.INDEMNIFICATION. 6.1 Indemnification. To the fullest extent permitted by law, Contracting Party shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officers, employees, agents, and volunteers as set forth in “Exhibit F” (“Indemnification”) which is incorporated herein by this reference and expressly made a part hereof. 7.RECORDS AND REPORTS. 7.1 Reports. Contracting Party shall periodically prepare and submit to the Contract Officer, or assigned designee, such reports concerning Contracting Party’s performance of the Services required by this Agreement as the Contract Officer, or assigned designee, shall require. Contracting Party hereby acknowledges that City is greatly concerned about the cost of the Services to be performed pursuant to this Agreement. For this reason, Contracting Party agrees that if Contracting Party becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Services contemplated herein or, if Contracting Party is providing design services, the cost of the project being designed, Contracting Party shall promptly notify the Contract Officer, or assigned designee, of said fact, circumstance, technique, or event and the estimated 98 -9- increased or decreased cost related thereto and, if Contracting Party is providing design services, the estimated increased or decreased cost estimate for the project being designed. 7.2 Records. Contracting Party shall keep, and require any subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports (including but not limited to payroll reports), studies, or other documents relating to the disbursements charged to City and the Services performed hereunder (the “Books and Records”), as shall be necessary to perform the Services required by this Agreement and enable the Contract Officer, or assigned designee, to evaluate the performance of such Services. Any and all such Books and Records shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer, or assigned designee, shall have full and free access to such Books and Records at all times during normal business hours of City, including the right to inspect, copy, audit, and make records and transcripts from such Books and Records. Such Books and Records shall be maintained for a period of three (3) years following completion of the Services hereunder, and City shall have access to such Books and Records in the event any audit is required. In the event of dissolution of Contracting Party’s business, custody of the Books and Records may be given to City, and access shall be provided by Contracting Party’s successor in interest. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds Ten Thousand Dollars ($10,000.00), this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of City, for a period of three (3) years after final payment under this Agreement. 7.3 Ownership of Documents. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents, and other materials plans, drawings, estimates, test data, survey results, models, renderings, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings, digital renderings, or data stored digitally, magnetically, or in any other medium prepared or caused to be prepared by Contracting Party, its employees, subcontractors, and agents in the performance of this Agreement (the “Documents and Materials”) shall be the property of City and shall be delivered to City upon request of the Contract Officer, or assigned designee, or upon the expiration or termination of this Agreement, and Contracting Party shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the Documents and Materials hereunder. Any use, reuse or assignment of such completed Documents and 99 -10- Materials for other projects and/or use of uncompleted documents without specific written authorization by Contracting Party will be at City’s sole risk and without liability to Contracting Party, and Contracting Party’s guarantee and warranties shall not extend to such use, revise, or assignment. Contracting Party may retain copies of such Documents and Materials for its own use. Contracting Party shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any Documents and Materials prepared by them, and in the event Contracting Party fails to secure such assignment, Contracting Party shall indemnify City for all damages resulting therefrom. 7.4 In the event City or any person, firm, or corporation authorized by City reuses said Documents and Materials without written verification or adaptation by Contracting Party for the specific purpose intended and causes to be made or makes any changes or alterations in said Documents and Materials, City hereby releases, discharges, and exonerates Contracting Party from liability resulting from said change. The provisions of this clause shall survive the termination or expiration of this Agreement and shall thereafter remain in full force and effect. 7.5 Licensing of Intellectual Property. This Agreement creates a non- exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, rights of reproduction, and other intellectual property embodied in the Documents and Materials. Contracting Party shall require all subcontractors, if any, to agree in writing that City is granted a non-exclusive and perpetual license for the Documents and Materials the subcontractor prepares under this Agreement. Contracting Party represents and warrants that Contracting Party has the legal right to license any and all of the Documents and Materials. Contracting Party makes no such representation and warranty in regard to the Documents and Materials which were prepared by design professionals other than Contracting Party or provided to Contracting Party by City. City shall not be limited in any way in its use of the Documents and Materials at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk. 7.6 Release of Documents. The Documents and Materials shall not be released publicly without the prior written approval of the Contract Officer, or assigned designee, or as required by law. Contracting Party shall not disclose to any other entity or person any information regarding the activities of City, except as required by law or as authorized by City. 7.7 Confidential or Personal Identifying Information. Contracting Party covenants that all City data, data lists, trade secrets, documents with personal identifying information, documents that are not public records, draft 100 -11- documents, discussion notes, or other information, if any, developed or received by Contracting Party or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Contracting Party to any person or entity without prior written authorization by City or unless required by law. City shall grant authorization for disclosure if required by any lawful administrative or legal proceeding, court order, or similar directive with the force of law. All City data, data lists, trade secrets, documents with personal identifying information, documents that are not public records, draft documents, discussions, or other information shall be returned to City upon the termination or expiration of this Agreement. Contracting Party’s covenant under this section shall survive the termination or expiration of this Agreement. 8.ENFORCEMENT OF AGREEMENT. 8.1 California Law. This Agreement shall be interpreted, construed, and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Contracting Party covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 8.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer, or assigned designee; provided that if the default is an immediate danger to the health, safety, or general welfare, City may take such immediate action as City deems warranted. Compliance with the provisions of this Section shall be a condition precedent to termination of this Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party’s right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City’s right to terminate this Agreement without cause pursuant to this Article 8.0. During the period of time that Contracting Party is in default, City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, City may, in its sole discretion, elect to pay some or all of the outstanding invoices during any period of default. 101 -12- 8.3 Retention of Funds. City may withhold from any monies payable to Contracting Party sufficient funds to compensate City for any losses, costs, liabilities, or damages it reasonably believes were suffered by City due to the default of Contracting Party in the performance of the Services required by this Agreement. 8.4 Waiver. No delay or omission in the exercise of any right or remedy of a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. City’s consent or approval of any act by Contracting Party requiring City’s consent or approval shall not be deemed to waive or render unnecessary City’s consent to or approval of any subsequent act of Contracting Party. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 8.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 8.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, at law or at equity, to cure, correct, or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. 8.7 Termination Prior To Expiration of Term. This Section shall govern any termination of this Agreement, except as specifically provided in the following Section for termination for cause. City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days’ written notice to Contracting Party. Upon receipt of any notice of termination, Contracting Party shall immediately cease all Services hereunder except such as may be specifically approved by the Contract Officer, or assigned designee. Contracting Party shall be entitled to compensation for all Services rendered prior to receipt of the notice of termination and for any Services authorized by the Contract Officer, or assigned designee, thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, or assigned designee, except amounts held as a retention pursuant to this Agreement. 8.8 Termination for Default of Contracting Party. If termination is due to the failure of Contracting Party to fulfill its obligations under this Agreement, Contracting Party shall vacate any City-owned property which Contracting 102 -13- Party is permitted to occupy hereunder and City may, after compliance with the provisions of Section 8.2, take over the Services and prosecute the same to completion by contract or otherwise, and Contracting Party shall be liable to the extent that the total cost for completion of the Services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Contracting Party for the purpose of setoff or partial payment of the amounts owed City. 8.9 Attorneys’ Fees. If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorneys’ fees; provided, however, that the attorneys’ fees awarded pursuant to this Section shall not exceed the hourly rate paid by City for legal services multiplied by the reasonable number of hours spent by the prevailing party in the conduct of the litigation. Attorneys’ fees shall include attorneys’ fees on any appeal, and in addition a party entitled to attorneys’ fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery, and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. The court may set such fees in the same action or in a separate action brought for that purpose. 9.CITY OFFICERS AND EMPLOYEES; NONDISCRIMINATION. 9.1 Non-liability of City Officers and Employees. No officer, official, employee, agent, representative, or volunteer of City shall be personally liable to Contracting Party, or any successor in interest, in the event or any default or breach by City or for any amount which may become due to Contracting Party or to its successor, or for breach of any obligation of the terms of this Agreement. 9.2 Conflict of Interest. Contracting Party covenants that neither it, nor any officer or principal of it, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Contracting Party’s performance of the Services under this Agreement. Contracting Party further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent, or subcontractor without the express written consent of the Contract Officer, or assigned designee. Contracting Party agrees to at all times avoid conflicts of interest or the 103 -14- appearance of any conflicts of interest with the interests of City in the performance of this Agreement. No officer or employee of City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to this Agreement which effects his financial interest or the financial interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. Contracting Party warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement. 9.3 Covenant against Discrimination. Contracting Party covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any impermissible classification including, but not limited to, race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry in the performance of this Agreement. Contracting Party shall take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry. 10.MISCELLANEOUS PROVISIONS. 10.1 Notice. Any notice, demand, request, consent, approval, or communication either party desires or is required to give the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this Section. To City: CITY OF LA QUINTA Attention: Bryan McKinney, PE 78495 Calle Tampico La Quinta, California 92253 To Contracting Party: Best Signs, Inc. Jim Cross 1550 S. Gene Autry Trail Palm Springs, CA 92264 104 -15- 10.2 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. 10.3 Section Headings and Subheadings. The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement. 10.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument 10.5 Integrated Agreement. This Agreement including the exhibits hereto is the entire, complete, and exclusive expression of the understanding of the parties. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements, and understandings, if any, between the parties, and none shall be used to interpret this Agreement. 10.6 Amendment. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by Contracting Party and by the City Council of City. The parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void. 10.7 Severability. In the event that any one or more of the articles, phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable, such invalidity or unenforceability shall not affect any of the remaining articles, phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless. 10.8 Unfair Business Practices Claims. In entering into this Agreement, Contracting Party offers and agrees to assign to City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials related to this Agreement. This assignment shall be made and become effective at the time City renders final payment to Contracting Party without further acknowledgment of the parties. 105 -16- 10.9 No Third-Party Beneficiaries. With the exception of the specific provisions set forth in this Agreement, there are no intended third-party beneficiaries under this Agreement and no such other third parties shall have any rights or obligations hereunder. 10.10 Authority. The persons executing this Agreement on behalf of each of the parties hereto represent and warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors, and assigns of the parties. [SIGNATURES ON FOLLOWING PAGE] 106 -17- IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. CITY OF LA QUINTA, a California Municipal Corporation JON MCMILLEN, City Manager City of La Quinta, California Dated: CONTRACTING PARTY: By: Name: Title: ATTEST: MONIKA RADEVA, City Clerk La Quinta, California By: Name: Title: APPROVED AS TO FORM: WILLIAM H. IHRKE, City Attorney City of La Quinta, California John Cross Vice President Jennifer Cross Administrative Assistant 107 Exhibit A Page 1 of 5 Exhibit A Scope of Services 1.Services to be Provided: o 2 Multi-dealer main monument signs per BSI provided design specifications (Copy Attached) o 5 Individual dealer monument signs per BSI provided design specifications. (Copy Attached) o Prevailing wage labor for the complete installation of the above sign types. o All signs to be installed pursuant to the La Quinta Auto Collection Sign Program, approved by the La Quinta Planning Commission on August 13, 2019 108 109 110 SIGN PROGRAM July 8, 2019 FOR PREPARED BY CITY OF LA QUINTA HERMANN DESIGN GROUP AUTO COLLECTION 111 SCALE 1/128”=1’.0” EXISTING CONDITIONS S H E E T 1 112 AUTO COLLECTION A U T O C O L L E CTI O N LINEAR SCULPTURE MOUNTAIN SCAPE VARYING DEPTHS AND DIMENSION COMBINED WITH CONTRASTING AGED METALS CREATE A DYNAMIC BACKDROP AND CARRIER FOR DEALER BRAND IMAGES - S H E E T 2 (1) SINGLE -SIDED ILLUMINATED PRIMARY MONUMENT1 Vice President 113 SCALE 1”=20’ AUTO COLLECTION A U TO C O L L E C T I O N NIGHT VIEW - INTERNAL LED ILLUMINATION AS WELL AS LANDSCAPE UP LIGHTS TO ACCENTUATE THE BACKDROP DEPTH AND DIMENSION S H E E T 3 14'-6" 38'-4" 14'-6" 36"18"A U T O C O L L E C T IO N A U T O C O L L E C T I O N ELEVATION VIEW ELEVATION AND SITE PLAN VIEW2 114 AUTO COLLECTION S H E E T 4 SCALE 3/16”=1’.0” PLAN VIEW NORTH FACING VIEW EAST FACING SIDE VIEW WEST FACING SIDE VIEW 14'-9" 38'-4" 36'-5" 8'-7" 30" 30" 18" 4" 24" 24" 18" 8'-4" 10'-6" 12'-9" 13'-5" 14'-9" 24" 18"6" 14" 45'-9" 36"18"A U TO C O L L E C T I O N A U TO C O L L E C T I O N (1) SINGLE -SIDED ILLUMINATED MONUMENT/ DIMENSION DETAIL DRAWING ALL ALUMINUM FABRICATED 4" DEEP CONTOUR CABINETS WITH 3/4" THICK CLEAR CAST ACRYLIC PUSH THRU LETTERS. TRANSLUCENT WHITE VINYL APPLIED TO FACES. INTERNALLY ILLUMINATED WITH BRIGHT WHITE LED MODULES. ALL ALUMINUM FABRICATED COLUMN WITH 3/4" THICK CLEAR CAST ACRYLIC PUSH THRU LETTERS. OPAQUE BLACK VINYL APPLIED TO FACES. INTERNALLY ILLUMINATED WITH BRIGHT WHITE LED MODULES. ALL ALUMINUM FABRICATED MONUMENT ID SIGN WITH EDGE LIGHTING TREATMENT. INTERNALLY ILLUMINATED WITH BRIGHT WHITE LED MODULES. PAINTED CORTEN AND GALVANIZED METAL FINISH. 3 B A B C A A A A C C 115 AUTO COLLECTION S H E E T 5 A U T O C O L L E C T I O NA U T O C O L L E C T I O N SCALE 1/2”=1’.0” (1) ILLUMINATED CONTOUR CHANNEL ID CABINET DETAIL DRAWINGS ALL ALUMINUM FABRICATED 4" DEEP CONTOUR CABINETS WITH 3/4" THICK CLEAR CAST ACRYLIC PUSH THRU LETTERS. TRANSLUCENT WHITE VINYL APPLIED TO FACES. ALL ALUMINUM FABRICATED COLUMN WITH 3/4" THICK CLEAR CAST ACRYLIC PUSH THRU LETTERS. OPAQUE BLACK VINYL APPLIED TO FACES. INFERNALLY ILLUMINATED WITH BRIGHT WHITE LED MODULES. 4 A B 18"18" 15½" 14½" 26½" 12½" 14½"14"11¼" 10¼" 22" 9½"10" 7"12"4½" 18" 19' 14' 7'-2" 7'-6½"4" 7'-1½" 7'½" 9'-3½"7’-11" 6'-11½" 6'-6½" 8'-11"91" ¾" NOT TO SCALE TYPICAL ACRYLIC PUSH-THRU SIGN FACE POWER SUPPLY ONONON OFFOFFOFF TYPICAL .050" ALUM ELECTRICAL ENCLOSURE 12 VOLT LED POWER SUPPLY 110 INPUT ROUTED FOR PUSH-THROUGH LETTERS BRIGHT WHITE LED MODULES ATTACHED W/ 3M ADHESIVE TAPE 3/4" CLEAR CAST ACRYLIC PUSH-THROUGH LETTERS SELF ADHERING SIGN VINYL ON FACES SECONDARY POWER CONNECTIONS MADE W/ WIRE NUTS (TYP) .063" ALUMINUM LED SHELF .090" ALUMINUM SIGN FACE 3/16" THICK CLEAR MAKROLON POLYCARBONITE BACKER #10 MOUNTING STUD WELDED WITH HARDWARE CONDUIT, EXISTING PRIMARY POWER BY OTHERS TYPICAL ELECTRICAL 116 AUTO COLLECTION 36" 36" 36" 36" 18" 18" 18" 18" 18" 18" 7' 36" 10'-6" 14'-9"A U T O C O L L E C T I O N TYPICAL FABRICATION AND FOOTING DETAILS TYPICAL INNER SUPPORT PRIMARY SIGN MONUMENT LINEAR STRUCTURE. FRAME FABRICATED FROM 2"X2" AND 1½"X1½ ALUMINUM ANGLE. SECONDARY SIGN MONUMENT LINEAR STRUCTURE. FRAME FABRICATED FROM 2"X2" AND 1½"X1½ ALUMINUM ANGLE. UPPER 6" DIA. X 1/4" WALL STEEL SUPPORT POLE. UPPER 6" DIA. X 1/4" WALL STEEL SUPPORT POLE. CONCRETE FOOTING, PER ENGINEER SPECS BY OTHER. POLE SADDLE SUPPORTS, FABRICATED PER ENGINEER SPECS BY OTHER. MONUMENT FRAMES SKINNED WITH .090" ALUMINUM SHEETING. UPPER POLE GUSSET PLATE 3/8" STEEL WELDED. LOWER POLE GUSSET PLATE 3/8" STEEL WELDED. 2"X2"X1/8" SQUARE TUBE ALUMINUM FRAME. (8) 5/8" DIA. S.S.M.B 3/16" STEEL MOUNTING PLATEUPPER POLE GUSSET PLATE 3/8" STEEL WELDED. 5 A B C D E F G H I J K L A C D F H G H K L I J B E D F G I J K SCALE 1/4”=1’.0” NOT TO SCALE S H E E T 6 1 2 3 4 117 11'-6" 3' 7' SCALE 3/16”=1’.0” AUTO COLLECTION S H E E T 7 (4) DOUBLE-SIDED ILLUMINATED SECONDARY ID MONUMENTS6 LINEAR SCULPTURE DESIGN WITH EDGE LIT FEATURE. INTERNALLY ILLUMINATED LOGO ID CABINETS. 118 3’3' 18" 6" 6" 40" SCALE 1/4”=1’.0” AUTO COLLECTION S H E E T 8 6 22" 22" 11" 11" 7' 5'-8" 18" 12" 11'-8" 11'-8" (4) DOUBLE-SIDED SECONDARY ID MONUMENT DIMENSION DETAILS PLAN VIEW ELEVATION VIEW 4"4" 119 I J 3’3' 40" SCALE 3/8”=1’.0” AUTO COLLECTION S H E E T 9 6 22" 22" 11" 11" 7' 11'-8" (4) DOUBLE-SIDED SECONDARY ID MONUMENT DIMENSION DETAILS F GH A C D B K E L 36" 84"24" 36" 1 2 PRIMARY SIGN MONUMENT LINEAR STRUCTURE. FRAME FABRICATED FROM 2"X2" AND 1½"X1½ ALUMINUM ANGLE. SECONDARY SIGN MONUMENT LINEAR STRUCTURE. FRAME FABRICATED FROM 2"X2" AND 1½"X1½ ALUMINUM ANGLE. UPPER 6" DIA. X 1/4" WALL STEEL SUPPORT POLE. UPPER 6" DIA. X 1/4" WALL STEEL SUPPORT POLE. CONCRETE FOOTING, PER ENGINEER SPECS BY OTHER. POLE SADDLE SUPPORTS, FABRICATED PER ENGINEER SPECS BY OTHER. MONUMENT FRAMES SKINNED WITH .090" ALUMINUM SHEETING. UPPER POLE GUSSET PLATE 3/8" STEEL WELDED. LOWER POLE GUSSET PLATE 3/8" STEEL WELDED. 2"X2"X1/8" SQUARE TUBE ALUMINUM FRAME. (8) 5/8" DIA. S.S.M.B 3/16" STEEL MOUNTING PLATEUPPER POLE GUSSET PLATE 3/8" STEEL WELDED. A B C D E F G H I J K L ONOFFON-OFF switch SLOAN 12 VOLT LED POWER SUPPLY 110 INPUT POWER DISCONNECT J-BOX W/ VOLTAGE RATED SNAP SWITCH DEAD METAL BONDING WIRE AND CONNECTORS BONDING SIGN FACE AND OTHER DEAD METAL TO GROUND 120 VOLT PRIMARY POWER CONNECTION (PROVIDED BY OTHERS) PRIMARY POWER SPLICE CONNECTION J-BOX SECONDARY POWER CONNECTIONS MADE W/ WIRE NUTS (TYP) BRIGHT WHITE LED MODUEL LEXAN SIGN FACE ID SIGN CABINET- .090" ALUMINUM SIGN CABINET ALUMINUM ANGLE REMOVABLE RETAINER NOT TO SCALE TYPICAL ID SIGN CABINET 120 Exhibit A Page 2 of 5 ADDENDUM TO AGREEMENT Re: Scope of Services If the Scope of Services include construction, alteration, demolition, installation, repair, or maintenance affecting real property or structures or improvements of any kind appurtenant to real property, the following apply: 1.Prevailing Wage Compliance. If Contracting Party is a contractor performing public works and maintenance projects, as described in this Section 1.3, Contracting Party shall comply with applicable Federal, State, and local laws. Contracting Party is aware of the requirements of California Labor Code Sections 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Sections 16000, et seq., (collectively, the “Prevailing Wage Laws”), and La Quinta Municipal Code Section 3.12.040, which require the payment of prevailing wage rates and the performance of other requirements on “Public works” and “Maintenance” projects. If the Services are being performed as part of an applicable “Public works” or “Maintenance” project, as defined by the Prevailing Wage Laws, and if construction work over twenty-five thousand dollars ($25,000.00) and/or alterations, demolition, repair or maintenance work over fifteen thousand dollars ($15,000.00) is entered into or extended on or after January 1, 2015 by this Agreement, Contracting Party agrees to fully comply with such Prevailing Wage Laws including, but not limited to, requirements related to the maintenance of payroll records and the employment of apprentices. Pursuant to California Labor Code Section 1725.5, no contractor or subcontractor may be awarded a contract for public work on a “Public works” project unless registered with the California Department of Industrial Relations (“DIR”) at the time the contract is awarded. If the Services are being performed as part of an applicable “Public works” or “Maintenance” project, as defined by the Prevailing Wage Laws, this project is subject to compliance monitoring and enforcement by the DIR. Contracting Party will maintain and will require all subcontractors to maintain valid and current DIR Public Works contractor registration during the term of this Agreement. Contracting Party shall notify City in writing immediately, and in no case more than twenty-four (24) hours, after receiving any information that Contracting Party’s or any of its subcontractor’s DIR registration status has been suspended, revoked, expired, or otherwise changed. It is understood that it is the responsibility of Contracting Party to determine the correct salary scale. Contracting Party shall make copies of the prevailing rates of per diem wages for each craft, classification, or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at Contracting Party’s principal place of business and at the project site, if any. The statutory penalties for failure to pay prevailing wage or to comply with State wage and hour laws will be enforced. Contracting Party must forfeit to City TWENTY- 121 Exhibit A Page 3 of 5 FIVE DOLLARS ($25.00) per day for each worker who works in excess of the minimum working hours when Contracting Party does not pay overtime. In accordance with the provisions of Labor Code Sections 1810 et seq., eight (8)hours is the legal working day. Contracting Party also shall comply with State law requirements to maintain payroll records and shall provide for certified records and inspection of records as required by California Labor Code Section 1770 et seq., including Section 1776. In addition to the other indemnities provided under this Agreement, Contracting Party shall defend (with counsel selected by City), indemnify, and hold City, its elected officials, officers, employees, and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It is agreed by the parties that, in connection with performance of the Services, including, without limitation, any and all “Public works” (as defined by the Prevailing Wage Laws), Contracting Party shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law. Contracting Party acknowledges and agrees that it shall be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with such laws. Contracting Party shall require the same of all subcontractors. 2.Retention. Payments shall be made in accordance with the provisions of Article 2.0 of the Agreement. In accordance with said Sections, City shall pay Contracting Party a sum based upon ninety-five percent (95%) of the Contract Sum apportionment of the labor and materials incorporated into the Services under this Agreement during the month covered by said invoice. The remaining five percent (5%) thereof shall be retained as performance security to be paid to Contracting Party within sixty (60) days after final acceptance of the Services by the City Council of City, after Contracting Party has furnished City with a full release of all undisputed payments under this Agreement, if required by City. In the event there are any claims specifically excluded by Contracting Party from the operation of the release, City may retain proceeds (per Public Contract Code § 7107) of up to one hundred fifty percent (150%) of the amount in dispute. City’s failure to deduct or withhold shall not affect Contracting Party’s obligations under the Agreement. 3.Utility Relocation. City is responsible for removal, relocation, or protection of existing main or trunk-line utilities to the extent such utilities were not identified in the invitation for bids or specifications. City shall reimburse Contracting Party for any costs incurred in locating, repairing damage not caused by Contracting Party, and removing or relocating such unidentified utility facilities. Contracting Party shall not be assessed liquidated 122 Exhibit A Page 4 of 5 damages for delay arising from the removal or relocation of such unidentified utility facilities. 4.Trenches or Excavations. Pursuant to California Public Contract Code Section 7104, in the event the work included in this Agreement requires excavations more than four (4) feet in depth, the following shall apply: (a)Contracting Party shall promptly, and before the following conditions are disturbed, notify City, in writing, of any: (1) material that Contracting Party believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; (2) subsurface or latent physical conditions at the site different from those indicated by information about the site made available to bidders prior to the deadline for submitting bids; or (3) unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the Agreement. (b)City shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in Contracting Party’s cost of, or the time required for, performance of any part of the work shall issue a change order per Section 1.8 of the Agreement. (c)in the event that a dispute arises between City and Contracting Party whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contracting Party’s cost of, or time required for, performance of any part of the work, Contracting Party shall not be excused from any scheduled completion date provided for by this Agreement, but shall proceed with all work to be performed under this Agreement. Contracting Party shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the contracting Parties. 5.Safety. Contracting Party shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out the Services, Contracting Party shall at all times be in compliance with all applicable local, state, and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, 123 Exhibit A Page 5 of 5 bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C)adequate facilities for the proper inspection and maintenance of all safety measures. 6.Liquidated Damages. Since the determination of actual damages for any delay in performance of the Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, Contracting Party shall be liable for and shall pay to City the sum of One Thousand dollars ($1,000.00) as liquidated damages for each working day of delay in the performance of any of the Services required hereunder, as specified in the Schedule of Performance. In addition, liquidated damages may be assessed for failure to comply with the emergency call out requirements, if any, described in the Scope of Services. City may withhold from any moneys payable on account of the Services performed by Contracting Party any accrued liquidated damages. 124 Exhibit B Page 1 of 2 Exhibit B Schedule of Compensation With the exception of compensation for Additional Services, provided for in Section 2.3 of this Agreement, the maximum total compensation to be paid to Contracting Party under this Agreement is not to exceed Two Hundred Ninety-Nine Thousand, Seven Hundred Fifteen Dollars and Twenty Four Cents ($299,715.24) (“Contract Sum”). The Contract Sum shall be paid to Contracting Party in in an amount identified in Contracting Party’s schedule of compensation attached hereto for the work tasks performed and properly invoiced by Contracting Party in conformance with Section 2.2 of this Agreement. 125 BEST SIGNS, INCORPORATED 1550 S. Gene Autry Trail Palm Springs, CA 92264 Phone: (760) 320-3042 FAX: (760) 320-2090 PROPOSAL PROPOSAL SUBMITTED TO PHONE DATE CITY OF LA QUINTA (760) 777-9131 09/23/2019 ADDRESS JOB NAME 78495 Calle Tampico LQ Auto Collection - sign program CITY, STATE, ZIP JOB#LOCATION La Quinta, CA 92253-2071 1811-55707-PS HWY 111, La Quinta, Ca 92253 We hereby submit specifications and estimates Quantity Description Price Extended Price Installation 2 Qty. (2) Multi-dealer main monument signs per BSI provided $68,556.00 $137,112.00 design specifications. 5 Qty. (5) Individual dealer monument signs per BSI provided $17,145.00 $85,725.00 design specifications. 1 Prevailing wage labor for the complete installation of the $56,380.00 above sign types. 1 City of La Quinta Permit Fees to be added to final invoice at cost. 1 Insurance liability increase from 2M to 5M.$1,000.00. Subtotal $222,837.00 CA Sales $19,498.24 Installation $56,380.00 Insurance $ 1,000.00 Total $299,715.24 We propose hereby to furnish material and labor – complete accordance with specifications, for the sum of: Two Hundred Ninety Nine Thousand Seven Hundred Fifteen and 24/100 Dollar $299,715.24 Terms: 30% DEPOSIT REQUIRED, 40% PROGRESS PAYMENT, 30% BALANCE DUE UPON COMPLETION. NOTICE TO OWNERS Under the Mechanics' Lien Law, any contractor, subcontractor, supplier, man or other person who helps to improve your property and is not paid for his labor, services or material, has a right to enforce his claim against your property. Under the law, you may protect yourself against such claims by filing, before commencing such work of improvement, an original contract for the work of improvement of a modification thereof, in the office of the county recorder of the county where the property is situated and requiring that a contractor's payment bond be recorded in such office. Said bond shall be in an amount not less than fifty percent (50%) of the contract price and shall, in addition to any conditions for the performance of the contract, be conditioned for the payment in full of the claims of all persons furnishing labor, services, equipment or materials for the work described in said contract. In the event litigation is instituated to collect any sums due and owing Best Signs, Inc., there shall be added such additional amounts as court costs and reasonable attorney's fees. Signature or payment of deposit constitute acceptance of this agreement. Authorized Signature Jim Cross Note: This proposal may be withdrawn by us if not accepted within 30 days. Acceptance of Proposal – The above Signature Prices, specifications and conditions are satisfactory and Are hereby accepted. You are authorized to do the work Signature as specified. Payment will be made as outlined above. Date of Acceptance: Exhibit B Page 2 of 2 126 Exhibit C Schedule of Performance Contracting Party shall complete services identified in the Scope of Services, Exhibit A of this Agreement per the City’s request by or before June 30, 2020. Exhibit C Page 1 of 1 127 Exhibit D Page 1 of 1 Exhibit D Special Requirements Contracting Party shall bear all risk of loss from damage, theft, or vandalism of the signs to be provided and installed pursuant to the Contract (the “Signs”) until such time as Contracting Party has completed installation of the Signs, and all work comprising the Scope of Services in Exhibit A, as evidenced by City’s final payment to Contracting Party of all sums owed to Contracting Party, as set forth in Exhibit C. 128 Exhibit E Page 1 of 6 Exhibit E Insurance Requirements E.1 Insurance. Prior to the beginning of and throughout the duration of this Agreement, the following policies shall be maintained and kept in full force and effect providing insurance with minimum limits as indicated below and issued by insurers with A.M. Best ratings of no less than A-VI: Commercial General Liability (at least as broad as ISO CG 0001) $5,000,000 (per occurrence) $5,000,000 (general aggregate) Must include the following endorsements: General Liability Additional Insured General Liability Primary and Non-contributory Commercial Auto Liability (at least as broad as ISO CA 0001) $1,000,000 (per accident) Personal Auto Declaration Page if applicable Errors and Omissions Liability $1,000,000 (per claim and aggregate) Workers’ Compensation (per statutory requirements) Must include the following endorsements: Workers Compensation with Waiver of Subrogation Workers Compensation Declaration of Sole Proprietor if applicable Contracting Party shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, Commercial General Liability insurance against all claims for injuries against persons or damages to property resulting from Contracting Party’s acts or omissions rising out of or related to Contracting Party’s performance under this Agreement. The insurance policy shall contain a severability of interest clause providing that the coverage shall be primary for losses arising out of Contracting Party’s performance hereunder and neither City nor its insurers shall be required to contribute to any such loss. An endorsement evidencing the foregoing and naming the City and its officers and employees as additional insured (on the Commercial General Liability policy only) must be submitted concurrently with the execution of this Agreement and approved by City prior to commencement of the services hereunder. Contracting Party shall carry automobile liability insurance of $5,000,000 per accident against all claims for injuries against persons or 129 Exhibit E Page 2 of 6 damages to property arising out of the use of any automobile by Contracting Party, its officers, any person directly or indirectly employed by Contracting Party, any subcontractor or agent, or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Contracting Party’s performance under this Agreement. If Contracting Party or Contracting Party’s employees will use personal autos in any way on this project, Contracting Party shall provide evidence of personal auto liability coverage for each such person. The term “automobile” includes, but is not limited to, a land motor vehicle, trailer or semi-trailer designed for travel on public roads. The automobile insurance policy shall contain a severability of interest clause providing that coverage shall be primary for losses arising out of Contracting Party’s performance hereunder and neither City nor its insurers shall be required to contribute to such loss. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Contracting Party and “Covered Professional Services” as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer’s duty to defend. The policy retroactive date shall be on or before the effective date of this agreement. Contracting Party shall carry Workers’ Compensation Insurance in accordance with State Worker’s Compensation laws with employer’s liability limits no less than $1,000,000 per accident or disease. If coverage is maintained on a claims-made basis, Contracting Party shall maintain such coverage for an additional period of three (3) years following termination of the contract. Contracting Party shall provide written notice to City within ten (10)working days if: (1) any of the required insurance policies is terminated; (2)the limits of any of the required polices are reduced; or (3) the deductible or self-insured retention is increased. In the event any of said policies of insurance are cancelled, Contracting Party shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Exhibit to the Contract Officer. The procuring of such insurance or the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Contracting Party’s obligation to indemnify City, its officers, employees, contractors, subcontractors, or agents. E.2 Remedies. In addition to any other remedies City may have if Contracting Party fails to provide or maintain any insurance policies or policy 130 Exhibit E Page 3 of 6 endorsements to the extent and within the time herein required, City may, at its sole option: a.Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. b.Order Contracting Party to stop work under this Agreement and/or withhold any payment(s) which become due to Contracting Party hereunder until Contracting Party demonstrates compliance with the requirements hereof. c.Terminate this Agreement. Exercise of any of the above remedies, however, is an alternative to any other remedies City may have. The above remedies are not the exclusive remedies for Contracting Party’s failure to maintain or secure appropriate policies or endorsements. Nothing herein contained shall be construed as limiting in any way the extent to which Contracting Party may be held responsible for payments of damages to persons or property resulting from Contracting Party’s or its subcontractors’ performance of work under this Agreement. E.3 General Conditions Pertaining to Provisions of Insurance Coverage by Contracting Party. Contracting Party and City agree to the following with respect to insurance provided by Contracting Party: 1.Contracting Party agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials, employees, and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Contracting Party also agrees to require all contractors, and subcontractors to do likewise. 2.No liability insurance coverage provided to comply with this Agreement shall prohibit Contracting Party, or Contracting Party’s employees, or agents, from waiving the right of subrogation prior to a loss. Contracting Party agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise. 3.All insurance coverage and limits provided by Contracting Party and available or applicable to this Agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to City or its operations limits the application of such insurance coverage. 131 Exhibit E Page 4 of 6 4.None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 5.No liability policy shall contain any provision or definition that would serve to eliminate so-called “third party action over” claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor. 6.All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Contracting Party shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City’s protection without City’s prior written consent. 7.Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all the coverages required and an additional insured endorsement to Contracting Party’s general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Contracting Party or deducted from sums due Contracting Party, at City option. 8.It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Contracting Party or any subcontractor, is intended to apply first and on a primary, non-contributing basis in relation to any other insurance or self-insurance available to City. 9.Contracting Party agrees to ensure that subcontractors, and any other party involved with the project that is brought onto or involved in the project by Contracting Party, provide the same minimum insurance coverage required of Contracting Party. Contracting Party agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contracting Party agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review. 10.Contracting Party agrees not to self-insure or to use any self- insured retentions or deductibles on any portion of the insurance required herein (with the exception of professional liability coverage, if required) and 132 Exhibit E Page 5 of 6 further agrees that it will not allow any contractor, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self-insure its obligations to City. If Contracting Party’s existing coverage includes a deductible or self-insured retention, the deductible or self-insured retention must be declared to the City. At that time the City shall review options with the Contracting Party, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions. 11.The City reserves the right at any time during the term of this Agreement to change the amounts and types of insurance required by giving the Contracting Party ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Contracting Party, the City will negotiate additional compensation proportional to the increased benefit to City. 12.For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 13.Contracting Party acknowledges and agrees that any actual or alleged failure on the part of City to inform Contracting Party of non- compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard. 14.Contracting Party will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect. 15.Contracting Party shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Contracting Party’s insurance agent to this effect is acceptable. A certificate of insurance and an additional insured endorsement is required in these specifications applicable to the renewing or new coverage must be provided to City within five (5) days of the expiration of coverages. 133 Exhibit E Page 6 of 6 16.The provisions of any workers’ compensation or similar act will not limit the obligations of Contracting Party under this agreement. Contracting Party expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials, and agents. 17.Requirements of specific coverage features, or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be limiting or all-inclusive. 18.These insurance requirements are intended to be separate and distinct from any other provision in this Agreement and are intended by the parties here to be interpreted as such. 19.The requirements in this Exhibit supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Exhibit. 20.Contracting Party agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Contracting Party for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto. 21.Contracting Party agrees to provide immediate notice to City of any claim or loss against Contracting Party arising out of the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. 134 Exhibit F Page 1 of 3 Exhibit F Indemnification F.1 Indemnity for the Benefit of City. a.Indemnification for Professional Liability. When the law establishes a professional standard of care for Contracting Party’s Services, to the fullest extent permitted by law, Contracting Party shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officials, employees, and agents (“Indemnified Parties”) from and against any and all claims, losses, liabilities of every kind, nature, and description, damages, injury (including, without limitation, injury to or death of an employee of Contracting Party or of any subcontractor), costs and expenses of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation, to the extent same are caused in whole or in part by any negligent or wrongful act, error or omission of Contracting Party, its officers, agents, employees or subcontractors (or any entity or individual that Contracting Party shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Contracting Party shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A without the written consent of the Contracting Party. b.Indemnification for Other Than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Contracting Party shall indemnify, defend (with counsel selected by City), and hold harmless the Indemnified Parties from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses) incurred in connection therewith and costs of investigation, where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Contracting Party or by any individual or entity for which Contracting Party is legally liable, including but not limited to officers, agents, employees, or subcontractors of Contracting Party. c.Indemnity Provisions for Contracts Related to Construction (Limitation on Indemnity). Without affecting the rights of City under any 135 Exhibit F Page 2 of 3 provision of this agreement, Contracting Party shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City’s active negligence accounts for only a percentage of the liability involved, the obligation of Contracting Party will be for that entire portion or percentage of liability not attributable to the active negligence of City. d.Indemnification Provision for Design Professionals. 1.Applicability of this Section F.1(d). Notwithstanding Section F.1(a) hereinabove, the following indemnification provision shall apply to a Contracting Party who constitutes a “design professional” as the term is defined in paragraph 3 below. 2.Scope of Indemnification. When the law establishes a professional standard of care for Contracting Party’s Services, to the fullest extent permitted by law, Contracting Party shall indemnify and hold harmless City and any and all of its officials, employees, and agents (“Indemnified Parties”) from and against any and all losses, liabilities of every kind, nature, and description, damages, injury (including, without limitation, injury to or death of an employee of Contracting Party or of any subcontractor), costs and expenses, including, without limitation, incidental and consequential damages, court costs, reimbursement of attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation, to the extent same are caused by any negligent or wrongful act, error or omission of Contracting Party, its officers, agents, employees or subcontractors (or any entity or individual that Contracting Party shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Contracting Party shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A without the written consent of the Contracting Party. 3.Design Professional Defined. As used in this Section F.1(d), the term “design professional” shall be limited to licensed architects, registered professional engineers, licensed professional land surveyors and landscape architects, all as defined under current law, and as may be amended from time to time by Civil Code § 2782.8. F.2 Obligation to Secure Indemnification Provisions. Contracting Party agrees to obtain executed indemnity agreements with provisions 136 Exhibit F Page 3 of 3 identical to those set forth herein this Exhibit F, as applicable to the Contracting Party, from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Contracting Party in the performance of this Agreement. In the event Contracting Party fails to obtain such indemnity obligations from others as required herein, Contracting Party agrees to be fully responsible according to the terms of this Exhibit. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth in this Agreement are binding on the successors, assigns or heirs of Contracting Party and shall survive the termination of this Agreement. 137 138 City of La Quinta CITY COUNCIL MEETING: October 1, 2019 STAFF REPORT AGENDA TITLE: APPROVE INFORMATION TECHNOLOGY EQUIPMENT PURCHASES WITH CDWG, NEWEGG, AND DELL RECOMMENDATION Approve information technology equipment purchases for fiscal year 2019/20 wi th CDWG, Newegg, and Dell . EXECUTIVE SUMMARY •The City entered into a three-year contract service s agreement with Acorn Technology on July 2, 2019. •The evaluation and recommendation of equipment purchases are with in Acorn’s scope of services . •Ea ch vendor would be approved for a not to exceed $200,000 per year for a three -year term, which provides flexibility to use any of the vendors depending on purchas ing needs. FISCAL IMPACT These combined contracts could cost up to $200,000 annual ly, or a total of $600,000 during the three -year term. Funds are available in the Informat i on Technology Fund. The total amount budgeted for 2019/20 is $242,000 for machinery, equipment and other technical expenses ; Staff cannot exceed the $200,000 budge t without Council approval . BACKGROUND/ANALYSIS Acorn was selected as the City’s Information technology (IT) contract services provider on July 2, 2019. The contract includes the ability for Acorn to seek products and services which meet the City’s ne e ds. In order t o f ully exercise t his provision of the cont ract, staff seeks the authority to appropriate $200,000 between three vendors (CDWG, Newegg, and Dell ) for a to tal of $600,000 during the three-year term. Vendors may be added or removed with Co unci l approval . As part of their contract services, Acorn conducts me etings with IT management, department heads, and City management to ensure current issues, pro jects, needs, and concerns are addre ssed. Based on the information gathered, Acorn will make recommendations wi th a budget and timeline t o improve functionality and implement best practices. Subject to City approval , budget and scheduling, CONSENT CALENDAR ITEM NO. 7 139 Acorn will solicit formal bid s from three approved vendors and provide a final recommendation for staff’s approval. The three vendors selected offer certified government discounts and provide quality products . Acorn shall seek the lowest priced product or service that best suits the City’s specific need. Sole source purchases shall be limited but may include ensuri ng a cohe sive product among a business unit, res trictions or requirements to have a certain product which operates with a current operating system, or using a recognized brand. Acorn shall follow all City Purchasing Policy requirements and obtain t he full approval from the appropriate City staff before initia ting a purchase with any vendor. Products shall not be marked up by Acorn and vendors shall invoice the City directly for products purchased. Equipment purchases i nclude but are not limited t o computers, servers, network swi tches , phones, routers, moni tors, keyboards, storage devices, and other esse ntial products to i mplement technological needs. The contract authority would allow s taff to utilize any of the approved vendors for t he full “not to exceed” budge t of $200,000; invoices would be tracked to ensure that the $200,000 annual budget for these services is not exceeded. Staff requests this flexibility to select the appropri ate vendor that can deliver specific, timely, cos t ef fective products as needed. ALTERNATIVES Council could elect not to approve the purchases of IT equipment through these vendors . Prepared by: Angela Ferreira , Management Analyst Approved by: Gil bert Villalpando, Assistant to the City Manager 140 City of La Quinta CITY COUNCIL MEETING : October 1, 2019 STAFF REPORT AGENDA TITLE: ADOPT RESOLUTION TO APPROVE AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS BETWEEN THE CITY OF LA QUINTA AND MICHAEL P. SHEPPARD AND KAREN M. SHEPPARD DECLARATION OF TRUST FOR ONE VACANT PARCEL LOCATED IN THE DESERT CLUB ESTATES BEARING ASSESSOR’S P ARCEL NUMBER 770-174-001 RECOMMENDATION Adopt a resolution to approve an Agreement for Purchase and Sale and Escrow Instructions between the City of La Quinta and Michael P. Sheppard and Karen M. Sheppard Declaration of Trust for one vacant parcel located in the Desert Club Estates bearing Assessor’s Parcel Number 770-174-001; and authorize the City Manager to make mino r revisions and additions that do not substantively change the business terms and execute the agreement. EXECUTIVE SUMMARY •The City of La Quinta (Seller) proposes to dispose of one (1) vacant parcel approximately 11,918 square feet in size and located in the Desert Club Estates Neighborhood (Attachment 1). The price of the land is consistent with market rates and confirmed by a local real property appraiser. •The Michael P. Sheppard and Karen M. Sheppard Declaration of Trust (Buyer) desire to acquire the subject property to combine with their private residence to preserve the mountain views. •The sale of the subject parcel would place the propert y back on the tax rolls and generate additional property tax revenue for the City. FISCAL IMPACT The proceeds of $135,000, less escrow fees, would be deposited into the City’s General Fund (101-0000-45000), Sale of Other Assets. BACKGROUND/ANALYSIS In Ma y of 2019, the Buyer approached the City offering to acquire the vacant parcel, Assessor’s Parcel Number 770-174-001 (Property), that’s adjacent to their property located on Calle Paloma in the Desert Club Estates. CONSENT CALENDAR ITEM NO. 8 141 The Buyer proposes to keep the Property as -is in order to preserve the mountain views from the private residence and agrees to keep the lot maintained to code standards until such time that they are ready to construct a fence around the Property. The Buyer has agreed to the market value purchase price of $135,000 and a 30-day escrow. The proceeds from the disposition of the Property will go into the Cit y’s General Fund. ALTERNATIVES: Council may elect not to approve the purchase and sale a greement. Pre pared by: Angela Ferreira , Management Analyst Approved by: Jon McMillen, City Manager Attachments: 1. Property Map 2.Agreement for Purchase and Sale and Escrow Instructions 142 RESOLUTION NO. 2019 - xxx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING AN AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS BETWEEN THE CITY OF LA QUINTA AND MICHAEL P. SHEPPARD AND KAREN M. SHEPPARD DECLARATION OF TRUST FOR CERTAIN VACANT PROPERTY IDENTIFIED AS ASSESSOR’S PARCEL NUMBER (APN) 777- 174-001 WHEREAS, on October 21, 1991, the City Council adopted Resolution No. 1995-075, approving the acquisition of certain real property describe as Lot 190, Desert Club Tract Unit No. 5, APN 769-041-001 (A11)), from Mr. and Mrs. Irwin, ad Mr. Bateman, approximately 11,000 square feet, for a total cost of $60,000; and WHEREAS, on December 3, 1991, the City of La Quinta (the “City”), a California municipal corporation, took ownership of the property and recorded DOC # 418555 with the County of Riverside; and WHEREAS, approximately 1,000 square feet of the acquired land was used to facilitate the construction of a frontage road parallel to Washington Street, between Avenida La Fonda and Avenida Nuestra, named Calle Tamazula; and WHEREAS, Michael P. Sheppard and Karen M. Sheppard Declaration of Trust (“Buyer”) intend to purchase a vacant parcel identified as APN 777-174- 001 (“Property”), located at the corner of Avenida La Fonda and Calle Tamazula, and will maintain the Property in it’s “As-is” condition to preserve the mountain views from their adjacent residence, and agree to maintain the Property to City Municipal Code standards; and WHEREAS, the City wishes to sell the Property to the Buyer; and WHEREAS, there is an appraisal of the current fair market value of comparable properties indicating that the negotiated purchase price reflects the current fair market value thereof; and WHEREAS, the City now desires to authorize the City Manager to authorize disposition of the Property for $135,000; and 143 Resolution No. 2019 - xxx La Fonda/Calle Tamazula - Agreement for Purchase and Sale and Escrow Instructions – Sheppard Trust Adopted: October 1, 2019 Page 2 of 3 WHEREAS, the purchase and sale of the Property is subject to a Purchase and Sale Agreement, attached to the staff report for this Resolution, and on file with the City Clerk’s Office, and incorporated herein by reference; and WHEREAS, this Resolution has been reviewed with respect to applicability of the California Environmental Quality Act (“CEQA”), the State CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000 et seq., hereafter the “State CEQA Guidelines”), and the City’s environmental guidelines; and WHEREAS, pursuant to Section 15301 of the State CEQA Guidelines, the transfer of the Property is exempt from environmental review under CEQA because the transfer will result in a continuation of the existing use for development of single-family homes and is therefore exempt from environmental review; and WHEREAS, all of the prerequisites with respect to the approval of this Resolution have been met. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, as follows: SECTION 1. The foregoing recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City hereby approves the Purchase and Sale Agreement, attached to the staff report for this Resolution and on file with the City Clerk’s Office. The City consents to the City Manager and City Legal Counsel making any final modifications to the Agreement that are consistent with the substantive terms of the Agreement approved hereby, and to thereafter sign the Agreement and transfer the property pursuant to a Grant Deed on behalf of the City. SECTION 3. The City Manager is authorized to effectuate the conveyances described in Section 2, at such time as the conveyances is effectuated, and to take such other and further actions, and execute such other and further documents, as are necessary and proper in order to implement this Resolution on behalf of the City. SECTION 4. The City Clerk shall certify to the adoption of this Resolution. 