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2015 06 02 CCCity Council agendas and staff reports are now available on the City s web page: .la-gWnta. org CITY COUNCIL AGENDA CITY HALL COUNCIL CHAMBERS 78-495 Calle Tampico, La Quinta REGULAR MEETING ON TUESDAY, JUNE 2, 2015 3:00 P.M. CLOSED SESSION 1 4:00 P.M. OPEN SESSION CALL TO ORDER ROLL CALL: Councilmembers: Franklin, Osborne, Pena, Radi, Mayor Evans PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA At this time, members of the public may address the City Council on any matter not listed on the agenda. 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 shot[ be taken on any item not appearing on the agenda unless it is an emergency item authorized by GC 54954.2(b). CLOSED SESSION 1. CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54956.8 FOR PROPERTY LOCATED SOUTH OF AVENUE 52 AND WEST OF JEFFERSON STREET (APNS: 776-150-025, 776-150-022, 777-490-011, 777-490-008, 777-490-017, AND 777-490-005). CITY NEGOTIATOR: FRANK J. SPEVACEK, CITY MANAGER NEGOTIATING PARTY: CHRISTIAN TITLE/ART CENTER TRUST UNDER CONSIDERATION: PRICE AND TERMS OF PAYMENT 2. PUBLIC EMPLOYEE PERFORMANCE EVALUATION, PURSUANT TO GOVERNMENT CODE SECTION 54957, COUNCIL APPOINTED POSITION - CITY ATTORNEY 3. PUBLIC EMPLOYEE PERFORMANCE EVALUATION, PURSUANT TO GOVERNMENT CODE SECTION 54957, COUNCIL APPOINTED POSITION - CITY MANAGER RECESS TO CLOSED SESSION CITY COUNCIL AGENDA 1 JUNE 2, 2015 RECONVENE AT 4:00 P.M. 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). CONFIRMATION OF AGENDA ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS - NONE CONSENT CALENDAR NOTE: Consent Calendar items are routine in nature and can be approved by one motion. PAGE 1. APPROVE MINUTES OF MAY 19, 2015 7 2. APPROVE DEMAND REGISTERS DATED MAY 15 AND MAY 22, 2015 15 3. SECOND READING AND ADOPTION OF ORDINANCE NO. 525 31 CHANGING ZONING DESIGNATION FROM MEDIUM HIGH TO LOW DENSITY RESIDENTIAL FOR PROPERTY LOCATED AT THE NORTHWEST CORNER OF JEFFERSON STREET AND AVENUE 52 4. APPROVE A PROFESSIONAL SERVICES AGREEMENT WITH BENGAL 37 ENGINEERING TO PROVIDE PROFESSIONAL ENGINEERING SERVICES FOR DUNE PALMS ROAD WIDENING PROJECT 5. APPROVE SPECIFICATIONS AND ENGINEER'S ESTIMATE AND 83 ADVERTISE FOR BIDS FOR FISCAL YEAR 2015/2016 SLURRY SEAL PROGRAM 6. APPROVE PROFESSIONAL SERVICES AGREEMENT WITH PSOMAS FOR 87 CONSTRUCTION INSPECTION SERVICES 7. APPROVE INVESTMENT ADVISORY BOARD WORK PLAN FOR FISCAL 117 YEAR 2015/2016 8. APPROVE PROFESSIONAL SERVICES AGREEMENT WITH TRAFFEX 119 ENGINEERS, INC. FOR CONTRACT TRAFFIC ENGINEER SERVICES CITY COUNCIL AGENDA 2 JUNE 2, 2015 6 PAGE 9. APPROVE SPECIFICATIONS AND ENGINEER'S ESTIMATE AND 143 ADVERTISE BIDS FOR THE INTERIOR PHASE OF THE LIBRARY 10TH ANNIVERSARY IMPROVEMENTS PROJECT 10. ADOPT A RESOLUTION TO AMEND AND RESTATE THE RULES OF 147 PROCEDURE FOR COUNCIL MEETINGS AND RELATED FUNCTIONS AND ACTIVITIES [RESOLUTION 2015-0231 11. ADOPT RESOLUTION FOR FISCAL YEAR 2015/2016 INVESTMENT 171 POLICY [RESOLUTION 2015-0241 12. APPROVE PLANS, SPECIFICATIONS AND ENGINEER'S ESTIMATE AND 259 ADVERTISE FOR BIDS FOR PHASE I AND PHASE II AMERICANS WITH DISABILITIES ACT SPORTS COMPLEX AND YMCA FACILITY IMPROVEMENTS PROJECT 13. APPROVE PROFESSIONAL SERVICES AGREEMENT WITH NAI 263 CONSULTING, INC. FOR PROJECT MANAGEMENT AND CONTRACT ADMINISTRATIVE SUPPORT SERVICES 14. APPROVE MEMORANDUM OF UNDERSTANDING WITH EAST VALLEY 299 COALITION FOR REGIONAL ECONOMIC DEVELOPMENT AND FIRST YEAR BUDGET BUSINESS SESSION 1. INTERVIEWS AND APPOINTMENTS OF RESIDENTS TO VARIOUS CITY 317 BOARDS AND COMMISSIONS STUDY SESSION 1. MARKETING STRATEGIES FOR FISCAL YEAR 2015/2016 321 2. DISCUSS INTERIM OFF-STREET PARKING STANDARDS FOR THE LA 333 QUINTA VILLAGE 3. FISCAL YEAR BUDGET 2015/2016 339 REPORTS AND INFORMATIONAL ITEMS 1. CVAG COACHELLA VALLEY CONSERVATION COMMISSION (Evans) 2. CVAG ENERGY & ENVIRONMENTAL RESOURCES COMMITTEE (Evans) 3. CVAG EXECUTIVE COMMITTEE (Evans) CITY COUNCIL AGENDA 3 JUNE 2, 2015 3 PAGE 4. GREATER PALM SPRINGS CONVENTION & VISITORS BUREAU (Evans) 5. LEAGUE OF CALIFORNIA CITIES DELEGATE (Evans) 6. COACHELLA VALLEY WATER DISTRICT POLICY COMMITTEE (Evans) 7. SO. CALIFORNIA ASSOCIATION OF GOVERNMENTS (Evans) 8. CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (Franklin) 9. COACHELLA VALLEY MOUNTAINS CONSERVANCY (Franklin) 10. JACQUELINE COCHRAN REGIONAL AIRPORT AUTHORITY (Franklin) 11. SUNLINE TRANSIT AGENCY (Franklin) 12. CHAMBER OF COMMERCE INFO EXCHANGE COMMITTEE (Osborne) 13. CVAG PUBLIC SAFETY COMMITTEE (Osborne) 14. CVAG VALLEY -WIDE HOMELESSNESS COMMITTEE (Osborne) 15. DESERT SANDS SCHOOL DISTRICT COMMITTEE (Osborne & Franklin) 16. IID ENERGY CONSUMERS' ADVISORY COMMITTEE (Osborne) 17. ANIMAL CAMPUS COMMISSION (Pena) 18. COACHELLA VALLEY ECONOMIC PARTNERSHIP (Radi) 19. RIVERSIDE COUNTY TRANSPORTATION COMMISSION (RCTC) (Radi) 20. CVAG TRANSPORTATION COMMITTEE (Radi) 21. COMMUNITY SERVICES COMMISSION MINUTES - APRIL 13, 2015 343 22. PLANNING COMMISSION MINUTES DATED APRIL 14, 2015 347 23. PALM SPRINGS AIRPORT COMMISSION 355 DEPARTMENTAL REPORTS 1. CITY MANAGER 2. CITY ATTORNEY 3. CITY CLERK 4. COMMUNITY SERVICES - LIBRARY AND MUSEUM QUARTERLY REPORT 357 MAYOR'S AND COUNCIL MEMBER'S ITEMS PUBLIC HEARINGS - 5:00 P.M. For all Public Hearings on the agenda, a completed "Request to Speak" form must be filed with the City Clerk prior to consideration of that item. A person may submit written comments to City Council before a public hearing or appear in support or opposition to the approval of a project(s). If you challenge a project(s) in court, you may be limited to raising only those issues you or someone else raised at the public hearing or in written correspondence delivered to the City at, or prior to the public hearing. 1. ADOPT RESOLUTION CONFIRMING DIAGRAM AND ASSESSMENT FOR 367 LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT 89-1, FISCAL YEAR 2015/2016 [RESOLUTION 2015-0251 CITY COUNCIL AGENDA JUNE 2, 2015 4 4 2. ADOPT RESOLUTION APPROVING FISCAL YEAR 2015/2016 THROUGH 395 2019/2020 CAPITAL IMPROVEMENT PROGRAM [RESOLUTION 2015-0261 ADJOURNMENT The next regular meeting of the City Council will be held on June 16, 2015 commencing with closed session at 3:00 p.m. and open session at 4:00 p.m. at the City Hall Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, Susan Maysels, City Clerk, of the City of La Quinta, do hereby declare that the foregoing Agenda for the La Quinta City Council meeting was posted on the City's website, near the entrance to the Council Chambers at 78-495 Calle Tampico, and the bulletin boards at the Stater Brothers Supermarket at 78-630 Highway 111, and the La Quinta Cove Post Office at 51-321 Avenida Bermudas, on May 29, 2015 DATED: May 29, 2015 SUSAN MAYSELS, City Clerk City of La Quinta, California Public Notices • The La Quints City Council Chamber is handicapped accessible. If special equipment is needed for the hearing impaired, please call the City Clerk's office at 777-7103, twenty- four (24) hours in advance of the meeting and accommodations will be made. • If special electronic equipment is needed to make presentations to the City Council, arrangements should be made in advance by contacting the City Clerk's office at 777- 7103. A one (1) week notice is required. • If background material is to be presented to the Councilmembers during a City Council meeting, please be advised that eight (8) copies of all documents, exhibits, etc., must be supplied to the City Clerk for distribution. It is requested that this take place prior to the beginning of the meeting. • Any writings or documents provided to a majority of the City Council regarding any item(s) on this agenda will be made available for public inspection at the Community Development counter at City Hall Located at 78-495 Calle Tampico, La Quinta, California, 92253, during normal business hours. CITY COUNCIL AGENDA JUNE 2, 2015 CONSENT: 1 CITY COUNCIL MINUTES TUESDAY, MAY 19, 2015 A regular meeting of the La Quinta City Council was called to order at 2:30 p.m. by Mayor Evans. PRESENT: Councilmembers Franklin, Osborne, Pena, Radi, Mayor Evans ABSENT: None PUBLIC COMMENT ON MATTERS NOT ON AGENDA - None CLOSED SESSION 1. PURSUANT TO GOVERNMENT CODE SECTIONS 54954.5(E) AND 54957, CLOSED SESSION CONSIDERATION OF THE FOLLOWING: PUBLIC EMPLOYEE PERFORMANCE EVALUATION TITLE: ASSISTANT CHIEF OF POLICE 2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54956.8 FOR PROPERTY LOCATED AT: SILVERROCK RESORT (APNS 770-200-026; 776-150-021; 776-150-023; 770- 060-056; 770-060-057; 770-060-058; 770-060-059; 770-060-061; 770-060- 062; 777-490-004; 777-490-006; 777-490-007; 777-490-012 AND 777-490- 014); AGENCY NEGOTIATOR: FRANK J. SPEVACEK, CITY MANAGER NEGOTIATING PARTY: SILVERROCK DEVELOPMENT, LLC. UNDER NEGOTIATION: PRICE AND TERMS OF PAYMENT FOR ACQUISITION AND/OR DISPOSITION OF THE PROPERTY IDENTIFIED Councilmember Osborne announced that he will be recusing himself and leaving the Closed Session room during the discussion and vote on Item No. 1 due to his firm's business relationship with Assistant Police Chief Walton. [�i111►�L�'1�:7x������jt�I������������'[i1►�I_�i•��•1au� MAYOR EVANS RECONVENED THE CITY COUNCIL MEETING AT 4:07 P.M. WITH ALL MEMBERS PRESENT. CITY ATTORNEY IHRKE ANNOUNCED THAT NO ACTIONS WERE TAKEN IN CLOSED SESSION THAT REQUIRES REPORTING PURSUANT TO GOVERNMENT CODE SECTION 54957.1 (BROWN ACT). Mayor Evans led the audience in the pledge of allegiance. CITY COUNCIL MINUTES 1 MAY 19, 2015 PUBLIC COMMENT ON MATTERS NOT ON AGENDA PUBLIC SPEAKER: Robert Cox, La Quinta - Mr. Cox, La Quinta's representative on the Coachella Valley Mosquito and Vector Control Board for 61/2 years, announced his resignation and expressed his pleasure in serving the City. Mr. Cox offered to remain on the Board until a new representative was appointed. Mayor Evans thanked Mr. Cox for his years of excellent service and accepted his offer to stay as La Quinta's representative as long as possible. CONFIRMATION OF AGENDA - Confirmed ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS - None CONSENT CALENDAR 1. APPROVE MINUTES OF MAY 5, 2015 2. APPROVE DEMAND REGISTERS DATED MAY 1, 4 AND 8, 2015 3. DENY CLAIM FOR DAMAGES FILED BY JASON SULLIVAN, DATE OF LOSS OCTOBER 15, 2014 4. DENY CLAIM FOR FLOOD DAMAGES FILED BY ROGER VAUGHN, DATE OF LOSS SEPTEMBER 8, 2014 5. DENY CLAIM FOR DAMAGES FILED BY ANN AND HARRY SCHAFFNER, DATE OF LOSS SEPTEMBER 8, 2014 6. DENY CLAIM FOR DAMAGES FILED BY EMIL PACELLI; DATE OF LOSS - OCTOBER 15, 2014 7. APPROVE PLANS, SPECIFICATIONS, AND ENGINEER'S ESTIMATE, AND SOLICIT BIDS FOR THE WASHINGTON STREET PAVEMENT REHABILITATION IMPROVEMENTS 8. ADOPT RESOLUTION GRANTING CONDITIONAL APPROVAL OF FINAL MAP AND SUBDIVISION IMPROVEMENT AGREEMENT ASSOCIATED WITH THE LA QUINTA SQUARE DEVELOPMENT (PARCEL MAP NO. 36791) [RESOLUTION 2015- 0171 9. REJECT ALL BIDS FOR THE LA QUINTA LIBRARY LIGHT -EMITTING DIODE LIGHTING CONVERSION PROJECT 10. RECEIVE AND FILE TREASURER'S REPORTS DATED FEBRUARY 28, 2015 CITY COUNCIL MINUTES 2 MAY 19, 2015 a 11. RECEIVE AND FILE TREASURER'S REPORTS DATED MARCH 31, 2015 MOTION - A motion was made and seconded by Councilmembers Franklin/Radi to approve the Consent Calendar as recommended with Item No. 8 adopting Resolution No. 2015-017. Motion passed unanimously. BUSINESS SESSION 1. APPROVE LEGISLATIVE POLICY GUIDE UPDATE Chris Escobedo, Assistant to City Manager and Office Assistant Douglass Kinley presented the staff report, which is on file in the City Clerk's Office. Councilmembers concurred that the costs -benefits of hiring a municipal lobbyist should be the subject of a Study Session. MOTION - A motion was made and seconded by Councilmembers Radi/Franklin to approve the Legislative Policy Guide Update. Motion passed unanimously. STUDY SESSION 1. REVIEW OF POLICE SERVICES AND CRIME TRENDS REPORT Chris Escobedo, Assistant to City Manager, and Byron Pipkin of Matrix Consulting Group presented the staff report, which is on file in the City Clerk's Office. Councilmembers discussed the benefits of the community survey and the report; reliability and consistency of incident report data from both the Sheriff's Department and various jurisdictions; improvement to the Knox system for emergency entry into gated communities; property crime rates due to City's affluence; community communication; police approachability; future focus on service and efficiency; time to digest the report; and innovation in managing the City's available funds. Captain Shouse, La Quinta's Police Chief assigned by the Sheriff's Department, reported on the value of the report; importance of understanding where resources are being spent and getting high value for expenditures; need for Sheriff's Department to complete an in-depth analysis of its "reactive" and "proactive" time to verify the methodology and results of the report; use of community survey to improve community outreach; and appreciation of the support and working relationship with La Quinta City Council and staff. Regarding police use of Knox boxes, Captain Shouse said he will work to find a solution and report back. City Manager Spevacek explained that police service review is an ongoing process, and some recommendations will be presented during budget discussions in June. He said that staff will be working with the Sheriff's Department to enhance service now that data is available to use to the benefit of both the Sheriffs Department and residents. CITY COUNCIL MINUTES 3 MAY 19, 2015 0 PUBLIC HEARINGS MAYOR EVANS MOVED THIS SECTION UP ON THE AGENDA TO BE HEARD AS CLOSE TO THE NOTICED TIME OF 5:00 P.M. AS POSSIBLE 1. ADOPT FIVE RESOLUTIONS TO APPROVE 1) MITIGATED NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT AND ASSOCIATED MITIGATION MONITORING PROGRAM FOR ENVIRONMENTAL ASSESSMENT, 2) GENERAL PLAN AMENDMENT, 3) SPECIFIC PLAN AMENDMENT, 4) TENTATIVE TRACT MAP, AND 5) SITE DEVELOPMENT PERMIT; AND INTRODUCE AN ORDINANCE TO CHANGE ZONING DESIGNATION FROM MEDIUM HIGH TO LOW DENSITY RESIDENTIAL TO ALLOW DEVELOPMENT OF 82 SINGLE-FAMILY HOMES ON 20.8 ACRES OF LAND LOCATED AT THE NORTHWEST CORNER OF JEFFERSON STREET AND AVENUE 52 [RESOLUTIONS 2015-018, 2015-019, 2015-020, 2015-021 AND 2015-0221 Planning Director Johnson presented the staff report, which is on file in the City Clerk's Office. Councilmembers discussed eave projection and project water efficiency. MAYOR EVANS DECLARED THE PUBLIC HEARING OPEN AT 5:24 P.M. DEVELOPER: Monica Ulteras, Beazer Homes Holdings - Ms. Ulteras responded to Councilmember concerns about eaves; turf placement; irrigation systems; landscaping materials; tree species; side and rear yard landscaping options; and clubhouse amenities. MAYOR EVANS DECLARED THE PUBLIC HEARING CLOSED AT 5:43 P.M. City Attorney Ihrke recommended that the following additional Condition of Approval be added to Site Development Permit 2014-1003 and to Tentative Tract Map 36744: "The applicant shall comply with all requirements, directives, and orders established pursuant to Executive Order B-29-15 and all regulations adopted to implement that executive order by any state, regional, or local agency or department, including but not limited to regulations adopted by the State Water Resources Control Board, California Department of Water Resources, California Energy Commission, and Coachella Valley Water District (or other distributor of a public water supply), in furtherance of the mandate to prevent the waste and unreasonable use of potable water. If another executive order or future regulations are issued and adopted in furtherance of a mandate to prevent the waste and unreasonable use of water, the applicant shall comply with all requirements, directives, and orders established thereunder. If a requirement, directive, or order established pursuant to Executive Order B-29-15 (or any future executive order) and regulations adopted pursuant thereto is more restrictive than a requirement under the La Quinta Municipal Code applicable by these conditions of approval, then the applicant shall comply with the most restrictive requirement." CITY COUNCIL MINUTES 4 MAY 19, 2015 `u] The Condition of Approval addition was verbally accepted (off mic) by the Developer's representative Monica Ulteras of Beazer Homes Holdings. MOTION - A motion was made and seconded by Councilmembers Pena/Radi to adopt Resolution No. 2015-018 entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING A MITIGATED NEGATIVE DECLARATION FOR ENVIRONMENTAL ASSESSMENT NO. 2014-638, FOR BEAZER HOMES HOLDINGS (WATERMARK) CASE NO.: ENVIRONMENTAL ASSESSMENT 2014-638, APPLICANT: BEAZER HOMES HOLDINGS Motion passed unanimously. MOTION - A motion was made and seconded by Councilmembers Pena/Radi to adopt Resolution No. 2015-019 entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING GENERAL PLAN AMENDMENT 2014-127, A CHANGE IN LAND USE DESIGNATION FOR THE NORTHWEST CORNER OF JEFFERSON STREET AND AVENUE 52 CASE: GENERAL PLAN AMENDMENT 2014-127, APPLICANT: BEAZER HOMES HOLDINGS, Motion passed unanimously. MOTION - A motion was made and seconded by Councilmembers Pena/Radi to take up Ordinance No. 525 by title and number only and waive further reading. Motion passed unanimously. City Clerk Maysels read the following title of Ordinance No. 525 into the record: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING ZONE CHANGE 2014-145, CHANGING THE ZONING DESIGNATION FOR ASSESSOR'S PARCEL NUMBERS 776-220-012, 776-220-013, 776-220-014 FROM MEDIUM HIGH DENSITY RESIDENTIAL TO LOW DENSITY RESIDENTIAL, CASE: ZONE CHANGE 2014-145, APPLICANT: BEAZER HOMES HOLDINGS MOTION - A motion was made and seconded by Councilmembers Pena/Radi to introduce Ordinance No. 525 on first reading. Motion passed unanimously. MOTION - A motion was made and seconded by Councilmembers Pena/Radi to adopt Resolution No. 2015-020 entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING SPECIFIC PLAN 2003-069, AMENDMENT 1, FOR THE BEAZER HOMES WATERMARK SPECIFIC PLAN CASE NO.: SPECIFIC PLAN 2003-069, AMENDMENT NO. 1, APPLICANT: BEAZER HOMES HOLDINGS, Motion passed unanimously. MOTION - A motion was made and seconded by Councilmembers Pena/Radi to adopt Resolution No. 2015-021 with the added condition of approval noted above: CITY COUNCIL MINUTES 5 MAY 19, 2015 is A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING TENTATIVE TRACT MAP 36762 LOCATED AT THE NORTHWEST CORNER OF JEFFERSON STREET AND AVENUE 52 CASE NO.: TENTATIVE TRACT MAP 36762, APPLICANT: BEAZER HOMES HOLDINGS, Motion passed unanimously. MOTION - A motion was made and seconded by Councilmembers Pena/Radi to adopt RESOLUTION No. 2015-022 with the added condition of approval noted above: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING SITE DEVELOPMENT PERMIT 2014-942, ALLOWING THE DEVELOPMENT OF 82 HOMES ON 20.8 ACRES LOCATED AT THE NORTHWEST CORNER OF JEFFERSON STREET AND AVENUE 52, CASE NO.: SITE DEVELOPMENT PERMIT 2014-942 APPLICANT: BEAZER HOMES HOLDINGS Motion passed unanimously. 2. FISCAL YEAR 2015/2016 PROPOSED BUDGET Finance Director Conrad presented the staff report, which is on file in the City Clerk's Office, including the corrected page handed out by the Finance Director. Councilmembers discussed police and fire increases; CalPERS projections; supplemental budget requests; projected budget balance; and marketing expenditures. Sheriff Captain Shouse explained the factors driving up the Sheriffs Department costs. Riverside County Division Chief Stowells provided information on the Fire Department's budget and factors that may affect the budget over the next few years. 3. LOGO UPDATE / BRAND REFRESHMENT Marketing and Events Supervisor Larson presented the staff report, which is on file in the City Clerk's Office. Councilmembers discussed the need for more space between the words LA and Quinta; support for adding the word California to distinguish the city from the hotel chain; the absence of the tagline gem of the desert; size of the gem graphic; getting input from local students and Graphtec; support for the font but font thickness and tail of the letter Q questioned; need for a policy on use of the logo; support for the color palette; options regarding the seal design; blue mountains within the old logo; the timing and cost of changing city monument and entry signs; the need to unveil the new logo during an event to expose it to a large audience; and a consensus to see a few concepts that are variations on the logo presented. City Manager Spevacek suggested that staff begin formatting reports and letterhead using the new font. Council concurred. CITY COUNCIL MINUTES 6 MAY 19, 2015 `v, REPORTS AND INFORMATIONAL ITEMS La Quinta's representative for 2015, Mayor Evans reported on her participation in the following organizations' meetings: • CVAG COACHELLA VALLEY CONSERVATION COMMISSION • CVAG ENERGY & ENVIRONMENTAL RESOURCES COMMITTEE • GREATER PALM SPRINGS CONVENTION & VISITORS BUREAU • LEAGUE OF CALIFORNIA CITIES DELEGATE • SO. CALIFORNIA ASSOCIATION OF GOVERNMENTS La Quinta's representative for 2015, Councilmember Franklin reported on her participation in the following organization's meeting: • COACHELLA VALLEY MOUNTAINS CONSERVANCY La Quinta's representative for 2015, Councilmember Osborne reported on his participation in the following organizations' meetings: • CVAG PUBLIC SAFETY COMMITTEE W 1109:14�,00103 1TO001•1•]40E-111:11[41ri1018181111aa La Quinta's representative for 2015, Councilmember Pena reported on his participation in the following organization's meeting: • ANIMAL CAMPUS COMMISSION La Quinta's representative for 2015, Councilmember Radi reported on his participation in the following organizations' meetings: • CHAMBER OF COMMERCE INFO EXCHANGE COMMITTEE • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DEPARTMENT REPORTS Department Reports were received and filed. Copies are available in the City Clerk's Office. City Clerk Maysels reported on applications received to date for the new Advisory Committee. Community Development Director Johnson reported on the progress of the outreach effort to receive community input on Village development. MAYOR'S AND COUNCIL MEMBER'S ITEMS Mayor Evans and Councilmember Osborne requested a list of the grants the City has given to La Quinta schools. CITY COUNCIL MINUTES 7 MAY 19, 2015 13 Mayor Evans reported that a partnership between the Greater Palm Springs Convention and Visitors Bureau and the La Quinta Arts Foundation has resulted in the creation of a new non-profit entity called the California Desert Arts Council (CDAC), which will generate new platforms for arts and culture that tie into tourism. Councilmember Franklin reported on the successful 2x2 meeting with the school district at the Wellness Center. ADJOURNMENT There being no further business, a motion was made and seconded by Councilmembers Franklin/Radi to adjourn at 7:51 p.m. Motion passed unanimously. Respectfully submitted, SUSAN MAYSELS, City Clerk City of La Quinta, California CITY COUNCIL MINUTES 8 MAY 19, 2015 14 a OF CITY SA / HA / FA MEETING DATE: June 2, 2015 AGENDA CATEGORY: ITEM TITLE: APPROVE DEMAND REGISTERS DATED BUSINESS SESSION: MAY 15 AND 22,2015 CONSENT CALENDAR: 2 STUDY SESSION: PUBLIC HEARING: RECOMMENDED ACTION: Approve Demand Registers dated May 15 and 22, 2015. EXECUTIVE SUMMARY: None. FISCAL IMPACT: Demand of Cash: -- City $ 876,954.82 -- Successor Agency of RDA $ 4,480.00 -- Housing Authority $ 645.00 -- Housing Authority Commission $ 0.00 S 882,079.82 BACKGROUND/ANALYSIS: Between City Council meetings, routine bills and payroll must be paid in order to avoid late fees/penalties. Attachment 1 provides the detail for the weekly demand registers from May 9 through May 22, 2015. Warrants Issued: 107012 - 107093} 107094 - 107183} Voids} Wire Transfers} Payroll Direct Deposit} Payroll Tax Transfers} $ 214,478.17 $ 305,459.82 $ (0.00) $ 171,688.86 $ 152,103.62 $ 38,349.35 S 882,079.82 `N The most significant expenditures on the demand registers listed above are as follows: Significant Expenditures: Vendor: Account Name: Amount: Purpose: JAS Pacific Various $ 50,492.00 Feb -Apr Building Plan Check Vintage Associates Landscape/Tech $ 42,902.00 Apr -Park Maintenance Dateland Construction Construction $ 38,752.40 Carranza Drainage CVAG TUMF Fees $ 34,911.36 Apr-TUMF Fee Rutan & Tucker Various $ 34,829.88 Mar -Legal Fees Kirkpatrick Landscaping Landscape/Tech $ 33,855.56 May -Landscaping National Sculptors Guild Art Purchase $ 30,000.00 Art Purchase Wire Transfers: Five wire transfers totaled $171,688.86. Of this amount, $120,697.45 was to Landmark for golf course management and $44,789.35 to CalPERS for retirement costs (see Attachment 2 for a full listing). ALTERNATIVES: City Council may approve, partially approve, or reject the register of demands. Report prepared by: Sandra Mancilla, Account Technician Report approved for submission by: Rita Conrad, Finance Director Attachments: 1. Demand Registers 2. Wire Transfers ill ATTACHMENT 1 Demand Register City of La Quinta, CA Packet: APPKT00443 - SHM 5/15/15 N Vendor Name Payment Number Payment Date Description (Payable) Account Number Amount Fund: 101-GENERAL FUND AIR EXCHANGE 107012 05/15/2015 FS#70 YELLOW AIRLINE 101-2002-60670 513.50 ALLIED PRA PALM SPRINGS 107013 05/15/2015 REFUND OVERPAYMENT 101-0000-41600 32.00 ALSCO INC 107014 05/15/2015 UNIFORM RENTAL EOM 4/30 101-7003-60690 88.05 AMERICAN FORENSIC NURSE 107015 05/15/2015 BLOOD ALCOHOL 101-2001-36310 120.00 AMERICAN FORENSIC NURSE 107015 05/15/2015 BLOOD ALCOHOL 101-2001-36310 480.00 AMERICAN FORENSIC NURSE 107015 05/15/2015 BLOOD ALCOHOL 101-2001-36310 280.00 AMERIGAS 107016 05/15/2015 FS#32 PROPANE 101-2002-61100 283.47 AMERIPRIDE SERVICES INC 107017 05/15/2015 JANITORIAL EOW 3/5/15 101-3002-60115 60.30 BECKLEY, LESLIE 107019 05/15/2015 REFUND OVERPAYMENT 101-0000-42300 5.89 BIO-TOX LABORATORIES 107020 05/15/2015 BLOOD ALCOHOL 101-2001-36310 313.40 BIO-TOX LABORATORIES 107020 05/15/2015 BLOOD ALCOHOL 101-2001-36310 1,072.00 BMW MOTORCYCLES OF RIV 107021 05/15/2015 MOTORCYCLE BOOTS -MOOR 101-2001-60175 388.80 BMW MOTORCYCLES OF RIV 107021 05/15/2015 SHIPPING-BOOTS/MOORE 101-2001-60175 17.76 BPS TACTIAL INC-GANG TASK 107022 05/15/2015 VEST COVER-RAMIREZ 101-2001-60175 359.64 CAPITAL ONE COMMERCIAL 107023 05/15/2015 SUPPLIES 101-7001-60420 60.57 CARQUEST 107024 05/15/2015 MATERIAL 101-7003-60431 64.69 CHECKMATE TELEPHONE EX 107026 05/15/2015 ANSWERING SERVICE 101-7006-60104 233.48 CIGNA HEALTH CARE 107027 05/15/2015 MAY -DENTAL INSUR 101-0000-20943 6,768.79 COACHELLA VALLEY CONSER 107029 05/15/2015 APR -MITIGATION FEE 101-0000-20310 17,870.00 COACHELLA VALLEY CONSER 107029 05/15/2015 APR -MITIGATION FEE 101-0000-43631 -178.70 COACHELLA VALLEY WATER 107031 05/15/2015 WATER SERVICE 101-2002-61200 62.61 COACHELLA VALLEY WATER 107031 05/15/2015 WATER SERVICE 101-3005-61207 497.71 COACHELLA VALLEY WATER 107031 05/15/2015 WATER SERVICE 101-3006-61200 107.45 COACHELLA VALLEY WATER 107031 05/15/2015 WATER SERVICE 101-7006-60146 48.30 DESERT CA M 107033 05/15/2015 COUNCIL MEETING 5/5/15 101-3008-60108 925.00 DESERT ELECTRIC SUPPLY 107034 05/15/2015 ELECTRICAL MATERIAL 101-7004-60431 58.35 DESERT ELECTRIC SUPPLY 107034 05/15/2015 ELECTRICAL MATERIAL 101-7004-60431 12.96 DESERT ELECTRIC SUPPLY 107034 05/15/2015 ELECTRICAL MATERIAL 101-7004-60431 8.59 DESERT ELECTRIC SUPPLY 107034 05/15/2015 ELECTRICAL MATERIAL 101-7004-60431 44.52 EISENHOWER MEDICAL CEN 107036 05/15/2015 MEDICAL EXAM-3/31/15 101-2001-60193 900.00 EMPLOYMENT DEVELOPME 107037 05/15/2015 SUI PYMT Q/E 3/31/15 101-1004-50244 6,525.00 FIESTA FORD LINCOLN MERC 107038 05/15/2015 COP VEHICLE R&M 101-2001-71031 2,440.17 FOSTER, BRUCE & SUSAN 107039 05/15/2015 REFUND TOT OVERPAYMENT 101-0000-42300 26.44 GAS COMPANY, THE 107040 05/15/2015 APR-FS#93 GAS 101-2002-61100 69.63 GRAPHTEK INTERACTIVE 107042 05/15/2015 MAY -RETAINER 101-3007-60461 10,000.00 HIGH TECH IRRIGATION INC 107044 05/15/2015 MATERIAL 101-7004-60431 216.00 HINDS, KRISTINE 107045 05/15/2015 REFUND 101-0000-42200 28.00 HOWLETT, STEVE 107046 05/15/2015 REIMB SURFACE PAINT 101-3005-60420 1,412.00 INLAND POWER EQUIPMENT 107048 05/15/2015 MATERIAL/SAW BLADES 101-7003-60431 69.07 IRC INC 107049 05/15/2015 BACKGROUND CHECK 101-1004-60104 69.00 JIMENEZ, LUIS 107050 05/15/2015 REFUND 101-0000-43632 145.00 LA QUINTA FARMS LLC 107051 05/15/2015 MAY-PM10 SERVICES 101-7006-60146 23,750.00 LIGHTSOURCE 107052 05/15/2015 FS#32SUPPLIES 101-2002-60670 1,836.99 LIGHT SOURCE 107052 05/15/2015 FS#93 SUPPLIES 101-2002-60670 346.03 LOCK SHOP INC, THE 107053 05/15/2015 STAFF KEYS 101-3003-60420 129.60 LOCK SHOP INC, THE 107053 05/15/2015 LOCK KEYS 101-7003-60431 7.78 MAXWELL SECURITY SERVIC 107054 05/15/2015 MAY -SECURITY 101-3008-60123 150.00 MOYA, DANIEL 107055 05/15/2015 49260 CAMINO AMARILLO-L 101-6004-60108 600.00 OFFICE TEAM 107056 05/15/2015 TEMP STAFFING WKEND 4/2 101-7002-60125 309.06 OFFICE TEAM 107056 05/15/2015 TEMP STAFFING WKEND 4/2 101-6001-60125 618.12 PACIFIC WEST AIR CONDITIO 107058 05/15/2015 LIBRARY COMPUTER ROOM 101-3004-60667 3,000.00 PACIFIC WEST AIR CONDITIO 107058 05/15/2015 HUMIDIFIER SERVICE 101-3006-60667 1,009.00 PALM SPRINGS DESERT RESO 107059 05/15/2015 RESTAURANT WEEK 101-3007-60450 2,500.00 5/26/2015 3:24:50 PM Page 1 of 5 irl Demand Register Packet: APPKT00443 - SHM 5/15/15 Vendor Name Payment Number Payment Date Description (Payable) Account Nurpber Amount PEARSON, STEVEN 107061 05/15/2015 REFUND ADMIN CITATION 101-0000-42706 50.00 PLANT REPROGRAPHICS SYS 107062 05/15/2015 PARK CONTRACT SPECS 101-3005-60420 105.55 PLUG & PAY TECHNOLOGIES 107063 05/15/2015 APR -CREDIT CARD FEES 101-3003-60122 20.00 PRECAST INNOVATIONS INC 107064 05/15/2015 REFUND OVERPAYMENT 101-0000-42300 5.10 PROPER SOLUTIONS INC 107065 05/15/2015 TEMP STAFFING WKEND 5/1 101-1002-60125 350.00 PROPER SOLUTIONS INC 107065 05/15/2015 TEMP STAFFING WKEND 5/1 101-6001-60125 762.20 PROPER SOLUTIONS INC 107065 05/15/2015 TEMP STAFFING WKEND 5/1 101-7003-60125 323.38 RIVERSIDE COUNTY RECORD 107067 05/15/2015 FEB-RECORDING FEES 101-6004-60108 80.00 RIVERSIDE COUNTY SHERIFF 107068 05/15/2015 CRIME PICS/HUMANA SVC 101-2001-60162 866.24 RIVERSIDE COUNTY SHERIFF 107068 05/15/2015 CRIME PREVENTION PICS 101-2001-60162 81.21 RIVERSIDE COUNTY SHERIFF 107068 05/15/2015 HUMANA CHALLENGE 101-2001-60162 311.31 ROISMAN, RAE 107069 05/15/2015 REFUND OVERPAYMENT 101-0000-41600 19.00 SEBASTIAN, BARBARA 107071 05/15/2015 REFUND OVERPAYMENT 101-0000-41600 6.00 SEVILLA, RAMSES 107072 05/15/2015 REIMB-A/C BELT 101-3008-60667 18.39 SHARK POOLS INC 107073 05/15/2015 MAY-BERMUDA/ESTADO 101-7004-60104 125.00 SHARK POOLS INC 107073 05/15/2015 MAY-ESTADO/DESERT CLB 101-7004-60104 125.00 SHARK POOLS INC 107073 05/15/2015 MAY-LG'S WATER FT 101-7004-60104 275.00 SHARK POOLS INC 107073 05/15/2015 MAY-FONDA/DESERT CLB 101-7004-60104 150.00 SHARK POOLS INC 107073 05/15/2015 MAY-VONS 101-7004-60104 225.00 SHARK POOLS INC 107073 05/15/2015 MAY -HOME DEPOT 101-7004-60104 260.00 SHARK POOLS INC 107073 05/15/2015 NEW PUMP 101-7004-60104 1,208.61 SHINNICK & RYAN LLP 107074 05/15/2015 REFUND 101-0000-22830 100.00 SILVERROCK RESORT 107075 05/15/2015 APR'15 SALES TAX 101-0000-20304 86.00 SILVERROCK RESORT 107075 05/15/2015 APR'15 SALES TAX 101-1002-60420 5.00 SILVERROCK RESORT 107075 05/15/2015 APR'15 SALES TAX 101-2001-60175 32.00 SILVERROCK RESORT 107075 05/15/2015 APR'15 SALES TAX 101-3002-60420 76.00 SILVERROCK RESORT 107075 05/15/2015 APR'15 SALES TAX 101-3003-60149 4.00 SILVERROCK RESORT 107075 05/15/2015 APR'15 SALES TAX 101-3004-80100 8.00 SILVERROCK RESORT 107075 05/15/2015 APR'15 SALES TAX 101-3007-60461 16.00 SILVERROCK RESORT 107075 05/15/2015 APR'15 SALES TAX 101-7003-60431 24.00 SILVERROCK RESORT 107075 05/15/2015 APR'15 SALES TAX 101-7004-60423 43.00 SILVERROCK RESORT 107075 05/15/2015 APR'15 SALES TAX 101-7004-60431 48.00 SMART & FINAL 107076 05/15/2015 OPERATING SUPPLIES 101-3002-60420 15.08 SMART & FINAL 107076 05/15/2015 SP EVENT -CITY PICNIC 101-3001-60137 41.46 SMITH PIPE & SUPPLY CO 107077 05/15/2015 IRRIGATION MATERIAL 101-7004-60431 87.17 SMITH PIPE & SUPPLY CO 107077 05/15/2015 IRRIGATION CONTROLLER 101-7004-60431 112.10 STANLEY ACCESS TECH INC 107078 05/15/2015 LIBRARY -MAIN DOOR R&M 101-3004-60665 261.00 STAPLES ADVANTAGE 107079 05/15/2015 OFFICE SUPPLIES 101-1002-60400 2.15 STAPLES ADVANTAGE 107079 05/15/2015 OFFICE SUPPLIES 101-3001-60420 11.82 STAPLES ADVANTAGE 107079 05/15/2015 RETURN CREDIT 101-3002-60400 -23.75 STAPLES ADVANTAGE 107079 05/15/2015 OFFICE SUPPLIES 101-3002-60400 23.75 STAPLES ADVANTAGE 107079 05/15/2015 OFFICE SUPPLIES 101-6001-60400 29.22 STAPLES ADVANTAGE 107079 05/15/2015 OFFICE SUPPLIES 101-7001-60420 67.06 SWANK MOTION PICTURES 107080 05/15/2015 MOONLIGHT MOVIE 5/8/15 101-3001-60137 401.00 THOMPSON, TERESA 107081 05/15/2015 REIMB-OFFICE SUPPLIES 101-1005-60420 41.00 THURM, DEBORAH & ANDRE 107082 05/15/2015 REFUND OVERPAYMENT 101-0000-42300 334.25 TOPS'N BARRICADES INC 107084 05/15/2015 SIGNS & POST 101-7003-60429 131.17 TOPS'N BARRICADES INC 107084 05/15/2015 SIGNS 101-7003-60429 148.07 TOPS'N BARRICADES INC 107084 05/15/2015 SIGNS/MATERIAL 101-7003-60429 304.99 TORNQUIST, TONY & CLAUDI 107085 05/15/2015 REFUND TOT OVERPAYMENT 101-0000-42300 3.25 UNDERGROUND SERVICE AL 107086 05/15/2015 DIG ALERT 46 101-7003-60431 69.00 VACATION RENTAL COMPLIA 107087 05/15/2015 APR-STVRP COMPLIANCE 101-1006-60104 2,700.00 VERIZON CALIFORNIA 107088 05/15/2015 PHONE SVC 4/10-5/9 101-7004-60189 52.92 VERIZON CALIFORNIA 107088 05/15/2015 FS#32 ALARM TESTING 101-2002-60670 10.83 WELLS FARGO BUSINESS CA 107089 05/15/2015 VISA CARD PYMT 3/31-4/30 101-1002-60320 259.27 WELLS FARGO BUSINESS CA 107089 05/15/2015 VISA CARD PYMT 3/31-4/30 101-1002-60410 128.00 WELLS FARGO BUSINESS CA 107089 05/15/2015 VISA CARD PYMT 3/31-4/30 101-3001-60320 150.00 WELLS FARGO BUSINESS CA 107089 05/15/2015 VISA CARD PYMT 3/31-4/30 101-3003-60420 604.17 WELLS FARGO BUSINESS CA 107089 05/15/2015 VISA CARD PYMT 3/31-4/30 101-3007-60461 641.50 WELLS FARGO BUSINESS CA 107089 05/15/2015 VISA CARD PYMT 3/31-4/30 101-6001-60320 22.00 .P.M 5/26/2015 3:24.50 ....,, �...... .,._ . .._..___. ...oF...... Page 5 18 Demand Register Packet: APPKT00443 - SHIM 5/15/15 Vendor Name Payment Number Payment Date Dpscription (Payable) Account Number Amoupt WELLS FARGO BUSINESS CA 107089 05/15/2015 VISA CARD PYMT 3/31-4/30 101-6001-60450 150.00 WELLS FARGO BUSINESS CA 107089 05/15/2015 VISA CARD PYMT 3/31-4/30 101-6002-60320 20.00 WELLS FARGO BUSINESS CA 107089 05/15/2015 VISA CARD PYMT 3/31-4/30 101-6005-60406 67.28 WELLS FARGO BUSINESS CA 107089 05/15/2015 VISA CARD PYMT 3/31-4/30 101-6005-98140 252.64 WELLS FARGO BUSINESS CA 107089 05/15/2015 VISA CARD PYMT 3/31-4/30 101-7001-60320 22.00 WELLS FARGO BUSINESS CA 107089 05/15/2015 VISA CARD PYMT 3/31-4/30 101-7002-60320 117.69 WELLS FARGO BUSINESS CA 107089 05/15/2015 VISA CARD PYMT 3/31-4/30 101-7006-60320 22.00 WIRELESS WATCHDOGS 107090 05/15/2015 CELL PH MAINT-FINAL BILL 101-1007-61301 164.00 WL CONTRUCTION SUPPLY L 107091 05/15/2015 SAW BLADES 101-7004-60431 883.98 XPRESS GRAPHICS 107092 05/15/2015 ANNUAL REPORT 101-2001-60175 372.12 ZUMAR INDUSTRIES, INC 107093 05/15/2015 SIGN LETTERS 101-7003-60429 152.54 ZUMAR INDUSTRIES, INC 107093 05/15/2015 SIGNS 101-7003-60429 353.70 Fund 101- GENERAL FUND Total: 101,771.44 Fund: 224 - TUMF COACHELLA VALLEY ASSOC 107028 05/15/2015 APR-TUMF FEE 224-0000-20320 34,911.36 Fund 224 - TUMF Total: 34,911.36 Fund: 401- CAPITAL IMPROVEMENT PROGR DATELAND CONSTRUCTION 107032 05/15/2015 CONST SVC 2014-09 401-1904-45010 38,752.40 INDIO, CITY OF 107047 05/15/2015 FY11/12 & FY13/14 ST LIGHT 401-1891-45010 7,758.77 Fund 401- CAPITAL IMPROVEMENT PROGR Total: 46,511.17 Fund: 501- EQUIPMENT REPLACEMENT AUTOZONE 107018 05/15/2015 TK#41 SWEEPER 501-0000-60678 63.93 BMW MOTORCYCLES OFRIV 107021 05/15/2015 BATTERY TENDER TERMINAL 501-0000-60679 20.81 R A N AUTO DETAIL 107066 05/15/2015 CAR WASH 5/2 & 5/3 501-0000-43430 656.00 RON'S TOWING &STORAGE 107070 05/15/2015 TK#42TOWING 501-0000-60676 90.00 Fund 501- EQUIPMENT REPLACEMENT Total: 830.74 Fund: 502 - INFORMATION TECHNOLOGY CDW GOVERNMENT INC 107025 05/15/2015 KIOSK CABLE 502-0000-56220 24.36 HENSON CONSULTING GRO 107043 05/15/2015 MAR -CONSULTANT 502-0000-60108 6,300.00 HENSON CONSULTING GRO 107043 05/15/2015 APR -CONSULTANT 502-0000-60108 612.50 PCMG INC 107060 05/15/2015 VMWARE RENEWAL 502-0000-60300 3,425.00 STAPLES ADVANTAGE 107079 05/15/2015 OFFICE SUPPLIES 502-0000-60420 31.84 TIME WARNER CABLE 107083 05/15/2015 MAY -CITY HALL CABLE 502-0000-60108 98.56 WELLS FARGO BUSINESS CA 107089 05/15/2015 VISA CARD PYMT 3/31-4/30 502-0000-80100 725.96 Fund 502 - INFORMATION TECHNOLOGY Total: 9,766.30 Fund: 601- SILVER ROCK RESORT COACHELLA VALLEY WATER 107030 05/15/2015 FY14/15 CVWD ASSESSMENT 601-0000-60203 18,497.55 EAGLE PUMP SERVICES, INC. 107035 05/15/2015 ENTRY PUMPS 601-0000-60214 576.00 GCSAA 107041 05/15/2015 MEMBERSHIP 7/1/15-6/30/1 601-0000-60351 375.00 ONE TIME PUMP SERVICE 107057 05/15/2015 FANS/PUMP VAULT 601-0000-60214 1,066.98 WELLS FARGO BUSINESS CA 107089 05/15/2015 VISA CARD PYMT 3/31-4/30 601-0000-60556 171.63 Fund 601-SILVER ROCK RESORT Total: 20,687.16 Grand Total: 214,478.17 5/26/2015 3:24:50 PIA Page 3 of 5 IiP1 Demand Register Fund Summary Fund 101-GENERAL FUND 224 - TUMF 401- CAPITAL IMPROVEMENT PROGR 501- EQUIPMENT REPLACEMENT 502 - INFORMATION TECHNOLOGY 601- SILVER ROCK RESORT Account Number 101-0000-20304 101-0000-20310 101-0000-20943 101-0000-22830 101-0000-41600 101-0000-42200 101-0000-42300 101-0000-42706 101-0000-43631 101-0000-43632 101-1002-60125 101-1002-60320 101-1002-60400 101-1002-60410 101-1002-60420 101-1004-50244 101-1004-60104 101-1005-60420 101-1006-60104 101-1007-61301 101-2001-36310' 101-2001-60162 101-2001-60175 101-2001-60193 101-2001-71031 101-2002-60670 101-2002-61100 101-2002-61200 101-3001-60137 101-3001-60320 101-3001-60420 101-3002-60115 101-3002-60400 101-3002-60420 101-3003-60122 101-3003-60149 101-3003-60420 101-3004-60665 101-3004-60667 101-3004-80100 101-3005-60420 101-3005-61207 101-3006-60667 101-3006-61200 101-3007-60450 101-3007-60461 101-3008-60108 Grand Total: Account Summary Account Name Sales Taxes Payable MSHCP Mitigation Fee Dental Insurance Pay Miscellaneous Deposits Business Licenses Leisure Enrichment Cash Over/Short Parking Violations CVMSHCP Admin Fee Public Works Permitss Temporary Agency Servi Travel & Training Office Supplies Printing Operating Supplies State Unemployment In Consultants Operating Supplies Consultants Mobile/Cell Phones Blood/Alcohol Tasting Patrol Deputy Overtime Special Enforcement Fu Sexual Assault Exam Fee Vehicles Fire Station Utilities - Gas Utilities - Water Community Special Even Travel & Training Operating Supplies Janitorial Office Supplies Operating Supplies Credit Card Fees Special Events Operating Supplies Maint.-Other Equipment HVAC Machinery & Equipment Operating Supplies Utilities - Water -Pionee HVAC Water- Inside Advertising Economic Development/ Technical Expense Amount 101,771.44 34,911.36 46,511.17 830.74 9,766.30 20,687.16 214,478.17 Expense Amount 86.00 17,870.00 6,768.79 100.00 57.00 28.00 374.93 50.00 -178.70 145.00 350.00 259.27 2.15 128.00 5.00 6,525.00 69.00 41.00 2,700.00 164.00 2,265.40 1,258.76 1,170.32 900.00 2,440.17 2,707.35 353.10 62.61 442.46 150.00 11.82 60.30 0.00 91.08 20.00 4.00 733.77 261.00 3,000.00 8.00 1,517.55 497.71 1,009.00 107.45 2,500.00 10,657.50 925.00 Packet: APPKT00443 - SHM 5/15/15 Report u ary 5/26/2015 3:24:50 PM Demand Register Packet: APPKT00443 - SHM 5/15/15 Account Summary Account Number Account Name Expense Amount 101-3008-60123 Security & Alarm 150.00 101-3008-60667 HVAC 18.39 101-6001-60125 Temporary Agency Servi 1,380.32 101-6001-60320 Travel&Training 22.00 101-6001-60400 Office Supplies 29.22 101-6001-60450 Advertising 150.00 101-6002-60320 Travel & Training 20.00 101-6004-60108 Technical 680.00 101-6005-60406 Disaster Prep Supplies 67.28 101-6005-98140 Facility & Fleet Mainten 252.64 101-7001-60320 Travel & Training 22.00 101-7001-60420 Operating Supplies 127.63 101-7002-60125 Temporary Agency Servi 309.06 101-7002-60320 Travel & Training 117.69 101-7003-60125 Temporary Agency Servi 323.38 101-7003-60429 Signs 1,090.47 101-7003-60431 Materials 234.54 101-7003-60690 Uniforms 88.05 101-7004-60104 Consultants 2,368.61 101-7004-60189 Technical 52.92 101-7004-60423 Supplies -Graffiti 43.00 101-7004-60431 Materials 1,471.67 101-7006-60104 Consultants 233.48 101-7006-60146 PM 10 SilverRock 23,798.30 101-7006-60320 Travel & Training 22.00 224-0000-20320 TUMF Payable to CVAG 34,911.36 401-1891-45010 Construction 7,758.77 401-1904-45010 Construction 38,752.40 501-0000-43430 Car Washes 656.00 501-0000-60676 Vehicle Repair & Mainte 90.00 501-0000-60678 Street Sweeper 63.93 501-0000-60679 Motorcycle Repair & Ma 20.81 502-0000-56220 Computers 24.36 502-0000-60108 Technical 7,011.06 502-0000-60300 Maintenance Agreemen 3,425.00 502-0000-60420 Operating Supplies 31.84 502-0000-80100 Machinery & Equipment -725.96 601-0000-60203 Maintenance 18,497.55 601-0000-60214 Tamarisk Removal Pump 1,642.98 601-0000-60351 Membership Dues 375.00 601-0000-60556 SilverRock Buildings 171.63 Grand Total: 214,478.17 Project Account Summary Project Account Key Expense Amount **None** 214,478.17 Grand Total: 214,478.17 5/26/2015 3:24:50 PM Page 5 of 5 21 Demand Register ° City of La Quinta, CA Packet: APPKT00449 - SHM 5/22/15 N Vendor Name Payment Number Payment Date Description (Payable) Account Number Amount Fund: 101-GENERAL FUND ADEPT COMMUNICATIONS 107094 05/22/2015 SMALL TOOLS 101-3002-60432 1,504.50 AIR & HOSE SOURCE, INC. 107095 05/22/2015 SPRAY NOZZLE 101-7003-60431 44.45 ALPHA CARD 107096 05/22/2015 OPERATING SUPPLIES 101-3002-60420 407.59 ALSCO INC 107097 05/22/2015 UNIFORM RENTAL EOM 5/7/ 101-7003-60690 88.05 ALVAREZ, MARIA ISABEL 107098 05/22/2015 INSTRUCTOR PAYMENT 101-3002-60107 619.99 AMERIPRIDE SERVICES INC 107099 05/22/2015 JANITORIAL EOW 5/14/15 101-3002-60115 114.24 BID CLEAR WATER SOLUTIO 107100 05/22/2015 LAKE MAINT 4/21-5/12 101-3005-60117 452.00 SODDEN, RENATE 107101 05/22/2015 INSTRUCTOR PAYMENT 101-3002-60107 150.50 CALPERS LONG-TERM CARE 107103 05/22/2015 LONG TERM CARE 101-0000-20949 106.00 CAPITAL ONE COMMERCIAL 107104 05/22/2015 CAMERA BUNDLE 101-2001-60175 539.98 CAPITAL ONE COMMERCIAL 107104 05/22/2015 CAMERA BUNDLE 101-2001-60175 1,119.98 CAPITAL ONE COMMERCIAL 107104 05/22/2015 COP -SUPPLIES 101-2001-60109 140.35 COACHELLA VALLEY WATER 107105 05/22/2015 WATER SERVICES 101-2002-61200 690.99 COACHELLA VALLEY WATER 107105 05/22/2015 WATER SERVICES 101-3004-61200 151.27 COACHELLA VALLEY WATER 107105 05/22/2015 WATER SERVICES 101-3005-61204 79.43 COACHELLA VALLEY WATER 107105 05/22/2015 WATER SERVICES 101-3005-61208 21.24 COACHELLA VALLEY WATER 107105 05/22/2015 WATER SERVICES 101-3005-61209 170.13 COACHELLA VALLEY WATER 107105 05/22/2015 WATER SERVICES 101-3008-61200 33.58 COACHELLA VALLEY WATER 107105 05/22/2015 WATER SERVICES 101-7006-60146 642.47 CRW SYSTEMS INC 107106 05/22/2015 CRW CONF REGISTRATION 101-6001-60320 500.00 DATA TICKET, INC. 107107 05/22/2015 APR-ADMIN CITATION 101-6004-31190 1,165.55 DEERINGER, TERRY 107109 05/22/2015 MEALS 5/13/15 101-1004-60320 27.19 DEPARTMENT OF ANIMAL SE 107110 05/22/2015 APR -SHELTER SERVICES 101-6004-51070 8,440.62 DESERT SUN PUBLISHING CO 107112 05/22/2015 ADS 3/30-5/3 101-1005-60450 745.20 DESERT SUN PUBLISHING CO 107112 05/22/2015 ADS 3/30-5/3 101-1005-60450 268.80 DESERT SUN PUBLISHING CO 107112 05/22/2015 ADS 3/30-5/3 101-6001-60450 296.40 DESERT SUN PUBLISHING CO 107112 05/22/2015 ADS 3/30-5/3 101-6001-60450 246.00 DISH NETWORK 107113 05/22/2015 EOC DISH 5/13-6/12 101-6005-60107 67.73 DISTAN UNITED LLC 107114 05/22/2015 REFUND OVERPAYMENT 101-0000-42300 3.00 EISENHOWER OCCUPATION 107115 05/22/2015 PRE -EMPLOYMENT PHYSICA 101-1004-60103 230.00 ELLIOTT, MARY 107116 05/22/2015 REFUND 101-0000-42200 50.00 ESGIL CORPORATION 107117 05/22/2015 APR-BLDG PLAN CHECK 101-6003-60118 762.49 GUMMER, BRAD 107119 05/22/2015 INSTRUCTOR PAYMENT 101-3002-60107 220.50 HK LANE INC 107122 05/22/2015 REFUND OVERPAYMENT 101-0000-41415 50.00 HOME DEPOT CREDIT SERVI 107123 05/22/2015 HOME DEPOT 3/27-4/23 101-2002-60670 -69.08 HOME DEPOT CREDIT SERVI 107123 05/22/2015 HOME DEPOT 3/27-4/23 101-2002-60670 641.41 HOME DEPOT CREDIT SERVI 107123 05/22/2015 HOME DEPOT 3/27-4/23 101-3003-60420 3.56 HOME DEPOT CREDIT SERVI 107123 05/22/2015 HOME DEPOT 3/27-4/23 101-6004-60425 84.14 HOME DEPOT CREDIT SERVI 107123 05/22/2015 HOME DEPOT 3/27-4/23 101-7003-60431 15.74 HOME DEPOT CREDIT SERVI 107123 05/22/2015 HOME DEPOT 3/27-4/23 101-7003-60431 27.35 HOME DEPOT CREDIT SERVI 107123 05/22/2015 HOME DEPOT 3/27-4/23 101-7003-60431 34.73 HOME DEPOT CREDIT SERVI 107123 05/22/2015 HOME DEPOT 3/27-4/23 101-7003-60431 21.72 HOME DEPOT CREDIT SERVI 107123 05/22/2015 HOME DEPOT 3/27-4/23 101-7003-60431 65.55 HOME DEPOT CREDIT SERVI 107123 05/22/2015 HOME DEPOT 3/27-4/23 101-7003-60431 32.27 HOME DEPOT CREDIT SERVI 107123 05/22/2015 HOME DEPOT 3/27-4/23 101-7003-60431 6.10 HOME DEPOT CREDIT SERVI 107123 05/22/2015 HOME DEPOT 3/27-4/23 101-7003-60431 21.21 HOME DEPOT CREDIT SERVI 107123 05/22/2015 HOME DEPOT 3/27-4/23 101-7003-60431 10.85 HOME DEPOT CREDIT SERVI 107123 05/22/2015 HOME DEPOT 3/27-4/23 101-7003-60431 4.08 HOME DEPOT CREDIT SERVI 107123 05/22/2015 HOME DEPOT 3/27-4/23 101-7003-60431 35.88 HOME DEPOT CREDIT SERVI 107123 05/22/2015 HOME DEPOT 3/27-4/23 101-7004-60423 101.83 HOME DEPOT CREDIT SERVI 107123 05/22/2015 HOME DEPOT 3/27-4/23 101-7004-60431 50.57 HOME DEPOT CREDIT SERVI 107123 05/22/2015 HOME DEPOT 3/27-4/23 101-7004-60431 47.69 HOME DEPOT CREDIT SERVI 107123 05/22/2015 HOME DEPOT 3/27-4/23 101-7004-60431 47.20 5/26/2015 3:24:31 PM Page 1 of 7 W, Demand Register Packet: APPKT00449 - SHM 5/22/15 Vendor Name Payment Number Payment Datp Description (Payable) Account Number Amount JAS PACIFIC INC 107126 05/22/2015 FEB-BLDG PLAN CHECK 101-6003-60118 16,614.00 JAS PACIFIC INC 107126 05/22/2015 MAR-BLDG PLAN CHECK 101-6003-60118 16,484.00 JAS PACIFIC INC 107126 05/22/2015 APR-BLDG PLAN CHECK 101-6003-60118 17,394.00 JOHNSON, LES 107127 05/22/2015 REIMB MEALS 101-6001-60320 44.83 JONASSON, TIM 107128 05/22/2015 MEALS-NEWPORT PWO1 101-7001-60320 24.28 KIRKPATRICK LANDSCAPING 107129 05/22/2015 LANDSCAPE SERVICE 101-7004-60189 33,855.56 KLEIN, SANDRA 107130 05/22/2015 INSTRUCTOR PAYMENT 101-3003-60107 462.00 KRIBBS, BRUCE 107131 05/22/2015 C&G REPAIRS 101-7003-60431 2,644.00 KRIBBS, BRUCE 107131 05/22/2015 FB MAXICOM SYS R&M 101-7004-60104 400.00 LASALLE LIGHTING SERVICES 107134 05/22/2015 ELECTRICAL SERVICE 101-7004-60104 6,930.00 LOWE'S HOME IMPROVEME 107135 05/22/2015 LOWES 3/25-4/24 101-2002-60670 31.70 LOWE'S HOME IMPROVEME 107135 05/22/2015 LOWES 3/25-4/24 101-3001-60137 12.12 LOWE'S HOME IMPROVEME 107135 05/22/2015 LOWES 3/25-4/24 101-3002-60420 203.77 LOWE'S HOME IMPROVEME 107135 05/22/2015 LOWES 3/25-4/24 101-3002-60691 10.24 LOWE'S HOME IMPROVEME 107135 05/22/2015 LOWES 3/25-4/24 101-3003-60420 28.68 LOWE'S HOME IMPROVEME 107135 05/22/2015 LOWES 3/25-4/24 101-3003-60420 74.97 LOWE'S HOME IMPROVEME 107135 05/22/2015 LOWES 3/25-4/24 101-3004-60691 4.92 LOWE'S HOME IMPROVEME 107135 05/22/2015 LOWES 3/25-4/24 101-3005-60423 3.67 LOWE'S HOME IMPROVEME 107135 05/22/2015 LOWES 3/25-4/24 101-7003-60431 7.35 LOWE'S HOME IMPROVEME 107135 05/22/2015 LOWES 3/25-4/24 101-7003-60431 19.35 LOWE'S HOME IMPROVEME 107135 05/22/2015 LOWES 3/25-4/24 101-7003-60431 20.48 MHP BUILDERS INC 107136 05/22/2015 REFUND APPLICATION FEES 101-0000-42433 180.00 MOLLINDO, RICK 107137 05/22/2015 INSTRUCTOR PAYMENT 101-3003-60107 245.00 MOWERS PLUS INC 107139 05/22/2015 CHAIN SAW BLADES 101-7004-60431 308.77 NI GOVERNMENT SERVICES 1 107141 05/22/2015 APR -SATELLITE RADIO 101-6005-61304 154.75 NIETO, PAM 107142 05/22/2015 REIMB NOTARY TEST FEE 101-1005-60351 40.00 NORIEGA, MARK 107143 05/22/2015 RFND LQ10-0484 & LQ10-05 101-0000-42706 793.00 OFFICE DEPOT 107144 05/22/2015 OFFICE SUPPLIES 101-1007-60402 215.41 OFFICE DEPOT 107144 05/22/2015 OFFICE SUPPLIES 101-1005-60400 32.95 OFFICE DEPOT 107144 05/22/2015 BCARDS-RAMIREZ 101-2001-60420 60.54 OFFICE DEPOT 107144 05/22/2015 OFFICE SUPPLIES 101-1005-60400 38.66 OFFICE TEAM 107145 05/22/2015 TEMP STAFFING WKEND 4/2 101-6001-60125 510.00 OFFICE TEAM 107145 05/22/2015 TEMP STAFFING WKEND 5/1 101-6001-60125 527.00 OFFICE TEAM 107145 05/22/2015 TEMP STAFFING WKEND 5/1 101-6001-60125 583.78 ONTRAC 107146 05/22/2015 OVERNIGHT MAIL 101-1007-60470 30.00 PALM SPRINGS PUMP INC 107147 05/22/2015 CAMPUS PUMP INSPECTION 101-3005-60424 1,750.00 POLAR BARR AIR CONDITION 107150 05/22/2015 HVAC MAINT & REPAIR 101-3002-60667 500.00 PROPER SOLUTIONS INC 107151 05/22/2015 TEMP STAFFING WKEND 5/8 101-1002-60125 358.75 PROPER SOLUTIONS INC 107151 05/22/2015 TEMP STAFFING WKEND 5/8 101-6001-60125 663.78 PROPER SOLUTIONS INC 107151 05/22/2015 TEMP STAFFING WKEND 5/8 101-7003-60125 331.89 RIVERSIDE COUNTY DEPART 107152 05/22/2015 ANIMAL LIC 5/4-8/15 101-0000-42409 134.00 RIVERSIDE DEPARTMENT OF 107153 05/22/2015 GARNISHMENT 101-0000-20985 225.00 ROJAS, MIGUEL ANGEL 107154 05/22/2015 INSTRUCTOR PAYMENT 101-3002-60107 140.00 ROJAS, MIGUEL ANGEL 107154 05/22/2015 INSTRUCTOR PAYMENT 101-3003-60107 2,306.50 RUTAN & TUCKER 107155 05/22/2015 MAR -LEGAL FEES 101-1003-60153 2,216.00 RUTAN & TUCKER 107155 05/22/2015 MAR -LEGAL FEES 101-1003-60153 838.50 RUTAN & TUCKER 107155 05/22/2015 MAR -LEGAL FEES 101-1003-60153 14,982.88 RUTAN & TUCKER 107155 05/22/2015 MAR -LEGAL FEES 101-1003-60153 550.00 RUTAN & TUCKER 107155 05/22/2015 MAR -LEGAL FEES 101-1003-60153 4,000.00 RUTAN & TUCKER 107155 05/22/2015 MAR -LEGAL FEES 101-1003-60154 504.00 RUTAN & TUCKER 107155 05/22/2015 MAR -LEGAL FEES 101-1003-60154 6,301.50 RUTAN & TUCKER 107155 05/22/2015 MAR -LEGAL FEES 101-1003-60154 312.00 SCHICK, MARGARET 107156 05/22/2015 REFUND GARAGE SALE 101-0000-42405 10.00 SHARK POOLS INC 107157 05/22/2015 MAY-FONDA/BERMUDAS 101-7004-60104 175.00 SHIRY, TERESA 107158 05/22/2015 INSTRUCTOR PAYMENT 101-3003-60107 301.00 SIGN A RAMA 107159 05/22/2015 FB POOL SIGNS 101-3001-60184 55.84 SLA CORPORATION 107160 05/22/2015 ESCHAT-ANN'LSUBSCRIPTIO 101-1007-61301 251.44 SOL FUSION INC 107161 05/22/2015 REFUND 101-0000-42403 38.67 SOL FUSION INC 107161 05/22/2015 REFUND 101-0000-42403 19.33 STAPLES ADVANTAGE 107162 05/22/2015 OFFICE SUPPLIES 101-1007-60402 172.99 5/26/2015 3:24.31 PM �� ,.. �,.. , ........ ... ....... . . Page 2 of 7 23 Demand Register Packet: APPKT00449 - SHM 5/22/15 Vendor Name Palyment Number Paymenx Date Description (Payable) Account Number Amount STAPLES ADVANTAGE 107162 05/22/2015 OFFICE SUPPLIES 101-6001-60400 51.84 STAPLES ADVANTAGE 107162 05/22/2015 OFFICE SUPPLIES 101-6001-60400 93.30 STAPLES ADVANTAGE 107162 05/22/2015 OFFICE SUPPLIES 101-6001-60400 18.35 STAPLES ADVANTAGE 107162 05/22/2015 OFFICE SUPPLIES 101-6001-60400 57.37 STAPLES ADVANTAGE 107162 05/22/2015 RETURN CREDIT 101-3001-60400 -250.23 STATE CONTROLLER'S OFFIC 107164 05/22/2015 ADMIN CITATION PROCESSI 101-6004-31190 54.99 TERRA NOVA PLANNING & R 107166 05/22/2015 ZONING ORDINANCE AMEN 101-6001-60103 5,882.50 TESERRA 107167 05/22/2015 REFUND PERMITS 101-0000-42404 549.96 TIME WARNER CABLE 107168 05/22/2015 CABLE-FS#32 5/16-6/15 101-2002-61101 66.58 TRUE, ARTHUR ALLEN 107170 05/22/2015 INSTRUCTOR PAYMENT 101-3003-60107 205.80 TYCO INTEGRATED SECURITY 107171 05/22/2015 MAY-JULALARM 101-3002-60123 39.60 ULRICH, MARGARET 107172 05/22/2015 INSTRUCTOR PAYMENT 101-3002-60107 441.00 UNITED WAY OF THE DESERT 107173 05/22/2015 CONTRIBUTION 101-0000-20981 60.00 URIBE, LUIS 107174 05/22/2015 MILEAGE REIMB 5/4-5/17 101-6003-50250 9.20 US DEPARTMENT OF EDUCA 107176 05/22/2015 GARNISHMENT 101-0000-20985 200.46 VAN WINKLE, LINDA 107177 05/22/2015 REFUND OVERPAYMENT 101-0000-42300 59.90 VERIZON CALIFORNIA 107179 05/22/2015 INTERNET 4/25-5/24 101-1007-61300 85.00 VI NTAG E ASSOCIATES 107180 05/22/2015 APR -PARK MAINT 101-3004-60112 560.00 VINTAGE ASSOCIATES 107180 05/22/2015 APR -PARK MAINT 101-3005-60108 28,907.00 VINTAGE ASSOCIATES 107180 05/22/2015 APR -PARK MAINT 101-3006-60108 425.00 VINTAGE ASSOCIATES 107180 05/22/2015 APR -PARK MAINT 101-7004-60189 12,200.00 VINTAGE ASSOCIATES 107180 05/22/2015 SEASONS MAINLINE 101-3005-60424 140.00 VINTAGE ASSOCIATES 107180 05/22/2015 CAMPUS PLANTS 101-3005-60424 320.00 VINTAGE ASSOCIATES 107180 05/22/2015 SPORTS CMPLX TREE REPAIR 101-3005-60557 350.00 WALTERS WHOLESALE ELECT 107181 05/22/2015 REPLACEMENT CK FOR 1061 101-7004-60431 1,045.02 WALTERS WHOLESALE ELECT 107181 05/22/2015 ELECTRICAL MATERIAL 101-7004-60431 33.43 WALTERS WHOLESALE ELECT 107181 05/22/2015 ELECTRICAL MATERIAL 101-7004-60431 305.21 WALTERS WHOLESALE ELECT 107181 05/22/2015 ELECTRICAL MATERIAL 101-7004-60431 40.64 WALTERS WHOLESALE ELECT 107181 05/22/2015 ELECTRICAL MATERIAL 101-7004-60431 141.69 WALTERS WHOLESALE ELECT 107181 05/22/2015 ELECTRICAL MATERIAL 101-7004-60431 70.21 WIMMER, ED 107182 05/22/2015 APR-APWA LUNCHEON 101-7006-60320 25.00 YOUNG ENGINEERING SVC 107183 05/22/2015 BLDG PLAN CHECK 101-6003-60118 5,022.50 Fund 101- GENERAL FUND Total: 214,673.19 Fund: 218 - CV VIOLENT CRIME TASK FOR BURRTEC WASTE & RECYCLI 107102 05/22/2015 MAY -TRASH SERVICE 218-0000-61501 85.61 DESERT BUSINESS MACHINE 107111 05/22/2015 SERVICE/SUPPLIES 4/23-5/22 218-0000-60665 140.16 IMPERIAL IRRIGATION -GANG 107124 05/22/2015 APR -ELECTRICITY SERVICE 218-0000-61101 338.88 PARRA, ANA L 107148 05/22/2015 APR -JANITORIAL 218-0000-60115 189.83 STAPLES GANG TASK FORCE 107163 05/22/2015 OFFICE SUPPLIES 218-0000-60400 169.87 STAPLES GANG TASK FORCE 107163 05/22/2015 OFFICE SUPPLIES 218-0000-60400 53.98 STAPLES GANG TASK FORCE 107163 05/22/2015 OFFICE SUPPLIES 218-0000-60400 441.15 TAPP, MICHAEL 107165 05/22/2015 REIMB CG2015-002 218-0000-60420 80.00 TIME WARNER -GANG TASK F 107169 05/22/2015 CABLE 4/29-5/28 ' 218-0000-61400 61.83 VERIZON CA - GANG TASK F 107178 05/22/2015 PHONE SVC 4/22-5/21 218-0000-61300 386.35 VERIZON CA - GANG TASK F 107178 05/22/2015 CLETS LINE 4/13-5/12 218-0000-42190 294.98 Fund 218 - CV VIOLENT CRIME TASK FOR Total: 2,242.64 Fund: 221- AB 939 HF&H CONSULTANTS, LLC 107121 05/22/2015 APR-AB939 CONSULTANT 221-0000-60104 5,433.00 Fund 221- AB 939 Total 5,433.00 Fund: 237 - SUCCESSOR AGCY PA 1 ADMIN RUTAN & TUCKER 107155 05/22/2015 MAR -LEGAL FEES 237-9001-60153 480.00 RUTAN & TUCKER 107155 05/22/2015 MAR -LEGAL FEES 237-9001-60153 4,000.00 Fund 237 - SUCCESSOR AGCY PA 1 ADMIN Total: 4,480.00 Fund: 241- HOUSING AUTHORITY PA3 RUTAN & TUCKER 107155 05/22/2015 MAR -LEGAL FEES 241-9101-60153 645.00 Fund 241- HOUSING AUTHORITY PA3 Total: 645.00 5/26/2015 3:24:31 PM Page 3 of 7 24 Demand Register Packet: APPKT00449 - SHM 5/22/15 Vendor Name Payment Number Payment Date Descriptign (Payable) Account Number Amount Fund: 270 - ART IN PUBLIC PLACES FUND NATIONAL SCULPTORS GUIL 107140 05/22/2015 ART PURCHASE 270-0000-74800 30,000.00 Fund 270 - ART IN PUBLIC PLACES FUND Total: 30,000.00 Fund: 401- CAPITAL IMPROVEMENT PROGR DDL TRAFFIC INC. 107108 05/22/2015 CORP CENTER-BBS 401-1885-45010 4,692.60 DDL TRAFFIC INC. 107108 05/22/2015 CORP CENTER-EVP 401-1885-45010 5,680.80 DESERT SUN PUBLISHING CO 107112 05/22/2015 ADS 3/30-5/3 401-1885-45010 646.92 HERMANN DESIGN GROUP 1 107120 05/22/2015 DESIGN 401-1905-60185 814.95 ITERIS 107125 05/22/2015 VIDEO DETECTION-CORP CTR 401-1885-45010 27,518.40 LANDMARK GEO-ENGINEERS 107133 05/22/2015 CONT SVC TESTING 2014-09 401-1904-60108 1,158.00 LOWE'S HOME IMPROVEME 107135 05/22/2015 LOWES 3/25-4/24 401-1891-45010 6.12 LOWE'S HOME IMPROVEME 107135 05/22/2015 LOWES 3/25-4/24 401-1891-45010 67.18 LOWE'S HOME IMPROVEME 107135 05/22/2015 LOWES 3/25-4/24 401-1891-45010 1.73 LOWE'S HOME IMPROVEME 107135 05/22/2015 LOWES 3/25-4/24 401-1891-45010 3.05 LOWE'S HOME IMPROVEME 107135 05/22/2015 LOWES 3/25-4/24 401-1891-45010 5.00 LOWE'S HOME IMPROVEME 107135 05/22/2015 LOWES 3/25-4/24 401-1891-45010 2.53 PLANIT REPROGRAPHICS SYS 107149 05/22/2015 BID PLANS/SPECS 2014-02 401-1899-45010 252.84 Fund 401- CAPITAL IMPROVEMENT PROGR Total: 40,850.12 Fund: 501- EQUIPMENT REPLACEMENT FU E LMAN 107118 05/22/2015 APR -FUEL 501-0000-60674 4,805.78 L & L AUTOMOTIVE 107132 05/22/2015 TK#70 L.O.F./ BRAKES 501-0000-60676 467.13 MOUNTAIN VIEW TIRE 107138 05/22/2015 TKN44 TIRES 501-0000-60676 249.22 Fund 501- EQUIPMENT REPLACEMENT Total: 5,522.13 Fund: 502 - INFORMATION TECHNOLOGY TIME WARNER CABLE 107168 05/22/2015 FIBER 5/10-6/9 502-0000-60108 1,470.00 Fund 502 - INFORMATION TECHNOLOGY Total: 1,470.00 Fund: 601- SILVER ROCK RESORT HOME DEPOT CREDIT SERVI 107123 05/22/2015 HOME DEPOT 3/27-4/23 601-0000-60556 67.51 HOME DEPOT CREDIT SERVI 107123 05/22/2015 HOME DEPOT 3/27-4/23 601-0000-60556 30.05 HOME DEPOT CREDIT SERVI 107123 05/22/2015 HOME DEPOT 3/27-4/23 601-0000-60556 22.22 LOWE'S HOME IMPROVEME 107135 05/22/2015 LOWES 3/25-4/24 601-0000-60556 14.32 US AIR CONDITIONING DISTR 107175 05/22/2015 SILVERROCK-A/C BELT 601-0000-60556 9.64 Fund 601- SILVER ROCK RESORT Total:. 143.74 Grand Total: 305,459.82 5/26/2015 3:24:31 PM Page 4 of 7 R&I Demand Register Fund Summary Fund 101-GENERAL FUND 218 - CV VIOLENT CRIME TASK FOR 221- AB 939 237 - SUCCESSOR AGCY PA 1 ADMIN 241- HOUSING AUTHORITY PA1 270 - ART IN PUBLIC PLACES FUND 401- CAPITAL IMPROVEMENT PROGR 501- EQUIPMENT REPLACEMENT 502 - INFORMATION TECHNOLOGY 601- SILVER ROCK RESORT Account Number 101-0000-20949 101-0000-20981 101-0000-20985 101-0000-41415 101-0000-42200 101-0000-42300 101-0000-42403 101-0000-42404 101-0000-42405 101-0000-42409 101-0000-42433 101-0000-42706 101-1002-60125 101-1003-60153 101-1003-60154 101-1004-60103 101-1004-60320 101-1005-60351 101-1005-60400 101-1005-60450 101-1007-60402 101-1007-60470 101-1007-61300 101-1007-61301 101-2001-60109 101-2001-60175 101-2001-60420 101-2002-60670 101-2002-61101 101-2002-61200 101-3001-60137 101-3001-60184 101-3001-60400 101-3002-60107 101-3002-60115 101-3002-60123 101-3002-60420 101-3002-60432 101-3002-60667 101-3002-60691 101-3003-60107 101-3003-60420 101-3004-60112 Grand Total: Account Summary Account Name LT Care Insurance Pay United Way Deductions Garnishments Payable TOT - STVR Registration Leisure Enrichment Cash Over/Short Electrical Permits Miscellaneous Permits Garage Sale Permits Animal Licenses Minor Use Permit Parking Violations Temporary Agency Servi Attorney Attorney/Litigation Professional Travel & Training Membership Dues Office Supplies Advertising Forms Postage Utilities - Telephone Mobile/Cell Phones LC! Police Volunteers Special Enforcement Fu Operating Supplies Fire Station Utilities - Electricity Utilities - Water Community Special Even Fritz Burns Park Office Supplies Instructors Janitorial Security & Alarm Operating Supplies Small Tools/Equipment HVAC Repair & Maintenance Instructors Operating Supplies Landscape Contract Expense Amount 214,673.19 2,242.64 5,433.00 4,480.00 645.00 30,000.00 40,850.12 5,522.13 1,470.00 143.74 305,459.82 Expense Amount 106.00 60.00 425.46 50.00 50.00 62.90 58.00 549.96 10.00 134.00 180.00 793.00 358.75 22,587.38 7,117.50 230.00 27.19 40.00 71.61 1,014.00 388.40 30.00 85.00 251.44 140.35 1,659.96 60.54 604.03 66.58 690.99 12.12 55.84 -250.23 1,571.99 114.24 39.60 611.36 1,504.50 500.00 10.24 3,520.30 107.21 560.00 Packet: APPKT00449 - SHIM 5/22/15 Report Summary 5/26/2015 3:24:31 PM Page 5 of 7 26 Demand Register Packet: APPKT00449 - SHM 5/22/15 Account Summary Account Number Account Name Expense Amount 101-3004-60691 Repair & Maintenance 4.92 101-3004-61200 Water - Inside 151.27 101-3005-60108 Technical 28,907.00 101-3005-60117 Civic Center Lake Mainte 452.00 101-3005-60423 Supplies -Graffiti 3.67 101-3005-60424 Materials - Irrigation & L 2,210.00 101-3005-60557 Tree Maintenance 350.00 101-3005-61204 Utilities - Water -Fritz Bu 79.43 101-3005-61208 Utilities - Water -Season 21.24 101-3005-61209 Utilities -Water -Comm 170.13 101-3006-60108 Technical 425.00 101-3008-61200 Utilities - Water 33.58 101-6001-60103 Professional 5,882.50 101-6001-60125 Temporary Agency Servi 2,284.56 101-6001-60320 Travel & Training 544.83 101-6001-60400 Office Supplies 220.86 101-6001-60450 Advertising 542.40 101-6003-50250 Vehicle Reimbursement 9.20 101-6003-60118 Plan Check 56,276.99 101-6004-31190 Admin Citation Services 1,220.54 101-6004-51070 Animal Shelter 8,440.62 101-6004-60425 Supplies - Field 84.14 101-6005-60107 Instructors 67.73 101-6005-61304 Mobile/Cell Phones 154.75 101-7001-60320 Travel & Training 24.28 101-7003-60125 Temporary Agency Servi 331.89 101-7003-60431 Materials 3,011.11 101-7003-60690 Uniforms 88.05 101-7004-60104 Consultants 7,505.00 101-7004-60189 Technical 46,055.56 101-7004-60423 Supplies -Graffiti 101.83 101-7004-60431 Materials 2,090.43 101-7006-60146 PM 10 SilverRock 642.47 101-7006-60320 Travel & Training 25.00 218-0000-42190 CLET Line 294.98 218-0000-60115 Janitorial 189.83 218-0000-60400 Office Supplies 665.00 218-0000-60420 Operating Expenses 80.00 218-0000-60665 Maint.-Other Equipment 140.16 218-0000-61101 Electricity 338.88 218-0000-61300 Utilities - Telephone 386.35 218-0000-61400 Cable 61.83 218-0000-61501 Refuse Collection 85.61 221-0000-60104 Consultants 5,433.00 237-9001-60153 Attorney 4,480.00 241-9101-60153 Attorney 645.00 270-0000-74800 Art Purchases 30,000.00 401-1885-45010 Construction 38,538.72 401-1891-45010 Construction 85.61 401-1899-45010 Construction 252.84 401-1904-60108 Technical 1,158.00 401-1905-60185 Design 814.95 501-0000-60674 Fuel & Oil 4,805.78 501-0000-60676 Vehicle Repair & Mainte 716.35 502-0000-60108 Technical 1,470.00 601-0000-60556 SilverRock Buildings 143.74 Grand Total: 305,459.82 5/26/2015 3:24:31 PM Page 6 of 7 27 Demand Register Packet: APPKT00449 - SHM 5/22/15 Project Account Summary Project Account Key Expense Amount **None** 305,459.82 Grand Total: 305,459.82 5/26/2015 3:24:31 PM Page 7 of 7 28 `IN ATTACHMENT 2 CITY OF LA QUINTA BANK TRANSACTIONS 5/09/15 - 5/22/15 5/12/15 WIRE TRANSFER - TASC 5/13/15 WIRE TRANSFER - LANDMARK 5/22/15 WIRE TRANSFER - PERS 5/22/15 WIRE TRANSFER - ICMA 5/22/15 WIRE TRANSFER - LQCEA TOTAL WIRE TRANSFER OUT $877.06 $120,697.45 $44,789.35 $4,959.50 $365.50 _$171, 688.86 Taf 4 4 a" �a C OF CIT / SA / HA / FA MEETING DATE: June 2, 2015 ITEM TITLE: SECOND READING AND ADOPTION OF ORDINANCE NO. 525 CHANGING ZONING DESIGNATION FROM MEDIUM HIGH TO LOW DENSITY RESIDENTIAL FOR PROPERTY LOCATED AT THE NORTHWEST CORNER OF JEFFERSON STREET AND AVENUE 52 RECOMMENDED ACTION: Adopt Ordinance No. 525 on second reading. EXECUTIVE SUMMARY: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: 3 STUDY SESSION: PUBLIC HEARING: • At the May 19, 2015 City Council meeting, Council unanimously approved a motion to take up and introduce Ordinance No. 525 on first reading. • The ordinance approves Zone Change 2014-145 for property located at the northwest corner of Jefferson Street and Avenue 52 (former Watermark Villas project), changing the zoning designation for Assessor's Parcel Numbers 776- 220-012, 776-220-013, 776-220-014 from medium high to low density residential. • By law, a second reading of an ordinance must occur, followed by adoption and a 30-day posting period, before an ordinance may take effect. FISCAL IMPACT: None. BACKGROUND/ANALYSIS: The Watermark Villas project was originally approved in 2004, with amendments made to the proposed clubhouse in 2006. The project consisted of 250 condominium units on the 20.8 acre site. After approval, the site was graded, portions of utility infrastructure installed, and one 8-plex building and 10 podium garages were constructed. The project then stopped during the economic downturn. Improvements remain partially completed to this day. Beazer Homes subsequently purchased the property and proposes demolition of all existing improvements, with the exception of the existing wall, entry gate and paving, and the retention basin. They would then build 82 single-family homes. As a result of the significant changes, a Change of Zone from Medium High Density Residential to Low Density Residential is needed. The site currently has a General Plan Land Use designation of Medium/High Density Residential, and a Zoning designation of Medium High Density Residential. These designations were consistent with the previous Watermark project. In order to allow the proposed single-family homes, however, a designation of Low Density Residential must be applied to this parcel. The property is abutted to the north and west by Low Density Residential designations, as part of the Citrus project. On the east, lands are designated commercial at the northeast corner of Jefferson Street and Avenue 52. On the southeast corner of this intersection, lands are designated Medium/High Density Residential in the General Plan, and both Medium and Medium High Density Residential on the Zoning Map. On the southwest corner of the intersection, lands are designated Open Space and Tourist Commercial, as part of the SilverRock Resort project. With its adjacency to Low Density Residential lands to the north and west, a reduction in land use intensity to Low Density Residential is appropriate for the site. ALTERNATIVES: As Council approved this ordinance at first reading, staff does not recommend an alternative. Report prepared by: Pam Nieto, Administrative Technician Report approved for submission by: Susan Maysels, City Clerk K3: ORDINANCE NO.525 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING ZONE CHANGE 2014- 145, CHANGING THE ZONING DESIGNATION FOR ASSESSOR'S PARCEL NUMBERS 776-220-012, 776-220- 013, 776-220-014 FROM MEDIUM HIGH DENSITY RESIDENTIAL TO LOW DENSITY RESIDENTIAL CASE: ZONE CHANGE 2014-145 APPLICANT: BEAZER HOMES HOLDINGS WHEREAS, the City Council of the City of La Quinta, California did, on the 6th day of January, 3rd day of March and 19th day of May, 2015, consider a request by Beazer Homes Holdings for a change in zoning from Medium High Density Residential to Low Density Residential, located at the northwest corner of Jefferson Street and Avenue 52, more particularly described as: Assessor's Parcel Nos.: 776-220-012, 776-220-013, 776-220-014 WHEREAS, the Planning Commission of the City of La Quinta did, on the 9th day of December, 2014, hold a duly noticed Public Hearing to consider the aforementioned Zone Change; and, WHEREAS, subsequent to said Public Hearing, the Planning Commission of the City of La Quinta did adopt Planning Commission Resolution 2014-029 to recommend to the City Council adoption of said Zone Change; and, WHEREAS, said Zone Change has complied with the requirements of "The Rules to Implement the California Environmental Quality Act of 1970" as amended (Resolution 83-68), in that the La Quinta Community Development Director has determined that the Zone Change could have a significant impact on the environment but that all potentially significant impacts can be reduced to less than significant levels, and a Mitigated Negative Declaration has been approved; and, WHEREAS, at said Public Hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons wanting to be heard, the La Quinta City Council did make the following mandatory findings to justify adoption of said Zone Change: Finding A The project is consistent with the General Plan The proposed Zone Change is internally consistent with those goals, objectives and 33 policies of the general plan which are not being amended. The proposed Low Density Residential designation is consistent with lands to the west and north of the parcel. Finding B Approval of the amendment will not create conditions materially detrimental to the public health, safety and general welfare. Approval of the proposed Zone Change will not create conditions materially detrimental to public health, safety and general welfare insofar as the Low Density Residential designation will result in the development of single-family homes and similar uses permitted by the General Plan in this land use designation. Finding C The new designation is compatible with the land use designations on adjacent properties. The Zone Change is consistent with the land use designation for properties located north and west of the parcel. Finding D The new land use designation is suitable and appropriate for the subject property. The new zoning designation is suitable and appropriate for the subject property, insofar as it will allow the development of single-family homes on a site that is generally flat and rectangular. Finding E Approval of the amendment is warranted because the situation and the general conditions of the property have substantially changed since the existing designation was imposed. Approval of the new zoning designation is warranted because the density of the proposed single-family tract will be less than 4 units per acre. NOW, THEREFORE, the City Council of the City of La Quinta does ordain as follows: SECTION 1. The La Quinta Zoning Map is hereby amended as follows: 1. APNs: 776-220-012, 776-220-013, 776-220-014 are designated Low Density Residential (Exhibit A). SECTION 2. ENVIRONMENTAL: The Community Development Department determined that the proposed Zone Change could have a significant impact on the environment, but all significant impacts can be mitigated to a less than significant level. 34 SECTION 3. EFFECTIVE DATE: This Ordinance shall be in full force and effect thirty (30) days after its adoption. SECTION 4. POSTING: The City Clerk shall, within 15 days after passage of this Ordinance, cause it to be posted in at least three public places designated by resolution of the City Council, shall certify to the adoption and posting of this Ordinance, and shall cause this Ordinance and its certification, together with proof of posting to be entered into the Book of Ordinances of the City of La Quinta. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held this 2nd day of June, 2015, by the following vote: AYES: NOES: ABSENT: ABSTAIN: LINDA EVANS, Mayor City of La Quinta, California I_1a9*1$ SUSAN MAYSELS, City Clerk City of La Quinta, California (CITY SEAL) APPROVED AS TO FORM: WILLIAM H. IHRKE, City Attorney City of La Quinta, California STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LA QUINTA ) I, SUSAN MAYSELS, City Clerk of the City of La Quinta, California, do hereby certify the foregoing to be a full, true, and correct copy of Ordinance No. 525(enter number) which was introduced at a regular meeting on the 19th day of May, 2015,(Clerk's Office will enter) and was adopted at a regular meeting held on the 2nd day of June, 2015, not being less than 5 days after the date of introduction thereof. I further certify that the foregoing Ordinance was posted in three places within the City of La Quinta as specified in the Rules of Procedure adopted by City Council Resolution No. 2014-013. SUSAN MAYSELS, City Clerk City of La Quinta, California DECLARATION OF POSTING I, SUSAN MAYSELS, City Clerk of the City of La Quinta, California, do hereby certify that the foregoing ordinance was posted on June 3, 2015(Clerk's Office will enter), pursuant to Council Resolution. SUSAN MAYSELS, City Clerk City of La Quinta, California KZy CITY / SA / HA / FA MEETING DATE: June 2, 2015 AGENDA CATEGORY: ITEM TITLE: APPROVE PROFESSIONAL SERVICES BUSINESS SESSION: AGREEMENT WITH BENGAL ENGINEERING TO PROVIDE CONSENT CALENDAR: 4 PROFESSIONAL ENGINEERING SERVICES FOR DUNE STUDY SESSION: PALMS ROAD WIDENING PROJECT PUBLIC HEARING: RECOMMENDED ACTION: Approve a Professional Services Agreement, in the amount of $123,900, with Bengal Engineering, Inc. to provide professional engineering services for the Dune Palms Road Widening Improvement Project, and authorize the City Manager to execute the agreement. EXECUTIVE SUMMARY: • The Dune Palms Road Widening Improvement Project will widen Dune Palms Road between Blackhawk Way and the north project limit of the future Dune Palms Road Bridge across the Whitewater Channel. • After soliciting and receiving proposals from consultant engineering firms, Bengal Engineering was hired for the Dune Palms Bridge Project, which will abut the proposed Dune Palms Road Widening Project. • Staff believes Bengal Engineering is the best firm to design the street improvements and that the City will benefit by having both projects designed by the same engineering firm. FISCAL IMPACT: Staff proposes to fund this project with Measure A, Transportation Development Impact Fees (DIF), and Coachella Valley Associations of Governments (CVAG) Regional Arterial Funding. Measure A funds in the amount of $308,000 were previously approved in Fiscal Year 2013/2014 for the street improvement plans. The balance of the funding is included in the proposed Fiscal Year 2015/2016 Capital Improvement Program. 1914 The following are the project's proposed funding and funding sources: FUNDING SOURCE AMOUNT Measure A Funds $ 383,000 Transportation DIF Funds $ 525,000 CVAG Regional Arterial Funds $1,575,000 TOTAL ANTICIPATED FUNDING $2,483,000 The following are the anticipated project expenditures: BUDGET LINE ITEM BUDGET Professional: $ 56,000 Engineering: $ 123,900 Right -of -Way Acquisition: $ 500,000 Inspection/Test/Survey: $ 112,000 Construction: $1,402,000 Contingency: $ 244,100 City Administration: $ 45,000 TOTAL BUDGET: $2,483,000 Contingent upon Council's approval of the Professional Services Agreement (PSA) (Attachment 1), the engineering and professional services phase would begin at this time with an anticipated expenditure of $179,900. These expenditures will be charged against the Measure A funding approved by Council as part of the Fiscal Year 2013/2014 Capital Improvement Program. No additional appropriation is required for this phase. BACKGROUND/ANALYSIS: In 2007, the former Redevelopment Agency purchased over five acres of land at the northeast corner of Dune Palms Road and Westward Ho for an affordable housing project. The proposed street improvements and road widening on Dune Palms Road were anticipated in order to address the project's traffic and drainage impacts. The project was placed on hold when the State eliminated Redevelopment Agencies. A portion of the originally purchased land at the northeast corner of Dune Palms Road and Westward Ho is being considered for a new regional skate park facility and a new four -lane bridge is under design for Dune Palms Road across the Whitewater River. These two projects will require the widening of Dune Palms Road. The proposed improvements will consist of constructing Dune Palms Road to its General Plan Secondary Arterial configuration between Black Hawk Way and the northerly bridge approach at the Whitewater River as shown in Attachment 2. The improvements include a new northbound travel lane, bicycle/golf cart lane, curb, 38 gutter, and a 6-foot wide curb -adjacent sidewalk. Completion of the project will require utility relocation and right-of-way acquisition. Bengal Engineering's roadway design engineer previously worked on the roadway plans for the former Redevelopment Agency. The roadway widening and the bridge improvement projects overlap in terms of right-of-way acquisition and environmental impact. Using the same design engineer should reduce the overall design cost and will improve coordination of the environmental, right-of-way acquisition, and construction phases of both projects. ALTERNATIVES: An alternative would be to direct staff to issue a request for proposals for these services. Since uncoupling the design of these projects would forego any cost savings that could be achieved through economies of scale and unnecessarily delay delivery of the street, bridge and skate park improvements, no alternative is recommended. Report prepared by: Ed Wimmer, P.E., Principal Engineer Report approved for submission by: Timothy R. Jonasson, P.E. Public Works Director/City Engineer Attachments: 1. PSA 2. Project Map K1*7 HQ ATTACHMENT 1 PROFESSIONAL SERVICES AGREEMENT THIS PROFESSIONAL SERVICES AGREEMENT (the "Agreement") is made and entered into by and between the CITY OF LA QUINTA, ("City"), a California municipal corporation, and Bengal Engineering, Inc. ("Consultant"). The parties hereto agree as follows: 1.0 SERVICES OF CONSULTANT 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide those services related to Dune Palms Road Widening Improvement, Project No. 2009-04, as specified in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by this reference (the "Services"). Consultant represents and warrants that Consultant is a provider of first-class services and Consultant is experienced in performing the Services contemplated herein and, in light of such status and experience, Consultant covenants that it shall follow the highest professional standards in performing the Services required hereunder. For purposes of this Agreement, the phrase "highest professional 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 Licenses, Permits, Fees and Assessments. Except as otherwise specified herein, Consultant shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of the Services required by this Agreement, including a City of La Quinta business license. Consultant 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. Consultant shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the performance of the Services required by this Agreement, and shall indemnify, defend (with counsel selected by City), and hold City, its elected officials, officers, employees, and agents, free and harmless against any such fees, assessments, taxes, penalties, or interest levied, assessed, or imposed against City hereunder. Consultant shall be responsible for all subcontractors' compliance with this Section. 1.4 Familiarity with Work. By executing this Agreement, Consultant warrants that (a) it has thoroughly investigated and considered the Services to be Last revised April 2015 CS 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 Consultant discover any latent or unknown conditions materially differing from those inherent in the Services or as represented by City, Consultant shall immediately inform City of such fact and shall not proceed except at Consultant's risk until written instructions are received from the Contract Officer (as defined in Section 4.2 hereof). 