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1
CITY COUNCIL AGENDA 2
DECEMBER 15, 2015
PLEDGE OF ALLEGIANCE
PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA
At this time, members of the public may address the City Council on any matter not listed on
the agenda. Please complete a "Request to Speak" form and limit your comments to three
minutes. The City Council values your comments; however in accordance with State law, no
action shall be taken on any item not appearing on the agenda unless it is an emergency item
authorized by GC 54954.2(b).
ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS
1. AMERICAN PUBLIC WORKS ASSOCIATION PRESENTATION
MAYOR EVANS WILL RECESS CITY COUNCIL MEETING AT 5:30 P.M. FOR THE OPEN HOUSE
MAYOR EVANS WILL RECONVENE THE CITY COUNCIL MEETING AT 6:30 P.M.
CONSENT CALENDAR
NOTE: Consent Calendar items are routine in nature and can be approved by one motion.
PAGE
1. APPROVE MINUTES OF DECEMBER 1, 2015
7
2. APPROVE DEMAND REGISTERS DATED NOVEMBER 13, 20 AND
DECEMBER 4, 2015
15
3. RECEIVE AND FILE FISCAL YEAR 2014/15 ART IN PUBLIC PLACES
ANNUAL REPORT
41
4. RECEIVE AND FILE FISCAL YEAR 2014/15 DEVELOPMENT PROJECT
FEE
51
5. SECOND READING AND ADOPTION OF ORDINANCE NO. 531 ADDING
CHAPTER 11.98 TO THE LA QUINTA MUNICIPAL CODE FOR
EMERGENCY ACCESS TO GATED COMMUNITIES BY LAW
ENFORCEMENT; AND MAKING A FINDING OF EXEMPTION UNDER THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT
65
6. APPROVE RECIPIENT FOR THE 2016 SENIOR INSPIRATION AWARD
PROGRAM
75
7. AUTHORIZE OVERNIGHT TRAVEL FOR ACCOUNTING MANAGER AND
ACCOUNT TECHNICIAN TO ATTEND INTERMEDIATE GOVERNMENTAL
ACCOUNTING TRAINING ON JANUARY 12-13, 2016 IN GARDEN
GROVE, CALIFORNIA
79
2
CITY COUNCIL AGENDA 3
DECEMBER 15, 2015
PAGE
8. APPROVE FINANCIAL AND COMPLIANCE REPORTS FOR
WASHINGTON STREET APARTMENTS FOR YEAR ENDED JUNE 30,
2015
81
9. ACCEPT PHASE I OF THE AMERICANS WITH DISABILITIES ACT
SPORTS COMPLEX AND YMCA FACILITY IMPROVEMENTS
117
10. ACCEPT PHASE II OF THE AMERICANS WITH DISABILITIES ACT
SPORTS COMPLEX AND YMCA FACILITY IMPROVEMENTS
121
11. ACCEPT $100,000 STATE FUNDING GRANT FROM THE
SUPPLEMENTAL LAW ENFORCEMENT SERVICES ACCOUNT FOR
FRONT LINE LAW ENFORCEMENT SERVICES, APPROVE LOCAL
EXPENDITURE PLAN, AND AUTHORIZE USE OF CARRYOVER BALANCE
125
12. RECEIVE AND FILE FIRST QUARTER FISCAL YEAR 2015/16 TREASURY
REPORTS FOR JULY, AUGUST AND SEPTEMBER 2015
129
13. APPROVE PROGRAM SUPPLEMENTAL AGREEMENT WITH CALIFORNIA
DEPARTMENT OF TRANSPORTATION AND FEDERAL HIGHWAYS
ADMINISTRATION RELATED TO WASHINGTON STREET
REHABILITATION IMPROVEMENTS
163
14. APPROVE PLANS, SPECIFICATIONS, AND ENGINEER’S ESTIMATE AND
ADVERTISE THE JEFFERSON ROUNDABOUT ART PIECE PEDESTAL
PROJECT FOR BID
177
15. APPROVE COOPERATIVE AGREEMENT WITH THE COUNTY OF
RIVERSIDE TO PROVIDE FIRE PROTECTION, FIRE PREVENTION,
RESCUE AND MEDICAL EMERGENCY SERVICES
183
16. APPROVE PLANS, SPECIFICATIONS, AND ENGINEER’S ESTIMATE AND
ADVERTISE THE FRITZ BURNS PARK PARKWAY AND MEDIAN TURF
CONVERSION IMPROVEMENTS FOR BID
205
17. APPROVE PLANS, SPECIFICATIONS, AND ENGINEER’S ESTIMATE AND
ADVERTISE THE CIVIC CENTER CAMPUS AND FIRE STATION 70 TURF
CONVERSION IMPROVEMENTS FOR BID
209
18. APPROPRIATE FUNDS FROM COMMUNITY DEVELOPMENT BLOCK
GRANT AND AWARD CONTRACT TO ROADWAY ENGINEERING &
CONTRACTING, INC. TO CONSTRUCT THE MISCELLANEOUS PARKS
AMERICANS WITH DISABILITIES IMPROVEMENTS PROJECT
215
3
CITY COUNCIL AGENDA 4
DECEMBER 15, 2015
PAGE
19. APPROVE PURCHASE OF NETWORK FIREWALL AND NETWORK
SWITCHES FROM CISCO SYSTEMS, INC. FOR SCHEDULED
REPLACEMENT OF INFORMATION TECHNOLOGY NETWORK
INFRASTRUCTURE
223
BUSINESS SESSION
1. RECEIVE AND FILE COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2015
227
2. INTRODUCE FOR FIRST READING AN ORDINANCE ADDING CHAPTER
5.90 TO THE LA QUINTA MUNICIPAL CODE TO PROHIBIT CANNABIS
RELATED USES AND COMMERCIAL CANNABIS ACTIVITIES, AND
MAKING A FINDING OF EXEMPTION UNDER THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT [ORDINANCE 532]
421
STUDY SESSION
1. DISCUSSION OF CITY ORGANIZATION PLAN
433
2. SENATE BILL 107 - SUCCESSOR AGENCY WIND-DOWN 443
PUBLIC HEARINGS – NONE
DEPARTMENTAL REPORTS
1. CITY MANAGER – LA QUINTA PARK 449
2. CITY ATTORNEY - AUTHORITY FOR CONTRACTING FOR INVESTMENTS
OF CITY FUNDS
451
3. CITY CLERK - UPCOMING EVENTS AND CITY CALENDAR 471
4. COMMUNITY DEVELOPMENT
A. DEPARTMENT REPORT – OCTOBER/NOVEMBER 2015 475
B. COACHELLA VALLEY WIND UP - SAXONY CONVENTION CENTER 479
C. DEVELOPMENT CODE TUNE UP - UPDATE 483
D. CODE COMPLIANCE AND COMMUNITY OUTREACH 489
5. COMMUNITY SERVICES – DEPARTMENT REPORT – NOVEMBER 2015 497
6. PUBLIC WORKS – DEPARTMENT REPORT – NOVEMBER 2015 503
MAYOR’S AND COUNCIL MEMBER’S ITEMS
REPORTS AND INFORMATIONAL ITEMS
1. CVAG COACHELLA VALLEY CONSERVATION COMMISSION (Evans)
4
CITY COUNCIL AGENDA 5
DECEMBER 15, 2015
2. CVAG ENERGY & ENVIRONMENTAL RESOURCES COMMITTEE (Evans)
3. CVAG EXECUTIVE COMMITTEE (Evans)
4. GREATER PALM SPRINGS CONVENTION & VISITORS BUREAU (Evans)
5. LEAGUE OF CALIFORNIA CITIES DELEGATE (Evans)
6. 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. CVAG PUBLIC SAFETY COMMITTEE (Osborne)
13. DESERT SANDS UNIFIED SCHOOL DISTRICT COMMITTEE (Osborne & Franklin)
14. IID ENERGY CONSUMERS’ ADVISORY COMMITTEE (Osborne)
15. EAST VALLEY COALITION (Osborne)
16. ANIMAL CAMPUS COMMISSION (Peña)
17. CHAMBER OF COMMERCE INFO EXCHANGE COMMITTEE (Peña)
18. CVAG VALLEY-WIDE HOMELESSNESS COMMITTEE (Peña)
19. RIVERSIDE COUNTY TRANSPORTATION COMMISSION (Radi)
20. CVAG TRANSPORTATION COMMITTEE (Radi)
21. COACHELLA VALLEY UNIFIED SCHOOL DISTRICT COMMITTEE (Franklin & Radi)
22. PALM SPRINGS AIRPORT COMMISSION 511
ADJOURNMENT
The regular meeting of January 5, 2016 has been cancelled.
The next regular meeting of the City Council will be held on January 19, 2016
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 December 11, 2015.
DATED: December 11, 2015
SUSAN MAYSELS, City Clerk
City of La Quinta, California
5
CITY COUNCIL AGENDA 6
DECEMBER 15, 2015
Public Notices
The La Quinta City Council Chamber is handicapped accessible. If special equipment is
needed for the hearing impaired, please call the City Clerk’s office at 777-7103, twenty-
four (24) hours in advance of the meeting and accommodations will be made.
If special electronic equipment is needed to make presentations to the City Council,
arrangements should be made in advance by contacting the City Clerk’s office at 777-
7103. A one (1) week notice is required.
If background material is to be presented to the Councilmembers during a City Council
meeting, please be advised that eight (8) copies of all documents, exhibits, etc., must
be supplied to the City Clerk for distribution. It is requested that this take place prior to
the beginning of the meeting.
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.
6
CITY COUNCIL MINUTES 1
DECEMBER 1, 2015
CITY COUNCIL
MINUTES
TUESDAY, DECEMBER 1, 2015
A regular meeting of the La Quinta City Council was called to order at 3:00 p.m. by
Mayor Evans.
PRESENT: Councilmembers Franklin, Osborne, Peña, Radi, Mayor Evans
ABSENT: None
PUBLIC COMMENT ON MATTERS NOT ON AGENDA – None
CONFIRMATION OF AGENDA
City Manager Spevacek pulled Business Session Item No. 2 and will reschedule the
item for the December 15, 2015 Council meeting. Council concurred.
CLOSED SESSION
1.PUBLIC EMPLOYEE PERFORMANCE EVALUATION SECOND QUARTERLY
REVIEW) PURSUANT TO GOVERNMENT CODE SECTION 54957, COUNCIL
APPOINTED POSITION – CITY MANAGER
COUNCIL RECESSED TO CLOSED SESSION AT 3:02 P.M.
MAYOR EVANS RECONVENED THE CITY COUNCIL MEETING AT 4:08 P.M. WITH ALL
MEMBERS PRESENT.
REPORT ON ACTION(S) TAKEN IN CLOSED SESSION:
City Attorney Ihrke reported that no actions were taken in closed session that require
reporting pursuant to Government Code section 54957.1 (Brown Act)
Councilmember Osborne led the audience in the pledge of allegiance.
PUBLIC COMMENT ON MATTERS NOT ON AGENDA
PUBLIC SPEAKER: Courtney Bateman, Indio – Ms. Bateman explained the benefits of
medical marijuana and the convenience to La Quinta residents in need to have
discreet home delivery available. She requested that the Council refrain from
prohibiting delivery within the City when it considers a new ordinance on cannabis.
CONSENT: 1
7
CITY COUNCIL MINUTES 2
DECEMBER 1, 2015
PUBLIC SPEAKER: Elyse Del Francia, La Quinta – Ms. Del Francia explained the benefits
of cannabis to Parkinson’s Disease patients like her husband, who found no relief from
constant shaking until he tried cannabis.
ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS
1. PROCLAMATION FOR RETIRING FIRE BATTALION CHIEF ALEX GREGG
Mayor Evans presented a proclamation to Chief Gregg.
2. PRESENTATION OF VETERAN’S DAY CERTIFICATE TO HOWARD HASSETT
Mayor Evans and Councilmembers presented the certificate.
CONSENT CALENDAR
1. APROVE MINUTES OF NOVEMBER 17, 2015
2. ACCEPT FISCAL YEAR 2015/16 SLURRY SEAL PROGRAM, PAVEMENT
MANAGEMENT PLAN STREET IMPROVEMENTS PROJECT
MOTION – A motion was made and seconded by Councilmembers Radi/Peña to
approve the Consent Calendar as recommended. Motion passed unanimously.
BUSINESS SESSION
1. APPROVE MEMORANDUM OF UNDERSTANDING AND AGREEMENT FOR
PURCHASE AND SALE OF PROPERTY WITH THE OLD TOWN ARTISAN STUDIO
Assistant to City Manager Escobedo presented the staff report, which is on file in the
City Clerk’s Office.
PUBLIC SPEAKER: Linda Baughman, Executive Director, Old Town Artisan Studio – Ms.
Baughman provided the Studio’s mission and described the proposed building and
uses.
Councilmembers discussed several agreement terms; proposed tenants for second
floor; position of graffiti wall; importance of art collaboration; the Studio’s 501(C)(3)
status, and; the benefit to La Quinta of having this facility.
MOTION – A motion was made and seconded by Councilmembers Franklin/Radi to
approve the memorandum of understanding and agreement for purchase and sale of
property with the Old Town Artisan Studio as recommended. Motion passed
unanimously.
8
CITY COUNCIL MINUTES 3
DECEMBER 1, 2015
2. pulled and rescheduled for the December 15, 2015 meeting >>> INTRODUCE FOR
FIRST READING AN ORDINANCE ADDING CHAPTER 5.90 TO THE LA QUINTA
MUNICIPAL CODE TO PROHIBIT CANNABIS RELATED USES AND COMMERCIAL
CANNABIS ACTIVITIES, AND MAKING A FINDING OF EXEMPTION UNDER THE
CALIFORNIA ENVIRONMENTAL QUALITY
3. INTRODUCE FOR FIRST READING AN ORDINANCE ADDING CHAPTER 11.98 TO
THE LA QUINTA MUNICIPAL CODE FOR EMERGENCY ACCESS TO GATED
COMMUNITIES BY LAW ENFORCEMENT; AND MAKING A FINDING OF
EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
[ORDINANCE NO. 531]
City Attorney Ihrke presented the staff report, which is on file in the City Clerk’s Office.
Councilmembers gained clarification on operational details from Assistant Police Chief
Walton.
MOTION – A motion was made and seconded by Councilmembers Osborne/Peña to
take up Ordinance No. 531 by title and number only and waive further reading.
Motion passed unanimously.
City Clerk Maysels read the ordinance title into the record:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA,
CALIFORNIA, ADDING CHAPTER 11.98 TO THE LA QUINTA MUNICIPAL
CODE RELATING TO EMERGENCY ACCESS TO GATED COMMUNITIES BY
LAW ENFORCEMENT
MOTION – A motion was made and seconded by Councilmembers Osborne/Peña to
introduce Ordinance No. 531 at first reading. Motion passed unanimously.
MOTION – A motion was made and seconded by Councilmembers Osborne/Peña to
find that the adoption of Ordinance No. 531 is exempt under the California
Environmental Quality Act pursuant to Sections 15061(b)(3) and 15378 of Title 14 of
the California Code of Regulations. Motion passed unanimously.
4. SELECT A MAYOR PRO TEMPORE TO SERVE ONE YEAR
MOTION – A motion was made and seconded by Councilmembers Franklin/Osborne to
select Councilmember Peña to serve as Mayor Pro Tempore for a one-year term.
Motion passed unanimously.
9
CITY COUNCIL MINUTES 4
DECEMBER 1, 2015
5. ANNUAL COUNCIL APPOINTMENTS TO SERVE ON OUTSIDE AGENCIES FOR 2016
MOTION – A motion was made and seconded by Councilmembers Franklin/Osborne to
approve the appointments made and accepted by all Councilmembers as noted on
Attachment 1 to these minutes. Motion passed unanimously.
6. ADOPT RESOLUTION TRANSFERING AND ACCEPTING PROPERTY WITH THE LA
QUINTA HOUSING AUTHORITY [RESOLUTION 2015-057]
Councilmember Peña recused himself and left the dais due to this project’s
proximity to his property.
Assistant to City Manager Escobedo presented the staff report, which is on file in the
City Clerk’s Office.
MOTION – A motion was made and seconded by Councilmembers Franklin/Radi to
adopt a resolution authorizing the City Manager to transfer and accept property with
the La Quinta Housing Authority. Motion passed: ayes 4, noes 0, absent 1 (Peña)
Councilmember Peña returned to the dais for the remainder of the meeting.
7. RECEIVE AND FILE FISCAL YEAR 2014/15 GENERAL FUND YEAR-END BUDGET
REPORT
Finance Director Conrad presented the staff report, which is on file in the City Clerk’s
office.
MOTION – A motion was made and seconded by Councilmembers Osborne/Franklin to
receive and file the Fiscal Year 2014/15 general fund year-end budget report. Motion
passed unanimously.
STUDY SESSION – None
PUBLIC HEARINGS
1. ADOPT RESOLUTION APPROVING USE OF FISCAL YEAR 2016/2017
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS (CDBG) AND AUTHORIZE
CITY MANAGER TO SUBMIT APPLICATIONS TO RIVERSIDE COUNTY ECONOMIC
DEVELOPMENT AGENCY [RESOLUTION 2015-058]
Housing Coordinator Triplett presented the staff report, which is on file in the City
Clerk’s Office.
10
CITY COUNCIL MINUTES 5
DECEMBER 1, 2015
Councilmembers Franklin and Osborne disclosed they are members of the Boys’
and Girls’ Club Board of Directors. City Attorney Ihrke noted that since they are
unpaid, there is no conflict of interest in voting on this item.
PUBLIC HEARING DECLARED OPEN BY MAYOR EVANS AT 5:37 P.M.
PUBLIC SPEAKER: Jim Ducatte, CEO of the Boys’ & Girls’ Club Foundation (Club) – Mr.
Ducatte explained how the Club would use the CDBG funds and expressed his
appreciation to the Council for its support since the Club’s inception in La Quinta.
PUBLIC HEARING DECLARED CLOSED BY MAYOR EVANS AT 5:41 P.M.
Councilmembers expressed concern that County and Federal CDBG funding has been
steadily decreasing; noted the City’s long history of support for the Club starting with
land allocation; and expressed their full support for the Club’s ongoing mission.
MOTION – A motion was made and seconded by Councilmembers Franklin/Radi to
adopt Resolution No. 2015-058 entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA,
ADOPTING PROPOSALS, AND AUTHORIZING THE CITY MANAGER TO SUBMIT
APPLICATIONS FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS FOR
FISCAL YEAR 2016/2017
Motion passed unanimously.
DEPARTMENT REPORTS
Department reports are on file in the City Clerk’s Office.
4B. COACHELLA VALLEY WIND UP – SAXONY CONVENTION CENTER
Planning Manager Perez presented the department report.
Councilmembers discussed parking; noise control; ticket sales, and; public safety.
PUBLIC SPEAKER: Martin Dolemo, Saxony Group LP, Palm Desert– Mr. Dolemo stated
that ticket sales would be higher if the City would clearly state that the use is an
approved one, and Saxony is simply going through the formality of getting a
Temporary Use Permit. He noted that the Coachella Valley Wind Up event is only the
first of many for this convention center, which will eventually include a 375-room
hotel.
MAYOR’S AND COUNCILMEMBERS’ ITEMS
Councilmember Radi reported on the La Quinta High School Culinary Academy
luncheon for approximately 50 First Responders.
11
CITY COUNCIL MINUTES 6
DECEMBER 1, 2015
Councilmember Osborne requested that the City’s lobbyist firm be asked to work on a
solution to the loss of sales tax due to internet sales, perhaps teaming up with other
cities to address this matter with the Legislature.
Councilmember Peña asked that staff use text messages to contact Councilmembers
with emergency alerts rather than email, the second best method would be a phone
call. Councilmembers concurred.
Councilmember Peña announced that a major national B-B-Q chef event will be held
at the La Quinta Resort and requested that staff add the event to the City’s website
and other promotions.
Mayor Evans complemented organizers of the ceremony for the dedication of Fire
Station No. 32 in memory of Christopher Douglas; reported on the Desert Classic
Charities luncheon where almost $1 million was distributed to area charities; provided
updates on community outreach meetings; and encouraged all to attend the Mayor’s
luncheon and the Block Party and Christmas Tree lighting.
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
La Quinta’s representative for 2015, Councilmember Franklin, reported on her
participation in the following organizations’ meetings:
COACHELLA VALLEY MOUNTAINS CONSERVANCY
SUNLINE TRANSIT AGENCY
DESERT SANDS UNIFIED SCHOOL DISTRICT
ADJOURNMENT
There being no further business, a motion was made and seconded by
Councilmembers Peña/Radi to adjourn at 6:24 p.m. Motion passed unanimously.
Respectfully submitted,
SUSAN MAYSELS, City Clerk
City of La Quinta, California
Attachment: 2016 Council Appointments to Outside Agencies
12
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t
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M
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M
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d
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m
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Me
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r
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W
e
d
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s
d
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t
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n
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Me
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:
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Me
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s
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/
R
a
d
i
ATTACHMENT 1 13
Co
a
c
he
ll
a
V
a
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y
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a
t
e
r
D
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o
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De
s
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l
as
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C
h
ar
i
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u
nd
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n
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[
d
a
t
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T
B
D
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r
Me
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Pr
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2
0
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y
2
w
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k
s
;
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e
d
n
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s
d
a
y
@
4
p
Me
m
b
e
r
s
:
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a
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i
&
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b
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r
n
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Al
t
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n
a
t
e
:
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e
ñ
a
Gr
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t
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t
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n
&
V
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s
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o
r
s
B
u
r
e
a
u
*
4 th
F
r
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d
a
y
o
f
J
a
n
u
a
r
y
2
0
1
6
3 rd
F
r
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d
a
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f
M
a
r
c
h
,
M
a
y
,
J
u
n
e
,
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p
t
,
N
o
v
a
t
8
a
Me
m
b
e
r
:
M
a
y
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r
E
v
a
n
s
Al
t
e
r
n
a
t
e
:
R
o
b
e
r
t
R
a
d
i
II
D
E
n
e
r
g
y
C
o
n
s
u
m
e
r
s
’
A
d
v
i
s
o
r
y
C
o
m
m
i
t
t
e
e
1 st
M
o
n
d
a
y
o
f
e
a
c
h
m
o
n
t
h
a
t
6
p
Me
m
b
e
r
:
L
e
e
O
s
b
o
r
n
e
(
e
x
p
.
D
e
c
2
0
1
8
)
Me
m
b
e
r
:
c
i
t
i
z
e
n
r
e
p
M
a
r
k
W
e
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e
r
(
e
x
p
.
De
c
2
0
1
6
)
Al
t
e
r
n
a
t
e
:
R
o
b
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r
t
R
a
d
i
Ja
c
q
u
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l
i
n
e
C
o
c
h
r
a
n
R
e
g
i
o
n
a
l
A
i
r
p
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t
A
u
t
h
o
r
i
t
y
*
On
e
m
e
e
t
i
n
g
p
e
r
q
u
a
r
t
e
r
–
a
f
t
e
r
n
o
o
n
m
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e
t
i
n
g
[i
n
2
0
1
6
m
e
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t
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n
g
s
a
r
e
1
/
2
0
,
4
/
2
0
,
7
/
2
0
,
1
0
/
1
9
]
Me
m
b
e
r
:
K
r
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s
t
y
F
r
a
n
k
l
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Al
t
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n
a
t
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o
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a
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–
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An
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&
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m
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n
2
0
1
6
–
L
o
n
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B
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a
c
h
–
M
a
y
5
-
7
]
Me
m
b
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:
M
a
y
o
r
E
v
a
n
s
Al
t
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r
n
a
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v
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r
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T
r
a
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p
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t
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m
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n
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p
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p
p
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i
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t
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d
b
y
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v
e
r
y
c
i
t
y
]
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W
e
d
n
e
s
d
a
y
o
f
e
a
c
h
m
o
n
t
h
a
t
9
a
Me
m
b
e
r
:
R
o
b
e
r
t
R
a
d
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Al
t
e
r
n
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t
e
:
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o
h
n
P
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ñ
a
So
.
C
a
l
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f
.
A
s
s
o
c
i
a
t
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f
G
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v
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m
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n
t
s
An
n
u
a
l
R
e
g
i
o
n
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l
C
o
n
f
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r
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n
c
e
&
G
e
n
e
r
a
l
A
s
s
e
m
b
l
y
[i
n
2
0
1
6
,
i
t
i
s
s
c
h
e
d
u
l
e
d
f
o
r
M
a
y
5
-
6
]
De
l
e
g
a
t
e
:
M
a
y
o
r
E
v
a
n
s
Al
t
e
r
n
a
t
e
:
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o
b
e
r
t
R
a
d
i
Su
n
l
i
n
e
T
r
a
n
s
i
t
A
g
e
n
c
y
*
4 th
We
d
n
e
s
d
a
y
o
f
e
a
c
h
m
o
n
t
h
a
t
1
2
p
[i
n
2
0
1
6
,
n
o
m
e
e
t
i
n
g
s
i
n
A
u
g
u
s
t
o
r
N
o
v
e
m
b
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r
]
Me
m
b
e
r
:
K
r
i
s
t
y
F
r
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k
l
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t
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a
t
e
:
R
o
b
e
r
t
R
a
d
i
14
City of La Quinta
CITY COUNCIL MEETING: December 15, 2015
STAFF REPORT
AGENDA TITLE: APPROVE DEMAND REGISTERS DATED NOVEMBER 13, 20, AND DECEMBER
4, 2015
RECOMMEDATION
Approve demand registers dated November 13, 20 and December 4, 2015.
EXECUTIVE SUMMARY None.
FISCAL IMPACT
Demand of Cash:
-- City $ 1,730,743.66
-- Successor Agency of RDA $ 4,256.00
-- Housing Authority $ 4,088.50
-- Housing Authority Commission $ 0.00
$ 1,739,088.16
BACKGROUND/ANALYSIS
Between City Council meetings, routine bills and payroll must be paid. Attachment 1
details the weekly demand registers from Novermber 7 through December 4, 2015.
Warrants Issued:
109005 - 109062} $ 293,664.58
109063 - 109176} $ 242,450.87
109177 - 109299} $ 565,460.72
Voids} $ (9,328.00)
Wire Transfers} $ 263,312.84
Payroll Check No. 37073 and Direct Deposit} $ 306,926.68
Payroll Tax Transfers} $ 76,600.47
$ 1,739,088.16
In the amounts listed above, stale dated Check No. 106793 was voided and re-issued.
The most significant expenditures on the demand registers listed above are as follows:
Vendor: Account Name: Amount: Purpose:
Matich Corporation Construction $ 196,650.00 Monroe St. Rehab.
PSOMAS Inc Construction $ 79,072.00 Sep-Oct Pavement Prgm
CVAG Membership Dues $ 48,543.00 FY 15/16 Membership
CONSENT CALENDAR ITEM NO. 2
15
Kirkpatrick Landscaping Technical $ 43,261.37 Nov. Landscape Maint.
Riverside Sheriff Dept. Sheriff $ 39,032.00 FY 15/16 Cal-ID
Membership Assesment
Conserve Landcare Technical $ 38,845.25 Nov. Landscape Maint.
Burrtec Waste & Recycle Waste Mgmt. $ 37,934.73 Property Tax
New Construciton Solutions Construction $ 36,670.00 ADA Improvements
Rutan & Tucker Various $ 35,542.15 Sep. Legal Fees
Wire Transfers: Eight wire transfers totaled $263,312.84. Of this amount, $210,629.46
was to Landmark for golf course management and $34,899.26 to CalPERS for retirement
costs (see Attachment 2 for a full listing).
ALTERNATIVES
City Council may approve, partially approve, or reject the demand registers.
Prepared by: Sandra Mancilla, Account Technician
Approved by: Rita Conrad, Finance Director
Attachments: 1. Demand Registers
2. Wire Transfers
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City of La Quinta
CITY COUNCIL MEETING: December 15, 2015
STAFF REPORT
AGENDA TITLE: RECEIVE AND FILE FISCAL YEAR 2014/15 ART IN PUBLIC PLACES ANNUAL
REPORT
RECOMMENDATION
Receive and file the Fiscal Year 2014/15 Art in Public Places Annual Report.
EXECUTIVE SUMMARY
Per the Charter and Municipal Code, the City must expend or commit fees from the
Art in Public Places (APP) program within two years of their receipt, must account
for them in a separate fund, and must annually review administrative expenses.
Administrative expenses are limited to the lesser of $25,000 or five percent of the
total funds in the account as of July 1 of any year.
Attachment 1 presents the required analysis; the City has complied with the time
limit for expenditure of fees and there are no findings to report.
FISCAL IMPACT None.
BACKGROUND/ANALYSIS
Charter and Municipal Code. Annually, the City
must demonstrate that it has complied with the following:
A determination whether or not the fees have been committed for use within two
years of collection. Fees may be used for:
The cost of public art and its installation;
The cost to purchase or lease art sites;
Waterworks, landscaping, lighting and other objects, which are an integral
part of the artwork;
Frames, mats, pedestals and other objects necessary for the proper
presentation of the artwork;
Walls, pools, landscaping or other architectural or landscape architectural
elements necessary for the proper aesthetic and structural placement of
the artwork;
Maintaining and repairing artwork;
Administrative expenses to otherwise implement the APP program;
CONSENT CALENDAR ITEM NO. 3
41
Endowments; and
Art replacement.
Review administrative expenses to ensure they were reasonably assessed to
implement this program and administrative expenses do not exceed five percent
of the total funds in the account on July 1 of any year or $25,000 in any fiscal year.
In the event that the fees have not been committed for the aforementioned uses, the
fees shall be returned to the person or entity that paid them or disbursed in any other
manner permitted by law.
Staff has analyzed APP fund revenues and expenditures, which disclosed no
reimbursements are due contributors and there were no excess administrative costs.
During 2014/15, the APP funds were used to purchase the following Civic Center art
pieces:
Dennis Nagatani - Desert Elements
Darrell Driver-Rider Series
A payment was also made toward the Seeley roundabout sculpture.
Staff provided the report and attachment to the Desert Valley Builders Association on
November 12, 2015 pursuant to their written request.
ALTERNATIVES
As the report is a requirement of the Municipal Code, staff does not recommend an
alternative action.
Prepared by: Rita Conrad, Finance Director
Approved by: Frank J. Spevacek, City Manager
Attachment: 1. APP Financial Analysis
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ATTACHMENT 1
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City of La Quinta
CITY COUNCIL MEETING: December 15, 2015
STAFF REPORT
AGENDA TITLE: RECEIVE AND FILE FISCAL YEAR 2014/15 DEVELOPMENT PROJECT FEE
RECOMMENDATION
Receive and file the Fiscal Year 2014/15 Development Project Fee Report.
EXECUTIVE SUMMARY
Development Impact Fees (DIF) are imposed on new construction to help offset
impacts created by new development on City facilities and infrastructure.
The State Mitigation Fee Act requires the City to annually report on the receipt and
expenditure of DIF for the last five years within 180 days of the close of the fiscal
year.
The City must use, or pledge to use, the developer fees on City facilities and
infrastructure within five years of receipt, or present findings if that was not the
case.
Staff has completed the required analysis (Attachment 1) and in all cases the City
has complied with the time limit for fees expenditure.
FISCAL IMPACT None.
BACKGROUND/ANALYSIS
The City has three developer project fees subject to State requirements: Infrastructure,
Quimby, and DIF. Annually, the City must report on the following:
Brief description of the type of fee in the account or fund;
Amount of the fee;
Beginning and ending balance of the account or fund;
Amount of fees collected and interest earned;
Each public improvement on which fees were expended, the amount of
expenditures, and total percentage of the cost funded with fees;
Approximate construction start date of the public improvement if the local agency
determines that sufficient funds have been collected to complete financing;
Description of each interfund transfer or loan made from the fund, including the
public improvement being funded.
CONSENT CALENDAR ITEM NO. 4
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The City must also report payments received pursuant to development agreements
entered into after January 1, 2004. A schedule of development agreement payments
received for 2014/15 is attached (Attachment 2).
ALTERNATIVES
As the report is required by the State, staff does not recommend an alternative.
Prepared by: Rita Conrad, Finance Director
Approved by: Frank J. Spevacek, City Manager
Attachments: 1. Development Project Fee Report
2. Development Agreement Report
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City of La Quinta
CITY COUNCIL MEETING: December 15, 2015
STAFF REPORT
AGENDA TITLE: SECOND READING AND ADOPTION OF ORDINANCE NO. 531 ADDING
CHAPTER 11.98 TO THE LA QUINTA MUNICIPAL CODE FOR EMERGENCY ACCESS TO GATED
COMMUNITIES BY LAW ENFORCEMENT; AND MAKING A FINDING OF EXEMPTION UNDER
THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
RECOMMENDATION
Adopt Ordinance No. 531 on second reading.
EXECUTIVE SUMMARY
At the December 1, 2015 Council meeting, Council approved a motion to take up
and introduce Ordinance No. 531 on first reading, which will add Chapter 11.98 to
the La Quinta Municipal Code relating to emergency access to gated communities
by law enforcement.
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. Discussions with existing gated or secured communities indicate
a willingness on their part to fund this cost.
BACKGROUND/ANALYSIS
Currently, the La Quinta Police Department relies on the Riverside County Fire Department
to provide police officers with access to gated or secured communities. While the police
and fire departments regularly coordinate the use of secured access keys, the police
department requested independent authority to gain access with its own secured access
keys (or other method) during emergencies to minimize response times. The City has the
authority to require access under its general land use authority and powers to promote
public health, safety and welfare.
The proposed ordinance requires all communities that restrict access to provide law
enforcement with the “opportunity for immediate access” during an emergency, which
means access without the assistance of any person. Typically, this is achieved with a
secured-access key (“Knox Box”) held and monitored by authorized personnel.
The ordinance also authorizes the City Manager to adopt a policy, after consultation with
the Chief of Police, to ensure the method of compliance is acceptable. It is anticipated
that a policy will standardize and streamline the process of compliance.
Finally, the ordinance establishes enforcement provisions. For new communities
approved for development after the effective date of the ordinance, a condition of
approval requiring a method for law enforcement access will be imposed. Existing gated
communities would have one year to comply either by providing a method for law
CONSENT CALENDAR ITEM NO. 5
65
enforcement access or by demonstrating that an existing method meets law
enforcement requirements. The ordinance allows existing gated communities to seek
relief from the mandate, and the implementation policy is intended to establish
parameters for alternative methods of compliance. Fines, in accordance with established
municipal code provisions, may be imposed for non-compliance.
ALTERNATIVES
As Council approved this ordinance at first reading, staff does not recommend an
alternative.
Prepared by: Monika Radeva, Executive Assistant
Approved by: Susan Maysels, City Clerk
Attachment : 1. Ordinance No. 531
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9048600.5 a12/07/15
ORDINANCE NO. 531
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA
QUINTA, CALIFORNIA, ADDING CHAPTER 11.98 TO THE LA
QUINTA MUNICIPAL CODE RELATING TO EMERGENCY
ACCESS TO GATED COMMUNITIES BY LAW ENFORCEMENT
WHEREAS, law enforcement currently has no independent means for accessing
gated communities in the event of an emergency; and,
WHEREAS, the lack of standardized access to gated communities may delay
law enforcement’s response times to emergencies and thereby endangers the public
in times of emergency; and,
WHEREAS, law enforcement must have immediate access to gated
communities during emergencies for lifesaving purposes and to investigate, prevent,
and respond to any public offenses or breaches of the peace.
NOW THEREFORE, the City Council of the City of La Quinta does hereby ordain
as follows:
SECTION 1. The above recitals are true and correct and incorporated herein.
SECTION 2. This Ordinance shall be known and may be cited as the “La Quinta
Emergency Access Ordinance.”
SECTION 3. Chapter 11.98 shall be added to the La Quinta Municipal Code as
written in Exhibit A attached hereto.
SECTION 4. In adopting this Ordinance, the City Council finds that the project is
categorically exempt from the California Environmental Quality Act (CEQA) pursuant
to Title 14 California Code of Regulations Sections 15061(b)(3) and 15378, in that it
can be seen with certainty that the adoption of the Municipal Code amendments
propose no activity that may have a significant effect on the environment and will not
cause a direct physical change in the environment or a reasonably foreseeable
indirect physical change in the environment.
SECTION 5. If any section, subsection, sentence, clause, phrase, or portion of this
Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of
any court of competent jurisdiction, such decision shall not affect the validity of the
remaining portions of this Ordinance, and each section, subsection, subdivision,
sentence, clause, phrase or portion thereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses, phrases or portions might
subsequently be declared invalid or unconstitutional.
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SECTION 6. This Ordinance shall be in full force and effect thirty (30) days after its
adoption.
SECTION 7. The City Clerk shall certify to the passage and adoption of this
Ordinance, and shall cause the same to be published within fifteen (15) days after
passage in accordance with law, and shall cause this Ordinance and its certification,
together with proof of publication, 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 1st day of December, 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 H. IHRKE, City Attorney
City of La Quinta, California
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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. ___ which was
introduced at a regular meeting on the __ day of ______________, 2015, and was
adopted at a regular meeting held on the __ day of ______________, 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 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 _______________, 2015 pursuant to Council
Resolution.
_________________________________
SUSAN MAYSELS, City Clerk
City of La Quinta, California
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EXHIBIT A
CHAPTER 11.98 Emergency access to gated and other secured residential
communities.
11.98.010 Purpose and intent.
A. The purpose of this chapter is the protection of the public health, safety, and
general welfare by ensuring law enforcement has the opportunity for
immediate access to gated and other secured communities, which limit or
control access by the general public, in times of emergency to respond to public
offenses, breaches of the peace, or other natural- or human-induced disasters.
B. It is hereby declared that in any instance where the provisions of this chapter
conflict with any applicable federal or state law or regulation, such federal or
state law or regulation shall govern.
11.98.020 Definitions.
The following definitions shall govern the meaning of words and phrases used in this
chapter:
A. “Chief of police” means the chief of the police department or his/her designee.
B. “Emergency” means actual or threatened existence of conditions of a disaster
or of detriment to the safety of persons or to property within this city caused by
any natural- or human-induced event or events, including but not limited to
actual or threatened existence of conditions related to a crime or alleged
criminal conduct punishable under any law. An emergency may, but need not,
be reported to law enforcement by means of an emergency call (“911 call”),
alarm system, or any other means to notify the city or public safety officers of
conditions that otherwise constitute an emergency under this chapter.
C. “Existing gated community” means a gated community that, prior to the
effective date of this chapter, meets any one or multiple of the following:
1. Physical construction of the development has commenced or been
completed;
2. A complete or deemed complete application(s) for all necessary
development permits has been submitted and approved by the director(s) of
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the department(s) responsible for approving all application(s), in accordance
the La Quinta Municipal Code and standard city policies and practices.
3. Development of the community has been approved by issuance of a grading
permit, building permit, conditional use permit, development agreement,
subdivision map, or other permit or entitlement.
D. “Fire chief” means the fire chief serving the city or his/her designee. The fire
chief may be that person so designated by the Riverside County Fire
Department pursuant to a contract for fire services entered into with the city.
E. “Gated community” means any residential or mixed use development,
including residential projects of at least two or more units, that limits free and
open access to law enforcement or the general public, or both, because of on-
site security provisions, including but not limited to “manned” or “un-manned”
guard gates, barriers, locked common areas that provide the means of ingress
to or egress from a residence’s door, or other restrictions. A single-family
residence with a gated driveway does not fall within this definition.
F. “Law enforcement” means any officer or official of the police department,
including the chief of police.
G. “Opportunity for immediate access” means a method, including but not limited
to an emergency key system or locked key box, by which the police department
may immediately access a gated community without the assistance of any
person.
H. “Police department” means the department providing police services to the
city, which may be the Riverside County Sheriff Department pursuant to a
contract for police services entered into with the city.
I. “Responsible party” means the person(s) charged with the responsibility for
managing a gated community, including but not limited to the owner of the
real property that has a gated community, the owner or manager of the gated
community, or the board of directors of the homeowner’s association for the
gated community or representative thereof.
11.98.030 Access During Emergency and to Preserve Public Safety.
Each gated community shall provide the opportunity for immediate access to law
enforcement at all times for emergencies. It shall be the responsibility of each gated
community to ensure its method of providing such access complies with standards
approved by the police department. It shall be the responsibility of each gated
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community to ensure that the method of access it adopts is installed and maintained
in good working order at all times.
11.98.040 Duties of Chief of Police.
It shall be the responsibility of the chief of police, upon consultation with the fire chief,
to implement a policy for acceptable methods of providing the opportunity for
immediate access to law enforcement to gated communities.
11.98.050 New Gated Communities.
After the effective date of this chapter, it shall be a condition of approval for the
development of any gated community to provide an opportunity for immediate access
to the gated community and to provide to the city manager or his/her designee, a
certification from the chief of police that the gated community has complied with this
chapter. The city manager or his/her designee, shall implement the requirement and
enforcement of this condition of approval, which may be a condition of approval to a
subdivision map or development permit.
11.98.060 Existing Gated Communities.
A. Within one (1) year of the effective date of this chapter, it shall be the
responsibility of each existing gated community to provide the opportunity for
immediate access to law enforcement at all times for emergencies, and to
provide to the city manager or his/her designee, a certification from the chief of
police that the gated community has complied with this chapter.
B. If, as of the effective date of this chapter, an existing gated community already
has implemented a method of providing an opportunity for immediate access
to law enforcement, it shall be the existing gated community’s responsibility to
consult with the chief of police to ensure that its method of compliance
conforms to law enforcement’s standards. The chief of police shall have the
authority to determine whether a method of providing an opportunity for
immediate access conforms to law enforcement’s standards.
C. An existing gated community may submit an application for relief from the
requirements in subsection (A) or an adverse decision from the chief of police
under subsection (B) of this section, or both, pursuant to the following
procedures:
1. A hearing before the city manager pursuant to Section 2.08.180 and
related provisions of the La Quinta Municipal Code, as may be amended
from time to time;
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2. An administrative appeal of an adverse administrative decision of the
city manager to the city council pursuant to Section 2.8.230 and related
provisions of the La Quinta Municipal Code, as may be amended from
time to time.
11.98.070 Implementing Policy.
The city manager, after consultation with the chief of police, may adopt a policy for
the implementation of the requirements and enforcement of this chapter. The policy
may include an opportunity for an existing gated community to propose an alternative
method for providing an opportunity for immediate access to law enforcement that
complies with this chapter, and the policy may include available alternatives to
existing gated communities that would assist an existing gated community in
complying with this chapter.
11.98.080 Penalties.
Any responsible party who owns, manages, or operates a gated community in
violation of this chapter shall be subject to an administrative citation and fine
pursuant to Chapter 1.09 of the La Quinta Municipal Code, with each day a violation
exists being a separate and distinct violation, and the amount of each fine subject to
the maximum amount allowed pursuant to Section 1.09.020 of the La Quinta
Municipal Code, as may be amended from time to time. A violation of any provision of
this chapter shall be, and is hereby declared to be, a public nuisance. In addition to
any other enforcement permitted by the La Quinta Municipal Code, the city attorney
may bring a civil action for injunctive relief and civil penalties against any person who
violates any provision of this chapter.
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City of La Quinta
CITY COUNCIL MEETING: December 15, 2016
STAFF REPORT
AGENDA TITLE: APPROVE RECIPIENT FOR THE 2016 SENIOR INSPIRATION AWARD
PROGRAM
RECOMMENDATION
Approve Don Adolph for the 2016 Senior Inspiration Award Program.
EXECUTIVE SUMMARY
Riverside County’s Senior Inspiration Award Program recognizes and honors
outstanding senior citizens for volunteer involvement.
Each Coachella Valley city nominates a resident for this program.
City staff issued requests for qualified nominees and received one this year.
FISCAL IMPACT - None.
BACKGROUND/ANALYSIS
Every year, the County of Riverside and Coachella Valley cities select a senior citizen, 65 or
older, who best demonstrates “a zest for the physical and mental well-being through
volunteerism and active engagement in the community.” Staff solicited nominations
from: La Quinta Chamber of Commerce, La Quinta Historical Society, La Quinta Rotary
Club, Friends of the La Quinta Library, La Quinta Arts Foundation, and Soroptimist
International of La Quinta. One nomination was received from the La Quinta Historical
Society for Mr. Don Adolph.
Mr. Adolph meets the criteria and has been an active member in the La Quinta Chamber
of Commerce, La Quinta Arts Foundation, La Quinta Historical Society, La Quinta Rotary
and Friends of the La Quinta Library. He served as the Chair of the PGA West Architectural
Committee and the La Quinta Planning Commission, before being elected to City Council
in 1995. He was elected Mayor in 2002 and was re-elected in 2004, 2006, 2008 and 2010.
As Mayor, he served on the Sunline Executive Board, the Joint Water Policy Advisory
Committee and the Coachella Valley Association of Governments Executive Committee
(Attachment 1). The award will be presented at the Senior Inspiration Awards luncheon
held on Friday, March 25, 2016 at the JW Marriot Desert Springs in Palm Desert.
ALTERNATIVES
Mr. Adolph meets the criteria for the nomination; therefore, staff has no alternative.
Prepared by: Christina Calderon, Community Services Supervisor
Approved by: Edie Hylton, Deputy City Manager
Attachments: 1. Biographical information for Don Adolph
CONSENT CALENDAR ITEM NO. 6
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2016 Senior Inspiration Awards
Nomination Form
Eligible recipients must:
•be at least 65 years old
•reside and/or volunteer in nominating city
•be actively involved in community affairs for a lengthy period of time
•deserve to receive recognition and/or may not otherwise receive recognition for his or her service to
the community
•personify a healthy, active, and contributing attitude and lifestyle
Recipient Information
Name: ____Don Adolph_________________________________________________________________
Phone number: _760-771-0577_______________________________________________________
Mailing address: _55105 Riviera La Quinta, Ca_____________________________ ______
Email address:_______________________________________________________________________
Reason for nomination:
Don Adolph has been an active member in the La Quinta Chamber of Commerce, the La Quinta Arts
Foundation, the La Quinta Historical Society and the Friends of the La Quinta Library. He is also a
member of the La Quinta Rotary and has served for many years as Chair of the PGA West Architectural
Committee.
Don Adolph served on the La Quinta Planning Commission before being elected to city council in 1995.
In 2002 he was elected Mayor and re-elected to that position in 2004, 2006, 2008, and 2010. As Mayor
of La Quinta he has served on the Sunline Executive Board, the Joint Water Policy Advisory Committee
and the Coachella Valley Association of Governments Executive Committee.
Quote from nominating city or organization about the recipient and his or her volunteer work:
“As mayor, Don Adolph’s door was always open to every citizen of La Quinta.” – submitted by La Quinta
Historical Society.
Please return completed nomination form to Tracy Tran no later than October 30, 2015. Forms can be
emailed to ccalderon@la-quinta.org or mailed to 75-450 Avenida La Fonda, La Quinta, CA 92253.
ATTACHMENT 1
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City of La Quinta
CITY COUNCIL MEETING: December 15, 2015
STAFF REPORT
AGENDA TITLE: AUTHORIZE OVERNIGHT TRAVEL FOR ACCOUNTING MANAGER AND
ACCOUNT TECHNICIAN TO ATTEND INTERMEDIATE GOVERNMENTAL ACCOUNTING
TRAINING ON JANUARY 12-13, 2016, IN GARDEN GROVE, CALIFORNIA
RECOMMENDATION
Authorize overnight travel for the Accounting Manager and Account Technician to attend
Intermediate Governmental Accounting Training on January 12 13, 2016, in Garden
Grove, California.
EXECUTIVE SUMMARY
The Government Finance Officers Association is the lead nationwide organization
that offers continuing education to its members providing best practice guidance,
consulting, networking opportunities, publications, recognition programs, research,
and training opportunities.
Over the last 18 months, the Finance Department has experienced turnover in key
staff positions resulting in promotions within the department. Newly promoted
staff requires continuing education courses to stay current with governmental
accounting requirements.
FISCAL IMPACT
Estimated expenses are $2,300, which includes registration, travel, lodging, parking and
meals. Funds are available in the Finance /16 training budget.
BACKGROUND/ANALYSIS
Recently, two employees were promoted within the Finance Department. The Business
Analyst was promoted to Accounting Manager and the Senior Account Clerk was
rovide growth
and opportunity to staff who are willing to accept new challenges. And, providing the
necessary support and training is a vital component of making that initiative successful.
Training opportunities with the Government Finance Officers Association provide
attendees with solid basics of governmental accounting plus keep attendees up to date
on any recent developments in governmental accounting requirements. Topics that will
be covered during the GFOA Intermediate Accounting class include:
Properly applying specialized public-sector account classifications and financial
reporting terminology;
Distinguishing the accrual treatment of transactions and events from the
modified accrual treatment of those items;
CONSENT CALENDAR ITEM NO. 7
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Determining which legally separate units should be included within the financial
reporting entity and how they should be presented;
Identifying the basic steps in converting fund data for inclusion in government-
wide financial statements;
Identifying the components of each of the three basic sections of a comprehensive
annual financial report.
During the 2015/16-budget preparation, increased training funds were included in the
budget in recognition of staffing changes. This training opportunity will contribute to the
continued success of the newly promoted employees as well as give them an opportunity
to establish contacts with other government finance professionals. Government
accounting and financial reporting requirements are constantly changing and keeping
employees educated and up to date will allow the Finance Department to continue to
provide accurate information and also ensure that the City continues to receive favorable
audit opinions.
ALTERNATIVES
The Council could elect to not authorize this overnight travel; however, this professional
development opportunity will benefit City service delivery.
Prepared by: Vianka Orrantia, Management Assistant
Approved by: Rita Conrad, Finance Director
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City of La Quinta
CITY COUNCIL MEETING: December 15, 2015
STAFF REPORT
AGENDA TITLE: APPROVE FINANCIAL AND COMPLIANCE REPORTS FOR WASHINGTON
STREET APARTMENTS FOR YEAR ENDED JUNE 30, 2015
RECOMMENDATION
Approve the Financial and Compliance Reports for Washington Street Apartments for
the year ended June 30, 2015.
EXECUTIVE SUMMARY
The former La Quinta Redevelopment Agency acquired Washington Street
Apartments in October 2008.
Subsequently, the La Quinta Housing Authority (HA) assumed ownership hen
the Agency was dissolved.
An annual audit and HA approval are required by the United States Department
of Agriculture (Attachment 1).
FISCAL IMPACT None.
BACKGROUND/ANALYSIS
Washington Street Apartments is a 73-unit development designed for very low and
low-income senior and disabled households. The former Redevelopment Agency
(Agency) acquired this property in October 2008; this property was transferred to the
HA when the Agency was dissolved in 2012; this apartment complex is managed by
Hyder & Company. The United States Department of Agriculture provides rent
subsidies, and an annual audit is required. The audit was performed by Joyce
Rethmeier, CPA.
During the fiscal year ended June 30, 2015, Washington Street Apartments collected
operating revenues of $624,501 and expended $469,897 for operations, resulting in
net income of $154,604. Non-operating expenditures were $100,915, resulting in an
increase in net assets for the year of $53,689.
ALTERNATIVES
Staff has reviewed and verified the report and does not recommend an alternative.
Prepared by: Rita Conrad, Finance Director
Approved by: Frank J. Spevacek, City Manager
CONSENT CALENDAR ITEM NO. 8
81
Attachment: 1. Washington Street Apartments Financial and Compliance Report for
the Year Ended June 30, 2015
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City of La Quinta
CITY COUNCIL MEETING: December 15, 2015
STAFF REPORT
AGENDA TITLE: ACCEPT PHASE I OF THE AMERICANS WITH DISABILITIES ACT SPORTS
COMPLEX AND YMCA FACILITY IMPROVEMENTS PROJECT
RECOMMENDATION
Accept Phase I of the Americans with Disabilities Act Sports Complex and YMCA Facility
Improvements project as 100 percent complete; authorize the City Clerk to file a Notice of
Completion with the Office of the County Recorder; and authorize staff to release
retention in the amount of $2,463, thirty-five days after the Notice of Completion is
recorded.
EXECUTIVE SUMMARY
This project entailed installing and/or upgrading accessibility items in accordance
with the Americans with Disabilities Act (ADA) at the Sports Complex and YMCA
facility (Attachment 1).
The work has been completed, and staff is requesting that the City Council accept
these improvements in order to complete the contract and allow final payment.
FISCAL IMPACT
The following is the financial accounting for this project:
Original Contract Amount (Phase 1) $ 49,250
Contract Change Orders (Phase 1) - None Issued ($ 0)
Final Contract Amount (Phase 1) $ 49,250
Total Combined Budget for Phase 1 and 2 $ 410,736
Final Contract Amount Phase 1
Final Contract Amount Phase 2
($ 49,250)
($ 108,969)
Anticipated Design, Professional, Technical, Personnel, Plans,
and Other Miscellaneous Construction Costs for Phase 1
Anticipated Design, Professional, Technical, Personnel, Plans,
and Other Miscellaneous Construction Costs for Phase 2
($ 19,848)
($ 38,473
Anticipated Funds Remaining $ 194,196
CONSENT CALENDAR ITEM NO. 9
117
Adequate funding exists to close out this project. All remaining funds are returned to
the original Equipment Replacement Fund and Quimby Fund sources.
BACKGROUND/ANALYSIS
In order to comply with current ADA requirements, accessibility improvements were
necessary at the Sports Complex and YMCA facility, located at 78-800 Avenue 50 and 49-
955 Moon River Drive (formerly Park Avenue), respectively. The upgrades included
accessibility signage, benches, drinking fountains, door pressure and other miscellaneous
device adjustments.
On July 7, 2015, City Council awarded a contract in the amount of $49,250 to New
Construction Solutions, Inc., to construct Phase I of the ADA Sports Complex and YMCA
facility improvements (Project No. 2014-01). On August 20, 2015, a Notice to Proceed
was issued with a 30 working day contract completion from October 12 to November 23,
2015.
Contract change orders were not issued or required as all items were bid as “Lump Sum”
and no extra work was required or performed. The project was deemed substantially
complete on November 17, 2015. Per project specifications, no liquidated damages or
early completion incentives are recommended.
The construction effort is now 100 percent complete and is in compliance with the plans
and specifications. Staff therefore recommends acceptance and release of the retention
35 days after the Notice of Completion is recorded.
ALTERNATIVES
Since the project has been constructed and conforms to the plans and specifications,
staff does not recommend an alternative.
Prepared by: Ed Wimmer, Principal Engineer
Approved by: Timothy R. Jonasson, Public Works Director/City Engineer
Attachment: 1. Vicinity Map
118
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ATTACHMENT 1YMCA 119
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City of La Quinta
CITY COUNCIL MEETING: December 15, 2015
STAFF REPORT
AGENDA TITLE: ACCEPT PHASE II OF THE AMERICANS WITH DISABILITIES ACT SPORTS
COMPLEX AND YMCA FACILITY IMPROVEMENTS
RECOMMENDATION
Accept Phase II of the Americans with Disabilities Act Sports Complex and YMCA Facility
Improvements as 100 percent complete; authorize the City Clerk to file a Notice of
Completion with the Office of the County Recorder; and authorize staff to release
retention in the amount of $5,449, thirty-five days after the Notice of Completion is
recorded.
EXECUTIVE SUMMARY
This project entailed installing and/or upgrading accessibility items in accordance
with the Americans with Disabilities Act (ADA) such as parking spaces, sidewalks,
and curb ramps at the Sports Complex and YMCA facility (Attachment 1).
The work is complete, and staff is requesting City Council acceptance in order to
complete the contract and allow final payment.
FISCAL IMPACT
The following is the financial accounting for this project:
Original Contract Amount (Phase 2) $ 115,195
Contract Quantity Adjustment Change Order No. 1 (Phase 2) ($ 6,226)
Final Contract Amount (Phase 2) $ 108,969
Total Combined Budget for Phase 1 and 2 $ 410,736
Final Contract Amount Phase 1
Final Contract Amount Phase 2
($ 49,250)
($ 108,969)
Anticipated Design, Professional, Technical, Personnel, Plans,
and Other Miscellaneous Construction Costs for Phase 1
Anticipated Design, Professional, Technical, Personnel, Plans,
and Other Miscellaneous Construction Costs for Phase 2
($ 19,848)
($ 38,473
Anticipated Funds Remaining $ 194,196
Adequate funding exists to close out this project. All remaining funds are returned to the
original Equipment Replacement Fund and Quimby Fund sources.
CONSENT CALENDAR ITEM NO. 10
121
BACKGROUND/ANALYSIS
In 2011, the City conducted an ADA accessibility self-evaluation and commissioned an
accessibility survey prepared by Disability Access Consultants. This survey identified the
need for certain ADA improvements at the Sports Complex and YMCA facility, located at
78-800 Avenue 50 and 49-955 Moon River Drive (formerly Park Avenue), respectively. The
proposed improvements included re-grading parking spaces and sidewalks, placing
additional handrails, adding accessible parking spaces, and constructing compliant curb
ramps.
On July 2, 2015, one sealed bid was received by RG General Engineering, representing the
lowest bid in the amount of $115,195. On July 7, 2015, City Council awarded a contract in
the amount of $115,195 to RG General Engineering to construct Phase II of the ADA
Sports Complex and YMCA facility improvements (Project No. 2014-01B).
On August 18, 2015, a Notice to Proceed was issued with a 45 working day contract from
August 19 to October 21, 2015. Contract Change Order No. 1 was issued for a contract
quantity adjustment between the bid quantities and the actual quantities installed.
The project was deemed substantially complete on October 20, 2015. Per project
specifications, no liquidated damages or early completion incentives are recommended.
The project’s construction effort is now 100 percent complete and is in compliance with
the plans and specifications. Staff therefore recommends acceptance of the project and
release of the retention 35 days after the Notice of Completion is recorded.
ALTERNATIVES
Since the project has been constructed and reviewed for conformance to the plans and
specifications, staff does not recommend an alternative.
Prepared by: Ed Wimmer, Principal Engineer
Approved by: Timothy R. Jonasson, Public Works Director/City Engineer
Attachment: 1. Vicinity Map
122
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ATTACHMENT 1YMCA 123
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City of La Quinta
CITY COUNCIL MEETING: December 15, 2015
STAFF REPORT
AGENDA TITLE: ACCEPT $100,000 STATE FUNDING GRANT FROM THE SUPPLEMENTAL LAW
ENFORCEMENT SERVICES ACCOUNT FOR FRONT LINE LAW ENFORCEMENT SERVICES,
APPROVE LOCAL EXPENDITURE PLAN, AND AUTHORIZE USE OF CARRYOVER BALANCE
RECOMMENDATION
Accept $100,000 in State grant funding from the Supplemental Law Enforcement Services
Account for front line law enforcement services, approve the local expenditure plan,
authorize use of carryover balance, and authorize the City Manager to execute the plan.
EXECUTIVE SUMMARY
•Annually, the State awards Supplemental Law Enforcement Services Account
(SLESA) to support front line law enforcement services.
•In order to receive this grant, the City must submit a local expenditure plan.
•The expenditure plan (Attachment 1) allocates $100,000 of 2015/16 and $93,160
in carryover funds to Special Enforcement Funds.
FISCAL IMPACT
These funds will be added to Fiscal Year 2015/16 operating budget for police services as
these fund are not currently included.
BACKGROUND/ANALYSIS
The City has participated in this State grant program since 2001; this program funds
supplement public safety programs. The expenditure plan, prepared by LQPD, outlines
additional law enforcement services designed to suppress crime. SLESA funds must be
used to supplement existing services. Thus, the 2015/16 SLESA and previous years
carryover funds will be used to cover additional labor costs related to the following
programs: Crime Prevention, Holiday Theft, Black Friday Traffic, Traffic control and Crime
Investigations, including Property Crimes (Burglary and Theft), Financial Crimes (Check
Fraud, Credit Card Fraud, Identity Theft), Crimes Against Persons (Assaults, Robbery,
Sexual Assault, Elder Abuse), and Child Abuse Crimes (Sexual Abuse and Physical Abuse).
These programs provide proactive patrols during the holiday season and throughout the
year.
ALTERNATIVES
CONSENT CALENDAR ITEM NO. 11
125
As this funding is a grant and it helps to supplement law enforcement services, staff
does not recommend an alternative.
Prepared by: Martha Mendez, Business Analyst
Approved by: Frank J. Spevacek, City Manager
Attachments: 1. Expenditure Plan
2. Correspondence from Sheriff’s Department
126
City Name:
Beginning Fund Balance 93,159.70
Prior Yr Allocation 100,000.00
Received in Current Year
Current Year Allocation 100,000.00
Salaries and Benefits 193,159.70
Services and Supplies
Administrative Overhead
Total Expenditure Planned 193,159.70
Date approved by the City Council:
The City Manager hereby certifies that the Supplemental Law Enforcement Services Plan
was submitted to the City Council and approved as listed.
Date
FY 2015-16 City Expenditure Plan Form
Supplemental Law Enforcement Standardized Forms
Expenditure Plan
FY 2015-2016
City Manager Signature
DateName
City of La Quinta
Please provide the name of a contact person if there are any questions:
Equipment
EXPENDITURE PLANNED
Martha Mendez
ATTACHMENT 1
127
ATACHMENT 2
128
City of La Quinta
CITY COUNCIL MEETING: December 15, 2015
STAFF REPORT
AGENDA TITLE: RECEIVE AND FILE FIRST QUARTER FISCAL YEAR 2015/16 TREASURY
REPORTS FOR JULY, AUGUST AND SEPTEMBER 2015
RECOMMENDATION
Receive and file the First Quarter Fiscal Year 2015/16 Treasury Reports for July, August
and September 2015.
EXECUTIVE SUMMARY
s (Attachments 1, 2, and 3), submitted to the Investment
Advisory Board and City Council for review, summarize all cash and investments of
the City, Successor Agency, Housing Authority, and Financing Authority.
There is sufficient investment liquidity and anticipated revenues available to meet
estimated expenditures.
FISCAL IMPACT None.
BACKGROUND/ANALYSIS
First Quarter 2015/16
T investment portfolio decreased by $19.5 million, from $129 million to $109.5
million. During the first quarter of each year, receipts typically are significantly lower
than disbursements. Major revenue payments (property tax and Motor Vehicle in Lieu
fees) are not received until December and June. However, because payments are still
being made related to the prior fiscal year, first quarter expenditures are normally high.
Additionally, major debt service payments related to the Successor Agency are made
annually in August.
Larger Receipts by Month:
July
$865,383 Property Tax $429,800 Sales Tax
$65,042 Measure A Sales Tax
August
$573,000 Sales Tax
$157,848 Cable Franchise Fee
$67,478 Measure A Sales Tax
CONSENT CALENDAR ITEM NO. 12
129
September
$364,354 Sales Tax
$248,601 Property Tax
$69,623 Gas Tax
Larger Disbursements (not including monthly payroll costs):
July
$563,823 for annual liability/workers compensation insurance premium
$392,306 annual lump-sum payment to CalPERS for portion of retirement costs
$151,744 to Landmark Golf Management for monthly contract management
services at SilverRock
August
$12.1 million for Successor Agency annual debt service
enforcement services from February 5 to May 4, 2015
$152,330 to Landmark Golf Management for monthly contract management
services at SilverRock
September
enforcement services from May 5 to June 30, 2015
$543,331 to Granite Construction for Adams Street Improvement Construction
costs
$121,281 to Landmark Golf Management for monthly contract management
services at SilverRock
Investment Activity
July
during the last IAB meeting,three US Treasuries totaling $15,025,500 were
purchased in July; $15 million was transferred from the Local Agency Investment
Fund to purchase these Treasuries. The Local Agency
Investment Fund (LAIF) is a voluntary program created by State statute as an
investment alternative for California's local governments and special districts.
This program offers the opportunity to participate in a major portfolio, which
invests hundreds of millions of dollars, using the investment expertise of the State
Treasurer's Office at no additional cost
Bank fees in July were $1,145 and the sweep account earned $89 in interest
income
Average investment maturity in July was 417 days as compared to 378 days in
June
August
the bond trustee for debt
service payments; this money was held in mutual funds until disbursement
million of Successor Agency debt service payments and other operating
expenditures
130
Bank fees for the month of August were $1,077 and the sweep account earned
$31 in interest income
Average investment maturity in August was 467 days as compared to 417 days in
July
September
r operating
expenditures
$12.2 million held by bond trustee for debt service in mutual funds was disbursed
for debt service payments
$31 in interest income
Average investment maturity in September was 470 days as compared to 467
days in August
Portfolio Performance
July Overall portfolio performance in July of .57 percent was improved compared to
percent. The July 2014 portfolio yielded .34 percent.
August Overall portfolio performance in August of .60 percent was improved compared
percent. The August 2014 portfolio yielded .36 percent.
September Overall portfolio performance in September of .62 percent was improved
percent. The September 2014 portfolio yielded .36
percent.
