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2026 03 17 Council
CITY COUNCIL AGENDA Page 1 of 9 MARCH 17, 2026 CITY COUNCIL AGENDA CITY HALL COUNCIL CHAMBER 78495 Calle Tampico, La Quinta REGULAR MEETING ON TUESDAY, MARCH 17, 2026 3:30 P.M. CLOSED SESSION | 4:00 P.M. OPEN SESSION Members of the public may listen to this meeting by tuning-in live via www.laquintaca.gov/livemeetings; past meetings are available through the video archive via www.laquintaca.gov/pastmeetings Closed captions in English and Spanish are available to all users through this video streaming service. CALL TO ORDER ROLL CALL: Councilmembers: Fitzpatrick, McGarrey, Peña, Sanchez, and Mayor Evans PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA At this time, members of the public may address the City Council on any matter not listed on the agenda pursuant to the “Public Comments – Instructions” listed at the end of the agenda. 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 the Brown Act [Gov. Code § 54954.2(b)]. CONFIRMATION OF AGENDA CLOSED SESSION 1. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION; PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9; CASES NAMES AND NUMBERS – MULTIPLE (listed below, all in U.S. Bankruptcy Court, District of Delaware) CASE NAME: CASE NUMBER SilverRock Development Company, LLC 24-11647 SilverRock Lifestyle Residences, LLC 24-11648 SilverRock Lodging, LLC 24-11650 SilverRock Luxury Residences, LLC 24-11652 SilverRock Phase I, LLC 24-11654 RGC PA 789, LLC 24-11657 City Council agendas and staff reports are available on the City’s website at www.LaQuintaCA.gov/PublicMeetings CITY COUNCIL AGENDA Page 2 of 9 MARCH 17, 2026 2. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION; PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9; NAME OF CASE: CONSTRUCTION LOAN SERVICES II, LLC V. SILVERROCK DEVELOPMENT COMPANY, ET AL. (U.S. District Court, District of Delaware, CASE NO. 25-1342-CFC) 3. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION; PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9; NAME OF CASE: CITY OF LA QUINTA V. SILVERROCK DEVELOPMENT COMPANY, ET AL. (RIVERSIDE COUNTY SUP. CT. CASE NO. CVPS2404750) RECESS TO CLOSED SESSION RECONVENE AT 4:00 P.M. REPORT ON ACTION(S) TAKEN IN CLOSED SESSION PLEDGE OF ALLEGIANCE PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA At this time, members of the public may address the City Council on any matter not listed on the agenda pursuant to the “Public Comments – Instructions” listed at the end of the agenda. 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 the Brown Act [Gov. Code § 54954.2(b)]. ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS 1. SILVERROCK (FORMERLY TALUS) DEVELOPMENT PROJECT – STATUS UPDATE 2. IRONMAN 70.3 LA QUINTA TRIATHLON – DECEMBER 7, 2025, EVENT SUMMARY AND ECONOMIC REPORT BY EVENT OPERATIONS MANAGER MAX LITTLE 3. PROCLAMATION IN RECOGNITION OF GOVERNMENT FINANCE PROFESSIONALS WEEK – MARCH 23 – 27, 2026 CONSENT CALENDAR NOTE: Consent Calendar items are routine in nature and can be approved by one motion. PAGE 1. ADOPT RESOLUTION TO REAFFIRM ADOPTION OF ANNUAL ASSESSMENTS FOR COUNTY SERVICE AREA 152, AUTHORIZE RIVERSIDE COUNTY TO CONTINUE TO LEVY ASSESSMENTS, AND INDEMNIFY AND HOLD THE COUNTY HARMLESS FOR LEVYING ASSESSMENTS ON CITY PARCELS [RESOLUTION NO. 2026-003] 11 CITY COUNCIL AGENDA Page 3 of 9 MARCH 17, 2026 2. EXCUSE ABSENCES OF COMMISSIONER BIONDI FROM THE MARCH 9, 2026, ARTS AND COMMUNITY SERVICES COMMISSION QUARTERLY MEETING AND COMMISSIONERS HASSETT AND HUNDT FROM THE MARCH 10, 2026, PLANNING COMMISSION MEETING 17 3. AUTHORIZE OVERNIGHT TRAVEL FOR TWO COUNCILMEMBERS TO ATTEND THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY 2026 ELECTED OFFICIALS SUMMIT IN CHULA VISTA, CALIFORNIA, APRIL 29 – MAY 1, 2026 19 4. AUTHORIZE OVERNIGHT TRAVEL FOR ONE COUNCILMEMBER TO ATTEND THE LEAGUE OF CALIFORNIA CITIES PUBLIC SAFETY POLICY COMMITTEE MEETING IN COSTA MESA, CALIFORNIA, MARCH 27, 2026 21 5. AUTHORIZE OVERNIGHT TRAVEL FOR DESIGN AND DEVELOPMENT DEPARTMENT HUB MANAGER TO ATTEND TYLER CONNECT 2026 ANNUAL CONFERENCE IN LAS VEGAS, NEVADA, APRIL 7 – 10, 2026 23 6. ACCEPT OFF-SITE IMPROVEMENTS ASSOCIATED WITH THE OASIS RESIDENTIAL DEVELOPMENT, TRACT MAP NO. 32201, LOCATED AT THE NORTHWEST CORNER OF AVENUE 60 AND MADISON STREET 25 7. ACCEPT OFF-SITE AND ON-SITE IMPROVEMENTS ASSOCIATED WITH THE ESTATES AT POINT HAPPY RESIDENTIAL DEVELOPMENT, TRACT MAP NO. 31348, LOCATED SOUTH OF HIGHWAY 111 AND WEST OF WASHINGTON STREET 27 8. ACCEPT DUNE PALMS BRIDGE IMPROVEMENTS PROJECT NO. 2011-05, LOCATED ON DUNE PALMS ROAD AT THE COACHELLA VALLEY STORM WATER CHANNEL 31 9. APPROVE PURCHASE AND UPFITS OF 2026 CHEVROLET 2500 SILVERADO UTILITY BED WORK TRUCK WITH A LIFTGATE FROM PARADISE CHEVROLET CADILLAC, AND DECLARE CURRENT 2017 CHEVROLET 2500 SILVERADO UTILITY BED WORK TRUCK AS SURPLUS AND APPROVE DISPOSAL METHOD 35 10. APPROVE PLANS, SPECIFICATIONS, ENGINEER’S ESTIMATE, AND ADVERTISE FOR BID THE MILES AVENUE PAVEMENT REHABILITATION PROJECT NO. 2023-01 39 11. APPROVE THREE AGREEMENTS FOR CONTRACT SERVICES WITH (1) PACIFIC WEST INDUSTRIES, INC, (2) RIVCO MECHANICAL SERVICES, INC, AND (3) F.M. THOMAS AIR CONDITIONING, INC, FOR ON-CALL HEATING, VENTILATION, AND AIR CONDITIONING MAINTENANCE, REPAIR, AND REPLACEMENT 43 CITY COUNCIL AGENDA Page 4 of 9 MARCH 17, 2026 12. APPROVE AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT SERVICES WITH HR GREEN PACIFIC FOR ON-CALL PUBLIC WORKS DEVELOPMENT PLAN CHECK SERVICES 141 13. APPROVE AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES WITH DUDEK TO PROVIDE ADDITIONAL DESIGN SERVICES FOR THE CIVIC CENTER LAKE AND IRRIGATION CONVERSION PROJECT NO. 2016-06 147 14. APPROVE DEMAND REGISTERS DATED FEBRUARY 20 AND 27, 2026 155 BUSINESS SESSION PAGE 1. RECEIVE AND FILE FISCAL YEAR 2024/25 GENERAL FUND YEAR-END BUDGET REPORT AND APPROVE THE AMENDED BUDGET CARRYOVERS 169 2. RECEIVE AND FILE FISCAL YEAR 2025/26 MID-YEAR BUDGET REPORT, APPROVE THE RECOMMENDED BUDGET ADJUSTMENTS, AND ADOPT RESOLUTION TO ADD ENGINEERING SPECIALIST POSITION [RESOLUTION NO. 2026-004] 187 3. APPROVE AGREEMENT REGARDING INSUBSTANTIAL MODIFICATION TO DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF LA QUINTA AND CM WAVE DEVELOPMENT LLC RELATING TO DEVELOPMENT AGREEMENT 2023-1000 FOR THE CORAL MOUNTAIN CLUB PROJECT; LOCATION: SOUTH OF AVENUE 58, WEST OF MADISON STREET, AND NORTH OF AVENUE 60 199 4. INTRODUCE FOR FIRST READING AN ORDINANCE AMENDING CHAPTER 3.25 OF THE LA QUINTA MUNICIPAL CODE RELATED TO SHORT-TERM VACATION RENTALS [ORDINANCE NO. 631] 219 STUDY SESSION – None PUBLIC HEARINGS – 5:00 p.m. or thereafter For all Public Hearings on the agenda, a completed “Request to Speak” form must be filed with the City Clerk prior to consideration of that item; comments are limited to three (3) minutes (approximately 350 words). Any person may submit written comments to the City Council prior to the public hearing and/or may appear and be heard in support of or opposition to the project(s) at the time of the public hearing. If a project(s) is challenged in court, it may be limited to raising only those issues raised at the public hearing or in written correspondence delivered to the City at or prior to the public hearing. CITY COUNCIL AGENDA Page 5 of 9 MARCH 17, 2026 PAGE 1. ADOPT RESOLUTION TO APPROVE THE PROPERTY LOCATED AT 57600 CORAL MOUNTAIN COURT AS A QUALIFIED AND CERTIFIED LARGE LOT PURSUANT TO SECTION 3.25.057 OF THE LA QUINTA MUNICIPAL CODE [RESOLUTION NO. 2026-005] 233 DEPARTMENTAL REPORTS PAGE 1. CITY MANAGER 2. CITY ATTORNEY 3. CITY CLERK – SHORT-TERM VACATION RENTAL PROGRAM QUARTERLY REPORT – OCTOBER – DECEMBER 2025 327 4. COMMUNITY SERVICES 5. DESIGN AND DEVELOPMENT 6. FINANCE 7. PUBLIC SAFETY 8. PUBLIC WORKS MAYOR’S AND COUNCIL MEMBERS’ ITEMS REPORTS AND INFORMATIONAL ITEMS 1. ART PURCHASE COMMITTEE (McGarrey & Sanchez) 2. CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (Sanchez) 3. CANNABIS AD HOC COMMITTEE (Peña & Sanchez) 4. COACHELLA VALLEY ANIMAL CAMPUS COMMISSION (Sanchez) 5. COACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT (Peña) 6. COACHELLA VALLEY MOUNTAINS CONSERVANCY (McGarrey) 7. COACHELLA VALLEY POWER AGENCY (Evans) 8. COACHELLA VALLEY UNIFIED SCHOOL DISTRICT COMMITTEE (Fitzpatrick & Peña) 9. COACHELLA VALLEY WATER DISTRICT JOINT POLICY COMMITTEE (Evans) 10. COMMUNITY SERVICE GRANT REVIEW COMMITTEE (Fitzpatrick & McGarrey) 11. COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS: A) CONSERVATION COMMISSION (Evans) B) CONSERVATION COMMISSION LEGISLATIVE ADVISORY AD HOC COMMITTEE (Fitzpatrick) C) ENERGY AND SUSTAINABILITY RESOURCES COMMITTEE (Evans) D) EXECUTIVE COMMITTEE (Evans) E) HOMELESSNESS COMMITTEE (Peña) F) PUBLIC SAFETY COMMITTEE (Peña) G) TRANSPORTATION COMMITTEE (Fitzpatrick) 12. DESERT RECREATION DISTRICT COMMITTEE (Fitzpatrick & McGarrey) 13. DESERT SANDS UNIFIED SCHOOL DISTRICT COMMITTEE (Evans & Sanchez) 14. ECONOMIC DEVELOPMENT SUBCOMMITTEE (Evans & Fitzpatrick) 15. GREATER COACHELLA VALLEY CHAMBER OF COMMERCE INFORMATION EXCHANGE COMMITTEE (Fitzpatrick) CITY COUNCIL AGENDA Page 6 of 9 MARCH 17, 2026 16. LEAGUE OF CALIFORNIA CITIES: A) ANNUAL CONFERENCE DELEGATE (Evans) B) ENVIRONMENTAL QUALITY POLICY COMMITTEE (McGarrey) C) EXECUTIVE COMMITTEE – RIVERSIDE COUNTY DIVISION (McGarrey) D) PUBLIC SAFETY COMMITTEE (Sanchez) 17. PALM SPRINGS AIR MUSEUM BOARD & EXECUTIVE COMMITTEE (Evans) 18. RIVERSIDE COUNTY: A) AIRPORT LAND USE COMMISSION (Sanchez) B) TRANSPORTATION COMMISSION (Fitzpatrick) C) TRANSPORTATION COMMISSION AUDIT AD HOC COMMITTEE (Fitzpatrick) D) TRANSPORTATION COMMISSION COACHELLA VALLEY SAN GORGONIO PASS AREA CORRIDOR AD HOC COMMITTEE (Fitzpatrick) 19. RIVERSIDE LOCAL AGENCY FORMATION COMMISSION (Sanchez) 20. SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS (Sanchez) A) REGIONAL COUNCIL (Sanchez) B) TRANSPORTATION COMMITTEE (Sanchez) 21. SUNLINE TRANSIT AGENCY (Peña) 22. VISIT GREATER PALM SPRINGS CONVENTION AND VISITORS BUREAU (Evans) 23. ARTS AND COMMUNITY SERVICES COMMISSION MEETING MINUTES DATED DECEMBER 8, 2025 337 ADJOURNMENT ********************************* The next regular meeting of the City Council will be held on April 7, 2026, at 4:00 p.m. at the City Hall Council Chamber, 78495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, Monika Radeva, City Clerk of the City of La Quinta, do hereby declare that the foregoing Agenda for the La Quinta City Council meeting was published in accordance with the Brown Act [Gov. Code § 54954.2] on the City’s website, accessible directly from the City’s home page through the “Calendar / Public Meetings” icon link, and posted at the City Hall bulletin board, located near the entrance to the Council Chamber at 78495 Calle Tampico, La Quinta, CA 92253, on March 13, 2026, which is freely accessible to members of the public. DATED: March 13, 2026 MONIKA RADEVA, City Clerk City of La Quinta, California CITY COUNCIL AGENDA Page 7 of 9 MARCH 17, 2026 PUBLIC NOTICES Agenda packet materials are available for public inspection: 1) at the Clerk’s Office at La Quinta City Hall, located at 78495 Calle Tampico, La Quinta, CA 92253; and 2) on the City’s website at www.laquintaca.gov/publicmeetings in accordance with the Brown Act [Gov. Code §§ 54954.2, 54956, and 54957.5] The La Quinta City Council Chamber is wheelchair accessible. If hearing assistance equipment is needed, please contact the City Clerk’s office at (760) 777-7147, 24-hours in advance of the meeting and accommodation will be made. If background material is to be presented to the City Council during a City Council meeting, please be advised that 15 copies of all documents, exhibits, etc., must be supplied to the City Clerk for distribution, or must be emailed to CItyClerkMail@laquintaca.gov. It is requested that this takes place prior to the beginning of the meeting. PUBLIC COMMENTS - INSTRUCTIONS Members of the public may address the City Council on any matter listed or not listed on the agenda as follows: WRITTEN PUBLIC COMMENTS can be provided either in-person during the meeting by submitting 15 copies to the City Clerk, it is requested that this takes place prior to the beginning of the meeting; or can be emailed in advance to CityClerkMail@LaQuintaCA.gov, no later than 12:00 p.m., on the day of the meeting. Written public comments will be distributed to Council, made public, and will be incorporated into the public record of the meeting, but will not be read during the meeting unless, upon the request of the Mayor, a brief summary of public comments is asked to be reported. If written public comments are emailed, the email subject line must clearly state “Written Comments” and should include: 1) full name, 2) city of residence, and 3) subject matter. VERBAL PUBLIC COMMENTS can be provided in-person during the meeting by completing a “Request to Speak” form and submitting it to the City Clerk; it is requested that this takes place prior to the beginning of the meeting. Please limit your comments to three (3) minutes (or approximately 350 words). Only one person at a time may speak and only after being recognized by the Mayor. In accordance with City Council Resolution No. 2022-027, a one-time additional speaker time donation of three (3) minutes per individual is permitted; please note that the member of the public donating time must: 1) submit this in writing to the City Clerk by completing a “Request to Speak” form noting the name of the person to whom time is being donated to, and 2) be present at the time the speaker provides verbal comments. CITY COUNCIL AGENDA Page 8 of 9 MARCH 17, 2026 Members of the public who utilize a translator shall be provided at least twice of the allotted time to ensure non-English speakers receive the same opportunity to directly address the Council. Verbal public comments are defined as comments provided in the speakers’ own voice and may not include video or sound recordings of the speaker or of other individuals or entities, unless permitted by the Mayor. Public speakers may elect to use printed presentation materials to aid their comments; 15 copies of such printed materials shall be provided to the City Clerk to be disseminated to the City Council, made public, and incorporated into the public record of the meeting; it is requested that the printed materials are provided prior to the beginning of the meeting. There shall be no use of Chamber resources and technology to display visual or audible presentations during public comments, unless permitted by the Mayor. All writings or documents, including but not limited to emails and attachments to emails, submitted to the City regarding any item(s) listed or not listed on this agenda are public records. All information in such writings and documents is subject to disclosure as being in the public domain and subject to search and review by electronic means, including but not limited to the City’s Internet website and any other Internet Web-based platform or other Web-based form of communication. All information in such writings and documents similarly is subject to disclosure pursuant to the California Public Records Act [Gov. Code § 7920.000 et seq.]. TELECONFERENCE ACCESSIBILITY – INSTRUCTIONS Teleconference accessibility may be triggered in accordance with the Brown Act “during a proclaimed state of emergency or local emergency,” as defined [Gov. Code § 54953.8.2]; or if a member of the City Council requests to attend and participate in this meeting remotely pursuant to any of the following: (1) “disability” [Gov. Code § 54953(c)], or (2) “just cause” [Gov. Code § 54953.8.3], as defined. In such instances, remote public accessibility and participation will be facilitated via the Zoom Webinar audio-visual platform as detailed at the end of this agenda. *** TELECONFERENCE AND TELEPHONIC PROCEDURES*** APPLICABLE ONLY WHEN TELECONFERENCE ACCESSIBILITY IS IN EFFECT ZOOM LINK: https://us06web.zoom.us/s/88215960899 Meeting ID: 882 1596 0899 Or join by phone: (253) 215 – 8782 VERBAL PUBLIC COMMENTS – members of the public may attend and participate in this meeting by teleconference or telephonic accessibility via the Zoom Webinar audio- visual platform and must activate the “Raise Hand” feature on their electronic devise (*9 for telephonic participation) when public comments are prompted by the Mayor, and will be queued in consecutive order; the City will facilitate the ability for a member of the public to be audible to the City Council and general public and allow them to speak on the item(s) CITY COUNCIL AGENDA Page 9 of 9 MARCH 17, 2026 requested. Members of the public must unmute themselves via the “Audio” feature on their electronic devise (*6 for telephonic participation) when prompted upon being recognized by the Mayor, in order to become audible to the City Council and the public . WRITTEN PUBLIC COMMENTS can be provided either in person during the meeting or emailed to the City Clerk’s Office at CityClerkMail@LaQuintaCA.gov any time prior to the adjournment of the meeting, and will be distributed to the City Council, made public, incorporated into the public record of the meeting, and will not be read during the meeting unless, upon the request of the Mayor, a brief summary of any public comment is asked to be read, to the extent the City Clerk’s Office can accommodate such request. CLOSED CAPTION AND TRANSLATION Closed Caption and Translation are accessible through the Zoom Webinar audio-visual platform and accessible in real-time to all teleconference attendees. Members of the public must activate the “Show Captions” feature on their device for closed caption; and may use the “Options Arrow” to select from the list of available languages for translation. *9 *6 10 City of La Quinta CITY COUNCIL MEETING: March 17, 2026 STAFF REPORT AGENDA TITLE: ADOPT RESOLUTION TO REAFFIRM ADOPTION OF ANNUAL ASSESSMENT FOR COUNTY SERVICE AREA 152, AUTHORIZE RIVERSIDE COUNTY TO CONTINUE TO LEVY ASSESSMENTS, AND INDEMNIFY AND HOLD THE COUNTY HARMLESS FOR LEVYING ASSESSMENTS ON CITY PARCELS RECOMMENDATION Adopt a resolution to reaffirm adoption of the annual assessment for County Service Area 152 for fiscal year 2026/27; authorize Riverside County to continue to levy assessments; and indemnify and hold the County harmless for levying assessments on City parcels. EXECUTIVE SUMMARY •The City has an agreement with Riverside County (County) wherein the County assesses properties within the City for the maintenance and operations of street sweeping, flood control, retention basin, and other drainage facilities within La Quinta to improve overall storm water quality. •These activities are required under the Clean Water Act and the National Pollutant Discharge Elimination System Program. •Council must annually adopt a resolution authorizing the County to assess City parcels and hold the County harmless for levying the assessments. •The per parcel assessment rate will remain unchanged from its original 1997 rate of $9.99 per Benefit Assessment Unit for the fiscal year (FY) 2026/27. FISCAL IMPACT County Service Area (CSA) 152 assessments generate approximately $300,000 per year. These funds are held by the County and are designated for expenditures related to storm water pollution mitigation under the National Pollutant Discharge Elimination System (NPDES) permit. The City may request reimbursement for qualifying expenditures, such as retention basin maintenance, and the revenue is recognized in the General Fund (Account No. 101-0000-43633, CSA 152 Assessments). CONSENT CALENDAR ITEM NO. 1 11 BACKGROUND/ANALYSIS In 1991, the County enacted CSA 152 to provide funding for local jurisdictions to maintain flood control and storm drain facilities. In 1994, the City joined CSA 152, and in 1997 the Council approved the Benefit Assessment Unit rate of $9.99. The City/County Agreement is available for review in the Public Works Department. Staff recommends the City’s continued participation in CSA 152 and to authorize the County to levy and collect these assessments for FY 2026/27. ALTERNATIVES Staff does not recommend an alternative. Prepared by: Carley Escarrega, Administrative Technician Approved by: Bryan McKinney, P.E., Public Works Director/City Engineer 12 RESOLUTION NO. 2026 – XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, MAKING FINDINGS AND REAFFIRMING THE ESTABLISHMENT AND SETTING OF RATES FOR THE COUNTY SERVICE AREA 152 TO FUND THE CITY’S STREET SWEEPING PROGRAM AND OPERATE AND MAINTAIN THE CITY’S DRAINAGE AND FLOOD CONTROL SYSTEMS WHEREAS, the Riverside County Service Area 152 (CSA 152) was created under the Benefit Assessment Act of 1982 (Government Code Section 54702, et seq.), which authorized local agencies to impose benefit assessments to finance the maintenance and operation costs of flood control and drainage systems, based on the proportionate storm water runoff from each parcel; and WHEREAS, under the federally-mandated but unfunded National Pollutant Discharge Elimination System Program, the City is required to have a valid permit from the Regional Water Quality Control Board to discharge water runoff from properties within the boundaries of the City; and WHEREAS, street sweeping is a pro-active method of ensuring pro-active maintenance from street runoff into the flood control and drainage systems of the City; and WHEREAS, the City is a co-permittee of Permit No. CAS-617002 with the Coachella Valley Water District, County of Riverside and the incorporated cities therein; and WHEREAS, the City, by its Resolution No. 97-39, adopted on May 20, 1997, authorized Riverside County to levy and establish a Benefit Assessment Unit rate for the 1997-1998 Fiscal Year CSA 152 assessments; and WHEREAS, the City by its Resolution No. 97-39, adopted on May 20, 1997, agreed to indemnify and hold the County harmless for levying Assessments on the City parcels under CSA 152; and WHEREAS, the City uses revenues from CSA 152 assessments solely for the purpose of maintaining and operating the City’s flood control and drainage system to comply with the National Pollutant Discharge Elimination System Permit and to provide street sweeping within the City of La Quinta; and WHEREAS, Proposition 218, adopted by voters on November 6, 1996, established new procedures and approval requirements for all existing assessments, unless the assessment is exempt from the new requirements; and 13 Resolution No. 2026 – XXX Riverside County Service Area (CSA) 152 – Fiscal Year 2026/27 Assessments Adopted: March 17, 2026 Page 2 of 3 WHEREAS, certain assessments that existed on November 6, 1996, are specifically exempt from the Proposition 218 procedures and approval requirements, including assessments imposed exclusively to finance the capital costs and maintenance and operation expenses for sidewalks, streets, sewers, water, flood control, drainage systems or vector control. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: SECTION 1. The City Council finds the foregoing recitals to be true and correct. SECTION 2. The City Council finds and declares that the City’s CSA 152 charges are assessments within the definition of California Constitution Article XIIID, Section 2(b), in that they confer special benefits upon each parcel of property subject to the assessments. SECTION 3. The City Council finds and declares that pursuant to Article XIIID, Section 5(a), the City’s CSA 152 assessments are exempt from the new procedures and approval requirements of Article XIIID, Section 4, because the City’s CSA 152 assessments existed before November 6, 1996, and the assessments are imposed exclusively to finance the capital costs and maintenance and operation expenses for street sweeping, flood control, and drainage systems in the City. SECTION 4. The City Council hereby reaffirms its adoption of the annual assessment for CSA 152 and hereby determines that the annual assessment rate for Fiscal Year 2026/2027 for CSA 152 is to be set at nine dollars and ninety-nine cents ($9.99) per Benefit Assessment Unit. The method of computation has not been changed nor has the rate of assessment been increased since August 6, 1996. SECTION 5. The City Council hereby authorizes the County of Riverside to levy assessments under CSA 152 for the benefit of the City. The City agrees that it shall indemnify, defend and hold County and members of its Board, and its officers, employees and agents harmless from (1) any and all claims, demands, and causes of action of any kind or nature whatsoever and (2) any and all liability of any kind or nature whatsoever that may arise out of or be caused by, or be attributable to the imposition, collection, or allocation of any tax (special or general), assessment fees or charges, and/or any other revenue generated through City’s application of reliance on or use of County Service Area 152. 14 Resolution No. 2026 – XXX Riverside County Service Area (CSA) 152 – Fiscal Year 2026/27 Assessments Adopted: March 17, 2026 Page 3 of 3 PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held on this 17th day of March 2026, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ________________________ LINDA EVANS, Mayor City of La Quinta, California ATTEST: _________________________ MONIKA RADEVA, City Clerk City of La Quinta, California APPROVED AS TO FORM: ___________________________ WILLIAM H. IHRKE, City Attorney City of La Quinta, California 15 16 City of La Quinta CITY COUNCIL MEETING: March 17, 2026 STAFF REPORT AGENDA TITLE: EXCUSE ABSENCES OF COMMISSIONER BIONDI FROM THE MARCH 9, 2026, ARTS AND COMMUNITY SERVICES COMMISSION QUARTERLY MEETING, AND COMMISSIONERS HASSETT AND HUNDT FROM THE MARCH 10, 2026, PLANNING COMMISSION MEETING RECOMMENDATION Excuse absences of Commissioner Biondi from the March 9, 2026, Arts and Community Services Commission quarterly meeting; and Commissioners Hassett and Hundt from the March 10, 2026, Planning Commission meeting. EXECUTIVE SUMMARY Commissioner Biondi requested to be excused from the March 9, 2026, Arts and Community Services quarterly meeting due to illness. Commissioner Biondi has one (1) excused absence for fiscal year 2025/26. Chairperson Hassett requested to be excused from the March 10, 2026, Planning Commission meeting, due to illness. Chairperson Hassett has no excused absences for fiscal year 2025/26. Commissioner Hundt requested to be excused from the March 10, 2026, Planning Commission meeting, due to a scheduling conflict. Commissioner Hundt has no excused absences for fiscal year 2025/26. FISCAL IMPACT – No meeting attendance compensation is paid to absent members. BACKGROUND/ANALYSIS Section 2.06.090 of the La Quinta Municipal Code states: “If any member of a board, commission or committee absents him or herself from two consecutive regular meetings or absents him or herself from a total of three regular meetings within any fiscal year, his/her office shall become vacant and shall be filled as any other vacancy. A board, commission or committee member may request advance permission from the city council to be absent at one or more regular meetings due to extenuating circumstances, and/or may request the city council to excuse an absence after-the-fact where such extenuating circumstances prevented the member from seeking advance permission to be absent. If such permission or excuse is granted by the city council, the absence shall not be counted toward the above-stated limitations on absences.” CONSENT CALENDAR ITEM NO. 2 17 ALTERNATIVES Council may deny this request, which would result in the absence being counted toward the Commissioners’ limitation on absences as noted above. Prepared by: Amanda Guerrero, Records Technician Approved by: Monika Radeva, City Clerk 18 City of La Quinta CITY COUNCIL MEETING: March 17, 2026 STAFF REPORT AGENDA TITLE: AUTHORIZE OVERNIGHT TRAVEL FOR TWO COUNCILMEMBERS TO ATTEND THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY 2026 ELECTED OFFICIALS SUMMIT IN CHULA VISTA, CALIFORNIA, APRIL 29 – MAY 1, 2026 RECOMMENDATION Authorize overnight travel for two Councilmembers to attend the California Joint Powers Insurance Authority 2026 Elected Officials Summit in Chula Vista, California, April 29 – May 1, 2026. EXECUTIVE SUMMARY The California Joint Powers Insurance Authority (CJPIA) is holding a two-and-a- half-day education summit (Summit) for elected officials with over three years of service to provide insight about effective and ethical leadership training. Led by local government experts, this summit will provide attendees the opportunity to participate in education sessions, discussion forums, and network with CJPIA staff, subject matter experts and other elected officials throughout the state. FISCAL IMPACT Estimated expenses are $450 per attendee, which includes travel and meals; there are no registration or lodging costs for public officials of CJPIA member agencies. Funds are available in the City Council Travel and Training Account No. 101-1001-60320. BACKGROUND/ANALYSIS CJPIA works to develop long-term strategies to mitigate the growing and ever-changing risks public agencies may encounter. An Executive Committee, elected by members and guided by the CJPIA’s mission to provide innovative risk management solutions, provides strategic oversight while professional staff of experienced risk mitigation experts facilitate day-to-day management and execute on key priorities and programs. This two-and-a-half-day summit will allow participants to get insight and information on effective and ethical leadership training. The Summit also provides opportunity to network with other elected officials and industry professionals. CONSENT CALENDAR ITEM NO. 3 19 ALTERNATIVES Council may elect to deny this travel request or reduce the number of attendees. However, the topics covered at the Summit provide the opportunity for officials to stay abreast of trends and issues that impact City liability insurance. Prepared by: Jennifer Nelson, Executive Specialist Approved by: Jon McMillen, City Manager 20 City of La Quinta CITY COUNCIL MEETING: March 17, 2026 STAFF REPORT AGENDA TITLE: AUTHORIZE OVERNIGHT TRAVEL FOR ONE COUNCILMEMBER TO ATTEND THE LEAGUE OF CALIFORNIA CITIES PUBLIC SAFETY POLICY COMMITTEE MEETING IN COSTA MESA, CALIFORNIA, MARCH 27, 2026 RECOMMENDATION Authorize overnight travel for one Councilmember to attend the League of California Cities Public Safety Policy Committee meeting in Costa Mesa, California, March 27, 2026. EXECUTIVE SUMMARY The League of California Cities (League) is an association of California cities that collaborate to exchange information and combine resources to influence state legislation. The League’s Public Safety Policy Committee (Committee) meets three times per year to review issues related to law enforcement, fire, and life safety policies. Councilmember Steve Sanchez serves on the Committee as the City’s representative. FISCAL IMPACT Estimated expenses are $450 which includes lodging, travel and meals. Funds are available in the City Council travel and training account (No. 101-1001-60320). BACKGROUND/ANALYSIS The League serves as a statewide advocacy and educational organization that supports member cities through legislative advocacy, policy development, and training on key municipal issues, including public safety. The League’s policy committees provide a forum for city representatives to review proposed legislation, consider statewide policy impacts, and develop recommendations that guide the League’s formal positions on matters affecting cities. The Public Safety Policy Committee focuses specifically on issues related to law enforcement, fire services, emergency response, and broader community safety initiatives, and meets three times per year to review and discuss proposed bills, regulations, and best practices in these areas. Councilmember Sanchez’s participation on the Committee ensures that the City’s interests are represented in statewide policy discussions and that La CONSENT CALENDAR ITEM NO. 4 21 Quinta remains informed on evolving public safety trends, mandates, and resources that may impact our residents, visitors, and businesses. ALTERNATIVES Council may elect not to authorize this request. Prepared by: Jennifer Nelson, Executive Specialist Approved by: Jon McMillen, City Manager 22 City of La Quinta CITY COUNCIL MEETING: March 17, 2026 STAFF REPORT AGENDA TITLE: AUTHORIZE OVERNIGHT TRAVEL FOR DESIGN AND DEVELOPMENT DEPARTMENT HUB MANAGER TO ATTEND TYLER CONNECT 2026 ANNUAL CONFERENCE IN LAS VEGAS, NEVADA, APRIL 7-10, 2026 RECOMMENDATION Authorize overnight travel for Design and Development Department HUB Manager to attend Tyler Connect 2026 annual conference in Las Vegas, Nevada, April 7-10, 2026. EXECUTIVE SUMMARY Tyler Connect 2026 is a 4-day annual user conference for public sector professionals offering education and best practices essential to the Tyler Enterprise Permitting & Licensing (EPL) software, the main permitting software used by the HUB. The conference offers a platform for public sector professionals to learn, network, and gain insights into various topics related to their work. Participants will learn techniques to improve existing functionality, including new techniques to customize and streamline the Customer Service Portal that directly interfaces with La Quinta residents, businesses, and building and development professionals. FISCAL IMPACT Estimated expenses are $3,000 per attendee, which includes conference registration, transportation, lodging, and meals. Funds are available in the HUB’s Travel & Training budget (Account No. 101-6006-60320). BACKGROUND/ANALYSIS In August 2023, the City implemented Tyler EPL permitting software, which allows for enhanced customer service, providing 24/7 online access to information on property, electronic application and permit submittals, plan reviews, calls for inspections, and permit tracking and reporting for data-driven decision making. Tyler Connect 2026 provides education and best practices specifically geared towards public sector professionals. The conference consists of four days of educational sessions, networking CONSENT CALENDAR ITEM NO. 5 23 opportunities, and exposure to the latest technologies and solutions for government agencies. The conference will cover various topics relevant to the Design and Development Department, including: Introduction to upcoming critical upgrades for Tyler EPL software, the main permitting tool used by the HUB. Workshops to improve existing functionality and backend solutions for EPL. Networking opportunities to share best practices across the country to serve their communities. Learn new techniques to customize the Customer Service Portal that directly interfaces with residents and businesses. Plan for future cross-departmental integrations and services such as Enterprise Service Requests, Decision Engine, eReviews and interactive reporting that is unique to our jurisdiction for customers. Attending Tyler Connect 2026 will allow staff to address Tyler Support, the customer service representatives for EPL; and to learn methodologies to incorporate to the City’s virtual service public counter, while fine-tuning the internal configurations to allow for efficient reporting and automation. ALTERNATIVES Council may elect not to authorize this travel request; however, as this is a critical educational and networking opportunity to focus on growth prospects and to learn how to better serve the community, staff does not recommend this alternative. Prepared by: Tommi Sanchez, HUB Planning Manager Approved by: David Newell, Design and Development Director 24 City of La Quinta CITY COUNCIL MEETING: March 17, 2026 STAFF REPORT AGENDA TITLE: ACCEPT OFF-SITE IMPROVEMENTS ASSOCIATED WITH THE OASIS RESIDENTIAL DEVELOPMENT, TRACT MAP NO. 32201, LOCATED AT THE NORTHWEST CORNER OF AVENUE 60 AND MADISON STREET RECOMMENDATION Accept the off-site improvements associated with Tract Map No. 32201, Oasis; authorize staff to release the performance security; and direct staff to release the labor and materials security 90 days after City Council acceptance of the improvements. EXECUTIVE SUMMARY Oasis is a residential project located at the northwest corner of Avenue 60 and Madison Street (Attachment 1). Crestwood Corporation (Developer) has requested release of the performance, labor and materials securities. Since all off-site improvements have been completed, staff recommends acceptance, and release of the performance, labor and materials securities. FISCAL IMPACT – None. BACKGROUND/ANALYSIS The Developer has completed all off-site improvements required by Tract Map No. 32201. The improvements include pavement, curb and gutter, signing and striping, sidewalk, and landscaping. Staff inspected the off-site improvements and verified they meet City- approved plans and standards. ALTERNATIVES Accepting improvements is a ministerial action necessary for the release of the improvement securities. Since the improvements have been inspected and meet City standards, staff does not recommend an alternative action. Prepared by: Amy Yu, Associate Engineer Approved by: Bryan McKinney, P.E., Public Works Director/City Engineer Attachment: 1. Vicinity Map CONSENT CALENDAR ITEM NO. 6 25 V I C I N I T Y M A P NOT TO SCALE TRACT MAP NO. 32201 ATTACHMENT 1 26 City of La Quinta CITY COUNCIL MEETING: March 17, 2026 STAFF REPORT AGENDA TITLE: ACCEPT OFF-SITE AND ON-SITE IMPROVEMENTS ASSOCIATED WITH THE ESTATES AT POINT HAPPY RESIDENTIAL DEVELOPMENT, TRACT MAP NO. 31348, LOCATED SOUTH OF HIGHWAY 111 AND WEST OF WASHINGTON STREET RECOMMENDATION Accept the off-site and on-site improvements associated with Tract Map No. 31348, Estates at Point Happy; authorize staff to release performance securities; and direct staff to release the labor and materials security 90 days after City Council acceptance of the improvements. EXECUTIVE SUMMARY •The Estates at Point Happy is a residential development project located south of Highway 111 and west of Washington Street (Attachment 1). •WH La Quinta 29, LLC (Developer) has requested release of the performance, labor and materials securities. •Staff has verified satisfactory completion of the off-site and on-site improvements and recommends acceptance, and release of the performance, labor and materials securities. FISCAL IMPACT – None. BACKGROUND/ANALYSIS All off-site and on-site improvements required by Tract Map No. 31348 have been