1.5 Standard of Care. Consultant acknowledges and understands that the Services contracted for under this Agreement require specialized skills and abilities and that, consistent with this understanding, Consultant's work will be held to a heightened standard of quality. Consistent with Section 1.4 hereinabove, Consultant represents to City that it holds the necessary skills and abilities to satisfy the heightened standard of quality as set forth in this Agreement. Consultant shall adopt reasonable methods during the life of this Agreement to furnish continuous protection to the Services performed by Consultant, and the equipment, materials, papers, and other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the Services by City, except such losses or damages as may be caused by City's own negligence. The performance of Services by Consultant shall not relieve Consultant from any obligation to correct any incomplete, inaccurate, or defective work at no further cost to City, when such inaccuracies are due to the negligence of Consultant. 1.6 Additional Services. In accordance with the terms and conditions of this Agreement, Consultant shall perform services in addition to those specified in the Scope of Services ("Additional Services") only when directed to do so by the Contract Officer, provided that Consultant shall not be required to perform any Additional Services without compensation. Consultant shall not perform any Additional Services until receiving prior written authorization from the Contract Officer, 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 Consultant. It is expressly understood by Consultant 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 unenforeceable. Failure of Consultant to secure the Contract Officer'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 Last revised April 2015 -2- 42 Contract Officer. Compensation for properly authorized Additional Services shall be made in accordance with Section 2.3 of this Agreement. 1.7 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in Exhibit "D" (the "Special Requirements"), 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. 2.0 COMPENSATION 2.1 Contract Sum. For the Services rendered pursuant to this Agreement, Consultant shall be compensated in accordance with Exhibit "B" (the "Schedule of Compensation") in a total amount not to exceed One Hundred Twenty Three Thousand, Nine Hundred Dollars ($123,900.00) (the "Contract Sum"), except as provided in Section 1.6. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment in accordance with the percentage of completion of the Services, payment for time and materials based upon Consultant's rate schedule, but not exceeding the Contract Sum, or such other methods as may be specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Consultant at all project meetings reasonably deemed necessary by City; Consultant 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 compensation set forth in the Schedule of Compensation, Consultant's overall compensation shall not exceed the Contract Sum, except as provided in Section 1.6 of this Agreement. 2.2 Method of Billing. Any month in which Consultant wishes to receive payment, Consultant shall submit to City no later than the tenth (10th) working day of such month, in the form approved by City's Finance Director, an invoice for Services rendered prior to the date of the invoice. Such invoice shall (1) describe in detail the Services provided, including time and materials, and (2) specify each staff member who has provided Services and the number of hours assigned to each such staff member. Such invoice shall contain a certification by a principal member of Consultant specifying that the payment requested is for Services performed in accordance with the terms of this Agreement. Subject to retention pursuant to Section 8.3, City will pay Consultant 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. Last revised April 2015 -3- 43 2.3 Compensation for Additional Services. Additional Services approved in advance by the Contract Officer pursuant to Section 1.6 of this Agreement shall be paid for in an amount agreed to in writing by both City and Consultant in advance of the Additional Services being rendered by Consultant. Any compensation for Additional Services amounting to five percent (5%) or less of the Contract Sum may be approved by the Contract Officer. Any greater amount of compensation for Additional Services must be approved by the La Quinta City Council. Under no circumstances shall Consultant receive compensation for any Additional Services unless prior written approval for the Additional Services is obtained from the Contract Officer pursuant to Section 1.6 of this Agreement. 3.0 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 time period specified in the Schedule of Performance may be approved in writing by the Contract Officer. 3.3 Force Majeure. The time period specified in the Schedule of Performance for performance of the Services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant, including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than City, and unusually severe weather, if Consultant shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the Services for the period of the forced delay when and if in his or her judgment such delay is justified, and the Contract Officer's determination shall be final and conclusive upon the parties to this Agreement. Extensions to time period in the Schedule of Performance which are determined by the Contract Officer to be justified pursuant to this Section shall not entitle the Consultant to additional compensation in excess of the Contract Sum. Last revised April 2015 -4- 44 3.4 Term. Unless earlier terminated in accordance with Sections 8.8 or 8.9 of this Agreement, the term of this agreement shall commence on June 3, 2015 and terminate on July 31, 2017 ("Initial Term"). This Agreement may be extended upon mutual agreement by both parties ("Extended Term"). 4.0 COORDINATION OF WORK 4.1 Representative of Consultant. The following principals of Consultant ("Principals") are hereby designated as being the principals and representatives of Consultant authorized to act in its behalf with respect to the Services specified herein and make all decisions in connection therewith: a. Scott Onishuk, P.E., Principal In Charge E-mail: scott@bengalengineering.com b. Brad Donais, P.E., Project Engineer E-mail: bdonais@hep7.com It is expressly understood that the experience, knowledge, capability, and reputation of the foregoing Principals were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing Principals shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the Services hereunder. For purposes of this Agreement, the foregoing Principals may not be changed by Consultant 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" shall be Timothy R. Jonasson, P.E., Public Works Director/City Engineer or such other person as may be designated in writing by the City Manager of City. It shall be Consultant's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the Services, and Consultant shall refer any decisions, that must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. The Contract Officer 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 Consultant, its principals, and its employees were a substantial inducement for City to enter into this Agreement. Except as set forth in this Agreement, Consultant shall not contract with any other entity to perform in whole or in part the Services required hereunder without the express written approval of City. In addition, neither this Agreement nor any Last revised April 2015 -5- 45 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 Consultant, taking all transfers into account on a cumulative basis. Any attempted or purported assignment or contracting by Consultant without City's express written approval shall be null, void, and of no effect. No approved transfer shall release Consultant 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 Consultant, its agents, or its employees, perform the Services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge, supervision, or control of Consultant's employees, servants, representatives, or agents, or in fixing their number or hours of service. Consultant shall perform all Services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Consultant in its business or otherwise or a joint venturer or a member of any joint enterprise with Consultant. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. Except for the Contract Sum paid to Consultant as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Consultant 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, Consultant 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. Consultant agrees to pay all required taxes on amounts paid to Consultant 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. Consultant shall fully comply with the workers' compensation laws regarding Consultant and Consultant's employees. Consultant further agrees to indemnify and hold City harmless from any failure of Consultant to comply with applicable workers' compensation laws. City shall have the right to offset against Last revised April 2015 -6- 46 the amount of any payment due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant's failure to promptly pay to City any reimbursement or indemnification arising under this Section. 4.5 Identity of Persons Performing Work. Consultant 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. Consultant represents that the Services required herein will be performed by Consultant or under its direct supervision, and 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 Consultant 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 Consultant only from or through action by City. 5.1 Insurance. Prior to the beginning of any Services under this Agreement and throughout the duration of the term of this Agreement, Consultant 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. 6.0 INDEMNIFICATION. 6.1 Indemnification. To the fullest extent permitted by law, Consultant 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. 7.0 RECORDS AND REPORTS. 7.1 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning Consultant's performance of the Services required by this Agreement as the Contract Officer shall require. Consultant hereby acknowledges that City is greatly concerned about the cost of the Services to be performed pursuant to this Agreement. For this reason, Consultant agrees that if Consultant 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 Consultant is providing design services, the cost of the project being designed, Consultant shall promptly notify the Contract Officer of said fact, Last revised April 2015 -7- 47 circumstance, technique, or event and the estimated increased or decreased cost related thereto and, if Consultant is providing design services, the estimated increased or decreased cost estimate for the project being designed. 7.2 Records. Consultant 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 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 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 Consultant's business, custody of the Books and Records may be given to City, and access shall be provided by Consultant'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 Consultant, 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 upon the expiration or termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the Documents and Materials hereunder. Any use, reuse or assignment of such completed Documents and Materials for other projects and/or use of uncompleted documents without specific written authorization by Consultant will be at City's sole risk and without liability to Consultant, and Consultant's guarantee and warranties shall not extend to such use, revise, or assignment. Consultant may retain copies of such Documents and Materials for its Last revised April 2015 -8- 48 own use. Consultant 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 Consultant fails to secure such assignment, Consultant shall indemnify City for all damages resulting therefrom. In the event City or any person, firm, or corporation authorized by City reuses said Documents and Materials without written verification or adaptation by Consultant for the specific purpose intended and causes to be made or makes any changes or alterations in said Documents and Materials, City hereby releases, discharges, and exonerates Consultant from liability resulting from said change. The provisions of this clause shall survive the termination or expiration of this Agreement and shall thereafter remain in full force and effect. 7.4 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. Consultant 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. Consultant represents and warrants that Consultant has the legal right to license any and all of the Documents and Materials. Consultant makes no such representation and warranty in regard to the Documents and Materials which were prepared by design professionals other than Consultant or provided to Consultant 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. 7.5 Release of Documents. The Documents and Materials shall not be released publicly without the prior written approval of the Contract Officer or as required by law. Consultant shall not disclose to any other entity or person any information regarding the activities of City, except as required by law or as authorized by City. 8.0 ENFORCEMENT OF AGREEMENT. 8.1 California Law. This Agreement shall be 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 Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. Last revised April 2015 -9- 49 8.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer; provided that if the default is an immediate danger to the health, safety, 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 Section 8.8. During the period of time that Consultant 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. 8.3 Retention of Funds. City may withhold from any monies payable to Consultant sufficient funds to compensate City for any losses, costs, liabilities, or damages it reasonably believes were suffered by City due to the default of Consultant in the performance of the Services required by this Agreement. 8.4 Waiver. No delay or omission in the exercise of any right or remedy of a non -defaulting party on any default shall impair such right or remedy or be construed as a waiver. City's consent or approval of any act by Consultant requiring City's consent or approval shall not be deemed to waive or render unnecessary City's consent to or approval of any subsequent act of Consultant. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 8.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 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. Last revised April 2015 -10- 50 8.7 Termination Prior To Expiration Of Term. This Section shall govern any termination of this Agreement, except as specifically provided in the following Section 8.9 for termination for cause. City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days' written notice to Consultant. Upon receipt of any notice of termination, Consultant shall immediately cease all Services hereunder except such as may be specifically approved by the Contract Officer. Consultant shall be entitled to compensation for all Services rendered prior to receipt of the notice of termination and for any Services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 8.3. 8.8 Termination for Default of Consultant. If termination is due to the failure of Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 8.2, take over the Services and prosecute the same to completion by contract or otherwise, and Consultant shall be liable to the extent that the total cost for completion of the Services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Consultant for the purpose of setoff or partial payment of the amounts owed City as previously stated in Section 8.3. 8.9 Attorneys' Fees. If either party 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. Last revised April 2015 -11- 51 9.0 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 Consultant, or any successor in interest, in the event or any default or breach by City or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement. 9.2 Conflict of Interest. Consultant 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 Consultant's performance of the Services under this Agreement. Consultant 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. Consultant agrees to at all times avoid conflicts of interest or the 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. Consultant 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. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of 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. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry. 10.0 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 Last revised April 2015 -12- 52 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: Frank Spevacek, City Manager 78-495 Calle Tampico La Quinta, California 92253 To Consultant: BENGAL ENGINEERING, INC. Attention: Scott Onishuk, P.E. Principal In Charge 250 Big Sur Drive Goleta, CA 93117 10.2Interpretation. 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 Consultant 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. Last revised April 2015 -13- 53 10.8 Unfair Business Practices Claims. In entering into this Agreement, Consultant 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 Consultant without further acknowledgment of the parties. 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] Last revised April 2015 -14- 54 IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. CITY UFLADU|NTA, a California municipal corporation FRANKJ. SPEVACEK, City Manager Dated: RAINVINN SUSA0 [NAYSELG, City Clerk, Le Ouinta, California VV|LL|AK4 H. |HRKE, City Attorney City of La [2uinLm, California Name: Soott0niahuk' P.E. Title: Principal In Charge By: Name: Md Wahiduzzaman, P.E. Title: President Two signatures are required if Consultant is corporation. NOTE: CONSULTANT'S SIGNATURES SHALL BE DULY NOTARIZED, AXI APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED B THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES 0 VEGULATIONS APPLICABLE TO CONSULTANT'S BUSINESS ENTITY. I Last revised April 2015 Offil Exhibit A Scope of Services The Consultant's Scope of Work, dated May 5, 2015, is attached and made a part herewith. Last revised April 2015 EXHIBIT A Page 1 of 1 611 Exhibit A SCOPE OF SERVICES May 5, 2015 The following is the proposed scope to assume responsibility of the north Dune Palms Road widening plans. Task 1: Project Management. The Consultant will manage the project by tracking the schedule, budget, QA/QC and value of the products produced. Our Project Management approach is highlighted by an aggressive strategy to identify and pursue those critical, long lead time issues that need to be initiated early in the project development process. Work will include: • Coordination with stakeholders such as the City, Coachella Valley Water District, Private and Public Utilities, etc. • Budget preparation for each task and milestone tracking for the project • Project schedule planning including milestones, project activities and deliverables • Monthly progress reports accompanied by an invoice • Lead monthly project status meeting • Monitoring critical path items in a proactive manner • Monitor long lead items such as CVWD coordination, Utility Relocations, RW acquisition and City review process In addition to the PDT meetings with the project team, we will work hand -in -hand with our Environmental Lead and City Staff, as needed to provide and exchange technical data and environmental input. This proactive relationship will be essential to the success of the project. Task 2: Topographic Base Mapping. Consultant will utilize the existing topographic base map from the prior prepared plans and southern bridge project base files. Due to changes in the project typical section, Consultant will collect field data along the proposed saw cut line of the widening section of the corridor. Task 3: Utility Coordination Consultant will review existing utility data provided in the existing prior prepared plan set, including the pothole log. Consultant will verify utility locations with each utility company in addition to working with each utility who has facilities in conflict with the proposed street improvements. Utility Verification Letter, Conflict Identification and Relocation Letters. Consultant will write Utility Verification letters requesting final verification to clearly identify conflicts with the proposed design. In addition, Consultant will prepare final letters and exhibits denoting required relocations and the requested timing of each relocation. Utility Coordination Documentation. All utility information including project contacts, correspondence dates, meeting minutes and other coordination will be maintained in a three ring binder. The first sheet on the inside cover will contain a matrix of each utility company, contact 157 name, and dates of milestone coordination efforts. A copy of the final utility coordination binder will be provided to the City at the project bidding phase of the project. Task 4: Legal Descriptions and Exhibits Consultant shall prepare up to two (2) Legal Description and Exhibits for one temporary construction easements and one right of way acquisition. Additionally, due to the extension of the acquisitions for the mobile home park site, Consultant will have additional effort on the street easement and TCE legal and exhibits. The temporary construction easements will encompass an area as needed to provide the contractor the sufficient room to perform the anticipated construction activities for the widening project. Consultant shall also fill out the City provided Grant Easement documentation for the City's use during the acquisition process. Task 5: Final Right of Way Services As a result of the proposed improvements and the associated construction activities, it is assumed that various interests, including fee simple and/or temporary easements, will be needed from two (2) parcels. 600-030-010 Chin Family Prop Ltd Partnership Mobile Home Park with SFR. 11.29 Ac. 600-030-019 Church Church 1.82 Ac. Impacts to the mobile home park at the northeast corner of the existing bridge may prove complicated. The current proposed typical section along with the existing structure encroachments into the existing street right of way, will cause the relocation of up to five (5) mobile homes along with the acquisition of additional street right of way along the full frontage of the mobile home site for the proposed improvement project. Separate appraisal reports will be completed for each structure, as well as for the impacted parcel. A separate acquisition case will be opened for the owners of the impacted mobile home coaches. As such, occupants of the structures will necessarily require displacement and relocation assistance, which Consultant will manage and facilitate. Because of the relative complexity of the impacts to this parcel, careful management of multiple appraisal activities, and close communication with several interested parties, will be of utmost importance. Additionally, the Consultant will acquire the necessary interests, both street right of way easement and TCE, from the church parcel north of the mobile home park site (APN 600-030-019). Since the acquisition for this project will occur in the same general timeframe as the bridge project, acquisition services will begin following the approval of the NEPA document of the Federal bridge project. Consultant will implement and manage a comprehensive ROW program to cover all aspects involved in the public acquisition process. In general, this process usually includes project management, fee appraisal, appraisal review, F&E appraisal, title and escrow, environmental, property acquisition, relocation assistance, utility coordination, site clearance and right of way certification. Consultant has the properly licensed, experienced, local resources to provide precise 58 2 staffing levels exactly when needed, and the expertise necessary to secure the remaining ROW for the project. Consultant will develop and implement a formal ROW program in compliance with the applicable City and state policies and procedures. For this project specifically, it is understood that local funding will be used for the acquisition. Consultant will provide overall ROW program management, leadership, and direction of all phases of the right of way process, policies, and scheduling. Right of Way Project Management and Document Support 1. Track and manage all budgetary -related aspects of Consultant's Scope of Work. 2. Assist with the development of administrative policies, procedures, and forms necessary to carry out the initial program. 3. Maintain ongoing general consultation and project coordination with the client, City, and any other project team members as necessary. 4. Provide representation of the client at public meetings, hearings, and litigation related matters. 5. Prepare and present a monthly written status report based on the agreed -upon guidelines regarding information to be provided. Confer weekly with client verbally on general statuses, problem areas, and progress. 6. Participate in up to 4 Project Development Team Meetings to report on acquisition progress. 7. Manage subcontractor and all necessary disciplines needed for the project. 8. Provide quality assurance and quality control for the right of way program and all right of way components. Title Investigation Services — One (1) Preliminary Title Report l . Secure vesting deeds, back up documents, property profiles, and tax maps for each property. 2. Secure preliminary title report which will remain valid for a minimum of 6 months or until there is an ownership change. 3. Secure copies of recorded back-up documents, as needed. 4. Share title information with right of way engineer, surveyor, and appraisers for their use. 5. Prepare list of title exceptions to be cleared; confirm manner of disposition is consistent with approved project plan. 6. Facilitate changes to preliminary title report after the preparation of the legal description, if necessary for partial acquisition. Appraisal Services: Up to six (6) Appraisal Reports (1 parcel, & 5 mobile homes) l . Consultant will mail a notification letter and acquisition policies brochure to the property owner requesting permission to conduct an on -site inspection of the property, advising them of their right to accompany the appraiser at the time of the inspection, and requesting information regarding the property appraised which could influence the appraised value. 2. Appraiser will review title information pertaining to respective ownership and will review drawings and other pertinent information relative to the parcel. 3. Appraiser will inspect the property personally with the owner (if possible) and document the inspection with photographs for use in the report. 4. Appraiser will perform market research to support the selected appraisal methodologies and will document and confirm comparable sales information. 59 3 5. Appraiser will prepare a narrative appraisal report that conforms to the Uniform Standards of Professional Appraisal Practice (USPAP). The appraisal study and report are intended to serve as an acquisition appraisal and will be prepared in a summary format consistent with the specifications for narrative appraisal reports. 6. Consultant will receive and analyze the completed appraisal report accordingly. Negotiate Right of Way Settlement/Prepare Acquisition Documents: (6) Owners (2 parcels & 5 mobile home owner) 1. Establish and maintain a complete and current record file in a form acceptable to the client. 2. Receive and analyze title information, approved appraisal report, and legal description in sufficient detail to negotiate with the property owner and other parties. 3. Prepare offer letter, summary statement, and list of compensable items of fixtures and equipment, in accordance with state or federal regulations and the approval of the client. 4. Present written purchase offer to owner or their representative in person, when possible. Secure receipt of delivery of offer as practical and present and secure tenant information statements, as applicable. 5. Follow-up and negotiate with property owner, as necessary; prepare and submit recommended settlement justification to client for review and approval; review any independent appraisal secured by property owner; and coordinate reimbursement of appraisal fees (up to $5,000) with client. Ongoing negotiations and settlement discussions will continue after the initial offer or until we reach settlement or impasse, as dictated by the overall Project Schedule. 6. Prepare and assemble acquisition contracts, deeds, and related acquisition documents required for the acquisition of all necessary property interests. 7. Maintain a diary report of all contacts made with property owner or representative and a summary of the status of negotiations indicating attitude of owner, problem areas, and other pertinent information. Copies of all applicable written correspondence will be maintained in files. 8. Prepare an impasse letter where, after diligent attempts to settle by negotiation, it appears eminent domain will be needed or prudent to acquire the needed interest. 9. Litigation support: in the event an acquisition is unable to be settled via voluntary means, the negotiations staff will provide a condemnation -ready case file, all relevant negotiations history, and meet with client as needed to provide relevant acquisition content. 10. Transmit executed acquisition documents to client. Each transmittal package shall include a fully executed and properly notarized deed(s), fully executed acquisition contract with attachments, and a brief settlement memorandum which summarizes the pertinent data relative to the transaction. Escrow Coordination If by Negotiated Settlement: Assist the escrow/title company in the following: 1. Open escrow and coordinate execution of closing instructions providing for title insurance coverage at the settlement amount. 2. Provide escrow officer with fully executed acquisition contract and notarized deed. 3. Work in conjunction with escrow officer to facilitate the clearance of title matters as set forth in the settlement memorandum and escrow instructions. 60 4 4. Assist escrow to secure full or partial reconveyance or subordination instruments from lien holders of record. 5. Review settlement statement for accuracy. 6. Coordinate deposit of acquisition price and estimated closing costs with escrow. 7. After the closing, review the title insurance policy for accuracy. 8. Prepare and mail a letter to County Assessor requesting cancellation of taxes if appropriate. Eminent Domain Assistance (if necessary) If Settlement by Eminent Domain: Assist eminent domain counsel with the following: 1. Prepare a letter for the client signature to eminent domain counsel, requesting proceeding to condemnation. 2. Provide eminent domain counsel with available right of way maps and legal descriptions, preliminary title reports and title review documents, and information on how to contact each owner or interest holder. 3. Provide eminent domain counsel with a duplicate copy of the parcel file, together with a copy of the appraisal, offer to purchase, correspondence, acquisition contract, and deed as presented. 4. Convert preliminary title reports to litigation guarantees for eminent domain counsel's use. Title company fees (based on the value of the interest required) are additional. Relocation Plan Preparation Services l . Interview all potentially affected occupants to determine relocation needs. The interviewer will query household information such as: the number, ages and gender of all occupants, income of the household, distance to employment and utilized neighborhood services, special needs of the household, etc. 2. Research the marketplace for available replacement locations and/or establish rent schedules for compiling project costs. 3. Compile statistics on available housing replacement sites. 4. Calculate potential project costs with regard to relocation assistance. 5. Present draft relocation plan to client. 6. Distribute plan to project participants and make it available for public review. 7. Make any needed revisions brought up during the 30-day public review period. 8. Participate in adoption presentation meeting. Relocation Assistance Program Implementation Services (5 residential relocations) 1. Secure basic case information and set up case file; maintain the necessary case documentation and contact diary throughout the course of our involvement with the claimant. 2. Conduct initial in-depth field interview with claimant: document rents, income, family size, names/ages of occupants, and determine relocation needs, preferences and special requirements; provide general information notices and brochure; explain relocation process, rights and benefits available. 3. Provide on -going advisory assistance to minimize hardships on claimants, including referrals to and coordination with community service resources, public housing, and other public services as needed. 4. Document rent with rental agreement, receipts or economic rent if needed. 61 5 5. Document/verify income using pay stubs, budget worksheets, tax returns, certification and/or cash affidavit as necessary. Use rent -to -rent method if income cannot be verified. 6. Create rent schedule for project as appropriate and if authorized by client. 7. Search for and document comparable sites for each claimant, provide initial referrals and three sets of additional housing referrals every 4-6 weeks, as necessary. 8. Prepare letter of eligibility based on most appropriate comparable or rent schedule and seek authorization of client. 9. Deliver letter of eligibility to claimant and discuss findings and impacts to occupants' particular needs. Amend the letter of eligibility one additional time if the economics of the comparable's availability changes over the course of our assignment. 10. Prepare and deliver 90-day notices to vacate no later than 12 weeks after general information notices have been delivered. 11. Arrange for transportation to view replacement sites if needed. Assist Claimants with their selection of a replacement site, with lease offers, with review of rental agreements and with move bids or fixed moving payment. 12. Inspect selected site to ensure it meets decent, safe, and sanitary requirements. 13. Monitor the replacement site escrow and explain the relocation process to agent and escrow officer as necessary. 14. Verify vacation of the displacement site and secure a certificate of abandonment. 15. Determine eligibility for proposed amount of relocation benefits, including actual and reasonable moving payments, rental/purchase differential payments and fixed payments as applicable. 16. For residential moves, secure and process an advance claim to assist with the move and a second final claim incorporating the moving costs and rental/purchase differential payment once family has moved to selected displacement site. 17. Each claim will be signed by the claimant, supported by appropriate back-up (schedules, receipts, etc.) and will be reviewed by Consultant's project manager for recommendation before submitting to client for approval. Each claim check will be delivered to claimant in person (as feasible) and a receipt of payment will be secured. Task 6: Roadway Improvement Plans Consultant will modify the existing 90% improvement plans to accommodate revised street typical section and other noted changes. The improvement plans will include modifying the project title sheet, typical cross sections, construction details, removal and utility relocation plan, horizontal alignment layout plans, vertical profile, signing and striping grading, and cross sections of the proposed roadway improvements and submit to the City for review and comment. The revised improvement plans will also include the addition of a raised median curb. The roadway will be designed in accordance with AASHTO's "A Policy on Geometric Design of Highway and Streets" AASHTO "Guide for the Development of Bicycle Facilities", the "Greenbook" Standard Specifications as well as the City of La Quinta Standards Plans. Consultant will prepare final roadway plans in conformance with the approved preliminary alignment plans and submit to the City for review at 90%, 95% and 100% completion. Mylar plan sheets will be submitted after the approval of the 100% plan submittal package. 62 6 Task 7: Bid Package and Specifications Technical specifications shall be prepared for construction of each item of work in the Project. In addition, Consultant will fill out the bid schedule, matching the item number with their corresponding specification and line item in the Engineer's Estimate. Prior to the publication of the final package, Consultant will review the document. Specifications will be provided starting with the 90% plan submittal. Consultant will prepare the following items for the Bid Document: Project Description including all major work items, working days, liquidated damages based on Caltrans Specifications, contractor submittals prior to mobilization, special traffic control requirements or coordination, all of section 4000, and bid schedule. Task 8: Construction Cost Estimate Starting with the 90% Package Submittal, Consultant shall prepare a Final Quantity and Cost Estimate. The estimate will be submitted with both the 100% and Mylar plan check reviews. Task 9: Services During Bidding Consultant will assist the City with the bidding and award process for this project. These services will be performed on a Time -and -Material basis. Consultant assumes up to 8 hours. The following items may be provided upon request by City staff: • Bid Support. All key team members will be available to attend a pre -bid meeting. • Respond to Inquiries. Consultant will respond to bidder inquiries by phone or email. • Prepare Addenda. Consultant will prepare addenda as requested by the City. • Review/Recommended Award. Consultant will assist in recommendation for award. Task 10: Construction Support Services Consultant will assist project staff with construction support services. A budget amount has been prepared, though this may require adjustment based upon the City's determination of the level of consultant involvement needed during construction. These services will be performed on a Time - and -Material basis. Consultant assumes up to 16 hours. Upon request from City staff the following will be provided by the Consultant: • RFI documentation and response to questions regarding construction documents • Periodic site visits during construction, as requested. • Input from the consultant regarding change orders. • Prepare Record Plans. Task 11: IS/MND Addendum - Updated CEQA Environmental Clearance (OPTIONAL TASK Consultant will prepare an Addendum to the adopted Initial Study/MND dated April of 2010. Fora project, the lead agency can prepare the addendum if there are minor changes in the project scope/description/background information, and the environmental evaluation of the project impacts. The City would adopt the addendum and consider it a part of the original IS/MND in making decisions regarding the project. 63 7 Several changes has occurred in the project information since the adoption of the IS/MND in April 2010. The addendum will update the project information, address the changes, and provide additional information and documentation in support of the decision to adopt the MND. The following are the required changes to the adopted IS/MND: • Project Funding Source; • CIP Funding Schedule; • Anticipated Traffic Conditions; • Right of way requirements addressed in 1969 agreement with Dune Palms Mobile Estates and the City; • Update information in support of the response to comment letter received during the public comment period of the IS/MND of potential environmental impacts; • Revise Dune Palms widening limits; and • Update information regarding the require permits. Consultant will prepare a preliminary Draft Addendum to the adopted IS/MND and provide to the City for review and comments. Following the receipt of the City comments, Consultant shall make the necessary revisions and prepare the final Draft Addendum for the City to review and if found acceptable, the City will notice and circulate the document for review. At the close of the public review period for the Draft Addendum, Consultant will meet with City staff to review any received comments on the Draft Addendum and to discuss potential responses to these comments. Then, Consultant would formulate responses to the comments and submit the response document to the City for review and comment. The City's comments will be incorporated into the Response to Comments document, which will be submitted to City as an appendix to the Final Addendum. Consultant will prepare both a preliminary and Final Addendum for City review and adoption. 64 8 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 Consultant under this Agreement is One Hundred Twenty Three Thousand, Nine Hundred Dollars ($123,900.00) ("Contract Sum"). The Contract Sum shall be paid to Consultant in installment payments made on a monthly basis and in an amount identified in Consultant's schedule of compensation attached hereto for the work tasks performed and properly invoiced by Consultant in conformance with Section 2.2 of this Agreement. Last revised April 2015 EXHIBIT B Page 1 of 1 [-7 Exhibit B FEE May 5, 2015 PROPOSED FEE The following is the proposed Fee to revise and complete the Construction Documents for the North Dune Palms Road Widening plans from the northern project limits of the Dune Palms Road Bridge project to the intersection of Blackhawk Way / Westward Ho Drive. Task Fee 1 - Project Management, Coordination and QA/QC $12,900 2 - Additional topo survey $2,300 3 - Utility Coordination $5,200 4 - Legal and Exhibits $3,400 5 - Right of Way Acquisition $74,100 6 - Modify Improvement Plans $14,800 7 - Bid Package and Specifications $2,600 8 - Cost Estimate $1,800 9 - Services During Bidding $1,200 10 - Construction Support Services $2,400 Optional Task 11 - Update CEQA Environmental Clearance Total $120,700 Reimbursable $3,200 $13,800 M Exhibit C Schedule of Performance Consultant shall complete all services identified in the Scope of Services, Exhibit A of this Agreement, in accordance with the Project Schedule, attached hereto and incorporated herein by this reference. Last revised April 2015 EXHIBIT C Page 1 of 1 [-4 68 o, o o o d a o z C G O U O t O z a a - m` c 0 Q l 9 c Qn V{ d c a l R 3 m m a a ewtl m` � o � w a 4 P w a w etl a o `o 3 m `O a m o G x r � Z 'o a o a m W o-a LU z o-a W m a o Q a J c w N Q Qa LU _ Eo ° o N o cc CAD LU U a w w o $ w o o o o CA l K O :, CA u - a U I: �' w m � w W W Z a '., Ot O - '.... \ m - N - Y o I 0 o o m m o N m w m i..,,F N m o o o n O o o n w ,t N > O p O 2 N = a` c E N O tL a u c W u N O cc LA > 0 c w E O w LA w r. X�II O m m '^ "w LL u Iuo N il�u V w IN u :y Q M. Exhibit D Special Requirements None. Last revised April 2015 EXHIBIT D Page 1 of 1 r` r` 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) $1,000,000 (per occurrence) $2,000,000 (general aggregate) Commercial Auto Liability (at least as broad as ISO CA 0001) $1,000,000 (per accident) Errors and Omissions Liability $1,000,000 (per claim and aggregate) Workers' Compensation (per statutory requirements) Consultant shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, Commercial General Liability insurance against all claims for injuries against persons or damages to property resulting from Consultant's acts or omissions rising out of or related to Consultant's performance under this Agreement. The insurance policy shall contain a severability of interest clause providing that the coverage shall be primary for losses arising out of Consultant's performance hereunder and neither City nor its insurers shall be required to contribute to any such loss. A certificate evidencing the foregoing and naming City and its officers and employees as additional insured (on the Commercial General Liability policy only) shall be delivered to and approved by City prior to commencement of the services hereunder. Consultant shall carry automobile liability insurance of $1,000,000 per accident against all claims for injuries against persons or damages to property arising out of the use of any automobile by Consultant, its officers, any person directly or indirectly employed by Consultant, any subcontractor or agent, or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Consultant's performance under this Agreement. If Consultant or Consultant's employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability coverage for each such person. The term "automobile" includes, but is not limited to, a land motor vehicle, trailer or semi -trailer designed for travel on public roads. The automobile insurance policy shall contain a severability of interest clause providing that coverage shall be Last revised April 2015 EXHIBIT E Page 1 of 6 73 primary for losses arising out of Consultant's performance hereunder and neither City nor its insurers shall be required to contribute to such loss. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the consultant and "Covered Professional Services" as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must "pay on behalf of" the insured and must include a provision establishing the insurer's duty to defend. The policy retroactive date shall be on or before the effective date of this agreement. Consultant shall carry Workers' Compensation Insurance in accordance with State Worker's Compensation laws with employer's liability limits no less than $1,000,000 per accident or disease. Consultant 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, Consultant 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 Consultant'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 Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option: a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. b. Order Consultant to stop work under this Agreement and/or withhold any payment(s) which become due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof. C. Terminate this Agreement. Exercise of any of the above remedies, however, is an alternative to any other remedies City may have. The above remedies are not the exclusive remedies for Consultant's failure to maintain or secure appropriate policies or endorsements. Nothing herein contained shall be construed as limiting in any way the extent to which Consultant may be held responsible for payments of damages to persons or Last revised April 2015 EXHIBIT E Page 2 of 6 74 property resulting from Consultant's or its subcontractors' performance of work under this Agreement. E.3 General Conditions Pertaining to Provisions of Insurance Coverage by Consultant. Consultant and City agree to the following with respect to insurance provided by Consultant: 1. Consultant agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials, employees, and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Consultant also agrees to require all contractors, and subcontractors to do likewise. 2. No liability insurance coverage provided to comply with this Agreement shall prohibit Consultant, or Consultant's employees, or agents, from waiving the right of subrogation prior to a loss. Consultant agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise. 3. All insurance coverage and limits provided by Consultant and available or applicable to this Agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to City or its operations limits the application of such insurance coverage. 4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 5. No liability policy shall contain any provision or definition that would serve to eliminate so-called "third party action over" claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor. 6. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Consultant shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City's protection without City's prior written consent. 7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Consultant's general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is Last revised April 2015 EXHIBIT E Page 3 of 6 75 canceled at any time and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Consultant or deducted from sums due Consultant, at City option. 8. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Consultant or any subcontractor, is intended to apply first and on a primary, non-contributing basis in relation to any other insurance or self-insurance available to City. 9. Consultant agrees to ensure that subcontractors, and any other party involved with the project that is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review. 10. Consultant agrees not to self -insure or to use any self -insured retentions or deductibles on any portion of the insurance required herein (with the exception of professional liability coverage, if required) and further agrees that it will not allow any contractor, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self -insure its obligations to City. If Consultant's existing coverage includes a deductible or self -insured retention, the deductible or self -insured retention must be declared to the City. At that time the City shall review options with the Consultant, which may include reduction or elimination of the deductible or self -insured retention, substitution of other coverage, or other solutions. 11. The City reserves the right at any time during the term of this Agreement to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City will negotiate additional compensation proportional to the increased benefit to City. 12. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. Last revised April 2015 EXHIBIT E Page 4 of 6 76 13. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non-compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard. 14. Consultant will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether or not the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect. 15. Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Consultant's insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to City within five (5) days of the expiration of coverages. 16. The provisions of any workers' compensation or similar act will not limit the obligations of Consultant under this agreement. Consultant expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials, and agents. 17. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive. 18. These insurance requirements are intended to be separate and distinct from any other provision in this Agreement and are intended by the parties here to be interpreted as such. 19. The requirements in this 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. Consultant agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Consultant for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not Last revised April 2015 EXHIBIT E Page 5 of 6 77 the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto. 21. Consultant agrees to provide immediate notice to City of any claim or loss against Consultant arising out of the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. Last revised April 2015 EXHIBIT E Page 6 of 6 78 Exhibit F Indemnification F.1 General Indemnification Provision. a. Indemnification for Professional Liability. When the law establishes a professional standard of care for Consultant's Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend (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 Consultant 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 cause in whole or in part by any negligent or wrongful act, error or omission of Consultant, its officers, agents, employees or subcontractors (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Consultant shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A without the written consent of the Consultant. b. Indemnification for Other Than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, defend (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 Consultant or by any individual or entity for which Consultant is legally liable, including but not limited to officers, agents, employees, or subcontractors of Consultant. F.2 Standard Indemnification Provisions. Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth herein this section from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Last revised April 2015 EXHIBIT F Page 1 of 2 r9:1 Agreement. In the event Consultant fails to obtain such indemnity obligations from others as required herein, Consultant agrees to be fully responsible according to the terms of this 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 herein is binding on the successors, assigns or heirs of Consultant and shall survive the termination of this agreement or this section. a. Indemnity Provisions for Contracts Related to Construction. Without affecting the rights of City under any provision of this agreement, Consultant shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City's active negligence accounts for only a percentage of the liability involved, the obligation of Consultant will be for that entire portion or percentage of liability not attributable to the active negligence of City. b. Indemnification Provision for Design Professionals. 1 . Applicability of Section F.2(b). Notwithstanding Section F.2(a) hereinabove, the following indemnification provision shall apply to Consultants who constitute "design professionals" as the term is defined in paragraph 3 below. 2. Scope of Indemnification. To the fullest extent permitted by law, Consultant shall indemnify, defend (with counsel selected by City), and hold harmless the Indemnified Parties from and against any and all claims, losses, liabilities of every kind, nature and description, damages, injury (including, without limitation, injury to or death of an employee of Consultant or of any subcontractor), costs and expenses of any kind, whether actual, alleged or threatened, including, without limitation, court costs, attorneys' fees, litigation expenses, and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation, that arise out of, pertain to, or relate to, directly or indirectly, in whole or in part, the negligence, recklessness, or willful misconduct of Consultant, any subcontractor, anyone directly or indirectly employed by them or anyone that they control. 3. Design Professional Defined. As used in this Section F.2(b), the term "design professional" shall be limited to licensed architects, registered professional engineers, licensed professional land surveyors and landscape architects, all as defined under current law, and as may be amended from time to time by Civil Code § 2782.8. Last revised April 2015 EXHIBIT F Page 2 of 2 80 0 0 a o � w a a- w o Z O W 7f ddd O — W �' '` �'" IIIIIIII IIIIIIII � 03NM0 J.110..,.` . — uiilllVuuuul a ;;�,>i o . LZO 020 — 009 N , 6 LO - 6...,w .... C0 009 "IIIIIIII RM IIIII��°I ol w Ia :: IIIIIIII O .� ININ[:i:Nd III;lN � IIIIIIII � 'V/V y bopS.......s[F.: �1?7 J o IIIIIIII o `w Q Iol N3 0 � SZ L Dda66 ��kg � r uuuuuuul uuuuuuul uuuuuuul uuuuuuul o '00Z CITY / SA / HA / FA MEETING DATE: June 2, 2015 ITEM TITLE: APPROVE SPECIFICATIONS AND ENGINEER'S ESTIMATE AND ADVERTISE FOR BIDS THE FISCAL YEAR 2015/2016 SLURRY SEAL PROGRAM RECOMMENDED ACTION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: 5 STUDY SESSION: PUBLIC HEARING: Approve the specifications and engineer's estimate and authorize staff to advertise for bids the Fiscal Year 2015/2016 Slurry Seal Program under the Pavement Management Plan Street Improvements. EXECUTIVE SUMMARY: • As part of the five-year Pavement Management Program (PMP), the City routinely re -conditions streets with an oil and sand mixture (slurry seal) to extend the life of the pavement. • The specifications and estimate for the Fiscal Year 2015/2016 Slurry Seal Program are complete and available for review in the Public Works Department. • Since the PMP is designed to maximize the service life of the City's street system and the designated streets have been identified in the PMP for this year's slurry seal treatment, staff recommends approving this project for advertisement for construction bids. FISCAL IMPACT: The PMP is included within the 2015/2016 Capital Improvement Program (CIP) and is budgeted to receive $1,000,000 from the City's General Fund. The PMP expenditure is necessary in order to meet the City's Maintenance of Effort of $937,007 annually from the General Fund, which allows the City to receive its share of Measure A half -cent 83 sales tax proceeds. Based on the engineer's estimate, the project construction will cost approximately $880,000. The remaining funds will be used to cover soft costs; including design, inspection, City administration, and contingency. BACKGROUND/ANALYSIS: The five-year Pavement Management Update Report, last updated in August 2012, provides an inventory of City roadways including current conditions, roadway preservation needs, and a roadway improvement funding schedule. During Fiscal Year 2015/2016, the PMP identified slurry and crack sealing of certain streets in north La Quinta (Attachment 1). Contingent upon City Council's approval, the following is the project schedule: City Council Bid Authorization June 2, 2015 Advertise Project for Bids June 3 through July 2, 2015 Council Considers Project Award Execute Contract and Mobilize Construction (40 working days) Accept Improvements ALTERNATIVES: July 7, 2015 July 8 through July 29, 2015 August through September 2015 October 2015 Since the PMP has designated certain streets for slurry seal and the work can best be done during summer months when there is less disruption to motorists and residents, no alternative is recommended. Report prepared by: Ed Wimmer, P.E., Principal Engineer Report approved for submission by: Timothy R. Jonasson, P.E. Public Works Director/City Engineer Attachment: 1. Slurry Seal Location Map 84 1 r U LL I--:, C) 11. -j < co z LU (D Lli IN fer so n C) Tdf 4 �a C OF CITY / SA / HA / FA MEETING DATE: June 2, 2015 AGENDA CATEGORY: ITEM TITLE: APPROVE PROFESSIONAL SERVICES BUSINESS SESSION: AGREEMENT WITH PSOMAS FOR CONSTRUCTION CONSENT CALENDAR: 6 INSPECTION SERVICES STUDY SESSION: PUBLIC HEARING: RECOMMENDED ACTION: Approve a Professional Services Agreement with PSOMAS, in an amount not to exceed $466,000, to provide construction inspection services. EXECUTIVE SUMMARY: • The City relies on consultant inspection services to augment staff when several capital projects are under construction simultaneously, and to supplement staff inspection on private development projects. • Since 2006, the City has relied on PSOMAS for these services. Their contract will end on June 30, 2015. • The City solicited and received proposals for consultant inspection services and staff recommends that PSOMAS continue to be retained through the approval of the attached Professional Services Agreement (PSA). • Under the proposed PSA, the City will pay for consultant inspection services on an as -needed basis and can reduce the inspection hours as necessary should the pace of construction projects decrease. • The PSA will allow staff to perform their non -inspection related duties without reducing the level of inspection required for public and private development projects. FISCAL IMPACT: These inspection services will be billed at $112 per hour (prevailing wage) for a not -to - exceed amount of $466,000. The cost for City capital project inspection services ($233,000) is included in each capital project budget. Private project 87 inspection service costs ($233,000) are budgeted in the Engineering Services Division of the City's Fiscal Year 2015/2016 budget. BACKGROUND/ANALYSIS: Public Works staff inspects all private development on -site and off -site infrastructure improvements and City capital projects. There are numerous upcoming City construction projects that will require on -going inspection to ensure they are completed on time and on budget such as: • Washington Street Pavement Rehabilitation • Civic Center Campus Parkway Turf Conversion • Adams Street at Corporate Center Drive Median and Traffic Signal • Library Renovation Projects • Landscaping of City -Owned Lots on Avenue 52 • Avenue 52 at Jefferson Street Roundabout Striping Modification • Citywide Advanced Transportation Management System (Coachella Valley Association of Governments) • Citywide Traffic Signal Interconnect (Coachella Valley Association of Governments) • Point Happy Storm Drain Outlet Structure Given the number of capital projects combined with increased private development activity inspections, staff recommends continuing to augment its inspection staff with private inspectors. PSOMAS has performed consultant construction inspection for the City since 2006. In the summer of 2014, the City issued a request for proposals for construction inspection services and PSOMAS was unanimously selected by the consultant selection committee. Jim Peters and Gregory Curdes of PSOMAS, who are currently working for the City as consultant construction inspectors, are local and have firsthand knowledge of the City's operations. The cost of their services is at or below the cost of comparable firms. Given PSOMAS' positive track record and the need for continuity on public and private construction projects currently underway, staff recommends approval of this PSA with PSOMAS. ALTERNATIVES: Due to the continued demand for City construction inspection on private development as well as the City's capital projects and the superior service provided by PSOMAS, staff does not recommend an alternative action. Report prepared by: Ed Wimmer, P.E., Principal Engineer Report approved for submission by: Timothy R. Jonasson, P.E. Public Works Director/City Engineer Attachment: 1. PSA 88 ATTACHMENT 1 PROFESSIONAL SERVICES AGREEMENT THIS PROFESSIONAL SERVICES AGREEMENT (the "Agreement") is made and entered into by and between the CITY OF LA QUINTA, ("City"), a California municipal corporation, and PSOMAS ("Consultant"). The parties hereto agree as follows: 1.0 SERVICES OF CONSULTANT 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide those services related to On Call Construction Inspection Services as specified in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by this reference (the "Services"). Consultant represents and warrants that Consultant is a provider of first-class services and Consultant is experienced in performing the Services contemplated herein and, in light of such status and experience, Consultant covenants that it shall follow the highest professional standards in performing the Services required hereunder. For purposes of this Agreement, the phrase "highest professional 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 Licenses, Permits, Fees and Assessments. Except as otherwise specified herein, Consultant shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of the Services required by this Agreement, including a City of La Quinta business license. Consultant 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. Consultant shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the performance of the Services required by this Agreement, and shall indemnify, defend (with counsel selected by City), and hold City, its elected officials, officers, employees, and agents, free and harmless against any such fees, assessments, taxes, penalties, or interest levied, assessed, or imposed against City hereunder. Consultant shall be responsible for all subcontractors' compliance with this Section. 1.4 Familiarity with Work. By executing this Agreement, Consultant warrants that (a) it has thoroughly investigated and considered the Services to be Last revised April 2015 89 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 Consultant discover any latent or unknown conditions materially differing from those inherent in the Services or as represented by City, Consultant shall immediately inform City of such fact and shall not proceed except at Consultant's risk until written instructions are received from the Contract Officer (as defined in Section 4.2 hereof). 1.5 Standard of Care. Consultant acknowledges and understands that the Services contracted for under this Agreement require specialized skills and abilities and that, consistent with this understanding, Consultant's work will be held to a heightened standard of quality. Consistent with Section 1.4 hereinabove, Consultant represents to City that it holds the necessary skills and abilities to satisfy the heightened standard of quality as set forth in this Agreement. Consultant shall adopt reasonable methods during the life of this Agreement to furnish continuous protection to the Services performed by Consultant, and the equipment, materials, papers, and other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the Services by City, except such losses or damages as may be caused by City's own negligence. The performance of Services by Consultant shall not relieve Consultant from any obligation to correct any incomplete, inaccurate, or defective work at no further cost to City, when such inaccuracies are due to the negligence of Consultant. 1.6 Additional Services. In accordance with the terms and conditions of this Agreement, Consultant shall perform services in addition to those specified in the Scope of Services ("Additional Services") only when directed to do so by the Contract Officer, provided that Consultant shall not be required to perform any Additional Services without compensation. Consultant shall not perform any Additional Services until receiving prior written authorization from the Contract Officer, 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 Consultant. It is expressly understood by Consultant 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 Consultant to secure the Contract Officer'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 Last revised April 2015 -2- 90 Contract Officer. Compensation for properly authorized Additional Services shall be made in accordance with Section 2.3 of this Agreement. 1.7 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in Exhibit "D" (the "Special Requirements"), 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. 2.0 COMPENSATION 2.1 Contract Sum. For the Services rendered pursuant to this Agreement, Consultant shall be compensated in accordance with Exhibit "B" (the "Schedule of Compensation") at a flat rate of $112 per hour prevailing wage for a Construction Inspector, with a not to exceed amount of Four Hundred Sixty -Six Thousand Dollars ($466,000) including base pay, overhead, and fee, and other direct costs to include vehicle, cell phone, digital camera, digital weather monitoring device and digital smart level. The City shall not pay an additional hourly wage for hours worked over 8 per day nor over 40 per week. The above fees are valid for all on - call construction inspection services. PSOMAS Sub -Contract Inspectors Jim Peters and Gregory Curdes will be assigned to the City. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment in accordance with the percentage of completion of the Services, payment for time and materials based upon Consultant's rate schedule, but not exceeding the Contract Sum, or such other methods as may be specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Consultant at all project meetings reasonably deemed necessary by City; Consultant 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 compensation set forth in the Schedule of Compensation, Consultant's overall compensation shall not exceed the Contract Sum, except as provided in Section 1.6 of this Agreement. 2.2 Method of Billing. Any month in which Consultant wishes to receive payment, Consultant shall submit to City no later than the tenth (10th) working day of such month, in the form approved by City's Finance Director, an invoice for Services rendered prior to the date of the invoice. Such invoice shall (1) describe in detail the Services provided, including time and materials, and (2) specify each staff member who has provided Services and the number of hours assigned to each such staff member. Such invoice shall contain a certification by a principal member of Consultant specifying that the payment requested is for Last revised April 2015 -3- 91 Services performed in accordance with the terms of this Agreement. Subject to retention pursuant to Section 8.3, City will pay Consultant 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 pursuant to Section 1.6 of this Agreement shall be paid for in an amount agreed to in writing by both City and Consultant in advance of the Additional Services being rendered by Consultant. Any compensation for Additional Services amounting to five percent (5%) or less of the Contract Sum may be approved by the Contract Officer. Any greater amount of compensation for Additional Services must be approved by the La Quinta City Council. Under no circumstances shall Consultant receive compensation for any Additional Services unless prior written approval for the Additional Services is obtained from the Contract Officer pursuant to Section 1 .6 of this Agreement. 3.0 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 time period specified in the Schedule of Performance may be approved in writing by the Contract Officer. 3.3 Force Majeure. The time period specified in the Schedule of Performance for performance of the Services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant, including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than City, and unusually severe weather, if Consultant shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the Services for the period of the forced delay when and if in his or her judgment such delay is justified, and the Contract Officer's determination shall be final and conclusive upon the parties to this Agreement. Extensions to time period in the Schedule of Performance which are determined by the Contract Officer to be justified pursuant to this Section shall Last revised April 2015 -4- 92 not entitle the Consultant to additional compensation in excess of the Contract Sum. 3.4 Term. Unless earlier terminated in accordance with Sections 8.8 or 8.9 of this Agreement, the term of this agreement shall commence on July 1, 2015 and terminate on June 30, 2016 ("Initial Term"). This Agreement may be extended for two (2) additional year(s) upon mutual agreement by both parties ("Extended Term"). The extended term shall commence automatically, with no further action or amendment to this Agreement required, unless, with or without cause, and upon no less than thirty (30) days' written notice to Consultant ("notice of non - renewal"), City notifies Consultant that this Agreement shall expire prior to the commencement of the applicable extended term. 4.0 COORDINATION OF WORK 4.1 Representative of Consultant. The following principals of Consultant ("Principals") are hereby designated as being the principals and representatives of Consultant authorized to act in its behalf with respect to the Services specified herein and make all decisions in connection therewith: a. Reuben Tolentino, Vice President E-mail: rtol-entin_o_@pso_mas_.com It is expressly understood that the experience, knowledge, capability, and reputation of the foregoing Principals were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing Principals shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the Services hereunder. For purposes of this Agreement, the foregoing Principals may not be changed by Consultant 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" shall be Timothy R. Jonasson, Public Works Director/City Engineer or such other person as may be designated in writing by the City Manager of City. It shall be Consultant's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the Services, and Consultant shall refer any decisions, that must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. The Contract Officer 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 Consultant, its principals, and its Last revised April 2015 -5- 93 employees were a substantial inducement for City to enter into this Agreement. Except as set forth in this Agreement, Consultant shall not contract with any other entity to perform in whole or in part the Services required hereunder without the express written approval of City. In addition, neither this Agreement nor any interest herein may be 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 Consultant, taking all transfers into account on a cumulative basis. Any attempted or purported assignment or contracting by Consultant without City's express written approval shall be null, void, and of no effect. No approved transfer shall release Consultant 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 Consultant, its agents, or its employees, perform the Services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge, supervision, or control of Consultant's employees, servants, representatives, or agents, or in fixing their number or hours of service. Consultant shall perform all Services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Consultant in its business or otherwise or a joint venturer or a member of any joint enterprise with Consultant. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. Except for the Contract Sum paid to Consultant as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Consultant 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, Consultant 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. Consultant agrees to pay all required taxes on amounts paid to Consultant 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 Last revised April 2015 -6- 94 by this Agreement. Consultant shall fully comply with the workers' compensation laws regarding Consultant and Consultant's employees. Consultant further agrees to indemnify and hold City harmless from any failure of Consultant to comply with applicable workers' compensation laws. City shall have the right to offset against the amount of any payment due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant's failure to promptly pay to City any reimbursement or indemnification arising under this Section. 4.5 Identity of Persons Performing Work. Consultant 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. Consultant represents that the Services required herein will be performed by Consultant or under its direct supervision, and 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 Consultant 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 Consultant only from or through action by City. 5.0 INSURANCE 5.1 Insurance. Prior to the beginning of any Services under this Agreement and throughout the duration of the term of this Agreement, Consultant 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. 6.0 INDEMNIFICATION. 6.1 Indemnification. To the fullest extent permitted by law, Consultant 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. 7.0 RECORDS AND REPORTS. 7.1 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning Consultant's performance of the Services required by this Agreement as the Contract Officer shall require. Consultant hereby acknowledges that City is greatly concerned about the cost of the Services to be performed pursuant to this Agreement. For this reason, Consultant agrees that if Last revised April 2015 -7- 95 Consultant 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 Consultant is providing design services, the cost of the project being designed, Consultant shall promptly notify the Contract Officer of said fact, circumstance, technique, or event and the estimated increased or decreased cost related thereto and, if Consultant is providing design services, the estimated increased or decreased cost estimate for the project being designed. 7.2 Records. Consultant 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 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 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 Consultant's business, custody of the Books and Records may be given to City, and access shall be provided by Consultant'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 Consultant, 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 upon the expiration or termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the Documents and Materials hereunder. Any use, reuse or assignment of such completed Documents and Materials for other projects and/or Last revised April 2015 -8- 96 use of uncompleted documents without specific written authorization by Consultant will be at City's sole risk and without liability to Consultant, and Consultant's guarantee and warranties shall not extend to such use, revise, or assignment. Consultant may retain copies of such Documents and Materials for its own use. Consultant 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 Consultant fails to secure such assignment, Consultant shall indemnify City for all damages resulting therefrom. In the event City or any person, firm, or corporation authorized by City reuses said Documents and Materials without written verification or adaptation by Consultant for the specific purpose intended and causes to be made or makes any changes or alterations in said Documents and Materials, City hereby releases, discharges, and exonerates Consultant from liability resulting from said change. The provisions of this clause shall survive the termination or expiration of this Agreement and shall thereafter remain in full force and effect. 