144 Resolution No. 2019 - xxx La Fonda/Calle Tamazula - Agreement for Purchase and Sale and Escrow Instructions – Sheppard Trust Adopted: October 1, 2019 Page 3 of 3 PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held this 1st day of October, 2019, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ___________________________ LINDA EVANS, Mayor City of La Quinta, California ATTEST: ________________________________ MONIKA RADEVA, City Clerk City of La Quinta, California (CITY SEAL) APPROVED AS TO FORM: ________________________________ WILLIAM H. IHRKE, City Attorney City of La Quinta, California 145 146 APN 770-174-001 11,920 SQ.FT Appraised Value $135,000 ATTACHMENT 1 ATTACHMENT 1147 148 DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIP (Selling Firm to Buyer) (As required by the Civil Code) (C.A.R. Form AD, Revised 12/14) (If checked) This form is being provided in connection with a transaction for a leasehold interest exceeding one year as per Civil Code section 2079.13(k) and (m). When you enter into a discussion with a real estate agent regarding a real estate transaction, you should from the outset understand what type of agency relationship or representation you wish to have with the agent in the transaction. SELLER'S AGENT A Seller's agent under a listing agreement with the Seller acts as the agent for the Seller only. A Seller's agent or a subagent of that agent has the following affirmative obligations: To the Seller: A Fiduciary duty of utmost care, integrity, honesty and loyalty in dealings with the Seller. To the Buyer and the Seller: (a)Diligent exercise of reasonable skill and care in performance of the agent's duties. (b)A duty of honest and fair dealing and good faith. (c)A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties. An agent is not obligated to reveal to either party any confidential information obtained from the other party that does not involve the affirmative duties set forth above. BUYER'S AGENT A selling agent can, with a Buyer's consent, agree to act as agent for the Buyer only. In these situations, the agent is not the Seller's agent, even if by agreement the agent may receive compensation for services rendered, either in full or in part from the Seller. An agent acting only for a Buyer has the following affirmative obligations: To the Buyer: A fiduciary duty of utmost care, integrity, honesty and loyalty in dealings with the Buyer. To the Buyer and the Seller: (a)Diligent exercise of reasonable skill and care in performance of the agent's duties. (b)A duty of honest and fair dealing and good faith. (c)A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties. An agent is not obligated to reveal to either party any confidential information obtained from the other party that does not involve the affirmative duties set forth above. AGENT REPRESENTING BOTH SELLER AND BUYER A real estate agent, either acting directly or through one or more associate licensees, can legally be the agent of both the Seller and the Buyer in a transaction, but only with the knowledge and consent of both the Seller and the Buyer. In a dual agency situation, the agent has the following affirmative obligations to both the Seller and the Buyer: (a)A fiduciary duty of utmost care, integrity, honesty and loyalty in the dealings with either the Seller or the Buyer. (b)Other duties to the Seller and the Buyer as stated above in their respective sections. In representing both Seller and Buyer, the agent may not, without the express permission of the respective party, disclose to the other party that the Seller will accept a price less than the listing price or that the Buyer will pay a price greater than the price offered. The above duties of the agent in a real estate transaction do not relieve a Seller or Buyer from the responsibility to protect his or her own interests. You should carefully read all agreements to assure that they adequately express your understanding of the transaction. A real estate agent is a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional. Throughout your real property transaction you may receive more than one disclosure form, depending upon the number of agents assisting in the transaction. The law requires each agent with whom you have more than a casual relationship to present you with this disclosure form. You should read its contents each time it is presented to you, considering the relationship between you and the real estate agent in your specific transaction. This disclosure form includes the provisions of Sections 2079.13 to 2079.24, inclusive, of the Civil Code set forth on page 2.Read it carefully. I/WE ACKNOWLEDGE RECEIPT OF A COPY OF THIS DISCLOSURE AND THE PORTIONS OF THE CIVIL CODE PRINTED ON THE BACK (OR A SEPARATE PAGE). Buyer Seller Landlord Tenant Date Buyer Seller Landlord Tenant Date Agent BRE Lic. # Real Estate Broker (Firm) By BRE Lic. # Date (Salesperson or Broker-Associate) Agency Disclosure Compliance (Civil Code §2079.14): ●When the listing brokerage company also represents Buyer/Tenant: The Listing Agent shall have one AD form signed by Seller/Landlord and a different AD form signed by Buyer/Tenant. ●When Seller/Landlord and Buyer/Tenant are represented by different brokerage companies: (i) the Listing Agent shall have one AD form signed by Seller/Landlord and (ii) the Buyer's/Tenant's Agent shall have one AD form signed by Buyer/Tenant and either that same or a different AD form presented to Seller/Landlord for signature prior to presentation of the offer. If the same form is used, Seller may sign here: Date Seller/Landlord Date The copyright laws of the United States (Title 17 U.S. Code) forbid the unauthorized reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. Copyright © 1991-2010, CALIFORNIA ASSOCIATION OF REALTORS®, INC. Reviewed by Date ALL RIGHTS RESERVED. AD REVISED 12/14 (PAGE 1 OF 2) DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIP (AD PAGE 1 OF 2) Phone: Fax: Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com X Michael P. Sheppard and Karen M. Sheppard Declaration of Trust Seller/Landlord City of La Quinta zipform 611 Anton Blvd. , Suite 1400 Costa Mesa, CA 92626 714 641-5100 714 546-9035 78150 Avenida Rutan Tucker 8/5/2019 ATTACHMENT 2 149 CIVIL CODE SECTIONS 2079.24 (2079.16 APPEARS ON THE FRONT) 2079.13 As used in Sections 2079.14 to 2079.24, inclusive, the following terms have the following meanings: (a) “Agent” means a person acting under provisions of Title 9 (commencing with Section 2295) in a real property transaction, and includes a person who is licensed as a real estate broker under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code, and under whose license a listing is executed or an offer to purchase is obtained. (b) “Associate licensee” means a person who is licensed as a real estate broker or salesperson under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code and who is either licensed under a broker or has entered into a written contract with a broker to act as the broker's agent in connection with acts requiring a real estate license and to function under the broker's supervision in the capacity of an associate licensee. The agent in the real property transaction bears responsibility for his or her associate licensees who perform as agents of the agent. When an associate licensee owes a duty to any principal, or to any buyer or seller who is not a principal, in a real property transaction, that duty is equivalent to the duty owed to that party by the broker for whom the associate licensee functions. (c) “Buyer” means a transferee in a real property transaction, and includes a person who executes an offer to purchase real property from a seller through an agent, or who seeks the services of an agent in more than a casual, transitory, or preliminary manner, with the object of entering into a real property transaction. “Buyer” includes vendee or lessee. (d) “Commercial real property” means all real property in the state, except single-family residential real property, dwelling units made subject to Chapter 2 (commencing with Section 1940) of Title 5, mobilehomes, as defined in Section 798.3, or recreational vehicles, as defined in Section 799.29. (e) “Dual agent” means an agent acting, either directly or through an associate licensee, as agent for both the seller and the buyer in a real property transaction. (f) “Listing agreement” means a contract between an owner of real property and an agent, by which the agent has been authorized to sell the real property or to find or obtain a buyer. (g) “Listing agent” means a person who has obtained a listing of real property to act as an agent for compensation. (h) “Listing price” is the amount expressed in dollars specified in the listing for which the seller is willing to sell the real property through the listing agent. (i) “Offering price” is the amount expressed in dollars specified in an offer to purchase for which the buyer is willing to buy the real property. (j) “Offer to purchase” means a written contract executed by a buyer acting through a selling agent that becomes the contract for the sale of the real property upon acceptance by the seller. (k) “Real property” means any estate specified by subdivision (1) or (2) of Section 761 in property that constitutes or is improved with one to four dwelling units, any commercial real property, any leasehold in these types of property exceeding one year's duration, and mobilehomes, when offered for sale or sold through an agent pursuant to the authority contained in Section 10131.6 of the Business and Professions Code. (l) “Real property transaction” means a transaction for the sale of real property in which an agent is employed by one or more of the principals to act in that transaction, and includes a listing or an offer to purchase. (m) “Sell,” “sale,” or “sold” refers to a transaction for the transfer of real property from the seller to the buyer, and includes exchanges of real property between the seller and buyer, transactions for the creation of a real property sales contract within the meaning of Section 2985, and transactions for the creation of a leasehold exceeding one year's duration. (n) “Seller” means the transferor in a real property transaction, and includes an owner who lists real property with an agent, whether or not a transfer results, or who receives an offer to purchase real property of which he or she is the owner from an agent on behalf of another. “Seller” includes both a vendor and a lessor. (o) “Selling agent” means a listing agent who acts alone, or an agent who acts in cooperation with a listing agent, and who sells or finds and obtains a buyer for the real property, or an agent who locates property for a buyer or who finds a buyer for a property for which no listing exists and presents an offer to purchase to the seller. (p) “Subagent” means a person to whom an agent delegates agency powers as provided in Article 5 (commencing with Section 2349) of Chapter 1 of Title 9. However, “subagent” does not include an associate licensee who is acting under the supervision of an agent in a real property transaction. 2079.14 Listing agents and selling agents shall provide the seller and buyer in a real property transaction with a copy of the disclosure form specified in Section 2079.16, and, except as provided in subdivision (c), shall obtain a signed acknowledgement of receipt from that seller or buyer, except as provided in this section or Section 2079.15, as follows: (a) The listing agent, if any, shall provide the disclosure form to the seller prior to entering into the listing agreement. (b) The selling agent shall provide the disclosure form to the seller as soon as practicable prior to presenting the seller with an offer to purchase, unless the selling agent previously provided the seller with a copy of the disclosure form pursuant to subdivision (a). (c) Where the selling agent does not deal on a face-to-face basis with the seller, the disclosure form prepared by the selling agent may be furnished to the seller (and acknowledgement of receipt obtained for the selling agent from the seller) by the listing agent, or the selling agent may deliver the disclosure form by certified mail addressed to the seller at his or her last known address, in which case no signed acknowledgement of receipt is required. (d) The selling agent shall provide the disclosure form to the buyer as soon as practicable prior to execution of the buyer's offer to purchase, except that if the offer to purchase is not prepared by the selling agent, the selling agent shall present the disclosure form to the buyer not later than the next business day after the selling agent receives the offer to purchase from the buyer. 2079.15 In any circumstance in which the seller or buyer refuses to sign an acknowledgement of receipt pursuant to Section 2079.14, the agent, or an associate licensee acting for an agent, shall set forth, sign, and date a written declaration of the facts of the refusal. 2079.16 Reproduced on Page 1 of this AD form. 2079.17 (a) As soon as practicable, the selling agent shall disclose to the buyer and seller whether the selling agent is acting in the real property transaction exclusively as the buyer's agent, exclusively as the seller's agent, or as a dual agent representing both the buyer and the seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller, the buyer, and the selling agent prior to or coincident with execution of that contract by the buyer and the seller, respectively. (b) As soon as practicable, the listing agent shall disclose to the seller whether the listing agent is acting in the real property transaction exclusively as the seller's agent, or as a dual agent representing both the buyer and seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller and the listing agent prior to or coincident with the execution of that contract by the seller. (c)The confirmation required by subdivisions (a) and (b) shall be in the following form. (DO NOT COMPLETE. SAMPLE ONLY)is the agent of (check one): ☐ the seller exclusively; or ☐ both the buyer and seller. (Name of Listing Agent) (DO NOT COMPLETE. SAMPLE ONLY)is the agent of (check one): ☐ the buyer exclusively; or ☐ the seller exclusively; or (Name of Selling Agent if not the same as the Listing Agent) ☐both the buyer and seller. (d)The disclosures and confirmation required by this section shall be in addition to the disclosure required by Section 2079.14. 2079.18 No selling agent in a real property transaction may act as an agent for the buyer only, when the selling agent is also acting as the listing agent in the transaction. 2079.19 The payment of compensation or the obligation to pay compensation to an agent by the seller or buyer is not necessarily determinative of a particular agency relationship between an agent and the seller or buyer. A listing agent and a selling agent may agree to share any compensation or commission paid, or any right to any compensation or commission for which an obligation arises as the result of a real estate transaction, and the terms of any such agreement shall not necessarily be determinative of a particular relationship. 2079.20 Nothing in this article prevents an agent from selecting, as a condition of the agent's employment, a specific form of agency relationship not specifically prohibited by this article if the requirements of Section 2079.14 and Section 2079.17 are complied with. 2079.21 A dual agent shall not disclose to the buyer that the seller is willing to sell the property at a price less than the listing price, without the express written consent of the seller. A dual agent shall not disclose to the seller that the buyer is willing to pay a price greater than the offering price, without the express written consent of the buyer. This section does not alter in any way the duty or responsibility of a dual agent to any principal with respect to confidential information other than price. 2079.22 Nothing in this article precludes a listing agent from also being a selling agent, and the combination of these functions in one agent does not, of itself, make that agent a dual agent. 2079.23 A contract between the principal and agent may be modified or altered to change the agency relationship at any time before the performance of the act which is the object of the agency with the written consent of the parties to the agency relationship. 2079.24 Nothing in this article shall be construed to either diminish the duty of disclosure owed buyers and sellers by agents and their associate licensees, subagents, and employees or to relieve agents and their associate licensees, subagents, and employees from liability for their conduct in connection with acts governed by this article or for any breach of a fiduciary duty or a duty of disclosure. Published and Distributed by: REAL ESTATE BUSINESS SERVICES, INC. a subsidiary of the California Association of REALTORS® Reviewed by Date 525 South Virgil Avenue, Los Angeles, California 90020 AD REVISED 12/14 (PAGE 2 OF 2) DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIP (AD PAGE 2 OF 2) Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com 78150 Avenida 150 VACANT LAND PURCHASE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (C.A.R. Form VLPA, Revised 12/15) Date Prepared: 1. OFFER: A. THIS IS AN OFFER FROM ("Buyer"), B. THE REAL PROPERTY to be acquired is , situated in (City),(County), California, (Zip Code), Assessor's Parcel No.(“Property”). Further Described As . C. THE PURCHASE PRICE offered is Dollars $. D. CLOSE OF ESCROW shall occur on (date) (or Days After Acceptance). E.Buyer and Seller are referred to herein as the “Parties.” Brokers are not Parties to this Agreement. 2. AGENCY: A. DISCLOSURE: The Parties each acknowledge receipt of a “Disclosure Regarding Real Estate Agency Relationships” (C.A.R. Form AD). B. CONFIRMATION: The following agency relationships are hereby confirmed for this transaction: Listing Agent (Print Firm Name) is the agent of (check one): the Seller exclusively; or both the Buyer and Seller. Selling Agent (Print Firm Name) (if not the same as the Listing Agent) is the agent of (check one): the Buyer exclusively; or the Seller exclusively; or both the Buyer and Seller. C. POTENTIALLY COMPETING BUYERS AND SELLERS: The Parties each acknowledge receipt of a “Possible Representation of More than One Buyer or Seller - Disclosure and Consent” (C.A.R. Form PRBS). 3. FINANCE TERMS: Buyer represents that funds will be good when deposited with Escrow Holder. A. INITIAL DEPOSIT: Deposit shall be in the amount of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (1)Buyer Direct Deposit: Buyer shall deliver deposit directly to Escrow Holder by electronic funds transfer, cashier's check, personal check, other within 3 business days after Acceptance (or ); OR (2) Buyer Deposit with Agent: Buyer has given the deposit by personal check (or ) to the agent submitting the offer (or to ), made payable to . The deposit shall be held uncashed until Acceptance and then deposited with Escrow Holder within 3 business days after Acceptance (or ). Deposit checks given to agent shall be an original signed check and not a copy. (Note: Initial and increased deposits checks received by agent shall be recorded in Broker's trust fund log.) B. INCREASED DEPOSIT: Buyer shall deposit with Escrow Holder an increased deposit in the amount of . . . $ within Days After Acceptance (or ). If the Parties agree to liquidated damages in this Agreement, they also agree to incorporate the increased deposit into the liquidated damages amount in a separate liquidated damages clause (C.A.R. Form RID) at the time the increased deposit is delivered to Escrow Holder. C. ALL CASH OFFER: No loan is needed to purchase the Property. This offer is NOT contingent on Buyer obtaining a loan. Written verification of sufficient funds to close this transaction IS ATTACHED to this offer or Buyer shall, within 3 (or ) Days After Acceptance, Deliver to Seller such verification. D. LOAN(S): (1) FIRST LOAN: in the amount of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ This loan will be conventional financing or FHA, VA, Seller financing (C.A.R. Form SFA), assumed financing (C.A.R. Form AFA), subject to financing, Other . This loan shall be at a fixed rate not to exceed % or, an adjustable rate loan with initial rate not to exceed %. Regardless of the type of loan, Buyer shall pay points not to exceed % of the loan amount. (2) SECOND LOAN in the amount of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ This loan will be conventional financing or Seller financing (C.A.R. Form SFA), assumed financing (C.A.R. Form AFA), subject to financing Other . This loan shall be at a fixed rate not to exceed % or, an adjustable rate loan with initial rate not to exceed %. Regardless of the type of loan, Buyer shall pay points not to exceed % of the loan amount. (3) FHA/VA: For any FHA or VA loan specified in 3D(1), Buyer has 17 (or ) Days After Acceptance to Deliver to Seller written notice (C.A.R. Form FVA) of any lender-required repairs or costs that Buyer requests Seller to pay for or otherwise correct. Seller has no obligation to pay or satisfy lender requirements unless agreed in writing. A FHA/VA amendatory clause (C.A.R. Form FVAC) shall be a part of this transaction. E. ADDITIONAL FINANCING TERMS: Buyer's Initials () ()Seller's Initials () () © 1996-2015, California Association of REALTORS®, Inc . VLPA REVISED 12/15 (PAGE 1 OF 11) VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 1 OF 11) Phone: Fax: Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com Michael P. Sheppard and Karen M. Sheppard Declaration of Trust 11,920 sq. ft. at Lot 190 Mb 021/061 Desert Club Tract, Unit 5 La Quinta Riverside 92253 770-174-001 One Hundred and Thirty-Five Thousand Dollars 135,000.00 X 30 X None. X X X 5 zipform 611 Anton Blvd. , Suite 1400 Costa Mesa, CA 92626 714 641-5100 714 546-9035 78150 Avenida Rutan Tucker 151 Property Address: Date: F. BALANCE OF DOWN PAYMENT OR PURCHASE PRICE in the amount of . . . . . . . . . . . . . . . . . . . . . . $ to be deposited with Escrow Holder pursuant to Escrow Holder instructions. G. PURCHASE PRICE (TOTAL): . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ H. VERIFICATION OF DOWN PAYMENT AND CLOSING COSTS: Buyer (or Buyer's lender or loan broker pursuant to paragraph 3J(1)) shall, within 3 (or ) Days After Acceptance, Deliver to Seller written verification of Buyer's down payment and closing costs. ( Verification attached.) I. APPRAISAL CONTINGENCY AND REMOVAL: This Agreement is (or is NOT) contingent upon a written appraisal of the Property by a licensed or certified appraiser at no less than the purchase price. Buyer shall, as specified in paragraph 19B(3), in writing, remove the appraisal contingency or cancel this Agreement within 17 (or ) Days After Acceptance. J. LOAN TERMS: (1) LOAN APPLICATIONS: Within 3 (or ) Days After Acceptance, Buyer shall Deliver to Seller a letter from Buyer's lender or loan broker stating that, based on a review of Buyer's written application and credit report, Buyer is prequalified or preapproved for any NEW loan specified in paragraph 3D. If any loan specified in paragraph 3D is an adjustable rate loan, the prequalification or preapproval letter shall be based on the qualifying rate, not the initial loan rate. ( Letter attached.) (2) LOAN CONTINGENCY: Buyer shall act diligently and in good faith to obtain the designated loan(s). Buyer's qualification for the loan(s) specified above is a contingency of this Agreement unless otherwise agreed in writing. If there is no appraisal contingency or the appraisal contingency has been waived or removed, then failure of the Property to appraise at the purchase price does not entitle Buyer to exercise the cancellation right pursuant to the loan contingency if Buyer is otherwise qualified for the specified loan. Buyer's contractual obligations regarding deposit, balance of down payment and closing costs are not contingencies of this Agreement. (3) LOAN CONTINGENCY REMOVAL: Within 21 (or ) Days After Acceptance, Buyer shall, as specified in paragraph 19, in writing, remove the loan contingency or cancel this Agreement. If there is an appraisal contingency, removal of the loan contingency shall not be deemed removal of the appraisal contingency. (4)NO LOAN CONTINGENCY: Obtaining any loan specified above is NOT a contingency of this Agreement. If Buyer does not obtain the loan and as a result Buyer does not purchase the Property, Seller may be entitled to Buyer's deposit or other legal remedies. (5) LENDER LIMITS ON BUYER CREDITS: Any credit to Buyer, from any source, for closing or other costs that is agreed to by the Parties (“Contractual Credit”) shall be disclosed to Buyer's lender. If the total credit allowed by Buyer's lender (“Lender Allowable Credit”) is less than the Contractual Credit, then (i) the Contractual Credit shall be reduced to the Lender Allowable Credit, and (ii) in the absence of a separate written agreement between the Parties, there shall be no automatic adjustment to the purchase price to make up for the difference between the Contractual Credit and the Lender Allowable Credit. K. BUYER STATED FINANCING: Seller is relying on Buyer's representation of the type of financing specified (including but not limited to, as applicable, all cash, amount of down payment, or contingent or non-contingent loan). Seller has agreed to a specific closing date, purchase price and to sell to Buyer in reliance on Buyer's covenant concerning financing. Buyer shall pursue the financing specified in this Agreement. Seller has no obligation to cooperate with Buyer's efforts to obtain any financing other than that specified in the Agreement and the availability of any such alternate financing does not excuse Buyer from the obligation to purchase the Property and close escrow as specified in this Agreement. L. SELLER FINANCING: The following terms (or the terms specified in the attached Seller Financing Addendum) (C.A.R. Form SFA) apply ONLY to financing extended by Seller under this Agreement. (1) BUYER'S CREDIT-WORTHINESS: Buyer authorizes Seller and/or Brokers to obtain, at Buyer's expense, a copy of Buyer's credit report. Within 7 (or ) Days After Acceptance, Buyer shall provide any supporting documentation reasonably requested by Seller. (2) TERMS: Buyer's promissory note, deed of trust and other documents as appropriate shall incorporate and implement the following additional terms: (i) the maximum interest rate specified in paragraph 3D shall be the actual fixed interest rate for Seller financing; (ii)deed of trust shall contain a REQUEST FOR NOTICE OF DEFAULT on senior loans; (iii) Buyer shall sign and pay for a REQUEST FOR NOTICE OF DELINQUENCY prior to Close Of Escrow and at any future time if requested by Seller; (iv) note and deed of trust shall contain an acceleration clause making the loan due, when permitted by law and at Seller's option, upon the sale or transfer of the Property or any interest in it; (v) note shall contain a late charge of 6% of the installment due (or ) if the installment is not received within 10 days of the date due; (vi) title insurance coverage in the form of a joint protection policy shall be provided insuring Seller's deed of trust interest in the Property (any increased cost over owner's policy shall be paid by Buyer); and (vii) tax service shall be obtained and paid for by Buyer to notify Seller if property taxes have not been paid. (3) ADDED, DELETED OR SUBSTITUTED BUYERS: The addition, deletion or substitution of any person or entity under this Agreement or to title prior to Close Of Escrow shall require Seller's written consent. Seller may grant or withhold consent in Seller's sole discretion. Any additional or substituted person or entity shall, if requested by Seller, submit to Seller the same documentation as required for the original named Buyer. Seller and/or Brokers may obtain a credit report, at Buyer's expense, on any such person or entity. M. ASSUMED OR “SUBJECT TO” FINANCING: Seller represents that Seller is not delinquent on any payments due on any loans. Seller shall, within the time specified in paragraph 19, provide Copies of all applicable notes and deeds of trust, loan balances and current interest rates to Buyer. Buyer shall then, as specified in paragraph 19B(3), remove this contingency or cancel this Agreement. Differences between estimated and actual loan balances shall be adjusted at Close Of Escrow by cash down payment. Impound accounts, if any, shall be assigned and charged to Buyer and credited to Seller. Seller is advised that Buyer's assumption of an existing loan may not release Seller from liability on that loan. If this is an assumption of a VA Loan, the sale is contingent upon Seller being provided a release of liability and substitution of eligibility, unless otherwise agreed in writing. If the Property is acquired subject to an existing loan, Buyer and Seller are advised to consult with legal counsel regarding the ability of an existing lender to call the loan due, and the consequences thereof. Buyer's Initials () ()Seller's Initials () () VLPA REVISED 12/15 (PAGE 2 OF 11) VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 2 OF 11) Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com 11,920 sq. ft. at Lot 190 Mb 021/061 Desert Club Tract, Unit 5, La Quinta, CA 92253 135,000.00 135,000.00 X 78150 Avenida 152 Property Address: Date: 4. SALE OF BUYER'S PROPERTY: A.This Agreement and Buyer's ability to obtain financing are NOT contingent upon the sale of any property owned by Buyer. OR B.This Agreement and Buyer's ability to obtain financing are contingent upon the sale of property owned by Buyer as specified in the attached addendum (C.A.R. Form COP). 5.MANUFACTURED HOME PURCHASE: The purchase of the Property is contingent upon Buyer acquiring a personal property manufactured home to be placed on the Property after Close Of Escrow. Buyer has has not entered into a contract for the purchase of a personal property manufactured home. Within the time specified in paragraph 19, Buyer shall remove this contingency or cancel this Agreement, (or this contingency shall remain in effect until the Close Of Escrow of the Property). 6.CONSTRUCTION LOAN FINANCING: The purchase of the Property is contingent upon Buyer obtaining a construction loan. A draw from the construction loan will will not be used to finance the Property. Within the time specified in paragraph 19, Buyer shall remove this contingency or cancel this Agreement (or this contingency shall remain in effect until Close Of Escrow of the Property). 7. ADDENDA AND ADVISORIES: A. ADDENDA:Addendum # (C.A.R. Form ADM) Back Up Offer Addendum (C.A.R. Form BUO) Court Confirmation Addendum (C.A.R. Form CCA) Septic, Well and Property Monument Addendum (C.A.R. Form SWPI) Short Sale Addendum (C.A.R. Form SSA) Other B. BUYER AND SELLER ADVISORIES:Buyer's Inspection Advisory (C.A.R. Form BIA) Probate Advisory (C.A.R. Form PA) Statewide Buyer and Seller Advisory (C.A.R. Form SBSA) Trust Advisory (C.A.R. Form TA) REO Advisory (C.A.R. Form REO) Short Sale Information and Advisory (C.A.R. Form SSIA) Other 8. OTHER TERMS: 9. ALLOCATION OF COSTS A. INSPECTIONS, REPORTS AND CERTIFICATES: Unless otherwise agreed, in writing, this paragraph only determines who is to pay for the inspection, test, certificate or service (“Report”) mentioned; it does not determine who is to pay for any work recommended or identified in the Report. (1) Buyer Seller shall pay for a natural hazard zone disclosure report, including tax environmental Other: prepared by . (2)Buyer Seller shall pay for the following Report prepared by . (3)Buyer Seller shall pay for the following Report prepared by . B. ESCROW AND TITLE: (1)(a) Buyer Seller shall pay escrow fee . (b) Escrow Holder shall be . (c)The Parties shall, within 5 (or ) Days After receipt, sign and return Escrow Holder's general provisions. (2)(a) Buyer Seller shall pay for owner's title insurance policy specified in paragraph 18E . (b) Owner's title policy to be issued by . (Buyer shall pay for any title insurance policy insuring Buyer's lender, unless otherwise agreed in writing.) C. OTHER COSTS: (1) Buyer Seller shall pay County transfer tax or fee . (2) Buyer Seller shall pay City transfer tax or fee . (3)Buyer Seller shall pay Homeowners' Association (“HOA”) transfer fee . (4)Seller shall pay HOA fees for preparing all documents required to be delivered by Civil Code §4525. (5)Buyer to pay for any HOA certification fee. (6)Buyer Seller shall pay HOA fees for preparing all documents other than those required by Civil Code §4525. (7) Buyer Seller shall pay for any private transfer fee . (8) Buyer Seller shall pay for . (9) Buyer Seller shall pay for . 10. CLOSING AND POSSESSION: Possession shall be delivered to Buyer: (i) at 6 PM or ( AM/ PM) on the date of Close Of Escrow; (ii) no later than calendar days after Close Of Escrow; or (iii) at AM/ PM on . The Property shall be unoccupied, unless otherwise agreed in writing. Seller shall provide keys and/or means to operate all Property locks. If Property is located in a common interest subdivision, Buyer may be required to pay a deposit to the Homeowners' Association (“HOA”) to obtain keys to accessible HOA facilities. 11. ITEMS INCLUDED IN AND EXCLUDED FROM SALE: A. NOTE TO BUYER AND SELLER: Items listed as included or excluded in the MLS, flyers or marketing materials are not included in the purchase price or excluded from the sale unless specified in 11B or C. Buyer's Initials () ()Seller's Initials () () VLPA REVISED 12/15 (PAGE 3 OF 11) VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 3 OF 11) Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com 11,920 sq. ft. at Lot 190 Mb 021/061 Desert Club Tract, Unit 5, La Quinta, CA 92253 X X X Four Seasons Escrow, Inc., La Quinta, CA X X If any X If any X If any X If any X 78150 Avenida 153 Property Address: Date: B. ITEMS INCLUDED IN SALE: (1)All EXISTING fixtures and fittings that are attached to the Property; (2)The following items: (3)Seller represents that all items included in the purchase price, unless otherwise specified, are owned by Seller. (4)All items included shall be transferred free of liens and without Seller warranty. C. ITEMS EXCLUDED FROM SALE: 12. STATUTORY AND OTHER DISCLOSURES AND CANCELLATION RIGHTS: A. NATURAL AND ENVIRONMENTAL HAZARD DISCLOSURES AND OTHER BOOKLETS: Within the time specified in paragraph 19A, Seller shall, if required by Law: (i) Deliver to Buyer earthquake guide(s) (and questionnaire), environmental hazards booklet; (ii) disclose if the Property is located in a Special Flood Hazard Area; Potential Flooding (Inundation) Area; Very High Fire Hazard Zone; State Fire Responsibility Area; Earthquake Fault Zone; and Seismic Hazard Zone; and (iii) disclose any other zone as required by Law and provide any other information required for those zones. B. WITHHOLDING TAXES: Within the time specified in paragraph 19A, to avoid required withholding, Seller shall Deliver to Buyer or qualified substitute, an affidavit sufficient to comply with federal (FIRPTA) and California withholding Law (C.A.R. Form AS or QS). C. MEGAN'S LAW DATABASE DISCLOSURE: Notice: Pursuant to Section 290.46 of the Penal Code, information about specified registered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice at www.meganslaw.ca.gov. Depending on an offender's criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP Code in which he or she resides. (Neither Seller nor Brokers are required to check this website. If Buyer wants further information, Broker recommends that Buyer obtain information from this website during Buyer's inspection contingency period. Brokers do not have expertise in this area.) D. NOTICE REGARDING GAS AND HAZARDOUS LIQUID TRANSMISSION PIPELINES: This notice is being provided simply to inform you that information about the general location of gas and hazardous liquid transmission pipelines is available to the public via the National Pipeline Mapping System (NPMS) Internet Web site maintained by the United States Department of Transportation at http://www.npms.phmsa.dot.gov/. To seek further information about possible transmission pipelines near the Property, you may contact your local gas utility or other pipeline operators in the area. Contact information for pipeline operators is searchable by ZIP Code and county on the NPMS Internet Web site. E. CONDOMINIUM/PLANNED DEVELOPMENT DISCLOSURES: (1) SELLER HAS: 7 (or ) Days After Acceptance to disclose to Buyer whether the Property is a condominium, or is located in a planned development or other common interest subdivision (C.A.R. Form VLQ). (2)If the Property is a condominium or is located in a planned development or other common interest subdivision, Seller has 3 (or ) Days After Acceptance to request from the HOA (C.A.R. Form HOA1): (i) Copies of any documents required by Law; (ii) disclosure of any pending or anticipated claim or litigation by or against the HOA; (iii) a statement containing the location and number of designated parking and storage spaces; (iv) Copies of the most recent 12 months of HOA minutes for regular and special meetings; and (v) the names and contact information of all HOAs governing the Property (collectively, “CI Disclosures”). Seller shall itemize and Deliver to Buyer all CI Disclosures received from the HOA and any CI Disclosures in Seller's possession. Buyer's approval of CI Disclosures is a contingency of this Agreement as specified in paragraph 19B(3). The Party specified in paragraph 9, as directed by escrow, shall deposit funds into escrow or direct to HOA or management company to pay for any of the above. 13. SELLER DOCUMENTATION AND ADDITIONAL DISCLOSURE: A.Within the time specified in paragraph 19, if Seller has actual knowledge, Seller shall provide to Buyer, in writing, the following information: (1) LEGAL PROCEEDINGS: Any lawsuits by or against Seller, threatening or affecting the Property, including any lawsuits alleging a defect or deficiency in the Property or common areas, or any known notices of abatement or citations filed or issued against the Property. (2)AGRICULTURAL USE: Whether the Property is subject to restrictions for agricultural use pursuant to the Williamson Act (Government Code §§51200-51295). (3) DEED RESTRICTIONS: Any deed restrictions or obligations. (4) FARM USE: Whether the Property is in, or adjacent to, an area with Right to Farm rights (Civil Code §3482.5 and §3482.6). (5) ENDANGERED SPECIES: Presence of endangered, threatened, 'candidate' species, or wetlands on the Property. (6) ENVIRONMENTAL HAZARDS: Any substances, materials, or products that may be an environmental hazard including, but not limited to, asbestos, formaldehyde, radon gas, lead-based paint, fuel or chemical storage tanks, and contaminated soil or water on the Property. (7) COMMON WALLS: Any features of the Property shared in common with adjoining landowners, such as walls, fences, roads, and driveways, and agriculture and domestic wells whose use or responsibility for maintenance may have an effect on the Property. (8) LANDLOCKED: The absence of legal or physical access to the Property. (9) EASEMENTS/ENCROACHMENTS: Any encroachments, easements or similar matters that may affect the Property. (10) SOIL FILL: Any fill (compacted or otherwise), or abandoned mining operations on the Property. (11) SOIL PROBLEMS: Any slippage, sliding, flooding, drainage, grading, or other soil problems. (12) EARTHQUAKE DAMAGE: Major damage to the Property or any of the structures from fire, earthquake, floods, or landslides. (13) ZONING ISSUES: Any zoning violations, non-conforming uses, or violations of “setback” requirements. (14) NEIGHBORHOOD PROBLEMS: Any neighborhood noise problems, or other nuisances. B. RENTAL AND SERVICE AGREEMENTS: Within the time specified in paragraph 19, Seller shall make available to Buyer for inspection and review, all current leases, rental agreements, service contracts and other related agreements, licenses, and permits pertaining to the operation or use of the Property. C.TENANT ESTOPPEL CERTIFICATES: Within the time specified in paragraph 19, Seller shall deliver to Buyer tenant estoppel certificates (C.A.R. Form TEC) completed by Seller or Seller's agent, and signed by tenants, acknowledging: (i) that tenants' rental or lease agreements are unmodified and in full force and effect (or if modified, stating all such modifications); (ii) that no lessor defaults exist; and (iii) stating the amount of any prepaid rent or security deposit. Buyer's Initials () ()Seller's Initials () () VLPA REVISED 12/15 (PAGE 4 OF 11) VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 4 OF 11) Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com 11,920 sq. ft. at Lot 190 Mb 021/061 Desert Club Tract, Unit 5, La Quinta, CA 92253 78150 Avenida 154 Property Address: Date: D. MELLO-ROOS TAX; 1915 BOND ACT: Within the time specified in paragraph 19, Seller shall: (i) make a good faith effort to obtain a notice from any local agencies that levy a special tax or assessment on the Property (or, if allowed, substantially equivalent notice), pursuant to the Mello-Roos Community Facilities Act, and Improvement Bond Act of 1915, and (ii) promptly deliver to Buyer any such notice obtained. E. SELLER VACANT LAND QUESTIONNAIRE: Seller shall, within the time specified in paragraph 19, complete and provide Buyer with a Seller Vacant Land Questionnaire (C.A.R. Form VLQ). 14. SUBSEQUENT DISCLOSURES: In the event Seller, prior to Close Of Escrow, becomes aware of adverse conditions materially affecting the Property, or any material inaccuracy in disclosures, information or representations previously provided to Buyer of which Buyer is otherwise unaware, Seller shall promptly provide a subsequent or amended disclosure or notice, in writing, covering those items. However, a subsequent or amended disclosure shall not be required for conditions and material inaccuracies disclosed in reports ordered and paid for by Buyer. 15. CHANGES DURING ESCROW: A.Prior to Close Of Escrow, Seller may engage in the following acts, (“Proposed Changes”), subject to Buyer's rights in paragraph 15B: (i) rent or lease any part of the premises; (ii) alter, modify or extend any existing rental or lease agreement; (iii) enter into, alter, modify or extend any service contract(s); or (iv) change the status of the condition of the Property. B.At least 7 (or ) Days prior to any Proposed Changes, Seller shall give written notice to Buyer of such Proposed Changes. Within 5 (or ) Days After receipt of such notice, Buyer, in writing, may give Seller notice of Buyer's objection to the Proposed Changes, in which case Seller shall not make the Proposed Changes. 16. CONDITION OF PROPERTY: Unless otherwise agreed in writing: (i) the Property is sold (a) “AS-IS” in its PRESENT physical condition as of the date of Acceptance and (b) subject to Buyer's Investigation rights; (ii) the Property, including pool, spa, landscaping and grounds, is to be maintained in substantially the same condition as on the date of Acceptance; and (iii) all debris and personal property not included in the sale shall be removed by Close Of Escrow. A.Seller shall, within the time specified in paragraph 19A, DISCLOSE KNOWN MATERIAL FACTS AND DEFECTS affecting the Property, including known insurance claims within the past five years, and make any and all other disclosures required by law. B.Buyer has the right to conduct Buyer Investigations of the property and, as specified in paragraph 19B, based upon information discovered in those investigations: (i) cancel this Agreement; or (ii) request that Seller make Repairs or take other action. C. Buyer is strongly advised to conduct investigations of the entire Property in order to determine its present condition. Seller may not be aware of all defects affecting the Property or other factors that Buyer considers important. Property improvements may not be built according to code, in compliance with current Law, or have had permits issued. 17. BUYER'S INVESTIGATION OF PROPERTY AND MATTERS AFFECTING PROPERTY: A.Buyer's acceptance of the condition of, and any other matter affecting the Property, is a contingency of this Agreement as specified in this paragraph and paragraph 19B. Within the time specified in paragraph 19B(1), Buyer shall have the right, at Buyer's expense unless otherwise agreed, to conduct inspections, investigations, tests, surveys and other studies (“Buyer Investigations”), including, but not limited to, the right to: (i) inspect for lead-based paint and other lead-based paint hazards; (ii) inspect for wood destroying pests and organisms; (iii) review the registered sex offender database; (iv) confirm the insurability of Buyer and the Property; and (v) satisfy Buyer as to any matter specified in the attached Buyer's Inspection Advisory (C.A.R. Form BIA). Without Seller's prior written consent, Buyer shall neither make nor cause to be made: (i) invasive or destructive Buyer Investigations except for minimally invasive testing; or (ii)inspections by any governmental building or zoning inspector or government employee, unless required by Law. B.Seller shall make the Property available for all Buyer Investigations. Buyer shall (i) as specified in paragraph 19B, complete Buyer Investigations and, either remove the contingency or cancel this Agreement, and (ii) give Seller, at no cost, complete Copies of all Investigation reports obtained by Buyer, which obligation shall survive the termination of this Agreement. C. Buyer indemnity and Seller protection for entry upon property: Buyer shall: (i) keep the Property free and clear of liens; (ii) repair all damage arising from Buyer Investigations; and (iii) indemnify and hold Seller harmless from all resulting liability, claims, demands, damages and costs of Buyer's Investigations. Buyer shall carry, or Buyer shall require anyone acting on Buyer's behalf to carry, policies of liability, workers' compensation and other applicable insurance, defending and protecting Seller from liability for any injuries to persons or property occurring during any Buyer Investigations or work done on the Property at Buyer's direction prior to Close Of Escrow. Seller is advised that certain protections may be afforded Seller by recording a “Notice of Non-responsibility” (C.A.R. Form NNR) for Buyer Investigations and work done on the Property at Buyer's direction. Buyer's obligations under this paragraph shall survive the termination or cancellation of this Agreement and Close Of Escrow. D. BUYER IS STRONGLY ADVISED TO INVESTIGATE THE CONDITION AND SUITABILITY OF ALL ASPECTS OF THE PROPERTY AND ALL MATTERS AFFECTING THE VALUE OR DESIRABILITY OF THE PROPERTY, INCLUDING BUT NOT LIMITED TO, THE ITEMS SPECIFIED BELOW. IF BUYER DOES NOT EXERCISE THESE RIGHTS, BUYER IS ACTING AGAINST THE ADVICE OF BROKERS. BUYER UNDERSTANDS THAT ALTHOUGH CONDITIONS ARE OFTEN DIFFICULT TO LOCATE AND DISCOVER, ALL REAL PROPERTY CONTAINS CONDITIONS THAT ARE NOT READILY APPARENT AND THAT MAY AFFECT THE VALUE OR DESIRABILITY OF THE PROPERTY. BUYER AND SELLER ARE AWARE THAT BROKERS DO NOT GUARANTEE, AND IN NO WAY ASSUME RESPONSIBILITY FOR, THE CONDITION OF THE PROPERTY. BROKERS HAVE NOT AND WILL NOT VERIFY ANY OF THE ITEMS IN THIS PARAGRAPH 17, UNLESS OTHERWISE AGREED IN WRITING. E. SIZE, LINES, ACCESS AND BOUNDARIES: Lot size, property lines, legal or physical access and boundaries including features of the Property shared in common with adjoining landowners, such as walls, fences, roads and driveways, whose use or responsibility for maintenance may have an effect on the Property and any encroachments, easements or similar matters that may affect the Property. (Fences, hedges, walls and other natural or constructed barriers or markers do not necessarily identify true Property boundaries. Property lines may be verified by survey.) (Unless otherwise specified in writing, any numerical statements by Brokers regarding lot size are APPROXIMATIONS ONLY, which have not been and will not be verified, and should not be relied upon by Buyer.) F. ZONING AND LAND USE: Past, present, or proposed laws, ordinances, referendums, initiatives, votes, applications and permits affecting the current use of the Property, future development, zoning, building, size, governmental permits and inspections. Any zoning violations, non-conforming uses, or violations of “setback” requirements. (Buyer should also investigate whether these matters affect Buyer's intended use of the Property.) G. UTILITIES AND SERVICES: Availability, costs, restrictions and location of utilities and services, including but not limited to, sewerage, sanitation, septic and leach lines, water, electricity, gas, telephone, cable TV and drainage. Buyer's Initials () ()Seller's Initials () () VLPA REVISED 12/15 (PAGE 5 OF 11) VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 5 OF 11) Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com 11,920 sq. ft. at Lot 190 Mb 021/061 Desert Club Tract, Unit 5, La Quinta, CA 92253 78150 Avenida 155 Property Address: Date: H. ENVIRONMENTAL HAZARDS: Potential environmental hazards, including, but not limited to, asbestos, lead-based paint and other lead contamination, radon, methane, other gases, fuel, oil or chemical storage tanks, contaminated soil or water, hazardous waste, waste disposal sites, electromagnetic fields, nuclear sources, and other substances, including mold (airborne, toxic or otherwise), fungus or similar contaminant, materials, products or conditions. I. GEOLOGIC CONDITIONS: Geologic/seismic conditions, soil and terrain stability, suitability and drainage including any slippage, sliding, flooding, drainage, grading, fill (compacted or otherwise), or other soil problems. J. NATURAL HAZARD ZONE: Special Flood Hazard Areas, Potential Flooding (Inundation) Areas, Very High Fire Hazard Zones, State Fire Responsibility Areas, Earthquake Fault Zones, Seismic Hazard Zones, or any other zone for which disclosure is required by Law. K. PROPERTY DAMAGE: Major damage to the Property or any of the structures or non-structural systems and components and any personal property included in the sale from fire, earthquake, floods, landslides or other causes. L. NEIGHBORHOOD, AREA AND PROPERTY CONDITIONS: Neighborhood or area conditions, including Agricultural Use Restrictions pursuant to the Williamson Act (Government Code §§51200-51295), Right To Farm Laws (Civil Code §3482.5 and §3482.6),schools, proximity and adequacy of law enforcement, crime statistics, the proximity of registered felons or offenders, fire protection, other government services, availability, adequacy and cost of any speed-wired, wireless internet connections or other telecommunications or other technology services and installations, proximity to commercial, industrial or agricultural activities, existing and proposed transportation, construction and development that may affect noise, view, or traffic, airport noise, noise or odor from any source, abandoned mining operations on the Property, wild and domestic animals, other nuisances, hazards, or circumstances, protected species, wetland properties, botanical diseases, historic or other governmentally protected sites or improvements, cemeteries, facilities and condition of common areas of common interest subdivisions, and possible lack of compliance with any governing documents or Homeowners' Association requirements, conditions and influences of significance to certain cultures and/or religions, and personal needs, requirements and preferences of Buyer. M. COMMON INTEREST SUBDIVISIONS: OWNER ASSOCIATIONS: Facilities and condition of common areas (facilities such as pools, tennis courts, walkways, or other areas co-owned in undivided interest with others), Owners' Association that has any authority over the subject property, CC&Rs, or other deed restrictions or obligations, and possible lack of compliance with any Owners' Association requirements. N. SPECIAL TAX: Any local agencies that levy a special tax on the Property pursuant to the Mello-Roos Community Facilities Act or Improvement Bond Act of 1915. O. RENTAL PROPERTY RESTRICTIONS: Some cities and counties impose restrictions that limit the amount of rent that can be charged, the maximum number of occupants and the right of a landlord to terminate a tenancy. P. MANUFACTURED HOME PLACEMENT: Conditions that may affect the ability to place and use a manufactured home on the Property. 18. TITLE AND VESTING: A.Within the time specified in paragraph 19, Buyer shall be provided a current preliminary title report (“Preliminary Report”). The Preliminary Report is only an offer by the title insurer to issue a policy of title insurance and may not contain every item affecting title. Buyer's review of the Preliminary Report and any other matters which may affect title are a contingency of this Agreement as specified in paragraph 19B. The company providing the Preliminary Report shall, prior to issuing a Preliminary Report, conduct a search of the General Index for all Sellers except banks or other institutional lenders selling properties they acquired through foreclosure (REOs), corporations, and government entities. Seller shall within 7 Days After Acceptance, give Escrow Holder a completed Statement of Information. B.Title is taken in its present condition subject to all encumbrances, easements, covenants, conditions, restrictions, rights and other matters, whether of record or not, as of the date of Acceptance except for: (i) monetary liens of record (which Seller is obligated to pay off) unless Buyer is assuming those obligations or taking the Property subject to those obligations; and (ii) those matters which Seller has agreed to remove in writing. C.Within the time specified in paragraph 19A, Seller has a duty to disclose to Buyer all matters known to Seller affecting title, whether of record or not. D.At Close Of Escrow, Buyer shall receive a grant deed conveying title (or, for stock cooperative or long-term lease, an assignment of stock certificate or of Seller's leasehold interest), including oil, mineral and water rights if currently owned by Seller. Title shall vest as designated in Buyer's supplemental escrow instructions. THE MANNER OF TAKING TITLE MAY HAVE SIGNIFICANT LEGAL AND TAX CONSEQUENCES. CONSULT AN APPROPRIATE PROFESSIONAL. E.Buyer shall receive a “CLTA/ALTA Homeowner's Policy of Title Insurance”, if applicable to the type of property and buyer. A title company, at Buyer's request, can provide information about the availability, desirability, coverage, and cost of various title insurance coverages and endorsements. If Buyer desires title coverage other than that required by this paragraph, Buyer shall instruct Escrow Holder in writing and shall pay any increase in cost. 19. TIME PERIODS; REMOVAL OF CONTINGENCIES; CANCELLATION RIGHTS: The following time periods may only be extended, altered, modified or changed by mutual written agreement. Any removal of contingencies or cancellation under this paragraph by either Buyer or Seller must be exercised in good faith and in writing (C.A.R. Form CR or CC). A. SELLER HAS: 7 (or ) Days After Acceptance to Deliver to Buyer all Reports, disclosures and information for which Seller is responsible under paragraphs 3M, 7A, 8, 9, 12A, B, and E, 13, 16A and 18A. Buyer after first Delivering to Seller a Notice to Seller to Perform (C.A.R. Form NSP) may cancel this Agreement if Seller has not Delivered the items within the time specified. B. (1)BUYER HAS: 17 (or ) Days After Acceptance, unless otherwise agreed in writing, to: (i)complete all Buyer Investigations; review all disclosures, reports, and other applicable information, which Buyer receives from Seller; and approve all matters affecting the Property; and (ii) Deliver to Seller Signed Copies of Statutory Disclosures and other disclosures Delivered by Seller in accordance with paragraph 12A. (2)Within the time specified in paragraph 19B(1), Buyer may request that Seller make repairs or take any other action regarding the Property (C.A.R. Form RR). Seller has no obligation to agree to or respond to (C.A.R. Form RRRR) Buyer's requests. (3)By the end of the time specified in paragraph 19B(1) (or as otherwise specified in this Agreement), Buyer shall Deliver to Seller a removal of the applicable contingency or cancellation (C.A.R. Form CR or CC) of this Agreement. However, if any report, disclosure or information for which Seller is responsible is not Delivered within the time specified in paragraph 19A, then Buyer has 5 (or ) Days After Delivery of any such items, or the time specified in paragraph 19B(1), whichever is later, to Deliver to Seller a removal of the applicable contingency or cancellation of this Agreement. Buyer's Initials () ()Seller's Initials () () VLPA REVISED 12/15 (PAGE 6 OF 11) VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 6 OF 11) Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com 11,920 sq. ft. at Lot 190 Mb 021/061 Desert Club Tract, Unit 5, La Quinta, CA 92253 78150 Avenida 156 Property Address: Date: (4) Continuation of Contingency: Even after the end of the time specified in paragraph 19B(1) and before Seller cancels, if at all, pursuant to paragraph 19C, Buyer retains the right, in writing, to either (i) remove remaining contingencies, or (ii) cancel this Agreement based on a remaining contingency. Once Buyer's written removal of all contingencies is Delivered to Seller, Seller may not cancel this Agreement pursuant to paragraph 19C(1). C. SELLER RIGHT TO CANCEL: (1) Seller right to Cancel; Buyer Contingencies: If, by the time specified in this Agreement, Buyer does not Deliver to Seller a removal of the applicable contingency or cancellation of this Agreement, then Seller, after first Delivering to Buyer a Notice to Buyer to Perform (C.A.R. Form NBP), may cancel this Agreement. In such event, Seller shall authorize the return of Buyer's deposit, except for fees incurred by Buyer. (2) Seller right to Cancel; Buyer Contract Obligations: Seller, after first delivering to Buyer a NBP, may cancel this Agreement if, by the time specified in this Agreement, Buyer does not take the following action(s): (i) Deposit funds as required by paragraph 3A or 3B or if the funds deposited pursuant to paragraph 3A or 3B are not good when deposited; (ii) Deliver a notice of FHA or VA costs or terms as required by paragraph 3D(3) (C.A.R. Form FVA); (iii) Deliver a letter as required by paragraph 3J(1); (iv) Deliver verification as required by paragraph 3C or 3H or if Seller reasonably disapproves of the verification provided by paragraph 3C or 3H; (v) Return Statutory Disclosures as required by paragraph 12A; or (vi) Sign or initial a separate liquidated damages form for an increased deposit as required by paragraphs 3B and 27B; or (vii) Provide evidence of authority to sign in a representative capacity as specified in paragraph 19. In such event, Seller shall authorize the return of Buyer's deposit, except for fees incurred by Buyer. D. NOTICE TO BUYER OR SELLER TO PERFORM: The NBP or NSP shall: (i) be in writing; (ii) be signed by the applicable Buyer or Seller; and (iii) give the other Party at least 2(or ) Days After Delivery (or until the time specified in the applicable paragraph, whichever occurs last) to take the applicable action. A NBP or NSP may not be Delivered any earlier than 2 Days Prior to the expiration of the applicable time for the other Party to remove a contingency or cancel this Agreement or meet an obligation specified in paragraph 19. E. EFFECT OF BUYER'S REMOVAL OF CONTINGENCIES: If Buyer removes, in writing, any contingency or cancellation rights, unless otherwise specified in writing, Buyer shall conclusively be deemed to have: (i) completed all Buyer Investigations, and review of reports and other applicable information and disclosures pertaining to that contingency or cancellation right; (ii) elected to proceed with the transaction; and (iii) assumed all liability, responsibility and expense for Repairs or corrections pertaining to that contingency or cancellation right, or for the inability to obtain financing. F. CLOSE OF ESCROW: Before Buyer or Seller may cancel this Agreement for failure of the other Party to close escrow pursuant to this Agreement, Buyer or Seller must first Deliver to the other Party a demand to close escrow (C.A.R. Form DCE). The DCE shall: (i) be signed by the applicable Buyer or Seller; and (ii) give the other Party at least 3 (or ) Days After Delivery to close escrow. A DCE may not be Delivered any earlier than 3 Days Prior to the scheduled close of escrow. G. EFFECT OF CANCELLATION ON DEPOSITS: If Buyer or Seller gives written notice of cancellation pursuant to rights duly exercised under the terms of this Agreement, the Parties agree to Sign mutual instructions to cancel the sale and escrow and release deposits, if any, to the party entitled to the funds, less fees and costs incurred by that party. Fees and costs may be payable to service providers and vendors for services and products provided during escrow. Except as specified below, release of funds will require mutual Signed release instructions from the Parties, judicial decision or arbitration award. If either Party fails to execute mutual instructions to cancel escrow, one Party may make a written demand to Escrow Holder for the deposit (C.A.R. Form BDRD or SDRD). Escrow Holder, upon receipt, shall promptly deliver notice of the demand to the other Party. If, within 10 Days After Escrow Holder's notice, the other Party does not object to the demand, Escrow Holder shall disburse the deposit to the Party making the demand. If Escrow Holder complies with the preceding process, each Party shall be deemed to have released Escrow Holder from any and all claims or liability related to the disbursal of the deposit. Escrow Holder, at its discretion, may nonetheless require mutual cancellation instructions. A Party may be subject to a civil penalty of up to $1,000 for refusal to sign cancellation instructions if no good faith dispute exists as to who is entitled to the deposited funds (Civil Code §1057.3). 20. REPAIRS: Repairs shall be completed prior to final verification of condition unless otherwise agreed in writing. Repairs to be performed at Seller's expense may be performed by Seller or through others, provided that the work complies with applicable Law, including governmental permit, inspection and approval requirements. Repairs shall be performed in a good, skillful manner with materials of quality and appearance comparable to existing materials. It is understood that exact restoration of appearance or cosmetic items following all Repairs may not be possible. Seller shall: (i) obtain invoices and paid receipts for Repairs performed by others; (ii) prepare a written statement indicating the Repairs performed by Seller and the date of such Repairs; and (iii) provide Copies of invoices and paid receipts and statements to Buyer prior to final verification of condition. 21. FINAL VERIFICATION OF CONDITION: Buyer shall have the right to make a final verification of the Property within 5 (or ) Days Prior to Close Of Escrow, NOT AS A CONTINGENCY OF THE SALE, but solely to confirm: (i) the Property is maintained pursuant to paragraph 16; (ii) Repairs have been completed as agreed; and (iii) Seller has complied with Seller's other obligations under this Agreement (C.A.R. Form VP). 22. ENVIRONMENTAL HAZARD CONSULTATION: Buyer and Seller acknowledge: (i) Federal, state, and local legislation impose liability upon existing and former owners and users of real property, in applicable situations, for certain legislatively defined, environmentally hazardous substances; (ii) Broker(s) has/have made no representation concerning the applicability of any such Law to this transaction or to Buyer or to Seller, except as otherwise indicated in this Agreement; (iii) Broker(s) has/have made no representation concerning the existence, testing, discovery, location and evaluation of/for, and risks posed by, environmentally hazardous substances, if any, located on or potentially affecting the Property; and (iv) Buyer and Seller are each advised to consult with technical and legal experts concerning the existence, testing, discovery, location and evaluation of/for, and risks posed by, environmentally hazardous substances, if any, located on or potentially affecting the Property. 23. PRORATIONS OF PROPERTY TAXES AND OTHER ITEMS: Unless otherwise agreed in writing, the following items shall be PAID CURRENT and prorated between Buyer and Seller as of Close Of Escrow: real property taxes and assessments, interest, rents, HOA regular, special, and emergency dues and assessments imposed prior to Close Of Escrow, premiums on insurance assumed by Buyer, payments on bonds and assessments assumed by Buyer, and payments on Mello-Roos and other Special Assessment Buyer's Initials () ()Seller's Initials () () VLPA REVISED 12/15 (PAGE 7 OF 11) VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 7 OF 11) Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com 11,920 sq. ft. at Lot 190 Mb 021/061 Desert Club Tract, Unit 5, La Quinta, CA 92253 78150 Avenida 157 Property Address: Date: District bonds and assessments that are now a lien. The following items shall be assumed by Buyer WITHOUT CREDIT toward the purchase price: prorated payments on Mello-Roos and other Special Assessment District bonds and assessments and HOA special assessments that are now a lien but not yet due. Property will be reassessed upon change of ownership. Any supplemental tax bills shall be paid as follows: (i) for periods after Close Of Escrow, by Buyer; and (ii) for periods prior to Close Of Escrow, by Seller (see C.A.R. Form SPT or SBSA for further information). TAX BILLS ISSUED AFTER CLOSE OF ESCROW SHALL BE HANDLED DIRECTLY BETWEEN BUYER AND SELLER. Prorations shall be made based on a 30-day month. 24. BROKERS: A. COMPENSATION: Seller or Buyer, or both, as applicable, agrees to pay compensation to Broker as specified in a separate written agreement between Broker and that Seller or Buyer. Compensation is payable upon Close Of Escrow, or if escrow does not close, as otherwise specified in the agreement between Broker and that Seller or Buyer. B. SCOPE OF DUTY: Buyer and Seller acknowledge and agree that Broker: (i) Does not decide what price Buyer should pay or Seller should accept; (ii) Does not guarantee the condition of the Property; (iii) Does not guarantee the performance, adequacy or completeness of inspections, services, products or repairs provided or made by Seller or others; (iv) Does not have an obligation to conduct an inspection of common areas or areas off the site of the Property; (v) Shall not be responsible for identifying defects on the Property, in common areas, or offsite unless such defects are visually observable by an inspection of reasonably accessible areas of the Property or are known to Broker; (vi) Shall not be responsible for inspecting public records or permits concerning the title or use of Property; (vii) Shall not be responsible for identifying the location of boundary lines or other items affecting title; (viii) Shall not be responsible for verifying square footage, representations of others or information contained in Investigation reports, Multiple Listing Service, advertisements, flyers or other promotional material; (ix) Shall not be responsible for determining the fair market value of the Property or any personal property included in the sale; (x) Shall not be responsible for providing legal or tax advice regarding any aspect of a transaction entered into by Buyer or Seller; and (xi) Shall not be responsible for providing other advice or information that exceeds the knowledge, education and experience required to perform real estate licensed activity. Buyer and Seller agree to seek legal, tax, insurance, title and other desired assistance from appropriate professionals. 