Other Notes
s the City is over the allowable
percentage of funds to be invested in mutual funds. However, these funds are bond
proceeds with the fiscal agent and are subject to the bond indent
investment policy. Additionally, Successor Agency funds cannot be invested in long-term
investments and are only invested in LAIF.
Looking Ahead
, the
Treasurer will invest in negotiable certificates of deposits, GSE securities, U.S. Treasurer
and LAIF as needed.
ALTERNATIVES None.
Prepared by: Rita Conrad, Finance Director
Approved by: Frank J. Spevacek, City Manager
Attachments: 1. port dated July 31, 2015
2.
3.
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City of La Quinta
CITY COUNCIL MEETING: December 15, 2015
STAFF REPORT
AGENDA TITLE: APPROVE PROGRAM SUPPLEMENTAL AGREEMENT WITH CALIFORNIA
DEPARTMENT OF TRANSPORTATION AND FEDERAL HIGHWAYS ADMINISTRATION
RELATED TO WASHINGTON STREET REHABILITATION IMPROVEMENTS
RECOMMENDATION
Approve a Program Supplemental Agreement with the California Department of
Transportation and Federal Highways Administration related to the Washington Street
Rehabilitation Improvements and authorize the City Manager to execute same.
EXECUTIVE SUMMARY
The Program Supplemental Agreement No. 014-N (Attachment 1) with the
California Department of Transportation and Federal Highways Administration
will allow the City to be reimbursed for 88.53 percent (not to exceed $249,507)
of eligible construction costs for the Washington Street pavement rehabilitation
(Attachment 2).
The project is substantially complete and the City Council will consider the final
accounting and acceptance recommendations in January 2016.
FISCAL IMPACT
None. This funding was part of the funding scenario for the Washington Street
Improvements (Project No. 2012-07B) and is included in the 2014/15 Capital
Improvement Program, allocated as follows:
General Fund: $399,476
Federal Surface Transportation Program: $249,507
TOTAL APPROVED FUNDING: $648,983
The project budget is:
Project Total
Professional:$20,000
Design:$34,384
Inspection/Testing/Survey: $27,479
Construction:$491,520
CONSENT CALENDAR ITEM NO. 13
163
City Administration: $25,000
Contingency: $50,600
Total Budget: $648,983
BACKGROUND/ANALYSIS
The Washington Street pavement rehabilitation improvements are eligible for federal
reimbursement. This segment represents the last of six roadway segments scheduled
for rehabilitation in the current Pavement Management Plan. To meet the federal
requirements, a Program Supplemental Agreement must be approved and executed
by the City as “Administering Agency” within 90 days of receipt. This action satisfies
these requirements and allows the City to receive these funds.
ALTERNATIVES
Since this is a requirement to receive the federal funding already approved for this
project, no alternative is recommended.
Prepared by: Ed Wimmer, P.E., Principal Engineer
Approved by: Timothy R. Jonasson, P.E., Public Works Director/City Engineer
Attachments: 1. Program Supplemental Agreement
2. Vicinity Map
164
ATTACHMENT 1
165
166
167
168
169
170
171
172
173
174
ATTACHMENT 2
175
176
City of La Quinta
CITY COUNCIL MEETING: December 15, 2015
STAFF REPORT
AGENDA TITLE: APPROVE PLANS, SPECIFICATIONS, AND ENGINEER’S ESTIMATE AND
ADVERTISE THE JEFFERSON ROUNDABOUT ART PIECE PEDESTAL PROJECT FOR BID
RECOMMENDATION
Approve the plans, specifications, and engineer’s estimate, and authorize staff to
advertise the Jefferson Roundabout Art Piece Pedestal project for bid.
EXECUTIVE SUMMARY
The Jefferson Roundabout Art Piece Pedestal project completes the installation
of the Roadrunner Art Sculpture at the Jefferson Street/Avenue 52 roundabout
(Attachment 1).
The sculpture was loaned to the City for a five-year period and is sitting on the
ground within the roundabout center median. Staff recommends placing the
Roadrunner sculpture on a pedestal to increase visibility and better protect it.
This pedestal will also support displaying future art pieces.
FISCAL IMPACT
The project is included within the 2015/16 Capital Improvement Program and has an
approved budget of $80,000 ($50,000 from the Art in Public Places fund and $30,000
from the General Fund). The approved budget is:
Professional:$4,254
Design:$5,489
Inspection/Testing/Survey: $5,352
Construction:$54,888
City Administration:$2,744
Contingency:$7,273
Total Budget: $80,000
The estimated cost of the base bid plus the additive alternatives (optional items) is
$73,000. The approved construction budget is $54,888. The base bid includes the
concrete pedestal, and the additive alternates include electrical conduit for lighting
and landscape enhancements consisting of a decorative rock border and new
CONSENT CALENDAR ITEM NO. 14
177
decomposed granite groundcover within the roundabout. The City is under no
obligation to award the base bid or the additive alternates; however, additional
funding might be necessary if Council wishes to include the additive alternates once
bid prices are known.
BACKGROUND/ANALYSIS
Construction of a decorative concrete pedestal in the Jefferson Street/Avenue 52
roundabout is part of the City’s ongoing efforts to provide art in public places,
(Attachment 2). Currently, the City has received a roadrunner sculpture on loan from
Golden Voice. This sculpture is anchored to the ground within the center median of
the roundabout. Once the pedestal is constructed, the sculpture will be relocated to
the pedestal.
The cost estimate (including additive alternates) is greater than the construction
budget because additive alternate items were added to provide Council with a menu
of options to aesthetically enhance the landscaping at this signature location, if
desired. Council is not required to award the additive alternate items nor the base bid.
The plans, specifications, and engineer’s estimate are now complete and available for
review in the Public Works Department. Contingent upon City Council’s approval to
advertise the project for bid on December 15, 2015, the following is the project
schedule:
City Council Bid Authorization December 15, 2015
Bid Period December 17 through January 21, 2016
Council Considers Project Award February 2, 2016
Execute Contract and Mobilize February 3 through February 24, 2016
Construction (30 Working Days) February 24 through March 30, 2016
Accept Improvements April 30, 2016
ALTERNATIVES
The Council could elect not to construct a pedestal and leave the sculpture in the
current configuration, and evaluate the need for a pedestal when future art work is
displayed at this location.
Prepared by: Ed Wimmer, P.E., Principal Engineer
Approved by: Timothy R. Jonasson, P.E., Public Works Director/City Engineer
Attachments: 1. Vicinity Map
2. Art Piece Conduit Detail
178
ATTACHMENT 1
179
180
ATTACHMENT 2 181
182
City of La Quinta
CITY COUNCIL MEETING: December 15, 2015
STAFF REPORT
AGENDA TITLE: APPROVE COOPERATIVE AGREEMENT WITH COUNTY OF RIVERSIDE TO
PROVIDE FIRE PROTECTION, FIRE PREVENTION, RESCUE AND MEDICAL EMERGENCY
SERVICES
RECOMMENDATION
Approve a cooperative agreement with the County of Riverside to provide fire protection,
fire prevention, rescue and medical emergency services, and authorize the City Manager
to execute the agreement.
EXECUTIVE SUMMARY
Since 1986, the City has contracted with the County of Riverside (‘‘County’’) for fire
services.
The existing cooperative agreement, which expired on June 30, 2010, was
extended until a new comprehensive agreement is approved by both agencies.
In April 2014, City Council approved a new agreement; however, the County did
not, as the County subsequently requested further language modifications.
Senate Bill 239 was enacted this year, which requires Local Agency Formation
Commission review of all fire agreements approved after January 1, 2016.
The cooperative agreement maintains all current services; the term is December
31, 2015, to December 31, 2016.
FISCAL IMPACT
This cooperative agreement will cost approximately $6,180,000 for calendar year 2016;
this cost is offset by an annual fire property tax credit. No additional costs are proposed,
as service levels are unchanged.
BACKGROUND/ANALYSIS
The City contracts with the County that has a cooperative agreement with the California
Department of Forestry and Fire Protection to provide fire services. The contract provides
three fire stations, 25 fire personnel, firefighting and suppression apparatus, and
participation in the regional protection system. The cooperative agreement does not
modify these service levels. Service costs are identified annually and included in the City’s
annual operating budget.
City staff and the City Attorney negotiated changes to base agreement that encompass
the following provisions:
CONSENT CALENDAR ITEM NO. 15
183
In the event the California Legislature takes action that increase fire services costs,
the City can elect to fund these additional costs or the County can unilaterally
reduce services to meet the service level the City can afford.
The County must provide written notice to the City if fire salaries or expenses
increase/decrease.
A one-year versus a multi-year agreement so that the findings of the County
commissioned fire services study can be incorporated into a future agreement.
The County initiated a review of services and how costs were allocated in the summer of
2015. The intent is to examine how the department allocated resources and associated
costs based on the calls for service generated. For example, Fire Station 93, off Adams
Street, services La Quinta, Indio, Palm Desert, Indian Wells and the unincorporated area.
Instead of the City bearing 100 percent of the cost, the study may conclude that each
jurisdiction should fund their respective cost based upon calls for service. While
negotiating this cooperative agreement, the County Fire Department and Executive Office
expressed their commitment to meet and confer with the City when the study is
completed in the spring of 2016.
Staff requested a one-year versus a multi-year agreement because the County is
restructuring the fire services; a one-year agreement provides an opportunity to
incorporate the findings into a new agreement.
ALTERNATIVES
The Council may elect to not proceed with this transaction. While the Council could direct
staff to modify the terms, County staff has indicated that there is little room for
adjustment. The County provides fire services to a number of communities throughout
Riverside County and is seeking uniform agreements countywide.
Prepared by: Chris Escobedo, Assistant to City Manager
Approved by: Frank J. Spevacek, City Manager
Attachment: 1. Agreement
184
•In the event the California Legislature takes action that increase fire services costs,
the City can elect to fund these additional costs or the County can unilaterally
reduce services to meet the service level the City can afford.
•The County must provide written notice to the City if fire salaries or expenses
increase/decrease.
•A one-year versus a multi-year agreement so that the findings of the County
commissioned fire services study can be incorporated into a future agreement.
The County initiated a review of services and how costs were allocated in the summer of
2015. The intent is to examine how the department allocated resources and associated
costs based on the calls for service generated. For example, Fire Station 93, off Adams
Street, services La Quinta, Indio, Palm Desert, Indian Wells and the unincorporated area.
Instead of the City bearing 100 percent of the cost, the study may conclude that each
jurisdiction should fund their respective cost based upon calls for service. While
negotiating this cooperative agreement, the County Fire Department and Executive Office
expressed their commitment to meet and confer with the City when the study is
completed in the spring of 2016.
Staff requested a one-year versus a multi-year agreement because the County is
restructuring the fire services; a one-year agreement provides an opportunity to
incorporate the findings into a new agreement.
ALTERNATIVES
The Council may elect to not proceed with this transaction. While the Council could direct
staff to modify the terms, County staff has indicated that there is little room for
adjustment. The County provides fire services to a number of communities throughout
Riverside County and is seeking uniform agreements countywide.
Prepared by: Chris Escobedo, Assistant to City Manager
Approved by: Frank J. Spevacek, City Manager
Attachment: 1. Agreement
185
186
Cooperative Fire Agreement
City of La Quinta
December 31, 2015 to December 31, 2016
1 of 9
A COOPERATIVE AGREEMENT
TO PROVIDE FIRE PROTECTION, FIRE PREVENTION, RESCUE
AND MEDICAL EMERGENCY SERVICES FOR THE CITY OF LA QUINTA
THIS AGREEMENT, made and entered into this ____ day of ______________,
2015, by and between the County of Riverside, a political subdivision of the State of
California, on behalf of the Fire Department, (hereinafter referred to as “COUNTY”) and
the City of La Quinta, a duly created city, (hereinafter referred to as “CITY”), whereby it
is agreed as follows:
SECTION I: PURPOSE
The purpose of this Agreement is to arrange for COUNTY, through its
Cooperative Fire Programs Fire Protection Reimbursement Agreement (“CAL FIRE
Agreement”) with the California Department of Forestry and Fire Protection (“CAL
FIRE”) to provide CITY with fire protection, disaster preparedness and response, fire
prevention, rescue, hazardous materials mitigation, technical rescue response, medical
emergency services, and public service assists (hereinafter called “Fire Services”). This
Agreement is entered into pursuant to the authority granted by Government Code
Sections 55600 et seq., and COUNTY shall provide to CITY a unified, cooperative,
integrated, and effective fire services system. For purposes of this Agreement, the
“jurisdictional boundaries” serviced under this Agreement shall be the entire territory
and lands within the city limits. COUNTY’s ability to perform under this Agreement is
subject to the terms and conditions of the CAL FIRE Agreement.
SECTION II: DESIGNATION OF FIRE CHIEF
A. The County Fire Chief appointed by the Board of Supervisors, or his
designee, (hereinafter referred to as “Chief”) shall represent COUNTY and CITY during
the period of this Agreement and Chief shall, under the supervision and direction of the
County Board of Supervisors, have charge of the organization described in Exhibit “A”,
attached hereto and made a part hereof, for the purpose of providing Fire Services as
deemed necessary to satisfy the needs of both the COUNTY and CITY, except upon
those lands wherein other agencies of government have responsibility for the same or
similar Fire Services.
B. The COUNTY will assign an existing Chief Officer as the Fire Department
Liaison (“Fire Liaison”). The Chief may delegate certain authority to the Fire Liaison, as
the Chief’s duly authorized designee and the Fire Liaison shall be responsible for
directing the Fire Services provided to CITY as set forth in Exhibit “A”.
C. COUNTY will be allowed flexibility in the assignment of available
personnel and equipment in order to provide the Fire Services as agreed upon herein.
ATTACHMENT 1
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Cooperative Fire Agreement
City of La Quinta
December 31, 2015 to December 31, 2016
2 of 9
SECTION III: PAYMENT FOR SERVICES
A. CITY shall annually appropriate, as part of its fiscal year budget, amounts
to support the Fire Services designated at a level of service mutually agreed upon by
both parties and as set forth in Exhibit “A” for the duration of the contract period.
Exhibit “A” may be amended in writing by mutual agreement by both parties or when a
CITY-requested increase or reduction in services is approved by the COUNTY pursuant
to this Agreement.
B. Any changes to the salaries or expenses set forth in Exhibit “A” made
necessary by action of the Legislature, CAL FIRE, or any other public agency with
authority to direct changes in the level of salaries or expenses, shall be paid from the
funds represented as set forth in Exhibit “A.” Subject to the COUNTY’S ability to
unilaterally reduce the services as provided in this Section III.B., the CITY is obligated to
expend or appropriate any sum in excess of Exhibit “A” based on action of the
Legislature, CALFIRE, or any other public agency with authority to direct changes in the
level of salaries or expenses. COUNTY shall deliver to CITY written notice of a
proposed or actual increase to salaries or expenses as described in the previous
sentences within thirty (30) days of COUNTY’s receipt of notice of the proposed and/or
actual increase. If within thirty (30) days after notice, in writing, from COUNTY to CITY
that the actual cost of maintaining the services specified in Exhibit “A” as a result of
action by the Legislature, CALFIRE, or other public agency will exceed the total amount
specified therein, and CITY has not agreed to make available the necessary additional
funds, COUNTY shall have the right to unilaterally reduce the services furnished under
this Agreement by an appropriate amount and shall promptly notify CITY, in writing,
specifying the services to be reduced. Any COUNTY or CALFIRE personnel reduction
resulting solely due to an increase in employee salaries or expenses occurring after
signing this Agreement and set forth in Exhibit “A” that CITY does not agree to fund, as
described above, shall be subject to relocation expense reimbursement by CITY. If
CITY desires to add funds to the total included herein to cover the cost of increased
salaries or services necessitated by actions described in this section III.B., such
increase shall be accomplished by an additional appropriation by the City Council of
CITY, and an amendment to Exhibit “A” approved by the parties hereto.
C. COUNTY shall provide fire personnel, equipment and services through its
CAL FIRE Agreement. In the event CITY desires an increase or decrease in CAL FIRE
or COUNTY civil service employees or services assigned to CITY as provided for in
Exhibit “A,” CITY shall provide to COUNTY one hundred twenty (120) days written
notice of the proposed increase or decrease. Proper notification shall include the
following: (1) The total amount of proposed increase or decrease; (2) The effective date
of the proposed increase or decrease; and (3) The number of employees, by
classification, affected by the proposed increase or decrease. If such notice is not
provided, CITY shall reimburse COUNTY for relocation costs incurred by COUNTY
because of the increase, in addition to any other remedies available resulting from the
increase or decrease in services.
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Cooperative Fire Agreement
City of La Quinta
December 31, 2015 to December 31, 2016
3 of 9
COUNTY is under no obligation to approve any requested increase or decrease, and it
is expressly understood by the parties that in no event will COUNTY authorize or
approve CITY’s request to reduce services below the COUNTY Board of Supervisors
approved staffing level for any fire station, or to reduce services to the extent that the
services provided under this Agreement are borne by other jurisdictions. COUNTY shall
render a written decision on whether to allow or deny the proposed increase or
decrease within thirty (30) days of the notice provided pursuant to this section.
D. CITY shall pay COUNTY actual costs for Fire Services pursuant to this
Agreement in an amount not to exceed that set forth in Exhibit “A” as may be amended
from time to time. COUNTY shall make a claim to CITY for the actual cost of contracted
services, pursuant to Exhibit “A,” on a quarterly basis. CITY shall pay each claim, in full,
within thirty (30) days after receipt thereof.
E. Chief may be authorized to negotiate and execute any amendments to
Exhibit “A” of this Agreement on behalf of COUNTY as authorized by the Board of
Supervisors. CITY shall designate a “Contract Administrator” who shall, under the
supervision and direction of the City Council, be authorized to execute amendments to
Exhibit “A” on behalf of CITY.
F. ____ ____ [ ] (Check only if applicable, and please initial to acknowledge)
Additional terms as set forth in the attached Exhibit “B” are incorporated herein and
shall additionally apply to this agreement regarding payment of services.
G. ____ ____ [ ] (Check only if applicable, and please initial to acknowledge)
Additional terms as set forth in the attached Exhibit “C” are incorporated herein and
shall additionally apply to this agreement regarding payment for the Fire Engine Use
Agreement.
H. Notwithstanding Paragraph F herein if applicable, additional terms as set
forth are incorporated herein and shall additionally apply to this agreement regarding
payment of services. In the event that a fire engine, owned and maintained by the CITY
has a catastrophic failure, the COUNTY Fire Chief may allow use of a COUNTY fire
engine, free of charge up to one hundred twenty (120) days. After the initial one
hundred twenty (120) days, a rental fee will be applied to the CITY invoice for use of
said COUNTY fire engine. The rental fee shall be Nine Hundred Forty Four Dollars
($944.00) per day; or Six Thousand Six Hundred Eight Dollars ($6,608.00) per week.
SECTION IV: TERM OF AGREEMENT AND AMENDMENT
A. The term of this Agreement shall be from December 31, 2015, to
December 31, 2016, subject to extensions as set forth below.
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Cooperative Fire Agreement
City of La Quinta
December 31, 2015 to December 31, 2016
4 of 9
B. One (1) year prior to an anticipated date of expiration of this Agreement,
including expiration during an extension period, CITY shall give COUNTY written notice
of whether CITY intends to enter into a new Agreement with COUNTY for Fire Services
and, if so, whether CITY intends to request a change in the level of Fire Services
provided under this Agreement.
C. If CITY and COUNTY are actively negotiating the terms to a new
agreement, the parties may enter into an amendment of this agreement to extend the
term up to an additional one year period. During this extended term, the level of service
and costs for services will remain as set forth in this Exhibit “A” of this Agreement.
SECTION V: TERMINATION
During the term of this Agreement, as established in Section IV above, this
Agreement may only be terminated by the voters of either the COUNTY or the CITY
pursuant to Government Code §55603.5.
SECTION VI: COOPERATIVE OPERATIONS
All Fire Services contemplated under this Agreement shall be performed by both
parties to this Agreement working as one unit; therefore, personnel and/or equipment
belonging to either CITY or COUNTY may be temporarily dispatched elsewhere from
time to time for mutual aid.
SECTION VII: MUTUAL AID
Pursuant to Health and Safety Code Sections 13050 et seq., when rendering
mutual aid or assistance, COUNTY may, at the request of CITY, demand payment of
charges and seek reimbursement of CITY costs for personnel, equipment use, and
operating expenses as funded herein, under authority given by Health and Safety Code
Sections 13051 and 13054. COUNTY, in seeking said reimbursement pursuant to such
request of CITY, shall represent the CITY by following the procedures set forth in Health
and Safety Code Section 13052. Any recovery of CITY costs, less actual expenses,
shall be paid or credited to the CITY, as directed by CITY.
In all such instances, COUNTY shall give timely notice of the possible application
of Health and Safety Code Sections 13051 and 3054 to the officer designated by CITY.
SECTION VIII: SUPPRESSION COST RECOVERY
As provided in Health and Safety Code Section 13009, COUNTY may bring an
action for collection of suppression costs of any fire caused by negligence, violation of
law, or failure to correct noticed fire safety violations. When using CITY equipment and
personnel under the terms of this Agreement, COUNTY may, on request of CITY, bring
such an action for collection of costs incurred by CITY. In such a case CITY appoints
190
Cooperative Fire Agreement
City of La Quinta
December 31, 2015 to December 31, 2016
5 of 9
and designates COUNTY as its agent in said collection proceedings. In the event of
recovery, COUNTY shall apportion to CITY its pro-rata proportion of recovery, less the
reasonable pro-rata costs including legal fees.
In all such instances, COUNTY shall give timely notice of the possible application
of Health and Safety Code Section 13009 to the officer designated by CITY.
In the event the CITY elects to use COUNTY funded Fire Marshal services, the
services will be provided at a cost outlined in COUNTY Ordinance 671(Establishing
Consolidated Fees For Land Use and Related Functions).
SECTION IX: PROPERTY ACCOUNTING
All personal property provided by CITY and by COUNTY for the purpose of
providing Fire Services under the terms of this Agreement shall be marked and
accounted for in such a manner as to conform to the standard operating procedure
established by the COUNTY for the segregation, care, and use of the respective
property of each.
SECTION X: FACILITY
CITY shall provide Fire Station(s), strategically located to provide standard
response time within City of La Quinta from which fire operations shall be conducted. If
the Fire Station(s) are owned by the CITY, the CITY shall maintain the facilities at
CITY’s cost and expense. In the event CITY requests COUNTY to undertake repairs or
maintenance costs or services, the costs and expenses of such repairs or maintenance
shall be reimbursed to COUNTY through the Support Services Cost Allocation, or as a
direct Invoice to the CITY.
SECTION XI: INDEMNIFICATION AND HOLD HARMLESS
To the fullest extent permitted by applicable law, COUNTY shall and does agree
to indemnify, protect, defend and hold harmless CITY, its agencies, districts, special
districts and departments, their respective directors, officers, elected and appointed
officials, employees, agents and representatives (collectively, "Indemnitees") for, from
and against any and all liabilities, claims, damages, losses, liens, causes of action,
suits, awards, judgments and expenses, attorney and/or consultant fees and costs,
taxable or otherwise, of any nature, kind or description of any person or entity, directly
or indirectly arising out of, caused by, or resulting from (1) the Services performed
hereunder by COUNTY, or any part thereof, (2) the Agreement, including any approved
amendments or modifications, or (3) any negligent act or omission of COUNTY, its
officers, employees, subcontractors, agents, or representatives (collectively,
"Liabilities"). Notwithstanding the foregoing, the only Liabilities with respect to which
COUNTY’s obligation to indemnify, including the cost to defend, the Indemnitees does
not apply is with respect to Liabilities resulting from the negligence or willful misconduct
191
Cooperative Fire Agreement
City of La Quinta
December 31, 2015 to December 31, 2016
6 of 9
of an Indemnitee, or to the extent such claims do not arise out of, pertain to or relate to
the scope of work in the Agreement.
To the fullest extent permitted by applicable law, CITY shall and does agree to
indemnify, protect, defend and hold harmless COUNTY, its agencies, departments,
directors, officers, agents, Board of Supervisors, elected and appointed officials and
representatives (collectively, "Indemnitees") for, from and against any and all liabilities,
claims, damages, losses, liens, causes of action, suits, awards, judgments and
expenses, attorney and/or consultant fees and costs, taxable or otherwise, of any
nature, kind or description of any person or entity, directly or indirectly arising out of,
caused by, or resulting from (1) the services performed hereunder, by CITY, or any part
thereof, (2) the Agreement, including any approved amendments or modifications, or
(3) any negligent act or omission of CITY its officers, employees, subcontractors,
agents, or representatives (collectively, "Liabilities"). Notwithstanding the foregoing,
the only Liabilities with respect to which CITY’s obligation to indemnify, including the
cost to defend, the Indemnitees does not apply is with respect to Liabilities resulting
from the negligence or willful misconduct of an Indemnitee, or to the extent such claims
do not arise out of, pertain to or relate to the scope of work in the Agreement.
SECTION XII: AUDIT
A. COUNTY and CITY agree that their designated representative shall have
the right to review and to copy any records and supporting documentation of the other
party hereto, pertaining to the performance of this Agreement. COUNTY and CITY
agree to maintain such records for possible audit for a minimum of three (3) years after
final payment, unless a longer period of records retention is stipulated or as required by
law, and to allow the auditor(s) of the other party access to such records during normal
business hours and to allow interviews of any employees or agents who are responsible
for the maintenance and custody of such records. COUNTY and CITY agree to a similar
right to audit records and interview employees or agents in any subcontract related to
performance of this Agreement. (Gov. Code §8546.7, Pub. Contract Code §10115 et
seq., CCR Title 2, Section 1896).
B. Each party shall bear their own costs in performing a requested audit.
SECTION XIII: DISPUTES
CITY shall select and appoint a “Contract Administrator” who shall, under the
supervision and direction of CITY, be available for contract resolution or policy
intervention with COUNTY, when, upon determination by the Chief that a situation
exists under this Agreement in which a decision to serve the interest of CITY has the
potential to conflict with COUNTY interest or policy. Any dispute concerning a question
of fact arising under the terms of this Agreement which is not disposed of within a
reasonable period of time by the CITY and COUNTY employees normally responsible
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Cooperative Fire Agreement
City of La Quinta
December 31, 2015 to December 31, 2016
7 of 9
for the administration of this Agreement shall be brought to the attention of the Chief
Executive Officer (or designated representative) of each organization for joint resolution.
For purposes of this provision, a “reasonable period of time” shall be ten (10) calendar
days or less. CITY and COUNTY agree to continue with the responsibilities under this
Agreement during any dispute. Disputes that are not resolved informally by and
between CITY and COUNTY representatives may be resolved, by mutual agreement of
the parties, through mediation. Such mediator will be jointly selected by the parties. The
costs associated with mediator shall be shared equally among the participating parties.
If the mediation does not resolve the issue(s), or if the parties cannot agree to
mediation, the parties reserve the right to seek remedies as provided by law or in equity.
The parties agree, pursuant to Battaglia Enterprises v. Superior Court (2013) 215
Cal.App.4th 309, that each of the parties are sophisticated and negotiated this
agreement and this venue at arm’s length. Pursuant to this Agreement, the parties
agree that venue for litigation shall be in the Superior Court of Riverside County. Should
any party attempt to defeat this section and challenge venue in Superior Court, the party
challenging venue stipulates to request the Court change venue to San Bernardino
County and shall not ask for venue in any other County.
Any claims or causes of actions, whether they arise out of unresolved disputes
as specified in this Section or claims by third parties that are made against the
COUNTY, shall be submitted to the Office of the Clerk of the Board for the County of
Riverside in a timely manner. For claims made against the COUNTY that involve CAL-
FIRE employees, to the extent permissible under the COUNTY’s contract with CAL-
FIRE, the claims will be forwarded on to CAL-FIRE for processing.
SECTION XIV: ATTORNEY’S FEES
If CITY fails to remit payments for services rendered pursuant to any provision of
this Agreement, COUNTY may seek recovery of fees pursuant to Section XIII of this
Agreement.
In the event of litigation between COUNTY and CITY to enforce any of the
provisions of this Agreement or any right of either party hereto, the unsuccessful party
to such litigation agrees to pay the prevailing party’s costs and expenses, including
reasonable attorneys’ fees, all of which shall be included in and as a part of the
judgment rendered in such litigation.
SECTION XV: DELIVERY OF NOTICES
Any notices to be served pursuant to this Agreement shall be considered
delivered when deposited in the United States mail and addressed to:
193
Cooperative Fire Agreement
City of La Quinta
December 31, 2015 to December 31, 2016
8 of 9
COUNTY CITY OF LA QUINTA
County Fire Chief City Manager
210 W. San Jacinto Ave. City of La Quinta
Perris, CA 92570 78-495 Calle Tampico
La Quinta, CA 92253
Provisions of this section do not preclude any notices being delivered in person
to the addresses shown above. Delivery in person shall constitute service hereunder,
effective when such service is made.
SECTION XVI: ENTIRE CONTRACT
This Agreement contains the whole contract between the parties for the provision
of Fire Services. It may be amended or modified upon the mutual written consent of the
parties hereto where in accordance with applicable state law. This Agreement does
NOT supplement other specific agreements entered into by both parties for equipment
or facilities, and excepting those equipment or facilities agreements, this Agreement
cancels and supersedes any previous agreement for the same or similar services.
[Signature Provisions on following page]
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Cooperative Fire Agreement
City of La Quinta
December 31, 2015 to December 31, 2016
9 of 9
IN WITNESS WHEREOF, the duly authorized officials of the parties hereto have,
in their respective capacities, set their hands as of the date first hereinabove written.
Dated: ___________________________ CITY OF LA QUINTA
By: _____________________
Title: ____________________
ATTEST: APPROVED AS TO FORM:
By: ____________________________ _______________________________
Title: __________________________
(SEAL)
Dated: ___________________________ COUNTY OF RIVERSIDE
By: ___________________________
Chairman, Board of Supervisors
ATTEST: APPROVED AS TO FORM:
GREGORY P. PRIAMOS,
KECIA HARPER-IHEM County Counsel
Clerk of the Board
By: ____________________________
ERIC STOPHER
Deputy County Counsel
By: _____________________
Deputy
(SEAL)
195
FISCAL YEAR 2015/2016 DECEMBER 31, 2015 TO JUNE 30, 2016 $102,369
FISCAL YEAR 2016/2017 JULY 1, 2016 TO DECEMBER 31, 2016 $264,763
TOTAL ESTIMATED CITY EXHIBIT "A" FOR DEC 31, 2015 TO DEC 31, 2016 $367,132
EXHIBIT "A"
ESTIMATED CITY EXHIBIT "A" BUDGET
ESTIMATE DATED NOV 30, 2015 FOR DECEMBER 31, 2015 TO DECEMBER 31, 2016
AND MEDICAL EMERGENCY SERVICES FOR THE CITY OF LA QUINTA
TO PROVIDE FIRE PROTECTION, FIRE PREVENTION, RESCUE
TO THE COOPERATIVE AGREEMENT
196
CAPTAIN'S ENGINEER FF II
CAPTAIN'S MEDICS ENGINEER'S MEDICS FF II'S MEDICS TOTALS
------------- ------------- -------------------------- ------------- ------------- -------------
STA #32
Medic Engine 199,760 1.0 170,817 1.0 297,686 2.0 331,826 2.0 1,000,089 6.0
STA #70
Medic Engine 199,760 1.0 170,817 1.0 297,686 2.0 331,826 2.0 1,000,089 6.0
STA #93
Medic Engine 199,760 1.0 0 0.0 191,544 1.0 297,686 2.0 331,826 2.0 1,020,816 6.0
Fixed Relief 191,544 1.0 0 0.0 331,826 2.0 523,370 3.0
Vac. Relief - Engine 170,817 1.0 191,544 1.0 165,913 1.0 528,274 3.0
SUBTOTALS 599,281 0 512,451 574,632 893,057 1,493,218 4,072,639
SUBTOTAL STAFF 3 0 3 3 6 9 24
FIRE SAFETY SPECIALIST (PCN 114438)140,759 each 140,759 1.0
EMERGENCY SERVICES COORDINATOR (120745)116,074 each 116,074 1.0
SUBTOTAL $4,329,471 26
ESTIMATED SUPPORT SERVICES
Administrative/Operational 19,444 per assigned Staff **506,127 26.03
Volunteer Program 7,157 Per Entity Allocation 7,157 1.0
Medic Program Medic FTE/Defib Basis 79,339 12.29
Battalion Chief Support 70,247 .27 FTE per Station 210,741 3.0
Fleet Support 51,374 per Fire Suppression Equip 154,122 3.0
ECC Support Calls/Station Basis 146,807
Comm/IT Support Calls/Station Basis 249,507
Hazmat Support 37,712
SUPPORT SERVICES SUBTOTAL 1,391,513
ESTIMATED DIRECT CHARGES 28,746
FIRE ENGINE USE AGREEMENT 25,331 each engine 75,994 3
COOPERATIVE TRUCK AGREEMENT 12.5%192,868 12.50%
TOTAL STAFF COUNT 26.03
ESTIMATED ANNUAL CITY BUDGET $6,018,591
ESTIMATED CITY BUDGET DECEMBER 31, 2015 TO JUNE 30, 2016 $3,009,296
*LA QUINTA ESTIMATED FIRE TAX CREDIT (2,906,927)
NET ESTIMATED CITY BUDGET $102,369
* STRUCTURAL FIRE TAXES 1,730,471
ESTIMATED REDEVELOPMENT PASS THRU 4,271,382
total contract transfer (188,000)
TOTAL ESTIMATED TAX FUNDING 5,813,853
TOTAL TAX FUNDING (6 MONTHS)2,906,927
SUPPORT SERVICES
----------------------24.0 Assigned Staff
Administrative & Operational Services 1.13 Indio Truck (12.5%)
Finance Procurement 0.90 Battalion Chief Support
Training Emergency Services **26.03 Total Assigned Staff
Data Processing Fire Fighting Equip.
Accounting Office Supplies/Equip.3 Fire Stations
Personnel 3,558 Number of Calls
12.29 Assigned Medic FTE
3 Monitors/Defibs
3 Hazmat Stations
21 Number of Hazmat Calls
EXHIBIT "A-i"
TO THE COOPERATIVE AGREEMENT
TO PROVIDE FIRE PROTECTION, FIRE PREVENTION, RESCUE
AND MEDICAL EMERGENCY SERVICES FOR THE CITY OF LA QUINTA
ESTIMATE DATED NOV 30, 2015 FOR DECEMBER 31, 2015 TO JUNE 30, 2016
CITY OF LA QUINTA
Exhibit "A-i"
Page 2 of 5
197
Volunteer Program - Support staff, Workers Comp, and Personal Liability Insurance
Medic Program - Support staff, Training, Certification, Case Review & Reporting, Monitor/
Defibrillator replacement cycle.
Battalion Chief Support - Pooled BC coverage for Cities/Agencies that do not include BC staffing
as part of their contracted services.
Fleet Support - Support staff, automotive costs, vehicle/engine maintenance, fuel costs
Emergency Command Center Support - Dispatch services costs
Communications / IT Support - Support staff, communications, radio maintenance, computer
support functions
Hazmat Program - Support staff, operating costs, and vehicle replacement
FY 15/16 POSITION SALARIES TOP STEP
294,998 DEPUTY CHIEF 25,331 FIRE ENGINE
291,046 DIV CHIEF 19,444 SRVDEL
234,156 BAT CHIEF 7,157 VOL DEL
199,760 CAPT 6,005 MEDIC FTE
218,089 CAPT MEDIC 1,846 MEDIC MONITORS/DEFIBS REPLACEMENT
170,817 ENG 70,247 BATT DEL
191,544 ENG/MEDIC 15,538 ECC STATION
148,843 FF II 28.16 ECC CALLS
165,913 FF II/MEDIC 51,374 FLEET SUPPORT
146,829 FIRE SAFETY SUPERVISOR 26,407 COMM/IT STATION
140,759 FIRE SAFETY SPECIALIST 47.86 COMM/IT CALLS
122,031 FIRE SYSTEMS INSPECTOR 2,247 FACILITY STATION
71,843 OFFICE ASSISTANT III 604.46 FACILITY FTE
72,531 SECRETARY I 3,487 HAZMAT STATION
116,074 COUNTY EMERGENCY SERVICES COORDINATOR 1,209.79 HAZMAT CALLS
1,845 HAZMAT VEHICLE REPLACEMENT
FY 15/16 DIRECT BILL ACCOUNT CODES
520230 Cellular Phone
520300 Pager Service
520320 Telephone Service
520800 Household Expense
520805 Appliances
520815
Cleaning and
Custodial Supp
520830 Laundry Services
520840 Household Furnishings
520845 Trash
521380 Maint-Copier Machines
521440 Maint-Kitchen Equipment
521540
Maint-Office
Equipment
521600 Maint-Service Contracts
521660 Maint-Telephone
521680 Maint-Underground Tanks
522310 Maint-Building and Improvement
522360 Maint-Extermination
522860 Medical-Dental Supplies
522870 Other Medical Care Materials
522890 Pharmaceuticals
523220 Licenses And Permits
523680 Office Equip Non Fixed Assets
526700 Rent-Lease Bldgs
526940 Locks/Keys
527280 Awards/Recognition
529500 Electricity
529510 Heating Fuel
529550 Water
537240 Interfnd Exp-Utilities
542060 Improvements-Building
CITY OF LA QUINTA
Exhibit "A-i"
Page 3 of 5
198
CAPTAIN'S ENGINEER FF II
CAPTAIN'S MEDICS ENGINEER'S MEDICS FF II'S MEDICS TOTALS
------------- ------------- --------------------------- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
STA #32
Medic Engine 209,748 1.0 179,358 1.0 312,570 2.0 348,418 2.0 1,050,094 6.0
STA #70
Medic Engine 209,748 1.0 179,358 1.0 312,570 2.0 348,418 2.0 1,050,094 6.0
STA #93
Medic Engine 209,748 1.0 0 0.0 201,121 1.0 312,570 2.0 348,418 2.0 1,071,857 6.0
Fixed Relief 201,121 1.0 0 0.0 348,418 2.0 549,539 3.0
Vac. Relief - Engine 179,358 1.0 201,121 1.0 174,209 1.0 554,688 3.0
SUBTOTALS 629,245 0 538,074 603,363 937,710 1,567,879 4,276,271
SUBTOTAL STAFF 30 3 3 6 9 24
FIRE SAFETY SPECIALIST (PCN 114438)147,796 each 147,796 1.0
EMERGENCY SERVICES COORDINATOR (120745)121,877 each 121,877 1.0
SUBTOTAL $4,545,944 26
ESTIMATED SUPPORT SERVICES
Administrative/Operational 20,805 per assigned Staff **541,556 26.03
Volunteer Program 7,658 Per Entity Allocation 7,658 1.0
Medic Program Medic FTE/Defib Basis 84,893 12.29
Battalion Chief Support 75,164 .27 FTE per Station 225,493 3.0
Fleet Support 54,970 per Fire Suppression Equip 164,911 3.0
ECC Support Calls/Station Basis 157,084
Comm/IT Support Calls/Station Basis 266,972
Hazmat Support 40,352
SUPPORT SERVICES SUBTOTAL 1,488,919
ESTIMATED DIRECT CHARGES 28,746
FIRE ENGINE USE AGREEMENT 25,331 each engine 75,994 3
COOPERATIVE TRUCK AGREEMENT 12.5%203,776 12.50%
TOTAL STAFF COUNT 26.03
TOTAL ESTIMATED CITY BUDGET $6,343,379
ESTIMATED CITY BUDGET JULY 1, 2016 TO DECEMBER 31, 2016 $3,171,689
*LA QUINTA ESTIMATED FIRE TAX CREDIT (2,906,927)
NET ESTIMATED CITY BUDGET $264,763
*S T R U C T U R A L F I R E T A X E S 1 , 7 3 0 , 4 7 1
ESTIMATED REDEVELOPMENT PASS THRU 4,271,382
total contract transfer (188,000)
TOTAL ESTIMATED TAX FUNDING 5,813,853
TOTAL TAX FUNDING (6 MONTHS)2,906,927
SUPPORT SERVICES
----------------------24.0 Assigned Staff
Administrative & Operational Services 1.13 Indio Truck (12.5%)
Finance Procurement 0.90 Battalion Chief Support
Training Emergency Services **26.03 Total Assigned Staff
Data Processing Fire Fighting Equip.
Accounting Office Supplies/Equip.3 Fire Stations
Personnel 3,558 Number of Calls
12.29 Assigned Medic FTE
3 Monitors/Defibs
3 Hazmat Stations
21 Number of Hazmat Calls
EXHIBIT "A-ii"
TO THE COOPERATIVE AGREEMENT
TO PROVIDE FIRE PROTECTION, FIRE PREVENTION, RESCUE
AND MEDICAL EMERGENCY SERVICES FOR THE CITY OF LA QUINTA
ESTIMATE DATED NOV 30, 2015 FOR JULY 1, 2016 TO DECEMBER 31, 2016
CITY OF LA QUINTA
Exhibit "A-ii"
Page 4 of 5
199
Volunteer Program - Support staff, Workers Comp, and Personal Liability Insurance
Medic Program - Support staff, Training, Certification, Case Review & Reporting, Monitor/
Defibrillator replacement cycle.
Battalion Chief Support - Pooled BC coverage for Cities/Agencies that do not include BC staffing
as part of their contracted services.
Fleet Support - Support staff, automotive costs, vehicle/engine maintenance, fuel costs
Emergency Command Center Support - Dispatch services costs
Communications / IT Support - Support staff, communications, radio maintenance, computer
support functions
Hazmat Program - Support staff, operating costs, and vehicle replacement
FY 16/17 POSITION SALARIES TOP STEP
309,748 DEPUTY CHIEF 25,331 FIRE ENGINE
305,599 DIV CHIEF 20,805 SRVDEL
245,864 BAT CHIEF 7,658 VOL DEL
209,748 CAPT 6,425 MEDIC FTE
228,993 CAPT MEDIC 1,975 MEDIC MONITORS/DEFIBS REPLACEMENT
179,358 ENG 75,164 BATT DEL
201,121 ENG/MEDIC 16,626 ECC STATION
156,285 FF II 30.13 ECC CALLS
174,209 FF II/MEDIC 54,970 FLEET SUPPORT
154,171 FIRE SAFETY SUPERVISOR 28,255 COMM/IT STATION
147,796 FIRE SAFETY SPECIALIST 51.21 COMM/IT CALLS
128,132 FIRE SYSTEMS INSPECTOR 2,404 FACILITY STATION
75,435 OFFICE ASSISTANT III 646.77 FACILITY FTE
76,158 SECRETARY I 3,731 HAZMAT STATION
121,877 EMERGENCY SVC COORD 1,294.48 HAZMAT CALLS
1,974 HAZMAT VEHICLE REPLACEMENT
FY 16/17 DIRECT BILL ACCOUNT CODES
520230 Cellular Phone
520300 Pager Service
520320 Telephone Service
520800 Household Expense
520805 Appliances
520815
Cleaning and
Custodial Supp
520830 Laundry Services
520840 Household Furnishings
520845 Trash
521380 Maint-Copier Machines
521440 Maint-Kitchen Equipment
521540
Maint-Office
Equipment
521600 Maint-Service Contracts
521660 Maint-Telephone
521680 Maint-Underground Tanks
522310 Maint-Building and Improvement
522360 Maint-Extermination
522860 Medical-Dental Supplies
522870 Other Medical Care Materials
522890 Pharmaceuticals
523220 Licenses And Permits
523680 Office Equip Non Fixed Assets
526700 Rent-Lease Bldgs
526940 Locks/Keys
527280 Awards/Recognition
529500 Electricity
529510 Heating Fuel
529550 Water
537240 Interfnd Exp-Utilities
542060 Improvements-Building
CITY OF LA QUINTA
Exhibit "A-ii"
Page 5 of 5
200
Exhibit "B"
CITY OF LA QUINTA
Page 1 of 2
EXHIBIT "B"
TO THE COOPERATIVE AGREEMENT
TO PROVIDE FIRE PROTECTION, FIRE PREVENTION, RESCUE
AND MEDICAL AID FOR THE CITY OF LA QUINTA
DATED DECEMBER 31, 2015
PAYMENT FOR SERVICES
ADDITIONAL SERVICES
A.CREDIT TO CITY
Of the sum CITY has appropriated to provide fire protection services
within the area of responsibility of CITY, COUNTY shall allow a credit to CITY in the
estimated amount that represents 100% of the annual structural fire taxes collected by
the County and annual Redevelopment Pass Thru Funds in excess of $188,300
collected by COUNTY within the areas of responsibility of CITY. The amount of this
credit shall be determined by the County Auditor-Controller prior to the COUNTY's
billing of its claim for services with CITY as approved herein. The claim filed by
COUNTY with CITY shall be those expenses in excess of the credit allowed to CITY. If
the credit allowed to CITY is in excess of the expenses, any excess credit will be
deposited by the COUNTY into a trust fund for future fire facilities, equipment and/or
services within CITY. The procedures for use of the trust funds are outlined as follows:
B.TRUST FUND PROCEDURES
The excess credit deposited in a trust fund for Fiscal Year 2010/2011 and
for subsequent fiscal years during the term of this Agreement shall be expended,
dispersed and accounted for as follows:
The trust funds may be used for future fire facilities, equipment, or for
future services, at CITY's option. CITY shall have the right to designate the use of the
trust funds for one or more of these purposes.
If CITY opts to utilize the trust funds for fire facilities being constructed or
rehabilitated in CITY, COUNTY shall, upon CITY's request, release the funds for that
purpose to CITY, or to CITY's designee, within 30 days of receiving CITY's written
notification of its option.
If CITY opts to utilize the trust funds for equipment purchase or equipment
rental, COUNTY shall, upon CITY's request, release the funds for that purpose to CITY
or to CITY's designee, within 30 days of receiving CITY's written notification of its
option.
201
Exhibit "B"
CITY OF LA QUINTA
Page 2 of 2
If CITY opts to utilize the trust funds for services, it may either request
increased services or supplement the fund as a credit applied to future service costs.
The trust funds shall be maintained in an interest-bearing account. The
interest earned shall be added to the amount of the trust fund.
COUNTY shall provide an annual accounting of the trust fund amount to
CITY by August 1, 2011, and by August 1st of each year thereafter, during the term of
this Agreement. CITY shall review the accounting within 30 days of receipt, and shall
notify COUNTY of any dispute or objection thereto. CITY and COUNTY shall reconcile
any dispute within 30 days thereafter.
If any amount remains in the trust funds upon the effective date of the
termination of this Agreement, the funds shall be returned to CITY within 30 days of the
date of the termination, unless extended. CITY agrees that the returned funds shall
only be used for fire service, equipment and fire facilities.
202
Exhibit "C"
CITY OF LA QUINTA
Page 1 of 2
EXHIBIT "C"
TO THE COOPERATIVE AGREEMENT
TO PROVIDE FIRE PROTECTION, FIRE PREVENTION, RESCUE
AND MEDICAL AID FOR THE CITY OF LA QUINTA
DATED DECEMBER 31, 2015
PAYMENT FOR SERVICES
ADDITIONAL SERVICES
FIRE ENGINE USE AGREEMENT
Station 32
Medic Engine ME32, RCO No. 08-881 $ 23,200.00
Station 70
Medic Engine ME70, RCO No. 07-851 $ 23,200.00
Station 93
Medic Engine ME93, RCO No. 04-816 $ 23,200.00
$ 69,600.00
The Fire Engine Use Agreement is utilized in the event that a fire
engine(s) which was initially purchased by the CITY, and then the CITY elects to have
the COUNTY take responsibility of said fire engine(s). The Fire Engine Use Agreement
guarantees the CITY the use of this fire engine(s), the COUNTY network of equipment,
and resources of the COUNTY.
This fire engine(s) shall be used as an integrated unit for Fire Services as
set forth in this Cooperative Agreement between the COUNTY and CITY, and shall be
stationed primarily in the CITY. The change in ownership of the fire engine does not
waive or supersede any responsibilities of the CITY pursuant to this agreement. This
exhibit is strictly to further detail for the CITY, the responsibilities and costs associated
within the Cooperative Agreement between the COUNTY and CITY; therefore, the Fire
Engine Use Agreement is inseparable.
The CITY will have the option of transferring title of said fire engine(s) to
the COUNTY. If the CITY transfers title of said fire engine(s) to the County, the County
will take ownership of the said fire engine(s), and the County will maintain insurance on
203
Exhibit "C"
CITY OF LA QUINTA
Page 2 of 2
said fire engine(s). If the CITY opts to maintain ownership and title of said fire
engine(s), the CITY will maintain insurance on said fire engine(s). Proof of Insurance is
to be provided to the COUNTY.
The COUNTY will ensure a working fire engine(s) is available for the CITY
at all times under this agreement. All capital improvements and/or betterments to the
fire engine(s) listed above, will be the responsibility and paid for by the COUNTY under
this Agreement.
When the Riverside County Fire Department Fleet personnel determine
the fire engine(s) listed above is due for replacement, the COUNTY will purchase a new
fire engine(s); and, survey the old fire engine(s).
The annual cost for this service is calculated at 1/20 of the replacement
cost. The current replacement cost is $464,000.00. If this Agreement is entered into
mid-year, the annual cost will be prorated accordingly.
204
City of La Quinta
CITY COUNCIL MEETING: December 15, 2015
STAFF REPORT
AGENDA TITLE: APPROVE PLANS, SPECIFICATIONS, AND ENGINEER’S ESTIMATE AND
ADVERTISE THE FRITZ BURNS PARK PARKWAY AND MEDIAN TURF CONVERSION
IMPROVEMENTS FOR BID
RECOMMENDATION
Approve the plans, specifications, and engineer’s estimate, and authorize staff to
advertise the Fritz Burns Park Parkway and Median Turf Conversion Improvements.
EXECUTIVE SUMMARY
This project is in direct response to the severe drought and water reduction
mandates. The project will convert over 36,000 square feet of turf within the
medians at Fritz Burns Park and three small triangular medians along Avenida
Bermudas to the Desert Oasis plant palette (Attachment 1).
The Desert Oasis palette will use hardscape elements with minimal planting,
which will reduce installation costs, long-term maintenance, and water usage,
while maintaining an aesthetically pleasing desert landscape environment.
FISCAL IMPACT
The project is included in the 2015/16 Capital Improvement Program and has General
Funds assigned in the amount of $250,000. The following is the approved project
budget:
Project Total
Professional:$19,375
Design:$25,000
Inspection/Testing/Survey: $24,375
Construction:$143,750
City Administration:$12,500
Contingency:$25,000
Total Budget:$250,000
The engineers estimate for the base bid work plus additive alternates (optional items)
is $183,000. The original construction budget of $143,750 did not include the additive
CONSENT CALENDAR ITEM NO. 16
205
alternate work, which was added to the bid documents to allow Council the option to
award the work (if the bids come in favorably) without nullifying the bid. This
additional work entails conversion of three Avenida Bermudas median islands
(immediately north of Fritz Burns Park). During the project-scoping phase, the
medians were added to potentially achieve overall cost savings due to a larger project
scope.
Staff does not recommend an adjustment to the project budget. The preliminary
engineer’s estimate is based on an 85 percent plan completion level and has not been
refined, nor have construction bids been received. Staff will recommend the
appropriate fiscal recommendation at the time the City Council considers construction
award.
BACKGROUND/ANALYSIS
Fritz Burns Park is located at the southeast corner of Avenida Bermudas and Avenue
52. There are three small triangular shaped median islands located at the
intersections of Avenida Bermudas and Calle Amigo, Calle Barcelona, and Calle Cadiz,
which are north of the Park; the City maintains these turfed medians. When the water
reduction order was issued, irrigation was reduced (these medians were in the
excessive use category) in order to maintain the mature trees, however, the turf has
died. These medians were added to this project due to their proximity to the larger
project. The proposed improvements will remove the turf identified within
Attachment 1 and replace it with the City’s Desert Oasis plant palette (recently
installed in the Calle Amigo parkway, just north of Avenue 52).
The palette features multi-colored crushed rock, decomposed granite, and boulders
with minimal use of drought tolerant plantings as accents within the decorative
hardscape areas. The plans, specifications and engineer’s estimate for this project are
approximately 85 percent complete at this time. However, staff requests approval in
order to install the landscaping by early spring 2016, prior to the 2016 Arts Festival.
Contingent upon City Council’s approval to advertise the project for bid on December
15, 2015, the following represents the project schedule:
City Council Bid Authorization December 15, 2015
Bid Period December 23, 2015 to January 14, 2016
Council Considers Project Award February 2, 2016
Execute Contract and Mobilize February 3 to March 1, 2016
Construction (30 Working Days) March/April 2016
Accept Improvements May 2016
ALTERNATIVES
The City could elect to just bid the Fritz Burns improvements or bid both improvements
and not fund Avenida Bermudas median improvements if the costs are excessive.
Prepared by: Ed Wimmer, P.E., Principal Engineer
Approved by: Timothy R. Jonasson, P.E., Public Works Director/City Engineer
Attachment: 1. Site Plan
206
A TTACHMENT 1 207
208
City of La Quinta
CITY COUNCIL MEETING: December 15, 2015
STAFF REPORT
AGENDA TITLE: APPROVE PLANS, SPECIFICATIONS, AND ENGINEER’S ESTIMATE AND
ADVERTISE THE CIVIC CENTER CAMPUS AND FIRE STATION 70 TURF CONVERSION
IMPROVEMENTS FOR BID
RECOMMENDATION
Approve the plans, specifications, and engineer’s estimate and authorize staff to
advertise the Civic Center Campus and Fire Station 70 Turf Conversion Improvements
for bid.
EXECUTIVE SUMMARY
The project would convert approximately 62,000 square feet of turf within the
Civic Center Campus (Attachment 1) and approximately 20,800 square feet of
turf at Fire Station 70 (Attachment 2) to desert landscape.
The converted landscapes will use the existing water efficient plant palette at
each facility to provide a uniform appearance.
FISCAL IMPACT
This project is included within the 2015/16 Capital Improvement Program and has
General Funds and Fire Funds assigned in the amount of $686,848. The following
represents the approved project budget:
Campus Fire Station 70
Professional:$35,372 $10,405
Design:($3,995) ($2,588)
Technical:$47,700 $14,923
Inspection/Testing/Survey:$46,508 $14,550
Construction:$274,275 $149,226
City Administration: $23,243 $7,253
Contingency:$47,700 $22,276
Total Available Budget:$470,803 $216,045
The preliminary engineer’s estimate for the total project is $342,000, which includes
the Civic Center Campus estimate of $279,000, and Fire Station 70 estimate of
CONSENT CALENDAR ITEM NO. 17
209
$63,000. This project will be submitted under CVWD’s turf conversion program for
potential savings of up to $1 per square-foot, which may generate approximately
$82,800 back to the City for future turf conversion projects.
Staff is not recommending an adjustment to the project budget at this time. The
preliminary engineer’s estimate is based on an 85 percent plan completion level and
has not been refined, nor have construction bids been received. Staff will recommend
the appropriate fiscal recommendation at the time the City Council considers
construction award.
BACKGROUND/ANALYSIS
The Coachella Valley must reduce water consumption by 36 percent at each service
meter. City staff has been taking steps to reduce water consumption since early 2014.
A majority of City facilities have met this goal; however, based on recent water data
from CVWD, it will be difficult for the City to maintain parks and street landscape areas
with the reduced water budgets. Therefore, it will be advantageous to remove turf
from ornamental areas.
The plans, specifications and engineer’s estimate for this project are approximately 85
percent complete. However, staff requests approval of the plans, specifications and
engineer’s estimate and authorization to advertise the project for bid at this time in
order to install the landscaping by early spring 2016.
Contingent upon City Council’s approval to advertise the project for bid on December
15, 2015, the following is the anticipated project schedule:
City Council Bid Authorization December 15, 2015
Bid Period December 23, 2015 to January 14, 2016
Council Considers Project Award January 19, 2016
Execute Contract and Mobilize January 20 to February 5, 2016
Construction (30 Working Days) February/March 2016
Accept Improvements April 2016
ALTERNATIVES
Since this project is part of the City’s water conservation strategy, which is necessary
to meet the State water conservation mandate, no alternative is recommended.
Prepared by: Steve Howlett, Golf, Parks, & Facilities Manager
Approved by: Timothy R. Jonasson, P.E., Public Works Director/City Engineer
Attachments: 1. Campus Conversion Areas Site Plan
2. Fire Station 70 Conversion Areas Site Plan
210
T K D ASSOCIATES, INCORPORATED
DECEMBER, 2015
ATTACHMENT 1
211
212
ATTACHMENT 2 213
214
City of La Quinta
CITY COUNCIL MEETING: December 15, 2015
STAFF REPORT
AGENDA TITLE: APPROPRIATE FUNDS FROM COMMUNITY DEVELOPMENT BLOCK GRANT
AND AWARD CONTRACT TO ROADWAY ENGINEERING & CONTRACTING, INC. TO
CONSTRUCT THE MISCELLANEOUS PARKS AMERICANS WITH DISABILITIES ACT
IMPROVEMENTS PROJECT
RECOMMENDATION
Appropriate $112,221 from Community Development Block Grant funds and award a
contract to Roadway Engineering & Contracting Inc., in the amount of $268,048, to
construct the Miscellaneous Parks Americans with Disabilities Act Improvements
project.
EXECUTIVE SUMMARY
The Miscellaneous Parks Americans with Disabilities Act (ADA) Improvements
project involves seven City parks and the Museum (Attachment 1). The project
entails installing site furnishings, and reconstructing parking stalls and
walkways.
After the City Council approved the plans, specifications, and engineer’s
estimate on November 3, 2015, the City received notice that additional
Community Development Block Grant (CDBG) funds were available. This
funding authorization, in the amount of $112,221, expires on March 31, 2016.
An addendum was prepared for additional work to use these funds.
Roadway Engineering & Contracting Inc. of Mira Loma submitted the lowest
responsive bid in the amount of $268,047.70 and is therefore recommended for
award of this construction contract.
FISCAL IMPACT
This project is programmed to receive $204,844 in Quimby funds. Subsequently, the
City was advised that $310,485 in CDBG funds were available for FY 2013/14 and
$112,221 for FY 2014/15. Council action on November 2, 2015 appropriated $310,485
(FY 2013/14 CDBG funding) to this project. Staff now recommends appropriating an
additional $112,221 (FY 2015/16 CDBG Funds) to this project. The reasons are (1) the
FY 2015/16 funds must be expended before March 31, 2016 and (2) the non-ADA
compliant playground equipment at Velasco, Eisenhower and Saguaro Parks should be
replaced.
Contingent upon this additional appropriation, the following represents the project
budget:
CONSENT CALENDAR ITEM NO. 18
215
Project Total Quimby Funds CDBG Funds
Design/Professional:$55,110 $55,110 -
Inspection/Testing/Survey: $30,272 $30,272 -
Construction: $422,706 - $422,706
City Administration: $15,524 $15,524 -
Contingency (10% of Whole): $103,938 $103,938 -
Total Budget: $627,550 $204,844 $422,706
BACKGROUND/ANALYSIS
In 2011, the City conducted an ADA accessibility survey prepared by Disability Access
Consultants. It identified the need for ADA improvements to meet current ADA
requirements. To date, the City has completed ADA improvements at La Quinta Park,
Civic Center Campus, La Quinta Library, SilverRock parking lot, Museum, YMCA, and the
Sports Complex.
The work at Velasco, Eisenhower, Adams, Desert Pride, Saguaro, and Seasons Parks,
includes installing benches, removing and replacing drinking fountains, and
reconstructing handrails. At Fritz Burns Park, the work includes reconfiguring the
existing ADA parking stalls, curb ramps, and sidewalks. The work at the La Quinta
Museum involves reconstructing parking lot stalls and a curb ramp, and signing. Also,
curb ramps would be reconstructed at Saguaro and Adams Parks, and a driveway
would be reconstructed at Seasons Park.
With the additional CDBG funding, non-ADA compliant playground equipment at
Velasco, Eisenhower and Saguaro Parks would be replaced. The City Council approved
a 2016/17 Capital Improvement Program (CIP) project to replace this equipment using
General Fund monies. The CDBG Funds would replace the General Fund monies. Since
the CDBG requirements call for the $122,221 of FY 2015/16 funds to be expended by
March 31, 2016, staff will negotiate a change order with Roadway Engineering &
Contracting to install the playground equipment.
On December 3, 2015, the City received three sealed bids (Attachment 2). Roadway
Engineering & Contracting Inc. submitted the lowest responsive bid in the amount of
$268,047.70, and is therefore recommended for this construction contract. The
following is the project schedule:
Award of Construction December 15, 2015
Execute Contract and Mobilize December 16, 2015 --- January 11, 2016
Construction (45 Calendar Days) January 12 --- March 14, 2016
Accept Improvements March/April 2016
216
ALTERNATIVES
Since this project is largely funded with CDBG funds that have restricted use and must
be expended by March 31, 2016, no alternative action is recommended.