7.4 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. Consultant 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. Consultant represents and warrants that Consultant has the legal right to license any and all of the Documents and Materials. Consultant makes no such representation and warranty in regard to the Documents and Materials which were prepared by design professionals other than Consultant or provided to Consultant 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. 7.5 Release of Documents. The Documents and Materials shall not be released publicly without the prior written approval of the Contract Officer or as required by law. Consultant shall not disclose to any other entity or person any information regarding the activities of City, except as required by law or as authorized by City. 8.0 ENFORCEMENT OF AGREEMENT. 8.1 California Law. This Agreement shall be 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 Last revised April 2015 -9- 97 appropriate court in such county, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 8.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer; provided that if the default is an immediate danger to the health, safety, 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 Section 8.8. During the period of time that Consultant 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. 8.3 Retention of Funds. City may withhold from any monies payable to Consultant sufficient funds to compensate City for any losses, costs, liabilities, or damages it reasonably believes were suffered by City due to the default of Consultant in the performance of the Services required by this Agreement. 8.4 Waiver. No delay or omission in the exercise of any right or remedy of a non -defaulting party on any default shall impair such right or remedy or be construed as a waiver. City's consent or approval of any act by Consultant requiring City's consent or approval shall not be deemed to waive or render unnecessary City's consent to or approval of any subsequent act of Consultant. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 8.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 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, Last revised April 2015 -10- 98 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 8.9 for termination for cause. City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days' written notice to Consultant. Upon receipt of any notice of termination, Consultant shall immediately cease all Services hereunder except such as may be specifically approved by the Contract Officer. Consultant shall be entitled to compensation for all Services rendered prior to receipt of the notice of termination and for any Services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 8.3. 8.8 Termination for Default of Consultant. If termination is due to the failure of Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 8.2, take over the Services and prosecute the same to completion by contract or otherwise, and Consultant shall be liable to the extent that the total cost for completion of the Services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Consultant for the purpose of setoff or partial payment of the amounts owed City as previously stated in Section 8.3. 8.9 Attorneys' Fees. If either party 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. Last revised April 2015 -11- 99 9.0 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 Consultant, or any successor in interest, in the event or any default or breach by City or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement. 9.2 Conflict of Interest. Consultant 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 Consultant's performance of the Services under this Agreement. Consultant 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. Consultant agrees to at all times avoid conflicts of interest or the 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. Consultant 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. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of 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. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry. 10.0 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 Last revised April 2015 -12- 100 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: Frank Spevacek, City Manager 78-495 Calle Tampico La Quinta, California 92253 To Consultant: PSOMAS Attention: Reuben Tolentino Vice President 1500 Iowa Avenue, Ste. 210 Riverside, CA 92507 10.2Interpretation. 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 Consultant 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. Last revised April 2015 -13- 101 10.8 Unfair Business Practices Claims. In entering into this Agreement, Consultant 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 Consultant without further acknowledgment of the parties. 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] Last revised April 2015 -14- 102 IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. CITY OF LA QUINTA, a California municipal corporation FRANK J. SPEVACEK, City Manager Dated: SUSAN MAYSELS, City Clerk, La Quinta, California WILLIAM H. IHRKE, City Attorney City of La Quinta, California CONSULTANT: By: Name: Reuben Tolenfino Principaffice President Title: May 27, 2015 Dated: By: Name: Title: Dated: Two signatures are required if Consultant is a corporation. • CONSULTANT'S SIGNATURES SHALL BE DULY NOTARIZED, AN APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED B THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES 0 REGULATIONS APPLICABLE TO CONSULTANT'S BUSINESS ENTITY. Last revised April 2015 -15- 103 fUL! Exhibit A Scope of Services The Consultant shall provide "on call" services as follows: • CONSTRUCTION INSPECTORS — provide qualified technical field representatives to monitor the construction of a variety of public works capital improvement and private development construction projects. Must be able to work evening/night shifts as necessary to provide coverage. • Prepare and track project schedules as directed by the City. • As directed by the City, prepare correspondence, reports, and memos necessary to administer various City capital improvement projects and/or private development projects. • Observe, photograph, document and report on project progress, daily construction activities, assume the City's role and act as the City's agent with contractors, developers, other outside agencies and with City contracted technical consultants. Prevailing Wage (if required) - In accordance with Section 1770 of the Labor Code, the City has ascertained and does hereby specify that the prevailing wage rates shall be those provided in Article 1110-20.0, WAGE RAGES. The said rates shall include all employer payments that are required by Section 1773. 1 of the Labor Code. The City will furnish to the Contractor, upon request, a copy of such prevailing rates. It shall be the duty of the Contractor to post a copy of such prevailing wages at the job site. Last revised April 2015 EXHIBIT A Page 1 of 1 IU1 Exhibit B Schedule of Compensation Payment shall be on a "Fixed Fee" basis in accordance with the Consultants Schedule of Compensation attached herewith for the work tasks performed in conformance with Section 2.2 of the Agreement. Total compensation for all work under this contract shall not exceed Four Hundred Sixty -Six Thousand Dollars ($466,000) except as specified in Section 1.6 - Additional Services of the Agreement. The agreed upon hourly rate for qualified construction inspection personnel provided by the Consultant shall be $1 12 per hour flat rate prevailing wage for Construction Inspection Services for all time periods. The City shall not pay any additional hourly wage for hours worked over 8 hours per day nor over 40 hours per week. Compensable time shall begin when the inspector arrives at the designated work site and shall end when the inspector leaves the designated work site to commute or stops conducting business associated to the City. Last revised April 2015 EXHIBIT B Page 1 of 1 `uz Exhibit C Schedule of Performance Consultants Project Schedule shall provide services on a full-time basis for beginning July 1, 2015 through June 30, 2016 (initial term), and upon mutual agreement by both parties, the term of this agreement may be extended for up to two (2) additional 1-year terms (extended terms). Last revised April 2015 EXHIBIT C Page 1 of 1 I M M Exhibit D Special Requirements AT NO ADDITIONAL COST TO THE CITY: 1. The consultant shall provide a cellular telephone and service compatible with the City's cellular phone service for each inspector assigned to the City. 2. The consultant shall provide the latest IPad which will be uploaded with the City's permit tracking software. 3. The consultant shall provide a hand held digital "smart level", one for each inspector, calibrated for use in the performance of the inspector's duties to determine percent of slope of inspected horizontal surfaces for compliance with various design guidelines. 4. The consultant shall provide each inspector a "digital" camera for daily photographic documentation. The City shall provide the necessary means of printing and downloading of digital photos for archive purposes. Said camera shall have "date back" capability and of sufficient mega pixel resolution to review relevant details of the work inspected. 5. The consultant shall provide each inspector with a hand held digital weather monitoring device. The device shall provide site -specific data of wind speed, ambient temperature and relative humidity, all data to be recorded in inspector's daily report. 6. The consultant shall insure that each inspector has successfully completed the "Coachella Valley Fugitive Dust Control Class" provided by the South Coast Air Quality Monitoring District and renewed every two years. 7. The consultant shall provide his or her own transportation to and from the designated works site. AT NO ADDITIONAL COST TO THE CONSULTANT: 8. The City shall make available office equipment (i.e. fax, copier, land- based telephone service) for use by consultant's inspectors in carrying out City business under this agreement. Last revised April 2015 EXHIBIT D Page 1 of 1 IW- 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) $1,000,000 (per occurrence) $2,000,000 (general aggregate) Commercial Auto Liability (at least as broad as ISO CA 0001) $1,000,000 (per accident) Errors and Omissions Liability $1,000,000 (per claim and aggregate) Workers' Compensation (per statutory requirements) Consultant shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, Commercial General Liability insurance against all claims for injuries against persons or damages to property resulting from Consultant's acts or omissions rising out of or related to Consultant's performance under this Agreement. The insurance policy shall contain a severability of interest clause providing that the coverage shall be primary for losses arising out of Consultant's performance hereunder and neither City nor its insurers shall be required to contribute to any such loss. A certificate evidencing the foregoing and naming City and its officers and employees as additional insured (on the Commercial General Liability policy only) shall be delivered to and approved by City prior to commencement of the services hereunder. Consultant shall carry automobile liability insurance of $1,000,000 per accident against all claims for injuries against persons or damages to property arising out of the use of any automobile by Consultant, its officers, any person directly or indirectly employed by Consultant, any subcontractor or agent, or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Consultant's performance under this Agreement. If Consultant or Consultant's employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability coverage for each such person. The term "automobile" includes, but is not limited to, a land motor vehicle, trailer or semi -trailer designed for travel on public roads. The automobile insurance policy shall contain a severability of interest clause providing that coverage shall be Last revised April 2015 EXHIBIT E Page 1 of 6 109 primary for losses arising out of Consultant's performance hereunder and neither City nor its insurers shall be required to contribute to such loss. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the consultant and "Covered Professional Services" as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must "pay on behalf of" the insured and must include a provision establishing the insurer's duty to defend. The policy retroactive date shall be on or before the effective date of this agreement. Consultant shall carry Workers' Compensation Insurance in accordance with State Worker's Compensation laws with employer's liability limits no less than $1,000,000 per accident or disease. Consultant 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, Consultant 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 Consultant'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 Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option: a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. b. Order Consultant to stop work under this Agreement and/or withhold any payment(s) which become due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof. C. Terminate this Agreement. Exercise of any of the above remedies, however, is an alternative to any other remedies City may have. The above remedies are not the exclusive remedies for Consultant's failure to maintain or secure appropriate policies or endorsements. Nothing herein contained shall be construed as limiting in any way the extent to which Consultant may be held responsible for payments of damages to persons or Last revised April 2015 EXHIBIT E Page 2 of 6 110 property resulting from Consultant's or its subcontractors' performance of work under this Agreement. E.3 General Conditions Pertaining to Provisions of Insurance Coverage by Consultant. Consultant and City agree to the following with respect to insurance provided by Consultant: 1 . Consultant agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials, employees, and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Consultant also agrees to require all contractors, and subcontractors to do likewise. 2. No liability insurance coverage provided to comply with this Agreement shall prohibit Consultant, or Consultant's employees, or agents, from waiving the right of subrogation prior to a loss. Consultant agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise. 3. All insurance coverage and limits provided by Consultant and available or applicable to this Agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to City or its operations limits the application of such insurance coverage. 4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 5. No liability policy shall contain any provision or definition that would serve to eliminate so-called "third party action over" claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor. 6. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Consultant shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City's protection without City's prior written consent. 7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Consultant's general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is Last revised April 2015 EXHIBIT E Page 3 of 6 111 canceled at any time and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Consultant or deducted from sums due Consultant, at City option. 8. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Consultant or any subcontractor, is intended to apply first and on a primary, non-contributing basis in relation to any other insurance or self-insurance available to City. 9. Consultant agrees to ensure that subcontractors, and any other party involved with the project that is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review. 10. Consultant agrees not to self -insure or to use any self -insured retentions or deductibles on any portion of the insurance required herein (with the exception of professional liability coverage, if required) and further agrees that it will not allow any contractor, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self -insure its obligations to City. If Consultant's existing coverage includes a deductible or self -insured retention, the deductible or self -insured retention must be declared to the City. At that time the City shall review options with the Consultant, which may include reduction or elimination of the deductible or self -insured retention, substitution of other coverage, or other solutions. 11. The City reserves the right at any time during the term of this Agreement to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City will negotiate additional compensation proportional to the increased benefit to City. 12. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. Last revised April 2015 EXHIBIT E Page 4 of 6 112 13. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non-compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard. 14. Consultant will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether or not the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect. 15. Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Consultant's insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to City within five (5) days of the expiration of coverages. 16. The provisions of any workers' compensation or similar act will not limit the obligations of Consultant under this agreement. Consultant expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials, and agents. 17. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive. 18. These insurance requirements are intended to be separate and distinct from any other provision in this Agreement and are intended by the parties here to be interpreted as such. 19. The requirements in this 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. Consultant agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Consultant for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not Last revised April 2015 EXHIBIT E Page 5 of 6 113 the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto. 21. Consultant agrees to provide immediate notice to City of any claim or loss against Consultant arising out of the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. Last revised April 2015 EXHIBIT E Page 6 of 6 ISE Exhibit F Indemnification F.1 General Indemnification Provision. a. Indemnification for Professional Liability. When the law establishes a professional standard of care for Consultant's Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend (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 Consultant 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 cause in whole or in part by any negligent or wrongful act, error or omission of Consultant, its officers, agents, employees or subcontractors (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Consultant shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A without the written consent of the Consultant. b. Indemnification for Other Than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, defend (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 Consultant or by any individual or entity for which Consultant is legally liable, including but not limited to officers, agents, employees, or subcontractors of Consultant. F.2 Standard Indemnification Provisions. Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth herein this section from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. In the event Consultant fails to obtain such indemnity obligations from Last revised April 2015 EXHIBIT F Page 1 of 2 115 others as required herein, Consultant 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 herein is binding on the successors, assigns or heirs of Consultant and shall survive the termination of this agreement or this section. a. Indemnity Provisions for Contracts Related to Construction. Without affecting the rights of City under any provision of this agreement, Consultant shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City's active negligence accounts for only a percentage of the liability involved, the obligation of Consultant will be for that entire portion or percentage of liability not attributable to the active negligence of City. Last revised April 2015 EXHIBIT F Page 2 of 2 116 F CITY / SA / HA / FA MEETING DATE: June 2, 2015 AGENDA CATEGORY: ITEM TITLE: APPROVE INVESTMENT ADVISORY BOARD BUSINESS SESSION: WORK PLAN FOR FISCAL YEAR 2015/2016 CONSENT CALENDAR: 7 STUDY SESSION: PUBLIC HEARING: RECOMMENDED ACTION: Approve the Investment Advisory Board Work Plan for Fiscal Year 2015/2016. EXECUTIVE SUMMARY: • Each year, the City's Boards and Commissions review their current work plans in order to provide an opportunity for potential modifications to the existing plans. • The Investment Advisory Board's (IAB) current work plan reflects five principal functions as set forth in the City's Municipal Code. • The IAB has elected to meet on a quarterly, rather than monthly, basis beginning July 1, 2015. FISCAL IMPACT: None. BACKGROUND/ANALYSIS: The five principal functions of the IAB are as follows: • Review the City's investment policy annually and recommend appropriate changes. • Review monthly treasury report, noting compliance with the investment policy and adequacy of cash and investments for anticipated obligations. "rA Receive and consider other reports provided by the City Treasurer. • Meet with the independent auditor after completion of the City's annual audit and receive and consider the auditor's comments on procedures, internal controls, and findings for cash and investment activities. • Serve as a resource for the City Treasurer on matters such as proposed investments, internal controls, use or change of financial institutions, custodians, brokers and dealers. Additionally, the IAB has elected to meet on a quarterly, rather than monthly, basis beginning July 1, 2015. The City's Municipal Code states that the IAB will meet monthly unless the Board, with Council concurrence, believes less frequent meetings are sufficient. Over the years, the IAB has developed extensive guidelines and requirements for the City Treasurer to follow. These guidelines, along with stringent State requirements, provide the daily direction needed for the City Treasurer to make investment decisions. in this low interest rate market, the data on the monthly Treasurer's Report does not change radically month to month; therefore, meeting on a quarterly basis should not present significant challenges. The IAB may meet more frequently should the need arise (for example, to deal with a specific urgent issue that needs to be addressed, or to work on a special project assigned by the City Council). ALTERNATIVES: ►=0 Report prepared by: Rita Conrad, Finance Director Report approved for submission by: Frank J. Spevacek, City Manager CITY / SA / HA / FA MEETING DATE: June 2, 2015 AGENDA CATEGORY: BUSINESS SESSION: ITEM TITLE: APPROVE PROFESSIONAL SERVICES AGREEMENT WITH TRAFFEX ENGINEERS, INC. FOR CONSENT CALENDAR: 8 CONTRACT TRAFFIC ENGINEER SERVICES STUDY SESSION: PUBLIC HEARING: RECOMMENDED ACTION: Approve a Professional Services Agreement with Traffex Engineers, Inc., in an amount not to exceed $218,400, for contract traffic engineer services and authorize the City Manager to execute the agreement. EXECUTIVE SUMMARY: • Traffex Engineers, Inc. has been the City's traffic engineering firm since 2003, providing traffic operations, traffic signal system design, and traffic review of development projects for the City. • The City's Professional Services Agreement (PSA) with Traffex Engineers expires on June 30, 2015. • After soliciting and receiving proposals from similar firms, staff recommends entering into a new contract with Traffex Engineers due to their superior past performance and extensive knowledge of the City's transportation system. • The proposed PSA (Attachment 1) would be for a period of one year, from July 1, 2015 through June 30, 2016, with an automatic renewal for two additional one-year terms, unless either party cancels the contract. FISCAL IMPACT: This contract is for an hourly rate of $165 with a not -to -exceed amount of $218,400, which is included in the proposed Fiscal Year 2015/2016 budget. Additional office hours, if needed, will be at the same hourly rate. ifs BACKGROUND/ANALYSIS: Nazir Lalani, President of Traffex Engineers, has been the City's contract Traffic Engineer since 2003. Mr. Lalani provides the expertise for planning and operations not possessed by staff. The City elects to contract for this service in order to gain this expertise on an on -call basis versus retaining a full-time employee, and to benefit from Mr. Lalani's insight performing similar services for neighboring agencies. In April 2015, staff conducted a formal Request for Proposals process, and received proposals from Wilson & Company and Traffex Engineers, Inc. The limited response is indicative of the small number of firms that provide these services in the Coachella Valley. Staff has reviewed both proposals and Traffex Engineers Inc. was ranked number one. Traffex Engineers also provides transportation engineering for several local entities including the cities of Palm Desert, Rancho Mirage and Indian Wells, as well as the Coachella Valley Association of Governments. The firm's experience with these agencies assists the City of La Quinta in better coordinating traffic flows and control with adjoining communities. Traffex Engineers is requesting an increase in their hourly rates from $145 to $165 to match current market rates for similar services. At the request of the City, Traffex decreased its rate from $155 per hour in 2009 to $145 per hour, which has remained in effect until now. After reviewing this rate for similar services paid by neighboring agencies, staff believes Traffex Engineers to be the most cost effective alternative for addressing the transportation engineering needs of the City and therefore recommends approval of this PSA. ALTERNATIVES: Given the breadth of services supplied by Traffex and the intimate knowledge of not only the City's but neighboring cities' transportation operations as well, staff believes these services would be difficult to replicate with another firm or full-time traffic engineer. Therefore, staff does not recommend an alternative action. Report prepared by: Ed Wimmer P.E., Principal Engineer Report approved for submission by: Timothy R. Jonasson, P.E. Public Works Director/City Engineer Attachment: 1. PSA 111010 ATTACHMENT 1 PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT FOR CONTRACT SERVICES (the "Agreement") is made and entered into by and between the CITY OF LA QUINTA, ("City"), a California municipal corporation, and TRAFFEX ENGINEERS, INC. ("Consultant"). The parties hereto agree as follows: 1.0 SERVICES OF CONSULTANT 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide those services related to Contract City Traffic Engineer Services, as specified in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by this reference (the "services" or "work"). Consultant warrants that all services will be performed in a competent, professional and satisfactory manner in accordance with the standards prevalent in the industry for such services. 1.2 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations and laws of the City of La Quinta and any Federal, State or local governmental agency of competent jurisdiction. 1.3 Licenses, Permits, Fees and Assessments. Except as otherwise specified herein, Consultant shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Consultant shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the performance of the services required by this Agreement. 1.4 Familiarity with Work. By executing this Agreement, Consultant warrants that (a) it has thoroughly investigated and considered the work to be performed, (b) it has investigated the site of the work and fully acquainted itself with the conditions there existing, (c) it has carefully considered how the work should be performed, and (d) it fully understands the facilities, difficulties and restrictions attending performance of the work under this Agreement. Should Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by City, Consultant shall immediately inform City of such fact and shall not proceed except at Consultant's risk until written instructions are received from the Contract Officer (as defined in Section 4.2 hereof). IN 1.5 Care of Work and Standard of Work. a. Care of Work. Consultant shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work performed by Consultant, and the equipment, materials, papers and other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by City, except such losses or damages as may be caused by City's own negligence. The performance of services by Consultant shall not relieve Consultant from any obligation to correct any incomplete, inaccurate or defective work at no further cost to City, when such inaccuracies are due to the negligence of Consultant. b. Standard of Work. Consultant acknowledges and understands that the services and work contracted for under this Agreement require specialized skills and abilities and that, consistent with this understanding, Consultant's services and work will be held to a heightened standard of quality and workmanship. Consistent with Section 1.4 hereinabove, Consultant represents to City that it holds the necessary skills and abilities to satisfy the heightened standard of work as set forth in this Agreement. 1.6 Additional Services. In accordance with the terms and conditions of this Agreement, Consultant shall perform services in addition to those specified in the Scope of Services ("Additional Services") when directed to do so by the Contract Officer. Consultant shall not perform any Additional Services until receiving prior written authorization from the Contract Officer. It is specifically understood and agreed that oral requests and/or approvals of Additional Services shall be barred and are unenforeceable. Failure of Consultant to secure the Contract Manager's written authorization for Additional Services shall constitute a waiver of any and all right to adjustment of the Contract Sum or time due, whether by way of compensation, restitution, quantum meruit, etc. for Additional Services provided without the appropriate authorization from the Contract Manager. Compensation for properly authorized Additional Services shall be made in accordance with Section 2.2 of this Agreement. 1.7 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in Exhibit "D" (the "Special Requirements"). In the event of a conflict between the provisions of the Special Requirements and any other provisions of this Agreement, the provisions of the Special Requirements shall govern. 2.0 COMPENSATION 2.1 Contract Sum. For the services rendered pursuant to this Agreement, Consultant shall be compensated in accordance with Exhibit "B" (the "Schedule of IVA Compensation") in a total amount not to exceed Two Hundred Eighteen Thousand, Four Hundred Dollars ($218,400.00) (the "Contract Sum"), except as provided in Section 1.6. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment in accordance with the percentage of completion of the services, payment for time and materials based upon Consultant's rate schedule, but not exceeding the Contract Sum, or such other methods as may be specified in the Schedule of Compensation. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses when and if specified in the Schedule of Compensation. Regardless of the method of compensation set forth in the Schedule of Compensation, Consultant's overall compensation shall not exceed the Contract Sum, except as provided in Section 1.6 of this Agreement, "Additional Services." 2.2 Compensation for Additional Services. Additional services approved in advance by the Contract Manager pursuant to Section 1.6 of this Agreement, "Additional Services," shall be paid for in an amount agreed to in writing by both City and Consultant in advance of the Additional Services being rendered by Consultant. Any compensation for Additional Services amounting to five percent (5%) or less of the Contract Sum may be approved by the Contract Officer. Any greater amount of compensation for additional services must be approved by the La Quinta City Council. Under no circumstances shall Consultant receive compensation for any Additional Services unless prior written approval for the Additional Services is obtained from the Contract Officer pursuant to Section 1 .6 of this Agreement. 2.3 Method of Billing. Any month in which Consultant wishes to receive payment, Consultant shall submit to City no later than the tenth (10th) working day of such month, in the form approved by City's Finance Director, an invoice for services rendered prior to the date of the invoice. Such invoice shall (1) describe in detail the services provided, including time and materials, and (2) specify each staff member who has provided services and the number of hours assigned to each such staff member. Such invoice shall contain a certification by a principal member of Consultant specifying that the payment requested is for work performed in accordance with the terms of this Agreement. City will pay Consultant for all expenses stated thereon which are approved by City pursuant to this Agreement no later than thirty (30) days after invoices are received by the City's Finance Department. 3.0 PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. 123 3.2 Schedule of Performance. All services rendered pursuant to this Agreement shall be performed diligently and within the time period established in Exhibit C (the "Schedule of Performance"). Extensions to the time period specified in the Schedule of Performance may be approved in writing by the Contract Officer. 3.3 Force Majeure. The time period specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant, including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than City, and unusually severe weather, if Consultant shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the forced delay when and if in his or her judgment such delay is justified, and the Contract Officer's determination shall be final and conclusive upon the parties to this Agreement. Extensions to the Schedule of Performance which are determined by the Contract Officer to be justified pursuant to this Section shall not entitle the Consultant to additional compensation in excess of the Contract Sum. 3.4 Term. Unless earlier terminated in accordance with Sections 8.7 or 8.8 of this Agreement, the term of this agreement shall commence on July 1, 2015 and terminate on June 30, 2016 (initial term). This agreement may be extended for 1 additional year upon mutual agreement by both parties (extended term). 4.0 COORDINATION OF WORK 4.1 Representative of Consultant. The following principals of Consultant are hereby designated as being the principals and representatives of Consultant authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: a. Nazir Lalani, P.E., President E-mail: nazirlalani1 q ail®co It is expressly understood that the experience, knowledge, capability, and reputation of the foregoing principals were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing principals shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. 124 The foregoing principals may not be changed by Consultant and no other personnel may be assigned to perform the service required hereunder without the express written approval of City. 4.2 Contract Officer. The Contract Officer shall be Timothy R. Jonasson, Public Works Director/City Engineer or such other person as may be designated by the City Manager of City. It shall be Consultant's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and Consultant shall refer any decisions, which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. 4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for City to enter into this Agreement. Except as set forth in this Agreement, Consultant shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of City. In addition, neither this Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of City. 4.4 Independent Contractor. Neither City nor any of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees, perform the services required herein, except as otherwise set forth. Consultant shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. 4.5 City Cooperation. City shall provide Consultant with any plans, publications, reports, statistics, records or other data or information pertinent to services to be performed hereunder which are reasonably available to Consultant only from or through action by City. 5.0 INSURANCE 5.1 Insurance. Prior to the beginning of and throughout the duration of the Work performed under this Agreement, Consultant shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, Commercial General Liability insurance against all claims for injuries against persons or damages to property resulting from Consultant's acts or omissions rising out of or related to Consultant's performance under this Agreement. The insurance policy shall contain a severability of interest clause providing that the coverage shall be primary for M losses arising out of Consultant's performance hereunder and neither City nor its insurers shall be required to contribute to any such loss. A certificate evidencing the foregoing and naming City and its officers and employees as additional insured (on the Commercial General Liability policy only) shall be delivered to and approved by City prior to commencement of the services hereunder. The following policies shall be maintained and kept in full force and effect providing insurance with minimum limits as indicated below and issued by insurers with A.M. Best ratings of no less than A -:VI: Commercial General Liability (at least as broad as ISO CG 0001) $1,000,000 (per occurrence) $2,000,000 (general aggregate) Commercial Auto Liability (at least as broad as ISO CA 0001) $1,000,000 (per accident) Errors and Omissions Liability $1,000,000 (per claim and aggregate) Workers' Compensation (per statutory requirements) Consultant shall carry automobile liability insurance of $1,000,000 per accident against all claims for injuries against persons or damages to property arising out of the use of any automobile by Consultant, its officers, any person directly or indirectly employed by Consultant, any subcontractor or agent, or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Consultant's performance under this Agreement. If Consultant or Consultant's employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability coverage for each such person. The term "automobile" includes, but is not limited to, a land motor vehicle, trailer or semi -trailer designed for travel on public roads. The automobile insurance policy shall contain a severability of interest clause providing that coverage shall be primary for losses arising out of Consultant's performance hereunder and neither City nor its insurers shall be required to contribute to such loss. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the consultant and "Covered Professional Services" as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must "pay on behalf of" the insured and must include a IN provision establishing the insurer's duty to defend. The policy retroactive date shall be on or before the effective date of this agreement. Consultant shall carry Workers' Compensation Insurance in accordance with State Worker's Compensation laws with employer's liability limits no less than $1,000,000 per accident or disease. All insurance required by this Section shall be kept in effect during the term of this Agreement and shall not be cancelable without written notice to City of proposed cancellation. The procuring of such insurance or the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Consultant's obligation to indemnify City, its officers, employees, contractors, subcontractors, or agents. 5.2 Remedies. In addition to any other remedies City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option: a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. b. Order Consultant to stop work under this Agreement and/or withhold any payment(s) which become due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof. C. Terminate this Agreement. Exercise of any of the above remedies, however, is an alternative to any other remedies City may have. The above remedies are not the exclusive remedies for Consultant's failure to maintain or secure appropriate policies or endorsements. Nothing herein contained shall be construed as limiting in any way the extent to which Consultant may be held responsible for payments of damages to persons or property resulting from Consultant's or its subcontractors' performance of work under this Agreement. 5.3 General Conditions pertaining to provisions of insurance coverage by Consultant. Consultant and City agree to the following with respect to insurance provided by Consultant: 1 . Consultant agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials, employees and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Consultant also agrees to require all contractors, and subcontractors to do likewise. 127 2. No liability insurance coverage provided to comply with this Agreement shall prohibit Consultant, or Consultant's employees, or agents, from waiving the right of subrogation prior to a loss. Consultant agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise. 3. All insurance coverage and limits provided by Contractor and available or applicable to this agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operations limits the application of such insurance coverage. 4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 5. No liability policy shall contain any provision or definition that would serve to eliminate so-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. Consultant shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City's protection without City's prior written consent. 7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Consultant's general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Consultant or deducted from sums due Consultant, at City option. 8. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Consultant or any subcontractor, is intended to apply first and on a primary, non-contributing basis in relation to any other insurance or self insurance available to City. 9. Consultant agrees to ensure that subcontractors, and any other party involved with the project that is brought onto or involved in the project by 128 Consultant, provide the same minimum insurance coverage required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review. 10. Consultant agrees not to self -insure or to use any self -insured retentions or deductibles on any portion of the insurance required herein (with the exception of professional liability coverage, if required) and further agrees that it will not allow any contractor, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self -insure its obligations to City. If Consultant's existing coverage includes a deductible or self -insured retention, the deductible or self -insured retention must be declared to the City. At that time the City shall review options with the Consultant, which may include reduction or elimination of the deductible or self -insured retention, substitution of other coverage, or other solutions. 11. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City will negotiate additional compensation proportional to the increased benefit to City. 12. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 13. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non-compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard. 14. Consultant will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether or not the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect. 15. Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage IW1 has been ordered shall be submitted prior to expiration. A coverage binder or letter from Consultant's insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to City within five (5) days of the expiration of coverages. 16. The provisions of any workers' compensation or similar act will not limit the obligations of Consultant under this agreement. Consultant expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials and agents. 17. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive. 18. These insurance requirements are intended to be separate and distinct from any other provision in this agreement and are intended by the parties here to be interpreted as such. 19. The requirements in this Section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Section. 20. Consultant agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Consultant for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto. 21. Consultant agrees to provide immediate notice to City of any claim or loss against Consultant arising out of the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. 6.0 INDEMNIFICATION. 6.1 General Indemnification Provision. a. Indemnification for Professional Liability. When the law establishes a professional standard of care for Consultant's Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend and hold harmless City and any and all of its officials, employees and agents ("Indemnified Parties") from and against any and all claims, losses, liabilities of every kind, nature and description, damages, injury (including, without limitation, injury to or death of an employee of Consultant or subconsultants), costs and expenses of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, attorneys' fees, litigation expenses, and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation, to the extent same are cause in whole or in part by any negligent or wrongful act, error or omission of Consultant, its officers, agents, employees or subconsultants (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Consultant shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A without the written consent of the Consultant. b. Indemnification for Other Than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, defend and hold harmless City, and any and all of its employees, officials and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, attorneys' fees, litigation expenses, and fees of expert consultants or expert witnesses) incurred in connection therewith and costs of investigation, where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Consultant or by any individual or entity for which Consultant is legally liable, including but not limited to officers, agents, employees or subconsultants of Consultant. 6.2 Standard Indemnification Provisions. Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth herein this section from each and every subconsultant or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this agreement. In the event Consultant fails to obtain such indemnity obligations from others as required herein, Consultant agrees to be fully responsible according to the terms of this section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set IN forth herein is binding on the successors, assigns or heirs of Consultant and shall survive the termination of this agreement or this section. a. Indemnity Provisions for Contracts Related to Construction. Without affecting the rights of City under any provision of this agreement, Consultant shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City's active negligence accounts for only a percentage of the liability involved, the obligation of Consultant will be for that entire portion or percentage of liability not attributable to the active negligence of City. b. Indemnification Provision for Desiqn Professionals. 1. Applicability of Section 6.2(b). Notwithstanding Section 6.2(a) hereinabove, the following indemnification provision shall apply to Consultants who constitute "design professionals" as the term is defined in paragraph 3 below. 2. Scope of Indemnification. To the fullest extent permitted by law, Consultant shall indemnify, defend, and hold harmless City and City's agents, officers, officials, employees, representatives, and departments ("Indemnified Parties") from and against any and all claims, losses, liabilities of every kind, nature and description, damages, injury (including, without limitation, injury to or death of an employee of Consultant or subconsultants), costs and expenses of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, attorneys' fees, litigation expenses, and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation, that arise out of, pertain to, or relate to, directly or indirectly, in whole or in part, the negligence, recklessness, or willful misconduct of Consultant, any subconsultant, anyone directly or indirectly employed by them or anyone that they control. 3. Design Professional Defined. As used in this Section 6.2(b), the term "design professional" shall be limited to licensed architects, registered professional engineers, licensed professional land surveyors and landscape architects, all as defined under current law, and as may be amended from time to time by Civil Code § 2782.8. 119 7.0 RECORDS AND REPORTS. 7.1 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning Consultant's performance of the services required by this Agreement as the Contract Officer shall require. 7.2 Records. Consultant shall keep such books and records as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the cost and the performance of such services. Books and records pertaining to costs shall be kept and prepared in accordance with generally accepted accounting principals. The Contract Officer shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records. 7.3 Ownership of Documents. Originals of all drawings, specifications, reports, records, documents and other materials, whether in hard copy or electronic form, which are prepared by Consultant, its employees, subcontractors and agents in the performance of this Agreement, shall be the property of City and shall be delivered to City upon termination of this Agreement or upon the earlier request of the Contract Officer, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership of the documents and materials hereunder. Consultant shall cause all subcontractors to assign to City any documents or materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages suffered thereby. In the event City or any person, firm or corporation authorized by City reuses said documents and materials without written verification or adaptation by Consultant for the specific purpose intended and causes to be made or makes any changes or alterations in said documents and materials, City hereby releases, discharges, and exonerates Consultant from liability resulting from said change. The provisions of this clause shall survive the completion of this Contract and shall thereafter remain in full force and effect. 7.4 Release of Documents. The drawings, specifications, reports, records, documents and other materials prepared by Consultant in the performance of services under this Agreement shall not be released publicly without the prior written approval of the Contract Officer or as required by law. Consultant shall not disclose to any other entity or person any information regarding the activities of City, except as required by law or as authorized by City. 133 8.0 ENFORCEMENT OF AGREEMENT. 8.1 California Law. This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 8.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer; provided that if the default is an immediate danger to the health, safety and general welfare, City may take such immediate action as City deems warranted. Compliance with the provisions of this section shall be a condition precedent to termination of this Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party's right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City's right to terminate this Agreement without cause pursuant to Section 8.7. 8.3 Retention of Funds. City may withhold from any monies payable to Consultant sufficient funds to compensate City for any losses, costs, liabilities, or damages it reasonably believes were suffered by City due to the default of Consultant in the performance of the services required by this Agreement. 8.4 Waiver. No delay or omission in the exercise of any right or remedy of a non defaulting party on any default shall impair such right or remedy or be construed as a waiver. City's consent or approval of any act by Consultant requiring City's consent or approval shall not be deemed to waive or render unnecessary City's consent to or approval of any subsequent act of Consultant. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 8.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or 134 different times, of any other rights or remedies for the same default or any other default by the other party. 8.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, at law or at equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. 8.7 Termination Prior To Expiration Of Term. This section shall govern any termination of this Agreement, except as specifically provided in the following Section 8.8 for termination for cause. City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days' written notice to Consultant. Upon receipt of any notice of termination, Consultant shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Consultant shall be entitled to compensation for all services rendered prior to receipt of the notice of termination and for any services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 8.3. 8.8 Termination for Default of Consultant. If termination is due to the failure of Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 8.2, take over work and prosecute the same to completion by contract or otherwise, and Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Consultant for the purpose of setoff or partial payment of the amounts owed City as previously stated in Section 8.3. 8.9 Attorneys' Fees. If either party commences an action against the other party arising out of or in connection with this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs of suit from the losing party. 9.0 CITY OFFICERS AND EMPLOYEES; NONDISCRIMINATION. 9.1 Non -liability of City Officers and Employees. No officer or employee of City shall be personally liable to Consultant, or any successor in interest, in the event or any default or breach by City or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement. i61 9.2 Conflict of Interest. No officer or employee of City shall have any personal interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which affects his or her personal interest or the interest of any corporation, partnership or association in which she or he is, directly or indirectly, interested, in violation of any State statute or regulation. Consultant warrants that it has not paid or given and will not pay or give any third party any money or general consideration for obtaining this Agreement. 9.3 Covenant against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry in the performance of this Agreement. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, national origin or ancestry. 10.0 MISCELLANEOUS PROVISIONS 10.1 Notice. Any notice, demand, request, consent, approval, communication either party desires or is required to give the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this section. To City: CITY OF LA QUINTA Attention: Frank Spevacek, City Manager 78-495 Calle Tampico La Quinta, California 92253 To Consultant: TRAFFEX ENGINEERS, INC. Attention: Nazir Lalani President P.O. Box 5784 Ventura, California 93005-0784 10.2 Integrated Agreement. This Agreement contains all of the agreements of the parties and all previous understanding, negotiations and agreements are integrated into and superseded by this Agreement. 10.3 Amendment. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing signed by both parties. 10.4 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the i6% remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder. 10.5 Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by so executing this Agreement the parties hereto are formally bound to the provisions of this Agreement. 137 IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. CITY OF LA QUINTA a California municipal corporation Frank J. Spevacek, City Manager Date ATTEST„ SUSAN MAYSELS, City Clerk La Quinta, California APPROVED AS TO FORM: WILLIAM H. IHRKE, City Attorney City of La Quinta, California CONSULTANT: Traffex Engineering, Inc. Name: NA Z((L L �" _......... ._..........................................................................�........................... Title: V fe I�r_ (� r Date: ) ;).-CW I ) %.-.. 138 Exhibit A Scope of Services Traffex Engineers, Inc. shall provide traffic engineering services for the City to include, but not be limited to, the following: Assist City with preparation of an Annual Traffic Safety Report, to be completed by September 1, 2015. 1) Identify and develop solutions for and advise City staff on addressing and responding to citizen requests using the Go Request system. 2) Provide technical assistance for traffic signal design and day to day traffic operations including traffic signals. 3) Provide an initial response to citizen requests based on when the request was submitted to the City through the Go Request system. 4) Preparing materials to be used for issuing work orders to implement signing and striping changes requested by citizens. 5) Review development plans including environmental impact reports and impact studies for potential traffic issues and advise City on possible solutions. 6) Review precise grading and public improvement plans for potential traffic issues and advise City on possible solutions. 7) Review all traffic control plans for construction projects and advise City on potential issues. 8) Attend City Council and Planning Commission meetings if requested. 9) Review and update the Crossroads traffic collision data baseand advise City staff on traffic issues involved. 10) Assist Traffic Signal Maintenance Technicians with signal timing and signal communications, central computer signal system, data collection, report preparation and signal/striping plan layout and plan check. 1 1) Provide technical input to City staff with signing and striping changes, issuing work orders to address citizen requests, signal equipment upgrades and parts, collision analysis, speed limits, traffic volume data and other work performed by City staff. 12) Review traffic plans for capital improvement projects and advise City on potential issues. IKR; Exhibit B Schedule of Compensation With the exception of compensation for Additional Services, provided for in Section 2.2 of this Agreement, the maximum total compensation to be paid to Consultant under this Agreement is Two Hundred Eighteen Thousand, Four Hundred Dollars ($218,400.00) ("Contract Sum"). The Contract Sum shall be paid to Consultant in installment payments made on a monthly basis and in an amount identified in Consultants Schedule of Compensation attached hereto for the work tasks performed and properly invoiced by Consultant in conformance with Section 2.2 of the Agreement. Schedule of Billing Rates Professional Staff Hourly Rates Principal (Registered Professional Engineer) $165.00 Upon receipt by City and under separate invoice the Consultant shall provide the traffic engineering support services at the following rates: Support Staff Associate Engineer Drafter/Technician Secretary Hourly Rates $100.00 $ 75.00 $ 60.00 `«t Exhibit C Schedule of Performance The Contract period for traffic engineering services shall be from July 1, 2015 to June 30, 2016 ("Initial Term"). This Agreement may be extended for two additional year(s) upon mutual agreement by both parties ("Extended Term"). 1EN Exhibit D Special Requirements None IEI CITY / SA / HA / FA MEETING DATE: June 2, 2015 AGENDA CATEGORY: ITEM TITLE: APPROVE SPECIFICATIONS AND ENGINEER'S BUSINESS SESSION: ESTIMATE AND ADVERTISE FOR BIDS FOR THE INTERIOR CONSENT CALENDAR: 9 PHASE OF THE LIBRARY 10T" ANNIVERSARY IMPROVEMENTS PROJECT STUDY SESSION: PUBLIC HEARING: RECOMMENDED ACTION: Approve the specifications and engineer's estimate and authorize staff to advertise for bids for the Interior Phase of the Library 10th Anniversary Improvements Project. EXECUTIVE SUMMARY: • The Library, although less than 10 years old, requires refurbishment due to heavy use. • The Library 10th Anniversary Project consists of an interior and exterior phase. The specifications and engineer's estimate for the interior phase are now complete, with the Library Light Emitting -diode (LED) Lighting Conversion Improvements now included. • Staff recommends the refurbishment be completed by the Library's 10th anniversary event to be held later this year and, upon approval, will advertise for bids for the interior phase of the project. The exterior phase is currently in design. FISCAL IMPACT: The project budget is $1,189,610 for the interior and parking lot improvements, which will be funded through unappropriated Library Funds. The project budget for the Library LED Lighting Conversion Project is $72,465, which will be funded through the Library Operations Budget. The Library 10th Anniversary Project budget is below: 143 Project Total Interior Phase Exterior Phase Professional (7.75%): $60,505 $24,297 $36,209 Design (10%): $78,071 $31,350 $46,721 Inspection/Testing/Survey (9.75%): $76,119 $30,567 $45,553 Construction: $780,712 $313,505 $467,208 City Administration (5%): $39,036 $15,675 $23,360 Contingency (15% of Whole): $155,167 $62,309 $92,857 Total Budget: $1,189,610 $477,703 $711,907 Note: Due to rounding, numbers presented may not add up precisely to the totals provided. The approved project budget for the Library LED Lighting Conversion Project is as follows: BUDGET LINE ITEM BUDGET Professional/Design: $8,500 Technical (Insp/Test/Survey): $4,875 Construction: $50,000 Contingency: $6,590 City Administration: $2,500 TOTAL BUDGET: $72,465 BACKGROUND/ANALYSIS: The Library will be celebrating its 10th anniversary later this year and the Community Services Department is planning a celebration to recognize this achievement. After nearly 10 years of heavy use, the interior of the Library and the parking lot are both in need of refurbishment. The interior of the Library will be refreshed to include new carpet, paint, upgraded restrooms, and new or rehabilitated furnishings. The exterior improvements will include expanding and resurfacing the existing parking lot and refurbishing the drainage around the building. On May 19, 2015, all bids received for the Library LED Lighting Conversion Improvements were rejected and now this portion of Library improvements has been incorporated into the interior phase of the project. The project bid documents are now complete and available for review in the Public Works Department. Staff anticipates the interior improvements can be made in August at which time the Library can be closed with minimal impact to the public. 144 Contingent upon City Council's approval to advertise the project for bids, the following is the proposed schedule: City Council Bid Authorization Bid Period Council Considers Project Award Execute Contract and Mobilize Construction (40 Working Days) Accept Improvements ALTERNATIVES: June 2, 2015 June 3 through July 2, 2015 July 7, 2015 July 8 through July 29, 2015 August through September 2015 October 2015 Since these improvements are necessary to maintain the condition of the Library and it would be best to complete construction during the summer to minimize impacts to the public, no additional alternatives are recommended. Report prepared by: Ed Wimmer, P.E., Principal Engineer Report approved for submission by: Timothy R. Jonasson, P.E. Public Works Director/City Engineer `« IE of CIT / SA / HA / FA MEETING DATE: June 2, 2015 ITEM TITLE: ADOPT A RESOLUTION TO AMEND AND RESTATE THE RULES OF PROCEDURE FOR COUNCIL MEETINGS AND RELATED FUNCTIONS AND ACTIVITIES RECOMMENDED ACTION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: 10 STUDY SESSION: PUBLIC HEARING: Adopt Resolution No. 2015- approving the amended and restated Rules of Procedure for Council Meetings and related functions and activities. EXECUTIVE SUMMARY: • A thorough examination of the Council Rules of Procedure was undertaken in 2014 to incorporate changes in State law, improvements in technology, increased emphasis on transparency, and evolved Council practices. • Three sections are being updated this year to: 1) allow for greater flexibility in the order of business taken up on the agenda; 2) update the conflict of interest section to conform to State law; and 3) clarify the manner for addressing Council. • To avoid duplicating text common to all City boards and commissions, the Council Rules will be the master document to which all other entities will refer. FISCAL IMPACT: None. BACKGROUND/ANALYSIS: Recommended changes are in Sections 1.1, 4.7, and 5.1 as redlined on Attachment 1 and explained as follows: 147 There are two recommended changes to Section 1.1 ORDER OF BUSINESS - 1) Delete the requirement for the order of business to be predetermined for every meeting (agenda will generally follow the order of business but can be changed without formalities); and 2) change the order to have department reports heard after the study session (this will help to avoid staff overtime or enable staff to return to work earlier). Section 4.7 CONFLICT OF INTEREST - the Political Reform Act spells out the steps public officials are to follow when declaring a conflict of interest. The Council has been following these steps since this portion of the law was enacted in 2002. As a clear tool for all who are governed by these Rules of Procedure, the exact steps required have replaced the general guideline previously covering this matter. The steps are to identify the conflict, recuse oneself from voting, and leave the dais unless the item is on the Consent Calendar. The new language also covers how the votes are to be recorded and how a disqualified Councilmember may speak on the matter as a member of the public. Section 5.1 MANNER OF ADDRESSING THE COUNCIL - language added to indicate how the presiding officer and councilmembers are to be addressed based on Robert's Rule of Order and other resources. Staff and residents addressing the Council at meetings are often unsure of the protocol. This addition, which explains the titles to use for a mayor and councilmembers, eliminates awkwardness and guesswork and encourages confident engagement on the part of those addressing the Council at a meeting. ALTERNATIVES: Council may add, delete, or amend any section of the Rules of Procedure. Report prepared by: Susan Maysels, City Clerk Report approved for submission by: Frank J. Spevacek, City Manager Attachment: 1. Council Rules of Procedure - redlined sections 148 RESOLUTION NO. 2015 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA? ADOPTING AMENDED AND RESTATED RULES OF PROCEDURE FOR COUNCIL MEETINGS AND RELATED FUNCTIONS AND ACTIVITIES WHEREAS, Section 2.04.040 of the La Quinta Charter and Municipal Code and State Government Code Section 54954(a) requires that the City Council adopt Rules of Procedure to govern the conduct of its meetings and any of its other functions and activities, and regulations pertaining thereto; and WHEREAS, due to changes in law, policy and/or practice, Council Rules of Procedure require examination and updating from time to time; and WHEREAS, this resolution supersedes all previous City Council Resolutions adopting Rules of Procedure, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, that the Rules of Procedure for City Council Meetings and Related Functions and Activities attached hereto as Exhibit A are hereby adopted. PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City Council held on this 2nd day of June, 2015 by the following vote: AYES: NOES: ABSENT: ABSTAIN: LINDA EVANS, Mayor City of La Quinta, California 149 Page 1 of 19 ATTEST: SUSAN MAYSELS, City Clerk City of La Quinta, California (CITY SEAL) APPROVED AS TO FORM: WILLIAM H. IHRKE, City Attorney City of La Quinta, California Page 2 of 19 `i EXHIBIT A AMENDED AND RESTATED RULES OF PROCEDURE FOR COUNCIL MEETINGS AND RELATED FUNCTIONS AND ACTIVITIES PURPOSE The purpose and intent of the City Council in adopting the within rules shall be to provide directory guidelines relating to the conduct of the public business by or on behalf of the City Council, and in the event of any noncompliance with or violation of any provision herein, such will not be deemed to affect the validity of any action taken, unless otherwise specifically provided by law. The rules of procedure set herein shall be in addition to the provisions of the Ralph M. Brown Act and all other applicable state government codes. In the event of a conflict between the rules set by the City Council and California Code, the provisions of California State Code shall prevail. APPLICABILITY Unless otherwise provided by resolution of the City Council, a city authority, or city agency, the rules of procedure outlined below apply to all city -established entities including, but not limited to the following: La Quinta City Council La Quinta Housing Authority La Quinta Financing Authority Successor Agency to the La Quinta Redevelopment Agency All City Boards, Commissions, and Committees 1. MEETINGS 1.1 REGULAR MEETINGS: The City Council of the City of La Quinta shall hold regular meetings in the place specified in the Municipal Code, on the first and third Tuesdays of each month. The open session portion of regular meetings shall begin at 4:00 p.m. The closed session portion of regular meetings, if needed, may begin between 3:00 p.m. and 4:00 p.m., or may be scheduled any time before meeting adjournment in accordance with a duly noticed agenda. The public hearing portion of the meeting shall be the time set 151 Page 3 of 19 forth in the published public hearing notice, or if none is required, the time set forth in the posted agenda. When the day for a regular meeting of the Council falls on a legal holiday, no meeting shall be held on that day; rather, such meeting shall be held at the same hour on the next business day unless otherwise determined by the City Council. 1.2 ADJOURNED MEETINGS: Any meeting may be adjourned to a time, place, and date certain, but not beyond the next regular meeting. Once adjourned, the meeting may not be reconvened. 1.3 SPECIAL MEETINGS: Special Meetings may be called by the Mayor or majority of Councilmembers on 24- hour notice, as set forth in Government Code Sections 3511.1(d), 36807 and 54956(b). Only matters contained in the notice may be considered and no ordinances (other than urgency ordinances) may be adopted, nor may matters concerning the salaries, salary schedules, stipend, bonus or compensation paid in the form of fringe benefits, of the City Manager, any Department head, or any employee whose position is held by an employment contract, be acted upon. Notice of special meetings shall be posted in accordance with Section 1.4. 1.4 NOTICE OF MEETINGS. POSTING OF AGENDAS: The City Clerk, or designee, shall post a meeting agenda in the following locations at least 72 hours before each regular meeting of the City Council, to wit: (1) the public bulletin board located outside the Village Post Office at 51321 Avenida Bermudas, (2) the public bulletin board located outside Stater Brothers Supermarket at 78-630 Highway 111 and, (3) the City's internet web site. The City Council finds and determines that all locations are freely accessible to the public and the Council further finds and determines that the City is legally required to post an agenda in only one freely accessible location and on the City's web site. This direction to post in all locations is directory only and not mandatory. Other locations may be added as deemed appropriate. Following posting of said agenda, the City Clerk or designee, shall sign a declaration of the date and place of the posting of the said agenda and shall retain said declaration of posting as a public record as part of the Council meeting record to which the posting relates. The provisions of this section as to place of posting and declaration of posting shall also apply to the special meeting posting requirements of Government Code 54956. To the extent not required by State law, the provisions hereof are directory only. 1.5 QUORUM: Unless otherwise provided for in the Municipal Code, a majority of the Council shall be sufficient to do business and motions may be passed 2-1 if only 3 attend. The 152 Page 4 of 19 following matters, however, require three affirmative votes: (a) adoption of ordinances and resolutions, (b) orders for payment of money, and (c) adoption or amendment of a specific or general plan. If a majority of the Council shall be disqualified to vote on a matter by reason of actual or apparent conflict of interest, the Council shall select by lot or other means of random selection, or by such other impartial and equitable means as the Council shall determine, that number of its disqualified members which, when added to the members eligible to vote, shall constitute a quorum. 1.6 MEETINGS TO BE PUBLIC: Study Sessions and all regular, adjourned or special meetings of the City Council shall be open to the public, provided, however, the Council may hold closed sessions from which the public may be excluded, which closed sessions shall only be held in accordance with the provisions of the Brown Act (Government Code 54950 etc.). 1.7 MEETING ATTENDANCE VIA TELECONFERENCE: (a) The use of teleconferencing for a Councilmember to attend a City Council meeting is permitted subject to compliance with the provisions of Government Code Section 54953, as amended. (b) All provisions of the Ralph M. Brown Act shall apply to the teleconferenced meeting location including agenda posting, public accessibility, ADA compliance, opportunity for the public to address Council directly, and availability of agendas. (c) All votes taken during a teleconferenced meeting shall be by roll call. (d) So that the City Clerk may comply with the Ralph M. Brown Act, one week advance written notice to the City Clerk must be given by the Councilmember who wishes to attend via teleconference; the notice must include the location name and address, which must specifically include the room/suite number, at which the teleconferenced meeting will occur, who is to initiate the telephone call to establish the teleconference connection, and the telephone number of the teleconference location (the telephone number will not be made public). (e) The Councilmember attending by teleconference shall (1) provide the City Clerk with a photograph showing the agenda posted at the teleconference location, or a written statement that the agenda has been posted, which the City Clerk shall retain with the original agenda packet materials, and (2) identify him/herself and acknowledge whether or not members of the public are in attendance at the teleconference location. 153 Page 5 of 19 (f) Only one Councilmember per meeting may attend by teleconferencing. (g) Each Councilmember may attend a regular City Council meeting via teleconference a maximum of twice per calendar year. (h) Upon receipt of notification of intent to attend via teleconference from one Councilmember, the City Clerk shall forward the notice to all Councilmembers. 1.8 CLOSED SESSION MINUTES: Pursuant to Section 54957.2 of the California Government Code, the City Clerk of the City of La Quinta may be required to attend closed session of the City Council, and keep and enter in a minute book a record of topics discussed and decisions made at each meeting. Closed Session minutes, if produced, shall not be a public record subject to inspection pursuant to the California Public Records Act, and shall be kept confidential pursuant to the Government Code. 2. AGENDA 2.1 ORDER OF BUSINESS: Except as otherwise provided by law, no action or discussion shall be undertaken on any item not appearing on the posted agenda, except that Councilmembers or staff may, on their own initiative or in response to public comments, briefly respond to statements made or questions posed during the public comment period, ask questions for clarification, make a brief announcement, make a brief report on his/her own activities, provide a reference to staff, request staff to report back to the Council at a subsequent meeting, or take action to direct staff to place a matter on a future agenda. The order of business of each meeting shall be as contained in the Agenda prepared by the City Clerk and shall contain the following category headings: CALL TO ORDER ROLL CALL *PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA (place before Closed session) CLOSED SESSION (may be taken up before, after or during breaks in the open portion of the meeting) *PLEDGE OF ALLEGIANCE *PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA CONFIRMATION OF AGENDA *ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS CONSENT CALENDAR (will include Minutes) BUSINESS SESSION *STUDY SESSION 154 Page 6 of 19 *DEPARTMENTAL REPORTS *REPORTS AND INFORMATIONAL ITEMS *MAYOR AND COUNCILMEMBERS ITEMS *PUBLIC COMMENT (only needed if there is a Public Hearing(s) on the agenda) *PRESENTATIONS (only needed if there is a late presentation item) PUBLIC HEARINGS ADJOURNMENT The Presiding Officer may change the order of business to accommodate participants, councilmembers, staff, or consultants; expedite the meeting; or meet public hearing notice times. *These portions of the agenda shall be used for discussion and direction to staff; no formal actions are to be taken. 2.2 DELIVERY OF AGENDA: Barring insurmountable difficulties, the agenda packet shall ordinarily be delivered to Councilmembers each Thursday preceding the Tuesday meeting to which it pertains. The agenda packet shall also be available to the public at the time it is delivered to the City Council. 