25. REPRESENTATIVE CAPACITY: If one or more Parties is signing the Agreement in a representative capacity and not for him/herself as an individual then that Party shall so indicate in paragraph 37 or 38 and attach a Representative Capacity Signature Addendum (C.A.R. Form RCSD). Wherever the signature or initials of the representative identified in the RCSD appear on the Agreement or any related documents, it shall be deemed to be in a representative capacity for the entity described and not in an individual capacity, unless otherwise indicated. The Party acting in a representative capacity (i) represents that the entity for which that party is acting already exists and (ii) shall Deliver to the other Party and Escrow Holder, within 3 Days After Acceptance, evidence of authority to act in that capacity (such as but not limited to: applicable portion of the trust or Certification Of Trust (Probate Code §18100.5), letters testamentary, court order, power of attorney, corporate resolution, or formation documents of the business entity). 26. JOINT ESCROW INSTRUCTIONS TO ESCROW HOLDER: A. The following paragraphs, or applicable portions thereof, of this Agreement constitute the joint escrow instructions of Buyer and Seller to Escrow Holder, which Escrow Holder is to use along with any related counter offers and addenda, and any additional mutual instructions to close the escrow: paragraphs 1, 3, 4B, 5, 6, 7A, 8, 9, 12B, 18, 19G, 23, 24A, 25, 26, 32, 35, 36, 37, 38 and paragraph D of the section titled Real Estate Brokers on page 11. If a Copy of the separate compensation agreement(s) provided for in paragraph 24A, or paragraph D of the section titled Real Estate Brokers on page 10 is deposited with Escrow Holder by Broker, Escrow Holder shall accept such agreement(s) and pay out from Buyer's or Seller's funds, or both, as applicable, the Broker's compensation provided for in such agreement(s). The terms and conditions of this Agreement not set forth in the specified paragraphs are additional matters for the information of Escrow Holder, but about which Escrow Holder need not be concerned. Buyer and Seller will receive Escrow Holder's general provisions, if any, directly from Escrow Holder and will execute such provisions within the time specified in paragraph 9B(1)(c). To the extent the general provisions are inconsistent or conflict with this Agreement, the general provisions will control as to the duties and obligations of Escrow Holder only. Buyer and Seller will execute additional instructions, documents and forms provided by Escrow Holder that are reasonably necessary to close the escrow and, as directed by Escrow Holder, within 3 (or ) Days, shall pay to Escrow Holder or HOA or HOA management company or others any fee required by paragraphs 9, 12 or elsewhere in this Agreement. B.A Copy of this Agreement including any counter offer(s) and addenda shall be delivered to Escrow Holder within 3 Days After Acceptance (or ). Buyer and Seller authorize Escrow Holder to accept and rely on Copies and Signatures as defined in this Agreement as originals, to open escrow and for other purposes of escrow. The validity of this Agreement as between Buyer and Seller is not affected by whether or when Escrow Holder Signs this Agreement. Escrow Holder shall provide Seller's Statement of Information to Title company when received from Seller. If Seller delivers an affidavit to Escrow Holder to satisfy Seller's FIRPTA obligation under paragraph 12B, Escrow Holder shall deliver to Buyer a Qualified Substitute statement that complies with federal Law. C.Brokers are a party to the escrow for the sole purpose of compensation pursuant to paragraph 24A and paragraph D of the section titled Real Estate Brokers on page 11. Buyer and Seller irrevocably assign to Brokers compensation specified in paragraph 24A, and irrevocably instruct Escrow Holder to disburse those funds to Brokers at Close Of Escrow or pursuant to any other mutually executed cancellation agreement. Compensation instructions can be amended or revoked only with the written consent of Brokers. Buyer and Seller shall release and hold harmless Escrow Holder from any liability resulting from Escrow Holder's payment to Broker(s) of compensation pursuant to this Agreement. D.Upon receipt, Escrow Holder shall provide Seller and Seller's Broker verification of Buyer's deposit of funds pursuant to paragraph 3A and 3B. Once Escrow Holder becomes aware of any of the following, Escrow Holder shall immediately notify all Brokers: (i) if Buyer's initial or any additional deposit is not made pursuant to this Agreement, or is not good at time of deposit with Escrow Holder; or (ii) if Buyer and Seller instruct Escrow Holder to cancel escrow. E.A Copy of any amendment that affects any paragraph of this Agreement for which Escrow Holder is responsible shall be delivered to Escrow Holder within 3 Days after mutual execution of the amendment. Buyer's Initials () ()Seller's Initials () () VLPA REVISED 12/15 (PAGE 8 OF 11) VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 8 OF 11) Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com 11,920 sq. ft. at Lot 190 Mb 021/061 Desert Club Tract, Unit 5, La Quinta, CA 92253 78150 Avenida 158 Property Address: Date: 27. REMEDIES FOR BUYER'S BREACH OF CONTRACT: A. Any clause added by the Parties specifying a remedy (such as release or forfeiture of deposit or making a deposit non- refundable) for failure of Buyer to complete the purchase in violation of this Agreement shall be deemed invalid unless the clause independently satisfies the statutory liquidated damages requirements set forth in the Civil Code. B. LIQUIDATED DAMAGES: If Buyer fails to complete this purchase because of Buyer's default, Seller shall retain, as liquidated damages, the deposit actually paid. Buyer and Seller agree that this amount is a reasonable sum given that it is impractical or extremely difficult to establish the amount of damages that would actually be suffered by Seller in the event Buyer were to breach this Agreement. Release of funds will require mutual, Signed release instructions from both Buyer and Seller, judicial decision or arbitration award. AT TIME OF ANY INCREASED DEPOSIT BUYER AND SELLER SHALL SIGN A SEPARATE LIQUIDATED DAMAGES PROVISION INCORPORATING THE INCREASED DEPOSIT AS LIQUIDATED DAMAGES (C.A.R.FORM RID). Buyer's Initials / Seller's Initials / 28. DISPUTE RESOLUTION: A. MEDIATION: The Parties agree to mediate any dispute or claim arising between them out of this Agreement, or any resulting transaction, before resorting to arbitration or court action through the C.A.R. Consumer Mediation Center (www. consumermediation.org) or through any other mediation provider or service mutually agreed to by the Parties. The Parties also agree to mediate any disputes or claims with Broker(s), who, in writing, agree to such mediation prior to, or within a reasonable time after, the dispute or claim is presented to the Broker. Mediation fees, if any, shall be divided equally among the Parties involved. If, for any dispute or claim to which this paragraph applies, any Party (i) commences an action without first attempting to resolve the matter through mediation, or (ii) before commencement of an action, refuses to mediate after a request has been made, then that Party shall not be entitled to recover attorney fees, even if they would otherwise be available to that Party in any such action. THIS MEDIATION PROVISION APPLIES WHETHER OR NOT THE ARBITRATION PROVISION IS INITIALED. Exclusions from this mediation agreement are specified in paragraph 28C. B. ARBITRATION OF DISPUTES: The Parties agree that any dispute or claim in Law or equity arising between them out of this Agreement or any resulting transaction, which is not settled through mediation, shall be decided by neutral, binding arbitration. The Parties also agree to arbitrate any disputes or claims with Broker(s), who, in writing, agree to such arbitration prior to, or within a reasonable time after, the dispute or claim is presented to the Broker. The arbitrator shall be a retired judge or justice, or an attorney with at least 5 years of transactional real estate Law experience, unless the parties mutually agree to a different arbitrator. The Parties shall have the right to discovery in accordance with Code of Civil Procedure §1283.05. In all other respects, the arbitration shall be conducted in accordance with Title 9 of Part 3 of the Code of Civil Procedure. Judgment upon the award of the arbitrator(s) may be entered into any court having jurisdiction. Enforcement of this agreement to arbitrate shall be governed by the Federal Arbitration Act. Exclusions from this arbitration agreement are specified in paragraph 28C. “NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY.” “WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION TO NEUTRAL ARBITRATION.” Buyer's Initials / Seller's Initials / C. ADDITIONAL MEDIATION AND ARBITRATION TERMS: (1) EXCLUSIONS: The following matters are excluded from mediation and arbitration: (i) a judicial or non-judicial foreclosure or other action or proceeding to enforce a deed of trust, mortgage or installment land sale contract as defined in Civil Code §2985; (ii) an unlawful detainer action; and (iii) any matter that is within the jurisdiction of a probate, small claims or bankruptcy court. (2) PRESERVATION OF ACTIONS: The following shall not constitute a waiver nor violation of the mediation and arbitration provisions: (i) the filing of a court action to preserve a statute of limitations; (ii) the filing of a court action to enable the recording of a notice of pending action, for order of attachment, receivership, injunction, or other provisional remedies; or (iii) the filing of a mechanic's lien. (3) BROKERS: Brokers shall not be obligated nor compelled to mediate or arbitrate unless they agree to do so in writing. Any Broker(s) participating in mediation or arbitration shall not be deemed a party to the Agreement. 29. SELECTION OF SERVICE PROVIDERS: Brokers do not guarantee the performance of any vendors, service or product providers (“Providers”), whether referred by Broker or selected by Buyer, Seller or other person. Buyer and Seller may select ANY Providers of their own choosing. 30. MULTIPLE LISTING SERVICE (“MLS”): Brokers are authorized to report to the MLS a pending sale and, upon Close Of Escrow, the sales price and other terms of this transaction shall be provided to the MLS to be published and disseminated to persons and entities authorized to use the information on terms approved by the MLS. Buyer's Initials () ()Seller's Initials () () VLPA REVISED 12/15 (PAGE 9 OF 11) VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 9 OF 11) Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com 11,920 sq. ft. at Lot 190 Mb 021/061 Desert Club Tract, Unit 5, La Quinta, CA 92253 78150 Avenida 159 Property Address: Date: 31. ATTORNEY FEES: In any action, proceeding, or arbitration between Buyer and Seller arising out of this Agreement, the prevailing Buyer or Seller shall be entitled to reasonable attorneys fees and costs from the non-prevailing Buyer or Seller, except as provided in paragraph 28A. 32. ASSIGNMENT: Buyer shall not assign all or any part of Buyer's interest in this Agreement without first having obtained the written consent of Seller. Such consent shall not be unreasonably withheld unless otherwise agreed in writing. Any total or partial assignment shall not relieve Buyer of Buyer's obligations pursuant to this Agreement unless otherwise agreed in writing by Seller (C.A.R. Form AOAA). 33. EQUAL HOUSING OPPORTUNITY: The Property is sold in compliance with federal, state and local anti-discrimination Laws. 34. TERMS AND CONDITIONS OF OFFER: This is an offer to purchase the Property on the above terms and conditions. The liquidated damages paragraph or the arbitration of disputes paragraph is incorporated in this Agreement if initialed by all Parties or if incorporated by mutual agreement in a counteroffer or addendum. If at least one but not all Parties initial, a counter offer is required until agreement is reached. Seller has the right to continue to offer the Property for sale and to accept any other offer at any time prior to notification of Acceptance. Buyer has read and acknowledges receipt of a Copy of the offer and agrees to the confirmation of agency relationships. If this offer is accepted and Buyer subsequently defaults, Buyer may be responsible for payment of Brokers' compensation. This Agreement and any supplement, addendum or modification, including any Copy, may be Signed in two or more counterparts, all of which shall constitute one and the same writing. 35. TIME OF ESSENCE; ENTIRE CONTRACT; CHANGES: Time is of the essence. All understandings between the Parties are incorporated in this Agreement. Its terms are intended by the Parties as a final, complete and exclusive expression of their Agreement with respect to its subject matter, and may not be contradicted by evidence of any prior agreement or contemporaneous oral agreement. If any provision of this Agreement is held to be ineffective or invalid, the remaining provisions will nevertheless be given full force and effect. Except as otherwise specified, this Agreement shall be interpreted and disputes shall be resolved in accordance wth the Laws of the State of California. Neither this Agreement nor any provision in it may be extended, amended, modified, altered or changed, except in writing Signed by Buyer and Seller. 36. DEFINITIONS: As used in this Agreement: A. “Acceptance” means the time the offer or final counter offer is accepted in writing by a Party and is delivered to and personally received by the other Party or that Party's authorized agent in accordance with the terms of this offer or a final counter offer. B. “Agreement” means this document and any counter offers and any incorporated addenda, collectively forming the binding agreement between the Parties. Addenda are incorporated only when Signed by all Parties. C. “C.A.R. Form” means the most current version of the specific form referenced or another comparable form agreed to by the parties. D. “Close Of Escrow” means the date the grant deed, or other evidence of transfer of title, is recorded. E. “Copy” means copy by any means including photocopy, NCR, facsimile and electronic. F. “Days” means calendar days. However, after Acceptance, the last Day for performance of any act required by this Agreement (including Close Of Escrow) shall not include any Saturday, Sunday, or legal holiday and shall instead be the next Day. G. “Days After” means the specified number of calendar days after the occurrence of the event specified, not counting the calendar date on which the specified event occurs, and ending at 11:59 PM on the final day. H. “Days Prior” means the specified number of calendar days before the occurrence of the event specified, not counting the calendar date on which the specified event is scheduled to occur. I.“Deliver”, “Delivered” or “Delivery”, unless otherwise specified in writing, means and shall be effective upon: personal receipt by Buyer or Seller or the individual Real Estate Licensee for that principal as specified in the section titled Real Estate Brokers on page11, regardless of the method used (i.e., messenger, mail, email, fax, other). J. “Electronic Copy” or “Electronic Signature” means, as applicable, an electronic copy or signature complying with California Law. Buyer and Seller agree that electronic means will not be used by either Party to modify or alter the content or integrity of this Agreement without the knowledge and consent of the other Party. K. “Law” means any law, code, statute, ordinance, regulation, rule or order, which is adopted by a controlling city, county, state or federal legislative, judicial or executive body or agency. L. “Repairs” means any repairs (including pest control), alterations, replacements, modifications or retrofitting of the Property provided for under this Agreement. M. “Signed” means either a handwritten or electronic signature on an original document, Copy or any counterpart. 37. EXPIRATION OF OFFER: This offer shall be deemed revoked and the deposit, if any, shall be returned to Buyer unless the offer is Signed by Seller and a Copy of the Signed offer is personally received by Buyer, or by , who is authorized to receive it, by 5:00 PM on the third Day after this offer is signed by Buyer (or by AM/ PM, on (date)). One or more Buyers is signing the Agreement in a representative capacity and not for him/herself as an individual. See attached Representative Capacity Signature Disclosure (C.A.R. Form RCSD-B) for additional terms. Date (Print name) Date BUYER (Print name) Additional Signature Addendum attached (C.A.R. Form ASA). Buyer's Initials () ()Seller's Initials () () VLPA REVISED 12/15 (PAGE 10 OF 11) VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 10 OF 11) Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com 11,920 sq. ft. at Lot 190 Mb 021/061 Desert Club Tract, Unit 5, La Quinta, CA 92253 X BUYER Karen M. Sheppard, Surviving Trustee of the Michael P. Sheppard and Karen M. Sheppard Declaration of Trust 78150 Avenida 8/5/2019 160 Property Address: Date: 38. ACCEPTANCE OF OFFER: Seller warrants that Seller is the owner of the Property, or has the authority to execute this Agreement. Seller accepts the above offer and agrees to sell the Property on the above terms and conditions, and agrees to the above confirmation of agency relationships. Seller has read and acknowledges receipt of a Copy of this Agreement, and authorizes Broker to Deliver a Signed Copy to Buyer. (If checked) SELLER'S ACCEPTANCE IS SUBJECT TO ATTACHED COUNTER OFFER (C.A.R. Form SCO or SMCO) DATED: . One or more Sellers is signing the Agreement in a representative capacity and not for him/herself as an individual. See attached Representative Capacity Signature Disclosure (C.A.R. Form RCSD-S) for additional terms. Date (Print name) Date SELLER (Print name) Additional Signature Addendum attached (C.A.R. Form ASA). (_____ / _____)(Do not initial if making a counter offer.) CONFIRMATION OF ACCEPTANCE: A Copy of Signed Acceptance was (Initials) personally received by Buyer or Buyer's authorized agent on (date) at AM/ PM. A binding Agreement is created when a Copy of Signed Acceptance is personally received by Buyer or Buyer's authorized agent whether or not confirmed in this document. Completion of this confirmation is not legally required in order to create a binding Agreement; it is solely intended to evidence the date that Confirmation of Acceptance has occurred. REAL ESTATE BROKERS: A. Real Estate Brokers are not parties to the Agreement between Buyer and Seller. B. Agency relationships are confirmed as stated in paragraph 2. C.If specified in paragraph 3A(2), Agent who submitted the offer for Buyer acknowledges receipt of deposit. D. COOPERATING BROKER COMPENSATION: Listing Broker agrees to pay Cooperating Broker (Selling Firm) and Cooperating Broker agrees to accept, out of Listing Broker's proceeds in escrow, the amount specified in the MLS, provided Cooperating Broker is a Participant of the MLS in which the Property is offered for sale or a reciprocal MLS. If Listing Broker and Cooperating Broker are not both Participants of the MLS, or a reciprocal MLS, in which the Property is offered for sale, then compensation must be specified in a separate written agreement (C.A.R. Form CBC). Declaration of License and Tax (C.A.R. Form DLT) may be used to document that tax reporting will be required or that an exemption exists. Real Estate Broker (Selling Firm) CalBRE Lic. # By CalBRE Lic. # Date By CalBRE Lic. # Date Address City State Zip Telephone Fax E-mail Real Estate Broker (Listing Firm) CalBRE Lic. # By CalBRE Lic. # Date By CalBRE Lic. # Date Address City State Zip Telephone Fax E-mail ESCROW HOLDER ACKNOWLEDGMENT: Escrow Holder acknowledges receipt of a Copy of this Agreement, (if checked, a deposit in the amount of $ ), counter offer numbers Seller's Statement of Information and , and agrees to act as Escrow Holder subject to paragraph 26 of this Agreement, any supplemental escrow instructions and the terms of Escrow Holder's general provisions. Escrow Holder is advised that the date of Confirmation of Acceptance of the Agreement as between Buyer and Seller is Escrow Holder Escrow # By Date Address Phone/Fax/E-mail Escrow Holder has the following license number # Department of Business Oversight, Department of Insurance, Bureau of Real Estate. PRESENTATION OF OFFER: () Listing Broker presented this offer to Seller on (date). Broker or Designee Initials REJECTION OF OFFER: ()( ) No counter offer is being made. This offer was rejected by Seller on (date). Seller's Initials ©1996- 2015, California Association of REALTORS®, Inc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. Published and Distributed by: Buyer's Acknowledge that page 11 is part of REAL ESTATE BUSINESS SERVICES, INC.this Agreement () () a subsidiary of the CALIFORNIA ASSOCIATION OF REALTORS® 525 South Virgil Avenue, Los Angeles, California 90020 Reviewed byVLPA REVISED 11/14 (PAGE 11 OF 11) Broker or Designee VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 11 OF 11) Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com 11,920 sq. ft. at Lot 190 Mb 021/061 Desert Club Tract, Unit 5, La Quinta, CA 92253 X SELLER City of La Quinta None. 78150 Avenida 161 BUYER'S INSPECTION ADVISORY (C.A.R. Form BIA, Revised 11/14) Property Address: ("Property"). 1. IMPORTANCE OF PROPERTY INVESTIGATION: The physical condition of the land and improvements being purchased is not guaranteed by either Seller or Brokers. You have an affirmative duty to exercise reasonable care to protect yourself, including discovery of the legal, practical and technical implications of disclosed facts, and the investigation and verification of information and facts that you know or that are within your diligent attention and observation. A general physical inspection typically does not cover all aspects of the Property nor items affecting the Property that are not physically located on the Property. If the professionals recommend further investigations, including a recommendation by a pest control operator to inspect inaccessible areas of the Property, you should contact qualified experts to conduct such additional investigations. 2. BROKER OBLIGATIONS: Brokers do not have expertise in all areas and therefore cannot advise you on many items, such as those listed below. If Broker gives you referrals to professionals, Broker does not guarantee their performance. 3. YOU ARE STRONGLY ADVISED TO INVESTIGATE THE CONDITION AND SUITABILITY OF ALL ASPECTS OF THE PROPERTY, INCLUDING BUT NOT LIMIITED TO THE FOLLOWING. IF YOU DO NOT DO SO, YOU ARE ACTING AGAINST THE ADVICE OF BROKERS. A.GENERAL CONDITION OF THE PROPERTY, ITS SYSTEMS AND COMPONENTS: Foundation, roof (condition, age, leaks, useful life), plumbing, heating, air conditioning, electrical, mechanical, security, pool/spa (cracks, leaks, operation), other structural and nonstructural systems and components, fixtures, built-in appliances, any personal property included in the sale, and energy efficiency of the Property. B. SQUARE FOOTAGE, AGE, BOUNDARIES: Square footage, room dimensions, lot size, age of improvements and boundaries. Any numerical statements regarding these items are APPROXIMATIONS ONLY and have not been verified by Seller and cannot be verified by Brokers. Fences, hedges, walls, retaining walls and other barriers or markers do not necessarily identify true Property boundaries. C. WOOD DESTROYING PESTS: Presence of, or conditions likely to lead to the presence of wood destroying pests and organisms. D. SOIL STABILITY: Existence of fill or compacted soil, expansive or contracting soil, susceptibility to slippage, settling or movement, and the adequacy of drainage. E. WATER AND UTILITIES; WELL SYSTEMS AND COMPONENTS;WASTE DISPOSAL: Water and utility availability, use restrictions and costs. Water quality, adequacy, condition, and performance of well systems and components. The type, size, adequacy, capacity and condition of sewer and septic systems and components, connection to sewer, and applicable fees. F. ENVIRONMENTAL HAZARDS: Potential environmental hazards, including, but not limited to, asbestos, lead-based paint and other lead contamination, radon, methane, other gases, fuel oil or chemical storage tanks, contaminated soil or water, hazardous waste, waste disposal sites, electromagnetic fields, nuclear sources, and other substances, materials, products, or conditions (including mold (airborne, toxic or otherwise), fungus or similar contaminants). G. EARTHQUAKES AND FLOODING: Susceptibility of the Property to earthquake/seismic hazards and propensity of the Property to flood. H. FIRE, HAZARD AND OTHER INSURANCE: The availability and cost of necessary or desired insurance may vary. The location of the Property in a seismic, flood or fire hazard zone, and other conditions, such as the age of the Property and the claims history of the Property and Buyer, may affect the availability and need for certain types of insurance. Buyer should explore insurance options early as this information may affect other decisions, including the removal of loan and inspection contingencies. I. BUILDING PERMITS, ZONING AND GOVERNMENTAL REQUIREMENTS: Permits, inspections, certificates, zoning, other governmental limitations, restrictions, and requirements affecting the current or future use of the Property, its development or size. J. RENTAL PROPERTY RESTRICTIONS: Some cities and counties impose restrictions that limit the amount of rent that can be charged, the maximum number of occupants, and the right of a landlord to terminate a tenancy. Deadbolt or other locks and security systems for doors and windows, including window bars, should be examined to determine whether they satisfy legal requirements. K.SECURITY AND SAFETY: State and local Law may require the installation of barriers, access alarms, self-latching mechanisms and/or other measures to decrease the risk to children and other persons of existing swimming pools and hot tubs, as well as various fire safety and other measures concerning other features of the Property. L. NEIGHBORHOOD, AREA, SUBDIVISION CONDITIONS; PERSONAL FACTORS: Neighborhood or area conditions, including schools, law enforcement, crime statistics, registered felons or offenders, fire protection, other government services, availability, adequacy and cost of internet connections or other technology services and installations, commercial, industrial or agricultural activities, existing and proposed transportation, construction and development that may affect noise, view, or traffic, airport noise, noise or odor from any source, wild and domestic animals, other nuisances, hazards, or circumstances, protected species, wetland properties, botanical diseases, historic or other governmentally protected sites or improvements, cemeteries, facilities and condition of common areas of common interest subdivisions, and possible lack of compliance with any governing documents or Homeowners' Association requirements, conditions and influences of significance to certain cultures and/or religions, and personal needs, requirements and preferences of Buyer. By signing below, Buyers acknowledge that they have read, understand, accept and have received a Copy of this Advisory. Buyers are encouraged to read it carefully. Buyer Buyer © 1991-2004, California Association of REALTORS®, Inc. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. Published and Distributed by: REAL ESTATE BUSINESS SERVICES, INC. Reviewed by Date a subsidiary of the California Association of REALTORS® 525 South Virgil Avenue, Los Angeles, California 90020 BIA REVISED 11/14 (PAGE 1 OF 1) BUYER'S INSPECTION ADVISORY (BIA PAGE 1 OF 1) Phone: Fax: Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com 11,920 sq. ft. at Lot 190 Mb 021/061 Desert Club Tract, Unit 5, La Quinta, CA 92253 Karen M. Sheppard, Surviving Trustee of the Michael P. Sheppard and Karen M. Sheppard Declaration of Trust zipform 611 Anton Blvd. , Suite 1400 Costa Mesa, CA 92626 714 641-5100 714 546-9035 78150 Avenida Rutan Tucker 162 POSSIBLE REPRESENTATION OF MORE THAN ONE BUYER OR SELLER - DISCLOSURE AND CONSENT (C.A.R. Form PRBS, 11/14) A real estate broker (Broker), whether a corporation, partnership or sole proprietorship, may represent more than one buyer or seller. This multiple representation can occur through an individual licensed as a broker or salesperson or through different individual broker's or salespersons (associate licensees) acting under the Broker's license. The associate licensees may be working out of the same or different office locations. Multiple Buyers: Broker (individually or through its associate licensees) may be working with many prospective buyers at the same time. These prospective buyers may have an interest in, and make offers on, the same properties. Some of these properties may be listed with Broker and some may not. Broker will not limit or restrict any particular buyer from making an offer on any particular property whether or not Broker represents other buyers interested in the same property. Multiple Sellers: Broker (individually or through its associate licensees) may have listings on many properties at the same time. As a result, Broker will attempt to find buyers for each of those listed properties. Some listed properties may appeal to the same prospective buyers. Some properties may attract more prospective buyers than others. Some of these prospective buyers may be represented by Broker and some may not. Broker will market all listed properties to all prospective buyers whether or not Broker has another or other listed properties that may appeal to the same prospective buyers. Dual Agency: If Seller is represented by Broker, Seller acknowledges that broker may represent prospective buyers of Seller's property and consents to Broker acting as a dual agent for both seller and buyer in that transaction. If Buyer is represented by Broker, buyer acknowledges that Broker may represent sellers of property that Buyer is interested in acquiring and consents to Broker acting as a dual agent for both buyer and seller with regard to that property. In the event of dual agency, seller and buyer agree that: (a) Broker, without the prior written consent of the Buyer, will not disclose to seller that the Buyer is willing to pay a price greater than the offered price; (b) Broker, without the prior written consent of the seller, will not disclose to the buyer that seller is willing to sell property at a price less than the listing price; and (c) other than as set forth in (a) and (b) above, a dual agent is obligated to disclose known facts materially affecting the value or desirability of the property to both parties. Offers not necessarily confidential: Buyer is advised that seller or listing agent may disclose the existence, terms, or conditions of buyer's offer unless all parties and their agent have signed a written confidentiality agreement. Whether any such information is actually disclosed depends on many factors, such as current market conditions, the prevailing practice in the real estate community, the listing agent's marketing strategy and the instructions of the seller. Buyer and seller understand that Broker may represent more than one buyer or more than one seller and even both buyer and seller on the same transaction and consents to such relationships. Seller and/or Buyer acknowledges reading and understanding this Possible Representation of More Than One Buyer or Seller - Disclosure and Consent and agrees to the agency possibilities disclosed. Seller Date Seller Date Buyer Date Buyer Date Real Estate Broker (Firm) CalBRE Lic # Date By CalBRE Lic # Date Real Estate Broker (Firm) CalBRE Lic # Date By CalBRE Lic # Date © 2014, California Association of REALTORS®, Inc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the California Association of REALTORS®. It is not intended to identify the user as a REALTOR®. REALTOR® is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS® who subscribe to its Code of Ethics. Published and Distributed by: REAL ESTATE BUSINESS SERVICES, INC. a subsidiary of the California Association of REALTORS® 525 South Virgil Avenue, Los Angeles, California 90020 Reviewed by Date PRBS 11/14 (PAGE 1 OF 1) POSSIBLE REPRESENTATION OF MORE THAN ONE BUYER OR SELLER (PRBS PAGE 1 OF 1) Phone: Fax: Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com City of La Quinta Karen M. Sheppard, Surviving Trustee of the Michael P. Sheppard and Karen M. Sheppard Declaration of Trust None. zipform 611 Anton Blvd. , Suite 1400 Costa Mesa, CA 92626 714 641-5100 714 546-9035 78150 Avenida Rutan Tucker 8/5/2019 163 2774/015610-0002 11167182.1 a07/18/17 EXHIBIT A 164 REPRESENTATIVE CAPACITY SIGNATURE DISCLOSURE (FOR BUYER REPRESENTATIVES) (C.A.R. Form RCSD-B, Revised 6/16) This form is not an assignment. It should not be used to add new parties after a contract has been formed. The purpose of this form is to identify who the principal is in the transaction and who has authority to sign documents on behalf of the principal This is a disclosure to the Purchase Agreement, Buyer Representation Agreement, Other , dated (“Agreement”), for the property known as (“Property”), between “Buyer Broker”). and (“Buyer”) If a trust, identify Buyer as the trustee(s) of the trust or by simplified trust name (e.g. John Doe, co-trustee, Jane Doe, co- trustee or Doe Revocable Family Trust 3.) Full name of trust should be identified in 1A below. If power of attorney, insert principal's name as Buyer. 1.A. TRUST: (1) Assets used to acquire/lease the Property are held in trust pursuant to a trust document titled dated . (2) The person(s) signing below is/are Sole/Co/Successor Trustee(s) of the Trust. which has authorized the officer(s), managing member(s), partner(s) or person(s) signing below to act on its behalf. An authorizing resolution of the applicable body of the entity described above is is not attached. C. POWER OF ATTORNEY: Buyer (“Principal”) has authorized the person(s) signing below (“Attorney-In-Fact”, “Power of Attorney” or “POA”) to act on his/her behalf pursuant to a General Power of Attorney ( Specific Power of Attorney for the Property), dated . This form is not a Power of Attorney. A Power of Attorney must have already been executed before this form is used. 2.Buyer's Representative represents that the trust, entity or power of attorney for which that Party is acting already exists. Buyer: By Date: (Sign Name of Trustee, Officer, Managing Member, Partner, or Attorney-in-Fact) (Print Representative Name) Title: By Date: (Sign Name of Trustee, Officer, Managing Member, Partner, or Attorney-in-Fact) (Print Representative Name) Title: Acknowledgement of Receipt By Other Party: (Buyer Broker) By Date: (Seller) (Print Seller Name) (Seller) Date: (Print Seller Name) © 2015-2016 California Association of REALTORS®, Inc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS®. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. Published and Distributed by: REAL ESTATE BUSINESS SERVICES, INC. a subsidiary of the California Association of REALTORS® 525 South Virgil Avenue, Los Angeles, California 90020 Reviewed by RCSD-B REVISED 6/16 (PAGE 1 OF 1) REPRESENTATIVE CAPACITY SIGNATURE DISCLOSURE (RCSD-B PAGE 1 OF 1) Phone: Fax: Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com X 11,920 sq. ft. at Lot 190 Mb 021/061 Desert Club Tract, Unit 5, La Quinta, CA 92253 The City of La Quinta, a California Municipal Corp. and Charter City (“Seller”X, Karen M. Sheppard, Trustee B.ENTITY: Buyer is a Corporation, Limited Liability Company, Partnership Other: Karen M. Sheppard None Date: City of La Quinta zipform 611 Anton Blvd. , Suite 1400 Costa Mesa, CA 92626 714 641-5100 714 546-9035 78150 Avenida Rutan Tucker X Karen M. Sheppard, Surviving Trustee of the Michael P. Sheppard and Karen M. Sheppard Declaration of Trust Jan. 11, 2008 Michael P. Sheppard and Karen M. Sheppard Declaration of Trust 8/5/2019 Trustee 165 REPRESENTATIVE CAPACITY SIGNATURE DISCLOSURE (FOR SELLER REPRESENTATIVES) (C.A.R. Form RCSD-S, Revised 6/16) This form is not an assignment. It should not be used to add new parties after a contract has been formed. The purpose of this form is to identify who the principal is in the transaction and who has authority to sign documents on behalf of the principal. This is a disclosure to the Purchase Agreement, Listing Agreement, Other for the property known as (“Property”), between (“Buyer”, Listing Broker) and (“Seller”). If a trust, identify Seller as the trustee(s) of the trust or by simplified trust name (ex. John Doe, co-trustee, Jane Doe, co-trustee or Doe Revocable Family Trust 3.). Full name of trust should be identified in 1A below. If power of attorney, insert principal's name as Seller. 1. A. TRUST: (1) The Property is held in trust pursuant to a trust document, titled (Full name of Trust) dated . (2) The person(s) signing below is/are Sole/Co/Successor Trustee(s) of the Trust. B. ENTITY: Seller is a Corporation, Limited Liability Company, Partnership Other: which has authorized the officer(s), managing member(s), partner(s) or person(s) signing below to act on its behalf. An authorizing resolution of the applicable body of the entity described above is is not attached. C. POWER OF ATTORNEY: Seller (“Principal”) has authorized the person(s) signing below (“Attorney-In-Fact”, “Power of Attorney” or “POA”) to act on his/her behalf pursuant to a General Power of Attorney ( Specific Power of Attorney for the Property), dated . This form is not a Power of Attorney. A Power of Attorney must have already been executed before this form is used. D. ESTATE: (1) Seller is an estate, conservatorship, or guardianship identified by Superior Court Case name as , Case # . (2)The person(s) signing below is/are court approved representatives (whether designated as Sole or Co-Executor, Administrator, Conservator, Guardian) of the estate, conservatorship or guardianship identified above. 2.Seller's Representative represents that the trust, entity or power of attorney for which that Party is acting already exists. Seller: By Date: (Sign Name of Trustee, Officer, Managing Member, Partner, Attorney-in-Fact or Administrator/Executor) Title: Date: (Sign Name of Trustee, Officer, Managing Member, Partner, Attorney-in-Fact or Administrator/Executor) (Print Representative Name) Title: Acknowledgement of Receipt By Other Party: (Listing Broker) By Date: (Buyer) Date: (Print Buyer Name) (Buyer) Date: (Print Buyer Name) © 2015-2016 California Association of REALTORS®, Inc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS®. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. Published and Distributed by: REAL ESTATE BUSINESS SERVICES, INC. a subsidiary of the California Association of REALTORS® 525 South Virgil Avenue, Los Angeles, California 90020 Reviewed by RCSD-S REVISED 6/16 (PAGE 1 OF 1) REPRESENTATIVE CAPACITY SIGNATURE DISCLOSURE (RCSD-S PAGE 1 OF 1) Phone: Fax: Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com X dated , (“Agreement”), 11,920 sq. ft. at Lot 190 Mb 021/061 Desert Club Tract, Unit 5, La Quinta, CA 92253 The City of La Quinta, a California Municipal Corp. and Charter City XX (Print Representative Name) Jon McMillen By None Karen M. Sheppard, Surviving Trustee of the Michael P. Sheppard and Karen M. Sheppard Declaration of Trust zipform 611 Anton Blvd. , Suite 1400 Costa Mesa, CA 92626 714 641-5100 714 546-9035 78150 Avenida Rutan Tucker Michael P. Sheppard and Karen M. Sheppard Declaration of Trust XMunicipal Corp. X Executive Director City of La Quinta, a California Municipal Corp. and Charter City 8/5/2019 8/5/2019 166 City of La Quinta CITY COUNCIL MEETING: October 1, 2019 STAFF REPORT AGENDA TITLE: APPROVE FIRST ROUND COMMUNITY SERVICES GRANTS FOR FISCAL YEAR 2019/20 RECOMMENDATION Approve first round Community Service Grants for fiscal year 2019/20. EXECUTIVE SUMMARY •The Council considers Community Services Grants and Economic Development/Marketing funding requests three times per fiscal year. •Ten grant applications were received and reviewed by the Community Services Grant Ad Hoc Committee (Committee). FISCAL IMPACT The total 2019/20 grant budget is $110,000 with $60,000 (101-3001-60510) allocated to Community Service Grants. Ten organizations submitted a total of $48,000 in grant requests. The Committee recommends funding $21,000 of these requests. BACKGROUND/ANALYSIS Grants are awarded to 501(c)3 non-profit groups and organizations that benefit La Quinta residents and strengthen the business community. Grants are limited to $5,000 per request and consecutive fiscal year funding is not allowed (Attachment 1). Council created a Starter Grant category for organizations applying for the first time. This allows first time applicants up to $500 of funding and eligibility to apply again the next fiscal year. The Committee, comprised of Mayor Evans and Council Member Peña, reviewed the applications and recommended the following: BUSINESS SESSION ITEM NO. 1 167 Applicant Requested Committee Recommendation Chuck Jones Center for Creativity $5,000 $2,000 Coachella Valley Volunteers in Medicine $5,000 $5,000 Desert Sands Educational Foundation $5,000 $2,500 Elder Love USA, Inc. $3,000 $2,000 FIND Food Bank $5,000 $3,000 Habitat for Humanity of the Coachella Valley $5,000 $0 Osher Lifelong Learning Institute $5,000 $0 Pegasus Therapeutic Riding $5,000 $2,500 Southland Events – Desert Triathlon $5,000 $2,500 YMCA $5,000 $1,500 Total $48,000 $21,000 Attachment 2 presents all submitted grant requests. All applications are available for review in the Community Resources Department. ALTERNATIVES Council may modify and/or deny funding for any or all grant applications received. Prepared by: Christina Calderon, Community Resources Manager Approved by: Chris Escobedo, Community Resources Director Attachments: 1. Community Services Grant Overview 2.Recommended Grant Requests 168 The City of La Quinta offers a grant program for community services support. •Community Services Grants go to recognized nonprofit organizations that benefit the residents of La Quinta. •Grants are considered and funded up to three times per year (rounds). •All three rounds are held within the city’s fiscal year (July 1 – June 30). •Organizations that have been funded are ineligible for funding for the next fiscal year. •All funding requests are limited to an amount not to exceed $5,000. Q: How much money is available? A: Requests are limited to an amount not to exceed $5,000. Any funding amount requested could be adjusted to a lesser amount at the discretion and approval of the City Council. Q: Who can apply for this grant? A: Applications are accepted from recognized nonprofit organizations that directly benefit La Quinta residents. Second consideration is given to nonprofit organizations that indirectly affect the quality of life for the residents of La Quinta. Q: Can an individual apply for this grant? A: No, individuals are not eligible for funding through the City of La Quinta grant program. Q: What if my organization is applying for a grant for the first time? A: Organizations applying to the Community Services Grant program for the first time are eligible for a “Starter Grant” The “Starter Grant” allows first time applicants grant funding up to $500 if they demonstrate their commitment to provide services to the La Quinta community. If an organization is selected to receive the “Starter Grant” they would then be eligible to apply to the program again the next fiscal year. Q: Can my organization request “seed” money for a start-up? A: Yes, organizations can request “seed” money, however they are required to obtain matching funds from other sources in the same fiscal year before the grant funds will be released. Q: Is my organization eligible if we received Community Development Block Grant (CDBG) funds? A: No, organizations that receive CDBG funds from the City of La Quinta during the same fiscal year are not eligible for funding. Q: Is my organization eligible if we received Community Services Grant (CSG) funds in the past? A: Yes, and No. Organizations that were funded before June 30, 2018 are now eligible to apply. Organizations that were funded after July 1, 2018 are ineligible for funding and must wait until July 1, 2020 to re-apply. What you need to do: 1.Determine eligibility based on the information provided above. If eligible, proceed to step 2. 2.Review the grants calendar for submission dates (in red). If within due date, proceed to step 3. 3.Fill out the grant application. Once completed proceed to step 4. 4.Submit application via email to ccalderon@laquintaca.gov, or in person to the Wellness Center. a.The Wellness Center is located at 78450 Avenida La Fonda, La Quinta, CA 92253. The next steps: 5.Applications are received and reviewed by staff to ensure eligibility and completeness. 6.Completed grant applications will be reviewed by a designated Grant Review Committee (in blue). a.The committee’s review includes: consideration of the funding amount, the intended use of the funds, and the organizations service to the community. If the committee approves the application, they will then recommend for approval to the City Council. 7.Committee approved applications are submitted to the City Council for consideration and approval (in green) 8.If approved, funds will be dispersed to grantee (in white ) and can be spent over a 12 month period. 9.Funding expenditures will need to be reported to the city at 6 months and a full reconciliation form with supporting documentation will be due before the end of the 12 month period. For more information on the City of La Quinta Grant program, please contact the Community Resources Department at the Wellness Center 760.564-0096 or at 760.777.7183 COMMUNITY SERVICES GRANT OVERVIEW IS MY ORGANIZATION ELIGIBLE? THE PROCESS… ATTACHMENT 1 169 The City of La Quinta offers a grant program for marketing and event sponsorship. •Marketing/Sponsorship Grants go to nonprofit organizations that would benefit the City of La Quinta in a marketing capacity. •Economic Development Grants go to organizations that will help strengthen the business community in La Quinta. •Grants are considered and funded up to three times per year (rounds). •Organizations that have been funded are ineligible for funding for the next fiscal year. •All three rounds are held within the city’s fiscal year (July 1- June 30). •All funding requests must include a detailed marketing/media plan to be considered. Q: How much money is available? A: Requests are limited to an amount not to exceed $5,000. A second tier is available for Economic Development/Marketing requests above $5,000 (submission of a detailed marketing/media plan is required). For Economic Development/Marketing requests above $5,000, an in depth review will be conducted by the La Quinta Marketing Committee. Any funding amount requested could be adjusted to a lesser amount at the discretion and approval of the City Council. Q: Who can apply for this grant? A: Applications are accepted from recognized organizations that would benefit the City of La Quinta in a marketing capacity. Second consideration is given to organizations that indirectly affect the quality of life for the residents of La Quinta. Q: Can an individual apply for this grant? A: No, individuals are not eligible for funding through the City of La Quinta grant program. Q: Can my organization request “seed” money for a start-up? A: Yes, organizations can request “seed” money; however they are required to obtain matching funds from other sources in the same fiscal year before the grant funds will be released. Q: Is my organization eligible if we received Community Development Block Grant (CDBG) funds? A: No, organizations that receive CDBG funds from the City of La Quinta during the same fiscal year are not eligible for funding. Q: Is my organization eligible if we received Community Services Grant (CSG) funds in the past? A: Yes, and No. Organizations that were funded before June 30, 2018 are now eligible to apply. Organizations that were funded after July 1, 2018 are ineligible for funding and must wait until July 1, 2020 to re-apply. What you need to do: 1.Determine eligibility based on the information provided above. If eligible, proceed to step 2. 2.Review the grants calendar for submission dates (in red). If within due date, proceed to step 3. 3.Fill out the grant application. Once completed proceed to step 4. 4.Submit application via email to ccalderon@laquintaca.gov, or in person to the Wellness Center. a.The Wellness Center is located at 78450 Avenida La Fonda, La Quinta, CA 92253. The next steps: 5.Applications are received and reviewed by staff to ensure eligibility and completeness. 6.Completed grant applications will be reviewed by a designated Grant Review Committee (in blue). a.The committee’s review includes: consideration of the funding amount, the included marketing/media plans, and the amount of impressions and visitors the event would bring to the city. If the committee approves the application, they will then recommend approval to the City Council. 7.Committee approved applications are submitted to the City Council for consideration and approval (in green) 8.If approved, funds will be dispersed to grantee (in white ) and can be spent over a 12 month period. 9.Funding expenditures will need to be reported to the city at 6 months and a full reconciliation form with supporting documentation will be due before the end of the 12 month period. For more information on the City of La Quinta Grant program, please contact the Community Resources Department at the Wellness Center 760.564.0096 or at 760.777.7183 MARKETING/SPONSORSHIP GRANT OVERVIEW IS MY ORGANIZATION ELIGIBLE? THE PROCESS… 170 Community Services Grants First Round JULY 2019 AUGUST SEPTEMBER OCTOBER 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Second Round NOVEMBER DECEMBER JANUARY 2020 FEBRUARY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Third Round MARCH APRIL MAY JUNE 2020 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Application Due Date Ad-Hoc Committee Review City Council Decision Checks Distributed 171 172 Recommended Grant Requests: 1.Chuck Jones Center for Creativity is requesting $5,000 to fund the Food for Thought Adult Brain Health Program that will be held at the La Quinta Wellness Center. This project based, process driven creativity program exercises four specific brain functions: memory, executive function, visual language, and visual function. The senior aged population (70-74 years of age) are experiencing a preventable level of cognitive function deterioration. Being creative causes the brain to reshape, adapt and restructure, improving cognitive function and serving as a strong defense against Alzheimer’s disease and other dementia related conditions. Chuck Jones Center for Creativity received a Starter Grant for $500 in 2018/19 and are eligible to apply for grant for 2019/20. The Grant Review Committee recommends funding $2,000. 2.Coachella Valley Volunteers in Medicine (CVVIM) is requesting $5,000 to be used to offset direct and indirect costs associated with medical and dental care provided at no-charge to low-income adult La Quinta residents. Services include available specialty care, and any laboratory testing, diagnostics or imaging services necessary for their treatment. An average cost per visit is $135. This organization was last funded $5,000 in 2017/18. The Grant Review Committee recommends funding $5,000. 3.Desert Sands Educational Foundation (DSEF) is requesting $5,000 to be used for the 3rd annual CAMFest for advanced promotional materials, social media advertisement, event signs and programs, sheltered displays and fully-equipped stages. DSEF is a first-time applicant to the Community Services Grant program. The Grant Review Committee recommends funding $2,500. 4.Elder Love USA, Inc. is requesting $3,000 to fund direct target advertising through The Gem that will reach La Quinta residents and optimize their impact. This organization provides in home services such as cooking, dressing, transportation, housekeeping, medication management, pet care, etc. to older adults who need caregiving services at a low hourly rate. Elder Love USA, Inc. received a Starter Grant for $500 in 2018/19 and are eligible to apply for grant for 2019/20. The Grant Review Committee recommends funding $2,000. 5.FIND Food Bank is requesting $5,000 to be used to support FIND’s mobile pantry that supplies fresh produce in La Quinta. Food is distributed the fourth Saturday of each month at La Quinta Community Fitness Center & Park site. This organization was last funded $5,000 in 2011/12. The Grant Review Committee recommends funding $3,000. ATTACHMENT 2 173 6.Pegasus Therapeutic Riding is requesting $5,000 to support costs for children from Ben Franklin Elementary Special Ed classes to receive equine therapy. The cost is $903 per child; there are currently 14 children from Ben Franklin who are participating in this program. Pegasus Therapeutic Riding is a first-time applicant to the Community Services Grant program. The Grant Review Committee recommends funding $2,500. 7.Southland Events (Desert Triathlon) is requesting $5,000 to support marketing efforts to reach a larger audience to increase athlete participation for the annual Desert Triathlon. This event takes place the first weekend in March each year at Lake Cahuilla. Southland Events is a first-time applicant to the Community Services Grant program. The Grant Review Committee recommends funding $2,500. 8.YMCA of the Desert is requesting $5,000 to be used for the Y Be Fit Palm Desert Challenge that will be held on Sunday, October 6, 2019. This event will consist of a 5K, Mini Reverse Triathlon and the Color Run. Proceeds collected will help the tuition assistance program for children in the Coachella Valley. The City of La Quinta will have a participation booth to promote the health and wellness programs and activities happening in La Quinta. This organization was last funded $5,000 in 2017/18. The Grant Review Committee recommends funding $1,500. Grant Requests not recommended for funding and/or did not meet the criteria in the Grant Guidelines include: 9.Habitat for Humanity of the Coachella Valley (HFHCV) is requesting $5,000 to support their Housing Insecurity Prevention Program which offers a multi-faceted approach to reduce the risks of housing and financial insecurity. Components include: 1) New Home Construction; 2) A Brush with Kindness; 3) Emergency Household Needs Assistance; and 4) Linkages and Referrals. The program will serve a minimum of 300 low-income adults and children. This organization was last funded $5,000 in 2016/17. The Grant Review Committee does not recommend funding this organization at this time. 10.Osher Lifelong Learning Institute (OLLI) is requesting $5,000 to support scholarships for 2 undergraduate students to travel with OLLI members on two separate trips scheduled for 2019-20. This program is part of the multigenerational travel initiative that is a partnership between the university leadership, CSUSB Foundation, and OLLI members. This organization was last funded $2,700 in 2010/11. The Grant Review Committee does not recommend funding this organization at this time. 174 City of La Quinta CITY COUNCIL MEETING: October 1, 2019 STAFF REPORT AGENDA TITLE: ADOPT RESOLUTION TO RECLASSIFY THE CITY ENGINEER POSITION TO PUBLIC WORKS DIRECTOR/CITY ENGINEER, AMEND THE TITLE AND CLASSIFICATION OF THE FACILITIES DIRECTOR POSITION TO FACILITIES DEPUTY DIRECTOR, AND APPROVE THE PUBLIC WORKS DIRECTOR/CITY ENGINEER EMPLOYMENT AGREEMENT RECOMMENDATION Adopt a Resolution to reclassify the City Engineer to Public Works Director/City Engineer, amend the title and classification of the Facilities Director position to Facilities Deputy Director, and approve the Public Works Director/City Engineer Employment Agreement with Bryan McKinney effective October 12, 2019; and authorize the City Manager to execute the agreement. EXECUTIVE SUMMARY The reclassification of the City Engineer to a Public Works Director/City Engineer and approval of a new Employment Agreement (Attachment 1) will allow for the creation of a Public Works/Engineering Department (Attachment 2). Amending the vacant Facilities Director position to Facilities Deputy Director will provide the new Public Works/Engineering Department a level of oversight for the Facilities, Parks/Landscape & Lighting, Street Maintenance, and Traffic Operations divisions. The Authorized Position Plan would stay at 95 full time positions. FISCAL IMPACT The reclassification and amendment result in an annual salary and benefit savings of approximately $28,100 as follows: POSITION COST/SAVINGS Reclassify City Engineer to Public Works Director/City Engineer $8,600 Amend Facilities Director position to Facilities Deputy Director $(36,700) Net Cost (Savings) $(28,100) BUSINESS SESSION ITEM NO. 2 175 BACKGROUND/ANALYSIS A recent review of staffing in the Design & Development department has identified a need to create a Public Works/Engineering Department. This department would house the following divisions: Capital Improvement Program Engineering Facilities Parks/Landscape & Lighting Street Maintenance Traffic Operations Staff is requesting reclassification of the City Engineer to a Public Works Director/City Engineer to oversee the department. Creating the Public Works Director position eliminates the need to fill the current Facilities Director position. Although there will not be a need for a Facilities Director, staff believes that having a position to oversee Facilities, Parks/Landscape & Lighting, Street Maintenance, and Traffic Operations is needed. This can be accomplished by amending the Facilities Director title and classification to Facilities Deputy Director. The City’s Classification Plan and Salary Schedule establish job classifications and salary schedules. The Plan and Schedule were adopted via Council resolution and amendments require Council action. ALTERNATIVES Council could elect to delay, modify, or reject the requested revisions. Prepared by: Angela Scott, Human Resources/Risk Manager Approved by: Chris Escobedo, Community Resources Director Attachments: 1. Employment Agreement 2. Public Works/Engineering Organization Chart 176 RESOLUTION NO. 2019 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, RECLASSIFYING THE CITY ENGINEER POSITION TO PUBLIC WORKS DIRECTOR/CITY ENGINEER, AND AMEND THE TITLE AND CLASSIFICATION OF THE FACILITIES DIRECTOR POSITION TO FACILITIES DEPUTY DIRECTOR WHEREAS, the City Council previously approved and adopted the 2019/20 Classification Plan; and WHEREAS, the City’s Personnel Policy Section 3.1, Preparation and Amendment of Classification Plan, requires amendments to the Classification Plan be adopted by a Resolution of the City Council; and WHEREAS, the reclassification of the City Engineer position to Public Works Director/City Engineer will allow for the creation of a Public Works/Engineering Department; and WHEREAS, amending the vacant Facilities Director position to Facilities Deputy Director will provide the new Public Works/Engineering Department a level of oversite for the Facilities, Parks/Landscape and Lighting, Street Maintenance, and Traffic Operations divisions. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: SECTION 1. The City does hereby approve and adopt the revisions to the Classification Plan consisting of Authorized Positions and Fiscal Year 2019/20 Salary Schedule, attached hereto as Exhibit A and incorporated herein by reference. PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City Council held on this 1st day of October 2019, by the following vote: AYES: NOES: ABSENT: 177 Resolution No. 2019- Reclassifications Adopted: October 1, 2019 Page 2 of 2 ABSTAIN: _______________________ LINDA EVANS, Mayor City of La Quinta, California ATTEST: __________________________ MONIKA RADEVA, City Clerk City of La Quinta, California (CITY SEAL) APPROVED AS TO FORM: ___________________________ WILLIAM H. IHRKE, City Attorney City of La Quinta, California 178 CITY OF LA QUINTA AUTHORIZED POSITIONS EFFECTIVE OCTOBER 12, 2019 AUTHORIZED WORKING TITLE RATING ALLOCATED Administrative Administrative Assistant Administrative Assistant A11 6 Administrative Technician Administrative Technician B21 2 Executive Assistant B22 1 Code Administration Code Administration Technician Building Inspector I B22 1 Code Compliance Officer I B22 1 Permit Technician B22 5 Code Administration Specialist Building Inspector II B23 2 Code Compliance Officer II B23 4 Construction Inspector B23 2 Plans Examiner B24 1 Code Administration Supervisor Animal Control/Code Compliance Supervisor B32 1 Plans Examiner/Inspection Supervisor B32 1 Code Administration Coordinator Assistant Construction Manager C42 1 Construction Manager/Inspection Supervisor C43 1 Maintenance & Operations Maintenance & Operations Worker Maintenance Worker I A11 6 Maintenance Worker II A12 3 Maintenance & Operations Technician Traffic Signal Technician B21 2 Maintenance & Operations Technician B23 2 Maintenance & Operations Coordinator Maintenance Foreman B24 2 Parks/L&L Foreman B24 1 Maintenance & Operations Superintendent Maintenance & Operations Superintendent B32 1 Management Administration Management Assistant Community Resources Coordinator B21 1 Management Assistant B21/B22 6 Account Technician B22 2 Management Specialist Community Resources Specialist B24 1 Deputy City Clerk B24 1 Junior Accountant B24 1 Management Specialist B24/B25 6 Accountant B25 1 Management Coordinator C41 Management Analyst Associate Planner C42 1 Community Resources Analyst C42 1 Sr. Emergency Management Coodinator C42 1 Financial Services Analyst C42 1 Human Resources Analyst C42 1 Management Analyst C42/C43 5 Public Safety Analyst C42 1 Senior Accountant C42 1 Traffic Operations Analyst C42 1 Associate Engineer C43 1 Senior Planner C44 1 Management Manager Assistant to the City Manager D61 1 Building Official D61 1 Community Resources Manager D61 1 Hub Manager D61 1 Human Resources Manager D61 1 Marketing Manager D61 1 Planning Manager D61 1 Public Safety Manager D61 1 City Clerk D62 1 Facilities Deputy Director D63 1 City Engineer D65 Director Community Resources Director E82 1 Design & Development Director E82 1 Facilities Director E82 Finance Director/Treasurer E82 1 Public Works Director/City Engineer E82 1 City Manager City Manager F101* 1 95 CLASSIFICATION SPECIFICATION * City Manager salary is determined by City Council contract RESOLTUION NO. 2019-XXX EXHIBIT A 179 180 2019/20 Salary ScheduleWORKING TITLEDBM STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 STEP 9 STEP 10Administrative AssistantMaintenance Worker IA11 $ 38,741.77 $ 40,678.86 $ 42,615.94 $ 44,553.03 $ 46,490.12 $ 48,067.64 $ 49,645.16 $ 51,222.68 $ 52,800.20 $ 54,377.72 Maintenance Worker II A12 $ 42,624.17 $ 44,755.38 $ 46,886.59 $ 49,017.80 $ 51,149.00 $ 52,884.59 $ 54,620.18 $ 56,355.77 $ 58,091.36 $ 59,826.95 Administrative TechnicianCommunity Resources CoordinatorManagement AssistantTraffic Signal TechnicianB21 $ 50,400.62 $ 52,920.65 $ 55,440.68 $ 57,960.71 $ 60,480.74 $ 62,533.09 $ 64,585.44 $ 66,637.79 $ 68,690.14 $ 70,742.49 Account TechnicianBuilding Inspector ICode Compliance Officer IExecutive AssistantManagement AssistantPermit TechnicianB22 $ 54,283.01 $ 56,997.16 $ 59,711.31 $ 62,425.46 $ 65,139.61 $ 67,350.03 $ 69,560.45 $ 71,770.87 $ 73,981.29 $ 76,191.71 Building Inspector IICode Compliance Officer IIConstruction InspectorMaintenance & Operations TechnicianB23 $ 58,165.41 $ 61,073.69 $ 63,981.96 $ 66,890.23 $ 69,798.50 $ 72,166.99 $ 74,535.48 $ 76,903.97 $ 79,272.46 $ 81,640.94 Deputy City ClerkJunior AccountantMaintenance ForemanManagement SpecialistParks/L&L ForemanPlans ExaminerB24 $ 63,517.31 $ 66,693.18 $ 69,869.04 $ 73,044.91 $ 76,220.77 $ 78,807.14 $ 81,393.51 $ 83,979.88 $ 86,566.25 $ 89,152.63 AccountantManagement SpecialistB25 $ 70,103.01 $ 73,608.16 $ 77,113.31 $ 80,618.46 $ 84,123.61 $ 86,978.27 $ 89,832.93 $ 92,687.59 $ 95,542.25 $ 98,396.92 Animal/Code Officer SupervisorMaintenance & Operations SuperintendentPlans Examiner/Inspector SupervisorB32 $ 70,103.01 $ 73,608.16 $ 77,113.31 $ 80,618.46 $ 84,123.61 $ 86,978.27 $ 89,832.93 $ 92,687.59 $ 95,542.25 $ 98,396.92 WORKING TITLEDBM STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 STEP 9 STEP 10 STEP 11 STEP 12 STEP 13 STEP 14Assistant Construction ManagerAssociate PlannerCommunity Resources AnalystSr. Emergency Management CoordinatorFinancial Services AnalystHuman Resources AnalystManagement AnalystPublic Safety AnalystSenior AccountantTraffic Operations AnalystC42 $ 76,782.29 $ 79,981.81 $ 83,181.32 $ 86,380.84 $ 89,580.36 $ 92,776.04 $ 95,977.86 $ 98,761.22 $ 101,544.58 $ 104,327.94 $ 107,111.30 $ 109,894.66 $ 112,678.02 $ 115,461.35 Associate EngineerConstruction Manager/Inspection SupervisorC43 $ 80,992.91 $ 84,367.89 $ 87,742.86 $ 91,117.84 $ 94,492.81 $ 97,863.74 $ 101,241.14 $ 104,177.13 $ 107,113.12 $ 110,049.11 $ 112,985.10 $ 115,921.09 $ 118,857.08 $ 121,793.08 Senior PlannerC44 $ 86,265.68 $ 89,860.37 $ 93,455.06 $ 97,049.76 $ 100,644.45 $ 104,234.82 $ 107,832.10 $ 110,959.23 $ 114,086.36 $ 117,213.49 $ 120,340.62 $ 123,467.75 $ 126,594.88 $ 129,722.00 Assistant to the City ManagerBuilding OfficialCommunity Resources ManagerHub ManagerHuman Resources ManagerMarketing ManagerPlanning ManagerPublic Safety ManagerD61 $ 97,860.71 $ 101,938.57 $ 106,016.43 $ 110,094.28 $ 114,172.14 $ 118,245.10 $ 122,325.89 $ 125,873.34 $ 129,420.79 $ 132,968.24 $ 136,515.69 $ 140,063.14 $ 143,610.59 $ 147,158.03 City ClerkD62 $ 102,753.75 $ 107,035.50 $ 111,317.25 $ 115,599.00 $ 119,880.74 $ 124,157.36 $ 128,442.19 $ 132,167.01 $ 135,891.83 $ 139,616.65 $ 143,341.47 $ 147,066.29 $ 150,791.11 $ 154,515.95 Facilities Deputy DirectorD63 $ 107,891.44 $ 112,387.27 $ 116,883.11 $ 121,378.94 $ 125,874.78 $ 130,365.22 $ 134,864.30 $ 138,775.36 $ 142,686.42 $ 146,597.48 $ 150,508.54 $ 154,419.60 $ 158,330.66 $ 162,241.75 City EngineerD65 $ 117,877.00 $ 122,788.94 $ 127,700.87 $ 132,612.81 $ 137,524.74 $ 142,430.78 $ 147,346.25 $ 151,619.29 $ 155,892.33 $ 160,165.37 $ 164,438.41 $ 168,711.45 $ 172,984.49 $ 177,257.53 Community Resources DirectorDesign & Development DirectorFacilities DirectorFinance Director/City TreasurerPublid Works Director/City EngineerE82 $ 129,959.40 $ 135,374.81 $ 140,790.22 $ 146,205.63 $ 151,621.04 $ 157,029.95 $ 162,449.25 $ 167,160.27 $ 171,871.29 $ 176,582.31 $ 181,293.33 $ 186,004.35 $ 190,715.37 $ 195,426.42 City ManagerF101* $ 176,822.32 $ 184,190.51 $ 191,558.69 $ 198,926.88 $ 206,295.06 $ 213,654.41 $ 221,027.90 $ 227,437.70 $ 233,847.50 $ 240,257.30 $ 246,667.10 $ 253,076.90 $ 259,486.70 $ 265,896.53 Per MeetingMonthly Recreation LeaderA01$12.04$12.64$13.24$13.84$14.44$0.00$2,800.00Senior Recreation LeaderA02$16.05$16.85$17.65$18.46$19.26$50.00$2,300.00Administrative Technician B21$24.23$25.44$26.65$27.87$29.08$75.00Software Program Report WriterB24$30.54$32.06$33.59$35.12$36.64$100.00Planning Commission FULL-TIME EMPLOYEES (ANNUAL)Council MembersBoards and Commission MembersConstruction Appeals & Oversight BoardHousing CommissionCommunity Services & Financial Advisory NON-DISCRETIONARY STEPSDISCRETIONARY STEPS (PERFORMANCE BASED)NON-DISCRETIONARY STEPSDISCRETIONARY STEPS (PERFORMANCE BASED)PART-TIME EMPLOYEES (HOURLY)Elected Official PositionsMayor City Council Approval - 07/16/19, 10/01/19Effective - 06/22/19Revised 10/01/19 181 182 CLASS SPECIFICATION Manager Rev. February October 2019 1 CLASS SERIES BAND/GRADE/SUBGRADE FLSA STATUS Management D61 – D65 Exempt CLASS SUMMARY: This is the first level in a three-level Management Classification Series. Managers oversee divisions and make interpretive decisions on behalf of the organization regarding the means for executing the goals established by the relevant leader, regulatory body or governing body, subject to constraints imposed by available technology and resources. Such interpretive decisions provide context for the work to be accomplished by subordinates supervised within the unit and/or designated programs managed. Incumbents are responsible for the management of functions and budget associated with an assigned unit/designated program and may be responsible for the supervision of professional, technical and administrative support staff assigned to the unit. Based upon assignment, managers may administer units/designated programs with administrative functions requiring differing levels of risk to the organization while providing for the across-the-board first level management necessary to execute the process and projects of the organization. DISTINGUISHING CHARACTERISTICS: Positions assigned to this classification are responsible for assisting in the management and direction of a department by supervising/overseeing the work of a City division. As assigned, incumbents supervise staff including conducting performance evaluations; coordinating training; and implementing hiring, discipline and termination procedures. ESSENTIAL DUTIES: This class specification represents only the core areas of responsibilities; specific position assignments will vary depending on the needs of the department. Oversees the development and implementation of programs, policies and procedures for the division. Supervises staff, as assigned, to include: prioritizing and assigning work; conducting performance evaluations; ensuring staff are trained; ensuring that employees follow policies and procedures; maintaining a healthy and safe working environment; and making hiring, termination and disciplinary recommendations. Administers and monitors the division’s budget, including allocating resources and approving expenditures. Assists the Director in developing and implementing department policies and procedures. Attends required meetings with the department director, city manager, other city departments; other regulatory entities; public boards and commissions; reviews and prepares reports, agenda items and other official correspondence for city council and/or assigned boards/commissions; creates and makes presentations to community organizations and city boards and commissions. Performs other duties of a similar nature and level as assigned. POSITION SPECIFIC RESPONSIBILITIES: Positions assigned to Assistant to the City Manager may also be responsible for: 183 CLASS SPECIFICATION Manager Rev. February October 2019 2  Serving as the City’s Economic Development Manager;  Serving as the Housing Authority Coordinator;  Fostering intergovernmental, council, and community relations;  Overseeing significant (large/citywide) special projects;  Coordinating and managing the City’s Business Unit including legislative advocacy, grant procurement, waste, franchise agreements, and information technology functions;  Coordinating communications activities to foster understanding of City-wide vision, strategic priorites, program goals, and services among the public and City employees; and  Working closely with the Design & Development Department, facilitating opportunities and partnerships with the community and businesses. Positions assigned to Building Official may also be responsible for:  Review of building and construction plans for proper design and conformance with codes and ordinances;  Approval and certification of final inspections;  Investigating complaints and potential violations of building codes/hazards and issuing non-compliance notices; and  Non-structural plan checking and coordination of same. Positions assigned to City Clerk may also be responsible for:  Performing all statutory duties of the City Clerk as set forth in the California Government Code and La Quinta Municipal Code;  Attending all meetings of the City Council/Successor Agency/Oversight Board/Financing Authority/Housing Authority and recording minutes thereof;  Directing the preparation of/preparing agendas, resolutions, ordinances and written materials for the City Council/Successor Agency/Financing Authority/Housing Authority/Oversight Board;  Directing citywide editing and research services;  Providing administrative support to the City Council and City Manager;  Maintaining all official records of the city and the city’s records management system;  Conducting recruitment for boards/commissions;  Conducting municipal elections and serving as Elections Official;  Maintaining the municipal code; and  Acting as Notary Public. Positions assigned to City Engineer may also be responsible for:  Serving as the City’s NPDES Coordinator, ensuring compliance and reporting with NPDES permits;  Serving as the City’s Floodplain Manager to ensure compliance with state and federal flood plain requirements;  Providing engineering support for all development entitlements from preliminary project review to writing conditions of approval; and  Plan check all improvement plans, hydrology studies, WQMPs and land actions. 184 CLASS SPECIFICATION Manager Rev. February October 2019 3 Positions assigned to Community Resources Manager may also be responsible for:  Contract management of the City’s marketing strategies (print and electronic);  Contract management for the Library and Museum operations;  Preparing and managing recreation, wellness and large-scale community events;  Operation and management of the La Quinta Wellness Center and programs;  Strategic planning and development of economic development efforts of the Business Unit and partnership between relationships with city businesses and community;  Oversight of the La Quinta Arts Foundation and La Quinta Chamber of Commerce agreements; and  Overseeing Citywide Information Technology functions, contracts and expenditures. Positions assigned to Facilities Deputy Director may also be responsible for:  Oversight and management of City Facilities, Park/Landscape & Lighting, Street Maintenance, and Traffic Operations divisions;  Contract management for the operation and maintenance of all City Facilities, Park Maintenance, Landscape & Lighting District, Street Maintenance, and Traffic Operations;  Management of the City’s Fleet Maintenance and Graffiti Abatement programs;  Interpretation and implementation of plans, manuals and specifications;  Periodic inspections of facilities (i.e. facilities, parks, streets, and rights-of-way);  Participation in plan review of new development, capital improvement programming and value engineering studies;  Development and implementation of staff safety training and safe work practices; Positions assigned to Hub Manager may also be responsible for:  Strategic development and implementation of the TRAKit and E-TRAKit software;  Coordinating efforts with other departments and divisions on integration of all Customer Service Center functions and services;  Coordinating with Development, Building & Planning on TRAKit and E-TRAKit integration into plan check, plan review and inspections efforts;  Overseeing the customization and integration of Short Term Vacation Rentals to manage business licenses, permits and TOT collection; and  Providing data regarding the Business and Building development. Positions assigned to Human Resources Manager may also be responsible for:  Developing, maintaining and/or implementing affirmative action plan, classification/compensation and employee benefit programs, employee training and development programs, performance management, recruitment and selection processes, and risk management/safety programs and associated insurance;  Assisting with the conduct of internal investigations or employee grievances and recommending course of action; and  Representing the city in collective bargaining, including development and costing of proposals. 185 CLASS SPECIFICATION Manager Rev. February October 2019 4 Positions assigned to Marketing Manager may also be responsible for:  Manages and controls all marketing and branding assets through multiple vendors and City services.    Leads public information for the City and community. Creation and execution of City news, urgencies and services to the community.    Leads the promotion of the City’s Economic Development services by working with the Assistant to the City Manager as well as the businesses in the City.    Controls all internal department brands to ensure all City brand standards are met. Creates and reviews department collateral assets both internally and externally.    Manages and leads City’s tourism programs and services.    Interprets, advises, and understands council’s requests to create quicker and efficient responses. Positions assigned to Planning Manager may also be responsible for:  Overseeing the historic preservation, archaeological and paleontological provisions of the municipal code;  Assisting with the preparation of development standards;  Overseeing and assisting with the Planning Division’s participation in the development review process including reviewing subdivision plans for compliance with the General Plan and zoning ordinances; and  Investigating and/or assisting with the resolution of planning problems, zoning changes, text amendments, and language for specific plans and the General Plan. Positions assigned to Public Safety Manager may also be responsible for:  Overseeing the Police, Fire and Emergency Operations functions with Riverside County;  Overseeing the Code Compliance and Animal Control programs to include strategic community outreach and education;  Administering the City’s neighborhood vitalization efforts through code compliance and public safety partners;  Managing the City’s grants portfolio including securing grants, procurement, and reconciliation with financial policies and Finance Department; and  Overseeing the City’s franchise service providers for customer issues, revenue calculations, and liaison on emergency related matters. TRAINING AND EXPERIENCE: Bachelor’s degree and five (5) years’ experience related to area of assignment. Or an equivalent combination of education and experience sufficient to successfully perform the essential duties of the job such as those listed above. 186 CLASS SPECIFICATION Manager Rev. February October 2019 5 LICENSING/CERTIFICATIONS:  As assigned, valid California Driver’s License may be required.  As assigned, California Professional Engineer (PE) License or ability to acquire it within one year of employment.  As assigned, certification as a Building Inspector from the International Conference of Building Officials (ICBO) or equivalent.  As assigned, Certified Public Accounting (CPA) license desired, but not required.  Other professional certifications related to assignment deemed desirable at time of recruitment. KNOWLEDGE OF:  Managerial principles;  Supervisory principles;  Business administration principles;  Budgetary principles;  Applicable local, state and federal laws, rules and regulations;  Modern office equipment;  Organizational structure of the city and city services as they relate to area of assignment;  Safe working practices, procedures and regulations;  Customer service principles; and  Contract preparation, administration and service evaluation. Positions assigned to City Clerk also require knowledge of:  The Brown Act, Political Reform Act and California Elections Codes; and  Principles and practices related to municipal records management. Positions assigned to Human Resources/Risk Management also require knowledge of:  Modern human resources principles, methods, practices and techniques including labor relations, employee relations, risk management, injury prevention, workers’ compensation, absence management, recruitment, selection, staff development and training, classification, compensation, benefits administration, health and safety; and  Project management and research methodology. Positions assigned to Maintenance also require knowledge of:  Maintenance operations, project management and cost control methods;  Pavement management systems and applicability to pavement maintenance; and  Landscaping practices, including scheduling, parks maintenance, turf management and pest control. Positions assigned to Planning also require knowledge of:  Principles, methods, practices and techniques of urban planning and development including demographic, environmental, social and economic land use concepts; and  Statistical and research methodology. 187 CLASS SPECIFICATION Manager Rev. February October 2019 6 Positions assigned to Engineering also require knowledge of:  Advanced principles and practices of civil and structural engineering;  Administration as applied to the design and construction of public works facilities and technical inspection services;  All types of building construction materials and methods, and of stages of construction when possible violations and defects may be most easily observed and corrected;  City building and zoning codes and related laws and ordinances; and  The California Subdivision Map Act. SKILL IN:  Supervising and evaluating employees;  Prioritizing and assigning work;  Assisting in the direction and management of operations;  Negotiating and conflict resolution;  Exercising independent judgment within organizational and legal frameworks;  Problem-solving, analysis and decision-making;  Applying local, state and federal laws, rules and regulations;  Public speaking;  Mathematical computations required for public budgeting, accounting and forecasting;  Operating a computer and relevant software applications;  Operating modern office equipment;  Communication, interpersonal skills as applied to interaction with subordinates, coworkers, supervisor, the general public, etc. sufficient to exchange or convey information, evaluate performance and provide and/or receive work direction. ADA AND OTHER REQUIREMENTS: Positions in this class typically require: sitting, standing, walking, fingering, grasping, talking, hearing, seeing and repetitive motions. Positions involved in leadership of a field assignment may also require occasional pushing, pulling, lifting, crouching, stooping or crawling. Sedentary Work: Exerting up to 10 pounds of force occasionally and/or a negligible amount of force frequently or constantly to lift, carry, push, pull or otherwise move objects, including the human body. Sedentary work involves sitting most of the time. Jobs are sedentary if walking and standing are required only occasionally and all other sedentary criteria are met. NOTE: The above job description is intended to represent only the key areas of responsibilities; specific position assignments will vary depending on the business needs of the department. 188 CLASS SPECIFICATION Director Rev. Jan. 2016 October 2019 1 CLASS SERIES BAND/GRADE/SUBGRADE FLSA STATUS Management E81 – E82 Exempt CLASS SUMMARY: This is the second level in a three-level Management Series. Directors apply advanced management principles with critical impact on citizens and the organization. Incumbents exercise strategic and visionary thinking; have long-term organization-wide application and impact; develop and implement programs critical to the city; and exercise control and supervision of multiple assigned functions and/or divisions and significant resources. Responsibility crosses multiple functional units within the organization comprising a designated department. Positions will usually have responsibility for program outcomes. DISTINGUISHING CHARACTERISTICS: Department Directors exercise overall responsibility for policy development, program planning, fiscal management, administration and operation of a department; are responsible for providing professional and technical assistance to senior management staff, the City Manager, various committees, commissions and the City Council; and coordinate activities with other departments. Incumbents supervise staff including conducting performance evaluations, coordinating training; and implementing hiring, discipline and termination procedures. ESSENTIAL DUTIES: This class specification represents only the core areas of responsibilities; specific position assignments will vary depending on the needs of the department.  Directs the activities of the department to include overseeing the development and administration of policies, procedures, programs, goals and objectives and presents them to the City Manager and City Council as necessary.  Supervises staff to include: prioritizing and assigning work; conducting performance evaluations; ensuring staff are trained; ensuring that employees follow policies and procedures; maintaining a healthy and safe working environment; and making hiring, termination and disciplinary decisions.  Administers and monitors the department budget including allocating resources and approving expenditures.  Attends City Council meetings; develops comprehensive reports and recommendations for the City Manager and executive staff; prepares and/or reviews agenda items; attends other required meetings with city manager, city staff, other regulatory entities, etc.  Represents the city to citizens, public and private agencies; responds to/resolves difficult or complex inquiries and complaints.  Develops, reviews and/or recommends approval of policies, procedures, plans, ordinances, reports, budget estimates, etc.  Performs other duties of a similar nature and level as assigned. POSITION SPECIFIC RESPONSIBILITIES: 189 CLASS SPECIFICATION Director Rev. Jan. 2016 October 2019 2 Positions assigned to Community Resources may also be responsible for:  Contract management for Information Technology, Police, Fire Safety and Emergency Services contracts, Library and Museum contract, waste and franchise agreements;  Preparing and recommending strategic efforts for the citywide recreation and wellness programs and facilities;  Fostering intergovernmental, council and community relations; oversight of significant (large scale) community projects;  Overseeing Human Resources efforts including class and compensation and employee development and relations;  Directing City-wide marketing strategies (print and electronic) and contracts; and  Overseeing the Code Compliance and Animal Control programs. Positions assigned to Design and Development may also be responsible for:  Overseeing contracted and in-house engineering plan review, design, surveying and inspection;  Overseeing Capital Improvement Plan, construction, operations and maintenance activities;  Recommending approval of plans and engineering reports;  Preparing the Annual Engineer’s Report for the Landscape and Lighting District;  Planning and operations for Transportation Division;  Overseeing flood plain administration and stormwater quality compliance;  Overseeing the Pavement Management Program;  Preparing, revising and administering the Building Code, Zoning Ordinance, Official Zoning Map, General Plan and other Specific Plans;  Recommending development standards and approval of proposed development projects and subdivision plans;  Administering the City’s Customer Center, including business licenses and the short- term vacation rental program; and  Creating, revising and monitoring development-related processes, applications, forms and fees. Positions assigned to Public Works/Engineering may also be responsible for:  Providing a strategic plan and setting policies and procedures for the Public Works Department;  Overseeing contracted and in-house engineering plan review, design, surveying and inspection;  Overseeing Capital Improvement Plan, construction, operations and maintenance, traffic and private development engineering divisions;  Approval of plans, specifications and engineering reports;  Preparing the Annual Engineer’s Report for the Landscape and Lighting District;  Planning and operations for Transportation Division;  Overseeing flood plain administration and stormwater quality compliance, including Serving as the Legally Responsible Person for projects covered under the Statewide General Construction Storm Water Permit;  Overseeing the Pavement Management Program; and 190 CLASS SPECIFICATION Director Rev. Jan. 2016 October 2019 3  Oversight of the City Traffic Engineer including disposition of resident requests and city-wide speed surveys. Positions assigned to Facilities may also be responsible for:  Preparing and recommending strategic plans for department services and facilities;  Contract management for the operation and maintenance of City facilities/programs, Library/Museum Services, Golf Operations, Street Maintenance, Parks Maintenance, and the Lighting & Landscape District;  Overseeing the operations and management of the Citys’ golf development, public works division, parks division, and buildings division;  Serving as liaison between City and its golf course management firm including coordinating and reviewing work, inspecting facilities, evaluating service provided, and reporting to City Council;  Coordinating park, recreational, and facility activities with fellow staff as well as community groups, sports associations, other municipalities and utilities;  Participation in plan review of new development, capital improvement programming and value engineering studies; for the golf development, public works, parks and recreation sites, and buildings; and  Managing and maintaining the City’s motorpool. Positions assigned to Finance/Treasurer may also be responsible for:  Developing/monitoring the budget, collecting and disbursing revenues, accounting, financial reporting and auditing;  Ensuring proper financial procedures and controls are implemented and used;  Coordinating the purchase, storage, and issuance of supplies, materials and equipment;  Administering property and inventory records, investment programs and cash flow; and  Serving as Chief Fiscal Officer of the City and as Treasurer pursuant to the Government Code of the State of California and the La Quinta Municipal Code. TRAINING AND EXPERIENCE: Bachelor’s degree and five (5) years’ experience related to area of assignment including three (3) years of leadership experience. Or an equivalent combination of education and experience sufficient to successfully perform the essential duties of the job such as those listed above. LICENSING/CERTIFICATIONS:  As assigned, valid California Driver’s License may be required.  As assigned, CaliforniaProfessional Engineer (PE) License or ability to acquire it within one year of employment, or other professional certifications related to assignment deemed desirable at time of recruitment. SKILL IN:  Supervising and evaluating employees; 191 CLASS SPECIFICATION Director Rev. Jan. 2016 October 2019 4  Prioritizing and assigning work;  Negotiating and conflict resolution;  Exercising independent judgment within organizational and legal frameworks;  Problem-solving, analysis and decision-making;  Preparing complex reference materials, manuals, reports, rules, laws, regulations and other items;  Applying local, state and federal laws, rules and regulations;  Public speaking;  Mathematical computations required for public budgeting, accounting and forecasting;  Operating modern office equipment;  Operating a computer and relevant software applications; and  Communication, interpersonal skills as applied to interaction with subordinates, coworkers, supervisor, the general public, etc. sufficient to exchange or convey information, evaluate performance and provide and/or receive work direction. ADA AND OTHER REQUIREMENTS: Positions in this class typically require: sitting, standing, walking, fingering, grasping, talking, hearing, seeing and repetitive motions. Sedentary Work: Exerting up to 10 pounds of force occasionally and/or a negligible amount of force frequently or constantly to lift, carry, push, pull or otherwise move objects, including the human body. Sedentary work involves sitting most of the time. Jobs are sedentary if walking and standing are required only occasionally and all other sedentary criteria are met. NOTE: The above job description is intended to represent only the key areas of responsibilities; specific position assignments will vary depending on the business needs of the department. 192 Page 1 of 9 AT WILL EMPLOYMENT AGREEMENT This AT WILL EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into this ____ day of ________, 2019 (the “Effective Date”), by and between the City of La Quinta, a public body (the “City” or “Employer”), and Bryan W. McKinney, an individual (the “Employee”), both of whom understand as follows: WITNESSETH: WHEREAS, the City desires to employ the services of Employee as the Public Works Director/City Engineer as defined by the job description referenced herein; and WHEREAS, it is the desire of the City to establish certain conditions of employment and to set working conditions of Employee; and WHEREAS, Employee desires to accept employment as the Public Works Director/City Engineer of City. NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows: Section 1. Duties. Employer hereby agrees to employ said Employee as Public Works Director/City Engineer of said City to perform the functions and duties specified in the City of La Quinta CLASS SPECIFICATION – Director assigned to Public Works & Engineering and as provided by state or federal law, and to perform other legally permissible and proper duties and functions as the City Manager shall from time to time assign. Section 2. Term. A. Employee shall commence services as Public Works Director/City Engineer on October 12, 2019, which shall also be deemed the effective date of this Agreement. B. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the City Manager acting for the City to terminate the services of Employee at any time, with or without cause subject only to the provisions set forth in Section 4, paragraphs A and B, of this Agreement. Employee is an “AT WILL” employee serving at the pleasure of the City Manager and subject to summary dismissal without any right of pre- or post- ATTACHMENT 1 193 Page 2 of 9 termination hearing, or any other form of due process, including any Skelly hearing. C. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the Employee to resign at any time from his position with Employer, subject only to the provisions set forth in Section 4, paragraph E, of this Agreement. D. Employee, with prior written approval of the City Manager, may undertake outside professional activities for compensation, including consulting, teaching, speaking and writing provided they do not interfere with Employee’s normal duties and are done only during vacation or other unpaid time of Employee and are not done with any existing vendors or contractors of the City. Under no circumstances shall such outside activities create a conflict of interest with the duties of the Design & Development Director and the interests of the City. Section 3. Administrative Leave with Pay. Employer may place Employee on Administrative Leave with Pay at any time while employed under this Agreement. Employee shall be entitled to full pay and benefits during this time. However, if the purpose of placing Employee on Administrative Leave With Pay is to conduct an investigation into potential wrongdoing, and after that investigation, Employee is convicted of a crime involving abuse of his office or position, then pursuant to Government Code Section 53243, Employee shall be required to fully reimburse Employer for any salary or benefits received while on Administrative Leave With Pay. “Abuse of office or position” shall be as defined in Government Code Section 53243.4, as may be amended. Section 4. Discipline, Termination and Severance Pay. A. In the event Employee is terminated by the City Manager during such time that Employee is willing and able to perform his duties under this Agreement, Employee agrees that City Manager will furnish notice of termination at least thirty (30) days prior to the effective date of termination and Employer agrees to pay Employee a lump sum cash payment equal to six (6) month’s base salary. Pursuant to Government Code Section 53243.2, if Employee is later convicted of a crime involving abuse of office or position, then any severance paid under this Section 4.A shall be returned by Employee to Employer. B. Employee may be terminated at any time for willful misconduct or abuse of his office or position. The determination of what constitutes willful 194 Page 3 of 9 misconduct shall be within the sole discretion of the City Manager; provided that it shall relate to the welfare of the City. Willful misconduct includes conduct directly related to conduct in office and the duties in office. It includes the refusal to follow the lawful directions of the City Manager. It also includes conduct not directly related to the performance of the official duties of the office when such conduct has a direct and harmful effect on the welfare or reputation of the City. Evidence of such direct and harmful effects includes, but is not limited to, conviction of a felony or a crime of moral turpitude. Abuse of office or position shall be as defined in Government Code Section 53243.4, as may be amended. In the event that Employee is terminated for willful misconduct or abuse of office or position, Employer shall have no obligation to pay, and shall be prohibited from paying, the severance sum designated in Section 4.A above, or any severance sum at all. C. Nothing in this Agreement shall prohibit Employer from imposing discipline less than termination upon Employee, including written reprimands, suspensions, or reductions in pay. Employee shall not be entitled to any due process as a result of the implementation of discipline less than termination and imposing lesser discipline does not in any way change Employee’s At-Will status. D. In the event: (1) Employer, at any time while Employee is employed under this Agreement, reduces the salary or other financial benefits of Employee (other than a suspension of five (5) working days or less or a temporary reduction in salary of thirty (30) days or less) in a greater percentage than an applicable across-the-board reduction of all employees of Employer; or (2) Employer refuses, following written notice, to comply with any other provision benefiting Employee herein; or (3) Employee resigns following a formal suggestion by the City Manager that he resign, then Employee may elect to be “terminated” as of that time, and shall be entitled to the severance provisions of Section 4.A above. E. If Employee voluntarily resigns his position while employed under this Agreement, then Employee shall give Employer at least thirty (30) day advance written notice, unless the parties agree otherwise, and Employee shall not be entitled to any severance pay. Section 5. Disability. If Employee is permanently disabled or is otherwise unable to perform his duties because of sickness, accident, injury, mental incapacity or health for a period of six successive weeks beyond any accrued sick leave or for the legal duration of the Family & Medical Leave Act (whichever is greatest), Employer shall have the option to terminate this Agreement. Termination 195 Page 4 of 9 pursuant to this Section would not subject the City to payment of severance benefits as specified under Section 4 above. However, Employee shall be compensated for any accrued vacation, sick leave, holidays, administrative leave and other accrued benefits on the same basis as any other employee of the City pursuant to the Personnel Rules. Section 6. Salary. A. Employer agrees to pay Employee for his services rendered pursuant thereto at Step 6 of DBM Salary Rating E82 ($157,029.95 annually), as noted in the Fiscal Year 2019/20 salary schedule payable in equal installments at the same time as other employees of the Employer are paid. Salary may be adjusted in accordance with Section 6.B. hereinafter (if not at top step), or as adjustments are made to the Salary Schedule for all City employees. B. A probationary performance and salary evaluation shall be conducted six (6) months following the date of the initial hire based, in part, on Employee’s successful crafting and implementation the Performance-Based Metrics outlined on Exhibit A of this Agreement. An annual performance and salary evaluation shall be conducted during the annual evaluation period for all employees each year thereafter. All performance and salary evaluations shall be conducted in accordance with the City’s Personnel Rules. During the annual performance and salary evaluation, the City Manager and the Employee shall develop performance-based compensation metrics upon which the Employee’s performance and compensation adjustments shall be based. Section 7. Hours of Work. It is recognized that Employee must devote time outside the normal office hours to business of the Employer. Administrative leave shall be as provided in the City Personnel Rules and Section 8, below. Section 8. Vacation, Sick Leave and Administrative Leave. Employee shall accrue, and have credited to his personal account, vacation and sick leave as provided for the Public Works Director/City Engineer pursuant to the Personnel Rules. Employee shall receive eighty (80) hours of Administrative Leave per year in accordance with the Personnel Rules. Section 9. Other Benefits. 196 Page 5 of 9 Employee shall be provided with the same health, dental, vision, life insurance and retirement benefits as other general employees of the City. Employee may also receive an annual physical examination at City expense. Section 10. Other Terms and Conditions of Employment. A. The City Manager, in consultation with Employee, shall fix any such other terms and conditions of employment, as it may determine from time to time, relating to the performance of Employee, provided such terms and conditions are not inconsistent with or in conflict with the provisions of this Agreement, the City’s Municipal Code or any applicable state or federal law. B. All regulations and rules of the Employer relating to vacation and sick leave, retirement and pension system contributions, holidays and other fringe benefits and working conditions as they now exist or hereafter may be amended, shall also apply to Employee as they would to other full-time employees of Employer, in addition to the benefits specifically set forth herein for the benefit of Employee. Section 11. Sole Rights. The severance rights provided in Section 4.A shall constitute the sole and only entitlement of Employee in the event of termination, other than for willful misconduct or abuse of power or office, and Employee expressly waives any and all other rights except as provided herein. Section 12. Notices. Notices pursuant to this Agreement shall be given by: (1) email with verification of delivery; (2) facsimile transmission with confirmation; (3) personal delivery: (4) overnight delivery service with conformation; or (5) deposit in the custody of the United States Postal Service, postage prepaid, addressed as follows: EMPLOYER: CITY OF LA QUINTA 78-495 Calle Tampico La Quinta, CA 92253 EMPLOYEE: Bryan W. McKinney 47750 Adams Street #1114 La Quinta, CA 92253 Notice shall be deemed given as of the date of personal, overnight 197 Page 6 of 9 delivery, email, or facsimile service or as of the date of deposit of such written notice in the course of transmission in the United States Postal Service. Section 13. General Provisions. A. This Agreement shall constitute the entire agreement between the parties. No prior oral or written communications are incorporated herein. B. This Agreement shall be binding upon and inure to the benefit of the heirs at law and executors of Employee. C. If any provision, or any portion thereof, contained in this Agreement is held unconstitutional, invalid or unenforceable, the remainder of this Agreement, or portion thereof, shall be deemed severable, shall not be affected and shall remain in full force and effect. D. This Agreement may be signed in counterparts with signature pages transmitted by email, facsimile, personal delivery or overnight delivery, all of which will be treated as originals. 198 Page 7 of 9 IN WITNESS WHEREOF, the City of La Quinta has caused this Agreement to be dated, signed and executed in its behalf by its City Manager, and duly attested by its City Clerk, and the Employee has dated, signed and executed this Agreement, both in duplicate, to become effective as of the Effective Date. EMPLOYER: CITY OF LA QUINTA By: Jon McMillen, City Manager Date: ATTEST: Monika Radeva, City Clerk Date: APPROVED AS TO FORM: William H. Ihrke, City Attorney Date: EMPLOYEE: _________________________________ Bryan W. McKinney Date: 199 Page 8 of 9 Exhibit “A” Performance-Based Metrics Evaluate the Department processes and personnel. o Within 90 days 1.Evaluate personnel and processes and provide the City Manager with your analysis and recommendations 2.On-board the Deputy Facilities Director and Parks/Landscape Analyst and launch the south La Quinta Median Landscape refresh program. 3.Review the administrative staffs’ roles, responsibilities and offer perspectives/recommendation, including how administrative support is provided to Design and Development during the transition. 4.Review and discuss the Division Manager’s 90-day plans. o Within 180 days 1.Implement the recommendations generated from the personnel and process review. 2.Work with the Public Works Management Team to refine the Key Process Indicators (KPIs) and metrics of the entire CIP and maintenance processes. 3.Train Facilities staff in the request for proposal and contract agreement process. Review and provide recommendations on the Capital Improvement Projects (CIP) development/design and implementation processes. o Within 90 days 1.On-board the Assistant Construction Manager, and if necessary, recruit for Management Specialist position. 2.With input from the Construction Manager and management analyst, evaluate the CIP and engineering design and inspection in-house and consultant capabilities and provide the City Manager with recommendations. 3.Create a schedule prioritizing all design and construction projects for the fiscal year. 200 Page 9 of 9 o Within 180 days 1.Implement recommendations to the CIP and engineering inspection processes. Engage in the Highway 111 Corridor, CV Link and SilverRock Development Processes. o Within 90 days 1.Understand the scope, status and implementation activities. 2.Provide the City Manager with observations/recommendations. 3.Identify your role/responsibilities in each of these activities and embed. Refine your leadership style and skills. o Within 90 days - Work with consultant to define your Leadership Development Plan o Within 120 days - Show progress on your Leadership Development Plan. At 120 days define and present to the City Manager a new performance and development plan for the next 120 days. 201 202 PROPOSED PUBLIC WORKS/ENGINEERING DEPARTMENT City ManagerPublic Works Director/City Engineer Construction Manager Construction Inspector Construction Inspector VACANT Asst. Construction Mgr Associate Engineer Development Management Analyst Management Assistant Management Specialist VACANT Deputy Director Facilities Management Analyst Maintenance & Ops Technician Maintenance & Ops Coordinator Maintenance & Ops Worker I VACANT Parks/L&L Management Analyst Parks/L&L Foreman Maintenance & Ops Worker I Maintenance & Ops Worker I Maintenance & Ops Worker I Maintenance & Ops Worker I Management Assistant Traffic Operations Analyst Traffic Signal Technician Traffic Signal Technician Maintenance Management Analyst Maintenance Foreman Maintenance Worker II Maintenance & Ops Technician Maintenance Worker I Maintenance Worker II Maintenance Worker I ATTACHMENT 2 203 204 City of La Quinta CITY COUNCIL MEETING: October 1, 2019 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE ANNUAL REPORT OF ACTIVE DEVELOPMENT AGREEMENTS RECOMMENDATION Receive and file annual report of active development agreements. EXECUTIVE SUMMARY The La Quinta Municipal Code requires annual Council review of active development agreements (DA). Five active development agreements were identified; Centre Pointe, Legacy Villas, Village Park Animal Hospital, Signature at PGA West, and SilverRock Resort development projects. The Centre Pointe development is currently out of compliance and under the terms of the DA, they are required to pay mitigation fees. FISCAL IMPACT Centre Pointe development has not paid the mitigation fees which total $26,050. BACKGROUND/ANALYSIS The periodic review of DAs by Council is required at least every 12 months from the date the DA was entered into until the expiration of the agreement. Five active DAs have been identified (Attachment 1). Of the five, Village Park Animal Hospital, was determined to be in full compliance with no further obligations. The remaining agreements are summarized in the table below: STUDY SESSION ITEM NO. 1 205 Active Development Agreements Project Name Applicant Project Description Effective Date Status 1 Centre Pointe CP Development La Quinta, LLC 50-acre Mixed-use development at SEC of Washington Street and Miles Avenue July 17, 2003, December 18, 2003 (Expires 2053) Not in Compliance 2 Legacy Villas Centex Homes 280 residential units at NWC of Coachella and Eisenhower November 20, 2003 (Expires 2053) Compliance 3 Signature (PGA West) Villas, Haciendas, Estates Crown Pointe Partners, LLC 264 condo/townhome units at PGA West August 18, 2008 (Expires 2058) Compliance 4 SilverRock Resort SilverRock Development Company, LLC Development of the SilverRock Resort including luxury hotel, lifestyle hotel, luxury branded residential, shared services and conference center, and mixed-use village. November 18, 2014 (expires November 18, 2044) Compliance The Centre Pointe, Legacy Villas and Signature developments are within the Tourist Commercial District, which is intended for and permits land uses that include specialized commercial tourist-oriented uses and resort activity that generate transit occupancy tax (TOT) revenue. DAs were executed for these projects for a per unit payment to the City for the potential loss of anticipated TOT revenue, since these sites were developed for residential uses instead of a traditional tourist commercial use, such as a hotel. 206 Centre Pointe The Centre Pointe development includes 42 acres at the southeast corner of Washington Street and Miles Avenue. In December 2003, a Disposition and Development Agreement (DDA) with the La Quinta Redevelopment Agency was adopted and this redevelopment property was sold to the developer. A DA with the City was also adopted. The DA and DDA included construction of Casitas that are subject to a one-time payment and annual mitigation fees to the City, unless the City receives $546,131 minimum annual transient occupancy tax (TOT) for three consecutive years generated by the development (Attachment 2). To date, 40 Casitas have been constructed. These are presently known as La Quinta Desert Villas (HOA). The City has invoiced the HOA for the annual mitigation fees since 2016, however, no payments have been received. The Finance Department has reported that the TOT threshold has not been met and therefore, mitigation fees are required to be paid. The HOA requested TOT information for Homewood Suites in 2018 via a public records request. Information was given to the HOA that showed TOT amounts less than $546,131. To date, no response from the HOA has been received. Therefore, the HOA is currently not in compliance with their mitigation payment obligations. Additional requirements of the DDA include schedules of performance for certain pieces of the development. Currently, the second restaurant parcel and the remainder of the Casitas development have not been constructed per their performance schedules and therefore are not in compliance with the DDA. Staff has spoken with the owners of the second restaurant parcel and the Casitas development. They are willing to negotiate changes to the DDA and work with the City to facilitate development of their properties. Staff has also spoken with the HOA property management company who has stated that they are willing to negotiate to resolve the mitigation payment to the City. Notices of default will be issued if negotiations are not productive. Legacy Villas and Signature The Legacy Villas and Signature developments are in compliance with mitigation payment obligations of their respective DAs. Summaries of these DAs are provided as Attachments 3 and 4. SilverRock Agreements in place for SilverRock consist of a DA and a Purchase, Sale and Development Agreement (PSDA) which were entered into in November 2014 (Attachment 5). The PSDA was recently amended in November 2018 to modify the development schedule, clarify requirements for selling planning areas 7, 8 and 9, identify a phasing plan for master site infrastructure improvements, update project budgets and define ownership structures for the SilverRock Development Company (SDC). With the acquisition of a construction loan for the project, certain milestones needed to be revised to meet the loan requirements. The construction lender requires both the Montage and Pendry 207 to open at the same time, which affects the construction schedule for both hotels. This requires a time extension to complete both hotels and as a result, the Pendry would open 3 years sooner than anticipated in the original agreement. SDC is making progress toward meeting deadlines in their development schedule. Mass grading of the site is anticipated to be completed by early November. A Tentative Tract Map for the Montage Residences has been submitted. Building permits are on-track for submittal in October of 2019 with construction of the Montage Hotel and Spa, Conference Center, Pendry Hotel and Montage Golf Clubhouse anticipated to begin in February 2020. Prepared by: Cheri Flores, Planning Manager Approved by: Danny Castro, Design and Development Director Attachments: 1.Map of developments with active development agreements 2.Centre Pointe Development Agreement Summary 3.Legacy Villas Development Agreement Summary 4.Signature Development Agreement Summary 5.SilverRock Resort Development Agreement Summary 208 CENTRE POINTE LEGACY VILLAS SILVERROCK SIGNATURE VILLAGE PARK ANIMAL HOSPITAL SH-111 MADISON ST54TH AVEWASHINGTON ST48TH AVE EISENHOWER DRJEFFERSON ST52ND AVE MILES AVE 50TH AVE MONROE STJEFFERSON STEISENHOWER DR 50TH AVE Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS,USDA, USGS, AeroGRID, IGN, and the GIS User Community Development Agreement Project Locations ¯ September 2019 ATTACHMENT 1 209 210 Center Pointe Development Agreement (DA2003-0006) Project Description: 134 room hotel, 136 condo/casita units, residential development of 54 detached homes, 14 market rate homes, 2 restaurants, medical office, surgical facility, 132 suite retirement community, 72 suite assisted living, and a 32 bed memory care facility. Applicant: Center Pointe Development LQ, LLC Case No.: Development Agreement 2003-006, Ord 385, 409, 423, 455 and 504 (4 DA amendments approved) Disposition and Development Agreement (7 amendments) Related Case: Specific Plan 2001-055, EA 2001-436, 2011-617 Effective Dates: December 18, 2003, Expires December 18, 2053 (50 YEARS) Terms: •Developer to construct 134 guest room hotel, 136 condo/casitas units, 13 courtyard cluster villas, 54 unit residential development, 14 market rate homes, 40 affordable homes, two restaurants, medical office/ surgical facility, 26 sanctuary villas. •Development of a Casitas HOA •Developer constructs a neighborhood park. •Contribution towards landscape improvements •Payment of Mitigation fees o One-time mitigation fee Casitas: $1,500 for each unit with payment due upon the first close of escrow Sanctuary Villas: $2,150 for each unit with payment due upon the first close of escrow o Annual mitigation fees: Casitas and Sanctuary Villas: $150 for each unit sold to a purchaser to be paid each July 1. Fee shall not be required for any operative year in which the City has received transient occupancy taxes derived from the Suites Hotel parcel, casitas parcel, and sanctuary villas parcel which equals or exceeds $546,131 for the applicable operative year o If City received minimal annual TOT ($546,131) in each of three consecutive operative years, the Casitas and Sanctuary Villas HOA’s obligation to pay the annual mitigation fee shall be terminated. •Public Facilities Fee: 5% of rental amount if rented for a period of time over 30 days ATTACHMENT 2 211 •Sanctuary Villas later removed from the development plan (DA Amendment 2) •DA Amendment 4 replaced the development of single-family residential homes with a senior living facility, The Palms, consisting of 132 retirement suites, four single-story duplex cottages, 72 assisted living suites, and 32 beds for memory care. Status: Out of compliance with one-time and annual mitigation payments for Casitas Units and performance schedules for construction of 2nd restaurant and remaining Casitas Units •Casitas Units (partially constructed) •Applebee’s restaurant (complete) •Homewood Suites by Hilton La Quinta (complete) •The Palms La Quinta retirement community (complete) •Eisenhower Medical Center (complete) •2nd sit-down restaurant (vacant, never constructed) •Pioneer Park (complete) To view the documentation for the CP Development La Quinta LLC Disposition and Dvelopment Agreements please click here 212 Second Restaurant Parcel La Quinta Desert Villas Remainder of Casitas Development 213 214 LEGACY VILLAS DA TERMS (DA 2003-007) Project description: 280 unit Residential Resort on 44.61 Acres Applicant: Centex Homes Case No.: Development Agreement 2003-007, Ordinance 389 Related Case: Specific Plan 2003-065, Site Development Permit 2003-778, Environmental Assessment 2003-478, Tentative Tract Map 31379 Effective Dates: Development Agreement is considered effective on December 12, 2003 and expires December 11, 2053 (50 YEARS). Terms: •A one-time mitigation fee of $2,500 per unit constructed in the project due on or before the date the building permit is issued for each unit. •Annual mitigation fee which is collected by the HOA at $1,000 per year per unit that has been sold to an owner. The HOA then forwards to the City of La Quinta. •The Annual mitigation fee is reduced from $1,000 to $500 per year if the City receives TOT from rental units in the project that exceeds $500,000 for three consecutive years during the term of the Development Agreement and can be totally eliminated if the City has received TOT from rental units in the Project in excess of $1,000,000 for any three consecutive operating years during the life of the Development Agreement. •Any rentals are subject to TOT. •Rental Tracking System by HOA. Status: Compliance Amount invoiced for 2018/19 is $376,767.60 To view the Centex Homes Development Agreement please click here ATTACHMENT 3 215 216 EDENROCK (SIGNATURE) DA TERMS (DA2006-011) Project Description: 264 condo/townhome units (83 Courtyard Homes, duplexes, 79 Manor Homes, triplexes, and 102 Village Homes, sixplexes) on 41.95 acres. Applicant: Crowne Pointe Partners, LLC Case No.: Development Agreement 2006-011, Ordinance 457 Related Case: SP 83-002, Amendment No. 6, GPA 2006-107, ZC 2006-127, Tentative Tract Map 33226, SDP 2006-852 Effective Dates: August 18, 2008 and expires August 18, 2058 (50 YEARS) Assignment and Assumption Agreement entered into March 24, 2014, assigned to RREF-CWC LaQ, LLC Purpose: Development Agreement entered into for purposes of payment to City a per unit upfront payment for potential loss of anticipated general fund revenues from “Transient Occupancy Tax” as a result of the use of the site for a residential resort instead of a traditional tourist commercial use such as a 1,000 room resort hotel, conference center and 100,000 square feet of resort retail. Key points of the Agreement: •Compliance with Conditions of Approval •Recordation of Covenants, Conditions and Restrictions •Payment to the City for each unit 0.75% of the developer’s full sale price of the unit upon close of escrow, inclusive of all developer-installed options and upgrades, with the amount of such sales price verified by the City. •Payment of Fair Share Improvements as identified in mitigation measures 11.0-3 and 11.0-4 of the project EIR. Status: Compliance •38 units have been constructed, no construction at this time •Mitigation fees have been collected for constructed units To view the Crowne Pointe Partners Development Agreement please click here ATTACHMENT 4 217 218 AUGUST 2019 SILVERROCK DA TERMS (DA 2014-1001) Project description: Development of a resort development as follows: Area Project Components Acres Units PA 1 Modification of existing Golf Course 173 PA 2 Montage Luxury hotel with spa and fitness center (170,000 sq. ft) 17 140 PA 3 Montage Luxury branded residential homes 14 35 PA 4 Shared service/conference facility 7.5 PA 5 Pendry Lifestyle hotel (170,000 sq. ft.) 10.5 200 PA 6 Pendry Lifestyle branded residential development 10 66 PA 7 Mixed-Use Village Area 1 10.5 150 PA 8 Resort Residential Village 22.5 160 PA 9 Mixed Use Village Area II (80 units) 15 80 PA 10A-1 Golf Course and Clubhouse 51.5 25 PA 10A-2 Residential 13.5 46 PA 10A-3 Residential 5 23 PA 10B-1 Golf Course 62 40 PA 10B-2 Residential 5.5 19 PA 10B-3 Residential 4.5 20 PA 10B-4 Residential 7 34 PA 10B-5 Residential 5.5 22 PA 10B-6 Residential 5.5 24 PA 11 Public Park 22 PA 12 Arroyo, Trails, Canal & Streets 53.5 Total 525 1084 Applicant: SilverRock Development Company, LLC Case No.: Development Agreement 2014-1001, Ordinance 520 Related Cases: SDP 2016-0005, SDP 2016-0009 Effective Dates: •Development Agreement approved on November 18, 2014 •Purchase Sale and Development Agreement (PSDA) entered into on November 19, 2014 and expires November 19, 2044 (30 YEARS). •Amendment 1 to the PSDA was entered into on October 29, 2015 •Amendment 2 to the PSDA was entered into on April 18, 2017 •Amendment 3 to the PSDA was entered into on November 28, 2018 Purpose (Amendment 3 of PSDA): Amends areas of the original PSDA that have changed based on changes in the project; Modifies the development schedule; updates project budgets and define ownership structures for the SilverRock Development Company (SDC). Amendment No. 3 also gives SDC the ability to sell and transfer planning areas 7, 8 and 9 under certain conditions. ATTACHMENT 5 219 AUGUST 2019 Key points of the Agreement: •Establishment of a vested right to execute and fulfill the development program in accordance with the SilverRock Resort Specific Plan and applicable zoning regulations. •Permit and development impact fees are to be paid in accordance with those fees in force and effect as of the effective date of the Agreement. •Any non-city development fees, such as the CVMSHCP or TUMF fees, will be collected at the rate in effect at the standard time of collection. •Developer is responsible for executing development in accordance with identified development program. •Developer acknowledges responsibility for CEQA mitigation monitoring. •The Agreement is to be reviewed at least annually in order to ensure compliance with provisions. •Use the Ahmanson House as temporary clubhouse, in lieu of constructing a temporary clubhouse, until the permanent clubhouse is operational. •Master Site Infrastructure Improvements Phasing Plan amended. Status: Compliance •Golf Course realigned •Site Development Permits for PA 2, 3, 4, 5, 6 and 10A approved •Master Site Infrastructure Improvements Phasing Plan approved •Grading underway To view the SilverRock DA, please click here To view Amendment #3 to the PSDA, please click here 220 City of La Quinta CITY COUNCIL MEETING: October 1, 2019 STAFF REPORT AGENDA TITLE: DISCUSS 2019 UPDATE OF THE DEVELOPMENT IMPACT FEE STUDY RECOMMENDATION Discuss 2019 update of the Development Impact Fee study. EXECUTIVE SUMMARY •Development impact fees (DIF) are one-time charges imposed on development projects to recover capital costs for public facilities needed to serve those new developments and the additional residents, employees, and visitors they bring to the community. •In the past, these fees have been one of the major funding sources for the City’s Capital Improvement Program (CIP). •The City must update the DIF periodically in order to comply with state law. •The 2019 update is the sixth update to the 1999 DIF and is intended to satisfy the requirements of the Mitigation Fee Act (Government Code sections 66000 et seq.) commonly known as “AB1600”. •The DIF draft report was provided to the Desert Valley Builders Association (DVBA) and Building Industry Association (BIA) on August 27, 2019 for review and comment. FISCAL IMPACT The recommended DIF schedule will generate approximately $81,492,532, assuming that all development anticipated in the City General Plan occurs. The following presents the projected impact fee revenue by facility type: FACILITY TYPE PROJECTED REVENUE Parks $13,878,869 Community and Cultural Centers $6,299,893 Library $2,615,154 Civic Center $9,932,414 Maintenance Facilities $2,997,432 STUDY SESSION ITEM NO. 2 221 Fire Protection $2,957,885 Transportation $42,810,885 TOTAL $81,492,532 The DIF represents the maximum Impact Fee amount justified by the analysis. The Council may choose to adopt fees lower than those recommended; however alternative funding sources would eventually need to be identified in order to complete these facilities. It should be emphasized that all costs used in this report are in current dollars. In the past, the Council discounted transportation impact fees by 22%. The Fees presented within the September 2019 update do not automatically include this discount. The following represents the proposed fees by land use category: The following compares the proposed fees to the existing fees: BACKGROUND/ANALYSIS In 1989, a California statute took effect, which governs the establishment, increase and imposition of fees levied by local agencies as a condition of development project approval “for the purpose of defraying all or a portion of the cost of public facilities related to this development project.” Public facilities are defined in this statute to include “public improvements, public services, and community amenities.” These requirements are found in the Mitigation Fee Act (Government Code Section 66000 et seq.) and are commonly known as “AB1600" requirements after the 1987 assembly bill in which they originated. Ch.3 Ch.4 Ch.5 Ch.6 Ch.7 Ch.8 Ch.9 Development Dev Park Comm/Civic Maint 2 Trans-Grand Type Unit 1 Imprvmts Cultural Library Center Facilities Fire portation Total Residential - Single Family Detached DU 2,106$ 956$ 397$ 1,230$ 313$ 369$ 4,009$ 9,380$ Residential - Single Family Attached DU 1,794$ 814$ 338$ 1,115$ 247$ 335$ 3,076$ 7,719$ Residential - Multi-Family/Other DU 1,716$ 779$ 323$ 628$ 198$ 188$ 2,281$ 6,114$ Office/Medical KSF 522$ 374$ 151$ 6,542$ 7,589$ General Commercial KSF 522$ 461$ 151$ 8,057$ 9,190$ Tourist Commercial/Lodging Room 698$ 106$ 201$ 1,859$ 2,865$ Golf Course Acre 251$ 53$ 72$ 930$ 1,306$ Development Dev Proposed Current Increase Percent Type Unit Fees Fees Amount Change Residential - Single Family Detached DU 9,380$ 6,894$ 2,486$ 27% Residential - Single Family Attached DU 7,719$ 6,681$ 1,038$ 13% Residential - Multi-Family/Other DU 6,114$ 5,030$ 1,084$ 18% Office/Medical KSF 7,589$ 5,379$ 2,210$ 29% General Commercial KSF 9,190$ 6,456$ 2,734$ 30% Tourist Commercial/Lodging Room 2,865$ 2,185$ 680$ 24% Golf Course Acre 1,306$ 957$ 349$ 27% 222 The US Supreme Court has found that an agency imposing exactions on development must demonstrate an “essential nexus” between such an exaction and the government’s legitimate interest. The court made clear that an agency must also show that an exaction is “roughly proportional” to the burden created by development. California law does not limit the type of capital improvements for which impact fees can be charged. However, with a few minor exceptions, it does prohibit the use of impact fees for ongoing maintenance or operation costs (see Government Code Section 65913.8). Consequently, the fees recommended on this report are based on capital costs only. City staff provided the updated DIF draft report to Desert Valley Builders Association (DVBA) and Building Industry Association (BIA) on August 27, 2019. Staff met with both the DVBA and BIA to review comments. Any additional comments may be presented to the Council during its Study Session on October 1, 2019. Presented for the Council’s consideration is the Sixth update of the DIF Study, dated September 23, 2019 (Attachment 1). Attachment 2 provides a brief overview of the changes presented within the 2019 DIF Update. As with the previous report, Section 1 provides an overview of impact fees. It sets forth legal requirements for establishing and imposing such fees as well as methods used in this study to calculate the fees. Section 2 contains information on existing and planned uses and development in La Quinta and organizes that data in a form that can be used in the DIF analysis. Sections 3 through 9 analyze the impacts of development on specific types of facilities. Those sections identify facilities eligible for impact fee funding and calculate recommended impact fees for each type of facility. Section 10 discusses procedures and legal requirements for implementing an impact free program under California law. Section 10 also addresses adoption, administration, and training. The types of public facilities covered by the DIF are: Chapter 3. Parks and Recreation Impact Fees Chapter 4. Community and Cultural Centers Chapter 5. Library Facilities and Materials Chapter 6. Civic Center Facilities Chapter 7. Maintenance Facilities and Equipment Chapter 8. Fire Protection Facilities Chapter 9. Transportation Facilities Prepared by: Julie Mignogna, Management Analyst Approved by: Bryan McKinney, PE, City Engineer Attachments: 1.Draft 2019 Development Impact Fee Study 2. 