completed. The improvements include grading, street improvements, drainage improvements, landscaping, sidewalk, and setting monumentation. Staff inspected the off-site and on-site improvements and verified they meet City-approved plans and standards. ALTERNATIVES Accepting improvements is a ministerial action necessary for the release of the improvement securities. Since the improvements have been inspected and meet City standards, staff does not recommend an alternative action. CONSENT CALENDAR ITEM NO. 7 27 Prepared by: Amy Yu, Associate Engineer Approved by: Bryan McKinney, P.E., Public Works Director/City Engineer Attachment: 1. Vicinity Map 28 TM 31348 THE ESTATES AT POINT HAPPY V I C I N I T Y M A P NOT TO SCALE ATTACHMENT 1ATTACHMENT 1 29 30 City of La Quinta CITY COUNCIL MEETING: March 17, 2026 STAFF REPORT AGENDA TITLE: ACCEPT DUNE PALMS BRIDGE IMPROVEMENTS PROJECT NO. 2011-05, LOCATED ON DUNE PALMS ROAD AT THE COACHELLA VALLEY STORM WATER CHANNEL RECOMMENDATION Accept the Dune Palms Road Bridge Project No. 2011-05 as complete; authorize the City Clerk to file a Notice of Completion with the Office of the County Recorder; and release final payment in the amount of $53,280 after the Notice of Completion is recorded. EXECUTIVE SUMMARY •The project included replacing the low water crossing with an all-weather access bridge on Dune Palms Road at the Coachella Valley Storm Water Channel (CVSWC) (Attachment 1). •The work is complete and Council acceptance will close the contract and allow final payment. FISCAL IMPACT The following is the financial accounting for Project No. 2011-05: Original Contract Amount $ 21,626,760 Contract Change Orders No. 1-24 $ 861,755 Final Contract Amount $ 22,488,515 Project Budget $ 29,756,245 Final Contract Amount ($ 22,488,515) Design & Professional Costs ($ 2,207,440) Inspection, Survey, Plans, & Other Construction Costs** ($ 4,643,889) Anticipated Funds Remaining* $ 416,401 * All costs to date have been accounted for and no further costs are anticipated. **Includes costs for TY Lin, the construction management team for this project. CONSENT CALENDAR ITEM NO. 8 3 There are adequate funds to close this project; staff will request final reimbursements from the following funding sources: Fund Amount Caltrans-HBP Funding Share: $23,479,704 CVAG Funding Share: $5,421,936 CVWD Funding Share: $69,600 Total: $28,971,240 BACKGROUND/ANALYSIS On October 18, 2022, Council awarded a $21,626,760 contract to Ortiz Enterprises, Inc. On January 17, 2023, a Notice to Proceed was issued with a 475-working day completion time starting on January 30, 2023, and ending on December 17, 2024. The project was deemed substantially complete on March 28, 2025. No liquidated damages or early completion incentives are recommended. Contract Change Orders Nos. 1-24 were issued for additional work, bid quantity adjustments, and time extensions with a revised completion date of March 28, 2025. The project construction effort is complete and in compliance with the plans and specifications. Staff recommends acceptance and release of the retention after the Notice of Completion is recorded. ALTERNATIVES Staff does not recommend an alternative. Prepared by: Carley Escarrega, Administrative Technician Approved by: Bryan McKinney, P.E., Public Works Director/City Engineer Attachment: 1. Vicinity Map 32 Dune Palms Bridge PROJECT LOCATION HIGHWAY 111 Vicinity Map AVENUE 48 ATTACHMENT 1 3 34 City of La Quinta CITY COUNCIL MEETING: March 17, 2026 STAFF REPORT AGENDA TITLE: APPROVE PURCHASE AND UPFITS OF 2026 CHEVROLET 2500 SILVERADO UTILITY BED WORK TRUCK WITH A LIFTGATE FROM PARADISE CHEVROLET CADILLAC; AND DECLARE CURRENT 2017 CHEVROLET 2500 SILVERADO UTILITY BED WORK TRUCK AS SURPLUS AND APPROVE DISPOSAL METHOD RECOMMENDATION Approve the purchase and upfits of a 2026 Chevrolet 2500 Silverado work truck with a utility bed and lift gate from Paradise Chevrolet Cadillac; authorize the City Manager to execute the purchase orders; declare the current 2017 Chevrolet 2500 Silverado utility bed work truck as surplus; and approve disposal method through its sale via a used car retailer, in accordance with the City’s Surplus Property and Equipment Policy (2019-016). EXECUTIVE SUMMARY •The 2026 Chevrolet 2500 work truck will be utilized by the Streets and Stormwater Division; the upfits for the truck include safety lights and decals. •Staff solicited four dealerships for quotes and received two quotes. Paradise Chevrolet Cadilliac provided the lowest quote that met the City’s specifications. •Staff requests that the current 2017 Chevrolet 2500 Silverado utility bed work truck be declared surplus; and be disposed through a sale via a used car retailer. FISCAL IMPACT The truck purchase is quoted at $71,650 and the safety lights and decals are estimated at $2,000 for the total sum of $73,650. Funds are available in the Facility & Fleet Replacement Fund for fiscal year (FY) 2025/26 budget in the Vehicles Purchased account (501-0000-71031) and the Parts, Accessories, and Upfits account (501-0000-60675). BACKGROUND/ANALYSIS This truck will replace the existing aging 2017 Chevrolet 2500 Silverado work truck with a utility bed and ladder rack (ST-004). Upon replacement, ST-004 will be sold to a used car retailer, such as CarMax or similar, to maximize return, in accordance with the City’s CONSENT CALENDAR ITEM NO. 9 35 Surplus Property and Equipment Policy (Resolution No. 2019-016). The current Kelley Blue Book value for ST-004 is approximately $17,500. This 2026 Chevrolet 2500 truck will be assigned and utilized by the Streets and Stormwater Division. The utility bed and liftgate are required due to the nature of work performed and the necessity of having a variety of specialty tools and parts available on hand. The upfits on this truck will provide staff with additional safety support. The truck will be procured from Paradise Chevrolet Cadillac (Attachment 1). The safety lights and decals will be supplied and installed by a vendor selected in accordance with the City’s Purchasing and Contracting Policy (Resolution No. 2023-008). Staff solicited four dealerships for quotes and received two quotes from Quality Chevrolet and Paradise Chevrolet Cadillac, with the latter being the lowest. Jessup Chevrolet was unable to supply a truck that met the city’s specifications, and La Quinta Chevrolet was unable to provide a quote at this time. Staff requests approval to spend up to $73,650 to purchase this vehicle and install the required upfits. ALTERNATIVES Council may elect not to approve this purchase. Prepared by: Tony Ulloa, Public Works Deputy Director Approved by: Bryan McKinney, P.E., Public Works Director/City Engineer Attachment: 1. Paradise Chevrolet Cadillac Quote 36 Buyer:Deal #: New Used Demo Stock #:Description:VIN: Deal Date: Vehicle Mileage: Trade Salesperson: $ $ $ $ $ $ $ $ $ $ $ $ $ $ Print Time: Paradise Chevrolet Cadillac Phone: Paradise Chevrolet Cadillac Customer Acknowledgement Manager Acknowledgement CITY OF LA QUINTA 265036 M26181 2026 CHEVROLET TRUCK SILVERADO 2500 1GB2ALE7XTF194412 02/24/202678495 CALLE TAMPICO LA QUINTA, CA 92253 65,800.00 65,800.00 0.00 5,764.94 71,649.94 0.00 0.00 0.00 0.00 85.00 0.00 71,649.94 0.00 71,649.94 Sale Price: Total Aftermarkets: Service Agreement: Maintenance Agreement: GAP Insurance: Total Trade Allowance: Trade Difference: Documentary Fee: State & Local Taxes: Total License and Fees: Total Cash Price: Total Trade Payoff: Delivered Price: Cash Down Payment Unpaid Balance: RICHARD MCGRATH 10:31am RICHARD MCGRATH 27360 YNEZ RD TEMECULA, CA 92591 (951) 699-2699 2026 2500 SILVERADO WITH UTILITY BODY WITH LIFTGATE AND TOW PACKAGE ATTACHMENT 1 37 38 City of La Quinta CITY COUNCIL MEETING: March 17, 2026 STAFF REPORT AGENDA TITLE: APPROVE PLANS, SPECIFICATIONS, ENGINEER’S ESTIMATE, AND ADVERTISE FOR BID THE MILES AVENUE PAVEMENT REHABILITATION PROJECT NO. 2023-01 RECOMMENDATION Approve plans, specifications, and engineer’s estimate and authorize staff to bid the Miles Avenue Pavement Rehabilitation Project No. 2023-01. EXECUTIVE SUMMARY The Miles Avenue Pavement Rehabilitation project (Project) will pulverize and replace the existing pavement on Miles Avenue from Washington Street to Jefferson Street within city limits (Attachment 1). The Project also includes adjustments to existing curb ramps to bring them into compliance with current Americans with Disabilities Act (ADA) accessibility standards. The Project was previously approved but temporarily deferred to avoid potential construction conflicts with the Highway 111 Pavement Rehabilitation Project and to schedule work outside of the City’s festival season and when local schools are out of session, thereby minimizing traffic disruptions to residents and visitors. FISCAL IMPACT On December 17, 2024, Council approved a transfer of funds from the Avenue 58 Improvements to the Project, and budget for the Project was also allocated in fiscal year 2024/25 Capital Improvements Program (CIP), resulting in an available budget amount of $4,269,132, which includes $1,600,000 in General Funding, $1,669,132 in Measure A Funding, and $1,000,000 in Measure G Funding. The available Project budget is detailed below, once bids are opened, staff will evaluate if additional funds are needed: Available Budget Design/Professional: $ 55,000 Inspection/Testing/Survey: $ 150,000 Construction: $ 4,000,000 Contingency: $ 64,132 Total Budget: $ 4,269,132 Note: Utility adjustments are not included above as they are the responsibility of the respective utility agency. CONSENT CALENDAR ITEM NO. 10 39 BACKGROUND/ANALYSIS Miles Avenue between Washington Street and Jefferson Street has experienced pavement deterioration due to age and normal traffic loading. The pavement condition has reached the end of its service life and requires rehabilitation to maintain safe and reliable roadway conditions for the traveling public. The proposed Project will rehabilitate the roadway by pulverizing the existing asphalt pavement and installing new pavement along the corridor within city limits. In conjunction with the pavement improvements, the project will include improvements to existing curb ramps as needed to comply with current ADA accessibility requirements, improving accessibility for pedestrians and individuals with mobility challenges. Although the Project was previously approved for bid advertising, staff temporarily deferred the work to avoid overlapping construction activities with the Highway 111 Pavement Rehabilitation project, which could have created significant traffic disruptions in the surrounding area. In addition, staff determined that scheduling construction outside of Coachella and Stagecoach festivals and when local schools are not in session, would further minimize potential impacts to residents, visitors, and nearby schools' operations. With those conditions resolved and a more favorable construction window available, staff has completed the Plans, Specifications, and Engineer’s Estimate and recommends proceeding with advertising the project for bids. Contingent upon approval to advertise the project for bid on March 17, 2026, the following is the project schedule: Council Bid Authorization March 17, 2026 Bid Period March 18, 2026, to April 9, 2026 Council Considers Project Award April 21, 2026 Execute Contract and Mobilize April 22 to May 3, 2026 Construction (40 Working Days) May 4 to June 29, 2026 Accept Improvements July 2026 ALTERNATIVES Staff does not recommend an alternative. Prepared by: Ubaldo Ayón, Assistant Construction Manager Approved by: Bryan McKinney, P.E., Public Works Director/City Engineer Attachment 1: Vicinity Map 40 *IMPORTANT* Maps and data are to be used for reference purposes only. Map features are approximate, and are not necessarily accurate to surveying or engineering standards. The County of Riverside makes no warranty or guarantee as to the content (the source is often third party), accuracy, timeliness, or completeness of any of the data provided, and assumes no legal responsibility for the information contained on this map. Any use of this product with respect to accuracy and precision shall be the sole responsibility of the user. © Riverside County GIS Legend Notes REPORT PRINTED ON...8/22/2024 1:19:25 PM Attachment 1 VICINITY MAP 0 3,0091, 505 Feet County Boundary City Boundaries Blueline Streams City Areas World Street Map 41 42 City of La Quinta CITY COUNCIL MEETING: March 17, 2026 STAFF REPORT AGENDA TITLE: APPROVE THREE AGREEMENTS FOR CONTRACT SERVICES WITH (1) PACIFIC WEST INDUSTRIES, INC, (2) RIVCO MECHANICAL SERVICES, INC, AND (3) F.M. THOMAS AIR CONDITIONING, INC, FOR ON-CALL HEATING, VENTILATION, AND AIR CONDITIONING MAINTENANCE, REPAIR, AND REPLACEMENT RECOMMENDATION Approve three agreements for contract services with (1) Pacific West Industries, Inc., (2)Rivco Mechanical Services, Inc., and (3) F.M. Thomas Air Conditioning, Inc., for on- call heating, ventilation, and air conditioning maintenance, repair, and replacement; and authorize the City Manager to execute the agreements. EXECUTIVE SUMMARY •Heating, Ventilation, and Air Conditioning (HVAC) maintenance contractors are needed to perform regular maintenance and repair services and potentially replace full units on an on-call, as-needed basis for City-owned facilities citywide. •Pacific West Industries, Inc. (Pac West), Rivco Mechanical Services, Inc. (RMS), and F.M. Thomas Air Conditioning, Inc. (F.M. Thomas), are qualified to provide on- call HVAC maintenance, repair, and replacement equipment and services and were selected through the competitive Request for Proposals (RFP) process completed in January 2026. •The three proposed agreements are for a combined contract amount not to exceed $3,800,000 for the initial and extended terms. Expenditures are not to exceed $200,000 in fiscal year (FY) 2025/26 and $600,000 annually from FY 2026/27 through FY 2031/32, which includes the optional two-year extension, providing flexibility to utilize one or more firms based on work demand and contractor availability. FISCAL IMPACT All agreements combined could cost up to $200,000 for FY 2025/26 and up to $600,000 per FY from FY 2026/27 through FY 2031/32, which includes the initial term and optional two-year extended term, for a total contract authority not to exceed amount of $3,800,000. CONSENT CALENDAR ITEM NO. 11 43 Funds are available for the remainder of FY 2025/26 and funds will be budgeted each FY in the appropriate HVAC accounts through the term of the agreements. BACKGROUND/ANALYSIS HVAC maintenance contractors are needed to perform regular maintenance and repair services and potentially replace full units on an on-call, as-needed basis for City-owned facilities citywide. In December 2025, staff published an RFP and received five proposals. The selection committee reviewed the proposals and Pac West, RMS, and F.M. Thomas, were selected as best qualified based on their experience and certifications. The proposed agreements with Pac West (Attachment 1), RMS (Attachment 2), and F.M. Thomas (Attachment 3), beginning March 18, 2026, through June 30, 2030, are at a combined not to exceed compensation amount of $200,000 for FY 2025/26 and a combined not to exceed compensation amount of $600,000 per FY from FY 2026/27 through FY 2029/30, with an option to extend for one additional two-year term (extended term). ALTERNATIVES Council may elect not to approve or to modify the proposed agreements. Prepared by: Carley Escarrega, Administrative Technician Alfred Berumen, M&O Superintendent Approved by: Bryan McKinney, P.E., Public Works Director/City Engineer Attachments: 1. Agreement for Contract Services with Pac West 2. Agreement for Contract Services with RMS 3. Agreement for Contract Services with F.M. Thomas 44 Revised – Sept. 2025 AGREEMENT FOR CONTRACT SERVICES This Agreement for Contract Services (the “Agreement”) is made and entered into by and between the City of La Quinta, (“City”), a California Municipal Corporation and Charter City organized under the Constitution and laws of the State of California with its principal place of business at 78495 Calle Tampico, La Quinta, California 92253, and Pacific West Industries, Inc., with a place of business at 1912 W Business Center Drive, Orange, CA 92867 (“Contracting Party”). The parties hereto agree as follows: 1.SERVICES OF CONTRACTING PARTY. 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Contracting Party shall provide those services related to On-Call HVAC Maintenance, as specified in the “Scope of Services” attached hereto as “Exhibit A” and incorporated herein by this reference (the “Services”). Contracting Party represents and warrants that Contracting Party is a provider of first-class work and/or services and Contracting Party is experienced in performing the Services contemplated herein and, in light of such status and experience, Contracting Party covenants that it shall follow industry standards in performing the Services required hereunder, and that all materials, if any, will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase “industry standards” shall mean those standards of practice recognized by one or more first-class firms performing similar services under similar circumstances. 1.2 Compliance with Law. All Services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations, and laws of the City and any Federal, State, or local governmental agency of competent jurisdiction. 1.3 Wage and Hour Compliance. Contracting Party shall comply with applicable Federal, State, and local wage and hour laws. 1.4 Licenses, Permits, Fees and Assessments. Except as otherwise specified herein, Contracting Party shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of the Services required by this Agreement, including a City of La Quinta business license. Contracting Party and its employees, agents, and subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required for the performance of the Services required by this Agreement. Contracting Party shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the performance of the Services required by this Agreement, and shall indemnify, defend (with counsel selected by City), and hold City, its elected officials, officers, employees, and agents, free and harmless against any such fees, assessments, taxes, penalties, or interest levied, assessed, or imposed against City hereunder. Contracting Party shall be responsible for all subcontractors’ compliance with this Section. ATTACHMENT 1 45 -2- 1.5 Familiarity with Work. By executing this Agreement, Contracting Party warrants that (a) it has thoroughly investigated and considered the Services to be performed, (b) it has investigated the site where the Services are to be performed, if any, and fully acquainted itself with the conditions there existing, (c) it has carefully considered how the Services should be performed, and (d) it fully understands the facilities, difficulties, and restrictions attending performance of the Services under this Agreement. Should Contracting Party discover any latent or unknown conditions materially differing from those inherent in the Services or as represented by City, Contracting Party shall immediately inform City of such fact and shall not proceed except at Contracting Party’s risk until written instructions are received from the Contract Officer, or assigned designee (as defined in Section 4.2 hereof). 1.6 Standard of Care. Contracting Party acknowledges and understands that the Services contracted for under this Agreement require specialized skills and abilities and that, consistent with this understanding, Contracting Party’s work will be held to an industry standard of quality and workmanship. Consistent with Section 1.5 hereinabove, Contracting Party represents to City that it holds the necessary skills and abilities to satisfy the industry standard of quality as set forth in this Agreement. Contracting Party shall adopt reasonable methods during the life of this Agreement to furnish continuous protection to the Services performed by Contracting Party, and the equipment, materials, papers, and other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the Services by City, except such losses or damages as may be caused by City’s own negligence. The performance of Services by Contracting Party shall not relieve Contracting Party from any obligation to correct any incomplete, inaccurate, or defective work at no further cost to City, when such inaccuracies are due to the negligence of Contracting Party. 1.7 Additional Services. In accordance with the terms and conditions of this Agreement, Contracting Party shall perform services in addition to those specified in the Scope of Services (“Additional Services”) only when directed to do so by the Contract Officer, or assigned designee, provided that Contracting Party shall not be required to perform any Additional Services without compensation. Contracting Party shall not perform any Additional Services until receiving prior written authorization through a duly executed written amendment or change order from the Contract Officer, or assigned designee, incorporating therein any adjustment in (i) the Contract Sum, in accordance with Section 2.3 of this Agreement, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of Contracting Party. It is expressly understood by Contracting Party that the provisions of this Section shall not apply to the Services specifically set forth in the Scope of Services or reasonably contemplated therein. It is specifically understood and agreed that oral requests and/or approvals of Additional Services shall be barred and are unenforceable. Failure of Contracting Party to secure the Contract Officer’s, or assigned designee’s written, authorization for Additional Services shall constitute a waiver of any and all right to adjustment of the Contract Sum or time to perform this Agreement, whether by way of compensation, restitution, quantum meruit, or the like, for Additional Services provided without the appropriate authorization from the Contract Officer, or assigned designee. 46 -3- 1.8 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in “Exhibit D” (the “Special Requirements”), which is incorporated herein by this reference and expressly made a part hereof. In the event of a conflict between the provisions of the Special Requirements and any other provisions of this Agreement, the provisions of the Special Requirements shall govern. 2. COMPENSATION. 2.1 Contract Sum. For the Services rendered pursuant to this Agreement, Contracting Party shall be compensated in accordance with “Exhibit B” (the “Schedule of Compensation”) in a total amount not to exceed Three Million Eight Hundred Thousand Dollars ($3,800,000), for the life of the Agreement, encompassing the Initial and any Extended Terms (the “Contract Sum”), except as provided in Section 1.7. Contracting Party expressly acknowledges and agrees that the Contract Sum in this Agreement is the aggregate total amount covering this Agreement, that certain Agreement for Contract Services by and between the City and Rivco Mechanical Services, Inc., and that certain Agreement for Contract Services by and between the City and F.M. Thomas Air Conditioning, Inc., of or about even date as this Agreement, such that the Contract Sum as defined herein is the maximum amount available for services provided under all three agreements. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment in accordance with the percentage of completion of the Services, payment for time and materials based upon Contracting Party’s rate schedule, but not exceeding the Contract Sum, or such other reasonable methods as may be specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Contracting Party at all project meetings reasonably deemed necessary by City; Contracting Party shall not be entitled to any additional compensation for attending said meetings. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses when and if specified in the Schedule of Compensation. Regardless of the method of compensation set forth in the Schedule of Compensation, Contracting Party’s overall compensation shall not exceed the Contract Sum, except as provided in Section 1.7 of this Agreement. 2.2 Method of Billing & Payment. Any month in which Contracting Party wishes to receive payment, Contracting Party shall submit to City no later than the tenth (10th) working day of such month, in the form approved by City’s Finance Director, an invoice for Services rendered prior to the date of the invoice. Such invoice shall (1) describe in detail the Services provided, including time and materials, and (2) specify each staff member who has provided Services and the number of hours assigned to each such staff member. Such invoice shall contain a certification by a principal member of Contracting Party specifying that the payment requested is for Services performed in accordance with the terms of this Agreement. Upon approval in writing by the Contract Officer, or assigned designee, and subject to retention pursuant to Section 8.3, City will pay Contracting Party for all items stated thereon which are approved by City pursuant to this Agreement no later than thirty (30) days after invoices are received by the City’s Finance Department. 47 -4- 2.3 Compensation for Additional Services. Additional Services approved in advance by the Contract Officer, or assigned designee, pursuant to Section 1.7 of this Agreement shall be paid for in an amount agreed to in writing through a duly executed amendment or change order by both City and Contracting Party in advance of the Additional Services being rendered by Contracting Party. Any compensation for Additional Services amounting to five percent (5%) of the Contract Sum or Fifteen Thousand Dollars ($15,000), whichever is less, may be approved by the Contract Officer, or assigned designee. Any greater amount of compensation for Additional Services must be approved by the La Quinta City Council, the City Manager, or Department Director, depending upon City laws, regulations, rules and procedures concerning public contracting. Under no circumstances shall Contracting Party receive compensation for any Additional Services without prior written approval through a duly executed amendment or change order for the Additional Services is obtained from the Contract Officer, or assigned designee, pursuant to Section 1.7 of this Agreement. 3. PERFORMANCE SCHEDULE. 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. If the Services are not completed in accordance with the Schedule of Performance, as set forth in Section 3.2 and “Exhibit C”, it is understood that the City will suffer damage. 3.2 Schedule of Performance. All Services rendered pursuant to this Agreement shall be performed diligently and within the time period established in “Exhibit C” (the “Schedule of Performance”). Extensions to the time period specified in the Schedule of Performance may be approved in writing by the Contract Officer, or assigned designee. 3.3 Force Majeure. The time period specified in the Schedule of Performance for performance of the Services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Contracting Party, including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than City, and unusually severe weather, if Contracting Party shall within ten (10) days of the commencement of such delay notify the Contract Officer, or assigned designee, in writing of the causes of the delay. The Contract Officer, or assigned designee, shall ascertain the facts and the extent of delay, and extend the time for performing the Services for the period of the forced delay when and if in the Contract Officer’s judgment such delay is justified, and the Contract Officer’s determination, or assigned designee, shall be final and conclusive upon the parties to this Agreement. Extensions to time period in the Schedule of Performance which are determined by the Contract Officer, or assigned designee, to be justified pursuant to this Section shall not entitle the Contracting Party to additional compensation in excess of the Contract Sum. 3.4 Term. Unless earlier terminated in accordance with the provisions in Article 8.0 of this Agreement, the term of this agreement shall commence on March 18, 48 -5- 2026, and terminate on June 30, 2030 (“Initial Term”). This Agreement may be extended for two additional year(s) upon mutual agreement by both parties (“Extended Term”), and executed in writing. 4. COORDINATION OF WORK. 4.1 Representative of Contracting Party. The following principals of Contracting Party (“Principals”) are hereby designated as being the principals and representatives of Contracting Party authorized to act in its behalf with respect to the Services specified herein and make all decisions in connection therewith: (a) Name: Adrian Alano Telephone No.: (866) 328-2129 Email: adrian@pacwestac.com (b) Name: Daniel Monge Telephone No.: (866) 328.2129 Email: Daniel.m@pacwestac.com It is expressly understood that the experience, knowledge, capability, and reputation of the foregoing Principals were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing Principals shall be responsible during the term of this Agreement for directing all activities of Contracting Party and devoting sufficient time to personally supervise the Services hereunder. For purposes of this Agreement, the foregoing Principals may not be changed by Contracting Party and no other personnel may be assigned to perform the Services required hereunder without the express written approval of City. 4.2 Contract Officer. The “Contract Officer”, otherwise known as Alfred Berumen, Maintenance and Operations Superintendent, or assigned designee may be designated in writing by the City Manager of the City. It shall be Contracting Party’s responsibility to assure that the Contract Officer, or assigned designee, is kept informed of the progress of the performance of the Services, and Contracting Party shall refer any decisions, that must be made by City to the Contract Officer, or assigned designee. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer, or assigned designee. The Contract Officer, or assigned designee, shall have authority to sign all documents on behalf of City required hereunder to carry out the terms of this Agreement. 4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability, and reputation of Contracting Party, its principals, and its employees were a substantial inducement for City to enter into this Agreement. Except as set forth in this Agreement, Contracting Party shall not contract or subcontract with any other entity to perform in whole or in part the Services required hereunder without the express written approval of City. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated, or encumbered, voluntarily or by operation of law, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in 49 -6- concert of more than twenty five percent (25%) of the present ownership and/or control of Contracting Party, taking all transfers into account on a cumulative basis. Any attempted or purported assignment or contracting or subcontracting by Contracting Party without City’s express written approval shall be null, void, and of no effect. No approved transfer shall release Contracting Party of any liability hereunder without the express consent of City. 4.4 Independent Contractor. Neither City nor any of its employees shall have any control over the manner, mode, or means by which Contracting Party, its agents, or its employees, perform the Services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge, supervision, or control of Contracting Party’s employees, servants, representatives, or agents, or in fixing their number or hours of service. Contracting Party shall perform all Services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Contracting Party shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Contracting Party in its business or otherwise or a joint venture or a member of any joint enterprise with Contracting Party. Contracting Party shall have no power to incur any debt, obligation, or liability on behalf of City. Contracting Party shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. Except for the Contract Sum paid to Contracting Party as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Contracting Party for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Contracting Party for injury or sickness arising out of performing the Services hereunder. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Contracting Party and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits. Contracting Party agrees to pay all required taxes on amounts paid to Contracting Party under this Agreement, and to indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Contracting Party shall fully comply with the workers’ compensation laws regarding Contracting Party and Contracting Party’s employees. Contracting Party further agrees to indemnify and hold City harmless from any failure of Contracting Party to comply with applicable workers’ compensation laws. City shall have the right to offset against the amount of any payment due to Contracting Party under this Agreement any amount due to City from Contracting Party as a result of Contracting Party’s failure to promptly pay to City any reimbursement or indemnification arising under this Section. 4.5 Identity of Persons Performing Work. Contracting Party represents that it employs or will employ at its own expense all personnel required for the satisfactory performance of any and all of the Services set forth herein. Contracting Party represents 50 -7- that the Services required herein will be performed by Contracting Party or under its direct supervision, and that all personnel engaged in such work shall be fully qualified and shall be authorized and permitted under applicable State and local law to perform such tasks and services. 4.6 City Cooperation. City shall provide Contracting Party with any plans, publications, reports, statistics, records, or other data or information pertinent to the Services to be performed hereunder which are reasonably available to Contracting Party only from or through action by City. 5. INSURANCE. 5.1 Insurance. Prior to the beginning of any Services under this Agreement and throughout the duration of the term of this Agreement, Contracting Party shall procure and maintain, at its sole cost and expense, and submit concurrently with its execution of this Agreement, policies of insurance as set forth in “Exhibit E” (the “Insurance Requirements”) which is incorporated herein by this reference and expressly made a part hereof. 5.2 Proof of Insurance. Contracting Party shall provide Certificate of Insurance to Agency along with all required endorsements. Certificate of Insurance and endorsements must be approved by Agency’s Risk Manager prior to commencement of performance. 6. INDEMNIFICATION. 6.1 Indemnification. To the fullest extent permitted by law, Contracting Party shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officers, employees, agents, and volunteers as set forth in “Exhibit F” (“Indemnification”) which is incorporated herein by this reference and expressly made a part hereof. 7. RECORDS AND REPORTS. 7.1 Reports. Contracting Party shall periodically prepare and submit to the Contract Officer, or assigned designee, such reports concerning Contracting Party’s performance of the Services required by this Agreement as the Contract Officer, or assigned designee, shall require. Contracting Party hereby acknowledges that City is greatly concerned about the cost of the Services to be performed pursuant to this Agreement. For this reason, Contracting Party agrees that if Contracting Party becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Services contemplated herein or, if Contracting Party is providing design services, the cost of the project being designed, Contracting Party shall promptly notify the Contract Officer, or assigned designee, of said fact, circumstance, technique, or event and the estimated increased or decreased cost related thereto and, if Contracting Party is providing design services, the estimated increased or decreased cost estimate for the project being designed. 51 -8- 7.2 Records. Contracting Party shall keep, and require any subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports (including but not limited to payroll reports), studies, or other documents relating to the disbursements charged to City and the Services performed hereunder (the “Books and Records”), as shall be necessary to perform the Services required by this Agreement and enable the Contract Officer, or assigned designee, to evaluate the performance of such Services. Any and all such Books and Records shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer, or assigned designee, shall have full and free access to such Books and Records at all times during normal business hours of City, including the right to inspect, copy, audit, and make records and transcripts from such Books and Records. Such Books and Records shall be maintained for a period of three (3) years following completion of the Services hereunder, and City shall have access to such Books and Records in the event any audit is required. In the event of dissolution of Contracting Party’s business, custody of the Books and Records may be given to City, and access shall be provided by Contracting Party’s successor in interest. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds Ten Thousand Dollars ($10,000.00), this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of City, for a period of three (3) years after final payment under this Agreement. 7.3 Ownership of Documents. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents, and other materials plans, drawings, estimates, test data, survey results, models, renderings, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings, digital renderings, or data stored digitally, magnetically, or in any other medium prepared or caused to be prepared by Contracting Party, its employees, subcontractors, and agents in the performance of this Agreement (the “Documents and Materials”) shall be the property of City and shall be delivered to City upon request of the Contract Officer, or assigned designee, or upon the expiration or termination of this Agreement, and Contracting Party shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the Documents and Materials hereunder. Any use, reuse or assignment of such completed Documents and Materials for other projects and/or use of uncompleted documents without specific written authorization by Contracting Party will be at City’s sole risk and without liability to Contracting Party, and Contracting Party’s guarantee and warranties shall not extend to such use, revise, or assignment. Contracting Party may retain copies of such Documents and Materials for its own use. Contracting Party shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any Documents and Materials prepared by them, and in the event Contracting Party fails to secure such assignment, Contracting Party shall indemnify City for all damages resulting therefrom. 7.4 In the event City or any person, firm, or corporation authorized by City reuses said Documents and Materials without written verification or adaptation by Contracting Party for the specific purpose intended and causes to be made or makes any 52 -9- changes or alterations in said Documents and Materials, City hereby releases, discharges, and exonerates Contracting Party from liability resulting from said change. The provisions of this clause shall survive the termination or expiration of this Agreement and shall thereafter remain in full force and effect. 7.5 Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, rights of reproduction, and other intellectual property embodied in the Documents and Materials. Contracting Party shall require all subcontractors, if any, to agree in writing that City is granted a non-exclusive and perpetual license for the Documents and Materials the subcontractor prepares under this Agreement. Contracting Party represents and warrants that Contracting Party has the legal right to license any and all of the Documents and Materials. Contracting Party makes no such representation and warranty in regard to the Documents and Materials which were prepared by design professionals other than Contracting Party or provided to Contracting Party by City. City shall not be limited in any way in its use of the Documents and Materials at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk. 7.6 Release of Documents. The Documents and Materials shall not be released publicly without the prior written approval of the Contract Officer, or assigned designee, or as required by law. Contracting Party shall not disclose to any other entity or person any information regarding the activities of City, except as required by law or as authorized by City. 7.7 Confidential or Personal Identifying Information. Contracting Party covenants that all City data, data lists, trade secrets, documents with personal identifying information, documents that are not public records, draft documents, discussion notes, or other information, if any, developed or received by Contracting Party or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Contracting Party to any person or entity without prior written authorization by City or unless required by law. City shall grant authorization for disclosure if required by any lawful administrative or legal proceeding, court order, or similar directive with the force of law. All City data, data lists, trade secrets, documents with personal identifying information, documents that are not public records, draft documents, discussions, or other information shall be returned to City upon the termination or expiration of this Agreement. Contracting Party’s covenant under this section shall survive the termination or expiration of this Agreement. 8. ENFORCEMENT OF AGREEMENT. 8.1 California Law. This Agreement shall be interpreted, construed, and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and 53 -10- Contracting Party covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 8.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer, or assigned designee; provided that if the default is an immediate danger to the health, safety, or general welfare, City may take such immediate action as City deems warranted. Compliance with the provisions of this Section shall be a condition precedent to termination of this Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party’s right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City’s right to terminate this Agreement without cause pursuant to this Article 8.0. During the period of time that Contracting Party is in default, City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, City may, in its sole discretion, elect to pay some or all of the outstanding invoices during any period of default. 8.3 Retention of Funds. City may withhold from any monies payable to Contracting Party sufficient funds to compensate City for any losses, costs, liabilities, or damages it reasonably believes were suffered by City due to the default of Contracting Party in the performance of the Services required by this Agreement. 8.4 Waiver. No delay or omission in the exercise of any right or remedy of a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. City’s consent or approval of any act by Contracting Party requiring City’s consent or approval shall not be deemed to waive or render unnecessary City’s consent to or approval of any subsequent act of Contracting Party. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 8.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 8.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, at law or at equity, to cure, correct, or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. 8.7 Termination Prior To Expiration of Term. This Section shall govern any termination of this Agreement, except as specifically provided in the following Section for 54 -11- termination for cause. City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days’ written notice to Contracting Party. Upon receipt of any notice of termination, Contracting Party shall immediately cease all Services hereunder except such as may be specifically approved by the Contract Officer, or assigned designee. Contracting Party shall be entitled to compensation for all Services rendered prior to receipt of the notice of termination and for any Services authorized by the Contract Officer, or assigned designee, thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, or assigned designee, except amounts held as a retention pursuant to this Agreement. 8.8 Termination for Default of Contracting Party. If termination is due to the failure of Contracting Party to fulfill its obligations under this Agreement, Contracting Party shall vacate any City-owned property which Contracting Party is permitted to occupy hereunder and City may, after compliance with the provisions of Section 8.2, take over the Services and prosecute the same to completion by contract or otherwise, and Contracting Party shall be liable to the extent that the total cost for completion of the Services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Contracting Party for the purpose of setoff or partial payment of the amounts owed City. 8.9 Attorneys’ Fees. If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorneys’ fees; provided, however, that the attorneys’ fees awarded pursuant to this Section shall not exceed the hourly rate paid by City for legal services multiplied by the reasonable number of hours spent by the prevailing party in the conduct of the litigation. Attorneys’ fees shall include attorneys’ fees on any appeal, and in addition a party entitled to attorneys’ fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery, and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. The court may set such fees in the same action or in a separate action brought for that purpose. 9. CITY OFFICERS AND EMPLOYEES; NONDISCRIMINATION. 9.1 Non-liability of City Officers and Employees. No officer, official, employee, agent, representative, or volunteer of City shall be personally liable to Contracting Party, or any successor in interest, in the event or any default or breach by City or for any amount which may become due to Contracting Party or to its successor, or for breach of any obligation of the terms of this Agreement. 9.2 Conflict of Interest. Contracting Party covenants that neither it, nor any officer or principal of it, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder 55 -12- Contracting Party’s performance of the Services under this Agreement. Contracting Party further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent, or subcontractor without the express written consent of the Contract Officer, or assigned designee. Contracting Party agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement. No officer or employee of City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to this Agreement which effects his financial interest or the financial interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. Contracting Party warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement. 9.3 Covenant against Discrimination. Contracting Party covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any impermissible classification including, but not limited to, race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry in the performance of this Agreement. Contracting Party shall take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry. 10. MISCELLANEOUS PROVISIONS. 10.1 Notice. Any notice, demand, request, consent, approval, or communication either party desires or is required to give the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this Section. To City: CITY OF LA QUINTA Attention: Alfred Berumen 78495 Calle Tampico La Quinta, California 92253 To Contracting Party: Pacific West Industries, Inc. Attention: Adrian Alano 1912 W Business Center Drive Orange, CA 92867 10.2 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. 56 -13- 10.3 Section Headings and Subheadings. The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement. 10.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument. 10.5 Integrated Agreement. This Agreement including the exhibits hereto is the entire, complete, and exclusive expression of the understanding of the parties. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements, and understandings, if any, between the parties, and none shall be used to interpret this Agreement. 10.6 Amendment. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by Contracting Party and by the City Council of City. The parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void. 10.7 Severability. In the event that any one or more of the articles, phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable, such invalidity or unenforceability shall not affect any of the remaining articles, phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless. 10.8 Unfair Business Practices Claims. In entering into this Agreement, Contracting Party offers and agrees to assign to City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials related to this Agreement. This assignment shall be made and become effective at the time City renders final payment to Contracting Party without further acknowledgment of the parties. 10.9 No Third-Party Beneficiaries. With the exception of the specific provisions set forth in this Agreement, there are no intended third-party beneficiaries under this Agreement and no such other third parties shall have any rights or obligations hereunder. 10.10 Authority. The persons executing this Agreement on behalf of each of the parties hereto represent and warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of 57 -14- any other Agreement to which said party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors, and assigns of the parties. [SIGNATURES ON FOLLOWING PAGE] 58 -15- IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. CITY OF LA QUINTA, a California Municipal Corporation JON MCMILLEN, City Manager City of La Quinta, California Dated: PACIFIC WEST INDURSTRIES, INC.: By: Name: Title: ATTEST: MONIKA RADEVA, City Clerk City of La Quinta, California By: Name: Title: APPROVED AS TO FORM: WILLIAM H. IHRKE, City Attorney City of La Quinta, California 59 Exhibit A Page 1 of 5 Last revised summer 2017 Exhibit A Scope of Services 1. Services to be Provided: Complete HVAC controls and Mechanical replacement and repair services, including but not limited to: HVAC maintenance, repair and replacement services on an on-call, as- needed basis. The proposed work includes providing regularly scheduled HVAC maintenance services and appropriate supplies to effectively and safely maintain functioning HVAC systems for specified City facilities in accordance with the best standards of practice. The services and tasks to be performed include the furnishing of all labor, materials, tools, equipment, supplies, tasks, and incidental and customary work necessary to competently perform HVAC services, repair, and replacement work at various City facilities, projects, and locations. Provide all labor and additional materials to maintain, repair or replace existing heating, ventilating and air conditioning systems including but not limited to: • Inspect and identify a variety of HVAC systems at a variety of facilities (City Hall, Library, Wellness Center, Museum, Fire Stations (3), Silver Rock Resort, Silver Rock Event Building, Park Buildings (2), X-Park building, Public Works building and the Old Lumber Yard) • Replace, repair, and perform preventative maintenance of a variety of HVAC systems (Air cooled chiller units, air cooled condensing units, air handling units, fan coil units, boilers, packaged units, mini splits, split system heat pumps, and evaporative coolers) • Inspect units for needed preventative maintenance, repairs and replacement (contactors, fan motors, capacitors, fuses, and belts) • Replace all filters and wash coils quarterly or as needed • Inspect air handler motors, pulleys and belts, lubricate, and replace as needed • All condensation drains cleaned, clear of clogs and debris • Other typical and common miscellaneous HVAC repairs and work • Replacement of ageing units as needed to include units requiring R-22 • The work should include all preparation, replacement and repairs unless otherwise stated by the City • All replacement materials to be used will be approved by the Facilities Superintendent 60 Exhibit A Page 2 of 5 • All filters to be provided by the City • All work shall be to applicable codes and to the satisfaction of the City • Contractor shall have a dedicated technician for emergencies available to respond within 2 hours 61 Exhibit A Page 3 of 5 ADDENDUM TO AGREEMENT Re: Scope of Services If the Scope of Services include construction, alteration, demolition, installation, repair, or maintenance affecting real property or structures or improvements of any kind appurtenant to real property, the following apply: 1. Prevailing Wage Compliance. If Contracting Party is a contractor performing public works and maintenance projects, as described in this Section 1.3, Contracting Party shall comply with applicable Federal, State, and local laws. Contracting Party is aware of the requirements of California Labor Code Sections 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Sections 16000, et seq., (collectively, the “Prevailing Wage Laws”), and La Quinta Municipal Code Section 3.12.040, which require the payment of prevailing wage rates and the performance of other requirements on “Public works” and “Maintenance” projects. If the Services are being performed as part of an applicable “Public works” or “Maintenance” project, as defined by the Prevailing Wage Laws, and if construction work over twenty- five thousand dollars ($25,000.00) and/or alterations, demolition, repair or maintenance work over fifteen thousand dollars ($15,000.00) is entered into or extended on or after January 1, 2015 by this Agreement, Contracting Party agrees to fully comply with such Prevailing Wage Laws including, but not limited to, requirements related to the maintenance of payroll records and the employment of apprentices. Pursuant to California Labor Code Section 1725.5, no contractor or subcontractor may be awarded a contract for public work on a “Public works” project unless registered with the California Department of Industrial Relations (“DIR”) at the time the contract is awarded. If the Services are being performed as part of an applicable “Public works” or “Maintenance” project, as defined by the Prevailing Wage Laws, this project is subject to compliance monitoring and enforcement by the DIR. Contracting Party will maintain and will require all subcontractors to maintain valid and current DIR Public Works contractor registration during the term of this Agreement. Contracting Party shall notify City in writing immediately, and in no case more than twenty-four (24) hours, after receiving any information that Contracting Party’s or any of its subcontractor’s DIR registration status has been suspended, revoked, expired, or otherwise changed. It is understood that it is the responsibility of Contracting Party to determine the correct salary scale. Contracting Party shall make copies of the prevailing rates of per diem wages for each craft, classification, or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at Contracting Party’s principal place of business and at the project site, if any. The statutory penalties for failure to pay prevailing wage or to comply with State wage and hour laws will be enforced. Contracting Party must forfeit to City TWENTY-FIVE DOLLARS ($25.00) per day for each worker who works in excess of the minimum working hours when Contracting Party does not pay overtime. In accordance with the provisions of Labor Code Sections 1810 et seq., eight (8) hours is the legal working day. Contracting Party also shall comply with State law requirements to maintain payroll records and shall provide for certified records and inspection of records as required by California Labor Code Section 1770 et seq., including Section 1776. In addition to the other indemnities provided under this Agreement, Contracting Party shall defend (with counsel selected by City), indemnify, and hold City, 62 Exhibit A Page 4 of 5 its elected officials, officers, employees, and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It is agreed by the parties that, in connection with performance of the Services, including, without limitation, any and all “Public works” (as defined by the Prevailing Wage Laws), Contracting Party shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law. Contracting Party acknowledges and agrees that it shall be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with such laws. Contracting Party shall require the same of all subcontractors. 2. Retention. Payments shall be made in accordance with the provisions of Article 2.0 of the Agreement. In accordance with said Sections, City shall pay Contracting Party a sum based upon ninety-five percent (95%) of the Contract Sum apportionment of the labor and materials incorporated into the Services under this Agreement during the month covered by said invoice. The remaining five percent (5%) thereof shall be retained as performance security to be paid to Contracting Party within sixty (60) days after final acceptance of the Services by the City Council of City, after Contracting Party has furnished City with a full release of all undisputed payments under this Agreement, if required by City. In the event there are any claims specifically excluded by Contracting Party from the operation of the release, City may retain proceeds (per Public Contract Code § 7107) of up to one hundred fifty percent (150%) of the amount in dispute. City’s failure to deduct or withhold shall not affect Contracting Party’s obligations under the Agreement. 3. Utility Relocation. City is responsible for removal, relocation, or protection of existing main or trunk-line utilities to the extent such utilities were not identified in the invitation for bids or specifications. City shall reimburse Contracting Party for any costs incurred in locating, repairing damage not caused by Contracting Party, and removing or relocating such unidentified utility facilities. Contracting Party shall not be assessed liquidated damages for delay arising from the removal or relocation of such unidentified utility facilities. 4. Trenches or Excavations. Pursuant to California Public Contract Code Section 7104, in the event the work included in this Agreement requires excavations more than four (4) feet in depth, the following shall apply: (a) Contracting Party shall promptly, and before the following conditions are disturbed, notify City, in writing, of any: (1) material that Contracting Party believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; (2) subsurface or latent physical conditions at the site different from those indicated by information about the site made available to bidders prior to the deadline for submitting bids; or (3) unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the Agreement. 63 Exhibit A Page 5 of 5 (b)City shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in Contracting Party’s cost of, or the time required for, performance of any part of the work shall issue a change order per Section 1.8 of the Agreement. (c)in the event that a dispute arises between City and Contracting Party whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contracting Party’s cost of, or time required for, performance of any part of the work, Contracting Party shall not be excused from any scheduled completion date provided for by this Agreement, but shall proceed with all work to be performed under this Agreement. Contracting Party shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the contracting Parties. 5.Safety. Contracting Party shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out the Services, Contracting Party shall at all times be in compliance with all applicable local, state, and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C)adequate facilities for the proper inspection and maintenance of all safety measures. 6.Liquidated Damages. Since the determination of actual damages for any delay in performance of the Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, Contracting Party shall be liable for and shall pay to City the sum of One Thousand dollars ($1,000.00) as liquidated damages for each working day of delay in the performance of any of the Services required hereunder, as specified in the Schedule of Performance. In addition, liquidated damages may be assessed for failure to comply with the emergency call out requirements, if any, described in the Scope of Services. City may withhold from any moneys payable on account of the Services performed by Contracting Party any accrued liquidated damages. 64 Exhibit B Page 1 of 2 Exhibit B Schedule of Compensation For the avoidance of doubt, the compensation thresholds on this Exhibit B do not include compensation for Additional Services (if any) authorized pursuant to Section 1.7 and compensated pursuant to Section 2.3 of this Agreement. Contract Sum Compensation for Services shall not exceed the following Contract Sum for the entire life of this Agreement including the Initial and Extended terms: Three Million Eight Hundred Thousand Dollars ($3,800,000), to be paid for duly authorized Services performed consistent with the terms and conditions of this Agreement. Contracting Party expressly acknowledges and agrees that the Contract Sum in this Agreement is the aggregate total amount covering this Agreement, that certain Agreement for Contract Services by and between the City and Rivco Mechanical Services, Inc., and that certain Agreement for Contract Service by and between the City and F.M. Thomas Air Conditioning, Inc., of or about even date as this Agreement, such that the Contract Sum as defined herein is the maximum amount available for services provided under both agreements. The Contract Sum shall be paid to Contracting Party in installment payments made on a monthly basis and in an amount identified in Contracting Party’s schedule of compensation attached hereto for the work tasks performed and properly invoiced by Contracting Party in conformance with Section 2.2 of this Agreement. Initial Term: FY 2025/26 $200,000 FY 2026/27 $600,000 FY 2027/28 $600,000 FY 2028/29 $600,000 FY 2029/30 $600,000 Extended Term: FY 2030/31 $600,000 FY 2031/32 $600,000 65 Exhibit B 2 of 2 66 Exhibit C Page 1 of 1 Exhibit C Schedule of Performance Contracting Party shall complete all services identified in the Scope of Services, Exhibit A of this Agreement. 67 Exhibit D Page 1 of 1 Exhibit D Special Requirements None. 68 Exhibit E Page 1 of 6 Exhibit E Insurance Requirements E.1 Insurance. Prior to the beginning of and throughout the duration of this Agreement, the following policies checked below shall be maintained and kept in full force and effect providing insurance with minimum limits as indicated below and issued by insurers with A.M. Best ratings of no less than A-VI: Commercial General Liability (at least as broad as ISO CG 0001): $1,000,000 per occurrence/$2,000,000 aggregate OR $2,000,000 per occurrence/$4,000,000 aggregate Must include the following endorsements: General Liability Additional Insured General Liability Primary and Non-contributory Commercial Automobile Liability (at least as broad as ISO CA 0001): $1,000,000 combined single limit for bodily injury and property damage Auto Liability Additional Insured Workers’ Compensation (per statutory requirements): Statutory Limits / Employer’s Liability $1,000,000 per accident or disease OR Must include the following endorsements: Workers’ Compensation Endorsement with Waiver of Subrogation Workers’ Compensation Declaration of Sole Proprietor California Workers' Compensation Requirements Acknowledgement Professional Liability (Errors and Omissions): Errors and Omissions liability insurance with a limit of not less than $1,000,000 per claim Cyber Liability $1,000,000 per occurrence/$2,000,000 aggregate 69 Exhibit E Page 2 of 6 Contracting Party shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, Commercial General Liability insurance against all claims for injuries against persons or damages to property resulting from Contracting Party’s acts or omissions rising out of or related to Contracting Party’s performance under this Agreement. The insurance policy shall contain a severability of interest clause providing that the coverage shall be primary for losses arising out of Contracting Party’s performance hereunder and neither City nor its insurers shall be required to contribute to any such loss. An endorsement evidencing the foregoing and naming the City and its officers and employees as additional insured (on the Commercial General Liability policy only) must be submitted concurrently with the execution of this Agreement and approved by City prior to commencement of the services hereunder. Contracting Party shall carry automobile liability insurance of $1,000,000 per accident against all claims for injuries against persons or damages to property arising out of the use of any automobile by Contracting Party, its officers, any person directly or indirectly employed by Contracting Party, any subcontractor or agent, or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Contracting Party’s performance under this Agreement. If Contracting Party or Contracting Party’s employees will use personal autos in any way on this project, Contracting Party shall provide evidence of personal auto liability coverage for each such person. The term “automobile” includes, but is not limited to, a land motor vehicle, trailer or semi-trailer designed for travel on public roads. The automobile insurance policy shall contain a severability of interest clause providing that coverage shall be primary for losses arising out of Contracting Party’s performance hereunder and neither City nor its insurers shall be required to contribute to such loss. Contracting Party shall carry Workers’ Compensation Insurance in accordance with State Worker’s Compensation laws with employer’s liability limits no less than $1,000,000 per accident or disease. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Contracting Party and “Covered Professional Services” as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer’s duty to defend. The policy retroactive date shall be on or before the effective date of this agreement. Contracting Party shall procure and maintain Cyber Liability insurance with limits of $1,000,000 per occurrence/loss which shall include the following coverage: a. Liability arising from the theft, dissemination and/or use of confidential or personally identifiable information; including credit monitoring and regulatory fines arising from such theft, dissemination or use of the confidential information. 70 Exhibit E Page 3 of 6 b. Network security liability arising from the unauthorized use of, access to, or tampering with computer systems. c. Liability arising from the failure of technology products (software) required under the contract for Consultant to properly perform the services intended. d. Electronic Media Liability arising from personal injury, plagiarism or misappropriation of ideas, domain name infringement or improper deep- linking or framing, and infringement or violation of intellectual property rights. e. Liability arising from the failure to render professional services. If coverage is maintained on a claims-made basis, Contracting Party shall maintain such coverage for an additional period of three (3) years following termination of the contract. Contracting Party shall provide written notice to City within ten (10) working days if: (1) any of the required insurance policies is terminated; (2) the limits of any of the required polices are reduced; or (3) the deductible or self-insured retention is increased. In the event any of said policies of insurance are cancelled, Contracting Party shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Exhibit to the Contract Officer. The procuring of such insurance or the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Contracting Party’s obligation to indemnify City, its officers, employees, contractors, subcontractors, or agents. E.2 Remedies. In addition to any other remedies City may have if Contracting Party fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option: a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. b. Order Contracting Party to stop work under this Agreement and/or withhold any payment(s) which become due to Contracting Party hereunder until Contracting Party demonstrates compliance with the requirements hereof. c. Terminate this Agreement. Exercise any of the above remedies, however, is an alternative to any other remedies City may have. The above remedies are not the exclusive remedies for Contracting Party’s failure to maintain or secure appropriate policies or endorsements. Nothing herein contained shall be construed as limiting in any way the extent to which Contracting Party may be held responsible for payments of damages to persons or property resulting from Contracting Party’s or its subcontractors’ performance of work under this Agreement. 71 Exhibit E Page 4 of 6 E.3 General Conditions Pertaining to Provisions of Insurance Coverage by Contracting Party. Contracting Party and City agree to the following with respect to insurance provided by Contracting Party: 1. Contracting Party agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials, employees, and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Contracting Party also agrees to require all contractors, and subcontractors to do likewise. 2. No liability insurance coverage provided to comply with this Agreement shall prohibit Contracting Party, or Contracting Party’s employees, or agents, from waiving the right of subrogation prior to a loss. Contracting Party agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise. 3. All insurance coverage and limits provided by Contracting Party and available or applicable to this Agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to City or its operations limits the application of such insurance coverage. 4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 5. No liability policy shall contain any provision or definition that would serve to eliminate so-called “third party action over” claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor. 6. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Contracting Party shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City’s protection without City’s prior written consent. 7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all the coverages required and an additional insured endorsement to Contracting Party’s general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Contracting Party or deducted from sums due Contracting Party, at City option. 8. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Contracting Party or any subcontractor, is intended 72 Exhibit E Page 5 of 6 to apply first and on a primary, non-contributing basis in relation to any other insurance or self-insurance available to City. 9. Contracting Party agrees to ensure that subcontractors, and any other party involved with the project that is brought onto or involved in the project by Contracting Party, provide the same minimum insurance coverage required of Contracting Party. Contracting Party agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contracting Party agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review. 10. Contracting Party agrees not to self-insure or to use any self-insured retentions or deductibles on any portion of the insurance required herein (with the exception of professional liability coverage, if required) and further agrees that it will not allow any contractor, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self-insure its obligations to City. If Contracting Party’s existing coverage includes a deductible or self-insured retention, the deductible or self-insured retention must be declared to the City. At that time the City shall review options with the Contracting Party, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions. 11. The City reserves the right at any time during the term of this Agreement to change the amounts and types of insurance required by giving the Contracting Party ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Contracting Party, the City will negotiate additional compensation proportional to the increased benefit to City. 12. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 13. Contracting Party acknowledges and agrees that any actual or alleged failure on the part of City to inform Contracting Party of non-compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard. 14. Contracting Party will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect. 15. Contracting Party shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from 73 Exhibit E Page 6 of 6 Contracting Party’s insurance agent to this effect is acceptable. A certificate of insurance and an additional insured endorsement is required in these specifications applicable to the renewing or new coverage must be provided to City within five (5) days of the expiration of coverages. 16. The provisions of any workers’ compensation or similar act will not limit the obligations of Contracting Party under this agreement. Contracting Party expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials, and agents. 17. Requirements of specific coverage features, or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be limiting or all-inclusive. 18. These insurance requirements are intended to be separate and distinct from any other provision in this Agreement and are intended by the parties here to be interpreted as such. 19. The requirements in this Exhibit supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Exhibit. 20. Contracting Party agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Contracting Party for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto. 21. Contracting Party agrees to provide immediate notice to City of any claim or loss against Contracting Party arising out of the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. 74 Exhibit F Page 1 of 2 Exhibit F Indemnification F.1 Indemnity for the Benefit of City. a. Indemnification for Professional Liability. When the law establishes a professional standard of care for Contracting Party’s Services, to the fullest extent permitted by law, Contracting Party shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officials, employees, and agents (“Indemnified Parties”) from and against any and all claims, losses, liabilities of every kind, nature, and description, damages, injury (including, without limitation, injury to or death of an employee of Contracting Party or of any subcontractor), costs and expenses of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation, to the extent same are caused in whole or in part by any negligent or wrongful act, error or omission of Contracting Party, its officers, agents, employees or subcontractors (or any entity or individual that Contracting Party shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Contracting Party shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A without the written consent of the Contracting Party. b. Indemnification for Other Than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Contracting Party shall indemnify, defend (with counsel selected by City), and hold harmless the Indemnified Parties from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses) incurred in connection therewith and costs of investigation, where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Contracting Party or by any individual or entity for which Contracting Party is legally liable, including but not limited to officers, agents, employees, or subcontractors of Contracting Party. c. Indemnity Provisions for Contracts Related to Construction (Limitation on Indemnity). Without affecting the rights of City under any provision of this agreement, Contracting Party shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City’s active negligence accounts for only a percentage of the liability involved, the obligation of Contracting Party will be for that entire portion or percentage of liability not attributable to the active negligence of City. 75 Exhibit F Page 2 of 2 d. Indemnification Provision for Design Professionals. 