2.3 ROLL CALL: Before proceeding with the business of the Council, the City Clerk shall call the roll of the Councilmembers and the names of those present shall be entered in the minutes. The order of roll call shall be alphabetical with the Mayor called last. 2.4 APPROVAL OF MINUTES: Action minutes shall be prepared after every meeting. Unless requested by a majority of the City Council, minutes of the previous meeting may be approved as a Consent Calendar item without public reading if the City Clerk has previously furnished each Councilmember with a copy thereof. 2.5 PUBLIC HEARINGS: Generally, public hearings shall be conducted in the following order: • Staff presentation • Questions of Staff by Council • Public hearing opened by Presiding Officer • Public testimony • Public hearing closed by Presiding Officer • Questions by Council 155 Page 7 of 19 • Discussion by Council • Action by Council Questions or comments from the public shall be limited to the subject under consideration. Depending upon the extent of the agenda, and the number of persons desiring to speak on an issue, the Presiding Officer may, at the beginning of the hearing, limit testimony, but in no event to less than 3 minutes per individual. Any person may speak for a longer period of time, upon approval of the City Council, when this is deemed necessary in such cases as when a person is speaking as a representative of a group or has graphic or slide presentations requiring more time. Quasi-judicial hearings shall be conducted in accordance with the principles of due process, and the City Attorney shall advise the City Council in this regard. 2.6 PUBLIC COMMENT: Pursuant to Government Code 54954.3, each agenda for a regular meeting shall provide an item entitled "Public Comment". The purpose of such item shall be to provide an opportunity for members of the public to directly address the City Council on items of interest to the public that are within the subject matter jurisdiction of the City Council. In order to assure that the intent of Government Code 54954.3 is carried out, three (3) minutes is the amount of time allocated for each individual speaker. At any time, before or after the oral communication is commenced, the Presiding Officer may, if s/he deems it preferable, direct that the communication be made instead either to the City Manager or other appropriate staff member during regular business hours, or in writing for subsequent submittal to Councilmembers. On items of public comment or discussion, any matter raised by the public which does not specifically appear on the agenda may be added to a future agenda in accordance with Section 2.9. It is hereby determined that such requests or direction by a Councilmember shall not be considered action taken by the Council on said item raised by the public. Further, Council discussion of the matter shall not be considered action taken. 2.7 CONSENT AGENDA: Items of routine nature, and non -controversial, shall be placed on the consent agenda. All items may be approved by one blanket motion upon unanimous consent. Any Councilmember may request that any item be withdrawn from the consent agenda for separate consideration. 2.8 MAYOR AND COUNCILMEMBER ITEMS: The Mayor and Councilmembers shall provide brief reports on meetings attended at the expense of the local agency at the next regular meeting of the Council. 156 Page 8 of 19 2.9 ADDING ITEMS TO A FUTURE AGENDA: An item may be placed on a future agenda by any of the following methods: (a) Items for discussion only, no action, no staff report - a Councilmember may request that a matter requiring significant discussion be placed on a future agenda under the MAYOR AND COUNCILMEMBER ITEMS section either during a Council meeting or by contacting the City Manager with the item title and desired meeting date. At the requesting Councilmember's option, s/he may prepare a short report to be included in the agenda packet provided s/he meets the agenda production deadlines. (b) Items for discussion and/or vote requiring a staff report - a Councilmember who wishes to place a matter on a future agenda that requires staff research, analysis and/or report(s) or a vote to commit City resources shall first bring the matter to Council as noted in (a) above and obtain Council consensus to direct staff to move forward and place the item on a future agenda. Council shall not take action on the matter itself. (c) By the Mayor, City Manager or City Attorney 3. PRESIDING OFFICER 3.1 PRESIDING OFFICER: The Mayor shall be the Presiding Officer at all meetings of the Council. In the absence of the Mayor, the Mayor Pro Tempore shall preside. In the absence of both the Mayor and the Mayor Pro Tempore, the senior Councilmember shall preside. If there are two Councilmembers with equal seniority, then the one who received the highest number of votes in the election shall be the Presiding Officer. 3.2 MAYOR PRO TEMPORE: In accordance with Government Code Section 36801, the Council shall choose one of its members as Mayor Pro Tempore at the meeting at which the declaration of the election results for a general municipal election is made. During odd numbered years, the Council shall choose one of its members as Mayor Pro Tempore during a regular meeting in the last calendar quarter of the year. Each selection shall be by three or more affirmative votes, and a failure to achieve such total of affirmative votes, shall be deemed a selection of the incumbent to remain in office. Each person so selected shall serve until a successor is chosen (at any time) by three or more affirmative votes. 3.3 CALL TO ORDER: The meeting of the City Council shall be called to order by the Presiding Officer. 157 Page 9 of 19 3.4 PARTICIPATION OF PRESIDING OFFICER: The Presiding Officer may move, second, and debate from the Chair, subject only to such limitations of debate as are imposed on all Councilmembers, and s/he shall not be deprived of any of the rights and privileges of a Councilmember by reason of acting as Presiding Officer. However, the Presiding Officer is primarily responsible for the conduct of the meeting. If s/he desires to personally engage in extended debate on questions before the Council, s/he should consider turning the Chair over to the Mayor Pro Tempore. 3.5 QUESTION TO BE STATED: The Presiding Officer shall verbally restate each question immediately prior to calling for the vote. Following the vote, either the Presiding Officer or the City Clerk shall verbally announce the result in accordance with Section 7.1. The Presiding Officer may publicly state the effect of the vote for the benefit of the audience before proceeding to the next item of business. 3.6 SIGNING OF ORDINANCES AND RESOLUTIONS: The Presiding Officer shall sign ordinances and resolutions adopted by the City Council. The City Clerk, or Deputy City Clerk, shall attest to the signature of the Presiding Officer. 3.7 MAINTENANCE OF ORDER: The Presiding Officer is responsible for the maintenance of order and decorum at all times. No person is allowed to speak who has not first been recognized by the Presiding Officer. All questions and remarks shall be addressed to the Presiding Officer. 3.8 CITY CLERK POSITION: In accordance with Government Code Section 36804, if the City Clerk is absent, the Deputy City Clerk shall act. If there is none, the Presiding Officer shall appoint one of the Councilmembers as City Clerk Pro Tempore. 4. RULES, DECORUM, AND ORDER 4.1 POINTS OF ORDER: The Presiding Officer shall determine all Points of Order subject to the right of any member to appeal to the Council. If any appeal is taken, the question shall be, "Shall the decision of the Presiding Officer be sustained?" in which event a majority vote shall govern and conclusively determine such question of order. 158 Page 10 of 19 4.2 DECORUM AND ORDER - COUNCIL MEMBERS: (a) Any Councilmember desiring to speak shall address the Presiding Officer and, upon recognition by the Presiding Officer, shall confine him/herself to the question under debate. (b) A Councilmember, once recognized, shall not be interrupted while speaking unless called to order by the Presiding Officer; unless a Point of Order is raised by another Councilmember; or unless the speaker chooses to yield to questions from another Councilmember. (c) Any Councilmember called to order while s/he is speaking shall cease speaking immediately until the question of order is determined. If ruled to be in order, s/he shall be permitted to proceed. If ruled to be not in order, s/he shall remain silent or shall alter his/her remarks so as to comply with rules of the Council. (d) Councilmembers shall accord the utmost courtesy to each other, to city employees, and to the public appearing before the Council and shall refrain at all times from rude and derogatory remarks, reflections as to integrity, abusive comments, and statements as to motives and personalities. (e) Any Councilmember may move to require the Presiding Officer to enforce the rules and the affirmative vote of a majority of the Council shall require the Presiding Officer to so act. (f) Except where specifically authorized by City Council action or for purely ceremonial purposes, no Councilmember attending a City commission or committee meeting shall make any statement or give the appearance or indicate in any way that s/he is representing the City. When making a comment at such a meeting, the Councilmember should make it clear that s/he is speaking solely as an individual. Unless officially appointed to participate on a committee, Councilmembers should make an effort not to insert themselves into or take positions on matters which will or are likely to be the subject of public hearings or will be decided upon by the City Council after considering the entire issue. 4.3 DECORUM AND ORDER - EMPLOYEES: City Employees and Contractors shall observe the same rules of procedure and decorum applicable to members of the Council. The City Manager shall ensure that all City employees observe such decorum. Any staff members, including the City Manager, desiring to address the Council or members of the public shall first be recognized by the Presiding Officer. All remarks shall be addressed to the Presiding Officer and not to any one individual Councilmember or member of the public. 159 Page 11 of 19 4.4 DECORUM AND ORDER - PUBLIC: Members of the public attending Council meetings shall observe the same rules of order and decorum applicable to the Council. Any person making impertinent and slanderous remarks or who becomes boisterous while addressing the Council or while attending the Council meeting shall be removed from the room if the sergeant -of - arms is so directed by the Presiding Officer, and such person may be barred from further audience before the Council. Unauthorized remarks from the audience, stamping of feet, whistles, yells and similar demonstrations shall not be permitted by the Presiding Officer, who may direct the sergeant -of -arms to remove such offenders from the room. Aggravated cases shall be prosecuted on appropriate complaint signed by the Presiding Officer. 4.5 ENFORCEMENT OF DECORUM: The head of the City's police agency or designee shall be ex-officio sergeant -of -arms of the Council. S/he shall carry out all orders and instructions given by the Presiding Officer for the purpose of maintaining order and decorum in the Council Chambers. Upon instructions from the Presiding Officer, it shall be the duty of the sergeant -of - arms or his/her representative to eject any person from the Council Chambers or place him/her under arrest or both. As set forth in Government Code Section 54957.9, in the event that any meeting is willfully interrupted by a group or groups of persons so as to render the orderly conduct of such meeting unfeasible and order cannot be restored by the removal of individuals who are willfully interrupting the meeting, the members of the Council may order the meeting room cleared and continue in session. Only matters appearing on the agenda may be considered in such a session. Duly accredited representatives of the press or other news media, except those participating in the disturbance, shall be allowed to attend any session held pursuant to this section. Nothing in this section shall prohibit the Council from establishing a procedure for readmitting an individual or individuals not responsible for willfully disturbing the orderly conduct of the meeting. 4.6 PERSONAL PRIVILEGE: The right of a member to interrupt a meeting and address the Council on a question of personal privilege shall be limited to cases in which his/her integrity, character, or motives are assailed, questioned, or impugned. 4.7 CONFLICT OF INTEREST: All Councilmembers are subject to the provisions of California Law, such as Chapter 7, Title 9, of the California Government Code, relative to conflicts of interest, and to conflicts of interest codes adopted by the Council. Any Councilmember disqualified 160 Page 12 of 19 from voting because of a conflict of interest shall do all of the following: (1) publicly identify the financial interest in detail sufficient to be understood by the public, (2) recuse him/herself from discussing and voting on the matter, and (3) leave the dais until after the discussion, vote, and any other disposition of the matter is concluded, unless the matter has been placed on the Consent Calendar. Any Councilmember disqualified from voting due to a conflict of interest may speak on the issue from the public podium during the time that the general public speaks on the issue. The Councilmember disqualified from voting due to a conflict of interest shall be marked absent from the vote for the item on the minutes, unless the item is on the Consent Calendar, in which case, the Councilmember will be marked as having abstained. 4.8 LIMITATION OF DEBATE: Councilmembers should speak only once upon any one subject until every other member choosing to speak thereon has spoken. No member shall speak for a longer time than five minutes each time s/he has the floor, without approval of a majority vote of the Council. 4.9 DISSENTS AND PROTESTS: Any member shall have the right to express dissent from or protest to any action of the Council and have the reason entered in the minutes. If such dissent or protest is desired to be entered in the minutes, this should be made clear by language such as, "I would like the minutes to show that I am opposed to this action for the following reason ..." 4.10 PROCEDURES IN ABSENCE OF RULES: In the absence of a rule herein to govern a point or procedure, Robert's Rules of Order, Newly Revised, shall be used as a guide. 4.11 RULINGS OF PRESIDING OFFICER FINAL UNLESS OVERRULED: In presiding over Council meetings, the Presiding Officer shall decide all questions of interpretation of these rules, points of order or other questions of procedure requiring rulings. Any such decision or ruling shall be final unless overridden or suspended by a majority vote of the Councilmembers present and voting. 5. ADDRESSING THE COUNCIL 5.1 MANNER OF ADDRESSING THE COUNCIL: Any member of the public desiring to address the Council shall proceed to the podium and wait to be recognized by the Presiding Officer. After being recognized, s/he shall state his/her name and/or the party s/he is representing (unless otherwise determined by the city attorney to be unnecessary), the subject s/he wishes to discuss, and city of residence. 161 Page 13 of 19 All remarks and questions shall be addressed to the Presiding Officer and not to any individual Councilmember, staff member or other person. The Presiding Officer shall be addressed at all times as Madam/Mister [title], e.g. Madam Mayor, Mr. Mayor Pro Tem. Councilmembers shall be addressed as Councilmember [last name]. The Council as a body shall be addressed: Madam/Mister Mayor and Members of the City Council. The Presiding Officer shall not permit any communication, oral or written, to be made or read where it is not within the subject matter jurisdiction of the City Council. During a public hearing, all remarks shall be limited to the subject under consideration. No person shall enter into any discussion without being recognized by the Presiding Officer. 5.2 TIME LIMITATION: For time limitation applicable to public hearings and public comment, see Sections 2.5 and 2.6. 5.3 ADDRESSING THE COUNCIL AFTER MOTION IS MADE: After a motion has been made, or after a public hearing has been closed, no member of the public shall address the Council without first securing permission by a majority vote of the Council. 5.4 PERSONS AUTHORIZED TO BE WITHIN PLATFORM: No person except City Officials shall be permitted behind the City Council dais without permission or consent of the Presiding Officer. 6. MOTIONS 6.1 PROCESSING OF MOTIONS: When a motion is made and seconded, it shall be stated by the Presiding Officer before debate. A motion so stated shall not be withdrawn by the mover without the consent of the person seconding it. 6.2 MOTIONS OUT OF ORDER: The Presiding Officer may at any time, by majority consent of the Council, permit a Councilmember to introduce an ordinance, resolution, or motion out of the regular agenda order. 6.3 DIVISION OF QUESTION: If the question contains two or more divisional propositions, the Presiding Officer may, and upon request of a member shall (unless appealed), divide the same. 162 Page 14 of 19 6.4 PROCEDURE OF MOTIONS: When a motion is before the Council, no motion shall be entertained except the following, which shall have precedence in the following order: (a) Adjourn (b) Fix hour of adjournment (c) Table (d) Limit or terminate discussion (e) Amend M Postpone 6.5 MOTION TO ADJOURN: (not debatable) A motion to adjourn shall be in order at any time, except as follows: (a) When repeated without intervening business or discussion. (b) When made as an interruption of a member while speaking. (c) When discussion has been ended, and vote on motion is pending, and (d) While a vote is being taken. 6.6 MOTION TO FIX HOUR OF ADJOURNMENT: Such a motion shall be to set a definite time at which to adjourn and shall be debatable and shall be amendable by unanimous vote. 6.7 MOTION TO TABLE: A motion to table shall be used to temporarily by-pass the subject. A motion to table shall be undebatable and shall preclude all amendments or debate of the subject under consideration. If the motion shall prevail, the matter may be "taken from the table" at any time prior to the end of the next regular meeting. 6.8 MOTION TO LIMIT OR TERMINATE DISCUSSION: Such a motion shall be used to limit or close debate on, or further amendment to, the main motion and shall be undebatable. If the motion fails, debate shall be reopened; if the motion passes, a vote shall be taken on the main motion. 6.9 MOTION TO AMEND: A motion to amend shall be discussed only as to the amendment. A motion to amend an amendment is possible but no additional motions to further amendments may be made. Any amendment shall relate to the original motion and not introduce a different matter. Amendments shall be voted first, then the main motion as amended. Alternatively, the original maker of the main motion may agree to revise the original motion and if the second agrees to second the revised motion, the Council 163 Page 15 of 19 may vote on the main motion as revised. 7. VOTING PROCEDURE 7.1 VOTING PROCEDURE: In acting upon every motion, the vote shall be taken by electronic voting and the Presiding Officer or the City Clerk shall verbally announce (1) whether the question carried or was defeated, (2) the vote tally, and (3) the vote of each Councilmember. In the event the electronic voting machine is not functioning, the vote shall be taken by roll call. The vote on each motion shall then be entered in full upon the record. The order of voting shall be alphabetical with the Mayor voting last. The City Clerk shall call the names of all members seated when a roll call vote is ordered or required. Members shall respond 'aye', 'no' or 'abstain'. Every ordinance and resolution, orders for franchises or payments of money, or adoption or amendment of a specific or general plan require three affirmative votes. Any member may change his/her vote before the next order of business. 7.2 ABSTENTIONS AND FAILURE TO VOTE: A Councilmember who abstains due to reasons of conflict shall, for purpose of the item under consideration, be considered as if absent. A Councilmember abstaining for reasons other than conflict shall be counted as present for purposes of a quorum and such abstentions are counted with the majority. A Councilmember who leaves the dais solely to avoid participating in a specific item shall, in absence of a conflict, be counted as if they were present but abstaining and such abstentions are also counted with the majority. 7.3 RECONSIDERATION: Any Councilmember who voted with the majority may move a reconsideration of any action at the same meeting or, within seven (7) calendar days, request in writing to the City Manager or City Clerk that it be agendized for consideration at the following meeting. If the seventh calendar day falls on a holiday, then the deadline shall be the next business day. In the event that the subject of the reconsideration is a motion that failed as the result of a tie vote, any Councilmember who voted against the earlier motion may move for reconsideration within the same seven (7) calendar day period. If the motion to reconsider passes, then the original item may be reconsidered at that time or agendized for the next meeting that meets any applicable noticing requirements. After a motion for reconsideration has once been acted upon, no other motion for reconsideration thereof shall be made without unanimous consent of the Council. 164 Page 16 of 19 7.4 TIE VOTES: Tie votes shall be lost motions unless an additional motion is made which obtains a majority vote to break the tie. When all Councilmembers are present, a tie vote on whether to grant an appeal from official action shall be considered a denial of such appeal. If a tie vote results at a time when less than all members of the Council are present, the matter shall automatically be continued to the agenda of the next regular meeting of the Council, unless otherwise ordered by the Council. Notwithstanding the above, if a tie vote results at a time when one or more Councilmember(s) are abstaining for reasons other than conflict of interest then, in that instance, the abstention vote shall be counted in favor of the motion thereby breaking the tie vote. 8. RESOLUTIONS 8.1 DEFINITIONS: As a rule of thumb, it can be said that legislative acts of the City Council (usually a rule of public conduct for long-term application) are taken by ordinance, whereas more routine business and administrative matters (usually more temporary and transitory in nature) are accomplished by "resolutions". The term "resolution" in its general sense will denote any action taken affirmatively via a vote of the Council, other than one taken by ordinance. As used in this City, however, two terms are in general use to denote such (non -ordinance) actions: "resolution" and "motion" (thereafter recorded by minute entry). Technically, both are equally as legally effective and binding; they just vary in the formality of respective memo rialization. The most formal is referred to locally as a "resolution". This, in addition to being referenced in the minutes, will be recorded by a separate document, numbered in sequence, and preserved in a separate set of books. Such "resolutions" are used in this City for various reasons, such as when specifically required by law, when needed as a separate evidentiary document to be transmitted to another governmental agency, or where the frequency of future reference back to its contents warrants a separate document (with the additional "whereas" explanatory material it often recites) to facilitate such future reference and research. A "motion" as used locally denotes a Council action which is recorded simply by an item entry in the minutes of the meeting at which it was accomplished, and no separate document is made to memorialize it unless it is a motion to adopt an ordinance or resolution. 8.2 RESOLUTIONS PREPARED IN ADVANCE: Where a resolution has been prepared in advance, the procedure shall be: motion, second, discussion, vote pursuant to methods prescribed in Section 7.1, and result 165 Page 17 of 19 declared. It shall not be necessary to read a resolution in full or by title except to identify it. Any member may require that the resolution be read in full. 8.3 RESOLUTIONS NOT PREPARED IN ADVANCE: Where a resolution has not been prepared in advance, the procedure shall be to instruct the City Manager or the City Attorney to prepare a resolution for presentation at the next Council meeting. 8.4 URGENCY RESOLUTIONS: In matters of urgency, a resolution may be presented verbally in motion form together with instructions for written preparation for later execution. After the resolution has been verbally stated, the voting procedure in 8.2 above shall be followed. 9. ORDINANCES 9.1 INTRODUCTION AND ADOPTION OF ORDINANCES: Ordinances shall not be passed within five days of their introduction, nor at other than a regular meeting or at an adjourned regular meeting. However, an urgency ordinance may be passed immediately upon introduction and either at a regular or special meeting. When ordinances, other than urgency ordinances, are altered after introduction, they shall be passed only at a regular or at an adjourned regular meeting held at least five days after alteration. Corrections of typographical or clerical errors are not alterations within the meaning of this section. 9.2 EFFECTIVE DATE: Except as provided otherwise by law, all ordinances shall take effect 30 days after their final passage but may be made operative at such later date as may be designated in the ordinance. 9.3 PUBLISHING: It shall be the duty of the City Clerk to post or publish all ordinances in accordance with Section 36933 of the Government Code within 15 days after adoption. 10. POLITICAL ACTIVITIES (A) Councilmembers shall not use, or attempt to use, their position, office or authority to influence, aid or obstruct any City employee from securing any position, nomination, confirmation or promotion, or change in compensation or position in the City upon consideration or condition that the vote or political influence or action of such person or another shall be given or used in behalf of, or withheld from, any candidate, officer, or party, or upon any other corrupt condition or consideration. This prohibition shall apply to urging or discouraging the individual employee's action. 166 Page 18 of 19 (B) A Councilmember or candidate shall not, directly or indirectly, solicit political funds or contributions, knowingly, from other officers or employees of the local agency or from persons on an employment list of the City, with the knowledge that the person from whom the contribution is solicited is an officer or employee of the City. This section shall not prohibit the Councilmember from requesting political contributions from officers or employees of the City if the solicitation is part of a solicitation made to a significant segment of the public, which may include officers or employees of the City. (C) No Councilmember or candidate shall engage in political activity during working hours in City offices or work areas where such activity would disrupt the workplace. For purposes of this section, City offices, or work areas includes the areas behind the public counters, but excludes the Council Chambers and Councilmember offices. 11. AUTHORITY TO BIND THE CITY No Councilmember, officer, official, employee, agent or consultant of the City, without the majority vote of the Council, or unless otherwise provided in these Rules of Procedure or by resolution of the Council, shall have any power or authority to bind the City by any contract, to pledge its credits, or to render it liable for any purpose in any amount. 12. EXECUTION OF CONTRACTS, DEEDS, AND OTHER DOCUMENTS Except as otherwise authorized by resolution of the City Council, either the Mayor or City Manager, or in the absence of both, such person as the City Manager may designate in writing pursuant to Municipal Code section 2.08.050 and 2.08.060, shall sign all contracts, deeds and other written instruments on behalf of the City when such have been approved by the City Council. The City Clerk shall attest to the signature of the signer, unless attestation is not required. 13.RULES DIRECTORY To the extent not required by State laws, these rules of procedure shall be considered directory only; and compliance herewith shall not be considered mandatory or jurisdictional. 167 Page 19 of 19 II.T. ATTACHMENT 1 1.1 ORDER OF BUSINESS: ( Formatted: Font: FS Me Except as otherwise provided by law, no action or discussion shall be undertaken on any item not appearing on the posted agenda, except that Councilmembers or staff may, on their own initiative or in response to public comments, briefly respond to statements made or questions posed during the public comment period, ask questions for clarification, make a brief announcement, make a brief report on his/her own activities, provide a reference to staff, request staff to report back to the Council at a subsequent meeting, or take action to direct staff to place a matter on a future agenda. The Gorrder of 14�b usiness of each meeting shall be as contained in the Agenda prepared by the City Clerk and sIluatV a;on aJ.li„u: the f0owlriq �gtt ;,geuxy Il:e.gdlilq�:F W-*4 shah be d ken-..0 p u°..Goilis4erGt n �; th4) figkw�;q oillde:.m. CALL TO ORDER ROLL CALL *PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA (place before Closed session) CLOSED SESSION (may be taken up before, after or during breaks in the open portion of the meeting) *PLEDGE OF ALLEGIANCE *PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA CONFIRMATION OF AGENDA *ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS CONSENT CALENDAR (will include Minutes) BUSINESS SESSION *STUDY SESSION �II�II II�II��A`II:II`'wV llll II�'ll:al��)Il� llq *REPORTS AND INFORMATIONAL ITEMS *l �14� l�q�14=Rd .II�U 1 1 II�II .II�� l S *MAYOR AND COUNCILMEMBERS ITEMS *PUBLIC COMMENT (only needed if there is a Public Hearing(s) on the agenda) *PRESENTATIONS (only needed if there is a late presentation item) PUBLIC HEARINGS ADJOURNMENT The Presiding Officer may change the order of business to accommodate participants, councilmembers, staff, or consultants; expedite the meeting; or meet public hearing notice times. *These portions of the agenda shall be used for discussion and direction to staff; no formal actions are to be taken. ATTACHMENT 1 5.1 MANNER OF ADDRESSING THE COUNCIL: Any member of the public desiring to address the Council shall proceed to the podium and wait to be recognized by the Presiding Officer. After being recognized, s/he shall state his/her name and/or the party s/he is representing (unless otherwise determined by the city attorney to be unnecessary), the subject s/he wishes to discuss, and city of residence. All remarks and questions shall be addressed to the Presiding Officer and not to any individual Councilmember, staff member or other person. I he IlIre ilafi0 Office sIla�ll,ll, be addressed at Wbir nee as Madar n/h' iiste [q.ii eV , g,g,....P` gda gh' g'yg.[, Phu?, h' g,1✓cu? Il3ir ern. Cu�u a;iiVu ,mn ummm�ll p,`"a sIh(ffl be addressed Couwu.ii:c;i it nampiber [V,gu:gu]] , II Iie Couwuul„a:ii g II'rgay ,Il:a H be auddra-n,sa-d: Mndauun/KsLer Mayor yor aund..Meirrullm:ers, of the Ou CouanciH., The Presiding Officer shall not permit any communication, oral or written, to be made or read where it is not within the subject matter jurisdiction of the City Council. During a public hearing, all remarks shall be limited to the subject under consideration. No person shall enter into any discussion without being recognized by the Presiding Officer. WA F CITY / SA / HA / FA MEETING DATE: June 2, 2015 AGENDA CATEGORY: ITEM TITLE: ADOPT RESOLUTION FOR FISCAL YEAR BUSINESS SESSION: 2015/2016 INVESTMENT POLICY CONSENT CALENDAR: 11 STUDY SESSION: PUBLIC HEARING: RECOMMENDED ACTION: Adopt a resolution approving the Investment Policy for Fiscal Year 2015/2016. EXECUTIVE SUMMARY: • California Government Code requires that the City Treasurer submit an annual statement of investment policy. • The City's Investment Advisory Board (IAB) has completed its annual review of the current Investment Policy and has identified minor items that should be updated. The IAB is not recommending any major changes at this time. FISCAL IMPACT: None. BACKGROUNWANALYSIS: The California Government Code imposes certain reporting requirements on State and local agencies, which includes the submittal of an annual statement of investment policy to the legislative body. As a result, in February 2015 the IAB began the process of updating the City's Policy to conform to this legislative requirement. IAB recommended the Fiscal Year 2015/2016 Policy, which has been presented in both a final version (Attachment 1) and redlined version (Attachment 2). The redlined version shows pages that have changed from the prior year. Only minor updates are needed at this time as the IAB conducted a thorough review and revision of the policy `WA in June 2014. Recommendations include changes to the fiscal year being referenced, and an update of bond trustee information (the City refinanced a number of bonds over the past two years so the policy has been updated to reflect these changes). It is City policy to invest all public funds in a manner which will provide a diversified portfolio with maximum security with the highest investment return in conformity with all State and local statutes, while meeting daily cash flow demands. This policy applies to all cash and investments of the City, Successor Agency to the La Quinta Redevelopment Agency, La Quinta Housing Authority and the La Quinta Financing Authority. The primary objectives of investment activity, in order of priority, are: • safety of principal; • liquidity to meet all obligations and requirements that may be reasonably anticipated; and • a risk -based market rate of return, meaning the return on an investment is less important than the safety and liquidity. The portfolio's rates of return will be influenced by actions of the Federal Reserve Board, the market place and overall economic perceptions and conditions. The City's buy and hold policy protects the yield of securities during the holding period because the securities' yields are fixed at the time of purchase. Authority to manage the City's investment portfolio is specified in Section 3.08.010 of the City's Municipal Code. Management responsibility for the investment program is delegated to the City Treasurer, who establishes and implements written procedures for its operation, consistent with the investment policy. The Treasurer is also required to establish and implement a system of internal controls to maintain the safety of the portfolio. The internal control system ensures the timely preparation and accurate reporting of the portfolio financial information. As part of the annual audit of the City's financial statements, the independent auditor reviews the adequacy of those controls and advises the City if weaknesses are found. ALTERNATIVES: Modifications to the Investment Policy may be identified and referred back to the IAB. Report prepared by: Rita Conrad, Finance Director/Treasurer Report approved for submission by: Frank J. Spevacek, City Manager Attachments: 1. Investment Policy for Fiscal Year 2015/2016 2. Redlined version of Fiscal Year 2015/2016 Investment Policy `VA RESOLUTION NO. 2015- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA APPROVING AND ADOPTING THE AMENDED INVESTMENT POLICY FOR FISCAL YEAR 2015/2016 WHEREAS, the general purpose of the Investment Policy is to provide the rules and standards users must follow in investing funds of the City of La Quinta; and WHEREAS, the primary objectives, in order of priority, of the City of La Quinta's investment activity shall be: Safety of principal is the foremost objective of the investment program. Investments of the City of La Quinta shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The investment portfolio shall remain sufficiently !Lquid to meet all operating requirements that may be reasonably anticipated. The investment portfolio shall be designed with the objective of attaining a market rate of return or iy eld throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs; and WHEREAS, authority to manage the City of La Quinta's investment portfolio is derived from the City's municipal code, management responsibility for the investment program is delegated to the City Treasurer, who shall establish and implement written procedures for the operation of the City's investment program consistent with the Investment Policy for Fiscal Year 2015/2016; and WHEREAS, the Investment Policy will be adopted before the end of June of each year and amended as considered necessary. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta to adopt the Fiscal Year Investment Policy (Exhibit A). 173 Resolution No. 2015- Investment Policy Adopted: June 2, 2015 Page 2 of 3 PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council, held on this 2ND day of June, 2015 by the following vote: AYES: NOES: ABSTAIN: ABSENT: LINDA EVANS, Mayor City of La Quinta, California ATTEST: SUSAN MAYSELS, City Clerk City of La Quinta, California (CITY SEAL) APPROVED AS TO FORM: WILLIAM H. IHRKE, City Attorney City of La Quinta, California 174 Resolution No. 2015- Investment Policy Adopted: June 2, 2015 Page 3 of 3 Exhibit A (TO BE ATTACHED) IWki.. `rc qb� dah, -- GEM (,�'tlle DESERT CITY OF LA QUINTA Investment Policy Fiscal Year 2015/2016 Table of Contents Section Topic Page Executive Summary 2 1 General Purpose 4 11 Investment Policy 4 III Scope 4 IV Objectives 4 ► Safety of Principal ► Provide Liquidity ► Yield A Risk -Based Market Rate Of Return V Maximum Maturities 6 VI Prudence 6 V11 Authority 6 Vill Ethics and Conflicts of Interest 7 IX Authorized Financial Dealers and Institutions 7 ► Broker/Dealers ► Financial Institutions X Permissible Deposits and Investments 8 XI Investment Pools 12 X11 Payment and Custody 12 X111 Interest Earning Distribution Policy 13 XIV Internal Controls and Independent Auditors 13 XV Reporting Standards 14 XVI Financial Assets and Investment Activity Not Subject to this Policy 15 XV11 Investment of Bond Proceeds 15 X111 Investment Advisory Board - City of La Quinta 15 XIX Investment Policy Adoption 16 Appendices Topic Page A Summary of Permissible Deposits and Investments 17 B City of La Quinta Municipal Code Ordinance 2.70 - Investment Advisory Board 19 C City of La Quinta Municipal Code Ordinance 3.08 - Investment of Moneys and Funds 20 D Segregation of Major Investment Responsibilities 22 E Listing of Approved Financial Institutions 23 F Broker/Dealer Questionnaire and Certification 24 G Request for Proposal for Professional Portfolio Management Firm 28 H Permissible Investment Chart — Professional Portfolio Management Firm 34 1 Investment Management Process and Risk 35 J Glossary 36 1 178 CITY OF LA QUINTA Investment Policy Fiscal Year 2015/2016 Executive Summary The general purpose of this Investment Policy is to provide the rules and standards that must be followed in administering the City of La Quinta's deposits and investments. The City's Investment Policy conforms to all state and local statutes and applies to all deposits and investments of the City of La Quinta (the"City"). It is the City's policy to deposit and invest public funds in a manner that shall provide: ► Safety of principal; ► Liquidity to meet all of the City's obligations and requirements that may be reasonably anticipated; and ► A risk -based market rate of return. It is the City's policy to hold securities and other investments until maturity. This buy -and -hold policy shall not prevent the sale of a security to minimize loss of principal when an issuer or backer suffers declining credit worthiness or when the liquidity needs of the portfolio require that a security be sold. Authority to manage the City's investment portfolio is derived from the City Municipal Code. Management responsibility for the investment program is delegated to the City Treasurer, who shall establish and implement written procedures for the operation of the City's investment program consistent with the Investment Policy. The Treasurer shall establish and implement a system of internal controls to accomplish the following objectives: ► Safeguard assets; ► Orderly and efficiently conduct its business, including adherence to all City management policies; ► Prevent or detect errors and fraud; ► Accurately complete all accounting records; and ► Timely prepare all reliable financial information. The System of Internal Controls developed by the City Treasurer shall be reviewed annually by the independent auditors in connection with the annual audit of the City's financial statements. The City Manager, City Treasurer and city employees involved in the City's banking and investment process shall conduct the City's business in an ethical manner and refrain from any activity or relationship that may be, or have the appearance of, a conflict of interest. The City Treasurer maintains a listing of financial institutions which are approved for investment purposes. All Broker/Dealers and financial institutions that provide investment services will be subject to City Council approval. The Treasurer will be permitted to invest only in the permissible deposits and investments described in Section X and Appendix A up to the specified maximum allowable percentages and/or dollar limitations and, where applicable, through the bid process requirements. Permissible deposits and investments include, in general: ► FDIC -Insured Checking, Savings, and Sweep Accounts; ► Collateralized Bank Deposits; 2 179 ► Certificates of Deposit; ► Negotiable Certificates of Deposit; ► U.S. Government Agency Securities and Federal Government Securities; ► Prime Commercial Paper; ► Local Agency Investment Fund (LAIF); ► Money Market Mutual Funds; ► Corporate Notes; and ► Professionally Managed Accounts. The City's deposits and investments are generally limited to three years' maximum maturity. However, the projected amount of funds not expected to be disbursed within five years may be invested in notes and bonds maturing between three and five years. Additionally, funds may be invested for up to ten (10) years as further discussed in Section V. The City's Investment Policy does not specify a single benchmark as a goal or target yield for a rate of return on its investment portfolio. As a basis for comparison only, the Treasurer's monthly report will display the rates of return on the three-month Bill, six-month Bill, and the one and two-year U.S. Treasury Note, comparable -period rates for commercial paper, and the yield for the State Treasurer's Local Agency Investment Fund (LAIF). The Investment Policy shall be adopted by resolution of the La Quinta City Council on an annual basis. The Investment Policy will be adopted before the end of June of each year. This Executive Summary is only an overview of the City's Investment Policy. Reading this summary does not constitute a complete review, which can only be accomplished by reviewing all of the pages herein. 3 180 City of La Quinta Statement of Investment Policy July 1, 2015 through June 30, 2016 Adopted by the City Council on , 2015 GENERAL PURPOSE The general purpose of this document is to provide the rules and standards that must be followed in administering the City of La Quinta's deposits and investments. II INVESTMENT POLICY It is the policy of the City of La Quinta to deposit and invest public funds in a manner that shall provide: ► Safety of principal; ► Liquidity to meet all of the City's obligations and requirements that may be reasonably anticipated; and ► A risk -based market rate of return. The Investment Policy conforms to all State and local statutes governing the investment of public funds and sets forth the permissible deposits and investments of the City's funds and the limitations thereon. III SCOPE Except as further detailed in Section XVII, this Investment Policy applies to all deposits and investments of the City of La Quinta, Successor Agency to the City of La Quinta Redevelopment Agency and the City of La Quinta Financing and Housing Authorities (hereafter referred to in this document as the "City"). These funds are reported in the City's Comprehensive Annual Financial Report (CAFR) and include all funds within the following fund types: ► General ► Special Revenue ► Capital Projects ► Debt Service ► Enterprise ► Internal Service ► Trust and Agency ► Any new fund types and fund(s) that may be created. IV OBJECTIVES The objectives of the City's investment activity, in order of priority and importance, are: 1. Safety of Principal Safety of principal is the foremost objective of the City's investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of principal of the overall portfolio in accordance with the permissible deposits and investments. 4 181 The City shall endeavor to preserve its investment principal by making only permissible deposits and investments, undertaken in a controlled manner to minimize the possibility of loss or misappropriation through malfeasance or otherwise. Investments not backed by the full faith and credit of the United States Government shall be diversified by allocating assets between different types of permissible investments, maturities, and issuers as a means to mitigate credit risk and interest rate risk. a. Credit Risk is the risk of loss from the failure of the security issuer or backer. Credit risk may be mitigated by: ► Limiting investments to investment grade securities as permitted in Section X; ► Diversifying the issuers of the securities in the investment portfolio so that potential losses due to issuer failure or individual securities downgrades may be minimized. b. Interest Rate Risk is the risk that market values of securities in the portfolio will decline due to changes in general interest rates. Interest rate risk may be mitigated by: ► Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity; and ► Investing operating funds primarily in shorter -term securities. C. Liquidity Risk is the risk that a security cannot be liquidated because of its unique features or structure or because it is thinly traded. Liquidity risk is not a material issue for the City's portfolio because of the permissible deposits and investments (see Section X) and because the City maintains a buy -and -hold policy and holds securities and other investments to maturity. A discussion of the City's investment process and risk is presented in Appendix I. 2. Provide Liquidity The investment portfolio shall remain sufficiently liquid to meet all of the City's cash needs that may be reasonably anticipated. This is accomplished by structuring the portfolio so that sufficient liquid funds are available to meet anticipated demands. Furthermore, since all possible cash needs cannot be anticipated the portfolio should be diversified and consist of securities with active secondary or resale markets. The City's policy is to hold securities and other investments to maturity. Accordingly, securities shall not be sold prior to maturity with the following exceptions: ► A security with declining credit quality can be sold early to minimize loss of principal; ► Unanticipated liquidity needs of the portfolio require that one or more securities be sold. 3. Yield a Risk -Based Market Rate Of Return The City's investment portfolio shall be structured with the objective of yielding a risk - based market rate of return throughout budgetary and economic cycles. Return on investment is less important than the safety and liquidity objectives described above. The City's Investment Policy does not specify a single benchmark as a goal or target yield for a rate of return on its investment portfolio. The portfolio's rates of return will be influenced by several factors, including actions by the Federal Reserve Board, the marketplace, and overall economic perceptions and conditions. These factors will not 5 182 affect yield during the securities' holding period because the City's buy -and -hold policy fixes the securities' yield at the time of purchase. As a basis for comparison only, the Treasurer's monthly reports will display the rates of return on the three-month Bill, six-month Bill, and one and two-year U.S. Treasury Note, comparable -period rates for commercial paper, and the yield for the State Treasurer's Local Agency Investment Fund (LAIF). The Treasurer may use these or any other published rates of return that the Treasurer deems appropriate for comparison to the return on the City's investment portfolio. V MAXIMUM MATURITIES It is the City's policy to hold securities and other investments until maturity, thus avoiding the risk of market value fluctuations with overall market interest rates. This buy -and -hold policy shall not prevent the sale of a security to minimize loss of principal when an issuer or backer suffers declining credit worthiness or when the liquidity needs of the City require that a security be sold. The buy -and -hold policy requires that the City's investment portfolio be structured so that sufficient liquid funds are available from maturing investments and other sources to meet all reasonably -anticipated cash needs. To meet anticipated cash needs, it is essential that the Treasurer have reliable, diligently prepared cash flow projections. Annually, the Treasurer shall project the amount of funds not expected to be disbursed within ten years. For FY2015/2016, the amount of such funds is projected to be $20 million. Funds up to that amount may be invested in U.S.Treasury notes and bonds, Local Agency Obligations, and California Local Agency Obligations maturing between 3 and 10 years. For all other funds, investments are limited to five years maximum maturity. VI PRUDENCE The City shall follow the Uniform Prudent Investor Act as adopted by the State of California in Probate Code Sections 16045 through 16054. Section 16053 sets forth the terms of a prudent person which are as follows: "Investments shall be made with judgment and care - under circumstances then prevailing - which persons of prudence, discretion, and intelligence exercise in the professional management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived." VII AUTHORITY Authority to manage the City's investment portfolio is derived from section 3.08 of the City's Municipal Code. Management responsibility for the investment program is delegated to the City Treasurer for a period of one year pursuant to the City Council's annual adoption of the Investment Policy. The City Treasurer shall establish written procedures for the operation of the investment program consistent with the Investment Policy. Procedures should include reference to safekeeping, wire transfer agreements, banking service contracts, and collateral/depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment 6 183 transactions. No person may engage in an investment transaction except as provided under the terms of this Investment Policy and the procedures established by the City Treasurer. The City Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. The City Manager or his/her designee shall acknowledge in writing all purchases and sales of investments prior to their execution by the City Treasurer. VIII ETHICS AND CONFLICTS OF INTEREST The City Manager, City Treasurer and city employees involved in the City's banking and investment process shall conduct the City's business in an ethical manner and refrain from any activity or relationship that may be, or have the appearance of, a conflict of interest. Any questionable activity or relationship shall be reported immediately and in compliance with the procedures set forth in Section 1.40 — Conflicts of Interest and Acceptance of Gifts and other Gratuities of the City of La Quinta Personnel Manual. Reporting must be made in accordance with the personnel policies of the City and, until resolved, the officer or employee shall refrain from participating in the City's business related to the matter. The City Manager, City Treasurer and City employees may conduct personal business with banks, brokers, and other financial institutions that are authorized to conduct business with the City provided that the terms of the activity to the accountholder with the City are the same as those that are available to the public in general. IX AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The City Treasurer maintains a listing of financial institutions which are approved for direct investment purposes. In addition a list will also be maintained of approved broker/dealers selected by credit worthiness. 1 . Broker/Dealers who desire to become bidders for direct investment transactions must supply the City with the following: ► Current audited financial statements; ► Proof of Financial Industry Regulatory Authority (FINRA) Certification; ► Trading resolution; ► Resume of Financial broker; and ► Completion of the City of La Quinta Broker/Dealer questionnaire (see Appendix F) which contains a certification of having read the City's Investment Policy. The City Treasurer shall evaluate the documentation submitted by the broker/dealer and independently verify existing reports on file for any firm and individual conducting investment related business. The City Treasurer will also contact the following agencies during the verification process: ► Financial Industry Regulatory Authority (FINRA) Public Disclosure Report File (1- 800-289-9999). ► State of California Department of Corporations (1-916-445-3062). The City Treasurer maintains a listing of financial institutions which are approved for investment purposes. All Broker/Dealers and financial institutions that provide investment services will be subject to City Council approval. 7 184 Each securities dealer shall provide monthly and quarterly reports filed pursuant to U.S. Treasury Department regulations. Each mutual fund shall provide a prospectus and statement of additional information. 2. Financial Institutions will be required to meet the following criteria in order to receive City funds for deposit or investment (see Appendix E, "Listing of Approved Financial Institutions"): a. Insurance - Public Funds shall be deposited only in financial institutions having accounts insured by the Federal Deposit Insurance Corporation (FDIC). b. Collateral - The amount of the City's deposits or investments not insured by the FDIC —shall be collateralized by securities with market values of 110%, or by mortgages with market values 150%, of the amount of invested funds plus unpaid interest earnings. C. Disclosure - Each financial institution maintaining invested funds in excess of the FDIC insured amount shall furnish the City a copy of the most recent Call Report. The City shall not invest in excess of the FDIC insured amount in banking institutions which do not disclose to the city a current listing of securities pledged for collateralization in public monies. X PERMISSIBLE DEPOSITS AND INVESTMENTS Permissible deposits and investments are summarized below. A more comprehensive list is included in Appendix A. Permissible Investments and Limitations Maximum Maximum Restrictions (See Appendix A for Additional Information) Allocation Maturity Current / Sweep Account: Checking & Savings Accounts FDIC Insured & Sweep Accounts 85% of Portfolio On Demand U.S. Treasuries and/or GSE's Interest bearing active bank deposits — non FDIC insured collateralized by 60% of Portfolio Current / $40 million 110% of eligible securities On Demand per bank Certificates of Deposit - FDIC Insured o 60 /o of Portfolio 5 Years - $250,000, including interest per institution — $250,000 Negotiable Certificates of Deposit — FDIC Insured 30% of Portfolio 5 Years including interest per institution < $20,000,000 U.S. Treasury Bills, Notes and Bonds, and Government National 100% of Portfolio 5 Years maturing 3-10 Mortgage Association (GNMA) Securities Yrs. < $20,000,000 maturing 3-10 Local Agency Bonds / California Local Agency Obligations 30% of Portfolio 10 Years Yrs. Long term "A, A2, A" or better U.S. Government Agency Securities and Federal Government Securities $10 million per (except collateralized mortgage obligations (CMO's) or structured notes purchase which contain embedded rate options): 8 185 Permissible Investments and Limitations Maximum Maximum Restrictions (See Appendix A for Additional Information) Allocation Maturity Federal National Mortgage Association (FNMA) $20,000,000 5 Years 30% of Portfolio Federal Home Loan Bank Notes & Bonds (FHLB) $25,000,000 5 Years Federal Farm Credit Bank (FFCB) $30,000,000 5 Years Federal Home Loan Mortgage Corporation (FHLMC) $20,000,000 5 years Prime Commercial Paper including Temporary Liquidity Guarantee 15% of Portfolio 90 Days $5,000,000 per Program (TLGP) issuer maximum Local Agency Investment Fund (LAIF) 30% of Portfolio Current / $50 million On Demand per account Money market mutual funds regulated by the SEC that consist only of US 20% of Portfolio Current / Maintain $1 per Treasury Securities or GSE's and maintain a par value of $1 per share On Demand share par value $5,000,000 max Corporate Notes 10% of Portfolio 3 Years per issuer AA rated or better $10,000,000 max Corporate Notes - Temporary Liquidity Guarantee Program (TLGP) 20% of Portfolio 3 Years per issuer, AA rated or better Requires Professionally Managed Account 10% of Portfolio 3 Years City Council - Approved RFP Long -Term Scale S&P A 1 AAA, AA + , AA, AA-, A + , A Moody's P1 Aaa, Aa1, Aa2, Aa3, Al, A2 Fitch AAA, AA + , AA, AA-, A + , A Checking, Savings, and Sweep Accounts — The City will only maintain checking, savings, and sweep accounts with FDIC insured financial institutions. As authorized by the City Council, a U.S. Treasury and/or U.S. Agency Securities Money Market Sweep Account with a $50,000 target balance may be maintained in conjunction with the checking account. In addition, the Treasurer may invest in an interest bearing active deposit account as approved in Government Code Section 53632. The deposit account must be collateralized with securities that are in accordance with Government Code Sections 53632.5(c). In addition, the market value of the collateralized securities must be maintained in accordance with 53652 (a), and be held by a custodian in accordance with the requirements of Government Code Section 53656. The proposition of the City's share of the deposit account shall be determined in accordance with Government Code Section 53658. Certificates of Deposit - As authorized in Government Code Section 53649, Certificates of Deposit are fixed term investments which are required to be collateralized from 1 10% to 150% depending on the specific security pledged as collateral in accordance with Government Code Section 53652. Collateralization will be required for Certificates of Deposits in excess of the FDIC insured amount. The type of collateral is limited to City authorized investments. Collateral will always be held by an independent third party from the institution that sells the Certificates of Deposit to the City. Evidence of compliance with State Collateralization policies must be supplied to the City and retained by the City Treasurer as follows: 9 186 ► Certificates of Deposits Insured by the FDIC: The City Treasurer may waive collateralization of a deposit that is federally insured. ► Certificates of Deposit in excess of FDIC Limits: The amount not federally insured shall be 1 10% collateralized securities or 150% mortgages market value of that amount of invested funds plus unpaid interest earnings. The City's Investment Policy limits the percentage of Certificates of Deposit to 60% of the portfolio. Negotiable Certificates of Deposit - issued by a nationally or state -chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a federally- or state- licensed branch of a foreign bank. No more than 30% of the City's portfolio may be invested in negotiable CDs. U.S. Treasury Bills, Notes, and Bonds and Government National Mortgage Associations (GNMA) securities — The City may invest in U.S. Treasury bills, notes, and bonds and GNMA securities directly issued and backed by the full faith and credit of the U.S. Government. The City's Investment Policy provides for investments in U.S. Treasury issues and GNMA's of 100% of the portfolio. ► The City's Investment Policy does not allow investments in state indebtedness. Local Agency Bonds and California Local Agency Obligations — The City may invest in California local agency obligations pursuant to 56301(a) and 53301(e). 53601(a) pertains to investing in bonds issued by a local agency, department, board, agency or authority of the local agency. 53601(e) pertains to investing in bonds and other defined indebtedness of a local agency or department, board, agency or authority of the local agency within the State of California. The City's Investment Policy limits investments in Local Agency Bonds and California Local Agency obligations to 30% of the portfolio with up to a ten year maximum maturity. In addition, the Agency obligations must be invested in the long term rating of A, A2, A or better by S&P, Moody's or Fitch. In the case of an initial public offering, including refinancings, the Treasurer may purchase directly from the Bond Underwriter. In the case of secondary issues, the Treasurer will rely on the approved Broker/Dealers. U.S. Government Agency Securities and Federal Government Securities — The City may invest in securities issued by U.S. Government instrumentalities and agencies (commonly referred to as government sponsored enterprises or GSE's). These securities are not backed by the full faith and credit of the U.S. Government. Publicly owned GSE's include Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC) and Student Loan Marketing Association (SLMA). Non -publicly owned GSE's include the Federal Home Loan Bank (FHLB), Federal Farm Credit Bank (FFCB), Federal Land Bank (FLB) and Federal Intermediate Credit Bank (FICB). The City's Investment Policy allows investment only in securities of FNMA, FHLMC, FHLB and FFCB. For Fiscal Year 2015/2016, the maximum face amount per issuer is $20 million for FNMA and FHLMC, $25 million for FHLB and $30 million for FFCB. In addition, 10 187 no more than 30% of the portfolio surplus may be invested in all GSE's combined with a maximum $10 million face amount per purchase. Prime Commercial Paper - As authorized in Government Code Section 53601(g), a portion of the City's portfolio may be invested in commercial paper of the highest rating (Al or P1) as rated by Moody's or Standard and Poor's. There are a number of other qualifications regarding investments in commercial paper based on the financial strength of the corporation and the size of the investment. The City's Investment Policy permits investments in commercial paper with the following limitations: ► Maximum 15 % of the portfolio. ► Maximum maturity of 90 days. ► Maximum of $5 million per issuer. These limitations are more restrictive than the State code which allows amounts of 25 % of the total portfolio with maturities up to 270 days with no per -issuer limitations. Local Agency Investment Fund (LAIF) - As authorized in Government Code Section 16429.1 and by LAIF procedures, local government agencies are each authorized to invest a maximum of $50 million per account in this investment program administered by the California State Treasurer. The City Treasurer may not invest more than $50 million per account in LAIF. The City's investment in LAIF is allowable as long as the average maturity of its investment portfolio does not exceed two years, unless specific approval is authorized by the City Council. The City limits investment to 30% of the portfolio. Money Market Mutual Funds - As authorized in Government Code Section 53601(k), local agencies are authorized to invest in shares of beneficial interest issued by diversified management companies (mutual funds) in an amount not to exceed 20% of the agency's portfolio. There are a number of other qualifications and restrictions regarding allowable investments in corporate notes and shares of beneficial interest issued by mutual funds which include 0 ) attaining the highest ranking or the highest letter and numerical rating provided by not less than two of the three largest nationally recognized rating services, or (2) having an investment advisor registered with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations and with assets under management in excess of five hundred million dollars ($500,000,000). The City's Investment Policy only allows investments in mutual funds that are money market funds maintaining a par value of $1 per share that invest in direct issues of the U.S. Treasury and/or US Agency Securities with an average maturity of their portfolio not exceeding 90 days and the City limits such investments to 20% of the portfolio. Corporate Notes - As authorized in Government Code Section 53601 (j), local agencies may invest in corporate notes. The notes must be issued by corporations organized and operating in the United States or by depository institutions licensed by the United States or any other state and operating in the United States. The City's Investment Policy allows investment in corporate notes authorized by the Government Code with the following limitations: ► Maturities shall not exceed three years from date of purchase; ► Eligible notes shall be regularly quoted and traded in the marketplace; ► Eligible notes shall be rated "AA" or better; and ► The maximum aggregate investment shall not exceed $5 million face amount for each issuer. 11 188 This is more restrictive than the State code allowed amounts of 30% of the total portfolio with maturities up to five years with no per -issuer limitations. Professionally Managed Account(s) - The City Treasurer may place up to 10% of the portfolio with a professional portfolio management firm ("PPMF"). The PPMF will be approved by the City Council based upon the City Treasurer's recommendation pursuant to completion of a request for proposal (RFP) as outlined in Appendix G. The PPMF shall have: ► An established professional reputation for asset or investment management; ► Knowledge and working familiarity with State and Federal laws governing and restricting the investment of public funds; ► Substantial experience providing investment management services to local public agencies whose investment policies and portfolio size are similar to those of the City; ► Professional liability (errors and omissions) insurance and fidelity bonding in such amounts as are required by the City; and ► Registration with the Securities and Exchange Commission under the Investment Advisers Act of 1940. Before engagement by the City and except as may be specifically waived or revised, the PPMF shall commit to adhere to the provisions of the City's Investment Policy with the following exceptions: ► The PPMF may be granted the discretion to purchase and sell investment securities in accordance with Appendix I of this Investment Policy; ► The PPMF is not required to adhere to the buy -and -hold policy of the City's Investment Policy; and ► The PPMF does not need City Manager or City Treasurer approval to make permissible investments as detailed in column 8 of Appendix H of this Investment Policy. XI INVESTMENT POOLS There are three (3) types of investment pools: ► State -run pools (e.g., LAIF); ► Pools that are operated by a political subdivision where allowed by law and the political subdivision is the trustee (e.g., County Pools); and ► Pools that are operated for profit by third parties. The City's Investment Policy permits investment only in pools authorized in Section X. XII PAYMENT AND CUSTODY The City shall engage qualified third party custodians to act in a fiduciary capacity to maintain appropriate evidence of the City's ownership of securities and other eligible investments. Such custodians shall disburse funds, received from the City for a purchase, to the broker, dealer or seller only after receiving evidence that the City has legal, record ownership of the securities. Even though ownership is evidenced in book -entry form rather than by actual certificates, this 12 189 procedure is commonly accepted as the delivery versus payment (DVP) method for the transfer of securities. XIII INTEREST EARNING DISTRIBUTION POLICY Interest earnings are generated from pooled investments and specific investments. The following provisions apply to the calculation and distribution of interest earnings. 1 . Pooled Investments - It is the general policy of the City to pool all available operating cash of the City of La Quinta, Successor Agency to the City of La Quinta Redevelopment Agency, La Quinta Financing Authority, and La Quinta Housing Authority, and to allocate interest earnings in the following order, as follows: a. Payment to the General Fund of an amount equal to the total annual bank service charges as incurred by the general fund for all operating funds as included in the annual operating budget. b. Payment to the General Fund of a management fee equal to 5 % of the annual pooled cash fund investment earnings. C. Payment to each fund of an amount based on the average computed daily cash balance included in the common portfolio for the earning period. 2. Specific Investments - Specific investments purchased by a fund shall incur all earnings and expenses to that particular fund. XIV INTERNAL CONTROLS AND INDEPENDENT AUDITOR The City Treasurer shall establish a system of internal controls to accomplish the following objectives: ► Safeguard assets; ► The orderly and efficient conduct of its business, including adherence to management policies; ► Prevention or detection of errors and fraud; ► The accuracy and completeness of accounting records; and ► Timely preparation of reliable financial information. While no internal control system, however elaborate, can guarantee absolute assurance that the City's assets are safeguarded, it is the intent of the City's internal control to provide a reasonable assurance that management of the investment function meets the City's objectives. The internal controls shall address the following: ► Control of collusion. Collusion is a situation where two or more employees are working in conjunction to defraud their employer. ► Separation of transaction authority from accounting and record keeping. By separating the person who authorizes or performs the transaction from the people who record or otherwise account for the transaction, a separation of duties is achieved. 13 190 ► Custodial safekeeping. Securities purchased from any bank or dealer including appropriate collateral (as defined by State Law) shall be placed with an independent third party for custodial safekeeping. ► Avoidance of physical delivery securities. Book entry securities are much easier to transfer and account for since actual delivery of a document never takes place. Delivered securities must be properly safeguarded against loss or destruction. The potential for fraud and loss increases with physically delivered securities. ► Clear delegation of authority to subordinate staff members. Subordinate staff members must have a clear understanding of their authority and responsibilities to avoid improper actions. Clear delegation of authority also preserves the internal control structure that is contingent on the various staff positions and their respective responsibilities as outlined in the Segregation of Major Investment Responsibilities appendices. ► Written confirmation or telephone transactions for investments and wire transfers. Due to the potential for error and improprieties arising from telephone transactions, all telephone transactions shall be supported by written communications or electronic confirmations and approved by the appropriate person. Written communications may be via fax if on letterhead and the safekeeping institution has a list of authorized signatures. Fax correspondence must be supported by evidence of verbal or written follow-up. ► Development of a wire transfer agreement with the City's bank and third party custodian. This agreement should outline the various controls, security provisions, and delineate responsibilities of each party making and receiving wire transfers. The system of internal controls developed by the City, shall be reviewed annually by the independent auditor in connection with the annual audit of the City's Financial Statements. The independent auditor's letter on internal control over financial reporting and compliance as it pertains to cash and investments, if any, shall be directed to the City Manager who will direct the City Treasurer to provide a written response to the independent auditor's letter. The auditor's letter, as it pertains, to cash and investment activities and the City Treasurer's response shall be provided to the City's Investment Advisory Board for their consideration. Following the completion of each annual audit, the independent auditor shall meet with the Investment Advisory Board and discuss the auditing procedures performed and the review of internal controls for cash and investment activities. See Appendix D, "Segregation of Major Investment Responsibilities." XV REPORTING STANDARDS The City Treasurer shall submit a monthly Treasurers Report to the City Council and the Investment Advisory Board that includes all cash and investments under the authority of the Treasurer. The Treasurer's Report shall summarize cash and investment activity and changes in balances and include the following: ► A certification by the City Treasurer; ► A listing of purchases and sales/maturities of investments; ► Cash and Investments categorized by authorized investments, except for LAIF which will be provided quarterly and show yield and maturity; ► Comparison of month end actual holdings to Investment Policy limitations; ► Current year and prior year monthly history of cash and investments for trend analysis; ► Balance Sheet; 14 191 ► Distribution of cash and investment balances by fund; ► A year to date historical cash flow analysis and projection for the next six months; and ► A two-year list of historical interest rates. XVI FINANCIAL ASSETS AND INVESTMENT ACTIVITY NOT SUBJECT TO THIS POLICY The City's Investment Policy does not apply to the following: ► Cash and Investments raised from Conduit Debt Financing ► Funds held in trust in the City's name in pension or other post -retirement benefit programs ► Cash and Investments held in lieu of retention by banks or other financial institutions for construction projects ► Short or long term loans made to other entities by the City or Agency Short term (Due to/from) or long term (Advances from/to) obligations made either between the City and its funds or between the City and Agency XVII INVESTMENT OF BOND PROCEEDS The City's Investment Policy shall govern bond proceeds and bond reserve fund investments. California Code Section 5922 (d) governs the investment of bond proceeds and reserve funds in accordance with bond indenture provisions which shall be structured in accordance with the City's Investment Policy. Arbitrage Requirement - The US Tax Reform Act of 1986 requires the City to perform arbitrage calculations as required and return excess earnings to the US Treasury from investments of proceeds of bond issues sold after the effective date of this law. These arbitrage calculations may be contracted with an outside source to provide the necessary technical assistance to comply with this regulation. Investable funds subject to the 1986 Tax Reform Act will be kept segregated from other funds and records will be kept in a fashion to facilitate the calculations. The City's investment position relative to the new arbitrage restrictions is to continue pursuing the maximum yield on applicable investments while ensuring the safety of capital and liquidity. It is the City's position to continue maximization of yield and to rebate excess earnings, if necessary. XVIII INVESTMENT ADVISORY BOARD - CITY OF LA QUINTA The Investment Advisory Board (IAB) is a standing board composed of five members from the public that are appointed by the City Council. Background information will be requested and potential candidates must agree to a background check and verification. On an annual basis, in conjunction with the Political Reform Act disclosure statutes, or at any time if a change in circumstances warrants, each board member will provide the City Council with a disclosure statement which identifies any matters that have a bearing on the appropriateness of that member's service on the board. All board members shall report annually to the City Clerk on Form 700, Statement of Economic Interests, any activities, interests, or relationships that may be, or have the appearance of, a conflict of interest. 