2019 DIF Study Overview 223 224 City of La Quinta Development Impact Fee Study August 8, 2019 CITY OF LA QUINTA Revised Final DRAFT Report Development Impact Fee Study September 23, 2019 nbsgov.com Prepared by: Corporate Headquarters 32605 Temecula Parkway, Suite 100 Temecula, CA 92592 Toll free: 800.676.7516 ATTACHMENT 1 225 City of La Quinta Development Impact Fee Study August 8, 2019 Table of Contents Chapter 0. Executive Summary ........................................................................................................S-1 Organization of the Report ....................................................................................................................S-1 Development Projections ......................................................................................................................S-1 Impact Fee Analysis................................................................................................................................S-2 Recovery of Study Costs .........................................................................................................................S-5 Impact Fee Summary .............................................................................................................................S-5 Chapter 1. Introduction ...................................................................................................................1-1 Purpose ..................................................................................................................................................1-1 Legal Framework for Developer Fees ....................................................................................................1-1 Impact Fee Calculation Methodology ....................................................................................................1-6 Facilities Addressed in this Study ...........................................................................................................1-8 Chapter 2. Development Data .........................................................................................................2-1 Background and Setting .........................................................................................................................2-1 Study Area and Development Scenario .................................................................................................2-1 Time Frame ............................................................................................................................................2-1 Development Types ...............................................................................................................................2-2 Residential Development and Population .............................................................................................2-2 Non-Residential Development ...............................................................................................................2-3 Demand Variables ..................................................................................................................................2-3 Demand Factors .....................................................................................................................................2-5 Existing and Forecasted Development ..................................................................................................2-5 Chapter 3. Parks and Recreation Impact Fees ...................................................................................3-1 Demand Variable ...................................................................................................................................3-1 Service Area ...........................................................................................................................................3-1 Existing Facilities ....................................................................................................................................3-1 Quimby Act Fees in Lieu of Park Land Dedication .................................................................................3-2 Methodology and Level of Service Standard –Quimby Act ..................................................................3-3 Fees In-Lieu of Park Land Dedication –Quimby Act ..............................................................................3-3 Park Impact Fees ....................................................................................................................................3-5 Methodology-Park Impact Fees ............................................................................................................3-5 226 City of La Quinta Development Impact Fee Study August 8, 2019 Level of Service Standard –Park Impact Fees........................................................................................3-5 Cost Per Capita –Park Impact Fees .......................................................................................................3-5 Park Land Acquisition Impact Fees per Unit ..........................................................................................3-6 Park Improvement Impact Fees per Unit ...............................................................................................3-7 Projected Revenue .................................................................................................................................3-7 Updating the Fees ..................................................................................................................................3-8 Nexus Summary .....................................................................................................................................3-8 Chapter 4. Community and Cultural Centers ....................................................................................4-1 Methodology..........................................................................................................................................4-1 Demand Variable ...................................................................................................................................4-1 Service Area ...........................................................................................................................................4-1 Level of Service ......................................................................................................................................4-1 Existing Facilities ....................................................................................................................................4-2 Cost per Capita .......................................................................................................................................4-2 Impact Fees per Unit of Development ...................................................................................................4-3 Projected Revenue .................................................................................................................................4-3 Updating the Fees ..................................................................................................................................4-4 Nexus Summary .....................................................................................................................................4-4 Chapter 5. Library ...........................................................................................................................5-1 Methodology..........................................................................................................................................5-1 Demand Variable ...................................................................................................................................5-1 Service Area ...........................................................................................................................................5-1 Level of Service ......................................................................................................................................5-1 Existing Facilities ....................................................................................................................................5-1 Cost per Capita .......................................................................................................................................5-2 Impact Fees per Unit of Development ...................................................................................................5-2 Projected Revenue .................................................................................................................................5-3 Updating the Fees ..................................................................................................................................5-4 Nexus Summary .....................................................................................................................................5-4 Chapter 6. Civic Center ....................................................................................................................6-1 Methodology..........................................................................................................................................6-1 Demand Variable ...................................................................................................................................6-1 227 City of La Quinta Development Impact Fee Study August 8, 2019 Service Area ...........................................................................................................................................6-1 Level of Service ......................................................................................................................................6-2 Existing Facilities ....................................................................................................................................6-2 Cost per Developed Acre .......................................................................................................................6-2 Impact Fees per Unit of Development ...................................................................................................6-3 Projected Revenue .................................................................................................................................6-3 Updating the Fees ..................................................................................................................................6-4 Nexus Summary .....................................................................................................................................6-4 Chapter 7. Maintenance Facilities ....................................................................................................7-1 Methodology..........................................................................................................................................7-1 Demand Variable ...................................................................................................................................7-1 Service Area ...........................................................................................................................................7-1 Level of Service ......................................................................................................................................7-1 Facility Needs .........................................................................................................................................7-2 Park Maintenance Facilities Cost per Capita.........................................................................................7-3 Street Maintenance Facilities Cost per Weighted Peak Hour Trip........................................................7-3 Impact Fees per Unit of Development –Park Maintenance Facilities...................................................7-4 Impact Fees per Unit of Development –Street Maintenance Facilities ................................................7-5 Park Maintenance Facilities Impact Fees -Projected Revenue .............................................................7-7 Street Maintenance Facilities Impact Fees -Projected Revenue ..........................................................7-7 Updating the Fees ..................................................................................................................................7-8 Nexus Summary .....................................................................................................................................7-8 Chapter 8. Fire Protection ...............................................................................................................8-1 Methodology..........................................................................................................................................8-1 Service Area ...........................................................................................................................................8-1 Level of Service ......................................................................................................................................8-2 Demand Variable ...................................................................................................................................8-2 Facility Needs .........................................................................................................................................8-2 Cost per Developed Acre .......................................................................................................................8-3 Impact Fees per Unit of Development ...................................................................................................8-4 Projected Revenue .................................................................................................................................8-6 Updating the Fees ..................................................................................................................................8-7 228 City of La Quinta Development Impact Fee Study August 8, 2019 Nexus Summary .....................................................................................................................................8-7 Chapter 9. Transportation ...............................................................................................................9-1 Methodology..........................................................................................................................................9-1 Service Area ...........................................................................................................................................9-1 Level of Service ......................................................................................................................................9-1 Demand Variable ...................................................................................................................................9-1 Improvement Needs ..............................................................................................................................9-2 Cost per Weighted Peak Hour Trip ........................................................................................................9-2 Impact Fees per Unit of Development ...................................................................................................9-3 Projected Revenue .................................................................................................................................9-5 Updating the Fees ..................................................................................................................................9-6 Nexus Summary .....................................................................................................................................9-6 Chapter 10. Implementation .........................................................................................................10-1 Adoption ..............................................................................................................................................10-1 Administration .....................................................................................................................................10-2 Training and Public Information ..........................................................................................................10-7 Recovery of Study Costs and Administrative Costs .............................................................................10-7 229 City of La Quinta Page S-1 Development Impact Fee Study September 23, 2019 Chapter 0.Executive Summary The City of La Quinta has retained NBS Government Finance Group to prepare this study to analyze the impacts of new development on the City’s capital facilities and infrastructure and to calculate impact fees based on that analysis.The methods used in this study are intended to satisfy all legal requirements of the U. S. Constitution,the California Constitution and the California Mitigation Fee Act (Gov ernment Code Sections 66000 et seq.)and The Quimby Act (Government Code Section 66477) where it applies. Organization of the Report Chapter 1 of this report provide s an overview of the legal requirements for establishing and imposing such fees,and methods that can be used to calculate impact fees. Chapter 2 contains data on existing and future development that is used in this report . Chapters 3 through 9 analyze the impacts of development on specific types of facilities and calculate impact fees for those facilities.The facilities addressed in this report are listed by chapter below: Chapter 3. Parks and Recreation Impact Fees Chapter 4.Community and Cultural Centers Chapter 5.Library Facilities and Materials Chapter 6.Civic Center Facilities Chapter 7.Maintenance Facilities Chapter 8.Fire Protection Facilities Chapter 9.Transportation Facilities Chapter 10 contains recommendations for adopting and implement ing impact fees, including suggested findings to satisfy the requirements of the Mitigation Fee Act. Development Projections Chapter 2 of this report presents estimates of existing development in La Quinta and projections of future development through buildout of the area with the existing corporate boundaries of the City.Because the City’s population fluctuates seasonally, this study uses “potential population” in the impact fee analysis. Potential popul ation is based on full- occupancy of all dwelling units in the City as any given time. Future development projected in Chapter 2 indicates that the City’s potential population could increase by about 28% to 82,300, as undeveloped residential land within the City’s existing boundaries is built out. The impact fees calculated in this report are in current dollars and do not require assumptions about the rate or timing of future development. However, based on the City’s population 230 City of La Quinta Page S-2 Development Impact Fee Study September 23, 2019 growth rate over the last several years, it could take 25 years to absorb the land available for residential development within the existing boundaries of the City. Impact Fee Analysis The impact fee analysis for each type of facility addressed in this report is presented in a separate chapter. In each case, the relationship between development and the need for a particular type of facility is defined in a way that allows the impact of additional development on facility needs to be quantified. The impact fees are based on the cost of facilities and other capital assets needed to mitigate the impacts of additional development . All of the fees calculated in this report are based on capital costs and may be spent only for capital facilities and other capital assets identified in this report. The following paragraphs briefly discuss the approach used to calculate impact fees for each type of facility addressed in this study. Tables summarizing the impact fees calculated in this report and comparing them with the City’s existing impact fees are presented later in this chapter. Park and Recreation Impact Fees.Chapter 3 of this report calculates three types of fees for park land acquisition and park improvements: Quimby Act fees in lieu of park land dedication for residential subdivisions Park land acquisition impact fees for residential d evelopment not involving a subdivision Park improvement impact fees for all residential developme nt The City currently has an ordinance requiring residential subdivisions to dedicate land for parks or pay fees in lieu of dedication . Those requirements are authorized by the Quimby Act.At present, when the City collects fees in lieu of park land dedication, the amount of the fee is based on the value of the land under the subdivision.An alternative employed by many cities is to base in-lieu fees on the estimated average cost-per-acre for park land purchased on the open market. Chapter 3 shows the amount of in-lieu fees calculated in that manner. Chapter 3 also calculates park land impact fees for residential development that does not involve a subdivision.Those fees are based on the City’s existing ratio of park acres to population and the estimated cost-per-acre for park land In addition, Chapter 3 calculates impact fees for park and recreation improvements. Those fees are based on La Quinta’s existing rat io of improved park acreage to population and the estimated cost per acre for park improvements. All of the in-lieu and impact fees in Chapter 3 are calculated as a cost per capita and then converted into fees per unit of residential development based on the estimated average 231 City of La Quinta Page S-3 Development Impact Fee Study September 23, 2019 population per unit for the three types of residential devel opment defined in this report (Single Family Detached, Single-Family Attached, and Multi -Family-Other). Because parks and recreation facilities are intended to serve resident s of the City,the park and recreation in-lieu and impact fees apply only to residential development. Community and Cultural Centers Impact Fee.Chapter 4 calculates impact fees for community and cultural centers.Up to now, this fee has been called the Community Centers Impact Fee and was based on only portions of certain City-owned facilities such as the La Quinta Museum and the Boys and Girls Club, in addition to the Wellness Center. In this study, the basis for this fee has been broadened to include the Wellness Center,the entire Museum and the Boys and Girls Club building,as well as land acquired for the Village Art Plaza and Promenade . The amount of the fee is based on the value of the City’s current per-capita investment in the relevant facilities,including land and furniture, fixtures and equipment.The community and cultural centers impact fees are calculated as a cost per capita and then converted into fees per unit of residential development based on the estimated average population per unit fo r the three types of residential development defined in this report. Because community and cultural center facilities are intended to serve residents of the City,this fee applies only to residential development . Library Impact Fee. Chapter 5 calculates impact fees for the library.The calculation of this fee assumes that the existing La Quinta Branch Library has adequate capacity to serve all existing and future residential development within the existing corporate boundaries of the City. This fee is calculated by allocating the cost of the Library building,land,library materials and furniture fixtures and equipment to the projected buildout population of the area within the existing City limits.The building cost is defined as the original cost of the b uilding plus nominal interest to date on the outstanding loan originally issued by the Redevelopment Agency to fund construction of the library. The impact fees are calculated as a cost per capita and then converted into fees per unit of residential development based on the estimated average population per unit for the three types of residential development defined in this report. Because the library is intended primarily to serve residents of the City, this fee applies only to residential development. Civic Center Impact Fee.Chapter 6 calculates impact fees for the civic center. The calculation of this fee is based on the relationship between the cost of the existing Civic Center and existing developed acreage within the City. This fee is calculated by allocating the cost of the Civic Center building, land,and furniture fixtures and equipment to existing development within the existing City limits based on developed acreage.The building cost is defined as the original cost of the building. 232 City of La Quinta Page S-4 Development Impact Fee Study September 23, 2019 The civic center impact fees are calculated as a cost per developed acre and then converted into fees per unit of development based on the estimated average acres per unit for each type of development defined in this report. The Civic Center impact fees apply to all t ypes of private development in the City. Public facilities, schools, and parks are excluded from the impact fee analysis because they do not create a demand for services supported by the Civic Center.The Civic Center impact fee applies to golf courses, but only 5% of golf course acreage is assumed to impact services supported by the Civic Center. Maintenance Facilities Impact Fee.Chapter 7 calculates impact fees for corporate yard maintenance facilities, including some major equipment .The calculation of this fee allocates costs for both existing and future maintenance facilities to all existing and future development within the existing corporate bounda ries of the City at buildout.Costs for future improvements to the City’s maintenance facilitie s are based on estimates for Phase II and Phase III of the planned Corporate Yard improvements. To calculate this fee, the City’s maintenance facilities are broken into two components —park maintenance facilities and street maintenance facilities. Costs fo r park maintenance facilities are allocated to development in the same manners as parks, based on population. Costs for street maintenance facilities are allocated to development in the same manner as transportation improvements, based on weighted peak hou r trips. In the initial impact fee analysis for street maintenance facilities, impact fees are calculated for public facilities, schools and parks because they do generate some traffic. However, because the traffic created by those public uses is a seconda ry impact of private development, the costs initially allocated to those uses are re -allocated to private development, resulting in a small increase in the fees for all types of private development. The maintenance facilities impact fees apply to all types of private development in the City. Fire Protection Impact Fee.Chapter 8 calculates impact fees for fire protection facilities. The calculation of this fee allocates the cost of both existing and future fire protection facilities to all existing and future development within the existing corporate boundaries of the City at buildout. This study assumes that the City of La Quinta will be responsible for one -half of the cost of a fourth fire station in the Southeastern quadrant of the City. To calculate this fee,costs for fire protection facilities are allocated to development based on developed acreage.In the initial impact fee analysis for fire protection facilities, impact fees are calculated for public facilities, schools and parks based on the acreage they occupy. However, because the need for those public uses is created by private development, the costs initially allocated to those uses are re-allocated to private development, resulting in a small increase in the fees for all types of private development. The fire protection facilities impact fees apply to all types of private development in the City. 233 City of La Quinta Page S-5 Development Impact Fee Study September 23, 2019 Transportation Impact Fee.Chapter 9 of this report calculates impact fees for transportation improvements.For purposes of the impact fee analysis, transpor tation improvements are divided into two groups: those that increase capacity for vehicular traffic and others such as sidewalks and bike lanes.Costs for capacity-capacity-enhancing improvements are allocated only to future development. Costs for non -capacity-enhancing improvements are allocated to both existing and future development.Both groups include costs to repay remaining balance s on reimbursement agreements. To calculate this fee, costs for all types of transportation improvements are allocated to development based on the number of weighted peak hour trips generated by various types of development. Weighted peak hour trips reflect both the number of trips generated and trip length for various types of development. In the initial impact fee analysis for transportation facilities, impact fees are calculated for public facilities, schools and parks based on the number of weighted pea k hour trips they generate. However, because the need for those public uses is created by private development, the costs initially allocated to those uses are re-allocated to private development, resulting in a small increase in the fees for all types of p rivate development. The transportation facilities impact fees apply to all types of private development in the City. Recovery of Study Costs In this report, the impact fee calculations include a small administrative charge designed to recover the cost of this study. That charge amounts to about 1/3 of 1% of the impact fees. Impact Fee Summary Impact fees per unit calculated in this report are summarized in Table S.1, below. Table S.1: Summary of Impact Fees Calculated in This Study Ch.3 Ch.4 Ch.5 Ch.6 Ch.7 Ch.8 Ch.9 Development Dev Park Comm/Civic Maint 2 Trans-Grand Type Unit 1 Imprvmts Cultural Library Center Facilities Fire portation Total Residential - Single Family Detached DU 2,106$956$397$1,230$313$369$4,009$9,380$ Residential - Single Family Attached DU 1,794$814$338$1,115$247$335$3,076$7,718$ Residential - Multi-Family/Other DU 1,716$779$323$628$198$188$2,281$6,114$ Office/Medical KSF 522$374$151$6,542$7,589$ General Commercial KSF 522$461$151$8,057$9,191$ Tourist Commercial/Lodging Room 698$106$201$1,859$2,865$ Golf Course Acre 251$53$72$930$1,306$ Note: Rows may not total precisely due to rounding 1 Units of development; DU = dwelling unit; KSF = 1,000 square feet of building floor area; Room = hotel/motel guest room or suite acre = net acre 2 Fee for maintenance facilities includes both park maintenance and street maintenance 234 City of La Quinta Page S-6 Development Impact Fee Study September 23, 2019 Table S.2 shows the City’s existing impact fees.It is important to note that the existing impact fees for transportation improvements were reduced 22%from the amounts that were supported by improvement costs in the City’s 2013 impact fee study. Table S.3 shows the difference between the proposed fees in Table S.1 and the existing fees in Table S.2. Table S.2 Summary of Existing Impact Fees Development Dev Park Comm/Civic Maint 2 Transpor-Grand Type Unit 1 Imprvmts Cultural Library Center Facilities Fire tation 3 Total Residential - Single Family Detached DU 2,048$129$344$942$156$433$2,842$6,894$ Residential - Single Family Attached DU 2,048$129$344$796$156$366$2,842$6,681$ Residential - Multi-Family/Other DU 2,048$129$344$447$111$206$1,745$5,030$ Office/Medical KSF 373$190$171$4,645$5,379$ General Commercial KSF 373$232$172$5,679$6,456$ Tourist Commercial/Lodging Room 363$65$167$1,590$2,185$ Golf Course Acre 179$27$82$669$957$ 1 Units of development; DU = dwelling unit; KSF = 1,000 square feet of building floor area; Room = hotel/motel guest room or suite acre = net acre 2 Impact fees for maintenance facilities include both park maintenance and street maintenance 3 Existing impact fees for transportation improvements were discounted 22% from actual costs Table S.3 Difference Between Existing and Proposed Impact Fees Development Dev Park Comm/Civic Maint 2 Transpor-Grand Type Unit 1 Imprvmts Cultural Library Center Facilities Fire tation 3 Total Residential - Single Family Detached DU 58$827$53$288$157$(64)$1,167$2,486$ Residential - Single Family Attached DU (254)$685$(6)$319$91$(31)$234$1,037$ Residential - Multi-Family/Other DU (332)$650$(21)$181$87$(18)$536$1,084$ Office/Medical KSF 149$184$(20)$1,897$2,210$ General Commercial KSF 149$229$(21)$2,378$2,735$ Tourist Commercial/Lodging Room 335$41$34$269$680$ Golf Course Acre 72$26$(10)$261$349$ 1 Units of development; DU = dwelling unit; KSF = 1,000 square feet of building floor area; Room = hotel/motel guest room or suite acre = net acre 2 Impact fees for maintenance facilities include both park maintenance and street maintenance 3 Existing impact fees for transportation improvements were discounted 22% from actual costs 235 City of La Quinta Page 1-1 Development Impact Fee Study August 8, 2019 Chapter 1.Introduction Purpose The purpose of this study is to analyze the impacts of development on the need for types of public facilities provided by the City of La Quinta. This report documents the approach, data and methodology used in the analysis of impact fees and Quimby Act park land dedication requirements and in lieu fees. The methods used to calculate impact fees and in-lieu fees in this report are intended to satisfy all legal requirements governing such fees, including provisions of the U. S. Constitution, the California Constitution, the California Mitigation Fee Act (Government Code Section s 66000- 66025), and, where applicable,the Quimby Act (Government Code Section 66477). Legal Framework for Developer Fees This brief summary of the legal framework for development fees is intended as a general overview.It was not prepared by an attorney,and should not be treated as legal advice. U. S. Constitution.Like all land use regulations, development exactions, including impact fees, are subject to the 5th Amendment prohibition on taking of private property for public use without just compensation . Both state and federal courts have recognized the impo sition of impact fees on development as a legitimate form of land use regulation, provided the fees meet standards intended to protect against “regulatory takings.” A regulatory taking occurs when regulations unreasonably deprive landowners of property rights protected by the Constitution. In two landmark cases dealing with exactions, the U. S. Supreme Court has held that when a government agency requires the dedication of land or an interest in la nd as a condition of development approval, or imposes ad hoc exactions as a condition of approval on a single development project that do not apply to development generally, a higher standard of judicial scrutiny applies. To meet that standard, the agency must demonstrate an "essential nexus" between such exactions and the interest being protected (See Nollan v. California Coastal Commission,1987) and make an” individualized determination” that the exaction imposed is "roughly proportional" to the burden c reated by development (See Dolan v. City of Tigard, 1994). Until recently, it was widely accepted that legislatively -enacted impact fees that apply to all development in a jurisdiction are not subject to the higher standard of judicial scrutiny flowing from the Nollan and Dolan decisions. But after the U. S. Su preme Court decision in Koontz v. St. Johns Water Management District (2013),state courts have reached conflicting conclusions on that issue. In light of that uncertainty, any agency enacting or im posing impact fees would be wise to demonstrate a nexus and ensure proportionality in the calculation of those fees. 236 City of La Quinta Page 1-2 Development Impact Fee Study August 8, 2019 Defining the “Nexus.”While courts have not been entirely consistent in defining the nexus required to justify exactions and impact fees,that term can be thought of as having the three elements discussed below. We think proportionality is logically included as one element of that nexus, even though it was discussed separately in Dolan v. Tigard.The elements of the nexus discussed below mirror the three “reasonable relationship” findings requir ed by the Mitigation Fee Act for establishment and imposition of impact fees. Need or Impact.Development must create a need for the facilities to be funded by impact fees. All new development in a community creates additional demands on some or all public facilities provided by local government. If the capacity of facilities is not increased to satisfy the additional demand, the quality or availability of public services for the entire community wil l deteriorate. Impact fees may be used to recover the cost of development -related facilities, but only to the extent that the need for facilities is related to the development project subject to the fees. The Nollan decision reinforced the principle that development exactions may be used only to mitigate impacts created by the development projects upon which they are imposed. In this study, the impact of development on facility needs is analyzed in terms of quantifiable relationships between various types of development and the demand for public facilities based on applicable level-of-service standards. This report contains all of the information ne eded to demonstrate compliance with this element of the nexus. Benefit.Development must benefit from facilities funded by impact fees. With respect to the benefit relationship, the most basic requirement is that facilities funded by impact fees be available to serve the development paying the fees. A sufficient benefit relationship also requires that impact fee revenues be segregated from other funds and expended in a timely manner on the facilities for which the fees were charged. Nothing in the U.S. Con stitution or California law requires that facilities paid for with impact fee revenues be available exclusively to development projects paying the fees. Procedures for earmarking and expenditure of fee revenues are mandated by the Mitigation Fee Act, as are procedures to ensure that the fees are either expended expedi tiously or refunded.Those requirements are intended to ensure that developments benefit from the impact fees they are required to pay. Thus, over time, procedural issues as well as substant ive issues can come into play with respect to the benefit element of the nexus. Proportionality.Impact fees must be proportional to the impact created by a particular development project. Proportionality in impact fees depends on properly identifying development-related facility costs and calculating the fees in such a way that those costs are allocated in proportion to the facility needs created by different types and amounts of development. The section on impact fee methodology, below, describes metho ds used to allocate facility costs and calculate impact fees that meet the proportionality standard. California Constitution.The California Constitution grants broad police power to local governments, including the authority to regulate land use and deve lopment. That police power 237 City of La Quinta Page 1-3 Development Impact Fee Study August 8, 2019 is the source of authority for local governments in California to impose impac t fees on development. Some impact fees have been challenged on grounds that they are special taxes imposed without voter approval in violation of Ar ticle XIIIA. However, that objection is valid only if the fees charged to a project exceed the cost of pr oviding facilities needed to serve the project. In that case, the fees would also run afoul of the U. S. Constitution and the Mitigation Fee Act. Articles XIIIC and XIIID, added to the California Constitution by Proposition 218 in 1996, require voter approval for some “property-related fees,” but exempt “the imposition of fees or charges as a condition of property development.” The Mitigation Fee Act.California’s impact fee statute originated in Assembly Bill 1600 during the 1987 session of the Legislature, and took effect in January, 1989. AB 1600 added several sections to the Government Code, beginning with Section 66000. Since that time ,the impact fee statute has been amended from time to time, and in 1997 was officially titled the “Mitigation Fee Act.” Unless otherwise noted, code sections referenced in this report are from the Government Code. The Mitigation Fee Act does not limit the types of capital improvements for which impact fees may be charged. It defines public facilities very broadly to include "public improvements, public services and community amenities." Although the issue is not specifically addressed in the Mitigation Fee Act, it is clear both in case law and statute (see Government Code Section 65913.8) that impact fees may not be used to pay for maintenance or operating costs. Consequently, the fees calculated in this report are based on the cost of capital assets only. The Mitigation Fee Act does not use the term “mitigation fee” except in its official title. Nor does it use the more common term “impact fee.” The Act simply uses the word “fee,” which is defined as “a monetary exaction, other than a tax or special assessm ent…that is charged by a local agency to the applicant in connection with approval of a development projec t for the purpose of defraying all or a portion of the cost of public facilities related to the development project ….” To avoid confusion with other types of fees, this report uses the widely -accepted terms “impact fee” and “development impact fee” which both should be understood to mean “fee” as defined in the Mitigation Fee Act. The Mitigation Fee Act contains requirements for establishing, incre asing and imposing impact fees. They are summarized below. It also contains provisions that govern the c ollection and expenditure of fees and requires annual reports and periodic re -evaluation of impact fee programs. Those administrative requirements ar e discussed in the implementation chapter of this report. Required Findings.Section 66001 requires that an agency establishing, increasing or imposing impact fees, must make findings to: 1.Identify the purpose of the fee; 238 City of La Quinta Page 1-4 Development Impact Fee Study August 8, 2019 2.Identify the use of the fee;and, 3.Determine that there is a reasonable relationship between: a.The use of the fee and the development typ e on which it is imposed; b.The need for the facility and the type of development on which the fee is imposed; and c.The amount of the fee and the facility cost attributable to the development project. (Applies when fees are imposed on a specific project .) Each of those requirements is discussed in more detail below. Identifying the Purpose of the Fees.The broad purpose of impact fees is to pro tect public health, safety and general welfare by providing for adequate public facilities. The specific purpose of the fees calculated in this study is to fund construction of certain capital improvements that will be needed to mitigate the impacts of pla nned new development on City facilities, and to maintain an acceptable level of public services as the City g rows. This report recommends that findings regarding the purpose of an impact fee should define the purpose broadly, as providing for the funding of adequate public facilities to serve additional development. Identifying the Use of the Fees.According to Section 66001,if a fee is used to finance public facilities, those facilities must be identified. A capital improvement pl an may be used for that purpose but is not mandatory if the facilities are identified in a General Plan, a Specific Plan, or in other public documents.In this case, we recommend that the City Council adopt this report as the public document that identifies the facilities to be funded by the fees. Reasonable Relationship Requirement.As discussed above, Section 66001 requires that , for fees subject to its provisions, a "reasonable relationship" must be demonstrated between: 1.the use of the fee and the type of development on which it is imposed; 2.the need for a public facility and the type of development on which a fee is imposed; and, 3.the amount of the fee and the facility cost attributable to the development on which the fee is imposed. These three reasonable relationship requirements, as defined in the statute, mirror the nexus and proportionality requirements often cited in cou rt decisions as the standard for defensible impact fees. The term “dual rational nexus” is often used to characterize the standard used by courts in evaluating the legitimacy of impact fees. The “duality” of the nexus refers to (1) an impact or need created by a development project subject to impact fees, and (2) a benefit to the project from the expenditure of the fees. 239 City of La Quinta Page 1-5 Development Impact Fee Study August 8, 2019 Although proportionality is reasonably implied in the dual rational nexus formulation, it was explicitly required by the Supreme Court in the Dolan case,and we prefer to list it as the third element of a complete nexus. Development Agreements and Reimbursement Agreements.The requirements of the Mitigation Fee Act do not apply to fees collected under development agreements (see Govt. Code Section 66000)or reimbursement agreements (see Govt. Code Section 66003). The same is true of fees in lieu of park land dedication imposed under the Quimby Act (see Govt. Code Section 66477). Existing Deficiencies.In 2006, Section 66001(g) was added to the Mitigation Fee Act (by AB 2751) to clarify that impact fees “shall not include costs attributable to existing deficiencies in public facilities,…” The legislature’s intent in adopting this amendment, as stated in the bill, was to codify the holdings of Bixel v. City of Los Angeles (1989), Rohn v. City of Visalia (1989), and Shapell Industries Inc. v. Governing Board (1991). That amendment does not appear to be a substantive change. It is widely understood that other provisions of law make it improper for impact fees to include costs for correcting existing deficiencies. However, Section 66001(g) also states that impact fees “may include the costs attributable to the increased demand for public facilities reasonably related to the development pr oject in order to (1) refurbish existing facilities to maintain the existing level of service or (2) achieve an adopted level of service that is consistent with the general plan.” (Emphasis added.) Impact Fees for Existing Facilities.Impact fees may be used to recover costs for existing facilities to the extent that those facilities are needed to serve additional development and have the capacity to do so. In other words, it must be possible to show that fees used to pay for existing facilities meet the need and benefit elements of the nexus. The Quimby Act.The Quimby Act (Government Code Section 66477), which pre -dates the Mitigation Fee Act, authorizes a city or county to require dedication of land, payment of fees in - lieu of dedication, or a combin ation of both, for park and recreational purposes as a condition of approval of a residential subdivision. The city or county must adopt an ordinance that includes definite standards for determining the proportion of the subdivision to be dedicated and the amount of the in-lieu fees to be paid. Under the Quimby Act, land dedication and in -lieu fee requirements are based on the ratio of park acres to population in the jurisdiction. That ratio may not exceed three acres per thousand residents unless the existing ratio is higher, but is limited to five acres per thousand. The population added by the subdivision is determined by the number of dwelling units and the average number of persons per household. The population and the average number of persons per hou sehold in the city or county are to be based on the most recent federal census. Park acreage is to be based on the area of neighborhood and community parks in the city or county at the time of that census. 240 City of La Quinta Page 1-6 Development Impact Fee Study August 8, 2019 The land, fees, or combination thereof are to be u sed only for the purpose of developing new or rehabilitating existing neighborhood or community park or recreational facilities to serve the subdivision. A 2013 amendment to the Quimby Act added a provision that in -lieu fees may be used for the purpose of developing new or rehabilitating existing park or recreational facilities in a neighborhood other than the neighborhood in which the subdivision paying the fees is located, if certain conditions are met (see paragraph (a)(3)(B) of Section 66477). “Neighborhood” is not defined in the statute. The Quimby Act requires that the legislative body adopt a general plan or specific plan containing policies and standards for parks and recreational facilities, and that the amount and location of land to be dedicated o r the fees to be paid shall bear a reasonable relationship to the use of the park and recreational facilities by future inhabitants of the subdivision. The Quimby Act provides that if park and recreational services and facilities are provided by a public agency other than a city or county, the amount and location of park land to be dedicated or fees to be paid shall be jointly determined by that other public agency and the city or county having jurisdiction. The land or fees shall be conveyed directly to th e public agency that provides park and recreational services on a communitywide level if that agency elects to accept the land or fee. Only payment of fees may be required for subdivisions containing 50 units or less, or for condominium, stock cooperative or community apartment projects. Impact Fee Calculation Methodology Any one of several legitimate methods may be used to calculate impact fees. The choice of a particular method depends primarily on the service characteristics of, and planning requirements for, the facility type being addressed. Each method has advantages and disadvantages in a particular situation. To some extent they are interchangeable, because they all allocate facility costs in proportion to the needs created by development. Allocating facility costs to various types and amounts of development is central to all methods of impact fee calculation. Costs are allocated by means of formulas that quantify the relationship between development and the need for facilities. In a cost allocation formula, the impact of development is measured by some attribute of development such as added population or added vehicle trips that represent the impacts created by different types and amounts of development. Plan-Based or Improvements-Driven Method.Plan-based impact fee calculations are based on the relationship between a specified set of improvements and a specified increment of development.The improvements are typically identified in a facility plan, while the development is identified in a land use plan that forecasts potential development by type and quantity. Using this method, facility costs are allocated to various categories of development in proportion to the service demand created by each type of development. To calculate plan- 241 City of La Quinta Page 1-7 Development Impact Fee Study August 8, 2019 based impact fees, it is necessary to determine what facilities will be needed to serve a particular increment of new development. With this method, the total cost of eligible facilities is divided by the total units of additional demand to calculate a cost per unit of demand (e.g.a cost per capita for parks). Then, the cost per unit of demand is multiplied by factors representing demand per unit of development (e.g. population per unit) to arrive at a cost per unit of development. This method is somewhat inflexible in that it is based on the relationship between a specific facility plan and a specific land use plan. If either plan changes significant ly the fees will have to be recalculated. Capacity-Based or Consumption-Driven Method. This method calculates a cost per unit of capacity based on the relationship between total cost and total capacity of a system. It can be applied to any type of development, provided the capacity required to serve each increment of development can be estimated and the fa cility has adequate capacity available to serve the development. Since the cost per unit of demand does not depend on the particular type or quantity of development to be served, this method is flexible with respect to changing development plans. In this method, the cost of unused capacity is not allocated to development. Capacity -based fees are most commonly used for water and wastewater systems, where the cost of a system component is divided by the capacity of that component to derive a unit cost. H owever, a similar analysis can be applied to other types of facilities. To produce a schedule of impact fees based on standardized units of development (e.g. dwelling units or square feet of non - residential building area), the cost per unit of capacity is multiplied by the amount of capacity required to serve a typical unit of development in each of several land use categories. Standard-Based or Incremental Expansion Method.Standard-based fees are calculated using a specified relationship or standard th at determines the number of service units to be provided for each unit of development. The standard can be established as a matter of policy or it can be based on the level of service being provided to existing development in the study area. Using the standard-based method, costs are defined on a generic unit -cost basis and then applied to development according to a standard that sets the number of service units to be provided for each unit of development. Park in-lieu and impact fees are commonly calculated this way. The level of service standard for parks is typically stated in terms of acres of parks per thousand residents. A cost -per-acre for park land or park improvements can usually be estimated without knowing the exact size or location of a particular park. The ratio of park acreage to population and the cost per acre for parks is used to calculate a cost per capita. The cost per capita can then be converted into a cost per unit of development based on the average population per dwelli ng unit for various types of residential development. 242 City of La Quinta Page 1-8 Development Impact Fee Study August 8, 2019 Facilities Addressed in this Study Impact/in-lieu fees for the following types of facilities are addressed in this report: Park Land and Improvements Community and Cultural Centers Library Facilities Civic Center Facilities Maintenance Facilities Fire Protection Facilities Transportation Facilities Each of those facilities is addressed in s separate chapter of this report, beginning with Chapter 3.Chapter 2 contains data on existing and fut ure development used in th e impact fee analysis. 243 City of La Quinta Page 2-1 Development Impact Fee Study August 8, 2019 Chapter 2.Development Data This chapter presents data on existing and future development that will be used to calculate impact fees in subsequent chapters of this report. The information in this chapter may be used to establis h levels of service, analyze facility needs, and/or allocate the cost of capital facilities between existing and future development and among various types of new development. Background and Setting La Quinta is located along Highway 111 in the desert res ort area of the Coachella Valley in south-central Riverside County, adjacent to the City of Indian Wells to the west and the City of Indio to the east. Existing development in the City is primarily residential and includes both conventional residential development and gated residential and resort communities, some of which contain one or more golf courses. Major regional commercial development in La Quinta exists along Highway 111 in La Quinta and more is planned. A significant portion of the land within th e City lies on the steep slopes of the Santa Rosa and Coral Reef mountains. Much of that area is preserved as open space. Study Area and Development Scenario The study area for this impact fee study is the existing City, meaning the area within the exist ing corporate boundaries of La Quinta.The future development scenario used in this study assumes buildout of all developable land within those corporate boundaries. La Quinta’s population fluctuates seasonally. Projections in this chapter indicate that undeveloped residential land in the study area has the capacity to accommodate approximately 18,000 additional residents when all of the projected new residential units in the City are occupied. That would be an increase of about 28% from the City’s estimat ed 2019 full- occupancy population of 64, 531, and would bring the total population within the existing corporate boundaries of La Quinta to just over 82,000 when all residential units are occupied. As explained below, the term “potential population” is use d elsewhere in this study to mean the population of the City when all residential units are occupied. Time Frame No time frame is assumed for the buildout of future development projected in this study. The methods used to calculate impact fees in this stud y do not require assumptions regarding the rate or timing of development. 