Prepared by: Ed Wimmer, P.E., Principal Engineer
Approved by: Timothy R. Jonasson, P.E., Public Works Director/City Engineer
Attachments: 1. Vicinity Map
2. Bid Comparison Summary
217
218
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ATTACHMENT 1 219
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BID OPENING: December 3, 2015
Miscellaneous Parks ADA Improvements
PROJECT NO. 2013-02
CDBG PROJECT 4.LQ.19-14 4.LQ.23-15
Item
No.Description QTY Unit Unit Price Extended Price Unit Price Extended Price Unit Price Extended Price Unit Price Extended Price
1 Mobilization 1 LS $ 60,000.00 60,000.00$ 27,000.00$ 27,000.00$ 58,240.00$ 58,240.00$ 22,880.00$ 22,880.00$
2 Dust Control 1 LS $ 2,500.00 2,500.00$ 500.00$ 500.00$ 1,344.00$ 1,344.00$ 15,857.00$ 15,857.00$
3 Traffic Control 1 LS $ 4,000.00 4,000.00$ 1,500.00$ 1,500.00$ 2,800.00$ 2,800.00$ 4,629.00$ 4,629.00$
4 Remove Existing AC Pavement and Base 10,037 SF $ 1.70 17,062.90$ 1.50$ 15,055.50$ 2.80$ 28,103.60$ 1.51$ 15,155.87$
5 Remove Existing 6” Curb and Curb & Gutter 184 LF $ 7.00 1,288.00$ 12.00$ 2,208.00$ 2.86$ 526.24$ 20.62$ 3,794.08$
6 Remove Existing Ribbon Gutter 125 LF $ 9.00 1,125.00$ 15.00$ 1,875.00$ 3.36$ 420.00$ 23.89$ 2,986.25$
7 Remove Existing Concrete Sidewalk and Ramps 3452 SF $ 2.00 6,904.00$ 2.10$ 7,249.20$ 2.21$ 7,628.92$ 2.59$ 8,940.68$
8 Modify Ex Landscaping & Irrigation As Needed 1 LS $ 2,500.00 2,500.00$ 1,500.00$ 1,500.00$ 3,360.00$ 3,360.00$ 1,322.50$ 1,322.50$
9 Remove Drinking Fountain and Concrete Pad 1 LS $ 500.00 500.00$ 500.00$ 500.00$ 1,176.00$ 1,176.00$ 985.00$ 985.00$
10 Minor Grading 1 LS $ 8,000.00 8,000.00$ 9,400.00$ 9,400.00$ 4,076.80$ 4,076.80$ 10,641.00$ 10,641.00$
11 Construct 6” Curb and Curb & Gutter Per City of La Quinta STD
201 and 210 158 LF $ 30.00 4,740.00$ 28.00$ 4,424.00$ 30.91$ 4,883.78$ 36.56$ 5,776.48$
12 Construct 3” AC Pavement over 4.5” Base 9,828 SF $ 4.00 39,312.00$ 3.20$ 31,449.60$ 3.35$ 32,923.80$ 4.19$ 41,179.32$
13 Furnish & Install Concrete Wheel Stop 12 EA $ 80.00 960.00$ 40.00$ 480.00$ 205.33$ 2,463.96$ 67.00$ 804.00$
14 3’ Wide Ribbon Gutter 131 LF $ 30.00 3,930.00$ 30.00$ 3,930.00$ 56.28$ 7,372.68$ 37.53$ 4,916.43$
15 Curb Ramps per City of La Quinta STD 250 Case A 1 EA $ 2,500.00 2,500.00$ 2,500.00$ 2,500.00$ 2,385.60$ 2,385.60$ 4,199.00$ 4,199.00$
16 Curb Ramps per City of La Quinta STD 250 Case B 1 EA $ 3,000.00 3,000.00$ 2,200.00$ 2,200.00$ 4,278.40$ 4,278.40$ 4,199.00$ 4,199.00$
17 Curb Ramps per City of La Quinta STD 250 Case E 2 EA $ 2,000.00 4,000.00$ 2,000.00$ 4,000.00$ 2,923.20$ 5,846.40$ 4,199.00$ 8,398.00$
18 Construct Sidewalk per City of La Quinta STD 240 2,304 SF $ 6.00 13,824.00$ 4.00$ 9,216.00$ 4.66$ 10,736.64$ 6.92$ 15,943.68$
19 2" Grind and Overlay 369 SF $ 5.00 1,845.00$ 7.00$ 2,583.00$ 15.02$ 5,542.38$ 25.39$ 9,368.91$
20 Crack Seal and Construct Guard Top ( 2 coats ) over existing
paving 25,851 SF $ 0.40 10,340.40$ 0.40$ 10,340.40$ 0.69$ 17,837.19$ 0.32$ 8,272.32$
21 Install Drinking Fountain and Connect to Existing Plumbing 1 LS $ 7,000.00 7,000.00$ 4,400.00$ 4,400.00$ 4,480.00$ 4,480.00$ 6,857.00$ 6,857.00$
22 Furnish and Install 3/8” Minus Desert Gold Decomposed Granite 925 SF $ 1.25 1,156.25$ 4.00$ 3,700.00$ 3.03$ 2,802.75$ 4.93$ 4,560.25$
23 Signing and Striping 1 LS $ 8,000.00 8,000.00$ 2,500.00$ 2,500.00$ 3,270.40$ 3,270.40$ 16,532.00$ 16,532.00$
24 Remove and Reset Plaque onto Proposed Sidewalk 1 EA $ 500.00 500.00$ 500.00$ 500.00$ 560.00$ 560.00$ 617.00$ 617.00$
25 Dust Control 1 LS $ 1,000.00 1,000.00$ 500.00$ 500.00$ 1,344.00$ 1,344.00$ 662.00$ 662.00$
26 Traffic Control 1 LS $ 2,000.00 2,000.00$ 500.00$ 500.00$ 2,800.00$ 2,800.00$ 6,612.50$ 6,612.50$
27 Remove Existing AC Pavement and Base 548 SF $ 1.70 931.60$ 7.00$ 3,836.00$ 3.68$ 2,016.64$ 13.63$ 7,469.24$
28 Remove Existing Concrete Sidewalk and Ramps 89 SF $ 2.00 178.00$ 10.00$ 890.00$ 10.07$ 896.23$ 6.48$ 576.72$
29 Modify Ex Landscaping & Irrigation As Needed 1 LS $ 1,000.00 1,000.00$ 600.00$ 600.00$ 5,376.00$ 5,376.00$ 1,323.00$ 1,323.00$
30 2" Grind and Overlay 32 SF $ 5.00 160.00$ 25.00$ 800.00$ 16.80$ 537.60$ 46.29$ 1,481.28$
31 Construct 3” AC Pavement over 4.5” Class 2 Base 548 SF $ 4.00 2,192.00$ 8.00$ 4,384.00$ 6.16$ 3,375.68$ 14.33$ 7,852.84$
32 Construct 6” Curb Per City of La Quinta STD 210 6 LF $ 30.00 180.00$ 30.00$ 180.00$ 70.93$ 425.58$ 154.00$ 924.00$
33 Curb Ramps per City of La Quinta STD 250 Case E 1 EA $ 2,000.00 2,000.00$ 2,500.00$ 2,500.00$ 2,979.20$ 2,979.20$ 4,199.00$ 4,199.00$
34 Construct Sidewalk per City of La Quinta STD 240 80 SF $ 6.00 480.00$ 10.00$ 800.00$ 19.53$ 1,562.40$ 27.77$ 2,221.60$
35 Furnish and Install 3/8” Minus Decomposed Granite 26 SF $ 1.25 32.50$ 12.00$ 312.00$ 74.44$ 1,935.44$ 80.34$ 2,088.84$
36 Furnish & Install Concrete Wheel Stop 2 EA $ 80.00 160.00$ 40.00$ 80.00$ 224.00$ 448.00$ 67.00$ 134.00$
37 Signing and Striping 1 LS $ 3,000.00 3,000.00$ 700.00$ 700.00$ 6,720.00$ 6,720.00$ 4,629.00$ 4,629.00$
38 Dust Control 1 LS $ 1,000.00 1,000.00$ 500.00$ 500.00$ 1,344.00$ 1,344.00$ 662.00$ 662.00$
39 Traffic Control 1 LS $ 2,000.00 2,000.00$ 500.00$ 500.00$ 2,800.00$ 2,800.00$ 6,612.50$ 6,612.50$
40 Remove Existing Concrete Sidewalk and Ramps 228 SF $ 2.00 456.00$ 5.00$ 1,140.00$ 5.01$ 1,142.28$ 2.76$ 629.28$
41 Modify Ex Landscaping & Irrigation As Needed 1 LS $ 1,000.00 1,000.00$ 500.00$ 500.00$ 4,816.00$ 4,816.00$ 1,323.00$ 1,323.00$
42 Construct 6” Curb and Gutter Per City of La Quinta STD 201 22 LF $ 30.00 660.00$ 30.00$ 660.00$ 70.87$ 1,559.14$ 760.00$ 16,720.00$
43 Curb Ramps per City of La Quinta STD 250 Case E 2 EA $ 2,000.00 4,000.00$ 2,500.00$ 5,000.00$ 1,994.72$ 3,989.44$ 4,199.00$ 8,398.00$
44 Construct Sidewalk per City of La Quinta STD 240 80 SF $ 6.00 480.00$ 10.00$ 800.00$ 19.53$ 1,562.40$ 41.69$ 3,335.20$
45 Furnish and Install 3/8” Minus Decomposed Granite 69 SF $ 1.25 86.25$ 15.00$ 1,035.00$ 30.84$ 2,127.96$ 80.34$ 5,543.46$
46 Remove and Install Compliant Bench 2 EA $ 4,000.00 8,000.00$ 1,700.00$ 3,400.00$ 2,240.00$ 4,480.00$ 3,197.00$ 6,394.00$
47 Remove and Install New Fountain 1 EA $ 6,800.00 6,800.00$ 5,000.00$ 5,000.00$ 4,480.00$ 4,480.00$ 6,857.00$ 6,857.00$
48 Dust Control 1 LS $ 1,000.00 1,000.00$ 500.00$ 500.00$ 1,344.00$ 1,344.00$ 662.00$ 662.00$
49 Traffic Control 1 LS $ 6,000.00 6,000.00$ 500.00$ 500.00$ 2,800.00$ 2,800.00$ 6,612.50$ 6,612.50$
50 Remove Existing Concrete Sidewalk and Ramps 1,140 SF $ 2.50 2,850.00$ 3.00$ 3,420.00$ 3.44$ 3,921.60$ 2.57$ 2,929.80$
51 Modify Ex Landscaping & Irrigation As Needed 1 LS $ 1,000.00 1,000.00$ 500.00$ 500.00$ 5,891.20$ 5,891.20$ 1,323.00$ 1,323.00$
52 Construct Curb Ramp Case A Per City of La Quinta STD 250,
BCR to ECR 2 EA $ 4,500.00 9,000.00$ 2,500.00$ 5,000.00$ 2,576.00$ 5,152.00$ 4,199.00$ 8,398.00$
53 Remove and Install Compliant Bench 4 EA $ 4,000.00 16,000.00$ 1,700.00$ 6,800.00$ 2,240.00$ 8,960.00$ 3,197.00$ 12,788.00$
54 Remove and Install New Fountain 1 EA $ 6,800.00 6,800.00$ 5,000.00$ 5,000.00$ 4,995.20$ 4,995.20$ 6,857.00$ 6,857.00$
55 Remove and Install Compliant Bench 1 EA $ 4,000.00 4,000.00$ 2,000.00$ 2,000.00$ 2,240.00$ 2,240.00$ 3,021.28$ 3,021.28$
56 Remove and Install New Fountain and Concrete Pad 1 EA $ 8,000.00 8,000.00$ 6,000.00$ 6,000.00$ 4,995.20$ 4,995.20$ 10,194.00$ 10,194.00$
57 Remove Sand Box Complete 1 EA $ 8,000.00 8,000.00$ 8,000.00$ 8,000.00$ 3,360.00$ 3,360.00$ 4,648.94$ 4,648.94$
58 Remove and Install Compliant Bench 2 EA $ 4,000.00 8,000.00$ 1,700.00$ 3,400.00$ 2,240.00$ 4,480.00$ 3,197.00$ 6,394.00$
59 Remove and Install New Fountain 1 EA $ 6,800.00 6,800.00$ 5,000.00$ 5,000.00$ 4,480.00$ 4,480.00$ 6,857.00$ 6,857.00$
60 Dust Control 1 LS $ 1,000.00 1,000.00$ 500.00$ 500.00$ 1,344.00$ 1,344.00$ 662.00$ 662.00$
61 Traffic Control 1 LS $ 2,000.00 2,000.00$ 500.00$ 500.00$ 2,800.00$ 2,800.00$ 6,612.50$ 6,612.50$
62 Remove Existing Concrete Sidewalk and Ramps 210 SF $ 2.00 420.00$ 10.00$ 2,100.00$ 6.40$ 1,344.00$ 5.67$ 1,190.70$
63 Modify Ex Landscaping & Irrigation As Needed 1 LS $ 2,500.00 2,500.00$ 500.00$ 500.00$ 5,040.00$ 5,040.00$ 1,322.50$ 1,322.50$
64 Curb Ramps per City of La Quinta STD 250 Case B, Mod with
3rd Wing 1EA $ 4,000.00 4,000.00$ 2,500.00$ 2,500.00$ 4,592.00$ 4,592.00$ 4,199.00$ 4,199.00$
65 Remove and Install Compliant Bench 1 EA $ 4,000.00 4,000.00$ 2,000.00$ 2,000.00$ 2,240.00$ 2,240.00$ 3,197.00$ 3,197.00$
66 Remove and Install New Fountain 1 EA $ 6,800.00 6,800.00$ 5,000.00$ 5,000.00$ 4,995.20$ 4,995.20$ 6,857.00$ 6,857.00$
67 Dust Control 1 LS $ 1,000.00 1,000.00$ 500.00$ 500.00$ 1,344.00$ 1,344.00$ 662.00$ 662.00$
68 Traffic Control 1 LS $ 2,000.00 2,000.00$ 600.00$ 600.00$ 2,800.00$ 2,800.00$ 6,612.50$ 6,612.50$
69 Remove Existing Concrete Sidewalk and Ramps 50 SF $ 2.00 100.00$ 10.00$ 500.00$ 26.88$ 1,344.00$ 5.67$ 283.50$
70 Modify Ex Landscaping & Irrigation As Needed 1 LS $ 5,000.00 5,000.00$ 600.00$ 600.00$ 3,584.00$ 3,584.00$ 1,322.50$ 1,322.50$
71 Construct Sidewalk per City of La Quinta STD 240 61 SF $ 6.00 366.00$ 10.00$ 610.00$ 200.28$ 12,217.08$ 54.67$ 3,334.87$
72 Construct 6” Curb & Gutter Per City of La Quinta STD 201 6 LF $ 30.00 180.00$ 30.00$ 180.00$ 71.12$ 426.72$ 153.70$ 922.20$
73 Remove Existing Driveway and Curb and Gutter 253 SF $ 2.50 632.50$ 10.00$ 2,530.00$ 11.51$ 2,912.03$ 12.76$ 3,228.28$
74 Construct Driveway Per City of La Quinta STD 221 302 SF $ 12.00 3,624.00$ 15.00$ 4,530.00$ 20.72$ 6,257.44$ 31.58$ 9,537.16$
75 Remove Handrails 1 LS $ 2,000.00 2,000.00$ 750.00$ 750.00$ 2,464.00$ 2,464.00$ 1,354.00$ 1,354.00$
76 Construct Handrails 34 LF $ 150.00 5,100.00$ 100.00$ 3,400.00$ 461.18$ 15,680.12$ 175.00$ 5,950.00$
77 Remove and Install New Fountain with Dog Dish 2 EA $ 7,000.00 14,000.00$ 5,500.00$ 11,000.00$ 6,115.20$ 12,230.40$ 9,833.00$ 19,666.00$
GRAND TOTAL: $374,956.40 $268,047.70 $408,011.72 $463,062.46
* Note: Denotes Calculation Error
Engineers Estimate - Saguaro Park Saguaro Park Saguaro Park Saguaro Park
Engineers Estimate - Seasons Park Seasons Park Seasons Park Seasons Park
Desert Pride Park
Adams Street Park
Engineers Estimate - Eisenhower Park Eisenhower Park Eisenhower Park Eisenhower Park
Engineers Estimate - Velasco Park Velasco Park Velasco Park Velasco Park
TriStar Contracting Inc.
Engineers Estimate - Fritz Burns Park
Engineers Estimate - La Quinta Museum La Quinta Museum
Fritz Burns Park Fritz Burns Park Fritz Burns Park
La Quinta Museum La Quinta Museum
Engineers Estimate Roadway Engineering &
Contracting Doug Wall Construction
Engineers Estimate - Adams Street Park Adams Street Park Adams Street Park
Engineers Estimate - Desert Pride Park Desert Pride Park Desert Pride Park
12/3/2015 Page 1 of 1
ATTACHMENT 2
221
222
City of La Quinta
CITY COUNCIL MEETING: December 15, 2015
STAFF REPORT
AGENDA TITLE: APPROVE PURCHASE OF NETWORK FIREWALL AND NETWORK SWITCHES
FROM CISCO SYSTEMS, INC. FOR SCHEDULED REPLACEMENT OF INFORMATION
TECHNOLOGY NETWORK INFRASTRUCTURE
RECOMMENDATION
Approve purchase of a network firewall and network switches equipment from CISCO
Systems, Inc. for scheduled replacement of network information technology
infrastructure and authorize the City Manager to execute Cisco’s financial proposal.
EXECUTIVE SUMMARY
•Network infrastructure is hardware equipment and software programs for the
City’s network that enable connectivity, communication and technology system
operations.
•Information Technology (IT) equipment has a lifecycle determined by the
equipment’s useful-life and/or available technical support.
•The City’s network switches are nearing the end of their technical support lifecycle
and the network firewall is on limited software support.
•SIGMAnet, the City’s IT service provider, recommends replacing existing equipment
with CISCO system products, based on performance and technical support.
•By acquiring a new firewall and network switches, the City will access the latest
technology, renew the lifecycle of its network infrastructure, increase its network
speed and capacity, and boost its security system.
FISCAL IMPACT
The cost to purchase, install, and obtain three-year licensing is $113,800. This includes a
$28,000 reduction from the original proposal, negotiated by staff. CISCO offers three-
year financing at zero percent interest, with annual payments of $37,900. Staff
recommends financing this upgrade. A leasing option was not available. Funding is
included in the 2015/16 Information Technology budget.
BACKGROUND/ANALYSIS
The IT Network Infrastructure is the network that allows computers to exchange data.
The current network switches were installed in 2006 and they are nearing the end of their
technical support lifecycle. The manufacturer will no longer provide equipment
CONSENT CALENDAR NO. 19
223
protection or software support, to detect problems and identify solutions. This exposes
the City to unplanned network outages. The City’s information technology
equipment/software replacement plan calls for replacing this equipment this fiscal year.
SIGMAnet conducted an IT assessment and recommended that the City upgrade the
network switches and firewall. Before recommending this system, SIGMAnet and staff
evaluated competing systems for performance, security and price. This review resulted
in selecting the CISCO Meraki system for both switches and firewall. CISCO is an
established American multinational technology company that designs, manufactures and
sells networking equipment. It is well known for its reliability, strong performance and
technical support. The Meraki MX firewall represents a generational upgrade in security.
As a Next-Generation Intrusion Prevention System (IPS), Sourcefire, CISCO’s market
leading security provider with access to global information, supports the Meraki MX
firewall. For example, if a CISCO firewall in another country discovers a threat, it
automatically reports it to CISCO’s firewalls throughout the world. It also reviews
incoming information individually, and if an email/attachment or information is deemed a
threat, it will destroy it before it enters the network system. These improvements will
increase network speed by 10 times and provide the latest network security. Most
importantly, the City will have renewed its network infrastructure, eliminating potential
system outages.
Staff solicited bids from manufactures and system vendors. The lowest price can be
achieved by purchasing this equipment and support services directly from the
manufacture, CISCO. In addition, CISCO offered zero percent financing. The City’s
purchasing policy allows for a sole source purchase.
ALTERNATIVES
The City could elect to bid this purchase. Staff explored this option and concluded that
the City would not be able to purchase this equipment at a lower cost and with the
favorable financing package.
Prepared by: Martha Mendez, Business Analyst
Approved by: Frank J. Spevacek, City Manager
Attachment: 1. CISCO Financing Proposal
224
CSC Rep:Nick Ferrari
Title:Inside Sales Representative
Phone:610-386-2833
Email:nferrari@cisco.com
Date:12/6/2015
Prepared For:Vendor Information:
Company:Company:SigmaNet
Address:Address:4290 Brickell Street
Ontario, CA 91761
Contact:Contact:
Phone:Phone:
Email:Email:
Hardware: Financing Costs Breakdown:
$85,587.84
Total Amount Financed $85,587.84
Part Number Manufacturer Description Qty Unit Price Amount
1 MX100-HW Meraki, Inc 1 $1,948.05 $1,948.05
2 LIC-MX100-SEC-3YR Meraki, Inc 1 $3,900.00 $3,900.00
3 MS420-24-HW Meraki, Inc 2 $8,422.05 $16,844.10
4 LIC-MS420-24-3YR Meraki, Inc 2 $936.00 $1,872.005MS220-48LP-HW Meraki, Inc 7 $1,963.65 $13,745.55
6 LIC-MS220-48LP-3YR Meraki, Inc 7 $218.40 $1,528.80
7 MS320-48LP-HW MERAKI 5 $3,543.15 $17,715.75
8 LIC-MS320-48LP-3YR Cisco Systems, Inc 5 $393.90 $1,969.50
9 MS320-24-HW Meraki, Inc 1 $2,068.95 $2,068.95
10 LIC-MS320-24-3YR Meraki, Inc 1 $230.10 $230.10
11 MS320-24P-HW Meraki, Inc 1 $2,279.55 $2,279.55
12 LIC-MS320-24P-3YR Meraki, Inc 1 $253.50 $253.50
13 MS220-24P-HW Meraki, Inc 3 $1,121.25 $3,363.75
14 LIC-MS220-24P-3YR Meraki, Inc 3 $124.80 $374.40
15 MA-SFP-10GB-SR MERAKI 20 $388.05 $7,761.00
16 MA-SFP-1GB-TX MERAKI 20 $154.05 $3,081.00
17 SFP-H10GB-CU3M= Cisco Systems, Inc 8 $39.00 $312.00
$79,248.00
Tax - $6,339.84
Grand total - $85,587.84
Hardware: Payment Structure Breakdown:
3 Annual Payments
Payment Range 1 thru 3
Payment Amount $28,529.28 Per year.
*First Annual payment will be due 90 days from date of payment to vendor.
Professional Services: Financing Costs Breakdown:
Meraki Project $28,159.92
Total Amount Financed $28,159.92
SIGMAnet Project Plan for Professional Services:
10GBASE-CU SFP+ Cable 3 Meter
Preliminary US GPL - Meraki MS320 Cloud Managed 24 P
Preliminary US GPL - Meraki MS320-24 Enterprise License
Preliminary US GPL - Meraki MS320 Cloud Managed 24 P
Preliminary US GPL - Meraki MS320-24P Enterprise Licens
Preliminary US GPL - Meraki MS220 Cloud Managed 24 Port
Preliminary US GPL - Meraki MS220-24P Enterprise Licens
Preliminary US GPL - Meraki 10G Base SR Multi-Mode
Preliminary US GPL - Meraki 1 GbE SFP Copper Module
Preliminary US GPL - Meraki MX100 Security Appliance
0% Interest, 90 Day Deferral
Preliminary US GPL - Meraki MX100 Advanced Security
Preliminary US GPL - Meraki MS420 Cloud Managed 24 P
Preliminary US GPL - Meraki MS420-24 Enterprise Licens
Preliminary US GPL - Meraki MS220 Cloud Managed 48 P
Preliminary US GPL - Meraki MS220-48LP Enterprise Licen
Preliminary US GPL - Meraki MS320 Cloud Managed 48 P
Preliminary US GPL - Meraki MS320-48LP Enterprise Licen
La Qunita, CA 92253
City of La Quinta
78495 Calle Tampico
Financing Proposal
It's a fact that 8 out of 10 businesses finance their technology equipment...and what better provider of that financing optio n than a company that knows technology?
It just makes sense. Cisco provides industry -leading technology and we offer an easy and affordable way to finance it.
Financing through Cisco Systems Capital Corporation ("CSCC") is a convenient and smart financial choice. We offer easy finan cing solutions at competitive rates,
with flexible terms and simplified documentation.
Cisco Systems Capital is pleased to offer you the following financing solution(s):
&RVJQNFOUBOE-JD'FF
1SPGFTTJPOBM4FSWJDFT
5PUBM
ATTACHMENT 1
225
226
City of La Quinta
CITY COUNCIL MEETING: December 1, 2015
STAFF REPORT
AGENDA TITLE: RECEIVE AND FILE COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR
YEAR ENDED JUNE 30, 2015
RECOMMENDATION
Receive and file the Comprehensive Annual Financial Report for the year ended June
30, 2015.
EXECUTIVE SUMMARY
California cities are required to obtain an annual audit of their financial statements
by an independent auditor at the close of each fiscal year.
The annual audit produces the Comprehensive Annual Financial Report (CAFR)
(Attachment 1)the
. (Attachment 3).
The independent auditors rendered
.
The 2014/15 General Fund Year-End results were presented in depth at the
December 1, 2015, Council Meeting.
FISCAL IMPACT None.
BACKGROUND/ANALYSIS
audit firm pursuant to California law. The results (including City background information,
statistical data, and detailed financial reports) are compiled and presented in the CAFR.
Additionally, two letters accompany
presents the indepe internal
controls. The intent of the Report on Internal Controls is to identify discrepancies
regarding internal financial management controls and financial management practices.
Mr. Bryan Gruber, CPA and Audit Partner of Lance Soll & Lunghard, LLP, will be attending
the December 15, 2015, Council meeting to answer questions regarding the audit and/or
the CAFR.
BUSINESS ITEM NO. 1
227
Audit Opinion
In the (located at the front of the financial section of the
CAFR)
for the year ended June 30, 2015, which is the
most favorable conclusion. The independent audit involved examining evidence
supporting the amounts and disclosures in the financial statements, assessing the
accounting principles used and estimates made by management, and evaluating the
overall financial statement presentation.
Additionally, the identifies audit findings
and difficulties encountered during the audit process; there were no findings or difficulties
noted.
As a part of the audit process, the Ci
control over financial reporting, with the intent of identifying potential areas of concern.
No concerns were reported.
Comprehensive Annual Financial Report
The CAFR contains a myriad of comprehensive information pertaining to all aspects of the
the
general, special revenue, housing, capital project, internal service, and other fund types).
procedures, and the results of the independent audit. The report presents financial
information both by major fund type and in a comprehensive manner; thus, the
information contained in the report can be somewhat complex to interpret. Because of
this, specific detailed information regarding the General Fund year-end budget results
was presented at the December 1, 2015, Council meeting.
The Management Discussion and Analysis section of the CAFR (starting on page 5)
provides an overview and analysis of the financial statements that is useful when reading
through the CAFR. The more significant results are:
• For all funds, assets exceeded liabilities at the close of 2014/15 by
$699,555,000 (net position). Of this amount, $69,470,000 (unrestricted net
position) may be used to meet the government's ongoing obligations to citizens
and creditors. Approximately $567,614,000 or 81 percent was invested in
capital assets and is not available to meet ongoing obligations.
• As of the close of 2014/15, governmental funds reported combined ending
fund balances of $103,230,000, an increase of $2,102,000 in comparison with
the prior year. This net change is due primarily to overall General Fund
228
revenues exceeding budget projections by 5.6 percent. The bulk of the
increased revenue is attributable to higher than expected property tax revenue.
The City received $1,308,000 more than budgeted in distributions of property
tax from the Redevelopment Property Tax Trust Fund.
•
$4,825,000. The City transferred $6,995,000 or 20 percent of the final
approved loan balance between the City and the Former Redevelopment
Agency from the General Fund to the Housing Authority. This was done in
accordance with HSC 34191.4, which states that 20 percent of the sponsoring
entity loan repayments must be transferred to the Low/Mod Fund. The transfer
restated the beginning fund balances of both funds to correctly reflect the
allocation of future loan payments between the General Fund and the Housing
Fund.
This transfer out of the General Fund (reduction in receivables, not cash) was
offset by the additional revenue received of approximately $2.1 million
resulting in a net decrease in the General Fund ending balance of $4.8 million.
Conclusion
The purpo CAFR is to provide relevant financial information to
governing body, citizens, staff, creditors, investors and other concerned readers. The
Finance Department worked diligently to provide accurate and transparent information in
the preparation of the CAFR and the positive audit results affirm this.
ALTERNATIVES
The CAFR and audit are required to be completed and presented publicly by State law;
therefore no alternatives are applicable.
Prepared by: Rita Conrad, Finance Director
Approved by: Frank J. Spevacek, City Manager
Attachments: 1. CAFR
2. Audit Communication Letter
3. Report on Internal Control
229
230
CITY OF LA QUINTA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2015
ATTACHMENT 1
231
CITY OF LA QUINTA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2015
Prepared By
FINANCE DEPARTMENT
232
THIS PAGE INTENTIONALLY LEFT BLANK
233
CITY OF LA QUINTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30, 2015
TABLE OF CONTENTS
Page
Number
INTRODUCTORY SECTION
Letter of Transmittal ................................................................................................................................. i
List of Principal Officials ......................................................................................................................... vi
Organizational Chart ............................................................................................................................. vii
Certificate of Achievement for Excellence in Financial Reporting (GFOA) .......................................... viii
FINANCIAL SECTION
Independent Auditors’ Report ................................................................................................................. 1
Management’s Discussion and Analysis ................................................................................................. 5
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position ............................................................................................................... 17
Statement of Activities .................................................................................................................... 18
Fund Financial Statements:
Balance Sheet – Governmental Funds .......................................................................................... 20
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position ..................................................................................................... 23
Statement of Revenues, Expenditures and Changes in Fund
Balances – Governmental Funds ................................................................................................... 24
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement of Activities ....................... 27
Statement of Net Position – Proprietary Funds .............................................................................. 28
Statement of Revenues, Expenses and Changes in Fund Net Position –
Proprietary Funds ........................................................................................................................... 29
Statement of Cash Flows – Proprietary Funds ............................................................................... 30
Statement of Fiduciary Net Position - Fiduciary Funds .................................................................. 32
234
CITY OF LA QUINTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30, 2014
TABLE OF CONTENTS
Page
Number
FINANCIAL SECTION (CONTINUED)
Statement of Changes in Fiduciary Net Position - Fiduciary Funds ............................................... 33
Notes to Financial Statements .............................................................................................................. 35
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule by Department – General Fund ................................................ 77
Budgetary Comparison Schedules – Major Special Revenue Funds
Housing Authority PA No. 1 ..................................................................................................... 78
Housing Authority PA No. 2 ..................................................................................................... 79
Schedules of Proportionate Share of Net Pension Liability:
Miscellaneous Plan Tier I ......................................................................................................... 80
Miscellaneous Plan Tier II ........................................................................................................ 81
Miscellaneous PEPRA Plan ..................................................................................................... 82
Schedules of Plan Contributions:
Miscellaneous Plan Tier I ......................................................................................................... 83
Miscellaneous Plan Tier II ........................................................................................................ 84
Miscellaneous PEPRA Plan ..................................................................................................... 85
Notes to Required Supplementary Information .............................................................................. 87
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet - Non-Major Governmental Funds ....................................................... 90
Combining Statement of Revenues, Expenditures and Changes
in Fund Balance - Non-Major Governmental Funds ....................................................................... 98
Budgetary Comparison Schedules – Special Revenue Funds
State Gas Tax ....................................................................................................................... 105
Library .................................................................................................................................... 106
Federal Assistance ................................................................................................................. 107
SLEBG ................................................................................................................................... 108
Indian Gaming ........................................................................................................................ 109
Lighting and Landscaping ...................................................................................................... 110
Quimby ................................................................................................................................... 111
Art In Public Places ................................................................................................................ 112
South Coast Air Quality .......................................................................................................... 113
AB 939 ................................................................................................................................... 114
Development Agreement ....................................................................................................... 115
Law Enforcement ................................................................................................................... 116
235
CITY OF LA QUINTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30, 2015
TABLE OF CONTENTS
Page
Number
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (CONTINUED)
Justice Assistance Grant........................................................................................................ 117
Measure A .............................................................................................................................. 118
Budgetary Comparison Schedules – Capital Projects Funds
Capital Improvement .............................................................................................................. 119
Civic Center ............................................................................................................................ 120
Transportation ........................................................................................................................ 121
Parks and Recreation ............................................................................................................. 122
Library Development .............................................................................................................. 123
Street Facility .......................................................................................................................... 124
Park Facility ............................................................................................................................ 125
Fire Facility ............................................................................................................................. 126
Budgetary Comparison Schedules – Debt Service Funds
Financing Authority ................................................................................................................ 127
Combining Statement of Net Position – Internal Service Funds .................................................. 130
Combining Statement of Revenues, Expenses and Changes
in Fund Net Position – Internal Service Funds ............................................................................. 131
Combining Statement of Cash Flows – Internal Service Funds ................................................... 132
Combining Statement of Net Position – All Agency Funds .......................................................... 134
Combining Statement of Changes in Assets and Liabilities – All Agency Funds ......................... 134
STATISTICAL SECTION
Net Position by Component .......................................................................................................... 138
Changes in Net Position ............................................................................................................... 140
Changes in Net Position – Governmental Activities ..................................................................... 142
Changes in Net Position – Business-type Activities ..................................................................... 145
Fund Balances of Governmental Funds ....................................................................................... 146
Changes in Fund Balances of Governmental Funds .................................................................... 148
Assessed Value and Estimated Actual Value of Taxable Property .............................................. 151
Direct and Overlapping Property Tax Rates ................................................................................. 152
Principal Property Taxpayers ....................................................................................................... 154
Property Tax Levies and Collections ............................................................................................ 155
236
CITY OF LA QUINTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30, 2015
TABLE OF CONTENTS
Page
Number
STATISTICAL SECTION (CONTINUED)
Ratios of Outstanding Debt by Type............................................................................................. 156
Ratio of General Bonded Debt Outstanding ................................................................................. 158
Direct and Overlapping Debt ........................................................................................................ 159
Legal Debt Margin Information ..................................................................................................... 160
Pledged-Revenue Coverage ........................................................................................................ 162
Demographic and Economic Statistics ......................................................................................... 163
Principal Employers ...................................................................................................................... 164
Full-time City Employees .............................................................................................................. 165
Operating Indicators ..................................................................................................................... 166
Capital Asset Statistics ................................................................................................................. 167
Schedule of Insurance in Force .................................................................................................... 168
237
238
ii 239
iii 240
iv 241
v 242
City of La Quinta
Directory of Officials
June 30, 2015
CITY COUNCIL
Linda Evans, Mayor
Kristy Franklin, Mayor Pro Tem
Lee Osborne, Council Member
John Peña, Council Member
Robert Radi, Council Member
ADMINISTRATION
Frank J. Spevacek, City Manager
Rita Conrad, Finance Director
Edie Hylton, Community Services Director
William H. Ihrke, City Attorney
Les Johnson, Community Dev. Director
Tim Jonasson, Public Works Director/City Engineer
Susan Maysels, City Clerk
vi 243
vii
244
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247
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
City of La Quinta, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of City of La Quinta, California,
(the City) as of and for the year ended June 30, 2015, and the related notes to the financial statements,
which collectively comprise the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the City’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
248
To the Honorable Mayor and Members of the City Council
City of La Quinta, California
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund information of the City of La Quinta, California, as of June 30, 2015,
and the respective changes in financial position and, where applicable, cash flows thereof for the year
then ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, the budgetary comparison schedules for the general fund, Housing Authority PA
No. 1, and Housing Authority PA No. 2, the schedule of proportionate share in net pension liability, and
the schedule of plan contributions be presented to supplement the basic financial statements. Such
information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The introductory section, combining and individual
nonmajor fund financial statements and schedules, and the statistical section are presented for purposes
of additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the combining and individual nonmajor fund financial statements and
schedules are fairly stated in all material respects in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
2 249
To the Honorable Mayor and Members of the City Council
City of La Quinta, California
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 7, 2015 on our consideration of the City’s internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the City’s internal control over
financial reporting and compliance.
Brea California
December 7, 2015
3 250
THIS PAGE INTENTIONALLY LEFT BLANK
4 251
Management's Discussion and Analysis
As management of the City of La Quinta, we offer readers of the City of La Quinta’s
financial statements this narrative, overview and analysis of the financial activities for
the fiscal year ended June 30, 2015. We encourage readers to consider the information
presented here in conjunction with additional information that we have furnished in our
letter of transmittal, which can be found in an earlier section of this report. All amounts,
unless otherwise indicated, are rounded to the nearest thousands of dollars.
Financial Highlights
• The assets of the City of La Quinta exceeded its liabilities at the close of the most
recent fiscal year by $699,555,000 (net position). Of this amount, $69,470,000
(unrestricted net position) may be used to meet the government's ongoing
obligations to citizens and creditors. Approximately $567,614,000 or 81% was
invested in capital assets and is not available to meet ongoing obligations.
• The governmental activities total net position increased by $3,173,000 and the
Business-Type total net position increased by $2,546,000 which is attributable to the
SilverRock Golf Course.
• As of the close of the current fiscal year, the City of La Quinta’s governmental funds
reported combined ending fund balances of $103,230,000, an increase of
$2,102,000 in comparison with the prior year. This net change is due to General
Fund revenues overall being 5.6% higher than budgeted. The bulk of the increased
revenue is attributable to higher than expected property tax revenue. The City
received $1,308,000 more than budgeted in distributions of property tax from the
Redevelopment Property Tax Trust Fund (RPTTF).
• The primary reason for this increase is due to a distribution in current year of
property tax from the Redevelopment Property Tax Trust Fund (RPTTF) in the
amount of $2,037,000. The City received a similar distribution in the prior year.
• At the end of the current fiscal year, the unassigned General Fund Balance
comprised $13,837,000, or 16%, of the total $86,809,000 General Fund Balance and
represented 34% of total General Fund budgeted expenditures including transfers.
• The total governmental activities debt decreased by $800,000 during the current
fiscal year from $6,199,000 to $5,399,000. This decrease is mainly due to scheduled
debt service payments that occurred during the fiscal year.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of La
Quinta’s basic financial statements. The City of La Quinta’s basic financial statements
are comprised of three components: 1) government-wide financial statements, 2) fund
financial statements, and 3) notes to the financial statements. This report also contains
other supplementary information in addition to the basic financial statements
themselves.
5 252
Government-wide financial statements
The government-wide financial statements are designed to provide readers with a
broad overview of the City of La Quinta’s finances, in a manner similar to a
private-sector business.
The statement of net position presents information on all of the City of La Quinta’s
assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with
the difference between the two reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial
position of the City of La Quinta is improving or deteriorating.
The statement of activities presents information showing how the government's net
position changed during the most recent fiscal year. All changes in net position
are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will only result in cash flows in
future fiscal periods, for example, earned but unused vacation leave.
Both of the government-wide financial statements mentioned above distinguish
functions of the City of La Quinta that are principally supported by taxes and
intergovernmental revenues (governmental activities) from other functions that are
intended to recover all or a significant portion of their costs through user fees and
charges (business-type activities). The governmental activities of the City of La
Quinta include general government, public safety, community services,
community development and public works. The business-type activities of the City
of La Quinta include the SilverRock Golf course operations.
The government-wide financial statements include not only the City of La Quinta
itself (known as the primary government), but also the La Quinta Financing
Authority and the La Quinta Housing Authority. Although legally separate entities,
they function for all practical purposes as departments of the City of La Quinta,
and therefore have been included as an integral part of the primary government.
The government-wide financial statements can be found in the table of contents
under the Financial Section of this report.
Fund financial statements
A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The City
of La Quinta, like other state and local governments, uses fund accounting to
ensure and demonstrate compliance with finance-related legal requirements. All
of the funds of the City of La Quinta can be divided into three categories:
governmental funds, proprietary funds, and fiduciary funds.
6 253
Governmental funds
Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund
financial statements focus on near-term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of
the fiscal year. Such information may be useful in evaluating a government's near-
term financing requirements.
Because the focus of governmental funds is narrower than that of the
government-wide financial statements, it is useful to compare the information
presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so,
readers may better understand the long-term impact of the government's near-term
financing decisions. Both the governmental fund balance sheet and the
governmental fund statement of revenues, expenditures, and changes in fund
balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The City of La Quinta maintains thirty (30) individual governmental funds, which are
distinguished between major and non-major funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund
statement of revenues, expenditures, and changes in fund balances for the general
fund, two (2) capital project funds, and two (2) special revenue funds. These
five (5) funds are considered to be major funds. Data from the other
twenty five (25) governmental funds are combined into a single, aggregated
presentation. Individual fund data for each of these non-major governmental funds
is provided in the form of combining statements elsewhere in this report.
The City of La Quinta adopts an annual appropriated budget for its general fund. A
budgetary comparison schedule has been provided for the general fund to
demonstrate compliance with this budget.
The basic governmental fund financial statements can be found in the table of
contents under the heading Basic Financial Statements.
Proprietary funds
Proprietary funds can be broken down into enterprise and internal service funds.
The City of La Quinta maintains one (1) enterprise fund. Enterprise funds are used
to report the same functions presented as business-type activities in the
government-wide financial statements. The City of La Quinta uses an enterprise
fund to account for its SilverRock Golf Course operations, which is considered to
be a major fund. Internal service funds are an accounting device used to
accumulate and allocate costs internally among the City of La Quinta’s various
functions. The City of La Quinta has three (3) internal service funds to account for
its major equipment replacement including vehicles, for its information technology
systems, and for its park equipment and facility needs. Because these
7 254
three services predominantly benefit governmental rather than business-type
functions, they have been included within governmental activities in the
government-wide financial statements. The internal service funds are combined
into a single, aggregated presentation in the proprietary fund financial statements.
Individual fund data for the internal service funds is provided in the form of combining
statements elsewhere in this report
The basic proprietary fund financial statements can be found on the pages listed in the
table of contents for Proprietary Funds: Statement of Net Position, Statement of
Revenues, Expenses and Changes in Fund Net Position, and Statement of Cash Flows.
Fiduciary funds
Fiduciary funds, also called agency funds, are used to account for resources held for
the benefit of parties outside the government. Fiduciary funds are not reflected in the
government-wide financial statements because the resources of those funds are not
available to support the City of La Quinta’s own programs. The accounting used for
fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fund financial statements can be found on the pages listed in the
table of contents for Fiduciary Funds: Statement of Fiduciary Net Position – Fiduciary
Funds.
Notes to the financial statements
The notes to the financial statements provide additional information that is essential to
obtain a full understanding of the data provided in the government-wide and fund
financial statements. The notes to the financial statements can be found on the pages
listed in the table of contents for Notes to Financial Statements.
Other information
In addition to the basic financial statements and accompanying notes, this report also
presents the combining statements referred to earlier in connection with non-major
governmental funds, internal service funds, and agency funds. The non-major
governmental funds’ combining statements are presented immediately following the
Required Supplementary Information while the combining statements for the internal
service funds and agency funds are presented following the budgetary comparison
schedules for the debt service funds.
Government-wide financial analysis
As noted earlier, net position may serve over time as a useful indicator of a
government's financial position. In the case of the City of La Quinta, assets and deferred
outflows exceeded liabilities and deferred inflows by $699,555,000 at the close of the
most recent fiscal year, which is $2,316,000 less than the previous year. This reduction
is attributed to the deferred inflow of resources relating to pensions and the GASB 68
calculation.
8 255
The largest portion of the City of La Quinta’s Net Position, 81%, for both this year and
last year, reflects its investment in capital assets (e.g., land, buildings; machinery, and
equipment), net of related debt. The City of La Quinta uses these capital assets to
provide services to citizens; consequently, these assets are not available for future
spending. However, it should be noted that the resources needed to repay the related
debt must be provided from other sources, since the capital assets themselves cannot
be used to liquidate it.
City of La Quinta Net Position
2015 2014 2015 2014 2015 2014
Current and other assets $ 169,644,485 $ 163,106,840 $ (4,567,837) $ (4,404,429) $ 165,076,648 $ 158,702,411
Capital assets 523,599,258 527,743,729 44,118,111 41,354,565 567,717,369 569,098,294
Total assets 693,243,743 690,850,569 39,550,274 36,950,136 732,794,017 727,800,705
Deferred outflows of resources 783,364 - - - 783,364 -
Current liabilities 18,834,801 20,092,633 324,810 270,237 19,159,611 20,362,870
Non-current liabilities 12,573,105 5,566,976 - - 12,573,105 5,566,976
Total liabilities 31,407,906 25,659,609 324,810 270,237 31,732,716 25,929,846
Deferred intflows of resources 2,289,402 - - - 2,289,402 -
Net position:
Net investment in capital assets
Restricted 62,472,221 53,669,248 62,472,221 53,669,248
Unrestricted 74,362,189 83,907,046 (4,892,647) (4,674,666) 69,469,542 79,232,380
Total net position $ 660,329,799 $ 665,190,960 $ 39,225,464 $ 36,679,899 $ 699,555,263 $ 701,870,859
Governmental activities Business-type activities Total
523,495,389 527,614,666 44,118,111 41,354,565 567,613,500 568,969,231
An additional portion of the City of La Quinta's net position (9% versus 8% in the prior
year) represents resources that are subject to external restrictions on how they may be
used. The remaining balance of unrestricted Net Position - $69,470,000 (10%) may be
used to meet the government's ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City of La Quinta is able to report positive
balances in all three categories of Net Position, both for the government as a whole, as
well as for its separate governmental activities; however, the business type unrestricted
Net Position had a deficit in its net position of $4,893,000, which is approximately
$218,000 more than the previous year.
9 256
Governmental activities
Governmental activities Net Position increased by $3,173,000 accounting for a
.48% percent change in the Net Position from the previous year. Key elements of these
changes are as follows:
City of La Quinta Changes in Net Position
2015 2014 Change 2015 2014 Change 2015 2014 Change
Program revenues:
Charges for services $ 3,771,088 $ 4,500,263 $ (729,175) $ 3,561,857 $ 3,481,424 $ 80,433 $ 7,332,945 $ 7,981,687 $ (648,742)
Operating grants and
contributions 16,829,107 14,587,153 2,241,954 - - - 16,829,107 14,587,153 2,241,954
Capital grants and
contributions 3,536,444 3,981,286 (444,842) 2,872,122 - 2,872,122 6,408,566 3,981,286 2,427,280
General revenues, transfers
and extraordinary item:
Property taxes 8,776,491 9,193,753 (417,262) - - - 8,776,491 9,193,753 (417,262)
Other taxes 18,208,067 17,671,307 536,760 - - - 18,208,067 17,671,307 536,760
Investment income 1,981,343 2,190,357 (209,014) 2,043 1,567 476 1,983,386 2,191,924 (208,538)
Motor vehicle in lieu 3,486,367 3,291,042 195,325 - - - 3,486,367 3,291,042 195,325
Extraordinary gain/loss on
dissolution of RDA - (6,402,450) 6,402,450 - - - (6,402,450) 6,402,450
Transfers (247,739) (500,000) 252,261 247,739 500,000 (252,261) - - -
Miscellaneous 296,346 243,498 52,848 915,164 678,046 237,118 1,211,510 921,544 289,966
Total revenues 56,637,514 48,756,209 7,881,305 7,598,925 4,661,037 2,937,888 64,236,439 53,417,246 10,819,193
Expenses: -
General government 5,166,732 4,830,239 336,493 - - - 5,166,732 4,830,239 336,493
Public safety 21,636,149 21,169,423 466,726 - - - 21,636,149 21,169,423 466,726
Planning and development 2,212,013 3,098,015 (886,002) - - - 2,212,013 3,098,015 (886,002)
Community services 5,992,362 4,130,085 1,862,277 - - - 5,992,362 4,130,085 1,862,277
Public works 18,116,732 12,610,994 5,505,738 - - - 18,116,732 12,610,994 5,505,738
Interest on long-term debt 340,716 405,977 (65,261) - - - 340,716 405,977 (65,261)
Golf course - - - 5,053,360 4,971,977 81,383 5,053,360 4,971,977 81,383
Total expenses 53,464,704 46,244,733 7,219,971 5,053,360 4,971,977 81,383 58,518,064 51,216,710 7,301,354
Increase in net position
before restatements 3,172,810 2,511,476 661,334 2,545,565 (310,940) 2,856,505 5,718,375 2,200,536 3,517,839
Restatements (8,033,971) - (8,033,971) - - - (8,033,971) - (8,033,971)
Increase in net position (4,861,161) 2,511,476 (7,372,637) 2,545,565 (310,940) 2,856,505 (2,315,596) 2,200,536 (4,516,132)
Net position - beginning 665,190,960 662,679,484 2,511,476 36,679,899 36,990,839 (310,940) 701,870,859 699,670,323 2,200,536
Net position - ending $ 660,329,799 $ 665,190,960 $ (4,861,161) $ 39,225,464 $ 36,679,899 $ 2,545,565 $ 699,555,263 $ 701,870,859 $ (2,315,596)
Total
Revenues:
Governmental Business-type
activities activities
• Revenues overall increased by $10,819,000 with the two largest category
increases being capital grants and contributions and operating grants and
contributions with the exception of the extraordinary loss. The extraordinary loss
on dissolution of the former Redevelopment Agency occurred last year and was
related to the State disallowing $6,402,000 in loans owed to the City from the
former Redevelopment Agency.
•Expenses for Governmental Activities overall increased by $7,220,000
(15.6 percent increase). The biggest increases were in the Governmental
Activities categories of public works which increased by $5,506,000 or 44 percent
and community services which increased by $1,862,000 or 44 percent.
• Expenses related to public works governmental activities increased $5,506,000
as compared to the previous year. The primary reason for this change was the
pavement management maintenance program and the contribution from the City
to the SilverRock golf fund for the SilverRock Canal Relocation project.
10 257
• Expenses related to community services governmental activities were
$1,862,000 higher than the previous reporting period due to a depreciation
reallocation, storm costs, and a contribution made to the Coachella Valley
Rescue Mission.
• Governmental activities contributed to the business-type activities golf course
improvements that were reclassified from construction in progress in the current
year. These improvements were funded by bonds proceeds from the former
redevelopment agency. The primary government transferred $248,000 to the
SilverRock Golf fund in order to subsidize operations according to the adopted
budget.
Business-type activities
This was the tenth full year of operations for the SilverRock Golf fund since the golf
course began operation in early 2005.
Net Position increased by $2,546,000 related mostly to the capital contribution of
$2,872,000 from governmental activities.
Charges for services primarily consisted of green fees which totaled $3,562,000,
and was $80,000 higher than the previous year, with golf course expenses of
$5,053,000, which was $81,000 more than the previous year.
• In fiscal year 2013-2014 the General Fund transferred $500,000 to the
SilverRock Golf fund in order to offset revenue loss from portions of the course
being closed while the Coachella canal realignment project was underway. In
fiscal year 2014-2015, the General Fund transferred $248,000 to the SilverRock
Gold fund in order to subsidize operations.
• The total outstanding advance due to the General Fund from the inception of the
Golf Course opening is $5,339,000. It is anticipated that these advances will be
repaid from future income from SilverRock activities such as transient occupancy
tax, sales tax and golf course net income generated on the site in future years.
Financial Analysis of the Government's Funds
As noted earlier, the City of La Quinta uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements.
Governmental funds - The focus of the City of La Quinta’s governmental funds is
to provide information on near-term inflows, outflows, and balances of the funds.
Such information is useful in assessing the City of La Quinta's financing
requirements. In particular, unreserved fund balance may serve as a useful
measure of a government's net resources available for spending at the end of the
fiscal year.
11 258
As of the end of the current fiscal year, the City of La Quinta's governmental funds
reported combined ending fund balances of $103,230,000 as follows:
City of La Quinta Governmental Fund Balances
Category General Fund Percent All Other Funds Percent Total Funds Percent
Nonspendable 50,028,311$ 58% -$ 0% 50,028,311$ 48%
Restricted - 0% 29,125,442 177% 29,125,442 28%
Committed 22,942,941 26%- 0% 22,942,941 22%
Unassigned 13,837,312 16% (12,703,744) -77% 1,133,568 1%
Total 86,808,564$ 16,421,698$ 103,230,262$
Governmental fund balances ended the year totaling $103,230,000, an increase of
$2,102,000 in comparison with the prior years’ ending balance of $101,128,000. Of this
amount $50,028,000 or 48% constitutes non-spendable reserves, which means that
these reserves are not available to fund operating expenditures of the organization;
$29,125,000 or 28% are restricted fund balances which are the result of external
limitations on spending; $22,943,000 or 22% are committed fund balances which are
the result of self-imposed limitations placed upon the funds by the Governing Board
responsible for adopting the fund budget. The remaining fund balance or $1,134,000
represents unassigned fund balances or the residual net resources after taking into
consideration the other classifications.
General Fund
The general fund is the chief operating fund of the City of La Quinta. At the end of the
current fiscal year, unassigned fund balance of the general fund was $13,837,000 while
total fund balance reached $86,809,000. As a measure of the general fund's liquidity, it
may be useful to compare the total general fund balance to budgeted expenditures
(including transfers out). The total fund balance represents 216 % of the total budgeted
expenditures.
The City of La Quinta’s general fund balance decreased by $4,825,000 in Fiscal Year
2014-2015. Key factors for this decrease are as follows:
• The City transferred $6,995,000 or 20% of the final approved loan balance between
the City and the Former Redevelopment Agency from the general fund to the housing
authority. This transfer was done in accordance with HSC 34191.4 which states that
20% of the sponsoring entity loan repayments must be transferred to the Low/Mod
Fund. The transfer restated the fund balances to correctly reflect the allocation of
future loan payments between the General Fund and the Housing PA No. 1 Fund.
• The general fund’s net change before taking into account the loan transfer to the
Housing Authority is an increase of $2,170,000. This net change is due to General
Fund revenues overall being 5.6% higher than budgeted. The bulk of the increased
revenue is attributable to higher than expected property tax revenue. The City
received $1,308,000 more than budgeted in distributions of property tax from the
Redevelopment Property Tax Trust Fund (RPTTF).
12 259
• Actual expenditures were $2,474,000 million less than the final budget, but
$4,363,000 higher than FY 2013-2014 expenditure levels. $2,204,000 of expenditure
savings has been carried over into FY 2014-2015 for continuing appropriations related
to operations and Capital Improvement Project (CIP) continuing appropriations.
Housing Authority Project Area No. 1 Fund
The Housing Authority fund is used to account for the housing activities of the Housing
Authority in Project Area No. 1. The primary purpose of this fund is to promote and to
provide quality housing in the City. The fund balance increased by $7,055,000 to end the
year at $10,941,000. This increase includes the transfer of the of the loan balance from
general fund in the amount of $6,995,000.
Housing Authority Project Area No. 2 Fund
The Housing Authority fund is used to account for the housing activities of the Housing
Authority in Project Area No. 2. The primary purpose of this fund is to promote and to
provide quality housing in the City. The fund balance increased by $91,000 to end the
year at $1,294,000.
Capital Improvement Fund
The Capital Improvement fund is primarily used to record the expenditure of funds for
capital projects. The fund had thirty five (35) active Capital Improvement Projects
budgeted during Fiscal Year 2014-15. The three most active projects during the year
were the Senior Center Expansion ($2,104,000), relocation of the Coachella Canal at
SilverRock ($1,854,000), and Adams Street Bridge Improvements project ($1,527,000).
Other major projects budgeted in the future include Madison Street Median Landscape
Conversion, Miles Avenue Median Island Landscape Improvements, North La Quinta
Regional Skate and BMX Park, Calle Tampico at Avenida Bermudas Drainage
Improvements, Civic Center Campus Parkway Turf Conversion, Eisenhower Drive at
Montezuma Roundabout, Eisenhower Drive Pavement Rehabilitation, Park and Facility
Security Systems, and Roudel Drainage Improvements .
Civic Center Fund
The Civic Center fund is primarily used to collect developer impact fees for the
construction of the City Hall expansion and the repayment of a portion of the debt service
on the original City Hall construction. The City Hall expansion was completed in Fiscal
Year 2007-08 and the final repayment of the original City Hall construction bonds is
scheduled in Fiscal Year 2018-19. A $7.1 million advance from the General Fund is
outstanding at the end of Fiscal Year 2014-15.
Proprietary funds
The City of La Quinta's proprietary funds provide the same type of information found in
the government-wide financial statements, but in more detail.
13 260
The financial activities of the City enterprise fund have already been addressed in the
discussion of the City of La Quinta’s business-type activities. In addition, the City has
three (3) internal service funds to accumulate resources for equipment and vehicle
replacement, information technology activities, and for park equipment and facility
replacement.
General Fund Budgetary Highlights
During the year there was a $4,249,000 increase in appropriations and transfers out
between the original ($35,947,000) and final amended budget ($40,196,000). Following
are the main components of the changes:
• $1,863,000 in carryover appropriations from Fiscal Year 2013-2014 to Fiscal Year
2014-2015.
• $270,000 for drainage studies and projects
• $350,000 for flood damage repairs
• $632,000 toward the City’s share of a multijurisdictional freeway intersection project
(Jefferson & Interstate 10)
• $350,000 for a major street paving project (Monroe St.)
The budget increases were possible because of additional unanticipated revenues and
the availability of unassigned reserves.
Capital Asset and Debt Administration
Capital assets
The City of La Quinta’s investment in capital assets for its governmental and business-
type activities as of June 30, 2015, amounts to $567,717,000 (net of accumulated
depreciation). This investment in capital assets includes land, right of way, buildings
and improvements, machinery and equipment, streets and bridges, and construction in
progress. The investment in capital assets decreased this fiscal year due to the disposal
of capital assets and depreciation expense which exceeded the purchase of capital
assets.
14 261
The following chart lists the asset categories for governmental and business like
activities net of depreciation:
City of La Quinta Capital Assets (net of depreciation)
2015 2014 2015 2014 2015 2014
Land $ 69,816,674 $ 69,609,372 $39,712,954 $36,840,832 $109,529,628 $106,450,204
Buildings and improvements 43,404,761 45,518,392 4,200,754 4,425,600 47,605,515 49,943,992
Equipment and furniture 929,668 1,062,785 204,403 88,133 1,134,071 1,150,918
Vehicles 191,390 154,456 - - 191,390 154,456
Infrastructure 384,832,840 389,031,690 - - 384,832,840 389,031,690
Construction in progress 24,423,925 22,367,034 - - 24,423,925 22,367,034
Total $523,599,258 $527,743,729 $44,118,111 $41,354,565 $567,717,369 $569,098,294
Governmental Business-type
Description activities activities Total
Major capital asset events during the current fiscal year included the following:
Governmental activities
Recording infrastructure improvements, street improvements, street right of way,
street sidewalks and curbs and gutters, traffic signals, and street medians
Highway 111 at Washington Street intersection improvements $949,000
Sports Complex Lighting Rehabilitation and Expansion $839,000
Land purchase for future fire station $207,000
Horseshoe Drive Drainage Improvements $41,000
Business-type activities
• The Golf Course capital asset balance at June 30, 2015, was $44,118,000, net of
accumulated depreciation. The balance increased by $2,763,000 of which
$2,872,000 is attributable to the contribution of capital improvements funded by the
Former Redevelopment Agency from the City. The remaining difference relates to
capitalized equipment purchased and depreciation expense for the year.
Additional information on the City of La Quinta’s capital assets can be found in Note 6 to
the financial statements.
Long-term debt
At the end of the current fiscal year, the City of La Quinta had total bonded debt
outstanding of $5,399,000. Of the total amount, $2,405,000 of this debt amount
represents bonds secured solely by specified revenue sources.
15 262
City of La Quinta Outstanding Debt
2015 2014
Capital leases $ 103,869 $ 129,063
Compensated absences 853,497 838,982
General Liability Retrospective
Deposit - 209,320
Loans payable 2,036,277 2,092,100
Revenue bonds 2,405,000 2,930,000
Total $5,398,643 $6,199,465
Governmental
Debt type:
activities
The total outstanding debt decreased by $800,000 during Fiscal Year 2014-15. The
decrease was due to regular scheduled debt service payments. Business-type activities
carried no long term debt during fiscal years 2014-2015 and 2013-2014.
Additional information on the City of La Quinta's long-term debt can be found in Note 7
of the financial statements.
Economic Factors and Next Year's Budgets and Rates
These factors were considered in preparing the City of La Quinta’s budget for Fiscal
Year 2015-2016:
• The 12 month average unemployment rate for the City of La Quinta as of December
31, 2014 was 5.2%. This rate was significantly lower than the State-wide
unemployment rate of 7.5%. The City’s rate was down 1.1% from the prior year’s
average rate of 6.3%.
• During the last ten years, the City of La Quinta has been in a growth phase with
assessed values increasing from $7.8 billion in Fiscal Year 2005-2006 to
$11.37 billion or over 46% percent in Fiscal Year 2014-2015. It is important to note
however, that from Fiscal Year 2009-2010 to Fiscal Year 2014-2015 assessed
values decreased by approximately 8.43%.
• Sales tax has been relatively flat for the last two years and this trend is not expected
to change in Fiscal Year 2015-2016. A major contributing factor is leakage of sales
from businesses within the City to internet based shopping.
• AB1x26 dissolved California Redevelopment Agencies as of January 31, 2012. Due
to the loss of Tax Increment, the City’s ability to fund future capital projects has been
severely curtailed. The City is still exploring ways to replace this funding source.
Requests for Information
This financial report is designed to provide a general overview of the City of La Quinta’s
finances for all those with an interest in the government's finances. Questions
concerning any of the information provided in this report or requests for additional
financial information should be addressed to the City of La Quinta, Rita Conrad, Finance
Director, 78-495 Calle Tampico, La Quinta, CA, 92253 or by telephone at
760-777-7150.
16 263
CITY OF LA QUINTA
STATEMENT OF NET POSITION
Governmental Business-Type
Activities Activities Total
Assets:
Cash and investments 74,359,586$ 136$ 74,359,722$
Receivables:
Accounts 91,824 97,441 189,265
Taxes 3,006,276 - 3,006,276
Notes and loans 31,061,002 - 31,061,002
Accrued interest 3,287,159 321 3,287,480
Internal balances 5,908,249 (5,908,249) -
Prepaid costs 25,673 1,865 27,538
Deposits 47,585 250,000 297,585
Due from other governments 43,537,131 915,164 44,452,295
Inventories - 75,485 75,485
Land held for resale 8,320,000 - 8,320,000
Capital assets not being depreciated 379,169,393 39,712,955 418,882,348
Capital assets, net of depreciation 144,429,865 4,405,156 148,835,021
Total Assets 693,243,743 39,550,274 732,794,017
Deferred Outflows of Resources:
Deferred items related to pensions 783,364 - 783,364
Total Deferred Outflows
of Resources 783,364 - 783,364
Liabilities:
Accounts payable 7,451,895 287,048 7,738,943
Accrued liabilities 435,477 2,262 437,739
Accrued interest 47,923 - 47,923
Unearned revenue 810,311 - 810,311
Deposits payable 8,434,256 35,500 8,469,756
Due to other governments 1,654,939 - 1,654,939
Noncurrent liabilities:
Due within one year 1,287,864 - 1,287,864
Due in more than one year 4,110,779 - 4,110,779
Net OPEB liability 741,071 - 741,071
Net pension liability 6,433,391 - 6,433,391
Total Liabilities 31,407,906 324,810 31,732,716
Deferred Inflows of Resources:
Deferred items related to pensions 2,289,402 - 2,289,402
Total Deferred Inflows
of Resources 2,289,402 - 2,289,402
Net Position:
Net investment in capital assets 523,495,389 44,118,111 567,613,500
Restricted for:
Planning and development projects 45,321,700 - 45,321,700
Public safety 301,843 - 301,843
Public works 1,129,697 - 1,129,697
Capital projects 5,007,277 - 5,007,277
Community services 10,711,704 - 10,711,704
Unrestricted 74,362,189 (4,892,647) 69,469,542
Total Net Position 660,329,799$ 39,225,464$ 699,555,263$
JUNE 30, 2015
Primary Government
See Notes to Financial Statements 17 264
CITY OF LA QUINTA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2015
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs
Primary Government:
Governmental Activities:
General government 5,166,732$ 121,140$ 293,859$ -$
Public safety 21,636,149 1,655,421 7,180,504 14,598
Planning and development 2,212,013 489,589 4,992,919 -
Community services 5,992,362 307,869 111,435 -
Public works 18,116,732 1,197,069 4,250,390 3,521,846
Interest on long-term debt 340,716 - - -
Total Governmental Activities 53,464,704 3,771,088 16,829,107 3,536,444
Business-Type Activities:
Golf Course 5,053,360 3,561,857 - 2,872,122
Total Business-Type Activities 5,053,360 3,561,857 - 2,872,122
Total Primary Government 58,518,064$ 7,332,945$ 16,829,107$ 6,408,566$
General Revenues:
Taxes:
Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Business licenses taxes
Other taxes
Motor vehicle in lieu - unrestricted
Use of money and property
Other
Transfers
Total General Revenues and Transfers
Change in Net Position
Net Position at Beginning of Year
Restatement of Net Position
Net Position at End of Year
Program Revenues
See Notes to Financial Statements 18 265
Primary Government
Governmental Business-Type
Activities Activities Total
(4,751,733)$ -$ (4,751,733)$
(12,785,626) - (12,785,626)
3,270,495 - 3,270,495
(5,573,058) - (5,573,058)
(9,147,427) - (9,147,427)
(340,716) - (340,716)
(29,328,065) - (29,328,065)
- 1,380,619 1,380,619
- 1,380,619 1,380,619
(29,328,065) 1,380,619 (27,947,446)
8,776,491 - 8,776,491
6,637,183 - 6,637,183
8,873,008 - 8,873,008
1,861,453 - 1,861,453
306,087 - 306,087
530,336 - 530,336
3,486,367 - 3,486,367
1,981,343 2,043 1,983,386
296,346 915,164 1,211,510
(247,739) 247,739 -
32,500,875 1,164,946 33,665,821
3,172,810 2,545,565 5,718,375
665,190,960 36,679,899 701,870,859
(8,033,971) - (8,033,971)
660,329,799$ 39,225,464$ 699,555,263$
Net (Expenses) Revenues and Changes in Net
Position
See Notes to Financial Statements 19 266
CITY OF LA QUINTA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2015
Capital
Projects
Funds
General
Assets:
Pooled cash and investments 48,243,367$ 2,238,654$ 1,269,509$ 571,984$
Receivables:
Accounts 40,523 16,284 33,210 -
Taxes 2,890,350 - - -
Notes and loans - 2,061,002 29,000,000 -
Accrued interest 47,688 2,410,562 804,854 -
Prepaid costs 15,653 - 10,020 -
Deposits 33,985 - 13,600 -
Due from other governments 34,944,578 6,654,226 - 1,355,502
Due from other funds 819,151 - - -
Advances to other funds 14,943,098 - - -
Land held for resale 8,320,000 - - -
Total Assets 110,298,393$ 13,380,728$ 31,131,193$ 1,927,486$
Liabilities, Deferred Inflows of
Resources, and Fund Balances:
Liabilities:
Accounts payable 6,871,192$ 6,791$ -$ 485,407$
Accrued liabilities 423,486 656 4,692 -
Unearned revenues 55,778 - - 753,102
Deposits payable 7,477,216 22,982 27,855 772,433
Due to other governments 160 - - -
Due to other funds - - - -
Advances from other funds - - - -
Total Liabilities 14,827,832 30,429 32,547 2,010,942
Deferred Inflows of Resources:
Unavailable revenues 8,661,997 2,408,347 29,804,854 1,133,578
Total Deferred Inflows of Resources 8,661,997 2,408,347 29,804,854 1,133,578
Fund Balances:
Nonspendable:
Prepaid costs 15,653 - - -
Land held for resale 8,320,000 - - -
Advances to other funds 14,943,098 - - -
Deposits 33,985 - - -
Due from other Governments 26,715,575 - - -
Restricted for:
Planning and development projects - 10,941,952 1,293,792 -
Public safety - - - -
Community services - - - -
Public works - - - -
Capital Projects - - - -
Committed to:
Working capital reserve 3,843,150 - - -
Capital Projects 1,727,390 - - -
Emergency reserve 15,372,600 - - -
Post retirement health benefits 1,523,401 - - -
Carryovers 476,400 - - -
Unassigned 13,837,312 - - (1,217,034)
Total Fund Balances 86,808,564 10,941,952 1,293,792 (1,217,034)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 110,298,393$ 13,380,728$ 31,131,193$ 1,927,486$
Special Revenue Funds
Housing
Authority PA
No. 1
Housing
Authority PA
No. 2
Capital
Improvement
See Notes to Financial Statements 20 267
CITY OF LA QUINTA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2015
Assets:
Pooled cash and investments
Receivables:
Accounts
Taxes
Notes and loans
Accrued interest
Prepaid costs
Deposits
Due from other governments
Due from other funds
Advances to other funds
Land held for resale
Total Assets
Liabilities, Deferred Inflows of
Resources, and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable:
Prepaid costs
Land held for resale
Advances to other funds
Deposits
Due from other Governments
Restricted for:
Planning and development projects
Public safety
Community services
Public works
Capital Projects
Committed to:
Working capital reserve
Capital Projects
Emergency reserve
Post retirement health benefits
Carryovers
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Capital
Projects
Funds
Other Total
Governmental Governmental
Funds Funds
-$ 16,386,093$ 68,709,607$
- 1,807 91,824
- 115,926 3,006,276
- - 31,061,002
- 17,954 3,281,058
- - 25,673
- - 47,585
- 582,825 43,537,131
- - 819,151
- - 14,943,098
- - 8,320,000
-$ 17,104,605$ 173,842,405$
-$ 50,994$ 7,414,384$
- 6,643 435,477
- 1,431 810,311
- 133,770 8,434,256
- 1,654,779 1,654,939
201,400 49,018 250,418
7,058,068 2,545,514 9,603,582
7,259,468 4,442,149 28,603,367
- - 42,008,776
- - 42,008,776
- - 15,653
- - 8,320,000
- - 14,943,098
- - 33,985
- - 26,715,575
- 872,755 13,108,499
- 301,843 301,843
- 10,711,704 10,711,704
- 1,129,697 1,129,697
- 3,873,699 3,873,699
- - 3,843,150
- - 1,727,390
- - 15,372,600
- - 1,523,401
- - 476,400
(7,259,468) (4,227,242) 1,133,568
(7,259,468) 12,662,456 103,230,262
-$ 17,104,605$ 173,842,405$
Civic Center
See Notes to Financial Statements 21 268
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22 269
CITY OF LA QUINTA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2015
Fund balances of governmental funds 103,230,262$
Amounts reported for governmental activities in the statement of net position are
different because:
Capital assets net of depreciation have not been included as financial resources
in governmental fund activity.507,979,592
Long-term debt and compensated absences
that have not been included in the governmental fund activity:
Bonds payable (2,405,000)$
Capital lease payable (54,567)
Loans payable (2,036,277)
Compensated Absences (853,497) (5,349,341)
Proportionate share of net pension liability (6,433,391)
Deferred outflows related to pensions:
Employer contributions made after the measurement date 783,364
Deferred inflows related to pensions:
Adjustment due to difference in proportions (32,725)
Net difference between projected and actual plan earnings (2,161,918)
Difference between actual and the proportionate share of aggregate employer contributions (94,759)
Governmental funds report all OPEB contributions as expenditures,
however in the statement of net position any excesses or deficiencies
in contributions in relation to the Annual Required Contribution (ARC) are
recorded as a asset or liability.(741,071)
Accrued interest payable for the current portion of interest due on
Bonds has not been reported in the governmental funds. (47,923)
Revenues reported as unavailable revenue in the governmental funds and recognized
in the statement of activities. 42,008,776
Internal service funds are used by management to charge the costs of certain
activities, such as equipment replacement and information technology, to individual funds.