15 192 The IAB must meet at least quarterly, but usually meets monthly, to: ► Review at least annually the City's Investment Policy and recommend appropriate changes; ► Review monthly treasury report and note compliance with the Investment Policy and adequacy of cash and investments for anticipated obligations; ► Receive and consider other reports provided by the City Treasurer; ► Meet with the independent auditor after completion of the annual audit of the City's financial statements, and receive and consider the auditor's comments on auditing procedures, internal controls and findings for cash and investment activities; and ► Serve as a resource for the City Treasurer on matters such as proposed investments, internal controls, use or change of financial institutions, custodians, brokers and dealers. The IAB will report to the City Council after each meeting either in person or through correspondence at a regular City Council meeting. See Appendix B: "Investment Advisory Board Provisions." XIX INVESTMENT POLICY ADOPTION The City's Investment Policy will be reviewed annually by the City's Investment Advisory Board and the City Treasurer. The Investment Advisory Board will forward the Investment Policy with any revisions to the City Manager and City Attorney for their review and comment. A joint meeting will be held with the Investment Advisory Board, City Manager, City Attorney, and City Treasurer to review the Investment Policy and any comments prior to submission to the City Council for their consideration. 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U) C6 C., N a) m(,� O N Cl)Lo w f- 00 C O C O L a O O LO rn Appendix B City of La Quinta Municipal Code Chapter 2.70 INVESTMENT ADVISORY BOARD PROVISIONS Sections: 2.70.010 General Rules Regarding Appointment. 2.70.020 Board Meetings. 2.70.030 Board Functions. 2.70.010 General rules regarding appointment A. Except as set out below, see Chapter 2.06 for General Provisions. B. The Investment Advisory Board (the"board") is a standing board composed of five (5) members from the public that are appointed by city council. C. Applicants for the board should have a background in finance, preferably with knowledge and/or experience in markets, controls and accounting for securities. Background information will be requested and potential candidates must agree to a background check and verification. D. On an annual basis, in conjunction with the Political Reform Act disclosure statutes, or at any time if a change in circumstances warrants, each board member will provide the City Council with a disclosure statement which identifies any matters that have a bearing on the appropriateness of that member's service on the board. Such matters may include, but are not limited to, changes in employment, changes in residence, or changes in clients. E. To promote continuity, the expiration of the terms of the members of the board shall be staggered. The term of service is three years, with one or two terms expiring each year. 2.70.020 Board meetings. The Board usually will meet monthly, but this schedule may be extended to quarterly meetings upon the concurrence of the Board and the City Council. The specific meeting dates will be determined by the Board Members and meetings may be called for on an as needed basis. 2.70.030 Board functions. A. The principal functions of the Board are: (1) review at least annually the City's Investment Policy and recommend appropriate changes; (2) review monthly Treasury Report and note compliance with the Investment Policy and adequacy of cash and investments for anticipated obligations; (3) receive and consider other reports provided by the City Treasurer; (4) meet with the independent auditor after completion of the annual audit of the City's financial statements, and receive and consider the auditor's comments on auditing procedures, internal controls, and findings for cash and investment activities, and; (5) serve as a resource for the City Treasurer on matters such as proposed investments, internal controls, use or change of financial institutions, custodians, brokers and dealers. B. The Board will report to the City Council after each meeting either in person or through correspondence at a regular City Council meeting. 19 IDZ Appendix C City of La Quinta Municipal Code Chapter 3.08 INVESTMENT OF MONEYS AND FUNDS Sections: 3.08.010 Investment of city moneys and deposit of securities. 3.08.020 Authorized investments. 3.08.030 Sales of securities. 3.08.040 City bonds. 3.08.050 Reports. 3.08.060 Deposits of securities. 3.08.070 Trust fund administration. 3.08.010 Investment of city moneys and deposit of securities. Pursuant to, and in accordance with, and to the extent allowed by, Sections 53607 and 53608 of the Government Code, the authority to invest and reinvest moneys of the city, to sell or exchange securities, and to deposit them and provide for their safekeeping, is delegated to the city treasurer. (Ord. 2 § 1 (part), 1982) 3.08.020 Authorized investments. Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized to purchase, at their original sale or after they have been issued, securities which are permissible investments under any provision of state law relating to the investing of general city funds, including but not limited to Sections 53601 and 53635 of the Government Code, as said sections now read or may hereafter be amended, from moneys in his custody which are not required for the immediate necessities of the city and as he may deem wise and expedient, and to sell or exchange for other eligible securities and reinvest the proceeds of the securities so purchased. (Ord. 2 § 1 (part), 1982) 3.08.030 Sales of Securities. From time to time the city treasurer shall sell the securities in which city moneys have been invested pursuant to this chapter, so that the proceeds may, as appropriate, be applied to the purchase for which the original purchase money may have been designated or placed in the city treasury. (Ord.2 § I (part), 3.08.040 City bonds. Bonds issued by the city and purchased pursuant to this chapter may be cancelled either in satisfaction of sinking fund obligations or otherwise if proper and appropriate; provided, however, that the bonds may be held uncancelled and while so held may be resold. (Ord. 2 § 1 (part), 1982) 3.08.050 Reports. 20 The city treasurer shall make a monthly report to the city council of all investments made pursuant to the authority delegated in this chapter. (Ord. 2 § 1 (part), 1982) 3.08.060 Deposits of securities. Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized to deposit for safekeeping, the securities in which city moneys have been invested pursuant to this chapter, in any institution or depository authorized by the terms of any state law, including but not limited to Section 53608 of the Government Code as it now reads or may hereafter be amended. In accordance with said section, the city treasurer shall take from the institution or depository a receipt for the securities so deposited and shall not be responsible for the securities delivered to and receipted for by the institution or depository until they are withdrawn therefrom by the city treasurer. (Ord. 2 § 1 (part), 1982 3.08.070 Trust fund administration. Any departmental trust fund established by the city council pursuant to Section 36523 of the Government Code shall be administered by the city treasurer in accordance with Section 36523 and 26524 of the Government code and any other applicable provisions of law. (Ord. 2 § 1 (part), 1982) 21 IRI: Appendix D SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES Function Responsible Parties Develop and Recommend Modifications Investment Advisory Board to City's Formal Investment Policy and City Treasurer Review City's Investment Policy City Manager and Recommend City Council Action and City Attorney Adopt Formal Investment Policy City Council Implement Formal Investment Policy City Treasurer Review Financial Institutions & Select Investments City Treasurer Acknowledge Investment Selections City Manager or his/her designee Execute Investment transactions City Treasurer or City Manager Confirm Wires (if applicable) Accounting Manager or Financial Services Assistant Record Investment Transactions in City's Accounting Manager or Accounting Records Financial Services Assistant Investment Verification (match broker confirmation City Treasurer and Financial to City investment records) Services Assistant Reconcile Investment Records to Accounting Records and Bank Statements Financial Services Assistant Reconcile Investment Records to Treasurers Report of Investments Accounting Manager Security of Investments at City Accounting Manager or Senior Secretary Security of Investments outside City Third Party Custodian Review Internal Control Procedures External Auditor 22 IDR Appendix E LISTING OF APPROVED FINANCIAL INSTITUTIONS 1. Banking Services - Wells Fargo Bank, Government Services, Los Angeles, CA (Banking Services) Rabobank N.A., Government Banking Group, Roseville, CA (Collateralized Bank Deposits) 2. Custodian Services - Bank of New York/Mellon 3. Deferred Compensation - International City/County Management Association Retirement Corporation 4. Broker/Dealer Services - Banc of America Securities/Merrill Lynch Morgan Stanley CitiGroup First Empire Securities 5. Government Pool - State of California Local Agency Investment Fund 6. Bond Trustees - 1996 Lease Revenue Bonds — US Bank 1998 RDA Project Area 1 &2 — US Bank 2001 RDA Project Area 1 — US Bank 2002 RDA Project Area 1 — US Bank 2003 RDA Project Area 1 — US Bank 2004 Local Agency Rev — US Bank 2011 RDA Project Area 2 — US Bank 2011 Fin Auth Housing 1 &2 — US Bank 2013 Successor Agency — US Bank Assessment Districts — US Bank No Changes to this listing may be made without City Council approval 23 `slit Appendix F BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION 1 . Name of Firm: 2 3 11 Address: Telephone: ( ) ( ) Broker's Representative to the City (attach resume): Name: Title: Telephone: ( ) 5. Manager/Partner-in-charge (attach resume): Name: Title: Telephone: 6. List all personnel who will be trading with or quoting securities to City employees (attach resume) Name: Title: Telephone: ( ) ( ) 7. Which of the above personnel have read the City's Investment Policy? 8. Which instruments are offered regularly by your local office? (Must equal 100%) % U.S. Treasuries % BA's % Commercial Paper % CD's % Mutual Funds % Agencies (specify): % Repos % Reverse Repos % CMO's % Derivatives % Stocks/Equities % Other (specify): 9. References -- Please identify your most directly comparable public sector clients in our geographical area. Entity Entity Contact Contact 24 Telephone ( ) Telephone ( ) Client Since Client Since 10. Have any of your clients ever sustained a loss on a securities transaction arising from a misunderstanding or misrepresentation of the risk characteristics of the instrument? If so, explain. 11. Has your firm or your local office ever been subject to a regulatory or state/ federal agency investigation for alleged improper, fraudulent, disreputable or unfair activities related to the sale of securities? Have any of your employees been so investigated? If so, explain. 12. Has a client ever claimed in writing that you were responsible for an investment loss? Yes No If yes, please provide action taken Has a client ever claimed in writing that your firm was responsible for an investment loss? Yes No If yes, please provide action taken Do you have any current or pending complaints that are unreported to FINRA? Yes No If yes, please provide action taken Does your firm have any current, or pending complaints that are unreported to FINRA? Yes No If yes, please provide action taken 13. Explain your clearing and safekeeping procedures, custody and delivery process. Who audits these fiduciary responsibilities? Latest Audit Report Date 25 `11 14. How many and what percentage of your transactions failed? Last month? % $ Last year? % $ 15. Describe the method your firm would use to establish capital trading limits for the City of La Quinta. 16. Is your firm a member in the S.I.P.C. insurance program? Yes No If yes, explain primary and excess coverage and carriers. 17. What portfolio information, if any, do you require from your clients? 18. What reports and transaction confirmations or any other research publications will the City receive? 19. Does your firm offer investment training to your clients? Yes No 20. Does your firm have professional liability insurance? Yes No If yes, please provide the insurance carrier, limits and expiration date. 21 22 23 Please list your FINRA/NASD Registration Number Do you have any relatives who work at the City of La Quinta? Yes No If yes, Name and Department Do you maintain an office in California? Yes No 24. Do you maintain an office in La Quinta or Riverside County? Yes No 25. Please enclose the following: ► Latest audited financial statements; ► Samples of reports, transaction confirmations and any other research/publications the City will receive; ► Samples of research reports and/or publications that your firm regularly provides to clients; and ► Complete schedule of fees and charges for various transactions. w: 'CERTIFICATION' I hereby certify that I have personally read the Statement of Investment Policy of the City of La Quinta, and have implemented reasonable procedures and a system of controls designed to preclude imprudent investment activities arising out of transactions conducted between our firm and the City of La Quinta. All sales personnel will be routinely informed of the City's investment objectives, horizons, outlooks, strategies and risk constraints whenever we are so advised by the City. We pledge to exercise due diligence in informing the City of La Quinta of all foreseeable risks associated with financial transactions conducted with our firm. By signing this document the City of La Quinta is authorized to conduct any and all background checks. Under penalties of perjury, the responses to this questionnaire are true and accurate to the best of my knowledge. Broker Representative Date Title Sales Manager and/or Managing Partner Date Title 27 plot'! Appendix G Request for Proposals Professional Portfolio Management Firm City of La Quinta, CA The City of La Quinta, CA is soliciting Requests for Proposals (RFP) from interested firms for the provision of a discretionary investment management services for City of La Quinta, CA. The portfolio to be managed of the invested assets is will be approximately 10% of the City's investment portfolio and will be invested between 0 — 3 years. The investment of City of La Quinta, CA's funds is guided by the applicable State statutes and the City of La Quinta, CA's investment policy. A copy of the investment policy is attached for your information. Questions regarding this RFP should be directed to: Name: Title: City of: Address: City, State, Zip Code Phone Number: Rita Conrad Finance Director/Treasurer La Quinta, CA 78-495 Calle Tampico La Quinta, CA 92253 (760)777-7150 I. CRITERIA FOR EVALUATION AND SELECTION ■ Experience of the firm in providing services to public sector entities of similar size and with similar investment objectives; ■ Professional experience and qualifications of the individuals assigned to the account; ■ Portfolio management resources, investment philosophy and approach; ■ Responsiveness to the RFP, communicating an understanding of the overall program and services required; ■ Reporting capabilities; ■ Fees. II. SELECTION TIMETABLE A. [Month, Day and Year] Proposals due by [Time] PST. B. [Month, Day and Year] Proposals evaluated: to be determined C. [Month, Day and Year] [City of La Quinta, CA] [Board/Council] approves selection and awards contract. III. FORMAT FOR PROPOSALS Please format your response to this RFP in the following manner: A. Organization 1. Describe your organization, date founded, ownership and other business affiliations. Provide number and location of affiliated offices. Specify the number of years your organization has provided investment management service. 2. Describe your firm's revenue sources (e.g., investment management, institutional research, etc.) and comment on your firm's financial condition. 3. Within the past three years, have there been any significant developments in your organization (e.g., changes in ownership, new business ventures)? Do you expect any changes in the near future? 4. Describe any U.S. Securities and Exchange Commission (SEC) censures or litigation involving your organization, any officer, or employee at any time in the last ten years. 5. Describe the firm's fiduciary liability and/or errors and omissions insurance coverage. Include dollar amount of coverage. B. Personnel 1 . Identify the number of professionals employed by your firm by classification. 2. Provide an organization chart showing function, positions, and titles of all the professionals in your organization. 3. Provide biographical information on investment professionals that will be involved in the decision -making process for our portfolio, including number of years at your firm. Identify the person who will be the primary portfolio manager assigned to the account. 4. Describe your firm's compensation policies for investment professionals and address any incentive compensation programs. C. Assets Under Management 1 . Summarize your institutional investment management asset totals by category for your latest reporting period in the following table: Other Restrictive Number Operating Funds Number of Funds of Clients Clients Governmental $ $ Governmental Pension Non Governmental Pension S S N/A N/A N/A N/A 29 Corporate $ N/A N/A High Net Worth Client $ N/A N/A Endowmental/Foun- $ N/A N/A dation 2. Provide the number of separate accounts whose portfolios consist of operating funds. 3. List in the following table the percentage by market value of aggregate assets under all governmental accounts under management for your latest reporting period: Type of Asset Percent by Market Value U.S. Treasury securities Federal Agency obligations Corporate securities rated AAA -AA Corporate securities rated A Corporate securities rated BBB or lower Other (specify ) 4. Describe the procedures that your firm has in place to address the potential or actual credit downgrade of an issuer and to disclose and advise a client of the situation. 5. Provide data on account/asset growth over the past five years. Indicate the number of government accounts gained and the number of government accounts lost. 6. List your five governmental largest clients. Identify those that are exclusively operating fund relationships and/or those that are other relationships (e.g., bond fund, retirement fund). 7. Provide a copy of the firm's Form ADV, Parts I and II (including all schedules). 8. Provide proof of State of California Registration, if your firm is not eligible for SEC registration. 9. Provide a sample contract for services. 30 P111A D. Philosophy/Approach 1 . Describe your firm's investment philosophy for public clients, including your firm's philosophy regarding average duration, maturity, investment types, credit quality, and yield. 2. Describe in detail your investment process, as you would apply it to City of La Quinta, CA's portfolio. 3. What are the primary strategies for adding value to portfolios? 4. Describe the process you would recommend for establishing the investment objectives and constraints for this account. 5. Describe in detail your process of credit risk management, including how you analyze credit quality, monitor credits on an ongoing basis, and report credit to governmental accounts. 6. Describe your firm's trading methodology. 7. Describe your firm's decision -making process in terms of structure, committees, membership, meeting frequency, responsibilities, integration of research ideas, and portfolio management. 8. Describe your research capabilities as they would pertain to governmental accounts. What types of analysis do you use? 9. Describe the firm's approach to managing relationships with the broker -dealer community. E. Portfolio Management 1 . Are portfolios managed by teams or by one individual? 2. What is the average number of accounts handled per manager? 3. Which professional staff member will be the primary client contact for City of La Quinta, CA? 4. How frequently are you willing to meet with us? 5. Describe procedures used to ensure that portfolios comply with client investment objectives, policies, and bond resolutions. F. Fees Charged 1 . Please include a copy of your firm's fee schedule applicable to this RFP. 2. Identify any expenses that would not be covered through this fee structure and would be required in order to implement the firm's program. 31 `ref. 3. Is there a minimum annual fee? G. Performance Reporting 1 . Please report on all accounts under $100 million. 2. Please provide performance history for governmental accounts for the last five years. 3. Please provide risk measurements for governmental accounts for the last five years. 4. Indicate whether your returns are calculated and compiled in accordance with the Association for Investment Management and Research (AIMR/CFA Institute) standards. 5. Do your reports conform to the State of California reporting standards? Are you willing to customize your reports to meet our specifications? 6. How will you notify us of investment transactions? 7. Are confirmations of investment transactions sent directly by the broker/dealer to the client? 8. Do your reports include rating information on investments which is required by GASB 40? H. References Provide a list of at least five (5) client references in California. References should be public agencies with portfolio size and investment objectives similar to City of La Quinta, CA. Include length of time managing the assets, contact name, and phone number. Insurance Requirements Exhibit A defines the insurance requirements that will need to be met prior to the [Board/Council]'s approval of any agreement for services. J. Submittal of proposals 1 . Seven (7) copies of the proposal shall be submitted in a sealed envelope bearing the caption RFP for (City of La Quinta, CA) and addressed to: City of La Quinta, CA 78-495 Calle Tampico La Quinta, CA 92253 Attention: Rita Conrad, Finance Director/Treasurer 32 `�1R 2. Proposal must be received no later than [Time] PST on [Month, Day, and Year]. 3. Proposals should be verified before submission. The City of La Quinta, CA shall not be responsible for errors or omissions on the part of the respondent in preparation of a proposal. The City of La Quinta, CA reserves the right to reject any and all proposals, to wave any irregularities, or informalities in the proposals, and to negotiate modifications to any proposal. Enclosures: Investment Policy Treasurers Report 33 ME E El i 12 0 C m a 0 E w 0 LL CL a 0 0 0 0 o O O N N N 0 N N N N N N U)y a 3 � Z Z Z Z Z Z Zo } a) } a) } a) } a) } a) } Z o } o } o } o } o } o } a) } C •y p) Q N C a) w 0 a d a Q •U -0 O a O O O O O O O N a) O 0 N O O N a) N a) N a) N a) N a) N a) N a) N a) U)3 a) z z z z z z z} z} z z � o w a U 0 0 N a) -2 N A E O U � Q 0 U N C C a) Q o C 0 C 0 C 0 C 0 C 0 C o C a) Q o 0 0 o a) Q o 0 i E O O ._ " O O O O O O O " Q O O O O d Q — " O O U J Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Q O O O O 0 0 O O � Q Q d •� a) a) O w � o 0 ._p 0 >0 c a w o C 0 C 0 C 0 C o C o C o 0 0 o 0 C 0 C 0 C 0 C 0 Q o o o C 0 C .p O O O O O O O O Z Z Z Z ZZ NNZ Z Z Z 0 N Z Z N L N N 0 O N � � InN � o 0 Q J O 0 0 0 O O E a N N i T i (n (n 7 'K a) a) a) N O p a) O a) O O a) a) � a) O a) a) } } } N N Z Z O } Z } Z Z } } O } Z } } M LO LO LO O) O) Lo LO LO LO N 0 LO LO N N N -Fu O E O E N U.aasOo> i U) -O �) .2 a o a o '00 6 U)o Q ) ) 'O 0) o as U) (o N CL a O NQQ oCUOo OO Q> Q a n YO o Uada) a3 >+ aw U) 5 Q 0)E N Q ()ULL o '2 ~ a) CO a) ) Q _0O a3 O Q N t i Q J O a) O 7 Ua) a3 6 a) ~ Q (n a) E E Y as O E C N O N U U N i N >+ o rn Z m L U D D EO 3 -0 H C N O O O U O 7 Q a) a) '= tl) C O N N N O U a) g >+ a) a) C 5 J 0—j a) U) o m N Q U c m O (6 Q U a) U O U a) O O U U w .. c co R c O (O •C C.1 N N E L d w i y O O O O O O (fl (fl O O O O 0) N O O O 00 a) (`i (fl (`i (fl of (fl of U) U) (D of (D (D of (D � (o (o (c) (`") V> p C (`') LO LO of LO u) u) u) LO (`i LO LO (` ) LO (`i Ln (`i Ln O Ln Ln U co LL 2 d d E 00 LL c E o � a) U O) C -O a3 N E O o -0 r N O a) d N m � � o o E 'U5 '�5 N a) w > O .S a� L N O o O' z N Appendix I Investment Management Process and Risk Except as provided for in Section 27000.3, Government Code Section 53600.3 declares as a trustee each person, treasurer, or governing body authorized to make investment decisions on behalf of local agencies. As trustees are subject to the prudent investor standard. These persons shall act with care, skill, prudence, and diligence under the circumstances then prevailing when investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing funds. Section 53600.5 further stipulates that the primary objective of any person investing public funds is to safeguard principal; secondly, to meet liquidity needs of the depositor; and lastly, to achieve a return or yield on invested funds (Government Code Section 27000.5 specifies the same objectives for county treasurers and board of supervisors). Risk is inherent throughout the investment process. There is investment risk associated with any investment activity and opportunity risk related to inactivity. Market risk is derived from exposure to overall changes in the general level of interest rates while credit risk is the risk of loss due to the failure of the insurer of a security. The market value of a security varies inversely with the level of interest rates. If an investor is required to sell an investment with a five percent yield in a comparable seven percent rate environment, that security will be sold at a loss. The magnitude of that loss will depend on the amount of time until maturity. Purchasing certain allowable securities with a maturity of greater than five years requires approval of the governing board (see Government Code Section 53601). Part of that approval process involves assessing and disclosing the risk and possible volatility of longer -term investments Another element of market risk is liquidity risk. Instruments with unique call features or special structures, or those issued by little known companies, are examples of "story bonds" and are often thinly traded. Their uniqueness often makes finding prospective buyers in a secondary market more difficult and, consequently, the securities' marketability and price are discounted. However, under certain market conditions, gains are also possible with these types of securities. Default risk represents the possibility that the borrower may be unable to repay the obligation as scheduled. Generally, securities issued by the federal government and its agencies are considered the most secure, while securities issued by private corporations or negotiable certificates of deposit issued by commercial banks have a greater degree of risk. Securities with additional credit enhancements, such as bankers acceptances, collateralized repurchase agreements and collateralized bank deposits are somewhere between the two on the risk spectrum. The vast majority of portfolios are managed within a buy and hold policy. Investments are purchased with the intent and capacity to hold that security until maturity. At times, market forces or operations may dictate swapping one security for another or selling a security before maturity. Continuous analysis and fine tuning of the investment portfolio are considered prudent investment management. The Government Code contains specific provisions regarding the types of investments and practices permitted after considering the broad requirement of preserving principal and maintaining liquidity before seeking yield. These provisions are intended to promote the use of reliable, diverse, and safe investment instruments to better ensure a prudently managed portfolio worthy of public trust. Chapter II_ Fund Management Local Agency Investment Guidelines 2010 Issued by California Debt and Investment Advisory Commission 35 212 Appendix J GLOSSARY (Adopted from the Municipal Treasurers Association) The purpose of this glossary is to provide the reader of the City of La Quinta investment policies with a better understanding of financial terms used in municipal investing. AGENCIES: Federal agency securities and/or Government -sponsored enterprises. ASKED: The price at which securities are offered BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer. BROKER: A broker brings buyers and sellers together for a commission. CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large -denomination CD's are typically negotiable. COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMMERCIAL PAPER: Short-term unsecured promissory notes issued by a corporation to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation, IBM, Bank America, etc. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the City of La Quinta. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance -related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section. CONDUIT FINANCING: A form of Financing in which a government or a government agency lends its name to a bond issue, although it is acting only as a conduit between a specific project and bond holders. The bond holders can look only to the revenues from the project being financed for repayment and not to the government or agency whose name appears on the bond. COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities). DISCOUNT: The difference between the cost price of a security and its maturity when quoted at 36 213 lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount. DISCOUNT SECURITIES: Non -interest bearing money market instruments that are issued a discount and redeemed at maturity for full face value, e.g., U.S. Treasury Bills. DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L's, small business firms, students, farmers, farm cooperatives, and exporters. 1. FNMAs (Federal National Mortgage Association) - Like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder -owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. 2. FHLBs (Federal Home Loan Bank Notes and Bonds) - Issued by the Federal Home Loan Bank System to help finance the housing industry. The notes and bonds provide liquidity and home mortgage credit to savings and loan associations, mutual savings banks, cooperative banks, insurance companies, and mortgage -lending institutions. They are issued irregularly for various maturities. The minimum denomination is $5,000. The notes are issued with maturities of less than one year and interest is paid at maturity. 3. FLBs (Federal Land Bank Bonds) - Long-term mortgage credit provided to farmers by Federal Land Banks. These bonds are issued at irregular times for various maturities ranging from a few months to ten years. The minimum denomination is $1,000. They carry semi-annual coupons. Interest is calculated on a 360-day, 30 day month basis. 4. FFCBs (Federal Farm Credit Bank) - Debt instruments used to finance the short and intermediate term needs of farmers and the national agricultural industry. They are issued monthly with three- and six-month maturities. The FFCB issues larger issues (one to ten year) on a periodic basis. These issues are highly liquid. 5. FICBs (Federal Intermediate Credit Bank Debentures) - Loans to lending institutions used to finance the short-term and intermediate needs of farmers, such as seasonal production. They are usually issued monthly in minimum denominations of $3,000 with a nine -month maturity. Interest is payable at maturity and is calculated on a 360- day, 30-day month basis. 6. FHLMCs (Federal Home Loan Mortgage Corporation) - a government sponsored entity established in 1970 to provide a secondary market for conventional home mortgages. Mortgages are purchased solely from the Federal Home Loan Bank System member lending institutions whose deposits are insured by agencies of the United States Government. They are issued for various maturities and in minimum denominations of $10,000. Principal and interest is paid monthly. Other federal agency issues are Small Business Administration notes (SBA's), Government National Mortgage Association notes (GNMA's), Tennessee Valley Authority notes (TVA's), and Student Loan Association notes (SALLIE-MAE's). FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit through December 31, 2013. 37 214 FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open - market operations. FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks (currently 12 regional banks) which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district Bank. FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FMHM mortgages. The term "pass-throughs" is often used to describe Ginnie Maes. LAIF (Local Agency Investment Fund) - A special fund in the State Treasury which local agencies may use to deposit funds for investment. There is no minimum investment period and the minimum transaction is $5,000, in multiples of $1,000 above that, with a maximum balance of $50,000,000 for any agency. The City is restricted to a maximum of ten transactions per month. It offers high liquidity because deposits can be converted to cash in 24 hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share basis determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly. The State retains an amount for reasonable costs of making the investments, not to exceed one-half of one percent of the earnings. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase --reverse repurchase agreements that establishes each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer -lender to liquidate the underlying securities in the event of default by the seller -borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded. OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid. OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve 38 215 Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool. PORTFOLIO: Collection of all cash and securities under the direction of the City Treasurer, including Bond Proceeds. PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) -registered securities broker -dealers, banks and a few unregulated firms. QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is increasing bank reserves. REVERSE REPURCHASE AGREEMENTS (RRP or RevRepo) - A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security"buyer" in effect lends the"seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RRP extensively to finance their positions. Exception: When the Fed is said to be doing RRP, it is lending money that is increasing bank reserves. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See Uniform Net Capital Rule. STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, SLMA, etc.) and Corporations which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, and derivative - based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve. SURPLUS FUNDS: Section 53601 of the California Government Code defines surplus funds as any money not required for immediate necessities of the local agency. The City has defined immediate necessities to be payment due within one week. TREASURY BILLS: A non -interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months or one year. TREASURY BONDS: Long-term coupon -bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years. 39 216 TREASURY NOTES: Medium -term coupon -bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker -dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. UNIFORM PRUDENT INVESTOR ACT: The State of California has adopted this Act. The Act contains the following sections: duty of care, diversification, review of assets, costs, compliance determinations, delegation of investments, terms of prudent investor rule, and application. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. 40 217 ATTACHMENT 2 CITY OF LA QUINTA Investment Policy Fiscal Year 34/ 1 6 1 5/20 Table of Contents Section Topic Page Executive Summary 2 1 General Purpose 4 11 Investment Policy 4 III Scope 4 IV Objectives 4 ► Safety of Principal ► Provide Liquidity ► Yield A Risk -Based Market Rate Of Return V Maximum Maturities 6 VI Prudence 6 Vll Authority 6 Vill Ethics and Conflicts of Interest 7 IX Authorized Financial Dealers and Institutions 7 ► Broker/Dealers ► Financial Institutions X Permissible Deposits and Investments 8 XI Investment Pools 12 Xll Payment and Custody 13 Xlll Interest Earning Distribution Policy 13 XIV Internal Controls and Independent Auditors 13 XV Reporting Standards 14 XVI Financial Assets and Investment Activity Not Subject to this Policy 15 XVII Investment of Bond Proceeds 15 Xlll Investment Advisory Board - City of La Quinta 16 XIX Investment Policy Adoption 16 Appendices Topic Page A Summary of Permissible Deposits and Investments 17 B City of La Quinta Municipal Code Ordinance 2.70 - Investment Advisory Board 19 C City of La Quinta Municipal Code Ordinance 3.08 - Investment of Moneys and Funds20 D Segregation of Major Investment Responsibilities 22 E Listing of Approved Financial Institutions 23 F Broker/Dealer Questionnaire and Certification 24 G Request for Proposal for Professional Portfolio Management Firm 28 H Permissible Investment Chart — Professional Portfolio Management Firm 34 1 Investment Management Process and Risk 35 J Glossary 36 CITY OF LA QUINTA Investment Policy Fiscal Year 34/ 1 6 1 5/20 Executive Summary The general purpose of this Investment Policy is to provide the rules and standards that must be followed in administering the City of La Quinta's deposits and investments. The City's Investment Policy conforms to all state and local statutes and applies to all deposits and investments of the City of La Quinta (the "City). It is the City's policy to deposit and invest public funds in a manner that shall provide: ► Safety of principal; ► Liquidity to meet all of the City's obligations and requirements that may be reasonably anticipated; and ► A risk -based market rate of return. It is the City's policy to hold securities and other investments until maturity. This buy -and -hold policy shall not prevent the sale of a security to minimize loss of principal when an issuer or backer suffers declining credit worthiness or when the liquidity needs of the portfolio require that a security be sold. Authority to manage the City's investment portfolio is derived from the City Municipal Code. Management responsibility for the investment program is delegated to the City Treasurer, who shall establish and implement written procedures for the operation of the City's investment program consistent with the Investment Policy. The Treasurer shall establish and implement a system of internal controls to accomplish the following objectives: ► Safeguard assets; ► Orderly and efficiently conduct its business, including adherence to all City management policies; ► Prevent or detect errors and fraud; ► Accurately complete all accounting records; and ► Timely prepare all reliable financial information. The System of Internal Controls developed by the City Treasurer shall be reviewed annually by the independent auditors in connection with the annual audit of the City's financial statements. The City Manager, City Treasurer and city employees involved in the City's banking and investment process shall conduct the City's business in an ethical manner and refrain from any activity or relationship that may be, or have the appearance of, a conflict of interest. The City Treasurer maintains a listing of financial institutions which are approved for investment purposes. All Broker/Dealers and financial institutions that provide investment services will be subject to City Council approval. The Treasurer will be permitted to invest only in the permissible deposits and investments described in Section X and Appendix A up to the specified maximum allowable percentages and/or dollar limitations and, where applicable, through the bid process requirements. Permissible deposits and investments include, in general: ► FDIC -Insured Checking, Savings, and Sweep Accounts; ► Collateralized Bank Deposits; `AR ► Certificates of Deposit; ► Negotiable Certificates of Deposit; ► U.S. Government Agency Securities and Federal Government Securities; ► Prime Commercial Paper; ► Local Agency Investment Fund (LAIF); ► Money Market Mutual Funds; ► Corporate Notes; and ► Professionally Managed Accounts. The City's deposits and investments are generally limited to three years' maximum maturity. However, the projected amount of funds not expected to be disbursed within five years may be invested in notes and bonds maturing between three and five years. Additionally, funds may be invested for up to ten (10) years as further discussed in Section V. The City's Investment Policy does not specify a single benchmark as a goal or target yield for a rate of return on its investment portfolio. As a basis for comparison only, the Treasurer's monthly report will display the rates of return on the three-month Bill, six-month Bill, and the one and two-year U.S. Treasury Note, comparable -period rates for commercial paper, and the yield for the State Treasurer's Local Agency Investment Fund (LAIF). The Investment Policy shall be adopted by resolution of the La Quinta City Council on an annual basis. The Investment Policy will be adopted before the end of June of each year. This Executive Summary is only an overview of the City's Investment Policy. Reading this summary does not constitute a complete review, which can only be accomplished by reviewing all of the pages herein. Wt City of La Quinta Statement of Investment Policy July 1, 2014 201 " through June 30, 201 52016 Adopted by the City Council on ,two) -1 �, 201•4" GENERAL PURPOSE The general purpose of this document is to provide the rules and standards that must be followed in administering the City of La Quinta's deposits and investments. INVESTMENT POLICY It is the policy of the City of La Quinta to deposit and invest public funds in a manner that shall provide: ► Safety of principal; ► Liquidity to meet all of the City's obligations and requirements that may be reasonably anticipated; and ► A risk -based market rate of return. The Investment Policy conforms to all State and local statutes governing the investment of public funds and sets forth the permissible deposits and investments of the City's funds and the limitations thereon. III SCOPE Except as further detailed in Section XVII, this Investment Policy applies to all deposits and investments of the City of La Quinta, Successor Agency to the City of La Quinta Redevelopment Agency and the City of La Quinta Financing and Housing Authorities (hereafter referred to in this document as the "City"). These funds are reported in the City's Comprehensive Annual Financial Report (CAFR) and include all funds within the following fund types: ► General ► Special Revenue ► Capital Projects ► Debt Service ► Enterprise ► Internal Service ► Trust and Agency ► Any new fund types and fund(s) that may be created. IV OBJECTIVES The objectives of the City's investment activity, in order of priority and importance, are: Safety of Principal Safety of principal is the foremost objective of the City's investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of principal of the overall portfolio in accordance with the permissible deposits and investments. C! The City shall endeavor to preserve its investment principal by making only permissible deposits and investments, undertaken in a controlled manner to minimize the possibility of loss or misappropriation through malfeasance or otherwise. Investments not backed by the full faith and credit of the United States Government shall be diversified by allocating assets between different types of permissible investments, maturities, and issuers as a means to mitigate credit risk and interest rate risk. Credit Risk is the risk of loss from the failure of the security issuer or backer. Credit risk may be mitigated by: ► Limiting investments to investment grade securities as permitted in Section X; ► Diversifying the issuers of the securities in the investment portfolio so that potential losses due to issuer failure or individual securities downgrades may be minimized. b. Interest Rate Risk is the risk that market values of securities in the portfolio will decline due to changes in general interest rates. Interest rate risk may be mitigated by: ► Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity; and ► Investing operating funds primarily in shorter -term securities. Liquidity Risk is the risk that a security cannot be liquidated because of its unique features or structure or because it is thinly traded. Liquidity risk is not a material issue for the City's portfolio because of the permissible deposits and investments (see Section X) and because the City maintains a buy -and -hold policy and holds securities and other investments to maturity. A discussion of the City's investment process and risk is presented in Appendix I. Provide Liquidity The investment portfolio shall remain sufficiently liquid to meet all of the City's cash needs that may be reasonably anticipated. This is accomplished by structuring the portfolio so that sufficient liquid funds are available to meet anticipated demands. Furthermore, since all possible cash needs cannot be anticipated the portfolio should be diversified and consist of securities with active secondary or resale markets. The City's policy is to hold securities and other investments to maturity. Accordingly, securities shall not be sold prior to maturity with the following exceptions: ► A security with declining credit quality can be sold early to minimize loss of principal; ► Unanticipated liquidity needs of the portfolio require that one or more securities be sold. Yield a Risk -Based Market Rate Of Return The City's investment portfolio shall be structured with the objective of yielding a risk - based market rate of return throughout budgetary and economic cycles. Return on investment is less important than the safety and liquidity objectives described above. The City's Investment Policy does not specify a single benchmark as a goal or target yield for a rate of return on its investment portfolio. The portfolio's rates of return will be PW influenced by several factors, including actions by the Federal Reserve Board, the marketplace, and overall economic perceptions and conditions. These factors will not affect yield during the securities' holding period because the City's buy -and -hold policy fixes the securities' yield at the time of purchase. As a basis for comparison only, the Treasurer's monthly reports will display the rates of return on the three-month Bill, six-month Bill, and one and two-year U.S. Treasury Note, comparable -period rates for commercial paper, and the yield for the State Treasurer's Local Agency Investment Fund (LAIF). The Treasurer may use these or any other published rates of return that the Treasurer deems appropriate for comparison to the return on the City's investment portfolio. V MAXIMUM MATURITIES It is the City's policy to hold securities and other investments until maturity, thus avoiding the risk of market value fluctuations with overall market interest rates. This buy -and -hold policy shall not prevent the sale of a security to minimize loss of principal when an issuer or backer suffers declining credit worthiness or when the liquidity needs of the City require that a security be sold. The buy -and -hold policy requires that the City's investment portfolio be structured so that sufficient liquid funds are available from maturing investments and other sources to meet all reasonably -anticipated cash needs. To meet anticipated cash needs, it is essential that the Treasurer have reliable, diligently prepared cash flow projections. Annually, the Treasurer shall project the amount of funds not expected to be disbursed within ten years. For FY2014/201 52015/2016, the amount of such funds is projected to be $20 million. Funds up to that amount may be invested in U.S.Treasury notes and bonds, Local Agency Obligations, and California Local Agency Obligations maturing between 3 and 10 years. For all other funds, investments are limited to five years maximum maturity. VI PRUDENCE The City shall follow the Uniform Prudent Investor Act as adopted by the State of California in Probate Code Sections 16045 through 16054. Section 16053 sets forth the terms of a prudent person which are as follows: "Investments shall be made with judgment and care - under circumstances then prevailing - which persons of prudence, discretion, and intelligence exercise in the professional management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived." VII AUTHORITY Authority to manage the City's investment portfolio is derived from section 3.08 of the City's Municipal Code. Management responsibility for the investment program is delegated to the City Treasurer for a period of one year pursuant to the City Council's annual adoption of the Investment Policy. The City Treasurer shall establish written procedures for the operation of the investment program consistent with the Investment Policy. Procedures should include reference to safekeeping, wire 223 transfer agreements, banking service contracts, and collateral/depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this Investment Policy and the procedures established by the City Treasurer. The City Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. The City Manager or his/her designee shall acknowledge in writing all purchases and sales of investments prior to their execution by the City Treasurer. VIII ETHICS AND CONFLICTS OF INTEREST The City Manager, City Treasurer and city employees involved in the City's banking and investment process shall conduct the City's business in an ethical manner and refrain from any activity or relationship that may be, or have the appearance of, a conflict of interest. Any questionable activity or relationship shall be reported immediately and in compliance with the procedures set forth in Section 1.40 — Conflicts of Interest and Acceptance of Gifts and other Gratuities of the City of La Quinta Personnel Manual. Reporting must be made in accordance with the personnel policies of the City and, until resolved, the officer or employee shall refrain from participating in the City's business related to the matter. The City Manager, City Treasurer and City employees may conduct personal business with banks, brokers, and other financial institutions that are authorized to conduct business with the City provided that the terms of the activity to the accountholder with the City are the same as those that are available to the public in general. IX AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The City Treasurer maintains a listing of financial institutions which are approved for direct investment purposes. In addition a list will also be maintained of approved broker/dealers selected by credit worthiness. Broker/Dealers who desire to become bidders for direct investment transactions must supply the City with the following: ► Current audited financial statements; ► Proof of Financial Industry Regulatory Authority (FINRA) Certification; ► Trading resolution; ► Resume of Financial broker; and ► Completion of the City of La Quinta Broker/Dealer questionnaire (see Appendix F) which contains a certification of having read the City's Investment Policy. The City Treasurer shall evaluate the documentation submitted by the broker/dealer and independently verify existing reports on file for any firm and individual conducting investment related business. The City Treasurer will also contact the following agencies during the verification process: ► Financial Industry Regulatory Authority (FINRA) Public Disclosure Report File (1- 800-289-9999). ► State of California Department of Corporations (1-916-445-3062). 224 The City Treasurer maintains a listing of financial institutions which are approved for investment purposes. All Broker/Dealers and financial institutions that provide investment services will be subject to City Council approval. Each securities dealer shall provide monthly and quarterly reports filed pursuant to U.S. Treasury Department regulations. Each mutual fund shall provide a prospectus and statement of additional information. 2. Financial Institutions will be required to meet the following criteria in order to receive City funds for deposit or investment (see Appendix E, "Listing of Approved Financial Institutions"): a. Insurance - Public Funds shall be deposited only in financial institutions having accounts insured by the Federal Deposit Insurance Corporation (FDIC). b. Collateral - The amount of the City's deposits or investments not insured by the FDIC —shall be collateralized by securities with market values of 110%, or by mortgages with market values 1 50%, of the amount of invested funds plus unpaid interest earnings. C. Disclosure - Each financial institution maintaining invested funds in excess of the FDIC insured amount shall furnish the City a copy of the most recent Call Report. The City shall not invest in excess of the FDIC insured amount in banking institutions which do not disclose to the city a current listing of securities pledged for collateralization in public monies. X PERMISSIBLE DEPOSITS AND INVESTMENTS Permissible deposits and investments are summarized below. A more comprehensive list is included in Appendix A. Permissible Investments and Limitations Maximum Maximum Restrictions (See Appendix A for Additional Information) Allocation Maturity Current/ Sweep Account: Checking &Savings Accounts FDIC Insured & SweepAccounts 85% of Portfolio On Demand U.S. Treasuries and/or GSE's Interest bearing active bank deposits — non FDIC insured collateralized by 60% of Portfolio Current / $40 million 110% of eligible securities On Demand per bank Certificates of Deposit - FDIC Insured <_ $25Q000, 60 % of Portfolio 5 Years including interest per institution <= $250,000 Negotiable Certificates of Deposit— FDIC Insured 30% of Portfolio 5 Years including interest per institution <=$20,000,000 U.S. Treasury Bills, Notes and Bonds, and Government National 100% of Portfolio 5 Years maturing 3-10 Mortgage Association (GNMA) Securities Yrs. "I P" Permissible Investments and Limitations Maximum Maximum Restrictions (See Appendix A for Additional Information) Allocation Maturity <=$20,000,000 maturing 3-10 Local Agency Bonds / California Local Agency Obligations 30% of Portfolio 10 Years Yrs. Long term "A, A2, A" or better U.S. Government Agency Securities and Federal Government Securities $10 million per (except collateralized mortgage obligations (CMO's) or structured notes purchase which contain embedded rate options): Federal National Mortgage Association (FNMA) $20,000,000 5 Years 30% of Portfolio Federal Home Loan Bank Notes & Bonds (FHLB) $25,000,000 5 Years Federal Farm Credit Bank (FFCB) $30,000,000 5 Years Federal Home Loan Mortgage Corporation (FHLMC) $20,000,000 5 years Prime Commercial Paper including Temporary Liquidity Guarantee 15% of Portfolio 90 Days $5,000,000 per Program (TLGP) issuer maximum Local Agency Investment Fund (LAIF) 30% of Portfolio Current / On Demand $50 million per account Money market mutual funds regulated by the SEC that consist only of US 20 % of Portfolio Current / Maintain $1 per Treasury Securities or GSE's and maintain a par value of $1 per share On Demand share par value $5,000,000 max Corporate Notes 10% of Portfolio 3 Years per issuer AA rated or better $10,000,000 max Corporate Notes - Temporary Liquidity Guarantee Program (TLGP) 20% of Portfolio 3 Years per issuer, AA rated or better Requires Professionally Managed Account 10% of Portfolio 3 Years City Council - Approved RFP Long -Term Scale S&P Al AAA, AA+, AA, AA-, A+, A Moody's P1 Aaa, Aa1, Aa2, Aa3, Al, A2 Fitch AAA, AA+, AA, AA-, A+, A Checking, Savings, and Sweep Accounts — The City will only maintain checking, savings, and sweep accounts with FDIC insured financial institutions. As authorized by the City Council, a U.S. Treasury and/or U.S. Agency Securities Money Market Sweep Account with a $50,000 target balance may be maintained in conjunction with the checking account. In addition, the Treasurer may invest in an interest bearing active deposit account as approved in Government Code Section 53632. The deposit account must be collateralized with securities that are in accordance with Government Code Sections 53632.5(c). In addition, the market value of the collateralized securities must be maintained in accordance with 53652 (a), and be held by a custodian in accordance with the requirements of Government Code Section 53656. The proposition of the City's share of the deposit account shall be determined in accordance with Government Code Section 53658. Certificates of Deposit - As authorized in Government Code Section 53649, Certificates of Deposit are fixed term investments which are required to be collateralized from 1 10% to 150% depending on the specific security pledged as collateral in accordance with Government Code Section 53652. `BAR Collateral ization will be required for Certificates of Deposits in excess of the FDIC insured amount. The type of collateral is limited to City authorized investments. Collateral will always be held by an independent third party from the institution that sells the Certificates of Deposit to the City. Evidence of compliance with State Collateral ization policies must be supplied to the City and retained by the City Treasurer as follows: ► Certificates of Deposits Insured by the FDIC: The City Treasurer may waive collateral ization of a deposit that is federally insured. ► Certificates of Deposit in excess of FDIC Limits: The amount not federally insured shall be 1 10% collateralized securities or 1 50% mortgages market value of that amount of invested funds plus unpaid interest earnings. The City's Investment Policy limits the percentage of Certificates of Deposit to 60% of the portfolio. Negotiable Certificates of Deposit - issued by a nationally or state -chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a federally- or state- licensed branch of a foreign bank. No more than 30% of the City's portfolio may be invested in negotiable CDs. U.S. Treasury Bills, Notes, and Bonds and Government National Mortgage Associations (GNMA) securities — The City may invest in U.S. Treasury bills, notes, and bonds and GNMA securities directly issued and backed by the full faith and credit of the U.S. Government. The City's Investment Policy provides for investments in U.S. Treasury issues and GNMA's of 100% of the portfolio. ► The City's Investment Policy does not allow investments in state indebtedness. Local Agency Bonds and California Local Agency Obligations — The City may invest in California local agency obligations pursuant to 56301 (a) and 53301 (e)• 53601 (a) pertains to investing in bonds issued by a local agency, department, board, agency or authority of the local agency. 53601 (e) pertains to investing in bonds and other defined indebtedness of a local agency or department, board, agency or authority of the local agency within the State of California. The City's Investment Policy limits investments in Local Agency Bonds and California Local Agency obligations to 30% of the portfolio with up to a ten year maximum maturity. In addition, the Agency obligations must be invested in the long term rating of A, A2, A or better by S&P, Moody's or Fitch. In the case of an initial public offering, including refinancings, the Treasurer may purchase directly from the Bond Underwriter. In the case of secondary issues, the Treasurer will rely on the approved Broker/Dealers. U.S. Government Agency Securities and Federal Government Securities — The City may invest in securities issued by U.S. Government instrumentalities and agencies (commonly referred to as government sponsored enterprises or LSE's)• These securities are not backed by the full faith and credit of the U.S. Government. Publicly owned GSE's include 10 227 Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC) and Student Loan Marketing Association (SLMA). Non -publicly owned GSE's include the Federal Home Loan Bank (FHLB), Federal Farm Credit Bank (FFCB), Federal Land Bank (FLB) and Federal Intermediate Credit Bank (FICB). The City's Investment Policy allows investment only in securities of FNMA, FHLMC, FHLB and FFCB. For Fiscal Year 2014/201 5201 " /201 6, the maximum face amount per issuer is $20 million for FNMA and FHLMC, $25 million for FHLB and $30 million for FFCB. In addition, no more than 30% of the portfolio surplus may be invested in all GSE's combined with a maximum $10 million face amount per purchase. Prime Commercial Paper - As authorized in Government Code Section 53601 (g), a portion of the City's portfolio may be invested in commercial paper of the highest rating (Al or P1) as rated by Moody's or Standard and Poor's. There are a number of other qualifications regarding investments in commercial paper based on the financial strength of the corporation and the size of the investment. The City's Investment Policy permits investments in commercial paper with the following limitations: ► Maximum 15% of the portfolio. ► Maximum maturity of 90 days. ► Maximum of $5 million per issuer. These limitations are more restrictive than the State code which allows amounts of 25% of the total portfolio with maturities up to 270 days with no per -issuer limitations. Local Agency Investment Fund (LAIF) - As authorized in Government Code Section 16429.1 and by LAIF procedures, local government agencies are each authorized to invest a maximum of $50 million per account in this investment program administered by the California State Treasurer. The City Treasurer may not invest more than $50 million per account in LAIF. The City's investment in LAIF is allowable as long as the average maturity of its investment portfolio does not exceed two years, unless specific approval is authorized by the City Council. The City limits investment to 30% of the portfolio. Money Market Mutual Funds - As authorized in Government Code Section 53601 (k), local agencies are authorized to invest in shares of beneficial interest issued by diversified management companies (mutual funds) in an amount not to exceed 20% of the agency's portfolio. There are a number of other qualifications and restrictions regarding allowable investments in corporate notes and shares of beneficial interest issued by mutual funds which include (1 ) attaining the highest ranking or the highest letter and numerical rating provided by not less than two of the three largest nationally recognized rating services, or (2) having an investment advisor registered with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations and with assets under management in excess of five hundred million dollars ($500,000,000)• The City's Investment Policy only allows investments in mutual funds that are money market funds maintaining a par value of $1 per share that invest in direct issues of the U.S. Treasury and/or US Agency Securities with an average maturity of their portfolio not exceeding 90 days and the City limits such investments to 20% of the portfolio. Corporate Notes - As authorized in Government Code Section 53601 (j), local agencies Formatted: Indent: Left: 0", Hanging: 0.5" may invest in corporate notes. The notes must be issued by corporations organized and 11 228 operating in the United States or by depository institutions licensed by the United States or any other state and operating in the United States. The City's Investment Policy allows investment in corporate notes authorized by the Government Code with the following limitations: ► Maturities shall not exceed three years from date of purchase; ► Eligible notes shall be regularly quoted and traded in the marketplace; ► Eligible notes shall be rated "AA" or better; and ► The maximum aggregate investment shall not exceed $5 million face amount for each issuer. This is more restrictive than the State code allowed amounts of 30% of the total portfolio with maturities up to five years with no per -issuer limitations. Professionally Managed Account(s) - The City Treasurer may place up to 10% of the portfolio with a professional portfolio management firm ("PPMF"). The PPMF will be approved by the City Council based upon the City Treasurer's recommendation pursuant to completion of a request for proposal (RFP) as outlined in Appendix G. The PPMF shall have: ► An established professional reputation for asset or investment management; ► Knowledge and working familiarity with State and Federal laws governing and restricting the investment of public funds; ► Substantial experience providing investment management services to local public agencies whose investment policies and portfolio size are similar to those of the City; ► Professional liability (errors and omissions) insurance and fidelity bonding in such amounts as are required by the City; and ► Registration with the Securities and Exchange Commission under the Investment Advisers Act of 1940. Before engagement by the City and except as may be specifically waived or revised, the PPMF shall commit to adhere to the provisions of the City's Investment Policy with the following exceptions: ► The PPMF may be granted the discretion to purchase and sell investment securities in accordance with Appendix I of this Investment Policy; ► The PPMF is not required to adhere to the buy -and -hold policy of the City's Investment Policy; and ► The PPMF does not need City Manager or City Treasurer approval to make permissible investments as detailed in column 8 of Appendix H of this Investment Policy. XI INVESTMENT POOLS There are three (3) types of investment pools: ► State -run pools (e.g., LAIF); ► Pools that are operated by a political subdivision where allowed by law and the political subdivision is the trustee (e.g., County Pools); and ► Pools that are operated for profit by third parties. 12 `W1 The City's Investment Policy permits investment only in pools authorized in Section X. XII PAYMENT AND CUSTODY The City shall engage qualified third party custodians to act in a fiduciary capacity to maintain appropriate evidence of the City's ownership of securities and other eligible investments. Such custodians shall disburse funds, received from the City for a purchase, to the broker, dealer or seller only after receiving evidence that the City has legal, record ownership of the securities. Even though ownership is evidenced in book -entry form rather than by actual certificates, this procedure is commonly accepted as the delivery versus payment (DVP) method for the transfer of securities. XIII INTEREST EARNING DISTRIBUTION POLICY Interest earnings are generated from pooled investments and specific investments. The following provisions apply to the calculation and distribution of interest earnings. Pooled Investments - It is the general policy of the City to pool all available operating cash of the City of La Quinta, Successor Agency to the City of La Quinta Redevelopment Agency, La Quinta Financing Authority, and La Quinta Housing Authority, and to allocate interest earnings in the following order, as follows: Payment to the General Fund of an amount equal to the total annual bank service charges as incurred by the general fund for all operating funds as included in the annual operating budget. b. Payment to the General Fund of a management fee equal to 5% of the annual pooled cash fund investment earnings. Payment to each fund of an amount based on the average computed daily cash balance included in the common portfolio for the earning period. Specific Investments - Specific investments purchased by a fund shall incur all earnings and expenses to that particular fund. XIV INTERNAL CONTROLS AND INDEPENDENT AUDITOR The City Treasurer shall establish a system of internal controls to accomplish the following objectives: ► Safeguard assets; ► The orderly and efficient conduct of its business, including adherence to management policies; ► Prevention or detection of errors and fraud; ► The accuracy and completeness of accounting records; and ► Timely preparation of reliable financial information. While no internal control system, however elaborate, can guarantee absolute assurance that the City's assets are safeguarded, it is the intent of the City's internal control to provide a reasonable 13 PAG assurance that management of the investment function meets the City's objectives. The internal controls shall address the following: ► Control of collusion. Collusion is a situation where two or more employees are working in conjunction to defraud their employer. ► Separation of transaction authority from accounting and record keeping. By separating the person who authorizes or performs the transaction from the people who record or otherwise account for the transaction, a separation of duties is achieved. ► Custodial safekeeping. Securities purchased from any bank or dealer including appropriate collateral (as defined by State Law) shall be placed with an independent third party for custodial safekeeping. ► Avoidance of physical delivery securities. Book entry securities are much easier to transfer and account for since actual delivery of a document never takes place. Delivered securities must be properly safeguarded against loss or destruction. The potential for fraud and loss increases with physically delivered securities. ► Clear delegation of authority to subordinate staff members. Subordinate staff members must have a clear understanding of their authority and responsibilities to avoid improper actions. Clear delegation of authority also preserves the internal control structure that is contingent on the various staff positions and their respective responsibilities as outlined in the Segregation of Major Investment Responsibilities appendices. ► Written confirmation or telephone transactions for investments and wire transfers. Due to the potential for error and improprieties arising from telephone transactions, all telephone transactions shall be supported by written communications or electronic confirmations and approved by the appropriate person. Written communications may be via fax if on letterhead and the safekeeping institution has a list of authorized signatures. Fax correspondence must be supported by evidence of verbal or written follow-up. ► Development of a wire transfer agreement with the City's bank and third party custodian. This agreement should outline the various controls, security provisions, and delineate responsibilities of each party making and receiving wire transfers. The system of internal controls developed by the City, shall be reviewed annually by the independent auditor in connection with the annual audit of the City's Financial Statements. The independent auditor's letter on internal control over financial reporting and compliance as it pertains to cash and investments, if any, shall be directed to the City Manager who will direct the City Treasurer to provide a written response to the independent auditor's letter. The auditor's letter, as it pertains, to cash and investment activities and the City Treasurer's response shall be provided to the City's Investment Advisory Board for their consideration. Following the completion of each annual audit, the independent auditor shall meet with the Investment Advisory Board and discuss the auditing procedures performed and the review of internal controls for cash and investment activities. See Appendix D, "Segregation of Major Investment Responsibilities." XV REPORTING STANDARDS The City Treasurer shall submit a monthly Treasurers Report to the City Council and the Investment Advisory Board that includes all cash and investments under the authority of the 14 Treasurer. The Treasurer's Report shall summarize cash and investment activity and changes in balances and include the following: ► A certification by the City Treasurer; ► A listing of purchases and sales/maturities of investments; ► Cash and Investments categorized by authorized investments, except for LAIF which will be provided quarterly and show yield and maturity; ► Comparison of month end actual holdings to Investment Policy limitations; ► Current year and prior year monthly history of cash and investments for trend analysis; ► Balance Sheet; ► Distribution of cash and investment balances by fund; ► A year to date historical cash flow analysis and projection for the next six months; and ► A two-year list of historical interest rates. XVI FINANCIAL ASSETS AND INVESTMENT ACTIVITY NOT SUBJECT TO THIS POLICY The City's Investment Policy does not apply to the following: ► Cash and Investments raised from Conduit Debt Financing ► Funds held in trust in the City's name in pension or other post -retirement benefit programs ► Cash and Investments held in lieu of retention by banks or other financial institutions for construction projects ► Short or long term loans made to other entities by the City or Agency Short term (Due to/from) or long term (Advances from/to) obligations made either between the City and its funds or between the City and Agency XVII INVESTMENT OF BOND PROCEEDS The City's Investment Policy shall govern bond proceeds and bond reserve fund investments. California Code Section 5922 (d) governs the investment of bond proceeds and reserve funds in accordance with bond indenture provisions which shall be structured in accordance with the City's Investment Policy. Arbitrage Requirement - The US Tax Reform Act of 1986 requires the City to perform arbitrage calculations as required and return excess earnings to the US Treasury from investments of proceeds of bond issues sold after the effective date of this law. These arbitrage calculations may be contracted with an outside source to provide the necessary technical assistance to comply with this regulation. Investable funds subject to the 1986 Tax Reform Act will be kept segregated from other funds and records will be kept in a fashion to facilitate the calculations. The City's investment position relative to the new arbitrage restrictions is to continue pursuing the maximum yield on applicable investments while ensuring the safety of capital and liquidity. It is the City's position to continue maximization of yield and to rebate excess earnings, if necessary. 15 `AGN XVIII INVESTMENT ADVISORY BOARD - CITY OF LA QUINTA The Investment Advisory Board (IAB) is a standing board composed of five members from the public that are appointed by the City Council. Background information will be requested and potential candidates must agree to a background check and verification. On an annual basis, in conjunction with the Political Reform Act disclosure statutes, or at any time if a change in circumstances warrants, each board member will provide the City Council with a disclosure statement which identifies any matters that have a bearing on the appropriateness of that member's service on the board. All board members shall report annually to the City Clerk on Form 700, Statement of Economic Interests, any activities, interests, or relationships that may be, or have the appearance of, a conflict of interest. The IAB must meet at least quarterly, but usually meets monthly, to: ► Review at least annually the City's Investment Policy and recommend appropriate changes; ► Review monthly treasury report and note compliance with the Investment Policy and adequacy of cash and investments for anticipated obligations; ► Receive and consider other reports provided by the City Treasurer; ► Meet with the independent auditor after completion of the annual audit of the City's financial statements, and receive and consider the auditor's comments on auditing procedures, internal controls and findings for cash and investment activities; and ► Serve as a resource for the City Treasurer on matters such as proposed investments, internal controls, use or change of financial institutions, custodians, brokers and dealers. The IAB will report to the City Council after each meeting either in person or through correspondence at a regular City Council meeting. See Appendix B: "Investment Advisory Board Provisions." XIX INVESTMENT POLICY ADOPTION The City's Investment Policy will be reviewed annually by the City's Investment Advisory Board and the City Treasurer. The Investment Advisory Board will forward the Investment Policy with any revisions to the City Manager and City Attorney for their review and comment. A joint meeting will be held with the Investment Advisory Board, City Manager, City Attorney, and City Treasurer to review the Investment Policy and any comments prior to submission to the City Council for their consideration. The Investment Policy shall be adopted by resolution of the City Council annually before the end of June of each year. 16 233 Q El Q z_ D 0 Q J LL 0 U VJ z LU C LU z 0 z Q 0 CL LU 0 LU J m En VcJ C LU CL LL 0 Q D N N U O Q U Q U cu E O cu O (6 N N C U Cd C C7 C X cu E t N tv m o O Q ¢ N uJ� N A :ram v f6 3 U a0 Q mY1 LL, m @Q o�i �Q U(Y U U U o6 o U� Q M0 -n m o LLs a � m -o mQ 0 IL 0 z 0 0 42�-_ Of co co co m w E E E A A A A A A A to A 0 m 0 E �' A �' A �' A m T 0 U U U W co o _ 0 _ A Q Q k > LL � O A Q a• N a• N :T - N � O a• N lU fN/1 � y N LL' � p p o m V y U o0 0 0 0o n o0 0o Q �� fl- Q o N 0 N om V o K lU co fA V fA V 0 0 0 0 0 0 0 0 0 0 o g 0 V! C r o W o 0 0 0 0 rf c6 V Q- a a a a a a aC) a a a a a °\o O o m LL C C C O O O O O O O O O p O O O O O_ C3 C �•^ X c6 O O O O O O O O O O O O O O O O O O O O O O O O p U •X U O � a a a a LL 0 0 0 0 o 0 0 o a O p a a a a o fC 2 0 0 0 0 0 o in o 0 o O o 0 0 0 N `O an a C Q o -o 10 z 00 U' o o_ to `U m W N 3 m E > to �' U (OD t s s> o n y N 0 LL >O (7 N lU LL LL N 0 L� lZl 0 T A (n C lU A 0I O OIQ Q Ur 0 o o QQ N to y LL y = Q O IQ toil -O N C Q Z aI T O 0 0 Y N l W Q `o w Y o m m m n m m Z 0 _ Q 0I O U O F 0 m .N m o WO o °� °� a m m m o IQ otj Q d m o `m o Z Z LL Z E F u Y U Z Z u d S\ O A N 0I O °? N N N N N U Q E N N N O Q d lU N d (n 0 (n N LL LL LL LL E O 00 O (n N O O O U -Q U z �� Dco a`a �� U U a U) O a` El Ir o o fo /\ c § o o {} )k f \\ \ \ co k ) \\o o cl o {o E ! - ( 1. o.\ \ \\_o ! o ) o §/f r §C) { - \\\ \\o \\\\\\ \\\ \ \ { �- - _uj{ - / - o { { f\ \ o {) _ E 1. { _ \ o o k \ - -- - o - ) _ § } { £ o - { \ § \) :- E o }} )/ #{ 2 o o o }7 :[ $/ iG - - ffui N - /Q 2) t®lo o.o -\ ƒ\ )\ e [ { I7® oƒ/ {� / {� E -2 :: -` ®) } / § _ §{ ]§ /[ . 