244 City of La Quinta Page 2-2 Development Impact Fee Study August 8, 2019 Development Types The development types defined in this study are intended to reflect actual land uses rather than zoning or general plan land use designations. The following breakd own of development types is used throughout this study: Residential -Single Family Detached Residential –Single-Family Attached Residential –Multi-Family/Other Office General Commercial Tourist Commercial Public Facilities Public Schools Parks Golf Courses Residential Development and Population As indicated in the list above, this study classifies residential development into three categories: Single-Family Detached, Single-Family Attached, which includes condominiums and townhouses, and Multi-Family/Other which includes ap artments and mobile homes. Dwelling units are used as the basic measure of the amount of the amount of existing and future development in each residential category. The graph at right shows the California Department of Finance (DOF) official January 1 population estimates for the City of La Quinta for the years from 2010 through 2018. DOF’s population estimate for La Quinta has grown at an average rate of 1.2% per year since 2010. The City’s estimated January 1, 2018 population of 41,204 is an increase of 3,737 or 10% from a population of 37,467 at the time of the 2010 Census. The figures shown above reflect the City’s total population, including both household population and population in group quarters such as nursing homes. Th e group quarters population in La Quinta is very small, amounting to only 57 people in 2018. It is important to note that the official Census Bureau and Department of Finance population estimates reflect only the City’s permanent population. A substantial percentage of the 245 City of La Quinta Page 2-3 Development Impact Fee Study August 8, 2019 dwellings in La Quinta are occupied seasonally, so the official population estimat es substantially understate the service demand represented by residential development in La Quinta. Once a dwelling unit has been approved and constructed , the City is committed to serve the demand created by that unit, even if that demand is seasonal. Th e City has no control over whether or when such units are occupied. Thus, to better represent the City’s service commitments, this study uses “potential population” to gauge the de mand for population-related public services and the facilities that support them. As used in this study, “potential population” means the number of people who would reside in the City when all dwelling units existing at a particula r time are occupied. Unless otherwise indicated, when the term “population” is used in subsequent cha pters of this report, it will mean potential population. The potential population is estimated for each category of residential development by multiplying the number of units (existing or future) in that category by the average population per unit for that type of development. This study uses data from the U. S. Census Bureau’s 2017 American Community Survey 5 -year Estimates to calculate the population per d welling unit factors for each category of residential development defined in this study. Those factor s are shown in Table 2.1. Non-Residential Development In this study, private, non -residential development is classified into three categories : Office, General Commercial and Tourist Commercial. The Office category is equivalent to the Office Commercial (CO) classification in the General Plan Land Use Element. Tourist Commercial is equivalent to the Tourist Commercial (CT) classification in the Land Use Eleme nt. And the General Commercial category used in this study encompasses all other types of commercial development defined in the Land Use Element. La Quinta has no existing industrial development and none is planned within the existing City. For purposes of impact fee analysis, commercial development can be measured in a number of ways. In this report, the basic measure of office and general commercial development is gross building area in thousands of square feet, which is abbreviated “KSF.” Tourist commerc ial development, which consists of hotels and associated uses, is measured in terms of “rooms,” meaning guest rooms or suites. Several other categories of non-residential development are also used in this study. Those categories are Public Facilities, Schools, Parks and Golf Courses. The amount of existing and future development in the Public Facilities c ategory is measured in terms of building area in KSF. Schools, Parks and Golf Courses are measured in terms of acreage. Demand Variables To calculate impact fees, the relationship between facility needs and development must be quantified in cost allocati on formulas. Certain measurable attributes of development (for 246 City of La Quinta Page 2-4 Development Impact Fee Study August 8, 2019 example, added population or added vehicle trips) are used as “demand variables” in those formulas to represent the impact of different types of development on various types of facilities. Demand variables are selected either because they directly measure the service demand created by various types of development, or because they are reasonabl y correlated with that demand. For example, the need for parks in a community is typically defined in terms of the relationship between population and acres of parks. As population grows, more parks are needed to maintain that relationship. Logically,then, the increase in population related to new residential development is an appropriate yardstick,or demand variable, for use in measuring the impact of development on the need for additional parks. Each demand variable has a specific value for each t ype of development defined in this study. Those values may be referred to as “demand factors.”So, if the demand variable used to calculate impact fees for a particular type of facility is added population, the demand factor for single-family residential d evelopment would be the p opulation per dwelling unit for that specific type of development. Demand variables used in this study are discussed below, and specific demand factors can be found in Table 2.1. Acreage.Acreage is a basic attribute of all development. In this report, net developed acreage is used as a demand variable for some types of facilities. Population.Resident population is used in this study to represent the need for facilities such as parks and community centers that are intended to se rve residents of the City and are not impacted substantially by non-residential development. As discussed above, because of seasonality in La Quinta’s population, the population used to calculate impact fees in thi s study is “potential population” Weighted Peak Hour Trips.Both the number of peak hour trips generated by development and the length of those trips affect the amount of peak hour roadway capacity needed to serve development. The demand variable used to calculate impact fees for transportation facilities in this report is weighted peak hour trips, which is the product of the number of peak hour trips per unit per day and a trip length factor representing the relationship between the average trip length fo r a particular development type and the system-wide average trip length. The best available information on trip lengths by development type are those published by the San Diego Association of Governments (SANDAG) in the publication Traffic Generators.Although the trip lengths presented in that publication do not specifically apply to La Quinta, we believe they reasonably represent the proportional relationship of trip lengths for various types of development in the City. Because the cost of street improvements is allocated to development projects in proportion to their relative share of total demand, it is the relative relationship, rather than the actual trip length that is important in the impact fee calculations. 247 City of La Quinta Page 2-5 Development Impact Fee Study August 8, 2019 It should be noted that the Coachella Valley Association of Governments (CVAG) has developed trip length data for the Coachella Valley. However, those trip lengths are calculated by trip purpose not by development type. In addition, they are intended to reflect travel on regional facilities and do not include the portion of trips on local street networks. Consequently, the CVAG trip length information is not useful for purposes of impact fee analysis. Peak hour trips-per-unit-per-day, trip length factors and weighted peak hour trips for each type of development defined in this study are shown in Table 2.1. Demand Factors Table 2.1 on the next page shows the values of demand factors used in this study, by development type. Existing and Forecasted Development Summaries of existing and forecasted development within the corporate boundarie s of La Quinta, by development type, are presented in Tables 2.2 through 2.4 later in this section. At present, La Quinta is about 78% built out in terms of the total residential units and potential population forecasted for buildout within the existing co rporate boundaries of the City. Commercial and Office development are approximately 63% built out based on square footage, and Tourist Commercial is about 45% built out based on existing and forecasted h otel rooms. Table 2.1 Demand Factors Land Use Category Unit Type Acres per Unit 1 Population per Unit 2 Pk Hr Trips per Unit 3 Trip Length Factor 4 Wtd Pk Hr Trips per Unit 5 Residential - Single Family Detached DU 0.245 2.70 1.01 1.14 1.16 Residential - Single Family Attached DU 0.222 2.30 0.78 1.14 0.89 Residential - Multi-Family/Other DU 0.125 2.20 0.58 1.14 0.66 Office/Medical KSF 0.104 1.49 1.28 1.90 General Commercial KSF 0.104 3.75 0.62 2.34 Tourist Commercial/Lodging Rooms 0.139 0.49 1.10 0.54 Public Facilities KSF 0.270 2.85 0.87 2.48 Schools Acres 1.000 1.30 0.61 0.79 Parks Acres 1.000 1.59 0.32 0.51 Golf Courses Acres 1.000 0.30 0.91 0.27 1 Acres per unit based on projected buildout conditions 2 Average population per unit based on analysis of data from U. S. Census Bureau, 2017 American Community Survey (2017, 5-Year Estimate), Tables B25032 and B25033 3 Peak hour trips per unit per day from the Institute of Transportation Engineers (ITE)Trip Generation Manual, 8th Edition 4 Trip length factor = average trip length for each development type / a system-wide average of 6.9 miles; trip lengths based on data from the San Diego Association of Governments (SANDAG) publication,Traffic Generators (see discussion in text) 5 Weighted peak hour trips per unit = peak hour trips per unit X trip length factor 248 City of La Quinta Page 2-6 Development Impact Fee Study August 8, 2019 As of 2019, single family residential un its make up approximately 80% of all residential units in the City, with the other two categories of residential development comprising about 10% each. That mix is projected to change very little as a re sult of future development forecasted for this study. Table 2.2 on the next p age shows estimated existing development in the City as of January 1, 2018, in terms of acres, units, potential population, and weighted peak hour trips. Table 2.3 on the next page shows forecasted future development within the existing corporate boundaries of the City of La Quinta through buildout. Table 2.2 Existing Development as of January 1, 2019 Land Use Category Developed Acres 1 Unit Type 2 No. of Units 3 Potential Population 4 Wtd Pk Hr Trips 5 Residential - Single Family Detached 4,824 DU 19,780 53,406 22,945 Residential - Single Family Attached 532 DU 2,417 5,559 2,151 Residential - Multi-Family/Other 317 DU 2,530 5,566 1,670 Office/Medical 78 KSF 753 1,431 General Commercial 423 KSF 3,692 8,639 Tourist Commercial/Lodging 207 Room 1,130 610 Public Facilities 88 KSF 360 893 Schools 115 Acre 115 91 Parks 242 Acre 242 123 Golf Courses 4,317 Acre 4,317 1,166 Totals 11,143 64,531 39,719 1 Existing developed acres estimated by the City of La Quinta Design and Development Department 2 DU = dwelling unit; KSF = 1,000 gross square feet of building area; Room = guest room or suite; Acre = net developed acre 3 Number of existing units estimated by the City of La Quinta Design and Development Department 4 Potential population = number of residential units X population per unit from Table 2.1 5 Existing weighted peak hour trips = number of units X weighted peak hour trips per unit from Table 2.1 249 City of La Quinta Page 2-7 Development Impact Fee Study August 8, 2019 Table 2.4 on the next page shows total development at buildout of the existing City. Table 2.3 Additional Development to Buildout of the Existing City Land Use Category Developed Acres 1 Unit Type 2 No. of Units 3 Potential Population 4 Wtd Pk Hr Trips 5 Residential - Single Family Detached 1,294 DU 5,186 14,002 6,016 Residential - Single Family Attached 170 DU 743 1,709 661 Residential - Multi-Family/Other 118 DU 946 2,081 624 Office/Medical 54 KSF 512 973 General Commercial 104 KSF 1,358 3,178 Tourist Commercial/Lodging 138 Room 1,360 735 Public Facilities 32 KSF 84 208 Schools 0 Acre 0 0 Parks 54 Acre 54 28 Golf Courses 817 Acre 817 220 Totals 2,781 17,792 12,643 1 Increase in developed acres estimated by the City of La Quinta Design and Development Dept. 2 DU = dwelling unit; KSF = 1,000 gross square feet of building area; Room = guest room or suite; Acre = net developed acre 3 Increase in the number of units estimated by the City of La Quinta Design and Development Dept. 4 Increase in potential population = increase in residential units X population per unit from Table 2.1 5 Increase in weighted peak hour trips = increase in number of units X weighted peak hour trips per unit from Table 2.1 250 City of La Quinta Page 2-8 Development Impact Fee Study August 8, 2019 Table 2.4 Total Development at Buildout of the Existing City Land Use Category Developed Acres 1 Unit Type 2 No. of Units 3 Potential Population 4 Wtd Pk Hr Trips 5 Residential - Single Family Detached 6,118 DU 24,966 67,408 28,961 Residential - Single Family Attached 702 DU 3,160 7,268 2,812 Residential - Multi-Family/Other 435 DU 3,476 7,647 2,294 Office/Medical 132 KSF 1,265 2,404 General Commercial 527 KSF 5,050 11,817 Tourist Commercial/Lodging 345 Room 2,490 1,345 Public Facilities 120 KSF 444 1,101 Schools 115 Acre 115 91 Parks 296 Acre 296 151 Golf Courses 5,134 Acre 5,134 1,386 Totals 13,924 82,323 52,362 1 Developed acres at buildout estimated by the City of La Quinta Design and Development Department 2 DU = dwelling unit; KSF = 1,000 gross square feet of building area; Room = guest room or suite; Acre = net developed acre 3 Number of units at buildout estimated by the City of La Quinta Design and Development Department 4 Potential population at buildout = residential units X population per unit from Table 2.1 5 Weighted peak hour trips at buildout = number of units X wieghted peak hour trips per unit from Table 2.1 251 City of La Quinta Page 3-1 Development Impact Fee Study August 8, 2019 Chapter 3.Parks and Recreation Impact Fees This chapter updates two different types of fees available for funding parks tha t serve the added population associated with new residential development in La Quinta. 1.Quimby Act In-Lieu Fees -The Quimby Act (Government Code 66477) authorizes the City to require that residential subdivisions dedicat e land for parks or pay fees in lieu of dedication. This chapter calculates the in -lieu fees, which apply only to residential projects that involve a subdivision. 2.Development Impact Fees –Impact fees for parkland acquisition that apply to residential projects not involving a subdivision,and impact fees for construction of park improvements that apply to all residential development projects. Demand Variable A demand variable is an attribute of de velopment that is used to represent the impact of development on a particular type of facilit y. The need for parks is almost universally defined in terms of the population to be served, so the demand variable used to calculate impact fees in this chapter is added population. Because the impact of development on the need for parks is created by an increase in population associated with new residential development, the fees calculated in this chapter will apply only to new residential development. Service Area La Quinta’s park facilities serve the entire City, so impact fees for those facilities w ill apply to all new residential development within the existing corporate boundaries of the City. Existing Facilities Both Quimby Act and park impact fee calculations in this chapter reference a list of the City’s existing parks as part of their basis.Table 3.1 lists La Quinta’s existing parks and breaks down the acreage of each park into city-owned and city-improved acres. 252 City of La Quinta Page 3-2 Development Impact Fee Study August 8, 2019 All acreage of existing parkland shown in Table 3.1 is improved with the exception of two nature preserve areas, Fred Wolff Bear Creek Nature Preserve and Cove Oasis. This analysis estimates that 10 percent of the total acreage of those preserve areas, or 14 acres, is improved as nature trails and public access points. Those 14 acres are treated as developed community park acreage in this analysis. The land under the sports fields at Paige Middle School is owned by the Desert Sands Unified School District, but the City has paid for the impr ovements to that land.Similarly,the land under the Sports Complex is also owned by the Scho ol District, but the City has paid for the improvements to that park. The City is currently developing two new parks not listed in Table 3.1: the 14 -acre Silver Rock Event Venue which is out to bid, and the two -acre X Park skate park which is nearing construction. Quimby Act Fees in Lieu of Park Land Dedication The calculation of fees subject to the stipulations of the Quimby Act differs in a number of ways from park impact fees, which are discussed later in this chapter. Table 3.1: Existing Parks Park Park City-Owned City-Improved Name Type Acres Acres Adams Park Neighborhood Park 3.50 3.50 Civic Center Campus Community Park 7.90 7.90 Desert Pride Park Neighborhood Park 1.00 1.00 Eisenhower Park Mini Park 0.50 0.50 Fritz Burns Park Community Park 12.00 12.00 La Quinta Park Community Park 18.00 18.00 La Quinta Community Park (Frances Hack) Community Park 6.50 6.50 Monticello Park Neighborhood Park 4.00 4.00 Pioneer Park Neighborhood Park 3.20 3.20 Paige Middle School Sports Fields Community Park 0.00 7.00 Saguaro Park Mini Park 0.75 0.75 Sports Complex Community Park 0.00 16.75 Seasons Park Neighborhood Park 5.00 5.00 Velasco Park Mini Park 0.25 0.25 Fred Wolff Bear Creek Nature Preserve Open Space 26.00 2.60 Cove Oasis Open Space 114.00 11.40 Total 202.60 100.35 Source: City of La Quinta 253 City of La Quinta Page 3-3 Development Impact Fee Study August 8, 2019 Methodology and Level of Service Standard –Quimby Act The level of service standard used to calculate Quimby Act fees in lieu of parkland dedication is based on the relationship between population and park acreage, but it must conform to rules specified in the statute. The Quimby Act (Government Code Section 66477) requires use of population data as shown in the most recent available federal census, which at the time of this study is the 2010 Census population. The statute authorizes municipalities to im pose a requirement on residential subdivisions (including parcel maps) that they dedicate land for parks or pay fees in lieu of park land dedication. Those requirements may not exceed the 2010 ratio of park acreage to population if that ratio is between 3.0 acres per thousand and 5.0 acres per thousand. If the 2010 ratio is lower than 3.0 acres per thousand, land dedication and/or in lieu fees may be based on 3.0 acres per thousand. As shown in Table 3.2, La Quinta’s ratio is below the Quimby Act’s minimum standard. Consequently, the park land in-lieu fees calculated later in this chapter are based on the minimum of 3.0 acres per thousand. Fees In-Lieu of Park Land Dedication –Quimby Act Per Chapter 13.48.060 of the City’s Municipal Code, Quimby Act pa rkland acquisition in -lieu fees “…shall be based on the fair market value of land within a subdivision.” As such, the City calculates these fees on a case by case basis, depending on the market value of land under each subdivision at the time the project i s approved using the following formula to determine the fee: Table 3.2: Level of Service - Quimby Act Facility Acres1 Population2 Acres per Capita 3 Acres per 1000 4 Total Park Acres - 2010 (Quimby) 100.35 58,610 0.00171 1.71 1 All parks shown in Table 3.1 were in existence in 2010 2 Reflects 2010 potential population based on 100% occupancy of 2010 dwelling units 3 Acres per capita = existing acres / existing population 4 Acres per 1,000 population = acres per capita X 1,000 254 City of La Quinta Page 3-4 Development Impact Fee Study August 8, 2019 Quimby Act Park Land Acquisition In-lieu fee = Number of dwelling units x Population per dwelling unit by development type x .003 acres per capita x market value of land per acre A review of the in-lieu fees charged by the City since 2010 shows that per-acre in-lieu fees have varied widely from project-to-project.As an alternative, the City Council could choose to establish a standardized schedule of in-lieu fees based on the estimated average Citywide cost- per-acre for park land used in this chapter.Table 3.3 shows what those in-lieu fees would be if the City Council chooses this alternative. Table 3.3: Park Land In-Lieu Fees per Unit Development Cost per Population Impact Fee Admin Adj Impact Type Units 1 Capita 2 per DU 3 per Unit 4 Charge 5 Fee per Unit 6 Residential - Single Family Detached DU $1,306.80 2.70 $3,528.36 $11.43 $3,539.79 Residential - Single Family Attached DU $1,306.80 2.30 $3,005.64 $9.74 $3,015.38 Residential Multi-Family/Other DU $1,306.80 2.20 $2,874.96 $9.31 $2,884.27 1 Units of development: DU = dwelling unit 2 Cost per capita = 0.003 acres per capita X $435,600 per acre 3 See Table 2.1 4 Impact fee per unit = cost per capita X population per dwelling unit 5 Administrative charge based on 0.324% of the impact fee per unit; see discussion in text 6 Adjusted impact fee per unit including administrative charge 255 City of La Quinta Page 3-5 Development Impact Fee Study August 8, 2019 Park Impact Fees This chapter calculates two types of impact fees for parks: 1.Park land acquisition impact fees, which apply to residential projects that do not involve a subdivision. 2.Park improvement impact fees, which apply to all residential development in addition to any park land dedication,park land in-lieu (Quimby Act) fees, or park land acquisition impact fees. Park improvement impact fees would be used to construct park improvements to serve the added population associated with new residential development. Methodology-Park Impact Fees The method used to calculate development impact fees in this chapter is the standar d-based method discussed in Chapter 1. That method calculates impact fees using a level -of-service standard and the estimated cost of new facil ities needed to maintain that standard. The level of service standard used in this chapter is discussed below. Level of Service Standard –Park Impact Fees The level of service standard used to calculate the park impact fees in this chapter is the City’s existing level of service, defined as the relationship between existing park acreage and existing population.Table 3.4 shows the ratio of park acreage to population based on the estimated potential population as of January 1, 2019. See Chapter 2 for a disc ussion of potential population. Cost Per Capita –Park Impact Fees The following tables convert the acres-per-capita factor from Table 3.4 into costs per capita. Table 3.5 calculates the cost per capita for park land acquisition impact fees, which can be applied to residential projects that do not involve a subdivision. Table 3.4: Existing Level of Service - Impact Fees Facility Acres1 Existing Population2 Acres per Capita Acres per 1000 Existing Park Acres 100.35 64,531 0.00156 1.56 1 See Table 3.1 2 The City's 2019 potential population based on 100% occupancy of all existing dwelling units; see Table 2.2 3 Acres per capita = existing acres / existing population 4 Acres per 1,000 population = acres per capita X 1,000 256 City of La Quinta Page 3-6 Development Impact Fee Study August 8, 2019 Table 3.6 calculates the cost per capita for park improvement impact fees. Park Land Acquisition Impact Fees per Unit Table 3.7 calculates park land acquisition impact fees per dwelling unit based on the cost per capita from Table 3.5 and the population per dwelling unit from Table 2.1 and then adds a small administrative charge to arrive at the adjuste d impact fee per unit. The 0.324% administrative charge is intended to recover the cost of this study over five years. It is calculated by dividing the cost of the study by estimated revenue that would be generated over five years by impact fees calculated in this study (50,000 / 15,455,871 = 0.00324). Table 3.5: Cost per Capita - Park Land Acquisition Impact Fees Cost Cost per Acres per Cost per Component Acre 1 Capita 2 Capita 3 Park Land Acquisition $435,600 0.00156 $677.39 1 Cost per acre estimated by the City of La Quinta 2 See Table 3.4 3 Cost per capita = cost per acre X acres per capita Table 3.6: Cost per Capita - Park Improvements Cost Cost per Acres per Cost per Component Acre 1 Capita 2 Capita 3 Park Improvements $500,000 0.00156 $777.53 1 Cost per acre estimated by the City of La Quinta 2 See Table 3.4 3 Cost per capita = cost per acre X acres per capita Table 3.7: Park Land Acquisition Impact Fees per Unit Development Cost per Population Impact Fee Admin Adj Impact Type Units 1 Capita 2 per DU 3 per Unit 4 Charge 5 Fee per Unit 6 Residential - Single Family Detached DU $677.39 2.70 $1,828.95 $5.93 $1,834.88 Residential - Single Family Attached DU $677.39 2.30 $1,558.00 $5.05 $1,563.04 Residential Multi-Family/Other DU $677.39 2.20 $1,490.26 $4.83 $1,495.09 1 Units of development: DU = dwelling unit 2 See Table 3.5 3 See Table 2.1 4 Impact fee per unit = cost per capita X population per dwelling unit 5 Administrative charge based on 0.324% of the impact fee per unit; see discussion in text 6 Adjusted impact fee per unit including administrative charge 257 City of La Quinta Page 3-7 Development Impact Fee Study August 8, 2019 Park Improvement Impact Fees per Unit Table 3.8 calculates park improvement impact fees per dwelli ng unit based on the cost per capita from Table 3.6 and the population per dwelling unit from Table 2.1 and then adds a small administrative charge to arrive at the adjuste d impact fee per unit. The 0.324% administrative charge is intended to recover the cost of thi s study over five years. It is calculated by dividing the cost of the study by estimated revenue that would be generated over five years by impact fees calculated in this stud y (50,000 / 15,455,871 = 0.00324). Projected Revenue Table 3.9 shows projected revenue from the in-lieu fees and impact fees for park land acquisition calculated in this chapter.Because the fees are different for subdivisions and non- subdivision projects, the only way to project revenue from those fees is to make assumptions about how many future units will be in subdivisions. For purposes of projecting revenue, we are assuming that all new units in the Single Family Detached and Single Family Attached c ategories will involve a subdivision, and that no future units in the Multi-Family/Other category will involve a subdivision.Potential revenue from future residential development is projected by applying the appropriate in-lieu fees or impact fees per unit from Tables 3.3 and 3.7 to added units of residential development from Table 2.3. Table 3.8: Park Improvement Impact Fees per Unit Development Cost per Population Impact Fee Admin Adj Impact Type Units 1 Capita 2 per DU 3 per Unit 4 Charge 5 Fee per Unit 6 Residential - Single Family Detached DU $777.53 2.70 $2,099.33 $6.80 $2,106.13 Residential - Single Family Attached DU $777.53 2.30 $1,788.32 $5.79 $1,794.11 Residential Multi-Family/Other DU $777.53 2.20 $1,710.57 $5.54 $1,716.11 1 Units of development: DU = dwelling unit 2 See Table 3.6 3 See Table 2.1 4 Impact fee per unit = cost per capita X population per dwelling unit 5 Administrative charge based on 0.324% of the impact fee per unit; see discussion in text 6 Adjusted impact fee per unit including administrative charge 258 City of La Quinta Page 3-8 Development Impact Fee Study August 8, 2019 Table 3.10 shows projected revenue from the impact fees for park improvements calculated in this chapter.Potential revenue from future residential development is projected by applying the impact fees per unit from Ta ble 3.8 to added units of residential development from Table 2.3. Updating the Fees The in-lieu fees and impact fees calculated in this chapter are based the current estimated cost of park land and improvements.We recommend that the fees be reviewed periodically and adjusted as needed using local cost data or an index such as the Engineering News Record Construction Cost Index (CCI) Nexus Summary As discussed in Chapter 1 of this report, Section 66001 of the Mitigation Fee Act requires that an agency establishing, increasing or imposin g impact fees, must make findings to : Table 3.9: Projected Impact Fee Revenue from Park Land In-Lieu and Impact Fees Development Fee per Future Projected Type Units 1 Unit 2 Units 3 Revenue 4 Residential - Single Family Detached DU $3,539.79 5,186 18,357,361$ Residential - Single Family Attached DU $3,015.38 743 2,240,426$ Residential Multi-Family/Other DU $1,495.09 946 1,414,352$ Total 22,012,139$ 1 Units of development: DU = dwelling unit 2 Fee per unit for Single Family Detached and Single Family Attached from Table 3.3; Fee for Multi-Family/Other from Table 3.7 3 See Table 2.3 4 Impact fee per unit = cost per capita X population per dwelling unit Table 3.10: Projected Impact Fee Revenue from Park Improvement Impact Fees Development Fee/Unit of Future Projected Type Units 1 Development Units Revenue Residential - Single Family Detached DU $2,106.13 5,186 10,922,405$ Residential - Single Family Attached DU $1,794.11 743 1,333,026$ Residential Multi-Family/Other DU $1,716.11 946 1,623,438$ Total 13,878,869$ 1 Units of development: DU = dwelling unit 2 See Table 3.8 3 See Table 2.3 4 Impact fee per unit = cost per capita X population per dwelling unit 259 City of La Quinta Page 3-9 Development Impact Fee Study August 8, 2019 Identify the purpose of the fee; Identify the use of the fee; and, Determine that there is a reasonable relationship between: a.The use of the fee and the development type on which it is imposed; b.The need for the facility and the type of development on which the fee is imposed; and c.The amount of the fee and the facility cost attributable to the development project. Satisfying those requirements also ensures that the fees meet the “rational nexus” and “rough proportionality” standards enunciated in leading court decisions bearing on impact fees and other exactions. (For more detail, see “Legal Framework for Impact Fees” in Chapter 1.) The following paragraphs explain how the impact fees calculated in this chapter satisfy those requirements. Purpose of the Fee:The purpose of the impact fees calculated in this chapter is to mitigate the impact of new development on the need for parks in La Quinta. Use of the Fee.Impact fees calculated in this chapter will be used t o provide additional parks to mitigate the impacts of new development in the City. As provided by the Mitigation Fee Act, revenue from impact fees may al so be used for temporary loans from one impact fee fund or account to another. Reasonable Relationship between the Use of the Fee and the Development Type on Which It Is Imposed.The impact fees calculated in this chapter will be used to provide additional parks to serve the needs of additional population associated with new residential development in La Quinta. Reasonable Relationship between the Need for the Facilities and the Type of Development on Which the Fee Is Imposed.New residential development increases the need for parks to maintain the existing level of service, as described earlier in this cha pter. Without additional parks, the increase in population associated with new residential development would result in a reduction in the level of service provided to all residents of the City. Reasonable Relationship between the Amount of the Fee and the Facility Cost Attributable to the Development Project.The amount of the Parks and Recreation impact fees charged to a residential development project will depend on the increase in population associated with that project. The fees per unit of development calculated in this chapter for each type of residential development are based on the estimated average population per unit for that type of development in La Quinta. Thus, the fee charged to a development project reflects the impact of that project on the need for parks in the City. 260 City of La Quinta Page 4-1 Development Impact Fee Study August 8, 2019 Chapter 4.Community and Cultural Centers This chapter calculates impact fees for community and cultural centers needed to serve future development in La Quinta. This fee was formerly known as the Community Centers impact fe e. The scope of the fee has been broadened in t his study to include cultural facilities such as the La Quinta Museum. Previously, only portions o f the museum and Boys and Girls Club used as meeting rooms were covered by the Community Centers impact fee. The impact fees calculated in this chapter are ba sed on the City’s existing investment per capita in community and cultural center facilities, and will be used to provide additional facilities to maintain the current level of service as the City continues to grow. Methodology The method used to calculate impact fees in this chapter is the standard -based method discussed in Chapter 1. That method calculates impact fees using a level-of-service standard and the estimated cost of new facilities needed to maintai n that standard.The level of service standard used in this chapter is discussed below. Demand Variable A demand variable is an attribute of de velopment that is used to represent the impact of development on a particular type of facility. See Chapter 2 f or a general discussion of demand variables and demand factors. Community and cultural center facilities are intended to serve residents of the C ity, so, population will be used as the demand variable in calculating impact fees for those facilities. Since the fees are based on the added population asso ciated with new residential development, these impact fees will apply only to residential developm ent. Service Area La Quinta’s community and cultural centers serve the entire City, so impact fees for those facilities will apply to all new residential development within the existing corporate boundaries of the La Quinta. Level of Service The level of service standard used to calculate impact fees for community and cultural centers in this chapter is the existing level of service, defined as the City’s current capital investment in those facilities per capita of population. The fees calculat ed in this chapter are designed to maintain that existing level of service as the City grows. 261 City of La Quinta Page 4-2 Development Impact Fee Study August 8, 2019 Existing Facilities Table 4.1 lists the City’s existing community and cultural center facilities and the estimated value of the existing assets associated with those fac ilities, including land, buildings, and furniture, fixtures and equipment . Costs for site improvements such as parking lots and landscaping are included in th e building cost. The City has acquired two sites adjacent to the La Quinta Museum for a Village Ar t Plaza and Promenade, which are programmed for development in the 2020 -21 City budget. The cost of those two sites is included in Table 4.1, but an estimated $3.3 million in future costs for improvements on those sites is not included. The current balance in the Community Center Impact Fee Fund is shown as an existing asset in Table 4.1 and represents additional f acilities that will be constructed with funds t hat have previously been collected from development projects in the City through impact fees. Cost per Capita Table 4.2 calculates an average replacement cost per capita for Community and Cultural Center facilities based on the total impact fee cost bas is from Table 4.1 and the 2019 potential population of the City. See Chapter 2 for a discussion of potential population. Table 4.1: Existing Community and Cultural Center Facilities Cost Building Est Building Est FF&E Site Est Site Impact Fee Component Sq Ft 1 Value 2 Value 3 Acres 4 Value 5 Cost Basis 6 La Quinta Wellness Center 21,900 10,750,000$800,000$2.10 1,372,140$12,922,140$ La Quinta Museum/Historical Society 9,551 4,150,000$1,124,567$0.30 196,020$5,470,587$ Boys and Girls Club Building 5,000 2,200,320$16,018$1.50 980,100$3,196,438$ Village Art Plaza Site (Lumberyard)Actual Purchase Price 526,825$ Promenade Site on Ave Montezuma Actual Purchase Price 509,655$ Community Center Impact Fee Fund Balance 7 149,681$ Total 17,100,320$1,940,585$2,548,260$22,775,326$ 1 Existing square feet from the City of La Quinta Asset Report 2 Estimated building value from City property insurance cost analysis 3 Estimated value of existing furniture, fixtures and equipment (FF&E) from the City property insurance cost analysis and the City asset report 4 Site acres provided by the City of La Quinta 5 Estimated site value based on $653,400 per acre ($15.00 per square foot) 6 Impact fee cost basis = the sum of the amounts for the building, FF&E, and site value. 7 Community Center impact fee fund balance as of 12/31/18 262 City of La Quinta Page 4-3 Development Impact Fee Study August 8, 2019 Impact Fees per Unit of Development Table 4.3 shows the calculation of impact fees per unit of development by development type for community and cultural center facilities. Impact fees per unit are calculated using the impact fee cost per capita from Table 4.2 and population per unit factors from Table 2.1. A small administrative charge is then added to arrive at the adjusted impact fee per unit. The 0.324% administrative charge is intended to recover the cost of this study over five years. It is calculated by dividing the cost of the study b y estimated revenue that would be generated over five years by impact fees calculated in this stu dy (50,000 / 15,455,871 = 0.00324). Projected Revenue Table 4.4 shows projected revenue from the impact fees calculated in this chapter. Potential revenue for the added residential development shown in Tabl e 2.3 is projected by applying the impact fees per unit from Table 4.3 to added units of residential development from Table 2.3. Table 4.2: Community and Cultural Center Facilities - Cost per Capita Total Impact Fee 2019 Potential Impact Fee Cost Cost Basis 1 Population 2 per Capita 3 $22,775,326 64,531 $352.94 1 See Table 4.1 2 See Table 2.2 3 Cost per capita = total impact fee cost basis / 2019 potential population Table 4.3: Community and Cultural Center Facilities - Impact Fees per Unit Development Cost per Population Impact Fee Admin Adj Impact Type Units 1 Capita 2 per Unit 3 per Unit 4 Charge 5 Fee per Unit 6 Residential - Single Family Detached DU 352.94$2.70 952.93$$3.09 $956.02 Residential - Single Family Attached DU 352.94$2.30 811.75$$2.63 $814.38 Residential - Multi-Family/Other DU 352.94$2.20 776.46$$2.52 $778.98 1 Units of development; DU = dwelling unit 2 See Table 4.2 3 See Table 2.1 4 Impact fee per unit = cost per capita X population per unit 5 Administrative charge based on 0.324% of the impact fee per unit; see discussion in text 6 Adjusted impact fee per unit including administrative charge 263 City of La Quinta Page 4-4 Development Impact Fee Study August 8, 2019 Updating the Fees The impact fees calculated in this chapter are based on the current value of Community and Cultural Center facilities. We recommend that the costs used i n this chapter be reviewed periodically and adjusted in the event that updated costs become available. Nexus Summary As discussed in Chapter 1 of this report,Section 66001 of the Mitigation Fee Act requires that an agency establishing, increasing or impo sing impact fees, must make findings to: Identify the purpose of the fee; Identify the use of the fee; and, Determine that there is a reasonable relationship b etween: a.The use of the fee and the development type on which it is imposed; b.The need for the facility and the type of development on which the fee is imposed; and c.The amount of the fee and the facility cost attributable to the development project. Satisfying those requirements also ensures that the fees meet the “rational nexus” and “rough proportionality” standards enunciated in leading court decisions bearing on impact fees and other exactions. (For more detail, see “Legal Framework for Impact F ees” in Chapter 1.) The following paragraphs expla in how the impact fees calculated in this chapt er satisfy those requirements. Purpose of the Fee:The purpose of the impact fees calculated in this chapter is to mitigate the impact of new development on the need for community and cultural center facilitie s in La Quinta. Table 4.4: Community and Cultural Center Impact Fees - Projected Revenue Development Adj Impact Future Projected Type Units 1 Fee per Unit 2 Units 3 Revenue 4 Residential - Single Family Detached DU $956.02 5,186 4,957,895$ Residential - Single Family Attached DU $814.38 743 605,087$ Residential - Multi-Family/Other DU $778.98 946 736,911$ Total 6,299,893$ 1 Units of development; DU = dwelling unit 2 See Table 4.3 3 See Table 2.3 4 Projected revenue = impact fee per unit X future units 264 City of La Quinta Page 4-5 Development Impact Fee Study August 8, 2019 Use of the Fee.Impact fees calculated in this chapter will be used to provide additional community and cultural center facilities to mitigate the impacts of new development in the City. As provided by the Mitigation Fee Act, revenue from impact fees may also be used for temporary loans from one impact fee fund or account to another. Reasonable Relationship between the Use of the Fee and the Development Type o n Which It Is Imposed.The impact fees calculated in this chapter will be used to provide additional community and cultural cente r facilities to serve the needs of additional population associated with new residential development in La Quinta. Reasonable Relationship between the Need for the Facilities and the Type of Development on Which the Fee Is Imposed.New development increase s the need for community and cultural center facilities to maintain the existing level of service, as described earlier in this chapter. Without additional community and cultural center facilities, the increas e in population associated with new residential development would result in a reduction in the level of service provided to all residents of the City. Reasonable Relationship between the Amount of the Fee and the Facility Cost Attributable to the Development Project.The amount of the community and cu ltural center facilities impact fees charged to a residential development project will depend on the increase in population associated with that project.The fees per unit of development calculated in this ch apter for each type of residential development are based on the population per unit for that type of development in La Quinta. Thus, the fee charged to a development project reflects the impact of that project on the need for community and cultural center facilities in the City. 265 City of La Quinta Page 5-1 Development Impact Fee Study August 8, 2019 Chapter 5.Library This chapter calculates impact fees for the La Quinta Library, which is owned by the City of La Quinta and operated by the Riverside County Library System. The existing Library was designe d to serve the projected buildout population of the area within the existing cor porate boundaries of the City. Methodology The method used to calculate impact fees in this chapter is the plan-based method discussed in Chapter 1. That method calculates impa ct fees by allocating the cost of specific facilities to the development served by those facilities.In this case, since the Library is designed to serve a buildout population, new development is effectively buying -in to the existing Library through impact fees. The Library impact fees calculated in this chapter represent new developm ent’s proportionate share of the cost of the existing Library facilities and materials. Demand Variable A demand variable is an attribute of development that is used to repre sent the impact of development on a particular type of facility. See Chapter 2 f or a general discussion of demand variables and demand factors. The La Quinta Library is intended to serve residents of the City, so, population will be used as the demand variable in calculating impact fees for that facility. Since population increase is associated with new residential development, these impact fees will apply only to residential development. Service Area La Quinta’s library serves the entire City, so the library impact fees calculated in this chapter will apply to all new residential development within the existing corporate limits of the City. Level of Service The level of service used in calculating the Library impact fees is the relationship between the cost of existing Library facilities and materials and the projected potential po pulation at buildout of existing and future residential development in the area within La Quinta’s existing corporate boundaries. That relationship is defined by th e cost per capita shown in Table 5.2 on the next page. Existing Facilities Table 5.1 shows the original cost of the existing La Quinta Library building, the building site, the facility’s furniture, fixtures and equipment, and the books and other materials in the library’s 266 City of La Quinta Page 5-2 Development Impact Fee Study August 8, 2019 collection.Costs for site improvements such as parking lots and landscapin g are included in the building cost. Actual interest on the Redevelopment Agency loan used to fund a portion of the cost of the La Quinta Library is also shown in Table 5.1. That interest cost has not been adjusted for inflation, which would have increased the amount. Cost per Capita Table 5.2 calculates an average cost per capita for Library facilities based on the total impact fee cost basis from Table 5.1 and the buildout potential population o f the area within the existing corporate boundaries of the City. Impact Fees per Unit of Development Table 5.3 shows the calculation of impact fees per unit of development by development type for Library facilities and materials. Impact fees per unit ar e calculated using the impact fee cost per capita from Table 5.2 and population per unit factors from Table 2.1 and then adds a small administrative charge to arrive at the adjusted impact fee per unit. The 0.324% administrative charge is intended to recover the cost of this study over five years. It is calculate d by dividing Table 5.1: Existing Library Facility and Materials Cost Building Original Est FF&E Site Original Impact Fee Component Sq Ft 1 Bldg Cost 2 Value 3 Acres 4 Site Cost 5 Cost Basis 6 La Quinta Library Building 20,517 8,500,000$1,025,000 2.40 313,632$9,838,632$ Library Materials (71, 480 volume @ $25.00 each)1,787,000$ Nominal Interest on RDA Library Loan since 2005 435,319$ Total 12,060,951$ 1 Existing square feet from the City of La Quinta Asset Report 2 Building value from City property insurance cost analysis 3 Estimated value of existing furniture, fixtures and equipment (FF&E) from the City property insurance cost analysis and the City asset report 4 Site acres provided by the City of La Quinta 5 Original site cost based on $130,680 per acre ($3.00 per square foot) 6 Impact fee cost basis = the sum of the amounts for the building, FF&E, and site value. Table 5.2: Library Facility and Materials - Cost per Capita Total Impact Fee Buildout Potential Impact Fee Cost Cost Basis 1 Population 2 per Capita 3 $12,060,951 82,323 $146.51 1 See Table 5.1 2 See Table 2.2; see discusion of potential population in Chapter 2 3 Cost per capita = total impact fee cost basis / 2019 potential population 267 City of La Quinta Page 5-3 Development Impact Fee Study August 8, 2019 the cost of the st udy by estimated revenue that would be generated over five years by impact fees calculated in this study (50,000 / 15,455,871 = 0.00324). Projected Revenue Table 5.4 shows projected revenue from the impact fees calculated in this chapter. Potential revenue for the added residential development shown in Table 2.3 is projected by applying the adjusted impact fees per unit from Table 5.3 to added units of residential de velopment from Table 2.3. Construction of the La Quinta Library was funded, in part, by a loan from the City’s Redevelopment Agency (RDA) before the State of California eliminated redevelopment agencies in 2012. That loan is now in the portfolio of the Successor Agency that is responsible for winding down the business of the now-dissolved La Quinta Redevelopment Agency. Impact fees collected for the Library will be used primarily to repay principal and interest on the outstanding debt to the Successor Agency. The impact fees may also be used to pay for library materials. Table 5.3: Library Facility and Materials - Impact Fees per Unit Development Cost per Population Impact Fee Admin Adj Impact Type Units 1 Capita 2 per Unit 3 per Unit 4 Charge 5 Fee per Unit 6 Residential - Single Family Detached DU 146.51$2.70 395.57$$1.28 $396.85 Residential - Single Family Attached DU 146.51$2.30 336.97$$1.09 $338.06 Residential - Multi-Family/Other DU 146.51$2.20 322.32$$1.04 $323.36 1 Units of development; DU = dwelling unit 2 See Table 5.2 3 See Table 2.1 4 Impact fee per unit = cost per capita X population per unit 5 Administrative charge based on 0.324% of the impact fee per unit; see discussion in text 6 Adjusted impact fee per unit including administrative charge Table 5.4: Library Facility and Materials Impact Fees - Projected Revenue Development Adj Impact Future Projected Type Units 1 Fee per Unit 2 Units 3 Revenue 4 Residential - Single Family Detached DU 396.85$5,186 2,058,076$ Residential - Single Family Attached DU 338.06$743 251,178$ Residential - Multi-Family/Other DU 323.36$946 305,900$ Total 2,615,154$ 1 Units of development; DU = dwelling unit 2 See Table 5.3 3 See Table 2.3 4 Projected revenue = impact fee per unit X future units 268 City of La Quinta Page 5-4 Development Impact Fee Study August 8, 2019 There is no set repayment schedule or interest rate for that loan, so it is not possible to estimate the ultimate cost of retiring that debt. The Successor Agency charges interest at th e rate earned by the City’s investment pool, and repayment is based on the availability of impact fee revenue. The current balance on that loan is approximately $1.552 million. The total cost of the facility continues to increases over time because of int erest on the balance of the RDA loan. However, the interest rate being charged on that loan is quite low, and the revenue projected in Table 5.4 appears adequate to cover principal and interest payments until that loan is retired. Based on the rate at whic h Library impact fees have been collected since 2008, full repayment of the RDA loan is likely to take many years. Updating the Fees The impact fees calcu lated in this chapter are based on the original cost of the library facility and those costs are fixed . However, interest on the outstanding loan continues to a ccumulate, so we recommend that these fees be reviewed periodically and adjusted if necessary to reflect actual costs. Nexus Summary As discussed in Chapter 1 of this report,Section 66001 of the Mitigation Fee Act requires that an agency establishing, increasing or imposing impact fees,must make findings to: Identify the purpose of the fee; Identify the use of the fee; and, Determine that there is a reasonable relationship between: a.The use of the fee and the development type on which it is imposed; b.The need for the facility and the type of development on which the fee is imposed; and c.The amount of the fee and the facility cost attributable to the development project. Satisfying those requirements also ensures that the fees meet the “rational nexu s” and “rough proportionality” standards enunciated in leading court decisions bearing on impact fees and other exactions. (For more detail, see “Legal Framework for Impact Fees” in Chapter 1.) The following paragraphs explain how the impact fees calculate d in this chapter satisfy those requirements. Purpose of the Fee:The purpose of the impact fees calculated in this chapter is to pay for new development’s proportionate share of the cost of providi ng library facilities to the residents of La Quinta. 269 City of La Quinta Page 5-5 Development Impact Fee Study August 8, 2019 Use of the Fee.Impact fees calculated in this chapter will be used to repay the Redevelopment Agency loan that was used to fund a portion of the cost of the La Quinta Library and to acquire additional materials for the Library’s collection. As provided by the Mitigation Fee Act, revenue from impact fees may also be used for temporary loans from one impact fee fund or account to another. Reasonable Relationship between the Use of the Fee and the Development Type on Which It Is Imposed.The impact fees calculated in this chapter will be used to retire debt that was used to pay for future development’s share of the cost of the La Quinta Library. Reasonable Relationship between the Need for the Facilities and the Type of Development on Which the Fee Is Imposed.The La Quinta Library was constructed with adequate capacity to serve the anticipated buildout population of the area within the existing City Limits of La Quinta. Those impact fees are imposed on residential development because added residential development drives the growth of the City’s population. Reasonable Relationship between the Amount of the Fee and the Facility Cost A ttributable to the Development Project.The amount of the library impact fe es charged to a residential development project will depend on the increase in population associated with that project. The fees per unit of development calculated in this chapter for each type of residential development are based on the population per un it for that type of development in La Quinta. Thus, the fee charged to a development project reflects that project’s proportionate share of the cost of library facilities in the City. 270 City of La Quinta Page 6-1 Development Impact Fee Study August 8, 2019 Chapter 6.Civic Center This chapter calculates impact fees for the La Quinta Civic Center.When the most recent Civic Center expansion was constructed, the City expected that the expanded facility would have adequate capacity to serve all planned development within the corporate boundaries of the existing City through buildout.However, that expectation has changed as the City began to bring in-house more services that were formerly contracted out. So now, space in the Civic Center is at a premium and additional space will be required as the City continues to grow. Methodology The method used to calculate impact fees in this chapter is the standard-based method discussed in Chapter 1. That method calculates impact fees using a level-of-service standard and the estimated cost of new facilities needed to maintain that standar d.The level of service standard used in this chapter is discussed be low. Demand Variable A demand variable is an attribute of development that is used to represent the impact of development on a particular type of facility. See Chapter 2 for a general d iscussion of demand variables and demand factors. The City departments housed in the Civic Center provide services of one kind or another to all private development in the City, but most of them are not line departments providing services directly to City residents and businesses. In a number of cases, those departments are responsible for management, administrative and support functions essential to City government. It is self-evident that the need for those functions in any city generally increases as th e City grows. But given the variety of functions located in the Civic Center, and the indirect relationship between development and the demand for some of those services, no single attribute of development neatly represents the impact of development on spa ce needs in that facility. Thus, it is reasonable to use a generalize d measure of development to represent service demand for purposes of calculating impact fees for the Civic Center. Acreage is the most common attribute of all types of development, and d eveloped acreage will be used here as the demand variable representin g the impact of development on the need for Civic Center facilities. Service Area La Quinta’s Civic Center serves the entire City, so the Civic Center impact fees calculated in this chapter will apply to all new private development within the existing corporate boundaries of the City. 271 City of La Quinta Page 6-2 Development Impact Fee Study August 8, 2019 Level of Service The level of service standard used to calculate Civic Center impact fees in this chapter is the existing level of service, defined as th e City’s current capital investment in those facilities per developed acre. The fees calculated in this chapter are designed to maintain that existing level of service as the City grows. Existing Facilities Table 6.1 shows the original cost of the existing La Quinta Civic Center building, the building site, and the facility’s furniture, fixtures and equipment.Costs for site improvements such as parking lots and landscaping are included in the building cost. Cost per Developed Acre Table 6.2 on the next page calculates an average cost per developed acre f or the Civic Center using the impact fee cost basis from Table 6.1 and the acreage of existing private development within the corporate boundaries of the City. The developed acreage shown in Table 6.2 excludes public facilities, schools and parks which do not impact the n eed for Civic Center facilities, and includes only 5% of golf course acreage. Golf courses have a very limited impact on the demand for City services housed in the Civic Center. Table 6.1: Existing Civic Center Facility Cost Building Building Est FF&E Site Site Impact Fee Component Sq Ft 1 Cost 2 Value 3 Acres 4 Cost 5 Cost Basis 6 Civic Center 54,553 30,297,716$2,000,000 5.50 718,740$33,016,456$ Total 33,016,456$ 1 Existing square feet from the City of La Quinta Asset Report 2 Original building cost by the City of La Quinta 3 Estimated value of existing furniture, fixtures and equipment from the City property insurance cost analysis and the City asset report 4 Site acres provided by the City of La Quinta 5 Estimated site value based on original costs of $130,680 per acre ($3.00 per square foot) 6 Impact fee cost basis = the sum of the amounts for the building, FF&E, and site value. Table 6.2: Civic Center - Cost per Developed Acre Impact Fee Adjusted Existing Cost per Cost Basis 1 Dev Acreage 2 per Acre 3 $33,016,456 6,597 $5,004.88 1 See Table 6.1 2 Adjusted existsing developed acreage excludes public facilities, schools, parks and includes 5% of golf course acreage; see Table 2.2 3 Cost per acre = impact fee cost basis / adjusted existing developed acreage 272 City of La Quinta Page 6-3 Development Impact Fee Study August 8, 2019 Impact Fees per Unit of Development Table 6.3 shows the calculation of impac t fees per unit of development by development type for the Civic Center. Impact fees per unit are calculated using the impac t fee cost per acre from Table 6.2 and acres-per-unit factors from Table 2.1, except for golf courses which are included at a rate of 0.05 acres per acre of golf course. No impact fees are calculated for public facilities, schools and parks which do not im pact the Civic Center. Table 6.3 also adds a small administrati ve charge to arrive at the adjusted impact fee per unit. The 0.324% administrative charge is intended to recover the cost of this study over five years. It is calculated by dividing the cost of the study by estimated revenue that would be generated over five years by impact fees calculated in this study (50,000 / 15,455,871 = 0.00324). Projected Revenue Table 6.4 shows projected revenue from the impact fees calculated in this chapter. Potentia l revenue for the added private development shown in Table 2.3 is projected by applying the impact fees per unit from Table 6.3 to added units of development from Table 2.3. Table 6.3: Civic Center - Impact Fees per Unit Development Cost per Acres Impact Fee Admin Adj Impact Type Units 1 Acre 2 per Unit 3 per Unit 4 Charge 5 Fee per Unit 6 Residential - Single Family Detached DU 5,004.88$0.245 1,226.20$$3.97 1,230.17$ Residential - Single Family Attached DU 5,004.88$0.222 1,111.08$$3.60 1,114.68$ Residential - Multi-Family/Other DU 5,004.88$0.125 625.61$$2.03 627.64$ Office/Medical KSF 5,004.88$0.104 520.51$$1.69 522.19$ General Commercial KSF 5,004.88$0.104 520.51$$1.69 522.19$ Tourist Commercial/Lodging Room 5,004.88$0.139 695.68$$2.25 697.93$ Public Facilities Acre 0.00$0.270 0.00$$0.00 0.00$ Public Schools Acre 0.00$1.000 0.00$$0.00 0.00$ Parks Acre 0.00$1.000 0.00$$0.00 0.00$ Golf Courses Acre 5,004.88$0.050 250.24$$0.81 251.05$ 1 Units of development; DU = dwelling unit; KSF = 1,000 gross square feet of building area; Room = guest room or suite 2 See Table 6.2 3 Acres per unit; see Table 2.1; for golf courses, the share of acreage impacting the Civic Center is estimated at 5%, so 0.05 acres per acre of golf course is used to calculate the impact fee for golf courses 4 Impact fee per unit = cost per capita X population per unit 5 Administrative charge based on 0.324% of the impact fee per unit; see discussion in text 6 Adjusted impact fee per unit including administrative charge 273 City of La Quinta Page 6-4 Development Impact Fee Study August 8, 2019 Updating the Fees The impact fees calcu lated in this chapter are based largely on the original cost of the Civic Center, and those costs are fixed, so there is no need to review this fee until the City’s next impact fee update. Nexus Summary As discussed in Chapter 1 of this report,Section 66001 of the Mitigation Fee Act requires that an agency establishing, increasing or imposing impact fees,must make findings to: Identify the purpose of the fee; Identify the use of the fee; and, Determine that there is a reasonable relationship between: a.The use of the fee and the development type on which it is imposed; b.The need for the facility and the type of development on which the fee is imposed; and c.The amount of the fee and the facility cost attributable to the development project. Satisfying those requirements also ensures that the fees meet the “rational nexus” and “rough proportionality” standards enunciated in leading court decisions bearing on impact fees and other exactions. (For more detail, see “Legal Framework for Impact Fees” in Chapter 1.) Table 6.4: Civic Center Impact Fees - Projected Revenue Development Adj Impact Future Projected Type Units 1 Fee per Unit 2 Units 3 Revenue 4 Residential - Single Family Detached DU 1,230.17$5,186 6,379,656$ Residential - Single Family Attached DU 1,114.68$743 828,210$ Residential - Multi-Family/Other DU 627.64$946 593,745$ Office/Medical KSF 522.19$512 267,363$ General Commercial KSF 522.19$1,358 709,140$ Tourist Commercial/Lodging Room 697.93$1,360 949,188$ Golf Courses Acre 251.05$817 205,112$ Total 9,932,414$ 1 Units of development; DU = dwelling unit; KSF = 1,000 gross square feet of building area; Room = guest room or suite 2 See Table 6.3 3 See Table 2.3 4 Projected revenue = impact fee per unit X future units 274 City of La Quinta Page 6-5 Development Impact Fee Study August 8, 2019 The following paragraphs explain how the impact fees calculated in this chapter satisfy those requirements. Purpose of the Fee:The purpose of the impact fees calcu lated in this chapter is to pay for new development’s proportionate share of the cost of providing Civic Cente r facilities to serve residents and businesses in La Quinta. Use of the Fee.Impact fees calculated in this chapter will be used to pay for future expansion of the Civic Center. As provided by the Mitigation Fee Act, revenue from impact fees may also be used for temporary loans from one impact fee fund or account to another. Reasonable Relationship between the Use of the Fee and the Development Type on Which It Is Imposed.The impact fees calculated in this chapter will be used for future expansion of the La Quinta Civic Center to meet the needs of additional development in the Ci ty. Reasonable Relationship between the Need for the Facilities and the Type of Development on Which the Fee Is Imposed.The La Quinta Civic Center serves all private development in the City and the need for space in the Civic Center increases as the City grows. Reasonable Relationship between the Amount of the Fee and the Facility Cost Attributable to the Development Project.The amount of the Civic Center impact fees charged to a development project will depend on the amount of added developed acreage a ssociated with that project. The fees per unit of development calcul ated in this chapter for each type of development are based on the estimated a cres per unit for that type of development in La Quinta. Thus, the fee charged to a development project refle cts that project’s proportionate share of the cost of Civic Center facilities in the City. 275 City of La Quinta Page 7-1 Development Impact Fee Study September 23, 2019 Chapter 7.Maintenance Facilities This chapter calculates impact fees for the corporate yard maintenance facilities and equipment needed to serve future development in La Quinta. The impact fees calculated in this chapter are based on the new development’s share of the total cost of existing and planned maintenance facilities including equipment .The City has developed a master plan for future improvements to the m aintenance facilities at the City’s corporate yard. Those improvements are to be added in two phases. The existing facilities are considered Phase I. Future improvements are designated Phase II and Phase III. Methodology The method used to calculate impact fees in this chapter is the plan-based method discussed in Chapter 1.That method calculates impact fees by allocating the cost of specific facilities to the development served by those facilities. In this chapter, separate impact fees will be calculated for the portions of the facilities devoted to its two primary functions:street maintenance and park maintenance. Demand Variable A demand variable is an attribute of development that is used to represent the impact of development on a particular type o f facility. See Chapter 2 for a general discussion of demand variables and demand factors. Because separate impact fees are being calculated for street maintenance facilities and park maintenance facilities, two demand variables are used in this chapter. C osts for park maintenance facilities are allocated using potential population, t he same demand variable used for parks. And costs for street maintenance facilities are allocated using weighted peak hour trips, the same demand variable used for transportati on facilities. Service Area La Quinta’s maintenance facilities serve the entire City, so the impact fees calculated in this chapter will apply to all new development within the existing corporate boundaries of the City. Level of Service For the types of facilities covered in this chapter, level-of-service standards are generally implied rather than explicit. That is, decisions are typically made to build required facilities without formally adopting a standard.The level of service used here to calculate impact fees for maintenance facilities is the level service implied by the relationship of facilities and development at buildout of the area within the existing corporate boundaries of La Quinta. 