1. Applicability of this Section F.1(d). Notwithstanding Section F.1(a) hereinabove, the following indemnification provision shall apply to a Contracting Party who constitutes a “design professional” as the term is defined in paragraph 3 below. 2. Scope of Indemnification. When the law establishes a professional standard of care for Contracting Party’s Services, to the fullest extent permitted by law, Contracting Party shall indemnify and hold harmless City and any and all of its officials, employees, and agents (“Indemnified Parties”) from and against any and all losses, liabilities of every kind, nature, and description, damages, injury (including, without limitation, injury to or death of an employee of Contracting Party or of any subcontractor), costs and expenses, including, without limitation, incidental and consequential damages, court costs, reimbursement of attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation, to the extent same are caused by any negligent or wrongful act, error or omission of Contracting Party, its officers, agents, employees or subcontractors (or any entity or individual that Contracting Party shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Contracting Party shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A without the written consent of the Contracting Party. 3. Design Professional Defined. As used in this Section F.1(d), the term “design professional” shall be limited to licensed architects, registered professional engineers, licensed professional land surveyors and landscape architects, all as defined under current law, and as may be amended from time to time by Civil Code § 2782.8. F.2 Obligation to Secure Indemnification Provisions. Contracting Party agrees to obtain executed indemnity agreements with provisions identical to those set forth herein this Exhibit F, as applicable to the Contracting Party, from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Contracting Party in the performance of this Agreement. In the event Contracting Party fails to obtain such indemnity obligations from others as required herein, Contracting Party agrees to be fully responsible according to the terms of this Exhibit. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth in this Agreement are binding on the successors, assigns or heirs of Contracting Party and shall survive the termination of this Agreement. 76 Revised – Sept. 2025 AGREEMENT FOR CONTRACT SERVICES This Agreement for Contract Services (the “Agreement”) is made and entered into by and between the City of La Quinta, (“City”), a California Municipal Corporation and Charter City organized under the Constitution and laws of the State of California with its principal place of business at 78495 Calle Tampico, La Quinta, California 92253, and Rivco Mechanical Services, Inc., with a place of business at 42-941 Madio Street, Indio, CA 92201 (“Contracting Party”). The parties hereto agree as follows: 1.SERVICES OF CONTRACTING PARTY. 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Contracting Party shall provide those services related to On-Call HVAC Maintenance, as specified in the “Scope of Services” attached hereto as “Exhibit A” and incorporated herein by this reference (the “Services”). Contracting Party represents and warrants that Contracting Party is a provider of first-class work and/or services and Contracting Party is experienced in performing the Services contemplated herein and, in light of such status and experience, Contracting Party covenants that it shall follow industry standards in performing the Services required hereunder, and that all materials, if any, will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase “industry standards” shall mean those standards of practice recognized by one or more first-class firms performing similar services under similar circumstances. 1.2 Compliance with Law. All Services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations, and laws of the City and any Federal, State, or local governmental agency of competent jurisdiction. 1.3 Wage and Hour Compliance. Contracting Party shall comply with applicable Federal, State, and local wage and hour laws. 1.4 Licenses, Permits, Fees and Assessments. Except as otherwise specified herein, Contracting Party shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of the Services required by this Agreement, including a City of La Quinta business license. Contracting Party and its employees, agents, and subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required for the performance of the Services required by this Agreement. Contracting Party shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the performance of the Services required by this Agreement, and shall indemnify, defend (with counsel selected by City), and hold City, its elected officials, officers, employees, and agents, free and harmless against any such fees, assessments, taxes, penalties, or interest levied, assessed, or imposed against City hereunder. Contracting Party shall be responsible for all subcontractors’ compliance with this Section. ATTACHMENT 2 77 -2- 1.5 Familiarity with Work. By executing this Agreement, Contracting Party warrants that (a) it has thoroughly investigated and considered the Services to be performed, (b) it has investigated the site where the Services are to be performed, if any, and fully acquainted itself with the conditions there existing, (c) it has carefully considered how the Services should be performed, and (d) it fully understands the facilities, difficulties, and restrictions attending performance of the Services under this Agreement. Should Contracting Party discover any latent or unknown conditions materially differing from those inherent in the Services or as represented by City, Contracting Party shall immediately inform City of such fact and shall not proceed except at Contracting Party’s risk until written instructions are received from the Contract Officer, or assigned designee (as defined in Section 4.2 hereof). 1.6 Standard of Care. Contracting Party acknowledges and understands that the Services contracted for under this Agreement require specialized skills and abilities and that, consistent with this understanding, Contracting Party’s work will be held to an industry standard of quality and workmanship. Consistent with Section 1.5 hereinabove, Contracting Party represents to City that it holds the necessary skills and abilities to satisfy the industry standard of quality as set forth in this Agreement. Contracting Party shall adopt reasonable methods during the life of this Agreement to furnish continuous protection to the Services performed by Contracting Party, and the equipment, materials, papers, and other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the Services by City, except such losses or damages as may be caused by City’s own negligence. The performance of Services by Contracting Party shall not relieve Contracting Party from any obligation to correct any incomplete, inaccurate, or defective work at no further cost to City, when such inaccuracies are due to the negligence of Contracting Party. 1.7 Additional Services. In accordance with the terms and conditions of this Agreement, Contracting Party shall perform services in addition to those specified in the Scope of Services (“Additional Services”) only when directed to do so by the Contract Officer, or assigned designee, provided that Contracting Party shall not be required to perform any Additional Services without compensation. Contracting Party shall not perform any Additional Services until receiving prior written authorization through a duly executed written amendment or change order from the Contract Officer, or assigned designee, incorporating therein any adjustment in (i) the Contract Sum, in accordance with Section 2.3 of this Agreement, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of Contracting Party. It is expressly understood by Contracting Party that the provisions of this Section shall not apply to the Services specifically set forth in the Scope of Services or reasonably contemplated therein. It is specifically understood and agreed that oral requests and/or approvals of Additional Services shall be barred and are unenforceable. Failure of Contracting Party to secure the Contract Officer’s, or assigned designee’s written, authorization for Additional Services shall constitute a waiver of any and all right to adjustment of the Contract Sum or time to perform this Agreement, whether by way of compensation, restitution, quantum meruit, or the like, for Additional Services provided without the appropriate authorization from the Contract Officer, or assigned designee. 78 -3- 1.8 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in “Exhibit D” (the “Special Requirements”), which is incorporated herein by this reference and expressly made a part hereof. In the event of a conflict between the provisions of the Special Requirements and any other provisions of this Agreement, the provisions of the Special Requirements shall govern. 2. COMPENSATION. 2.1 Contract Sum. For the Services rendered pursuant to this Agreement, Contracting Party shall be compensated in accordance with “Exhibit B” (the “Schedule of Compensation”) in a total amount not to exceed Three Million Eight Hundred Thousand Dollars ($3,800,000), for the life of the Agreement, encompassing the Initial and any Extended Terms (the “Contract Sum”), except as provided in Section 1.7. Contracting Party expressly acknowledges and agrees that the Contract Sum in this Agreement is the aggregate total amount covering this Agreement, that certain Agreement for Contract Services by and between the City and Pacific West Industries, Inc., and that certain Agreement for Contract Services by and between the City and F.M. Thomas Air Conditioning, Inc., of or about even date as this Agreement, such that the Contract Sum as defined herein is the maximum amount available for services provided under all three agreements. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment in accordance with the percentage of completion of the Services, payment for time and materials based upon Contracting Party’s rate schedule, but not exceeding the Contract Sum, or such other reasonable methods as may be specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Contracting Party at all project meetings reasonably deemed necessary by City; Contracting Party shall not be entitled to any additional compensation for attending said meetings. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses when and if specified in the Schedule of Compensation. Regardless of the method of compensation set forth in the Schedule of Compensation, Contracting Party’s overall compensation shall not exceed the Contract Sum, except as provided in Section 1.7 of this Agreement. 2.2 Method of Billing & Payment. Any month in which Contracting Party wishes to receive payment, Contracting Party shall submit to City no later than the tenth (10th) working day of such month, in the form approved by City’s Finance Director, an invoice for Services rendered prior to the date of the invoice. Such invoice shall (1) describe in detail the Services provided, including time and materials, and (2) specify each staff member who has provided Services and the number of hours assigned to each such staff member. Such invoice shall contain a certification by a principal member of Contracting Party specifying that the payment requested is for Services performed in accordance with the terms of this Agreement. Upon approval in writing by the Contract Officer, or assigned designee, and subject to retention pursuant to Section 8.3, City will pay Contracting Party for all items stated thereon which are approved by City pursuant to this Agreement no later than thirty (30) days after invoices are received by the City’s Finance Department. 79 -4- 2.3 Compensation for Additional Services. Additional Services approved in advance by the Contract Officer, or assigned designee, pursuant to Section 1.7 of this Agreement shall be paid for in an amount agreed to in writing through a duly executed amendment or change order by both City and Contracting Party in advance of the Additional Services being rendered by Contracting Party. Any compensation for Additional Services amounting to five percent (5%) of the Contract Sum or Fifteen Thousand Dollars ($15,000), whichever is less, may be approved by the Contract Officer, or assigned designee. Any greater amount of compensation for Additional Services must be approved by the La Quinta City Council, the City Manager, or Department Director, depending upon City laws, regulations, rules and procedures concerning public contracting. Under no circumstances shall Contracting Party receive compensation for any Additional Services without prior written approval through a duly executed amendment or change order for the Additional Services is obtained from the Contract Officer, or assigned designee, pursuant to Section 1.7 of this Agreement. 3. PERFORMANCE SCHEDULE. 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. If the Services are not completed in accordance with the Schedule of Performance, as set forth in Section 3.2 and “Exhibit C”, it is understood that the City will suffer damage. 3.2 Schedule of Performance. All Services rendered pursuant to this Agreement shall be performed diligently and within the time period established in “Exhibit C” (the “Schedule of Performance”). Extensions to the time period specified in the Schedule of Performance may be approved in writing by the Contract Officer, or assigned designee. 3.3 Force Majeure. The time period specified in the Schedule of Performance for performance of the Services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Contracting Party, including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than City, and unusually severe weather, if Contracting Party shall within ten (10) days of the commencement of such delay notify the Contract Officer, or assigned designee, in writing of the causes of the delay. The Contract Officer, or assigned designee, shall ascertain the facts and the extent of delay, and extend the time for performing the Services for the period of the forced delay when and if in the Contract Officer’s judgment such delay is justified, and the Contract Officer’s determination, or assigned designee, shall be final and conclusive upon the parties to this Agreement. Extensions to time period in the Schedule of Performance which are determined by the Contract Officer, or assigned designee, to be justified pursuant to this Section shall not entitle the Contracting Party to additional compensation in excess of the Contract Sum. 3.4 Term. Unless earlier terminated in accordance with the provisions in Article 8.0 of this Agreement, the term of this agreement shall commence on March 18, 80 -5- 2026, and terminate on June 30, 2030 (“Initial Term”). This Agreement may be extended for two additional year(s) upon mutual agreement by both parties (“Extended Term”), and executed in writing. 4. COORDINATION OF WORK. 4.1 Representative of Contracting Party. The following principals of Contracting Party (“Principals”) are hereby designated as being the principals and representatives of Contracting Party authorized to act in its behalf with respect to the Services specified herein and make all decisions in connection therewith: (a) Name: Marvin Scott Telephone No.: (760) 200-9898 Email: mscott@rivcomech.com (b) Name: Richard Sang Telephone No.: (760) 200-9898 Email: rsang@rivcomech.com It is expressly understood that the experience, knowledge, capability, and reputation of the foregoing Principals were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing Principals shall be responsible during the term of this Agreement for directing all activities of Contracting Party and devoting sufficient time to personally supervise the Services hereunder. For purposes of this Agreement, the foregoing Principals may not be changed by Contracting Party and no other personnel may be assigned to perform the Services required hereunder without the express written approval of City. 4.2 Contract Officer. The “Contract Officer”, otherwise known as Alfred Berumen, Maintenance and Operations Superintendent, or assigned designee may be designated in writing by the City Manager of the City. It shall be Contracting Party’s responsibility to assure that the Contract Officer, or assigned designee, is kept informed of the progress of the performance of the Services, and Contracting Party shall refer any decisions, that must be made by City to the Contract Officer, or assigned designee. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer, or assigned designee. The Contract Officer, or assigned designee, shall have authority to sign all documents on behalf of City required hereunder to carry out the terms of this Agreement. 4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability, and reputation of Contracting Party, its principals, and its employees were a substantial inducement for City to enter into this Agreement. Except as set forth in this Agreement, Contracting Party shall not contract or subcontract with any other entity to perform in whole or in part the Services required hereunder without the express written approval of City. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated, or encumbered, voluntarily or by operation of law, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in 81 -6- concert of more than twenty five percent (25%) of the present ownership and/or control of Contracting Party, taking all transfers into account on a cumulative basis. Any attempted or purported assignment or contracting or subcontracting by Contracting Party without City’s express written approval shall be null, void, and of no effect. No approved transfer shall release Contracting Party of any liability hereunder without the express consent of City. 4.4 Independent Contractor. Neither City nor any of its employees shall have any control over the manner, mode, or means by which Contracting Party, its agents, or its employees, perform the Services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge, supervision, or control of Contracting Party’s employees, servants, representatives, or agents, or in fixing their number or hours of service. Contracting Party shall perform all Services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Contracting Party shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Contracting Party in its business or otherwise or a joint venture or a member of any joint enterprise with Contracting Party. Contracting Party shall have no power to incur any debt, obligation, or liability on behalf of City. Contracting Party shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. Except for the Contract Sum paid to Contracting Party as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Contracting Party for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Contracting Party for injury or sickness arising out of performing the Services hereunder. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Contracting Party and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits. Contracting Party agrees to pay all required taxes on amounts paid to Contracting Party under this Agreement, and to indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Contracting Party shall fully comply with the workers’ compensation laws regarding Contracting Party and Contracting Party’s employees. Contracting Party further agrees to indemnify and hold City harmless from any failure of Contracting Party to comply with applicable workers’ compensation laws. City shall have the right to offset against the amount of any payment due to Contracting Party under this Agreement any amount due to City from Contracting Party as a result of Contracting Party’s failure to promptly pay to City any reimbursement or indemnification arising under this Section. 4.5 Identity of Persons Performing Work. Contracting Party represents that it employs or will employ at its own expense all personnel required for the satisfactory performance of any and all of the Services set forth herein. Contracting Party represents 82 -7- that the Services required herein will be performed by Contracting Party or under its direct supervision, and that all personnel engaged in such work shall be fully qualified and shall be authorized and permitted under applicable State and local law to perform such tasks and services. 4.6 City Cooperation. City shall provide Contracting Party with any plans, publications, reports, statistics, records, or other data or information pertinent to the Services to be performed hereunder which are reasonably available to Contracting Party only from or through action by City. 5. INSURANCE. 5.1 Insurance. Prior to the beginning of any Services under this Agreement and throughout the duration of the term of this Agreement, Contracting Party shall procure and maintain, at its sole cost and expense, and submit concurrently with its execution of this Agreement, policies of insurance as set forth in “Exhibit E” (the “Insurance Requirements”) which is incorporated herein by this reference and expressly made a part hereof. 5.2 Proof of Insurance. Contracting Party shall provide Certificate of Insurance to Agency along with all required endorsements. Certificate of Insurance and endorsements must be approved by Agency’s Risk Manager prior to commencement of performance. 6. INDEMNIFICATION. 6.1 Indemnification. To the fullest extent permitted by law, Contracting Party shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officers, employees, agents, and volunteers as set forth in “Exhibit F” (“Indemnification”) which is incorporated herein by this reference and expressly made a part hereof. 7. RECORDS AND REPORTS. 7.1 Reports. Contracting Party shall periodically prepare and submit to the Contract Officer, or assigned designee, such reports concerning Contracting Party’s performance of the Services required by this Agreement as the Contract Officer, or assigned designee, shall require. Contracting Party hereby acknowledges that City is greatly concerned about the cost of the Services to be performed pursuant to this Agreement. For this reason, Contracting Party agrees that if Contracting Party becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Services contemplated herein or, if Contracting Party is providing design services, the cost of the project being designed, Contracting Party shall promptly notify the Contract Officer, or assigned designee, of said fact, circumstance, technique, or event and the estimated increased or decreased cost related thereto and, if Contracting Party is providing design services, the estimated increased or decreased cost estimate for the project being designed. 83 -8- 7.2 Records. Contracting Party shall keep, and require any subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports (including but not limited to payroll reports), studies, or other documents relating to the disbursements charged to City and the Services performed hereunder (the “Books and Records”), as shall be necessary to perform the Services required by this Agreement and enable the Contract Officer, or assigned designee, to evaluate the performance of such Services. Any and all such Books and Records shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer, or assigned designee, shall have full and free access to such Books and Records at all times during normal business hours of City, including the right to inspect, copy, audit, and make records and transcripts from such Books and Records. Such Books and Records shall be maintained for a period of three (3) years following completion of the Services hereunder, and City shall have access to such Books and Records in the event any audit is required. In the event of dissolution of Contracting Party’s business, custody of the Books and Records may be given to City, and access shall be provided by Contracting Party’s successor in interest. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds Ten Thousand Dollars ($10,000.00), this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of City, for a period of three (3) years after final payment under this Agreement. 7.3 Ownership of Documents. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents, and other materials plans, drawings, estimates, test data, survey results, models, renderings, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings, digital renderings, or data stored digitally, magnetically, or in any other medium prepared or caused to be prepared by Contracting Party, its employees, subcontractors, and agents in the performance of this Agreement (the “Documents and Materials”) shall be the property of City and shall be delivered to City upon request of the Contract Officer, or assigned designee, or upon the expiration or termination of this Agreement, and Contracting Party shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the Documents and Materials hereunder. Any use, reuse or assignment of such completed Documents and Materials for other projects and/or use of uncompleted documents without specific written authorization by Contracting Party will be at City’s sole risk and without liability to Contracting Party, and Contracting Party’s guarantee and warranties shall not extend to such use, revise, or assignment. Contracting Party may retain copies of such Documents and Materials for its own use. Contracting Party shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any Documents and Materials prepared by them, and in the event Contracting Party fails to secure such assignment, Contracting Party shall indemnify City for all damages resulting therefrom. 7.4 In the event City or any person, firm, or corporation authorized by City reuses said Documents and Materials without written verification or adaptation by Contracting Party for the specific purpose intended and causes to be made or makes any 84 -9- changes or alterations in said Documents and Materials, City hereby releases, discharges, and exonerates Contracting Party from liability resulting from said change. The provisions of this clause shall survive the termination or expiration of this Agreement and shall thereafter remain in full force and effect. 7.5 Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, rights of reproduction, and other intellectual property embodied in the Documents and Materials. Contracting Party shall require all subcontractors, if any, to agree in writing that City is granted a non-exclusive and perpetual license for the Documents and Materials the subcontractor prepares under this Agreement. Contracting Party represents and warrants that Contracting Party has the legal right to license any and all of the Documents and Materials. Contracting Party makes no such representation and warranty in regard to the Documents and Materials which were prepared by design professionals other than Contracting Party or provided to Contracting Party by City. City shall not be limited in any way in its use of the Documents and Materials at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk. 7.6 Release of Documents. The Documents and Materials shall not be released publicly without the prior written approval of the Contract Officer, or assigned designee, or as required by law. Contracting Party shall not disclose to any other entity or person any information regarding the activities of City, except as required by law or as authorized by City. 7.7 Confidential or Personal Identifying Information. Contracting Party covenants that all City data, data lists, trade secrets, documents with personal identifying information, documents that are not public records, draft documents, discussion notes, or other information, if any, developed or received by Contracting Party or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Contracting Party to any person or entity without prior written authorization by City or unless required by law. City shall grant authorization for disclosure if required by any lawful administrative or legal proceeding, court order, or similar directive with the force of law. All City data, data lists, trade secrets, documents with personal identifying information, documents that are not public records, draft documents, discussions, or other information shall be returned to City upon the termination or expiration of this Agreement. Contracting Party’s covenant under this section shall survive the termination or expiration of this Agreement. 8. ENFORCEMENT OF AGREEMENT. 8.1 California Law. This Agreement shall be interpreted, construed, and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and 85 -10- Contracting Party covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 8.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer, or assigned designee; provided that if the default is an immediate danger to the health, safety, or general welfare, City may take such immediate action as City deems warranted. Compliance with the provisions of this Section shall be a condition precedent to termination of this Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party’s right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City’s right to terminate this Agreement without cause pursuant to this Article 8.0. During the period of time that Contracting Party is in default, City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, City may, in its sole discretion, elect to pay some or all of the outstanding invoices during any period of default. 8.3 Retention of Funds. City may withhold from any monies payable to Contracting Party sufficient funds to compensate City for any losses, costs, liabilities, or damages it reasonably believes were suffered by City due to the default of Contracting Party in the performance of the Services required by this Agreement. 8.4 Waiver. No delay or omission in the exercise of any right or remedy of a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. City’s consent or approval of any act by Contracting Party requiring City’s consent or approval shall not be deemed to waive or render unnecessary City’s consent to or approval of any subsequent act of Contracting Party. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 8.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 8.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, at law or at equity, to cure, correct, or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. 8.7 Termination Prior To Expiration of Term. This Section shall govern any termination of this Agreement, except as specifically provided in the following Section for 86 -11- termination for cause. City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days’ written notice to Contracting Party. Upon receipt of any notice of termination, Contracting Party shall immediately cease all Services hereunder except such as may be specifically approved by the Contract Officer, or assigned designee. Contracting Party shall be entitled to compensation for all Services rendered prior to receipt of the notice of termination and for any Services authorized by the Contract Officer, or assigned designee, thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, or assigned designee, except amounts held as a retention pursuant to this Agreement. 8.8 Termination for Default of Contracting Party. If termination is due to the failure of Contracting Party to fulfill its obligations under this Agreement, Contracting Party shall vacate any City-owned property which Contracting Party is permitted to occupy hereunder and City may, after compliance with the provisions of Section 8.2, take over the Services and prosecute the same to completion by contract or otherwise, and Contracting Party shall be liable to the extent that the total cost for completion of the Services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Contracting Party for the purpose of setoff or partial payment of the amounts owed City. 8.9 Attorneys’ Fees. If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorneys’ fees; provided, however, that the attorneys’ fees awarded pursuant to this Section shall not exceed the hourly rate paid by City for legal services multiplied by the reasonable number of hours spent by the prevailing party in the conduct of the litigation. Attorneys’ fees shall include attorneys’ fees on any appeal, and in addition a party entitled to attorneys’ fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery, and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. The court may set such fees in the same action or in a separate action brought for that purpose. 9. CITY OFFICERS AND EMPLOYEES; NONDISCRIMINATION. 9.1 Non-liability of City Officers and Employees. No officer, official, employee, agent, representative, or volunteer of City shall be personally liable to Contracting Party, or any successor in interest, in the event or any default or breach by City or for any amount which may become due to Contracting Party or to its successor, or for breach of any obligation of the terms of this Agreement. 9.2 Conflict of Interest. Contracting Party covenants that neither it, nor any officer or principal of it, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder 87 -12- Contracting Party’s performance of the Services under this Agreement. Contracting Party further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent, or subcontractor without the express written consent of the Contract Officer, or assigned designee. Contracting Party agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement. No officer or employee of City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to this Agreement which effects his financial interest or the financial interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. Contracting Party warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement. 9.3 Covenant against Discrimination. Contracting Party covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any impermissible classification including, but not limited to, race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry in the performance of this Agreement. Contracting Party shall take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry. 10. MISCELLANEOUS PROVISIONS. 10.1 Notice. Any notice, demand, request, consent, approval, or communication either party desires or is required to give the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this Section. To City: CITY OF LA QUINTA Attention: Alfred Berumen 78495 Calle Tampico La Quinta, California 92253 To Contracting Party: Rivco Mechanical Services, Inc. Attention: Marvin Scott 42941 Madio St. Indio, CA 92201 10.2 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. 88 -13- 10.3 Section Headings and Subheadings. The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement. 10.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument. 10.5 Integrated Agreement. This Agreement including the exhibits hereto is the entire, complete, and exclusive expression of the understanding of the parties. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements, and understandings, if any, between the parties, and none shall be used to interpret this Agreement. 10.6 Amendment. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by Contracting Party and by the City Council of City. The parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void. 10.7 Severability. In the event that any one or more of the articles, phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable, such invalidity or unenforceability shall not affect any of the remaining articles, phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless. 10.8 Unfair Business Practices Claims. In entering into this Agreement, Contracting Party offers and agrees to assign to City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials related to this Agreement. This assignment shall be made and become effective at the time City renders final payment to Contracting Party without further acknowledgment of the parties. 10.9 No Third-Party Beneficiaries. With the exception of the specific provisions set forth in this Agreement, there are no intended third-party beneficiaries under this Agreement and no such other third parties shall have any rights or obligations hereunder. 