The assets and liabilities of the internal service funds must be added to the
statement of net position.21,188,933
Net Position of governmental activities 660,329,799$
See Notes to Financial Statements 23 270
CITY OF LA QUINTA
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2015
Capital
Projects
Funds
General
Revenues:
Taxes 25,959,888$ -$ -$ -$
Assessments - - - -
Licenses and permits 1,356,978 - - -
Intergovernmental 9,774,046 - 421,797 1,758,039
Charges for services 1,341,438 - - -
Use of money and property 604,061 379,348 203,647 270
Fines and forfeitures 283,798 - - -
Contributions from other agencies - - - 1,956,452
Developer participation - - - 16,850
Miscellaneous 210,396 - 1,800 -
Total Revenues 39,530,605 379,348 627,244 3,731,611
Expenditures:
Current:
General government 4,844,519 - - -
Public safety 21,617,496 - - -
Planning and development 1,373,857 319,139 343,847 -
Community services 3,063,065 - - -
Public works 3,199,803 - - -
Capital outlay 216,300 - - 10,781,778
Debt service:
Principal retirement 13,560 - 55,823 -
Interest and fiscal charges 4,732 - 137,022 -
Total Expenditures 34,333,332 319,139 536,692 10,781,778
Excess (Deficiency) of Revenues
Over (Under) Expenditures 5,197,273 60,209 90,552 (7,050,167)
Other Financing Sources (Uses):
Transfers in 352,658 - - 8,495,225
Transfers out (3,388,815) - - (2,571,169)
Capital leases 9,000 - - -
Total Other Financing Sources
(Uses)(3,027,157) - - 5,924,056
Net Change in Fund Balances 2,170,116 60,209 90,552 (1,126,111)
Fund Balances, Beginning of Year 91,633,753 3,886,438 1,203,240 (90,923)
Restatements (6,995,305) 6,995,305 - -
Fund Balances, Beginning of Year, as restated 84,638,448 10,881,743 1,203,240 (90,923)
Fund Balances, End of Year 86,808,564$ 10,941,952$ 1,293,792$ (1,217,034)$
Special Revenue Funds
Capital
Improvement
Housing
Authority PA
No. 1
Housing
Authority PA
No. 2
See Notes to Financial Statements 24 271
CITY OF LA QUINTA
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2015
Revenues:
Taxes
Assessments
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Contributions from other agencies
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Planning and development
Community services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Capital leases
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Restatements
Fund Balances, Beginning of Year, as restated
Fund Balances, End of Year
Capital
Projects
Funds
Other Total
Governmental Governmental
Funds Funds
-$ 718,583$ 26,678,471$
- 940,221 940,221
- - 1,356,978
- 3,749,061 15,702,943
- - 1,341,438
- 763,631 1,950,957
- - 283,798
- - 1,956,452
290,145 2,496,686 2,803,681
- 84,849 297,045
290,145 8,753,031 53,311,984
201,400 4,506 5,050,425
- 46,976 21,664,472
- 60,682 2,097,525
- 1,735,058 4,798,123
- 2,083,506 5,283,309
- 99,108 11,097,186
- 525,000 594,383
35,723 170,857 348,334
237,123 4,725,693 50,933,757
53,022 4,027,338 2,378,227
- 3,189,448 12,037,331
- (6,362,730) (12,322,714)
- - 9,000
- (3,173,282) (276,383)
53,022 854,056 2,101,844
(7,312,490) 11,808,400 101,128,418
- - -
(7,312,490) 11,808,400 101,128,418
(7,259,468)$ 12,662,456$ 103,230,262$
Civic Center
See Notes to Financial Statements 25 272
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26 273
CITY OF LA QUINTA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2015
Net change in fund balances - total governmental funds 2,101,844$
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities, the costs of those assets is allocated over their estimated useful lives
as depreciation expense. This is the amount by which depreciation and disposals
exceeded capital outlay in the current period.
Capital outlay 7,940,232$
Depreciation (7,888,258)
Disposal of capital assets including contribution to golf course (3,583,086) (3,531,112)
The issuance of long-term debt liabilities provides current financial resources in
the governmental funds, but issuing debt increases the long-term liabilities in
the statement of net position. Repayment of bond principal is an expenditure
in the governmental funds, but the repayment reduces long-term liabilities in the
statement of net position.
Principal repayments 525,000
New capital lease (9,000)
Capital lease repayments 13,560
Retrospective deposit payable 209,320
Loan repayments 55,823 794,703
Accrued interest for long-term liabilities. This is the net change in accrued interest
for the current period.10,457
Compensated absences expenses reported in the statement of activities do not
require the use of current financial resources and, therefore, are not reported as
expenditures in governmental funds.(27,338)
Governmental funds report all contributions in relation to the annual required
contribution (ARC) for OPEB as expenditures, however in the statement
of activities only the ARC is an expense. (77,694)
Pension expense recognizes the change in net pension liability and therefore is not recognized
under the current resources measurement and (decreases)/increases from net position 94,542
Revenues reported as unavailable revenue in the governmental funds and recognized
as charges for services and operating contributions and grants in the statement of activities. 3,536,835
Internal service funds are used by management to charge the costs of certain
activities, such as equipment replacement and information technology, to individual funds.
The net revenues (expenses) of the internal service funds is reported with
governmental activities.270,573
Change in net position of governmental activities 3,172,810$
See Notes to Financial Statements 27 274
CITY OF LA QUINTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2015
Business-Type
Activities -
Enterprise Funds Governmental
Activities-
Internal
Service Funds
Assets:
Current:
Cash and investments 136$ 5,649,979$
Receivables:
Accounts 97,441 -
Accrued interest 321 6,101
Prepaid costs 1,865 -
Deposits 250,000 -
Due from other governments 915,164 -
Inventories 75,485 -
Total Current Assets 1,340,412 5,656,080
Noncurrent:
Capital assets - net of accumulated depreciation 44,118,111 15,619,666
Total Noncurrent Assets 44,118,111 15,619,666
Total Assets 45,458,523$ 21,275,746$
Liabilities and Net Position:
Liabilities:
Current:
Accounts payable 287,048$ 37,511$
Accrued liabilities 2,262 -
Deposits payable 35,500 -
Due to other funds 568,733 -
Current portion of capital leases - 21,099
Total Current Liabilities 893,543 58,610
Noncurrent:
Advances from other funds 5,339,516 -
Long-term portion of capital leases - 28,203
Total Noncurrent Liabilities 5,339,516 28,203
Total Liabilities 6,233,059 86,813
Net Position:
Net investment in capital assets 44,118,111 15,570,364
Unrestricted (4,892,647) 5,618,569
Total Net Position 39,225,464 21,188,933
Total Liabilities and Net Position 45,458,523$ 21,275,746$
Golf Course
See Notes to Financial Statements 28 275
CITY OF LA QUINTA
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2015
Business-Type
Activities -
Enterprise
Funds Governmental
Activities-
Internal
Service Funds
Operating Revenues:
Sales and service charges 3,561,857$ 1,750,300$
Miscellaneous 915,164 -
Total Operating Revenues 4,477,021 1,750,300
Operating Expenses:
Administration and general 50,629 138,322
Fuel and oil - 75,032
Maintenance and parts - 136,597
Contract services 3,638,047 200,864
Software and supplies - 226,967
Depreciation expense 338,841 773,184
Other 1,012,709 -
Total Operating Expenses 5,040,226 1,550,966
Operating Income (Loss)(563,205) 199,334
Nonoperating Revenues (Expenses):
Interest revenue 2,043 30,386
Interest expense (13,134) (2,839)
Gain on disposal of capital assets - 6,048
Total Nonoperating
Revenues (Expenses)(11,091) 33,595
Income (Loss) Before Transfers and contributions (574,296) 232,929
Transfers in 247,739 37,644
Capital contributions 2,872,122 -
Changes in Net Position 2,545,565 270,573
Net Position:
Beginning of Year 36,679,899 20,918,360
End of Fiscal Year 39,225,464$ 21,188,933$
Golf Course
See Notes to Financial Statements 29 276
CITY OF LA QUINTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2015
Business-Type
Activities -
Enterprise Funds
Governmental
Activities-
Internal
Service Funds
Cash Flows from Operating Activities:
Cash received from customers and users 3,513,887$ -$
Cash received from/(paid to) interfund service provided -1,750,300
Cash paid to suppliers for goods and services (4,583,478) (751,691)
Cash paid to employees for services (50,598)(151,145)
Net Cash Provided (Used for) by Operating Activities (1,120,189) 847,464
Cash Flows from Non-Capital
Financing Activities:
Cash transfers in 247,739 37,644
Advance from other funds 568,734 -
Net Cash Provided by
Non-Capital Financing Activities 816,473 37,644
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets (230,265) (162,222)
Interest paid on capital debt -(2,839)
Capital lease payments -(20,634)
Proceeds from sales of capital assets -8,445
Net Cash Used for
Capital and Related Financing Activities (230,265) (177,250)
Cash Flows from Investing Activities:
Interest received 2,290 29,929
Net Cash Provided by
Investing Activities 2,290 29,929
Net Increase (Decrease) in Cash
and Cash Equivalents (531,691) 737,787
Cash and Cash Equivalents at Beginning of Year 531,827 4,912,192
Cash and Cash Equivalents at End of Year 136$ 5,649,979$
Golf Course
See Notes to Financial Statements 30 277
CITY OF LA QUINTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2015
Business-Type
Activities -
Enterprise Funds
Governmental
Activities-
Internal
Service Funds Golf Course
Reconciliation of Operating Income to Net Cash
Provided (Used for) by Operating Activities:
Operating income (loss)(563,205)$ 199,334$
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation 338,841 773,184
(Increase) decrease in accounts receivable (42,108) -
(Increase) decrease in inventories 6,874 -
(Increase) decrease in due from other governments (915,164) -
Increase (decrease) in accounts payable 67,278 (107,528)
Increase (decrease) in accrued liabilities 31 (4,703)
Increase (decrease) in unearned revenue (12,736) -
Increase (decrease) in salaries and benefits payable - (12,823)
Total Adjustments (556,984) 648,130
Net Cash Provided (Used for) by
Operating Activities (1,120,189)$ 847,464$
Non-Cash Investing, Capital, and Financing Activities:
Capital asset contributions 2,872,122$ -$
See Notes to Financial Statements 31 278
CITY OF LA QUINTA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2015
Agency
Funds
Assets:
Pooled cash and investments 292,738$ 151,571$ 22,782,629$
Receivables:
Taxes 5,024 - -
Notes and loans - - 2,771,187
Accrued interest 160 165 13,654
Prepaid asset - - 565,382
Due from other governments - - 1,654,779
Restricted assets:
Cash and investments with fiscal agents - - 31,274,568
Total Assets 297,922$ 151,736 59,062,199
Deferred Outflows of Resources:
Deferred charge on refunding - 3,931,818
Total Deferred Outflows of Resources - 3,931,818
Liabilities:
Accounts payable -$ - 9,361
Accrued interest - - 3,716,726
Deposits payable 297,922 - -
Long-term liabilities:
Due in one year - - 6,600,000
Due in more than one year - - 253,574,113
Total Liabilities 297,922$ - 263,900,200
Net Position:
Held in trust for pension 151,736 -
Held in trust for other purposes - (200,906,183)
Total Net Position 151,736$ (200,906,183)$
Pension Trust
Fund
Private-Purpose
Trust Fund
Supplemental
Pension Plan
Successor
Agency of the
former RDA
See Notes to Financial Statements 32 279
CITY OF LA QUINTA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2015
Additions:
Taxes -$ 14,465,537$
Interest and change in fair value of investments 886 86,924
Miscellaneous - 1,712
Total Additions 886 14,554,173
Deductions:
Administrative expenses 12,834 904,539
Interest expense - 12,423,586
Contributions to City - 1,871,423
Loss on reduction of loan - 444,551
Total Deductions 12,834 15,644,099
Changes in Net Position (11,948) (1,089,926)
Net Position - Beginning of the Year 163,684 (199,816,257)
Net Position - End of the Year 151,736$ (200,906,183)$
Pension Trust
Fund
Private-Purpose
Trust Fund
Successor
Agency of the
former RDA
Supplemental
Pension Plan
See Notes to Financial Statements 33 280
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34 281
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Note 1: Summary of Significant Accounting Policies
a. Reporting Entity
The City of La Quinta (City) was incorporated May 1, 1982, under the general laws of the
State of California. In November 1996, the City became a charter City. The City operates
under the Council – Manager form of government.
The City provides many community services including public safety, highway and street
maintenance, health and social services, cultural and leisure services, public
improvements, planning and zoning services, and community development services.
The accounting policies of the City conform to generally accepted accounting principles
as applicable to governments. As required by generally accepted accounting principles,
these financial statements present the City and its component units, which are entities for
which the City is considered to be financially accountable. The City is considered to be
financially accountable for an organization if the City appoints a voting majority of that
organization’s governing body and the City is able to impose its will on that organization
or there is a potential for that organization to provide specific financial benefits to or
impose specific financial burdens on the City. The City is also considered to be financially
accountable if an organization is fiscally dependent (i.e., it is unable to adopt its budget,
levy taxes, set rates or charges, or issue bonded debt without approval from the City). In
certain cases, other organizations are included as component units if the nature and
significance of their relationship with the City are such that their exclusion would cause
the City’s financial statements to be misleading or incomplete.
All of the City’s component units are considered to be blended component units. Blended
component units, although legally separate entities, are, in substance, part of the City’s
operations and so data from these units are reported with the interfund data of the
primary government.
The following organizations are considered to be component units of the City:
City of La Quinta Public Financing Authority
The La Quinta Public Financing Authority (Financing Authority) was established
pursuant to a Joint Exercise of Powers Agreement dated November 19, 1991,
between the City and the Former Agency. The purpose of the Financing Authority is
to provide financing necessary for the construction of various public improvements
through the issuance of debt. Although the Financing Authority is legally separate, it
is reported as if it were part of the City because the City Council also serves as the
governing board of the Financing Authority and the management of the City has
operational responsibility for the Financing Authority. Separate financial statements of
the Financing Authority are not prepared.
City of La Quinta Housing Authority
The La Quinta Housing Authority (Housing Authority) was established pursuant to
California Housing Authorities Law (Health and Safety Code Sections 34200 et seq.)
on September 15, 2009. The purpose of the Housing Authority is to provide safe and
sanitary housing opportunities for La Quinta residents. Although the Housing
35 282
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 1: Summary of Significant Accounting Policies (Continued)
Authority is legally separate, it is reported as if it were part of the City because the
City Council also serves as the governing board of the Housing Authority and the
management of the City has operational responsibility for the Housing Authority.
Separate financial statements of the Housing Authority are not prepared.
b. Government-Wide and Fund Financial Statements
The basic financial statements of the City are composed of the following:
Government-wide financial statements
Fund financial statements
Notes to the financial statements
Government-wide Financial Statements
The government-wide financial statements (i.e., the statement of net position and the
statement of activities) report information on all of the nonfiduciary activities of the
primary government and its component units. All fiduciary activities are reported only
in the fund financial statements. Governmental activities, which normally are
supported by taxes, intergovernmental revenues, and other nonexchange
transactions, are reported separately from business-type activities, which rely to a
significant extent on fees and charges to external customers for support. Likewise,
the primary government is reported separately from certain legally separate
component units for which the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of
a given function or segments are offset by program revenues. Direct expenses are
those that are clearly identifiable with a specific function or segment. Program
revenues include charges for services, special assessments, and payments made by
parties outside of the reporting City’s citizenry if that money is restricted to a
particular program. Program revenues are netted with program expenses in the
statement of activities to present the net cost of each program. Taxes and other items
not properly included among program revenues are reported instead as general
revenues. Amounts paid to acquire capital assets are capitalized as assets in the
government-wide financial statements, rather than reported as expenditures.
Proceeds of long-term debt are recorded as a liability in the government-wide
financial statements, rather than as other financing sources. Amounts paid to reduce
long-term indebtedness of the reporting government are reported as a reduction of
the related liability, rather than as expenditures.
Fund Financial Statements
The underlying accounting system of the City is organized and operated on the basis
of separate funds, each of which is considered to be a separate accounting entity.
The operations of each fund are accounted for with a separate set of self-balancing
accounts that comprise its assets, deferred outflows of resources, liabilities, deferred
inflows of resources, fund equity, revenues and expenditures or expenses, as
appropriate. Governmental resources are allocated to and accounted for in individual
funds based upon the purposes for which they are to be spent and the means by
which spending activities are controlled.
Fund financial statements for the governmental, proprietary, and fiduciary funds are
presented after the government-wide financial statements. These statements display
information about major funds individually and nonmajor funds in the aggregate for
36 283
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 1: Summary of Significant Accounting Policies (Continued)
governmental and proprietary funds. Fiduciary statements include financial
information for fiduciary funds. Fiduciary funds of the city primarily represent assets
held by the City in a custodial capacity for other individuals or organizations.
c. Measurement Focus, Basis of Accounting and Financial Statement Presentation
Government-Wide Financial Statements
While separate government-wide and fund financial statements are presented, they
are interrelated. The governmental activities column incorporates data from
governmental funds and internal service funds, while business-type activities
incorporate data from the government's enterprise funds. Separate financial
statements are provided for governmental funds, proprietary funds, and fiduciary
funds, even though the latter are excluded from the government-wide financial
statements.
Governmental Funds
In the fund financial statements, governmental funds are presented using the
modified-accrual basis of accounting. Their revenues are recognized when they
become measurable and available as net current assets. Measurable means that the
amounts can be estimated, or otherwise determined. Available means that the
amounts were collected during the reporting period or soon enough thereafter to be
available to finance the expenditures accrued for the reporting period. The City uses
a 60-day availability period.
Revenue recognition is subject to the measurable and availability criteria for the
governmental funds in the fund financial statements. Exchange transactions are
recognized as revenues in the period in which they are earned (i.e., the related
goods or services are provided). Locally imposed delivered tax revenues are
recognized as revenues in the period in which the underlying exchange transaction
on which they are based takes place. Imposed nonexchange transactions are
recognized as revenues in the period for which they were imposed. If the period of
use is not specified, they are recognized as revenues when an enforceable legal
claim to the revenues arises or when they are received, whichever occurs first.
Government-mandated and voluntary non-exchange transactions are recognized as
revenues when all applicable eligibility requirements have been met.
Property taxes, franchise taxes, licenses and interest associated with the current
fiscal period are all considered to be susceptible to accrual and so have been
recognized as revenues of the current fiscal period. All other revenue items are
considered to be measurable and available only when cash is received by the
government.
In the fund financial statements, governmental funds are presented using the current
financial resources measurement focus. This means that only current assets,
deferred outflows of resources, current liabilities, and deferred inflows of resources
are generally included on their balance sheets. The reported fund balance
is considered to be a measure of “available spendable resources”. Governmental
fund operating statements present increases (revenues and other financing sources)
and decreases (expenditures and other financing uses). Accordingly, they are said to
present a summary of sources and uses of “available spendable resources” during a
period.
37 284
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 1: Summary of Significant Accounting Policies (Continued)
Noncurrent portions of long-term receivables due to governmental funds are reported
on their balance sheets in spite of their spending measurement focus. Special
reporting treatments are used to indicate, however, that they should not be
considered “available spendable resources”, since they do not represent net current
assets. Recognition of governmental fund type revenues represented by noncurrent
receivables are deferred until they become current receivables. Noncurrent portions
of other long-term receivables are offset by fund balance reserve accounts.
Because of their spending measurement focus, expenditure recognition for
governmental fund types excludes amounts represented by noncurrent liabilities.
Since they do not affect net current assets, such long-term amounts are not
recognized as governmental fund type expenditures or fund liabilities.
Amounts expended to acquire capital assets are recorded as expenditures in the
year that resources were expended, rather than as fund assets. The proceeds of
long-term debt are recorded as other financing sources rather than as a fund liability.
Amounts paid to reduce long-term indebtedness are reported as fund expenditures.
Proprietary Funds
The City’s enterprise and internal service funds are proprietary funds. In the fund
financial statements, proprietary funds are presented using the accrual basis of
accounting. Revenues are recognized when they are earned and expenses are
recognized when the related goods or services are delivered. In the fund financial
statements, proprietary funds are presented using the economic resources
measurement focus. This means that all assets, all deferred outflows of resources, all
liabilities, and all deferred inflows of resources (whether current or noncurrent)
associated with their activity are included on their balance sheets. Proprietary fund
type operating statements present increases (revenues) and decreases (expenses)
in total net position.
Amounts paid to acquire capital assets are capitalized as assets in the proprietary
fund financial statements, rather than reported as expenditures. Proceeds of
long-term debt are recorded as a liability in the proprietary fund financial statements,
rather than as an Other Financing Source. Amounts paid to reduce long-term
indebtedness of the proprietary funds are reported as a reduction of the related
liability, rather than as expenditures.
Proprietary funds distinguish operating revenues and expenses from nonoperating
items. Operating revenues and expenses generally result from providing services and
producing and delivering goods in connection with a proprietary fund's principal
ongoing operations. The principal operating revenues of the Enterprise Funds are
charges to customers for sales and services.
Operating expenses for Enterprise Funds include the cost of sales and services,
administrative expenses and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as nonoperating revenues and
expenses.
38 285
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 1: Summary of Significant Accounting Policies (Continued)
Fiduciary Funds
The pension and private-purpose trust funds are reported using the economic
resources measurement focus and the accrual basis of accounting. The agency fund
has no measurement focus but utilizes the accrual basis of accounting for reporting
its assets and liabilities.
d. Major Funds, Internal Service Funds and Fiduciary Fund Types
The City’s major governmental funds are as follows:
General Fund – This fund is the primary fund of the City and is used to account for all
revenue and expenditures of the City not legally restricted as to use. A broad range
of municipal activities are provided through this fund including City Manager, City
Attorney, Finance, City Clerk, Community Development, Police Services, Public
Works, and Community Services.
Housing Authority Project Area No. 1 – This fund accounts for the housing activities
of the Housing Authority in Project Area 1 which promotes and provide for quality
housing. Revenues will be provided from the receipts and collections of rents, notes
and loans. All monies in the Housing Authority must be used in accordance with the
applicable housing-related provisions of the California Housing Authorities Law.
Housing Authority Project Area No. 2 – This fund accounts for the housing activities
of the Housing Authority in Project Area 2 which promotes and provide for quality
housing. Revenues will be provided from the receipts and collections of rents, notes
and loans. All monies in the Housing Authority must be used in accordance with the
applicable housing-related provisions of the California Housing Authorities Law.
Capital Improvement Fund – This capital projects fund is used to account for the
planning, design and construction of various capital projects throughout the City.
Civic Center Fund – This fund accounts for the accumulation of resources provided
through developer fees for the acquisition, construction, or improvement of the Civic
Center.
The City’s major proprietary fund is as follows:
Golf Course – This fund accounts for the activities of the SilverRock Golf Resort.
Other fund types of the City are as follows:
Internal Service Funds:
Equipment Replacement Fund – This fund accounts for equipment and vehicle
maintenance and replacement services provided to other departments on a
cost-reimbursement basis.
Information Technology Fund – This fund is used to account for the acquisition
for computer equipment, maintenance, and services to support information
systems within the City. Costs are reimbursed by the benefiting departments.
39 286
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 1: Summary of Significant Accounting Policies (Continued)
Park Equipment and Facilities Fund – This fund is used to account for the purchase
and replacement of City owned park facility infrastructure. Costs are reimbursed by
the benefiting departments.
Fiduciary Funds:
Agency Fund – This fund accounts for assets held by the City as an agent for
assessment district bondholders.
Pension Trust Fund – This fund accounts for the activities of the Supplemental
Pension Savings Plan, which accumulates resources for pension benefit
payments to qualified government employees.
Private-Purpose Trust Fund – This fund accounts for the assets and liabilities of
the Former Agency and its allocated revenue to pay estimated installment
payments of enforceable obligations until obligations of the Former Agency are
paid in full and assets have been liquidated.
e. Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources,
and Net Position or Equity
Investments
For financial reporting purposes, investments are adjusted to their fair value.
Changes in fair value that occur during a fiscal year are recognized as investment
income reported for that fiscal year. Investment income includes interest earnings,
changes in fair value, and any gains or losses realized upon the liquidation or sale of
investments. All investments are valued at fair value.
The City pools cash and investments of all funds, except for assets held by fiscal
agents. Each fund’s share in this pool is displayed in the accompanying financial
statements as cash and investments. Investment income earned by the pooled
investments is allocated to the various funds based on each fund’s average cash and
investment balance.
Cash and Cash Equivalents
For purposes of the statement of cash flows, cash equivalents are defined as
short-term, highly liquid investments that are both readily convertible to known
amounts of cash or so near their maturity that they present insignificant risk of
changes in value because of changes in interest rates. Cash equivalents also
represent the proprietary fund’s share in the City’s cash and investment pool. Cash
equivalents have an original maturity date of three months or less from the date of
purchase. For purposes of the statement of cash flows, the entire balance of cash
and investments on the combined balance sheet for the proprietary funds is
considered cash and cash equivalents.
Inventory
Inventory is valued at cost using the first in/first out (FIFO) method. The City uses the
consumption method of accounting for inventories.
40 287
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 1: Summary of Significant Accounting Policies (Continued)
Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and
are recorded as prepaid items in both government-wide and fund financial
statements. The City utilizes the consumption method, in which prepaid items are
accounted for in the period that the benefit was received.
Capital Assets
Capital assets (including infrastructure) are recorded at cost where historical records
are available and at an estimated historical cost where no historical records exist.
Contributed capital assets are valued at their estimated fair market value at the date
of the contribution. Generally, capital asset purchases in excess of $5,000 are
capitalized if they have an expected useful life of three years or more.
Capital Assets include public domain (infrastructure) consisting of certain
improvements including roads, streets, sidewalks, medians, and storm drains.
Capital assets used in operations are depreciated over their estimated useful lives
using the straight-line method in the government-wide financial statements and in the
fund financial statements of the proprietary funds. Depreciation is charged as an
expense against operations and accumulated depreciation is reported on the
respective balance sheet.
The following schedule summarizes capital asset useful lives:
Buildings and improvements 10-30 years
Equipment and furniture 3-20 years
Vehicles 5-10 years
Infrastructure 10-50 years
Software 5-10 years
Deferred Outflows/Inflows of Resources
In addition to assets, the statements of net position and the governmental fund
balance sheet will sometimes report a separate section for deferred outflows of
resources. This separate financial statement element, deferred outflows of resources,
represents a consumption of net position that applies to a future period(s) and so will
not be recognized as an outflow of resources (expense/ expenditure) until then. The
City has one item which qualifies for reporting in this category; please refer to Note 9
for more details.
In addition to liabilities, the statements of net position and governmental fund balance
sheet will sometimes report a separate section for deferred inflows of resources. This
separate financial statement element, deferred inflows of resources, represents an
acquisition of net position that applies to a future period(s) and so will not be
recognized as an inflow of resources (revenue) until that time. The City has two items
which qualify for reporting in this category; please refer to Note 9 for more details.
41 288
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 1: Summary of Significant Accounting Policies (Continued)
Compensated Absences
Vacation and sick time is vested on a percentage based on number of years
employed at the City. Maximum accumulation of sick and vacation is 30 and 40 days,
respectively.
Upon termination or retirement, permanent employees are entitled to receive
compensation at their current base salary for all unused vacation leave. If an
employee terminates with a minimum of two years’ service, the employee is entitled
to receive 25% of the value of his unused sick leave. The percentage increases by
25% for each five-year period until the employee is entitled to 75% of the value of
their unused sick leave. This will occur upon the completion of ten years of
continuous employment. The General Fund resources are used to pay for the
accumulated benefits to employees.
Pensions
In government-wide financial statements, retirement plans (pensions) are required to
be recognized and disclosed using the accrual basis of accounting (see Note 12 and
the required supplementary information (RSI) section immediately following the Notes
to Financial Statements), regardless of the amount recognized as pension
expenditures on the governmental fund statements, which use the modified accrual
basis of accounting.
In general, the City recognizes a net pension liability, which represents the City’s
proportionate share of the excess of the total pension liability over the fiduciary net
position of the pension reflected in the actuarial report provided by the California
Public Employees’ Retirement System (CalPERS). The net pension liability is
measured as of the City’s prior fiscal year‐end. Changes in the net pension liability
are recorded, in the period incurred, as pension expense or as deferred inflows of
resources or deferred outflows of resources depending on the nature of the change.
The changes in net pension liability that are recorded as deferred inflows of
resources or deferred outflows of resources (that arise from changes in actuarial
assumptions or other inputs and differences between expected or actual experience)
are amortized over the weighted average remaining service life of all participants in
the respective pension plan and are recorded as a component of pension expense
beginning with the period in which they are incurred.
For purposes of measuring the net pension liability and deferred outflows/inflows or
resources relating to pensions and pension expense, information about the fiduciary
net position of the City’s pension plan with CalPERS and additions to/deductions from
the plan’s fiduciary net position have been determined on the same basis as they are
reported by CalPERS. For this purpose, benefit payments (including refunds of
employee contributions) are recognized when due and payable in accordance with
the benefits terms. Investments are reported at fair value.
Projected earnings on pension investments are recognized as a component of
pension expense. Differences between projected and actual investment earnings are
reported as deferred inflows of resources or deferred outflows of resources and
amortized as a component of pension expense on a closed basis over a five‐year
period beginning with the period in which the difference occurred. Each subsequent
year will incorporate an additional closed basis five‐year period of recognition.
42 289
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 1: Summary of Significant Accounting Policies (Continued)
Long-Term Obligations
In the government-wide financial statements and proprietary fund financial
statements, long-term debt and other long-term obligations are reported as
liabilities in the applicable governmental activities, business-type activities or
proprietary fund type statement of net position. Bond premiums and discounts
are deferred and amortized over the life of the bonds using the effective interest
method. Bonds payable are reported net of the applicable bond premium or
discount.
In the fund financial statements, governmental fund types recognize bond
premiums and discounts, as well as bond issuance costs, during the current
period. The face amount of debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources
while discounts on debt issuances are reported as other financing uses. Issuance
costs, whether or not withheld from the actual debt proceeds received, are
reported as debt service expenditures.
Fund Balance
In the fund financial statements, governmental funds report the following fund
balance classification:
Nonspendable includes amounts that cannot be spent because they are either (a) not
in spendable form or (b) legally or contractually required to be maintained intact.
Restricted includes amounts that are constrained on the use of resources by either
(a) external creditors, grantors, contributors, or laws of regulations of other
governments or (b) by law through constitutional provisions or enabling legislation.
Committed includes amounts that can only be used for specific purposes pursuant to
constraints imposed by formal action of the City’s highest authority, the City Council.
The formal action that is required to be taken to establish, modify, or rescind a fund
balance commitment is by a resolution.
Assigned includes amounts that are constrained by the City’s intent to be used for
specific purposes, but are neither restricted nor committed. City Council is authorized
to assign amounts to a specific purpose. The City Council authorizes assigned
amounts for specific purposes pursuant to the policy-making powers granted through
a resolution.
Unassigned includes the residual amounts that have not been restricted, committed,
or assigned to specific purposes.
Fund Balance Flow Assumptions – governmental fund financial statements
Sometimes the City of La Quinta will fund outlays for a particular purpose from both
restricted and unrestricted resources (the total of committed, assigned, and
unassigned fund balance). In order to calculate the amounts to report as restricted,
committed, assigned, and unassigned fund balance in the governmental fund
financial statements a flow assumption must be made about the order in which the
resources are considered to be applied.
43 290
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 1: Summary of Significant Accounting Policies (Continued)
It is the City’s policy to consider restricted fund balance to have been depleted before
using any of the components of unrestricted fund balance. Further, when the
components of unrestricted fund balance can be used for the same purpose,
committed fund balance is depleted first, followed by assigned fund balance.
Unassigned fund balance is applied last.
Net Position Flow Assumption – governmental and proprietary fund financial statements
Sometimes the City of La Quinta will fund outlays for a particular purpose from both
restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In
order to calculate the amounts to report as restricted – net position and
unrestricted – net position in the government-wide and proprietary fund financial
statements, a flow assumption must be made about the order in which the resources
are considered to be applied. It is the City’s policy to consider restricted – net position
to have been depleted before unrestricted – net position is applied.
f. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenditures/expenses during the reporting period. Actual
results could differ from those estimates.
g. Adopted Accounting Standards
The City implemented GASB Statement 68, Accounting and Financial Reporting for
Pensions – An Amendment of GASB Statement No. 27. Accordingly, the cumulative
effect of the accounting change as of the beginning of the year is reported in the
government-wide statement of activities.
The City implemented GASB Statement 71, Pension Transition for Contributions Made
Subsequent to the Measurement Date – an amendment of GASB Statement No. 68. The
City has fully conformed to the requirements of this statement as of June 30, 2015.
II. DETAILED NOTES ON ALL FUNDS
Note 2: Cash and Investments
Cash and investments as of June 30, 2015, are classified in the accompanying financial
statements as follows:
Statement of Net Position:
Cash and investments 74,359,722$
Statement of Fiduciary Net Position:
Cash and investments 23,226,938
Cash with fiscal agent 31,274,568
Total cash and investments 128,861,228$
44 291
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 2: Cash and Investments (Continued)
Cash and investments as of June 30, 2015, consist of the following:
Cash on hand 1,900$
Deposits with financial institutions 4,814,114
Investments 124,045,214
Total cash and investments 128,861,228$
The California Government Code requires California banks and savings and loan
associations to secure a City’s deposits by pledging government securities with a value of
110% of a City’s deposits. California law also allows financial institutions to secure City
deposits by pledging first trust deed mortgage notes having a value of 150% of a City’s total
deposits. The City Treasurer may waive the collateral requirement for deposits which are fully
insured up to $250,000 by the FDIC. The collateral for deposits in federal and state chartered
banks is held in safekeeping by an authorized Agent of Depository recognized by the State of
California Department of Banking. The collateral for deposits with savings and loan
associations is generally held in safekeeping by the Federal Home Loan Bank in
San Francisco, California as an Agent of Depository. These securities are physically held in
an undivided pool for all California public agency depositors. Under Government Code
Section 53655, the placement of securities by a bank or savings and loan association with an
“Agent of Depository” has the effect of perfecting the security interest in the name of the local
governmental agency. Accordingly, all collateral held by California Agents of Depository are
considered to be held for, and in the name of, the local governmental agency.
Cash Deposits
At June 30, 2015, the carrying amount of the City’s deposits was $4,814,114, and the bank
balance was $5,165,685. The $351,571 difference represents outstanding checks and other
reconciling items.
Investments Authorized by the California Government Code and the City’s Investment Policy
The table below identifies the investment types that are authorized by the California
Government Code and the City’s investment policy. The table also identifies certain
provisions of the California Government Code (or the City’s investment policy, if more
restrictive) that address interest rate risk, credit risk, and concentration of credit risk.
45 292
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 2: Cash and Investments (Continued)
This table does not address investments of debt proceeds held by bond trustee that are
governed by the provisions of debt agreements of the City, rather than the general provisions
of the California Government Code or the City’s investment policy.
Investment Types
Authorized by State Law
*Maximum
Maturity
*Maximum
Percentage of
Portfolio
*Maximum
Investment In
One Issuer
U.S. Treasury Obligations 3 years None $30 million
U.S. Agency Securities 5 years None 20 - 30 million
Local Agency Bonds 10 years None 30 million
California Local Agency Obligations 10 years 30% 30 million
Commercial Paper 90 days 15% 5 million
Certificates of Deposit 3 years 60% 250,000
Negotiable Certificates of Deposits 5 years 30% 250,000
Corporate Notes 3 years 10% 5 million
Money Market Mutual Funds On Demand 20%N/A
Local Agency Investment Fund (LAIF) N/A 30% 50 million
Investment Agreements N/A N/A N/A
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair
value of an investment. Generally, the longer the maturity of an investment, the greater the
sensitivity of its fair value to changes in market interest rates.
One of the ways that the City manages its exposure to interest rate risk is by purchasing a
combination of short term and long term investments and by timing cash flows from maturities
so that a portion of the portfolio is maturing or coming close to maturity evenly over time as
necessary to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the City’s investments (including
investments held by bond trustee) to market interest rate fluctuations is provided by the
following table that shows the distribution of the City’s investments by maturity:
Total
1 year
or Less 1 to 3 Years 3 to 5 Years
Certificates of Deposit 10,933,151$ 240,845$ 6,315,992$ 4,376,314$
Federal agency securities:
Federal National Mortgage Association 18,034,920 - 18,034,920 -
Federal Home Loan Mortgage Corp 9,988,000 - - 9,988,000
U.S Treasury Note 4,890,650 - - 4,890,650
State investment pool 48,923,919 48,923,919 - -
Held by bond trustee:
Money market funds 31,274,574 31,274,574 - -
Total 124,045,214$ 80,439,338$ 24,350,912$ 19,254,964$
Investment Type
Remaining Maturity (in years)
46 293
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 2: Cash and Investments (Continued)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to
the holder of the investment. This is measured by the assignment of a rating by a nationally
recognized statistical rating organization. The City's investment policy limits investments in
commercial paper to those rated A-1 and P-1 or higher from Standard and Poor’s (S&P) and
money market mutual funds that are rated “AAA”. The quality of U.S. Treasury securities is
not analyzed since they are not deemed to have credit risk. As of June 30, 2015, the City
had investments with a variety of issuers, all of which were “investment grade” and were legal
under state and municipal law. The City's investments in money market mutual funds were all
rated “AAA”, and federal agency securities were all rated AA+ by S&P and Moody’s. As of
June 30, 2015, the City’s investments in external investment pools were unrated.
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested
in any one issuer beyond that stipulated by the California Government Code, except for
U.S. Agency Securities and Commercial Paper. As of June 30, 2015, the City had individual
investments that represent 5% or more of total investments in the following securities:
Federal Home Loan Mortgage Corporation 9,988,000$ 8.06%
Federal National Mortgage Association 18,034,920 14.54%
Investments guaranteed by the U.S. government and investments in mutual funds and
external investment pools are excluded from this requirement.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository
financial institution, a government will not be able to recover its deposits or will not be able to
recover collateral securities that are in the possession of an outside party. The custodial
credit risk for investments is the risk that, in the event of the failure of the counterparty
(e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its
investment or collateral securities that are in the possession of another party. The California
Government Code and the City’s investment policy do not contain legal or policy
requirements that would limit the exposure to custodial credit risk for deposits or investments,
other than the following provision for deposits: The California Government Code requires
that a financial institution secure deposits made by state or local governmental units by
pledging securities in an undivided collateral pool held by a depository regulated under state
law (unless so waived by the governmental unit). The market value of the pledged securities
in the collateral pool must equal at least 110% of the total amount deposited by the public
agencies. California law also allows financial institutions to secure City deposits by pledging
first trust deed mortgage notes having a value of 150% of the secured public deposits.
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is
regulated by the California Government Code under the oversight of the Treasurer of the
State of California. The fair value of the City’s investment in this pool is reported in the
accompanying financial statements at amounts based upon the City’s pro-rata share of the
fair value provided by LAIF for the entire LAIF portfolio (in relations to the amortized cost of
that portfolio). The balance available for withdrawal is based on the accounting records
maintained by LAIF, which are recorded on an amortized cost basis.
47 294
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 2: Cash and Investments (Continued)
GASB Statement No. 31
The City adopted GASB Statement No. 31, Accounting and Financial Reporting for Certain
Investments and for External Investment Pools, as of July 1, 1997. GASB Statement No. 31
establishes fair value standards (e.g. mark to market) for investments in participating interest
earning investment contracts, external investment pools, equity securities, option contracts,
stock warrants and stock rights that have readily determinable fair values. Accordingly, the
City reports its investments at fair value in the statement of net position and balance sheet.
All investment income, including changes in the fair value of investments, is recognized as
revenue in the operating statement.
Note 3: Property Taxes
Under California law, property taxes are assessed and collected by the counties up to 1% of
assessed value, plus other increases approved by the voters. The property taxes are
recorded initially in a pool, and are then allocated to the cities based on complex formulas.
Accordingly, the City of La Quinta accrues only those taxes that are received from the County
within ninety days after year-end.
Lien date January 1
Levy date July 1
Due dates November 1 and February 1
Collection dates December 10 and April 10
Note 4: Notes Receivable
In September 1994, the Former Agency sold certain real property to LINC Housing for
$2,112,847. The property was used to construct single-family homes and rental units to
increase the City's supply of low and moderate income housing. The note bears interest at
6% per annum and is due in full on June 15, 2029. On February 1, 2012, this receivable was
transferred to the Housing Authority Project Area No. 1 which took over the housing function
of the Former Agency upon dissolution. The balance at June 30, 2015, including matured,
unpaid interest of $2,408,347 is $4,443,735.
In February 2011, the Former Agency entered into Disposition and Development Agreement
with Coral Mountain Partners L.P. (“Coral Mountain”) to fund up to $29,000,000 for the
construction of a low and moderate income apartment complex with an estimated completion
date of the apartment complex of March 2014. The Former Agency’s $29,000,000 loan is
evidenced by a Promissory Note executed by Coral Mountain (“Note”). Interest on the
outstanding note amount will bear simple interest of 1%. Principal and interest will be repaid
on or before May 1st of each year from annual residual receipts as defined in the Note once
the project is completed and may be repaid early if the property is refinanced, or if the
property is transferred to another entity. On February 1, 2012, this receivable was transferred
to the Housing Authority Project Area No. 2 which took over the housing function of the
Former Agency upon dissolution. As of June 30, 2015, the outstanding principal portion on
the Note is $29,000,000 and the outstanding interest portion is $804,854.
Other notes receivable as of February 1, 2012, were transferred to the Housing Authority
Project Area No. 1 which took over the housing function of the Former Agency upon
dissolution that totaled $25,614 at June 30, 2015.
48 295
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 5: California Joint Powers Insurance Authority Refund Balances Long-term Receivable
Retrospective deposits and refunds are cost allocation adjustments to prior coverage periods.
Some claims take many years to resolve and over time their estimated value changes. The
retrospective adjustments are calculated annually and take into consideration all the changes
in claim values that occurred during the most recent year. The formula is designed to
adequately cover the cost of claims brought against members and to ensure the overall
financial strength and security of the California Joint Powers Authority (CJPIA). The formula
was developed to be as equitable as possible by taking into consideration both risk exposure
and claims experience of individual members. The City at June 30, 2015, had a retrospective
refund of $29,155.
Note 6: Capital Assets
Capital asset activity for governmental activities for the year ended June 30, 2015, is as
follows:
Beginning Ending
Balance at Balance at
July 1, 2014 Additions Deletions Transfers June 30, 2015
Governmental Activities:
Capital assets, not being depreciated:
Land 69,609,372$ 207,302$ -$ -$ 69,816,674$
Right of way 284,928,794 - - - 284,928,794
Art purchases - 44,687 (44,687) -
Construction-in-progress 22,367,034 7,679,245 711,033 (4,911,321) 24,423,925
Total Capital Assets,
Not Being Depreciated 376,905,200 7,931,234 711,033 (4,956,008) 379,169,393
Capital assets, being depreciated:
Buildings and improvements 69,063,708 - - 210,263 69,273,971
Equipment and furniture 2,915,151 73,576 6,204 - 2,982,523
Vehicles 1,599,761 97,712 1,223 - 1,696,250
Infrastructure 200,390,749 - - 1,873,623 202,264,372
Total Capital Assets,
Being Depreciated 273,969,369 171,288 7,427 2,083,886 276,217,116
Less accumulated depreciation:
Buildings and improvements 23,545,316 2,323,894 - - 25,869,210
Equipment and furniture 1,852,366 204,297 3,808 - 2,052,855
Vehicles 1,445,305 60,778 1,223 - 1,504,860
Infrastructure 96,287,853 6,072,473 - - 102,360,326
Total Accumulated
Depreciation 123,130,840 8,661,442 5,031 - 131,787,251
Total Capital Assets,
Being Depreciated, Net 150,838,529 (8,490,154) 2,396 2,083,886 144,429,865
Governmental Activities
Capital Assets, Net 527,743,729$ (558,920)$ 713,429$ (2,872,122)$ 523,599,258$
The $2,872,122 amount remaining in transfers represents the capital contribution of
construction in progress to the golf course for the SilverRock project.
49 296
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 6: Capital Assets (continued)
Depreciation expense was charged to the following functions in the Statement of Activities:
General government 373,991$
Community development 115,832
Community services 1,189,966
Public works 6,208,469
Internal service 773,184
8,661,442$
Capital asset activity for business-type activities for the year ended June 30, 2015, is as
follows:
Beginning Ending
Balance at Balance at
July 1, 2014 Additions Deletions June 30, 2015
Business-Type Activities:
Capital assets, not being depreciated:
Land 36,840,832$ 2,872,123$ -$ 39,712,955$
Total Capital Assets,
Not Being Depreciated 36,840,832 2,872,123 - 39,712,955
Capital assets, being depreciated:
Buildings and improvements 6,636,465 - - 6,636,465
Equipment and furniture 2,073,478 230,264 - 2,303,742
Vehicles 20,348 - - 20,348
Software 20,255 - - 20,255
Total Capital Assets,
Being Depreciated 8,750,546 230,264 - 8,980,810
Less accumulated depreciation:
Buildings and improvements 2,210,865 224,846 - 2,435,711
Equipment and furniture 1,985,345 113,995 - 2,099,340
Vehicles 20,348 - - 20,348
Software 20,255 - - 20,255
Total Accumulated
Depreciation 4,236,813 338,841 - 4,575,654
Total Capital Assets,
Being Depreciated, Net 4,513,733 (108,577) - 4,405,156
Governmental Activities
Capital Assets, Net 41,354,565$ 2,763,546$ -$ 44,118,111$
Depreciation expense was charged to the following function in the Statement of Activities:
Golf Course 338,841$
50 297
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 7: Changes in Long-Term Liabilities – Governmental Activities
a. Changes in Long-Term Debt
The following is a summary of changes in governmental long-term liabilities of the City for
the fiscal year ended June 30, 2015:
Balance at
July 1, 2014 Additions Deletions
Balance at June
30, 2015
Due within
one year
City:
Compensated absences payable $ 838,982 650,572$ 636,057$ 853,497$ 634,149$
Copier Lease Payable 59,127 9,000 13,560 54,567 16,633
Dell Computer Lease 69,936 - 20,634 49,302 21,099
General liability retrospective
deposit payable 209,320 - 209,320 - -
RDA Project Area No. 2:
Provident Loan 1,405,755 - 38,411 1,367,344 41,748
US Department of Agriculture 686,345 - 17,412 668,933 19,235
Financing Authority:
Revenue bonds 2,930,000 - 525,000 2,405,000 555,000
Total $ 6,199,465 $ 659,572 $ 1,460,394 $ 5,398,643 $ 1,287,864
b. A description of individual issues of debt (excluding defeased bonds) outstanding
as of June 30, 2015, is as follows:
Copier Leases Payable
In June 2013, the City entered into a 5-year lease agreement for photocopiers for
$71,045 maturing in monthly increments of $1,456, with interest payable monthly at
8.47%. This lease agreement qualifies as a capital lease for accounting purposes and
therefore, has been recorded at the present value of the future minimum lease payments
at the inception date.
On April 1, 2015, the City leased an additional copier for $9,000; this amount was added
to the outstanding principal at April 1, 2015 of $49,505 to arrive at a new balance of
$58,505 maturing in monthly increments of $1,728, with interest payable monthly at
8.47%.
The minimum future lease obligations and the net present value of the lease payments as
of June 30, 2015, are as follows:
Year Ending
June 30, Total
2016 20,739$
2017 20,739
2018 20,739
Total Payments 62,217
Less amount representing interest (7,650)
Outstanding Principal 54,567$
51 298
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 7: Changes in Long-Term Liabilities – Governmental Activities (Continued)
Dell Computer Lease Payable
In April 2014, the City entered into a 5-year lease agreement for Dell computers for
$90,629 maturing in annual increments ranging from $20,693 to $408, with interest
payable annually at 4.79%. This lease agreement qualifies as a capital lease for
accounting purposes and therefore, has been recorded at the present value of the future
minimum lease payments at the inception date.
The minimum future lease obligations and the net present value of the lease payments as
of June 30, 2015, are as follows:
Year Ending
June 30, Total
2016 23,474$
2017 23,474
2018 5,977
2019 427
Total Payments 53,352
Less amount representing interest (4,050)
Outstanding Principal 49,302$
1996 Lease Revenue Refunding Bonds
On November 15, 1996, the Financing Authority issued $8,790,000 of 1996 Lease
Revenue Refunding Bonds to defease the remaining 1991 Local Agency Revenue Bonds
in the amount of $8,200,000 and to provide funds for construction of remaining
improvements to the La Quinta Civic Center site.
The bonds consist of $3,630,000 of serial bonds and $5,150,000 of term bonds. The
serial bonds will accrue interest at rates between 3.70% and 5.30% and principal
amounts mature between October 1, 1997 and October 1, 2008, in amounts ranging from
$285,000 to $380,000. The term bonds accrue interest at a rate of 5.55% and mature on
October 1, 2018.
A surety agreement has been purchased to satisfy the bond reserve requirement. There
are certain limitations regarding the issuance of parity debt as further described in the
official statement. The amount of principal outstanding at June 30, 2015, is $ 2,405,000.
52 299
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 7: Changes in Long-Term Liabilities – Governmental Activities (Continued)
The minimum annual requirements to amortize the bond payable as of June 30, 2015,
are as follows:
Principal Interest
2016 555,000$ 118,076$
2017 585,000 86,441
2018 615,000 53,141
2019 650,000 18,038
Totals 2,405,000$ 275,696$
Loans
Washington Street Apartments
In October 2008, the Former Agency acquired the Washington Street Apartments for
cash and the assumption of the following debt:
Provident Bank Loan
This loan was originally entered into with the previous owner of the Washington Street
Apartments and Provident Bank for $1,696,000 in August 2001 at an 8.36% interest rate.
The loan is amortized on a thirty-year basis with the outstanding balance due in twenty
years or August 2021. The outstanding principal balance in October 2008 when the
property was acquired by the Former Agency was $1,572,031. The loan is secured by a
deed of trust on the property and is senior to the United States Department of Agriculture
(USDA) loan which is also secured by a deed of trust on the property. Repayment of the
monthly loan amount of $12,873 is made from tenant rent receipts. The source for the
final principal payment due in August 2021, of $1,050,109 will be determined at a future
date. The principal balance of this loan at June 30, 2015, is $1,367,344.
The minimum annual requirements to amortize the loan payable as of June 30, 2015, are
as follows:
Principal Interest
2016 41,748$ 112,726$
2017 45,375 109,099
2018 49,317 105,157
2019 53,602 100,872
2020 58,259 96,216
2021-2022 1,119,043 105,824
Totals 1,367,344$ 629,894$
53 300
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 7: Changes in Long-Term Liabilities – Governmental Activities (Continued)
United States Department of Agriculture (USDA) Rural Development Promissory Note
This promissory note was originally entered into with the previous owner of the
Washington Street Apartments and USDA – Rural Development for $1,500,000 in
November 1980 at a 10.00% interest rate. The note is amortized on a fifty-year basis with
the outstanding balance due in October 2030. The outstanding principal balance, in
October 2008, when the property was acquired by the Former Agency was $760,721.
The loan is secured by a deed of trust on the property and is subordinated to the
Provident loan which is also secured by a deed of trust on the property. Repayment of
the monthly loan amount of $7,107 is made from tenant rent receipts and a rental subsidy
from the USDA. Rural Development has agreed to a 9% interest rate subsidy on the
Promissory Note as long as the Apartment renters meet certain program eligibility
requirements. The principal balance of this note at June 30, 2015, is $668,933.
Principal Interest
2016 19,235$ 66,047$
2017 21,249 64,033
2018 23,474 61,807
2019 25,932 59,349
2020 28,648 56,634
2021-2025 195,033 231,376
2026-2030 320,890 105,519
2031 34,472 871
Totals 668,933$ 645,636$
Compensated absences
Compensated absences are described in Note 1. The liability is typically liquidated by the
general fund.
54 301
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 8: Debt Without Governmental Commitment
The City of La Quinta sold Improvement Bonds issued pursuant to the California State
Improvement Act of 1915. The Bonds are payable from the annual installments collected on
the regular property tax bills sent to owners of property having unpaid assessments levied
against land benefited by the projects. The bonds are neither general obligations of the City
nor any other political subdivision and the full faith and credit of the City is not pledged for
repayment thereof, therefore, they are not included in the long-term liabilities in the
accompanying financial statements. The City is not liable for repayment of the debt, but is
only acting as agent for the property owners in collecting the assessments and forwarding the
collections to bondholders. The following is a summary of Improvement Bonds outstanding at
June 30, 2015.
Proceeds Maturity Date Interest Rate
Outstanding at
June 30, 2015
Assessment District No. 97-1 705,262$ 9/2/2018 4.10% - 5.60% 170,000$
Note 9: Deferred Outflows and Inflows of Resources
Pursuant to GASB Statement No. 63, “Financial Reporting of Deferred Outflows of
Resources, Deferred Inflows of Resources, and Net Position,” and GASB Statement No. 65,
“Items Previously Reported as Assets and Liabilities,” the City recognized deferred outflows
of resources in the government-wide financial statements. These items are a consumption of
net position by the City that is applicable to a future reporting period. Previous financial
reporting standards do not include guidance for reporting those financial statement elements,
which are distinct from assets and liabilities. The City has one item that is reportable on the
Government-wide Statement of Net Position. It relates to outflows from changes in the net
pension liability (Note 12). Deferred outflows of resources that are reported in the proprietary
funds are included in the Government-wide Statement of Net Position. Governmental
activities recorded deferred outflows of resources related to pensions of $783,364.
In addition, the City recognized deferred inflows of resources in the government-wide
financial statements and governmental fund financial statements. These items are an
acquisition of net position by the City that is applicable to a future reporting period. Previous
financial reporting standards do not include guidance for reporting those financial statement
elements, which are distinct from assets and liabilities. The City has one item that is
reportable on the Government-wide Statement of Net Position; inflows from changes in the
net pension liability (Note 12). Deferred inflows of resources reported in the Government-wide
Statement of Net Position related to pensions of $2,289,402.
Under the modified accrual basis of accounting, it is not enough that revenue is earned; it
must also be available to finance expenditures of the current period. Governmental funds will
therefore include additional deferred inflows of resources for amounts that have been earned
but are not available to finance expenditures in the current period. The City has two items
that are reportable on the Governmental Fund Balance Sheet: the first of these items relates
to long-term Housing notes receivable and accrued interest recorded in the Housing
special revenue funds for a total amount of $32,213,201 (Note 4). The second relates to
revenues not yet available from fire credit and grants in the amount of $9,795,575.
55 302
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 10: Interfund Receivables and Payables
The composition of current interfund receivable and payable as of June 30, 2015, are as
follows:
Civic Center
Fund
Golf Course
Fund
Non-Major
Governmental Total
Due From Other Funds
General Fund 201,400$ 568,733$ 49,018$ 819,151$
Due to Other Funds
The interfund balances were made to cover negative cash balances and other temporary
loans at June 30, 2015.
The composition of non-current interfund receivable and payable as of June 30, 2015, are as
follows:
Civic Center
Non-Major
Governmental Golf Course TOTAL
Advances to Other Funds
General Fund 7,058,068$ 2,545,514$ 5,339,516$ 14,943,098$
Advances From Other Funds
a. In September 2006, an advance up to $9,615,094 for the City Hall expansion from the
General Fund to the Civic Center Developer Impact Fee Fund was approved. As of
June 30, 2015, the Civic Center expansion was completed and the amount of the
advance was $7,058,068 outstanding. The advance accrues interest that would have
been earned by Local Agency Investment Fund.
b. As of June 30, 2015, the General Fund has advanced to the Golf Course fund
$5,339,516. The advances accrue interest at the City’s investment pool rate and are to
be repaid by the golf course out of future profits.
c) In October 2009, an advance up to $2,033,687 for the Phase 1 of the Corporate Yard
from the General Fund to the Street and Park Maintenance Facility Funds was approved.
As of June 30, 2015, the amount of the outstanding advance was $1,907,295. The
advance accrues interest at the earnings rate of the City’s investment pool fund.
d) In February 2003, the Redevelopment Agency Capital Projects PA No. 2 Fund advanced
$1,350,131 to the Fire Facility Fund to provide funding for development of the City’s north
Fire Station. On March 1, 2012 the outstanding advance of $925,192 was transferred
from the Redevelopment Agency to the General Fund with the Redevelopment Agency
receiving $925,192 in cash for the outstanding balance. The advance accrues interest at
the earnings rate of the City’s investment pool funds. As of June 30, 2015, the remaining
balance of the advance was $638,219.
56 303
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 11: Interfund Transfers
General Fund
Non-Major
Governmental
Capital
Improvement
Fund Total
Transfers In
General Fund -$ 188,777$ 163,881$ 352,658$
Capital Improvement Fund 2,333,174 6,162,051 8,495,225
Non-Major Governmental 770,258 11,902 2,407,288 3,189,448
Golf Course Fund 247,739 - - 247,739
Internal Service Funds 37,644 - - 37,644
Total:3,388,815$ 6,362,730$ 2,571,169$ 12,322,714$
Transfers Out
a) $188,777 was transferred to the General Fund from various non-major funds to fund
various program expenses within the City related to operations and grant funded activities.
b) $2,333,174 was transferred from the General Fund to the Capital Improvement Fund to
transfer various capital projects and sales tax rebate agreements.
c) $2,407,288 was transferred to Capital Improvement Fund from various non-major funds
when after the fact external grant funding was received to be used for various projects.
d) $770,258 was transferred to various non-major funds from the General Fund to support
various administrative operations and expenses within the City.
e) $247,739 was transferred from the General Fund to the Golf Course Fund to subsidize
operations per the FY14-15 budget.
f) $37,644 was grant money transferred to the internal service fund from the general fund for
the purchase of a COPS vehicle.
g) $6,162,051 was transferred from various non major funds to the Capital Project Fund to
fund various capital projects.
h) $163,881 was transferred to the general fund from the capital project fund when after the
fact external grant funding was received to be used for various projects.
i) $11,902 was transferred between non major funds to repay the DIF loan liability.
57 304
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
III. OTHER INFORMATION
Note 12: Defined Benefit Pension Plan
Miscellaneous Plan
Plan Descriptions
The City of La Quinta Miscellaneous Plans, are cost-sharing multiple-employer defined
benefit pension plans administered by the California Public Employees’ Retirement
System (CalPERS). All qualified and permanent employees are eligible to participate in
the City’s separate Miscellaneous (Tier I, Tier II, and PEPRA) Plans. Benefit provisions
under these plans are established by State statue and City resolution.
Benefits Provided
The Plans provides service retirement and disability benefits, annual cost of living
adjustments and death benefits to plan members, who must be public employees and
beneficiaries. Benefits are based on years of credited service, equal to one year of full
time employment. Members with five years of total service are eligible to retire at age 50
with statutorily reduced benefits. All members are eligible for non-duty disability benefits
after 10 years of service. The death benefit is one of the following: The Basic Death
Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost
of living adjustments for each plan are applied as specified by the Public Employees’
Retirement Law.
The Public Employees’ Pension Reform Act of 2013 (PEPRA) requires new benefits and
member contributions for new members as defined by PEPRA, that are hired after
January 1, 2013. These PEPRA members in pooled plans are reflected in the new risk
pools created by the CalPERS Board in response to the passage of PEPRA, beginning
with the June 30, 2013, risk-pool valuations.
Tier I Tier II PEPRA
Hire date
On and after
December 16,
1983
On and after
December 17, 2012
On and after January
1, 2013
Benefit formula 2.5% @ 55 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service
Benefit payments monthly for life monthly for life monthly for life
Retirement age 50 and up 50 and up 52 and up
Monthly benefits, as a % of eligible
compensation 2% to 2.5% 1.092% to 2.418% 1% to 2.5%
Required employee contribution rates 7.942%6.880%6.308%
Required employer contribution rates 14.660%8.049%6.250%
All Plans
58 305
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 12: Defined Benefit Pension Plan (continued)
Contribution Description
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires
that the employer contribution rates for all public employers be determined on an annual
basis by the actuary and shall be effective on the July 1 following notice of a change in
the rate. The total plan contributions are determined through the CalPERS’ annual
actuarial valuation process. The actuarially determined rate is based on the estimated
amount necessary to pay the Plans’ allocated share of the risk pool’s costs of benefits
earned by employees during the year, and any unfunded accrued liability. The employer
is required to contribute the difference between the actuarially determined rate and the
contribution rate of employees.
The required employer contribution and the amount paid to CalPERS by the City for the
year ended June 30, 2015 was $756,355. The City’s employer contributions were equal
to the required employer contributions for the year ended June 30, 2015.
Pension Liabilities, Pension Expense and Deferred Outflows and Deferred Inflows of
Resources Related to Pensions
As of June 30, 2015, the City reported net pension liabilities for its proportionate shares
of the net pension liability of each Plan as follows:
Tier I 6,433,125$
Tier II 96
PEPRA 170
Total Net Pension Liability:6,433,391$
Proportionate Share of Net Pension Liability
The City’s net pension liability for each Plan is measured as the proportionate share of
the net pension liability of the CalPERS Miscellaneous Pool. The net pension liability of
each of the Plans is measured as of June 30, 2014, and the total pension liability for each
Plan used to calculate the net pension liability was determined by an actuarial valuation
as of June 30, 2013 rolled forward to June 30, 2014 using standard update procedures.