276 City of La Quinta Page 7-2 Development Impact Fee Study September 23, 2019 Facility Needs Table 7.1 shows the estimated value of the City’s existing corporate yard maintenance facilities, and the estimated cost of future improvements in Phases II and III. The value of existing site improvements such as parking lots and landscaping are included in the value of the existing facilities. Table 7.2 shows a partial list of the City’s existing maintenance equipment . The impact fee cost basis shown in Table 7.2 is the original cost of the equipment, all of which has been purchased in the last two years. City staff estimate that approximately 20% of the City’s maintenance facilities are used for park maintenance and 80% are used for street maintenance. Consequently, in the impact fee Table 7.1: Maintenance Facility Cost Facility Site Est Site Impact Fee Component Value/Cost 1 Acres 2 Value 3 Cost Basis 4 Existing Maintenance Facilities 3,768,443$2.8 1,219,680$4,988,123$ Future Improvements (Phase 2) 3,183,903$3,183,903$ Future Improvements (Phase 3) 4,018,794$4,018,794$ Total 12,190,820$ 1 The value of existing maintenance facilities based on original cost; cost for Phase II improvements from the 2019/20 and 2020/21 CIP; cost for Phase III improvements estimated by the City of La Quinta 2 Site acres provided by the City of La Quinta 3 Estimated site value based on $10.00 per square foot ($435,600 per acre) 4 Impact fee cost basis = the sum of the facility value/cost and site value Table 7.2: Existing Maintenance Equipment Equipment Impact Fee Year Type Make Model Cost Basis 1 2018 Dump Truck Ford F650 88,416$ 2017 Boom Truck Dodge Ram 5500 109,500$ 2018 Backhoe John Deere 310HL 131,640$ 2018 Skid Steer Quinn Cat 232D 44,149$ 2017 Wood Chipper Vermeer 23,000$ 2017 Gator Utility Veh.John Deere 8,600$ 2018 Stump Grinder Vermeer 22,500$ 2018 Dump Trailer (Single Axle)10 Foot 5,700$ 2019 Dump Trailer (Double Axle)10 Foot 7,600$ 2018 Trailer Butler 3,200$ 2019 Trailer Big Tex 16 Foot 3,600$ Total 447,905$ Source: City of La Quinta Facilities Department 1 Impact fee cost basis = original cost 277 City of La Quinta Page 7-3 Development Impact Fee Study September 23, 2019 calculations that follow, 20% of the impa ct fee cost basis for the facilities and equipment will be attributed to park maintenance and 80% will be attributed to street maintenance. Park Maintenance Facilities Cost per Capita Table 7.3 calculates an average cost per capita for the park maintenance share of the City’s maintenance facilities and equipment,based on 20% of the total impact fee cost basis from Tables 7.1 and 7.2,and the City’s projected buildout potential population from Table 2.4. As explained earlier, potential population is the same demand variable used to calculate impact fees for parks in Chapter 3. See Chapter 2 for a discussion of potential population. Street Maintenance Facilities Cost per Weighted Peak Hour Trip Table 7.4 calculates an average cost per weighted peak hour vehicle trip for the street maintenance share of the City’s main tenance facilities and equipment, based on 80% of the total impact fee cost basi s from Tables 7.1 and 7.2,and the City’s projected buildout weighted peak hour trips from Table 2.4. As explained earlier,weighted peak hour trips are also used as the demand variable in calculating street impact fees in Chapter 9.See Chapter 2 for a discussion of weighted peak hour trips. Table 7.3: Park Maintenance Facilities - Cost per Capita Impact Fee Park Maint Park Maint Buildout Cost per Cost Basis 1 Share 2 Cost Basis 3 Potential Pop 4 per Capita 5 $12,638,725 20% $2,527,745 82,323 $30.71 1 Sum of impact fee cost basis from Tables 7.1 and 7.2 2 Share of facilities devoted to park maintenance estimated by the City of La Quinta 3 Park maintenance cost basis = impact fee cost basis X park maintenance share 4 Buildout potential population; see Table 2.4 5 Cost per capita = park maintenance cost basis / buildout potential population Table 7.4: Street Maintenance Facilities - Cost per Weighted Peak Hour Trip Impact Fee Street Maint Street Maint Buildout Wtd Cost per Wtd Cost Basis 1 Share 2 Cost Basis 3 Peak Hour Trips 4 Peak Hour Trip 5 $12,638,725 80% $10,110,980 52,362 $193.10 1 Sum of impact fee cost basis from Tables 7.1 and 7.2 2 Share of facilities devoted to street maintenance estimated by the City of La Quinta 3 Street maintenance cost basis = impact fee cost basis X street maintenance share 4 Buildout weighted peak hour trips; see Table 2.4 5 Cost per weighted peak hour trip = street maintenance cost basis / buildout weighted peak hour trips 278 City of La Quinta Page 7-4 Development Impact Fee Study September 23, 2019 Impact Fees per Unit of Development –Park Maintenance Facilities Table 7.5 shows the calculation of impact fees per unit of development by development type for park maintenance facilities .Impact fees per unit are calculated using the impact fee cost per capita from Table 7.3 and population-per-unit factors from Table 2.1.This portion of the maintenance facilities impact fees will only apply to residential development because population increase is associated with n ew residential development. Table 7.5 also adds a small administrative charge to arrive at the adjusted impact fee per unit. The 0.324% administrative charge is intended to rec over the cost of this study over five years. It is calculated by dividing the co st of the study by estimated revenue that would be generated over five years by impact fees calculated in this study (50,000 / 15,455,871 = 0.00324). Table 7.5: Park Maintenance Facilities - Impact Fees per Unit Development Cost per Population Impact Fee Admin Adj Impact Type Units 1 Capita 2 per Unit 3 per Unit 4 Charge 5 Fee per Unit 6 Residential - Single Family Detached DU 30.71$2.70 82.90$0.27$83.17$ Residential - Single Family Attached DU 30.71$2.30 70.62$0.23$70.85$ Residential - Multi-Family/Other DU 30.71$2.20 67.55$0.22$67.77$ 1 Units of development; DU = dwelling unit 2 See Table 7.3 3 See Table 2.1 4 Impact fee per unit = cost per capita X population per unit 5 Administrative charge based on 0.324% of the impact fee per unit; see discussion in text 6 Adjusted impact fee per unit including administrative charge 279 City of La Quinta Page 7-5 Development Impact Fee Study September 23, 2019 Impact Fees per Unit of Development –Street Maintenance Facilities Table 7.6 shows the calculation of impact fees per unit of development by development type for street maintenance facilities. Impact fees per unit are calculated using the impact fee cost per weighted peak hour trip from Table 7.4 and weighted peak hour trips-per-unit factors from Table 2.1. Table 7.6 also adds a small administrative charge o n the same basis as in Table 7.5. Table 7.6 calculates impact fees for public facilities, schools, and parks, even thou gh the City cannot collect impact fees from those types of development. On the n ext page, costs allocated to public facilities and parks are re -allocated to private development. It is not necessary to reallocate costs from schools. No additional schools ar e planned for the service area defined in this study, so no costs were allocated to schools. In Table 7.7 on the next page , the street maintenance facility costs initially allocate d to public facilities and parks are re -allocated to private development by adjusting the cost per weighted peak hour trip for private development. Reallocation is justified by the fact that the demand associated with public facilities and parks is a secon dary impact of private development, because the need for public facilities and parks is created by private development. Table 7.6: Street Maintenance Facilities - Impact Fees per Unit (Before Reallocation) Development Cost per Wtd Wtd Pk Hr Impact Fee Admin Adj Impact Type Units 1 Pk Hr Trip 2 Trips per Unit 3 per Unit 4 Charge 5 Fee per Unit 6 Residential - Single Family Detached DU 193.10$1.16 223.99$0.73$224.72$ Residential - Single Family Attached DU 193.10$0.89 171.86$0.56$172.41$ Residential - Multi-Family/Other DU 193.10$0.66 127.44$0.41$127.86$ Office/Medical KSF 193.10$1.90 366.89$1.19$368.07$ General Commercial KSF 193.10$2.34 451.85$1.46$453.31$ Tourist Commercial/Lodging Room 193.10$0.54 104.27$0.34$104.61$ Public Facilities KSF 193.10$2.48 478.88$1.55$480.43$ Schools Acre 193.10$0.79 152.55$0.49$153.04$ Parks Acre 193.10$0.51 98.48$0.32$98.80$ Golf Courses Acre 193.10$0.27 52.14$0.17$52.31$ 1 Units of development; DU = dwelling unit; KSF = 1,000 gross square feet of building area; Room = guest room or suite; Acre = net developed acre 2 See Table 7.4 3 See Table 2.1 4 Impact fee per unit = cost per wieghted peak hour trip X weighted peak hour trips per unit 5 Administrative charge based on 0.324% of the impact fee per unit; see discussion in text 6 Adjusted impact fee per unit including administrative charge 280 City of La Quinta Page 7-6 Development Impact Fee Study September 23, 2019 In Table 7.7 above,costs attributed to public facilities are re-allocated to all types of private development while costs attributed to parks are re-allocated only to residential development. Table 7.8 on the next page recalculates the street maintenance impact fees per unit of development for private development using the adjusted cost per weighted peak hour trip for street maintenance facilities from Table 7.7 .Table 7.8 also includes the adjustment for an administrative charge on the same basis as in Tables 7.4 and 7.5.The increase in impact fees resulting from the reallocation amounts to 2.1%for residential development and 1.7% for non- residential development. Table 7.7: Street Maintenance Facilities - Cost per Weighted Peak Hour Trip with Reallocation Initial Cost Reallocated Reallocated Adjusted Development per Weighted Pub Fac Cost per Parks Cost per Cost per Type Units 1 Pk Hr Trip 2 Wtd Pk Hr Trip 3 Wtd Pk Hr Trip 4 Wtd Pk Hr Trip 5 Residential - Single Family Detached DU $193.10 3.25 0.73 197.08$ Residential - Single Family Attached DU $193.10 3.25 0.73 197.08$ Residential - Multi-Family/Other DU $193.10 3.25 0.73 197.08$ Office/Medical KSF $193.10 3.25 196.35$ General Commercial KSF $193.10 3.25 196.35$ Tourist Commercial/Lodging Room $193.10 3.25 196.35$ Public Facilities KSF Reallocated 0.00$ Schools Acre No Allocation 0.00$ Parks Acre Reallocated 0.00$ Golf Courses Acre $193.10 3.25 196.35$ 1 Units of development; DU = dwelling unit; KSF = 1,000 gross square feet of building area; Room = guest room or suite; Acre = net developed acre 2 See Table 7.6 3 Reallocated public facilities cost per weighted peak hour trip = 84 KSF of future Public Facilities X $480.83 per KSF = $40,356.44 / 12,407 weighted peak hour trips for receiving facilities = $3.25 per weighted peak hour trip 4 Reallocated parks cost per weighted peak hour trip = 54 acres of future Parks X $98.80 per acre = $5,335.14 / 7,301 weighted peak hour trips for receiving (residential) development =$0.73 per weighted peak hour trip 281 City of La Quinta Page 7-7 Development Impact Fee Study September 23, 2019 Park Maintenance Facilities Impact Fees -Projected Revenue Table 7.9 shows projected revenue from the park maintenance facilities impact fees calculated in this chapter. Potential revenue is projected by applying the impact fees per unit from Table 7.5 to added units of residential development from Table 2.3. Street Maintenance Facilities Impact Fees -Projected Revenue Table 7.10 shows projected revenue from the street maintenance facilities impact fees calculated in this chapter. Potential revenue is projected by applying the adjusted impact fees per unit from Table 7.8 to added units of development from Table 2.3. Table 7.8: Street Maintenance Facilities - Impact Fees per Unit (After Reallocation) Development Cost per Wtd Wtd Pk Hr Impact Fee Admin Adj Impact Type Units 1 Pk Hr Trip 2 Trips per Unit 3 per Unit 4 Charge 5 Fee per Unit 6 Residential - Single Family Detached DU 197.08$1.16 228.61$0.74 229.35$ Residential - Single Family Attached DU 197.08$0.89 175.40$0.57 175.97$ Residential - Multi-Family/Other DU 197.08$0.66 130.07$0.42 130.49$ Office/Medical KSF 196.35$1.90 373.07$1.21 374.27$ General Commercial KSF 196.35$2.34 459.46$1.49 460.95$ Tourist Commercial/Lodging Room 196.35$0.54 106.03$0.34 106.37$ Public Facilities KSF 0.00$2.48 0.00$0.00 0.00$ Schools Acre 0.00$0.79 0.00$0.00 0.00$ Parks Acre 0.00$0.51 0.00$0.00 0.00$ Golf Courses Acre 196.35$0.27 53.01$0.17 53.19$ 1 Units of development; DU = dwelling unit; KSF = 1,000 gross square feet of building area; Room = guest room or suite; Acre = net developed acre 2 See Table 7.7 3 See Table 2.1 4 Impact fee per unit = cost per wieghted peak hour trip X weighted peak hour trips per unit 5 Administrative charge based on 0.324% of the impact fee per unit; see discussion in text 6 Adjusted impact fee per unit including administrative charge Table 7.9: Park Maintenance Facilities Impact Fees - Projected Revenue Development Adj Impact Future Projected Type Units 1 Fee per Unit 2 Units 3 Revenue 4 Residential - Single Family Detached DU 83.17$5,186 431,333$ Residential - Single Family Attached DU 70.85$743 52,642$ Residential - Multi-Family/Other DU 67.77$946 64,111$ Total 548,086$ 1 Units of development; DU = dwelling unit 2 See Table 7.5 3 See Table 2.3 4 Projected revenue = impact fee per unit X future units 282 City of La Quinta Page 7-8 Development Impact Fee Study September 23, 2019 The combined projected revenue of $3 million for the park maintenance and street maintenance facilities impact fees amounts to approximately 42 % of the estimated $7.2 million cost of future improvements to the City’s maintenance facilities shown in Table 7.1.The balance of the cost will have to come from non-impact fee sources. Updating the Fees The impact fees calculated in this chapter are based in part on estimated costs of futu re maintenance facilities improvements. We recommend that these fees be reviewed periodically and adjusted in the event that up dated costs become available. Nexus Summary As discussed in Chapter 1 of this report,Section 66001 of the Mitigation Fee Act requires that an agency establishing, increasing or imposing impact fees, must make findings to: Identify the purpose of the fee; Identify the use of the fee; and, Determine that there is a reasonable relationship between: a.The use of the fee and the development type on which it is imposed; b.The need for the facility and the type of development on which the fee is imposed; and c.The amount of the fee and the facility cost attributable to the development project. Table 7.10: Street Maintenance Facilities Impact Fees - Projected Revenue Development Adj Impact Future Projected Type Units 1 Fee per Unit 2 Units 3 Revenue 4 Residential - Single Family Detached DU 229.35$5,186 1,189,434$ Residential - Single Family Attached DU 175.97$743 130,746$ Residential - Multi-Family/Other DU 130.49$946 123,448$ Office/Medical KSF 374.27$512 191,629$ General Commercial KSF 460.95$1,358 625,968$ Tourist Commercial/Lodging Room 106.37$1,360 144,667$ Golf Courses Acre 53.19$817 43,453$ Total 2,449,345$ 1 Units of development; DU = dwelling unit; KSF = 1,000 gross square feet of building area; Room = guest room or suite; Acre = net developed acre 2 See Table 7.8 3 See Table 2.3 4 Projected revenue = impact fee per unit X future units 283 City of La Quinta Page 7-9 Development Impact Fee Study September 23, 2019 Satisfying those requirements also ensures that the fees meet the “rational nexus” and “rough proportionality” standards enunciated in leading court decisions beari ng on impact fees and other exactions. (For more detail, see “Legal Framework for Impact Fees” in Chapter 1.) The following paragraphs explain how the impact fees calculated in this chapter satisfy those requirements. Purpose of the Fee:The purpose of the impact fees calculated in this chapter is to pay for new development’s proportionate share of the cost of providing maintenance facilities to serve the City. Use of the Fee.Impact fees calculated in this chapter will be used to pay for additional maintenance facilities needed serve new development in La Quinta . As provided by the Mitigation Fee Act, revenue from impact fees may also be used for temporary loans from one impact fee fund or account to another. Reasonable Relationship between the Use of the Fee and the Development Type o n Which It Is Imposed.The impact fees calculated in this chapter will be used to pay for additional maintenance facilities needed to serve new development in La Quinta. Reasonable Relationship between the Need for the Facilities and the Type of Development on Which the Fee Is Imposed.New development increases the need for parks and streets and the facilities supporting their maintenance. The City’s existing maintenance facilities don ’t have the capacity to support future growth in La Quinta. Reasonable Relationship between the Amount of the Fee and the Facility Cost A ttributable to the Development Project.The amount of the maintenance facilities impact fees charged to a development project will depend on the amount of added potential population and weighted peak hour vehicle trips generated by that project . The fees per unit of development calculated in this chapter for each type of development are based on the estimated increase in potential population and weighted peak hour trips per unit of development . Thus, the fee charged to a development project reflects that project’s proportionate share of the cost of additional maintenance facilities needed to serve new development in the City. 284 City of La Quinta Page 8-1 Development Impact Fee Study August 8, 2019 Chapter 8.Fire Protection This chapter calculates impact fees for La Quinta’s fire protection facilities. The City contracts with the Riverside County Fire Department fo r fire protection, fire prevention, rescue, Fire Marshal and medical emergency services. The City builds and owns the fire stations in La Quinta. Those stations are part of an integrated system of fire protection facilities used by the Riverside County Fire Department to provide fire protection to La Quinta and surrounding communities, including unincorporated portions of the County. There are three existing fire stations in the City and preliminary plans call for a fourth fire station to be constructed in or near the southeastern quadrant of La Quinta. That station will be needed to provide an acceptable level of service to development in that part of the City and in portions of unincorporated Riverside County. This study assumes that the cost of the fourt h fire station will be shared equally between La Quinta and Riverside County. Firefighting apparatus assigned to fire stations in La Quinta is owned by the County. Although the City contributes to the cost of some apparatus through its contract payments to the Riverside County Fire Department, costs for apparatus and vehicles are not included in the cost basis for impact fees in this chapter. Methodology The method used to calculate impact fees in this chapter is the plan-based method discussed in Chapter 1. That method calculates impact fees by allocating the cost of specific facilities to the development served by those facilities.In this case, the cost of existing and future fire stations will be allocated to existing and future development so that all development in the City will share proportionately in the cost of those facilities. The fi re protection impact fees calculated in this chapter represent new development’s proportionate share of the cost of La Quinta’s fire protection facilities. Service Area Although individual fire stations are assigned to provide the initial emergency respo nse in a specific area, resources from multiple f ire stations are often needed to provide an adequate response to an emergency call. A first alarm response to a smal l structure fire can require resources from as many as five fire stations. So it makes sens e to treat the entire City as a single service area for purposes of calculating fire protection impact fees. That approach is further supported by the fact that cal culating separate impact fees for individual fire stations could result in substantially di fferent impact fees for development in different parts of the City receiving essentially the same level of service. This analysis will allocate costs for fire protec tion facilities citywide, so the impact fees for a particular type of development will be t he same throughout the City. 285 City of La Quinta Page 8-2 Development Impact Fee Study August 8, 2019 Level of Service The critical measure of level of service for fire protection and emergency medical services is emergency response time. The number of fire stations needed to serve a particular area with acceptable response times is determined by specific condition s within the area, and is affected heavily by the size of the area to be served. In La Quinta’s case, the City and the Riversi de County Fire Department have determined the number and location of fire stations needed t o provide an acceptable level of service in the City. The impact fee analysis in this chapter is based on the number of fire stations needed to serve the City at bui ldout. Demand Variable A demand variable is an attribute of development that is used t o represent the impact of development on a particular type of facility. See Chapter 2 for a general discussion of demand variables and demand factors. The cost of capital facilities (i.e., fire stations) needed to provide fire protection and emergency medical response services in the City with acceptable response times depends to a large extent on the size of the area to be served. Acreage is the most common measure o f land area, so developed acreage will be used as the demand variable in calculating impact fees for fire protection. Facility Needs Table 8.1 on the next page lists existing and future fire protection facilities in La Quinta, including costs for buildings , fire station sites and furniture fixtures and equipment (FF&E). The impact fee cost basis shown in the right-hand column of Table 8.1 will be used in the impact fee calculations. As indicated above, costs for apparatus and vehicles are not included in th is analysis. 286 City of La Quinta Page 8-3 Development Impact Fee Study August 8, 2019 Cost per Developed Acre Table 8.2 calculates an average cost per developed a cre for fire protection facilities base d on the total impact fee cost basis from Table 8.1 and the projected acreage of development to be served at buildout within t he existing corporate boundaries. The developed acreage shown in Table 8.2 encompasses all development expected within the existing corporate boundaries of the City at buildout, including public facilities, schools, parks and golf courses. However, while parks and golf courses have the potential to create a demand for emergency medical services , they present a very low risk of fires relative to their acreage. Consequently, only 5% of park and golf course acreage is included in the adjusted buildout developed acreage in Table 8.2. Table 8.1: Existing and Future Fire Stations Year Building Est Building Est FF&E Site Est Site Impact Fee Facility Completed Sq Ft 1 Cost/Value 2 Cost/Value 3 Acres 4 Cost/Value 5 Cost Basis 6 Fire Station 32 2009 7,500 3,500,066$100,000$1.2 522,720$4,122,786$ Fire Station 70 1985 5,750 1,298,269$170,000$1.3 566,280$2,034,549$ Fire Station 70 Expansion Future 1,200 480,000$0$0.0 0$480,000$ Fire Station 93 2002 7,690 2,420,350$125,650$1.5 653,400$3,199,400$ Southeast Fire Station 7 Future 7,000 4,550,000$100,000$1.5 653,400$2,651,700$ Total 12,488,435$ 1 Building square feet provided by the City of La Quinta 2 Building value for existing stations from the City property schedule ; building cost for future station based on $650 per square foot including site improvements 3 Value of existing furniture, fixtures and equipment (FF&E) from the City property schedule; estimated cost of FF&E for the future Southeast fire station based on existing stations 4 Site acres provided by the City of La Quinta 5 Cost or value of site estimated based on $10.00 per sq ft ($435,600 per acre) 6 Impact fee cost basis = sum of building, FF&E and site cost or value 7 Impact fee cost basis for Southeast fire station assumes 50% of the cost will be paid by Riverside County Table 8.2: Fire Protection Facilities - Cost per Developed Acre Impact Fee Adjusted Buildout Cost per Cost Basis 1 Dev Acreage 2 per Acre 3 $12,488,435 8,766 $1,424.73 1 See Table 8.1 2 Adjusted buildout developed acreage includes 100% of developed acreage for all other development types and 5% of acreage for parks and golf courses; see Table 2.4 3 Cost per acre = impact fee cost basis / adjusted buildout developed acreage 287 City of La Quinta Page 8-4 Development Impact Fee Study August 8, 2019 Impact Fees per Unit of Development Table 8.3 shows the calculat ion of impact fees per unit of developm ent by development type for the fire protection. Impact fees per unit are calculated using the impact fee cost per acre from Table 8.2 and acres-per-unit factors from Table 2.1, except for parks and golf courses which are included at a rate of 0.05 acres per developed acre. Table 8.3 also adds a small administrative charge to arrive at the adjusted impact fee per unit. The 0.324% administrative charge is intended to recover the cost of this study over five years. It is calculated by dividing the cost of th e study by estimated revenue that would be generated over five years by impact fees calculated in this study (50,000 / 15,455,871 = 0.00324). Note that Table 8.3 calculates impact fees for public facilities, schools,and parks, even though the City cannot collect impact fees from those types of development. On the next page, costs allocated to public facilities and parks are re -allocated to private development. It is not necessary to reallocate costs from schools. No a dditional schools are planned for the service area defined in this study, so no costs were allocated to schools. In Table 8.4 on the next page, the fire protection facilities costs initially allocated to public facilities and parks are re-allocated to private development by adjusting the cost per acre for private development. That reallocation is justified by the fact that the need for public facilities and parks is created by private development. Table 8.3: Fire Protection Facilities - Impact Fees per Unit (Before Reallocation) Development Cost per Acres Impact Fee Admin Adj Impact Type Units 1 Acre 2 per Unit 3 per Unit 4 Charge 5 Fee per Unit 6 Residential - Single Family Detached DU 1,424.73$0.245 349.06$1.13$350.19$ Residential - Single Family Attached DU 1,424.73$0.222 316.29$1.02$317.31$ Residential - Multi-Family/Other DU 1,424.73$0.125 178.09$0.58$178.67$ Office/Medical KSF 1,424.73$0.104 148.17$0.48$148.65$ General Commercial KSF 1,424.73$0.104 148.17$0.48$148.65$ Tourist Commercial/Lodging Room 1,424.73$0.139 198.04$0.64$198.68$ Public Facilities KSF 1,424.73$0.270 384.68$1.25$385.92$ Public Schools Acre 1,424.73$1.000 1,424.73$4.62$1,429.34$ Parks Acre 1,424.73$0.050 71.24$0.23$71.47$ Golf Courses Acre 1,424.73$0.050 71.24$0.23$71.47$ 1 Units of development; DU = dwelling unit; KSF = 1,000 gross square feet of building area; Room = guest room or suite 2 See Table 8.2 3 Acres per unit; see Table 2.1; for parks and golf courses, the share of acreage impacting fire protection facilities is estimated at 5%, so 0.050 acres per acre is used to calculate impact fees for those development types 4 Impact fee per unit = cost per acre X acres per unit 5 Administrative charge based on 0.324% of the impact fee per unit; see discussion in text 6 Adjusted impact fee per unit including administrative charge 288 City of La Quinta Page 8-5 Development Impact Fee Study August 8, 2019 In Table 8.4 above, costs attributed to public facilitie s are re-allocated to all types of priv ate development while costs attributed to parks are re -allocated only to residential development. Table 8.5 on the next page r ecalculates impact fees per unit of development for private development using the adjusted cost per acre for fire protection facil ities from Table 8.4. Table 8.5 also includes the adjustment for an administrative charge on the same basis as in Table 8.3. The increase in impact fees resulting from reallocation amounts to 5.5% for residential development and 1.4% for non-residential development. Table 8.4: Fire Protection Facilities - Cost per Acre with Reallocation Initial Cost Reallocated Reallocated Adjusted Development per Pub Fac Cost Parks Cost Cost per Type Units 1 Acre 2 per Acre 3 per Acre 4 Acre 5 Residential - Single Family Detached DU $1,424.73 20.08 58.13 1,502.93$ Residential - Single Family Attached DU $1,424.73 20.08 58.13 1,502.93$ Residential - Multi-Family/Other DU $1,424.73 20.08 58.13 1,502.93$ Office/Medical KSF $1,424.73 20.08 1,444.80$ General Commercial KSF $1,424.73 20.08 1,444.80$ Tourist Commercial/Lodging Room $1,424.73 20.08 1,444.80$ Public Facilities KSF Reallocated 0.00$ Schools Acre No Allocation 0.00$ Parks Acre Reallocated 0.00$ Golf Courses Acre $1,424.73 20.08 1,444.80$ 1 Units of development; DU = dwelling unit; KSF = 1,000 gross square feet of building area; Room = guest room or suite; Acre = net developed acre 2 See Table 8.3 3 Reallocated public facilities cost per acre = 120 Acres of future Public Facilities X $1,424.73 per acre = = $170.967.60 / 8.516 acres for receiving facilities = $20.08 per acre 4 Reallocated parks cost per acre = 296 acres of future Parks X $1,424.73 per acre = $421,720.08 / 7,255 acres for receiving (residential) development = $58.13 per acre 289 City of La Quinta Page 8-6 Development Impact Fee Study August 8, 2019 Projected Revenue Table 8.6 shows projected revenue from the impact fees calculated in this chapter. Potential revenue for the added private development shown in Table 2.3 is projected by applying the adjusted impact fees per unit from Table 8.5 to added units of development from Table 2.3 Table 8.5: Fire Protection Facilities - Impact Fees per Unit (After Reallocation) Development Cost per Acres Impact Fee Admin Adj Impact Type Units 1 Acre 2 per Unit 3 per Unit 4 Charge 5 Fee per Unit 6 Residential - Single Family Detached DU 1,502.93$0.245 368.22$1.19$369.41$ Residential - Single Family Attached DU 1,502.93$0.222 333.65$1.08$334.73$ Residential - Multi-Family/Other DU 1,502.93$0.125 187.87$0.61$188.47$ Office/Medical KSF 1,444.80$0.104 150.26$0.49$150.75$ General Commercial KSF 1,444.80$0.104 150.26$0.49$150.75$ Tourist Commercial/Lodging Room 1,444.80$0.139 200.83$0.65$201.48$ Public Facilities KSF 0.00$0.270 0.00$0.00$0.00$ Public Schools Acre 0.00$1.000 0.00$0.00$0.00$ Parks Acre 0.00$0.050 0.00$0.00$0.00$ Golf Courses Acre 1,444.80$0.050 72.24$0.23$72.47$ 1 Units of development; DU = dwelling unit; KSF = 1,000 gross square feet of building area; Room = guest room or suite 2 See Table 8.4 3 Acres per unit; see Table 2.1; for parks and golf courses, the share of acreage impacting fire protection facilities is estimated at 5%, so 0.050 acres per acre is used to calculate impact fees for those development types 4 Impact fee per unit = cost per acre X acres per unit 5 Administrative charge based on 0.324% of the impact fee per unit; see discussion in text 6 Adjusted impact fee per unit including administrative charge 290 City of La Quinta Page 8-7 Development Impact Fee Study August 8, 2019 The total impact fee revenue projected in Table 8.4 is about $280,000 less t han the $3.13 million in future facilities costs shown in Table 8.1. So assuming the impact fee revenue projections are reasonably accurate, about 9% of the cost of future fire station improvements would have to come from non -impact fee sources. Updating the Fees The impact fees calcu lated in this chapter are based in part on the cost of existing facilities and in part on the estimated cost of future facilities. Over time those costs can change, so we recommend that these fees be reviewed periodically and adjusted if necessary to reflect actual costs. Nexus Summary As discussed in Chapter 1 of this report,Section 66001 of the Mitigation Fee Act requires that an agency establishing, increasing or imposing impact fees, must make findings to: Identify the purpose of the fee; Identify the use of the fee; and, Determine that there is a reasonable relationship between: a.The use of the fee and the development type on which it is imposed; b.The need for the facility and the type of development on which the fee is imposed; and Table 8.6: Fire Protection Facilities Impact Fees - Projected Revenue Development Adj Impact Future Projected Type Units 1 Fee per Unit 2 Units 3 Revenue 4 Residential - Single Family Detached DU 369.41$5,186 1,915,765$ Residential - Single Family Attached DU 334.73$743 248,706$ Residential - Multi-Family/Other DU 188.47$946 178,297$ Office/Medical KSF 150.75$512 77,182$ General Commercial KSF 150.75$1,358 204,713$ Tourist Commercial/Lodging Room 201.48$1,360 274,010$ Golf Courses Acre 72.47$817 59,211$ Total 2,957,885$ 1 Units of development; DU = dwelling unit; KSF = 1,000 gross square feet of building area; Room = guest room or suite; acre = net acre 2 See Table 8.5 3 See Table 2.3 4 Projected revenue = impact fee per unit X future units 291 City of La Quinta Page 8-8 Development Impact Fee Study August 8, 2019 c.The amount of the fee and the facility cost attributable to the developmen t project. Satisfying those requirements also ensures that the fees meet the “rational nexus” and “rough proportionality” standards enunciated in leading court deci sions bearing on impact fees and other exactions. (For more detail, see “Legal Framework fo r Impact Fees” in Chapter 1.) The following paragraphs explain how the impact fees calculated in this chapter satisfy those requirements. Purpose of the Fee:The purpose of the impact fees calculated in this chapter is to pay for new development’s proportionate share of the cost of pr oviding fire protection facilities to serve development in La Quinta. Use of the Fee.Impact fees calculated in this chapter will be use d to pay for future fire protection facilities needed to provide a reasonable level of cove rage for the City. As provided by the Mitigation Fee Act, revenue from impact fees may also be used for temporary loans from one impact fee fund or account to anot her. Reasonable Relationship between the Use of the Fee and the Development Type o n Which It Is Imposed.The impact fees calculated in this chapter will be used to pay for new development’s proportional sh are of the fire protection facilities needed to ser ve all development in La Quinta. Reasonable Relationship between the Need for the Facilities and the Type of Development on Which the Fee Is Imposed.The impact fees calculated in this chapter will pay for additional fire protection facilities needed serve anticipated development through buildout of the area within the existing corporate boundar ies of La Quinta. Reasonable Relationship between the Amount of the Fee and the Facility Cost A ttributable to the Development Project.The amount of the fire protection impact fees charged to a development project will depend on the amount of added develo ped acreage associated with that project. The fees per unit of development calculated in this chapter for each ty pe of development are based on the estimated acres per unit for that type of development in La Quinta. Thus, the fee charged to a development project reflects that project’s proportionate share of the cost of fire protection facilities in the City. 292 City of La Quinta Page 9-1 Development Impact Fee Study August 8, 2019 Chapter 9.Transportation This chapter calculates impact fees for improvements to La Quinta’s transportation system, including arterial streets, medians, roun dabouts,traffic signals,bridges, bike lanes and sidewalks. Information on transportation infrastructure needs and costs is taken from the City of La Quinta 2018 Transportation Infrastructure Needs Analysis by NAI Consulting , as revised August 5, 2019. That study assigns shares of the cost of each improvement to impact fees and to various other funding sources. It is important to note that the California Complete Streets Act requires local governments in the state to address the transportation needs of all users, including pedestrians, cyclists and transit riders. Methodology The method used to calculate impact fees in this chapter is the plan-based method discussed in Chapter 1. That method calculates impact fees by allocating the cost of specific facilit ies to the development served by those facilities. In this case, costs for improvements that increase the traffi c-carrying capacity of streets and are not funded from other sources are allocated to future development (see Table 9.1). Costs for improvements such as sidewalks and bike lanes that do not increase the traffic -carrying capacity of streets and are not fund ed from other sources are allocated propo rtionately to existing and future development (see Table 9.2). Service Area The service area for La Quinta’s transportation system, as defined in the 2018 Transportation Infrastructure Needs Analysis is the area within the existing corporate boundaries of the City. Level of Service The improvement needs identified in the 2018 Transportation Infrastruc ture Needs Analysis are based on level of service standards adopted in the Circulation Element of the La Quinta 2 035 General Plan. Demand Variable A demand variable is an attribute of development that is used to represent the impact of development on a particular type of facility. See Chapter 2 for a general discussion of demand variables and demand factors. The demand variable used in this analysis is weighted peak hour trips, which is the product of peak hour trips per unit and a trip length factor representing the relationship between the average trip length for a particular development type and the system -wide average trip length . See Chapter 2 for a detailed discussion of weighted peak hour trips. 293 City of La Quinta Page 9-2 Development Impact Fee Study August 8, 2019 Improvement Needs Tables 9.1 and 9.2 summarize the improvement costs identified in the 2018 La Quinta Transportation Infrastructure Needs Analysis by type. Table 9 .1 shows a breakdown of costs by type of improvement and funding source for capacity -enhancing improvements. Table 9.2 shows a similar breakdown for non-capacity-enhancing improvements. Note that in both of those tables, there is an item titled “Remaining Balance on Reimbursement Agreements.”Those items refer to amounts the City has committed to repay developers for improvements those developer s have constructed in excess of the amount for which they were responsible, and for which the City has agreed to reimburse them from impact fees collected from future development that shares responsibility for the improvements in question. The City share of costs from Table 9.1 is allocated in this analysis to future development based on weighted peak hour trips. The City share of costs from Table 9.2 is allocated in this analysis to both existing and future development based on weighted peak hour trips. Cost per Weighted Peak Hour Trip Table 9.3 calculates an average cost per weighted peak hour trip based on the City share of costs for capacity-enhancing improvements from Table 9.1 and the number of weighted peak hour trips associated with future development in Table 2.3.Weighted peak hour trips are discussed in Chapter 2. Table 9.1: Transportation System Capacity- Enhancing Improvements Improvement City Cost Developer Hwy Bridge Total Category Share Contribution TUMF Program Cost New Roadway Construction 2,376,019$664,160$3,040,179$ Roadway Improvements - Capacity Enhancing) 11,996,238$20,708,470$4,481,320$37,186,028$ Structure Improvements 4,259,250$7,188,750$12,442,000$23,890,000$ New Roundabouts 8,656,500$1,791,000$9,850,500$20,298,000$ New Traffic Signals 1,290,000$967,500$2,257,500$ Remaining Balance on Reimbursement Agreements 2,288,591$2,288,591$ Total 30,866,598$24,131,130$21,520,570$12,442,000$88,960,298$ Source: 2018 La Quinta Transportation Infrastructure Needs Analysis, Revised 8/5/19 Table 9.2: Transportation System Non Capacity- Enhancing Improvements Improvement City Cost Developer Hwy Bridge Total Category Share Contribution TUMF Program Cost Roadway Improvements - Non-capacity Enhancing) 29,575,145$4,628,855$34,204,000$ Median-Only Improvements 3,346,000$3,346,000$ Sidewalk-Only Improvements 5,882,691$904,309$6,787,000$ Bike Lane-Only Improvements 8,644,000$8,644,000$ Remaining Balance on Reimbursement Agreements 1,451,133$1,451,133$ Total 48,898,969$5,533,164$0$0$54,432,133$ Source: 2018 La Quinta Transportation Infrastructure Needs Analysis 294 City of La Quinta Page 9-3 Development Impact Fee Study August 8, 2019 Table 9.4 calculates an average cost per weighted peak hour trip based on the C ity share of costs for non-capacity-enhancing improvements from Table 9.2 and the number of weighted peak hour trips associated with both existing and future development in Table 2.4. Impact Fees per Unit of Development Table 9.5 shows the initial calcu lation of impact fees per unit of development by development type for the transportation improvements.These impact fees per unit are cal culated using the sum of the cost per weighted peak hour trip from Tables 9.3 and 9.4, and the weighted peak hour trips-per-unit factors from Table 2.1. Table 9.5 also adds a small administrative charge to arrive at the a djusted impact fee per unit. The 0.324% administrative charge is intended to recover the cost of this study over five years. It is calculated by dividing the cost of the study by estimated revenue that would be generated over five years by impact fees calculated in this study (50,000 / 15,455,871 = 0.00324). Note that Table 9.5 calculates impact fees for public facilities, schools and parks even though the City cannot collect fees for those types of development. On the next page, costs allocated to public facilities and parks are re-allocated to private development. It is not necessary to reallocate costs from schools. No additional schools are planned for t he service area defined in this study, so no costs were allocated to schools. Table 9.3: Capacity Enhancing Improvements - Cost per Wtd Pk Hr Trip City Cost Added Weighted Cost per Weighted Share 1 Peak Hour Trips 2 Peak Hour Trip 3 $30,866,598 12,643 $2,441.40 1 See Table 9.1 2 See Table 2.3 3 Cost per weighted peak hour trip = impact fee cost basis / added weighted peak hour trips Table 9.4: Non-Capacity-Enhancing Improvements - Cost per Wtd Pk Hr Trip City Cost Buildout Weighted Cost per Weighted Share 1 Peak Hour Trips 2 Peak Hour Trip 3 $48,898,969 52,362 $933.86 1 See Table 9.2 2 See Table 2.4 3 Cost per weighted peak hour trip = impact fee cost basis / buildout weighted peak hour trips 295 City of La Quinta Page 9-4 Development Impact Fee Study August 8, 2019 In Table 9.6, the costs initially allocated to public facilities and parks based on traffic generated by those uses, are reallocated to private development. That reallocation i s justified by the fact that the need for public facilities and parks is created by private developmen t. Table 9.5: Transportation Improvements - Impact Fees per Unit (Before Reallocation) Development Cost per Wtd Wtd Pk Hr Impact Fee Admin Adj Impact Type Units 1 Pk Hr Trip 2 Trips per Unit 3 per Unit 4 Charge 5 Fee per Unit 6 Residential - Single Family Detached DU 3,375.26$1.16 3,915.30$12.69$3,927.99$ Residential - Single Family Attached DU 3,375.26$0.89 3,003.98$9.73$3,013.72$ Residential - Multi-Family/Other DU 3,375.26$0.66 2,227.67$7.22$2,234.89$ Office/Medical KSF 3,375.26$1.90 6,413.00$20.78$6,433.78$ General Commercial KSF 3,375.26$2.34 7,898.11$25.59$7,923.70$ Tourist Commercial/Lodging Room 3,375.26$0.54 1,822.64$5.91$1,828.55$ Public Facilities KSF 3,375.26$2.48 8,370.65$27.12$8,397.77$ Schools Acre 3,375.26$0.79 2,666.46$8.64$2,675.10$ Parks Acre 3,375.26$0.51 1,721.38$5.58$1,726.96$ Golf Courses Acre 3,375.26$0.27 911.32$2.95$914.27$ 1 Units of development; DU = dwelling unit; KSF = 1,000 gross square feet of building area; Room = guest room or suite; Acre = net developed acre 2 Sum of costs per weighted peak hour trip from Table 9.3 and Table 9.4 3 See Table 2.1 4 Impact fee per unit = cost per weighted peak hour trip X weighted peak hour trips per unit 5 Administrative charge based on 0.324% of the impact fee per unit; see discussion in text 6 Adjusted impact fee per unit including administrative charge Table 9.6: Transportation Improvements - Cost per Weighted Peak Hour Trip with Reallocation Initial Cost Reallocated Reallocated Adjusted Development per Weighted Pub Fac Cost per Parks Cost per Cost per Type Units 1 Pk Hr Trip 2 Wtd Pk Hr Trip 3 Wtd Pk Hr Trip 4 Wtd Pk Hr Trip 5 Residential - Single Family Detached DU $3,375.26 56.67 12.73 3,444.67$ Residential - Single Family Attached DU $3,375.26 56.67 12.73 3,444.67$ Residential - Multi-Family/Other DU $3,375.26 56.67 12.73 3,444.67$ Office/Medical KSF $3,375.26 56.67 3,431.93$ General Commercial KSF $3,375.26 56.67 3,431.93$ Tourist Commercial/Lodging Room $3,375.26 56.67 3,431.93$ Public Facilities KSF Reallocated 0.00$ Schools Acre No Allocation 0.00$ Parks Acre Reallocated 0.00$ Golf Courses Acre $3,375.26 56.67 3,431.93$ 1 Units of development; DU = dwelling unit; KSF = 1,000 gross square feet of building area; Room = guest room or suite; Acre = net developed acre 2 See Table 9.5 3 Reallocated public facilities cost per weighted peak hour trip = 84 KSF of future Public Facilities X $8,370.65 per KSF = $703,144.56 / 12,407 weighted peak hour trips for receiving facilities = $56.67 per weighted peak hour trip 4 Reallocated parks cost per weighted peak hour trip = 54 acres of future Parks X $1,721.38 per acre = $92,954.71 / 7,301 weighted peak hour trips for receiving (residential) development =$12.73 per weighted peak hour trip 296 City of La Quinta Page 9-5 Development Impact Fee Study August 8, 2019 In Table 9.6, above, public facilities costs are reallocated to all types of private development while parks costs are reallocated only to residenti al development that creates the need for parks. Table 9.7 recalculates the impact fees per unit of de velopment using the adjusted cost p er weighted peak hour trip for each type of development after reallocation.It is worth noting that the increase in impact fees for private development resulting from reallocation is very small on a percentage basis,about 2.1 % for residential development and 1.7% for non-residential development. Projected Revenue Table 9.8 on the next page shows projected revenue from the impact fees calculated in this chapter. Potential revenue for the added private development shown in Table 2.3 is projected by applying the impact fees per unit from Table 9.7 to added units of development from Table 2.3. Table 9.7: Transportation Improvements - Impact Fees per Unit (After Reallocation) Development Adj Cost/Wtd Wtd Pk Hr Impact Fee Admin Adj Impact Type Units 1 Pk Hr Trip 2 Trips per Unit 3 per Unit 4 Charge 5 Fee per Unit 6 Residential - Single Family Detached DU 3,444.67$1.16 3,995.81$12.95 4,008.76$ Residential - Single Family Attached DU 3,444.67$0.89 3,065.75$9.93 3,075.69$ Residential - Multi-Family/Other DU 3,444.67$0.66 2,273.48$7.37 2,280.85$ Office/Medical KSF 3,431.93$1.90 6,520.68$21.13 6,541.80$ General Commercial KSF 3,431.93$2.34 8,030.73$26.02 8,056.75$ Tourist Commercial/Lodging Room 3,431.93$0.54 1,853.24$6.00 1,859.25$ Golf Courses Acre 3,431.93$0.27 926.62$3.00 929.62$ 1 Units of development; DU = dwelling unit; KSF = 1,000 gross square feet of building area; Room = guest room or suite; Acre = net developed acre 2 See Table 9.6 3 See Table 2.1 5 Administrative charge based on 0.324% of the impact fee per unit; see discussion in text 6 Adjusted impact fee per unit including administrative charge 297 City of La Quinta Page 9-6 Development Impact Fee Study August 8, 2019 The total impact fee revenue projected in Table 9.8 represents approximately 5 4% of the City’s share of the total cost of transpo rtation improvements shown in the 2018 Transportation Infrastructure Needs Analysis. Updating the Fees The impact fees calculated in this chapter are based on cost estimates in the 2018 Transportation Infrastructure Needs Analysis. We recommend that these fees be reviewed periodically and adjusted when updated costs become available. Nexus Summary As discussed in Chapter 1 of this report,Section 66001 of the Mitigation Fee Act requires that an agency establishing, increasing or imposing impact fees, must make findings to: Identify the purpose of the fee; Identify the use of the fee; and, Determine that there is a reasonable relationship between: a.The use of the fee and the development type on which it is imposed; b.The need for the facility and the type of development on which the fee is imposed; and c.The amount of the fee and the facility cost attributable to the development project. Table 9.8: Transportation Impact Fees - Projected Revenue Development Adj Impact Future Projected Type Units 1 Fee per Unit 2 Units 3 Revenue 4 Residential - Single Family Detached DU 4,008.76$5,186 20,789,425$ Residential - Single Family Attached DU 3,075.69$743 2,285,235$ Residential - Multi-Family/Other DU 2,280.85$946 2,157,680$ Office/Medical KSF 6,541.80$512 3,349,403$ General Commercial KSF 8,056.75$1,358 10,941,061$ Tourist Commercial/Lodging Room 1,859.25$1,360 2,528,579$ Golf Courses Acre 929.62$817 759,503$ Total 42,810,885$ 1 Units of development; DU = dwelling unit; KSF = 1,000 gross square feet of building area; Room = guest room or suite; Acre = net developed acre 2 See Table 9.7 3 See Table 2.3 4 Projected revenue = impact fee per unit X future units 298 City of La Quinta Page 9-7 Development Impact Fee Study August 8, 2019 Satisfying those requirements also ensures that the fees meet the “rational nexus” and “rough proportionality” standards enunciated in leading court decisions bearing on impact fees and other exactions. (For more detail, see “Legal Framework for Impact Fees” in Chapter 1.) The following paragraphs explain how the impact fees calculated in this chapter satisfy those requirements. Purpose of the Fee:The purpose of the impact fees calculated in this chapter is to pay for new development’s proportionate share of the cost of p roviding transportation improvements to serve development in La Quinta. Use of the Fee.Impact fees calculated in this chapter will be used to pay for transportation facilities shown in the City’s 2018 Transportation Infrastructure Needs Analysis , as revised August 5, 2019,and to reimburse developers for improvement costs expended for the benefit of future development. As provided by the Mitigation Fee Act, revenue from impact fees may also be used for temporary loans from one impact fee fund or account to another. Reasonable Relationship between the Use of the Fee and the Development Type o n Which It Is Imposed.The impact fees calculated in this chapter will be used to pay for new development’s proportional share of the transportation improvements neede d to serve all development in La Quinta. Reasonable Relationship between the Need for the Facilities and the Type of Development on Which the Fee Is Imposed.Additional demand created by new development necessitates the construction of improvements to the City’s transportation system. The impact fees calculated in this chapter will pay for a portion of tho se improvements. Reasonable Relationship between the Amount of the Fee and the Facility Cost A ttributable to the Development Project.The amount of the transportation impact fees charged to a development project will depend on the amount of peak hour added traffic associated with that project. The fees per unit of development calculated in this chapter for each type of development are based on the estimated weighted peak hour trips associated with that type of development in La Quinta. Thus, the fee charge d to a development project reflects that project’s proportionate share of the cost of new transportation facilities in the City. 299 City of La Quinta Page 10-1 Development Impact Fee Study August 8,2019 Chapter 10.Implementation This chapter of the report contains recommendations for adoption and administration of impact fees, and for th e interpretation and application of the development impact fees and in - lieu fees calculated in this study. It was not prepared by an attorney and is not intended as legal advice. Statutory requirements for the adoption and administration of fees imposed a s a condition of development approval (impact fees) are found in the Mitigation Fee Act (Government Code Sections 66000 et seq.). Requirements for park land dedication and fees in lieu of dedication are governed by the Quimby Act (Government Code 66477). Adoption The form in which development impact fees are enacted should be determined by the City attorney. The specific requirements are diff erent for impact fees under the Mitigation Fee Act, and for park land dedication and in -lieu fees under the Quimby Act. The latter requirements must be adopted by ordinance, and are subject to the same noticing and public hearing procedures as any ordinance. Procedures for adoption of fees subject to the Mitigation Fee Act, including notice and public hearing requirements, are specified in Government Code Sections 66016 and 66018. It should be noted that Section 66018 refers to Government Code Section 6062 a, which requires that the public hearing notice be published at least twice during the 10 -day notice period. Government Code Section 66017 provides that fees subject to the Mitigation Fee Act do not become effective until 60 days after final action by th e governing body. Actions establishing or increasing fees subject to the Mitigation Act require certain findings , as set forth in Government Code Section 66001 and discussed below and in Chapter 1 of this report. Establishment of Fees. Pursuant to the Mitigation Fee Act, Section 66001(a), when an agency establishes fees to be imposed as a condition of development approval,it must make findings to: 1.Identify the purpose of the fee; 2.Identify the use of the fee; and 3.Determine how there is a re asonable relationship between: a.The use of the fee and the type of development project on which it is imposed; b.The need for the facility and the type of development project on which the fee is imposed 300 City of La Quinta Page 10-2 Development Impact Fee Study August 8,2019 Examples of findings that could be used for impact fees calculated in this study are shown below. The specific language of such findings should be reviewed and approved by the agency’s Attorney.A more complete discussion of the nexus for each fee can be found in individual chapters of this report. Sample Finding:Purpose of the Fee.The City Council finds that the purpose of the impact fees hereby enacted is to protect the public health, safety and welfare by requiring new development to contribute to the cost of park and recreation improvements needed to mitigate the impacts of new development . Sample Finding: Use of the Fee.The City Council finds that revenue from the impact fees hereby enacted will be used to provide public facilities needed to mitigate the impacts of new development in the City and identified in the 2019 City of La Quinta Development Impact Fee Study by NBS.1 Sample Finding: Reasonable Relationship:Based on analysis presented in the 2019 City of La Quinta Development Impact Fee Study by NBS, the City Council finds that there is a reasonable relationship between: a.The use of the fees and the types of development projects on which they are imposed; and, b.The need for facilities and the types of development projects on which the fees are imposed. Administration The California Mitigation Fee Act (Government Code Sections 66000 et seq.) mandates procedures for administration of impact fee programs, including collection and accounting, reporting, and refunds. References to code sections in the following paragraphs pertain to the California Government Code. Imposition of Fees. Pursuant to the Mitigation Fee Act , Section 66001(a), when an agency imposes an impact fee upon a specific development project, it must make essentially the same findings adopted upon establishment of the fees to: 1.Identify the purpose of the fee; 2.Identify the use of the fee; and 3.Determine how there is a reasonable relationship between: a.The use of the fee and the type of development project on which it is imposed; 1 According to Gov’t Code Section 66001 (a) (2), the use of the fee may be specified in a capital improvement plan, the General Plan, or other public documents that identify the public facilities for which the fee is charged. The findings recommended here identify this impact fee study as the source of that inf ormation. 