10.10 Authority. The persons executing this Agreement on behalf of each of the parties hereto represent and warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of 89 -14- any other Agreement to which said party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors, and assigns of the parties. [SIGNATURES ON FOLLOWING PAGE] 90 -15- IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. CITY OF LA QUINTA, a California Municipal Corporation JON MCMILLEN, City Manager City of La Quinta, California Dated: RIVCO MECHANICAL SERVICES, INC.: By: Name: Title: ATTEST: MONIKA RADEVA, City Clerk City of La Quinta, California By: Name: Title: APPROVED AS TO FORM: WILLIAM H. IHRKE, City Attorney City of La Quinta, California 91 Exhibit A Page 1 of 5 Last revised summer 2017 Exhibit A Scope of Services 1. Services to be Provided: Complete HVAC controls and Mechanical replacement and repair services, including but not limited to: HVAC maintenance, repair and replacement services on an on-call, as- needed basis. The proposed work includes providing regularly scheduled HVAC maintenance services and appropriate supplies to effectively and safely maintain functioning HVAC systems for specified City facilities in accordance with the best standards of practice. The services and tasks to be performed include the furnishing of all labor, materials, tools, equipment, supplies, tasks, and incidental and customary work necessary to competently perform HVAC services, repair, and replacement work at various City facilities, projects, and locations. Provide all labor and additional materials to maintain, repair or replace existing heating, ventilating and air conditioning systems including but not limited to: • Inspect and identify a variety of HVAC systems at a variety of facilities (City Hall, Library, Wellness Center, Museum, Fire Stations (3), Silver Rock Resort, Silver Rock Event Building, Park Buildings (2), X-Park building, Public Works building and the Old Lumber Yard) • Replace, repair, and perform preventative maintenance of a variety of HVAC systems (Air cooled chiller units, air cooled condensing units, air handling units, fan coil units, boilers, packaged units, mini splits, split system heat pumps, and evaporative coolers) • Inspect units for needed preventative maintenance, repairs and replacement (contactors, fan motors, capacitors, fuses, and belts) • Replace all filters and wash coils quarterly or as needed • Inspect air handler motors, pulleys and belts, lubricate, and replace as needed • All condensation drains cleaned, clear of clogs and debris • Other typical and common miscellaneous HVAC repairs and work • Replacement of ageing units as needed to include units requiring R-22 • The work should include all preparation, replacement and repairs unless otherwise stated by the City • All replacement materials to be used will be approved by the Facilities Superintendent 92 Exhibit A Page 2 of 5 • All filters to be provided by the City • All work shall be to applicable codes and to the satisfaction of the City • Contractor shall have a dedicated technician for emergencies available to respond within 2 hours 93 Exhibit A Page 3 of 5 ADDENDUM TO AGREEMENT Re: Scope of Services If the Scope of Services include construction, alteration, demolition, installation, repair, or maintenance affecting real property or structures or improvements of any kind appurtenant to real property, the following apply: 1. Prevailing Wage Compliance. If Contracting Party is a contractor performing public works and maintenance projects, as described in this Section 1.3, Contracting Party shall comply with applicable Federal, State, and local laws. Contracting Party is aware of the requirements of California Labor Code Sections 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Sections 16000, et seq., (collectively, the “Prevailing Wage Laws”), and La Quinta Municipal Code Section 3.12.040, which require the payment of prevailing wage rates and the performance of other requirements on “Public works” and “Maintenance” projects. If the Services are being performed as part of an applicable “Public works” or “Maintenance” project, as defined by the Prevailing Wage Laws, and if construction work over twenty- five thousand dollars ($25,000.00) and/or alterations, demolition, repair or maintenance work over fifteen thousand dollars ($15,000.00) is entered into or extended on or after January 1, 2015 by this Agreement, Contracting Party agrees to fully comply with such Prevailing Wage Laws including, but not limited to, requirements related to the maintenance of payroll records and the employment of apprentices. Pursuant to California Labor Code Section 1725.5, no contractor or subcontractor may be awarded a contract for public work on a “Public works” project unless registered with the California Department of Industrial Relations (“DIR”) at the time the contract is awarded. If the Services are being performed as part of an applicable “Public works” or “Maintenance” project, as defined by the Prevailing Wage Laws, this project is subject to compliance monitoring and enforcement by the DIR. Contracting Party will maintain and will require all subcontractors to maintain valid and current DIR Public Works contractor registration during the term of this Agreement. Contracting Party shall notify City in writing immediately, and in no case more than twenty-four (24) hours, after receiving any information that Contracting Party’s or any of its subcontractor’s DIR registration status has been suspended, revoked, expired, or otherwise changed. It is understood that it is the responsibility of Contracting Party to determine the correct salary scale. Contracting Party shall make copies of the prevailing rates of per diem wages for each craft, classification, or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at Contracting Party’s principal place of business and at the project site, if any. The statutory penalties for failure to pay prevailing wage or to comply with State wage and hour laws will be enforced. Contracting Party must forfeit to City TWENTY-FIVE DOLLARS ($25.00) per day for each worker who works in excess of the minimum working hours when Contracting Party does not pay overtime. In accordance with the provisions of Labor Code Sections 1810 et seq., eight (8) hours is the legal working day. Contracting Party also shall comply with State law requirements to maintain payroll records and shall provide for certified records and inspection of records as required by California Labor Code Section 1770 et seq., including Section 1776. In addition to the other indemnities provided under this Agreement, Contracting Party shall defend (with counsel selected by City), indemnify, and hold City, 94 Exhibit A Page 4 of 5 its elected officials, officers, employees, and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It is agreed by the parties that, in connection with performance of the Services, including, without limitation, any and all “Public works” (as defined by the Prevailing Wage Laws), Contracting Party shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law. Contracting Party acknowledges and agrees that it shall be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with such laws. Contracting Party shall require the same of all subcontractors. 2. Retention. Payments shall be made in accordance with the provisions of Article 2.0 of the Agreement. In accordance with said Sections, City shall pay Contracting Party a sum based upon ninety-five percent (95%) of the Contract Sum apportionment of the labor and materials incorporated into the Services under this Agreement during the month covered by said invoice. The remaining five percent (5%) thereof shall be retained as performance security to be paid to Contracting Party within sixty (60) days after final acceptance of the Services by the City Council of City, after Contracting Party has furnished City with a full release of all undisputed payments under this Agreement, if required by City. In the event there are any claims specifically excluded by Contracting Party from the operation of the release, City may retain proceeds (per Public Contract Code § 7107) of up to one hundred fifty percent (150%) of the amount in dispute. City’s failure to deduct or withhold shall not affect Contracting Party’s obligations under the Agreement. 3. Utility Relocation. City is responsible for removal, relocation, or protection of existing main or trunk-line utilities to the extent such utilities were not identified in the invitation for bids or specifications. City shall reimburse Contracting Party for any costs incurred in locating, repairing damage not caused by Contracting Party, and removing or relocating such unidentified utility facilities. Contracting Party shall not be assessed liquidated damages for delay arising from the removal or relocation of such unidentified utility facilities. 4. Trenches or Excavations. Pursuant to California Public Contract Code Section 7104, in the event the work included in this Agreement requires excavations more than four (4) feet in depth, the following shall apply: (a) Contracting Party shall promptly, and before the following conditions are disturbed, notify City, in writing, of any: (1) material that Contracting Party believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; (2) subsurface or latent physical conditions at the site different from those indicated by information about the site made available to bidders prior to the deadline for submitting bids; or (3) unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the Agreement. 95 Exhibit A Page 5 of 5 (b) City shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in Contracting Party’s cost of, or the time required for, performance of any part of the work shall issue a change order per Section 1.8 of the Agreement. (c) in the event that a dispute arises between City and Contracting Party whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contracting Party’s cost of, or time required for, performance of any part of the work, Contracting Party shall not be excused from any scheduled completion date provided for by this Agreement, but shall proceed with all work to be performed under this Agreement. Contracting Party shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the contracting Parties. 5. Safety. Contracting Party shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out the Services, Contracting Party shall at all times be in compliance with all applicable local, state, and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures. 6. Liquidated Damages. Since the determination of actual damages for any delay in performance of the Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, Contracting Party shall be liable for and shall pay to City the sum of One Thousand dollars ($1,000.00) as liquidated damages for each working day of delay in the performance of any of the Services required hereunder, as specified in the Schedule of Performance. In addition, liquidated damages may be assessed for failure to comply with the emergency call out requirements, if any, described in the Scope of Services. City may withhold from any moneys payable on account of the Services performed by Contracting Party any accrued liquidated damages. 96 Exhibit B Page 1 of 3 Exhibit B Schedule of Compensation For the avoidance of doubt, the compensation thresholds on this Exhibit B do not include compensation for Additional Services (if any) authorized pursuant to Section 1.7 and compensated pursuant to Section 2.3 of this Agreement. Contract Sum Compensation for Services shall not exceed the following Contract Sum for the entire life of this Agreement including the Initial and Extended terms: Three Million Eight Hundred Thousand Dollars ($3,800,000), to be paid for duly authorized Services performed consistent with the terms and conditions of this Agreement. Contracting Party expressly acknowledges and agrees that the Contract Sum in this Agreement is the aggregate total amount covering this Agreement, that certain Agreement for Contract Services by and between the City and Pacific West Industries, Inc., and that certain Agreement for Contract Service by and between the City and FM Thomas, of or about even date as this Agreement, such that the Contract Sum as defined herein is the maximum amount available for services provided under both agreements. The Contract Sum shall be paid to Contracting Party in installment payments made on a monthly basis and in an amount identified in Contracting Party’s schedule of compensation attached hereto for the work tasks performed and properly invoiced by Contracting Party in conformance with Section 2.2 of this Agreement. Initial Term: FY 2025/26 $200,000 FY 2026/27 $600,000 FY 2027/28 $600,000 FY 2028/29 $600,000 FY 2029/30 $600,000 Extended Term: FY 2030/31 $600,000 FY 2031/32 $600,000 97 Exhibit C 1 of 1 98 Exhibit C 1 of 1 Exhibit C Schedule of Performance Contracting Party shall complete all services identified in the Scope of Services, Exhibit A of this Agreement. 99 Exhibit D Page 1 of 1 Exhibit D Special Requirements None. 100 Exhibit E Page 1 of 6 Exhibit E Insurance Requirements E.1 Insurance. Prior to the beginning of and throughout the duration of this Agreement, the following policies checked below shall be maintained and kept in full force and effect providing insurance with minimum limits as indicated below and issued by insurers with A.M. Best ratings of no less than A-VI: Commercial General Liability (at least as broad as ISO CG 0001): $1,000,000 per occurrence/$2,000,000 aggregate OR $2,000,000 per occurrence/$4,000,000 aggregate Must include the following endorsements: General Liability Additional Insured General Liability Primary and Non-contributory Commercial Automobile Liability (at least as broad as ISO CA 0001): $1,000,000 combined single limit for bodily injury and property damage Auto Liability Additional Insured Workers’ Compensation (per statutory requirements): Statutory Limits / Employer’s Liability $1,000,000 per accident or disease OR Must include the following endorsements: Workers’ Compensation Endorsement with Waiver of Subrogation Workers’ Compensation Declaration of Sole Proprietor California Workers' Compensation Requirements Acknowledgement Professional Liability (Errors and Omissions): Errors and Omissions liability insurance with a limit of not less than $1,000,000 per claim Cyber Liability $1,000,000 per occurrence/$2,000,000 aggregate 101 Exhibit E Page 2 of 6 Contracting Party shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, Commercial General Liability insurance against all claims for injuries against persons or damages to property resulting from Contracting Party’s acts or omissions rising out of or related to Contracting Party’s performance under this Agreement. The insurance policy shall contain a severability of interest clause providing that the coverage shall be primary for losses arising out of Contracting Party’s performance hereunder and neither City nor its insurers shall be required to contribute to any such loss. An endorsement evidencing the foregoing and naming the City and its officers and employees as additional insured (on the Commercial General Liability policy only) must be submitted concurrently with the execution of this Agreement and approved by City prior to commencement of the services hereunder. Contracting Party shall carry automobile liability insurance of $1,000,000 per accident against all claims for injuries against persons or damages to property arising out of the use of any automobile by Contracting Party, its officers, any person directly or indirectly employed by Contracting Party, any subcontractor or agent, or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Contracting Party’s performance under this Agreement. If Contracting Party or Contracting Party’s employees will use personal autos in any way on this project, Contracting Party shall provide evidence of personal auto liability coverage for each such person. The term “automobile” includes, but is not limited to, a land motor vehicle, trailer or semi-trailer designed for travel on public roads. The automobile insurance policy shall contain a severability of interest clause providing that coverage shall be primary for losses arising out of Contracting Party’s performance hereunder and neither City nor its insurers shall be required to contribute to such loss. Contracting Party shall carry Workers’ Compensation Insurance in accordance with State Worker’s Compensation laws with employer’s liability limits no less than $1,000,000 per accident or disease. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Contracting Party and “Covered Professional Services” as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer’s duty to defend. The policy retroactive date shall be on or before the effective date of this agreement. Contracting Party shall procure and maintain Cyber Liability insurance with limits of $1,000,000 per occurrence/loss which shall include the following coverage: a. Liability arising from the theft, dissemination and/or use of confidential or personally identifiable information; including credit monitoring and regulatory fines arising from such theft, dissemination or use of the 102 Exhibit E Page 3 of 6 confidential information. b. Network security liability arising from the unauthorized use of, access to, or tampering with computer systems. c. Liability arising from the failure of technology products (software) required under the contract for Consultant to properly perform the services intended. d. Electronic Media Liability arising from personal injury, plagiarism or misappropriation of ideas, domain name infringement or improper deep- linking or framing, and infringement or violation of intellectual property rights. e. Liability arising from the failure to render professional services. If coverage is maintained on a claims-made basis, Contracting Party shall maintain such coverage for an additional period of three (3) years following termination of the contract. Contracting Party shall provide written notice to City within ten (10) working days if: (1) any of the required insurance policies is terminated; (2) the limits of any of the required polices are reduced; or (3) the deductible or self-insured retention is increased. In the event any of said policies of insurance are cancelled, Contracting Party shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Exhibit to the Contract Officer. The procuring of such insurance or the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Contracting Party’s obligation to indemnify City, its officers, employees, contractors, subcontractors, or agents. E.2 Remedies. In addition to any other remedies City may have if Contracting Party fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option: a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. b. Order Contracting Party to stop work under this Agreement and/or withhold any payment(s) which become due to Contracting Party hereunder until Contracting Party demonstrates compliance with the requirements hereof. c. Terminate this Agreement. Exercise any of the above remedies, however, is an alternative to any other remedies City may have. The above remedies are not the exclusive remedies for Contracting Party’s failure to maintain or secure appropriate policies or endorsements. Nothing herein contained shall be construed as limiting in any way the extent to which Contracting Party may be held responsible for payments of damages to persons or 103 Exhibit E Page 4 of 6 property resulting from Contracting Party’s or its subcontractors’ performance of work under this Agreement. E.3 General Conditions Pertaining to Provisions of Insurance Coverage by Contracting Party. Contracting Party and City agree to the following with respect to insurance provided by Contracting Party: 1. Contracting Party agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials, employees, and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Contracting Party also agrees to require all contractors, and subcontractors to do likewise. 2. No liability insurance coverage provided to comply with this Agreement shall prohibit Contracting Party, or Contracting Party’s employees, or agents, from waiving the right of subrogation prior to a loss. Contracting Party agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise. 3. All insurance coverage and limits provided by Contracting Party and available or applicable to this Agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to City or its operations limits the application of such insurance coverage. 4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 5. No liability policy shall contain any provision or definition that would serve to eliminate so-called “third party action over” claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor. 6. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Contracting Party shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City’s protection without City’s prior written consent. 7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all the coverages required and an additional insured endorsement to Contracting Party’s general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Contracting Party or deducted from sums due Contracting Party, at City option. 104 Exhibit E Page 5 of 6 8. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Contracting Party or any subcontractor, is intended to apply first and on a primary, non-contributing basis in relation to any other insurance or self-insurance available to City. 9. Contracting Party agrees to ensure that subcontractors, and any other party involved with the project that is brought onto or involved in the project by Contracting Party, provide the same minimum insurance coverage required of Contracting Party. Contracting Party agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contracting Party agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review. 10. Contracting Party agrees not to self-insure or to use any self-insured retentions or deductibles on any portion of the insurance required herein (with the exception of professional liability coverage, if required) and further agrees that it will not allow any contractor, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self-insure its obligations to City. If Contracting Party’s existing coverage includes a deductible or self-insured retention, the deductible or self-insured retention must be declared to the City. At that time the City shall review options with the Contracting Party, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions. 11. The City reserves the right at any time during the term of this Agreement to change the amounts and types of insurance required by giving the Contracting Party ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Contracting Party, the City will negotiate additional compensation proportional to the increased benefit to City. 12. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 13. Contracting Party acknowledges and agrees that any actual or alleged failure on the part of City to inform Contracting Party of non-compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard. 14. Contracting Party will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect. 15. Contracting Party shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with 105 Exhibit E Page 6 of 6 other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Contracting Party’s insurance agent to this effect is acceptable. A certificate of insurance and an additional insured endorsement is required in these specifications applicable to the renewing or new coverage must be provided to City within five (5) days of the expiration of coverages. 16. The provisions of any workers’ compensation or similar act will not limit the obligations of Contracting Party under this agreement. Contracting Party expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials, and agents. 17. Requirements of specific coverage features, or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be limiting or all-inclusive. 18. These insurance requirements are intended to be separate and distinct from any other provision in this Agreement and are intended by the parties here to be interpreted as such. 19. The requirements in this Exhibit supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Exhibit. 20. Contracting Party agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Contracting Party for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto. 21. Contracting Party agrees to provide immediate notice to City of any claim or loss against Contracting Party arising out of the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. 106 Exhibit F Page 1 of 2 Exhibit F Indemnification F.1 Indemnity for the Benefit of City. a. Indemnification for Professional Liability. When the law establishes a professional standard of care for Contracting Party’s Services, to the fullest extent permitted by law, Contracting Party shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officials, employees, and agents (“Indemnified Parties”) from and against any and all claims, losses, liabilities of every kind, nature, and description, damages, injury (including, without limitation, injury to or death of an employee of Contracting Party or of any subcontractor), costs and expenses of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation, to the extent same are caused in whole or in part by any negligent or wrongful act, error or omission of Contracting Party, its officers, agents, employees or subcontractors (or any entity or individual that Contracting Party shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Contracting Party shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A without the written consent of the Contracting Party. b. Indemnification for Other Than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Contracting Party shall indemnify, defend (with counsel selected by City), and hold harmless the Indemnified Parties from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses) incurred in connection therewith and costs of investigation, where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Contracting Party or by any individual or entity for which Contracting Party is legally liable, including but not limited to officers, agents, employees, or subcontractors of Contracting Party. c. Indemnity Provisions for Contracts Related to Construction (Limitation on Indemnity). Without affecting the rights of City under any provision of this agreement, Contracting Party shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City’s active negligence accounts for only a percentage of the liability involved, the obligation of Contracting Party will be for that entire portion or percentage of liability not attributable to the active negligence of City. 107 Exhibit F Page 2 of 2 d. Indemnification Provision for Design Professionals. 1. Applicability of this Section F.1(d). Notwithstanding Section F.1(a) hereinabove, the following indemnification provision shall apply to a Contracting Party who constitutes a “design professional” as the term is defined in paragraph 3 below. 2. Scope of Indemnification. When the law establishes a professional standard of care for Contracting Party’s Services, to the fullest extent permitted by law, Contracting Party shall indemnify and hold harmless City and any and all of its officials, employees, and agents (“Indemnified Parties”) from and against any and all losses, liabilities of every kind, nature, and description, damages, injury (including, without limitation, injury to or death of an employee of Contracting Party or of any subcontractor), costs and expenses, including, without limitation, incidental and consequential damages, court costs, reimbursement of attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation, to the extent same are caused by any negligent or wrongful act, error or omission of Contracting Party, its officers, agents, employees or subcontractors (or any entity or individual that Contracting Party shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Contracting Party shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A without the written consent of the Contracting Party. 3. Design Professional Defined. As used in this Section F.1(d), the term “design professional” shall be limited to licensed architects, registered professional engineers, licensed professional land surveyors and landscape architects, all as defined under current law, and as may be amended from time to time by Civil Code § 2782.8. F.2 Obligation to Secure Indemnification Provisions. Contracting Party agrees to obtain executed indemnity agreements with provisions identical to those set forth herein this Exhibit F, as applicable to the Contracting Party, from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Contracting Party in the performance of this Agreement. In the event Contracting Party fails to obtain such indemnity obligations from others as required herein, Contracting Party agrees to be fully responsible according to the terms of this Exhibit. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth in this Agreement are binding on the successors, assigns or heirs of Contracting Party and shall survive the termination of this Agreement. 108 Revised – Sept. 2025 AGREEMENT FOR CONTRACT SERVICES This Agreement for Contract Services (the “Agreement”) is made and entered into by and between the City of La Quinta, (“City”), a California Municipal Corporation and Charter City organized under the Constitution and laws of the State of California with its principal place of business at 78495 Calle Tampico, La Quinta, California 92253, and F.M. Thomas Air Conditioning, Inc., with a place of business at 231 Gemini Ave, Brea, CA 92821 (“Contracting Party”). The parties hereto agree as follows: 1.SERVICES OF CONTRACTING PARTY. 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Contracting Party shall provide those services related to On-Call HVAC Maintenance, as specified in the “Scope of Services” attached hereto as “Exhibit A” and incorporated herein by this reference (the “Services”). Contracting Party represents and warrants that Contracting Party is a provider of first-class work and/or services and Contracting Party is experienced in performing the Services contemplated herein and, in light of such status and experience, Contracting Party covenants that it shall follow industry standards in performing the Services required hereunder, and that all materials, if any, will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase “industry standards” shall mean those standards of practice recognized by one or more first-class firms performing similar services under similar circumstances. 1.2 Compliance with Law. All Services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations, and laws of the City and any Federal, State, or local governmental agency of competent jurisdiction. 1.3 Wage and Hour Compliance. Contracting Party shall comply with applicable Federal, State, and local wage and hour laws. 1.4 Licenses, Permits, Fees and Assessments. Except as otherwise specified herein, Contracting Party shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of the Services required by this Agreement, including a City of La Quinta business license. Contracting Party and its employees, agents, and subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required for the performance of the Services required by this Agreement. Contracting Party shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the performance of the Services required by this Agreement, and shall indemnify, defend (with counsel selected by City), and hold City, its elected officials, officers, employees, and agents, free and harmless against any such fees, assessments, taxes, penalties, or interest levied, assessed, or imposed against City hereunder. Contracting Party shall be responsible for all subcontractors’ compliance with this Section. ATTACHMENT 3 109 -2- 1.5 Familiarity with Work. By executing this Agreement, Contracting Party warrants that (a) it has thoroughly investigated and considered the Services to be performed, (b) it has investigated the site where the Services are to be performed, if any, and fully acquainted itself with the conditions there existing, (c) it has carefully considered how the Services should be performed, and (d) it fully understands the facilities, difficulties, and restrictions attending performance of the Services under this Agreement. Should Contracting Party discover any latent or unknown conditions materially differing from those inherent in the Services or as represented by City, Contracting Party shall immediately inform City of such fact and shall not proceed except at Contracting Party’s risk until written instructions are received from the Contract Officer, or assigned designee (as defined in Section 4.2 hereof). 1.6 Standard of Care. Contracting Party acknowledges and understands that the Services contracted for under this Agreement require specialized skills and abilities and that, consistent with this understanding, Contracting Party’s work will be held to an industry standard of quality and workmanship. Consistent with Section 1.5 hereinabove, Contracting Party represents to City that it holds the necessary skills and abilities to satisfy the industry standard of quality as set forth in this Agreement. Contracting Party shall adopt reasonable methods during the life of this Agreement to furnish continuous protection to the Services performed by Contracting Party, and the equipment, materials, papers, and other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the Services by City, except such losses or damages as may be caused by City’s own negligence. The performance of Services by Contracting Party shall not relieve Contracting Party from any obligation to correct any incomplete, inaccurate, or defective work at no further cost to City, when such inaccuracies are due to the negligence of Contracting Party. 1.7 Additional Services. In accordance with the terms and conditions of this Agreement, Contracting Party shall perform services in addition to those specified in the Scope of Services (“Additional Services”) only when directed to do so by the Contract Officer, or assigned designee, provided that Contracting Party shall not be required to perform any Additional Services without compensation. Contracting Party shall not perform any Additional Services until receiving prior written authorization through a duly executed written amendment or change order from the Contract Officer, or assigned designee, incorporating therein any adjustment in (i) the Contract Sum, in accordance with Section 2.3 of this Agreement, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of Contracting Party. It is expressly understood by Contracting Party that the provisions of this Section shall not apply to the Services specifically set forth in the Scope of Services or reasonably contemplated therein. It is specifically understood and agreed that oral requests and/or approvals of Additional Services shall be barred and are unenforceable. Failure of Contracting Party to secure the Contract Officer’s, or assigned designee’s written, authorization for Additional Services shall constitute a waiver of any and all right to adjustment of the Contract Sum or time to perform this Agreement, whether by way of compensation, restitution, quantum meruit, or the like, for Additional Services provided without the appropriate authorization from the Contract Officer, or assigned designee. 110 -3- 1.8 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in “Exhibit D” (the “Special Requirements”), which is incorporated herein by this reference and expressly made a part hereof. In the event of a conflict between the provisions of the Special Requirements and any other provisions of this Agreement, the provisions of the Special Requirements shall govern. 2. COMPENSATION. 2.1 Contract Sum. For the Services rendered pursuant to this Agreement, Contracting Party shall be compensated in accordance with “Exhibit B” (the “Schedule of Compensation”) in a total amount not to exceed Three Million Eight Hundred Thousand Dollars ($3,800,000), for the life of the Agreement, encompassing the Initial and any Extended Terms (the “Contract Sum”), except as provided in Section 1.7. Contracting Party expressly acknowledges and agrees that the Contract Sum in this Agreement is the aggregate total amount covering this Agreement, that certain Agreement for Contract Services by and between the City and Pacific West Industries, Inc., and that certain Agreement for Contract Services by and between the City and Rivco Mechanical Services, Inc., of or about even date as this Agreement, such that the Contract Sum as defined herein is the maximum amount available for services provided under all three agreements. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment in accordance with the percentage of completion of the Services, payment for time and materials based upon Contracting Party’s rate schedule, but not exceeding the Contract Sum, or such other reasonable methods as may be specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Contracting Party at all project meetings reasonably deemed necessary by City; Contracting Party shall not be entitled to any additional compensation for attending said meetings. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses when and if specified in the Schedule of Compensation. Regardless of the method of compensation set forth in the Schedule of Compensation, Contracting Party’s overall compensation shall not exceed the Contract Sum, except as provided in Section 1.7 of this Agreement. 2.2 Method of Billing & Payment. Any month in which Contracting Party wishes to receive payment, Contracting Party shall submit to City no later than the tenth (10th) working day of such month, in the form approved by City’s Finance Director, an invoice for Services rendered prior to the date of the invoice. Such invoice shall (1) describe in detail the Services provided, including time and materials, and (2) specify each staff member who has provided Services and the number of hours assigned to each such staff member. Such invoice shall contain a certification by a principal member of Contracting Party specifying that the payment requested is for Services performed in accordance with the terms of this Agreement. Upon approval in writing by the Contract Officer, or assigned designee, and subject to retention pursuant to Section 8.3, City will pay Contracting Party for all items stated thereon which are approved by City pursuant to this Agreement no later than thirty (30) days after invoices are received by the City’s Finance Department. 111 -4- 2.3 Compensation for Additional Services. Additional Services approved in advance by the Contract Officer, or assigned designee, pursuant to Section 1.7 of this Agreement shall be paid for in an amount agreed to in writing through a duly executed amendment or change order by both City and Contracting Party in advance of the Additional Services being rendered by Contracting Party. Any compensation for Additional Services amounting to five percent (5%) of the Contract Sum or Fifteen Thousand Dollars ($15,000), whichever is less, may be approved by the Contract Officer, or assigned designee. Any greater amount of compensation for Additional Services must be approved by the La Quinta City Council, the City Manager, or Department Director, depending upon City laws, regulations, rules and procedures concerning public contracting. Under no circumstances shall Contracting Party receive compensation for any Additional Services without prior written approval through a duly executed amendment or change order for the Additional Services is obtained from the Contract Officer, or assigned designee, pursuant to Section 1.7 of this Agreement. 3. PERFORMANCE SCHEDULE. 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. If the Services are not completed in accordance with the Schedule of Performance, as set forth in Section 3.2 and “Exhibit C”, it is understood that the City will suffer damage. 