City’s proportion of the net pension liability was based on CalPERS’ Public Agency Cost-
Sharing Allocation Methodology Report. The City’s proportionate share of the net pension
liability for each Plan as of June 30, 2013 and 2014 was as follows:
Tier I Tier II PEPRA Total Plans
Proportion - June 30, 2013 8,789,962$ 131$ 233$ 8,790,326$
Proportion - June 30, 2014 6,433,125 96 170 6,433,391
Change - Increase (Decrease)(2,356,837) (35) (63) (2,356,935)
For the year ended June 30, 2015, the City recognized a total pension expense of
$688,822 for all plans in total.
59 306
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 12: Defined Benefit Pension Plan (continued)
At June 30, 2015, the City reported deferred outflows and deferred inflows of resources
related to pensions as follows:
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension contributions made subsequent
to measurement date 783,364$
Difference between employer contribution
and the plans proportionate share of
employer contributions 94,759
Net difference between projected and actual
earnings on pension plan investments 2,161,918
Adjustment due to difference in proportions 32,725
Total 783,364$ 2,289,402$
The $783,364 reported as deferred outflows of resources related to contributions
subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended June 30, 2016. Other amounts reported as deferred outflows or
deferred inflows of resources related to pensions will be recognized as pension expense
as follows:
Measurement
Period ended
June 30:
Deferred
Outflows/(Inflows) of
Resources
2015 (577,103)$
2016 (577,103)
2017 (574,766)
2018 (560,430)
60 307
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 12: Defined Benefit Pension Plan (continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
For the measurement period ended June 30, 2014 (the measurement date), the total
pension liability was determined by rolling forward the June 30, 2013 total pension
liability. The June 30, 2013 and the June 30, 2014 total pension liabilities were based on
the following actuarial methods and assumptions:
Actuarial Cost Method Entry Age Normal Cost Method
Discount Rate 7.50%
Inflation 2.75%
Salary Increases 3.3% - 14.2% (1)
Investment Rate of Return 7.50% (2)
Mortality Rate Table Derived using CalPERS’ Membership Data for all
Funds (3)
Post Retirement Benefit Increase Contract COLA up to 2.75% until Purchasing
Power Protection Allowance Floor on Purchasing
Power applies, 2.75% thereafter
(1) Depending on age, service and type of employement
Actuarial Assumptions
(3) The mortality table used was developed based on CalPERS’ specific data. The table includes 20
years of mortality improvements using Society of Actuaries Scale BB. For more details on this
table, please refer to the 2014 experience study report on the CalPERS website.
(2) Net of Pension Plan Investment and Administrative Expenses; includes Inflation
All other actuarial assumptions used in the June 30, 2013 valuation were based on the
results of an actuarial experience study for the period from 1997 to 2011, including
updates to salary increase, mortality and retirement rates. The Experience Study report
can be obtained at CalPERS’ website.
Discount Rate
The discount rate used to measure the total pension liability was 7.50 percent. To
determine whether the municipal bond rate should be used in the calculation of a
discount rate for each plan, CalPERS stress tested plans that would most likely result in a
discount rate that would be different from the actuarially assumed discount rate. Based
on the testing, none of the tested plans run out of assets. Therefore, the current 7.50
percent discount rate is adequate and the use of the municipal bond rate calculation is
not necessary. The long term expected discount rate of 7.50 percent is applied to all
plans in the Public Employees Retirement Fund.
According to Paragraph 30 of Statement 68, the long-term discount rate should be
determined without reduction for pension plan administrative expense. The
7.50 percent investment return assumption used in this accounting valuation is net of
administrative expenses. Administrative expenses are assumed to be 15 basis points. An
investment return excluding administrative expenses would have been
7.65 percent. Using this lower discount rate has resulted in a slightly higher total pension
liability and net pension liability. CalPERS determined this difference was deemed
immaterial to the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension
Plan.
61 308
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 12: Defined Benefit Pension Plan (continued)
CalPERS is scheduled to review all actuarial assumptions as part of its regular Asset
Liability Management review cycle that is scheduled to be completed in
February 2018. Any changes to the discount rate will require Board action and proper
stakeholder outreach. For these reasons, CalPERS expects to continue using a discount
rate net of administrative expenses for GASB 67 and 68 calculations through at least the
2017-18 fiscal year. CalPERS will continue to check the materiality of the difference in
calculation until such time as they have changed their methodology.
The long-term expected rate of return on pension plan investments was determined using
a building-block method in which best-estimate ranges of expected future real rates of
return (expected returns, net of pension plan investment expense and inflation) are
developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both
short-term and long-term market return expectations as well as the expected pension
fund cash flows. Such cash flows were developed assuming that both members and
employers will make their required contributions on time and as scheduled in all future
years. Using historical returns of all the funds’ asset classes, expected compound
(geometric) returns were calculated over the short-term (first 10 years) and the long-term
(11-60 years) using a building-block approach. Using the expected nominal returns for
both short-term and long-term, the present value of benefits was calculated for each fund.
The expected rate of return was set by calculating the single equivalent expected return
that arrived at the same present value of benefits for cash flows as the one calculated
using both short-term and long-term returns. The expected rate of return was then set
equivalent to the single equivalent rate calculated above and rounded down to the
nearest one quarter of one percent.
The table below reflects long-term expected real rate of return by asset class. The rate of
return was calculated using the capital market assumptions applied to determine the
discount rate and asset allocation. These geometric rates of return are net of
administrative expenses.
Asset Class
New Strategic
Allocation
Real Return Years
1 - 10 (1)
Real Return
Years 11+ (2)
Global Equity 47.0% 5.25% 5.71%
Global Fixed Income 19.0 0.99 2.43
Inflation Sensitive 6.0 0.45 3.36
Private Equity 12.0 6.83 6.95
Real Estate 11.0 4.50 5.13
Infrastructure and Forestland 3.0 4.50 5.09
Liquidity 2.0 (0.55) (1.05)
(1) An expected inflation of 2.5% used for this period
(2) An expected inflation of 3.0% used for this period
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 12: Defined Benefit Pension Plan (continued)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the
Discount Rate
The following presents the City’s proportionate share of the net pension liability for each
Plan, calculated using the discount rate for each Plan, as well as what the City’s
proportionate share of the net pension liability would be if it were calculated using a
discount rate that is 1% point lower or 1% point higher than the current rate:
Discount Rate - 1%Current Discount Discount Rate +1%
6.50%7.50% 8.50%
Tier I 11,461,839$ 6,433,125$ 2,259,769$
Tier II 170 96 34
PEPRA 303 170 60
TOTAL: 11,462,312$ 6,433,391$ 2,259,863$
Miscellaneous plans Net
Pension Liability/(Asset)
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the
separately issued CalPERS financial reports. See CalPERS website for additional
information.
Payable to the Pension Plan
Detailed information about each pension plan’s fiduciary net position is available in the
separately issued CalPERS financial reports. See CalPERS website for additional
information.
Note 13: Defined Contribution Plans
Plan Description
The Supplemental Pension Savings Plan is a defined contribution pension plan established
by the City to provide retirement excess benefits to general employees of the City. At
June 30, 2015, there was one plan member. There are no required contributions by plan
members. During the 2014-2015 fiscal year the City made no contributions to fund the
Supplemental Pension Savings Plan.
Note 14: Post-Employment Health Benefits
Plan Description
The City of La Quinta provides other postemployment benefits (OPEB) through a
single-employer defined benefit healthcare plan by contributing on behalf of all eligible
retirees’ $119/month for calendar 2014 and $122/month for calendar 2015, increased in all
future years according to the rate of medical inflation. These benefits are provided per
contract between the City and the employee associations. A separate financial report is not
available for the plan.
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CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 14: Post-Employment Health Benefits (continued)
Funding Policy
The contribution requirements of plan members and the City are established and may be
amended by the City, City Council and/or the employee association. Currently, contributions
are not required from plan members. A contribution was made during 2014-2015 fiscal year
for $16,412.
As a result, the City calculated and recorded a net OPEB obligation, representing the
difference between the annual required contribution (ARC) and actual contributions, as
presented below:
Annual required contribution (ARC)106,104$
Interest on net OPEB obligation 26,917
Adjustment to ARC (38,915)
Annual OPEB cost 94,106
Contributions made 16,412
(Decrease) increase in net OPEB obligation 77,694
Net OPEB obligation (asset) - beginning of year 663,377
Net OPEB obligation (asset) - end of year 741,071$
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan
and the net OPEB obligation for 2014-2015 and the two preceding years were as follows:
Actual Percentage
Fiscal Annual Contribution of Annual Net OPEB
Year OPEB (Net of OPEB Cost Obligation
End Cost Adjustments) Contributed (Asset)
6/30/2013 116,408$ 16,461$ 14.14% 559,591$
6/30/2014 120,039 16,253 13.54% 663,377
6/30/2015 94,106 16,412 17.44% 741,071
Funded Status and Funding Progress
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts
and assumptions about the probability of occurrence of events far into the future. Examples
include assumptions about future employment, mortality, and the healthcare cost trend.
Amounts determined regarding the funded status of the plan and the annual required
contributions of the City are subject to continual revision as actual results are compared with
past expectations and new estimates are made about the future.
The schedule of funding progress below presents multiyear trend information about whether
the actuarial value of plan assets is increasing or decreasing over time relative to the
actuarial accrued liabilities for benefits. The information is as of the latest actuarial valuation
information available.
Type of
Valuation
Actuarial
Valuation
Date
Actuarial
Value of
Assets
Actuarial
Accrued
Liability Funding Ratio Covered Payroll
Percent of
Covered
Payroll Interest Rate
Actual 7/1/2011 -$ 428,328$ 0.0%7,459,445$ 5.7% 5.0%
Actual 7/1/2014 - 851,125 0.0%5,372,588 15.8% 4.0%
64 311
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 14: Post-Employment Health Benefits (Continued)
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan
(the plan as understood by the employer and the plan members) and include the types of
benefits provided at the time of each valuation and the historical pattern of sharing of benefit
costs between the employer and plan members to that point. The required contribution was
determined as part of the July 1, 2014, actuarial valuation using the projected unit credit
method. The actuarial assumptions included a 4.0% investment rate of return and healthcare
trend rate ranging from 5% to 8%
The actuarial value of assets is set equal to the reported market value of assets. The UAAL is
being amortized as a level dollar on an open basis. The remaining amortization period at
June 30, 2015, was twenty-four years. The number of active participants is 12.
Note 15: Risk Management
Description of Self-Insurance Pool Pursuant to Joint Powers Agreement
The City of La Quinta is a member of the California Joint Powers Insurance Authority
(CJPIA). The CJPIA is composed of 118 California public entities and is organized under a
joint powers agreement pursuant to California Government Code §6500 et seq. The purpose
of the CJPIA is to arrange and administer programs for the pooling of self-insured losses, to
purchase excess insurance or reinsurance, and to arrange for group purchased insurance for
property and other lines of coverage. The CJPIA began covering claims of its members in
1978. Each member government has an elected official as its representative on the Board of
Directors. The Board operates through a nine-member Executive Committee.
Self-Insurance Programs of the CJPIA
Each member pays an annual contribution at the beginning of the coverage period. A
retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13
and prior. Retrospective adjustments are scheduled to continue indefinitely on coverage
years 2012-13 and prior, until all claims incurred during those coverage years are closed, on
a pool-wide basis. This subsequent cost re-allocation among members, based on actual
claim development, can result in adjustments of either refunds or additional deposits
required. Coverage years 2013-14 and forward are not subject to routine annual
retrospective adjustment.
The total funding requirement for self-insurance programs is estimated using actuarial models
and pre-funded through the annual contribution. Costs are allocated to individual agencies
based on exposure (payroll) and experience (claims) relative to other members of the
risk-sharing pool. Additional information regarding the cost allocation methodology is
provided below.
Liability
In the liability program claims are pooled separately between police and general government
exposures. (1) The payroll of each member is evaluated relative to the payroll of other
members. A variable credibility factor is determined for each member, which establishes the
weight applied to payroll and the weight applied to losses within the formula. (2) The first
layer of losses includes incurred costs up to $30,000 for each occurrence and is evaluated as
a percentage of the pool’s total incurred costs within the first layer.
65 312
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 15: Risk Management (Continued)
(3) The second layer of losses includes incurred costs from $30,000 to $750,000 for each
occurrence and is evaluated as a percentage of the pool’s total incurred costs within the
second layer. (4) Incurred costs from $750,000 to $50 million, are distributed based on the
outcome of cost allocation within the first and second loss layers.
For 2014-15, the CJPIA’s pooled retention is $2 million per occurrence, with reinsurance to
$20 million, and excess insurance to $50 million. The CJPIA’s reinsurance contracts are
subject to the following additional pooled retentions: (a) 50% of the $2.5 million annual
aggregate deductible in the $3 million x/s $2 million layer, (b) 50% quota share of the
$3 million x/s $2 million layer, and (c) $3 million annual aggregate deductible in the $5 million
x/s $10 million layer.
The overall coverage limit for each member, including all layers of coverage, is $50 million
per occurrence. Costs of covered claims for subsidence losses have a sub-limit of
$30 million per occurrence.
Workers’ Compensation
In the workers’ compensation program claims are pooled separately between public safety
(police and fire) and general government exposures. (1) The payroll of each member is
evaluated relative to the payroll of other members. A variable credibility factor is determined
for each member, which establishes the weight applied to payroll and the weight applied to
losses within the formula. (2) The first layer of losses includes incurred costs up to $50,000
for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within
the first layer. (3) The second layer of losses includes incurred costs from $50,000 to
$100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred
costs within the second layer. (4) Incurred costs from $100,000 to statutory limits are
distributed based on the outcome of cost allocation within the first and second loss layers.
For 2014-15, the CJPIA’s pooled retention is $2 million per occurrence, with reinsurance to
statutory limits under California Workers’ Compensation Law.
Employer’s Liability losses are pooled among members to $2 million. Coverage from
$2 million to $5 million is purchased as part of a reinsurance policy, and Employer’s Liability
losses from $5 million to $10 million are pooled among members.
Purchased Insurance
Property Insurance - The City of La Quinta participates in the all-risk property protection
program of the CJPIA. This insurance protection is underwritten by several insurance
companies. City of La Quinta property is currently insured according to a schedule of covered
property submitted by the City of La Quinta to the CJPIA. City of La Quinta property currently
has all-risk property insurance protection in the amount of $62,668,100. There is a $5,000
deductible per occurrence except for non-emergency vehicle insurance which has a $1,000
deductible. Premiums for the coverage are paid annually and are not subject to retrospective
adjustments.
Earthquake and Flood Insurance - The City of La Quinta purchases earthquake insurance
brokered through a third party. The City of La Quinta property currently has earthquake
protection up to $10,000,000 per occurrence. There is a deductible of $25,000 per
occurrence. Premiums for the coverage are paid annually in the amount of $93,000 and are
not subject to retrospective adjustments.
66 313
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 15: Risk Management (Continued)
Theft Insurance - The City purchases theft insurance coverage brokered through a third
party. The City pays an annual premium of $3,366, which covers thefts up to $1,000,000, with
a deductible of $5,000 per occurrence.
Pollution Legal Liability Insurance - The City participates in the pollution legal liability
insurance program which is available through the CJPIA. The policy covers sudden and
gradual pollution of scheduled property, streets, and storm drains owned by the City.
Coverage is on a claims-made basis. There is a $50,000 deductible. The CJPIA has a limit
of $10 million for the 3-year period from July 1, 2014 through July 1, 2017.
Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced
settlements or judgments that exceeded pooled or insured coverage. Earthquake and Flood
insurance was reduced from $20 million to $10 million for the policy period February 7, 2015
to February 7, 2016.
Note 16: Fund Balance
a. Fund Balance Commitments
The City has the following committed fund balance shown on the balance sheet:
Committed to emergency reserve – in June of 2015 the City established the amount of
40% of the FY Year 2015-2016 budgeted operating expenditures. The City chose to
base the FY 2014-2015 year-end reserves on the adopted FY 2015-2016 budget. This
amount totals $15,372,600. The funds would be drawn upon pursuant to the Municipal
Code Section 2.20 which defines an emergency or disaster to mean the actual or
threatened existence of conditions of disaster or of extreme peril to the safety of persons
and property within this city caused by such conditions as air pollution, fire, flood, storm,
epidemic, riot, earthquake or other conditions, including conditions resulting from war or
imminent threat of war but other than conditions resulting from a labor controversy, which
conditions are or are likely to be beyond the control of the services, regular personnel,
equipment and facilities of the city and which may require the combined forces of other
political jurisdictions to combat.
Committed to post retirement health benefits - the City has committed a portion of fund
balance for the payment in future years of their Post retirement health benefits. For the
year ended June 30, 2015, the City has committed $1,523,401 for this purpose.
Committed to working capital reserve: in June of 2015 the City established the amount of
10% of the FY Year 2015-2016 budgeted expenditures. The City chose to base the FY
2014-2015 year-end reserves on the adopted FY 2015-2016 budget. This amount totals
$3,843,150.
Committed to Fiscal Year 2015 carryovers to Fiscal Year 2016 $476,400.
Committed to Fiscal Year 2015 capital project carryovers to Fiscal Year 2016 $1,727,390.
These committed amounts have been approved by Council based on certain percentages
and will be used only in the event of Council approval.
67 314
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 16: Fund Balance (continued)
b. Fund Balance Restatements
Upon receiving the Finding of Completion for the Successor Agency and the approval of
the Agency’s OB Resolution No. 2014-001 for loans made to the former Redevelopment
Agency by the City of La Quinta, the receivable balance for the loans was recorded to the
General Fund. The City later elected to transfer $6,995,305 of receivable balances from
the General Fund to the Housing PA No. 1 Fund in accordance with HSC 34191.4 which
states that 20% of the sponsoring entity loan repayments must be transferred to the
Low/Mod fund. The General Fund and the Housing PA No. 1 Fund restated their fund
balances to correctly reflect the allocation of the future loan repayments between the
General Fund and the Housing PA No.1 Fund.
c. At June 30, 2015, the following funds had deficit fund balances:
Major Capital Projects Funds:
Capital Improvement 1,217,034$
Civic Center 7,259,468
Nonmajor Special Revenue Funds:
Federal Assistance 12,914
Lighting and Landscaping 14,035
Nonmajor Capital Projects Funds:
Library Development 1,654,779
Street Facility 1,907,295
Fire Facility 638,219
Note 17: Golf Course Management Agreement
The City entered into an agreement with Landmark Golf Management LLC (operator) to
manage the golf operations at the city-owned SilverRock Golf Course. The Agreement
entered into on April 6, 2004, sets forth a five-year term commencing upon the completion of
the golf course. On January 14, 2005, the golf course was deemed to be complete and
management was turned over to the operator. The contract has been amended and extended
numerous times with the current contract expiring July 1, 2018. The contract provides that the
operator will manage the day to day operations, hire employees, provide golf pro shop and
food services, manage all marketing and promotional activities, prepare the annual budget
report for Council consideration, and manage accounting and payroll functions. In addition to
the annual payment for management services, the City has advanced the operator $250,000
to pay for golf course expenses. Twice a month the operator submits a request for
reimbursement to the City to replenish the City’s advance. In addition, the agreement sets
forth the establishment of a capital reserve fund of 2% of green fees. For the fiscal year
ending June 30, 2015, the Golf Course had an operating loss before contributions and
transfers of $574,296.
Note 18: Reimbursement Agreements
The City entered into a sales tax sharing agreement on January 30, 2006, with Costco
Wholesale Corporation. Under the terms of the agreement the City shall make quarterly
payments of 40% of any sales tax generated from Costco in an amount not to exceed
$4,000,000 over a ten-year period. Due to the reporting of sales tax information by the State
Board of Equalization to the City, the reimbursement payments by the City will lag by one
quarter. The agreement terminates when either the $4,000,000 limit is reached or in
10 years whichever comes first. The Costco business opened in November 2006. As of June
30, 2015, the City made $2,914,202 in reimbursement payments to the owner leaving an
outstanding balance of $1,085,798.
68 315
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 18: Reimbursement Agreements (continued)
On September 9, 2014, the City entered into a sales tax sharing agreement with One Eleven
La Quinta LLC (“Hobby Lobby”). Under the terms of the agreement the City shall make
quarterly payments of 50% of any sales tax generated from Hobby Lobby in an amount not to
exceed $400,000 over an eight year period. Due to the reporting of sales tax information by
the State Board of Equalization to the City, the reimbursement payments by the City will lag
by one quarter. The agreement terminates when either the $400,000 limit is reached or in
eight years whichever comes first. The Hobby Lobby business opened in December 2014.
For the year ended June 30, 2015, the City made $8,748 in reimbursement payments to the
owner leaving an outstanding balance of $391,251.
Note 19: Successor Agency Trust for Assets of Former Redevelopment Agency
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”)
that provides for the dissolution of all redevelopment agencies in the State of California. This
action impacted the reporting entity of the City of La Quinta that previously had reported a
redevelopment agency within the reporting entity of the City as a blended component unit.
The Bill provides that upon dissolution of a redevelopment agency, either the city or another
unit of local government will agree to serve as the “successor agency” to hold the assets until
they are distributed to other units of state and local government. On January 3, 2011, the City
Council elected to become the Successor Agency for the Former Redevelopment Agency
(‘Former Agency”) in accordance with the Bill as part of City resolution number 2012-002.
After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the
State of California cannot enter into new projects, obligations or commitments. Subject to the
control of a newly established oversight board, remaining assets can only be used to pay
enforceable obligations in existence at the date of dissolution (including the completion of any
unfinished projects that were subject to legally enforceable contractual commitments).
In future fiscal years, successor agencies will only be allocated revenue in the amount that is
necessary to pay the estimated annual installment payments on enforceable obligations of
the Former Agency until all enforceable obligations of the prior redevelopment agency have
been paid in full and all assets have been liquidated.
In accordance with the timeline set forth in the Bill (as modified by the California Supreme
Court on December 29, 2011) all redevelopment agencies in the State of California were
dissolved and ceased to operate as a legal entity as of February 1, 2012.
The Successor Agency to the Former Agency is reported as a fiduciary fund (private purpose
trust fund).
a. Cash and Investments
Cash and investments reported in the accompanying financial statements consisted of
the following:
Cash and investments pooled with the City 22,782,629$
Cash and investments with fiscal agent 31,274,568
54,057,197$
69 316
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 19: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
b. Loans Receivable
Owner Participation Agreement – Garff Properties, LLC
In July 2010, the Former Agency entered into an Owner Participation Agreement (OPA)
with an Garff Properties-La Quinta, LLC (“Garff”) that provides for the Former Agency to
provide a rehabilitation loan to Garff of up to $2,300,000 for the construction of a new
auto dealership facility and rehabilitation of an existing dealership facility. In connection
with the OPA, Garff has executed a promissory note which is secured by a deed of trust,
and an operating covenant. The loan will be repaid by crediting future sales and property
tax increment taxes generated on the site until the cumulative taxes collected equals the
loan amount. At that time, the note will be cancelled and the operating covenant will
terminate.
If, after ten years of operation, a shortfall exists between the revenues collected and the
outstanding loan amount, the note will be cancelled and the operating covenant will
terminate. Further, if at any time through no fault of the dealership certain future events
outside of the dealership control occur the note will be cancelled and the operating
covenant will terminate. The balance at June 30, 2015 is $1,441,856.
Owner Participation Agreement – Torre Nissan
In June 2011, the Former Agency entered into an Owner Participation Agreement (OPA)
with an autodealer, Mega Dealer, LLC (“Torre Nissan”) that provides for the Former
Agency to provide a rehabilitation loan to Torre Nissan of up to $1,500,000 for the
remodeling of the existing dealership and an expansion of the dealership facility to
accommodate a new line of electric and commercial vehicles. The new expansion will
also include service and parts sales facilities. In connection with the OPA, Torre Nissan
has executed a promissory note, which is secured by a subordinated deed of trust, and
an operating covenant. The loan will be repaid by crediting future sales and property tax
increment taxes generated on the site until the cumulative taxes collected equals the loan
amount. If Nissan Motor Company ceases to exist, the note will be cancelled and the
operating covenant will terminate. At the end of the ten-year operating covenant, the
operating covenant will terminate and the note will be cancelled, and any outstanding
loan balance will be forgiven. The balance at June 30, 2015 is $1,329,331.
c. Due from other Governments
La Quinta Library
In April 2005, an advance of $2,490,273 was made from the Former Agency to provide
funding for the construction of the public library. The advance accrues interest at the
earnings rate of the City’s investment pool fund. The remaining balance of this advance
at June 30, 2015, is $1,654,779.
70 317
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 19: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
d. Long-Term Debt
A description of long-term debt outstanding (excluding defeased debt) of the Successor
Agency as of June 30, 2015, follows:
Balance at
July 1, 2014 Additions Defeasements Deletions
Balance at June
30, 2015
Due within one
year
Tax allocation bonds $ 126,175,000 $ 65,600,000 $ - $ 5,910,000 185,865,000$ 6,035,000$
City loans 34,976,516 - - 1,705,387 33,271,129 -
Revenue bonds 103,810,000 - 73,405,000 2,615,000 27,790,000 565,000
Unamortized premiums/discounts 5,508,970 8,545,482 112,473 693,995 13,247,984 -
Total $ 270,470,486 $ 74,145,482 $ 73,517,473 $ 10,924,382 $ 260,174,113 $ 6,600,000
Tax Allocation Bonds
As of June 30, 2015, the following issuances of Tax Allocation Bonds were outstanding:
Series 2011, Project Area No. 2
On June 6, 2011, the Former Agency issued subordinate taxable tax allocation bonds
in the amount of $6,000,000 to finance capital projects benefiting the La Quinta
Redevelopment Project Area No. 2. The 2011 tax allocation bonds were issued at a
discount of $86,207 and issuance costs of $108,500.
The bonds consist of $190,000 of term bonds that accrue interest at 5.375% and
mature on September 1, 2016, $280,000 of term bonds that accrue interest at
7.125% and mature on September 1, 2021, $380,000 of term bonds that accrue
interest at 7.600% and mature on September 1, 2026, and $5,150,000 of term bonds
that accrue interest at 8.150% and mature on September 1, 2031. The interest and
principal on the bonds are payable from pledged tax increment revenues.
A portion of the proceeds were used to fund the bond reserve requirement. The
principal balance of outstanding bonds at June 30, 2015, is $5,890,000 with an
unamortized discount of $73,856.
The minimum annual requirements to amortize the bond payable as of June 30, 2015,
are as follows:
Principal Interest
2016 40,000$ 471,780$
2017 40,000 469,630
2018 50,000 466,774
2019 50,000 463,211
2020 55,000 459,471
2021-2025 335,000 2,228,929
2026-2030 475,000 2,075,861
2031-2035 1,125,000 1,822,544
2036-2040 3,720,000 805,628
Totals 5,890,000$ 9,263,828$
71 318
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 19: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
Series 2013A
On December 17, 2013, the Successor Agency issued subordinate tax allocation
refunding bonds in the amount of $97,190,000 to refinance outstanding long term
obligations held by the Successor Agency. The 2013 Series A tax allocation bonds
were issued at a premium of $6,056,280 and issuance costs of $480,001.
Interest rates on the bonds range from 3.00% to 5.00% and are payable
semi-annually on March 1 and September 1 of each year until maturity. The interest
and principal of the bonds are payable solely from property tax revenue.
A portion of the proceeds were used to fund the bond reserve requirement. The
principal balance of outstanding bonds at June 30, 2015, is $92,500,000 with an
unamortized premium of $5,540,652.
The minimum annual requirements to amortize the bond payable as of June 30, 2015,
are as follows:
Principal Interest
2016 3,405,000$ 4,385,588$
2017 3,505,000 4,264,364
2018 3,645,000 4,121,362
2019 3,790,000 3,953,713
2020 3,985,000 3,759,388
2021-2025 23,100,000 15,523,564
2026-2030 29,390,000 9,105,685
2031-2034 21,680,000 1,694,717
Totals 92,500,000$ 46,808,381$
Series 2013B
On December 17, 2013, the Successor Agency issued subordinate tax allocation
refunding bonds in the amount of $23,055,000 to refinance outstanding long term
obligations held by the Successor Agency. The 2013 Series B tax allocation bonds
were issued at a discount of $8,951 and issuance costs of $122,274.
The bonds consist of $3,710,000 of term bonds that accrue interest at 5.240% and
mature on September 1, 2026, $4,335,000 of term bonds that accrue interest at
5.550% and mature on September 1, 2029, and $5,115,000 of term bonds that
accrue interest at 5.820% and mature on September 1, 2032. The remaining
$9,895,000 matures annually with rate ranging from 0.76% to 4.89%. The interest
and principal on the bonds are payable from property tax revenue.
A portion of the proceeds were used to fund the bond reserve requirement. The
principal balance of outstanding bonds at June 30, 2015, is $21,875,000 with an
unamortized discount of $8,055.
72 319
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 19: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
The minimum annual requirements to amortize the bond payable as of June 30, 2015,
are as follows:
Principal Interest
2016 865,000$ 1,032,011$
2017 880,000 1,016,504
2018 900,000 996,053
2019 920,000 970,318
2020 950,000 939,623
2021-2025 5,375,000 4,039,264
2026-2030 6,870,000 2,473,401
2031-2033 5,115,000 458,180
Totals 21,875,000$ 11,925,354$
2014 Series A Local Agency Tax Allocation Bonds
On July 9, 2014, the Successor Agency issued tax allocation refunding bonds in the
amount of $65,600,000, with a premium of $8,545,482, to refinance outstanding 2004
Series A Revenue Bonds of $72,865,000 with interest payments ranging between 3%
to 5.25%. The net proceeds of $73,402,709 (after payment of $592,017 in issuance
costs) plus an additional $4,012,653 of 2004 Series A sinking fund monies were used
to purchase U.S. Government Securities. Those securities were deposited in an
irrevocable trust with an escrow agent; and issued to pay-off $77,415,362 of
remaining principal and accrued interest of 2004 Series A. As a result, the 2004
Series A bonds are considered to be defeased and the liability for those bonds has
been removed from the Successor Agency’s long-term debt.
The Successor Agency in effect reduced its aggregate debt service payments over
the remaining maturity period of the 2004 Series A by $11,814,531 and to obtain an
economic gain (difference between the present values of the debt service payments
on the old and new debt) of $7,801,878.
The minimum annual requirements to amortize the 2014 Series A bonds payable as
of June 30, 2015, are as follows:
Principal Interest
2016 1,725,000$ 3,073,750$
2017 2,205,000 3,023,425
2018 2,270,000 2,956,300
2019 2,340,000 2,875,450
2020 2,435,000 2,779,950
2021-2025 13,995,000 11,975,375
2026-2030 17,845,000 8,013,875
2031-2035 22,785,000 2,959,125
Totals 65,600,000$ 37,657,250$
73 320
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 19: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
Revenue Bonds
As of June 30, 2015, the following issuances of Revenue Bonds were outstanding:
2004 Series A Local Agency Revenue Bonds
On June 29, 2004, the La Quinta Financing Authority issued revenue bonds in the
amount of $90,000,000 to finance projects benefiting low and moderate income
housing in La Quinta Redevelopment Project Area No. 1 and La Quinta
Redevelopment Project Area No. 2 and to advance refund the Agency’s
Redevelopment Project Areas No. 1 and 2, 1995 Housing Tax Allocation Bonds. The
2004 local agency revenue bonds were issued with issuance costs of $2,600,229
and a premium of $476,496.
Interest is payable semi-annually on March 1 and September 1 of each year,
commencing September 1, 2005. Interest payments range from 3% to 5.25% per
annum. The interest and principal on the bonds are payable from pledged tax
increment revenues.
Term bonds maturing on September 1, 2024, September 1, 2029 and September 1,
2034, are subject to mandatory redemption from minimum sinking fund payments, in
part by lot, on September 1, 2017, September 1, 2025 and September 1, 2030,
respectively, and on each September 1, thereafter at a redemption price equal to the
principal amount thereof plus accrued interest to the redemption date.
A portion of the proceeds were used to obtain a surety agreement to satisfy the bond
reserve requirement. There are certain limitations regarding the issuance of parity
debt as further described in the official statement. These bonds were defeased as of
June 30, 2015, with the issuance of the 2014 tax allocation refunding bonds.
2011 Series A Local Agency Subordinate Taxable Revenue Bonds
On June 9, 2011, the La Quinta Financing Authority issued revenue bonds in the
amount of $28,850,000 to finance projects benefiting low and moderate income
housing in La Quinta Redevelopment Project Area No. 1 and La Quinta
Redevelopment Project Area No. 2. The 2011 local agency subordinate taxable
revenue bonds were issued with issuance costs of $323,375 and a discount of
$308,839.
Interest is payable semi-annually on March 1 and September 1 of each year,
commencing September 1, 2011. Interest payments range from 3.750% to 8.185%
per annum. The interest and principal on the bonds are payable from pledged tax
increment revenues.
Term bonds maturing on September 1, 2026, September 1, 2031 and
September 1, 2036, are subject to mandatory redemption from minimum sinking fund
payments, in part by lot, on September 1, 2022, September 1, 2027, and
September 1, 2032, respectively, and on each September 1 thereafter at a
redemption price equal to the principal amount thereof plus accrued interest to the
redemption date.
74 321
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 19: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
A portion of the proceeds were used to fund the bond reserve requirement. There are
certain limitations regarding the issuance of parity debt as further described in the
official statement. The principal balance of outstanding bonds at June 30, 2015, is
$27,790,000 with an unamortized discount of $259,303.
The minimum annual requirements to amortize the bond payable as of
June 30, 2015, are as follows:
Principal Interest
2016 565,000$ 2,113,843$
2017 590,000 2,083,196
2018 625,000 2,047,537
2019 665,000 2,006,783
2020 705,000 1,961,202
2021-2025 4,360,000 8,935,840
2026-2030 6,290,000 6,926,554
2031-2035 9,195,000 3,898,421
2036-2037 4,795,000 394,422
Totals 27,790,000$ 30,367,798$
Loans from the City of La Quinta
The City of La Quinta loaned money to the Former Agency to cover operating and
capital shortfalls. These loans were paid back to the City during the 2010-2011 fiscal
year. This repayment was disallowed by the California Department of Finance during
their Asset Transfer Review of the Former Agency and demanded that this money be
remitted to the State for distribution to the effecting taxing entities. The City reversed
this transaction and the payable to the State is properly recorded by the Successor
Agency as of June 30, 2013. In a letter dated November 6, 2013, the California
Department of Finance approved the loans as enforceable obligations to be paid
through Successor Agency property tax. This loan received is split between the City
and the Housing Authority. As of June 30, 2015, the amount due to the City of La
Quinta and the Housing Authority was $33,271,129.
e. Pledged Tax Revenues
The City pledged, as security for bonds issued, either directly or through the Financing
Authority, a portion of tax increment revenue (including Low and Moderate Income
Housing set-aside and pass through allocations) that it receives. The bonds issued were
to provide financing for various capital projects, accomplish Low and Moderate Income
Housing projects and to defease previously issued bonds. Assembly Bill 1X 26 provided
that upon dissolution of the Redevelopment Agency, property taxes allocated to
redevelopment agencies no longer are deemed tax increment but rather property tax
revenues and will be allocated first to successor agencies to make payments on the
indebtedness incurred by the dissolved redevelopment agency. Total principal and
interest remaining on the debt is $349,677,611 with annual debt service requirements as
indicated above. For the current year, the total property tax revenue recognized by the
Successor Agency for the payment of indebtedness incurred was $14,465,537 and the
debt service obligation on the bonds was $19,084,062.
75 322
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2015
Note 19: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
f. Conduit Debt Financing
2002 Series B Multifamily Housing Revenue Bonds
In April 2002, the Former Agency issued $3,000,000 of 2002 Series B Multifamily
Housing Revenue Bonds to provide financing for the acquisition, construction and
equipping of a multifamily senior rental housing project known as Miraflores Apartments
located in the City of La Quinta. The bonds mature on June 1, 2035, and bear interest at
5.5% per annum. Outstanding bonds at June 30, 2015, are $2,580,000.
The bond is secured solely by the credit facility, Fannie Mae, and by a pledge of the trust
estate comprised of bond proceeds and property. The bond is not an obligation of the
issue, but payable solely from the security.
g. Insurance
The Successor Agency of the Former Agency is covered under the insurance policy of
the City of La Quinta at June 30, 2015.
Note 20: Net Position Restatements
Pursuant to GASB Statement No. 68 “Accounting and Financial Reporting For Pensions – An
Amendment of GASB Statement No. 27”, the City’s Governmental Net Position was restated
as of June 30, 2014, to reflect the City’s proportionate share of the net pension liability as of
June 30, 2013.
The restatements were reflected as follows:
Miscellaneous
Plans
Total
Restatement
Previously
Stated Restated
Governmental Net Position 8,033,971$ 8,033,971$ 665,190,960$ 657,156,989$
June 30, 2013 (NPL)8,033,971$
Net Position at July 1, 2014
76 323
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERAL FUND
YEAR ENDED JUNE 30, 2015
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated 84,638,448$ 84,638,448$ 84,638,448$ -$
Resources (Inflows):
Taxes 23,657,630 24,268,930 25,959,888 1,690,958
Licenses and permits 1,118,400 1,184,200 1,356,978 172,778
Intergovernmental 9,267,501 9,788,596 9,774,046 (14,550)
Charges for services 1,013,994 1,122,194 1,341,438 219,244
Use of money and property 679,462 679,462 604,061 (75,401)
Fines and forfeitures 138,150 237,650 283,798 46,148
Miscellaneous 107,505 155,905 210,396 54,491
Transfers in 142,978 323,189 352,658 29,469
Capital leases - - 9,000 9,000
Amounts Available for Appropriations 120,764,068 122,398,574 124,530,711 2,132,137
Charges to Appropriation (Outflow):
General government
Legislative 283,031 283,031 277,493 5,538
City Manager 872,970 1,190,743 1,003,783 186,960
City Attorney 380,000 380,000 378,308 1,692
Marketing 623,916 624,736 607,472 17,264
Human Resources 368,601 396,156 348,150 48,006
City Clerk 441,501 559,375 503,668 55,707
Fiscal Services 1,017,589 1,118,930 1,076,881 42,049
Central Services 855,394 996,504 648,764 347,740
Public safety
Police 13,560,025 13,666,143 14,080,981 (414,838)
Public Buildings 959,255 962,655 913,208 49,447
Code Compliance 804,088 829,037 764,965 64,072
Building & Safety 608,343 610,803 668,164 (57,361)
Fire 5,378,711 5,413,992 5,103,896 310,096
Emergency Services 91,111 91,501 86,282 5,219
Planning and development
Administration 1,108,586 1,199,933 995,443 204,490
Current Planning 352,079 384,118 378,414 5,704
Parks and recreation
Community Services Admin 1,008,094 1,056,543 993,976 62,567
Wellness Center 375,458 375,054 345,216 29,838
Parks & Recreation 185,853 191,011 200,788 (9,777)
Park Maintenance 1,413,905 1,440,934 1,523,085 (82,151)
Public works
Administration 456,767 393,780 470,428 (76,648)
Development Services 704,786 735,493 586,424 149,069
Maintenance/Operations - Street 182,896 575,423 499,942 75,481
Maintenance/Operations - Lighting 532,084 546,534 356,641 189,893
Engineering Services 1,208,482 1,044,131 1,286,368 (242,237)
Capital outlay - 207,300 216,300 (9,000)
Debt service:
Principal retirement - - 13,560 (13,560)
Interest and fiscal charges - - 4,732 (4,732)
Transfers out 2,173,739 4,922,620 3,388,815 1,533,805
Total Charges to Appropriations 35,947,264 40,196,480 37,722,147 2,474,333
Budgetary Fund Balance, June 30 84,816,804$ 82,202,094$ 86,808,564$ 4,606,470$
See Notes to Required Supplementary Information 77 324
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
HOUSING AUTHORITY PA NO. 1
YEAR ENDED JUNE 30, 2015
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated 2,884,667$ 10,881,743$ 10,881,743$ -$
Resources (Inflows):
Use of money and property 245,500 245,500 379,348 133,848
Amounts Available for Appropriations 3,130,167 11,127,243 11,261,091 133,848
Charges to Appropriation (Outflow):
Planning and development
Administration 66,900 77,808 72,770 5,038
Low/Mod Housing 254,034 254,034 246,369 7,665
Total Charges to Appropriations 320,934 331,842 319,139 12,703
Budgetary Fund Balance, June 30 2,809,233$ 10,795,401$ 10,941,952$ 146,551$
See Notes to Required Supplementary Information 78 325
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
HOUSING AUTHORITY PA NO. 2
YEAR ENDED JUNE 30, 2015
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,146,138$ 1,203,240$ 1,203,240$ -$
Resources (Inflows):
Intergovernmental 423,600 423,600 421,797 (1,803)
Use of money and property 206,400 206,400 203,647 (2,753)
Miscellaneous 4,200 4,200 1,800 (2,400)
Amounts Available for Appropriations 1,780,338 1,837,440 1,830,484 (6,956)
Charges to Appropriation (Outflow):
Planning and development
Low/Mod Housing 354,726 354,726 343,847 10,879
Debt service:
Principal retirement 55,823 55,823 55,823 -
Interest and fiscal charges 183,933 183,933 137,022 46,911
Total Charges to Appropriations 594,482 594,482 536,692 57,790
Budgetary Fund Balance, June 30 1,185,856$ 1,242,958$ 1,293,792$ 50,834$
See Notes to Required Supplementary Information 79 326
CITY OF LA QUINTA
MISCELLANEOUS FIRST TIER PLAN
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2015
Proportion of the Net Pension Liability 0.10339%
Proportionate Share of the Net Pension Liability 6,433,125$
Covered-Employee Payroll 4,579,059$
Proportionate Share of the Net Pension Liability as
Percentage of Covered-Employee Payroll 140.49%
Plan Fiduciary Net Position 31,472,884$
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability 83.03%
Notes to Schedule:
Changes of Assumptions:
None.
Benefit Changes:
These figures above do not include any liability impact that may have resulted from plan changes which occurred after
June 30, 2013 as they have minimal cost impact.
(1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first
year of implementation, therefore only one year is shown.
80 327
CITY OF LA QUINTA
MISCELLANEOUS SECOND TIER PLAN
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2015
Proportion of the Net Pension Liability 0.00000%
Proportionate Share of the Net Pension Liability 96$
Covered-Employee Payroll 324,252$
Proportionate Share of the Net Pension Liability as
Percentage of Covered-Employee Payroll 0.03%
Plan Fiduciary Net Position 468$
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability 82.98%
Notes to Schedule:
Changes of Assumptions:
None.
Benefit Changes:
(1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first
year of implementation, therefore only one year is shown.
These figures above do not include any liability impact that may have resulted from plan changes which occurred after
June 30, 2013 as they have minimal cost impact.
81 328
CITY OF LA QUINTA
MISCELLANEOUS PEPRA PLAN
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2015
Proportion of the Net Pension Liability 0.00000%
Proportionate Share of the Net Pension Liability 170$
Covered-Employee Payroll 469,277$
Proportionate Share of the Net Pension Liability as
Percentage of Covered-Employee Payroll 0.04%
Plan Fiduciary Net Position 833$
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability 83.05%
Notes to Schedule:
Changes of Assumptions:
None.
Benefit Changes:
These figures above do not include any liability impact that may have resulted from plan changes which occurred after
June 30, 2013 as they have minimal cost impact.
(1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first
year of implementation, therefore only one year is shown.
82 329
CITY OF LA QUINTA
MISCELLANEOUS FIRST TIER PLAN
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2015
Actuarially Determined Contribution 728,073$
Contribution in Relation to the Actuarially Determined Contribution (728,073)
Contribution Deficiency (Excess)-$
Covered-Employee Payroll 4,579,059$
Contributions as a Percentage of Covered-Employee Payroll 15.90%
Note to Schedule:
Valuation Date:June 30, 2012
Methods and assumptions used to determine contribution rates:
Single and Agent Employers Example Entry age normal
Amortization method Level percentage of payroll, closed
Remaining amortization period 15 years
Assets valuation method 5-year smoothed market
Inflation 2.75%
Salary Increases Varies by Entry Age and Service
Investment rate of return
Retirement age 50 Years
Mortality
Derived using CalPERS
Membership Data for all Funds
(1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first
year of implementation, therefore only one year is shown.
7.5% net of pension plan investment expense,
including inflation
83 330
CITY OF LA QUINTA
MISCELLANEOUS PEPRA PLAN
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2015
Actuarially Determined Contribution 29,330$
Contribution in Relation to the Actuarially Determined Contribution (29,330)
Contribution Deficiency (Excess)-$
Covered-Employee Payroll 468,217$
Contributions as a Percentage of Covered-Employee Payroll 6.26%
Note to Schedule:
Valuation Date:June 30, 2012
Methods and assumptions used to determine contribution rates:
Single and Agent Employers Example Entry age normal
Amortization method Level percentage of payroll, closed
Remaining amortization period 15 years
Assets valuation method 5-year smoothed market
Inflation 2.75%
Salary Increases Varies by Entry Age and Service
Investment rate of return
Retirement age 52 years
Mortality
Derived using CalPERS
Membership Data for all Funds
(1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first
year of implementation, therefore only one year is shown.
7.5% net of pension plan investment expense,
including inflation
84 331
CITY OF LA QUINTA
MISCELLANEOUS PEPRA PLAN
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2015
Actuarially Determined Contribution 29,330$
Contribution in Relation to the Actuarially Determined Contribution (29,330)
Contribution Deficiency (Excess)-$
Covered-Employee Payroll 468,217$
Contributions as a Percentage of Covered-Employee Payroll 6.26%
Note to Schedule:
Valuation Date:June 30, 2012
Methods and assumptions used to determine contribution rates:
Single and Agent Employers Example Entry age normal
Amortization method Level percentage of payroll, closed
Remaining amortization period 15 years
Assets valuation method 5-year smoothed market
Inflation 2.75%
Salary Increases Varies by Entry Age and Service
Investment rate of return
Retirement age 52 years
Mortality
Derived using CalPERS
Membership Data for all Funds
(1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first
year of implementation, therefore only one year is shown.
7.5% net of pension plan investment expense,
including inflation
85 332
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86 333
CITY OF LA QUINTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2015
Budget Procedures
General Budget Policies
The City adopts an annual budget prepared on the modified accrual basis of accounting for
its governmental funds and on the accrual basis of accounting for its proprietary funds. The
City manager or his designee is authorized to transfer budgeted amounts between the
accounts of any department or funds that are approved by City Council. Prior year
appropriations lapse unless they are approved for carryover into the following fiscal year.
Expenditures may not legally exceed appropriations at the department level.
Encumbrances
Encumbrances are estimations of costs related to unperformed contracts for goods and
services. These commitments are recorded for budgetary control purposes in the General,
Special Revenue, and similar governmental funds. Encumbrances outstanding at year-end
are reported as an unassigned fund balance. They represent the estimated amount of the
expenditure ultimately to result if unperformed contracts in process at year end are
completed. They do not constitute expenditures or estimated liabilities.
Budget Basis of Accounting
Budgets for governmental funds are adopted on a basis consistent with generally accepted
accounting principles (GAAP). The Public Safety Fund, Transportation Uniform Mitigation Fee
Fund, Community Center, and Infrastructure Fund did not adopt a budget.
Excess Expenditures over budget
Budget Actual Variance
General Fund:
Public Safety
Police 13,666,143 14,080,981 414,838
Building & Safety Admin.610,803 668,164 57,361
Parks and recreation
Parks & recreation 191,011 200,788 9,777
Parks maintenance 1,440,934 1,523,085 82,151
Public Works
Administration 393,780 470,428 76,648
Engineering services 1,044,131 1,286,368 242,237
87 334
OTHER GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special revenue funds are used to account for specific revenues (other than expendable trusts and major
capital projects) and the related expenditures that are legally required to be accounted for in a separate
fund. The City of La Quinta has the following Special Revenue Funds:
State Gas Tax Fund – To account for gasoline allocations made by the State of California. These
revenues are restricted by the State to expenditures for street-related purposes only.
Library Fund – To account for revenues from property tax increment dedicated library services.
Federal Assistance Fund – To account for revenues from the Community Development Block Grants
received from the Federal Government and the expenditures of those resources.
State Law Enforcements Block Grant (SLEBG) Fund – To account for state funded “Citizens for Public
Safety” (COPS) program activities, as per Assembly Bill 3229, which supplements frontline police
services such as anti-gang community crime prevention.
Indian Gaming Fund – To account for contributions for public safety activities to reduce crime and
increase public safety.
Lighting and Landscape Special Assessment District 89-1 Fund – To account for special assessments
levied on real property and the expenditure thereof from City-wide lighting and landscape maintenance
and improvements.
Quimby Fund – To account for the accumulation of developer fees received under the provisions of the
Quimby Act for park development and improvements. Capital projects to be funded from this source will
be budgeted and expended in a separate capital projects fund.
La Quinta Public Safety Officer Fund – To account for contributions to be distributed to public safety
officers disabled or killed in the line of duty.
Arts in Public Places – To account for development fees paid in lieu of acquisition and installation of
approved artworks in a development with expenditures restricted to acquisition, installation, maintenance
and repair of artworks at approved sites.
South Coast Air Quality Fund – To account for contributions from the South Coast Air Quality
Management District. Use is limited to reduction and control of airborne pollutants.
AB 939 Fund – To account for the State mandated program to reduce waste sent to the landfills through
recycling efforts.
Development Agreement Fund – To account for the proceeds of development agreement revenues
collected and the related expenditures in accordance with State requirements.
Law Enforcement – To account for law enforcement grants.
88 335
Justice Assistance Grant – To account for Federal Bureau of Justice Block Grant program grant funds,
which are used to reduce crime and improve public safety.
Measure A - To account for the revenues and expenditures related to Measure A monies.
Transportation Uniform Mitigation Fee - To account for the revenues and expenditures related to
Transportation Uniform Mitigation Fee monies.
CAPITAL PROJECT FUNDS
Capital projects funds account for the financial resources to be used for the acquisition, construction or
improvements of major capital facilities and infrastructure.
Infrastructure Fund - To account for the accumulation of resources provided through developer fees for
the acquisition, construction or improvement of the City’s infrastructure, prior to adoption of the new
Developer Impact Fee Structure on August 16, 1999. This fund accounts for all developer resources
received prior to this date, and is budgeted by the Council through adoption of the annual capital
improvement program budget.
Transportation Fund, Parks and Recreations Fund, Library Development Fund, Community Center Fund,
Street Facility Fund, Park Facility Fund, Fire Facility Fund – To account for the accumulation of resources
provided through developer fees for the acquisition, construction, or improvement of the City’s
infrastructure. The Developer Impact Fee was adopted by the City Council on August 16, 1999. Eight new
funds have been established to account for the specific impact areas of these fees, and are budgeted by
the Council through adoption of the annual Capital Improvement Program budget.
DEBT SERVICE FUNDS
Debt Service Funds are used to account for the accumulation of resources for, and the payment of,
governmental long-term debt principal and interest.
La Quinta Financing Authority Fund – To account for rental activity for the Civic Center and rental income
used to pay the Financing Authority Civic Center and 2004 Local Agency Revenue Bond debt obligations.
89 336
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2015
Assets:
Pooled cash and investments 378,072$ 3,681,842$ -$93,048$
Receivables:
Accounts ----
Taxes ----
Accrued interest 1,067 4,501 -111
Due from other governments -541,994 --
Total Assets 379,139$ 4,228,337$ -$93,159$
Liabilities, and Fund Balances:
Liabilities:
Accounts payable -$-$-$-$
Accrued liabilities 6,046 ---
Unearned revenues ----
Deposits payable ----
Due to other governments ----
Due to other funds --12,914 -
Advances from other funds ----
Total Liabilities 6,046 -12,914 -
Fund Balances:
Restricted for:
Planning and development projects ----
Public safety ---93,159
Community services -4,228,337 --
Public works 373,093 ---
Capital Projects ----
Unassigned --(12,914) -
Total Fund Balances 373,093 4,228,337 (12,914) 93,159
Total Liabilities and Fund
Balances 379,139$ 4,228,337$ -$93,159$
Special Revenue Funds
Gas Tax Library
Federal
Assistance SLEBG
90 337
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2015
Assets:
Pooled cash and investments
Receivables:
Accounts
Taxes
Accrued interest
Due from other governments
Total Assets
Liabilities, and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Restricted for:
Planning and development projects
Public safety
Community services
Public works
Capital Projects
Unassigned
Total Fund Balances
Total Liabilities and Fund
Balances
(CONTINUED)
39,433$ -$ 5,653,872$ 33,509$
- - - -
- - - -
43 - 6,160 35
- 17,336 - -
39,476$ 17,336$ 5,660,032$ 33,544$
-$ -$ -$ -$
- 597 - -
1,431 - - -
- - - -
- - - -
- 30,774 - -
- - - -
1,431 31,371 - -
- - - -
- - - 33,544
- - 5,660,032 -
38,045 - - -
- - - -
- (14,035) - -
38,045 (14,035) 5,660,032 33,544
39,476$ 17,336$ 5,660,032$ 33,544$
Special Revenue Funds
Indian Gaming
Lighting and
Landscaping Quimby Public Safety
91 338
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2015
Assets:
Pooled cash and investments
Receivables:
Accounts
Taxes
Accrued interest
Due from other governments
Total Assets
Liabilities, and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Restricted for:
Planning and development projects
Public safety
Community services
Public works
Capital Projects
Unassigned
Total Fund Balances
Total Liabilities and Fund
Balances
682,057$ 139,738$ 754,372$ 133,813$
----
----
753 148 825 146
----
682,810$ 139,886$ 755,197$ 133,959$
-$14,117$ 8,211$ -$
----
----
---133,770
----
----
----
-14,117 8,211 133,770
-125,769 746,986 -
----
682,810 ---
----
---189
----
682,810 125,769 746,986 189
682,810$ 139,886$ 755,197$ 133,959$
Special Revenue Funds
Art in Public
Places
South Coast
Air Quality AB 939
Development
Agreement
92 339
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2015
Assets:
Pooled cash and investments
Receivables:
Accounts
Taxes
Accrued interest
Due from other governments
Total Assets
Liabilities, and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Restricted for:
Planning and development projects
Public safety
Community services
Public works
Capital Projects
Unassigned
Total Fund Balances
Total Liabilities and Fund
Balances
(CONTINUED)
156,341$ -$ 601,322$ 27,856$
1,807 - - -
- - 115,926 -
181 - 727 37
15,517 7,978 - -
173,846$ 7,978$ 717,975$ 27,893$
1,354$ -$ -$ 27,312$
- - - -
- - - -
- - - -
- - - -
- 5,330 - -
- - - -
1,354 5,330 - 27,312
- - - -
172,492 2,648 - -
- - - -
- - 717,975 581
- - - -
- - - -
172,492 2,648 717,975 581
173,846$ 7,978$ 717,975$ 27,893$
Special Revenue Funds
Law
Enforcement
Justice
Assistance
Grant Measure A
Transportation
Uniform
Mitigation Fee
93 340
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2015
Assets:
Pooled cash and investments
Receivables:
Accounts
Taxes
Accrued interest
Due from other governments
Total Assets
Liabilities, and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Restricted for:
Planning and development projects
Public safety
Community services
Public works
Capital Projects
Unassigned
Total Fund Balances
Total Liabilities and Fund
Balances
23,314$ 3,760,289$ 140,525$ -$
----
----
25 3,102 --
----
23,339$ 3,763,391$ 140,525$ -$
-$-$-$-$
----
----
----
---1,654,779
----
----
---1,654,779
----
----
--140,525 -
----
23,339 3,763,391 --
---(1,654,779)
23,339 3,763,391 140,525 (1,654,779)
23,339$ 3,763,391$ 140,525$ -$
Capital Projects Funds
Infrastructure Transportation
Parks and
Recreation
Library
Development
94 341
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2015
Assets:
Pooled cash and investments
Receivables:
Accounts
Taxes
Accrued interest
Due from other governments
Total Assets
Liabilities, and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Restricted for:
Planning and development projects
Public safety
Community services
Public works
Capital Projects
Unassigned
Total Fund Balances
Total Liabilities and Fund
Balances
(CONTINUED)
86,688$ -$ 2$ -$
- - - -
- - - -
92 - 1 -
- - - -
86,780$ -$ 3$ -$
-$ -$ -$ -$
- - - -
- - - -
- - - -
- - - -
- - - -
- 1,907,295 - 638,219
- 1,907,295 - 638,219
- - - -
- - - -
- - - -
- - 3 -
86,780 - - -
- (1,907,295) - (638,219)
86,780 (1,907,295) 3 (638,219)
86,780$ -$ 3$ -$
Street Facility Park Facility Fire Facility
Capital Projects Funds
Community
Center
95 342
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2015
Assets:
Pooled cash and investments
Receivables:
Accounts
Taxes
Accrued interest
Due from other governments
Total Assets
Liabilities, and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Restricted for:
Planning and development projects
Public safety
Community services
Public works
Capital Projects
Unassigned
Total Fund Balances
Total Liabilities and Fund
Balances
Debt Service
Funds
-$16,386,093$
-1,807
-115,926
-17,954
-582,825
-$17,104,605$
-$50,994$
-6,643
-1,431
-133,770
-1,654,779
-49,018
-2,545,514
-4,442,149
-872,755
-301,843
-10,711,704
-1,129,697
-3,873,699
-(4,227,242)
-12,662,456
-$17,104,605$
Financing
Authority
Total
Governmental
Funds
96 343
THIS PAGE INTENTIONALLY LEFT BLANK
97 344
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2015
Revenues:
Taxes -$ -$ -$ -$
Assessments - - - -
Intergovernmental 1,118,842 2,407,351 16,065 108,535
Use of money and property 5,252 21,966 - 562
Developer participation - - - -
Miscellaneous - - - -
Total Revenues 1,124,094 2,429,317 16,065 109,097
Expenditures:
Current:
General government - - - -
Public safety - - - -
Planning and development - - - -
Community services - 1,723,733 - -
Public works 1,122,909 - - -
Capital outlay - - - -
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
Total Expenditures 1,122,909 1,723,733 - -
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,185 705,584 16,065 109,097
Other Financing Sources (Uses):
Transfers in - 349,125 - -
Transfers out (688,310) (473,035) (16,065) (79,885)
Total Other Financing Sources
(Uses)(688,310) (123,910) (16,065) (79,885)
Net Change in Fund Balances (687,125) 581,674 - 29,212
Fund Balances, Beginning of Year 1,060,218 3,646,663 (12,914) 63,947
Fund Balances, End of Year 373,093$ 4,228,337$ (12,914)$ 93,159$
Gas Tax Library
Federal
Assistance SLEBG
Special Revenue Funds
98 345
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2015
Revenues:
Taxes
Assessments
Intergovernmental
Use of money and property
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Planning and development
Community services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
(CONTINUED)
-$ -$ -$ -$
- 940,221 - -
- - - -
19 - 32,745 182
- - 35,194 -
- - - -
19 940,221 67,939 182
- - - -
- - - -
- - - -
- - - -
- 960,597 - -
- - - -
- - - -
- - - -
- 960,597 - -
19 (20,376) 67,939 182
- - 195,252 2,000
- - (2,738,126) -
- - (2,542,874) 2,000
19 (20,376) (2,474,935) 2,182
38,026 6,341 8,134,967 31,362
38,045$ (14,035)$ 5,660,032$ 33,544$
Special Revenue Funds
Indian Gaming
Lighting and
Landscaping Public Safety Quimby
99 346
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2015
Revenues:
Taxes
Assessments
Intergovernmental
Use of money and property
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Planning and development
Community services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
-$ -$ -$ -$
- - - -
- 48,091 - -
3,922 739 4,279 62
111,435 - - -
- - - 84,849
115,357 48,830 4,279 84,911
- - - -
- - - -
- 28,855 31,827 -
11,325 - - -
- - - -
99,108 - - -
- - - -
- - - -
110,433 28,855 31,827 -
4,924 19,975 (27,548) 84,911
- - - -
- - - (84,849)
- - - (84,849)
4,924 19,975 (27,548) 62
677,886 105,794 774,534 127
682,810$ 125,769$ 746,986$ 189$
Special Revenue Funds
Art in Public
Places
South Coast
Air Quality AB 939
Development
Agreement
100 347
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2015
Revenues:
Taxes
Assessments
Intergovernmental
Use of money and property
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Planning and development
Community services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
(CONTINUED)
-$ -$ 718,583$ -$
- - - -
42,199 7,978 - -
952 - 3,568 331
- - - -
- - - -
43,151 7,978 722,151 331
- - - -
46,976 - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
46,976 - - -
(3,825) 7,978 722,151 331
- - 4,361 -
- (7,978) (474,865) -
- (7,978) (470,504) -
(3,825) - 251,647 331
176,317 2,648 466,328 250
172,492$ 2,648$ 717,975$ 581$
Justice
Assistance
Grant Measure A
Transportation
Uniform
Mitigation Fee
Law
Enforcement
Special Revenue Funds
101 348
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2015
Revenues:
Taxes
Assessments
Intergovernmental
Use of money and property
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Planning and development
Community services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
-$ -$ -$ -$
- - - -
- - - -
131 15,586 65 -
- 1,394,601 610,854 103,949
- - - -
131 1,410,187 610,919 103,949
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - 908 8,576
- - 908 8,576
131 1,410,187 610,011 95,373
- 2,621,437 - -
- (1,787,715) - -
- 833,722 - -
131 2,243,909 610,011 95,373
23,208 1,519,482 (469,486) (1,750,152)
23,339$ 3,763,391$ 140,525$ (1,654,779)$
Infrastructure Transportation
Parks and
Recreation
Library
Development
Capital Projects Funds
102 349
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2015
Revenues:
Taxes
Assessments
Intergovernmental
Use of money and property
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Planning and development
Community services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
(CONTINUED)
-$ -$ -$ -$
- - - -
- - - -
215 - 7 -
39,214 57,551 11,898 131,990
- - - -
39,429 57,551 11,905 131,990
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- 9,757 - 3,570
- 9,757 - 3,570
39,429 47,794 11,905 128,420
- 11,902 - -
- - (11,902) -
- 11,902 (11,902) -
39,429 59,696 3 128,420
47,351 (1,966,991) - (766,639)
86,780$ (1,907,295)$ 3$ (638,219)$
Park Facility
Community
Center Street Facility Fire Facility
Capital Projects Funds
103 350
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2015
Revenues:
Taxes
Assessments
Intergovernmental
Use of money and property
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Planning and development
Community services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Debt Service
Funds
-$ 718,583$
- 940,221
- 3,749,061
673,048 763,631
- 2,496,686
- 84,849
673,048 8,753,031
4,506 4,506
- 46,976
- 60,682
- 1,735,058
- 2,083,506
- 99,108
525,000 525,000
148,046 170,857
677,552 4,725,693
(4,504) 4,027,338
5,371 3,189,448
- (6,362,730)
5,371 (3,173,282)
867 854,056
(867) 11,808,400
-$ 12,662,456$
Financing
Authority
Total
Governmental
Funds
104 351
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
STATE GAS TAX
YEAR ENDED JUNE 30, 2015
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,060,218$ 1,060,218$ 1,060,218$ -$
Resources (Inflows):
Intergovernmental 1,116,863 1,116,863 1,118,842 1,979
Use of money and property 200 200 5,252 5,052
Amounts Available for Appropriations 2,177,281 2,177,281 2,184,312 7,031
Charges to Appropriation (Outflow):
Public works 1,116,862 1,116,862 1,122,909 (6,047)
Transfers out - 688,310 688,310 -
Total Charges to Appropriations 1,116,862 1,805,172 1,811,219 (6,047)
Budgetary Fund Balance, June 30 1,060,419$ 372,109$ 373,093$ 984$
105 352
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
LIBRARY
YEAR ENDED JUNE 30, 2015
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 3,646,663$ 3,646,663$ 3,646,663$ -$
Resources (Inflows):
Intergovernmental 2,000,000 2,000,000 2,407,351 407,351
Use of money and property 6,000 6,000 21,966 15,966
Transfers in - - 349,125 349,125
Amounts Available for Appropriations 5,652,663 5,652,663 6,425,105 772,442
Charges to Appropriation (Outflow):
Community services 1,765,242 1,765,242 1,723,733 41,509
Transfers out - 1,321,162 473,035 848,127
Total Charges to Appropriations 1,765,242 3,086,404 2,196,768 889,636
Budgetary Fund Balance, June 30 3,887,421$ 2,566,259$ 4,228,337$ 1,662,078$
106 353
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
FEDERAL ASSISTANCE
YEAR ENDED JUNE 30, 2015
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (12,914)$ (12,914)$ (12,914)$ -$
Resources (Inflows):
Intergovernmental 145,000 145,000 16,065 (128,935)
Amounts Available for Appropriations 132,086 132,086 3,151 (128,935)
Charges to Appropriation (Outflow):
Transfers out 30,000 30,000 16,065 13,935
Total Charges to Appropriations 30,000 30,000 16,065 13,935
Budgetary Fund Balance, June 30 102,086$ 102,086$ (12,914)$ (115,000)$
107 354
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
SLEBG
YEAR ENDED JUNE 30, 2015
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 63,947$ 63,947$ 63,947$ -$
Resources (Inflows):
Intergovernmental 100,000 153,796 108,535 (45,261)
Use of money and property 100 100 562 462
Amounts Available for Appropriations 164,047 217,843 173,044 (44,799)
Charges to Appropriation (Outflow):
Transfers out 100,000 153,796 79,885 73,911
Total Charges to Appropriations 100,000 153,796 79,885 73,911
Budgetary Fund Balance, June 30 64,047$ 64,047$ 93,159$ 29,112$
108 355
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
INDIAN GAMING
YEAR ENDED JUNE 30, 2015
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 38,026$ 38,026$ 38,026$ -$
Resources (Inflows):
Intergovernmental - 38,026 - (38,026)
Use of money and property - - 19 19
Amounts Available for Appropriations 38,026 76,052 38,045 (38,007)
Charges to Appropriations (Outflow):
Transfers out - 38,026 - 38,026
Total Charges to Appropriations - 38,026 - 38,026
Budgetary Fund Balance, June 30 38,026$ 38,026$ 38,045$ 19$
109 356
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
LIGHTING AND LANDSCAPING
YEAR ENDED JUNE 30, 2015
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 6,341$ 6,341$ 6,341$ -$
Resources (Inflows):
Assessments 960,000 960,000 940,221 (19,779)
Amounts Available for Appropriations 966,341 966,341 946,562 (19,779)
Charges to Appropriation (Outflow):
Public works 960,000 960,000 960,597 (597)
Total Charges to Appropriations 960,000 960,000 960,597 (597)
Budgetary Fund Balance, June 30 6,341$ 6,341$ (14,035)$ (20,376)$
110 357
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
QUIMBY
YEAR ENDED JUNE 30, 2015
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 8,134,967$ 8,134,967$ 8,134,967$ -$
Resources (Inflows):
Use of money and property 20,000 20,000 32,745 12,745
Developer participation 923,000 923,000 35,194 (887,806)
Transfers in - - 195,252 195,252
Amounts Available for Appropriations 9,077,967 9,077,967 8,398,158 (679,809)
Charges to Appropriation (Outflow):
Transfers out 294,887 7,860,360 2,738,126 5,122,234
Total Charges to Appropriations 294,887 7,860,360 2,738,126 5,122,234
Budgetary Fund Balance, June 30 8,783,080$ 1,217,607$ 5,660,032$ 4,442,425$
111 358
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
ART IN PUBLIC PLACES
YEAR ENDED JUNE 30, 2015
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 677,886$ 677,886$ 677,886$ -$
Resources (Inflows):
Use of money and property 3,500 3,500 3,922 422
Developer participation 50,000 50,000 111,435 61,435
Amounts Available for Appropriations 731,386 731,386 793,243 61,857
Charges to Appropriation (Outflow):
Community services 14,200 14,200 11,325 2,875
Capital outlay 150,000 150,000 99,108 50,892
Transfers out - 200,000 - 200,000
Total Charges to Appropriations 164,200 364,200 110,433 253,767
Budgetary Fund Balance, June 30 567,186$ 367,186$ 682,810$ 315,624$
112 359
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
SOUTH COAST AIR QUALITY
YEAR ENDED JUNE 30, 2015
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 105,794$ 105,794$ 105,794$ -$
Resources (Inflows):
Intergovernmental 40,200 40,200 48,091 7,891
Use of money and property 300 300 739 439
Amounts Available for Appropriations 146,294 146,294 154,624 8,330
Charges to Appropriation (Outflow):
Planning and development 40,200 40,200 28,855 11,345
Total Charges to Appropriations 40,200 40,200 28,855 11,345
Budgetary Fund Balance, June 30 106,094$ 106,094$ 125,769$ 19,675$
113 360
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
AB 939
YEAR ENDED JUNE 30, 2015
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 774,534$ 774,534$ 774,534$ -$
Resources (Inflows):
Use of money and property 3,000 3,000 4,279 1,279
Amounts Available for Appropriations 777,534 777,534 778,813 1,279
Charges to Appropriation (Outflow):
Planning and development 124,087 126,087 31,827 94,260
Total Charges to Appropriations 124,087 126,087 31,827 94,260
Budgetary Fund Balance, June 30 653,447$ 651,447$ 746,986$ 95,539$
114 361
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
DEVELOPMENT AGREEMENT
YEAR ENDED JUNE 30, 2015
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 127$ 127$ 127$ -$
Resources (Inflows):
Use of money and property - - 62 62
Miscellaneous - - 84,849 84,849
Amounts Available for Appropriations 127 127 85,038 84,911
Charges to Appropriation (Outflow):
Transfers out - 84,849 84,849 -
Total Charges to Appropriations - 84,849 84,849 -
Budgetary Fund Balance, June 30 127$ (84,722)$ 189$ 84,911$
115 362
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
LAW ENFORCEMENT
YEAR ENDED JUNE 30, 2015
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 176,317$ 176,317$ 176,317$ -$
Resources (Inflows):
Intergovernmental 41,078 41,078 42,199 1,121
Use of money and property 500 500 952 452
Amounts Available for Appropriations 217,895 217,895 219,468 1,573
Charges to Appropriation (Outflow):
Public safety 55,650 55,650 46,976 8,674
Total Charges to Appropriations 55,650 55,650 46,976 8,674
Budgetary Fund Balance, June 30 162,245$ 162,245$ 172,492$ 10,247$
116 363
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
JUSTICE ASSISTANCE GRANT
YEAR ENDED JUNE 30, 2015
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,648$ 2,648$ 2,648$ -$
Resources (Inflows):
Intergovernmental 12,978 16,518 7,978 (8,540)
Amounts Available for Appropriations 15,626 19,166 10,626 (8,540)
Charges to Appropriation (Outflow):
Transfers out 12,978 16,518 7,978 8,540
Total Charges to Appropriations 12,978 16,518 7,978 8,540
Budgetary Fund Balance, June 30 2,648$ 2,648$ 2,648$ -$
117 364
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
MEASURE A
YEAR ENDED JUNE 30, 2015
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 466,328$ 466,328$ 466,328$ -$
Resources (Inflows):
Taxes 754,500 754,500 718,583 (35,917)
Use of money and property - - 3,568 3,568
Transfers in - - 4,361 4,361
Amounts Available for Appropriations 1,220,828 1,220,828 1,192,840 (27,988)
Charges to Appropriation (Outflow):
Transfers out 774,627 1,199,025 474,865 724,160
Total Charges to Appropriations 774,627 1,199,025 474,865 724,160
Budgetary Fund Balance, June 30 446,201$ 21,803$ 717,975$ 696,172$
118 365
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
CAPITAL IMPROVEMENT
YEAR ENDED JUNE 30, 2015
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (90,923)$ (90,923)$ (90,923)$ -$
Resources (Inflows):
Intergovernmental 19,787,244 19,535,900 1,758,039 (17,777,861)
Use of money and property - - 270 270
Contributions - - 1,956,452 1,956,452
Developer participation 394,090 1,083,607 16,850 (1,066,757)
Transfers in 5,406,146 54,913,765 8,495,225 (46,418,540)
Amounts Available for Appropriations 25,496,557 75,442,349 12,135,913 (63,306,436)
Charges to Appropriation (Outflow):
Capital outlay 4,734,135 42,472,245 10,781,778 31,690,467
Transfers out - - 2,571,169 (2,571,169)
Total Charges to Appropriations 4,734,135 42,472,245 13,352,947 29,119,298
Budgetary Fund Balance, June 30 20,762,422$ 32,970,104$ (1,217,034)$ (34,187,138)$
119 366
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
TRANSPORTATION
YEAR ENDED JUNE 30, 2015
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,532,068$ 1,519,482$ 1,519,482$ -$
Resources (Inflows):
Use of money and property 7,700 7,700 15,586 7,886
Developer participation 674,000 674,000 1,394,601 720,601
Transfers in - - 2,621,437 2,621,437
Amounts Available for Appropriations 2,213,768 2,201,182 5,551,106 3,349,924
Charges to Appropriation (Outflow):
Debt service:
Interest and fiscal charges 35,195 35,195 - 35,195
Transfers out 91,160 615,158 1,787,715 (1,172,557)
Total Charges to Appropriations 126,355 650,353 1,787,715 (1,137,362)
Budgetary Fund Balance, June 30 2,087,413$ 1,550,829$ 3,763,391$ 2,212,562$
120 367
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
PARKS AND RECREATION
YEAR ENDED JUNE 30, 2015
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (1,086,122)$ (469,486)$ (469,486)$ -$
Resources (Inflows):
Use of money and property - - 65 65
Developer participation 560,000 560,000 610,854 50,854
Amounts Available for Appropriations (526,122) 90,514 141,433 50,919
Charges to Appropriation (Outflow):
Debt service:
Interest and fiscal charges 3,500 3,500 908 2,592
Total Charges to Appropriations 3,500 3,500 908 2,592
Budgetary Fund Balance, June 30 (529,622)$ 87,014$ 140,525$ 53,511$
121 368
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
CIVIC CENTER
YEAR ENDED JUNE 30, 2015
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (7,323,569)$ (7,312,490)$ (7,312,490)$ -$
Resources (Inflows):
Developer participation 183,600 183,600 290,145 106,545
Amounts Available for Appropriations (7,139,969) (7,128,890) (7,022,345) 106,545
Charges to Appropriation (Outflow):
General government 201,400 201,400 201,400 -
Debt service:
Interest and fiscal charges 91,000 91,000 35,723 55,277
Total Charges to Appropriations 292,400 292,400 237,123 55,277
Budgetary Fund Balance, June 30 (7,432,369)$ (7,421,290)$ (7,259,468)$ 161,822$
122 369
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
LIBRARY DEVELOPMENT
YEAR ENDED JUNE 30, 2015
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (1,838,208)$ (1,750,152)$ (1,750,152)$ -$
Resources (Inflows):
Developer participation 94,100 94,100 103,949 9,849
Amounts Available for Appropriations (1,744,108) (1,656,052) (1,646,203) 9,849
Charges to Appropriation (Outflow):
Debt service:
Interest and fiscal charges 7,200 7,200 8,576 (1,376)
Total Charges to Appropriations 7,200 7,200 8,576 (1,376)
Budgetary Fund Balance, June 30 (1,751,308)$ (1,663,252)$ (1,654,779)$ 8,473$
123 370
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
STREET FACILITY
YEAR ENDED JUNE 30, 2015
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (2,014,572)$ (1,966,991)$ (1,966,991)$ -$
Resources (Inflows):
Developer participation 17,800 17,800 57,551 39,751
Transfers in 10,000 10,000 11,902 1,902
Amounts Available for Appropriations (1,986,772) (1,939,191) (1,897,538) 41,653
Charges to Appropriation (Outflow):
Debt service:
Interest and fiscal charges 10,000 10,000 9,757 243
Total Charges to Appropriations 10,000 10,000 9,757 243
Budgetary Fund Balance, June 30 (1,996,772)$ (1,949,191)$ (1,907,295)$ 41,896$
124 371
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
PARK FACILITY
YEAR ENDED JUNE 30, 2015
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ -$
Resources (Inflows):
Use of money and property - - 7 7
Developer participation 11,000 11,000 11,898 898
Amounts Available for Appropriations 11,000 11,000 11,905 905
Charges to Appropriation (Outflow):
Transfers out 10,000 10,000 11,902 (1,902)
Total Charges to Appropriations 10,000 10,000 11,902 (1,902)
Budgetary Fund Balance, June 30 1,000$ 1,000$ 3$ (997)$
125 372
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
FINANCING AUTHORITY
YEAR ENDED JUNE 30, 2015
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,534$ (867)$ (867)$ -$
Resources (Inflows):
Charges for services 5,000 5,000 - (5,000)
Use of money and property 673,400 673,400 673,048 (352)
Transfers in - - 5,371 5,371
Amounts Available for Appropriations 679,934 677,533 677,552 19
Charges to Appropriation (Outflow):
General government 5,000 5,000 4,506 494
Debt service:
Principal retirement 495,000 495,000 525,000 (30,000)
Interest and fiscal charges 176,400 176,400 148,046 28,354
Total Charges to Appropriations 676,400 676,400 677,552 (1,152)
Budgetary Fund Balance, June 30 3,534$ 1,133$ -$ (1,133)$
126 373
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
FINANCING AUTHORITY
YEAR ENDED JUNE 30, 2015
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,534$ (867)$ (867)$ -$
Resources (Inflows):
Charges for services 5,000 5,000 - (5,000)
Use of money and property 673,400 673,400 673,048 (352)
Transfers in - - 5,371 5,371
Amounts Available for Appropriations 679,934 677,533 677,552 19
Charges to Appropriation (Outflow):
General government 5,000 5,000 4,506 494
Debt service:
Principal retirement 495,000 495,000 525,000 (30,000)
Interest and fiscal charges 176,400 176,400 148,046 28,354
Total Charges to Appropriations 676,400 676,400 677,552 (1,152)
Budgetary Fund Balance, June 30 3,534$ 1,133$ -$ (1,133)$
127 374
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128 375
INTERNAL SERVICE FUNDS
Internal service funds are used to account for activities involved in rendering services to departments
within the City. Costs of materials and services used are accumulated in this fund and charged to the
user departments as such goods are delivered or services rendered.
