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2024 11 13 FAC Minutes FINANCIAL ADVISORY COMMISSION Page 1 of 4 NOVEMBER 13, 2024 MINUTES FINANCIAL ADVISORY COMMISSION MINUTES WEDNESDAY, NOVEMBER 13, 2024 CALL TO ORDER A regular quarterly meeting of the La Quinta Financial Advisory Commission (Commission) was called to order at 3:31 p.m. by Chair Dorsey. PRESENT: Commissioners Anderson, Batavick, Kiehl, Lee, Mast, Way (joined the meeting at 3:36 p.m.), and Chair Dorsey ABSENT: None PLEDGE OF ALLEGIANCE Commissioner Anderson led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA PUBLIC SPEAKER: Phillip Bettencourt, La Quinta – said he served on the La Quinta Planning Commission, and currently serves on the Imperial Irrigation District (IID) Coachella Valley Energy Commission (CVEC) as the at-large appointed representative for the Coachella Valley; said he is actively trying to stay informed on the energy provider and power infrastructure needs, availability, and funding matters concerning La Quinta; provided the Commission with a summary on upcoming meetings of the IID CVEC, the Vista Santa Rosa Community Council, and City Council which included energy power related items and services; and thanked the Commission for their service. CONFIRMATION OF AGENDA – Confirmed ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS 1. ARTS AND MUSIC LINE PROJECT UPDATE – PRESENTATION BY COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS (CVAG) ASSISTANT DIRECTOR OF TRANSPORTATION RANDY BOWMAN PRESENTER: CVAG Assistant Director of Transportation Bowman provided a presentation on the anticipated timeline to complete the design, obtain public agencies approvals, bid, award, construct, and educational program efforts of the Arts and Music Line project, an approximately 9-mile community connector to the CV Link and key destinations, such as schools, affordable housing, retail and employment centers, which will run along Avenue 48 through the Cities of La Quinta, Indio, Coachella, and Riverside County, from Washington Street to the Whitewater Channel, and another 6-miles of side streets. FINANCIAL ADVISORY COMMISSION Page 2 of 4 NOVEMBER 13, 2024 MINUTES PRESENTER: CVAG Transportation Program Manager Julie Mignogna provided an update on public engagement, outreach, and the education efforts regarding the project; and noted CVAG’s collaborations with community organizations to educate the public on using multi-modal alternative transportation facilities. Mr. Bowman also provided an update on the status of the CV Link regional trail project, a 50-mile multi-modal transportation project under construction for bicyclists, pedestrians, and low speed electric vehicles, that will run continuously throughout the Coachella Valley cities, from Desert Hot Springs to Coachella. The Commission discussed that although grant funds were received to fund the large majority of the Art and Music Line project, grant funds are generated via public tax collections, thus, the project is tax-funded; annual maintenance costs and responsibilities; usage, features, safety, and estimated costs and timeline of the project; importance of public outreach and educational efforts; and was pleased to see it connecting to schools and providing a safe path of travel for children. COMMISSIONER WAY JOINED THE MEETING AT 3:36 P.M. CONSENT CALENDAR ITEMS 1. RECEIVE AND FILE SPECIAL MEETING MINUTES DATED OCTOBER 2, 2024 2. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED AUGUST 31, 2024 3. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED SEPTEMBER 30, 2024 MOTION – A motion was made and seconded by Commissioners Way/Anderson to approve the Consent Calendar as presented. Motion passed unanimously. BUSINESS SESSION 1. APPROVE THE FINANCIAL ADVISORY COMMISSION SUBCOMMITTEE RECOMMENDATIONS ON FUNDING OUTSTANDING PENSION OBLIGATIONS AND REVISIONS TO THE GENERAL FUND BALANCE AND RESERVES POLICY (POLICY) FOR CITY COUNCIL CONSIDERATION Financial Services Analyst Hallick presented the staff report, which is on file in the Finance Department. FINANCIAL ADVISORY COMMISSION Page 3 of 4 NOVEMBER 13, 2024 MINUTES The Commission commended staff for their expertise and efforts in actively managing the City’s pension program; the delay in CalPERS reporting on the City’s pension funding levels and its effects on correctly estimating the City’s unfunded pension liability; establishing a minimum of 95% pension funding; and a 20% target for the trust fund. The Commission reached a consensus to change the language under Section V – City’s Reserve Categories and Targets, subsection (E) – Pension Stabilization Fund, to state “… 100% or more funded status when taking into consideration the trust balance…”, listed on page 3 of Policy, or page 31 of the agenda packet. MOTION – A motion was made and seconded by Commissioners Way/Kiehl to approve the Commission’s Subcommittee recommendations on funding outstanding pension obligations and revisions to the General Fund Balance and Reserves Policy for Council consideration, as amended to include the language addition noted in the Commission’s discussion above. Motion passed unanimously. STUDY SESSION – None DEPARTMENTAL REPORTS 1. FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES Finance Director Martinez presented the departmental report, which is on file in the Finance Department, and provided an update on current and upcoming Finance Department projects, current audits, and upcoming City events. 2. SECOND QUARTER 2024 (APRIL-JUNE) SALES TAX UPDATE Financial Services Analyst Hallick presented the departmental report, which is on file in the Finance Department. The Commission discussed the importance of sales tax consultants, the City’s being HDL Companies (HDL), and errors in reporting they discover and the funds they recover; and sales tax projections and trends. COMMISSIONERS’ ITEMS Commissioner Kiehl requested clarification from the City Attorney on the City’s role in facilitating and financing the construction and maintenance of energy power distribution substations, specifically whether it is permissive or required, funding options, and cautioned about setting a precedent. Staff said these efforts are led by the City Manager in coordination with the City Attorney and if any updates are provided to Council, staff will inform the Commission. FINANCIAL ADVISORY COMMISSION Page 4 of 4 NOVEMBER 13, 2024 MINUTES ADJOURNMENT There being no further business, it was moved and seconded by Commissioners Batavick/Anderson to adjourn this meeting at 5:00 p.m. Motion passed unanimously. Respectfully submitted, Amanda Guerrero, Temporary Administrative Technician City of La Quinta, California