3.2 Schedule of Performance. All Services rendered pursuant to this Agreement shall be performed diligently and within the time period established in “Exhibit C” (the “Schedule of Performance”). Extensions to the time period specified in the Schedule of Performance may be approved in writing by the Contract Officer, or assigned designee. 3.3 Force Majeure. The time period specified in the Schedule of Performance for performance of the Services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Contracting Party, including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than City, and unusually severe weather, if Contracting Party shall within ten (10) days of the commencement of such delay notify the Contract Officer, or assigned designee, in writing of the causes of the delay. The Contract Officer, or assigned designee, shall ascertain the facts and the extent of delay, and extend the time for performing the Services for the period of the forced delay when and if in the Contract Officer’s judgment such delay is justified, and the Contract Officer’s determination, or assigned designee, shall be final and conclusive upon the parties to this Agreement. Extensions to time period in the Schedule of Performance which are determined by the Contract Officer, or assigned designee, to be justified pursuant to this Section shall not entitle the Contracting Party to additional compensation in excess of the Contract Sum. 3.4 Term. Unless earlier terminated in accordance with the provisions in Article 8.0 of this Agreement, the term of this agreement shall commence on March 18, 112 -5- 2026, and terminate on June 30, 2030 (“Initial Term”). This Agreement may be extended for two additional year(s) upon mutual agreement by both parties (“Extended Term”), and executed in writing. 4. COORDINATION OF WORK. 4.1 Representative of Contracting Party. The following principals of Contracting Party (“Principals”) are hereby designated as being the principals and representatives of Contracting Party authorized to act in its behalf with respect to the Services specified herein and make all decisions in connection therewith: (a) Name: Michael Feyka, Vice President Telephone No.: (800) 660-0891 Email: mfeyka@fmthomas.com It is expressly understood that the experience, knowledge, capability, and reputation of the foregoing Principals were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing Principals shall be responsible during the term of this Agreement for directing all activities of Contracting Party and devoting sufficient time to personally supervise the Services hereunder. For purposes of this Agreement, the foregoing Principals may not be changed by Contracting Party and no other personnel may be assigned to perform the Services required hereunder without the express written approval of City. 4.2 Contract Officer. The “Contract Officer”, otherwise known as Alfred Berumen, Maintenance and Operations Superintendent, or assigned designee may be designated in writing by the City Manager of the City. It shall be Contracting Party’s responsibility to assure that the Contract Officer, or assigned designee, is kept informed of the progress of the performance of the Services, and Contracting Party shall refer any decisions, that must be made by City to the Contract Officer, or assigned designee. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer, or assigned designee. The Contract Officer, or assigned designee, shall have authority to sign all documents on behalf of City required hereunder to carry out the terms of this Agreement. 4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability, and reputation of Contracting Party, its principals, and its employees were a substantial inducement for City to enter into this Agreement. Except as set forth in this Agreement, Contracting Party shall not contract or subcontract with any other entity to perform in whole or in part the Services required hereunder without the express written approval of City. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated, or encumbered, voluntarily or by operation of law, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Contracting Party, taking all transfers into account on a cumulative basis. Any attempted or purported assignment or contracting or subcontracting by Contracting Party without City’s express written approval shall be null, void, and of no effect. No approved 113 -6- transfer shall release Contracting Party of any liability hereunder without the express consent of City. 4.4 Independent Contractor. Neither City nor any of its employees shall have any control over the manner, mode, or means by which Contracting Party, its agents, or its employees, perform the Services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge, supervision, or control of Contracting Party’s employees, servants, representatives, or agents, or in fixing their number or hours of service. Contracting Party shall perform all Services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Contracting Party shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Contracting Party in its business or otherwise or a joint venture or a member of any joint enterprise with Contracting Party. Contracting Party shall have no power to incur any debt, obligation, or liability on behalf of City. Contracting Party shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. Except for the Contract Sum paid to Contracting Party as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Contracting Party for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Contracting Party for injury or sickness arising out of performing the Services hereunder. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Contracting Party and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits. Contracting Party agrees to pay all required taxes on amounts paid to Contracting Party under this Agreement, and to indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Contracting Party shall fully comply with the workers’ compensation laws regarding Contracting Party and Contracting Party’s employees. Contracting Party further agrees to indemnify and hold City harmless from any failure of Contracting Party to comply with applicable workers’ compensation laws. City shall have the right to offset against the amount of any payment due to Contracting Party under this Agreement any amount due to City from Contracting Party as a result of Contracting Party’s failure to promptly pay to City any reimbursement or indemnification arising under this Section. 4.5 Identity of Persons Performing Work. Contracting Party represents that it employs or will employ at its own expense all personnel required for the satisfactory performance of any and all of the Services set forth herein. Contracting Party represents that the Services required herein will be performed by Contracting Party or under its direct supervision, and that all personnel engaged in such work shall be fully qualified and shall be authorized and permitted under applicable State and local law to perform such tasks and services. 114 -7- 4.6 City Cooperation. City shall provide Contracting Party with any plans, publications, reports, statistics, records, or other data or information pertinent to the Services to be performed hereunder which are reasonably available to Contracting Party only from or through action by City. 5. INSURANCE. 5.1 Insurance. Prior to the beginning of any Services under this Agreement and throughout the duration of the term of this Agreement, Contracting Party shall procure and maintain, at its sole cost and expense, and submit concurrently with its execution of this Agreement, policies of insurance as set forth in “Exhibit E” (the “Insurance Requirements”) which is incorporated herein by this reference and expressly made a part hereof. 5.2 Proof of Insurance. Contracting Party shall provide Certificate of Insurance to Agency along with all required endorsements. Certificate of Insurance and endorsements must be approved by Agency’s Risk Manager prior to commencement of performance. 6. INDEMNIFICATION. 6.1 Indemnification. To the fullest extent permitted by law, Contracting Party shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officers, employees, agents, and volunteers as set forth in “Exhibit F” (“Indemnification”) which is incorporated herein by this reference and expressly made a part hereof. 7. RECORDS AND REPORTS. 7.1 Reports. Contracting Party shall periodically prepare and submit to the Contract Officer, or assigned designee, such reports concerning Contracting Party’s performance of the Services required by this Agreement as the Contract Officer, or assigned designee, shall require. Contracting Party hereby acknowledges that City is greatly concerned about the cost of the Services to be performed pursuant to this Agreement. For this reason, Contracting Party agrees that if Contracting Party becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Services contemplated herein or, if Contracting Party is providing design services, the cost of the project being designed, Contracting Party shall promptly notify the Contract Officer, or assigned designee, of said fact, circumstance, technique, or event and the estimated increased or decreased cost related thereto and, if Contracting Party is providing design services, the estimated increased or decreased cost estimate for the project being designed. 7.2 Records. Contracting Party shall keep, and require any subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports (including but not limited to payroll reports), studies, or other documents relating to the disbursements charged to City and the Services performed hereunder (the “Books and Records”), as shall be necessary to perform the Services required by this Agreement and 115 -8- enable the Contract Officer, or assigned designee, to evaluate the performance of such Services. Any and all such Books and Records shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer, or assigned designee, shall have full and free access to such Books and Records at all times during normal business hours of City, including the right to inspect, copy, audit, and make records and transcripts from such Books and Records. Such Books and Records shall be maintained for a period of three (3) years following completion of the Services hereunder, and City shall have access to such Books and Records in the event any audit is required. In the event of dissolution of Contracting Party’s business, custody of the Books and Records may be given to City, and access shall be provided by Contracting Party’s successor in interest. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds Ten Thousand Dollars ($10,000.00), this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of City, for a period of three (3) years after final payment under this Agreement. 7.3 Ownership of Documents. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents, and other materials plans, drawings, estimates, test data, survey results, models, renderings, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings, digital renderings, or data stored digitally, magnetically, or in any other medium prepared or caused to be prepared by Contracting Party, its employees, subcontractors, and agents in the performance of this Agreement (the “Documents and Materials”) shall be the property of City and shall be delivered to City upon request of the Contract Officer, or assigned designee, or upon the expiration or termination of this Agreement, and Contracting Party shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the Documents and Materials hereunder. Any use, reuse or assignment of such completed Documents and Materials for other projects and/or use of uncompleted documents without specific written authorization by Contracting Party will be at City’s sole risk and without liability to Contracting Party, and Contracting Party’s guarantee and warranties shall not extend to such use, revise, or assignment. Contracting Party may retain copies of such Documents and Materials for its own use. Contracting Party shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any Documents and Materials prepared by them, and in the event Contracting Party fails to secure such assignment, Contracting Party shall indemnify City for all damages resulting therefrom. 7.4 In the event City or any person, firm, or corporation authorized by City reuses said Documents and Materials without written verification or adaptation by Contracting Party for the specific purpose intended and causes to be made or makes any changes or alterations in said Documents and Materials, City hereby releases, discharges, and exonerates Contracting Party from liability resulting from said change. The provisions of this clause shall survive the termination or expiration of this Agreement and shall thereafter remain in full force and effect. 116 -9- 7.5 Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, rights of reproduction, and other intellectual property embodied in the Documents and Materials. Contracting Party shall require all subcontractors, if any, to agree in writing that City is granted a non-exclusive and perpetual license for the Documents and Materials the subcontractor prepares under this Agreement. Contracting Party represents and warrants that Contracting Party has the legal right to license any and all of the Documents and Materials. Contracting Party makes no such representation and warranty in regard to the Documents and Materials which were prepared by design professionals other than Contracting Party or provided to Contracting Party by City. City shall not be limited in any way in its use of the Documents and Materials at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk. 7.6 Release of Documents. The Documents and Materials shall not be released publicly without the prior written approval of the Contract Officer, or assigned designee, or as required by law. Contracting Party shall not disclose to any other entity or person any information regarding the activities of City, except as required by law or as authorized by City. 7.7 Confidential or Personal Identifying Information. Contracting Party covenants that all City data, data lists, trade secrets, documents with personal identifying information, documents that are not public records, draft documents, discussion notes, or other information, if any, developed or received by Contracting Party or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Contracting Party to any person or entity without prior written authorization by City or unless required by law. City shall grant authorization for disclosure if required by any lawful administrative or legal proceeding, court order, or similar directive with the force of law. All City data, data lists, trade secrets, documents with personal identifying information, documents that are not public records, draft documents, discussions, or other information shall be returned to City upon the termination or expiration of this Agreement. Contracting Party’s covenant under this section shall survive the termination or expiration of this Agreement. 8. ENFORCEMENT OF AGREEMENT. 8.1 California Law. This Agreement shall be interpreted, construed, and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Contracting Party covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 8.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so long 117 -10- as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer, or assigned designee; provided that if the default is an immediate danger to the health, safety, or general welfare, City may take such immediate action as City deems warranted. Compliance with the provisions of this Section shall be a condition precedent to termination of this Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party’s right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City’s right to terminate this Agreement without cause pursuant to this Article 8.0. During the period of time that Contracting Party is in default, City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, City may, in its sole discretion, elect to pay some or all of the outstanding invoices during any period of default. 8.3 Retention of Funds. City may withhold from any monies payable to Contracting Party sufficient funds to compensate City for any losses, costs, liabilities, or damages it reasonably believes were suffered by City due to the default of Contracting Party in the performance of the Services required by this Agreement. 8.4 Waiver. No delay or omission in the exercise of any right or remedy of a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. City’s consent or approval of any act by Contracting Party requiring City’s consent or approval shall not be deemed to waive or render unnecessary City’s consent to or approval of any subsequent act of Contracting Party. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 8.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 8.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, at law or at equity, to cure, correct, or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. 8.7 Termination Prior To Expiration of Term. This Section shall govern any termination of this Agreement, except as specifically provided in the following Section for termination for cause. City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days’ written notice to Contracting Party. Upon receipt of any notice of termination, Contracting Party shall immediately cease all Services hereunder except such as may be specifically approved by the Contract Officer, or assigned designee. Contracting Party shall be entitled to compensation for all Services rendered prior to receipt of the notice of termination and for any Services 118 -11- authorized by the Contract Officer, or assigned designee, thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, or assigned designee, except amounts held as a retention pursuant to this Agreement. 8.8 Termination for Default of Contracting Party. If termination is due to the failure of Contracting Party to fulfill its obligations under this Agreement, Contracting Party shall vacate any City-owned property which Contracting Party is permitted to occupy hereunder and City may, after compliance with the provisions of Section 8.2, take over the Services and prosecute the same to completion by contract or otherwise, and Contracting Party shall be liable to the extent that the total cost for completion of the Services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Contracting Party for the purpose of setoff or partial payment of the amounts owed City. 8.9 Attorneys’ Fees. If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorneys’ fees; provided, however, that the attorneys’ fees awarded pursuant to this Section shall not exceed the hourly rate paid by City for legal services multiplied by the reasonable number of hours spent by the prevailing party in the conduct of the litigation. Attorneys’ fees shall include attorneys’ fees on any appeal, and in addition a party entitled to attorneys’ fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery, and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. The court may set such fees in the same action or in a separate action brought for that purpose. 9. CITY OFFICERS AND EMPLOYEES; NONDISCRIMINATION. 9.1 Non-liability of City Officers and Employees. No officer, official, employee, agent, representative, or volunteer of City shall be personally liable to Contracting Party, or any successor in interest, in the event or any default or breach by City or for any amount which may become due to Contracting Party or to its successor, or for breach of any obligation of the terms of this Agreement. 9.2 Conflict of Interest. Contracting Party covenants that neither it, nor any officer or principal of it, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Contracting Party’s performance of the Services under this Agreement. Contracting Party further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent, or subcontractor without the express written consent of the Contract Officer, or assigned designee. Contracting Party agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement. 119 -12- No officer or employee of City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to this Agreement which effects his financial interest or the financial interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. Contracting Party warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement. 9.3 Covenant against Discrimination. Contracting Party covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any impermissible classification including, but not limited to, race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry in the performance of this Agreement. Contracting Party shall take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry. 10. MISCELLANEOUS PROVISIONS. 10.1 Notice. Any notice, demand, request, consent, approval, or communication either party desires or is required to give the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this Section. To City: CITY OF LA QUINTA Attention: Alfred Berumen 78495 Calle Tampico La Quinta, California 92253 To Contracting Party: F.M. Thomas Air Conditioning, Inc. Attention: Michael Feyka 231 Gemini Ave Brea, CA 92821 10.2 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. 10.3 Section Headings and Subheadings. The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement. 10.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument. 120 -13- 10.5 Integrated Agreement. This Agreement including the exhibits hereto is the entire, complete, and exclusive expression of the understanding of the parties. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements, and understandings, if any, between the parties, and none shall be used to interpret this Agreement. 10.6 Amendment. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by Contracting Party and by the City Council of City. The parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void. 10.7 Severability. In the event that any one or more of the articles, phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable, such invalidity or unenforceability shall not affect any of the remaining articles, phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless. 10.8 Unfair Business Practices Claims. In entering into this Agreement, Contracting Party offers and agrees to assign to City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials related to this Agreement. This assignment shall be made and become effective at the time City renders final payment to Contracting Party without further acknowledgment of the parties. 10.9 No Third-Party Beneficiaries. With the exception of the specific provisions set forth in this Agreement, there are no intended third-party beneficiaries under this Agreement and no such other third parties shall have any rights or obligations hereunder. 10.10 Authority. The persons executing this Agreement on behalf of each of the parties hereto represent and warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors, and assigns of the parties. [SIGNATURES ON FOLLOWING PAGE] 121 -14- IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. CITY OF LA QUINTA, a California Municipal Corporation JON MCMILLEN, City Manager City of La Quinta, California Dated: F.M. THOMAS AIR CONDITIONING, INC.: By: Name: Title: ATTEST: MONIKA RADEVA, City Clerk City of La Quinta, California By: Name: Title: APPROVED AS TO FORM: WILLIAM H. IHRKE, City Attorney City of La Quinta, California 122 Exhibit A Page 1 of 5 Last revised summer 2017 Exhibit A Scope of Services 1. Services to be Provided: Complete HVAC controls and Mechanical replacement and repair services, including but not limited to: HVAC maintenance, repair and replacement services on an on-call, as- needed basis. The proposed work includes providing regularly scheduled HVAC maintenance services and appropriate supplies to effectively and safely maintain functioning HVAC systems for specified City facilities in accordance with the best standards of practice. The services and tasks to be performed include the furnishing of all labor, materials, tools, equipment, supplies, tasks, and incidental and customary work necessary to competently perform HVAC services, repair, and replacement work at various City facilities, projects, and locations. Provide all labor and additional materials to maintain, repair or replace existing heating, ventilating and air conditioning systems including but not limited to: • Inspect and identify a variety of HVAC systems at a variety of facilities (City Hall, Library, Wellness Center, Museum, Fire Stations (3), Silver Rock Resort, Silver Rock Event Building, Park Buildings (2), X-Park building, Public Works building and the Old Lumber Yard) • Replace, repair, and perform preventative maintenance of a variety of HVAC systems (Air cooled chiller units, air cooled condensing units, air handling units, fan coil units, boilers, packaged units, mini splits, split system heat pumps, and evaporative coolers) • Inspect units for needed preventative maintenance, repairs and replacement (contactors, fan motors, capacitors, fuses, and belts) • Replace all filters and wash coils quarterly or as needed • Inspect air handler motors, pulleys and belts, lubricate, and replace as needed • All condensation drains cleaned, clear of clogs and debris • Other typical and common miscellaneous HVAC repairs and work • Replacement of ageing units as needed to include units requiring R-22 • The work should include all preparation, replacement and repairs unless otherwise stated by the City • All replacement materials to be used will be approved by the Facilities Superintendent 123 Exhibit A Page 2 of 5 • All filters to be provided by the City • All work shall be to applicable codes and to the satisfaction of the City • Contractor shall have a dedicated technician for emergencies available to respond within 2 hours 124 Exhibit A Page 3 of 5 ADDENDUM TO AGREEMENT Re: Scope of Services If the Scope of Services include construction, alteration, demolition, installation, repair, or maintenance affecting real property or structures or improvements of any kind appurtenant to real property, the following apply: 1. Prevailing Wage Compliance. If Contracting Party is a contractor performing public works and maintenance projects, as described in this Section 1.3, Contracting Party shall comply with applicable Federal, State, and local laws. Contracting Party is aware of the requirements of California Labor Code Sections 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Sections 16000, et seq., (collectively, the “Prevailing Wage Laws”), and La Quinta Municipal Code Section 3.12.040, which require the payment of prevailing wage rates and the performance of other requirements on “Public works” and “Maintenance” projects. If the Services are being performed as part of an applicable “Public works” or “Maintenance” project, as defined by the Prevailing Wage Laws, and if construction work over twenty- five thousand dollars ($25,000.00) and/or alterations, demolition, repair or maintenance work over fifteen thousand dollars ($15,000.00) is entered into or extended on or after January 1, 2015 by this Agreement, Contracting Party agrees to fully comply with such Prevailing Wage Laws including, but not limited to, requirements related to the maintenance of payroll records and the employment of apprentices. Pursuant to California Labor Code Section 1725.5, no contractor or subcontractor may be awarded a contract for public work on a “Public works” project unless registered with the California Department of Industrial Relations (“DIR”) at the time the contract is awarded. If the Services are being performed as part of an applicable “Public works” or “Maintenance” project, as defined by the Prevailing Wage Laws, this project is subject to compliance monitoring and enforcement by the DIR. Contracting Party will maintain and will require all subcontractors to maintain valid and current DIR Public Works contractor registration during the term of this Agreement. Contracting Party shall notify City in writing immediately, and in no case more than twenty-four (24) hours, after receiving any information that Contracting Party’s or any of its subcontractor’s DIR registration status has been suspended, revoked, expired, or otherwise changed. It is understood that it is the responsibility of Contracting Party to determine the correct salary scale. Contracting Party shall make copies of the prevailing rates of per diem wages for each craft, classification, or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at Contracting Party’s principal place of business and at the project site, if any. The statutory penalties for failure to pay prevailing wage or to comply with State wage and hour laws will be enforced. Contracting Party must forfeit to City TWENTY-FIVE DOLLARS ($25.00) per day for each worker who works in excess of the minimum working hours when Contracting Party does not pay overtime. In accordance with the provisions of Labor Code Sections 1810 et seq., eight (8) hours is the legal working day. Contracting Party also shall comply with State law requirements to maintain payroll records and shall provide for certified records and inspection of records as required by California Labor Code Section 1770 et seq., including Section 1776. In addition to the other indemnities provided under this Agreement, Contracting Party shall defend (with counsel selected by City), indemnify, and hold City, 125 Exhibit A Page 4 of 5 its elected officials, officers, employees, and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It is agreed by the parties that, in connection with performance of the Services, including, without limitation, any and all “Public works” (as defined by the Prevailing Wage Laws), Contracting Party shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law. Contracting Party acknowledges and agrees that it shall be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with such laws. Contracting Party shall require the same of all subcontractors. 2. Retention. Payments shall be made in accordance with the provisions of Article 2.0 of the Agreement. In accordance with said Sections, City shall pay Contracting Party a sum based upon ninety-five percent (95%) of the Contract Sum apportionment of the labor and materials incorporated into the Services under this Agreement during the month covered by said invoice. The remaining five percent (5%) thereof shall be retained as performance security to be paid to Contracting Party within sixty (60) days after final acceptance of the Services by the City Council of City, after Contracting Party has furnished City with a full release of all undisputed payments under this Agreement, if required by City. In the event there are any claims specifically excluded by Contracting Party from the operation of the release, City may retain proceeds (per Public Contract Code § 7107) of up to one hundred fifty percent (150%) of the amount in dispute. City’s failure to deduct or withhold shall not affect Contracting Party’s obligations under the Agreement. 3. Utility Relocation. City is responsible for removal, relocation, or protection of existing main or trunk-line utilities to the extent such utilities were not identified in the invitation for bids or specifications. City shall reimburse Contracting Party for any costs incurred in locating, repairing damage not caused by Contracting Party, and removing or relocating such unidentified utility facilities. Contracting Party shall not be assessed liquidated damages for delay arising from the removal or relocation of such unidentified utility facilities. 4. Trenches or Excavations. Pursuant to California Public Contract Code Section 7104, in the event the work included in this Agreement requires excavations more than four (4) feet in depth, the following shall apply: (a) Contracting Party shall promptly, and before the following conditions are disturbed, notify City, in writing, of any: (1) material that Contracting Party believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; (2) subsurface or latent physical conditions at the site different from those indicated by information about the site made available to bidders prior to the deadline for submitting bids; or (3) unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the Agreement. 126 Exhibit A Page 5 of 5 (b) City shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in Contracting Party’s cost of, or the time required for, performance of any part of the work shall issue a change order per Section 1.8 of the Agreement. (c) in the event that a dispute arises between City and Contracting Party whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contracting Party’s cost of, or time required for, performance of any part of the work, Contracting Party shall not be excused from any scheduled completion date provided for by this Agreement, but shall proceed with all work to be performed under this Agreement. Contracting Party shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the contracting Parties. 5. Safety. Contracting Party shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out the Services, Contracting Party shall at all times be in compliance with all applicable local, state, and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures. 6. Liquidated Damages. Since the determination of actual damages for any delay in performance of the Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, Contracting Party shall be liable for and shall pay to City the sum of One Thousand dollars ($1,000.00) as liquidated damages for each working day of delay in the performance of any of the Services required hereunder, as specified in the Schedule of Performance. In addition, liquidated damages may be assessed for failure to comply with the emergency call out requirements, if any, described in the Scope of Services. City may withhold from any moneys payable on account of the Services performed by Contracting Party any accrued liquidated damages. 127 Exhibit B Page 1 of 2 Exhibit B Schedule of Compensation For the avoidance of doubt, the compensation thresholds on this Exhibit B do not include compensation for Additional Services (if any) authorized pursuant to Section 1.7 and compensated pursuant to Section 2.3 of this Agreement. Contract Sum Compensation for Services shall not exceed the following Contract Sum for the entire life of this Agreement including the Initial and Extended terms: Three Million Eight Hundred Thousand Dollars ($3,800,000), to be paid for duly authorized Services performed consistent with the terms and conditions of this Agreement. Contracting Party expressly acknowledges and agrees that the Contract Sum in this Agreement is the aggregate total amount covering this Agreement, that certain Agreement for Contract Services by and between the City and Pacific West Industries, Inc., and that certain Agreement for Contract Service by and between the City and Rivco Mechanical Services, Inc., of or about even date as this Agreement, such that the Contract Sum as defined herein is the maximum amount available for services provided under both agreements. The Contract Sum shall be paid to Contracting Party in installment payments made on a monthly basis and in an amount identified in Contracting Party’s schedule of compensation attached hereto for the work tasks performed and properly invoiced by Contracting Party in conformance with Section 2.2 of this Agreement. Initial Term: FY 2025/26 $200,000 FY 2026/27 $600,000 FY 2027/28 $600,000 FY 2028/29 $600,000 FY 2029/30 $600,000 Extended Term: FY 2030/31 $600,000 FY 2031/32 $600,000 128 Exhibit C Page 1 of 1 129 Exhibit C Page 1 of 1 Exhibit C Schedule of Performance Contracting Party shall complete all services identified in the Scope of Services, Exhibit A of this Agreement. 130 Exhibit D Page 1 of 1 Exhibit D Special Requirements None. 131 Exhibit E Page 1 of 6 Exhibit E Insurance Requirements E.1 Insurance. Prior to the beginning of and throughout the duration of this Agreement, the following policies checked below shall be maintained and kept in full force and effect providing insurance with minimum limits as indicated below and issued by insurers with A.M. Best ratings of no less than A-VI: Commercial General Liability (at least as broad as ISO CG 0001): $1,000,000 per occurrence/$2,000,000 aggregate OR $2,000,000 per occurrence/$4,000,000 aggregate Must include the following endorsements: General Liability Additional Insured General Liability Primary and Non-contributory Commercial Automobile Liability (at least as broad as ISO CA 0001): $1,000,000 combined single limit for bodily injury and property damage Auto Liability Additional Insured Workers’ Compensation (per statutory requirements): Statutory Limits / Employer’s Liability $1,000,000 per accident or disease OR Must include the following endorsements: Workers’ Compensation Endorsement with Waiver of Subrogation Workers’ Compensation Declaration of Sole Proprietor California Workers' Compensation Requirements Acknowledgement Professional Liability (Errors and Omissions): Errors and Omissions liability insurance with a limit of not less than $1,000,000 per claim Cyber Liability $1,000,000 per occurrence/$2,000,000 aggregate 132 Exhibit E Page 2 of 6 Contracting Party shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, Commercial General Liability insurance against all claims for injuries against persons or damages to property resulting from Contracting Party’s acts or omissions rising out of or related to Contracting Party’s performance under this Agreement. The insurance policy shall contain a severability of interest clause providing that the coverage shall be primary for losses arising out of Contracting Party’s performance hereunder and neither City nor its insurers shall be required to contribute to any such loss. An endorsement evidencing the foregoing and naming the City and its officers and employees as additional insured (on the Commercial General Liability policy only) must be submitted concurrently with the execution of this Agreement and approved by City prior to commencement of the services hereunder. Contracting Party shall carry automobile liability insurance of $1,000,000 per accident against all claims for injuries against persons or damages to property arising out of the use of any automobile by Contracting Party, its officers, any person directly or indirectly employed by Contracting Party, any subcontractor or agent, or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Contracting Party’s performance under this Agreement. If Contracting Party or Contracting Party’s employees will use personal autos in any way on this project, Contracting Party shall provide evidence of personal auto liability coverage for each such person. The term “automobile” includes, but is not limited to, a land motor vehicle, trailer or semi-trailer designed for travel on public roads. The automobile insurance policy shall contain a severability of interest clause providing that coverage shall be primary for losses arising out of Contracting Party’s performance hereunder and neither City nor its insurers shall be required to contribute to such loss. Contracting Party shall carry Workers’ Compensation Insurance in accordance with State Worker’s Compensation laws with employer’s liability limits no less than $1,000,000 per accident or disease. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Contracting Party and “Covered Professional Services” as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer’s duty to defend. The policy retroactive date shall be on or before the effective date of this agreement. Contracting Party shall procure and maintain Cyber Liability insurance with limits of $1,000,000 per occurrence/loss which shall include the following coverage: a. Liability arising from the theft, dissemination and/or use of confidential or personally identifiable information; including credit monitoring and regulatory fines arising from such theft, dissemination or use of the 133 Exhibit E Page 3 of 6 confidential information. b. Network security liability arising from the unauthorized use of, access to, or tampering with computer systems. c. Liability arising from the failure of technology products (software) required under the contract for Consultant to properly perform the services intended. d. Electronic Media Liability arising from personal injury, plagiarism or misappropriation of ideas, domain name infringement or improper deep- linking or framing, and infringement or violation of intellectual property rights. e. Liability arising from the failure to render professional services. If coverage is maintained on a claims-made basis, Contracting Party shall maintain such coverage for an additional period of three (3) years following termination of the contract. Contracting Party shall provide written notice to City within ten (10) working days if: (1) any of the required insurance policies is terminated; (2) the limits of any of the required polices are reduced; or (3) the deductible or self-insured retention is increased. In the event any of said policies of insurance are cancelled, Contracting Party shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Exhibit to the Contract Officer. The procuring of such insurance or the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Contracting Party’s obligation to indemnify City, its officers, employees, contractors, subcontractors, or agents. E.2 Remedies. In addition to any other remedies City may have if Contracting Party fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option: a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. b. Order Contracting Party to stop work under this Agreement and/or withhold any payment(s) which become due to Contracting Party hereunder until Contracting Party demonstrates compliance with the requirements hereof. c. Terminate this Agreement. Exercise any of the above remedies, however, is an alternative to any other remedies City may have. The above remedies are not the exclusive remedies for Contracting Party’s failure to maintain or secure appropriate policies or endorsements. Nothing herein contained shall be construed as limiting in any way the extent to which Contracting Party may be held responsible for payments of damages to persons or 134 Exhibit E Page 4 of 6 property resulting from Contracting Party’s or its subcontractors’ performance of work under this Agreement. E.3 General Conditions Pertaining to Provisions of Insurance Coverage by Contracting Party. Contracting Party and City agree to the following with respect to insurance provided by Contracting Party: 1. Contracting Party agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials, employees, and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Contracting Party also agrees to require all contractors, and subcontractors to do likewise. 2. No liability insurance coverage provided to comply with this Agreement shall prohibit Contracting Party, or Contracting Party’s employees, or agents, from waiving the right of subrogation prior to a loss. Contracting Party agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise. 3. All insurance coverage and limits provided by Contracting Party and available or applicable to this Agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to City or its operations limits the application of such insurance coverage. 4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 5. No liability policy shall contain any provision or definition that would serve to eliminate so-called “third party action over” claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor. 6. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Contracting Party shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City’s protection without City’s prior written consent. 7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all the coverages required and an additional insured endorsement to Contracting Party’s general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Contracting Party or deducted from sums due Contracting Party, at City option. 135 Exhibit E Page 5 of 6 8. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Contracting Party or any subcontractor, is intended to apply first and on a primary, non-contributing basis in relation to any other insurance or self-insurance available to City. 9. Contracting Party agrees to ensure that subcontractors, and any other party involved with the project that is brought onto or involved in the project by Contracting Party, provide the same minimum insurance coverage required of Contracting Party. Contracting Party agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contracting Party agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review. 10. Contracting Party agrees not to self-insure or to use any self-insured retentions or deductibles on any portion of the insurance required herein (with the exception of professional liability coverage, if required) and further agrees that it will not allow any contractor, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self-insure its obligations to City. If Contracting Party’s existing coverage includes a deductible or self-insured retention, the deductible or self-insured retention must be declared to the City. At that time the City shall review options with the Contracting Party, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions. 11. The City reserves the right at any time during the term of this Agreement to change the amounts and types of insurance required by giving the Contracting Party ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Contracting Party, the City will negotiate additional compensation proportional to the increased benefit to City. 12. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 13. Contracting Party acknowledges and agrees that any actual or alleged failure on the part of City to inform Contracting Party of non-compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard. 14. Contracting Party will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect. 15. Contracting Party shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with 136 Exhibit E Page 6 of 6 other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Contracting Party’s insurance agent to this effect is acceptable. A certificate of insurance and an additional insured endorsement is required in these specifications applicable to the renewing or new coverage must be provided to City within five (5) days of the expiration of coverages. 16. The provisions of any workers’ compensation or similar act will not limit the obligations of Contracting Party under this agreement. Contracting Party expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials, and agents. 17. Requirements of specific coverage features, or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be limiting or all-inclusive. 18. These insurance requirements are intended to be separate and distinct from any other provision in this Agreement and are intended by the parties here to be interpreted as such. 19. The requirements in this Exhibit supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Exhibit. 20. Contracting Party agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Contracting Party for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto. 21. Contracting Party agrees to provide immediate notice to City of any claim or loss against Contracting Party arising out of the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. 137 Exhibit F Page 1 of 2 Exhibit F Indemnification F.1 Indemnity for the Benefit of City. a. Indemnification for Professional Liability. When the law establishes a professional standard of care for Contracting Party’s Services, to the fullest extent permitted by law, Contracting Party shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officials, employees, and agents (“Indemnified Parties”) from and against any and all claims, losses, liabilities of every kind, nature, and description, damages, injury (including, without limitation, injury to or death of an employee of Contracting Party or of any subcontractor), costs and expenses of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation, to the extent same are caused in whole or in part by any negligent or wrongful act, error or omission of Contracting Party, its officers, agents, employees or subcontractors (or any entity or individual that Contracting Party shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Contracting Party shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A without the written consent of the Contracting Party. b. Indemnification for Other Than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Contracting Party shall indemnify, defend (with counsel selected by City), and hold harmless the Indemnified Parties from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses) incurred in connection therewith and costs of investigation, where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Contracting Party or by any individual or entity for which Contracting Party is legally liable, including but not limited to officers, agents, employees, or subcontractors of Contracting Party. c. Indemnity Provisions for Contracts Related to Construction (Limitation on Indemnity). Without affecting the rights of City under any provision of this agreement, Contracting Party shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City’s active negligence accounts for only a percentage of the liability involved, the obligation of Contracting Party will be for that entire portion or percentage of liability not attributable to the active negligence of City. 138 Exhibit F Page 2 of 2 d. Indemnification Provision for Design Professionals. 1. Applicability of this Section F.1(d). Notwithstanding Section F.1(a) hereinabove, the following indemnification provision shall apply to a Contracting Party who constitutes a “design professional” as the term is defined in paragraph 3 below. 2. Scope of Indemnification. When the law establishes a professional standard of care for Contracting Party’s Services, to the fullest extent permitted by law, Contracting Party shall indemnify and hold harmless City and any and all of its officials, employees, and agents (“Indemnified Parties”) from and against any and all losses, liabilities of every kind, nature, and description, damages, injury (including, without limitation, injury to or death of an employee of Contracting Party or of any subcontractor), costs and expenses, including, without limitation, incidental and consequential damages, court costs, reimbursement of attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation, to the extent same are caused by any negligent or wrongful act, error or omission of Contracting Party, its officers, agents, employees or subcontractors (or any entity or individual that Contracting Party shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Contracting Party shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A without the written consent of the Contracting Party. 3. Design Professional Defined. As used in this Section F.1(d), the term “design professional” shall be limited to licensed architects, registered professional engineers, licensed professional land surveyors and landscape architects, all as defined under current law, and as may be amended from time to time by Civil Code § 2782.8. F.2 Obligation to Secure Indemnification Provisions. Contracting Party agrees to obtain executed indemnity agreements with provisions identical to those set forth herein this Exhibit F, as applicable to the Contracting Party, from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Contracting Party in the performance of this Agreement. In the event Contracting Party fails to obtain such indemnity obligations from others as required herein, Contracting Party agrees to be fully responsible according to the terms of this Exhibit. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth in this Agreement are binding on the successors, assigns or heirs of Contracting Party and shall survive the termination of this Agreement. 139 140 City of La Quinta CITY COUNCIL MEETING: March 17, 2026 STAFF REPORT AGENDA TITLE: APPROVE AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT SERVICES WITH HR GREEN PACIFIC FOR ON-CALL PUBLIC WORKS DEVELOPMENT PLAN CHECK SERVICES RECOMMENDATION Approve Amendment No. 1 to Agreement for Contract Services with HR Green Pacific for on-call public works development plan check services; and authorize the City Manager to execute the amendment. EXECUTIVE SUMMARY The Public Works Development Services Division contracts to provide plan check services based on workload and expertise as needed. Submittals of improvement plans have increased in fiscal year 2025/26; Amendment No. 1 requests for additional contract authority of $30,000 for fiscal year (FY) 2025/26, increasing the not to exceed contract amount from $100,000 to $130,000 due to the increased plan submittals. FISCAL IMPACT Funds are available in FY 2025/26 budget in the Public Works Map / Plan Checking account (101-7002-60183) and in the Consultants account for these services (101-7002- 60104). FISCAL YEAR ANNUAL COMPENSATION Contract Services Agreement 2024-2025 2025-2026 2026-2027 $100,000 $100,000 $100,000 Amendment No. 1 2025-2026 $30,000 TOTAL CONTRACT COMPENSATION: $330,000 BACKGROUND/ANALYSIS In May 2024, the City received five proposals in response to the on-call public works development plan check services request for proposals. Staff reviewed the proposals and HR Green Pacific was selected as a qualified firm; and a three-year Agreement for Contract Services was executed through June 30, 2027. CONSENT CALENDAR ITEM NO. 12 141 On-call development plan checking services have utilized most of the existing contract authority for fiscal year 2025/26 due to increased plan submittals for new projects such as the Coral Mountain Resort. Additional contract authority in the amount of $30,000 is needed for a total “not to exceed” contract amount for 2025/26 of $130,000. The monthly invoices would be tracked to ensure that the $130,000 annual budget for these services is not exceeded. ALTERNATIVES Council could elect not to approve the amendment. Prepared by: Amy Yu, Associate Engineer Approved by: Bryan McKinney, P.E., Public Works Director/City Engineer Attachment: 1. Amendment No. 1 with HR Green Pacific 142 AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT SERVICES WITH HR GREEN PACIFIC This Amendment No. 1 ("Amendment No. 1") to Agreement for Contract Services (“Agreement”) is made and entered into as of the 17th day of March 2026 ("Effective Date") by and between the City of La Quinga ("City"), a California Municipal Corporation and Charter City organized under the Constitution and laws of the State of California with its principal place of business at 78495 Calle Tampico, La Quinta, California 92253, and HR Green Pacific, Inc., a California Corporation with its principal place of business at 44651 Village Court, Suite 123, Palm Desert, California 92260 (“Contracting Party”). RECITALS WHEREAS, on or about July 1, 2024, the City and Contracting Party entered into a three-year Agreement to provide on-call public works development plan check services; the Agreement expires June 30, 2027; and WHEREAS, the City and Contracting Party mutually agree to amend Section 2.1 Contract Sum and related Exhibit B of the Agreement to increase the not to exceed compensation amount by $30,000 for fiscal year 2025/2026 due to an increase in volume of plan submittals. NOW THEREFORE, in consideration of the mutual covenant herein contained, the parties agree as follows: AMENDMENT NO. 1 In consideration of the foregoing Recitals and the covenants and promises hereinafter contained, and for good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree as follows: 1. Section 2.1 – Contract Sum is amended to read as follows: For the Services rendered pursuant to this Agreement, Contracting Party shall be compensated in accordance with “Exhibit B” (the “Schedule of Compensation”) in a total amount not to exceed One Hundred Thousand Dollars ($100,000) per fiscal year, for the life of the Agreement, encompassing the Initial and any Extended Terms, except for fiscal year 2025/26, the total not to exceed amount shall be One Hundred Thirty Thousand Dollars ($130,000) (the “Contract Sum”), except as provided in Section 1.7. 2. “Exhibit B” – Schedule of Compensation is amended as listed in “Exhibit B”, attached hereto and incorporated by this reference. In all other respects, the Original Agreement shall remain in effect. ATTACHMENT 1 143 IN WITNESS WHEREOF, the City and Contracting Party have executed this Amendment No. 1 to the Agreement for Contract Services on the respective dates set forth below. CITY OF LA QUINTA HR GREEN PACIFIC a California municipal corporation _________ Jon McMillen, City Manager Timothy J. Hartnett City of La Quinta, California President Governmental Services/ Principal Dated: ___________________ Dated: ______________ _________ Tina M. York Director Civil Plan Check Dated: ______________ ATTEST: Monika Radeva, City Clerk City of La Quinta, California APPROVED AS TO FORM: William H. Ihrke, City Attorney City of La Quinta, California 144 Exhibit B Schedule of Compensation With the exception of compensation for Additional Services, provided for in Section 2.3 of this Agreement, the maximum total compensation to be paid to Contracting Party under this Agreement is not to exceed One Hundred Thousand Dollars ($100,000) per fiscal year for the life of the Agreement, encompassing the Initial and any Extended Terms, except for fiscal year 2025/26, the total not to exceed amount shall be One Hundred and Thirty Thousand Dollars ($130,000) (the “Contract Sum”). Contractor expressly acknowledges and agrees that the Contract Sum in this Agreement is the annual aggregate total amount covering this Agreement, that certain Agreement for Contract Services by and between the City and NV 5, Inc., of or about even date as this Agreement, such that the Contract Sum as defined herein is the maximum amount available for services provided under both agreements. The Contract Sum shall be paid to Contracting Party in installment payments made on a monthly basis and in an amount identified in Contracting Party’s schedule of compensation attached hereto for the work tasks performed and properly invoiced by Contracting Party in conformance with Section 2.2 of this Agreement. Initial Term: “Not to exceed” Year 1 (FY 2024/25): $100,000 “Not to exceed” Year 2 (FY 2025/26): $130,000 “Not to exceed” Year 3 (FY 2026/27): $100,000 Extended Term: “Not to exceed” Year 4 (FY 2027/28): $100,000 “Not to exceed” Year 5 (FY 2028/29): $100,000 Plan Check Compensation Plan check payment shall be made in full at a “fixed fee” rate of: $ 900 per sheet (submittals with 1-5 sheets in quantity) $ 875 per sheet (submittals with 6-15 sheets in quantity) $ 850 per sheet (submittals with 16 or more sheets in quantity) Sheet counts are based on the number of sheets submitted for plan check. Sheets may include title and detail sheets, street plans, storm drain plans, meandering sidewalk and parkway grading plans, rough & precise grading plans at 30, 40 or 50 feet per inch scale. Consultant receives no additional compensation for review of supporting documents including, but not limited to hydrology and hydraulic calculation reports, soils reports & engineer’s cost estimates, conditions of approval, tentative tract and parcel maps. Consultant receives no additional compensation for delivery or postage fees necessary to transmit or receive plans from City. Consultant receives no additional compensation for travel to and from City Hall. This rate shall be compensation for up to three (3) plan checks. Supplemental payment for additional plan checks after the third check or for special engineering reports 145 including Water Quality Management Plans (WQMP) or other engineering reports, shall be in made at the rates listed in the Schedule of Billing Rates attached herewith for the actual hours submitted in conformance with Section 2.2 of the Agreement. An estimate of hours to complete the plan check (after the third plan check) or for special reports shall be made in writing to the Contract Officer for approval as specified in Section 1.6 - Additional Services of the Agreement. Compensation for the first three plan checks shall be distributed at the following schedule: First Plan Check 65% of the Total Plan Check Fee Second Plan Check 20% of the Total Plan Check Fee Third Plan Check 15% of the Total Plan Check Fee The Consultant shall be compensated upon the completion of each plan check as indicated in the above schedule and in conformance with Section 2.2 of the Agreement. If a project is suspended, either definitely or indefinitely, the Consultant shall be compensated based on the last completed plan check. If the plan check process is completed prior to the third plan check,100% of the plan check fee will be paid upon completion of the final plan check. The Consultant shall separately invoice per plan and per plan check. No exceptions will be allowed to the payment schedule. Consultant also may be requested to provide general civil consulting services for specific development related engineering projects for the City as applicable. Payment shall be made in full at an hourly rate of: $ 225 per hour – no overtime, travel time, expenses or other administrative charges will be allowable over and above the stated hourly rate schedule. Rates Classification Hourly Rate Project Manager $285 Principal-in-Charge $295 QA/QC Manager $285 Assistant Project Manager $225 Senior Civil Plan Checker $215 Civil Plan Checker $155 Assistant Civil Plan Checker $135 Environmental Associate $175 Civil Plan Checker (Telecom/Fiber) $190 Engineering Technician $100 Our hourly fees/rates shall remain effective for one year from contract execution, and may be adjusted annually thereafter as negotiated with and agreed to by the agency. 146 City of La Quinta CITY COUNCIL MEETING: March 17, 2026 STAFF REPORT AGENDA TITLE: APPROVE AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES WITH DUDEK TO PROVIDE ADDITIONAL DESIGN SERVICES FOR THE CIVIC CENTER LAKE AND IRRIGATION CONVERSION PROJECT NO. 2016-06 RECOMMENDATION Approve Amendment No. 2 to Agreement for Contract Services with Dudek to provide additional design services for the Civic Center Lake and Irrigation Conversion Project No. 2016-06; and authorize the City Manager to execute the amendment. EXECUTIVE SUMMARY The Civic Center Lake and Irrigation Conversion project (Project) is located at the Civic Center Campus at Calle Tampico and Washington Street and is currently in design. On June 20, 2023, Council approved an Agreement for Contract Services (Agreement) with Dudek to provide professional design services for the Project. The proposed Amendment No. 2 (Attachment 1) to the Agreement includes additional professional and design services for an additional not-to-exceed amount of $17,580 billed on a time-and-materials basis. FISCAL IMPACT The total Project budget remains the same as allocated in fiscal years 2016/17 and 2017/18 Capital Improvement Program (CIP) in the amount of $675,270 in General Funds. Funds are available in the Project budget (401-0000-60185-201606-D) – contingency funds of $17,580 will be allocated to the design category for the additional professional and design services under the proposed Amendment No. 2 for a total not to exceed Agreement amount of $342,580, which services encompassed lake and irrigation conversion design services for 2 projects – (1) SilverRock Park Venue Project No. 2016- 08 which is now complete, and (2) Civic Center Project No. 2016-06 still in process. CONSENT CALENDAR ITEM NO. 13 147 The following is the updated Project budget: Professional: $40,000 Design $93,726 Inspection, Survey, Plans & Other Construction Costs $63,569 Construction: $400,000 CVWD Meter/Inspection Fees: $40,000 Contingency: $37,975 Total Budget: $675,270 BACKGROUND/ANALYSIS This Project encompasses two different project areas at different design stages. The first project is located at the Civic Center Campus located at Calle Tampico and Washington Street. The City previously contracted with Dahl Consultant to design conversion of the lake water from potable water to irrigation water provided through Coachella Valley Water District (CVWD) maintained lines (Bureau of Reclamation (BOR) Lines). CVWD completed work to provide a point of connection and meter at the existing pumps. Dudek is designing the lake and irrigation conversion, will provide bid support, construction inspection support, and construction management to complete the project. The Project’s second location is the SilverRock Park Venue, which is being tracked under Project No. 2016-08 and is now completed. In June 2023, Council approved an Agreement with Dudek to provide design services for the Project, following the competitive request for proposals procurement process issued in May 2023. The Agreement was set to expire June 30, 2025. Amendment No. 1 was executed in May 2025, extending the Agreement term to June 30, 2027. The proposed Amendment No. 2, if approved, will amend the scope of work to include additional professional and design services for the Project, and respectively increase the compensation by $17,580, for a total not to exceed Agreement amount of $342,580. ALTERNATIVES Council may elect to amend or not approve Amendment No. 2. Prepared by: Carley Escarrega, Administrative Technician Approved by: Bryan McKinney, P.E., Public Works Director/City Engineer Attachments: 1.Amendment No. 2 to Agreement for Contract Services 148 AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES WITH DUDEK This Amendment No. 2 (“Amendment 2”) to Agreement for Contract Services ("Agreement”) is made and entered into as of the 17th day of March 2026, ("Effective Date") by and between the City of La Quinta ("City"), a California Municipal Corporation and Charter City organized under the Constitution and laws of the State of California with its principal place of business at 78495 Calle Tampico, La Quinta, California 92253, and DUDEK, a California Corporation with its principal place of business at 78075 Main Street, Suite G-203, La Quinta, California 92253 (“Contracting Party”). RECITALS WHEREAS, on or about July 1, 2023, the City and Contracting Party entered into an Agreement to provide professional engineering design and construction management services for the Lake and Irrigation Conversion at the Civic Center Park Project No. 2016- 06 and the SilverRock Park Venue Project No. 2016-08, for a total not to exceed amount of $325,000. The term of the Agreement expired on June 30, 2025 (“Initial Term”); and WHEREAS, on or about May 12, 2025, the City and Contracting Party executed Amendment No. 1 and mutually agreed to amend Section 3.4 Term, to extend the term of the agreement for two additional years from July 1, 2025, through June 30, 2027 (“Extended Term”). WHEREAS, City and Contracting Party mutually agree to amend Section 1.1 Scope of Services of the agreement to include the preparation of additional mechanical drawings and specifications as identified in Exhibit A, included in this Amendment 2; and WHEREAS, City and Contracting Party mutually agree to amend Section 2.1 Contract Sum of the agreement to increase the total compensation by an additional $17,580 for the additional services noted above, for a total not to exceed amount of $342,580, as identified in Exhibit B of this Amendment 2. NOW THEREFORE, in consideration of the mutual covenant herein contained, the parties agree as follows: AMENDMENT In consideration of the foregoing Recitals and the covenants and promises hereinafter contained, and for good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree as follows: 1. Section 1.1 is amended to read as follows: Section 1.1 – Scope of Services. In compliance with all terms and conditions of this Agreement, Contracting Party shall provide professional engineering design and construction management services for the Lake and Irrigation Conversion at the Civic Center and SilverRock Park Venue Project, and additional mechanical drawings and ATTACHMENT 1 149 specifications, as detailed in “Exhibit A” attached hereto and incorporated herein by this reference (the “Services”). Contracting Party represents and warrants that Contracting Party is experienced in performing the Services contemplated herein and, in light of such status and experience, Contracting Party covenants that it shall follow industry standards in performing the Services required hereunder, and that all materials, if any, will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase “industry standards” shall mean those standards of practice recognized by one or more first-class firms performing similar services under similar circumstances. 2. “Exhibit A” – Scope of Services is amended to include the additional services detailed in Exhibit A, attached to this Amendment No. 2, and incorporated herein by this reference. 3. Section 2.1 is amended to read as follows: Section 2.1 – Contract Sum. For the Services rendered pursuant to this Agreement, Contracting Party shall be compensated in accordance with “Exhibit B” (the “Schedule of Compensation”) in a total amount not to exceed Three Hundred Forty-Two Thousand Five Hundred Eighty Dollars ($342,580), for the life of the Agreement, encompassing the Initial and any Extended Terms (the “Contract Sum”), except as provided in Section 1.7. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment for time and materials based upon Contracting Party’s rate schedule, but not exceeding the Contract Sum, or such other reasonable methods as may be specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Contracting Party at all project meetings reasonably deemed necessary by City; Contracting Party shall not be entitled to any additional compensation for attending said meetings. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses when and if specified in the Schedule of Compensation, Contracting Party’s overall compensation shall not exceed the Contract Sum, except as provided in Section 1.7 of this Agreement. 4. “Exhibit B” – Schedule of Compensation is amended as listed in Exhibit B, attached hereto and incorporated herein by this reference. In all other respects, the original Agreement shall remain in effect. 150 IN WITNESS WHEREOF, the City and Contracting Party have executed the Amendment No. 2 to the Agreement on the respective dates set forth below. CITY OF LA QUINTA DUDEK a California municipal corporation a California Corporation ___ _______________________ JON McMILLEN, City Manager JOSEPH MONACO City of La Quinta, California President and CEO Dated: ___________________ Dated: ______________ ATTEST: MONIKA RADEVA, City Clerk City of La Quinta, California APPROVED AS TO FORM: ___ WILLIAM H. IHRKE, City Attorney City of La Quinta, California 151 Exhibit A Scope of Services 152 153 Exhibit B Schedule of Compensation With the exception of compensation for Additional Services, provided for in Section 2.3 of this Agreement, the maximum total compensation to be paid to Contracting Party under this Agreement is not to exceed Three Hundred Forty-Two Thousand Five Hundred Eighty Dollars ($342,580) (the “Contract Sum”), comprised of $325,000 for professional engineering design and construction management services as detailed in Exhibit B of the Agreement, and $17,580 for additional design services as detailed in this Exhibit B to this Amendment No. 2. The Contract Sum shall be paid to Contracting Party in installment payments made on a monthly basis and in an amount identified in Contracting Party’s schedule of compensation attached hereto for the work tasks performed and properly invoiced by Contracting Party in conformance with Section 2.2 of the Agreement. Compensation for additional services identified in Exhibit A: 154 City of La Quinta CITY COUNCIL MEETING: March 17, 2026 STAFF REPORT AGENDA TITLE: APPROVE DEMAND REGISTERS DATED FEBRUARY 20, AND 27, 2026 RECOMMENDATION Approve demand registers dated February 20, and 27, 2026. EXECUTIVE SUMMARY – None FISCAL IMPACT Demand of Cash: City 4,875,968.03$ Successor Agency of RDA -$ Housing Authority 18,051.59$ 4,894,019.62$ BACKGROUND/ANALYSIS Routine bills and payroll must be paid between Council meetings. Attachment 1 details the weekly demand registers for February 20, and 27, 2026. Warrants Issued: 219135-219191 298,492.09$ EFT 347-349 2,579.00$ 219194-219246 1,094,641.39$ EFT 350-351 1,067.00$ Wire Transfers 3,092,235.40$ Payroll Tax Transfers 121,527.22$ Payroll Direct Deposit 283,477.52$ 4,894,019.62$ *Check number 219192, payable to Southern California Gas Company, and check number 219193 payable to Whiteford Taylor & Preston, LLP, will be reported on future Demand Register Reports. CONSENT CALENDAR ITEM NO. 14 155 The most significant expenditures on the demand registers are: Vendor Account Name Amount Purpose Granite Construction Company Construction $357,188.09 Hwy 111 Pavement Rehab Retention Payment Desert Concepts Construction, Inc.