The City of La Quinta has the following Internal Service Funds:
Equipment Replacement Fund – used to account for the ultimate replacement of City owned and
operated vehicles and equipment
Information Technology Fund – used to account for the purchase and replacement of information
systems.
Park Equipment and Facilities Fund – used to account for the purchase and replacement of City owned
park facility infrastructure.
129 376
CITY OF LA QUINTA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2015
Totals
Assets:
Current:
Cash and investments 2,752,306$ 766,200$ 2,131,473$ 5,649,979$
Receivables:
Accrued interest 2,965 855 2,281 6,101
Total Current Assets 2,755,271 767,055 2,133,754 5,656,080
Noncurrent:
Capital assets - net of accumulated depreciation 529,259 531,730 14,558,677 15,619,666
Total Noncurrent Assets 529,259 531,730 14,558,677 15,619,666
Total Assets 3,284,530$ 1,298,785$ 16,692,431$ 21,275,746$
Liabilities and Net Position:
Liabilities:
Current:
Accounts payable 11,602$ 25,909$ -$ 37,511$
Current portion of capital leases - 21,099 - 21,099
Total Current Liabilities 11,602 47,008 - 58,610
Noncurrent:
Long-term portion of capital leases - 28,203 - 28,203
Total Noncurrent Liabilities - 28,203 - 28,203
Total Liabilities 11,602 75,211 - 86,813
Net Position:
Net investment in capital assets 529,259 482,428 14,558,677 15,570,364
Unrestricted 2,743,669 741,146 2,133,754 5,618,569
Total Net Position 3,272,928 1,223,574 16,692,431 21,188,933
Total Liabilities and Net Position 3,284,530$ 1,298,785$ 16,692,431$ 21,275,746$
Governmental Activities - Internal Service Funds
Equipment
Replacement
Information
Technology
Park
Equipment
and Facilities
130 377
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2015
Totals
Operating Revenues:
Sales and service charges 596,393$ 651,384$ 502,523$ 1,750,300$
Total Operating Revenues 596,393 651,384 502,523 1,750,300
Operating Expenses:
Administration and general - 138,322 - 138,322
Fuel and oil 75,032 - - 75,032
Maintenance and parts 136,597 - - 136,597
Contract services 4,587 196,277 - 200,864
Software and supplies - 226,967 - 226,967
Depreciation expense 110,421 136,640 526,123 773,184
Total Operating Expenses 326,637 698,206 526,123 1,550,966
Operating Income (Loss)269,756 (46,822) (23,600) 199,334
Nonoperating Revenues (Expenses):
Interest revenue 14,907 4,086 11,393 30,386
Interest expense - (2,839) - (2,839)
Gain on disposal of capital assets 6,048 - - 6,048
Total Nonoperating
Revenues (Expenses)20,955 1,247 11,393 33,595
Income (Loss) Before Transfers 290,711 (45,575) (12,207) 232,929
Transfers in 37,644 - - 37,644
Changes in Net Position 328,355 (45,575) (12,207) 270,573
Net Position:
Beginning of Year 2,944,573 1,269,149 16,704,638 20,918,360
End of Fiscal Year 3,272,928$ 1,223,574$ 16,692,431$ 21,188,933$
Governmental Activities - Internal Service Funds
Equipment
Replacement
Information
Technology
Park
Equipment and
Facilities
131 378
CITY OF LA QUINTA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2015
Totals
Cash Flows from Operating Activities:
Cash received from/(paid to) interfund service provided 596,393$ 651,384$ 502,523$1,750,300$
Cash paid to suppliers for goods and services (216,699) (522,453)(12,539) (751,691)
Cash paid to employees for services -(151,145)- (151,145)
Net Cash Provided (Used for) by Operating Activities 379,694 (22,214) 489,984 847,464
Cash Flows from Non-Capital
Financing Activities:
Cash transfers in 37,644 - - 37,644
Net Cash Provided by
Non-Capital Financing Activities 37,644 - - 37,644
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets (97,712) (64,510)- (162,222)
Interest paid on capital debt -(2,839)- (2,839)
Capital lease payment -(20,634)- (20,634)
Proceeds from sales of capital assets 6,048 2,397 - 8,445
Net Cash Used for
Capital and Related Financing Activities (91,664) (85,586) - (177,250)
Cash Flows from Investing Activities:
Interest received 14,725 4,270 10,934 29,929
Net Cash Provided by
Investing Activities 14,725 4,270 10,934 29,929
Net Increase (Decrease) in Cash
and Cash Equivalents 340,399 (103,530) 500,918 737,787
Cash and Cash Equivalents at Beginning of Year 2,411,907 869,730 1,630,555 4,912,192
Cash and Cash Equivalents at End of Year 2,752,306$ 766,200$ 2,131,473$ 5,649,979$
Reconciliation of Operating Income to Net Cash
Provided (Used for) by Operating Activities:
Operating income (loss)269,756$ (46,822)$(23,600)$ 199,334$
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation 110,421 136,640 526,123 773,184
Increase (decrease) in accounts payable (483) (94,506)(12,539) (107,528)
Increase (decrease) in accrued liabilities -(4,703)- (4,703)
Increase (decrease) in salaries and benefits payable -(12,823)- (12,823)
Total Adjustments 109,938 24,608 513,584 648,130
Net Cash Provided (Used) by
Operating Activities 379,694$ (22,214)$ 489,984$ 847,464$
Non-Cash Investing, Capital, and Financing Activities:
There were no non-cash transactions in the current year.
Governmental Activities - Internal Service Funds
Equipment
Replacement
Information
Technology
Park
Equipment
and Facilities
132 379
AGENCY FUNDS
Agency funds are used to account for assets held by the City as an agent for individual, private
organizations and other governmental units. The agency funds and their purposes are as follows:
The City of La Quinta has the following agency funds:
Assessment District No. 97-1 and 2001-1 – To account for assessments paid to the City for debt service
payments on bond issues used to finance sewer improvements.
133 380
CITY OF LA QUINTA
COMBINING STATEMENT OF NET POSITION
ALL AGENCY FUNDS
JUNE 30, 2015
Totals
Assets:
Pooled cash and investments 155,499$ 137,239$ 292,738$
Receivables:
Taxes 1,419 3,605 5,024
Accrued interest 160 - 160
Total Assets 157,078$ 140,844$ 297,922$
Liabilities:
Deposits payable 157,078$ 140,844$ 297,922$
Total Liabilities 157,078$ 140,844$ 297,922$
Assessment District
No. 97-1
Assessment District
No. 2001-1
134 381
CITY OF LA QUINTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30, 2015
Balance Balance
7/1/2014 Additions Deductions 6/30/2015
Assessment District No. 97-1
Assets:
Pooled cash and investments 145,461$ 58,702$ 48,664$ 155,499$
Receivables:
Taxes 1,216 1,419 1,216 1,419
Accrued interest 157 318 315 160
Total Assets 146,834$ 60,439$ 50,195$ 157,078$
Liabilities:
Deposits payable 146,834$ 62,802$ 52,558$ 157,078$
Total Liabilities 146,834$ 62,802$ 52,558$ 157,078$
Assessment District No. 2001-1
Assets:
Pooled cash and investments 119,464$ 17,934$ 159$ 137,239$
Receivables:
Taxes 17,326 3,605 17,326 3,605
Accrued interest 137 137 274 -
Total Assets 136,927$ 21,676$ 17,759$ 140,844$
Liabilities:
Deposits payable 136,927$ 21,265$ 17,348$ 140,844$
Total Liabilities 136,927$ 21,265$ 17,348$ 140,844$
Totals - All Agency Funds
Assets:
Pooled cash and investments 264,925$ 76,636$ 48,823$ 292,738$
Receivables:
Taxes 18,542 5,024 18,542 5,024
Accrued interest 294 455 589 160
Total Assets 283,761$ 82,115$ 67,954$ 297,922$
Liabilities:
Deposits payable 283,761$ 84,067$ 69,906$ 297,922$
Total Liabilities 283,761$ 84,067$ 69,906$ 297,922$
135 382
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136 383
STATISTICAL SECTION
This part of the City of La Quinta’s comprehensive annual financial report presents detailed information as
a context for understanding what the information in the financial statements, note disclosures, and
required supplementary information says about the government’s overall financial health.
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand
how the government’s financial performance and well-being have changed
over time. 128
Revenue Capacity
These schedules obtain information to help the reader assess the
government’s most significant local revenue source, property taxes. 141
Debt Capacity
These schedules present information to help the reader assess the ability of
the government’s current levels of outstanding debt and the government’s
ability to issue additional debt in the future. 146
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the
reader understand the environment within which the government’s financial
activities that take place. 153
Operating Information
These schedules contain service and infrastructure data to help the reader
understand how the information in the government’s financial report relates
to the services the government provides and the activities it performs. 156
137 384
2006 2007 2008 2009 2010
Governmental activities:
Net investment in capital assets 253,559,117$ 300,220,033$ 343,019,328$ 323,669,955$ 336,459,272$
Restricted 65,159,623 49,277,895 86,041,189 105,297,168 96,332,870
Unrestricted 86,129,376 106,939,577 79,642,102 96,654,981 77,187,433
Total governmental activities Net Position 404,848,116$ 456,437,505$ 508,702,619$ 525,622,104$ 509,979,575$
Business-type activities:
Net investment in capital assets 42,075,172$ 42,692,025$ 42,778,015$ 42,536,608$ 42,879,482$
Restricted - - -- -
Unrestricted (1,665,646) (2,385,462) (3,109,524) (3,937,454) (4,863,848)
Total business-type activities Net Position 40,409,526$ 40,306,563$ 39,668,491$ 38,599,154$ 38,015,634$
Primary government:
Net investment in capital assets 295,634,289$ 342,912,058$ 385,797,343$ 366,206,563$ 379,338,754$
Restricted 65,159,623 49,277,895 86,041,189 105,297,168 96,332,870
Unrestricted 84,463,730 104,554,115 76,532,578 92,717,527 72,323,585
Total primary government Net Position 445,257,642$ 496,744,068$ 548,371,110$ 564,221,258$ 547,995,209$
Source: City of La Quinta
CITY OF LA QUINTA
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
138 385
TABLE 1
2011 2012 2013 2014 2015
276,787,752$ 534,388,479$ 529,681,342$ 527,614,666$ 523,495,389$
107,042,126 26,585,382 49,598,397 53,669,248 62,472,221
97,009,428 89,832,811 83,399,745 83,907,046 74,362,189
480,839,306$ 650,806,672$ 662,679,484$ 665,190,960$ 660,329,799$
42,491,051$ 42,105,683$ 41,741,443$ 41,354,565$ 44,118,111$
- - ---
(4,918,951) (4,745,892) (4,750,604) (4,674,666) (4,892,647)
37,572,100$ 37,359,791$ 36,990,839$ 36,679,899$ 39,225,464$
319,278,803$ 576,494,162$ 571,422,785$ 568,969,231$ 567,613,500$
107,042,126 26,585,382 49,598,397 53,669,248 62,472,221
92,090,477 85,086,919 78,649,141 79,232,380 69,469,542
518,411,406$ 688,166,463$ 699,670,323$ 701,870,859$ 699,555,263$
139 386
2006 2007 2008 2009 2010
Expenses:
Governmental activities:
General government 4,229,871$ 6,284,342$ 6,953,073$ 7,836,146$ 34,287,068$
Public safety 9,065,244 12,724,100 13,472,036 19,736,941 21,274,519
Planning and development 5,906,915 7,736,520 35,323,858 7,317,689 5,173,326
Community services 1,426,033 4,299,453 5,797,116 14,808,850 15,923,380
Public works 10,006,335 10,511,874 11,097,526 11,100,833 12,326,726
Contribution to other agencies - - - - -
Interest on long-term debt 15,494,656 15,163,422 15,522,441 15,631,438 15,330,603
Total governmental activities expenses 46,129,054 56,719,711 88,166,050 76,431,897 104,315,622
Business-type activities:
Golf Course 4,523,146 4,520,173 4,761,581 4,440,546 4,169,768
Total business-type activities expenses 4,523,146 4,520,173 4,761,581 4,440,546 4,169,768
Total primary government expenses 50,652,200 61,239,884 92,927,631 80,872,443 108,485,390
Program revenues:
Governmental activities:
Charges for services:
General government 717,849 60,530 8,328 25,053 21,439
Public safety 4,168,206 2,659,515 2,050,492 1,373,952 1,100,491
Planning and development 1,873,676 169,643 134,211 138,391 69,391
Community services 428,947 387,065 374,092 275,178 250,557
Public works 3,021,379 2,244,156 1,900,437 1,308,702 1,124,647
Operating grants and contributions 3,603,173 3,796,495 5,905,664 10,725,280 15,363,650
Capital grants and contributions 33,918,901 17,601,131 50,090,419 10,647,270 5,974,311
Total governmental activities
program revenues 47,732,131 26,918,535 60,463,643 24,493,826 23,904,486
Business-type activities:
Charges for services:
Golf Course 3,120,728 3,540,748 3,814,233 3,368,135 3,584,996
Capital grants and contributions - -352,687 - -
Total business-type activities
program revenues 3,120,728 3,540,748 4,166,920 3,368,135 3,584,996
Total primary government
program revenues 50,852,859 30,459,283 64,630,563 27,861,961 27,489,482
Net revenues (expenses):
Governmental activities 1,603,077 (29,801,176) (27,702,407) (51,938,071) (80,411,136)
Business-type activities (1,402,418) (979,425) (594,661) (1,072,411) (584,772)
Total net revenues (expenses)200,659 (30,780,601) (28,297,068) (53,010,482) (80,995,908)
General revenues and other changes in Net Position:
Governmental activities:
Taxes:
Property taxes 3,679,079 4,999,051 6,014,305 6,653,583 6,278,470
Tax increment 35,168,329 42,583,031 42,114,893 36,702,197 35,390,317
Transient occupancy taxes 5,437,238 5,448,361 5,327,203 4,480,467 4,265,438
Sales tax 7,613,075 8,896,716 8,492,213 7,279,513 6,927,388
Franchise taxes 1,044,470 1,259,985 1,748,082 1,533,249 1,585,427
Business license taxes 276,917 307,032 317,011 285,304 302,223
Other taxes 1,049,701 872,753 641,705 455,089 461,957
Motor vehicle in lieu, unrestricted 2,740,233 3,291,055 3,803,647 3,940,801 3,714,437
Investment income 6,319,502 11,854,951 10,230,489 7,387,244 5,362,684
Gain (loss) on sale of capital assets 1,967,292 - 57,346 21,542 2,330
Miscellaneous 1,943,093 2,052,246 1,220,627 118,567 477,936
Extraordinary gain/loss on dissolution of RDA - - - - -
Transfers (1,137,203) 1 (874,645) - - -
Total governmental activities 66,101,726 80,690,536 79,967,521 68,857,556 64,768,607
Business-type activities:
Investment income 553 1,817 4,310 3,074 1,252
Gain (loss) on sale of capital assets - - (47,721) - -
Miscellaneous - - - - -
Transfers 1,137,203 1 874,645 - - -
Total business-type activities 1,137,756 876,462 (43,411) 3,074 1,252
Total primary government 67,239,482 81,566,998 79,924,110 68,860,630 64,769,859
Changes in Net Position
Governmental activities 67,704,803 50,889,360 52,265,114 16,919,485 (15,642,529)
Business-type activities (264,662) (102,963) (638,072) (1,069,337) (583,520)
Total primary government 67,440,141$ 50,786,397$ 51,627,042$ 15,850,148$ (16,226,049)$
1 The transfer was for land & golf course improvements transferred to the Enterprise Fund.
Source: City of La Quinta
Fiscal Year
CITY OF LA QUINTA
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
140 387
TABLE 2
2011 2012 2013 2014 2015
11,283,358$ 6,183,712$ 4,511,023$ 4,830,239$ 5,166,732$
21,070,458 20,815,454 21,047,691 21,169,423 21,636,149
18,715,283 6,378,352 2,274,541 3,098,015 2,212,013
4,735,964 5,093,402 4,986,104 4,130,085 5,992,362
10,757,279 13,288,521 11,803,133 12,610,994 18,116,732
31,324,064 - - - -
14,353,359 3,021,496 447,048 405,977 340,716
112,239,765 54,780,937 45,069,540 46,244,733 53,464,704
4,202,274 4,085,282 4,208,855 4,971,977 5,053,360
4,202,274 4,085,282 4,208,855 4,971,977 5,053,360
116,442,039 58,866,219 49,278,395 51,216,710 58,518,064
47,696 86,869 38,812 71,042 121,140
1,044,399 1,020,822 927,604 1,412,819 1,655,421
74,471 68,470 112,695 595,980 489,589
210,151 247,397 245,392 1,224,719 307,869
1,086,771 1,080,744 1,209,438 1,195,703 1,197,069
13,152,942 11,289,673 28,068,940 14,587,153 16,829,107
3,157,828 9,990,793 4,115,238 3,981,286 3,536,444
18,774,258 23,784,768 34,718,119 23,068,702 24,136,639
3,756,615 3,871,898 3,736,879 3,481,424 3,561,857
- - - -2,872,122
3,756,615 3,871,898 3,736,879 3,481,424 6,433,979
22,530,873 27,656,666 38,454,998 26,550,126 30,570,618
(93,465,507) (30,996,169) (10,351,421) (23,176,031) (29,328,065)
(445,659) (213,384) (471,976) (1,490,553) 1,380,619
(93,911,166) (31,209,553) (10,823,397) (24,666,584) (27,947,446)
5,942,353 21,370,476 7,043,604 9,193,753 8,776,491
32,569,795 - - - -
4,737,968 5,446,883 7,833,545 6,307,737 6,637,183
7,323,835 7,713,741 5,980,684 8,786,819 8,873,008
1,607,829 1,687,440 1,669,476 1,688,263 1,861,453
285,270 293,592 292,966 307,654 306,087
437,235 428,963 518,778 580,834 530,336
3,515,395 3,173,826 3,157,330 3,291,042 3,486,367
4,693,974 1,925,255 1,605,718 2,190,357 1,981,343
- - 28,551 - -
3,211,584 268,644 192,509 243,498 296,346
- 158,654,715 (2,189,984) (6,402,450) -
- - -(500,000) (247,739)
64,325,238 200,963,535 26,133,177 25,687,507 32,500,875
2,125 1,075 2,225 1,567 2,043
- - - - -
- - 100,799 678,046 915,164
- - - 500,000 247,739
2,125 1,075 103,024 1,179,613 1,164,946
64,327,363 200,964,610 26,236,201 26,867,120 33,665,821
(29,140,269) 169,967,366 15,781,756 2,511,476 3,172,810
(443,534) (212,309) (368,952) (310,940) 2,545,565
(29,583,803)$ 169,755,057$ 15,412,804$ 2,200,536$ 5,718,375$
141 388
Fiscal Year
2006 2007 2008 2009 2010
Expenses:
General government 4,229,871$ 6,284,342$ 6,953,073$ 7,836,146$ 34,287,068$
Public safety 9,065,244 12,724,100 13,472,036 19,736,941 21,274,519
Planning and development 5,906,915 7,736,520 35,323,858 7,317,689 5,173,326
Community services 1,426,033 4,299,453 5,797,116 14,808,850 15,923,380
Public works 10,006,335 10,511,874 11,097,526 11,100,833 12,326,726
Contribution to other agencies - - - --
Interest on long-term debt 15,494,656 15,163,422 15,522,441 15,631,438 15,330,603
Total governmental activities expenses 46,129,054 56,719,711 88,166,050 76,431,897 104,315,622
Program revenues:
Charges for services:
General government 717,849 60,530 8,328 25,053 21,439
Public safety 4,168,206 2,659,515 2,050,492 1,373,952 1,100,491
Planning and development 1,873,676 169,643 134,211 138,391 69,391
Community services 428,947 387,065 374,092 275,178 250,557
Public works 3,021,379 2,244,156 1,900,437 1,308,702 1,124,647
Operating grants and contributions 3,603,173 3,796,495 5,905,664 10,725,280 15,363,650
Capital grants and contributions 33,918,901 17,601,131 50,090,419 10,647,270 5,974,311
Total governmental activities
program revenues 47,732,131 26,918,535 60,463,643 24,493,826 23,904,486
Net program revenues (expenses)1,603,077 (29,801,176) (27,702,407) (51,938,071) (80,411,136)
General revenues and other changes in net position:
Taxes:
Property taxes 3,679,079 4,999,051 6,014,305 6,653,583 6,278,470
Tax increment 35,168,329 42,583,031 42,114,893 36,702,197 35,390,317
Transient occupancy taxes 5,437,238 5,448,361 5,327,203 4,480,467 4,265,438
Sales tax 7,613,075 8,896,716 8,492,213 7,279,513 6,927,388
Franchise tax 1,044,470 1,259,985 1,748,082 1,533,249 1,585,427
Business license taxes 276,917 307,032 317,011 285,304 302,223
Other tax 1,049,701 872,753 641,705 455,089 461,957
Motor vehicle in lieu, unrestricted 2,740,233 3,291,055 3,803,647 3,940,801 3,714,437
Investment income 6,319,502 11,854,951 10,230,489 7,387,244 5,362,684
Miscellaneous 1,943,093 2,052,246 1,220,627 118,567 477,936
Gain (loss) on sale of capital assets 1,967,292 - 57,346 21,542 2,330
Extraordinary gain/loss on dissolution of RDA - - - --
Transfers (1,137,203) (874,645) - --
Total governmental activities 66,101,726 80,690,536 79,967,521 68,857,556 64,768,607
Changes in net position -
governmental activities 67,704,803$ 50,889,360$ 52,265,114$ 16,919,485$ (15,642,529)$
Source: City of La Quinta
CITY OF LA QUINTA
Changes in Net Position - Governmental Activities
Last Ten Fiscal Years
(accrual basis of accounting)
142 389
Table 3
2011 2012 2013 2014 2015
11,283,358$ 6,183,712$ 4,511,023$ 4,830,239$ 5,166,732$
21,070,458 20,815,454 21,047,691 21,169,423 21,636,149
18,715,283 6,378,352 2,274,541 3,098,015 2,212,013
4,735,964 5,093,402 4,986,104 4,130,085 5,992,362
10,757,279 13,288,521 11,803,133 12,610,994 18,116,732
31,324,064 ----
14,353,359 3,021,496 447,048 405,977 340,716
112,239,765 54,780,937 45,069,540 46,244,733 53,464,704
47,696 86,869 38,812 71,042 121,140
1,044,399 1,020,822 927,604 1,412,819 1,655,421
74,471 68,470 112,695 595,980 489,589
210,151 247,397 245,392 1,224,719 307,869
1,086,771 1,080,744 1,209,438 1,195,703 1,197,069
13,152,942 11,289,673 28,068,940 14,587,153 16,829,107
3,157,828 9,990,793 4,115,238 3,981,286 3,536,444
18,774,258 23,784,768 34,718,119 23,068,702 24,136,639
(93,465,507) (30,996,169) (10,351,421) (23,176,031) (29,328,065)
5,942,353 21,370,476 7,043,604 9,193,753 8,776,491
32,569,795 ----
4,737,968 5,446,883 5,980,684 6,307,737 6,637,183
7,323,835 7,713,741 7,833,545 8,786,819 8,873,008
1,607,829 1,687,440 1,669,476 1,688,263 1,861,453
285,270 293,592 292,966 307,654 306,087
437,235 428,963 518,778 580,834 530,336
3,515,395 3,173,826 3,157,330 3,291,042 3,486,367
4,693,974 1,925,255 1,605,718 2,190,357 1,981,343
3,211,584 268,644 192,509 243,498 296,346
--28,551 --
- 158,654,715 (2,189,984) (6,402,450) -
---(500,000) (247,739)
64,325,238 200,963,535 26,133,177 25,687,507 32,500,875
(29,140,269)$ 169,967,366$ 15,781,756$ 2,511,476$ 3,172,810$
143 390
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144 391
TABLE 4
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Expenses:
Golf Course 4,523,146$ 4,520,173$ 4,761,581$ 4,440,546$ 4,169,768$ 4,202,274$ 4,085,282$ 4,208,855$ 4,971,977$ 5,053,360$
Total business-type activities expenses 4,523,146 4,520,173 4,761,581 4,440,546 4,169,768 4,202,274 4,085,282 4,208,855 4,971,977 5,053,360
Program revenues:
Charges for services:
Golf Course 3,120,728 3,540,748 3,814,233 3,368,135 3,584,996 3,756,615 3,871,898 3,736,879 3,561,857
Capital grants and contributions - - 352,687 - - - - - - 2,872,122
Total business-type activities
program revenues 3,120,728 3,540,748 4,166,920 3,368,135 3,584,996 3,756,615 3,871,898 3,736,879 - 6,433,979
Net revenues (expenses)(1,402,418) (979,425) (594,661) (1,072,411) (584,772) (445,659) (213,384) (471,976) (4,971,977) 1,380,619
General revenues and other changes in Net Position:
Investment income 553 1,817 4,310 3,074 1,252 2,125 1,075 2,225 1,567 2,043
Gain (loss) on sale of capital assets - - (47,721) - - - - - - -
Insurance Recoveries - - - - - - - 100,799 - 915,164
Miscellaneous - - - - - - - - 678,046 -
Transfers 164,190 874,645 - - - - - - 500,000 247,739
Capital contributions 973,013 979,425 - - - - - - - -
Total business-type activities 1,137,756 1,855,887 (43,411) 3,074 1,252 2,125 1,075 103,024 1,179,613 1,164,946
(264,662)$ 876,462$ (638,072)$ (1,069,337)$ (583,520)$ (443,534)$ (212,309)$ (368,952)$ (3,792,364)$ 2,545,565$
Source: City of La Quinta
(accrual basis of accounting)
Changes in Net Position - business-type activities
Fiscal Year
CITY OF LA QUINTA
Changes in Net Position - Business-type Activities
Last Ten Fiscal Years
145 392
2006 2007 2008 2009 2010
General fund:
Nonspendable:
Prepaid costs 503,642$ 11,774$ 10,601$ 12,424$ 9,030$
Land held for resale - - - - -
Advances to other funds 22,700,961 27,597,329 45,264,966 46,137,692 57,897,671
Deposits 5,903 - 4,825 9,830 9,830
Due from Other Governments - - - - -
Restricted for:
Debt service - - - - -
Committed:
Emergency reserve 16,905,386 18,722,524 19,651,824 18,201,948 17,774,648
Post retirement health benefits - - - - 1,258,059
Capital Projects 10,877,058 482,718 2,100,000 2,144,085 -
Working capital reserve - - - - -
Carryovers - - - - -
Educational purposes 750,000 500,000 250,000 - -
Economic development 4,967,072 2,327,430 1,911,131 - -
Assigned:
Continuing appropriations 1,319,787 2,257,200 2,835,297 3,485,747 1,555,176
Insurance - - - - -
Unassigned 18,239,315 32,741,545 20,423,375 22,335,655 13,525,704
Total general fund 76,269,124$ 84,640,520$ 92,452,019$ 92,327,381$ 92,030,118$
All other governmental funds:
Nonspendable:
Prepaid costs 7,987$ 7,977$ 5,353$ 19,197$ 7,740$
Notes and loans 2,112,597 2,081,645 2,076,063 2,067,028 2,088,709
Advances to other funds 5,365,097 4,823,543 4,402,213 4,321,119 4,293,166
Deposits - - - 4,540 6,400
Restricted:
Planning and development projects 26,172,191 15,297,481 21,906,749 25,807,752 31,032,124
Public safety 143,846 153,818 198,843 245,468 48,852
Community services 9,696,885 12,214,375 11,406,628 11,387,631 11,675,417
Public works 462,171 104,878 309,566 7,539,181 448,731
Capital Projects 92,112,917 66,225,066 69,626,275 50,556,856 53,123,856
Debt service 10,288,494 24,309,220 5,094,635 5,490,098 3,890
Assigned:
Continuing appropriations - - - 2,000 -
Unassigned (7,133,230) (7,854,868) (19,653,179) (19,339,823) (33,626,907)
Total all other governmental funds 139,228,955$ 117,363,135$ 95,373,146$ 88,101,047$ 69,101,978$
1
Source: City of La Quinta
Fiscal Year
In Fiscal Year 2009-2010, the City implemented GASB 54 which changed the reporting requirements for fund balances in the
financial statements. This table has been updated to reflect the impact of GASB 54 not only for Fiscal Year 2009-10 but for all prior
years.
CITY OF LA QUINTA
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
146 393
TABLE 5
2011 2012 2013 2014 2015
23,260$ 27,481$ 11,786$ 1,500$ 15,653$
8,320,000 8,320,000 8,320,000 8,320,000 8,320,000
15,373,104 15,417,929 15,509,691 15,163,183 14,943,098
9,967 118,516 4,830 4,830 33,985
- - 41,378,966 34,976,516 26,715,575
169,631 173,426 - - -
18,018,595 17,516,295 16,034,995 16,034,995 15,372,600
1,258,059 1,523,401 1,523,401 1,523,401 1,523,401
- - 2,848,737 1,507,429 1,727,390
- - - 2,836,820 3,843,150
- - - 356,438 476,400
- - - - -
- - - - -
1,768,494 1,041,172 1,013,533 - -
- - - 209,000 -
48,140,444 47,737,861 5,926,651 10,699,641 13,837,312
93,081,554$ 91,876,081$ 92,572,590$ 91,633,753$ 86,808,564$
10,563$ 12,875$ 10,310$ -$ -$
2,081,614 2,065,611 2,062,589 - -
4,569,188 - - - -
6,000 13,600 13,600 - -
-
34,018,930 10,767,199 3,730,533 5,970,006 13,108,499
96,364 245,187 258,968 274,274 301,843
10,248,314 11,162,057 11,626,441 12,459,516 10,711,704
396,355 145,823 262,754 1,571,163 1,129,697
58,111,106 4,089,156 1,392,581 1,590,168 3,873,699
4,001,426 2,534 2,234 - -
- - - - -
(13,250,398) (13,248,593) (13,179,196) (12,370,462) (12,703,744)
100,289,462$ 15,255,449$ 6,180,814$ 9,494,665$ 16,421,698$
147 394
2006 2007 2008 2009 2010
Revenues:
Taxes 89,704,947$ 100,103,324$ 105,870,933$ 99,816,072$ 93,831,918$
Assessments 818,526 877,191 909,229 927,816 966,639
Licenses and permits 5,145,430 2,788,882 2,107,035 871,167 472,409
Intergovernmental 18,585,468 14,803,971 15,382,135 18,679,355 19,473,076
Charges for services 3,367,989 1,821,794 1,334,060 673,779 484,043
Use of money and property 12,671,662 14,804,348 12,874,926 7,043,646 5,338,679
Contributions - - 37,643,190 240,591 395,823
Developer participation 12,473,440 5,310,440 6,537,991 2,243,785 273,739
Miscellaneous 637,054 412,353 629,471 720,185 608,342
Total revenues 143,404,516 140,922,303 183,288,970 131,216,396 121,844,668
Expenditures
Current:
General government 4,644,954 6,150,699 7,367,144 7,230,436 30,220,882
Public safety 13,029,187 15,685,493 17,181,775 18,946,866 20,116,936
Planning and development 5,847,563 28,994,177 15,374,160 7,261,835 6,028,492
Community services 1,248,308 4,027,302 5,336,757 4,698,985 4,204,626
Public works 6,987,014 6,755,507 6,563,494 6,324,055 6,862,887
Capital projects 25,445,550 36,420,417 82,883,317 32,363,859 14,514,910
Debt service:
Principal retirement 4,777,748 5,647,940 5,949,311 6,319,580 6,616,412
Interest and fiscal charges 15,554,612 15,059,977 15,424,708 15,348,598 15,357,968
Payment to bond escrow - - - --
Payments under pass-through obligations 35,958,291 36,498,575 42,989,023 42,426,670 38,710,894
Total expenditures 113,493,227 155,240,087 199,069,689 140,920,884 142,634,007
Excess (deficiency) of
revenues over (under)
expenditures 29,911,289 (14,317,784) (15,780,719) (9,704,488) (20,789,339)
Other financing sources (uses):
Issuance of tax allocation bonds - - - --
Issuance of revenue bonds - - - --
Transfers in 35,828,335 60,954,576 88,604,682 40,502,929 30,386,372
Transfers out (35,992,525) (60,954,576) (87,342,608) (40,527,930)(28,893,365)
Other debts issued - - - 2,332,752 -
Capital leases - - 182,094 --
Proceeds from sale of capital assets 8,209,396 124,097 158,061 - -
Total other financing
sources (uses)8,045,206 124,097 1,602,229 2,307,751 1,493,007
Extraordinary gain/loss on dissolution
of redevelopment agency - - - - -
Net change in fund balances 37,956,495$ (14,193,687)$ (14,178,490)$ (7,396,737)$ (19,296,332)$
Debt service as a percentage of
noncapital expenditures(a)65.5%61.0%47.1%59.0%47.6%
Source: City of La Quinta
(a) The capitalizable expenditures were derived from the Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds.
Last Ten Fiscal Years
(modified accrual basis of accounting)
CITY OF LA QUINTA
Changes in Fund Balances of Governmental Funds
Fiscal Year
The City of La Quinta has elected to show only eight 148 395
TABLE 6
2011 2012 2013 2014 2015
88,498,457$ 53,632,023$ 23,506,679$ 27,192,089$26,678,471$
956,048 950,292 954,058 951,181 940,221
547,071 482,831 566,510 953,540 1,356,978
19,005,643 15,875,582 15,464,942 16,506,666 15,702,943
501,418 635,111 625,813 1,238,277 1,341,438
4,670,732 1,914,518 1,582,762 2,175,048 1,950,957
327,751 303,773 18,377,253 838,972 1,956,452
945,805 903,144 1,226,825 3,059,254 2,803,681
319,763 276,327 491,267 575,001 580,843
115,772,688 74,973,601 62,796,109 53,490,028 53,311,984
10,885,519 4,881,922 4,587,888 4,068,827 5,050,425
19,826,372 19,669,517 20,168,038 21,189,086 21,664,472
8,460,420 4,314,646 27,514,768 1,748,477 2,097,525
4,147,758 4,086,686 4,411,536 4,011,432 4,798,123
4,808,060 6,192,733 5,067,370 4,617,050 5,283,309
21,287,775 13,335,989 8,622,783 7,974,747 11,097,186
7,011,261 7,066,726 556,871 558,019 594,383
15,037,919 6,701,079 437,678 411,010 348,334
--- --
35,607,089 16,755,441 - - -
127,072,173 83,004,739 71,366,932 44,578,648 50,933,757
(11,299,485) (8,031,138) (8,570,823) 8,911,380 2,378,227
6,000,000 -- --
28,850,000 -- --
61,657,034 12,554,752 29,841,053 4,201,763 12,037,331
(61,652,479)(12,580,120)(29,841,053) (4,335,679)(12,322,714)
--- --
--71,045 -9,000
8,683,850 875,275 121,652 - -
43,538,405 849,907 192,697 (133,916) (276,383)
- (79,058,255) - (6,402,450) -
32,238,920$ (86,239,486)$ (8,378,126)$ 2,375,014$2,101,844$
53.0%43.7%1.6%3.0%2.2%
Last Ten Fiscal Years
(modified accrual basis of accounting)
CITY OF LA QUINTA
Changes in Fund Balances of Governmental Funds
149 396
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150 397
TABLE 7
Fiscal Year Taxable
Ended Other Unsecured Less Tax- Exempt Assessed Direct
June 30 Residential Commercial Industrial (Note 2)Property Property Value Rate
2006 6,427,108,159$ 404,672,261$ 19,229,049$ 1,005,373,906$ 72,554,357$ (115,071,146)$ 7,813,866,586$ 0.9992
2007 8,047,222,562 622,347,465 19,605,470 1,296,976,028 88,740,840 (99,245,721) 9,975,646,644 0.9992
2008 9,514,081,076 789,425,538 20,028,196 1,531,134,827 101,433,002 (89,688,505) 11,866,414,134 0.9992
2009 10,034,763,263 827,032,029 20,432,889 1,528,398,712 113,185,065 (107,777,195) 12,416,034,763 1.0000
2010 9,483,530,068 823,821,531 20,845,624 1,414,468,679 121,272,880 (110,752,890) 11,753,185,892 1.0000
2011 8,870,471,785 771,419,124 20,792,716 1,250,399,544 118,972,704 (161,265,140) 10,870,790,733 1.0000
2012 8,612,579,049 725,788,432 20,944,939 1,041,585,372 107,421,771 (176,887,605) 10,331,431,958 1.0000
2013 8,510,574,371 735,622,855 19,644,835 1,079,529,412 108,971,608 (179,344,969) 10,274,998,112 1.0000
2014 8,959,562,854 743,340,208 20,374,889 1,072,744,515 111,330,270 (180,600,133) 10,726,752,603 1.0000
2015 9,610,570,068 755,151,833 20,433,231 1,068,419,123 108,773,942 (194,001,905) 11,369,346,292 1.0000
CITY OF LA QUINTA
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(in dollars)
Entire City (including Redevelopment Agency)
NOTES:
Note 1: In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1%
based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an
"inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re-assessed at the time that it is sold to
a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation
data shown above represents the only data currently available with respect to the actual market value of taxable property and is
subject to the limitations described above.
Note 2: Includes dry farm, government owned, institutional, irrigated, recreational, vacant, cross reference and unknown.
151 398
Last Ten Fiscal Years
City Redevelopment
Non-Project Area Project Area 1
2006 1 2007 1 2008 1 2009 1 2010 1 2011 1 2012 1 2013 1 2014 1 2015 1 2006 2 2007 2 2008 3 2009 3 2010 3 2011 3 2012 3
Direct Rates:
City of La Quinta 0.0760 0.0760 0.0760 0.0506 0.0506 0.0734 0.0760 0.0760 0.0760 0.0760 0.0000 0.0000 0.0000 0.0152 0.0036 0.0049 0.0524
Redevelopment agency Project Area 1 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.5830 0.5880 0.5150 0.5245 0.5432 0.5310 0.0000
Redevelopment agency Project Area 2 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
County of Riverside 0.1960 0.1960 0.1960 0.2586 0.2586 0.2318 0.1957 0.1958 0.1958 0.1958 0.2639 0.2619 0.2619 0.2325 0.2501 0.2471 0.2683
County Free Library 0.0250 0.0250 0.0250 0.0284 0.0284 0.0280 0.0252 0.0253 0.0253 0.0253 0.0276 0.0276 0.0276 0.0277 0.0276 0.0282 0.0294
County Structure Fire Protection 0.0540 0.0540 0.0540 0.0610 0.0610 0.0602 0.0544 0.0544 0.0544 0.0544 0.0595 0.0595 0.0595 0.0595 0.0595 0.0607 0.0633
Coachella Valley Unified School District 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.4322 0.4322 0.4322 0.4322 0.0170 0.0150 0.0020 0.0149 0.0167 0.0182 0.0000
Desert Sands Unified School 0.4320 0.4320 0.4320 0.3765 0.3765 0.3716 0.0000 0.0000 0.0000 0.0000 0.0160 0.0140 0.0140 0.0695 0.0568 0.0637 0.3905
Desert Community College District 0.0700 0.0700 0.0700 0.0782 0.0782 0.0772 0.0698 0.0698 0.0698 0.0698 0.0030 0.0030 0.0720 0.0177 0.0152 0.0166 0.0812
Riverside County Office of Education 0.0380 0.0380 0.0380 0.0426 0.0426 0.0420 0.0380 0.0380 0.0380 0.0380 0.0030 0.0030 0.0180 0.0093 0.0027 0.0038 0.0442
Riverside County Regional Park & Open Space 0.0040 0.0040 0.0040 0.0000 0.0000 0.0000 0.0040 0.0039 0.0039 0.0039 0.0000 0.0000 0.0030 0.0000 0.0000 0.0000 0.0000
CV Public Cemetery 0.0032 0.0032 0.0032 0.0035 0.0035 0.0035 0.0032 0.0031 0.0031 0.0031 0.0000 0.0000 0.0000 0.0008 0.0002 0.0003 0.0037
CV Mosquito 0.0127 0.0127 0.0127 0.0142 0.0142 0.0141 0.0127 0.0127 0.0127 0.0127 0.0120 0.0120 0.0120 0.0112 0.0111 0.0112 0.0148
Desert Recreation District 0.0192 0.0192 0.0192 0.0215 0.0215 0.0213 0.0192 0.0192 0.0192 0.0192 0.0010 0.0020 0.0010 0.0044 0.0014 0.0019 0.0223
Coachella Valley Water District 0.0250 0.0250 0.0250 0.0284 0.0284 0.0281 0.0254 0.0254 0.0254 0.0254 0.0130 0.0130 0.0010 0.0127 0.0120 0.0124 0.0295
CV Resource Conservation 0.0003 0.0003 0.0003 0.0004 0.0004 0.0004 0.0003 0.0003 0.0003 0.0003 0.0000 0.0000 0.0130 0.0001 0.0000 0.0000 0.0004
CVWD District 1 Debt Service 0.0118 0.0118 0.0118 0.0000 0.0000 0.0131 0.0118 0.0118 0.0118 0.0118 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
CVWD Storm Water Unit 0.0320 0.0320 0.0320 0.0360 0.0360 0.0355 0.0321 0.0321 0.0321 0.0321 0.0010 0.0010 0.0000 0.0000 0.0000 0.0000 0.0000
Total Direct Rate 0.9992 0.9992 0.9992 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
Tax Rate Area 020-005 020-005 020-005 020-005 020-005 020-005 020-005 020-005 020-005 020-005 020-015 020-015 020-089 020-089 020-089 020-089 020-089
Overlapping Rates 4:
Desert Sands Unified School 0.0767 0.0761 0.0799 0.0799 0.0811 0.1004 0.1147 0.1116 0.1095 0.1098 0.0767 0.0761 0.0756 0.0799 0.0811 0.1004 0.0757
Coachella Valley Water District 0.0442 0.0332 0.0462 0.0464 0.0660 0.0860 0.0800 0.0800 0.1000 0.1000 0.0199 0.0208 0.0484 0.0464 0.0660 0.0860 0.0862
Desert Community College District 0.0199 0.0199 0.0199 0.0199 0.0200 0.0200 0.0200 0.0200 0.0200 0.0233 0.0208 0.0199 0.0199 0.0199 0.0200 0.0200 0.0079
Total Overlapping Rate 0.1409 0.1293 0.1461 0.1462 0.1671 0.2063 0.2146 0.2115 0.2295 0.2331 0.1175 0.1169 0.1440 0.1462 0.1671 0.2063 0.1698
Total Direct and Overlapping Rate 1.1401 1.1285 1.1453 1.1462 1.1671 1.2063 1.2146 1.2115 1.2295 1.2331 1.1175 1.1169 1.1440 1.1463 1.1671 1.2063 1.1698
Source: County of Riverside Auditor Controller's Office
1
2
3
4 Overlapping rates are based upon a single tax rate area only.
Direct rate taken from an analysis of the TRA in the Project
area and do not include State ERAF deductions and
overlapping rates provided by California Municipal Statistics
Direct rate from Tax Rate Area (TRA) 020-059 provided by
Hdl Coren & Cone and overlapping debt rates from
California Municipal Statistics
Direct rate taken from an analysis by the City of La Quinta
Finance Department staff of all TRA's in the Project area
and do not include State ERAF deductions and overlapping
rates provided by California Municipal Statistics
CITY OF LA QUINTA
Direct and Overlapping Property Tax Rates
(Rate per $100 of assessed value)
NOTE:
In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount for direct
taxes. This 1% is shared by all taxing agencies for which the subject property resides within.
152 399
TABLE 8
Redevelopment
Project Area 2
2006 2 2007 2 2008 3 2009 3 2010 3 2011 3 2012 3
0.0000 0.0000 0.0000 0.0000 0.0000 0.0019 0.0499
0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
0.2860 0.2920 0.2910 0.3193 0.3174 0.3059 0.0000
0.2617 0.2617 0.2617 0.2516 0.2537 0.2511 0.2553
0.0280 0.0280 0.0280 0.0280 0.0280 0.0286 0.0280
0.0603 0.0603 0.0603 0.0603 0.0603 0.0616 0.0602
0.0000 0.0000 0.0020 0.0000 0.0000 0.0000 0.0000
0.2000 0.1980 0.1970 0.1860 0.1859 0.1930 0.3716
0.0420 0.0410 0.0410 0.0386 0.0386 0.0401 0.0772
0.0230 0.0220 0.0220 0.0210 0.0210 0.0218 0.0420
0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
0.0000 0.0000 0.0000 0.0000 0.0000 0.0001 0.0035
0.0150 0.0140 0.0140 0.0141 0.0141 0.0141 0.0140
0.0060 0.0060 0.0060 0.0053 0.0053 0.0059 0.0212
0.0770 0.0760 0.0760 0.0757 0.0757 0.0740 0.0281
0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0004
0.0000 0.0000 0.0000 0.0000 0.0000 0.0005 0.0131
0.0010 0.0010 0.0010 0.0000 0.0000 0.0014 0.0355
1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
020-144 020-144 020-144 020-144 020-144 020-144 020-144
0.0767 0.0761 0.0756 0.0799 0.0811 0.1004 0.0757
0.0442 0.0332 0.0484 0.0464 0.0660 0.0860 0.0862
0.0199 0.0199 0.0199 0.0199 0.0200 0.0200 0.0079
0.1409 0.1293 0.1440 0.1462 0.1671 0.2063 0.1698
1.1409 1.1293 1.1440 1.1462 1.1671 1.2063 1.1698
153 400
TABLE 9
Percent of Percent of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
KSL Desert Resorts Inc 151,380,164$ 1 1.33%211,692,968$ 1 2.71%
TD Desert Development 56,114,385 2 0.49%- 0.00%
LQR Golf LLC 45,242,598 3 0.40%- 0.00%
Inland American La Quinta Pavilion 44,468,471 4 0.39%- 0.00%
East of Madison LLC 43,656,182 5 0.38%- 0.00%
Coral Option I LLC 40,784,100 6 0.36%40,659,869 3 0.52%
Town and Country Partners LLC 30,170,000 7 0.27%- 0.00%
Walmart Real Estate Business Trust 25,650,232 8 0.23%25,435,449 9 0.33%
Iota Griffin LLC 27,209,103 9 0.24%- 0.00%
Aventine Development 24,427,256 10 0.21%- 0.00%
Toll California V - - 59,365,891 2 0.76%
Shea La Quinta - - 37,153,553 4 0.48%
Lennar Homes of California Inc - - 35,728,872 5 0.46%
ND La Quinta Partners - - 32,942,775 6 0.42%
Quarry at La Quinta Inc - - 27,470,605 7 0.35%
Ivanhoe La Quinta Cove - - 26,193,386 8 0.34%
TD Desert Dev LP - - 24,145,544 10 0.31%
489,102,491$ 4.30%520,788,912$ 6.68%
Source: HdL Coren & Cone
CITY OF LA QUINTA
2015 2006
Current Year and Ten Years Ago
Principal Property Taxpayers
(in dollars)
154 401
TABLE 10
Fiscal Taxes Levied Collections in
Year Ended for the Percent Subsequent Percent
June 30 Fiscal Year Amount of Levy Years Amount of Levy
2006 61,420,601$ 73,097,362$ 119.01% 2,092,062$ 75,189,424$ 122.42%
2007 74,170,170 83,797,365 112.98%1,802,076 85,599,441 115.41%
2008 83,018,429 87,804,912 105.77%3,216,547 91,021,459 109.64%
2009 83,934,188 86,721,572 103.32%1,471,940 88,193,512 105.07%
2010 78,621,410 80,651,874 102.58%434,643 81,086,517 103.14%
2011 72,735,079 74,047,640 101.80%259,209 74,306,849 102.16%
2012 69,307,476 37,885,360 54.66%181,381 38,066,741 54.92%
2013 5,706,535 5,823,575 102.05%180,723 6,004,298 105.22%
2014 5,845,390 5,808,387 99.37%202,342 6,010,729 102.83%
2015 5,968,705 6,100,655 102.21%840,512 6,941,167 116.29%
Source: County of Riverside Auditor Controller's Office
CITY OF LA QUINTA
Collected within the
Fiscal Year of Levy Total Collections to Date
Property Tax Levies and Collections
Last Ten Fiscal Years
(in dollars)
NOTES:
The amounts presented include City property taxes and Redevelopment Agency tax increment. This schedule also includes
amounts collected by the City and Redevelopment Agency that were passed-through to other agencies. Effective February 1,
2012, AB1x26 dissolved the Redevelopment Agencies throughout the State of California which resulted in the reduction of
amounts collected during Fiscal Year 2011-2012 and all subsequent years.
The total tax levy is based on the Statement of Original Charge and Tax Increment Summaries from the Riverside County Auditor-
Controller Office. This amount does not include the results of any successful appeals of a taxpayer assessed valuation. As such,
the percentage of the levy collected may be lower than expected.
The City participates in the Riverside County Teeter program, which allows for a 30% advance, one settlement payment for the first
installment,a 10% advance, a settlement payment for the second installment and one final settlement payment, which is generally
received during of the subsequent year.
Collections for 2015 are for amounts received as of August 31, 2015.
155 402
2006 2007 2008 2009 2010
Governmental Activities
Reimbursement Agreement 328,311$ 278,311$ 228,311$ 178,311$ 128,311$
Capital leases - - - 149,169 114,583
USDA Loan - - - 751,754 741,171
Provident Savings Loan - - - 1,556,283 1,530,958
Due to Coachella Valley Unified School District 5,186,627 4,431,178 3,675,731 2,874,653 2,072,965
Due to County of Riverside 1,850,000 1,750,000 1,600,000 1,400,000 1,200,000
Developer Agreement 776,030 643,539 511,048 343,814 174,584
Tax Allocation Bonds Project Area 1 141,785,000 139,145,000 136,350,000 133,390,000 130,255,000
Tax Allocation Bonds Project Area 2 6,130,000 6,025,000 5,915,000 5,800,000 5,680,000
2004 Local Agency Revenue Bonds 1 89,265,000 87,745,000 86,175,000 84,560,000 82,890,000
2011 Local Agency Revenue Bonds 1 - - - - -
City Hall Lease Revenue Bonds 6,245,000 5,900,000 5,540,000 5,160,000 4,760,000
Unamortized Discount and Issuance Costs (877,230) (877,230) (841,087) (804,944) (768,801)
Total Governmental 250,688,738 245,040,798 239,154,003 235,359,040 228,778,771
Business-type Activities
Capital Leases 1,090,602 825,848 681,048 285,217 54,543
Total Business-type activities 1,090,602 825,848 681,048 285,217 54,543
Total Primary Government 251,779,340$ 245,866,646$ 239,835,051$ 235,644,257$ 228,833,314$
Population - State Department of Finance January 1 38,340 41,092 42,958 43,778 44,421
Number of Households 18,762 20,176 21,058 21,355 23,489
Median Household Income 82,938$ 87,799$ 91,366$ 92,156$ 90,124$
Percentage of Personal Income 16.18%13.88%12.47%11.97%10.81%
Debt Per Capita 6,567$ 5,983$ 5,583$ 5,383$ 5,151$
'Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
1 The debt service payment for the 2004 Lease Revenue Bonds are made from Redevelopment Project Area 1 & 2 low & moderate
income tax increment.