301 City of La Quinta Page 10-3 Development Impact Fee Study August 8,2019 b.The need for the facility and the type of development project on which the fee is imposed Per Section 66001 (b), at th e time when an impact fee is imposed on a specific development project, the City is also required to make a finding to determine how there i s a reasonable relationship between: c.The amount of the fee and the facility cost attributable to the development project on which it is imposed. In addition, Section 66006 (f)provides that a local agency, at the time it imposes a fee for public improvements on a specific development project, "... shall identify the public improvement that the fee will be used to finance."The required notification could refer to the improvements identified in this study. Section 66020 (d) (1) requires that the agency, at the time it imposes an impact fee ,provide a written statement of the amount of the fee and written notice o f a 90-day period during which the imposition of the fee can be protested. Failure to protest imposition of the fee during that period may deprive the fee payer of the right to subsequent legal challenge. Section 66022 (a)provides a separate procedure for challenging the establishment of an impact fee. Such challenges must be filed within 120 days of enactment. Collection of Fees.Section 66007 (a), provides that a local agency shall not require payment of fees by developers of residential projects pr ior to the date of final inspection, or issuance of a certificate of occupancy, whichever occurs first. However, "utility service fees" (not defined) may be collected upon ap plication for utility service.In a residential development project of more than one dwelling unit,Section 66007 (a) allows the agency to choose to collect fees either for individual units or for phases upon final inspection, or for the entire project upon final inspection of the first dwelling unit completed. Section 66007 (b) provides two exceptions when the local agency may require the payment of fees from developers of residential projects at an earlier time: (1) whe n the local agency determines that the fees “will be collected for public improvements or facilities for which an account has been established and funds appropriated and for which the local agency has adopted a proposed construction schedule or plan prior to final inspection or issuance of the certificate of occupancy” or (2) the fees are “to reimburse the local agency for expenditures previously made.” Statutory restrictions on the time at which fees may be collected do not apply to non - residential development. Notwithstanding the foregoing restrictions, many cities routinely collect impact fees for all facilities at the time building or grading permits are issued and builders often find it convenient to pay the fees at that time. 302 City of La Quinta Page 10-4 Development Impact Fee Study August 8,2019 In cases where the fees are not collected upon issuance of building permits ( of grading permits for golf courses), Sections 66007 (c) (1)and (2) provide that the City may require the property owner to execute a contract to pay the fee, and to record that contract as a lien ag ainst the property until the fees are paid. Earmarking and Expenditure of Fee Revenue.Section 66006 (a)mandates that fees be deposited “with other fees for the impro vement in a separate capital facilities account or fund in a manner to avoid any commingling of the fees with other revenues and funds of the local agency, except for temporary investments , and expend those fees solely for the purpose for which the fee was colle cted.”Section 66006 (a) also requires that interest earned on the fee revenues be placed in the capital account and used for the same pur pose. The language of the law is not clear as to whether depositing fees "with other fees for the improvement" refers to a specific capital improvement or a class of improvements (e.g., street improvements). We are not aware of any municipality that has interpreted that language to mean that funds must be segregated by individual projects. And, as a practical matter,that approach would be unworkable in any event because it would mean that no pay-as-you-go project could be constructed until all benefiting development had paid the fees. Common practice is to maintain separate funds or accounts for impact fee revenues b y facility category (i.e., streets, park improvements), but not for individual proj ects. Impact Fee Exemptions, Reductions, and Waivers . In the event that a development project is found to have no impact on facilities for which impact fees are charged,such project must be exempted from the fees. If a project has characteristics that will make its impacts on a particular public facility or infrastructure system significantly and permanently sma ller than the average impact used to calculate impact fees in this study, the fees should be reduced accordingly.Per Section 66001 (b), there must be a reasonable relationship between the amount of the fee and the cost of the public facility attributable to the development on which the fee is imposed. The fee reduction is required if the fee is not proportional to the impact of the developme nt on relevant public facilities. In some cases, the agency may desire to voluntarily waive or reduce impact fees that would otherwise apply to a project as a way of promoting goals such as affordable housing or economic development. Such a waiver or redu ction may not result in increased costs to other development projects,so the effect us such policies is that the lost revenue must be made up from other fund sources. Credit for Improvements Provided by Developers. If the City requires a developer,as a condition of project approval,to dedicate land or construct facilities or improvements for which impact fees are charged,the City should ensure that the impact fees are ad justed so that the overall contribution by the developer does not exceed the impact created by the development. 303 City of La Quinta Page 10-5 Development Impact Fee Study August 8,2019 In the event that a developer voluntarily offers to dedicate land,or construct facilities or improvements in lieu of paying impact fees, the City may accept or reject such offers, and may negotiate the terms under which such an offer would be accepted. Excess contributions by a developer may be offset by reimbursement agreements . Credit for Existing Development.If a project involves replacement, redevelopment or intensification of previously existing development, impact fe es should be applied only to the portion of the project that represents a net increase in demand for relevant City facilities, applying the measure of demand used in this study to calculate that particular impact fee. Annual Report.Section 66006 (b) (1)requires that once each year, within 180 days of the close of the fiscal year, the local agency must make availa ble to the public the following information for each separate account established to receive impact fee revenues: 1.A brief description of the type of fee in the account or fund; 2.The amount of the fee; 3.The beginning and ending balance of the account or fund; 4.The amount of the fees collected and interest earned; 5.Identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the percentage of the cost of the public improvement that was funded with fees; 6.Identification of the approximate date by which the construction of a public improvement will commence, if the City determine s sufficient funds have been collected to complete financing of an incomplete public improvement; 7.A description of each inter-fund transfer or loan made from the account or fund, including interest rates, repayment dates, and a description of the improveme nt on which the transfer or loan will be expended; 8.The amount of any refunds or allocations made pursuant to Secti on 66001, paragraphs (e) and (f). The annual report must be reviewed by the City Council at its next regularly scheduled public meeting, but not less than 15 days after the statements are made public , per Section 66006 (b) (2). Refunds under the Mitigation Fee Act. Prior to 1996,The Mitigation Fee Act required that a local agency collecting impact fees was required to ex pend or commit impact fee revenue within five years,or make findings to justify a continued need for the money. Otherwise, those funds had to be refunded. SB 1693, adopted in 1996 as an amendment to the Mitigation Fee Act,changed that requirement in material ways. Now, Section 66001 (d)requires that, for the fifth fiscal year following the first deposit of any impact fee revenue into an account or fund as required by Section 66006 (b), and every five 304 City of La Quinta Page 10-6 Development Impact Fee Study August 8,2019 years thereafter, the local agency shall make all of the following find ings for any fee revenue that remains unexpended, whether committed or uncommitted: 1.Identify the purpose to which the fee will be put; 2.Demonstrate the reasonable relationship between the fee and the purpose for which it is charged; 3.Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements for which impact fees are to be used; 4.Designate the approximate dates on which the funding necessary to complete financing of those improvements will be deposited into the appropriate account or fund. Those findings are to be made in conjunction with the annual reports discussed above . If such findings are not made as required by Section 66001, the local agency could be required to refund the moneys in the account or fund ,per Section 66001 (d). Once the agency determines that sufficient funds have been collected to complete financing on incomplete improvements for which impact fee revenue is to be used, it must, within 180 days of that determination, identify an approxim ate date by which construction of the public improvement will be commenced (Section 66001 (e)). If the agency fails to comply with that requirement, it must refund impact fee revenue in the account according to proc edures specified in Section 66001 (d). Refunds under the Quimby Act.The Quimby Act, Section a.(6)(A) requires that a City, County or other agency to which park land or in-lieu fees are conveyed or paid shall develop a schedule “specifying how, when and where it will use the land or fees or both to develop park or recreational facilities to serve residents of the subdivision…. Any fees collected under the ordinance shall be committed within five ye ars after the payment of the fees or the issuance of building permits on one-half of the lots created by the subdivision, whichever occurs later. Any fees not committed within five years must be refunded. Annual Update of the Capital Improvement Plan . Section 66002 (b) of the Mitigation Fee Act provides that if a local agency adopts a capital improvemen t plan to identify the use of impact fees, that plan must be adopted and annually updated by a resolution of the g overning body at a noticed public hearing.The alternative, per Section 66001 (a) (2)is to identify improvements by applicable general or specific plans or in other public documents. In most cases, the CIP identifies projects for a limited number of yea rs and may not include all improvements needed to serve future development covered by the impact fee study.We recommend that the City Council cite this development impact fee study as the public document identifying the use of the fees. Indexing of In-Lieu/Impact Fees. Where impact fees calculated in this report are based on current costs, those costs should, if possible,be adjusted periodically to account for changes in the cost of facilities or other capital assets that will be funded by the impact fees.That 305 City of La Quinta Page 10-7 Development Impact Fee Study August 8,2019 adjustment is intended to account for escalation in costs for land, construction, vehicles and other relevant capital assets. We recommend the Engineering News Record Building Cost Index as the primary basis for indexing construction costs .Where land costs are covered by an impact fee or in-lieu fee, land costs should be adjusted based on changes in local land prices. Training and Public Information Effective administration of an impact fee program requires considerable preparation and training. It is important that those responsible for collecting the fees, and for explaining them to the public, understand both the details of t he fee program and its supporting rationale. Before fees are imposed, a staff training workshop is highly desirab le if more than a handful of employees will be involved in collecting or accounting for fees. It is also useful to pay close attention to ha ndouts that provide information to the public regarding impact fees. Impact fees should be clearly distinguished from other fees, such as user fees for application processing, and the purpose and use of particular impact fees should be made clear. Finally, anyone responsible for accounting, capital budgeting, or project management for projects involving impact fees m ust be fully aware of the restrictions placed on the expenditure of impact fee revenues.Some fees recommended in this report are tied to spe cific improvements and cost estimates. Fees must be expended accordingly and the City must be able to show that funds have been properly expended. Recovery of Study Costs and Administrative Costs To recover the cost of periodic impact fee update studies a nd ongoing staff costs for managing those updates and preparing annual reports and five-year updates required by the Mitigation Fee Act, an administrati ve charge may be added to the impact fees calculated in this report. The administrative charges are included in the calculation of impact fees in this report. 306 Development Impact Fee Study Update Overview The following is a brief overview of the changes presented within the 2019 DIF Update: Chapter 2 - Development Data: Land Use, Demographics and Development Potential have been updated to reflect the City’s current socio-economic data (SED) used to tabulate existing, future, and ultimate build out development. Information on land use and demographics for this study was prepared by the La Quinta Planning Division. Sources of data include the 2035 La Quinta General Plan Update, the 2010 U.S. Census, and the California Department of Finance population estimates. Data on existing land use, and demographics and development used in this report have been updated through June 2019. The updated SED presented within this section forms the basis of fee calculation for all DIF fees collected. Chapter 3 – Parks and Recreation Impact Fees: This year’s DIF update includes calculations for both the Quimby Act Fees, and the Park and Recreation Impact Fees. Quimby Act In-Lieu Fees – The Quimby Act (Government code 66477) authorizes the city to require residential subdivisions dedicate land for parks or pay fees in lieu of dedication. Chapter 3 calculates the in-lieu fees, which apply only to residential projects that involve a subdivision. Park and Recreation Impact Fees – Impact fees for parkland acquisition that apply to residential projects not involving a subdivision, and impact fees for construction of park improvements that apply to all residential development projects. Chapter 4 – Community and Cultural Centers This chapter calculates impact fees for community and cultural centers needed to serve future development in La Quinta. This fee was formerly known as the Community Centers impact fee. The scope of the fee has been broadened in this study update to include cultural facilities such as the La Quinta Museum. Previously, only portions of the museum and Boys and Girls Club used as meeting rooms were covered. The impact fees calculated in this Chapter are based on the City’s existing investment per capita in community and cultural center facilities and will be used to provide additional facilities to maintain the current level of service as the City continues to grow. ATTACHMENT 2 307 Chapter 5 – Library Facilities and Materials This chapter calculates impact fees for the La Quinta Library, which is owned by the City of La Quinta and operated by the Riverside County Library System. The existing Library was designed to serve the projected population within the corporate boundaries of the City. Chapter 6 – Civic Center Facilities This chapter calculates impact fees for the La Quinta Civic Center. When the most recent Civic Center expansion was constructed, the City expected that the expanded facility would have adequate capacity to serve all planned development within the corporate boundaries of the City. This expectation has changed as the City began to bring in-house more services that were formerly contracted out. Space within the Civic Center is now at a premium and additional space will be required as the City continues to grow. Chapter 7 – Maintenance Facilities and Equipment This chapter calculates impact fees for the corporate yard maintenance facilities needed to serve future development in La Quinta. Chapter 8 – Fire Protection Facilities This chapter calculates impact fees for La Quinta’s Fire protection facilities. The City contracts with the Riverside County Fire Department for fire protection services. The City builds and owns the fire stations in La Quinta. There are three existing fire stations in the City and a fourth new station is planned in or near the southeastern quadrant of the City. This study assumes that the cost of the fourth fire station will be shared equally between La Quinta and Riverside County. Chapter 9 – Transportation Facilities This chapter calculates the impact fees for improvements to La Quinta’s transportation system, including arterial streets, medians, roundabouts, traffic signals, bridges, bike lanes and sidewalks. This study assigns shares of the cost of each improvement to impact fees and to various other funding sources. In the past, the City Council discounted transportation impact fees by 22%. The Fees presented within the September 2019 update do not automatically include this discount. The following table presents the proposed fee and compares it the adjusted fee (discounted fee) and the existing fee. 308 DEVELOPMENT TYPE PROPOSED 22% DISCOUNT ADJUSTED FEE EXISTING FEE DIFFERENCE PERCENT Residential - Single Family Detached 4,009.00$ 881.98$ 3,127.02$ 2,842.00$ 285.02$ 9.11% Residential - Single Family Attached 3,076.00$ 676.72$ 2,399.28$ 2,842.00$ (442.72)$ -18.45% Residential - Multi-Family/Other 2,281.00$ 501.82$ 1,779.18$ 1,745.00$ 34.18$ 1.92% Office/Medical 6,542.00$ 1,439.24$ 5,102.76$ 4,645.00$ 457.76$ 8.97% General Commercial 8,057.00$ 1,772.54$ 6,284.46$ 5,769.00$ 515.46$ 8.20% Tourist Commercial 1,859.00$ 408.98$ 1,450.02$ 1,590.00$ (139.98)$ -9.65% Golf Course 930.00$ 204.60$ 725.40$ 669.00$ 56.40$ 7.78% 309 310 City of La Quinta CITY COUNCIL MEETING DEPARTMENT REPORT TO: Madam Mayor and Members of the City Council FROM: Rosemary Hallick, Financial Services Analyst DATE: October 1, 2019 SUBJECT: INVESTMENT POLICY CERTIFICATION The City of La Quinta has been granted the California Municipal Treasurers Association (CMTA) Investment Policy Certification for the 2019/20 Investment Policy. The CMTA is an organization of treasury professionals focused on quality assurance programs, education, professional standards, and public accountability. With support from the California Debt and Investment Advisory Commission (CDIAC), the CMTA developed the Investment Policy Certification Program. The goal of the program is to provide professional guidance to develop and/or improve investment policies in California’s public sector agencies. Certification recognizes that the City’s policy adheres to the State of California Government Code and meets best practice guidelines in 18 different topic areas (Attachment 1). The benefits of certification include transparency to the public, confidence and verification that the policy has been reviewed by a certified professional organization, demonstration of due diligence, and audit compliance. Attachment: 1. CMTA Press Release DEPARTMENTAL REPORT ITEM NO. 7 311 News Release FOR IMMEDIATE RELEASE Date: September 18, 2019 For more information contact: Shaun L. Farrell, Chairperson CMTA Investment Policy Certification Phone: 209-712-0428 Email: sfarrell@ci.galt.ca.us (Sacramento, California) – The California Municipal Treasurers Association (CMTA) Investment Policy Certification has been granted to the City of La Quinta. This Investment Policy Certification recognizes that CMTA has validated that the City of La Quinta’s Investment Policy adheres with the State of California Government Code and meets the program requirements within 18 different topics areas deemed to be best practices for investment policies. Those topics include: Scope, Prudence, Objective, Delegation of Authority, Ethics and Conflicts of Interest, Authorized Financial Dealers and Institutions, Authorized and Suitable Investments, Review of Investment Portfolio, Investment Pools/Mutual Funds, Collateralization, Safekeeping and Custody, Diversification, Maximum Maturities, Internal Controls, Performance Standards, Reporting, Investment Policy Adoption and Glossary. Once a policy is received by CMTA, it is independently evaluated using a scoring matrix by three separate CMTA professionals. When the agency receives a passing score, the Investment Policy earns the ‘Certified’ distinction. To enhance the municipal treasurer’s role, CMTA has developed a number of certification programs to reflect best practices and increase an individual’s knowledge of fixed income instruments. The Investment Policy Certification program began in 2012 with the support from the California Debt and Investment Advisory Commission. It is open to all government agencies within the State of California including special districts, cities and counties. CMTA was founded in 1958 by a handful of Municipal Treasurers from both Northern and Southern California whose primary interest was to improve their function in local Government. CMTA is a professional organization governed by active public officials who are representatives of their own local governmental units. ATTACHMENT 1 312 HAND OUTS CITY COUNCIL MEETING OCTOBER 1, 2019 October 1, 2019 From: City of La Quinta Monika Radeva, City Clerk 78495 Calle Tampico La Quinta, California 92253 Tel: (760) 777 – 7035 Email: MRadeva@LaQuintaCA.gov VIA EMAIL TO GG@TheDVBA.org and James@TheDVBA.org To: Gretchen Gutierrez, Chief Executive Officer Desert Valley Builders Association 75100 Mediterranean Palm Desert, California 92211 SUBJECT: CITY OF LA QUINTA DEVELOPMENT IMPACT FEE (DIF) STUDY UPDATE – RESPONSE TO DVBA’S COMMENT LETTER DATED SEPTEMBER 27, 2019 Dear Ms. Gutierrez, The City of La Quinta is updating its DIF Study. City Staff submitted the draft DIF Study, dated August 8, 2019, to the DVBA for review and comments on August 27, 2019; and met with DVBA staff on September 11, 2019 to discuss proposed changes and answer questions. The draft DIF Study is scheduled for City Council review and discussion at the October 1, 2019, regular Council meeting as Study Session Item No. 2, thus Council will not be taking any action on this item during this meeting. The draft DIF Study will be scheduled again for Council review and consideration as a public hearing item during a future meeting, and City Staff will notify the DVBA of the hearing in accordance with California state law notification requirements. Following the publication of the Agenda Packet for the October 1, 2019 Council meeting, the City received the DVBA’s comment letter dated September 27, 2019, enclosed hereto as Attachment 2. The City’s consultant, NBS Government Finance Group, has provided responses to the DVBA’s comments in the enclosed memorandum dated September 30, 2019 as Attachment 1. This correspondence will be incorporated into the record for the October 1, 2019, Council meeting, and made available to the public. Any person may submitted written comments and/or speak on this item during this meeting, and any future meetings this item is being contemplated. Should you have any questions, please do not hesitate to contact me. Regards, Monika Radeva, City Clerk City of La Quinta, California COUNCIL MEETING - OCTOBER 1, 2019 - WRITTEN COMMENTS & RESPONSES STUDY SESSION ITEM NO. 2 - DEVELOPMENT IMPACT FEES STUDY UPDATE Page 1  Memo  To:  City of La Quinta  Bryan McKinney, City Engineer  From:  NBS Government Finance Group  Nicole Kissam, Joe Colgan  Date:  September 30, 2019  Re:  City of La Quinta Development Impact Fee Study Update – Response to DVBA Let‐ ter Dated September 27, 2019  This memo provides responses to issues raised in the DVBA letter, dated September 27,  2019, regarding the City of La Quinta Draft Impact Fee Report. In general, it addresses those  issues in the same order in which they appear in the letter.   Paragraphs 2, 3 and 4: Increasing Level of Service.  Only two of the impact fees calculated in  the La Quinta Impact Fee Study involve an increase in the level of service provided to the  City, so this discussion relates only to the maintenance facilities impact fees and the trans‐ portation Impact fees.  If it were the case that future improvements to the City’s maintenance facilities or transpor‐ tation system were to be funded with a dedicated special tax, we agree that it would be ap‐ propriate for the impact fee calculations to reflect a credit for future development’s contri‐ bution to the revenue generated from that source.  While laws in some states require such a  credit even for general taxes, California does not. As a practical matter once revenue is cred‐ ited to the General Fund, there is no way of tracking what sources of revenue are used for a  particular purpose.  With respect to transportation improvements, the City has already constructed most of the  arterial streets needed to serve future development and is not proposing that the impact  fees recover future development’s share of the cost of those improvements. Furthermore, in  the past the City has discounted the transportation impact fees, so that the existing commu‐ nity has been subsidizing the cost of street improvements needed to serve new develop‐ ment. Overall, it’s unlikely that new development is contributing even its fair share of the  cost of the City’s transportation system.  As for maintenance facilities, the existing community has paid for the existing facilities and  will probably contribute close to 90% of any non‐impact fee funding needed to fund future  maintenance facilities. Future development represents only about 25% of buildout develop‐ ment and it could take 20 years or more for buildout to occur, so new development’s contri‐ bution to the City’s General Fund revenues over that period might average around 12%.  Parks and Recreation Impact Fees.  DVBA asserts that the City may not charge both a  Quimby Act in‐lieu fee for park land and an impact fee for park improvements. That is incor‐ ATTACHMENT 1COUNCIL MEETING - OCTOBER 1, 2019 - WRITTEN COMMENTS & RESPONSES STUDY SESSION ITEM NO. 2 - DEVELOPMENT IMPACT FEES STUDY UPDATE Page 2 rect. It is true that the definition of “fee” in the Mitigation Fee Act excludes in‐lieu fees  charged under the Quimby Act as well as fees for processing applications, fees collected un‐ der development agreements and certain other fees. DVBA interprets that to mean the City  can’t charge both a Quimby Act fee and a park improvement impact fee. But by that logic, if  the City charges Quimby Act in‐lieu fees, it could not charge fees for processing applications  or fees pursuant to development agreements.    DVBA’s claim is also refuted by this statement from the California Court of Appeals decision  in Homebuilders Association of Tulare and Kings County v. City of Lemoore, the case cited by  DVBA in its letter.  “Moreover, the Mitigation Fee Act authorizes fees for recreation facilities in‐ dependent of the Quimby Act. Quimby Act Fees are expressly excluded from  the fees authorized to be collected under the Mitigation Fee Act (Section  66000, subd. (b).). Nevertheless, the Mitigation Fee Act permits fees to be  adopted for parks and recreation facilities.”  As noted by the court in Lemoore, the Mitigation Fee Act, in Subsection 66002(a)(7) specifi‐ cally lists parks and recreation facilities among the facilities or improvements to which the  Mitigation Act applies.  Establishing Need. Another contention in the DVBA letter regarding park impact fees and  several other types of impact fees is that the City must determine a need for facilities to be  funded by impact fees. While that is true, DVBA misinterprets the manner in which “need”  must be established.  The “need” for any type of public facility in La Quinta or any other city is determined by City  Council level‐of‐service policies, whether implicit or explicit. The City can choose to provide a  street system that operates at level of service A or level of service E, and that policy decision  determines the need for street system improvements. The City can choose to design a drain‐ age system for a 100‐year storm or a 25‐year storm, and that policy decision determines the  need for drainage system improvements. The City can choose to plan for fire stations that  provide a 5‐minute response time or a 10‐minute response time, and that policy decision  determines the number of fire stations needed to serve the City. The “need” for facilities like  parks, recreation facilities, and libraries is also determined by the level of service the City  Council chooses to provide.   In most cases where the City’s  level‐of‐service policy is not explicitly stated, the current im‐ pact fee study bases impact fees on the cost of maintaining the existing level of service so  that new development will not cause a reduction in the level of service provided to the exist‐ ing community. The City’s level of service policies for those facility types are implied by its  choice  to  provide  a  certain  level  of  service  to  the  existing  community.  With  respect  to  maintenance facilities, the desired level of service is implied by the City’s adoption of a plan  for future maintenance facility improvements.  Park Land Cost. Land costs used in the impact fee study range from $10.00 per square foot  to $15.00 per square foot, depending on whether the land in question is likely to be residen‐ tial or non‐residential in nature. While every parcel is a special case, those costs are in line  with what the City has been paying for land in the recent past.  COUNCIL MEETING - OCTOBER 1, 2019 - WRITTEN COMMENTS & RESPONSES STUDY SESSION ITEM NO. 2 - DEVELOPMENT IMPACT FEES STUDY UPDATE Page 3 Park Improvement Cost. While $500,000 per acre certainly sounds expensive for park im‐ provements, we have seen similar cost estimates in other cities ranging from San Diego  County to the middle of the Central Valley. There is no doubt that construction costs have  escalated substantially as the economy recovered from the Great Recession. In spite of that  fact, the park improvements impact fees calculated in the current study are actually lower  than the City’s current fees for two of three types of residential development, and only mar‐ ginally higher for the third.  Community and Cultural Facilities. The discussion above, regarding how need is determined  for purposes of calculation impact fees, applies to these facilities as well.  Use of insurance  appraisals to establish the value of existing facilities is reasonable and appropriate. In our ex‐ perience, those valuations tend to be conservative.  The significant increase in the proposed impact fees for these facilities, compared with the  existing community center impact fees reflects the fact that the existing fees were based on  a very narrow definition of what constitutes community centers.  Library. The calculation of Library impact fees is based on the conservative assumption that  the library has capacity to serve both existing and future residents of the area within the ex‐ isting corporate boundaries of the City. The cost per capita was computed by dividing the  cost of the library plus nominal interest paid to date on the RDA loan used to fund construc‐ tion.   Footnote 2 to Table 5.1 in the report states that the building value was based on the City’s  property insurance cost analysis. That footnote conflicts with the column heading (“Original  Building Cost”) and the footnote is incorrect. The building cost shown in Table 5.1 is the orig‐ inal building cost as shown in the City’s 2013 impact fee study and is slightly less than the in‐ surance valuation. It should be noted that the current study includes only nominal interest  paid to date. It does not include any future interest cost in calculating the impact fees.  Final‐ ly, it should be noted that the library impact fees proposed in the current study are some‐ what lower than the City’s existing Library impact fees.  Civic Center. The issue of establishing “need” has been discussed previously. It is our under‐ standing that the increased utilization of space in City Hall has resulted from decisions to  bring formerly contracted services in‐house.   DVBA’s comment regarding the use of developed acreage as the demand variable in calculat‐ ing the Civic Center impact fees is worth mentioning. A demand variable is used to represent  the impact of various types of development on the need for a particular type of facility. Be‐ cause of the variety of City functions housed in the Civic Center, any demand variable used to  calculate impact fees for that facility must be broad‐based. Developed acreage has been  used to calculate La Quinta’s Civic Center impact fees for at least twenty years.   DVBA contends that acres don’t drive the need for services, but the fact is, development on  those acres does drive demand. Developed acreage is simply a broad‐based way of measur‐ ing development. Population doesn’t work in this case because it doesn’t reflect demand  from non‐residential development, which needs to be accounted‐for in the case of the Civic  Center. Many impact fee studies use a construct called “service population” or “functional  population” to reflect the demand for services created by general government facilities. Ser‐ COUNCIL MEETING - OCTOBER 1, 2019 - WRITTEN COMMENTS & RESPONSES STUDY SESSION ITEM NO. 2 - DEVELOPMENT IMPACT FEES STUDY UPDATE Page 4 vice population is a composite variable consisting of population plus employees of businesses  in the study area. Employees are typically given a lower weight in the service population than  resident population. While using a different demand variable to calculate these impact fees  would undoubtedly have some differential effect on the distribution of costs among devel‐ opment types, there is no definitive way of determining that one method is “better” than  another. The legal standard is reasonableness, and we believe that the use of developed  acreage in calculating these impact fees is eminently reasonable.   Maintenance Facilities. Some of the issues raised by DVBA regarding the impact fee for  maintenance facilities were discussed above. A few others will be addressed here. The City  has developed a master plan for improvements to its maintenance facilities and some fund‐ ing for those improvements is shown in the City’s current Capital Improvement Program.  DVBA’s letter implies that the Mitigation Fee Act requires that facilities to be funded by im‐ pact fees must be identified in a capital improvement program. However, the relevant provi‐ sion states that such identification “may” be made by reference to a capital improvement  plan (Government Code 66001(a)(2)).  Fire Facilities. The issue of establishing “need” has been discussed previously, but with re‐ spect to fire facilities, the DVBA letter states that “the only true ‘nexus’ to ‘need’ is the num‐ ber and frequency of calls based on land use. We disagree. The capital cost of fire protection  facilities is determined almost entirely by the number of fire stations needed to serve a cer‐ tain area. And the need for fire stations is determined by response times. Response time de‐ pends on the distance between a fire station and the location of an emergency call. So, in  essence, the number of fire stations needed to serve an area depends, not on calls, but on  geography, and most importantly, on the size of the area (number of acres) to be served.  That is why developed acreage is a reasonable measure of demand for fire protection facili‐ ties.  Transportation. Some of the issues raised in the DVBA letter regarding the transportation  impact fees have been discussed above. Others deal with matters of opinion which can be  addressed with City staff. We would only note that when we account for the fact that the  City’s existing transportation impact fees were discounted by 22%, the transportation impact  fees calculated in the current impact fee study represent about a 10% increase from the fees  calculated in 2013. In the meantime, the Engineering News Record Construction Cost Index  has increased by 15.9%   COUNCIL MEETING - OCTOBER 1, 2019 - WRITTEN COMMENTS & RESPONSES STUDY SESSION ITEM NO. 2 - DEVELOPMENT IMPACT FEES STUDY UPDATE COUNCIL MEETING - OCTOBER 1, 2019 - WRITTEN COMMENTS & RESPONSESSTUDY SESSION ITEM NO. 2 - DEVELOPMENT IMPACT FEES STUDY UPDATEATTACHMENT 2 COUNCIL MEETING - OCTOBER 1, 2019 - WRITTEN COMMENTS & RESPONSESSTUDY SESSION ITEM NO. 2 - DEVELOPMENT IMPACT FEES STUDY UPDATE COUNCIL MEETING - OCTOBER 1, 2019 - WRITTEN COMMENTS & RESPONSESSTUDY SESSION ITEM NO. 2 - DEVELOPMENT IMPACT FEES STUDY UPDATE COUNCIL MEETING - OCTOBER 1, 2019 - WRITTEN COMMENTS & RESPONSESSTUDY SESSION ITEM NO. 2 - DEVELOPMENT IMPACT FEES STUDY UPDATE COUNCIL MEETING - OCTOBER 1, 2019 - WRITTEN COMMENTS & RESPONSESSTUDY SESSION ITEM NO. 2 - DEVELOPMENT IMPACT FEES STUDY UPDATE COUNCIL MEETING - OCTOBER 1, 2019 - WRITTEN COMMENTS & RESPONSESSTUDY SESSION ITEM NO. 2 - DEVELOPMENT IMPACT FEES STUDY UPDATE COUNCIL MEETING - OCTOBER 1, 2019 - WRITTEN COMMENTS & RESPONSESSTUDY SESSION ITEM NO. 2 - DEVELOPMENT IMPACT FEES STUDY UPDATE COUNCIL MEETING - OCTOBER 1, 2019 - WRITTEN COMMENTS & RESPONSESSTUDY SESSION ITEM NO. 2 - DEVELOPMENT IMPACT FEES STUDY UPDATE 1 Monika Radeva From:Gretchen Gutierrez <gg@thedvba.org> Sent:Tuesday, October 1, 2019 10:43 AM To:Monika Radeva; James Brownyard Cc:Jon McMillen; Teresa Thompson; Nichole Romane; Tania Flores; Julie Mignogna; Bryan McKinney; William H. Ihrke (bihrke@rutan.com) Subject:Re: DVBA Written Response to the City of La Quinta Development Impact Fee Study - Dated August 8th 2019 Follow Up Flag:Follow up Flag Status:Flagged ** EXTERNAL: This message originated outside of the City of La Quinta. Please use proper judgement and caution when opening  attachments, clicking links or responding to requests for information. **  Good morning Monika,  Thank you for sending over the City of La Quinta's response to our correspondence.  We will review and be in  attendance at  this evening's Council Meeting.  Best regards,  Gretchen Gutierrez  CEO  Desert Valleys Builders Association  75100 Mediterranean  Palm Desert, CA 92211  760‐776‐7001  760‐776‐7002 ‐ fax  email: gg@thedvba.org  website: www.TheDVBA.org  From: Monika Radeva <mradeva@laquintaca.gov>  Sent: Tuesday, October 1, 2019 10:31 AM  To: Gretchen Gutierrez <gg@thedvba.org>; James Brownyard <james@thedvba.org>  Cc: Jon McMillen <jmcmillen@laquintaca.gov>; Teresa Thompson <Tthompson@laquintaca.gov>; Monika Radeva  <mradeva@laquintaca.gov>; Nichole Romane <nromane@laquintaca.gov>; Tania Flores <tflores@laquintaca.gov>; Julie  Mignogna <jmignogna@laquintaca.gov>; Bryan McKinney <Bmckinney@laquintaca.gov>; William H. Ihrke  (bihrke@rutan.com) <bihrke@rutan.com>  Subject: DVBA Written Response to the City of La Quinta Development Impact Fee Study ‐ Dated August 8th 2019   Good Morning Ms. Gutierrez,  The City’s responses to the DVBA’s comment letter, dated September 27, 2019, regarding the City’s DIF Study update are enclosed in the attached correspondence dated October 1, 2019.  COUNCIL MEETING - OCTOBER 1, 2019 - WRITTEN COMMENTS & RESPONSES STUDY SESSION ITEM NO. 2 - DEVELOPMENT IMPACT FEES STUDY UPDATE 2 Please contact me if you have any questions. Have a wonderful day.  Monika Radeva, CMC | City Clerk  City of La Quinta  78495 Calle Tampico, La Quinta, CA 92253  Tel: (760) 777‐7035  MRadeva@laquintaca.gov  From: Gretchen Gutierrez <gg@thedvba.org>   Sent: Friday, September 27, 2019 2:38 PM  To: Jon McMillen <jmcmillen@laquintaca.gov>; Monika Radeva <mradeva@laquintaca.gov>; Nick Nickerson (Email)  <nnickerson@naiconsulting.com>; Julie Mignogna <jmignogna@laquintaca.gov>; Bryan McKinney  <Bmckinney@laquintaca.gov>  Cc: Linda Evans <Levans@laquintaca.gov>; John Peña <jpenalq@gmail.com>; Kathleen Fitzpatrick  <kfitzpatrick@laquintaca.gov>; Steve Sanchez <ssanchez@laquintaca.gov>; Robert Radi <robertdradi@gmail.com>  Subject: DVBA Written Response to the City of La Quinta Development Impact Fee Study ‐ Dated August 8th 2019  ** EXTERNAL: This message originated outside of the City of La Quinta. Please use proper judgement and caution when opening  attachments, clicking links or responding to requests for information. **  Good afternoon,  Attached please find the DVBA's written response to the City of La Quinta's DIF Study, dated August 8th,  as a  follow up to a meeting  held earlier this month between DVBA and City Staff.    This correspondence denotes in depth a variety of areas of concern with the Study that should be carefully  reviewed and acknowledged.  Please provide this letter for the Council information packet on this item for the upcoming work  session/council meeting.  Thank you for the opportunity to have DVBA meet and respond to this issue.  We look forward to continuing  the engagement on this   topic to an equitable outcome.  Gretchen Gutierrez  CEO  Desert Valleys Builders Association  75100 Mediterranean  Palm Desert, CA 92211  760‐776‐7001  760‐776‐7002 ‐ fax  email: gg@thedvba.org  website: www.TheDVBA.org  COUNCIL MEETING - OCTOBER 1, 2019 - WRITTEN COMMENTS & RESPONSES STUDY SESSION ITEM NO. 2 - DEVELOPMENT IMPACT FEES STUDY UPDATE October 1, 2019 Mayor Linda Evans La Quinta City Council City Clerk, Monika Radeva 78495 Calle Tampico La Quinta, CA 92253 RE: La Quinta Development Impact Fee Study Session Dear Mayor Evans, La Quinta City Council, City Clerk Radeva and staff, BIR Riverside caumr ChaPter Building lndusll)' Association ofSouthi?m Calirorni:i 389 / I llh S1n:,,1 Rh·crsidc, Calif om ill 92501 Offico(95I) 781-7310 l'a.x (95 I )781--0509 The Building Industry Association (BIA) is writing in reference to the "2019 Update of the Development Impact Fee Study" scheduled to be heard during a Study Session at the October 1, 2019 City Council meeting. As the lead body in the counties of Riverside and Imperial, that is dedicated to protecting and advocating for the interests of the building industry, we respectfully submit the following comments and questions. 1.The BIA has concerns with the methodology for the cost per acre estimates. The Development Impact Fee Study states four projects that were used on Table 3.6, Footnote 1 on page 3-6 (Park Acquisition). The provided information does not actually supply any information other than the names of the projects. The BIA does not believe that these projects are usable for the Park Land Acquisition due to their intended use. The Study does not explain why or how the projects were purchased. The BIA did find a comparable example purchased by the City on June 3, 2019 as an undeveloped 9.42-acre site for $1,390,000 (document on second page). 2.How did the Study determine a land value of $653,400 per acre and exclude the value of the building or property on the acre? Attachment 4, Table 4.1 page 4-2 in the Study breaks down the replacement value and insurance coverage for the facilities that the City uses. This is not a usable comparison as it is not actually relying on the land value but the building and furniture, fixtures and equipment values. If you have any questions that our staff at the BIA can answer, please call 951-781-7310. The BIA appreciates the working partnership with the City of La Quinta. Thank you, Damian Fussel Deputy Director of Governmental Affairs COUNCIL MEETING - OCTOBER 1, 2019 - WRITTEN COMMENTS & RESPONSES STUDY SESSION ITEM NO. 2 - DEVELOPMENT IMPACT FEES STUDY UPDATE Slit AIX!r­ Parcel ·No, {Af'III) Lani! Use Cal Lanij Use· DaS<. 3uildlngP.rea LotAtea auuoinl}ot.ot Rauo No'.ofVnit,; Year·Built Tctll.Assd Vakle owner·1 OY,ner2 Owner Address LastTr.msfer last M;ir¥.et Sala Addlotisl ,. Location SiteAddrim P/llc.i No. (APN) Lt!Q311nrormaton SU!rltw..lon Leg3ll.Ot LegalBlotk 600-020-053 VACA1tTIAND 'COMMERCIAl 410,770 SF (9,4' -'CRES) CnY OF LA QUINTA PO BOX-15041.A QUINTA, CA 92241 3141\1 6f.11111 lorS1,l!IO,0OO Full ProPErlY Oelail vMora liOIJ-020,USJ 9.43 ACIIES'Mlk IN POR SE 114 OF .SEC 2!I TSS R7E FOR TOTAL DEiiCRlPTION SEE ASSESSORS MAPS �?-��----,·I COUNCIL MEETING - OCTOBER 1, 2019 - WRITTEN COMMENTS & RESPONSES STUDY SESSION ITEM NO. 2 - DEVELOPMENT IMPACT FEES STUDY UPDATE POWER POINTS CITY COUNCIL MEETING OCTOBER 1, 2019 10/2/2019 1 City Council Meeting October 1, 2019 City Council Meeting October 1, 2019 P1 – 2020 Census Update 1 2 10/2/2019 2 “Count Everyone Once,  Only Once And In The Right Place” Doug Hassett ‐ Partnership Specialist Dept. of Commerce with the U.S. Census Bureau Los Angeles Regional Census Center 3 The Road to 2020 Community Partnership and Engagement Program (CPEP) Engage organizations & individuals to  reach out to hard to count groups and  those who aren’t motivated to respond  to the national campaign Educate people about the 2020 Census  and foster cooperation Encourage community partners to  motivate people to self‐respond ENROLLING PARTNERS 3 4 10/2/2019 3 1790 – FIRST CENSUS Thomas Jefferson was  charged with overseeing  the very first Census He noted that the  Southwestern portion of  the Country was most  important.  Southwest just as  important in 2020 Difference being? 5 What Does the Census Bureau Do 6 Largest boots on the ground organization next to the US  military 5 6 10/2/2019 4 How The Data Is Used 7 8 This section establishes that every 10 years, every adult in the country must answer a survey. Based on the surveys, Congress must determine how many representatives (at least one required) are to come from each state and how federal resources are to be distributed among the states. It’s In The Constitution Article 1, Section 2 of the U.S. Constitution 7 8 10/2/2019 5 9 Pencils & Potholes 10 •Allocation of dollars back to  states and communities   (Almost $700 Billion  Annually) •Under count =  approximately $2000 per  person on an annual basis,  $20,000 over 10 years •(CDBG) Block Grants 9 10 10/2/2019 6 New Ability to Self Respond Starting March 23, 2020 •Internet •Phone •Paper Form Or traditional in‐person interview 12 The census is confidential and required by Law. Results of the census are reported in Statistical  format only. We do not share personal information with other  government agencies or law enforcement. All census employees swear to a lifetime oath to  protect respondent information. Penalties for wrongful disclosure –Up to 5 years  imprisonment and or a fine of $250,000. Confidentiality Title 13, U.S. Code 11 12 10/2/2019 7 Census Questionnaire 14 13 14 10/2/2019 8 15 Identifying hard-to-count populations Racial and ethnic minorities Lower income Persons who do not speak English  fluently LGBT Undocumented immigrants Children under 5 People experiencing homelessness Tribal members Rural Communities (ROAM) Response Outreach Area Mapper 16 15 16 10/2/2019 9 La Quinta 2010 Undercount 17 22.7% 27.7 % 23.2% Supporting Linguistic Diversity Available in Spanish Enumerator Instruments (hand‐held) Paper questionnaire and other mailings Field enumeration materials Internet option and Census Questionnaire Assistance (CQAs)  will be  available in 12 non‐English languages Spanish, Chinese (simplified), Vietnamese, Korean, Russian,  Arabic, Tagalog, Polish, French, Haitian Creole, Portuguese,  Japanese Items available in 59 non‐English languages Language glossary Language identification card 18 17 18 10/2/2019 10 How Do I Become a Partner 19 Include information about the 2020  Census in e‐mails, correspondence, or  a web banner. Provide a link to the 2020 Census on  your Web site. Launch social media campaigns or host  Twitter chats or Facebook Live events  on 2020 Census job opportunities and  the 2020 Census to educate your  customers, employees, and members  of your org. Invite a Census Bureau speaker to your  organization or event. Submit online letters to the editor, op‐ eds, and commentary on why  participating in the Census is so  important to you and all. Provide free online advertising  opportunities to promote the 2020  Census and job openings. Launch text message campaigns to  promote the 2020 Census and related  job opportunities. Actively monitor, fact check, and  correct misinformation on social  networks about the 2020 Census. Post and distribute 2020 Census  materials on privacy and  confidentiality to employees,  constituents, and customers, both in  hard copy and through online  channels. Open your offices for Census  Workshops and hold one yourself. Complete Count Committees Background and Structure 20 Schedule CCC Training Today 19 20 10/2/2019 11 21 KEY DATES 201720172017 2018 2019 2020 2021 Los Angeles Regional Census Center The Census Center is located in downtown Los Angeles   LARCC covers 7 states:  CA, NV, ID, OR, WA, Alaska &  Hawaii 22 21 22 10/2/2019 12 23 WE’RE HIRING JOIN THE 2020 CENSUS TEAM Apply Online @  2020census.gov/jobs Recruiting Information Management  Positions Application Portal: www.usajobs.gov Recruiting Information ‐ Office and Field Jobs 1‐855‐JOB‐2020 (Recruiting Hotline) Contact Information Doug Hassett Partnership Specialist, Los Angeles Region Territory:  Riverside County Douglas.d.hassett@2020census.gov 760‐693‐2491 24 23 24 10/2/2019 13 City Council Meeting October 1, 2019 B1 – Community Services Grant Requests 2019-20 25 26 10/2/2019 14 Community Services Grants •Budget is $60,000 (3 rounds) •Recommend $21,000 for 8 organizations •$39,000 would remain for next 2 grant rounds Applicant Requested Committee Recommendation Chuck Jones Center for Creativity $5,000 $2,000 Coachella Valley Volunteers in Medicine $5,000 $5,000 Desert Sands Educational Foundation $5,000 $2,500 Elder Love USA, Inc. $3,000 $2,000 FIND Food Bank $5,000 $3,000 27 28 10/2/2019 15 Applicant Requested Committee Recommendation Habitat for Humanity of the Coachella Valley $5,000 $0 Osher Lifelong Learning Institute $5,000 $0 Pegasus Therapeutic Riding $5,000 $2,500 Southland Events – Desert Triathlon $5,000 $2,500 YMCA of the Desert $5,000 $1,500 29 30 10/2/2019 16 City Council Meeting October 1, 2019 B2 - Public Works/Engineering Department Purpose Create a Public Works/Engineering Department to: •Enhance citywide maintenance •Streamline City projects 31 32 10/2/2019 17 Public Works/Engineering Department Public Works Director/City Engineer TRAFFIC DIVISION Traffic Operations Analyst CIP DIVISION Construction Manager/Inspection Supervisor ADMINISTRATIVE DIVISION Management Analyst ENGINEER DEVELOPMENT DIVISION Associate Engineer FACILITIES DIVISION Facilities Deputy Director Reclassified Position Amended Position Cost Summary Position Cost Reclassify City Engineer to Public Works Director/City Engineer $8,600 Amend Facilities Director Position to Facilities Deputy Director ($36,700) Savings $(28,100) 33 34 10/2/2019 18 City Council Meeting October 1, 2019 S1 – Annual Development Agreements Review 35 36 10/2/2019 19 Active Development Agreements •Village Park Animal Hospital •Legacy Villas •Signature •SilverRock •Centre Pointe Legacy Villas •280-unit residential resort on 44.61 acres •Centex Homes •Construction complete •Mitigation fees being collected 37 38 10/2/2019 20 Signature (Edenrock) •264 condo/townhome units on 41.95 acres •Crowne Pointe Partners, LLC •Mitigation fees collected SilverRock •Mass grading  anticipated  completion by  November 2019 •Tentative Tract Map  for Montage  Residences submitted •Building plans on‐ track for October  submittal 39 40 10/2/2019 21 Centre Pointe •134 guest room hotel •132 condo/casitas units •40 constructed •Two restaurants •Medical office/surgical facility •132 suite retirement community, 72 suite assisted living, and a 32 bed memory care facility •Park Centre Pointe •“Casitas” HOA subject to annual mitigation fee •Other properties out of compliance with Performance Schedules –Casitas property –Second restaurant property •Ongoing discussions with staff/owners 41 42 10/2/2019 22 City Council Meeting October 1, 2019 S2 – 2019 Development Impact Fee Study Update 43 44 10/2/2019 23 Introduction •6th update since DIF established in 1999 •Complete re-evaluation / re-write •Update removes loan principal/interest assessed for: –Fire Protection –Civic Center –Maintenance Facility Introduction •Transportation impact fees do not include previously approved 22% discount •Quimby Fees evaluated as part of DIF Update •Presented draft DIF to DVBA (9/11/19) and BIA (9/12/19) •NBS: Nicole Kissam and Joe Colgan 45 46 10/2/2019 24 47Impact Fee Study ‐ Presentation to the La Quinta City Council Legal Framework – Part I U.S. Constitution – Supreme Court decisions require  a “Rational Nexus” to justify impact fees Three elements of the Nexus: –Development must create a need for facilities  funded by the fees –Development must receive a benefit from facilities  funded by the fees –Fees must be proportional to impact 48Impact Fee Study ‐ Presentation to the La Quinta City Council Legal Framework – Part II CA Mitigation Fee Act: When Enacting Impact Fees, an  Agency Must Make Findings to: –Identify the Purpose of the Fee –Identify the Use of the Fee –Show a Reasonable Relationship between: •The use of a fee and the type of project on which the  fee is imposed (Benefit) •The need for a facility and the type of project on  which the fee is imposed (Need) •The amount of a fee and the facility cost attributable  to the project paying the fee (Proportionality) 47 48 10/2/2019 25 49Impact Fee Study ‐ Presentation to the La Quinta City Council Facilities Addressed in This Study Parks and Recreation Community and Cultural Centers Library Civic Center Maintenance Facilities Fire Protection Transportation 50Impact Fee Study ‐ Presentation to the La Quinta City Council Existing and Future Development (Ch. 2) Population •2019 Official Population = 42,098 •2019 Full‐Occupancy Population = 53,406 •Buildout Full‐Occupancy Population = 67,408 Commercial and Office •2019 Square Feet = 4,445,000 •Buildout Square Feet = 6,315,000 Lodging •2019 Rooms = 1,130 •Buildout Rooms = 2,490 49 50 10/2/2019 26 51Impact Fee Study ‐ Presentation to the La Quinta City Council Parks and Recreation (Ch. 3) Existing Quimby Act Ordinance (Subdivisions) •Fees in Lieu of Park Land Dedication Determined on a  Case‐by Case Basis Using Estimated Land Value for a  Specific Subdivision •From 2010 to 2017, Land Values Ranged from $217,675 to  $524,434 per Acre. Median Value $252,294 Alternative Approach Proposed in this Study •Standardized In‐Lieu Fees Based on Average Land Cost of  $435,600 per Acre and 3.0 Acres of Park Land per 1,000  Residents •Fee per Unit Depends on Average Population per Unit by  Type of Residential Development (See Table 3.3 in Report) 52Impact Fee Study ‐ Presentation to the La Quinta City Council Parks and Recreation (Cont’d) Park Land Impact Fee (Non‐Subdivision Projects) •Proposed Park Land Impact Fees Based on Average Land  Cost of $435,600 per Acre and Existing Ratio of 1.56 Acres  of Park Land per 1,000 Residents Park Improvement Impact Fee (All Residential Dev.) •Proposed Park Improvement Impact Fees Based on  Average Land Value of $500,000 per Acre and Existing   Ratio of 1.56 Acres per 1,000 Residents •Fee per Unit Depends on Average Population per Unit by  Type of Residential Development •Proposed Fee: Slight Increase for Single‐Family Residential;  Fee Reduction for other Types of Residential Development 51 52 10/2/2019 27 53Impact Fee Study ‐ Presentation to the La Quinta City Council Community & Cultural Centers (Ch. 4) Broader Scope Than Community Center Impact Fee •Encompasses Wellness Center, Museum and Other  Community Center and Cultural Facilities Community and Cultural Centers Impact Fee •Fee Calculation Based on the City’s Current Per‐Capita  Investment in Community and Cultural Facilities •Per Capita Investment Defined As the Relationship Between  Existing Population and City’s Equity in Existing Facilities •Proposed Fee: Broader Scope of Fee Results in a Substantial  Increase in this Impact Fee Compared with the Existing Fee 54Impact Fee Study ‐ Presentation to the La Quinta City Council Library (Ch. 5) Library Impact Fee  •Impact Fee Analysis Assumes Library Will Serve All Existing  and Future Development within the Existing City •Per Capita Investment Defined As the Relationship  Between Buildout Population and City’s Cost for the  Library Building and Materials, Including Nominal Interest  to Date on the RDA Loan •Proposed Fee: Slight Increase for Single‐Family Residential;  Slight Fee Reduction for other Types of Residential  Development 53 54 10/2/2019 28 55Impact Fee Study ‐ Presentation to the La Quinta City Council Civic Center (Ch. 6) Civic Center Impact Fee •Existing Impact Fees Assumed Civic Center Would Serve All  Existing and Future Development within the Existing City •This Study Concludes Civic Center Will Need Expansion to  Serve Future Development in the Existing City •Impact Fee Analysis based on the Relationship Between  Existing Developed Acreage and the Cost of the Existing  Civic Center •Proposed Fee: Change in Approach Results in a Substantial  Increase in the Civic Center Impact Fees 56Impact Fee Study ‐ Presentation to the La Quinta City Council Maintenance Facilities (Ch. 7) Maintenance Facilities Impact Fee •Existing Impact Fees Were Based on the Relationship  Between Existing Demand and the Cost of Existing Facilities •This Study Bases Impact Fees on the Relationship Between  Total Buildout Demand and Existing + Future Facilities •Impact Fee Analysis based on the Relationship Between  Buildout Developed Acreage and the Cost of Existing +  Planned Maintenance Facilities •Proposed Fee: Change in Approach Results in a Substantial  Increase in the Maintenance Facilities Impact Fees 55 56 10/2/2019 29 57Impact Fee Study ‐ Presentation to the La Quinta City Council Fire Protection (Ch. 8) Fire Protection Impact Fee •Existing Impact Fees Were Based on the Relationship  Between Future Demand and Future Facilities (Including  One‐half of the Cost of a New Southwest Fire Station) •This Study Bases Impact Fees on the Relationship Between  Total Buildout Demand and Existing + Future Facilities •Impact Fee Analysis based on the Relationship Between  Buildout Developed Acreage and the Cost of Existing +  Planned Fire Stations •Proposed Fee: Proposed Fee is Slightly Lower for All Types  of Development Except Tourist Commercial/Lodging 58Impact Fee Study ‐ Presentation to the La Quinta City Council Transportation (Ch. 9) Transportation Impact Fee •Two Classes of Transportation Improvements: Capacity‐ Enhancing (for Vehicles) and Non‐Capacity Enhancing  (Pedestrians, Cyclists, Transit, Etc.) •The Complete Streets Act Requires Cities to Plan Facilities  to Serve All Forms of Transportation •City Share of Costs for Capacity‐Enhancing Improvements  Allocated Only to Future Development •City Share of Costs for Non‐Capacity‐Enhancing Improve‐ ments Allocated to Both Existing and Future Development •Proposed Impact Fee is A Significant Increase from Existing  Fees, But Existing Fees Were Discounted 22% Below Cost 57 58 10/2/2019 30 59Impact Fee Study ‐ Presentation to the La Quinta City Council Reallocation of Costs Costs Allocated to Public Facilities and Parks Are  Reallocated to Private Development for: •Maintenance Facilities •Fire Protection •Transportation Reasons for Reallocation •City Cannot Apply Impact Fees to Public Facilities or Parks •Costs Are Reallocated to Private Development That Creates  the Need for Public Facilities and Parks •Reallocation Increases Impact Fees by 1.4% to 5.5% 60Impact Fee Study ‐ Presentation to the La Quinta City Council Proposed and Existing Impact Fees Table S.1: Summary of Impact Fees Calculated in This Study  Ch.3 Ch.4 Ch.5 Ch.6 Ch.7 Ch.8 Ch.9 Development Dev Park Comm/ Civic Maint 2 Trans‐ Grand Type Unit 1 Imprvmts Cultural Library Center Facilities Fire portation Total Residential ‐ Single Family Detached DU 2,106$   956$      397$      1,230$   313$      369$      4,009$     9,380$       Residential ‐ Single Family Attached DU 1,794$   814$      338$      1,115$   247$      335$      3,076$     7,718$       Residential ‐ Multi‐Family/Other DU 1,716$   779$      323$      628$      198$      188$      2,281$     6,114$       Office/Medical KSF 522$      374$      151$      6,542$     7,589$       General Commercial KSF 522$      461$      151$      8,057$     9,191$       Tourist Commercial/Lodging Room 698$      106$      201$      1,859$     2,865$       Golf Course Acre 251$      53$         72$         930$         1,306$       Table S.2 Summary of Existing Impact Fees  Development Dev Park Comm/ Civic Maint 2 Transpor‐ Grand Type Unit 1 Imprvmts Cultural Library Center Facilities Fire tation 3 Total Residential ‐ Single Family Detached DU 2,048$   129$      344$      942$      156$      433$      2,842$     6,894$       Residential ‐ Single Family Attached DU 2,048$   129$      344$      796$      156$      366$      2,842$     6,681$       Residential ‐ Multi‐Family/Other DU 2,048$   129$      344$      447$      111$      206$      1,745$     5,030$       Office/Medical KSF 373$      190$      171$      4,645$     5,379$       General Commercial KSF 373$      232$      172$      5,679$     6,456$       Tourist Commercial/Lodging Room 363$      65$         167$      1,590$     2,185$       Golf Course Acre 179$      27$         82$         669$         957$           59 60 10/2/2019 31 61Impact Fee Study ‐ Presentation to the La Quinta City Council Difference Btw Existing & Proposed Fees Table S.3 Difference Between Existing and Proposed Impact Fees Development Dev Park Comm/ Civic Maint 2 Transpor‐ Grand Type Unit 1 Imprvmts Cultural Library Center Facilities Fire tation 3 Total Residential ‐ Single Family Detached DU 58$         827$      53$         288$      157$      (64)$       1,167$     2,486$       Residential ‐ Single Family Attached DU (254)$     685$      (6)$         319$      91$         (31)$       234$         1,037$       Residential ‐ Multi‐Family/Other DU (332)$     650$      (21)$       181$      87$         (18)$       536$         1,084$       Office/Medical KSF 149$      184$      (20)$       1,897$     2,210$       General Commercial KSF 149$      229$      (21)$       2,378$     2,735$       Tourist Commercial/Lodging Room 335$      41$         34$         269$         680$           Golf Course Acre 72$         26$         (10)$       261$         349$           Transportation Discussion •Previous DIF includes 22% transportation fee discount Transportation DIF DEVELOPMENT TYPE PROPOSED 22% DISCOUNT ADJUSTED FEE EXISTING FEE DIFFERENCE PERCENT Residential - Single Family Detached 4,009.00$ 881.98$ 3,127.02$ 2,842.00$ 285.02$ 9.11% Residential - Single Family Attached 3,076.00$ 676.72$ 2,399.28$ 2,842.00$ (442.72)$ -18.45% Residential - Multi-Family/Other 2,281.00$ 501.82$ 1,779.18$ 1,745.00$ 34.18$ 1.92% Office/Medical 6,542.00$ 1,439.24$ 5,102.76$ 4,645.00$ 457.76$ 8.97% General Commercial 8,057.00$ 1,772.54$ 6,284.46$ 5,769.00$ 515.46$ 8.20% Tourist Commercial 1,859.00$ 408.98$ 1,450.02$ 1,590.00$ (139.98)$ -9.65% Golf Course 930.00$ 204.60$ 725.40$ 669.00$ 56.40$ 7.78% Summary of Impact Fees Calculated W/Transportation Discount Ch.3 Ch.4 Ch.5 Ch.6 Ch.7 Ch.8 Ch.9 Development Dev Park Comm/ Civic Maint 2 Trans‐ Grand Type Unit 1 Imprvmts Cultural Library Center Facilities Fire portation Total Residential ‐ Single Family Detached DU $2,106 $956 $397 1,230$      $313 $369 $3,127 $8,498 Residential ‐ Single Family Attached DU $1,794 $814 $338 1,115$      $247 $335 $2,399 $7,042 Residential ‐ Multi‐Family/Other DU $1,716 $779 $323 628$          $198 $188 $1,779 $5,612 Office/Medical KSF 522$          $374 $151 $5,103 $6,150 General Commercial KSF 522$          $461 $151 $6,284 $7,418 Tourist Commercial/Lodging Room 698$          $106 $201 $1,450 $2,456 Golf Course Acre 251$          $53 $72 $725 $1,102 61 62 10/2/2019 32 Comparison with/without Transportation Discount OVERALL SUMMARY ‐ W/O TRANSPORTATION DISCOUNT Development Dev Proposed Current Increase Percent Type Unit Fees Fees Amount Change Residential - Single Family Detache DU 9,380$ 6,894$ 2,486$ 27% Residential - Single Family Attache DU 7,719$ 6,681$ 1,038$ 13% Residential - Multi-Family/Other DU 6,114$ 5,030$ 1,084$ 18% Office/Medical KSF 7,589$ 5,379$ 2,210$ 29% General Commercial KSF 9,190$ 6,456$ 2,734$ 30% Tourist Commercial/Lodging Room 2,865$ 2,185$ 680$ 24% Golf Course Acre 1,306$ 957$ 349$ 27% OVERALL SUMMARY ‐ W/TRANSPORTATION DISCOUNT Development Dev Proposed Current Increase  Percent Type Unit  Fees Fees Amount Change Residential ‐ Single Family Detached DU $8,498 $6,894 $1,604 19% Residential ‐ Single Family Attached DU $7,042 $6,681 $361 5% Residential ‐ Multi‐Family/Other DU $5,612 $5,030 $582 10% Office/Medical KSF $6,150 $5,379 $771 13% General Commercial KSF $7,418 $6,456 $962 13% Tourist Commercial/Lodging Room $2,456 $2,185 $271 11% Golf Course Acre $1,102 $957 $145 13% Fee Comparison 63 64 10/2/2019 33 Fee Comparison with 22% Transportation Discount Questions? 65 66 10/2/2019 34 67