7 _ )/ ! !: :; r! : {) ){ )\ - co Z! )7 +{ f[/ ) \\ oL $# !r 2 ! / G« E: ( : _ \ {} _ o \ }/ /� }\( \ }k }/ _o })\ /, )\ )o B \ Appendix B City of La Quinta Municipal Code Chapter 2.70 INVESTMENT ADVISORY BOARD PROVISIONS Sections: 2.70.010 General Rules Regarding Appointment. 2.70.020 Board meetings. 2.70.030 Board functions. 2.70.010 General rules regarding appointment A. Except as set out below, see Chapter 2.06 for General Provisions. B. The Investment Advisory Board (the"board") is a standing board composed of five (5) members from the public that are appointed by city council. C. Applicants for the board should have a background in finance, preferably with knowledge and/or experience in markets, controls and accounting for securities. Background information will be requested and potential candidates must agree to a background check and verification. D. On an annual basis, in conjunction with the Political Reform Act disclosure statutes, or at any time if a change in circumstances warrants, each board member will provide the City Council with a disclosure statement which identifies any matters that have a bearing on the appropriateness of that member's service on the board. Such matters may include, but are not limited to, changes in employment, changes in residence, or changes in clients. E. To promote continuity, the expiration of the terms of the members of the board shall be staggered. The term of service is three years, with one or two terms expiring each year. 2.70.020 Board meetings. The Board usually will meet monthly, but this schedule may be extended to quarterly meetings upon the concurrence of the Board and the City Council. The specific meeting dates will be determined by the Board Members and meetings may be called for on an as needed basis. 2.70.030 Board functions. A. The principal functions of the Board are: (1) review at least annually the City's Investment Policy and recommend appropriate changes; (2) review monthly Treasury Report and note compliance with the Investment Policy and adequacy of cash and investments for anticipated obligations; (3) receive and consider other reports provided by the City Treasurer; (4) meet with the independent auditor after completion of the annual audit of the City's financial statements, and receive and consider the auditor's comments on auditing procedures, internal controls, and findings for cash and investment activities, and; (5) serve as a resource for the City Treasurer on matters such as proposed investments, internal controls, use or change of financial institutions, custodians, brokers and dealers. B. The Board will report to the City Council after each meeting either in person or through correspondence at a regular City Council meeting. 19 PAGN Appendix C City of La Quinta Municipal Code Chapter 3.08 INVESTMENT OF MONEYS AND FUNDS Sections: 3.08.010 Investment of city moneys and deposit of securities. 3.08.020 Authorized investments. 3.08.030 Sales of securities. 3.08.040 City bonds. 3.08.050 Reports. 3.08.060 Deposits of securities. 3.08.070 Trust fund administration. 3.08.010 Investment of city moneys and deposit of securities. Pursuant to, and in accordance with, and to the extent allowed by, Sections 53607 and 53608 of the Government Code, the authority to invest and reinvest moneys of the city, to sell or exchange securities, and to deposit them and provide for their safekeeping, is delegated to the city treasurer. (Ord. 2 § 1 (part), 1982) 3.08.020 Authorized investments. Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized to purchase, at their original sale or after they have been issued, securities which are permissible investments under any provision of state law relating to the investing of general city funds, including but not limited to Sections 53601 and 53635 of the Government Code, as said sections now read or may hereafter be amended, from moneys in his custody which are not required for the immediate necessities of the city and as he may deem wise and expedient, and to sell or exchange for other eligible securities and reinvest the proceeds of the securities so purchased. (Ord. 2 § 1 (part), 1982) 3.08.030 Sales of Securities. From time to time the city treasurer shall sell the securities in which city moneys have been invested pursuant to this chapter, so that the proceeds may, as appropriate, be applied to the purchase for which the original purchase money may have been designated or placed in the city treasury. (Ord.2 § I (part), 3.08.040 City bonds. Bonds issued by the city and purchased pursuant to this chapter may be cancelled either in satisfaction of sinking fund obligations or otherwise if proper and appropriate; provided, however, that the bonds may be held uncancelled and while so held may be resold. (Ord. 2 § 1 (part), 1982) 20 237 3.08.050 Reports. The city treasurer shall make a monthly report to the city council of all investments made pursuant to the authority delegated in this chapter. (Ord. 2 § 1 (part), 1982) 3.08.060 Deposits of securities. Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized to deposit for safekeeping, the securities in which city moneys have been invested pursuant to this chapter, in any institution or depository authorized by the terms of any state law, including but not limited to Section 53608 of the Government Code as it now reads or may hereafter be amended. In accordance with said section, the city treasurer shall take from the institution or depository a receipt for the securities so deposited and shall not be responsible for the securities delivered to and receipted for by the institution or depository until they are withdrawn therefrom by the city treasurer. (Ord. 2 § 1 (part), 1982 3.08.070 Trust fund administration. Any departmental trust fund established by the city council pursuant to Section 36523 of the Government Code shall be administered by the city treasurer in accordance with Section 36523 and 26524 of the Government code and any other applicable provisions of law. (Ord. 2 § 1 (part), 1982) 21 238 Appendix D SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES Function Responsible Parties Develop and Recommend Modifications Investment Advisory Board to City's Formal Investment Policy and City Treasurer Review City's Investment Policy City Manager and Recommend City Council Action and City Attorney Adopt Formal Investment Policy City Council Implement Formal Investment Policy City Treasurer Review Financial Institutions & Select Investments City Treasurer Acknowledge Investment Selections City Manager or his/her designee Execute Investment transactions City Treasurer or City Manager Confirm Wires (if applicable) Accounting Manager or Financial Services Assistant Record Investment Transactions in City's Accounting Manager or Accounting Records Financial Services Assistant Investment Verification (match broker confirmation City Treasurer and Financial to City investment records) Services Assistant Reconcile Investment Records to Accounting Records and Bank Statements Financial Services Assistant Reconcile Investment Records to Treasurers Report of Investments Accounting Manager Security of Investments at City Accounting Manager or Senior Secretary Security of Investments outside City Third Party Custodian Review Internal Control Procedures External Auditor 22 `AGR Appendix E LISTING OF APPROVED FINANCIAL INSTITUTIONS 1. Banking Services - Wells Fargo Bank, Government Services, Los Angeles, CA (Banking Services) Rabobank N.A., Government Banking Group, Roseville, CA (Collateralized Bank Deposits) 2. Custodian Services Bank of New York/Mellon 3. Deferred Compensation International City/County Management Association Retirement Corporation 4. Broker/Dealer Services Banc of America Securities/Merrill Lynch Morgan Stanley CitiGroup First Empire Securities 5. Government Pool State of California Local Agency Investment Fund 6. Bond Trustees - 1996 Lease Revenue Bonds — US Bank 1998 RDA Project Area 1 &2 — US Bank 2001 RDA Project Area 1 — US Bank 2002 RDA Project Area 1 — US Bank 2003 RDA Project Area 1 — US Bank 2004 Local Agency Rev — US Bank 2011 RDA Project Area 2 — US Bank 2011 Fin Auth Housing 1 &2 — US Bank 2013 Successor Agency — US Bank Assessment Districts — US Bank No Changes to this listing may be made without City Council approval 23 `zst Appendix F BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION 1 . Name of Firm: 2. Address: 3. Telephone: ( 1 ( 1 4. Broker's Representative to the City (attach resume): Name: Title: Telephone: 1 1 5. Manager/Partner-in-charge (attach resume): Name: Title: Telephone: 6. List all personnel who will be trading with or quoting securities to City employees (attach resume) Name: Title: Telephone:) 1 ( 1 7. Which of the above personnel have read the City's Investment Policy? 8. Which instruments are offered regularly by your local office? (Must equal 100%) • U.S. Treasuries % Repos • BA's % Reverse Repos • Commercial Paper % CMO's • CD's % Derivatives • Mutual Funds % Stocks/Equities • Agencies (specify): % Other (specify): 9. References -- Please identify your most directly comparable public sector clients in our geographical area. Entity Entity Contact Contact 24 Telephone ( ) Telephone ( ) Client Since Client Since 10. Have any of your clients ever sustained a loss on a securities transaction arising from a misunderstanding or misrepresentation of the risk characteristics of the instrument? If so, explain. 1 1 . Has your firm or your local office ever been subject to a regulatory or state/ federal agency investigation for alleged improper, fraudulent, disreputable or unfair activities related to the sale of securities? Have any of your employees been so investigated? If so, explain. 12. Has a client ever claimed in writing that you were responsible for an investment loss? Yes No If yes, please provide action taken Has a client ever claimed in writing that your firm was responsible for an investment loss? Yes No If yes, please provide action taken Do you have any current or pending complaints that are unreported to FINRA? Yes No If yes, please provide action taken Does your firm have any current, or pending complaints that are unreported to FINRA? Yes No If yes, please provide action taken 13. Explain your clearing and safekeeping procedures, custody and delivery process. Who audits these fiduciary responsibilities? Latest Audit Report Date 25 `zy 14. How many and what percentage of your transactions failed? Last month? % $ Last year? % $ 15. Describe the method your firm would use to establish capital trading limits for the City of La Quinta. 16. Is your firm a member in the S.I.P.C. insurance program? Yes No If yes, explain primary and excess coverage and carriers. 17. What portfolio information, if any, do you require from your clients? 18. What reports and transaction confirmations or any other research publications will the City receive? 19. Does your firm offer investment training to your clients? Yes No 20. Does your firm have professional liability insurance? Yes No If yes, please provide the insurance carrier, limits and expiration date. 21. Please list your FINRA/NASD Registration Number 22. Do you have any relatives who work at the City of La Quinta? Yes No If yes, Name and Department 23. Do you maintain an office in California? Yes No 24. Do you maintain an office in La Quinta or Riverside County? Yes No 25. Please enclose the following: ► Latest audited financial statements; ► Samples of reports, transaction confirmations and any other research/publications the City will receive; ► Samples of research reports and/or publications that your firm regularly provides to clients; and ► Complete schedule of fees and charges for various transactions. 26 243 ***CERTIFICATION*** I hereby certify that I have personally read the Statement of Investment Policy of the City of La Quinta, and have implemented reasonable procedures and a system of controls designed to preclude imprudent investment activities arising out of transactions conducted between our firm and the City of La Quinta. All sales personnel will be routinely informed of the City's investment objectives, horizons, outlooks, strategies and risk constraints whenever we are so advised by the City. We pledge to exercise due diligence in informing the City of La Quinta of all foreseeable risks associated with financial transactions conducted with our firm. By signing this document the City of La Quinta is authorized to conduct any and all background checks. Under penalties of perjury, the responses to this questionnaire are true and accurate to the best of my knowledge. Broker Representative Date Title Sales Manager and/or Managing Partner* Date Title 27 244 Appendix G Request for Proposals Professional Portfolio Management Firm City of La Quinta, CA The City of La Quinta, CA is soliciting Requests for Proposals (RFP) from interested firms for the provision of a discretionary investment management services for City of La Quinta, CA. The portfolio to be managed of the invested assets is will be approximately 10% of the City's investment portfolio and will be invested between 0 — 3 years. The investment of City of La Quinta, CA's funds is guided by the applicable State statutes and the City of La Quinta, CA's investment policy. A copy of the investment policy is attached for your information. Questions regarding this RFP should be directed to: Name: Title: City of: Address: City, State, Zip Code Phone Number: Rita Conrad Finance Director/Treasurer La Quinta, CA 78-495 Calle Tampico La Quinta, CA 92253 (760)777-7150 I. CRITERIA FOR EVALUATION AND SELECTION ■ Experience of the firm in providing services to public sector entities of similar size and with similar investment objectives; ■ Professional experience and qualifications of the individuals assigned to the account; ■ Portfolio management resources, investment philosophy and approach; ■ Responsiveness to the RFP, communicating an understanding of the overall program and services required; ■ Reporting capabilities; ■ Fees. II. SELECTION TIMETABLE A. [Month, Day and Year] Proposals due by [Time] PST. B. [Month, Day and Year] Proposals evaluated: to be determined C. [Month, Day and Year] [City of La Quinta, CA] [Board/Council] approves selection and awards contract. III. FORMAT FOR PROPOSALS Please format your response to this RFP in the following manner: A. Organization 28 `ZI B C. Governmental 1. Describe your organization, date founded, ownership and other business affiliations. Provide number and location of affiliated offices. Specify the number of years your organization has provided investment management service. 2. Describe your firm's revenue sources (e.g., investment management, institutional research, etc.) and comment on your firm's financial condition. 3. Within the past three years, have there been any significant developments in your organization (e.g., changes in ownership, new business ventures)? Do you expect any changes in the near future? 4. Describe any U.S. Securities and Exchange Commission (SEC) censures or litigation involving your organization, any officer, or employee at any time in the last ten years. 5. Describe the firm's fiduciary liability and/or errors and omissions insurance coverage. Include dollar amount of coverage. Personnel 1 . Identify the number of professionals employed by your firm by classification. 2. Provide an organization chart showing function, positions, and titles of all the professionals in your organization. 3. Provide biographical information on investment professionals that will be involved in the decision -making process for our portfolio, including number of years at your firm. Identify the person who will be the primary portfolio manager assigned to the account. 4. Describe your firm's compensation policies for investment professionals and address any incentive compensation programs. Assets Under Management 1 . Summarize your institutional investment management asset totals by category for your latest reporting period in the following table: Governmental Pension Non Governmental Pension Number Number of of Clients Operating Funds Clients S $ N/A u 29 M11 Other Restrictive Funds S `zs Corporate $ N/A N/A High Net Worth Client $ N/A N/A Endowmental/Foun- $ N/A N/A dation 2. Provide the number of separate accounts whose portfolios consist of operating funds. 3. List in the following table the percentage by market value of aggregate assets under all governmental accounts under management for your latest reporting period: Type of Asset Percent by Market Value U.S. Treasury securities Federal Agency obligations Corporate securities rated AAA -AA Corporate securities rated A Corporate securities rated BBB or lower Other (specify 4. Describe the procedures that your firm has in place to address the potential or actual credit downgrade of an issuer and to disclose and advise a client of the situation. 5. Provide data on account/asset growth over the past five years. Indicate the number of government accounts gained and the number of government accounts lost. 6. List your five governmental largest clients. Identify those that are exclusively operating fund relationships and/or those that are other relationships (e.g., bond fund, retirement fund). 7. Provide a copy of the firm's Form ADV, Parts I and II (including all schedules). 8. Provide proof of State of California Registration, if your firm is not eligible for SEC registration. 9. Provide a sample contract for services. 30 247 D. Philosophy/Approach 1 . Describe your firm's investment philosophy for public clients, including your firm's philosophy regarding average duration, maturity, investment types, credit quality, and yield. 2. Describe in detail your investment process, as you would apply it to City of La Quinta, CA's portfolio. 3. What are the primary strategies for adding value to portfolios? 4. Describe the process you would recommend for establishing the investment objectives and constraints for this account. 5. Describe in detail your process of credit risk management, including how you analyze credit quality, monitor credits on an ongoing basis, and report credit to governmental accounts. 6. Describe your firm's trading methodology. 7. Describe your firm's decision -making process in terms of structure, committees, membership, meeting frequency, responsibilities, integration of research ideas, and portfolio management. 8. Describe your research capabilities as they would pertain to governmental accounts. What types of analysis do you use? 9. Describe the firm's approach to managing relationships with the broker -dealer community. E. Portfolio Management 1 . Are portfolios managed by teams or by one individual? 2. What is the average number of accounts handled per manager? 3. Which professional staff member will be the primary client contact for City of La Quinta, CA? 4. How frequently are you willing to meet with us? 5. Describe procedures used to ensure that portfolios comply with client investment objectives, policies, and bond resolutions. F. Fees Charged 1. Please include a copy of your firm's fee schedule applicable to this RFP. 2. Identify any expenses that would not be covered through this fee structure and would be required in order to implement the firm's program. 31 248 3. Is there a minimum annual fee? G. Performance Reporting 1 . Please report on all accounts under $100 million. 2. Please provide performance history for governmental accounts for the last five years. 3. Please provide risk measurements for governmental accounts for the last five years. 4. Indicate whether your returns are calculated and compiled in accordance with the Association for Investment Management and Research (AIMR/CFA Institute) standards. 5. Do your reports conform to the State of California reporting standards? Are you willing to customize your reports to meet our specifications? 6. How will you notify us of investment transactions? 7. Are confirmations of investment transactions sent directly by the broker/dealer to the client? 8. Do your reports include rating information on investments which is required by GASB 40? H. References Provide a list of at least five (5) client references in California. References should be public agencies with portfolio size and investment objectives similar to City of La Quinta, CA. Include length of time managing the assets, contact name, and phone number. I. Insurance Requirements Exhibit A defines the insurance requirements that will need to be met prior to the [Board/Councilj's approval of any agreement for services. J. Submittal of proposals 1 . Seven (7) copies of the proposal shall be submitted in a sealed envelope bearing the caption RFP for (City of La Quinta, CA) and addressed to: City of La Quinta, CA 78-495 Calle Tampico La Quinta, CA 92253 Attention: Rita Conrad, Finance Director/Treasurer 32 `zR; Proposal must be received no later than [Time] PST on [Month, Day, and Year]. Proposals should be verified before submission. The City of La Quinta, CA shall not be responsible for errors or omissions on the part of the respondent in preparation of a proposal. The City of La Quinta, CA reserves the right to reject any and all proposals, to wave any irregularities, or informalities in the proposals, and to negotiate modifications to any proposal. Enclosures: Investment Policy Treasurers Report 33 ` IM 9 El C LL C CD E Ws W C a O_ o E 0 LL Q a� o— w y R 0 c O z O z O z O z O z O z O z> u O u O r u O r u O r u O r u O r O Z u O r u O r u O r u O r u O r u O r u N r o ° s y c w R O a` `w aU L O 3(L O Z O Z O Z O Z O Z O Z O Z> O Z> O Z O Z>>>>>> y y > O Z' QU N 0 O � c w a a) N E O 0 Q 0 U Qo '-' 0 0 0 0 0 o Q o 0 0 0 Q" Q o 0 o o o 0 0 0 0 0 0 Z� Q o 0 0 o a o 0 Q O_ O 0 O_ O 0 _ � W Q a) Q a) E Y Y O O O � O O O 0 Z0 Z0 Z0 Z0 >>ZZ V M N N Z Z Z Z ON 00 M 00 N 0 Z 00 Z O 9 9 ME a a N O O 0 O 0 O O O N 0 O O O O Z O i O Z O Z O i a) i O O > 0 O O a) O) O) co 0 0 Lo Lo N LO LO LO � �a) C y Y Q Z` O C o E o Q w a) u, a o O O u, a a) ._ m .a) o E a) o o E o a (D 0 o a) a) LL Q o 0 9 Ulm O C O U >. U C a) C T U O Q w a) O C C U a) a) U 9 O Ll (n -O O LL O M U N E a) N m G) O p) a O Q I Q a) ~ Y C Q a) U Q L O Q a) a) J O O d a) Ul Y O a) O cC U m C a) u) D E E O a) E .N O VI a) Ul 9 Z L a H O > O O O Q a) C f/) a) t0/) a) U a)C n O > o O Q 0 C Ir c — a+ C 0 AR E •j� a V N `� 9 M o V w O E N O O O co M M m 0 0 0 of 0 0 p) O —0U d M M M M LO M LO M LO M M M M O M M M coo 0 LO LO LO LO LO LO LO 0 LO O LO LO �U co }. L Ul E U O (D O U) It CY) 04 N Appendix I Investment Management Process and Risk Except as provided for in Section 27000.3, Government Code Section 53600.3 declares as a trustee each person, treasurer, or governing body authorized to make investment decisions on behalf of local agencies. As trustees are subject to the prudent investor standard. These persons shall act with care, skill, prudence, and diligence under the circumstances then prevailing when investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing funds. Section 53600.5 further stipulates that the primary objective of any person investing public funds is to safeguard principal; secondly, to meet liquidity needs of the depositor; and lastly, to achieve a return or yield on invested funds (Government Code Section 27000.5 specifies the same objectives for county treasurers and board of supervisors). Risk is inherent throughout the investment process. There is investment risk associated with any investment activity and opportunity risk related to inactivity. Market risk is derived from exposure to overall changes in the general level of interest rates while credit risk is the risk of loss due to the failure of the insurer of a security. The market value of a security varies inversely with the level of interest rates. If an investor is required to sell an investment with a five percent yield in a comparable seven percent rate environment, that security will be sold at a loss. The magnitude of that loss will depend on the amount of time until maturity. Purchasing certain allowable securities with a maturity of greater than five years requires approval of the governing board (see Government Code Section 53601). Part of that approval process involves assessing and disclosing the risk and possible volatility of longer -term investments Another element of market risk is liquidity risk. Instruments with unique call features or special structures, or those issued by little known companies, are examples of "story bonds" and are often thinly traded. Their uniqueness often makes finding prospective buyers in a secondary market more difficult and, consequently, the securities' marketability and price are discounted. However, under certain market conditions, gains are also possible with these types of securities. Default risk represents the possibility that the borrower may be unable to repay the obligation as scheduled. Generally, securities issued by the federal government and its agencies are considered the most secure, while securities issued by private corporations or negotiable certificates of deposit issued by commercial banks have a greater degree of risk. Securities with additional credit enhancements, such as bankers acceptances, collateralized repurchase agreements and collateralized bank deposits are somewhere between the two on the risk spectrum. The vast majority of portfolios are managed within a buy and hold policy. Investments are purchased with the intent and capacity to hold that security until maturity. At times, market forces or operations may dictate swapping one security for another or selling a security before maturity. Continuous analysis and fine tuning of the investment portfolio are considered prudent investment management. The Government Code contains specific provisions regarding the types of investments and practices permitted after considering the broad requirement of preserving principal and maintaining liquidity before seeking yield. These provisions are intended to promote the use of reliable, diverse, and safe investment instruments to better ensure a prudently managed portfolio worthy of public trust. Chapter ll. Fund Management Local Agency Investment Guidelines 2010 Issued by California Debt and Investment Advisory Commission 99 `w Appendix J GLOSSARY (Adopted from the Municipal Treasurers Association) The purpose of this glossary is to provide the reader of the City of La Quinta investment policies with a better understanding of financial terms used in municipal investing. AGENCIES: Federal agency securities and/or Government -sponsored enterprises. ASKED: The price at which securities are offered BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer. BROKER: A broker brings buyers and sellers together for a commission. CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large -denomination CD's are typically negotiable. COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMMERCIAL PAPER: Short-term unsecured promissory notes issued by a corporation to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation, IBM, BankAmerica, etc. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the City of La Quinta. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance -related legal and contractual provisions, extensive 9.1 introductory material, and a detailed Statistical Section. CONDUIT FINANCING: A form of Financing in which a government or a government agency lends its name to a bond issue, although it is acting only as a conduit between a specific project and bond holders. The bond holders can look only to the revenues from the project being financed for repayment and not to the government or agency whose name appears on the bond. COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities)• DISCOUNT: The difference between the cost price of a security and its maturity when quoted at 253 lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount. DISCOUNT SECURITIES: Non -interest bearing money market instruments that are issued a discount and redeemed at maturity for full face value, e.g., U.S. Treasury Bills. DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L's, small business firms, students, farmers, farm cooperatives, and exporters. FNMAs (Federal National Mortgage Association) - Like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder -owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. FHLBs (Federal Home Loan Bank Notes and Bonds) - Issued by the Federal Home Loan Bank System to help finance the housing industry. The notes and bonds provide liquidity and home mortgage credit to savings and loan associations, mutual savings banks, cooperative banks, insurance companies, and mortgage -lending institutions. They are issued irregularly for various maturities. The minimum denomination is $5,000. The notes are issued with maturities of less than one year and interest is paid at maturity. 37 FLBs (Federal Land Bank Bonds) - Long-term mortgage credit provided to farmers by Federal Land Banks. These bonds are issued at irregular times for various maturities ranging from a few months to ten years. The minimum denomination is $1,000. They carry semi-annual coupons. Interest is calculated on a 360-day, 30 day month basis. FFCBs (Federal Farm Credit Bank) - Debt instruments used to finance the short and intermediate term needs of farmers and the national agricultural industry. They are issued monthly with three- and six-month maturities. The FFCB issues larger issues (one to ten year) on a periodic basis. These issues are highly liquid. FICBs (Federal Intermediate Credit Bank Debentures) - Loans to lending institutions used to finance the short-term and intermediate needs of farmers, such as seasonal production. They are usually issued monthly in minimum denominations of $3,000 with a nine -month maturity. Interest is payable at maturity and is calculated on a 360- day, 30-day month basis. FHLMCs (Federal Home Loan Mortgage Corporation) - a government sponsored entity established in 1970 to provide a secondary market for conventional home mortgages. Mortgages are purchased solely from the Federal Home Loan Bank System member lending institutions whose deposits are insured by agencies of the United States Government. They are issued for various maturities and in minimum denominations of $10,000. Principal and interest is paid monthly. Other federal agency issues are Small Business Administration notes (SBA's), Government National Mortgage Association notes (GNMA's), Tennessee Valley Authority notes (TVA's), and Student Loan Association notes (SALLIE-MAE's). FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit through December 31, 2013. 254 FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open - market operations. FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks (currently 12 regional banks) which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district Bank. FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FMHM mortgages. The term "pass-throughs" is often used to describe Ginnie Maes. LAIF (Local Agency Investment Fund) - A special fund in the State Treasury which local agencies may use to deposit funds for investment. There is no minimum investment period and the minimum transaction is $5,000, in multiples of $1,000 above that, with a maximum balance of 0? $50,000,000 for any agency. The City is restricted to a maximum of ten transactions per month. It offers high liquidity because deposits can be converted to cash in 24 hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share basis determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly. The State retains an amount for reasonable costs of making the investments, not to exceed one-half of one percent of the earnings. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase --reverse repurchase agreements that establishes each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer -lender to liquidate the underlying securities in the event of default by the seller -borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded. OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid. OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool. PORTFOLIO: Collection of all cash and securities under the direction of the City Treasurer, including Bond Proceeds. PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) -registered securities broker -dealers, banks and a few unregulated firms. QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is increasing bank reserves. REVERSE REPURCHASE AGREEMENTS (RRP or RevRepo) - A holder of securities sells these securities to an investor with an agreement to 39 repurchase them at a fixed price on a fixed date. The security"buyer" in effect lends the"seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RRP extensively to finance their positions. Exception: When the Fed is said to be doing RRP, it is lending money that is increasing bank reserves. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See Uniform Net Capital Rule. STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, SLMA, etc.) and Corporations which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, and derivative - based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve. SURPLUS FUNDS: Section 53601 of the California Government Code defines surplus funds as any money not required for immediate necessities of the local agency. The City has defined immediate necessities to be payment due within one week. TREASURY BILLS: A non -interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months or one year. TREASURY BONDS: Long-term coupon -bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years. f►4.7 TREASURY NOTES: Medium -term coupon -bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker -dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. UNIFORM PRUDENT INVESTOR ACT: The State of California has adopted this Act. The Act contains the following sections: duty of care, diversification, review of assets, costs, compliance determinations, delegation of investments, terms of prudent investor rule, and application. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. IN 257 258 CITY / SA / HA / FA MEETING DATE: June 2, 2015 ITEM TITLE: APPROVE PLANS, SPECIFICATIONS AND ENGINEER'S ESTIMATE AND ADVERTISE FOR BIDS FOR PHASE I AND PHASE II AMERICANS WITH DISABILITIES ACT SPORTS COMPLEX AND YMCA FACILITY IMPROVEMENTS PROJECT RECOMMENDED ACTION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: 12 STUDY SESSION: PUBLIC HEARING: Approve the plans, specifications and engineer's estimate and authorize staff to advertise for bids for the Phase I and Phase II Americans with Disabilities Act Sports Complex and YMCA Facility Improvements Project. EXECUTIVE SUMMARY: • This project includes a variety of improvements to the Sports Complex and the YMCA facilities as identified in the City's Americans with Disabilities Act (ADA) accessibility self -evaluation, in order to improve accessibility to the facilities. • Phase I includes ADA improvements that do not require detailed plans and will be completed by a general building contractor under a separate contract from Phase II. Phase II includes work which requires engineered plans to complete. • The specifications and engineer's estimate for Phase I, and the plans, specifications and engineer's estimate (PS&E) for Phase II are now complete and are recommended to advertise for bids. FISCAL IMPACT: A total of $410,736 is budgeted in the 2014/2015 Capital Improvement Program. Of the total, $63,139 is available from Equipment Replacement Funds and $347,597 is available from Quimby Funds. The estimated cost for the Phase I improvements is $67,000 and for Phase II is $155,000. The following is the approved budget: M BUDGET LINE ITEM BUDGET Professional/Design: $ 48,374 Technical (Inspection/Test/Survey): $ 17,984 Construction: $299,278 Contingency: $ 41,411 City Administration: $ 3,689 TOTAL BUDGET: $410,736 BACKGROUND/ANALYSIS: In 2011, the City conducted an ADA accessibility self -evaluation of its public facilities by commissioning an accessibility survey by Disability Access Consultants. This survey identified the need for certain ADA improvements at the Sports Complex and YMCA, which are adjacent to La Quinta Middle School and Harry Truman Elementary School (Attachment 1). This project has been separated into two phases in order to keep similar types of work together. The first phase includes installing accessible benches, ADA compliant drinking fountains, mounting ADA compliant signage on buildings, adjusting grab bars, dispensers, and other incidental items to comply with current ADA standards. The second phase of work includes reconfiguration of existing ADA parking stalls, curb ramps and sidewalks, which entail installing ADA compliant signing and striping, installing wheel stops in ADA parking stalls, modifying non-ADA compliant cross slopes, and installing truncated domes. The two project bid documents are now complete and available for review in the City's Public Works Department. Contingent upon City Council's approval to advertise for bids, the following is the proposed schedule: City Council Bid Authorization Bid Period Project Award Execute Contract and Mobilize Construction (45 Working Days) Accept Improvements ALTERNATIVES: June 2, 2015 June 3 through July 2, 2015 July 7, 2015 July 8 through July 29, 2015 August through September 2015 October 2015 As the improvements are required by the ADA and construction during summer months would be less disruptive to schools, no alternative is recommended. Report prepared by: Ed Wimmer, P.E., Principal Engineer Report approved for submission by: Timothy R. Jonasson, P.E. Public Works Director/City Engineer Attachment: 1. Vicinity Map KM �, E CITY / SA / HA / FA MEETING DATE: June 2, 2015 AGENDA CATEGORY: ITEM TITLE: APPROVE PROFESSIONAL SERVICES AGREEMENT BUSINESS SESSION: WITH NAI CONSULTING, INC. FOR PROJECT MANAGEMENT CONSENT CALENDAR: 13 AND CONTRACT ADMINISTRATIVE SUPPORT SERVICES STUDY SESSION: PUBLIC HEARING: RECOMMENDED ACTION: Approve a Professional Services Agreement with NAI Consulting, Inc., in an amount not to exceed $487,455, for project management and contract administrative support services for Fiscal Year 2015/2016. EXECUTIVE SUMMARY: • NAI Consulting, Inc. (NAI) provides project management and contract administrative support related to the City's Capital Improvement Program (CIP). The contract expires June 30, 2015. • After soliciting and reviewing proposals from similar firms, staff recommends entering into a new contract with NAI due to their superior qualifications and comprehensive knowledge of City operations. FISCAL IMPACT: The Professional Services Agreement (PSA) is for time and materials not to exceed $487,455. Funds are included within the project budgets of the CIP. In addition, funds are included in the Public Works operating budget for special projects such as preparation of the City's Maintenance of Effort or updating Development Impact Fees. BACKGROUND/ANALYSIS: NAI is a local firm that has provided the City with contract project management, project design, and State and Federal funding administration services since 1997. These services require technical expertise that is not possessed by staff. POW In April 2015, staff conducted a formal Request for Proposals process, and five proposals were submitted. NAI was ranked number one. The other firms that submitted proposals were Construction Planning and Management LLC, Onward Engineering, Southstar Engineering and Consulting, and Overland Pacific and Cutler, Inc. NAI's flexibility and comprehensive knowledge of City operations have proven invaluable. Additionally, NAI has maintained the same rates for the City from the previous contract. Staff believes NAI is the most cost effective for addressing project management and engineering support for the City because there will be no learning curve for their staff. The PSA would be for the period July 1, 2015 through June 30, 2016, with an automatic renewal option for two additional one year terms (Attachment 1). The City reserves the right to terminate the agreement at any time with a 30-day written notice to the consultant and, depending on the number and size of projects within the CIP, the City can add to or deduct work from the proposed agreement as necessary. ALTERNATIVES: Due to the exemplary service supplied by NAI Consulting and the firsthand knowledge of the City's CIP by its president, Nick Nickerson, staff does not recommend an alternative. Report prepared by: Ed Wimmer, P.E., Principal Engineer Report approved for submission by: Timothy R. Jonasson, P.E. Public Works Director/City Engineer Attachment: 1. PSA K-! ATTACHMENT 1 PROFESSIONAL SERVICES AGREEMENT THIS PROFESSIONAL SERVICES AGREEMENT (the "Agreement") is made and entered into by and between the CITY OF LA QUINTA, ("City"), a California municipal corporation, and NAI CONSULTING, INC. ("Consultant"). The parties hereto agree as follows: 1.0 SERVICES OF CONSULTANT 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide those services related to Project Management and Contract Administrative Support Services, as specified in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by this reference (the "Services"). Consultant represents and warrants that Consultant is a provider of first-class services and Consultant is experienced in performing the Services contemplated herein and, in light of such status and experience, Consultant covenants that it shall follow the highest professional standards in performing the Services required hereunder. For purposes of this Agreement, the phrase "highest professional 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 Licenses, Permits, Fees and Assessments. Except as otherwise specified herein, Consultant shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of the Services required by this Agreement, including a City of La Quinta business license. Consultant 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. Consultant shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the performance of the Services required by this Agreement, and shall indemnify, defend (with counsel selected by City), and hold City, its elected officials, officers, employees, and agents, free and harmless against any such fees, assessments, taxes, penalties, or interest levied, assessed, or imposed against City hereunder. Consultant shall be responsible for all subcontractors' compliance with this Section. 1.4 Familiarity with Work. By executing this Agreement, Consultant warrants that (a) it has thoroughly investigated and considered the Services to be Last revised April 2015 `l* 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 Consultant discover any latent or unknown conditions materially differing from those inherent in the Services or as represented by City, Consultant shall immediately inform City of such fact and shall not proceed except at Consultant's risk until written instructions are received from the Contract Officer (as defined in Section 4.2 hereof). 1.5 Standard of Care. Consultant acknowledges and understands that the Services contracted for under this Agreement require specialized skills and abilities and that, consistent with this understanding, Consultant's work will be held to a heightened standard of quality. Consistent with Section 1.4 hereinabove, Consultant represents to City that it holds the necessary skills and abilities to satisfy the heightened standard of quality as set forth in this Agreement. Consultant shall adopt reasonable methods during the life of this Agreement to furnish continuous protection to the Services performed by Consultant, and the equipment, materials, papers, and other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the Services by City, except such losses or damages as may be caused by City's own negligence. The performance of Services by Consultant shall not relieve Consultant from any obligation to correct any incomplete, inaccurate, or defective work at no further cost to City, when such inaccuracies are due to the negligence of Consultant. 1.6 Additional Services. In accordance with the terms and conditions of this Agreement, Consultant shall perform services in addition to those specified in the Scope of Services ("Additional Services") only when directed to do so by the Contract Officer, provided that Consultant shall not be required to perform any Additional Services without compensation. Consultant shall not perform any Additional Services until receiving prior written authorization from the Contract Officer, 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 Consultant. It is expressly understood by Consultant 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 Consultant to secure the Contract Officer'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 Last revised April 2015 -2- 266 Contract Officer. Compensation for properly authorized Additional Services shall be made in accordance with Section 2.3 of this Agreement. 1.7 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in Exhibit "D" (the "Special Requirements"), 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. 2.0 COMPENSATION 2.1 Contract Sum. For the Services rendered pursuant to this Agreement, Consultant shall be compensated in accordance with Exhibit "B" (the "Schedule of Compensation") in a total amount not to exceed Four Hundred Eighty -Seven Thousand, Four Hundred Fifty -Five Dollars ($487,455.00) (the "Contract Sum"), except as provided in Section 1.6. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment in accordance with the percentage of completion of the Services, payment for time and materials based upon Consultant's rate schedule, but not exceeding the Contract Sum, or such other methods as may be specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Consultant at all project meetings reasonably deemed necessary by City; Consultant 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 compensation set forth in the Schedule of Compensation, Consultant's overall compensation shall not exceed the Contract Sum, except as provided in Section 1.6 of this Agreement. 2.2 Method of Billing. Any month in which Consultant wishes to receive payment, Consultant shall submit to City no later than the tenth (10th) working day of such month, in the form approved by City's Finance Director, an invoice for Services rendered prior to the date of the invoice. Such invoice shall (1) describe in detail the Services provided, including time and materials, and (2) specify each staff member who has provided Services and the number of hours assigned to each such staff member. Such invoice shall contain a certification by a principal member of Consultant specifying that the payment requested is for Services performed in accordance with the terms of this Agreement. Subject to retention pursuant to Section 8.3, City will pay Consultant 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. Last revised April 2015 -3- 267 2.3 Compensation for Additional Services. Additional Services approved in advance by the Contract Officer pursuant to Section 1.6 of this Agreement shall be paid for in an amount agreed to in writing by both City and Consultant in advance of the Additional Services being rendered by Consultant. Any compensation for Additional Services amounting to five percent (5%) or less of the Contract Sum may be approved by the Contract Officer. Any greater amount of compensation for Additional Services must be approved by the La Quinta City Council. Under no circumstances shall Consultant receive compensation for any Additional Services unless prior written approval for the Additional Services is obtained from the Contract Officer pursuant to Section 1.6 of this Agreement. 3.0 PERFORMANCE SCHEDULE 3.1 Time of Essence. Agreement. If the Services Performance, as set forth in City will suffer damage. Time is of the essence in the performance of this not completed in accordance with the Schedule of Section 3.2 and Exhibit C, it is understood that the 3.2 Schedule of Performance. All Services rendered pursuant to this Agreement shall be performed diligently and within the time period established in Exhibit C (the "Schedule of Performance"). Extensions to the time period specified in the Schedule of Performance may be approved in writing by the Contract Officer. 3.3 Force Majeure. The time period specified in the Schedule of Performance for performance of the Services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant, including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than City, and unusually severe weather, if Consultant shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the Services for the period of the forced delay when and if in his or her judgment such delay is justified, and the Contract Officer's determination shall be final and conclusive upon the parties to this Agreement. Extensions to time period in the Schedule of Performance which are determined by the Contract Officer to be justified pursuant to this Section shall not entitle the Consultant to additional compensation in excess of the Contract Sum. 3.4 Term. Unless earlier terminated in accordance with Sections 8.8 or 8.9 of this Agreement, the term of this Agreement shall commence on July 1, 2015 and terminate on June 30, 2016 ("Initial Term"). This Agreement may be extended Last revised April 2015 -4- 268 for two additional year(s) upon mutual agreement by both parties ("Extended Term"). 4.0 COORDINATION OF WORK 4.1 Representative of Consultant. The following principals of Consultant ("Principals") are hereby designated as being the principals and representatives of Consultant authorized to act in its behalf with respect to the Services specified herein and make all decisions in connection therewith: a. Lloyd "Nick" Nickerson, Jr., President Email: uniiniiiclkeursoununaiiicounsLilll-l:iiiung,�corn ............................................................................................................................................................................................... It is expressly understood that the experience, knowledge, capability, and reputation of the foregoing Principals were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing Principals shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the Services hereunder. For purposes of this Agreement, the foregoing Principals may not be changed by Consultant 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" shall be Timothy R. Jonasson, P.E., Public Works Director/City Engineer or such other person as may be designated in writing by the City Manager of City. It shall be Consultant's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the Services, and Consultant shall refer any decisions, that must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. The Contract Officer 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 Consultant, its principals, and its employees were a substantial inducement for City to enter into this Agreement. Except as set forth in this Agreement, Consultant shall not contract with any other entity to perform in whole or in part the Services required hereunder without the express written approval of City. In addition, neither this Agreement nor any interest herein may be 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 Consultant, taking all transfers into account on a cumulative basis. Any attempted or purported assignment or contracting by Last revised April 2015 -5- 269 Consultant without City's express written approval shall be null, void, and of no effect. No approved transfer shall release Consultant 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 Consultant, its agents, or its employees, perform the Services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge, supervision, or control of Consultant's employees, servants, representatives, or agents, or in fixing their number or hours of service. Consultant shall perform all Services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Consultant in its business or otherwise or a joint venturer or a member of any joint enterprise with Consultant. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. Except for the Contract Sum paid to Consultant as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Consultant 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, Consultant 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. Consultant agrees to pay all required taxes on amounts paid to Consultant 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. Consultant shall fully comply with the workers' compensation laws regarding Consultant and Consultant's employees. Consultant further agrees to indemnify and hold City harmless from any failure of Consultant to comply with applicable workers' compensation laws. City shall have the right to offset against the amount of any payment due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant's failure to promptly pay to City any reimbursement or indemnification arising under this Section. 4.5 Identity of Persons Performing Work. Consultant represents that it employs or will employ at its own expense all personnel required for the Last revised April 2015 -6- 270 satisfactory performance of any and all of the Services set forth herein. Consultant represents that the Services required herein will be performed by Consultant or under its direct supervision, and 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 Consultant 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 Consultant only from or through action by City. 5.0 INSURANCE 5.1 Insurance. Prior to the beginning of any Services under this Agreement and throughout the duration of the term of this Agreement, Consultant 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. 6.0 INDEMNIFICATION. 6.1 Indemnification. To the fullest extent permitted by law, Consultant 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. 7.0 RECORDS AND REPORTS. 7.1 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning Consultant's performance of the Services required by this Agreement as the Contract Officer shall require. Consultant hereby acknowledges that City is greatly concerned about the cost of the Services to be performed pursuant to this Agreement. For this reason, Consultant agrees that if Consultant 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 Consultant is providing design services, the cost of the project being designed, Consultant shall promptly notify the Contract Officer of said fact, circumstance, technique, or event and the estimated increased or decreased cost related thereto and, if Consultant is providing design services, the estimated increased or decreased cost estimate for the project being designed. 7.2 Records. Consultant shall keep, and require any subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports Last revised April 2015 -7- 271 (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 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 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 Consultant's business, custody of the Books and Records may be given to City, and access shall be provided by Consultant'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 Consultant, 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 upon the expiration or termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the Documents and Materials hereunder. Any use, reuse or assignment of such completed Documents and Materials for other projects and/or use of uncompleted documents without specific written authorization by Consultant will be at City's sole risk and without liability to Consultant, and Consultant's guarantee and warranties shall not extend to such use, revise, or assignment. Consultant may retain copies of such Documents and Materials for its own use. Consultant 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 Consultant fails to secure such assignment, Consultant shall indemnify City for all damages resulting therefrom. Last revised April 2015 -8- 272 In the event City or any person, firm, or corporation authorized by City reuses said Documents and Materials without written verification or adaptation by Consultant for the specific purpose intended and causes to be made or makes any changes or alterations in said Documents and Materials, City hereby releases, discharges, and exonerates Consultant from liability resulting from said change. The provisions of this clause shall survive the termination or expiration of this Agreement and shall thereafter remain in full force and effect. 7.4 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. Consultant 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. Consultant represents and warrants that Consultant has the legal right to license any and all of the Documents and Materials. Consultant makes no such representation and warranty in regard to the Documents and Materials which were prepared by design professionals other than Consultant or provided to Consultant 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. 7.5 Release of Documents. The Documents and Materials shall not be released publicly without the prior written approval of the Contract Officer or as required by law. Consultant shall not disclose to any other entity or person any information regarding the activities of City, except as required by law or as authorized by City. 8.0 ENFORCEMENT OF AGREEMENT. 8.1 California Law. This Agreement shall be 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 Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 8.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period Last revised April 2015 -9- 273 as may be permitted by the Contract Officer; 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 Section 8.8. During the period of time that Consultant 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. 8.3 Retention of Funds. City may withhold from any monies payable to Consultant sufficient funds to compensate City for any losses, costs, liabilities, or damages it reasonably believes were suffered by City due to the default of Consultant in the performance of the Services required by this Agreement. 8.4 Waiver. No delay or omission in the exercise of any right or remedy of a non -defaulting party on any default shall impair such right or remedy or be construed as a waiver. City's consent or approval of any act by Consultant requiring City's consent or approval shall not be deemed to waive or render unnecessary City's consent to or approval of any subsequent act of Consultant. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 8.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 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 8.9 for termination for cause. City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days' written notice to Consultant. Upon receipt of any notice of termination, Consultant shall Last revised April 2015 -10- 274 immediately cease all Services hereunder except such as may be specifically approved by the Contract Officer. Consultant shall be entitled to compensation for all Services rendered prior to receipt of the notice of termination and for any Services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 8.3. 8.8 Termination for Default of Consultant. If termination is due to the failure of Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 8.2, take over the Services and prosecute the same to completion by contract or otherwise, and Consultant shall be liable to the extent that the total cost for completion of the Services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Consultant for the purpose of setoff or partial payment of the amounts owed City as previously stated in Section 8.3. 8.9 Attorneys' Fees. If either party 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. 9.0 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 Consultant, or any successor in interest, in the event or any default or breach by City or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement. 9.2 Conflict of Interest. Consultant 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 Last revised April 2015 -11- 275 hinder Consultant's performance of the Services under this Agreement. Consultant 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. Consultant agrees to at all times avoid conflicts of interest or the 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. Consultant 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. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of 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. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry. 10.0 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: Frank Spevacek, City Manager 78-495 Calle Tampico La Quinta, California 92253 To Consultant: NAI CONSULTING, INC. Attention: Lloyd Nickerson, Jr. President 68-955 Adelina Road Cathedral City, CA 92234 Last revised April 2015 -12- 276 10.2Interpretation. 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 Consultant 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, Consultant 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 Consultant without further acknowledgment of the parties. Last revised April 2015 -13- 277 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] Last revised April 2015 -14- 278 IN WITNESS WHEREOF, the parties have executed this /\graannant as of the dates stated below. CITY OFLADU|NTA, a California municipal corporation FR/\NKJ. SPE\//\CEK, City Manager Dated: ATTEST: SUSANMAYSELS,City Clerk, La {luinta, California APPROVED AGTOFORM: VV|LL|A[N H. |HRKE, City Attorney City OfLa [1uint8, California CONSULTANT: jo.", 6'yau By: Name: t0y;1-0-S@ 69ehl Title: Two signatures are required if Consultant is a corporation. NOTE: CONSULTANT'S SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TOCONSULTANT'S BUSINESS ENTITY. Last revised April 2015 -15- 279 MR Exhibit A Scope of Services As directed by City Staff, the consultant's services shall include, but are not limited to the performance of the following assignments, duties and tasks: • Prepare and submit necessary documents, and coordinate with various regional, county, state and federal funding agencies to acquire and maintain funding approval. • Prepare and track project schedules. • Prepare correspondence, reports, and memorandums necessary to administer various City capital improvement projects. • Assist with bidding procedures, prepare bid summary comparisons in a table format, and make recommendations for City Council consideration to award Public Works contracts for construction. • Prepare and conduct informal request for proposals to construction support sub - consultants, summarize proposals received and make recommendations for award of Professional Services Agreements. • Monitor and report on project status, budget vs. actual expenditures, and contract time vs. actual time. • Prepare staff reports for City Council consideration, as necessary. Other work objectives may include: • Preparation and/or management of the City's Development Impact Fee Update. • Continued assistance with issues associated with the Coachella Valley Transportation Uniform Mitigation Fee (TUMF) Program. • Continued assistance with the Measure A %2 Cent Sales Tax Capital Improvement Plan and Maintenance of Effort requirements. • Provide design services for minor Capital Improvement Projects. • Other duties as assigned by the Public Works Director/City Engineer Last revised April 2015 EXHIBIT A Page 1 of 1 281 Exhibit B Schedule of Compensation With the exception of compensation for Additional Services, provided for in Section 2.2 of this Agreement, the maximum total compensation to be paid to Consultant under this Agreement is Four Hundred Eighty -Seven Thousand, Four Hundred Fifty - Five Dollars ($487,455.00) ("Contract Sum"). The Contract Sum shall be paid to Consultant in installment payments made on a monthly basis and in an amount identified in Consultants Schedule of Compensation attached hereto for the work tasks performed and properly invoiced by Consultant in conformance with Section 2.2 of the Agreement. Project Manager Professional Civil Engineer Design Engineer CAD Draftsman Project Technician Secretarial Support $145.00 per hour $145.00 per hour $1 10.00 per hour $85.00 per hour $85.00 per hour $65.00 per hour Any reimbursable expenses shall be provided at cost, without mark-up or additional overhead. Last revised April 2015 EXHIBIT B Page 1 of 1 P& Exhibit C Schedule of Performance Consultant shall complete all services within the TIME LINE ALLOWED BY THE TOTAL CONTRACT SUM. Last revised April 2015 EXHIBIT C Page 1 of 1 283 Exhibit D Special Requirements Projects covered by this Agreement may be partially funded by various Program funds administered through the California Department of Transportation (Caltrans). As such, the Consultant shall comply with the requirements of 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31 et seq.; 49 CFR, Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments, and Caltrans Local Procedures Manual Processing Procedures for Implementing Federal and/or State Funded Local Public Transportation Projects. Debarment And Suspension Certification. TITLE 49, CODE OF FEDERAL REGULATIONS, PART 29 The Consultant's signature affixed to this Agreement shall constitute a certification, under penalty of perjury, that, except as noted below, he/she or any other person associated therewith in the capacity of owner, partner, director, officer, and manager: • Is not currently under suspension, debarment, voluntary exclusion, or determination of ineligibility by any federal agency; • Has not been suspended, debarred, voluntarily excluded or determined ineligible by any federal agency within the past 3 years; • Does not have a proposed debarment pending; and • Has not been indicted, convicted, or had a civil judgment rendered against it by a court of competent jurisdiction in any matter involving fraud or official misconduct within the past 3 years. If there are any exceptions to this certification, insert the exceptions in the following space. NnnP_ Exceptions will not necessarily result in denial of award, but will be considered in determining bidder responsibility. For any exception noted above, indicate below to whom it applies, initiating agency, and dates of action. Notes: Providing false information may result in criminal prosecution or administrative sanctions. The above certification is part of the Agreement. Signing this Agreement on the signature portion thereof shall also constitute signature of this Certification. Last revised April 2015 EXHIBIT D Page 1 of 1 284 1. Rebates, Kickbacks Or Other Unlawful Consideration. The CONSULTANT warrants that this contract was not obtained or secured through rebates kickbacks or other unlawful consideration, either promised or paid to any LOCAL AGENCY employee. For breach or violation of this warranty, LOCAL AGENCY shall have the right in its discretion; to terminate the contract without liability; to pay only for the value of the work actually performed; or to deduct from the contract price; or otherwise recover the full amount of such rebate, kickback or other unlawful consideration. 2. Prohibition Of Exoendinq Local Agencv State Or Federal Funds For Lobbvin A. The CONSULTANT certifies to the best of his or her knowledge and belief that: 1) No state, federal or local agency appropriated funds have been paid, or will be paid by -or -on behalf of the CONSULTANT to any person for influencing or attempting to influence an officer or employee of any state or federal agency; a Member of the State Legislature or United States Congress; an officer or employee of the Legislature or Congress; or any employee of a Member of the Legislature or Congress, in connection with the awarding of any state or federal contract; the making of any state or federal grant; the making of any state or federal loan; the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any state or federal contract, grant, loan, or cooperative agreement. 2) If any funds other than federal appropriated funds have been paid, or will be paid to any person for influencing or attempting to influence an officer or employee of any federal agency; a Member of Congress; an officer or employee of Congress, or an employee of a Member of Congress; in connection with this federal contract, grant, loan, or cooperative agreement; the CONSULTANT shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. B. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, US. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. EXHIBIT D Page 2 of 7 285 C. The CONSULTANT also agrees by signing this document that he or she shall require that the language of this certification be included in all lower -tier subcontracts, which exceed $100,000, and that all such sub recipients shall certify and disclose accordingly. 3. Certifications. Caltrans LAPM Exhibits 10-F Certification of Consultant and 10-G Certification of Local Agency, are attached and a part of this Agreement. 4. Cost Principles. A. NAI agrees that the Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31 .000 et seq., shall be used to determine the allowability of cost individual items. B. The NAI also agrees to comply with federal procedures in accordance with 49 CFR, Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments. C. Any costs for which payment has been made to DESIGN PROFESSIONAL that are determined by subsequent audit to be unallowable under 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31.000 et seq., are subject to repayment by NAI to the City. 5. Retention of Records/Audit. For the purpose of determining compliance with Public Contract Code 101 15, et seq. and Title 21, California Code of Regulations, Chapter 21, Section 2500 et seq., when applicable and other matters connected with the performance of the contract pursuant to Government Code 8546.7; the CONSULTANT, subcontractors, and the City shall maintain all books, documents, papers, accounting records, and other evidence pertaining to the performance of the contract, including but not limited to, the costs of administering the contract. All parties shall make such materials available at their respective offices at all reasonable times during the contract period and for three years from the date of final payment under the contract. The state, the State Auditor, City, FHWA, or any duly authorized representative of the federal government shall have access to any books, records, and documents of the CONSULTANT that are pertinent to the contract for audit, examinations, excerpts, and transactions, and copies thereof shall be furnished if requested. Subcontracts in excess of $25,000 shall contain this provision. EXHIBIT D Page 3 of 7 286 Community Development Block Grant (CDBG) Project Regulations CDBG funded work under this Professional Services Agreement is subject to all applicable Federal, State, and local laws and regulations, including but not limited to the regulations pertaining to the Community Development Block Grant program (24 CFR and Part 570), Executive Order #1 1246,and other applicable requirements. 1. Access to Records and Records Retention: The Consultant and any sub -consultants shall allow all duly authorized County, Federal, or State officials or authorized representatives access to the work area, as well as all books, documents, materials, papers, and records of the Consultant and any Sub -consultants that are directly pertinent to a specific program for the purpose of making audits, examinations, excerpts, and transcriptions. The Consultant and any sub -consultants further agree to maintain and keep such books, documents, materials, papers, and records, on a current basis, recording all transactions pertaining to this agreement in a form in accordance with generally acceptable accounting principles. All such books and records shall be retained for such periods of time as required by law, provided, however, notwithstanding any shorter periods of retention, all books, records, and supporting detail shall be retained for a period of at least four (4) years after the expiration of the term of this Agreement. 2. Federal Employee Benefit Clause: No member of or delegate to the congress of the United States, and no Resident Commissioner shall be admitted to any share or part of this agreement or to any benefit to arise from the same. 3. Equal Opportunity The Consultant will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. Consultant will ensure that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin. The Consultant will take affirmative action to ensure that applicants are employed and the employees are treated during employment, without regard to their race color, religion, sex, or national origin. Such actions shall include, but are not limited to, the following: employment, up -grading, demotion, or transfer; recruitment or recruitment advertising; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Consultant agrees to post in a conspicuous place, EXHIBIT D Page 4 of 7 287 available to employees and applicants for employment, notices to be provided by HUD setting forth the provisions of this non -discriminating clause. 4. Section 3 of the Housing and Community Development Act of 1968 Economic Opportunities for Section 3 Residents and Section 3 Business Concerns Sec. 135.38 Section 3 clause. All Section 3 covered contracts shall include the following clause (referred to as the Section 3 Clause): A. The work to be performed under this contract is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701 u (Section 3). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD -assisted projects covered by Section 3, shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing. B. The parties to this contract agree to comply with HUD's regulations in 24 CFR part 135, which implement Section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the part 135 regulations. C. The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers' representative of the contractor's commitments under this Section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin. D. The contractor agrees to include this Section 3 clause in every subcontract subject to compliance with regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract EXHIBIT D Page 5 of 7 288 or in this Section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR part 135. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR part 135. E. The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent the contractor's obligations under 24 CFR part 135. F. The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent the contractor's obligations under 24 CFR part 135. G. Noncompliance with HUD's regulations in 24 CFR part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts. H. With respect to work performed in connection with Section 3 covered Indian housing assistance, Section 7(b) of the Indian Self -Determination and Education Assistance Act (25 U.S.C. 450e) also applies to the work to be performed under this contract. Section 7(b) requires that to the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian -owned Economic Enterprises. Parties to this contract that are subject to the provisions of Section 3 and Section 7(b) agree to comply with Section 3 to the maximum extent feasible, but not in derogation of compliance with Section 7(b). 5. Certifications and Reporting Contractor agrees to complete and submit the following reporting forms at the initiation of project activities: A. Exhibit 113-5/113-6: BIDDER CERTIFICATION FOR AFFIRMATIVE ACTION EXHIBIT D Page 6 of 7 MR' Exhibit B-8: QUESTIONNAIRE REGARDING BIDDER Exhibit PA-5: SECTION 3 SUMMARY REPORT EXHIBIT D Page 7 of 7 `wit 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) $1,000,000 (per occurrence) $2,000,000 (general aggregate) Commercial Auto Liability (at least as broad as ISO CA 0001) $1,000,000 (per accident) Errors and Omissions Liability $1,000,000 (per claim and aggregate) Workers' Compensation (per statutory requirements) Consultant shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, Commercial General Liability insurance against all claims for injuries against persons or damages to property resulting from Consultant's acts or omissions rising out of or related to Consultant's performance under this Agreement. The insurance policy shall contain a severability of interest clause providing that the coverage shall be primary for losses arising out of Consultant's performance hereunder and neither City nor its insurers shall be required to contribute to any such loss. A certificate evidencing the foregoing and naming City and its officers and employees as additional insured (on the Commercial General Liability policy only) shall be delivered to and approved by City prior to commencement of the services hereunder. Consultant shall carry automobile liability insurance of $1,000,000 per accident against all claims for injuries against persons or damages to property arising out of the use of any automobile by Consultant, its officers, any person directly or indirectly employed by Consultant, any subcontractor or agent, or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Consultant's performance under this Agreement. If Consultant or Consultant's employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability coverage for each such person. The term "automobile" includes, but is not limited to, a land motor vehicle, trailer or semi -trailer designed for travel on public roads. The automobile insurance policy shall contain a severability of interest clause providing that coverage shall be Last revised April 2015 EXHIBIT E Page 1 of 6 291 primary for losses arising out of Consultant's performance hereunder and neither City nor its insurers shall be required to contribute to such loss. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the consultant and "Covered Professional Services" as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must "pay on behalf of" the insured and must include a provision establishing the insurer's duty to defend. The policy retroactive date shall be on or before the effective date of this agreement. Consultant shall carry Workers' Compensation Insurance in accordance with State Worker's Compensation laws with employer's liability limits no less than $1,000,000 per accident or disease. Consultant 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, Consultant 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 Consultant'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 Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option: a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. b. Order Consultant to stop work under this Agreement and/or withhold any payment(s) which become due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof. C. Terminate this Agreement. Exercise of any of the above remedies, however, is an alternative to any other remedies City may have. The above remedies are not the exclusive remedies for Consultant's failure to maintain or secure appropriate policies or endorsements. Nothing herein contained shall be construed as limiting in any way the extent to which Consultant may be held responsible for payments of damages to persons or Last revised April 2015 EXHIBIT E Page 2 of 6 292 property resulting from Consultant's or its subcontractors' performance of work under this Agreement. E.3 General Conditions Pertaining to Provisions of Insurance Coverage by Consultant. Consultant and City agree to the following with respect to insurance provided by Consultant: 1 . Consultant agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials, employees, and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Consultant also agrees to require all contractors, and subcontractors to do likewise. 2. No liability insurance coverage provided to comply with this Agreement shall prohibit Consultant, or Consultant's employees, or agents, from waiving the right of subrogation prior to a loss. Consultant agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise. 3. All insurance coverage and limits provided by Consultant and available or applicable to this Agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to City or its operations limits the application of such insurance coverage. 4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 5. No liability policy shall contain any provision or definition that would serve to eliminate so-called "third party action over" claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor. 6. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Consultant shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City's protection without City's prior written consent. 7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Consultant's general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is Last revised April 2015 EXHIBIT E Page 3 of 6 293 canceled at any time and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Consultant or deducted from sums due Consultant, at City option. 8. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Consultant or any subcontractor, is intended to apply first and on a primary, non-contributing basis in relation to any other insurance or self-insurance available to City. 9. Consultant agrees to ensure that subcontractors, and any other party involved with the project that is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review. 10. Consultant agrees not to self -insure or to use any self -insured retentions or deductibles on any portion of the insurance required herein (with the exception of professional liability coverage, if required) and further agrees that it will not allow any contractor, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self -insure its obligations to City. If Consultant's existing coverage includes a deductible or self -insured retention, the deductible or self -insured retention must be declared to the City. At that time the City shall review options with the Consultant, which may include reduction or elimination of the deductible or self -insured retention, substitution of other coverage, or other solutions. 11. The City reserves the right at any time during the term of this Agreement to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City will negotiate additional compensation proportional to the increased benefit to City. 12. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. Last revised April 2015 EXHIBIT E Page 4 of 6 294 13. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non-compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard. 14. Consultant will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether or not the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect. 15. Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Consultant's insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to City within five (5) days of the expiration of coverages. 16. The provisions of any workers' compensation or similar act will not limit the obligations of Consultant under this agreement. Consultant expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials, and agents. 17. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive. 18. These insurance requirements are intended to be separate and distinct from any other provision in this Agreement and are intended by the parties here to be interpreted as such. 19. The requirements in this 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. Consultant agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Consultant for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not Last revised April 2015 EXHIBIT E Page 5 of 6 295 the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto. 21. Consultant agrees to provide immediate notice to City of any claim or loss against Consultant arising out of the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. Last revised April 2015 EXHIBIT E Page 6 of 6 PU Exhibit F Indemnification F.1 General Indemnification Provision. a. Indemnification for Professional Liability. When the law establishes a professional standard of care for Consultant's Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend (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 Consultant 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 cause in whole or in part by any negligent or wrongful act, error or omission of Consultant, its officers, agents, employees or subcontractors (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Consultant shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A without the written consent of the Consultant. b. Indemnification for Other Than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, defend (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 Consultant or by any individual or entity for which Consultant is legally liable, including but not limited to officers, agents, employees, or subcontractors of Consultant. F.2 Standard Indemnification Provisions. Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth herein this section from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. In the event Consultant fails to obtain such indemnity obligations from Last revised April 2015 EXHIBIT F Page 1 of 2 297 others as required herein, Consultant 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 herein is binding on the successors, assigns or heirs of Consultant and shall survive the termination of this agreement or this section. a. Indemnity Provisions for Contracts Related to Construction. Without affecting the rights of City under any provision of this agreement, Consultant shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City's active negligence accounts for only a percentage of the liability involved, the obligation of Consultant will be for that entire portion or percentage of liability not attributable to the active negligence of City. b. Indemnification Provision for Design Professionals. 1. Applicability of Section F.2(b). Notwithstanding Section F.2(a) hereinabove, the following indemnification provision shall apply to Consultants who constitute "design professionals" as the term is defined in paragraph 3 below. 2. Scope of Indemnification. To the fullest extent permitted by law, Consultant shall indemnify, defend (with counsel selected by City), and hold harmless the Indemnified Parties from and against any and all claims, losses, liabilities of every kind, nature and description, damages, injury (including, without limitation, injury to or death of an employee of Consultant or of any subcontractor), costs and expenses of any kind, whether actual, alleged or threatened, including, without limitation, court costs, attorneys' fees, litigation expenses, and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation, that arise out of, pertain to, or relate to, directly or indirectly, in whole or in part, the negligence, recklessness, or willful misconduct of Consultant, any subcontractor, anyone directly or indirectly employed by them or anyone that they control. 3. Design Professional Defined. As used in this Section F.2(b), the term "design professional" shall be limited to licensed architects, registered professional engineers, licensed professional land surveyors and landscape architects, all as defined under current law, and as may be amended from time to time by Civil Code § 2782.8. Last revised April 2015 EXHIBIT F Page 2 of 2 298 �a C OF CITY / SAS HAS FA MEETING DATE: June 2, 2015 AGENDA CATEGORY: ITEM TITLE: APPROVE MEMORANDUM OF BUSINESS SESSION: UNDERSTANDING WITH EAST VALLEY COALITION FOR REGIONAL ECONOMIC DEVELOPMENT AND FIRST YEAR CONSENT CALENDAR: 14 BUDGET STUDY SESSION: PUBLIC HEARING: RECOMMENDED ACTION: Approve Memorandum of Understanding with East Valley Coalition for regional economic development and first year budget. EXECUTIVE SUMMARY: • On February 28, 2014, the City was invited by the City of Indio and County of Riverside to explore an eastern Coachella Valley economic development partnership opportunity. • Representatives from the Cities of Coachella, Indio, La Quinta and County of Riverside discussed forming a formal partnership to conduct regional economic development activities on January 8, 2015. • Staff developed a matrix (Attachment 1) defining measurable outcomes and collaboratively worked with eastern Coachella Valley communities to develop a formal agreement. • On April 30, 2015, representatives from the Cities of Indio, La Quinta and the County of Riverside verbally affirmed willingness to advance the Memorandum of Understanding ("MOU") (Attachment 2) to the elected body of each agency. FISCAL IMPACT: The MOU with the East Valley Coalition is a $20,000 investment over a two-year period, with the initial payment of $10,000 due July 1, 2015. BACKGROUND/ANALYSIS: On February 28, 2014, the City of Indio and County of Riverside sent a letter inviting the City to explore an eastern Coachella Valley economic development partnership opportunity that stemmed from the dissolution of the California Enterprise Zone Program. Throughout the year, representatives of the involved agencies continued to meet and discuss regional collaboration of economic development. These discussions included the Coachella Valley Economic Partnership (CVEP). A proposal for regional economic development was presented by the County of Riverside for a formal partnership for the eastern Coachella Valley in January 2015. During the presentation, the Cities of Coachella, Indio, La Quinta, and County of Riverside were present. Staff developed a matrix defining proposed budget contributions, associated activities (that would lead to accomplishing defined outcomes), and measurable outcomes. The matrix has been well received by the agencies as it will provide increased accountability and defined outcomes for the involved parties. An MOU was developed to formalize the proposed partnership with an initial two-year term with funding requests for $10,000 per entity per year. Additionally, the County of Riverside will devote staffing resources (Economic Development Regional Manager) and develop a basic website for the Coalition. Provisions within the MOU include a program evaluation and a report to each community's governing board describing accomplishments and funding recommendations for the second year. There are no binding provisions to provide funding for the second year of the agreement, should the City choose to not continue participation. The County of Riverside and the City of Indio will consider the item on June 2, 2015. No other entities are party to this agreement. ALTERNATIVES: To date, the Council has expressed a desire to participate in regional economic development. An alternative would entail modifying the MOU terms or not electing to participate. Report prepared by: Ted Shove, Business Analyst Report approved for submission by: Frank J. Spevacek, City Manager Attachments: 1. Annual Goals and Budget Resources Matrix 2. 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RF,C 1TAVC% WHEREAS, the PARTIES have determined that there exists a need to stimulate economic development growth in areas within the boundaries of the PARTIES; WHEREAS, the PARTIES have determined that there exists a desire to jointly manage, coordinate, market and administer economic development programs and projects in the eastern Coachella Valley; WHEREAS, the PARTIES desire to enter into an MOU as hereinafter set forth for matters concerning the conduct of economic development activities; and WHEREAS, the PARTIES have the common power to undertake economic development activities and the power to enter into this agreement. NOW THEREFORE, for and in consideration of the mutual covenants, conditions and advantages herein stated, the PARTIES hereto agree as follows: SECTION I PURPOSE AND GOALS 1.1 In undertaking the economic development activities set forth in this MOU, the PARTIES agree to jointly conduct such activities under the moniker of the "East Valley Coalition," hereinafter referred to as the "EVC." 1.2 The purpose of this MOU is to formalize the partnership and understanding between the PARTIES and set forth the terms by which the PARTIES will manage, coordinate, market, and administer economic development activities, programs and projects in the eastern portion of the Coachella Valley within the boundaries of PARTIES. The PARTIES agree that the purpose for conducting the activities as a coordinated group (i.e. EVC) shall include, but are not limited to the following: a. Implementing a regional marketing program for areas that comprise the EVC; b. Acting as a resource and business center to aid start-up and business expansion efforts, provide financial assistance information, job creation efforts, and other economic development incentives; c. Assisting coordination and targeting of available federal, state and local funds and development programs; d. Assisting development of computerized economic information systems, establishing and/or utilizing data bases necessary for economic growth; and 1 305 e. Performing such other functions as may be deemed necessary and appropriate to meet the objectives of this MOU. 1.3 The goals of the EVC were developed by the PARTIES and are outlined and specified in Exhibit A, GOALS AND MEASURED OUTCOMES, attached hereto and incorporated herein by this reference. The PARTIES agree to use best efforts in accomplishing such goals. SECTION II PARTY OBLIGATIONS In conducting the economic development activities set forth in this MOU, the PARTIES individually agree to perform the following tasks or undertaking: 2.1 The County of Riverside will: a. Create and maintain a basic web site for the EVC with links to the jurisdictions; b. Provide a lead staff member to coordinate all activities of the EVC; c. Provide financial support as determined in Section 5.2 below; and d. Assist in the development of economic development strategies for the EVC. 2.2 The City of Indio will: a. Serve as fiscal agent for the EVC, producing financial reports and statements; b. Provide a staff member to assist County in coordinating activities of the EVC; c. Provide financial support as determined in Section 5.2 below; and d. Assist in the development of economic development strategies for the EVC. 2.3 The City of La Quinta will: a. Provide a staff member to assist County in coordinating activities of EVC; b. Provide financial support as determined in Section 5.2 below; and c. Assist in the development of economic development strategies for the EVC. SECTION III EFFECTIVE DATE AND TERM 3.1 This MOU shall become effective as of the date on which the last Party executes this MOU ("Effective Date"). 3.2 The Term of the MOU will commence on the Effective Date and continue for two (2) years, unless terminated earlier by the Parties as provided in Section 7.4 below, and will automatically terminate unless otherwise extended by a written amendment to this MOU executed by all of the Parties. SECTION IV 2 306 ASSOCIATE PARTNERS 4.1 The PARTIES, may engage other public agencies as partners ("Associate Partners")for the undertaking of the economic development activities described herein. Public agencies desiring to become an Associate Partner shall submit a minute order from their governing body for consideration to each of the PARTIES for their individual approval. Unanimous approval by all PARTIES will be required to grant Associate Partner status, evidenced by a minute order from each of the PARTIES. Once approved by all the PARTIES and upon payment of the partner contribution (in an amount determined collectively by the PARTIES), the Associated Partner status shall be approved. A partner shall be entitled to participate in the programs created by the partnership created herein but is not a party to the MOU. SECTION V FINANCING AND BUDGETING 5.1 It is the intent and understanding of the PARTIES to this MOU that the activities conducted pursuant to this MOU will be financed by mandatory contributions from the PARTIES. 5.2 Each PARTY shall contribute a mandatory contribution of Ten Thousand Dollars ($10,000.00) per fiscal year ("Mandatory Contribution"). The Mandatory Contribution shall be used only for administrative and other matters of general benefit to all PARTIES that further the purposes of the MOU and for the activities described in this MOU. The use of the Mandatory Contribution for each fiscal year shall be as set forth in the general administrative budget for the respective fiscal year which general administrative budget is subject to approval by each Party pursuant to Section 5.4 below. 5.3 Payments shall be made yearly on July lst. Payments shall be made payable to and remitted to the PARTY that is the fiscal agent identified in Section 6.1 below. 5.4 A general administrative budget shall be approved by the City Managers in the case of the cities of Indio and La Quinta, and the Assistant County Executive Officer/EDA, or designee, in the case of the County of Riverside. The budget shall be prepared in sufficient detail to constitute an operating outline for the use of the Mandatory Contributions and shall cover expenditures to be made during the ensuing year for the purposes set forth in Section 5.2. SECTION VI ACCOUNTING 6.1 The City of Indio is designated as the fiscal agent. The City of Indio shall account separately for all funds collected or disbursed pursuant to this MOU. The City of Indio shall maintain and keep records of all expenditures and obligations incurred pursuant to 3 307 this MOU and all income and fees received thereby according to generally recognized accounting principles. Such records shall be maintained by the City of Indio for a minimum of three (3) years. The records relating to this MOU shall be open to inspection and audit by the Parties or its authorized representative on an annual basis or as is deemed necessary by the Parties upon reasonable notice to the City of Indio. 6.2 The City of Indio shall provide the Parties monthly expenditure reports by the last day of the following month, as well as a copy of a full annual financial statement for the partnership activities immediately upon completion thereof, but in no case later than six (6) months following the end of the fiscal year. The monthly expenditure reports and annual financial statements shall contain a status report of all appropriations and expenditures by line item, any emergency expenditure, appropriation changes (increases or decreases or new/supplemental appropriations after original budget was approved) and remaining unspent balances including encumbered amounts by purpose. SECTION VII GENERAL PROVISIONS 7.1 Indemnification. Each of the PARTIES agree to defend, indemnify and hold harmless each and every other PARTY and its officers, officials, board of supervisors, city council, employees or agents from and against any damages including, but not limited to, attorneys' fees, expert and consultant fees, and other costs and fees of litigation, arising out of the alleged gross negligence, intentional or willful misconduct of the PARTY, its agents, officers, officials, board of supervisors, city council, employees or representatives in the performance of this MOU. It is the intent of the PARTIES that where negligence or responsibility for injury or damages is determined to have been shared, principles of comparative negligence will be followed and each PARTY shall bear the proportionate cost of any loss, damage, expense and liability attributable to that PARTY' S negligence. In the event a claim or suit is filed and liability is based on the active conduct of two or more of the PARTIES, then such parties shall cooperate and contribute to the defense and indemnity of the claim or suit on an equal basis until such time as comparative negligence is established and damages apportioned. At that time, the responsible PARTIES shall reimburse the other PARTIES for their costs in accordance with their proportionate share of liability. The Parties shall promptly notify each other of any claims or demands which arise and for which indemnification is sought. The terms of this Section shall survive the termination of this MOU. The PARTIES each hereby certify that they have adequate insurance, self -insured retentions or other self-insurance programs sufficient to meet any obligation arising under this Section 7.1 7.2 Notices. Any notices, bills, invoices, or reports relating to this MOU, and any request, demand, statement or other communication required or permitted hereunder shall be in writing to the addresses set forth below and shall be deemed to have been received on (a) the day of delivery, if delivered by hand during regular business hours or by confirmed 4 308 facsimile during regular business hours; or (b) on the third business day following deposit in the United States mail, postage prepaid: City of Indio 100 Civic Center Mall Indio, CA 92201 Attention; City of La Quinta 78495 Calle Tampico La Quinta, CA 92253 Attention: County of Riverside Economic Development Agency 3403 10th Street Suite 400 Riverside, CA 92501 Attention: Assistant County Executive Officer/EDA 7.3 Alternative Dispute. The Parties agree that before either party commences any legal or equitable action, action for declaratory relief, suit, proceeding, or arbitration that the Parties shall first submit the dispute to mediation through a mutually acceptable professional mediator in Riverside County. Each party shall bear its own expenses and costs associated with the mediation. The cost of mediator shall be shared equally by the Parties. 7.4 Termination. Either Party may terminate its participation in this MOU for any reason by giving thirty (30) days advance written notice to the designated representatives of the other Parties. In the event a Party terminates its participation in this MOU during the first year of the term of this MOU, such Party shall not be entitled to the return of the Mandatory Contribution paid pursuant to Section 5.2. In the event a party terminates its participation in this MOU during the second year of the term of this MOU, such Party shall be entitled to a complete reimbursement of the Mandatory Contribution paid pursuant to Section 5.2, provided the other Parties receive written notice of such termination no later than 90 days before the commencement of the second year of the term of this MOU. If the Parties have not incurred any obligations in connection with implementing this MOU, each Party may terminate this MOU by giving no less than sixty (60) days advance written notice thereof to all other Parties. In the event this MOU is terminated, any property acquired by the Parties in connection with this MOU from the Effective Date of this MOU, including but not limited to money, shall be divided and distributed between the Parties in proportion to the contributions made. 5 309 Except as otherwise provided herein, upon termination of this MOU, or an individual Parties termination of participation in this MOU, neither Party shall have any obligation to the other Parties. 7.5 Legal Authority. Nothing in this MOU binds the Parties to perform any action that is beyond its legal authority. 7.6 Conflict of Interest. No member, official or employee of the County or the Cities, shall have any personal interest, direct or indirect, in this MOU nor shall any such member, official or employee participate in any decision relating to this MOU which affects his or her personal interest or the interests of any corporation, partnership or association in which he or she is directly or indirectly interested. 7.7 Interpretation, Governing Law, and Venue. This MOU and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California. This MOU shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this MOU, all Parties having been represented by counsel in the negotiation and preparation hereof. Any legal action related to the performance or interpretation of this MOU shall be filed only in the Superior Court of the State of California located in Riverside, California, and the Parties waive any provision of law providing for a change of venue to another location. 7.8 No Third -Party Beneficiaries. This MOU is made and entered into for the sole protection and benefit of the Parties hereto and shall not create any rights in any third parties. No other person or entity shall have any right of action based upon the provisions of this MOU. 7.9 Section Headings. The Section headings herein are for the convenience of the Parties only and shall not be deemed to govern, limit, modify or in any manner affect the scope, meaning or intent of the provisions or language of this MOU. 7.10 Compliance with Laws and Regulations. By executing this MOU, the Parties agree to comply with all applicable federal, state and local laws, regulations and ordinances. 7.11 Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this MOU by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party's right to insist and demand strict compliance by the other party with the terms of this MOU thereafter. 7.12 Severability. Each paragraph and provision of this MOU is severable from each provision, and in the event any provision in this MOU is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way. 6 310 7.13 Authority to Execute. The persons executing this MOU or exhibits attached hereto on behalf of the Parties to this MOU hereby warrant and represent that they have the authority to execute this MOU and warrant and represent that they have the authority to bind the respective Parties to this MOU to the performance of its obligations hereunder. 7.14 Assignment. The parties shall not assign, transfer, or subcontract any interest in this MOU. Any attempt to so assign, transfer, or subcontract any rights, duties, or obligations arising hereunder shall be null, void and of no effect. 7.15 Amendments. This MOU may be amended, in writing, from time -to -time by unanimous vote of the PARTIES acting through their governing bodies. 7.16 Exhibits; Precedence. All documents referenced as exhibits in this MOU are hereby incorporated in this MOU. In the event of any material discrepancy between the express provisions of this MOU and the provisions of any document incorporated herein by reference, the provisions of the MOU shall prevail. 7.17 Independent Contractor. Each party to this MOU shall have no power to incur any debt, obligation, or liability on behalf of another party to this MOU or otherwise act as an agent of another party. 7.18 MOU Administration. The City Managers in the case of the cities of Indio and La Quinta, and the Assistant County Executive Officer/EDA, in the case of the County of Riverside, or their designees, shall administer the terms and conditions of this MOU for their respective city or county. 7.19 Cooperation; Further Act. The Parties shall cooperate fully with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this MOU. 7.20 Entire Agreement. This MOU, including all exhibits and attachments hereto, is intended by the Parties hereto as a final expression of their understanding with respect to the subject matter hereof and as a complete and exclusive statement of the terms and conditions thereof and supersedes any and all prior and contemporaneous agreements and understandings, oral or written, in connection therewith. Any amendments to or clarification of this MOU shall be in writing and acknowledged by all Parties to this MOU. (Signatures on Following Page) 7 311 IN WITNESS WHEREOF, the PARTIES hereto have caused this MOU to be executed by their duly authorized representatives on the dates set forth below. Date: ATTEST: Kecia Harper -them Clerk of the Board of Supervisors Deputy APPROVED AS TO FORM: Gregory P. Priamos County Counsel in Jhaila R. Brown COUNTY OF RIVERSIDE, a political subdivision of the State of California Marion Ashley, Chairman BOARD OF SUPERVISORS (Signatures Continued on Following Page) «K Date: ATTEST: Cynthia Hernandez, CMC City Clerk APPROVED AS TO FORM: Roxanne Diaz City Attorney CITY OF INDIO, a municipal corporation Mayor Lupe Ramos Watson (Signatures Continued on Following Page) I «K! Date: ATTEST: SUSAN MAYSELS, City Clerk City of La Quinta, California APPROVED AS TO FORM: WILLIAM H. IHRKE, City Attorney City of La Quinta, California CITY OF LA QUINTA, a California municipal corporation Linda Evans, Mayor City of La Quinta, CA 10 «El! EXHIBIT A GOALS AND MEASURED OUTCOMES (behind this page) ll 315 41l CIT / SA / HA / FA MEETING DATE: June 2, 2015 AGENDA CATEGORY: BUSINESS SESSION: 1 ITEM TITLE: INTERVIEWS AND APPOINTMENTS OF RESIDENTS TO VARIOUS CITY BOARDS AND CONSENT CALENDAR: COMMISSIONS STUDY SESSION: PUBLIC HEARING: RECOMMENDED ACTION: Make appointments to fill vacancies on boards and commissions, and set a three-year term of office for the alternate positions. EXECUTIVE SUMMARY: • During April and May, the City advertised for representatives to fill open positions on various City boards and commissions. Ten applications were received (Attachment 1). • The City Council will interview and appoint applicants to the vacancies, by ballot, after a random drawing to determine the order in which applicants will be interviewed (Attachment 2). • An alternate position for each board/commission was created by the City Council in January; however, a term of office was not set. Staff recommends setting a three-year term for the alternate positions. FISCAL IMPACT: The following Council -approved amounts (per member, per meeting attended) are included in the Fiscal Year 2015/16 Budget: Architectural & Landscaping Review Board $75 Community Services Commission $75 Investment Advisory Board $75 Planning Commission $100 The stipend paid to La Quinta's representative by the Coachella Valley Mosquito and Vector Control District per meeting attended is $100. «rh BACKGROUND/ANALYSIS: The Council has established boards/commissions to facilitate broader participation in City governance, to solicit a broad range of opinions on City issues, and to introduce citizens to the municipal government process. All existing board and commission members whose terms were expiring this year, as well as applicants from the last round of appointments who were not seated, were e- mailed an invitation to reapply. Recruitment is ongoing throughout the year and special efforts will be made to seek applicants for the Historic Preservation Commission (an insufficient number of applications were received). Applications were received from the following residents: ARCHITECTURAL & LANDSCAPING REVIEW BOARD (open: one alternate) James Crall COMMUNITY SERVICES COMMISSION (open: one alternate, one mid-term vacancy) Kathleen Boylan Doug Hassett Felice Chiapperini Doriel Wyler HISTORIC PRESERVATION COMMISSION (open: one alternate, one professional, one non-professional) Linda Williams (non-professional seat, incumbent) INVESTMENT ADVISORY BOARD (open: one alternate, one full term) George Batavick Mike Krmpotich PLANNING COMMISSION (open: one alternate) Javier Lopez Andrea Spirtos COACHELLA VALLEY MOSQUITO & VECTOR CONTROL BOARD (open: mid-term vacancy) Newly vacated - no applications Several changes to the board/commission chapters of the Municipal Code were adopted by Ordinance 516, which took effect in August 2013. Changes included standardizing all terms to three years; establishing term rotations; no preference consideration if applicants apply to multiple boards/commissions; random drawing determinations for order of interviews/appointments; and retention of Council authority to extend terms. In January 2015, Council addressed unscheduled vacancies with policy changes that allow for the appointment of numbered alternates and year-round recruitment. With this round of appointments, alternates will be appointed for the first time and a term of office needs to be established. Since appointments are made annually, the term for all alternates may be one year, or the term may match the three-year term set for all board/commission members. Staff recommends a three-year term to give alternates greater odds for stepping in to fill a mid-term vacancy. ALTERNATIVE: Council may choose to delay appointments to one or more positions, and may set the term of office at one year for all alternates. Report prepared by: Susan Maysels, City Clerk Report approved for submission by: Frank J. Spevacek, City Manager Attachments: 1. Applications 2. Ballots Taf 4 4 a" �a C OF CITY / SA / HA / FA MEETING DATE: June 2, 2015 AGENDA CATEGORY: BUSINESS SESSION: ITEM TITLE: MARKETING STRATEGIES FOR 2015/2016 CONSENT CALENDAR: STUDY SESSION: 1 PUBLIC HEARING: RECOMMENDED ACTION: Provide direction to staff regarding 2015/2016 Marketing Strategies. EXECUTIVE SUMMARY: • Each year the City Council reviews the marketing strategies for the upcoming fiscal year. • These strategies outline the methods the City will use to promote and strengthen community events, tourism, and economic development over the next fiscal year. • The strategies include a mix of print, media, and digital methods in local, community, and regional distribution. FISCAL IMPACT: The City's overall annual marketing investment is $1.22 million dollars. This amount includes the Marketing and Community Relations budget, SilverRock Resort's marketing budget, and marketing agreements with La Quinta Arts Foundation, La Quinta Chamber of Commerce, and Desert Classic Charities (CareerBuilder Classic). The fiscal impact to execute these marketing strategies is $250,000 and is accounted for in the Marketing and Community Relations budget for Fiscal Year 2015/2016. BACKGROUND/ANALYSIS: The marketing strategies for next year will focus on three main areas: 1) Regional (drive market and beyond), 2) Local (within the Coachella Valley), and 3) Community (within La Quinta). Digital metrics indicate that over 70 percent of PlayInLaQuinta.com users are ages 45 and over. Additionally, the regional markets of Los Angeles and San Diego make up 20 percent of all views on the tourism website and 15 percent of all Facebook "likes." These metrics indicate La Quinta's messaging is reaching a portion of the target markets; however, new strategies to target a younger demographic (while increasing emphasis in the Orange County and Inland Empire regional markets) should be considered. The strategies identified below will impact all three geographic markets, Regional, Local, and Community. These include: • Updated Creative ➢ The popularity of Point -of -view (POV) imagery has grown with the advent of the "GoPro" style video cameras. The new creative will feature POV image from around La Quinta (hiking, shopping, golfing, dining, etc) with "Experience La Quinta" messaging. • "Selfie" Spots ➢ Predetermined locations around La Quinta where "selfies" are encouraged and posted on social networks with a special hashtag to grow brand awareness in the Millennial and Gen X target markets. • Guide to La Quinta ➢ Produce a 12-16 page "Guide to La Quinta" that will promote activities, points of interest, dining and shopping locations, and other City information. • Locale Magazine ➢ A regional magazine designed for Millennial/Generation X'ers that will include the "Guide to La Quinta" as a pullout in Los Angeles, San Diego, and Orange County with special feature on their website (125,000 views per month). • Tourism Website Enhancements ➢ Vacation Rental Map ■ Develop an interactive map of "registered" vacation rentals in La Quinta. ■ Improved image and video galleries. Metrics indicate high brand awareness with people ages 45+ both locally and in the Los Angeles and San Diego regional markets. In order to maintain this level of brand awareness, the following marketing strategies are recommended for continuation. These include: • "Signature Event" Marketing Opportunities ➢ Continue to support local, large-scale events with sponsorships, event program ads, and other collateral and advertising opportunities. • Align with the Greater Palm Springs Convention and Visitors Bureau and their efforts to promote the Coachella Valley and La Quinta as a destination in the international and national markets. «A • Local Cooperative Marketing Program ➢ Provide cooperative marketing opportunities for local businesses to expand their market exposure. • Community and Local Messaging Campaign ➢ Continue a Valley -wide messaging campaign supporting La Quinta businesses and events to encourage shopping, dining, and event attendance. • Palm Springs Life Advertorial ➢ A four -page advertorial promoting economic development and tourism to both the local and regional markets. • The Gem ➢ Continue to produce the "City Pages" monthly and insert an Annual Report (formerly City Newsletter). • PlayInLaQuinta.com Website ➢ Continue to update the site with new content, photos, blogs, and other links that increase search engine optimization. • Social Media ➢ Continue to engage the users of social media using Facebook, Twitter, Instagram, and Pinterest. • Pay -Per -Click Programs ➢ Continue to drive traffic to the tourism website and social media engagement through Pay -Per -Click programs. • Travel Website Ads ➢ Continue to promote tourism and visitors by placing clickable ads on travel websites. • Public Relations and Event Partnerships ➢ EmpowerLaQuinta.com ■ A new community engagement website that encourages community members to post ideas and comments about City projects. 323 ➢ Continue to provide community outreach by attending community meetings and hosting a booth at the Farmers Market. ➢ Coordinate the brand refresh and develop an unveiling. ➢ Provide public relations for local City events, "Signature Events," City facilities and programs, and as needed for emergency services. ➢ Partner with local stakeholders and non -profits to provide promotional support for local events. Staff is seeking Council direction on the marketing strategies proposed for Fiscal Year 2015/2016. Professional Services Agreements with JNS Media and Graphtek Interactive will be brought before Council for implementation of these marketing strategies. Report prepared by: Tustin Larson, Marketing & Events Supervisor Report approved for submission by: Edie Hylton, Deputy City Manager Attachment: 1. Marketing Strategies 324 ATTACHMENT 1 201 IIII °°° r, k e t IIII IIII IIII IIII s II ire Goals The following proposed goals will guide the City's Marketing Plan for Fiscal Year 2015/2016: Continue to identify new mediums and programs that keep La Quints top -of -mind as local consumers make considerations regarding where to visit, live and do business. Continue to support and promote large-scale "Signature Events" in proximity to La Quints by providing information about retail shopping, restaurants, and hospitality complexes within city limits. " Continue to support the Greater Palm Springs Convention and Visitors Bureau (CVB) with their international and national marketing campaigns to promote the Coachella Valley as a premier tourist destination. " Align marketing efforts with the CVB to promote La Quints in the Regional markets to increase tourism and improve revenue generation. " Offer cooperative programs that support La Quints businesses and maximize their advertising budgets. " Continue digital advertising, increase interactive content on the tourism website, social media and travel resource ads to promote La Quints and encourage tourism, business, and event attendance. " Identify new methods of communication with residents and the media on important City news, events, and programs. " Coordinate with the Marketing Committee, including the Chamber of Commerce, La Quints Arts Foundation, Desert Classic Charities (CareerBuilder Challenge Golf Tournament), La Quints Resort, Old Town La Quinta, and SilverRock Resort to implement partnerships that maximize and leverage marketing budgets. Wli Metrics The City of La Quints has been collecting metrics over the last 12 months using Google Analytics and Facebook. These metrics provide data on the users of our PlayInLaQuinta.com website and the City's Facebook page. The data is used to understand how many people are interested in La Quinta, where they live, how old they are, what pages they visit on the site, and other variables. This information is invaluable when determining marketing strategies as it provides direction on advertising methods and ad placement. Below are the metrics from January 1, 2014 - May, 2015: Google Analytics for PlayInLaQuinta.com website: 175,000 total website views (up from 64,000 - 173% increase) o 137,000 unique visitors ■ Total views are counted each time the site is accessed. Unique views are counted only once. In other words, unique visitors are new visitors. 70% of viewers are ages 45+, with an equal amount of men and women. 23% of all views are from La Quints - residents or visitors from within La Quinta. Los Angeles and San Diego account for 20% of all website visits. Top viewed pages 1. Hiking (13%), 2. Event Calendar (7.5%), 3. Shopping (7%), 4. Golf (4%), 5. Hotels (4%). Facebook Insights: 44,600 total users "likes" (up from 23,000 - 94% increase) o "Likes" are Facebook users who subscribe to the City of La Quinta's page. " 1/2 of users are ages 45+, women make up 2/3 of users. " 4,000 "likes" from Coachella Valley. " Los Angeles and San Diego account for 15% of all "likes". " Averaging 400 new "likes" per day. o This is equivalent to 400 people per day subscribing to the City's page. These Facebook users are "opting -in" to learn more about the City of La Quinta. 2 326 i arget Marlkets Metrics indicate there is very high brand awareness (70%) with ages 45 and up. Additionally, the regional markets of Los Angeles and San Diego make up 20% of all views on the PlayInLaQuinta.com website and 15% of all Facebook "likes". Based on the metrics, it is recommended that the marketing campaigns be targeted to the following groups: " Millennials and Generation X. " Young affluent families. " Active adults who enjoy outdoor activities such as hiking, bicycling, and golf. " Adults with disposable income. " Affluent couples, empty -nesters & retirement prospects. " Geographic regions: Coachella Valley, Regional drive markets. (Los Angeles, San Diego, and greater emphasis on Inland Empire and Orange County) III r.int & Media Marketing strategies are directed to keep La Quints top -of -mind to both visitors and locals. City staff has focused on efforts that support tourism, local businesses, and continued community investment in La Quinta. Staff will continue working with JNS Media for the Print & Media strategies. Coirnini.�iniiity rnairlket oriiu:llhn n aIlhe Uy of Il. a QLfl1M,0 The Gene - Staff will continue production of the "City Scene" pages for The Gem (a monthly Chamber newspaper that is delivered to La Quinta residents and Chamber members). Promote programs, classes, special events, and important City news related to: SilverRock Resort, Museum, Library, Wellness Center, Community Services, Police, and special feature articles such as emergency preparedness, commission vacancies, and special messages from City partners. "Se i e" Spdu, s - Staff will develop a program with a combination of signage, and an online mapping tool to promote "selfie spots." These spots are predetermined locations where participants are encouraged to take photos of themselves "selfies" because of special environmental amenities. Each location will have a special "hashtag" (words that start with # that indicate a trend on social media networks) that will encourage participants to post with their photos on social media networks. GLflde uD Il. 0 QLfl1M,0 - As a new strategy, staff is recommending creating a 12-16 page "Guide to La Quinta" fulfillment piece. The guide will be designed by and featured in 3 327 Locate Magazine (see Regional Market) as a pullout in three regional markets, and additional overrun will be used as a standalone visitor's guide. The guide will be available in La Quints and other local market hotels and visitors centers around the Coachella Valley. The guide will contain information about the city, activities, events, points of interest, shopping and dining locations, hotels, and more. ocol rnairlket - within the Coachella Valley (includes La Quinta) a SS gIIOuIfl e Il:vei a " M" iork ,iun� � ou ,Uinou es - Continue support for large-scale local events in proximity to La Quinta. Events of this magnitude have national/international exposure and attendees often shop and stay in and around the City of La Quinta. Printed advertisements will appear in event programs, pairing sheets, and other event publications for the following events: o CareerBuilder Challenge Golf Tournament o Horse Shows in the Sun (HITS) o Eldorado Polo o Riverside County Date Festival o La Quints Arts Festival o BNP Paribas Open o Coachella Music Festival o Stagecoach Country Music Festival o Palm Springs Restaurant Week l ocol Cook erou: ve M" fork ,iunIfw'Iro roni - Continue to promote cooperative marketing by working with current partners, and by adding new partners to increase their community and local market exposure. (City being one of the partners) Some of these include: o La Quints Arts Festival Program Ad o BNP Paribas Open Daily Pairing Sheets o Palm Springs Restaurant Week Ads o Palm Springs International Airport Display l ocol iniessogfing cone oigns - Continue a Valley -wide messaging campaign that supports La Quints businesses and events to encourage shopping, dining, and special event attendance. The multi -tiered plan comprised of television and print will be leveraged with Public Relations, bonus advertising such as extra ads, etc. This effort will run in key months to support events and the "Experience La Quinta" message. Some of these include: 0 1/2 page ads in CV Weekly o Full page ads in Desert Health News 0 1/2 page ads in Greater Palm Springs Travel Host 0 1/2 page ads in Palm Springs Life magazine o Ads in the Desert Sun - two per month 0 60 live mentions per month on local radio stations - 90 live mentions during "Signature event" months o 200 airings per month of :30 television commercials on local channels 4 328 4w'l&ni Spi6ngs Il...H'e Adveiloi6ok Produce a City of La Quints advertorial featuring the progress of the City over the last calendar year. The advertorial will be featured in the Palm Springs Life October 2015 issue (the City's customary progress piece) - which will also be featured in the "Vision" collateral piece put together through a collaboration between Palm Springs Life, Coachella Valley Economic Partnership (CVEP), CVB, and the County of Riverside Economic Development Agency. Distribution is 32,000 in both the local and regional -drive markets with a digital version on their website. " GLflde uD Il. 0 QLfl1M,0 See Local market. °le iiioinal Mairrlket - Drive markets (Los Angeles, San Diego, Orange County, Inland Empire) Akgn orii lh CVf:3 Adveid:iis n - Continue to align with the CVB's advertising program in order to leverage the City's membership dollars and reach outside markets. Target areas include: Southern California (Los Angeles & San Diego), Northern California Bay Area, Pacific Northwest, Midwest, and Western Canada. The various campaigns involve print, radio, and online efforts to attract more visitors to the Coachella Valley as well as support and ultimately grow direct air service. " l ocolo M io ozJne: As a new strategy, staff is recommending creating a 12-16 page "Guide to La Quinta." The guide will be designed by and featured in Locale Magazine. Locale will run the guide in their three main Southern California markets of Los Angeles, San Diego, and Orange County as a pullout. The pullout will also be featured on the Locale website which received 125,000 views per month. The guide will contain infographics about the city, activities, events, places of interest, shopping and dining locations, hotels, and more. o Over 64% of Locale readers are ages 25-44. 0 240,000 distributed in three markets. o Over 30,000 social media fans, including 11,000+ Instagram followers. 0 125,000 website views per month. regionol niessoging cone oigns - Continue a regional messaging campaign that supports tourism to La Quinta. The plan includes advertisements on radio and television. This campaign will run in season to support opportunities for outdoor recreation, "signature events", and entice visitors with messaging support the viability of a driving destination. Some of these include: 0 60 live mentions per month on regional radio stations - 90 live mentions during "Signature event" months 0 200 airings per month of :30 television commercials on regional channels 5 329 Website & Social Media City staff will continue to work with Graphtek Interactive for digital marketing efforts and social media interaction. qncreosed giM,e od,Jve WeIl sHi ,e CoiM,&rM -The City's tourism website, PlayInLaQuinta.com, continues to grow in popularity with regular content updates, and increased interactive components. Last year added a vacation rental directory displaying only registered rental agencies and the creation of interactive bike and art maps. To maintain a high level of visitors to the website, increased interactive components will be added including: o An interactive map of available "registered" vacation rentals. The map will show locations of rental properties throughout the City of La Quinta where the user could select the property and complete the registration process through a 3rd party system. o Improved photo and video gallery " : nipowelIlOQLfl1M,o,coni - This is a new website designed for public engagement. This site creates a clearinghouse for the community to engage directly with the City staff. It works by establishing topics and asking for ideas. Community members then add ideas, upload photos, add comments, and support for ideas. Communities around the country are using this too[ to interact with their residents to prioritize projects, consider new projects, create awareness, and communicate directly with residents. " Sociol M i dio IC II gagenienu: - The City continues to improve its standing in the digital world using several social media networks. The most popular by for is the City's Facebook page. This network continues to grow and engage residents and visitors with images, news stories, and tourism content. The City of La Quinta's Twitter feed has also grown over the last year. Improved posts and engagement have increased followers from 5,000 to 9,500. Posts include tourism content, photos, news articles, and re -tweets from tourists, travel bloggers, business owners, and residents sharing vacation photos, business specials, complimentary tweets, etc. 6 330 The City's Pinterest account continues to grow with over 1,000 items of visual content across 37 different categories. Currently 1,200 people are following the account. Sociol M i dy o IC II gagenienu: - Pay -Per -Click (PPC) Programs: PPC's continue to be an effective too[ in driving traffic to the tourism website and social media networks. Advertisements are developed and targeted toward a specific audience. It is recommended to continue utilizing PPC programs for both the Local and Regional markets targeting hiking, biking, shopping, events, art, and golf. o Website Pay -Per -Click (PPC) Program: The Pay -Per -Click program allows the City to purchase sponsored links on the result pages of searches conducted via search engines such as Google / Yahoo / Bing. A link will pop up toward the top of the sponsored link section; attracting more unique visitors to the La Quints tourism website. When visitors click on the La Quints sponsored link, it takes them to PlayInLaQuinta.com where they explore activities, hotels, dining, shopping, and golf in La Quinta. PPCs can be extensively tracked and provide valuable metrics for a campaign's return on investment. o *Facebook Pay -Per -Like (PPL) Program: La Quints ads are purchased and designed to target users that are not already following the La Quints page. These ads appear under "sponsored ads" within the news feed; when a user clicks on the La Quints ad, it takes them straight to the La Quints Facebook page. 74% of new likes were due to PPL's. * TroveWebsHi ,e Ads -Staff will continue to work with Graphtek Interactive to buy ad spaces and design vibrant, dynamic ads. Each clickable advertisement is tracked and the images and messaging can be changed regularly based on real-time performance metrics to improve the return on investment. Metrics from last year indicated that ads with more active lifestyle images performed better than dining or golf. III�kjblic I l " i M s &III n IIItrtne III iIips * y u1Iu1ILJ1I uy Lfl:,r och - Continue efforts to reach out to community groups, homeowners association and service clubs to listen to issues and provide city updates. Staff will speak about new programs and facilities that are planned along with a city financial update. The City Staff will also be at the Farmer's Market once a month to answer questions and distribute city information. * 4,'Ubl iC Ifreou Jons - The public relations will be continued over the next fiscal year through a coordinated effort of press releases, websites, and social media that results in an increase of coverage for all City events and programs. 7 331 o Local - Publicity efforts will focus on all City events that are pertinent to local businesses, residents, and tourists through online calendar listings, email blasts, social media updates, and major press releases when deemed appropriate. Emphasis will be placed on Museum, Library, and City events and programs. Additional public relations support will be provided for any issues the City is dealing with outside the parameters of these events, on an as needed basis. o Regional - Promote amenities surrounding "Signature Events" (golf, shopping, dining, museum, art, etc.) that warrant PR efforts to regional markets (Los Angeles/Orange County, San Diego, Inland Empire). Additional public relations support will be provided for any issues the City is dealing with outside the parameters of these events, on an as needed basis. o Brand Refresh - If approved by Council, Staff will coordinate the brand refresh to update all internal and external communications and fleet. A timeline will be developed to coordinate the refresh and create an unveiling event for the press and public. " Core 1I3LJHder Chukenge Golf TOUrnanieiM-The successful partnership with Desert Classic Charities - coordinate with new sponsor to develop community events. Continue leveraging publicity in conjunction with the event as well as designing editorial pages focused on the City in the CareerBuilder Challenge Program Guide. " L..0 QLflIM,0Ail, s IC LJndo : on - Continue to work with the La Quints Arts Foundation team to develop sound strategies that maximize respective advertising budgets and PR efforts. Assist the Foundation in promoting other key events such as Art Under the Umbrellas. " I 0 QLJfiM,0CIhanilber of Coninierce - Continue to support and promote key Chamber events such as the annual Rod & Custom Car Show, Taste of La Quints through online calendar updates, email blasts, social media updates and other promotional efforts such as print and radio ads. Work with the Chamber on the monthly "City Scene" pages in The Gem to communicate City happenings to La Quints residents and businesses. " SLJ� � u u: for anew niorkdJng coWborouJons and eveiM, poll, e sh ps - Continue to identify new opportunities for marketing collaborations and support for events that enhance the City of La Quinta. 8 332 AGENDA CATEGORY: CITY / SA / HA / FA MEETING DATE: June 2, 2015 BUSINESS SESSION: ITEM TITLE: DISCUSS INTERIM OFF-STREET PARKING CONSENT CALENDAR: STANDARDS FOR LA QUINTA VILLAGE STUDY SESSION: 2 PUBLIC HEARING: RECOMMENDED ACTION: Discuss interim off-street parking standards for the La Quinta Village and provide direction. EXECUTIVE SUMMARY: • Multiple parties have expressed interest in developing in the La Quinta Village ("Village"), including new construction, expansion of existing businesses and reuse of existing buildings. • Staff is currently working on developing Village action strategies, including proposing new parking standards. • Establishing interim parking standards for the Village is expected to stimulate development interest but could also overuse existing public parking in certain areas. FISCAL IMPACT: No direct fiscal impact is anticipated with this proposal. However, reductions in parking standards could stimulate sales tax from new businesses and the expansion of existing businesses. A reduction in in -lieu parking revenue is also likely. BACKGROUND: Development interest in the Village continues to remain strong. Developers have contacted staff regarding City -owned properties and various Village property or business owners have also expressed interest in establishing new or expanding existing businesses. 333 During the January 3, 2015 City Council Study Session, discussion focused upon several Village action strategies, including assessment of public parking and review of existing parking standards specific to the Village area. Based upon the current work schedule, completion of the public parking assessment and consideration of existing parking standards are expected to be completed in the early fall. Feedback received from aforementioned development interests has generally represented concern over the City's parking standards. The number of parking spaces required is consistent throughout the City. This has been of challenge for many representing Village development interest; pointing out the amount of public parking currently available (on -street and at the City parking lot), the "willingness" for customers to walk a short distance to a business, as well as the need to maintain a pedestrian scale versus large parking lots. PROPOSAL: As a result of the feedback received, three interim parking options are being proposed. All three options propose an interim period expiring June 30, 2016. Prior to the expiration date, either a building permit would need to be secured or a Village Use Permit deemed complete. The interim parking standards would apply to all Village Commercial zoned properties. The following provides a brief summary of each proposed option: OPTION "A": 50 percent reduction in parking spaces required for any new development proposal, expansion of existing use, or change of use. OPTION "B": NEW DEVELOPMENT - 25 percent reduction in parking spaces required for new development (Village Use Permit required). EXPANSION OF EXISTING USE - 50 percent reduction in parking spaces required. CHANGE OF USE - No new parking required. OPTION "C": Forgive all required off-street parking. ANALYSIS: All three options provide relief from current off-street parking requirements. As a result, there is potential for additional parking demand being placed upon existing on - street parking, the City parking lot at Avenida Bermudas and Avenida Montezuma, as well as existing private parking lots (Attachment 1). However, existing on -street parking and the City parking lot capacity currently exists, with exception to special events and peak periods in season where on -street parking in certain areas is fully utilized. 334 Providing relief during the identified interim period is expected to stimulate new development as well as the expansion of existing businesses. The extent of such is unknown. The impact to existing public parking opportunities in the Village is dependent upon which option is pursued and how much development activity results from such. There is the potential for overuse of public parking in certain areas of the Village. During the interim period, staff will comprehensively address new parking standards for the Village, as well as update existing alternatives such as the parking fee in -lieu program, consideration of alternative methods and parking reductions specific to the Village. This comprehensive review process will include engagement with the Planning Commission and City Council. The process necessary to implement interim parking standards for the Village would include public hearings before the Planning Commission and City Council, ultimately resulting in establishment of an ordinance representing such. Should Council wish to proceed with implementing interim standards, the review process will take approximately five weeks to complete with the matter brought before the Planning Commission on June 23 and the City Council on July 7. The interim standards would become effective in August. CONCLUSION: Staff is seeking feedback on the proposed interim parking options for the Village. ALTERNATIVES: The City Council could elect to conduct any number of the aforementioned interim options or elect to not proceed at all. Report prepared by: Les Johnson, Community Development Director Report approved for submission by: Frank J. Spevacek, City Manager Attachment: 1. Village Map '4x MR ME 01 Ag pp, FIR, imfflff mra 41 Pill 1 14 I I L ill , III. I J,k MEN fmi ul 11 Jill ,q�lAl ;Aq M tw I- C) Taf 4 4 a" �a C OF CITY / SA / HA / FA MEETING DATE: June 2, 2015 AGENDA CATEGORY: BUSINESS SESSION: ITEM TITLE: 2015/16 OPERATING BUDGET OPTIONS CONSENT CALENDAR: STUDY SESSION: 3 PUBLIC HEARING: RECOMMENDED ACTION: Provide direction to staff regarding 2015/16 Budget options. EXECUTIVE SUMMARY: • The City Council received the Proposed 2015/16 Budget (Budget) on May 19; revenues exceeded expenditures by a projected $87,200. • At the same meeting, the Council received a Police Services and Crime Trends Report (Report) that identified recommendations to improve service delivery efficiencies; one recommendation is to reduce patrol hours by 6.7 percent, which would generate annual cost savings of $460,000. • The City Manager recommends that the City Council should consider the patrol hour reduction and the Executive Team recommends that the Council consider funding $64,500 in supplemental requests. • The Executive Team also recommends two additional personnel actions that have no financial impact: reclassifying a position in the Finance Department and moving a position from the Finance Department to the City Manager's Office. FISCAL IMPACT: Revenue will exceed expenditures by $87,200, as projected in the Budget. Reducing police patrol hours would decrease police service costs by $460,000, thus increasing this amount to $547,200. The Budget transmittal identified $117,600 of supplemental requests (that were not included in the Budget). However, the Executive Team recommends that the Council consider $64,500 of supplemental requests, leaving a balance of $482,700. 337 BACKGROUND/ANALYSIS: The Budget was presented to the Council on May 19, 2015. The Budget was balanced with revenue exceeding expenditures by $87,200. That same evening, the Council received the Report that presented a series of recommendations that would improve service delivery efficiencies. One recommendation entailed reducing patrol hours by 6.7 percent, from 150 daily to 140 hours daily. While the Report identified a potential annual savings of $581,965, staff projects it would be a more conservative annual savings of $460,000. If this recommendation were implemented, Budget revenue would exceed expenditures by $547,200. With this additional funding, the City could invest in measures that would improve service delivery, would facilitate succession planning and staff development, and reserve funds for unanticipated future expenditures. During the current fiscal year, the City allocated $1,593,100 of unappropriated General Fund Reserves to fund unanticipated expenses. The 2015/16 Capital Improvement Program (CIP) proposes utilizing an additional $3,484,000 of unappropriated General Fund Reserves for water conservation and flood control capital projects. Reserving some of $547,200 would provide some cushion for unanticipated expenses during 2015/16. Police Services The City contracts with the Riverside County Sheriff's Department for 30.7 patrol officers, 24 special service sworn and non -sworn officers (community service officers), 6 detectives and other support personnel. The patrol officer force is adjusted daily to meet both local and regional service demands. After considerable discussion and debate with the Chief and Assistant Chief, the City Manager has concluded that the City can reduce patrol hours by 6.7 percent from 150 daily to 140 hours daily and not compromise public safety. This reduction would not impact daily patrols in the City's six beats; instead, the special service personnel would assume more support activities. Further, additional resource deployment efficiencies would also accommodate this reduction. Finally, if future conditions warranted additional hours, the City would have the flexibility to purchase additional hours. Savings Allocation The 6.7 percent reduction in service hours would increase the Budget revenue/expenditure spread by 527.5 percent, from a projected $87,200 to $547,200. The Budget transmittal identified $117,600 of supplemental requests. The Executive Team recommends that the Council consider funding the following supplemental requests ($64,500): • Allocate $30,000 to fund the net cost of adding three administrative support positions as follows: o Administrative Technician in Community Development - to support increased department planning and development permit processing activities in order to decrease processing times. 338 o Office Assistant assigned to both Public Works and Code Compliance - to support increased Public Works permit activity and to handle phone, counter and GoRequest code compliance inquiries and responses. o Management Assistant in the City Manager's Office - to support the Business Unit, Police/Fire/Waste Management contract administration, Economic Development initiatives and the City's legislative advocacy efforts. The total, fully burdened (salary and benefits) cost of these three positions is $206,100. However, these costs would be offset by not funding the Information Services Analyst position ($117,900) in the City Manager's Office (eliminating that position) and reducing contract services budgets in Community Development and Public Works by $58,200. These costs are currently included in the Budget. • Allocate $27,000 to reclassify the following positions; these positions are filled with long-term career growth potential employees and will afford the opportunity to grow/develop internal staff to fill future vacancies: o Assistant Civil Engineer to Associate Engineer -Public Works o Associate Planner to Principal Planner - Community Development o Senior Account Clerk to Permit Technician -Customer Center o Senior Account Clerk to Account Technician -Finance. • Allocate $7,500 to fund a grant for Old Town Artisans to fund the following art - based programs in La Quinta: o An intergenerational summer pottery workshop at the Library o Scholarships to cover the $100 cost for disadvantaged youth to participate in summer and on -going intensive drawing classes o In partnership with the Family YMCA, new ceramics courses at all four La Quinta after school centers every other week. The Budget transmittal also identified a supplemental request of $25,000 to fund an employee wellness program. The Executive Team has since identified other means to achieve this purpose and is withdrawing this request. The Executive Team recommends reserving the remaining $482,700 to fund the following expenses anticipated to occur in 2015/16: • The Village Program Environmental Impact Report (EIR) - the City is in the process of conducting a planning study and comprehensive environmental review of the Village. The purpose, to complete the environmental and entitlement processes to limit future development entitlements to a Village Use Permit. The anticipated cost to prepare the EIR is $150,000; this cost is not included in the Budget. • Expand Code Compliance - the January 2015 community workshop participants identified the need to review the City's code compliance efforts and expand the OCR scope. A staff Project Action Team (comprised of Code, Community Development and City Manager Office staff) has been developing program parameters for Council and community consideration. These parameters will be presented to the Council in July/August 2015. One aspect that this effort has identified is the need to either add a position to accommodate animal control needs (60 percent of the Code/Animal Officers' time commitment) or consider contracting with the County for animal control services. The estimated cost to add staff or contract these services is $113,000 (not including a one-time cost of $65,000 to replace an animal control vehicle) to $120,000, respectively. • Reserve funds for unanticipated expenses - including capital projects to conserve water or upgrade flood control facilities, or to fund contract service costs associated with the SilverRock development. Finally, the Executive Team recommends two other modifications that do not have any impact on the Budget as follows: • Administrative Technician to Management Assistant - Finance Department. Reclassifying this position would allow this individual to cover finance and administrative activities, and also handle implementing and managing the purchasing module and function. • Moving the Business Analyst - from Finance to the City Manager's Office. Finance no longer requires this position and there is a need for additional police, fire and waste contract management oversight. Staff is seeking City Council input on these recommended actions. The City Council's directives would then be incorporated in to a Final Budget that the Council would consider on June 16, 2015. Report prepared by: Frank J. Spevacek, City Manager «st REPORTS AND INFORMATIONAL ITEM: 21 COMMUNITY SERVICES COMMISSION MINUTES MONDAY, APRIL 13, 2015 CALL TO ORDER A regular meeting of the La Quinta Community Services Commission was called to order at 5:31 p.m. by Commissioner Blakeley. ROLL CALL PRESENT: Commissioners Blakeley, Johnson, and Simonds ABSENT: Commissioner Engel PLEDGE OF ALLEGIANCE Commissioner Blakeley led the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA - None CONFIRMATION OF AGENDA — Confirmed PRESENTATIONS 1 . PRESENTATION BY THE FAMILY YMCA OF THE DESERT Karen Creasey, Aquatics Manager and Alisa Rutherford, Program Coordinator presented the Family YMCA of the Desert presentation. Commissioner Simonds asked if the marketing plan included the encouragement of local school participation. Resident Janeil Austin spoke regarding the need for an expansion of aquatic programs in La Quinta or the possibility of developing an aquatics center. She proposed the creation of a committee to communicate the needs and expectations of the public. Resident Kathy Kronemeyer spoke regarding the importance of water aerobics classes for local senior citizens. CONSENT CALENDAR 1 . APPROVE MINUTES OF MARCH 9, 2015 Motion — A motion was made and seconded by Commissioners Johnson/Simonds to approve the March 9, 2015 Community Services Commission Minutes as submitted. Motion passed unanimously. COMMUNITY SERVICES COMMISSION MINUTES APRIL 13, 2015 341 BUSINESS ITEMS 1. RECOMMEND ANNUAL WELLNESS CENTER MEMBERSHIP RATES FOR LA QUINTA AND CHAMBER OF COMMERCE BUSINESSES Supervisor Calderon presented the staff report. Motion — A motion was made and seconded by Commissioners Johnson/Simonds to recommend annual Wellness Center membership "business rate" of $50 for members of the La Quinta Chamber of Commerce La Quinta businesses and their employees to be limited to 500 memberships for a pilot period of one year. Motion passed unanimously. 