Fiscal Year Ended
(in dollars)
CITY OF LA QUINTA
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
156 403
TABLE 11
2011 2012 2013 2014 2015
-$ -$ -$ -$ -$
78,253 40,090 71,045 129,063 103,869
729,480 - 702,105 686,345 668,933
1,503,433 - 1,441,096 1,405,755 1,367,344
1,255,243 - - - -
1,000,000 - - - -
- - - - -
126,925,000 - - - -
11,555,000 - - - -
81,150,000 - - - -
28,850,000 - - - -
4,340,000 3,895,000 3,425,000 2,930,000 2,405,000
(1,115,799) - - - -
256,270,610 3,935,090 5,639,246 5,151,163 4,545,146
286,097 169,084 43,736 - -
286,097 169,084 43,736 - -
256,556,707$ 4,104,174$ 5,682,982$ 5,151,163$ 4,545,146$
37,836 38,075 38,401 39,032 39,694
23,489 23,528 23,612 23,871 24,150
104,410$ 104,045$ 111,077$ 109,365$ 97,526$
10.46%0.17%0.22%0.20%0.19%
6,781$ 108$ 148$ 132$ 115$
157 404
TABLE 12
Fiscal Year City Hall Local Agency Tax Percent of Per
Ended Lease Revenue Allocation Assessed Median
June 30 Obligation Bonds 1 Bonds Total Value 1 Household Income
2006 6,245,000 89,265,000 147,915,000 243,425,000 3.12%2,935
2007 5,900,000 87,745,000 145,170,000 238,815,000 2.39%2,720
2008 5,540,000 86,175,000 142,265,000 233,980,000 1.97%2,561
2009 5,160,000 84,560,000 139,190,000 228,910,000 1.84%2,484
2010 4,760,000 82,890,000 135,935,000 223,585,000 1.90%2,481
2011 4,340,000 110,000,000 138,480,000 252,820,000 2.33%2,421
2012 3,895,000 - - 3,895,000 0.04%37
2013 3,425,000 - - 3,425,000 0.03%31
2014 2,930,000 - - 2,930,000 0.03%27
2015 2,405,000 - - 2,405,000 0.02%20
General bonded debt is debt payable with governmental fund resources and general
obligation bonds recorded in enterprise funds (of which, the City has none).
1 Assessed value has been used because the actual value of taxable property is not
readily available in the State of California.
Source: City of La Quinta
Outstanding General Bonded Debt
CITY OF LA QUINTA
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
(In Dollars)
158 405
TABLE 13
City Assessed Valuation
Total Assessed Valuation 11,369,346,292$
Source: Riverside County Auditor Controller
Estimated
Share of
Percentage Outstanding Overlapping
Applicable 1 Debt 6/30/15 Debt
Overlapping Debt Repaid with Property Taxes And Assessments:
Desert Community College District 16.791%308,619,492$ 51,820,299$
Coachella Valley Unified School District 53.135% 178,113,759 94,640,746
Desert Sands Unified School District (DSUSD) 20.229% 267,444,474 54,101,343
DSUSD Community Facilities District No. 1 88.912% 1,295,000 1,151,410
City of La Quinta 1915 Act Bonds 100.000% 170,000 170,000
Coachella Valley Water District Assessment District No. 68 86.122% 1,620,000 1,395,176
Total overlapping debt repaid with property taxes 757,262,725 203,278,974
Overlapping Other Debt including Certifications of Participation (COP):
Riverside County General Fund Obligations 5.062%961,952,082$ 48,694,014$
Riverside County Pension Obligations 5.062% 320,470,000 16,222,191
Riverside County Board of Education COP 5.062% 1,835,000 92,888
Coachella Valley Unified School District COP 53.135% 42,435,000 22,547,837
Coachella Valley Unified School District COP 20.229% 61,360,000 12,412,514
Coachella Valley Recreation and Park District COP 26.552% 1,652,264 438,709
Total overlapping other debt 1,389,704,346 100,408,153
Total overlapping debt 2,146,967,071 303,687,127
City direct debt 4,545,146
Total direct and overlapping debt 1 308,232,273$
Notes:
1 For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed
property values. Applicable percentages were estimated by determining the portion of another governmental unit's
taxable assessed value that is within the city's boundaries and dividing it by each unit's total taxable assessed value.
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents
and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay
long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However,
this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt of each
overlapping government.
Source: California Municipal Statistics, Inc.- overlapping debt
Source: City of La Quinta - City Direct debt
Direct and Overlapping Debt
June 30, 2015
CITY OF LA QUINTA
159 406
2006 2007 2008 2009 2010
Assessed valuation 7,813,866,586$ 9,975,646,644$ 11,866,414,134$ 12,416,034,763$ 11,753,185,892$
Debt limit percentage 15%15%15%15%15%
Debt limit 1,172,079,988 1,496,346,997 1,779,962,120 1,862,405,214 1,762,977,884
Total net debt applicable to limit:
General obligation bonds - - - - -
Legal debt margin 1,172,079,988$ 1,496,346,997$ 1,779,962,120$ 1,862,405,214$ 1,762,977,884$
Total debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% 0.0%
The City of La Quinta has no general bonded indebtedness.
Fiscal Year
CITY OF LA QUINTA
Legal Debt Margin Information
Source: City of La Quinta Finance Department based
upon the Assessed valuation received from the County of
Riverside Auditor Controllers Office
Section 43605 of the Government Code of the State of
California limits the amount of indebtedness for public
improvements to 15% of the assessed valuation of all real
and personal property of the City.
Last Ten Fiscal Years
160 407
TABLE 14
2011 2012 2013 2014 2015
10,870,790,733$ 10,331,431,958$ 10,274,998,112$ 10,726,752,603$ 11,369,346,292$
15%15%15%15%15%
1,630,618,610 1,549,714,794 1,541,249,717 1,609,012,890 1,705,401,944
- - - - -
1,630,618,610$ 1,549,714,794$ 1,541,249,717$ 1,609,012,890$ 1,705,401,944$
0.0% 0.0% 0.0% 0.0% 0.0%
161 408
TABLE 15
Local Agency Revenue Bonds (City Hall Project)
Fiscal Year
Ended Lease Less: Other Net Lease
June 30 Revenue 1 Debt Payments Revenue Principal Interest Coverage
2006 680,575$ -$ 680,575$ 330,000$ 350,575$ 1.00
2007 678,865 - 678,865 345,000 333,865 1.00
2008 675,880 - 675,880 360,000 315,880 1.00
2009 676,450 - 676,450 380,000 296,450 1.00
2010 675,280 - 675,280 400,000 275,280 1.00
2011 672,525 - 672,525 420,000 252,525 1.00
2012 673,521 - 673,521 445,000 228,521 1.00
2013 673,130 - 673,130 470,000 203,130 1.00
2014 671,351 - 671,351 495,000 176,351 1.00
2015 673,046 - 673,046 525,000 148,046 1.00
Note: Details regarding the city's outstanding debt can be found in the notes to the financial
statements.
(In Dollars)
Debt Service
1 Lease revenues consist of payments from the City General Fund and Civic Center Development Impact Fee Fund.
CITY OF LA QUINTA
Pledged-Revenue Coverage
Last Ten Fiscal Years
162 409
TABLE 16
CITY OF LA QUINTA
Demographic and Economic Statistics
Last Ten Calendar Years
Calendar Calendar Calendar Calendar Calendar Calendar Calendar Calendar Calendar Calendar
Year Year Year Year Year Year Year Year Year Year
Sources: 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
City Land (Sq Miles)(3) 35.10 35.10 35.31 35.31 35.31 35.31 35.16 35.16 35.16 35.71
Population (1) 38,340 41,092 42,958 43,778 44,421 37,836 (5)38,075 38,401 39,032 39,694
Median Household Income (in dollars) (7) $82,938 $87,799 $91,366 $92,156 $90,124 $104,410 $104,045 $111,077 $109,365 $97,526
Number of Dwelling Units (3) 18,762 20,176 21,058 21,355 23,489 23,528 23,528 23,612 23,871 24,150
Persons per Household (1) 2.86 2.85 2.85 2.85 2.87 2.55 2.56 2.58 2.59 2.60
Average Income per person per household (4) $29,050 $30,850 $32,047 $32,324 $31,457 $40,961 $40,722 $43,053 $42,226 $37,510
Labor Force (2) 14,500 15,300 15,200 14,800 14,600 14,400 15,100 15,300 15,600 17,300
Employment (2) 14,100 14,900 14,600 13,700 13,500 13,300 14,100 14,400 14,900 16,600
Unemployment Rate (2) 2.76% 2.61% 3.95% 7.43% 7.53% 7.64% 6.62% 5.60% 4.30% 4.50%
Median age (4) 36 36.4 36.4 36.4 42.2 41.5 42.8 43.6 44.8 45.1
Sources: (1) State of California Department of Finance - January 1 of each year
(2) State of California Employment Development Department website
(3) City of La Quinta Building & Safety and Community Development Departments
(4) HdLCoren & Cone Companies
(5) The population number was updated based upon the 2010 United States Census
(6) The information was not collected before 2006
(7) Calculated using "Persons per Household" multiplied by "Average Income per Person per Household."
163 410
TABLE 17
Percent of
Number of Total Number of
Employer Activity Rank Employees Employment Employees Rank
La Quinta Resort & Club Hotel & Golf Resort 1 1,233 7.43%1,600 1
PGA West Golf Resort 2 1,214 7.31%500 5
Desert Sands Unified School District Government 3 1,400 8.43%1,534 2
Wal-Mart Super Center Retailer 4 360 2.17%800 3
Costco Retailer 5 246 1.48%- -
Home Depot Retailer 6 181 1.09%240 6
Lowe's Home Improvement Retailer 7 152 0.92%150 8
Imperial Irrigation District Utility Company 8 142 0.86%200 7
Rancho La Quinta Golf Resort 8 128 0.77%700 4
Stater Brothers Grocery Store 10 120 0.72%150 8
Vons Grocery Store 11 100 0.60%- -
Traditions Golf Club Golf Resort 100 9
Ralph's ¹Grocery Store - 0.00% 88 10
Total employment listed 5,276 31.78%
Total City Employment - July 1 16,600
¹ - Store closed prior to June 30, 2015.
Source: City of La Quinta
CITY OF LA QUINTA
Principal Employers
Current Year and Ten Years Ago
2014-2015 2005-2006
164 411
TABLE 18
CITY OF LA QUINTA
Full-time City Employees
by Function
Last Ten Fiscal Years
Function 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Administration 9.00 10.00 12.00 12.00 13.00 14.00 12.00 11.00 7.00 7.00
City Clerk 5.00 5.00 6.00 6.00 6.00 6.00 5.00 5.00 4.00 4.00
Finance 9.00 9.00 9.00 9.00 9.00 9.00 8.00 8.00 7.00 7.00
Community Services 10.25 10.25 11.25 11.25 10.35 10.25 10.35 10.35 9.00 9.32
Building and Safety 22.00 24.00 25.00 25.00 25.00 24.00 21.00 21.00 **
Planning and Development 12.00 12.00 12.00 12.00 10.00 9.00 8.00 9.00 **
Community Development - - - - - - - - 16.65 16.35
Public Works 26.25 26.25 28.25 29.25 27.25 26.25 24.25 23.25 21.00 20.00
Golf Course 0.50 0.50 0.50 0.50 0.40 0.50 0.40 0.40 0.35 0.33
Total 94.00 97.00 104.00 105.00 101.00 99.00 89.00 88.00 65.00 64.00
Source: City of La Quinta
* - The City merged the Building and Safety Department with the Planning and Development Department in 2014.
Fiscal Year Ended June 30,
NOTE: The City of La Quinta contracts with the County of Riverside for Police Services
and with the California Department of Forestry through a contract with the County of
Riverside for Fire Services. In addition the City-owned Golf Course is operated by
Landmark Golf. These positions have not been included as these positions are not City
employees.
165 412
TABLE 19
CITY OF LA QUINTA
Operating Indicators
by Function
Last Ten Fiscal Years
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Finance:
Number of Animal Licenses Processed 2 892 1,022 1,272 1,609 1,768 1,619 1,674 1,505 1,602 1,374
Number of Accounts Payable Checks Processe 4,696 4,722 4,840 4,819 4,393 4,530 3,766 3,576 3,696 3,833
Number of investment purchases 39 73 64 36 32 20 27 30 22 21
Par value of investments 327,417,000$ 392,729,000$ 424,500,000$ 229,969,000$ 267,213,000$ 189,810,285$ 188,782,874$ 164,614,769$ 136,323,300$ 128,990,447$
Number of cleared checks 5,081 4,837 5,501 5,269 4,984 4,912 5,103 3,899 3,922 4,004
Number of outgoing bank wires 202 158 136 91 75 87 63 58 58 54
Public Works:
Encroachment permits issued 304 218 110 132 78 104 65 124 109 127
Request for services 618 419 1152 1931 1306 746 534 740 1,322 1,261
Community Development:
Number of Active Business Licenses 3 3,208 3,424 3,690 3,523 3,428 3,183 3,310 3,520 3,998 4,452
Permits:
Single family Detached 1,044 526 297 129 56 85 39 83 147 176
Single family Attached 227 38 - 6 12 - 11 - - 4
Residential Pool 866 612 331 207 152 148 127 162 204 255
Wall/Fence 1,502 963 583 299 178 218 149 167 220 328
Other 1,607 1,404 1,121 908 790 1,033 916 1,042 1,158 1,316
Total Permits 5,246 3,543 2,332 1,549 1,188 1,484 1,242 1,454 1,729 2,079
Code Compliance:
Animal Control Incidents Handled 1,901 687 2,920 3,630 3,984 4,392 4,246 3,206 1,645 1,085
Vehicle abatements 909 296 351 346 214 263 139 99 88 85
Garage Sale Permits 1,190 1,444 1,519 1,535 1,663 1,805 1,430 1,404 1,255 1,290
Weed abatements 141 76 117 97 125 143 106 1,404 43 45
Nuisance abatements 1,611 2,032 2,142 3,130 2,340 2,252 2,433 1,668 730 557
Community Services:
Library activities:
Library Volume 42,050 44,981 66,124 81,124 89,060 92,484 109,000 63,955 71,874 73,924
Library books checked out 55,002 99,659 117,738 215,843 259,711 263,064 275,838 220,690 329,154 263,047
Library Cards Issued 5,550 5,325 3,675 3,684 3,547 3,822 4,477 2,966 2,035 2,418
Number of School Children Visiting Library 745 260 841 1,036 772 1,881 962 737 1,539 1,562
Library Volunteer Hours 1,891 1,583 1,951 2,342 2,723 4,280 2,720 2,226 1,340 1,917
Senior Center/Wellness Center 1:
Number of visits 14,305 12,955 14,013 15,739 20,326 18,403 16,642 9,350 11,500 23,871
Senior Center/Wellness Center Volunteer H 3,481 4,192 3,332 2,583 3,131 3,099 2,690 2,233 2,745 1,279
Recreation activities:
Participants:
Leisure Classes 1,373 1,192 990 1,140 1,437 1,512 2,016 1,475 1,177 1,322
Special events 4,668 7,809 8,109 11,053 8,795 8,933 36,305 5,970 5,927 6,460
Adult Sports 3,402 6,827 8,550 10,806 13,364 13,092 5,647 3,865 5,878 5,487
Golf course:
Golf rounds played 38,934 40,548 40,516 39,150 43,779 45,269 46,949 46,352 43,610 38,383
Average $ Green fee 71.12$ 76.97$ 81.09$ 76.13$ 71.59$ 70.70$ 70.40$ 67.44$ 66.83$ 45.94$
Planning and Development:
Number of residential units approved 1,063 534 338 100 255 208 285 228 494 208
Commercial square footage approved 533,726 124,821 342,502 390,097 6,200 27,526 61,662 - 113,149 79,092
1 The Senior Center was converted the Wellness Center in 2015. The Wellness Center is available to all residents of La Quinta for a nominal fee.
2 The issuing of animals licenses was transferred to the County of Riverside on May 7, 2015.
3 Business license processing was transferred to the Community Development Department from the Finance Department in 2015.
Source: City of La Quinta
166 413
TABLE 20
CITY OF LA QUINTA
Capital Asset Statistics
by Function
Last Ten Fiscal Years
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Public works:
Streets (miles)118.40 122 127 127 127 127 128 128 128 128
Bikepaths (miles) 2 22 22 22 22 22 22 22 22 22 34
Streetlights 1 73 85 85 261 265 265 269 269 277 277
Traffic signals 44 45.25 45.25 49 50 50 51 52 54 54
Traffic signs 2,799 2,845 2,895 2,899 2,909 2,919 2,934 2,984 3,018 3,018
Bridges 12 12 12 12 12 12 12 12 13 13
Parks and recreation:
Parks 12 12 13 13 13 13 13 13 13 13
Park Acreage 207 207 209 209 218 218 218 218 218 218
Undeveloped Park Acreage 40 40 40 40 40 40 40 40 40 40
Senior Center 1 1 1 1 1 1 1 1 1 1
Museum 1 1 1 1 1 1 1 1 1 1
Library 1 1 1 1 1 1 1 1 1 1
Golf Course:
Municipal golf courses 1 1 1 1 1 1 1 1 1 1
2 Bike path miles were updated to include both Class I and Class II bicycles paths in 2015.
1 In Fiscal Year ending 2009, street lights at intersections were included for the first time.
Fiscal Year Ended June 30,
167 414
TABLE 21
Company Name Policy Number Coverage Limits Term Premium
Hartford FA026725413 Employee Dishonesty,$1 Million 12/03/13 - 12/03/14 $3,224
Forgery, Computer Fraud
Hartford FA026725414 Employee Dishonesty,$1 Million 12/03/14 - 12/03/15 $3,366
Forgery, Computer Fraud
CJPIA-Alliant B128410009W14 All Risk Property Insurance $20 Million 07/01/14 - 07/01/15 $28,793
Including Auto Physical Damage, Single Limit per Occurrence
Terrorism, Boiler & Machinery subject to other sublimits
(Excluding Earthquake)
Lloyds W14D19140101 Earthquake/Flood $20 Million 02/07/14 - 02/07/15 $103,922
Real & Personal Property
Including Contingent Tax Interruption
Lloyds W14D19150201 Earthquake/Flood $10 Million 02/07/15 to 02/07/16 $95,976
Real & Personal Property
Including Contingent Tax Interruption
California Comprehensive General $50 Million 06/30/14 - 06/30/15 $417,690
Joint Powers Liability Single Limit per Occurrence
Insurance Authority
California Worker's Compensation $10 Million 06/30/14 - 06/30/15 $219,195
Joint Powers
Insurance Authority
Alliant PEC0011896301 Pollution Liability $10 Million 7/01/14 - 7/01/17 $13,340
Notes:
CITY OF LA QUINTA
Schedule of Insurance in Force
June 30, 2015
168 415
December 7, 2015
To the Honorable Mayor and Members of the City Council
City of La Quinta, California
We have audited the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City of La Quinta (the City) for the year
ended June 30, 2015. Professional standards require that we provide you with information about our
responsibilities under generally accepted auditing standards, Government Auditing Standards and
OMB Circular A-133, as well as certain information related to the planned scope and timing of our audit.
We have communicated such information in our letter to you dated June 15, 2015. Professional standards
also require that we communicate to you the following information related to our audit.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the City are described in the notes to the financial statements.
As described in Note 1, the City changed accounting policies related to pensions reporting by adopting
Statement of Governmental Accounting Standards (GASB Statement) No. 68, Accounting and Financial
Reporting for Pensions – an Amendment of GASB Statement No. 27 and GASB Statement No. 71,
Pension Transition for Contributions Made Subsequent to the Measurement Date – an Amendment of
GASB Statement No. 68 in fiscal year 2014-2015. Accordingly, the cumulative effect of the accounting
change as of the beginning of the year is reported in the government-wide statement of activities and the
proprietary funds statement of revenues, expenses and changes in net position.
We noted no transactions entered into by the City during the year for which there is a lack of authoritative
guidance or consensus. All significant transactions have been recognized in the financial statements in
the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management’s knowledge and experience about past and current events and assumptions
about future events. Certain accounting estimates are particularly sensitive because of their significance
to the financial statements and because of the possibility that future events affecting them may differ
significantly from those expected.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
ATTACHMENT 2
416
Ordinance No. 532
Addition of Chapter 5.90 to Title 5 – Business Regulations
Adopted: December 15, 2015
Page 2 of 9
WHEREAS, in Maral v. City of Live Oak, (2013) 221 Cal.App.4th 975, the Court of
Appeal held that “there is no right – and certainly no constitutional right – to cultivate
medical marijuana…” and thus confirmed the ability of a local governmental entity to
prohibit the cultivation of marijuana under its land use authority; and
WHEREAS, the Federal Controlled Substances Act (21 U.S.C. § 801 et seq.)
classifies marijuana as a Schedule 1 Drug, which is defined as a drug or other
substance that has a high potential for abuse, no currently accepted medical use for
treatment in the United States, and which has not been accepted as safe for use
under medical supervision; and
WHEREAS, the Federal Controlled Substances Act makes it unlawful under
federal law for any person to cultivate, manufacture, distribute or dispense, or possess
with an intent to manufacture, distribute, or dispense marijuana; and
WHEREAS, the Federal Controlled Substances Act contains no exception for
medical purposes, but, through federal legislation related to appropriations of federal
funds, the United States has suspended funding to the United States Department of
Justice to prevent states that have adopted limited marijuana use for medical
purposes from implementing those states’ medical marijuana laws; and
WHEREAS, on October 9, 2015, Governor Brown signed three (3) bills into law
(AB 243, AB 266, and SB 643) which collectively are known as the Medical Marijuana
Regulation and Safety Act (“MMRSA”); and
WHEREAS, the MMRSA sets up a State licensing scheme for commercial medical
marijuana uses, while protecting local control by requiring that all such businesses
must have a local license or permit in addition to a State license in order to operate;
and
WHEREAS, the MMRSA allows cities to completely prohibit all commercial
medical marijuana activities; and
WHEREAS, the MMRSA also requires numerous State agencies to issue
regulations relating to their areas of expertise; and
WHEREAS, the State estimates that it will not begin processing licenses for
marijuana related uses until January 2018 at the earliest; and
WHEREAS, as a result of this new State licensing system, as well as the yet-to-
be issued State regulations, there is uncertainty as to how the MMRSA and its
regulations will be implemented by State officials; and
WHEREAS, as recognized by the Attorney General’s August 2008 Guidelines for
the Security and Non-Diversion of Marijuana Grown for Medical Use, marijuana
cultivation or other concentration of marijuana in any location or premises without
adequate security increases the risk that surrounding homes or businesses may be
negatively impacted by nuisance activity such as loitering or crime; and
424
To the Honorable Mayor and Members of the City Council
City of La Quinta, California
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are trivial, and communicate them to the appropriate level of management. No
misstatements were found.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditor’s report. We are pleased to report that no such disagreements arose during the
course of our audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated December 7, 2015.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application
of an accounting principle to the City’s financial statements or a determination of the type of auditor’s
opinion that may be expressed on those statements, our professional standards require the consulting
accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge,
there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the City’s auditors. However, these
discussions occurred in the normal course of our professional relationship and our responses were not a
condition to our retention.
Other Matters
We applied certain limited procedures to management discussion and analysis, budgetary comparison
schedule for the General Fund, Housing Authority PA No. 1, and Housing Authority PA No. 2, Schedule of
Proportionate Share of the Net Pension Liability and Schedule of Contributions which are required
supplementary information (RSI) that supplements the basic financial statements. Our procedures
consisted of inquiries of management regarding the methods of preparing the information and comparing
the information for consistency with management’s responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We did
not audit the RSI and do not express an opinion or provide any assurance on the RSI.
We were engaged to report on the combining and individual non-major fund financial statements and
non-major fund budgetary comparison schedules, which accompany the financial statements but are not
RSI. With respect to this supplementary information, we made certain inquiries of management and
evaluated the form, content, and methods of preparing the information to determine that the information
complies with accounting principles generally accepted in the United States of America, the method of
preparing it has not changed from the prior period, and the information is appropriate and complete in
417
To the Honorable Mayor and Members of the City Council
City of La Quinta, California
relation to our audit of the financial statements. We compared and reconciled the supplementary
information to the underlying accounting records used to prepare the financial statements or to the
financial statements themselves.
The following new Governmental Accounting Standards Board (GASB) pronouncements were effective
for fiscal year 2014-2015 audit:
GASB Statement No. 68, Accounting and Financial Reporting for Pensions – An Amendment of
GASB Statement No. 27.
GASB Statement No. 69, Government Combinations and Disposals of Government Operations.
GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to Measurement
Date – an Amendment of GASB Statement No. 68.
The following Governmental Accounting Standards Board (GASB) pronouncements are effective in the
following fiscal year audit and should be reviewed for proper implementation by management:
Fiscal year 2015-2016
GASB Statement No. 72, Fair Value Measurement and Application.
GASB Statement No. 73, Accounting and Financial Reporting for Pensions and Related
Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain
Provisions of GASB Statements 67 and 68.
GASB Statement No. 76, The Hierarchy of Generally accepted Accounting Principles for
State and Local Governments.
Fiscal year 2016-2017
GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than
Pension Plans.
Fiscal year 2017-2018
GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits
Other Than Pensions.
Restriction on Use
This information is intended solely for the use of the City Council and management of the City of La
Quinta and is not intended to be, and should not be, used by anyone other than these specified parties.
Very truly yours,
Brea, California
418
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members of the City Council
City of La Quinta, California
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund information of
City of La Quinta, California, (the City) as of and for the year ended June 30, 2015, and the related notes
to the financial statements, which collectively comprise the City’s basic financial statements, and have
issued our report thereon dated December 7, 2015.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control
over financial reporting (internal control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do
not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the City’s financial statements will not be prevented, or detected and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether City’s financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on
the determination of financial statement amounts. However, providing an opinion on compliance with
those provisions was not an objective of our audit, and accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
ATTACHMENT 3
419
To the Honorable Mayor and Members of the City Council
City of La Quinta, California
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City’s internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
Brea, California
December 7, 2015
420
City of La Quinta
CITY COUNCIL MEETING: December 15, 2015
STAFF REPORT
AGENDA TITLE: INTRODUCE FOR FIRST READING AN ORDINANCE ADDING CHAPTER
5.90 TO THE LA QUINTA MUNICIPAL CODE TO PROHIBIT CANNABIS RELATED USES AND
COMMERCIAL CANNABIS ACTIVITIES, AND MAKING A FINDING OF EXEMPTION UNDER
THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
RECOMMENDATION
A. Move to take up Ordinance No. 532 by title and number only and waive further
reading.
B. Move to introduce at first reading Ordinance No. 532 adding Chapter 5.90 to the La
Quinta Municipal Code relating to the prohibition of cannabis related uses and
commercial cannabis activities.
C. Make a finding, included in Ordinance No. 532, that the adoption of the ordinance is
exempt under the California Environmental Quality Act pursuant to Sections
15061(b)(3) and 15378 of Title 14 of the California Code of Regulations.
EXECUTIVE SUMMARY
The Medical Marijuana Regulation and Safety Act (MMRSA), which implements a
variety of changes to state and local laws related to medical marijuana, was
signed by the Governor and will become effective January 1, 2016.
The MMRSA sets up a state licensing system for all “commercial cannabis
activities,” and any official city action relating to marijuana cultivation should
be in place by March 1, 2016.
On November 3, 2015, City Council directed staff to prepare an ordinance that
would, for the time being, prohibit cannabis commercial activities, including
cultivation and “mobile dispensaries”/deliveries.
This item was continued from the November 17, 2015, agenda because Exhibit
A was not included in the agenda package.
FISCAL IMPACT – None.
BACKGROUND/ANALYSIS
The MMRSA defines “commercial cannabis activities” to include the cultivation,
possession, manufacture, processing, storing, laboratory testing, labeling,
transporting, distribution, or sale of medical cannabis or a medical cannabis product
BUSINESS SESSION ITEM NO. 2
421
by any individual or organization, except a patient or primary caregiver. Case law
recognizes, however, the ability for cities to ban and regulate medical marijuana
activities that affect patients and caregivers.
The MMRSA generally requires all cultivators, manufacturers, testers, dispensaries,
distributers, and transporters to obtain both a state license and local permit (if one is
required) prior to commencing operations. While the MMRSA directs state agencies to
adopt regulations relating to commercial marijuana (e.g., labeling and production of
edibles, use of pesticides, environmental impacts of cultivation, and cumulative
impacts of water diversion), those regulations (once adopted) and the MMRSA
establish only minimum statewide standards relating to commercial cannabis
activities. The City retains the ability to enact and enforce additional (and potentially
more strict) standards relating to marijuana.
For La Quinta, however, there is an exception, and possibly two exceptions, to
MMRSA’s general protection of local control: Cultivation and “mobile dispensaries.”
With respect to cultivation, the MMRSA provides that the state will become the sole
licensing authority for all cultivation permits if a local agency does not have land use
regulations or ordinances regulating or prohibiting the cultivation of marijuana, either
expressly or otherwise under the principles of permissive zoning by March 1, 2016.
With respect to “mobile dispensaries” or marijuana deliveries, the MMRSA provides
that “deliveries” can only be made by a dispensary and in a city that does not
explicitly prohibit it by local ordinance, where “deliveries” generally means
commercial transfers of marijuana or marijuana products from a dispensary to a
caregiver, patient, or testing laboratory.
The City of La Quinta currently bans medical marijuana dispensaries throughout the
City (Municipal Code § 9.20.050). The City’s code defines “medical marijuana
dispensary” as a “facility or location which provides, makes available or distributes
medical marijuana to a primary caregiver, a qualified patient, or a person with an
identification card, in accordance with California Health and Safety Code Section
11362.5 et seq.” The current City ordinance is silent regarding cultivation.
The MMRSA provides that a local jurisdiction (the City) may enact an ordinance that
bans or otherwise regulates cultivation and/or mobile dispensaries; the local
jurisdiction must do so by March 1, 2016. The local jurisdiction, however, may later
modify these restrictions. Staff recommends that the City Council adopt the proposed
ordinance that prohibits all commercial cannabis activities and other marijuana
related uses subject to the MMRSA. Said ordinance includes language that allows the
City Council to revisit the ban at a future time.
ALTERNATIVES
Council may propose a different ordinance, with consideration of state’s deadline.
Prepared by: William H. Ihrke, City Attorney
Approved by: Frank J. Spevacek, City Manager
Attachment: 1. Ordinance No. 532
422
ORDINANCE NO. 532
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA
QUINTA, CALIFORNIA, ADDING CHAPTER 5.90 TO THE LA
QUINTA MUNICIPAL CODE TO PROHIBIT ALL CANNABIS
RELATED USES, COMMERCIAL CANNABIS ACTIVITIES, AND
THE DELIVERY AND CULTIVATION OF CANNABIS IN THE
CITY
WHEREAS, in 1996, the voters of the State of California approved Proposition
215 (codified as California Health & Safety Code § 11362.5, and entitled “The
Compassionate Use Act of 1996” or “CUA”); and
WHEREAS, the intent of Proposition 215 was to enable persons who are in need
of marijuana for legitimate medical purposes to use it without fear of criminal
prosecution under limited, specific circumstances; and
WHEREAS, Proposition 215 further provides that “nothing in this section shall
be construed or supersede legislation prohibiting persons from engaging in conduct
that endangers others, or to condone the diversion of marijuana for non-medical
purposes;” and
WHEREAS, the ballot arguments supporting Proposition 215 expressly
acknowledged that “Proposition 215 does not allow unlimited quantities of marijuana
to be grown anywhere;” and
WHEREAS, in 2004, the Legislature enacted Senate Bill 420 (codified as
California Health & Safety Code § 11362.7 et seq. and referred to as the Medical
Marijuana Program Act or “MMPA”) to clarify the scope of the CUA and to provide
qualifying patients and primary caregivers who collectively or cooperatively cultivate
marijuana for medical purposes with a limited defense to certain specific state
criminal statutes; and
WHEREAS, Assembly Bill 2650 (2010) and Assembly Bill 1300 (2011) amended
the MMPA to expressly recognize the authority of counties and cities to “[a]dopt local
ordinances that regulate the location, operation, or establishment of a medical
marijuana cooperative or collective” and to civilly and criminally enforce such
ordinances; and
WHEREAS, in City of Riverside v. Inland Empire Patients Health and Wellness
Center (2013) 56 Cal.4th 729, the California Supreme Court confirmed the ability of
local entities to ban and/or regulate medical marijuana cooperative and collectives,
holding that “[n]othing in the CUA or MMP[A] expressly or impliedly limits the inherent
authority of a local jurisdiction, by its own ordinances, to regulate the use of its
land…”; and
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Page 3 of 9
WHEREAS, the City Council finds that medical marijuana activities, as well as
cultivation for personal medical use as allowed by the CUA and MMPA can adversely
affect the health, safety, and well-being of City residents if such activities are either
unregulated or not properly regulated; and
WHEREAS, the City Council finds that in order to err on the side of caution,
Citywide prohibition is proper and necessary at this point in time to avoid the risks of
criminal activity, degradation of the natural environment, malodorous smells, and
indoor electrical fire hazards that may result from such activities if they are either
unregulated or not properly regulated, with the understanding that the City Council
may, at a future period in time, revisit the regulation of cannabis related uses and
commercial cannabis activities as authorized under the MMRSA; and
WHEREAS, the limited immunity from specified state marijuana laws provided
by the CUA and MMPA does not confer a land use right or the right to create or
maintain a public nuisance; and
WHEREAS, the MMRSA contains language that requires cities to prohibit
cultivation uses by March 1, 2016 either expressly or otherwise under the principles of
permissive zoning, or the State will become the sole licensing authority; and
WHEREAS, the MMRSA also contains language that requires delivery services to
be expressly prohibited by local ordinance, if the City wishes to do so; and
WHEREAS, the MMRSA is silent as to how the City must prohibit these or other
types of commercial medical marijuana activities; and
WHEREAS, Section 9.20.050 of the La Quinta Municipal Code currently bans
medical marijuana dispensaries in all zones, and defines “medical marijuana
dispensary” as a “facility or location which provides, makes available or distributes
medical marijuana to a primary caregiver, a qualified patient, or a person with an
identification card, in accordance with California Health and Safety Code Section
11362.5 et seq.”; and
WHEREAS, while the City Council expressly believes and reiterates its intent
that dispensaries, deliveries, and all related types of marijuana uses are prohibited
under the City’s Municipal Code, the City Council desires to enact this ordinance to
expressly make clear that all cannabis related uses and commercial cannabis
activities are prohibited throughout the City; and
WHEREAS, although the City desires to clarify that all medical marijuana uses
are banned at this point in time, the City Council retains the ability to either modify or
repeal this as well as any other related ordinances in the event that the MMRSA proves
to be an effective means by which to regulate marijuana related uses.
NOW, THEREFORE, the City Council of the City of La Quinta does ordain as
follows:
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Ordinance No. 532
Addition of Chapter 5.90 to Title 5 – Business Regulations
Adopted: December 15, 2015
Page 4 of 9
SECTION 1. Recitals. The foregoing recitals are true and correct and are incorporated
herein as though set forth in full.
SECTION 2. Authority. This Ordinance is adopted pursuant to the authority granted
by the California Constitution and State law, including but not limited to Article XI,
Section 7 of the California Constitution, the CUA, the MMPA, and the MMRSA.
SECTION 3. Adoption. Chapter 5.90 is hereby added to the La Quinta Municipal Code
as written in Exhibit A attached hereto.
SECTION 4. Cumulative Ordinance. Nothing in this Ordinance shall be interpreted to
allow any land use which is not expressly listed as permitted or conditionally
permitted within the City’s Zoning Code.
SECTION 5. CEQA Determination. In adopting this Ordinance, the City Council finds
that the project is categorically exempt from the California Environmental Quality Act
(CEQA) pursuant to Title 14 California Code of Regulations Sections 15061(b)(3) and
15378, in that it can be seen with certainty that the adoption of the Municipal Code
amendments propose no activity that may have a significant effect on the
environment and will not cause a direct physical change in the environment or a
reasonably foreseeable indirect physical change in the environment.
SECTION 6. Severability. If any section, subsection, subdivision, sentence, clause,
phrase, or portion of this Ordinance is, for any reason, held to be invalid or
unconstitutional by the decision of any court of competent jurisdiction, such decision
shall not affect the validity of the remaining portions of this Ordinance. The City
Council hereby declares that it would have adopted this Ordinance and each and
every section, subsection, subdivision, sentence, clause, phrase, or portion thereof,
irrespective of the fact that any one or more section, subsections, subdivisions,
sentences, clauses, phrases, or portions thereof be declared unconstitutional.
SECTION 7. EFFECTIVE DATE: This Ordinance shall be in full force and effect thirty (30)
days after its adoption.
SECTION 8. 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 1st day of December, 2015, by the following vote:
AYES:
NOES:
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Ordinance No. 532
Addition of Chapter 5.90 to Title 5 – Business Regulations
Adopted: December 15, 2015
Page 5 of 9
ABSENT:
ABSTAIN:
____________________________
LINDA EVANS, Mayor
City of La Quinta, California
ATTEST:
__________________________________________
SUSAN MAYSELS, City Clerk
City of La Quinta, California
(CITY SEAL)
APPROVED AS TO FORM:
_____________________________________
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
*Ordinances are adopted on second reading.
427
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Ordinance No. 532
Addition of Chapter 5.90 to Title 5 – Business Regulations
Adopted: December 15, 2015
Page 6 of 9
EXHIBIT A
Chapter 5.90
CANNABIS RELATED USES, COMMERCIAL CANNABIS ACTIVITIES,
DELIVERIES, AND CULTIVATION PROHIBITED
5.90.010 Definitions
“Cannabis” shall means all parts of the plant Cannabis sativa Linnaeus, Cannabis
indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin,
whether crude or purified, extracted from any part of the plant; and every compound,
manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin.
“Cannabis” also means the separated resin, whether crude or purified, obtained from
marijuana. “Cannabis” also means “marijuana” as defined by Section 11018 of the
California Health and Safety Code as enacted by Chapter 1407 of the Statutes of 1972.
The term “Cannabis” shall also have the same meaning as set forth in
Section 19300.5(f) of the California Business and Professions Code, as may be
amended from time to time. “Cannabis” does not include the mature stalks of the
plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any
other compound, manufacture, salt, derivative, mixture, or preparation of the mature
stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of
the plant which is incapable of germination. For the purpose of this chapter,
“cannabis” does not mean “industrial hemp” as defined by Section 81000 of the
California Food and Agricultural Code or Section 11018.5 of the California Health and
Safety Code.
“Caregiver” or “Primary Caregiver” shall have the same meaning as set forth in
Section 11362.7 of the California Health and Safety Code, as may be amended from
time to time.
“Commercial Cannabis Activity” shall have the same meaning as set forth in
Section 19300.5(k) of the California Business and Professions Code, as may be
amended from time to time.
“Cooperative” shall mean two or more persons collectively or cooperatively
cultivating, using, transporting, possessing, administering, delivering, or making
available marijuana, with or without cultivation.
“Cultivation” or “Cultivate” shall have the same meaning as set forth in
Section 19300.5(l) of the California Business and Professions Code, as may be
amended from time to time.
“Delivery” shall have the same meaning as set forth in Section 19300.5(m) of the
California Business and Professions Code, as may be amended from time to time.
“Dispensary” shall have the same meaning set forth in Section 19300.5(n) of the
California Business and Professions Code, as may be amended from time to time. For
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Ordinance No. 532
Addition of Chapter 5.90 to Title 5 – Business Regulations
Adopted: December 15, 2015
Page 7 of 9
purposes of this Chapter, Dispensary shall also include a Cooperative. Dispensary shall
not include the following uses: (1) a clinic licensed pursuant to Chapter 1 of Division 2
of the California Health and Safety Code; (2) a health care facility licensed pursuant to
Chapter 2 of Division 2 of the California Health and Safety Code; (3) a residential care
facility for persons with chronic life threatening illnesses licensed pursuant to Chapter
3.01 of Division 2 of the California Health and Safety Code; (4) a residential care facility
for the elderly licensed pursuant to Chapter 3.2 of Division 2 of the California Health
and Safety Code; (5) a residential hospice or home health agency licensed pursuant to
Chapter 8 of Division 2 of the California Health and Safety Code.
“Medical Cannabis” or “Cannabis” shall have the same meaning as set forth in
Section 19300.5(ag) of the California Business and Professions Code, as may be
amended from time to time.
“Medical Marijuana Regulation and Safety Act” or “MMRSA” shall mean and refer to
the following three bills signed into law on October 9, 2015, as the same may be
amended from time to time: AB 243, AB 266, SB 643.
“Qualifying Patient” or “Qualified Patient” shall have the same meaning as set forth in
Section 11362.7 of the California Health and Safety Code, as may be amended from
time to time.
5.90.020 Prohibitions.
A. Cannabis Related Uses. All Cannabis related uses, including but not limited to
Cooperatives, Cultivation, Deliveries, Dispensaries, and other Commercial Cannabis
Activities for which a State license is required under the MMRSA, are prohibited
throughout the city. The city shall not issue any permit, or process any license or
other entitlement for any Cannabis related use or any other activity for which a State
license is required under the MMRSA. No person shall establish, operate, conduct,
permit or allow any Cannabis related use anywhere within the city as prohibited under
this paragraph.
B. Commercial Cannabis Activities. All Commercial Cannabis Activities, including but
not limited to Cooperatives, Cultivation, Deliveries, and Dispensaries, are expressly
prohibited throughout the city regardless of whether or not the Commercial Cannabis
Activity is for Medical Cannabis or Cannabis used for medicinal purposes. The city shall
not issue any permit, or process any license or other entitlement for any Commercial
Cannabis Activity. No person shall establish, operate, conduct, permit or allow a
Commercial Cannabis Activity anywhere within the city.
C. Cannabis Deliveries. All Deliveries of Cannabis and Medical Cannabis are expressly
prohibited in the city. No person shall conduct any Deliveries of Cannabis or Medical
Cannabis that either originate or terminate at any location within the city.
D. Cannabis Cultivation. The Cultivation of Cannabis, regardless of whether for
commercial or non-commercial purposes, and including Cultivation by a Qualified
Patient or Primary Caregiver is expressly prohibited throughout the city. No person,
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Ordinance No. 532
Addition of Chapter 5.90 to Title 5 – Business Regulations
Adopted: December 15, 2015
Page 8 of 9
including but not limited to a Qualified Patient or Primary Caregiver, shall cultivate any
amount of Cannabis in the city, regardless of whether or not the Cannabis is intended
to be used for medical purposes.
5.90.030 Public Nuisance
Any use or condition caused, or permitted to exist, in violation of any provision of this
chapter shall be, and is hereby declared to be, a public nuisance and may be
summarily abated by the city pursuant to Section 731 of the California Code of Civil
Procedure or any other remedy available at law.
5.90.040 Civil Penalties
In addition to any other enforcement permitted by the La Quinta Municipal Code, the
city attorney may bring a civil action for injunctive relief and civil penalties against any
person who violates any provision of this chapter. In any civil action that is brought
pursuant to this chapter, a court of competent jurisdiction may award civil penalties
and costs to the prevailing party.
5.90.050 Provisions in Chapter Cumulative
The prohibitions and provisions in this chapter are cumulative to any and all other
prohibitions and regulations in the La Quinta Municipal Code concerning Cannabis,
Medical Cannabis, and marijuana in general, and nothing in this chapter supersedes or
shall be construed to conflict with any other prohibitions and regulations in the La
Quinta Municipal Code, including Section 9.20.050, as may be amended from time to
time.
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Ordinance No. 532
Addition of Chapter 5.90 to Title 5 – Business Regulations
Adopted: December 15, 2015
Page 9 of 9
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. ___ which was
introduced at a regular meeting on the __ day of ______________, 2015, and was
adopted at a regular meeting held on the __ day of ______________, 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 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 _______________, 2015 pursuant to Council
Resolution.
_________________________________
SUSAN MAYSELS, City Clerk
City of La Quinta, California
432
City of La Quinta
CITY COUNCIL MEETING: December 15, 2015
STAFF REPORT
AGENDA TITLE: DISCUSS CITY REORGANIZATION PLAN
RECOMMENDATION
Discuss and provide feedback on the City reorganization plan.
EXECUTIVE SUMMARY
The Executive Team is developing a new organizational plan that addresses the
changing needs of the City.
The plan focuses on the “Big Rock” issues (Public Safety, Economic Development,
Infrastructure and Revenue), improve the bench strength of the organization, and
expand employee growth and promotional opportunities.
The plan proposes to establish and Design and Development Department, A
Facilities Department and a Community Resources Department.
Four existing positions would be eliminated, six new positions would be
established, and nine positions reclassified. Non-public safety full time staff
would increase from 72 to 74.
FISCAL IMPACT
There is no fiscal impact. The all-in (salaries and benefits) cost of the reorganization plan
is $620,000, which is offset by a savings of $620,000 from eliminated positions.
BACKGROUND/ANALYSIS
Since 2013, significant changes and improvements have been made to the City’s
organization. With current executive level changes due to turnover and retirement,
opportunities were created to examine the organization and expand efforts toward “The
Vision” which includes:
Maintain superior public safety, fire protection and emergency services
Expand the economic development efforts and increase revenue
Improve infrastructure and facilities through asset management
Encourage employee growth at all levels
Improve the development review process and make it more responsive to the
community’s needs
STUDY SESSION ITEM NO. 1
433
The Executive Team, with input from employees, developed the plan to better meet the
organization’s goals and strengthen management. The following values were used to
accomplish the work:
Customer Service
Teamwork
Perseverance and Problem Solving
Integrity and Professional Conduct
Innovation and Creativity
Strategic Changes
The plan creates a Community Resources Department, Facilities Department, and Design
and Development Department. These new departments enable the City to increase
efforts on the Partnerships and Community Outreach (Safety and Code Compliance)
expand Customer Service for new development, and place greater attention on Facilities
and Parks. To execute the plan, the following changes are requested:
City Manager’s Office
Maintain the Business Unit to support Economic Development, Legislative Affairs,
Real Estate and provide executive level support to the Council and organization.
Community Resources Department (People and Partnerships)
Create a Community Resource Director position (reclassification) overseeing Public
Safety Services, Code Compliance, Marketing, Wellness and Recreation,
Technology, Human Resources, Library and Museum, Art in Public Places and
Community Grants.
Create a Public Safety Manager position (reclassification) overseeing Police, Fire,
and Emergency services contracts, managing Code Compliance staff and
enhancing their community outreach and education efforts.
Create a Community Resources Manager (internal recruitment/new position) to
oversee Marketing, Library and Museum contract, Wellness Center operations and
programs, recreation programs, technology and large scale special events.
Create a Community Programs and Wellness Supervisor (reclassification),
responsible for expanded operations of the Wellness Center and Citywide
recreation programs facility rentals, and community grants.
Create an Administrative Technician (reclassification) to provide support for the
Community Services Commission and Community Resources Department.
Design and Development Department
Place Development Engineering, Planning, Building, Customer Service Center, and
the Capital Improvement Program (CIP) into one department.
Create a Customer Center Manager position (internal recruitment/new position) to
expand the efforts of the Customer Service Center, TRAKiT/eTRAKiT
implementation, analytics, software upgrades, and improve integration with other
City departments.
Fill a Permit Technician Supervisor position (internal recruitment), which will focus
on the development and training of the permit technicians to include cross
training and ongoing development of improved customer service delivery.
Create an Account Clerk position (new). This position will provide accounting and
administrative support for the CIP program.
434
Facilities Department
Will include City facilities, streets, medians and perimeter landscapes, parks, and
SilverRock Resort.
Create a Facility Director position (reclassification) to provide greater emphasis on
managing City assets, and preventative maintenance of City buildings, parks, and
streets.
Create a Building Superintendent position (new), responsible for preventative
maintenance and lifecycle management of buildings and internal systems. Will
oversee numerous contracts.
Create a Parks Superintendent position (reclassification) responsible for the parks
maintenance contract, playground maintenance and replacement, field rentals
with sports associations, and coordination with the schools for shared field use.
Create a Parks Foreman position (internal recruitment/new position) responsible
for regular park inspections, playground inspections, coordination of equipment
installations, and assists with the park maintenance contract.
Create a Parks Worker position (new) responsible for the daily maintenance and
small projects in City parks.
City Clerk Department
Relocate housing and risk management contract processing functions to the City
Clerk. Current Deputy City Clerk will split time between administrative support for
the Council/City Manager’s Office, and Deputy Clerk duties.
Create two Deputy City Clerk positions (reclassifications) to handle Clerk functions
including contracts, municipal code issues, records management, records
requests, conflict of interest, election support, and the new functions of risk
management and housing.
Finance
No changes. Reclassifications to several positions occurred in 2015.
Once Council has provided staff with feedback about the proposed plan, staff will present
details at the January 19, 2016 City Council meeting regarding new positions, new hires,
and reclassifications that result from the new plan.
ALTERNATIVES
Provide feedback to staff regarding the reorganization plan.
Prepared by: Edie Hylton, Deputy City Manager
Approved by: Frank J. Spevacek, City Manager
Attachment: 1. Proposed reorganization charts
435
436
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442
City of La Quinta
CITY COUNCIL MEETING: December 15, 2015
STAFF REPORT
AGENDA TITLE: SENATE BILL 107 - SUCCESSOR AGENCY WIND-DOWN
RECOMMENDATION
Review and discuss Successor Agency Wind-Down process.
EXECUTIVE SUMMARY
On September 22, 2015, Senate Bill (SB) No. 107 was approved to provide
comprehensive clean-up and clarification to the redevelopment agency dissolution
or ‘‘wind-down’’ process.
The interest earnings on the City of La Quinta/Redevelopment loan will
substantially increase as well as the annual loan payments.
$600,000 of 2011 bond proceeds will be available for capital improvements.
$25,558,893 of 2011 bond proceeds will be available for affordable housing.
FISCAL IMPACT --- None.
BACKGROUND/ANALYSIS
In 2011, Assembly Bill X1 26, dissolved RDAs and created successor agencies to wind-
down the RDA operations under the supervision of oversight boards. On September 22,
2015, Governor Brown signed into law Senate Bill 107 to provide comprehensive clean-up,
modifications, and clarifications.
Among the changes triggered by SB 107, City/Redevelopment Agency loans that have
been previously approved by Department of Finance (Department) will not be subject to
further review. Therefore, the 2007 City of La Quinta/Redevelopment loan of $34.9 million
should be secure.
In an effort to establish a path towards the final dissolution of the La Quinta Successor
Agency (SA), SB 107 establishes incentives to submit a Last and Final Recognized
Obligation Payment Schedule (LFROPS) for Oversight Board and Department approval.
Starting January 1, 2016, the SA may submit a LFROPS. Once approved, the SA will be
able to accrue 4 percent on outstanding loans versus the current rate of 0.264 percent.
Another benefit is access to 20 percent of the 2011 non-housing bonds for capital
improvements, and 100 percent of the 2011 housing bond proceeds.
STUDY SESSION ITEM NO. 2
443
The increased loan interest rate will significantly impact the 2007 City of La
Quinta/Redevelopment loan of $34.9 million. Over the life of the loan repayment,
approximately $14.6 million (versus a projected $150,000) of interest earnings will
accrue, of which 20 percent or $2.9 million must be pledged for housing. Attachment 1
presents a loan repayment schedule and identifies the funds that must be allocated to
housing.
The SA will also gain access to 2011 RDA bond proceeds; there are $3,000,000 of non-
housing bond proceeds and $25.6 million of housing bond proceeds. Discussions with the
Department indicate that if the Oversight Board finds that the bond proceeds will be used
for the purposes outlined in the bond documents, the proceeds may then be released to
the City and Housing Authority (HA). The City may have access to $600,000 of 2011 Non-
Housing Bonds for capital improvements in that section of the City north of Avenue 50.
The remaining 80 percent or $2,400,000 of the Non-Housing Bonds proceeds are
restricted to only defease these bonds. Discussions with the City’s bond underwriter
indicate that this cannot occur until 2021.
Regarding the 2011 Housing Bonds, $25.6 million of bond proceeds would be transferred
to the HA for future affordable housing investment. In review of the Housing Fund Cash
Flow (Attachment 2), the HA will have approximately $28.7 million available in 2016, and
$600,000 available each year thereafter for the next 20 years.
For purposes of using 2011 Non-Housing and Housing Bond proceeds, a ‘‘Bond Proceeds
Agreement’’ between the SA and City, and between the SA and the HA, respectively, may
be submitted to the Department as part of a ROPS or LFROPS process. The Department
has, in the past, approved these agreements. The City and the HA must covenant to
spend the proceeds consistent with the non-housing and housing bond documents,
respectively.
Next Steps:
Staff is currently preparing the annual ROPS to be delivered to the Department no later
than February 1, 2016, with a LFROPS to follow shortly thereafter. Once approved by the
Department (anticipated to be in June 2016), the 2011 bond proceeds will be released.
Staff will prepare a list of potential non-housing and housing projects for City Council
consideration this spring to utilize these funds after July 1, 2016.
Prepared by: Tim Jonasson, Public Works Director/City Engineer and Jon McMillen, Tall
Mann Group
Approved by: Frank J. Spevacek, City Manager
Attachments: 1. Loan Repayment Worksheet
2. Housing Fund Cash Flow
444
Loan
Repayment
Starting
Loan
Balance:34,976,516$
Interest
Rate:0.264%
Interest
Earnings
Year Received
Interest
Paid Principal
Paid Balance 20%
for
Housing 20%
for
Housing
2015 1,797,725$
92,338$
1,705,387$
33,271,129$
341,077$
18,468$
2016 1,976,864$
87,836$
1,889,028$
31,382,101$
377,806$
17,567$
Repayment
after
Approval
of
LFROPS
Growth
Rate:2.5%
Interest
Rate:4.0%
Loan
Amount:31,382,101$
Interest
Earnings
Year Received Interest
Paid Principal
Paid Balance 20%
for
Housing 20%
for
Housing
2017 2,026,286$
1,255,284$
771,002$
30,611,099$
154,200$
251,057$
2018 2,076,943$
1,224,444$
852,499$
29,758,600$
170,500$
244,889$
2019 2,128,866$
1,190,344$
938,522$
28,820,078$
187,704$
238,069$
2020 2,182,088$
1,152,803$
1,029,285$
27,790,793$
205,857$
230,561$
2021 2,236,640$
1,111,632$
1,125,008$
26,665,785$
225,002$
222,326$
2022 2,292,556$
1,066,631$
1,225,925$
25,439,860$
245,185$
213,326$
2023 2,349,870$
1,017,594$
1,332,276$
24,107,584$
266,455$
203,519$
2024 2,408,617$
964,303$
1,444,313$
22,663,271$
288,863$
192,861$
2025 2,468,832$
906,531$
1,562,301$
21,100,970$
312,460$
181,306$
2026 2,530,553$
844,039$
1,686,514$
19,414,455$
337,303$
168,808$
2027 2,593,817$
776,578$
1,817,239$
17,597,217$
363,448$
155,316$
2028 2,658,662$
703,889$
1,954,774$
15,642,443$
390,955$
140,778$
2029 2,725,129$
625,698$
2,099,431$
13,543,012$
419,886$
125,140$
2030 2,793,257$
541,720$
2,251,537$
11,291,475$
450,307$
108,344$
2031 2,863,089$
451,659$
2,411,429$
8,880,046$
482,286$
90,332$
2032 2,934,666$
355,202$
2,579,464$
6,300,582$
515,893$
71,040$
2033 3,008,032$
252,023$
2,756,009$
3,544,573$
551,202$
50,405$
2034 3,083,233$
141,783$
2,941,450$
603,123$
588,290$
28,357$
2035 627,247$
24,125$
603,123$
-‐$
120,625$
4,825$
Totals 45,988,383$
14,606,283$
31,382,101$
6,276,420$
2,921,257$
ATTACHMENT 1
445
446
A
T
T
A
C
H
M
E
N
T
2
ATTACHMENT 2
447
448
City of La Quinta
CITY COUNCIL MEETING
DEPARTMENT REPORT
TO: Madame Mayor and Members of the City Council
FROM: Chris Escobedo, Assistant to City Manager
Martha Mendez, Business Analyst
DATE: December 15, 2015
SUBJECT: LA QUINTA PARK
The City has been receiving calls regarding incidents at La Quinta Park, located
at the northeast corner of Adams Street and Westward Ho Drive. The incidents
involve teenagers and young adults gathering inside the skate park, and
drinking alcohol, smoking marijuana, and disturbing others.
The American Youth Soccer Organization (AYSO) has also contacted the City to
report an incident. Staff is working with AYSO to encourage parents to report
illegal activities directly to La Quinta Police Department (LQPD). The following
contact numbers were provided: emergencies – 911, non-emergencies – (760)
836-3215, extension 5.
LQPD and staff are implementing the following in response to these incidents:
1. Police patrols have been increased.
2. Park cameras will be upgraded.
3. Staff has verified all lights and signs are in working order; however, this is
an on-going effort because the fences, lighting and other property are
constantly being vandalized.
4. Closing the park and turning off play field lighting at 10:00 p.m. LQPD is
enforcing this.
5. Police Volunteers have increased their patrols at and around the park.
6. Signage with “Community Watch, please call police to report suspicious
activity at (760) 836-3215, extension 5, is being installed throughout the
park.
Staff is evaluating additional actions, including modifying the municipal code to
broaden Code’s and law enforcement’s authority to contain and eliminate
illegal activity.
Staff is working on a multi-department approach (Police, Code Enforcement
and Community Services) to increase effectiveness. We know that this is an
ongoing issue and we are seeking a permanent solution.
DEPARTMENT REPORT ITEM NO.1
449
450
City of La Quinta
CITY COUNCIL MEETING
DEPARTMENT REPORT
TO: Madame Mayor and Members of the City Council
FROM: City Attorney’s Office
Bill Ihrke
DATE: December 15, 2015
SUBJECT: Authority For Contracting For Investments of City Funds
The City Council requested our office review whether an amendment to the
City’s Municipal Code is required to allow the City Treasurer or City Council, or
both, to enter into contracts for purposes of investing city funds. The issue was
raised and considered at prior City Council meetings, including September 18,
2007. The staff report and minutes from that meeting are attached
(Attachment 1). The Municipal Code does allow the City Treasurer to contract
for investment portfolio services. The City Council cannot, however, directly
contract for investment portfolio services without amending the Municipal
Code.
To summarize, state law allows cities to invest funds not required for
immediate needs. Chapter 3.08 of the La Quinta Municipal Code (LQMC)
implements this allowance and delegates to the City Treasurer (i.e., City’s
Director of Finance per LQMC § 2.12.010) the authority to invest these city
funds. The City Council annually adopts an investment policy, which, consistent
with Chapter 3.08, specifies that the authority to manage the City’s investment
portfolio is delegated to the City Treasurer. Investments are subject to the
policy’s requirements and restrictions.
An attorney general opinion concluded that a county treasurer, who had
delegation authority similar to the City Treasurer’s authority, could contract
with an investment portfolio manager because, among other reasons, the
county treasurer would still bear the fiduciary responsibilities and remained
subject to a “prudent investor” standard. (79 Ops.Cal.Atty.Gen. 88 (1996).)
Based on the analysis in the attorney general opinion, the City Treasurer has
authority to contract for the investment of city funds, subject to the restrictions
in investment policy. The City Council’s recent adoption of Ordinance 529 is
consistent with the attorney general opinion and continues the City Treasurer’s
option to contract for investment portfolio services.
DEPARTMENT REPORT ITEM NO. 2
451
The City Council, however, does not have the authority to directly manage and
invest city funds. If the City Council desired to contract for investment services,
as the City Treasurer may do so, the City Council would need to amend the
LQMC in a manner similar to that which was proposed at the September 18,
2007, meeting. If the City Council were to retain the expressed authority to
contract for investment portfolio services, the City Council would assume the
fiduciary responsibilities and standards currently delegated to the City
Treasurer.
Attachment: 1. Staff Report and Minutes dated September 18, 2007.
452
of jfaQfdtdoj
CODNCIIVRDA MEETING DATE: September 18, 2007
ITEM TITLE: Consideration of an Ordinance Amending
Section 3.01.010 of the La Quinta Municipal Code
Governing the Investment of Funds
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDATION:
As deemed appropriate by the City Council.
FISCAL IMPLICATIONS:
There is no fiscal impact associated with the adoption of the attached ordinance per
se. If the City Council exercises the discretion granted by the ordinance to retain a
professional portfolio management firm (Portfolio Manager), there would be fiscal
impacts. The Portfolio Manager would charge a fee for services which would be
determined through the Request for Proposal and contracting processes. In addition,
the third party custodian in charge of holding the securities would charge a fee for
its services. These costs would be offset by interest earnings and/or gains or losses
from investment sales.
CHARTER CITY IMPLICATIONS: '
None.
BACKGROUND AND OVERVIEW:
As part of its work plan for the past several years the Investment Advisory Board (IAB)
has worked on adding to the Investment Policies a section allowing for the future hiring
of a Portfolio Manager to invest a portion of the City's funds.
The IAB completed its 2006-2007 work plan, and in July of this year the City Council
directed the City Attorney to draft the Municipal Code amendments necessary for the
retention of a Portfolio Manager. (Attachment 1)
Title 3, Chapter 3.08 of the La Quinta Municipal Code governs the "Investment of
Moneys and Funds." Under state law, a city may invest city funds not required for its
immediate needs. (Gov. Code § 53601 [listing permissible investments].) Chapter
3 ' JO J
ATTACHMENT 1
453
3.08.010 delegates "the authority to invest and reinvest moneys of the city, to sell or
exchange securities, and to deposit them and provide for their safekeeping to the city
treasurer." By law, the City can either delegate this duty to City Treasurer or retain the
responsibility for the Council. The City in the past has chosen to delegate the authority
to the City Treasurer.
If the City Council wishes to pursue the option of retaining an independent Portfolio
Manager, then the City Council would retain the authority over the funds which are to
be handled by the Portfolio Manager rather than delegating that responsibility to the
City Treasurer. This retention is necessary because the Portfolio Manager is not an
agent (or subject to the control) of the Treasurer. Instead, the Portfolio Manager is
being retained by the City Council.
A California Attorney General ("AG") Opinion reported at 79 Op.Atty.Gen.Cal. 88
(1996) provides guidance as to the legalities of hiring of investment managers to invest
public funds. In the AG Opinion, an elected county treasurer was delegated the
statutory authority to invest the county's funds by the county board of supervisors.
The treasurer contracted with an investment manager to invest funds which were in the
custody of the treasurer, The manager would select, purchase, and sell individual
securities. The AG held that this arrangement would not violate state law "if the
treasurer exercises prudence in the selection of the manager and imposes safeguards to
prevent abuse in the exercise of discretion by the manager. The treasurer would remain
responsible for any investment decisions made by the manager."
Here, the City Treasurer is not proposing to retain a Portfolio Manager; the City Council
would be making that decision. Unlike the situation in the AG opinion where the
elected county treasurer directly hired the investment manager, the City Council would
be hiring the Portfolio Manager on behalf of the City. The Portfolio Manager will not be
an agent of the Treasurer and will not be under his control. Therefore, the City Council
rather than the Treasurer would remain responsible for the decisions of the Manager
and will need to periodically review the Manager's performance. '
The City Council would also need to determine that the scope of the Portfolio
Manager's authority and the controls exercised over the Manager are adequate. While
the AG did not specifically discuss what "safeguards to prevent abuse" are suitable, in
providing a general discussion on the role of the treasurer as a trustee of county funds,
the AG relied upon the "prudent investor standard" as contained in Probate Code
section 1 6052(a):
A trustee may delegate investment and management
functions as prudent under the circumstances. The trustee
shall exercise prudence in the following:
(1) Selecting an agent;
(2) Establishing the scope and terms of the delegation,
consistent with the purposes and terms of the trust;
(3) Periodically reviewing the agent's overall performance
and compliance with the terms of the delegation.
4 n c 000
454
The AG also quoted from the Restatement (Third) on Trusts:
In deciding what as well as whether to delegate and in
selecting, instructing, and supervising agents, the trustee
has a duty to the beneficiaries to act as a prudent investor
would act under the circumstances. The trustee must
exercise care, skill, and caution in establishing the scope and
specific terms of any delegation, and must keep reasonably
informed in order to monitor the execution of investment
decisions or plans.
(79 Op.Atty.Gen.Cal. 88 [citing Rest.3d Trusts, §227, com. j (emphasis added)].)
The City Council will need to determine whether the restrictions and safeguards spelled
out in the Investment Policy are sufficient to meet this standard. The limitations on the
Portfolio Manager, which can be found on Attachment 2, set forth the permissible
investments that can be purchased and sold by the outside professional portfolio
management firm in accordance with 53601 of the State Government Code and the
City Investment Policy. •
The City Manager, City Attorney and City Treasurer met with the IAB at its September
12th meeting to discuss the draft changes. The IAB requested that the references to
"moneys" from the prior code be changed to "funds". It further requested the addition
of subsection (c), which outlines the monthly reporting requirements as they apply to
the Portfolio Manager. Specifically at the request of the IAB, the following language
was added to the amended section:
(c) If the City Council exercises its discretion to retain a Portfolio Manager
pursuant to subsection (b), above, Portfolio Manager shall provide monthly
report to the City Council by submitting the report to the city treasurer for
inclusion in the city treasurer's monthly report prepared pursuant to Section
3.08.050. The Portfolio Manager's monthly report shall identify all
investments made by the Portfolio Manager during the month. The city
treasurer shall review the monthly report from the Portfolio Manager and the
report from the custodian of the city funds and shall report to the City Council
regarding the Portfolio Manager's adherence to the city's investment policies.
