2025 02 12 FAC MinutesFINANCIAL ADVISORY COMMISSION
MINUTES
WEDNESDAY, FEBRUARY 12, 2025
CALL TO ORDER
A regular quarterly meeting of the La Quinta Financial Advisory Commission
(Commission) was called to order at 3:32 p.m. by Chair Dorsey.
PRESENT: Commissioners Anderson, Batavick (joined the meeting at 3:58 p.m.), Kiehl,
Lee, Mast, Way, and Chair Dorsey
ABSENT: None
PLEDGE OF ALLEGIANCE
Commissioner Way led the audience in the Pledge of Allegiance.
PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA — None
CONFIRMATION OF AGENDA — Confirmed
ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS
1. EXPANDING LA QUINTA'S ELECTRICAL CAPACITY UPDATE
City Manager McMillen provided a detailed overview of Imperial Irrigation District's (IID)
electric supply and delivery system to the Coachella Valley, and specifically, electric
capacity conditions and needs in La Quinta as IID's power distribution substations have
reached or are nearing capacity and require upgrades to support existing customers and
new developments.
Mr. McMillen noted the City is actively collaborating with IID and developers to establish
cost -sharing funding options for new substations to provide power capacity for the future
and ensure reimbursement of City investments; the importance to initiate substation
upgrades now due to 3-to-4-year lead times for new transformers and switch gear; new
developments in La Quinta continue to face challenges with power availability; and the
regional efforts to establish the proposed Coachella Valley Power Agency (CVPA) Joint
Powers Agreement (JPA) to establish long-term solutions and allow greater control over
energy distribution and planning.
COMMISSIONER BATAVICK JOINED THE MEETING AT 3:58 P.M.
The Commission discussed the details of a "stand-alone" power provider; the estimated
cost for the City to purchase the long -lead time equipment; building in an escalator to
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recoup from developers, the lost interest on funds fronted by the City; the City of Indio
established the Indio Electric Financing Authority pursuant to a Joint Exercise of Powers
Agreement in 2023 and imposed a surcharge for electric services; the complexity and
time involved in creating and operating a CVPA among multiple cities and agencies; how
the JPA voting on provision of electricity to new projects would be handled and projects
prioritized; proposed locations for new substations; commitments needed prior to placing
orders for the long-lead time equipment; the ability of the proposed JPA to include a
surcharge to existing rate payers to cover the unanticipated additional capacity they
consume; the option now, and in the future, to obtain power from other electric companies
such as Southern California Edison (Edison); the inability of solar power to provide the
solution; the current threat of outages and brown-outs due to substations operating in
excess of capacity; the failure of the green energy policy of the State; the importance for
La Quinta to be aggressive on this issue for its residents; nuclear energy as an important
part of the future solution; the dimensions of a substation; the timeline for buying power
from sources other than IID; source of California’s energy being from Utah coal plants;
inefficiency of solar farms in producing sufficient energy; the initial purpose of IID as a
water company, and the obstacles farmers in the east Coachella Valley currently face;
exploring the possibility of Coachella Valley Water District (CVWD) becoming a power
provider in the future; Edison’s interest/capacity to provide La Quinta’s power; and
support for the use of Measure G reserves to move forward in solving power needs
provided reimbursement is ensured.
CONSENT CALENDAR ITEMS
1. RECEIVE AND FILE SPECIAL MEETING MINUTES DATED DECEMBER 4,
2024
2. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED
OCTOBER 31, 2024
3. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED
NOVEMBER 30, 2024
MOTION – A motion was made and seconded by Commissioners Batavick/Mast to
approve the Consent Calendar as presented. Motion passed unanimously.
BUSINESS SESSION
1. RECEIVE AND FILE FISCAL YEAR 2023/24 GENERAL FUND YEAR-END
BUDGET REPORT
Finance Director Martinez presented the staff report, which is on file in the Finance
Department.
The Commission discussed the dollar amount of the multi-year capital improvements
carry-overs; how multi-year projects are budgeted; details on carry-overs on Schedule C
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of the budget report and providing additional explanation; the importance of the ten-year
projections; creating an assignment category for IID equipment; planning for future
economic uncertainties and disasters; and the critical issue for La Quinta’s maintenance
and growth is electrical capacity, and support for using Measure G reserves to facilitate
efforts moving forward.
COMMISSIONER WAY LEFT THE MEETING AT 4:52 P.M.
MOTION – A motion was made and seconded by Commissioners Batavick/Kiehl to
receive and file fiscal year 2023/24 General Fund Year-End Budget Report as presented.
Motion passed: ayes – 6, noes – 0, abstain – 0, absent – 1 (Way).
STUDY SESSION – None
DEPARTMENTAL REPORTS
1.FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES
Finance Director Martinez announced that Rosemary Hallick, La Quinta’s Principal
Management Analyst, was appointed to the California Asset Management Program
(CAMP) Board of Trustees, the Joint Powers Authority for Finance Officers and
Treasurers of California public agencies for investments, meaning La Quinta will now
have a representative in decisions at that higher level.
Finance Director Martinez reported on the transition to the new audit firm; the ten-year
projection task force; software updates; financial statement training; various ongoing City
updates, including the timeline for Federal Emergency Management Agency
reimbursements for tropical storm Hilary; and upcoming events.
2. THIRD QUARTER 2024 (JULY-SEPT) SALES TAX UPDATE
Principal Management Analyst Hallick presented the departmental report, which is on file
in the Finance Department. The report highlighted a decline in sales tax revenue,
attributed to decreased consumer spending. Staff continue to monitor economic trends
and maintain proactive budget management.
COMMISSIONERS’ ITEMS
Commissioner Keihl explained incentives for business improvements may be timely; the
City could consider these types of programs to assist businesses with major remodels,
upgrades, etc. for hotels and other businesses, potentially using Measure G reserves
starting a year from now; suggested funding more road improvements; and suggested
including incentives in the road improvement requests for proposals for bidders that agree
to avoid disruption by working around event schedules, and busy times of day/seasons.
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Staff noted in recent years the City has increased spendings on its annual infrastructure
improvement projects.
ADJOURNMENT
There being no further business, it was moved and seconded by Commissioners
Mast/Anderson to adjourn this meeting at 5:30 p.m. Motion passed: ayes – 6, noes – 0,
abstain – 0, absent – 1 (Way).
Respectfully submitted,
Amanda Guerrero, Temporary Administrative Technician
City of La Quinta, California