2. COMMUNITY SERVICES COMMISSION WORK PLAN FOR FISCAL YEAR 2015/16 Deputy Hylton presented the staff report. Commissioners Blakeley and Johnson requested information regarding the Community Services Grant. Motion — A motion was made and seconded by Commissioners Johnson/Simonds to recommend Community Services Commission Work Plan for Fiscal Year 2015/16. Motion passed unanimously. REPORTS AND INFORMATION ITEMS 1 . DEPARTMENT REPORT FOR FEBRUARY AND MARCH 2O15 2. REPORT FROM COMMISSIONERS REGARDING MEETINGS ATTENDED 3. CALENDAR OF MONTHLY EVENTS COMMISSIONER ITEMS Commissioner Johnson requested an update regarding crime/drug activity at the La Quinta Park. Commissioner Simonds asked about outreach programs for local schools; teachers have voiced a strong interest to work with the City on health and wellness programs for their students. Commissioner Blakeley has received extremely positive feedback regarding the Senior Inspiration Award luncheon. COMMUNITY SERVICES COMMISSION MINUTES APRIL 13, 2015 342 ADJOURNMENT There being no further business, it was moved and seconded by Commissioners Simonds/Johnson to adjourn the meeting at 6:46 p.m. Motion passed unanimously. Respectfully submitted, LISA CHAUDHRY, Executive Office Assistant City of La Quinta, California COMMUNITY SERVICES COMMISSION MINUTES APRIL 13, 2015 343 344 REPORTS AND INFORMATIONAL ITEM: 22 PLANNING COMMISSION MINUTES TUESDAY, APRIL 14, 2015 CALL TO ORDER A regular meeting of the La Quinta Planning Commission was called to order at 7:00 p.m. by Chairperson Wright. PRESENT: Commissioners Bettencourt, Blum, Fitzpatrick, Wilkinson, and Chairperson Wright ABSENT: None STAFF PRESENT: Community Development Director Les Johnson, Deputy City Attorney Kathy Jensen, Principal Engineer Bryan McKinney, Principal Planner Wally Nesbit, and Executive Assistant Monika Radeva Commissioner Bettencourt led the Commission in the Pledge of Allegiance. PUBLIC COMMENT — None CONFIRMATION OF AGENDA — Confirmed APPROVAL OF MINUTES Motion — A motion was made and seconded by Commissioners Blum/Bettencourt to approve the Planning Commission Minutes of February 19, 2015, as submitted. Motion passed unanimously. PUBLIC HEARINGS 1 . Environmental Assessment 2014-1001, Specific Plan 2014-1001, Tentative Parcel Map 2014-1001 (TPM 36745), Tentative Tract Map (TTM 36744), and Site Development Permit 2014-1003 submitted by Griffin Ranch Investors LP proposing to subdivide approximately 40 acres into 78 single-family lots, a 3,600 square -foot community building with pool, patio, and barbeque areas, and expand the existing 2.1-acre pond to a 6-acre lake with several boating slips/dock areas. Project: Estates at Griffin Lake. CEQA: a Mitigated Negative Declaration of Environmental Impact and associated Mitigation Monitoring Program have been PLANNING COMMISSION MINUTES 1 APRIL 14, 2015 01R prepared for consideration. Location: south side of Avenue 54, half a mile east of Madison Street. Principal Planner Wally Nesbit presented the information contained in the staff report, a copy of which is on file in the Community Development Department. Planning Commissioners asked questions of staff and commented regarding a meeting of the Coachella Valley Water District Board meeting held earlier in the day. Chairperson Wright declared the PUBLIC HEARING OPEN at 7:39 p.m. Public Speaker: Mr. Paul DePalatis, AICP, Director of Planning Services with MSA Consulting, Inc., Palm Desert, CA — introduced himself, gave a detailed presentation of the project and its history, and answered the Commission's questions with regards to the proposed six -acre lake. He identified that the proposed lake would result in a 73% reduction of potable water use, is in compliance with Coachella Valley Water District's regulations and in line with Governor Brown's April 1 Executive Order Regarding Mandatory Statewide 25% Reduction in Potable Water Use. Public Speaker: Mr. Mark Majer, Applicant and Director with MDM Investment Group, Newport Beach, CA — introduced himself, expressed his gratitude to the Commission and staff, and provided a brief description of the project, noting that the lake serves as non -potable water reservoir for the development. He encouraged the Commission to consider the potable water savings and that the project has been in the works for two years. Vice Chair Wilkinson asked what measures have been put in place to address dust control. Mr. DePalatis said the project will have a PM 10 plan and dust control measures will be used during grading and construction as needed. Vice Chair Wilkinson said there was no mentioning of a deceleration lane or stacking distance requirements on Avenue 54. Principal Engineer McKinney answered that the City's Traffic Engineer had reviewed the project and the number of trips generated based on the proposed number of homes did not warrant the need for a deceleration lane. Mr. Major stated that the applicant's Traffic Engineer had performed a very detail analysis of this issue and a determination was made, along with staff, that there would not be a need for a deceleration lane. Public Speaker: Mr. Ronald Gregory, A.S.L.A., President with RGA Landscape Architects, Inc., Palm Desert, CA — introduced himself, provided an overview of PLANNING COMMISSION MINUTES 2 APRIL 14, 2015 cL[ the proposed landscaping for the project and noted that it had to be designed to not only meet the landscape requirements of CVWD and the City, but also the State. Commissioner Bettencourt asked if the hypothetical 88-lot subdivision would meet the design standards in the Specific Plan and require the proposed annual 20,807,100 gallons for landscaping irrigation alone. Mr. DePalatis said the number is very rough and the project was designed to meet the Specific Plan requirements. Mr. Gergory noted that the subdivision is being designed to meet the standards and calculations as provided by the State to the local water agency. Commissioner Bettencourt said that the provided documentation did not include any official statement or analysis from CVWD supporting the applicant's hypothetical design and he thought it would be beneficial to the Commission to have a high-ranking CVWD Official attend the next Commission meeting that would be able to testify to the validity of the applicant's statements. He further asked that the Commission be provided an alternative 88-lot subdivision design proposal for comparison purposes. Commissioner Blum inquired as to the lot level and optional second story feature on Plan 1 . Mr. DePalatis answered his questions. Public Speaker: Ms. Katie Barrows, La Quinta resident, CA — introduced herself and said she is in support of staff's recommendation to continue the item to allow for a closer look at the proposed water conservation. She noted that the discussion and comments indicate a great effort was put into the design of this project and the applicant was going above and beyond in some areas, but it was not clear that they had done that with regards to water conservation. The Governor's Order currently addresses only potable water, but other aspects of our water use might be included. It would be most responsible of the Commission to recommend a continuance and give staff and the Commission a better chance to study the project and to answer some of the questions brought up during the Commission's discussion. Mrs. Barrows referenced water statistics recently published in The Desert Sun. She stated that the project would use 33 million gallons of water per year with the lake, and 28 million gallons per year without the lake. She said that we are in a seven-year drought and need to be more concerned with water conversation. She pointed out that canal water does have many applications, it is used for agriculture and to recharge our water supply which she viewed were more important uses that the lake. Mrs. Barrows said water is water and asked that a fair comparison be provided in the staff report with regards to the water use as it currently only addressed the savings realized in potable water. PLANNING COMMISSION MINUTES 3 APRIL 14, 2015 347 Public Speaker: Ms. Linda Williams, President of the La Quinta Historical Society and La Quinta resident, CA — introduced herself and complimented the applicant on the beautiful design of the project. She said this was not a historic property, however, it has a large celebrity identity and as pointed out in the staff report mostly equestrian. She had hoped that the estate could be used as a center for conferences much like the Sunnylands, Annenberg Estate, in Rancho Mirage. She noted that recently the Coachella Valley received very negative publicity nationally, with regards to its water usage. The City should have an eye towards how the approval of this project would be perceived. She stated she read CVWD's report from this morning and one of the things that struck her was that it requested private pumpers, canal water, and non -potable water uses to aby by the imposed restrictions as well. She said that other water uses will also be affected in the future and she would like to see La Quinta take some measured steps. Public Speaker: Mr. Ronald Serasio, Palm Desert resident, CA — introduced himself and said he was currently looking into purchasing a home in La Quinta. He stated from the discussion tonight there were couple of issues that were brought up, one being the preservation of water and that water is water. He said that there were a lot of questions brought up during tonight's discussion that needed to be further looked at before a decision was made. Public Speaker: Mr. Edward Armendarez, La Quinta resident, CA — introduced himself and said Mrs. Barrows had already covered most of the points he wanted to bring up. He noted that the water consumption numbers provided in the staff report were a bit conspicuous. He stated this was a beautiful development that would be a great addition to the community; however, he questioned that it was a model use of water. Public Speaker: Mrs. Elaine Reynolds, La Quinta resident, CA — introduced herself and said that Mery Griffin was very actively involved with the art foundation. She stated she did not feel that the Mery Griffin estate was the appropriate location for the proposed project. She said she would like to see the estate preserved as originally built to maintain its historic value much like Thomas Jefferson's home. Mr. Major noted that although there wasn't any form of historic designation of the estate, the development was designed in a manner that would preserve the original estate, including the structural integrity of the stables' woodwork, which would remain intact, that the stables would simply be renovated and repositioned which would result in a minor reduction in size. He stated the design allowed for the preservation of the cultural identity of the property. PLANNING COMMISSION MINUTES 4 APRIL 14, 2015 348 Motion - A motion was made and seconded by Commissioners Bettencourt/Fitzpatrick to continue Public Hearing Item No. 1 to allow staff and the applicant to provide the following: • Provide CVWD's approval of the proposed supply network • Attendance of a CVWD Official at the Commission's next meeting • Provide a draft HOA maintenance and care budget for the project • A sketch plan providing comparison of this project to an alternative design AYES: Commissioners Bettencourt and Fitzpatrick. NOES: Commissioners Blum, Wilkinson and Wright. ABSENT: None. ABSTAIN: None. Motion failed due to the lack of quorum. Chairperson Wright declared the PUBLIC HEARING CLOSED at 8:34 p.m. Motion - A motion was made and seconded by Commissioners Wilkinson/Blum to adopt Resolution 2015-005 recommending to the City Council approval a Mitigated Negative Declaration of Environmental Impact and associated Mitigation Monitoring Program for Environmental Assessment 2014-1001 , Specific Plan 2014-1001 , Amendment No. 1 (SP 2004-074), Tentative Parcel Map 2014-1001 (TPM 36745), Tentative Tract Map 2014-1001 (TTM 36744) and Site Development Permit 2014-1003 as submitted with staff's recommendations and the revision of the following Conditions of Approval as identified in the memorandum dated April 14, 2015: Tentative Tract Map 2014-1001 (TTM 36744) - Exhibit D 49. Minimize the differential in building ,pad elevations of ,perimeter lots and building ,pad elevations in adjacent developments. Building ,pad elevations of perimeter lots have been allowed by the City Engineer to differ by more than the standard one foot in elevation from adjacent developments due to the unique site conditions of this ,project and the effort by the applicant to lower the site as much as ,possible. Meeting the one foot standard would impose an unreasonable hardship upon the applicant. 50. Minimize the differential in elevations of lots within this development and elevations in adjoining developments. The differences in elevation between the adjoining ,properties and the lots within this development as shown on the TTM and the grading ,clan will be allowed by the City Engineer due to the unique site conditions of this ,project and the effort by the applicant to lower the site as much as ,possible. Further lowering of the site would impose an unreasonable hardship upon the applicant. PLANNING COMMISSION MINUTES 5 APRIL 14, 2015 cLR; Site Development Permit 2014-1003 - Exhibit E 44. Minimize the differential in building ,pad elevations of ,perimeter lots and building ,pad elevations in adjacent developments. Building ,pad elevations of perimeter lots have been allowed by the City Engineer to differ by more than the standard one foot in elevation from adjacent developments due to the unique site conditions of this ,project and the effort by the applicant to lower the site as much as ,possible. Meeting the one foot standard would impose an unreasonable hardship upon the applicant. 45. Minimize the differential in elevations of lots within this development and elevations in adjoining developments. The differences in elevation between the adjoining ,properties and the lots within this development as shown on the TTM and the grading ,clan will be allowed by the City Engineer due to the unique site conditions of this ,project and the effort by the applicant to lower the site as much as ,possible. Further lowering of the site would impose an unreasonable hardship upon the applicant. AYES: Commissioners Blum, Wilkinson, and Wright. NOES: Commissioners Bettencourt and Fitzpatrick. ABSENT: None. ABSTAIN: None. Motion passed. BUSINESS SESSION - None CORRESPONDENCE AND WRITTEN MATERIAL - None COMMISSIONER ITEMS 1 . Report on City Council meetings of March 3, 17, and April 7, 2015. 2. Commissioner Blum is scheduled to attend the April 21, 2015, City Council meeting. DIRECTOR'S ITEMS 1 . Electronic distribution of the Planning Commission packet. 2. Planning Commissioners Academy - March 4-6, 2015, at the Fairmont Newport Beach Hotel. 3. Medical Marijuana Dispensaries and Group Homes. PLANNING COMMISSION MINUTES 6 APRIL 14, 2015 410 ADJOURNMENT There being no further business, it was moved and seconded by Commissioners Bette ncourt/Fitzpatrick to adjourn this meeting at 9:09 p.m. Motion passed unanimously. Respectfully submitted, MONIKA AI EVA, Executive Assistant City of La Quinta, California PLANNING COMMISSION MINUTES 7 APRIL 14, 2015 «.I c}.% Reports/ Informational Items: 23 Report to La Quinta City Council Palm Springs International Airport Commission Meeting May 20, 2015 Finance: YTD revenue was $1.5 million higher than last April. All categories were higher, but car rentals accounted for the largest increase; followed by landing fees. (Note; the airport receives $10 per car rental transaction, and mental transactions require an average of 6 minutes.) Expenses were up, but only 0.6%, and still below plan. Unrestricted cash stands at $6.1 million — which is on target. 2015/2016 Budget: After reviewing several models, the Commission approved the submission of the Budget to the Palm Springs City Council for approval at tonight's council meeting. Key points are: General: The plan provides for a surplus of $388,000. Personnel: One promotion in Security from Officer to Sergeant, and one newly hired HVAC technician There are a total of 65 fulltime employees; the same as pre 9/11. Passenger Activity: April passenger activity was down 0.3% from last year. This is down only 600 passengers, but it is significant because it is the first month of lower traffic in quite a while. It was anticipated, however, and should not be a problem. General Observations: It's easy to see the general slowdown in airport activities as summer approaches. Now that the budget has been sent to the Council, the issues for the Commission are substantially reduced as well. The Staff, however, are taking advantage of the reduced activities to advance several capital projects that have already been approved and funded. 1. One of the car rental agency counters will be moved around the corner (where the USO had been). This will reduce congestion around the baggage area. 2. The rear wall in the baggage claim area will be a "digital wall", allowing for increased advertising revenue. 3. The seats in the Bono concourse will be reupholstered. 4. Over 1000 carpet tiles will be replaced. 5. Both escalators will be replaced. 6. Required ADA improvements will be done. 7. The sustainable landscaping will be completed. 8. FCC maintenance work order software will be updated. 9. The Bono passenger boarding bridge will be refurbished. 355 The next meeting is scheduled for June 17, 2015. Submitted: Robert G. Teal, Commissioner Palm Springs International Airport Email: bobateal.us.com Phone: 760-899-4171 356 DEPARTMENT REPORT: 4 La Quinta Public Library Quarterly Report January 2015 - March 2015 Circulation• The Library circulated 67,747 items in the Third Quarter of 2014/2015. This is an average of 100 items checked out every hour that the Library was open. Although the numbers have remained steady over the quarter, it is a significant decrease from the year before and can be attributed to readership transitioning to e-books and e- readers. 2010 2011 2012 2013 2014 2015 January 32,838 36,586 37,055 37,930 32,129 22,558 February 30,840 35,618 36,383 31,328 29,417 21,297 March 31,945 39,785 40,138 33,451 25,198 23,892 e-Books: Digitalized books have been made available for download from OverDrive through the Riverside County Library System website. In the Third Quarter 2013/2014, the amount of e-books checked out was 7,353;for Third Quarter 2014/2015 it was 9,820. This is an increase of 25 percent. This can be attributed to an increase in e-book availability. Public Computer Usage: Public computers are used by all ages and provide an important connection for tourist and short-term visitors to keep in touch with work, family, or to check travel arrangements. During this quarter, 6,688 computer sessions were logged on the Library's 28 public access computers. This is a decrease from Third Quarter 2013/2014 (8,092 sessions), and can be attributed to changes in computer usage polices including the separation of children and adult users. nnnr fniint- This quarter, 53,061 people visited the Library to check out materials, read newspapers and magazines, utilize Internet services, attend programs and purchase books from the Friends of the Library Book Store. This is a .01% decrease from Third Quarter 2013/2014. 2010 2011 2012 2013 2014 2015 January 19,308 20,182 19,022 22,071 17,233 17,146 February 18,548 18,559 17,846 20,142 16,576 17,813 March 22,575 23,565 24,396 21,364 20,057 18,102 New Borrowers• The Library registered 670 new borrowers during the Third Quarter. There were 33,071 borrowers as of March 31, 2015. Of these, 3,550 borrowers used their card this 355 quarter. A Library card is good for three years and is purged after four if there are no fees attached. A card with fees stays until the record is cleared. Reference: There were 7,529 reference questions during the Third Quarter. Adult Reference, Children's Reference and Circulation staff record the amount of inquires per month. Reference questions can reflect user interest in the Library's programs, services, and materials. Weekly Programming_ A Preschool Storytime for children 2 to 5 years old was held 20 times, at 10:00 a.m. and 11:00 a.m. on Thursday mornings, during this quarter. A total of 264 children attended. The Book Babies Storytime Program for parents with babies and toddlers were held 24 times, at 10:00 a.m. and 11:00 a.m. on Tuesday mornings, and were attended by 519 participants. Adults are able to seek technological help from Library staff during the One -on -One sessions. Adults get one-half hour of free one-on-one support for their electronic device. There were two sessions held every Wednesday at 10:30 a.m. and 4:00 p.m. Twenty-four sessions were held in the Third Quarter, with attendance at 20. During the Third Quarter, there were 9 pre -beginner computer classes for adults who had no previous computer experience. They were at 10:30 a.m. and held at the Wellness Center in their computer lab. Forty-six people attended. Bi-weekly Programming_ Family Game Night was held two Fridays a month. Children and their parents interacted with each other by playing board games like Chess and Sorry. There were 6 programs for the Third Quarter with 56 participants. Monthly Programs: The Library offers a newly released film or a seasonally related classic movie that will appeal to the whole family or grown-ups. There were 7 movie days in the Third Quarter that were attended by 39 people. Children and their families listen to bilingual stories, sing songs and do crafts during Bilingual Storytime with Ms. Minerva. It is held the first Wednesday of the month. For this Quarter, there were 3 story times with 48 participants. The La Quinta Museum hosted a Bilingual Storytime at the Museum beginning in January. Each program offered bilingual stories for preschoolers. There were 3 story times with 7 people attending. 356 Pajama Storytime is a new monthly storytime featuring stretchers, songs and stories. There were 3 story times this Quarter with 36 people attending. Other Programs: Eisenhower Medical Center continued their medical lecture series during the Third Quarter with discussions on eating for sports; maintaining blood pressure; and allergies and asthma. There were a total of 68 participants for their three programs. Attendees were required to register with Eisenhower. Book clubs for adults (ages 18 and over), teens (ages 13 - 18) and tweens (ages 9 - 12) started this spring. Each featured the latest titles for them to read and a discussion afterward. Adults and teens met once a month, while tweens met biweekly. There were 2 meetings for the adults with 21 attending; 2 teens participated in 2 meetings for Third Quarter; and 26 participated in 6 tween discussions. The reading program sponsored by In-N-Out entitled Cover -to -Cover began on March 7 (ending April 18). It featured a free hamburger or cheeseburger for any child aged 2 to 12 who read 5 books. For the Third Quarter, 82 signed up. Teens had three 3 programs in the Third Quarter. There were 16 teens who attended the robotics workshop, where teens made a robot and used a computer to guide it on a floor map. Twenty-seven teens also took part in two interactive displays in the Teen Room. This Quarter featured Read Across America Day on March 3, during the Book Baby Storytime the day after Dr. Seuss's birthday. Mayor Linda Evans and City Council member Robert Radi read Dr. Seuss books to the preschoolers. There were 55 children and parents who attended. All -age programming began in January and continued throughout the Third Quarter. There were Do It Yourself (DIY), cultural and interactive programs. The DIY programs featured t-shirt scarves, canvas and painter's tape art and washi tape. There was also a Read-a-Thon, Bubble Wrap Appreciation Day, a Chinese New Year program and Dino Day. There were a total of 8 events for the Third Quarter, with 170 participants. Volunteers: During this quarter, 82 volunteers donated 578 hours of their time. Volunteers worked in the book store, shelved returned books in the Library, helped with programs, and performed a myriad of other tasks. Friends of the Library: The La Quinta Friends of the Library continue to offer support in all areas including volunteering during large programs. The Friends provided funds for all special 359 programs and promotion incentives for Farmer's Market and other outreach activities. They also help by volunteering time and effort in the Book Sale room. Friend volunteers helped this Quarter with two big events: The teen Robotics Workshop and the children's Dino Day. The workshop required 16 separate kits for individuals and the Dino Day was a craft day where children made a dinosaur mobile. Outreach• The La Quinta Library participated in many City events and programs to promote the Library: The Humana Well -Being Walk and Healthy Fun Fair, YMCA Fundraiser Carnival, La Quinta Police Safety Fair and Week of the Young Child's Day of the Young Child event. Over 644 people visited the booths during these events. Library staff participated in the Farmer's Market in Old Town La Quinta every second and fourth Sunday, with a booth and free book giveaways. There were a total of 7 visits, with 650 attendees visiting the booth. In the Third Quarter, Library staff held one story time on the second Sunday, with 45 children and their families attending. Library staff presented the Library history as well as current events to the Retired Public Employees Association at Heritage Palms Country Club in February. School Visits• The Reading Pais program began on March 16. Eight preschools were targeted to receive a red bag of books to read to the children. Mayor Linda Evans, City Council member Robert Radi and Library staff visited First School of La Quinta to offer the first bag to the school. The YMCA and John Adams Headstart also participated. In each bag are 6 specially selected books based on the Library and its community partners. Also inside was a stuffed toy quail named Gamby. Each preschool present received a bag from the Mayor, while the others were hand -delivered. Each month, Library staff will visit the schools and switch out the books with different ones. The school gets to keep Gamby as a mascot. One class visited the Library during Third Quarter from John Adams Headstart. Library staff read bilingual books and offered a tour of the Library. There were 54 children and teachers. K�7:. La Quinta Library Expenditures July 1, 20114 - M, arch 31, 2015 Library Contract Expenditures (LSSI) 7/1114 to 09130114 1011114 to 12/31114 1111115 to 3131116, Total Year to Data Labor & Benefits 116,061.14 146,104.86 168,916.00 $ 431,082.00 Matedals, Net of Donations - - - $ - La Quinta Collection/Books 170,230.80 $ 170,230,80 Utilities - - - $ Automation & Courier 8,75204 9,051 96 10,038M $ 27,842.00 Other Direct Costs 9,86160 8,92440 2,592.00 $ 21,378.00 Zone Administration 13,366.75 17,38225 19,574-00 $ 50,323M Shared Costs - 12,714.69 31 18,356.00 $ 49,234.00 1118J63 County Expenditures 7111114 to 09/30114 10/1114 to 1121311114 11111115 to 3131116 Total Year to Date Personnel 1,255,12 476.51 8%31 $ 2,581,9,4 Insurance 16,668,53 26935 1,30283 $ 18,20.11 Wscellaneous Expenses - 013 - $ 0.13 Wscellaneclus Maintenance Expenses - $ - Special Program Expenses 637.84 47.84 $ 685.68 Accounting Costs 84,61 11231 123.22 320.54 Travel and Conferences - - Su art Services 21,412 13 52,823,86 2B,491919 S 102,73518 IT'otal County Expenditures 40,058.23 63,730.80 $ ,30,776,65 $ 124,654..59 TOTAL EXPENDITURES, $ 200,814.46 $ 2�63,357.58 $ 420,482.35 $ 874,,654.38 S„\UbrarylFY14-15\Repart5\La QWrIaVY2014-15 report 369 Llbw3rd Quaner 5121/20151MG4 AIA 360 La Quinta Museum Quarterly Report January — March 2015 Visitors 2,061 people visited the Museum this quarter, including 173 children. Exhibits January saw dramatic physical changes to the upstairs galleries. The chuck wagon and train station were removed, the walls were freshly painted, and the space refreshed. "It's About Time!" and "Crystals" opened the end of January and ran through March 20, 2015. Three new exhibits opened March 31: "Nature's Beloved Son - Rediscovering John Muir's Botanical Legacy"; "Iconic Light," featuring the photographic works of Ansel Adams and Dorothea Lange; and "Poetry in Space: Hubble at 25." The first floor gallery remained dedicated to local history including Cahuilla Indian and native animal dioramas as well as displays on the La Quinta Hotel and the Desert Club. Newly added panels include La Quinta Casitas and Date Growing. Programming First Friday in February was a double -billed evening featuring magician/ventriloquist Rob Watkins and the opening reception for "It's About Time" and "Crystals." Over 200 people in attendance. Sandii Castleberry and Friends performed a courtyard bluegrass concert in March. Due to New Year's holiday, there was no January First Friday event. The Museum co -hosted with the Historical Society an appraisal event. Lofty Appraisal (an on-line auction house from New York) sent television personality/appraiser Timothy Gordon for an all -day appraisal event. Several informative Museum talks/programs were held over the 3-month period including topics such as e-cigarettes, crystals, business etiquette, watch talk, history of spices, and history of living foods to name just a few. The Museum celebrated Chinese New Year in February with an afternoon of Mah Jongg and fortune cookies. In conjunction with the La Quinta Arts Festival, the Museum hosted the Desert Weavers and Spinners for a day long demonstration in the Museum courtyard. 363 The Museum also launched 2 new monthly programs, Brown Bag TED Talk and "Senior Moments." Preschool Story Time for children ages 3-5, was held the first Wednesday of each month. Also, the Museum in partnership with the La Quinta Library is offering Bi- lingual Story Time on the third Wednesday of the month. The 3-sessions were attended by a total of 130 children and their caretakers. Gift Shop Total gift shop sales this quarter were $2,835. 362 La Quinta Museum Expenditures July 1, 2014 - March 31, 2015 Museum Personnel Costs Salaries 7/1/14-9/30/14 10/1/14 to 12/31/14 111115 to 3131115 Total Yearto Date 36,706.96 38,849.04 18,800.00 94,356.00 Total Museum Personnel Cost 36,706.96 38,849.04 18,800.00 94,356.00' Museum Programming Costs Special Speaker Printinq 3,100.14 107.76 3,001.86 2,604.24 3,325.00 2,313.00 9,427.00 5,025.00 Total Museum Programming Cost 3,207.90 5,606.10 6,638.00 14,452.00' Museum Other Costs Travel Supplies (including a mural) Gift Shop Supplies Miscellaneous 94.08 1,861.17 624.86 116.19 685.92 6,530.83 846.00 0.00 379.00 782.00 0.00 454.81 1,159.00 9,174.00 1,470.86 570.00 Total Museum Other Cost 2,696.30 8,061.75 1,615.81 12,373.86 TOTAL EXPENDITURES 1 $42,611.16 $52,516.89 $26,053.81' $121,181.86' \\store9\users\STRusseII\Book1 5/2�A915 7:44 AM 366 pa�(�tiuNr�q,'c G� OF CITY / SA / HA / FA MEETING DATE: June 2, 2015 AGENDA CATEGORY: BUSINESS SESSION: ITEM TITLE: ADOPT RESOLUTION CONFIRMING DIAGRAM AND ASSESSMENT FOR LANDSCAPE AND CONSENT CALENDAR: LIGHTING ASSESSMENT DISTRICT 89-1, FISCAL YEAR STUDY SESSION: 2015/2016 PUBLIC HEARING: 1 RECOMMENED ACTION: Adopt a resolution confirming the diagram and assessment for Landscape and Lighting Assessment District 89-1, Fiscal Year 2015/2016, pursuant to the Engineer's Report. EXECUTIVE SUMMARY: • Annually, the City Council must take certain actions including holding this public hearing in order to levy the annual assessments for the Citywide Landscape and Lighting Assessment District 89-1 ("District"). • Assessments are collected to fund right-of-way landscape, lighting, median, and parkway maintenance. The assessment rate will remain at $35.60 per Equivalent Benefit Unit (EBU), which has been the same rate since 1997. • Approving the attached resolution is necessary in order for the County Assessor to place this assessment on the tax roll for Fiscal Year 2015/2016. FISCAL IMPACTS: The assessment levy ($35.60 per EBU) will generate an estimated $959,313. This will fund 59 percent of the Fiscal Year 2015/2016 estimated $1,620,314 cost to maintain retention basins and right-of-ways (landscaping and lighting maintenance for medians and parkways). The City will also receive $100,000 from County Service Area 152, levied by the County of Riverside, to fund retention basin maintenance. The County levies these assessments on City parcels to fund stormwater facility maintenance as well as other programs to improve stormwater quality within the City. The combined income is projected to be $1,059,313; the $561,001 shortfall will be funded by the General Fund. BACKGROUND/ANALYSIS: The City's District was formed in 1989, under the Landscape and Lighting Act of 1972, to pay for the landscape and lighting maintenance of streets and parks. The District was modified in 1997 to conform to Proposition 218, which required the removal of maintenance costs for facilities that provide general benefit to the public such as parks, fire stations, and public buildings. Since 1997, the City's District has only included maintenance costs for streets, street lights, traffic signals, landscape medians and parkways and retention basins since these costs are considered "exempt" under Proposition 218. Beginning in 1997, maintenance of "nonexempt" items (i.e., facilities providing general benefit) were shown separately but still shown as part of the overall landscape maintenance budget. Proposition 218 also requires that any assessment rate increase be supported by a benefits analysis and Citywide vote in favor of the increase. These requirements have virtually locked in the assessment rate at $35.60 since 1997, while the District's maintenance costs have nearly tripled. On May 5, 2015, the City Council adopted the following resolutions: • Resolution No. 2015-013, approving the Preliminary Engineer's Report for Fiscal Year 2015/2016 in connection with the District. • Resolution No. 2015-014, declaring intention to levy annual assessment for construction, maintenance, and servicing landscape and lighting improvements within the boundaries of the territory included in the Citywide District, and giving notice thereof. The engineer's report must include the following information: 1. A description of the services to be provided throughout the District; 2. Total costs necessary to provide all services described in the engineer's report; 3. A diagram showing the boundaries of the District, including special benefit zones; and 4. An assessment schedule. The final engineer's report, for the Fiscal Year 2015/2016 assessment, has been completed (Attachment 1) and establishes the maintenance budget and number of 411-I benefitting parcels. The chart below compares the projected Fiscal Year 2015/2016 data with the Fiscal Year 2014/2015 data: Citywide Benefit Zone Number of Local Benefit Zones Number of Equivalent Benefit Units (EBUs) EBU Rate District Revenue FY 2014/2015 Yes 6 27,007 $35.60/EBU $961,449 FY 2015/2016 Yes 6 26,948 $35.60/EBU $959,313 The City's assessment district consultant, Willdan Financial, projects that 59 EBUs will be reduced from Fiscal Year 2014/2015 to Fiscal Year 2015/2016 due to changes in the County's land use classifications and/or Assessor Parcel Number changes. Actuals will be based on the final County Secured Tax Roll for Fiscal Year 2015/2016. All property owners, including those within six previously identified local benefit zones, will be assessed at a flat rate. This public hearing affords an opportunity for affected property owners to ask questions regarding the District and to provide public testimony regarding any proposed changes. No changes are proposed at this time. Only after the public hearing has been conducted can the City Council adopt assessment fees for Fiscal Year 2015/2016. Should the City Council receive testimony from the public through the end of the public meeting/hearing that warrants a change to the assessment level, the City Council can lower the assessment by a majority vote of the Council, or increase it but only by a special benefit analysis and vote through a property owner ballot. If lowered, the reduction in assessment level would impact the revenues necessary to fund the District's operational budget for Fiscal Year 2015/2016. If service levels were not adjusted accordingly, the General Fund would be required to make up the difference between the reduced revenue level and the proposed District's operational budget. ALTERNATIVES: The City Council can direct staff to adjust the engineer's report to reflect any changes resulting from the public hearing. Should the City Council direct amendments to the engineer's report, an amended report and the impacts of the amendments would be submitted to the City Council for approval at the June 16, 2015 City Council meeting. Report prepared by: Timothy R. Jonasson, P.E. Public Works Director/City Engineer Report approved for submission by: Frank J. Spevacek, City Manager Attachment: 1. Final Engineer's Report 4i1M MT. RESOLUTION NO. 2015 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, CONFIRMING THE DIAGRAM AND ASSESSMENTS FOR FISCAL YEAR 2015/2016 LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT 89-1 (PURSUANT TO THE LANDSCAPE AND LIGHTING ACT OF 1972) WHEREAS, maintenance of landscape improvements in roadways and drainage facilities is a very important service in our community. Landscaping, if well maintained, provides beautification and enhancement to the surroundings, along with a positive effect on property values; and WHEREAS, the annual assessments generated by the existing 1972 Act City of La Quinta Landscaping and Lighting District will fund the cost of providing installation, servicing, maintenance, and operation of landscaping, lighting and appurtenant facilities within the City of La Quinta that are exempt under provisions of Proposition 218 voted in by the California residents during the November 1996 election; and WHEREAS, on May 5, 2015, the City Council adopted the following resolutions: • Resolution No. 2015-013, approving the Preliminary Engineer's Report for Fiscal Year 2015/2016 in connection with Landscape and Lighting Assessment District 89-1. • Resolution No. 2015-014, declaring intention to levy annual assessments for construction, maintenance, and servicing landscape and lighting improvements within the boundaries of the territory included in the City-wide Landscape and Lighting Assessment District 89-1, and giving notice thereof; and WHEREAS, a Notice of a Public Hearing to Adopt a Resolution Confirming the Diagram and Assessments for Fiscal Year 2015/2016 Landscape and Lighting Assessment District 89-1 was published in The Desert Sun newspaper on May 20, 2015. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: SECTION 1. Pursuant to Chapter 3 of the Landscaping and Lighting Act of 1972, the City Council directed the City Engineer to prepare and file an annual report for Fiscal Year 2015/2016. 4i* Resolution No. 2015- Landscape and Lighting Assessment District 89-1 Adopted: June 2, 2015 Page 2 SECTION 2. The City Engineer filed an annual report on May 5, 2015, and the City Council adopted a Resolution of Intention to Levy and Collect Assessments within Landscape and Lighting Assessment District 89-1 for Fiscal Year 2015/2016 and set a Public Meeting/Hearing date of June 2, 2015 at the La Quinta City Council Chambers, 78-495 Calle Tampico, La Quinta, California. Notice of the Public Meeting/Hearing was given in the time and manner required by law. SECTION 3. On June 2, 2015, a Public Meeting/Hearing for which notice was given, was conducted at which every interested person was given an opportunity to object to the proposed assessment in writing or orally, and the City Council has considered each protest. SECTION 4. On June 2, 2015, the City Council found that written protests against the proposed assessment had not been made by owners representing more than one-half of the area of the land to be assessed. SECTION 5. The City Council hereby confirms the diagram and assessment as set forth in the annual report of the Engineer of Work and hereby levies the assessment set forth for Fiscal Year 2015/2016. SECTION 6. The City Council authorizes and directs the City Clerk to (i) submit certified copies of this resolution to the County of Riverside and (ii) take such other and further actions as may be necessary and proper for the County Assessor to place this assessment on the tax roll. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held on this 2nd day of June 2015, by the following vote: AYES: NOES: ABSENT: ABSTAIN: LINDA EVANS, MAYOR City of La Quinta, California Wit Resolution No. 2015- Landscape and Lighting Assessment District 89-1 Adopted: June 2, 2015 Page 3 ATTEST: SUSAN MAYSELS, CITY CLERK City of La Quinta, California (CITY SEAL) APPROVED AS TO FORM: WILLIAM H. IHRKE, CITY ATTORNEY City of La Quinta, California , r`i 4Y ATTACHMENT 1 •U071mr, Street Lighting and Landscape District No. :' Intent r r, PublicHearing: 373 374 ENGINEER'S REPORT AFFIDAVIT CITY OF LA QUINTA Street Lighting and Landscape District No. 89-1 Riverside County, State of California This Report and the enclosed diagrams show the exterior boundaries of the District as they existed at the time of the passage of the Resolution of Intention. Reference is hereby made to the Riverside County Assessor's maps for a detailed description of the lines and dimensions of parcels within the District. The undersigned respectfully submits the enclosed Report as directed by the City Council. mm Dated this day of 2015. Willdan Financial Services Assessment Engineer On Behalf of the City of La Quinta Stacee Reynolds Senior Project Manager, District Administrationis CITY OF LA QUINTA STREET LIGHTING AND LANDSCAPE DISTRICT NO. 89-1 I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll thereto attached was filed with me on the day of 2015. BY: Susan Maysels, City Clerk City of La Quinta Riverside County, California I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll thereto attached, was approved and confirmed by the City Council of the City of La Quinta, California, on the day of , 2015. BY: Susan Maysels, City Clerk City of La Quinta Riverside County, California I HEREBY CERTIFY that the enclosed Assessment Roll was filed with the County Auditor of the County of Riverside, on the day of , 2015. BY: Susan Maysels, City Clerk City of La Quinta Riverside County, California 41M IIII IIII IIII IIII IIIICGII IIII IIII IIII" IIIL"" OVERVIEW A. INTRODUCTION COMPLIANCEB. • HISTORICALC. -•LEGISLATION DESCRIPTION OF DISTRICT IMPROVEMENTSA. DISTRICT BOUNDARIES AND SPECIFIC AREAS OF IMPROVEMENT 6 B. •. BY THE 1972 IMPROVEMENTSC. METHOD OF .•. • I Sm I wN 111 •1• • DISTRICTBUDGETS I m 377 /WILLDAN Financial Services /. OVERVIEW The City of La Quinta (the "City") annually levies and collects special assessments in order to provide and maintain the facilities, improvements and services within Street Lighting and Landscape District No. 89-1 (the "District"). The District was formed in 1989 pursuant to the Landscaping and Lighting Act of 1972 (the "1972 Act"), Part 2 of Division 15 of the Streets and Highways Code and authorizes the Agency to annually levy and collect assessments to maintain the services and improvements related thereto. This Engineer's Annual Levy Report (the "Report") describes the District, any changes to the District, and the proposed assessments for Fiscal Year 2015/2016. The proposed assessments are based on the estimated cost to maintain improvements that provide special benefit to properties assessed within the District. The various improvements within the District and the costs of those improvements are identified and budgeted separately, including expenditures, deficits, surpluses, revenues, and reserves. The word "parcel," for the purposes of this Report, refers to an individual property assigned its own Assessor Parcel Number ("APN") by the Riverside County Assessor's Office. The Riverside County Auditor/Controller uses Assessor Parcel Numbers and specific fund numbers on the tax roll to identify properties assessed for special district benefit assessments. Each parcel within the District is assessed proportionately for those improvements provided by the District and from which the parcel receives special benefit. Following consideration of public comments, written protests at a noticed public hearing and review of the Report, the City Council may order amendments to the Report or confirm the Report as submitted. Following final approval of the Report, and confirmation of the assessments, the Council may order the levy and collection of assessments for Fiscal Year 2015/2016 pursuant to the 1972 Act. In such case, the assessment information will be submitted to the County Auditor/Controller, and included on the property tax roll for each benefiting parcel for Fiscal Year 2015/2016. The District was formed in 1989 pursuant to the Landscaping and Lighting Act of 1972 (the "1972 Act"). As such, the City has determined that pursuant to California Constitutional Article MID Section 5 Subsection A the existing assessments are exempt from the substantive and procedural requirements of Proposition 218. Any new or increased assessments above the maximum assessment rates previously approved and levied by the City Council would be subject to both the substantive and procedural requirements of the Proposition. 2015/2016 LLD 89-1 Page 5 of 18 378 /WILLDAN Financial Services The assessments for the District provide a special benefit to the parcels assessed, and the City utilizes General Fund Revenues to fund improvements and services that are considered general benefit. This District was formed pursuant to the 1972 Act, which permits the establishment of assessment districts by cities for the purpose of providing for the maintenance of certain public improvements, which include the facilities existing within the District, as those improvements provide a special benefit to parcels. The City Council reviews the current and projected years' costs for the construction, operation, maintenance, and servicing of the District facilities and sets the assessment for the ensuing fiscal year, which runs between July 1 and June 30. DISTRICTA DESCRIPTION OF THE The boundaries of the District are coterminous with the boundaries of the City. The Diagram of the District showing the exterior boundaries has been submitted to the City Clerk at the City and is included by reference. As applicable or may be applicable to this District, the 1972 Act defines improvements to mean one or any combination of the following: • The installation or planting of landscaping. • The installation or construction of statuary, fountains, and other ornamental structures and facilities. • The installation or construction of public lighting facilities. • The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof, including, but not limited to, grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities. 2015/2016 LLD 89-1 Page 6 of 18 379 /WILLDAN Financial Services • The maintenance or servicing, or both, of any of the foregoing. • The acquisition of any existing improvement otherwise authorized pursuant to this section. Incidental expenses associated with the improvements including, but not limited to: • The cost of preparation of the report, including plans, specifications, estimates, diagram, and assessment; • The costs of printing, advertising, and the publishing, posting and mailing of notices; • Compensation payable to the County for collection of assessments; • Compensation of any engineer or attorney employed to render services; • Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements; • Any expenses incidental to the issuance of bonds or notes pursuant to Section 22662.5. • Costs associated with any elections held for the approval of a new or increased assessment. The 1972 Act defines "Maintain" or "maintenance" to mean furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including: • Repair, removal, or replacement of all or any part of any improvement. • Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury. • The removal of trimmings, rubbish, debris, and other solid waste. • The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. 2015/2016 LLD 89-1 Page 7 of 18 380 /WILLDAN Financial Services The District improvements are the operation, servicing and maintenance of landscaping, lighting and appurtenant facilities, including, but not limited to, personnel, electrical energy, water, materials, contracting services, and other items necessary for the satisfactory operation of these services described as follows: • Landscaping and Appurtenant Facilities include, but are not limited to, landscaping, planting, shrubbery, trees, irrigation systems, hardscapes, fixtures, sidewalk maintenance and appurtenant facilities, located within the public street rights -of -way, medians, trails, and dedicated street, drainage or sidewalk easements within the boundary of the District. • Lighting and Appurtenant Facilities include, but are not limited to, poles, fixtures, bulbs, conduits, equipment including guys, anchors, posts and pedestals, metering devices, controllers and appurtenant facilities as required to provide safety lighting and traffic signals within public street rights -of -way and easements within the boundaries of the District. • Maintenance is defined as the furnishing of services and materials for the operation and usual maintenance, operation and servicing of the landscaping, public lighting facilities and appurtenant facilities, including repair, removal or replacement of landscaping, public lighting facilities, or appurtenant facilities; providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; and the removal of trimmings, rubbish, debris and other solid waste. • Servicing is defined as the furnishing of water for the irrigation of the landscaping and the furnishing of electric current or energy, gas or other illuminating agent for the public lighting facilities, or for the lighting or operation of landscaping or appurtenant facilities. The plans and specifications for the improvements are on file in the office of the City Engineer and are by reference made a part of this report. The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements that include the 2015/2016 LLD 89-1 Page 8 of 18 381 /WILLDAN Financial Services construction, maintenance and servicing of public lights, landscaping and appurtenant facilities. The 1972 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value: "The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements." The formula used for calculating assessments in this District therefore reflects the composition of the parcels, and the improvements and services provided, to apportion the costs based on benefit to each parcel. Properties within the District boundary are found to derive a special benefit from the improvements provided by the District. These properties include single family residential, non-residential, vacant residential and non-residential, golf courses, agricultural and hillside conservation properties, vacant and remote non- residential and rural and estate residential properties. Special Benefits The method of apportionment (method of assessment) is based on the premise that each assessed parcel receives special benefit from the improvements maintained and funded by the assessments, specifically, landscaping and lighting improvements installed in connection with the development of these parcels. The desirability of properties within the District is enhanced by the presence of well - maintained landscaping and lighting improvements in close proximity to those properties. The annual assessments outlined in this Report are based on the estimated costs to provide necessary services, operation, administration, and maintenance required to ensure the satisfactory condition and quality of each improvement. The special benefits associated with the landscaping improvements are specifically: • Enhanced desirability of properties through association with the improvements. • Improved aesthetic appeal of properties within the District providing a positive representation of the area. • Enhanced adaptation of the urban environment within the natural 2015/2016 LLD 89-1 Page 9 of 18 382 /WILLDAN Financial Services environment from adequate green space and landscaping. • Environmental enhancement through improved erosion resistance, and dust and debris control. • Increased sense of pride in ownership of property within the District resulting from well -maintained improvements associated with the properties. • Reduced criminal activity and property -related crimes (especially vandalism) against properties in the District through well -maintained surroundings and amenities. • Enhanced environmental quality of the parcels by moderating temperatures, providing oxygenation and attenuating noise. The special benefits of street lighting are the convenience, safety, and security of property, improvements, and goods, specifically: • Enhanced deterrence of crime — an aid to police protection. • Increased nighttime safety on roads and highways. • Improved visibility of pedestrians and motorists. • Improved ingress and egress to and from property. • Reduced vandalism, damage to improvements or property, and other criminal acts. • Improved traffic circulation and reduced nighttime accidents and personal property loss. • Increased promotion of business during nighttime hours in the case of commercial properties. The preceding special benefits contribute to a specific enhancement and desirability of each of the assessed parcels within the District. Pursuant to the 1972 Act, the costs of the District may be apportioned by any formula or method that distributes the net amount to be assessed among the assessable parcels in proportion to the estimated special benefits to be received by each such parcel from the improvements. The special benefit formula used within the District should reflect the composition of the parcels - and the improvements and services provided therein - to apportion the costs based on estimated special benefit to each parcel. 2015/2016 LLD 89-1 Page 10 of 18 383 /WILLDAN Financial Services The cost to provide maintenance and service of the improvements within the District shall be equitably distributed among each assessable parcel based on the estimated special benefit received by each parcel. Equivalent Benefit Units To equitably spread special benefit to each parcel, it is necessary to establish a relationship between the various types of properties within the District and the improvements that benefit those properties. Each parcel within the District is assigned an Equivalent Benefit Unit ("EBU") factor that reflects its land use, size and development, or development potential. Parcels that receive special benefit from the various District improvements are proportionately assessed for the cost of those improvements based on their calculated EBU. The EBU method assessment for this District uses the Single Family Residential parcel as the basic unit of assessment. A Single Family Residential ("SFR") parcel equals one EBU. Every other land -use is assigned an EBU factor based on an assessment formula that equates the property's specific land -use and relative special benefits compared to the Single Family Residential parcel. The EBU method of apportioning special benefits is typically seen as the most appropriate and equitable assessment methodology for districts formed under the 1972 Act, as the benefits to each parcel from the improvements are apportioned as a function of land use type, size, and development. The following table provides a listing of land use types, the EBU factors applied to that land use and the multiplying factor used to calculate each parcel's individual EBU for each improvement provided in the District. During the formation of the District, a methodology was developed to calculate the EBUs for other residential and non-residential land use parcels, which are outlined below for reference. Every land use is assigned EBUs based on the assessment formula approved for the District. Parcels which have been determined to receive greater benefit than the SFR parcel are assigned more than 1 EBU and parcels that are determined to receive lesser benefit than SFR parcels are assigned less than 1 EBU as reflected in the Assessment Methodology. Exempt Parcels Single Family Residential Parcels Non -Residential Parcels Vacant Residential Parcels Vacant Non -Residential Parcels Golf Course Parcels Agricultural Parcels 0.0 1.0 per unit 5.0 per acre; 1.0 minimum 0.33 per unit 1.65 per acre for first 20 acres only 0.25 per acre; 1.0 minimum 2015/2016 LLD 89-1 Page 11 of 18 384 /WILLDAN Financial Services Hillside Conservative Zone Parcels 0.10 per acre Vacant & Remote Parcels 0.825 per acre for first 20 acres only Rural/Estate Residential 1.0 + 0.33 per acre in excess 1 acre Single -Family Residential The City's General Plan allows up to one acre of area for subdivided residential lots. The subdivided single family lot equal to or less than one acre in size is the basic unit for calculation of the benefit assessments. Parcels less than one acre in size zoned for single-family residential use are assessed one (1) EBU. Non -Residential The factor used for converting nonresidential is based on the average number of typical single-family residential lots of five per acre. Therefore, non-residential parcels will be assessed five (5) EBUs per acre with a minimum number per parcel of one (1) EBU. Vacant Residential Parcels defined as single family residential parcels less than one acre and having no structure will be assessed 33 percent (33%) of a single-family dwelling, or 0.33 EBU per parcel. Vacant Non -Residential Parcels not considered single family residential parcels less than one acre, and having no structure will be assessed based on acreage. The typical development in La Quinta occurs in increments of twenty (20) acres or less. The first twenty (20) acres of a Vacant Non -Residential parcel will be assessed at a rate of 33 percent (33%) of developed nonresidential properties, or 1.65 EBU per acre or any portion of an acre. The minimum number of EBUs per parcel is one (1) EBU. Any parcel of land greater than twenty (20) acres is considered open space and exempt from assessment until such time as parcel subdivision or development occurs. Golf Courses Properties identified as golf courses will be assessed a rate of 10 percent (10%) of the developed nonresidential properties, or 0.50 EBU per acre or any portion of an acre. The minimum number per parcel is one (1) EBU. Agricultural Properties identified as agricultural will be assessed a rate of 5 percent (5%) of developed nonresidential properties, or 0.25 EBU per acre or any portion of an acre. The minimum number per parcel is one (1) EBU. Hillside Conservation Parcels located in areas zoned Hillside Conservation per the City's Official Zoning Map will be assessed on the basis of allowable development within the 2015/2016 LLD 89-1 Page 12 of 18 385 /WILLDAN Financial Services Hillside Conservation Zone. The parcel will be assessed as one dwelling unit per ten (10) acres or 0.10 EBU per acre or any portion of an acre. Vacant and Remote Non -Residential Parcels (Annexation No. 9) Parcels not considered single family residential parcels less than one (1) acre and do not contain structures, will be assessed based on acreage. The City defines Vacant and Remote Non -Residential as parcels physically separated from City services and not readily able to develop due to difficult access and utility limitations. The land values are typically one half the value of other Vacant Non -Residential parcels because of the high cost of constructing appropriate access and utility infrastructures necessary. The Vacant and Remote Non - Residential parcels are assessed a rate of 0.825 EBUs per acre or portion thereof, for the first twenty (20) acres, with a minimum of one (1) EBU per parcel. Rural/Estate Residential Parcels of one acre or more in size, but having only one residential unit are identified as Rural/Estate Residential. These parcels will be assessed a rate of one (1) EBU for the first acre and 0.33 EBUs for each additional acre or portion of an acre. Exempt Property Publicly owned property and utility rights -of -way are exempt from assessment, as well as parcels of land shown on the County Assessor's records as Vacant Desert Land, Vacant Mountain Land, Agricultural Preserve and Public Utility owned land. This Report does not propose an increase in the District assessment rates for Fiscal Year 2015/2016 over or above the maximum rate established. The proposed rate per EBU for Fiscal Year 2015/2016 is the same rate assessed for Fiscal Year 2014/2015. The base assessment rate to be approved for Fiscal Year 2015/2016 is $35.60. The maximum assessment rate per EBU may not increase without a vote of the property owners in the District. Therefore, the assessment is proposed to remain at the maximum amount of $35.60 per EBU. This equates to total projected assessment revenue of $959,313. The City proposes the remaining $2,132,821 be funded through a General Fund contribution of $2,032,821 and $100,000 of revenue from CSA 152. DISTRICT The 1972 Act requires that a special fund be established and maintained for the revenues and expenditures of the District. Funds raised by assessment shall be used only for the purposes as stated herein. A contribution to the District by the City may be made to reduce assessments, as the City Council deems 2015/2016 LLD 89-1 Page 13 of 18 386 /WILLDAN Financial Services appropriate. The following describes the services and costs that are funded through the District, shown in the District Budgets. District Costs Personnel — Reflects relevant City Staff salaries, wages and benefits, and also includes Worker's Comp insurance, Stand -By, and Overtime labor. Contract Services — Includes contracted labor, such as the Riverside County Tax Roll Administration Fees, maintenance and repair of traffic signals, tree trimming, and security service. Rental Services — Reflects funds used for the purpose of uniform rental. Vehicle Operations — Includes the maintenance of fleet vehicles. Utilities — Includes the electric, telephone, and water services. Travel Training & Meetings — Reflects the funds used for the purposes of training and meetings. Information Technology — Includes computers, printers, and other related items and services. Operating Supplies — This item includes plant replacement, safety gear, field materials, and the materials used for the purposes of removing graffiti. Small Tools/Equipment — Includes non -capital small tools and equipment. District Administration — The cost for providing the coordination of District services and operations, response to public concerns and education, as well as procedures associated with the levy and collection of assessments. This item also includes the costs of contracting with professionals to provide any additional administrative, legal or engineering services specific to the District including any required notices, mailings or property owner protest ballot proceedings. For the purpose of estimating costs for the maintenance and servicing, actual costs are used where possible. However, where the improvements are new, or where actual maintenance experience is lacking, cost estimates will be used to determine costs. The Budget of estimated cost of operation, servicing, and maintenance for Fiscal Year 2015/2016 is summarized on the next page in Table 1. 2015/2016 LLD 89-1 Page 14 of 18 387 Financial Services Stand By Stand By Overtime Overtime Total Personnel Contract Annual Lighting & Landscape Report $18,000 $18,000 Services Civic Center Campus Lake Maintenance 10,000 10,000 Financial Services Admin. Fee 15,000 15,000 Undeveloped Parks PM10 Services Janitorial Services 16,000 16,000 Security Service - Corporation Yard 1,400 1,400 Total Contract Services $1,408,401 �NNNFRF­ml EMU, Mum Rental Services M Total Rental Services Park Equipment Facilities Charges $2503 $2,503 Vehicle Fleet Maintenance 7�400 Operations Facility & Equipment Depreciation 502,523 502,523 Total Operations HEM Travel Training & Meetings Total Travel Training & Meetings Information Technology Total Information Technology Safety Gear 600 600 Total Operating Supplies NONE Total Small Tools/Equipment EM, w, Total Landscape & Lighting Budget w N I rrgwWAZJM;z���� District Public Works Administration $67,236 $67236 Administration Citywide Administration 106,610 82:178 Total District Administration Total Landscape & Lighting Expenditures Less General Fund Contribution $2,032,821 Balance to Levy Levy Per EDU $35.60 2015/2010 LLD801 Page 15of18 /WILLDAN Financial Services The following information was obtained from the Riverside County Assessor's Secured Roll, Assessor's Parcel Maps, and the City's Planning Department. The land use categories were developed to classify the different land use types in the City. (1) The EBU count in this column reflects the total EBU count for the district. Whereas, for budget purposes, the EBU count in the previous table reflects only those parcels that are assessable (not exempt). (2) The difference in the "Balance to Levy" figure in the previous table and the land use classification proposed levy in this table is due to the Riverside County even penny requirement for each charged parcel. At the time of the Report there was an decrease in EBU assessed of 59.73 over the prior year estimates stated in the FY 2014/15 Engineer's Report. Actuals will be based on the final County Secured Roll for Fiscal Year 2015/2016. Differences are generally due to changes in County Land Use Classifications or Assessor Parcel Number changes. 2015/2016 LLD 89-1 Page 16 of 18 MR, /WILLDAN Financial Services IIII °' IIII IIII IIII IIII Ilf IIII III' IIII IIII"Ilf °IIII°°° S IIII IIII IIII IIII °IIII°°° IIII IlAGI�ZXVI The Boundary Diagrams for the original districts have previously been submitted to the Clerk of the City in the format required under the 1972 Act and are made part of this Report by reference. The parcel identification, lines and dimensions of each parcel within the District are those lines and dimensions shown on the Assessor Maps of Riverside County for the year in which this Report was prepared and is incorporated by reference and made part of this Report. The attached Landscape Maintenance Map displays the landscape maintenance areas within the City. 2015/2016 LLD 89-1 Page 17 of 18 Wit 4 Iliflll '! I, a i/ zMR ; CALLE ,0 , w TAMPICO J i,K 52ND AVENUE H cn z O cn w w UL UL w 54TH AVENUE 50TH AVENUE Mountain�Wew,C:C. /WILLDAN Financial Services IIII °' IIII IIII IIII IIII Ilf IIII C 0IIII IIII IIII ON II III IIII Parcel identification, for each lot or parcel within the District, shall be the parcel as shown on the Riverside County Assessor Parcel Maps and/or the Riverside County Secured Tax Roll for the year in which this Report is prepared. Non -assessable lots or parcels may include government owned land, public utility owned property, land principally encumbered with public right-of-ways or easements and dedicated common areas. These parcels will not be assessed. A listing of parcels within the District, along with the proposed assessment amounts, has been submitted to the City Clerk and, by reference, is made part of this Report. Upon approval of the Report and confirmation of the assessments, the assessment information will be submitted to the County Auditor/Controller, and included on the property tax roll in Fiscal Year 2015/2016. If the parcels or APNs within the District and referenced in this Report, are re -numbered, re -apportioned or changed by the County Assessor's Office after approval of the Report, the new parcel or APNs with the appropriate assessment amount will be submitted to the County Auditor/Controller. If the parcel change made by the County includes a parcel split, parcel merger or tax status change, the assessment amount submitted on the new parcels or APNs will be based on the method of apportionment and levy amount approved in this Report by the City Council. 2015/2016 LLD 89-1 Page 18 of 18 392 CITY / SA / HA / FA MEETING DATE: June 2, 2015 AGENDA CATEGORY: BUSINESS SESSION: ITEM TITLE: ADOPT RESOLUTION APPROVING FISCAL YEAR 2015/2016 THROUGH 2O19/2020 CAPITAL CONSENT CALENDAR: IMPROVEMENT PROGRAM STUDY SESSION: PUBLIC HEARING: 2 RECOMMENDED ACTION: Adopt a resolution approving the Fiscal Year 2015/2016 through 2019/2020 Capital Improvement Program. EXECUTIVE SUMMARY: • The Capital Improvement Program (CIP) is a five-year program that identifies, scopes, budgets, and schedules for capital projects such as street and park improvements, construction and upgrades to City buildings, and construction of major infrastructure projects such as bridges and interchanges. • The first year is titled "Capital Budget" and is based on existing fund balances and projected revenues. Upon adoption, the Capital Budget is then incorporated into the City's operating budget, and funds are appropriated for specific capital facilities, equipment and improvements. • Projects slated for subsequent years are approved on a planning basis only, and do not receive expenditure authority until they are incorporated into the Capital Budget. • Those projects designated as "Additional Projects" do not have identified funding sources through the term of the five-year program or, in the case of Development Impact Fee (DIF) funded projects, a long-term collection period is required to accumulate funds before the specified project is implemented. • A total of 22 projects are identified for Fiscal Year 2015/2016 with an estimated cost of $19.8 million. 395 FISCAL IMPACT: This Capital Budget funds nearly $19.8 million of capital project expenditures as follows: Source Unappropriated General Fund Reserves General Fund Operating Pone Proceed uimby Fungi Art in public places Fund Transportation DIF Measure A Transportation Fungi. Other project Specific Sources Arnount ,6 4„000 1,552„000 51.1001.000 ,620„000 50„000 1,7 11,420 1,105„500 ,004„818 TOTAL ' 19,797„7 8 Percent of Total 18.4 7.8 2 5.8 18. 0. 8.7 5.6 15.2 100% It should be noted that over 18 percent of the project funding is derived from unappropriated General Fund Reserves. BACKGROUND/ANALYSIS: On April 7, 2015, staff presented a slate of potential CIP projects and asked Council to rank each project individually. Attachment 1 is the ranking summary. The Monroe Street Rehabilitation Improvements and restriping of the Jefferson Street/Avenue 52 roundabout were added to the current year CIP with construction anticipated by this summer and fall. The proposed draft CIP was crafted based on the City Council's discussion as well as the summary ranking sheet, and includes the following projects by category: Fiscal Year 2015/2016 • Transportation o Eisenhower Drive Pavement Rehabilitation o Dune Palms Road Improvements (Blackhawk Way to channel) o Pavement Management Plan (Slurry Seal in north La Quinta) o New Traffic Signal - Jefferson Street at Dunbar Street • Parks and Facilities o North La Quinta Regional Skate and BMX Park o La Quinta Park Rest Room evacuation 394 o Parks and Facilities Security Systems o Jefferson Roundabout Art Piece Pedestal and Landscaping o Cove Trailhead Improvements Highlights of Proposed Next Four Fiscal Years (not funded with recommended action) • Water Efficiency o North La Quinta Turf Conversion (proposed $500,000 per year for four years) - per the Governor's mandate to reduce water usage, this project proposes to convert the parkway areas (Landscape and Lighting District) of north La Quinta to desert landscaping over a four-year period • Transportation o Fred Waring Pavement Repairs o Madison Street Widening (Avenue 52 to Avenue 54) o Highway 111 at La Quinta Center Drive (dual left turn lanes) o New Traffic Signal at Avenue 47 and Caleo Bay - this project may be needed in the future due to traffic demand from the development of the movie theater complex o Avenue 50 Bridge spanning the evacuation channel • Parks and Facilities o Convert Fritz Burns Skate Park to Tennis/Pickle Ball Courts - with the opening of the new North La Quinta Regional Skate and BMX Park, resident surveys indicate that more tennis/pickle ball is desired at this park o Convert La Quinta Park Skate Park to Basketball Courts - with the opening of the new North La Quinta Regional Skate and BMX Park, staff believes this space will be better utilized with basketball courts o Playground Equipment Replacement - Monticello, Velasco, Saguaro o Fritz Burns Pool Improvements In addition, placeholders have been created for drainage projects. These may be included in the next four years from the City's Focused Drainage Study, which is expected this fall, as well as for transportation improvement projects from the circulation study included in The Village Build Out Plan Environmental Impact Report. Additional Projects for Fiscal Year 2015/2016 In addition to the above listed projects, staff recommends the following projects be considered for inclusion in the Fiscal Year 2015/2016 CIP: 395 Water Efficiency Projects: 1) Civic Center Campus Parkway Turf Conversion - Per the Governor's mandate to reduce water usage, this project proposes to remove parkway turf and replace it with drought -tolerant desert landscape. The total budget for this project is $477,000 to be paid from the General Fund Operating Budget. 2) Madison Street Median Landscape Conversion - The Governor's mandate specifically prohibits watering ornamental turf in medians. The total budget for this project is $1,300,000 to be paid from General Fund Unappropriated Reserves. 3) Fritz Burns Park Parkway Turf Conversion - Per the Governor's mandate to reduce water usage, this project proposes to remove parkway turf and replace it with drought -tolerant desert landscape. The total budget for this project is $250,000 to be paid from General Fund Unappropriated Reserves. 4) Fire Station 70 Turf Conversion - This project proposes to remove turf and replace it with drought -tolerant desert landscape. The total budget for this project is $220,000 to be paid from the Fire Fund. Transportation Projects: 1) Eisenhower Drive at Montezuma Roundabout - This intersection requires greater traffic control and because of its configuration would be best improved by a five -way roundabout. Transportation DIF funding of $430,000 has been allocated for design and construction with the balance of the anticipated budget of $416,000 to be included in the DIF update this fall. 2) Miles Avenue Median Island Landscape Improvements - A combined $985,000 of Transportation DIF and Developer Funding are proposed to construct landscaped medians from Seeley Drive to Dune Palms Road using the landscape pallet from the Avenue 52/Calle Amigo landscape improvements pilot project. 3) Radar Driver Feedback Signs for Avenida Bermudas and Blackhawk Way - These traffic safety devices are proposed to be installed to reduce speeds on Avenida Bermudas and Blackhawk Way at a cost of $40,000 which has been included in the $275,000 budget for Citywide Traffic Signal Maintenance Improvements. Drainage Projects: 1) Calle Tampico at Avenida Bermudas Drainage Improvements - Staff proposes that $1.8 million of Unallocated General Fund Reserves be used to make improvements to drainage at this intersection as well as the existing retention 396 basin it drains to north of the intersection. Staff anticipates that the focused drainage study will verify the scope of this improvement. 2) Roudel Lane Drainage Improvements - Staff proposes up to $254,000 from Unallocated General Fund Reserves to make improvements to the storm drain that protects the homes at the intersection of Roudel Lane and Cortez Lane in north La Quinta. The project's scope will be fully developed after requirements for working in the Whitewater Channel are determined where the storm drain currently discharges through an unprotected pipe. Attachment 2 is the Final CIP Summary including recommended funding sources for each project. The CIP document, in its entirety, is available for review in the Public Works Department. Pursuant to the Government Code, the City Council must hold a public hearing on the CIP and consider its adoption by resolution at the public hearing. Upon its adoption, the 2015/2016 CIP will be incorporated into the City's Fiscal Year 2015/2016 Budget. ALTERNATIVES: After hearing public testimony, the City Council may direct staff to modify the Fiscal Year 2015/2016 through 2019/2020 CIP before final approval. Report prepared by: Ed Wimmer, P.E., Principal Engineer Report approved for submission by: Timothy R. Jonasson, P.E. Public Works Director/City Engineer Attachments: 1. City Council Project Ranking Summary 2. Fiscal Year 2015/2016 through 2019/2020 CIP Summary 399 goo RESOLUTION NO. 2015 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING THE FISCAL YEAR 2015/2016 THROUGH 2O19/2020 CAPITAL IMPROVEMENT PROGRAM WHEREAS, pursuant to Government Code Section 66002, the City of La Quinta ("City") is required to review and approve a Capital Improvement Program ("CIP"); and WHEREAS, the City is required to conduct a noticed public hearing for consideration and approval of the CIP; and WHEREAS, notice of the public hearing has been given pursuant to Government Code Section 65090, specifically, the required notice was published on May 20, 2015 in The Desert Sun; and WHEREAS, the CIP is a five-year planning instrument used by the City to identify capital improvement needs and to coordinate financing and timing of those needs in a manner that maximizes the return to the public; and WHEREAS, the CIP is a statement of the City's goals, objectives and priorities for a five-year plan and the financial commitments required to accomplish those objectives; and WHEREAS, the Fiscal Year 2015/2016 through 2019/2020 Program proposes approximately $37 million in improvement projects and $100 million of unfunded additional improvement projects over the five-year period, commencing on July 1, 2015 and ending June 30, 2020; and WHEREAS, the amount allocated from the CIP for first -year projects, called the "Capital Budget," proposes $19.8 million in improvements, as shown in Exhibit A, which is attached hereto and made a part of this Resolution; and WHEREAS, there is inadequate funding within the City's General Fund or from other sources to completely and fully fund the improvements identified within the Capital Budget; and WHEREAS, it would be in the best interest of the public to completely fund all improvements identified within the Capital Budget. NOW THEREFORE, BE IT RESOLVED, by the La Quinta City Council, as follows: SECTION 1. The above recitations are true and correct. 909 Resolution No. 2015 - Capital Improvement Program Adopted: June 2, 2015 Page 2 SECTION 2. The City Council hereby approves the Fiscal Year 2015/2016 through 2019/2020 Capital Improvement Program, approves the Capital Budget, and authorizes the inclusion of the Capital Budget into the Fiscal Year 2015/2016 operating budget, which appropriates funds for specific facilities, equipment and improvements. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held on this 2nd day of June 2015, by the following vote: AYES: NOES: ABSENT: ABSTAIN: LINDA EVANS, Mayor City of La Quinta, California ATTEST: SUSAN MAYSELS, CITY CLERK City of La Quinta, California (City Seal) APPROVED AS TO FORM: WILLIAM IHRKE, City Attorney City of La Quinta, California Exhibit A N c O i 00 N L T N L L 0u O O N Lo N L lV t'J .. 47 00000 O O O 00000 00 O ��CO LoM Lo I` I` Ln M N a� co co O E 7FD IOIO C co I co c: E LM U) O 0 i � O co � O U 3 I� N 0M M IOIO O� O0N O O 07 O Lo000 N CO M t c c � cn U O a� T a) �> Y 7 0- co E -a L — (6 m Z) co a) 02 E 7 C L1 Q C cn i p �t N O Lo O 0 N N O O O C cn cn co E2 � Lo CIO O Ln I- 0 WME oco Y J a co co 0 X 0 m o a� 2 E � a U) 2 O � Y O O U) U) 0- cn T = C Q O D o � � a) Q) _a C T(i co Fn L C 7 L C J O H co 01 co O Z d Z 1- 00 0) 0 O O 0 �t L0 L0 L0 IOIOIOIO J a 0 m y m 0 N ll9 0 C N O a� c O It o D i co O Y U I ti � (6 0 d � O O 76 m rn .N. O Li LL 0 �t L2 � O 0 N N ATTACHMENT 1 rOF Council Ranking of Potential CIP Projects This is the tabulation of all 5 of the Council ranking sheets. The Transportation Projects are ranked from 1 through 9: Project Description Raw Sum Overall Rank Eisenhower Drive Correct sink holes in 12 1 Repairs northbound No. 2 lane between Fernando and Coachella Monroe Street Remove and replace existing 13 2 (54 and 55) asphalt Avenue 52 at Retrofit roundabout from 2 17 3 Jefferson Street lanes to 1 lane in all Striping directions Modification Jefferson/Dunbar Install new signal for 18 4 Traffic Signal Esplanade/Heritage Palms (Indio) Fred Waring Reconstruct No. 1 lane in 23 5 Pavement Repairs westbound and all eastbound lanes from Washington to Palm Royale Avenue 50 Bridge Widen at evacuation channel 26 6 Dune Palms Road Widen road to match future 28 7 - (Blackhawk to bridge vehicular, golf cart/bike Whitewater and pedestrian improvements Channel) Madison Street Widen Madison from 2 to 4 28 7 (50 to 52) lanes including a new bridge over the canal at Ave. 50 Highway 111 at La Modify median and construct 31 8 Quinta Center dual left -turn lanes for Drive westbound Highway 111 MR, The Facilities and Parks Projects are ranked from 1 through 7: Project Description Raw Sum Overall Rank Park Facilities Install camera systems at the 5 1 Security Cameras Cove Oasis, City Hall, LQ Park, Fritz Burns Park, Library and Museum with central monitoring and real-time mobile device access North Skate Park Renovate the La Quinta Park 8 2 Improvements location with new concrete ramps and install new fencing Cove Trailhead Construct an entrance to the 12 3 top of the Cove trails with landscaping and signage Jefferson Construct pedestal for current 13 4 Roundabout Art and future art pieces Piece Pedestal Monticello Replace existing with modern, 18 5 Playground ADA compliant playground Replacement equipment with shade cover(s) Velasco Replace existing with modern, 21 6 Playground ADA compliant playground Replacement equipment with shade cover(s) Saguaro Replace existing with modern, 24 7 Playground ADA compliant playground Replacement equipment with shade cover(s) LQ Park Well Site Install turf on CVWD well site N/A N/A 111V OIOI0 c O O O c O 0 c N M (O C M V N c w O O O O NIM OION V N