The city treasurer shall include the information provided by the Portfolio
Manager along with the city treasurer's conclusions regarding the Portfolio
Manager's adherence to the city's investment policies, in the monthly report
he or she submits to the City Council pursuant to Section 3.08.050.
FINDINGS AND ALTERNATIVES:
The alternatives available to the City Council include
1. Approve an Ordinance Amending Section 3.01.010 of the La Quinta Municipal
Code Governing the Investment of Funds; or
367
3
455
2. Do not approve an Ordinance Amending Section 3.01.010 of the La Quinta
Municipal Code Governing the Investment of Funds; or
3. Provide staff with alternative direction.
Respectfully submitted;
Approved for Submission by;
... ;*/
Thomas P. Genovese, City Manager
Attachments 1: Redline showing text amendment to Section 3.08.010
2; Permissible Investments
? 3
456
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF LA QUINTA, CALIFORNIA, AMENDING CHAPTER 3,
SECTION 3.08.010 (INVESTMENT OF CITY MONEY AND
DEPOSIT OF SECURITIES), OF THE LA QUINTA
CHARTER AND MUNICIPAL CODE REGARDING
RETAINING A PORTFOLIO MANAGER
THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, DOES
ORDAIN AS FOLLOWS:
SECTION 1. Amend Chapter 3, Section 3.08.010 as follows:
"3.08.010 Investment of City Moneys and Deposit of Securities
A. 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 funds of the city, to sell or exchange securities, and to deposit them and
provide for their safekeeping, is delegated to the City Treasurer.
B. Notwithstanding this delegation in subsection (a), above, the City Council
has the discretion to retain on behalf of the City a professional portfolio
management firm ("Portfolio Manager") to manage a portion of the city's funds
consistent with the adopted Investment Policy. As to those funds the City Council
chooses to have managed by a Portfolio Manager, the authority to invest and
reinvest, to sell or exchange securities, and to deposit them and provide for their
safekeeping, shall be retained by the City Council. The City Council shall also be
responsible for the investment decisions made by the Portfolio Manager. The City
Council shall exercise prudence in the selection of the Portfolio Manager, and shall
impose reasonable safeguards to prevent abuse in the exercise of discretion by the
Portfolio Manager.
C. If the City Council exercises its discretion to retain a Portfolio Manager
pursuant to subsection (b), above, Portfolio Manager shall provide a monthly report
to the City Council by submitting the report to the city treasurer for inclusion in the
city treasurer's report prepared pursuant to Section 3.08.050. The Portfolio
Manager's monthly report shall identify all investments made by the Portfolio
Manager during the month. The City Treasurer shall review the monthly report
from the Portfolio Manager and the report from the custodian of the city funds shall
report to the City Council regarding the Portfolio Manager's adherence to the city's
investment policies. The City Treasurer shall include the information provided by
<• 361
457
Ordinance No.
Amending Chapter 3, Section 3.08.010
Adopted: October 2, 2007
Page 2
the Portfolio Manager along with the City Treasurer's conclusions regarding the
Portfolio Manager's adherence to the city's investment policies in the monthly
report he or she submits to the City Council pursuant to Section 3.08.050."
SECTION 2. EFFECTIVE DATE: This Ordinance shall be in full force and
effect thirty (30) days after its adoption.
SECTION 3. POSTING: The City Clerk shall cause this Ordinance 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 on this 2nd day of October, 2007 by the following vote:
AYES: Council Members
NOES:
13 ^3 E. T b
ABSTAIN:
DON ADOLPH, Mayor
City of La Quinta, California
ATTEST:
VERONICA J. MONTECINO, CMC, City Clerk
City of La Quinta, California
(SEAL)
458
Ordinance No.
Amending Chapter 3, Section 3.08.010
Adopted; October 2, 2007
Page 3
APPROVED AS TO FORM:
M. (CATHERINE JENSON, City Attorney
City of La Quinta, California
459
Ordinance No.
Amending Chapter 3, Section 3.08.010
Adopted: October 2, 2007
Page 4
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE > ss.
CITY OF LA QUINTA j
I, VERONICA J. MONTECINO, 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.
(enter number) which was introduced at a regular meeting on the 18th day of
September, 2007, and was adopted at a regular meeting held on the 2nd day of
October, 2007, 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 City Council Resolution No. 2006-102.
VERONICA J. MONTECINO, CMC, City Clerk
City of La Quinta, California
DECLARATION OF POSTING
I, VERONICA J. MONTECINO, City Clerk of the City of La Quinta, California, do
hereby certify that the foregoing ordinance was posted on ,
pursuant to Council Resolution.
VERONICA J. MONTECINO, CMC, City Clerk
City of La Quinta, California
460
City of la Quinte
Permissible investment Chart
(1) (2) C3) <4) (5) (6) (7) (8)
Authorized
California Investment Credit
Government Maximum Limits Rating Allowed per Allowed per
Code Section Investment Category Maturity (% of Portfolio) Limits Comments City Policy Portfolio Manager
53601 (a) Local Agency Bonds 5 years None None No No
53601 (c) State of California Obligations 5 years None None No No
53601 <d) Ca Local Agency Obligations 5 years None Multiple No No
53601 (i) Repurchase Agreements 1 year None None No No
53601 (i) Reverse Repurchase Agreements 92 days 20% of the base value of the portfolio None No No
53601 (i) Securities Lending Agreements 92 days 20% of the base value of the portfolio None No No
53684 County Pooled Investments None None None No No
53601 (f) Banker's Acceptances 180 days 40% None "AA" or better No Yes
53601 (h) Negotiable CD's 5 years 30% None "AA" or better No Yes
53601 (k) Mutual Funds None 20% Multiple No Yes
53601 (n) Asset Backed Securities 5 years 20% AA No Yes
Cash and equivalents None None None Yes Yes
16429.1 LAIF None None None Yes No
53601 (b) O S. Treasuries 5 years None None Yes Yes
53601 (e) U.S. Agencies 5 years None None Yes Yes
53601 (g), 53635 Commercial Paper 270 days 25% of portfolio A-1/P-1/F-1 Yes Yes
53601 (k) Medium Term Notes Syears 30% A Yes Yes
Money Market Mutual Funds None 20% Multiple Yes Yes
53601 (m) Time Deposits Syears None None Yes Yes
Collateralized Bank Deposits 5 years None None Yes Yes
(including non-negotiable CD's)
Source of Columns (1) through (5) - Investment. Investment portfolio Reporting Practices CA Debt ana Investment Advisory Commission
Note. The portfolio Manager is not required to adhere to the buy and hold strategy and does not need City Manager or City Treasurer approval to
make permissible investments as detailed in column (8).
461
, LA QUINTA CITY COUNCIL
i MINUTES
SEPTEMBER 18, 2007 I
A regular meeting of the La Ouinta City Council was called to order at the hour of
3:00 p.m. by Mayor Adolph.
PRESENT: Council Members Henderson, Kirk, Osborne, Sniff, Mayor Adolph
ABSENT: • None
PUBLIC COMMENT - None
CLOSED SESSION
l
City Attorney Jenson did not participate in Closed Session Item No. 1.
1. Conference with City's legal counsel regarding potential litigation with Shea
Trilogy Tentative Tract Map 30023 pursuant to Government Code Section
54956.9(b)(1) and (c).
Council recessed to the Redevelopment Agency and to Closed Session to and until
the hour of 4:00 p.m.
I •
4:00 P.M.
The City Qouncil meeting was reconvened with no decisions being made in Closed
Session which require reporting pursuant to Government Code Section 54957.1
(Brown Act).
)
Mayor Adolph led the audience in the Pledge of Allegiance.
i
PUBLIC COMMENT
Lisa Munldy, 79-765 Aubrey Glen Court, requested the Council sign on with the
U.S. Mayors Environment Protection Agreement Act to help reduce emissions and
green hou$e gases; and gave examples of cost reductions.
Council Member Henderson questioned Mrs. Munley is she was aware of the
actions th£ City has taken towards protecting the environment.
462
City Council Minutes 2 September 18, 2007
Kay Woif, 77-227 Calls Ensenada, suggested a local radio station be established
which could be utilized for public notices and announcements; and joined Mrs.
Munley to urge Council to continue in protecting the environment.
CONFIRMATION OF AGENDA
City Manager Genovese requested the Redevelopment Agency agenda be taken up
after Business Item No. 1
ANNOUNCEMENTS - None
PRESENTATIONS - None
WRITTEN COMMUNICATIONS - None
APPROVAL OF MINUTES
Council Member Kirk requested Page 6, second paragraph, of the August 7, 2007
minutes bo corrected to state he requested the Community Grants Ad Hoc
Committee to review all grant applications.
MOTION it was moved by Council Members Sniff/Henderson to approve the City
Council Minutes of August 7, 2007, as amended (correction made to Page 6 as
stated above). Motion carried unanimously.
MOTION - It was moved by Council Members Sniff/Henderson to approve the City
Council Minutes of September 4, 2007, as submitted. Motion carried unanimously.
CONSENT CALENDAR '
Council Member Kirk requested Consent Calendar Item No. 10 be taken up
separately, due to a potential conflict of interest.
In response to Council Member Kirk, City Manager Genovese confirmed the reason
for using AB 939 funds in Consent Calendar Item No. 11 is due to the utilization of
recycled material in the construction of the fence,
463
City Counclil Minutes 3 September 18, 2007
1. APPROVAL OF DEMAND REGISTERS DATED AUGUST 21, SEPTEMBER 4,
AND SEPTEMBER 18, 2007.
I
2. RECEIVE AND FILE TRANSMITTAL OP TREASURER'S REPORTS DATED
JUNE 30 AND JULY 31, 2007. .
3. RECEIVE AND FILE TRANSMITTAL OF REVENUE & EXPENDITURES
REPORTS DATED JUNE 30 AND JULY 31, 2007.
f
4. APPROVAL OF A RESOLUTION AUTHORIZING INVESTMENTS OF MONIES
IN THE LOCAL AGENCY INVESTMENT FUND. (RESOLUTION NO.
2007-079)
5. DENIAL OF CLAIM FOR DAMAGES FILED BY ERIC FREDERICKS, DATE OF
LOSS - JULY 18, 2007.
i .
6. ACCEPTANCE OF FISCAL YEAR 2006/2007 SLURRY SEAL AND
RESTRIPJNG PROGRAM, PROJECT NO. 2006-01.
7. ACCEPTANCE OF TRAFFIC SIGNAL IMPROVEMENT ON JEFFERSON
STREET AT AVENUE 49, PROJECT NO. 2004-07B. i
8. ACCEPTANCE OF TRAFFIC SIGNAL IMPROVEMENT ON AVENUE 47 AT
ADAMS STREET, PROJECT NO. 2005-04.
9. ADOPTION OF A RESOLUTION TO EXTEND THE TIME FOR COMPLETION
OF THE ONSITE AND OFPSITE IMPROVEMENTS FOR TRACT MAP 31627,
THE RESIDENCE CLUB AT PGA WEST, NADADOR, LLC. (RESOLUTION NO.
2007-080)
10. ADOPTION OF A RESOLUTION GRANTING CONDITIONAL APPROVAL OF A
FINAL MAP AND SUBDIVISION IMPROVEMENT AGREEMENT FOR TRACT
MAp 29457-4, RANCHO LA QUINTA, T. D. DESERT DEVELOPMENT
LIMITED PARTNERSHIP. (See separate action below.)
11. APPROVAL OF PLANS, SPECIFICATIONS, AND ENGINEER'S (PS&E)
ESTIMATE FOR THE PERIMETER FENCE AT THE FRED WOLFF BEAR CREEK
NATURE PRESERVE, PROJECT NO. 2007-17. (See separate action below.)
i
12. AUTHORIZATION FOR OVERNIGHT TRAVEL FOR THE EMERGENCY
SERVICES COORDINATOR TO ATTEND THE HAZARDOUS MATERIALS
INSTRUCTOR CERTIFICATION FOR TRAINERS COURSE SPONSORED BY
THE STATE OF CALIFORNIA OFFICE OF EMERGENCY SERVICES IN LOS
ANGELES, CALIFORNIA, OCTOBER 2-3, 2007.
464
City Council Minutes 4 September 1 8, 2007
14.
15.
16.
17.
18.
19.
26.
AUTHORIZATION FOR OVERNIGHT TRAVEL FOR THE EMERGENCY
SERVICES COORDINATOR TO ATTEND THE EARTHQUAKE PREPAREDNESS
AND RESPONSE TRAINING SPONSORED BY THE NATIONAL EMERGENCY
TRAINING CENTER OPERATED BY THE FEDERAL EMERGENCY
MANAGEMENT AGENCY IN EMMITSBURG, MARYLAND, OCTOBER 21-27,
2007.
APPROVAL OF REQUEST FOR PROPOSALS (RFP) TO OBTAIN
PROFESSIONAL ENGINEERING SERVICES FOR THE AVENUE 58 AND
EISENHOWER DRIVE PAVEMENT REHABILITATION IMPROVEMENTS,
PROJECT NO. 2007-18.
APPROVAL OF REQUEST FOR PROPOSALS (RFP) TO OBTAIN
PROFESSIONAL ENGINEERING SERVICES FOR THE ADAMS STREET BRIDGE
IMPROVEMENTS, PROJECT NO. 2006-06. .
APPROVAL OF STAFF RECOMMENDATIONS AND AGREEMENT WITH THE
LA QUINTA CITY EMPLOYEES ASSOCIATION REGARDING INTERNAL
CLASSIFICATION STUDY.
ADOPTION OF A RESOLUTION MAKING CERTAIN FINDINGS PURSUANT TO
HEALTH & SAFETY CODE SECTION 33445(a), AND AUTHORIZING THE
EXPENDITURE OF FUNDS FOR THE PARK AVENUE LANDSCAPE
IMPROVEMENTS, PROJECT NO. 2006-15. (RESOLUTION NO. 2007-081)
APPROVAL OF THE DESERT CLASSIC CHARITIES LICENSE AGREEMENT
FOR THE BOB HOPE CHRYSLER CLASSIC.
APPROVAL OF AN AGREEMENT FOR LAW ENFORCEMENT SERVICES
BETWEEN THE CITY OF LA QUINTA AND THE COUNTY OF RIVERSIDE.
ADOPTION OF A RESOLUTION APPROVING THE SETTING AND
PLACEMENT OF RESIDENTIAL WASTE-COLLECTION AND SERVICE FEES
ON THE TAX ROLLS FOR REStDENTIALLY-DEVELOPED PROPERTY.-AND
NO. 2007-082)
MOTION ~ It was moved by Council Members Sniff/Henderson to approve
the Consent Calendar as recommended and amended with the exception of
Item No. 10 and with Item Nos, 4, 9, 17, and 20 being approved by
RESOLUTION NOS. 2007-079 through 2007-082 respectively. Motion
carried unanimously.
(corrected title) (RESOLUTION
465
City Council! Minutes 5 September 18, 2007
Item Wo, 10:
ft was moved by Council Members Henderson/'Sniff to approve Item No. 10,
adopting RESOLUTION NO. 2007-083 granting conditional approval of a
Final Map and Subdivision Improvement Agreement for Tract Map 29457-4,
Rancho La Quinta T. D. Desert Development Limited Partnership. Motion
carried 4-0-1 with Council Member Kirk abstaining.
I
BUSINESS SESSION
1. CONSIDERATION OF TWO APPOINTMENTS TO THE COMMUNITY
SERVICES COMMISSION.
I
Mayor Adolph explained each applicant will have an opportunity to state
their desire to serve on the Commission and answer any questions; upon
conclusion, the City Council will vote by ballot for appointment of two
members.
Joan Beige! stated it would be a thrill and honor to serve the community.
Stated she is retired from government and has been living in the City for a
year.
Sheiton Brodsky stated he looks forward to serving on the Commission; and
explained his interest in being considered a second time shows dedication.
Anrja Colis was not present.
Dalq Nelson stated he is retired from the banking industry; recently worked
as financial analyst for 11 years and recently retired for the second time;
stated he has attended Commission meetings and would enjoy participating
on 1he Commission.
Dor! Quill stated she has lived in the Cove for the last 26 years and is
impressed with the direction the City is going with the parks; stated she has
attended Commission meetings during the summer and would enjoy serving
on the Commission.
Julius Tinsley was not present.
i
MOTION - It was moved by Council Members Sniff/Kirk to appoint Sheldon
Brodsky and Dori Quill to serve two-year terms on the Community Services
Commission effective immediately. Motion carried unanimously.
i
466
City Council Minutes 6 September 18, 2007
Council Member Henderson stated all City Commissions have public
meetings and encouraged the public to attend.
The City Council recessed to the Redevelopment Agency meeting.
The City Council reconvened the meeting.
BUSINESS SESSION
2. CONSIDERATION OF AN ORDINANCE AMENDING SECTION 3.01.010 OF
THE LA QUINTA MUNICIPAL CODE GOVERNING THE INVESTMENT OF
FUNDS.
Finance Director Falconer presented the staff report.
In response to Council Member Osborne, Finance Director Falconer explained
the Portfolio Manager's monthly reports will be included with the monthly
Treasurer's report submitted for the City Council's review; the eligible funds
and investment timeframe is outlined in the Investment Policy; and explained
the Portfolio Manager will have discretion for investments based on the
Investment Policy, but will submit the monthly report to the Finance Director.
City Attorney Jensen further clarified that the concept of State law based on
the opinions of the Attorney General, explain there should not be dual
authority over the funds, and the funds are to either delegated to the
Treasurer and the sole responsibility of the Treasurer who remains
accountable, or they are retained; and explained in this situation it is the City
Council who wishes to retain the Portfolio Manager and is the Council's
responsibility, not the Finance Director or Treasurer.
In response to Council Member Osborne, City Attorney Jensen confirmed the
City Council is responsible for approving the Investment Policy and the
Investment Policy must be followed by the Portfolio Manager, and the
Portfolio Manager will be submitting monthly reports to the City Treasurer to
ensure they are in compliance with the Investment Policy.
in response to Council Member Kirk, City Attorney Jensen explained the City
is novel in this area due to the fact that there is no opinion to this fact issued
by the Attorney General.
467
City Council! Minutes 7 September 18, 2007
I ' Council Member Osborne explained there is no additional risk in using a
professional portfolio manager, and suggested to utilize the service for one
yeaf, in response to Council Member Sniff.
In response to Council Member Sniff, Council Member Osborne stated the
portfolio manager will be able to buy and sell funds according to the
Investment Policy. '
i
City Attorney Jensen stated it is not possible to delegate the power to the
Treasurer and then dictate the Treasurer how to utilize the portfolio manager,
In response to Mayor Adolph, Council Member Osborne confirmed it is the
intent to set aside a specific amount for the portfolio manager to invest.
I
Council Member Sniff stated the City has had an extremely solid process and
the possibility of risk is a mistake; every dollar is precious and overseeing
these funds for the people we represent; this policy is fraught with risk; and
the Council should not subject public funds to any risk.
I
In response to Council Member Henderson, Finance Director Falconer stated
he Is only aware of one city, Indio, which utilizes a portfolio manager in the
Coachella Valley; explained that upon approval of this item, staff will submit
an KFP for Council's approval; stated staff will also request further direction
from the Council for implementation; and explained enthusiasm toward this
item from the Investment Advisory Board has changed due to two members
leaving and the appointment of two new members and are coming up to
speed on this matter. '
Finance Director Falconer referred to the Treasurer's report for July and
August and explained the benchmark levels.
I
In response to Council Member Henderson, Finance Director Falconer stated
he does work with three brokers for investment of funds; and explained the
Investment Advisory Board will be presented with the same information
submitted to the Council for review.
i
In response to Council Member Kirk, Finance Director Falconer confirmed the
custodian of funds will be held by a third party custodian which is the Bank
of New York and stated there will be no change of custodian, but an
additional account will be established to monitor the securities; and explained
thefe is no additional risk to loosing the principal amount with the third party
custodian. .
I
468
City Council Minutes 8 September 18, 2007
Council Member Kirk further stated the Council is spending a great amount
of time on this issue; and conveyed his concern of making this matter more
comments that it needs to be.
Council Member Osborne stated to compare this potential policy to betting
on horses or to playing on the freeway is ridiculous; we are mandating the
policy for the portfolio manager to follow, and will have a third party
custodian; incident that happened close to 15 years ago will not be
duplicated because this firm will not have custody of funds; and suggested
to open the process for a year and review at that time.
Council Member Sniff stated having dealt with conspiracy with the Weimer
situation 1 5 years ago and to disregarding any of those situations is fool-
hearty; thieves are constantly figuring out a scheme to get to the money; to
indicate there is no risk is short-sighted and fool-hearty; sometimes loose
money on a trade and this is a volatile world and market; and stated will not
and cannot support this item.
Council Member Henderson stated have been a very conservative city and
does not see this issue moving away from being conservative; had the
opportunity to review the Weimer matter and there were third party
custodians; appreciates that the principal will be safe, however the process
is to open the door to increase the growth rate; as long as the City Council
has leftovers from the Weimer days, this will be a challenge; cannot support
the ordinance at this time; likes being conservative, safe, and knowing who
is control of our funds; doesn't see the real need to implement a portfolio
manager; would say it is worth it to get information regarding how many the
478 cities in Southern California have portfolio managers and to get the
language used to compare.
Council Member Kirk conveyed his respect to those on the Council and
members of the community who went through the challenges in the past;
feels strongly by slightly diversifying investments could increase our funds
which could translate to more police, etc; doesn't like hearing the fear
mongering, and it has been explained there would be no more risk to the
principal than we do now; here the third party custodian would be selected
by either the Treasurer or the Investment Advisory Board and doesn't see
any more risk, but does see additional reward; have given staff in a particular
direction and staff has done a tremendous amount of work; and now are
changing direction, we are wasting staff time and resources; disappointed
we are revisiting this issue again; stated he will support this item and
respectfully urged the other Council Members to support this item as well.
469
City Council Minutes 9 September 18, 2007
Mayor Adolph explained when we start taking away the direction from the
Finance Director, we are going backwards; do have a problem when we start
diversifying funds; have a very conservative approach; nothing wrong with
investing and making more money for the City, but will not gamble with tax
dollars; at this stage of the game, have reservations in regards to going in
this' direction.
Council Member Sniff commented on statement made that there could not
be disk to the principal, which that is erroneous.
MOTION - It was moved by Council Members Osborne/Kirk to take up
Ordinance No. 444 by title and number only and waive further reading.
Motion failed by a vote of 2:3 with Council Members Sniff/Henderson and
Mayor Adolph dissenting.
I
3. CONSIDERATION OF A REQUEST FOR AN EXTENSION FOR THE TIME
COMPLETION OF OFFSlTE IMPROVEMENTS FOR TRACT MAP 31798,
WATERMARK VILLAS, WATERMARK GRANITE LA QUINTA, LLC.
Public Works Director Jonasson presented the staff report.
in response to Mayor Adolph, Public Works Director Jonasson stated staff
has( not been able to meet with the applicant and explained they conditioned
the, perimeter improvements based on the updating of their permit free of
charge.
In response to Council Member Henderson, Public Works Director Jonasson,
explained the applicant has asked for a waiver of fees to bring their building
permits current; stated the permits will be subject to new codes effective
January 1, 2008, and has requested the City to expedite the plan check
process to avoid implementing new codes.
Pete Bolicke, 1 282 Oaks Drive, Escondido, stated Innovative Communities
have come before the Council regarding this issue in delaying the project;
stated they have been diligently working with the primary lender - and have
contie to an agreement with the finance company to fund a C loan which
should take place at the end of September; explained part of the funding
source will enable Innovative Communities to complete the project; stated it
is d mutual goal to bring this project back up; explained the plan check
process has prolonged the project; and requested the support of the City to
expedite the completion of the project.
470
CA
L
E
N
D
A
R
C
I
T
Y
O
F
L
A
Q
U
I
N
T
A
DEPARTMENT REPORT: 3
471
472
473
474
COMMUNITY DEVELOPMENT DEPARTMENT
Building Code Compliance/Animal Control Housing Planning
CUSTOMER CENTER
The Community Development Department represents one of six City departments. The hub
of the department is the Customer Center. The Customer Center provides all development
related services in one location including building permits, building inspections, housing
services, plan checking, planning permits, and other general permit services. The
Community Development Department consists of the Planning, Housing, Building, Animal
Control, and Code Compliance Services.
1434
Total Customers Served
1922
Phone Calls Received
597
Total Applied Permits
114
Total eTRAKiT Permits
1,348
Total Issued Permits
and Licenses
46
Projects Applied For
24
Projects Approved
The Customer Center serves as a one-stop shop for La Quinta residents. It is the central location for
obtaining permits for planning, building, engineering, garage sales, and special events. The
Customer Center assists customers through the permitting process from initial questions and pre-
application meetings through inspections and final certificate of occupancy.
OCTOBER & NOVEMBER 2015 MOCTOBER & NOVEMBER 2015 M ETRICSETRICS
CCOMMUNITYOMMUNITY DDEVELOPMENTEVELOPMENT DDEPARTMENTEPARTMENT
OCTOBER & NOVEMBER 2015 OCTOBER & NOVEMBER 2015
DEPARTMENT REPORT: 4A
475
COMMUNITY DEVELOPMENT DEPARTMENT
Building Code Compliance/Animal Control Housing Planning
P L A N N I N G
B U I L D I N G
The Building Division administers all building permit applications and plans for
compliance with requirements established in the entitlement process, La Quinta
Municipal Code, and all currently applicable California Building Standards Codes.
The Planning Division works with residential and commercial property/business owners
and developers to ensure development in the City is constructed consistent with the
City’s goals and policies.
Administrative Permits
Includes sign applications, temporary use
permits, minor use permits, final
landscaping plans, etc.
Entitlement Permits
Includes site development permits,
conditional use permits, subdivision
maps, etc.
Building Permits Submitted
Year 2015 2014
October
182 149
Year To Date 2,212 1,869
October
eTRAKiT
16 0
November 143 171
November
eTRAKiT
14 0
Building Permits Issued
Year 2015 2014
October
209 190
Year To Date 2,067 1,699
October
eTRAKiT
17 0
November 136 129
November
eTRAKiT
120 0
Building Inspections
Year 2015 2014
October
1034 605
Year To Date
9,700* 5,322
*Inspection totals from 2015
reflect total amount of individual
inspections performed versus
2014 totals, which indicate the
amount of inspection sites visited.
November 856 507
Year 2015 2014
October 3 26
Year To Date 80 170
Submitted Applications
November 4 17
Year 2015 2014
October 3 1
Year To Date 178 22
Submitted Applications
November 6 0
476
COMMUNITY DEVELOPMENT DEPARTMENT
Building Code Compliance/Animal Control Housing Planning
Code Compliance
The Code Compliance Division addresses numerous issues including abandoned vehicles,
property maintenance, health & safety, building code compliance, zoning, substandard
housing, and other topics that can have an adverse impact on residential and commercial
neighborhoods in the City.
A N I M A L C O N T R O L /
C
O D E C O M P L A I N C E
Animal Control
The Animal Control Division provides field services responding to reports of stray, lost/found,
and injured animals in distress and transports them for medical treatment and shelter when
needed, seven days a week.
432 Active Cases 26 Completed Code Inspections (Includes Home Occupation and Pool Draining Inspections)
CODE COMPLIANCE ACTIVITY
223 Active Cases
7 Dog Bite Incidents
ANIMAL CONTROL ACTIVITY
Year 2015 2014
October 85 78
Year To Date 1,082 966
Open Cases
November 93 78
Year 2015 2014
October 86 71
Year To Date 1,039 943
Closed Cases
November 79 75
Year 2015 2014
October 84 137
Year To Date 1,103 1,926
Open Cases
November 87 166
Year 2015 2014
October 76 151
Year To Date 1,133 1,828
Closed Cases
November 119 129
477
478
4B
479
480
Sept
29
Preliminary
meeting
held
between
Martin
Dolemo
and City
staff
Oct
9
Tickets
for
event
on sale
Oct 13
Martin
Dolemo
Submits
TUP
application
Oct 20
Letter Sent
to Mr.
Dolemo
identifying
missing
plans
Dec 1
Deadline to
Submit Site Plan,
Parking Plan,
Traffic Control
Plan, Tenant
Improvment Plans,
Noise Control Plan,
Trash Reduction
Plan, Operations
Plan. Site plan and
grading plans shall
also be submitted
for any remote
temporary parking
area.
Jan 5
4-5
week
review
process
for
grading
and PM
10 plans
for
temp.
remote
parking
Jan 15
Obtain
Building
Permit
Feb 29
Approved
public
safety plan
and
staffing
deposit
required
by Police
March
1
Provide
$25,000
deposit to
the City
of La
Quinta
April
1-7
Final Bldg
Inspections ,
Certificate
of
Occupancy,
Issuance of
TUP
April
14-17,
21-24,
28-
May1
CV
Wind
Up
2015 2016
*Fire Department
time frames to be
determined when
plans are submitted
to the Building
Division
Deadline
Satisfied New
dates
Proposed
ATTACHMENT 1
481
482
4C
483
484
City of La Quinta
CITY COUNCIL MEETING: July 21, 2015
STAFF REPORT
AGENDA TITLE: PROPOSED DEVELOPMENT CODE TUNE UP
RECOMMEDATION
Discuss status of the proposed development code tune up and provide direction.
EXECUTIVE SUMMARY
City Council has requested review of the City’s development code (‘‘code’’) to identify
measures to modernize and improve the permitting process.
The code identifies the procedures and processes for development approvals, and
determines the level of review by the Community Development Director, Planning
Commission and/or City Council.
Staff is proposing that a Project Action Team (PAT) and an Ad-hoc Committee be
formed to identify improvements with the permitting process. The schedule would
commence on August 13 and run through January 2016.
Final recommendations would be presented to the Architectural & Landscape Review
Board, Planning Commission and City Council.
FISCAL IMPACT
No immediate fiscal impact is anticipated from this effort.
BACKGROUND
City Council wishes to evaluate the current code and identify ways to streamline the
review of development applications. As a result, a code ‘‘tune up’’ is proposed. The code
establishes the development approvals procedures, and identifies standards and
permitted land uses. It also identifies the approvals that are reviewed by the Community
Development Director, Planning Commission and/or City Council.
Over the last year, improvements have been made to the permitting process via new
permit tracking software and the new customer center. Both have resulted in a more
timely and efficient permit review process. Additional efforts are underway to fully
implement the features of the permit tracking software, which will provide even greater
opportunities and reduce permit-processing time.
The next step entails ‘‘tuning up’’ municipal code standards and procedures that have
existed for a number of years, some since incorporation in 1982. The opportunity to
STUDY SESSION ITEM NO.
ATTACHMENT 1
485
review these items is timely with respect to the aforementioned interests and recent
improvements, with the ultimate purpose of improving the effectiveness of the City’s land
use and development review process.
ANALYSIS
City staff has identified the following guiding principles for this tune-up:
Flexible --- A code that is flexible and achieves all legal requirements for land use and
development permit applications while not hampering the ability to facilitate quality
development and high service standards.
Smart --- A code that contains everything it should and nothing it should not; that is
easy to understand and allows property owners and developers to effectively manage
their development projects. The application review and approval criteria must allow
for an appropriate amount of analysis and discretion consistent with the project’s
required level of review.
Local --- A code that provides for meaningful public involvement in a way that reflects
La Quinta’s character and results in development consistent with the General Plan.
Based upon these guiding principles, staff has identified the following as integral
components to the tune up effort:
Project Action Team (PAT): Assemble key City staff, including representatives from the
Building, Public Works and Planning Divisions, to inventory current permitting
procedures and define key issues and concerns relevant to improving the permitting
process. The PAT will also be responsible for assessing progress of the permitting
process on a periodic basis.
Ad-Hoc Committee: This committee will assist City staff in identifying issues, receiving
feedback and providing recommendations. The Ad-Hoc Committee will consist of two
City Council members, two Planning Commissioners and one Architecture and
Landscape Review Board member.
Outreach to stakeholders: An outreach plan consisting of an on-line survey,
community/stakeholder meeting(s), and learning conversations with recent
customers. The PAT will facilitate the outreach activities with the results presented to
the Ad-Hoc Committee for review.
Development Code review: The PAT will review the code and prepare
recommendations for improving procedures and code provisions based on the
information and feedback received from outreach activities and the Ad-Hoc
Committee.
Customer service goals: The PAT will identify customer service goals that would guide
the streamlining process and establish measurable metrics for permitting activities.
486
Expedited review process: The PAT will evaluate an expedited entitlement application
review process that relies upon consultant or contractor staff resources at the
applicant’s expense.
Research permitting process: The PAT will investigate best practices used by others
that can be applied to the City’s processes. Results will be shared with the Ad-Hoc
Committee and included in the final recommendations.
Recommend Code Tune Up: Code modification recommendations will be presented to
the Architectural & Landscape Review Board, Planning Commission and City Council
for review and consideration. An implementation plan and timetable will be included.
The following is a proposed schedule:
August 13 --- PAT kick-off meeting
September 10 - First Ad-Hoc Committee meeting
September 14 - October 9 --- Community outreach
October 29 --- Second Ad-Hoc Committee meeting
November 19 --- Final Ad-Hoc Committee meeting*
December through January 2016 - Presentations to Architectural & Landscape
Review Board, Planning Commission and City Council
*Additional Ad-Hoc meetings may occur, if deemed necessary.
A streamlined permitting process enhances the customer service experience and
encourages economic investment. A code that is flexible, smart and local will ensure the
City’s processes are responsive to our customers’ needs, and convey the message that
the City of La Quinta is the place to do business.
Report prepared by: Les Johnson, Community Development Director
Report approved by: Frank J. Spevacek, City Manager
487
488
4D
489
490
ATTACHMENT 1
491
492
493
494
495
496
City of La Quinta
CITY COUNCIL MEETING
DEPARTMENT REPORT
TO: Madame Mayor and Members of the City Council
FROM: Edie Hylton, Deputy City Manager
DATE: December 15, 2015
SUBJECT: COMMUNITY SERVICES REPORT – NOVEMBER 2015
Upcoming events of the Community Services Department for January 2016:
Daily Activities Social Bridge
Duplicate Bridge
Mah Jongg
Advance Ukulele
Chair Massage and Sample
Vitamin B-12 Injections
Events January Luncheon
Fitness Morning Workout
Mat Pilates
Chair Exercise
Sunset Yoga
PiYo (Pilates Yoga)
Tai Chi Balance and Strength
Tai Chi Chuan
Tai Chi Intermediate
Advanced Tai Chi
HIIT (High Intensity Interval Training)
NIA the Workout
Yoga for Health
Chair Yoga
Personal Training
Gentle (Flex) and (Flow) Yoga
Mindful Movement
Zumba
DEPARTMENT REPORT ITEM NO. 5
497
Leisure La Quinta Glee (ages 7-14)
Ballroom Dance Beginning & Intermediate
Beginning Ballet 5-10 years.
Dance, Play and Pretend (ages 2.5-5)
Friday Night Social Dance
Italian for Everyone
Beginning Spanish
Beginning and Second Level Guitar
AARP Safe Driver
Line Dancing
Acrylic Painting
Beginning & Intermediate Bridge I
Sports/Aquatics Rojas Taekwondo
*Hikes with Philip Ferranti, Mecca Hills
*Nature Hike, Cove to Lake Cahuilla
*Rojas Martial Arts, La Quinta High School
*Open Gym (Volleyball/Basketball), B&G Club
*La Quinta Tennis Academy, Fritz Burns Park
*Y-Flag Football League, Sports Complex
*Denotes classes/events held at other locations
498
Program 2015 2014 Variance 2015 2014
Leisure Classes 170 93 77 66 40
Special Events 400 150 250 2 1
Sports 568 330 238 20 21
Wellness Center 367 103 264 96 29
Wellness Center (Free Services)631 219 412 85 16
Total 2,136 895 1,241 269 107
Wellness Center Fitness
Fitness Center 3,758 0 3,758 72 0
Total 3,758 0 3,758 72 0
Sports User Groups
La Quinta Park
AYSO 1400 1200 200 16 18
Desert Sands Harlequins 50 40 10 7 6
Desert Boot Camp 50 50 0 9 9
Sports Complex
La Quinta Youth & Sports 200 250 -50 17 19
PDLQ Football 130 150 -20 9 10
Colonel Mitchell Paige
AYSO 300 300 0 9 9
Friday Night Lights 500 400 100 10 11
Facility/Park Rentals
Wellness Center
(Private Party)200 0 200 1 0
(Sunday Church)375 375 0 5 5
Library
Classroom 600 1050 -450 12 21
Community Room 300 0 300 6 0
Museum
Meeting Room 820 450 370 13 7
Boys & Girls Club Gym
(Sunday Church)500 100 400 5 1
Volleyball Tournament 35 0 35 1 0
Civic Center Campus
(Private Party/ 5K Turkey Trot)550 50 500 2 1
Park Rentals
La Quinta Park 200 150 50 4 3
Fritz Burns Park/ tennis courts 100 250 -150 4 7
Total 6,310 4,815 1,495 130 127
Total Programs 12,204 5,710 6,494 471 234
Volunteer Hours
Wellness Center 145 32 113
Total Volunteer Hours 145 32 113
Community Services Department
Attendance Report for November 2015
Summary Sheet
Sessions Per Month
499
2015 2014 2015 2014
Participants Participants Variance Meetings Meetings
Leisure Classes *
La Quinta Glee 35 0 35 3 0
Dance, Play & Pretend 13 4 9 8 4
Beginning Computers 4 0 4 4 0
Italian for Everyone 5 0 5 4 0
Ballroom Dancing (Beg. & Interm.)34 0 34 4 0
Friday Night Dance 10 0 10 1 0
Taekwondo 4 - 8 (Beg.)19 20 -1 9 8
Taekwondo 4 - 8 (Inter.)21 23 -2 9 8
Taekwondo 9yrs-Up 10 16 -6 9 8
Rojas Martial Arts 4 - up 7 18 -11 9 8
CMP Library Program 12 12 0 6 4
Totals 170 93 77 66 40
2015 2014 2015 2014
Participants Participants Variance Meetings Meetings
Special Events
Veteran's Tribute 300 150 150 1 1
Fire Station Dedication 100 0 100 1 0
Totals 400 150 250 2 1
2015 2014 2015 2014
Participants Participants Variance Meetings Meetings
Sports
Open Gym Basketball 301 83 218 8 7
Open Gym Volleyball 184 127 57 8 7
Y Rookies Soccer 38 40 -2 2 3
Guided Hike w/Philip Ferranti 30 19 11 1 1
Nature Walk 15 14 1 1 1
Totals 568 283 285 20 19
Community Services Totals 1,138 526 612 88 60
*Wellness Center was closed for facility expansion at this time last year, and only a minimal
number of classes were relocated to other facilities.
Therefore, participation numbers in 2014 are significantly lower than this year.
Community Services Department
Program Report for November 2015
500
Participation Participation Variance Meetings Meetings
Fitness Center 2015 2014 2015 2014
Fitness Member Visits 3574 0 3574 24 0
Daily Fitness Drop-ins @ $5 64 0 64 24 0
Memberships Sold 120 0 120 24 0
Smart Keys @ $10 6 0 6 24 0
Fitness Center Total 3758 0 3758 72 0
Participation Participation Variance Meetings Meetings
2015 2014 2015 2014
Volunteers
Wellness Center 15 3 12 n/a n/a
Hours 145 32 113 n/a n/a
Participation Participation Variance Meetings Meetings
2015 2014 2015 2014
Wellness Activities/Social Services (Free)
Wellness Activities 631 219 412 85 16
Wellness Activities/Services Total 631 219 412 85 16
Participation Participation Variance Meetings Meetings
2015 2014 2015 2014
Wellness Classes/ Programs
Fitness
Flex, Flow, Chair, Health Yogas; HIIT & PiYo 49 14 35 27 3
Mat Pilates & Morning Workout 63 34 29 22 20
Tai Chi Classes 15 0 15 12 0
Leisure
Acrylic Painting & Sketch & Draw 12 0 12 7 0
Beg./Interm. Computer & Digital Camera 2 26 0 26 8
November Luncheon 63 0 63 1 0
Beg. Ukulele, Line Dance, & Fara's Food 23 0 23 10 0
Open Game Play
Bridge: Social & Duplicate 62 43 19 5 4
Mah Jongg 54 12 42 4 2
Wellness Classes/Programs Total 367 103 264 96 29
WELLNESS CENTER TOTAL 4756 322 4434 253 45
Wellness Center Program Report for November 2015
501
Monthly Revenue - Facility Rentals 2015 2014 Variance
Library 150.00$ 2,000.00$ (1,850.00)$
Museum 712.50$ 1,135.00$ (422.50)$
Wellness Center 2,679.00$ -$ 2,679.00$
Parks 905.00$ 665.00$ 240.00$
Sports Fields 1,725.00$ 1,432.50$ 292.50$
Monthly Facility Revenue 6,171.50$ 5,232.50$ 939.00$
Monthly Revenue
Wellness Center 4,472.00$ 1,262.00$ 3,210.00$
Fitness Memberships & Daily Passes & WC Keys 6,705.00$ -$ 6,705.00$
Community Services 4,763.50$ 3,819.00$ 944.50$
Total Revenue 15,940.50$ 5,081.00$ 10,859.50$
Revenue Year to Date
Facility Revenue 24,112.50$ 19,720.00$ 4,392.50$
Wellness Center 15,545.00$ 5,925.00$ 9,620.00$
Fitness Memberships & Daily Passes 33,030.00$ -$ 33,030.00$
Community Services 31,358.50$ 18,240.00$ 13,118.50$
Total Revenue to Date 104,046.00$ 43,885.00$ 60,161.00$
Community Services Department
Monthly Revenue Report for November 2015
502
City of La Quinta
CITY COUNCIL MEETING
DEPARTMENT REPORT
TO: Madame Mayor and Members of the City Council
FROM: Timothy R. Jonasson, P.E., Public Works Director/City Engineer
DATE: December 15, 2015
SUBJECT: PUBLIC WORKS DEPARTMENT REPORT – NOVEMBER 2015
1.For the month of November, the total for all maintenance expenditures
recorded in GORequest was $107,297 with traffic signals, debris/litter
removal/right-of-way maintenance, street sweeping, and irrigation/
weeds/shrub/tree trimming being among the highest tasks in terms of cost.
Public Works maintenance workers recorded 1,165 task hours associated with
this work. A detailed breakdown of tasks and associated costs is presented in
the attached pie chart (Attachment 1).
2.Residents continue to submit customer satisfaction surveys through the
GORequest system. The Public Works Department received nine surveys in the
month of November, with residents commenting on how staff handled reported
issues. Employees were rated on their response time, effectiveness, and
courtesy. A summary of responses is provided below and detailed surveys are
provided as Attachment 2:
100 percent of respondents rated Response Times as “Superior” or
“Good”
89 percent of respondents indicated “Exceeded” or “Met” under
Expectations Met
86 percent of respondents rated Employee Effectiveness as “Superior”
83 percent of respondents rated Employee Courtesy as “Superior”
Surveys also include positive feedback from residents such as: “REPORTED ISSUE OVER
THE WEEKEND AND BEFORE I LEFT FOR WORK ON MONDAY MORNING...He was finishing
up the repair on the Pothole...Thank YOU!!!” And, “The supervisor who arrived first was
very professional and sympathetic to the problem. The two workers he sent out were
great and quickly resolved an issue that had been unresolved for many years.”
3.The American Public Works Association Southern California Chapter hosted a
luncheon on December 9, 2015, in Lakewood, California, honoring the winners
of the 2015 Building Excellence Shaping Tomorrow (BEST) Awards for
outstanding public works projects, programs and leaders. The City’s Public
DEPARTMENT REPORT ITEM NO. 6
503
Works Department was awarded a BEST Award in the category of “Community
and School Outreach” for its Student Volunteer/Internship Program for the
seventh consecutive year. A presentation of the plaque is scheduled for the
City Council meeting on December 15, 2015.
4. The Sports Complex and YMCA Americans with Disabilities Act Improvements
Projects (Phases 1 and 2) are complete and are scheduled for Council
acceptance on December 15, 2015.
5. Work is complete, or substantially complete, on the following projects that are
scheduled for Council acceptance in January 2016:
La Quinta Library Parking Lot/Landscape Improvement Project
Monroe Street Rehabilitation Project
Washington Street Pavement Rehabilitation Project
6. Bids were opened on December 3, 2015, for the Miscellaneous Parks Americans
with Disabilities Act Improvements project, and a contract is anticipated to be
awarded to Roadway Engineering & Contracting, Inc. of Mira Loma, California.
7. The In-N-Out and Aldi Food Market project is about 50 percent complete, and
on-site construction continues at the various private development projects
including Andalusia, Griffin Ranch, Monterra, Signature, and Darby Estates.
Attachments: 1. Maintenance Expenditures by Task for November
2. Customer Satisfaction Survey Details for November
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y
e
e
:
J
a
m
e
s
L
i
n
d
s
e
y
C
u
s
t
o
m
e
r
:
D
a
v
e
H
i
n
k
l
e
De
s
c
r
i
p
t
i
o
n
:
W
e
j
u
s
t
c
o
n
v
e
r
t
e
d
o
u
r
f
r
o
n
t
l
a
w
n
t
o
d
e
s
e
r
t
l
a
n
d
sc
a
p
i
n
g
.
W
a
t
e
r
g
u
s
h
e
s
i
n
t
e
r
m
i
t
t
e
n
t
l
y
f
r
o
m
t
h
e
b
a
s
e
o
n
e
o
f
t
h
e
c
i
t
y
p
a
l
m
t
r
e
e
s
o
n
A
v
e
O
b
r
e
g
o
n
wa
s
h
i
n
g
a
w
a
y
t
h
e
d
e
c
o
m
p
o
s
e
d
g
r
a
n
i
t
e
.
T
h
e
w
a
t
e
r
i
s
n
o
t
c
o
m
i
n
g
f
r
o
m
ou
r
s
p
r
i
n
k
l
e
r
s
y
s
t
e
m
.
I
s
u
s
p
e
c
t
i
t
i
s
c
o
m
i
n
g
f
r
o
m
t
h
e
c
i
t
y
i
r
rigation line that
wa
s
o
r
p
e
r
h
a
p
s
s
t
i
l
l
i
s
u
s
e
d
t
o
w
a
t
e
r
t
h
e
p
a
l
m
t
r
e
e
s
o
n
A
v
e
O
b
r
e
g
o
n
.
Re
a
s
o
n
C
l
o
s
e
d
:
W
o
r
k
d
o
n
e
.
E
m
p
l
o
y
e
e
E
f
f
e
c
t
i
v
e
n
e
s
s
:
S
u
p
e
r
i
o
r
R
e
s
p
o
n
s
e
T
i
m
e
s
:
S
u
p
e
r
i
o
r
E
m
p
l
o
y
e
e
C
o
u
r
t
e
s
y
:
S
u
p
e
r
i
o
r
E
x
p
e
c
t
a
t
i
o
n
s
M
e
t
:
E
x
c
e
e
d
e
d
C
o
m
m
e
n
t
s
:
T
h
e
s
u
p
e
r
v
i
s
o
r
w
h
o
a
r
r
i
v
e
d
f
i
r
s
t
w
a
s
v
e
r
y
p
r
o
f
e
s
s
i
on
a
l
a
n
d
s
y
m
p
a
t
h
e
t
i
c
t
o
t
h
e
p
r
o
b
l
e
m
.
T
h
e
t
w
o
w
o
r
k
e
r
s
h
e
s
e
n
t
o
u
t
were great and quickly
re
s
o
l
v
e
d
a
n
i
s
s
u
e
t
h
a
t
h
a
d
b
e
e
n
u
n
r
e
s
o
l
v
e
d
f
o
r
m
a
n
y
y
e
a
r
s
.
ATTACHMENT 2 507
Re
q
u
e
s
t
:
1
6
8
9
4
Su
r
v
e
y
E
n
t
e
r
e
d
:
1
1
-
1
0
-
2
0
1
5
R
e
q
u
e
s
t
E
n
t
e
r
e
d
:
1
0
/
2
2
/
2
0
1
5
C
l
o
s
e
d
:
1
1
/
0
3
/
2
0
1
5
D
a
y
s
O
p
e
n
:
1
2
To
p
i
c
:
I
r
r
i
g
a
t
i
o
n
/
W
e
e
d
s
/
S
h
r
u
b
/
T
r
e
e
T
r
i
m
m
i
n
g
-
1
0
4
0
Em
p
l
o
y
e
e
:
J
a
m
e
s
L
i
n
d
s
e
y
C
u
s
t
o
m
e
r
:
R
o
b
e
r
t
C
o
u
r
t
i
n
g
De
s
c
r
i
p
t
i
o
n
:
T
h
e
r
e
i
s
a
t
r
e
e
t
r
u
n
k
(
a
p
p
a
r
e
n
t
l
y
b
e
l
o
n
g
i
n
g
t
o
t
h
i
s
a
d
d
r
e
s
s
)
o
v
e
r
h
a
n
g
i
n
g
C
a
l
l
e
N
o
g
a
l
e
s
t
h
a
t
i
s
a
h
a
z
a
r
d
t
o
v
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h
i
c
l
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o
f
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e
i
g
h
t
h
i
g
h
e
r
t
h
a
n
a
s
e
d
a
n
.
Pl
e
a
s
e
c
h
e
c
k
t
h
i
s
o
u
t
f
o
r
a
n
y
d
a
n
g
e
r
t
o
d
r
i
v
e
r
s
c
r
e
w
r
e
m
o
ve
d
t
r
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e
h
a
n
g
i
n
g
o
u
t
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n
t
o
s
t
r
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e
t
w
i
t
h
o
k
f
r
o
m
r
e
s
i
d
e
n
t
s
.
Re
a
s
o
n
C
l
o
s
e
d
:
c
o
m
p
l
e
t
e
d
.
E
m
p
l
o
y
e
e
E
f
f
e
c
t
i
v
e
n
e
s
s
:
S
u
p
e
r
i
o
r
R
e
s
p
o
n
s
e
T
i
m
e
s
:
G
o
o
d
E
m
p
l
o
y
e
e
C
o
u
r
t
e
s
y
:
N
/
A
E
x
p
e
c
t
a
t
i
o
n
s
M
e
t
:
E
x
c
e
e
d
e
d
C
o
m
m
e
n
t
s
:
e
f
f
f
i
c
i
e
n
t
w
i
t
h
o
u
t
n
e
e
d
f
o
r
f
u
r
t
h
e
r
q
u
e
s
t
i
o
n
s
Re
q
u
e
s
t
:
1
6
9
7
7
Su
r
v
e
y
E
n
t
e
r
e
d
:
1
1
-
0
6
-
2
0
1
5
R
e
q
u
e
s
t
E
n
t
e
r
e
d
:
1
0
/
2
8
/
2
0
1
5
C
l
o
s
e
d
:
1
0
/
3
0
/
2
0
1
5
D
a
y
s
O
p
e
n
:
2
To
p
i
c
:
I
r
r
i
g
a
t
i
o
n
/
W
e
e
d
s
/
S
h
r
u
b
/
T
r
e
e
T
r
i
m
m
i
n
g
-
1
0
4
0
Em
p
l
o
y
e
e
:
J
a
m
e
s
L
i
n
d
s
e
y
C
u
s
t
o
m
e
r
:
C
a
r
i
e
K
o
t
z
De
s
c
r
i
p
t
i
o
n
:
T
h
e
C
a
c
t
u
s
F
l
o
w
e
r
n
e
i
g
h
b
o
r
h
o
o
d
h
a
s
n
o
t
c
l
e
a
n
e
d
u
p
th
e
l
a
n
d
s
c
a
p
i
n
g
t
h
a
t
r
u
n
s
a
l
o
n
g
Fr
e
d
W
a
r
i
n
g
a
n
d
D
u
n
e
P
a
l
m
s
.
I
t
looks dumpy and unkept!
So
m
e
o
n
e
a
l
s
o
h
a
s
t
r
i
m
m
e
d
t
h
e
i
r
t
r
e
e
a
n
d
t
h
r
o
w
n
t
h
e
b
r
a
n
c
h
e
s
o
v
e
r
t
h
e
w
a
l
l
.
A
d
d
i
t
i
o
n
a
l
l
y
,
I
t
i
s
n
o
t
a
c
c
e
p
t
a
b
l
e
f
o
r
a
n
y
t
r
e
e
s
t
o
be hanging so low
th
a
t
y
o
u
c
a
n
n
o
t
r
i
d
e
y
o
u
r
b
i
k
e
u
n
d
e
r
n
e
a
t
h
t
h
e
m
w
i
t
h
y
o
u
r
c
h
i
l
d
r
e
n
.
T
h
i
s
s
e
e
m
s
t
o
b
e
t
h
e
c
a
s
e
a
l
l
a
r
o
u
n
d
N
o
r
t
h
L
a
Q
u
i
n
t
a
a
s
w
e
l
l
.
Re
a
s
o
n
C
l
o
s
e
d
:
W
o
r
k
d
o
n
e
.
E
m
p
l
o
y
e
e
E
f
f
e
c
t
i
v
e
n
e
s
s
:
S
u
p
e
r
i
o
r
R
e
s
p
o
n
s
e
T
i
m
e
s
:
S
u
p
e
r
i
o
r
E
m
p
l
o
y
e
e
C
o
u
r
t
e
s
y
:
S
u
p
e
r
i
o
r
E
x
p
e
c
t
a
t
i
o
n
s
M
e
t
:
M
e
t
Re
q
u
e
s
t
:
1
6
9
7
8
Su
r
v
e
y
E
n
t
e
r
e
d
:
1
1
-
0
4
-
2
0
1
5
R
e
q
u
e
s
t
E
n
t
e
r
e
d
:
1
0
/
2
8
/
2
0
1
5
C
l
o
s
e
d
:
1
0
/
2
8
/
2
0
1
5
D
a
y
s
O
p
e
n
:
0
To
p
i
c
:
S
t
o
r
m
D
r
a
i
n
R
e
p
a
i
r
a
n
d
M
a
i
n
t
-
1
0
2
3
Em
p
l
o
y
e
e
:
J
a
m
e
s
L
i
n
d
s
e
y
C
u
s
t
o
m
e
r
:
B
e
c
k
y
B
a
r
a
b
e
De
s
c
r
i
p
t
i
o
n
:
I
a
t
t
e
n
d
e
d
t
h
e
C
E
R
T
m
e
e
t
i
n
g
l
a
s
t
n
i
g
h
t
a
n
d
w
e
w
e
r
e
to
l
d
h
o
w
h
a
r
d
t
h
e
d
e
p
a
r
t
m
e
n
t
w
a
s
w
o
r
k
i
n
g
t
o
c
l
e
a
r
w
a
t
e
r
d
r
a
i
n
a
ge areas. I saw this in the
st
o
r
m
C
h
a
n
n
e
l
t
h
i
s
m
o
r
n
i
n
g
.
I
t
w
a
s
t
a
k
e
n
o
n
t
h
e
b
e
a
r
C
r
e
e
k
P
a
t
h
so
u
t
h
o
f
E
n
s
e
n
a
d
a
.
T
h
e
y
a
r
e
n
o
t
v
e
r
y
b
i
g
r
o
c
k
s
b
u
t
n
e
v
e
r
t
h
e
l
e
s
s
there quite a
fe
w
.
Re
a
s
o
n
C
l
o
s
e
d
:
T
h
i
s
i
s
a
C
o
a
c
h
e
l
l
a
V
a
l
l
e
y
W
a
t
e
r
D
i
s
t
r
i
c
t
(
C
V
W
D
)
w
a
t
e
r
s
h
e
d
a
r
e
a
,
m
a
i
n
t
a
i
n
e
d
b
y
C
V
W
D
.
W
e
c
o
o
r
d
i
n
a
t
e
d
a
n
d
l
e
t
t
h
em know about the rocks
an
d
y
o
u
r
c
o
n
c
e
r
n
s
.
E
m
p
l
o
y
e
e
E
f
f
e
c
t
i
v
e
n
e
s
s
:
N
/
A
R
e
s
p
o
n
s
e
T
i
m
e
s
:
S
u
p
e
r
i
o
r
E
m
p
l
o
y
e
e
C
o
u
r
t
e
s
y
:
N
/
A
E
x
p
e
c
t
a
t
i
o
n
s
M
e
t
:
M
e
t
C
o
m
m
e
n
t
s
:
T
h
a
n
k
s
f
o
r
y
o
u
r
a
t
t
e
n
t
i
o
n
.
508
Re
q
u
e
s
t
:
1
7
1
4
5
Su
r
v
e
y
E
n
t
e
r
e
d
:
1
1
-
1
7
-
2
0
1
5
R
e
q
u
e
s
t
E
n
t
e
r
e
d
:
1
1
/
0
7
/
2
0
1
5
C
l
o
s
e
d
:
1
1
/
1
0
/
2
0
1
5
D
a
y
s
O
p
e
n
:
3
To
p
i
c
:
P
o
t
h
o
l
e
o
r
S
t
r
e
e
t
R
e
p
a
i
r
-
1
0
0
1
Em
p
l
o
y
e
e
:
J
a
m
e
s
L
i
n
d
s
e
y
C
u
s
t
o
m
e
r
:
S
a
l
l
y
S
h
e
l
t
o
n
De
s
c
r
i
p
t
i
o
n
:
P
o
t
h
o
l
e
i
n
J
u
a
r
e
z
c
l
o
s
e
s
t
t
o
5
2
3
9
0
.
.
N
e
e
d
s
r
e
p
a
i
r
b
e
f
o
r
e
i
t
m
a
y
r
a
i
n
.
.
.
Re
a
s
o
n
C
l
o
s
e
d
:
C
o
m
p
l
e
t
e
d
:
f
i
l
l
e
d
p
o
t
h
o
l
e
E
m
p
l
o
y
e
e
E
f
f
e
c
t
i
v
e
n
e
s
s
:
S
u
p
e
r
i
o
r
R
e
s
p
o
n
s
e
T
i
m
e
s
:
S
u
p
e
r
i
o
r
E
m
p
l
o
y
e
e
C
o
u
r
t
e
s
y
:
S
u
p
e
r
i
o
r
E
x
p
e
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.
.
T
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a
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k
Y
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!
!
!
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1
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To
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p
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:
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a
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:
T
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m
a
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m
p
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p
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r
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Y
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g
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n
.
C
a
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l
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b
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c
a
p
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l
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k
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r
r
i
b
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on the perimeter. I don't
kn
o
w
w
h
o
m
a
i
n
t
a
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s
t
h
e
n
e
i
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b
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d
o
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u
p
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r
v
i
s
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s
t
h
e
l
a
n
d
s
c
a
p
i
ng
c
o
n
t
r
a
c
t
s
,
b
u
t
t
h
e
y
n
e
e
d
t
o
b
e
a
d
d
r
e
s
s
e
d
.
W
e
h
a
v
e
s
p
r
i
n
k
l
ers that just
wa
t
e
r
d
i
r
t
a
s
t
h
e
r
e
a
r
e
n
o
p
l
a
n
t
s
g
r
o
w
i
n
g
b
e
c
a
u
s
e
o
f
t
h
e
e
r
o
s
i
on
.
Y
o
u
m
u
s
t
a
l
s
o
d
u
c
k
u
n
d
e
r
a
n
o
v
e
r
g
r
o
w
n
t
r
e
e
a
t
F
r
e
d
W
a
r
i
n
g
a
n
d
Dune Palms if
yo
u
w
a
l
k
o
n
t
h
e
s
i
d
e
w
a
l
k
.
Re
a
s
o
n
C
l
o
s
e
d
:
A
d
j
u
s
t
e
d
s
p
r
i
n
k
l
e
r
s
,
c
l
ea
r
s
i
d
e
w
a
l
k
,
c
u
t
b
r
a
n
c
h
e
s
.
W
o
r
k
d
o
n
e
E
m
p
l
o
y
e
e
E
f
f
e
c
t
i
v
e
n
e
s
s
:
A
v
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r
a
g
e
R
e
s
p
o
n
s
e
T
i
m
e
s
:
G
o
o
d
E
m
p
l
o
y
e
e
C
o
u
r
t
e
s
y
:
A
v
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r
a
g
e
E
x
p
e
c
t
a
t
i
o
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s
M
e
t
:
B
e
l
o
w
C
o
m
m
e
n
t
s
:
T
h
e
c
i
t
y
r
e
s
p
o
n
d
e
d
p
r
o
m
p
t
l
y
t
o
m
y
e
m
a
i
l
c
o
m
p
l
a
i
n
t
an
d
t
h
e
y
r
e
s
p
o
n
d
e
d
q
u
i
c
k
l
y
t
o
t
a
k
e
c
a
r
e
o
f
p
a
r
t
o
f
t
h
e
c
o
m
p
l
a
i
n
t
.
I had to email again to
pi
n
p
o
i
n
t
w
h
a
t
I
w
a
s
r
e
f
e
r
r
i
n
g
t
o
.
B
u
t
i
f
t
h
e
l
a
n
d
s
c
a
p
i
n
g
c
o
n
t
r
a
ct
s
w
e
r
e
p
r
o
p
e
r
l
y
s
u
p
e
r
v
i
s
e
d
,
th
e
r
e
w
o
u
l
d
b
e
n
o
n
e
e
d
f
o
r
t
h
e
c
i
t
y to pay all the
ma
n
h
o
u
r
s
i
t
t
o
o
k
t
o
c
l
e
a
n
u
p
a
n
d
t
a
k
e
c
a
r
e
o
f
l
a
n
d
s
c
a
p
i
n
g
t
h
a
t
sh
o
u
l
d
b
e
m
a
i
n
t
a
i
n
e
d
o
n
a
r
e
g
u
l
a
r
b
a
s
i
s
.
I
t
t
o
o
k
o
v
e
r
3
d
a
y
s
t
o
trim back and
cl
e
a
n
u
p
t
h
e
m
e
s
s
.
P
r
o
p
e
r
w
e
e
k
l
y
a
n
d
m
o
n
t
h
l
y
m
a
in
t
e
n
a
n
c
e
w
o
u
l
d
e
l
i
m
i
n
a
t
e
s
o
m
e
o
f
t
h
i
s
pr
o
b
l
e
m
.
D
o
n
'
t
w
a
i
t
f
o
r
t
h
e
c
o
m
p
l
a
i
n
t
s
t
o
care for
pr
o
p
e
r
t
y
i
f
y
o
u
t
h
i
n
k
t
h
e
c
i
t
y
i
s
"
t
h
e
g
e
m
o
f
t
h
e
d
e
s
e
r
t
"
.
509
510
Reports/Informational Items: ______________
Report to La Quinta City Council
Palm Springs International Airport Commission Meeting
November 18, 2015
Finance: Revenue and expenses are tracking according to plan. This was helped by
an 8% increase in rental car fees. Unrestricted cash is up $300,000, keeping us on
track to meet our target of $6 million by year-end.
Passenger Activity: October’s passenger activity was down 3.3%, but year-to-date is
down by only 0.6%. One of the significant causes of the lower activities is that United
Airlines got rid of all their short-haul turboprop aircraft: using the new, larger jets has
reduced the frequency of flights.
General Observations:
1.The new rotating door for arrivals is complete; increasing security, and
reducing energy costs.
2.Avis car rentals has opted to move their counter to a larger space that had
been vacated by USO. The Commission approved a 3-year lease that
increases the space by 130 sq. ft. at $3.90/sq. ft.
Note: in addition to counter space rent, car agencies pay the airport 10% of
their gross, fees for the “ready” spaces, and daily rent for nearby parking
spaces.
3.BUZZ: The City of Palm Springs renewed the local shopping bus service,
therefore, the Commission agreed to extend the BUZZ’s lease on a parking
area for 1 year with 2 optional extensions. This will account for $22,900 in
2016, with CPI increases. The agreement is cancellable by the Airport with 30
days notice.
4.The new escalators are installed, with an expected life of 10-15 years. Many
parts are plastic, and can be easily replaced.
5.The budgeting process for FY2016-17 will begin in January.
Marketing Committee: Following the Commission meeting, we held a meeting of the
Marketing Committee (of which I am a member). The Committee had extensive
discussions and debate on the merits and costs of the Airline Incentive program. It
began in 2010, and the balance is now down to $200k. After discussion, we agreed to
supplement it with $250k, and to work on finding alternate sources of capital.
Submitted: _________________________
Robert G. Teal, Commissioner
Palm Springs International Airport
Email: bob@teal.us.com
Phone: 760-899-4171
22
511
512