(1)Various $223,884.25 Citywide Medians/Parks Repair and Maintenance Romero General Construction Corp.Construction $194,303.07 FY 25/26 PMP Rehab & Slurry Seal Improvements Progress Payment Action Park Alliance, Inc.X Park Programming $95,345.95 X Park Operations Services JNS Media Specialists Marketing & Tourism Promotions $65,542.47 Media Services (1) Payments were made on 2/20/26 & 2/27/26. Wire Transfers: Twenty-four transfers totaled $3,092,235. Of this amount, $1.5 million was to U.S. Bank for RDA bond debt service payment, and $918,936 was to SilverRock Phase 1 LLC for Debtor-in-Possession Financing. (See Attachment 2 for a complete listing). Investment Transactions: Full details of investment transactions, as well as total holdings, are reported quarterly in the Treasurer’s Report. Prepared by: Jesse Batres, Finance Technician Approved by: Rosemary Hallick, Principal Management Analyst Attachments: 1. Demand Registers 2. Wire Transfers Transaction Issuer Type Par Value Settle Date Coupon Rate YTM Called Federal Home Loan Banks Agency 1,000,000$ 2/18/2026 4.500% 4.500% Purchase M1 Bank CD 245,000$ 2/18/2026 3.700% 3.700% Purchase United Bankers' Bank CD 248,000$ 2/20/2026 3.600% 3.600% Maturity International Finance Corp Supranational 500,000$ 2/26/2026 0.500% 0.610% Purchase Spring Bank CD 248,000$ 2/27/2026 3.700% 3.700% Maturity United States Treasury Treasury Note 500,000$ 2/28/2026 0.500% 0.750% Maturity United States Treasury Treasury Note 750,000$ 2/28/2026 0.500% 2.353% 156 3/6/2026 11:21:05 AM Page 1 of 5 Demand Register Packet: APPKT04472 - 02/20/2026 JB AmountVendor Name Payment Number Description (Item)Account Name Account Number Fund: 101 - GENERAL FUND 224.00InstructorsTAI CHI YANG CLASS347ATSUKO YAMANE HEWETT 101-3002-60107 14.00InstructorsTAI CHI YANG DI CLASSES347ATSUKO YAMANE HEWETT 101-3002-60107 201.60InstructorsDEEP STRETCH CLASS347ATSUKO YAMANE HEWETT 101-3002-60107 28.00InstructorsDEEP STRETCH DI CLASSES347ATSUKO YAMANE HEWETT 101-3002-60107 132.00InstructorsPERSONAL TRAINING 3 SESSIONS CLASS348JENSEN, SHARLA W 101-3002-60107 1,320.00InstructorsPERSONAL TRAINING 6 SESSIONS CLASS…348JENSEN, SHARLA W 101-3002-60107 54.60InstructorsYOGA FLOW MONDAY CLASS349WILLIAMS, BILLEE 101-3002-60107 50.40InstructorsYOGA FLOW MONDAY CLASSES349WILLIAMS, BILLEE 101-3002-60107 163.80InstructorsPILATES CLASS349WILLIAMS, BILLEE 101-3002-60107 151.20InstructorsMAT PILATES DI CLASSES349WILLIAMS, BILLEE 101-3002-60107 163.80InstructorsYOGA FLOW WEDNESDAY CLASS349WILLIAMS, BILLEE 101-3002-60107 75.60InstructorsYOGA FLOW WEDNESDAY DI CLASSES349WILLIAMS, BILLEE 101-3002-60107 95,345.95X Park Programming01/01-03/31/26 - X PARK OPERATIONS …219135ACTION PARK ALLIANCE, INC.101-3003-60190 76.34Building PermitsREFUND PERMIT FEES BSAP2025-0139219138BETTER EARTH ELECTRIC INC.101-0000-42400 25.45Electrical PermitsREFUND PERMIT FEES BSAP2025-0139219138BETTER EARTH ELECTRIC INC.101-0000-42403 5,000.00Grants & Economic Develop…FY 25/26 COMMUNITY SERVICE GRANT …219141COACHELLA VALLEY DISASTE…101-3001-60510 197.29Water - UtilitiesWATER SERVICE219142COACHELLA VALLEY WATER D…101-2002-61200 1,120.80Water -Monticello Park - Utili…WATER SERVICE219142COACHELLA VALLEY WATER D…101-3005-61201 281.72Water -Fritz Burns Park - Utili…WATER SERVICE219142COACHELLA VALLEY WATER D…101-3005-61204 30.86Water -Seasons Park - UtilitiesWATER SERVICE219142COACHELLA VALLEY WATER D…101-3005-61208 599.19Water -Community Park - Util…WATER SERVICE219142COACHELLA VALLEY WATER D…101-3005-61209 81.46Water - UtilitiesWATER SERVICE219142COACHELLA VALLEY WATER D…101-3008-61200 45.49PM 10 - Dust ControlWATER SERVICE219142COACHELLA VALLEY WATER D…101-7006-60146 2,625.00Community ExperiencesCANDY FOR EGG HUNT EVENT219144COOL CACTUS CANDIES 101-3003-60149 243.52Operating Supplies01/2026 - RADIO MAINTENANCE219145COUNTY OF RIVERSIDE PUBL…101-2001-60420 0.60Administrative Citation Servi…12/2025 - POLICE CITATION PROCESSING…219147DATA TICKET, INC.101-6004-60111 219.50Administrative Citation Servi…01/2026 - CODE CITATION PROCESSING219147DATA TICKET, INC.101-6004-60111 841.36Administrative Citation Servi…01/2026 - POLICE CITATION PROCESSING219147DATA TICKET, INC.101-6004-60111 2,500.00Professional Services10/01-12/31/25 - STVR PUBLIC PORTAL…219148DECKARD TECHNOLOGIES, I…101-1005-60103 2,500.00Professional Services01/01-03/31/26 - STVR PUBLIC PORTAL…219148DECKARD TECHNOLOGIES, I…101-1005-60103 11,850.00Professional Services7/1-9/30/25 - STVR ANNUAL RENTALSC…219148DECKARD TECHNOLOGIES, I…101-1005-60103 11,850.00Professional Services10/01-12/31/25 - STVR PUBLIC PORTAL…219148DECKARD TECHNOLOGIES, I…101-1005-60103 11,850.00Professional Services01/01-03/31/26 - STVR PUBLIC PORTAL…219148DECKARD TECHNOLOGIES, I…101-1005-60103 -168.99SMIP Fees Payable10/01-12/31/25 - SEISMIC HAZARD MA…219149DEPARTMENT OF CONSERVA…101-0000-20308 3,379.75SMIP Fees10/01-12/31/25 - SEISMIC HAZARD MA…219149DEPARTMENT OF CONSERVA…101-0000-42610 5,040.00Maintenance/Services2/2-2/6/26 LQ PARK BACK WALL LANDS…219150DESERT CONCEPTS CONSTR…101-3005-60691 408.49Materials/SuppliesPAINT & PAINT SUPPLIES FOR CH219152DUNN-EDWARDS CORPORAT…101-3008-60431 598.31Materials/SuppliesPAINT SUPPLIES FOR CH219152DUNN-EDWARDS CORPORAT…101-3008-60431 76.39Materials/SuppliesPAINT SUPPLIES FOR CH219152DUNN-EDWARDS CORPORAT…101-3008-60431 759.30Materials/SuppliesPAINT & PAINT SUPPLIES FOR CH219152DUNN-EDWARDS CORPORAT…101-3008-60431 230.11Materials/SuppliesPAINT SUPPLIES FOR CH219152DUNN-EDWARDS CORPORAT…101-3008-60431 194.44Materials/SuppliesPAINT & PAINT SUPPLIES FOR CH219152DUNN-EDWARDS CORPORAT…101-3008-60431 103.48Electrical PermitsREFUND PERMIT FEES BSOL2025-0279219153EXO ENERGY INC 101-0000-42403 60.03Postage01/29/2026 - OVERNIGHT MAIL219154FEDEX 101-1007-60470 57.17Postage02/06/25 - OVERNIGHT MAIL219154FEDEX 101-1007-60470 225.82Garnishments PayableGARNISHMENT219155FRANCHISE TAX BOARD 101-0000-20985 230.58Garnishments PayableGARNISHMENT219156FRANCHISE TAX BOARD 101-0000-20985 892.84PrintingBUSINESS CARDS219157PALMS TO PINES PRINTING …101-3007-60410 1,998.35Maintenance/ServicesFS #70 PUSH BUTTON LOCKS (2)219158GRAINGER 101-2002-60691 1,998.35Maintenance/ServicesFS #70 PUSH BUTTON LOCKS (2)219158GRAINGER 101-2002-60691 382.17Operating SuppliesCAULK GUNS (2)219158GRAINGER 101-7003-60420 2,918.85Materials/SuppliesQUERCUS VIRGINIANA TREES (10)219159GREEN DESERT WHOLESALE …101-3005-60431 42.46Mechanical PermitsREFUND PERMIT FEES BMCH2025-0468219161IPERMIT 101-0000-42402 ATTACHMENT 1 157 Demand Register Packet: APPKT04472 - 02/20/2026 JB 3/6/2026 11:21:05 AM Page 2 of 5 AmountVendor Name Payment Number Description (Item)Account Name Account Number 4,490.00Community ExperiencesFY 25/26 HOLIDAY DECORATIONS AND L…219162JENNIFER MINCH 101-3003-60149 1,000.00Marketing & Tourism Promot…LA QUINTA MAP ILLUSTRATION USAGE …219163JENNIFER VAUGHN ARTIST A…101-3007-60461 15,833.98Janitorial01/2026 - CITYWIDE JANITORIAL SERVIC…219165MERCHANTS BUILDING MAI…101-3008-60115 271.66Janitorial01/03/26 - WC EVENT CLEANING219165MERCHANTS BUILDING MAI…101-3008-60115 217.57Janitorial01/06/26 - SRR EVENT BUILDING EXTRA …219165MERCHANTS BUILDING MAI…101-3008-60115 43.71Uniforms02/05/26 - PARKS UNIFORM SERVICES219166MISSION LINEN SUPPLY 101-3005-60690 34.97Uniforms02/05/26 - FACILITIES UNIFORM SERVIC…219166MISSION LINEN SUPPLY 101-3008-60690 475.00Lighting Service3/1/26-3/31/27 - LQ PARK CONTROL LI…219167MUSCO CORPORATION 101-3005-60136 1,094.50HVAC1/9/26 - CH HVAC NETWORK COMMUN…219170PACIFIC WEST AIR CONDITIO…101-3008-60667 249.00Travel & Training02/12/26-02/12/27 - PRYORPLUS ACCES…219172PRYOR LEARNING, LLC 101-6006-60320 125.00Travel & Training2026 RAMMYS EVENT S.SANCHEZ219174RANCHO MIRAGE CHAMBER…101-1001-60320 1,409.96Sheriff - Other11/25-12/24/25 - MOTOR FUEL CHARGES219175RIVERSIDE COUNTY SHERIFF …101-2001-60176 926.03Sheriff - Other12/25/25-01/24/26 - MOTOR FUEL CHA…219175RIVERSIDE COUNTY SHERIFF …101-2001-60176 6,450.00Maintenance/ServicesON-CALL PW CONCRETE MAINTENANCE…219177SAVI CONSTRUCTION INC 101-7003-60691 120.75InstructorsBALLROOM LATIN SWING CLASSES219178SHIRY, TERESA 101-3002-60107 69.49Materials/SuppliesPVC PIPES (200)219179SMITH PIPE & SUPPLY CO 101-3005-60431 5,000.00Grants & Economic Develop…FY 25/26 COMMUNITY SERVICE GRANT219180SOCIETY'S OUTKASTS ANIMAL…101-3001-60510 7,607.07Materials/SuppliesGROUND COVER & SAFETY FILL219181SOUTHWEST BOULDER & ST…101-3005-60431 7,607.07Materials/SuppliesGROUND COVER & SAFETY FILL219181SOUTHWEST BOULDER & ST…101-3005-60431 175.74Office SuppliesOFFICE SUPPLIES219182STAPLES ADVANTAGE 101-1006-60400 81.37Office SuppliesOFFICE SUPPLIES219182STAPLES ADVANTAGE 101-1006-60400 10.19Citywide SuppliesBREAKROOM SUPPLIES219182STAPLES ADVANTAGE 101-1007-60403 -65.83Office SuppliesRETURN OFFICE SUPPLIES219182STAPLES ADVANTAGE 101-1006-60400 -39.24Office SuppliesREFUND OFFICE SUPPLIES219182STAPLES ADVANTAGE 101-1006-60400 42.00InstructorsSOUND BATH CLASS219183SUSAN ALEXANDRA BRAUC…101-3002-60107 14.00InstructorsSOUND BATH CLASS219183SUSAN ALEXANDRA BRAUC…101-3002-60107 234.73Materials/SuppliesPAINT FOR WC219184THE SHERWIN-WILLIAMS CO.101-3008-60431 200.00Special Enforcement Funds12/20-12/21/25 - POLICE GPS LOCATE L…219185T-MOBILE 101-2001-60175 200.00Special Enforcement Funds12/20-12/21/25 - POLICE GPS LOCATE L…219185T-MOBILE 101-2001-60175 108.00United Way DeductionsCONTRIBUTION219187UNITED WAY OF THE DESERT 101-0000-20981 5,000.00Sponsorships/Advertising2026 DINE GPS SPONSORSHIP219191VISIT GREATER PALM SPRINGS 101-3007-60450 Fund 101 - GENERAL FUND Total:228,278.15 Fund: 201 - GAS TAX FUND 1,904.98Materials/SuppliesCRACK FILLER (30)219158GRAINGER 201-7003-60431 78.69Uniforms02/05/26 - STREETS UNIFORM SERVICES219166MISSION LINEN SUPPLY 201-7003-60690 3,872.26Traffic Control SignsSTREET SIGNS & FILL IT FOAM219169PACIFIC PRODUCTS AND SER…201-7003-60429 2,468.63Traffic Control SignsCUSTOM STREET NAME SIGNS219169PACIFIC PRODUCTS AND SER…201-7003-60429 74.50Materials/Supplies02/01/26 - DIG ALERT SERVICES219186UNDERGROUND SERVICE AL…201-7003-60431 Fund 201 - GAS TAX FUND Total:8,399.06 Fund: 202 - LIBRARY & MUSEUM FUND 965.16Maintenance/ServicesLED LIGHT BULBS FOR LIBRARY219143CONSOLIDATED ELECTRICAL …202-3004-60691 3,264.32Janitorial01/2026 LIBRARY JANITORIAL SERVICES219165MERCHANTS BUILDING MAI…202-3004-60115 989.54Janitorial01/2026 - MUSEUM JANITORIAL SERVIC…219165MERCHANTS BUILDING MAI…202-3006-60115 119.73Janitorial01/17/26 - MUSEUM EXTRA CLEANING219165MERCHANTS BUILDING MAI…202-3006-60115 375.00Janitorial01/23/26 - MUSEUM COURTYARD CLEA…219165MERCHANTS BUILDING MAI…202-3006-60115 119.73Janitorial01/24/26 - MUSEUM EXTRA CLEANING219165MERCHANTS BUILDING MAI…202-3006-60115 119.73Janitorial01/25/26 - MUSEUM EVENT CLEAN UP219165MERCHANTS BUILDING MAI…202-3006-60115 Fund 202 - LIBRARY & MUSEUM FUND Total:5,953.21 Fund: 215 - LIGHTING & LANDSCAPING FUND 1,878.38Water - Medians - UtilitiesWATER SERVICE219142COACHELLA VALLEY WATER D…215-7004-61211 168.50Water - Medians - UtilitiesWATER SERVICE219142COACHELLA VALLEY WATER D…215-7004-61211 531.03Materials/SuppliesLIGHT BULBS (20)219151DESERT ELECTRIC SUPPLY 215-7004-60431 10.10Electric - UtilitiesELECTRICITY SERVICE219160IMPERIAL IRRIGATION DIST 215-7004-61116 439.11Electric - UtilitiesELECTRICITY SERVICE219160IMPERIAL IRRIGATION DIST 215-7004-61116 74.08Electric - Medians - UtilitiesELECTRICITY SERVICE219160IMPERIAL IRRIGATION DIST 215-7004-61117 3,900.00Maintenance/ServicesCITYWIDE WEED ABATEMENT219190VINTAGE ASSOCIATES 215-7004-60691 Fund 215 - LIGHTING & LANDSCAPING FUND Total:7,001.20 Fund: 401 - CAPITAL IMPROVEMENT PROGRAMS 1,109.74ConstructionRESTROOM AND POOL BUILDING PURC…219176ROMTEC INC.401-0000-60188 158 Demand Register Packet: APPKT04472 - 02/20/2026 JB 3/6/2026 11:21:05 AM Page 3 of 5 AmountVendor Name Payment Number Description (Item)Account Name Account Number 12,682.75ConstructionPOOL BUILDING219176ROMTEC INC.401-0000-60188 7,543.00ConstructionRESTROOM BUILDING PURCHASE FREIG…219176ROMTEC INC.401-0000-60188 522.19Design01/05/26 - LQ CULTURAL CAMPUS NOI219188USA TODAY MEDIA CORP 401-0000-60185 Fund 401 - CAPITAL IMPROVEMENT PROGRAMS Total:21,857.68 Fund: 501 - FACILITY & FLEET REPLACEMENT 76.90Parts, Accessories, and UpfitsHOSE PARTS FOR PRESSURE WASHER219136AIR & HOSE SOURCE, INC.501-0000-60675 26.36Parts, Accessories, and UpfitsCAM DIECAST CAR219137AUTOZONE 501-0000-60675 -26.36Parts, Accessories, and UpfitsRETURN CAM DIECAST CAR219137AUTOZONE 501-0000-60675 660.72Parts, Accessories, and UpfitsGOLF CART BATTERIES219137AUTOZONE 501-0000-60675 -660.72Parts, Accessories, and UpfitsRETURN GOLF CART BATTERIES219137AUTOZONE 501-0000-60675 53.55Parts, Accessories, and UpfitsDIESEL EXHAUST FLUID & LIGHT BULBS219137AUTOZONE 501-0000-60675 -53.55Parts, Accessories, and UpfitsRETURN DIESEL EXHAUST FLUID & LIGHT…219137AUTOZONE 501-0000-60675 26.36Parts, Accessories, and UpfitsDIESEL EXHAUST FLUID219137AUTOZONE 501-0000-60675 384.60Parts, Accessories, and UpfitsTRUCK BATTERIES219137AUTOZONE 501-0000-60675 -384.60Parts, Accessories, and UpfitsRETURN TRUCK BATTERIES219137AUTOZONE 501-0000-60675 33.72Parts, Accessories, and UpfitsVEHICLE CLEANING SUPPLIES219137AUTOZONE 501-0000-60675 21.61Parts, Accessories, and UpfitsLICENSE PLATE SCREWS219137AUTOZONE 501-0000-60675 28.46Parts, Accessories, and UpfitsDIESEL EXHAUST FLUID & VEHICLE MAI…219137AUTOZONE 501-0000-60675 73.65Parts, Accessories, and UpfitsMAINTENANCE SUPPLIES219137AUTOZONE 501-0000-60675 91.28Parts, Accessories, and UpfitsDIESEL EXHAUST FLUID219137AUTOZONE 501-0000-60675 973.59Motorcycle Repair & Mainte…MOTORCYCLE REPAIRS VIN G34220219139BMW MOTORCYCLES OF RIV…501-0000-60679 251.12Vehicle Repair & Maintenan…2017 CHEVY COLORADO VIN #H1269005…219140CHEVROLET CADILLAC 501-0000-60676 247.14Vehicle Repair & Maintenan…2022 CHEVY COLORADO VIN #N1305134…219140CHEVROLET CADILLAC 501-0000-60676 524.29Vehicle Repair & Maintenan…2022 CHEVY SILVERADO VIN #F182355 …219140CHEVROLET CADILLAC 501-0000-60676 524.29Vehicle Repair & Maintenan…2022 CHEVY SILVERADO VIN #F182207 …219140CHEVROLET CADILLAC 501-0000-60676 177.08Vehicle Repair & Maintenan…2022 CHEVY COLORADO VIN #N1128784…219146DANIEL'S TIRE SERVICE, INC.501-0000-60676 207.93Vehicle Repair & Maintenan…PRESSURE WASHER TIRE REPLACEMENT219146DANIEL'S TIRE SERVICE, INC.501-0000-60676 134.57Vehicle Repair & Maintenan…2017 CHEVY COLORADO VIN #H1244342…219146DANIEL'S TIRE SERVICE, INC.501-0000-60676 7,795.31City Bldg Repl/RepairCH WOODWORK AND METAL TRIM PAI…219164COLOR NEW CO 501-0000-71103 13,176.35City Bldg Repl/RepairCH WOODWORK AND METAL TRIM PAI…219164COLOR NEW CO 501-0000-71103 3,088.51Building Leases03/2026 - PW TRAILER RENTAL219168PACIFIC MOBILE STRUCTURES…501-0000-71032 116.33Parts, Accessories, and UpfitsMULTI-REGULATOR & TURBO NOZZLE P…219171POWERPLAN BF 501-0000-60675 839.58Vehicle Repair & Maintenan…01/2026 - CAR WASH MEMBERSHIP219173QUICK QUACK CAR WASH H…501-0000-60676 Fund 501 - FACILITY & FLEET REPLACEMENT Total:28,408.07 Fund: 502 - INFORMATION TECHNOLOGY 1,173.72Cell/Mobile Phones01/02-02/01/26 - CITY IPADS (5587)219189VERIZON WIRELESS 502-0000-61301 Fund 502 - INFORMATION TECHNOLOGY Total:1,173.72 Grand Total:301,071.09 159 Demand Register Packet: APPKT04472 - 02/20/2026 JB 3/6/2026 11:21:05 AM Page 4 of 5 Fund Summary Fund Expense Amount 101 - GENERAL FUND 228,278.15 201 - GAS TAX FUND 8,399.06 202 - LIBRARY & MUSEUM FUND 5,953.21 215 - LIGHTING & LANDSCAPING FUND 7,001.20 401 - CAPITAL IMPROVEMENT PROGRAMS 21,857.68 501 - FACILITY & FLEET REPLACEMENT 28,408.07 502 - INFORMATION TECHNOLOGY 1,173.72 Grand Total:301,071.09 Account Summary Account Number Account Name Expense Amount 101-0000-20308 SMIP Fees Payable -168.99 101-0000-20981 United Way Deductions 108.00 101-0000-20985 Garnishments Payable 456.40 101-0000-42400 Building Permits 76.34 101-0000-42402 Mechanical Permits 42.46 101-0000-42403 Electrical Permits 128.93 101-0000-42610 SMIP Fees 3,379.75 101-1001-60320 Travel & Training 125.00 101-1005-60103 Professional Services 40,550.00 101-1006-60400 Office Supplies 152.04 101-1007-60403 Citywide Supplies 10.19 101-1007-60470 Postage 117.20 101-2001-60175 Special Enforcement Fu…400.00 101-2001-60176 Sheriff - Other 2,335.99 101-2001-60420 Operating Supplies 243.52 101-2002-60691 Maintenance/Services 3,996.70 101-2002-61200 Water - Utilities 197.29 101-3001-60510 Grants & Economic Deve…10,000.00 101-3002-60107 Instructors 2,755.75 101-3003-60149 Community Experiences 7,115.00 101-3003-60190 X Park Programming 95,345.95 101-3005-60136 Lighting Service 475.00 101-3005-60431 Materials/Supplies 18,202.48 101-3005-60690 Uniforms 43.71 101-3005-60691 Maintenance/Services 5,040.00 101-3005-61201 Water -Monticello Park -…1,120.80 101-3005-61204 Water -Fritz Burns Park -…281.72 101-3005-61208 Water -Seasons Park - Ut…30.86 101-3005-61209 Water -Community Park …599.19 101-3007-60410 Printing 892.84 101-3007-60450 Sponsorships/Advertising 5,000.00 101-3007-60461 Marketing & Tourism Pr…1,000.00 101-3008-60115 Janitorial 16,323.21 101-3008-60431 Materials/Supplies 2,501.77 101-3008-60667 HVAC 1,094.50 101-3008-60690 Uniforms 34.97 101-3008-61200 Water - Utilities 81.46 101-6004-60111 Administrative Citation …1,061.46 101-6006-60320 Travel & Training 249.00 101-7003-60420 Operating Supplies 382.17 101-7003-60691 Maintenance/Services 6,450.00 101-7006-60146 PM 10 - Dust Control 45.49 201-7003-60429 Traffic Control Signs 6,340.89 201-7003-60431 Materials/Supplies 1,979.48 201-7003-60690 Uniforms 78.69 202-3004-60115 Janitorial 3,264.32 202-3004-60691 Maintenance/Services 965.16 202-3006-60115 Janitorial 1,723.73 160 Demand Register Packet: APPKT04472 - 02/20/2026 JB 3/6/2026 11:21:05 AM Page 5 of 5 Account Summary Account Number Account Name Expense Amount 215-7004-60431 Materials/Supplies 531.03 215-7004-60691 Maintenance/Services 3,900.00 215-7004-61116 Electric - Utilities 449.21 215-7004-61117 Electric - Medians - Utilit…74.08 215-7004-61211 Water - Medians - Utiliti…2,046.88 401-0000-60185 Design 522.19 401-0000-60188 Construction 21,335.49 501-0000-60675 Parts, Accessories, and …468.31 501-0000-60676 Vehicle Repair & Maint…2,906.00 501-0000-60679 Motorcycle Repair & Ma…973.59 501-0000-71032 Building Leases 3,088.51 501-0000-71103 City Bldg Repl/Repair 20,971.66 502-0000-61301 Cell/Mobile Phones 1,173.72 Grand Total:301,071.09 Project Account Summary Project Account Key Expense AmountProject Account Name Project Name **None**107,099.98**None****None** 201901D 522.19Design Expense Village Art Plaza Promenade & Cultural Campus 202102CT 21,335.49Construction Expense Fritz Burns Park Improvements 202330B 5,040.00DIR 20250603458 On-Call Services Park Landscape Maintenance Services 202330E 18,202.48Park Landscape Maintenance Servi…Park Landscape Maintenance Services 202331B 3,900.00DIR 20250572444 On-Call Services SilverRock Landscape Maintenance Services 202422E 6,450.00On-Call Public Works Concrete Ma…On-Call Public Works Concrete Maintenance Services EGGE 2,625.00La Quinta Egg Hunt Expense La Quinta Egg Hunt STVRE 40,550.00Short Term Vacation Rental Expen…Short Term Vacation Rental Tracking XPARKE 95,345.95X Park Expenses X Park Grand Total:301,071.09 *Project codes are generally used to track Capital Improvement Program (CIP) projects, other large public works projects, developer deposits, or city-wide events. Normal operational expenditures are not project coded and, therefore, will report as "none" in this section. 161 3/3/2026 1:03:57 PM Page 1 of 5 Demand Register Packet: APPKT04484 - 02/27/2026 JB AmountVendor Name Payment Number Description (Item)Account Name Account Number Fund: 101 - GENERAL FUND 144.00Instructors1 DAY SESSION CLASSES350JENSEN, SHARLA W 101-3002-60107 48.00Instructors1 DAY SESSION CLASS350JENSEN, SHARLA W 101-3002-60107 175.00Employee Recognition Events02/10/26 - EMPLOYEE APPRECIATION R…351TRIPLETT, ALCADIA 101-1004-60340 700.00Employee Recognition Events02/10/26 - EMPLOYEE APPRECIATION R…351TRIPLETT, ALCADIA 101-1004-60340 892.72Citywide SuppliesLOBBY COFFEE MACHINE SUPPLIES219195ALL PRO BEVERAGE INC 101-1007-60403 272.15Printing2025 1099 TAX FORMS (200)219196ALTEC 101-1006-60410 244.03Printing2025 W-2 FORMS (300)219196ALTEC 101-1006-60410 317.64Printing2025 1095C TAX FORMS (300)219196ALTEC 101-1006-60410 5,000.00Grants & Economic Develop…FY 25/26 COMMUNITY SERVICE GRANT …219197ASSISTANCE LEAGUE COACH…101-3001-60510 13.61Cable/Internet - Utilities02/16-03/15/26 - FS #32 CABLE (3301)219199CHARTER COMMUNICATIONS…101-2002-61400 58.32Cable/Internet - Utilities02/16-03/15/26 - FS #70 CABLE (4701)219199CHARTER COMMUNICATIONS…101-2002-61400 96.00Consultants/Employee Servic…01/2026 - LQYC FINGERPRINTING219201DEPARTMENT OF JUSTICE 101-1004-60104 81,283.10Landscape Contract02/2026 PARKS LANDSCAPE MAINTENA…219202DESERT CONCEPTS CONSTR…101-3005-60112 5,125.00Landscape Contract02/2026 L & L LANDSCAPE MAINT SVCS …219202DESERT CONCEPTS CONSTR…101-2002-60112 500.00Miscellaneous DepositsFACILITY DEPOSIT REFUND219204DESERT HEALTHCARE DISTRI…101-0000-22830 12,657.36Fritz Burns Pool Programming01/2026 PAWLEY POOL AQUATIC CENT…219205DESERT RECREATION DISTRI…101-3003-60184 4,089.60Professional Services02/2026 - SECURITY PATROL SERVICES219206DESERT RESORT MANAGEM…101-6004-60103 450.00Maintenance/ServicesMITCHELL PAIGE/RETENTION BASIN FIR…219207DESERT TREE SPRAYING 101-3005-60691 450.00Maintenance/ServicesCIVIC CENTER & WC FIREANT/SPIDER TR…219207DESERT TREE SPRAYING 101-3005-60691 63.09Telephone - Utilities02/2026 - LQ PARK PHONE219209FRONTIER COMMUNICATIO…101-3005-61300 56.62Telephone - Utilities01/28-02/27/26 - SPORTS COMPLEX PH…219209FRONTIER COMMUNICATIO…101-3005-61300 511.34Materials/SuppliesGPH EMITTER THREADED & POLY FLEX R…219211HIGH TECH IRRIGATION INC 101-3005-60431 39.77Materials/SuppliesRED HEAD ANCHOR KITS & WIRE219211HIGH TECH IRRIGATION INC 101-3005-60431 51.07Disaster Prep SuppliesEMERGENCY MAINTENANCE STORAGE …219212HOME DEPOT CREDIT SERVIC…101-2002-60406 -55.36Fire StationRETURN FS #32 SQUEEGEE219212HOME DEPOT CREDIT SERVIC…101-2002-60670 421.21Fire StationFS #70 REFRIGERATOR WATER FILTER219212HOME DEPOT CREDIT SERVIC…101-2002-60670 494.16Fire StationFS #32 ICE/REFRIGERATOR & VEHICLE C…219212HOME DEPOT CREDIT SERVIC…101-2002-60670 55.36Fire StationFS #32 SQUEEGEES219212HOME DEPOT CREDIT SERVIC…101-2002-60670 1,269.15Fire StationREFRIGERATOR FOR FS #70219212HOME DEPOT CREDIT SERVIC…101-2002-60670 37.96Materials/SuppliesPAINT BRUSHES & SPRAY PAINT219212HOME DEPOT CREDIT SERVIC…101-3005-60431 78.10Materials/SuppliesGROUT CAULK219212HOME DEPOT CREDIT SERVIC…101-3005-60431 70.07Materials/SuppliesWET DRY VAC FILTER & SANDED CAULK219212HOME DEPOT CREDIT SERVIC…101-3005-60431 49.87Materials/SuppliesAIR DUST CANS & TOWELS219212HOME DEPOT CREDIT SERVIC…101-3005-60431 86.98Tools/EquipmentPOLE PRUNER219212HOME DEPOT CREDIT SERVIC…101-3005-60432 21.73Tools/EquipmentCAULK GUN219212HOME DEPOT CREDIT SERVIC…101-3005-60432 45.45Materials/SuppliesSADDLE THRESHOLD219212HOME DEPOT CREDIT SERVIC…101-3008-60431 102.74Materials/SuppliesSTRIP LIGHT FIXTURES FOR X-PARK219212HOME DEPOT CREDIT SERVIC…101-3008-60431 52.89Materials/SuppliesEPOXY219212HOME DEPOT CREDIT SERVIC…101-3008-60431 38.75Materials/SuppliesPAINT PRIMER219212HOME DEPOT CREDIT SERVIC…101-3008-60431 60.52Materials/SuppliesSANDED CAULK, SPONGES, GLOVES219212HOME DEPOT CREDIT SERVIC…101-3008-60431 231.68Materials/SuppliesSUPPLIES FOR CH219212HOME DEPOT CREDIT SERVIC…101-3008-60431 105.76Materials/SuppliesEPOXY219212HOME DEPOT CREDIT SERVIC…101-3008-60431 106.29Materials/SuppliesSPRAY PAINT219212HOME DEPOT CREDIT SERVIC…101-3008-60431 82.27Materials/SuppliesSEALANT219212HOME DEPOT CREDIT SERVIC…101-3008-60431 32.45Materials/SuppliesRAPID SET CEMENT & TROWEL219212HOME DEPOT CREDIT SERVIC…101-3008-60431 52.07Materials/SuppliesSANDED CAULK219212HOME DEPOT CREDIT SERVIC…101-3008-60431 299.26Materials/SuppliesPAINT & PAINT SUPPLIES219212HOME DEPOT CREDIT SERVIC…101-3008-60431 72.94Materials/SuppliesBROOM, SQUEEGEE, GLOVES219212HOME DEPOT CREDIT SERVIC…101-3008-60431 80.03Materials/SuppliesSUPPLIES FOR CH219212HOME DEPOT CREDIT SERVIC…101-3008-60431 151.16Tools/EquipmentSTEP LADDER219212HOME DEPOT CREDIT SERVIC…101-3008-60432 54.88Operating SuppliesABS PIPE219212HOME DEPOT CREDIT SERVIC…101-7003-60420 15.18Operating SuppliesSPRAY PAINT219212HOME DEPOT CREDIT SERVIC…101-7003-60420 114.55Operating SuppliesTOWELS, SPRAY PAINT, GLOVES219212HOME DEPOT CREDIT SERVIC…101-7003-60420 162 Demand Register Packet: APPKT04484 - 02/27/2026 JB 3/3/2026 1:03:57 PM Page 2 of 5 AmountVendor Name Payment Number Description (Item)Account Name Account Number 82.54Operating SuppliesCONSTRUCTION ADHESIVE & CAULK GUN219212HOME DEPOT CREDIT SERVIC…101-7003-60420 73.01Operating SuppliesCLOTHS, GLOVES219212HOME DEPOT CREDIT SERVIC…101-7003-60420 57.58Tools/EquipmentDRILL BIT219212HOME DEPOT CREDIT SERVIC…101-7003-60432 70.23Tools/EquipmentSMALL TOOLS219212HOME DEPOT CREDIT SERVIC…101-7003-60432 29.96Tools/EquipmentHEX BIT SOCKETS219212HOME DEPOT CREDIT SERVIC…101-7003-60432 127.35Tools/EquipmentDRILL BITS219212HOME DEPOT CREDIT SERVIC…101-7003-60432 49.47Tools/EquipmentDRILL BITS219212HOME DEPOT CREDIT SERVIC…101-7003-60432 153.24Tools/EquipmentDRILL BITS219212HOME DEPOT CREDIT SERVIC…101-7003-60432 161.97Tools/EquipmentFLASHLIGHTS & HEADLAMP219212HOME DEPOT CREDIT SERVIC…101-7003-60432 153.83Tools/EquipmentTOOLS219212HOME DEPOT CREDIT SERVIC…101-7003-60432 75.00Consultants/Employee Servic…02/05/26 - DMV DOT PHYSCIAL219215INDUSTRIAL HEALTH MEDICA…101-1004-60104 65,542.47Marketing & Tourism Promot…02/2026 - MEDIA SERVICES219217JNS MEDIA SPECIALISTS 101-3007-60461 5,337.50Professional ServicesCLASSIFICATION & COMPENSATION REV…219218LOGIC COMPENSATION GRO…101-1004-60103 5,940.00Materials/SuppliesPLANTS & MATERIALS219219MACIAS NURSERY, INC.101-3005-60431 2,163.00LQ Park Water Feature02/2026 - LQ PARK SPLASH PAD MAINT…219222OCEAN SPRINGS TECH INC 101-3005-60554 3,672.75LQ Park Water FeatureLQ SPLASHPAD NEW MAESTRO PRO REP…219222OCEAN SPRINGS TECH INC 101-3005-60554 99.64Office SuppliesPRINTER TONER & HAND WIPES219223ODP BUSINESS SOLUTIONS, L…101-6004-60400 79.93Operating SuppliesBATTERIES & MESH DESK ORGANIZER219223ODP BUSINESS SOLUTIONS, L…101-6006-60420 55.47Office SuppliesOFFICE SUPPLIES219223ODP BUSINESS SOLUTIONS, L…101-1002-60400 322.50Security & Alarm1/1-3/21/26 EISENHOWER CASITA FIRE …219225PYE BARKER 101-3008-60123 1,198.43Materials/SuppliesPARKS PLANT MATERIALS219226RED TERRA NURSERY, LLC 101-3005-60431 23.93Materials/SuppliesPARKS PLANT MATERIALS219226RED TERRA NURSERY, LLC 101-3005-60431 979.38Professional ServicesINTERPRETATION AND DOCUMENT TRA…219227RELIABLE TRANSLATIONS INC 101-1005-60103 1,560.00Maintenance/Services02/16/26 - ON-CALL STREET SWEEPING …219229ROAD SERVICES 101-7003-60691 177.77Travel & Training02/05/26 - SCAG MEETING TRAVEL REI…219232SANCHEZ, STEVE 101-1001-60320 600.00Maintenance/ServicesFS #32 FIRE SPRINKLER INSPECTION219233SHASTA FIRE PROTECTION, I…101-2002-60691 524.29Materials/SuppliesPVC PIPES & PVC TEES219235SMITH PIPE & SUPPLY CO 101-3005-60431 108.96Materials/SuppliesMATERIALS219235SMITH PIPE & SUPPLY CO 101-3005-60431 10.01Materials/SuppliesBRASS PIPE TUBES HOSE REPAIR FITTIN…219235SMITH PIPE & SUPPLY CO 101-3005-60431 1,417.50Civic Center Lake Maintenan…02/2026 CIVIC CENTER LAKE MAINTENA…219236SOUTHWEST AQUATICS 101-3005-60117 1,417.50SilverRock Lake Maintenance02/2026 SRR LAKE MAINTENANCE SERV…219236SOUTHWEST AQUATICS 101-3005-60189 7,449.38Materials/SuppliesGROUND COVER & SAFETY FILL219237SOUTHWEST BOULDER & ST…101-3005-60431 78.97Citywide SuppliesBREAKROOM SUPPLIES219239STAPLES ADVANTAGE 101-1007-60403 107.56Citywide SuppliesBREAKROOM SUPPLIES219239STAPLES ADVANTAGE 101-1007-60403 100.68Citywide SuppliesCITYWIDE CUPS219239STAPLES ADVANTAGE 101-1007-60403 56.54Materials/SuppliesGUARD FOR PAINT SPRAYING GUN219241THE SHERWIN-WILLIAMS CO.101-3005-60431 14,535.85Landscape Contract02/2026 SRR EVENT PARK LANDSCAPE …219242VINTAGE ASSOCIATES 101-3005-60112 38.18Electrical PermitsREFUND PERMIT BSAP2025-0139219244VOLT OPS SOLUTIONS 101-0000-42403 7,779.23PrintingSTVR ANNUAL POSTCARD219245XPRESS GRAPHICS 101-1005-60410 50.00Administrative CitationsREFUND CITATION LQP164076219246ZAYAS, CESAR 101-0000-42700 Fund 101 - GENERAL FUND Total:239,928.12 Fund: 202 - LIBRARY & MUSEUM FUND 2,836.94Landscape Contract02/2026 LIBRARY PARKS LANDSCAPE MA…219202DESERT CONCEPTS CONSTR…202-3004-60112 1,773.25Landscape Contract02/2026 MUSEUM PARKS LANDSCAPE …219202DESERT CONCEPTS CONSTR…202-3006-60112 690.00Cable/Internet - Utilities02/04-03/03/26 - LIBRARY DIA CIRCUIT219209FRONTIER COMMUNICATIO…202-3004-61400 600.00Maintenance/ServicesMUSEUM FIRE SPRINKLER INSPECTION219233SHASTA FIRE PROTECTION, I…202-3006-60691 420.00Maintenance/ServicesLIBRARY MAKER SPACE GLASS REPLACE…219240SUPREME WINDOW & DOOR …202-3009-60691 Fund 202 - LIBRARY & MUSEUM FUND Total:6,320.19 Fund: 215 - LIGHTING & LANDSCAPING FUND 14,898.38Landscape Contract02/2026 L&L PARKS LANDSCAPE MAINT…219202DESERT CONCEPTS CONSTR…215-7004-60112 691.58Landscape Contract02/2026 VISTA CORTINA L & L LANDSCA…219202DESERT CONCEPTS CONSTR…215-7004-60112 112,236.00Landscape Contract02/2026 L & L LANDSCAPE MAINTENAN…219202DESERT CONCEPTS CONSTR…215-7004-60112 4,906.02Materials/SuppliesLANDSCAPE LIGHTS (60)219203DESERT ELECTRIC SUPPLY 215-7004-60431 168.19Electric - Utilities02/07-03/06/26 - PHONE SERVICE219209FRONTIER COMMUNICATIO…215-7004-61116 73.27Electric - Utilities02/10-03/09/26 - PHONE SERVICE219209FRONTIER COMMUNICATIO…215-7004-61116 6,827.08Consultants12/2025 - L&L LIGHTING MAINTENANCE219214HORIZON LIGHTING 215-7004-60104 1,609.50Materials/SuppliesLIGHTING & LANDSCAPE PLANT MATERI…219219MACIAS NURSERY, INC.215-7004-60431 2,042.33Materials/SuppliesLIGHTING & LANDSCAPE PLANT MATERI…219226RED TERRA NURSERY, LLC 215-7004-60431 300.00Maintenance/ServicesPALM TREE LIGHT CHANGING COLOR SE…219231ROTOLIGHTNG, INC 215-7004-60691 5,257.23Landscape Contract02/2026 SRR PARK RETENTION BASIN L…219242VINTAGE ASSOCIATES 215-7004-60112 163 Demand Register Packet: APPKT04484 - 02/27/2026 JB 3/3/2026 1:03:57 PM Page 3 of 5 AmountVendor Name Payment Number Description (Item)Account Name Account Number 5,812.78SilverRock Way Landscape02/2026 SRR EVENT PARK L&L PERIMET…219242VINTAGE ASSOCIATES 215-7004-60143 1,765.56Maintenance/Services10/03/25 - JEFFERSON MEDIAN LIGHTI…219243VINTAGE E & S INC 215-7004-60691 1,188.60Maintenance/Services2/11/25 & 2/17/25 OLD TOWN STREET …219243VINTAGE E & S INC 215-7004-60691 Fund 215 - LIGHTING & LANDSCAPING FUND Total:157,776.52 Fund: 221 - AB 939 - CALRECYCLE FUND 3,500.00AB 939 Recycling Solutions12/2025 - RECYCLING RADIO ADS MIX 1…219200CONNOISSEUR MEDIA HOLD…221-0000-60127 Fund 221 - AB 939 - CALRECYCLE FUND Total:3,500.00 Fund: 223 - MEASURE A FUND 8,964.30Signal Knockdowns, Conting…01/2026 KNOCKDOWN REPAIRS219238ST. FRANCIS ELECTRIC, LLC 223-0000-60510 9,085.11Signal Knockdowns, Conting…01/2026 KNOCKDOWN REPAIRS219238ST. FRANCIS ELECTRIC, LLC 223-0000-60510 Fund 223 - MEASURE A FUND Total:18,049.41 Fund: 270 - ART IN PUBLIC PLACES FUND 6,450.00Art PurchasesCIVIC CENTER ART PURCHASE 42" BRASS…219198BORIS KRAMER 270-0000-74800 15,200.00Art Purchases CITY HALL MURAL ART PURCHASE219208FRIZZELL, NATHAN 270-0000-74800 6,500.00Art PurchasesCIVIC CENTER ART PURCHASE GLASS B…219216JESSE KELLY GLASS 270-0000-74800 13,567.75APP Maintenance & Display3RD QUARTER APP MAINTENANCE219234SIGNATURE SCULPTURE 270-0000-60683 Fund 270 - ART IN PUBLIC PLACES FUND Total:41,717.75 Fund: 401 - CAPITAL IMPROVEMENT PROGRAMS 24,008.05Design9/28-11/22/25 WASHINGTION CV LINK …219194ALBERT A WEBB ASSOCIATES 401-0000-60185 6,342.13Design12/28/25-1/24/26 WASHINGTON CV LI…219194ALBERT A WEBB ASSOCIATES 401-0000-60185 357,188.09Retention PayableHWY 111 RESURFACING RETENTION PA…219210GRANITE CONSTRUCTION C…401-0000-20600 145.28ConstructionLEVEL 3 PM SUPPLIES219212HOME DEPOT CREDIT SERVIC…401-0000-60188 172.29ConstructionLEVEL 3 PM SUPPLIES219212HOME DEPOT CREDIT SERVIC…401-0000-60188 8,905.49Design11/24-12/31/25 - AVE 50 BRIDGE DESIGN219220MARK THOMAS & COMPANY,…401-0000-60185 4,529.24Design01/01-01/25/26 - AVE 50 BRIDGE DESIGN219220MARK THOMAS & COMPANY,…401-0000-60185 12,321.73ConstructionLIGHT REPAIRS AT CALLE TAMPICO AND…219221NEXTECH SYSTEMS, INC.401-0000-60188 1,311.46ConstructionREPLACEMENT BATTERY219224POWERSTRIDE BATTERY CO.401-0000-60188 -10,226.48Retention Payable01/2026 PMP REHAB & SLURRY SEAL IM…219230ROMERO GENERAL CONSTR…401-0000-20600 204,529.55Construction01/2026 PMP REHAB & SLURRY SEAL IM…219230ROMERO GENERAL CONSTR…401-0000-60188 2,045.00Construction01/2026 ON-CALL TRAFFIC SIGNAL REPA…219238ST. FRANCIS ELECTRIC, LLC 401-0000-60188 Fund 401 - CAPITAL IMPROVEMENT PROGRAMS Total:611,271.83 Fund: 501 - FACILITY & FLEET REPLACEMENT 14.22Parts, Accessories, and Upfits5 GAL BUCKETS219212HOME DEPOT CREDIT SERVIC…501-0000-60675 Fund 501 - FACILITY & FLEET REPLACEMENT Total:14.22 Fund: 502 - INFORMATION TECHNOLOGY 197.94Cable/Internet - Utilities02/10-03/09/26 - CH CABLE (2601)219199CHARTER COMMUNICATIONS…502-0000-61400 2,079.00Cable/Internet - Utilities02/10-03/09/26 - CH INTERNET (1801)219199CHARTER COMMUNICATIONS…502-0000-61400 15.73Cable/Internet - Utilities02/10-03/09/26 - WC CABLE (2101)219199CHARTER COMMUNICATIONS…502-0000-61400 87.62Cable/Internet - Utilities02/10-03/09/26 - CITY YARD CABLE (580…219199CHARTER COMMUNICATIONS…502-0000-61400 2,580.00Cable/Internet - Utilities02/03-03/02/26 - 2ND CITY INTERNET LI…219209FRONTIER COMMUNICATIO…502-0000-61400 690.00Cable/Internet - Utilities02/04-03/03/26 - WC DIA CIRCUIT219209FRONTIER COMMUNICATIO…502-0000-61400 718.68Cable/Internet - Utilities02/04-3/03/26 - DSL SVC219209FRONTIER COMMUNICATIO…502-0000-61400 10,185.00Software Licenses01/2026 GEOGRAPHIC INFORMATION S…219228RINCON CONSULTANTS, INC.502-0000-60301 Fund 502 - INFORMATION TECHNOLOGY Total:16,553.97 Fund: 601 - SILVERROCK RESORT 89.18Repair & MaintenanceDOOR CLOSER HARDWARE219212HOME DEPOT CREDIT SERVIC…601-0000-60660 487.20Repair & MaintenanceWALL PACK LIGHTS219212HOME DEPOT CREDIT SERVIC…601-0000-60660 Fund 601 - SILVERROCK RESORT Total:576.38 Grand Total:1,095,708.39 164 Demand Register Packet: APPKT04484 - 02/27/2026 JB 3/3/2026 1:03:57 PM Page 4 of 5 Fund Summary Fund Expense Amount 101 - GENERAL FUND 239,928.12 202 - LIBRARY & MUSEUM FUND 6,320.19 215 - LIGHTING & LANDSCAPING FUND 157,776.52 221 - AB 939 - CALRECYCLE FUND 3,500.00 223 - MEASURE A FUND 18,049.41 270 - ART IN PUBLIC PLACES FUND 41,717.75 401 - CAPITAL IMPROVEMENT PROGRAMS 611,271.83 501 - FACILITY & FLEET REPLACEMENT 14.22 502 - INFORMATION TECHNOLOGY 16,553.97 601 - SILVERROCK RESORT 576.38 Grand Total:1,095,708.39 Account Summary Account Number Account Name Expense Amount 101-0000-22830 Miscellaneous Deposits 500.00 101-0000-42403 Electrical Permits 38.18 101-0000-42700 Administrative Citations 50.00 101-1001-60320 Travel & Training 177.77 101-1002-60400 Office Supplies 55.47 101-1004-60103 Professional Services 5,337.50 101-1004-60104 Consultants/Employee S…171.00 101-1004-60340 Employee Recognition E…875.00 101-1005-60103 Professional Services 979.38 101-1005-60410 Printing 7,779.23 101-1006-60410 Printing 833.82 101-1007-60403 Citywide Supplies 1,179.93 101-2002-60112 Landscape Contract 5,125.00 101-2002-60406 Disaster Prep Supplies 51.07 101-2002-60670 Fire Station 2,184.52 101-2002-60691 Maintenance/Services 600.00 101-2002-61400 Cable/Internet - Utilities 71.93 101-3001-60510 Grants & Economic Deve…5,000.00 101-3002-60107 Instructors 192.00 101-3003-60184 Fritz Burns Pool Progra…12,657.36 101-3005-60112 Landscape Contract 95,818.95 101-3005-60117 Civic Center Lake Maint…1,417.50 101-3005-60189 SilverRock Lake Mainten…1,417.50 101-3005-60431 Materials/Supplies 16,098.65 101-3005-60432 Tools/Equipment 108.71 101-3005-60554 LQ Park Water Feature 5,835.75 101-3005-60691 Maintenance/Services 900.00 101-3005-61300 Telephone - Utilities 119.71 101-3007-60461 Marketing & Tourism Pr…65,542.47 101-3008-60123 Security & Alarm 322.50 101-3008-60431 Materials/Supplies 1,363.10 101-3008-60432 Tools/Equipment 151.16 101-6004-60103 Professional Services 4,089.60 101-6004-60400 Office Supplies 99.64 101-6006-60420 Operating Supplies 79.93 101-7003-60420 Operating Supplies 340.16 101-7003-60432 Tools/Equipment 803.63 101-7003-60691 Maintenance/Services 1,560.00 202-3004-60112 Landscape Contract 2,836.94 202-3004-61400 Cable/Internet - Utilities 690.00 202-3006-60112 Landscape Contract 1,773.25 202-3006-60691 Maintenance/Services 600.00 202-3009-60691 Maintenance/Services 420.00 215-7004-60104 Consultants 6,827.08 215-7004-60112 Landscape Contract 133,083.19 165 Demand Register Packet: APPKT04484 - 02/27/2026 JB 3/3/2026 1:03:57 PM Page 5 of 5 Account Summary Account Number Account Name Expense Amount 215-7004-60143 SilverRock Way Landsca…5,812.78 215-7004-60431 Materials/Supplies 8,557.85 215-7004-60691 Maintenance/Services 3,254.16 215-7004-61116 Electric - Utilities 241.46 221-0000-60127 AB 939 Recycling Solutio…3,500.00 223-0000-60510 Signal Knockdowns, Cont…18,049.41 270-0000-60683 APP Maintenance & Disp…13,567.75 270-0000-74800 Art Purchases 28,150.00 401-0000-20600 Retention Payable 346,961.61 401-0000-60185 Design 43,784.91 401-0000-60188 Construction 220,525.31 501-0000-60675 Parts, Accessories, and …14.22 502-0000-60301 Software Licenses 10,185.00 502-0000-61400 Cable/Internet - Utilities 6,368.97 601-0000-60660 Repair & Maintenance 576.38 Grand Total:1,095,708.39 Project Account Summary Project Account Key Expense AmountProject Account Name Project Name **None**186,377.93**None****None** 201804E 5,417.39Landscape & Lighting Median Islan…Landscape & Lighting Median Island Improvements 201902D 13,434.73Design Expense Avenue 50 Bridge Spanning the Evacuation Channel 202225RP 357,188.09Retention Payable Highway 111 Rehabilitation Project 202309D 30,350.18Design Expense Washington Street Connector to Art and Music Line 202328A 118,052.58DIR 20240538984 Regular Mainte…Citywide Landscape Maintenance Srvcs (L&L AD 89-1) 202329E 11,733.10Citywide Lighting Maintenance Srv…Citywide Lighting Maintenance Srvcs (L&L AD 89-1) 202330A 100,791.67DIR 20240538986 Regular Mainte…Park Landscape Maintenance Services 202330E 15,806.11Park Landscape Maintenance Servi…Park Landscape Maintenance Services 202331E 25,605.86SilverRock Landscape Maintenance…SilverRock Landscape Maintenance Services 202424E 5,835.75Pool & Water Feature Maintenance Pool & Water Feature Maintenance 202425E 1,188.60On-Call Electrical Services On-Call Electrical Services 202502CT 204,529.55Construction Expense Cove Area Slurry Seal Improvements Phase 2 202502RP -10,226.48Retention Payable Cove Area Slurry Seal Improvements Phase 2 2526TMICT 15,995.76Construction Expense FY25/26 Traffic Maintenance Improvements CSA152E 1,560.00CSA 152 Expenses CSA 152 Project Tracking LQYCE 96.00La Quinta Youth Collective Expens…La Quinta Youth Collective STVRE 11,868.83Short Term Vacation Rental Expen…Short Term Vacation Rental Tracking XPARKE 102.74X Park Expenses X Park Grand Total:1,095,708.39 *Project codes are generally used to track Capital Improvement Program (CIP) projects, other large public works projects, developer deposits, or city-wide events. Normal operational expenditures are not project coded and, therefore, will report as "none" in this section. 166 City of La Quinta Bank Transactions 02/16/2026-02/27/2026 Wire Transaction Listed below are the wire transfers from 02/16/2026-02/27/2026. 02/17/2026 - WIRE TRANSFER - EXPERT PAY $48.46 02/17/2026 - WIRE TRANSFER - STERLING $2,142.91 02/17/2026 - WIRE TRANSFER - LQCEA $572.00 02/17/2026 - WIRE TRANSFER - MISSION SQUARE $7,024.88 02/17/2026 - WIRE TRANSFER - MISSION SQUARE $15,813.23 02/18/2026 - WIRE TRANSFER - MISSION SQUARE $7,124.88 02/18/2026 - WIRE TRANSFER - MISSION SQUARE $18,073.47 02/19/2026 - WIRE TRANSFER - CALPERS $211.28 02/19/2026 - WIRE TRANSFER - CALPERS $8,048.00 02/19/2026 - WIRE TRANSFER - CALPERS $16,374.53 02/19/2026 - WIRE TRANSFER - CALPERS $38,679.62 02/19/2026 - WIRE TRANSFER - CALPERS $171,373.21 02/19/2026 - WIRE TRANSFER - LANDMARK $244,969.02 02/20/2026 - WIRE TRANSFER - MIDAMERICA $20,451.38 02/20/2026 - WIRE TRANSFER - U.S. BANK $1,503,368.63 02/20/2026 - WIRE TRANSFER - J&H ASSET PROPERTY MANAGEMENT, INC.$31,827.80 02/23/2026 - WIRE TRANSFER - SILVERROCK PHASE 1 LLC(1)$918,936.02 02/26/2026 - WIRE TRANSFER - EXPERT PAY $48.46 02/27/2026 - WIRE TRANSFER - CALPERS $8,038.50 02/27/2026 - WIRE TRANSFER - CALPERS $16,369.03 02/27/2026 - WIRE TRANSFER - CALPERS $38,912.86 02/27/2026 - WIRE TRANSFER - LQCEA $583.00 02/27/2026 - WIRE TRANSFER - MISSIONSQUARE $5,105.00 02/27/2026 - WIRE TRANSFER - MISSIONSQUARE $18,139.23 TOTAL WIRE TRANSFERS OUT $3,092,235.40 (1) There funds represent a loan under the Debit-in-Possession (DIP) financing. This disbursement does not reflect the City financing of construction or development at SilverRock. ATTACHMENT 2 167 168 City of La Quinta CITY COUNCIL MEETING: March 17, 2026 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE FISCAL YEAR 2024/25 GENERAL FUND YEAR- END BUDGET REPORT AND APPROVE THE AMENDED BUDGET CARRYOVERS RECOMMENDATION Receive and file Fiscal Year 2024/25 General Fund Year-End Budget Report and approve the amended budget carryovers from 2024/25 to 2025/26. EXECUTIVE SUMMARY After closing the prior fiscal year, Finance presents a year-end summary that compares the final budget to actual transactions. Revenue was approximately $4.4 million higher than budgeted. Expenditures (including approved carryovers from 2023/24 into 2024/25) were $39.7 million under budget. Of these savings, approximately $32.6 million will be carried over to 2025/26 for General Fund capital improvements and operations, for a net savings of $7.1 million. In addition, $3.8 million of Measure G reserves was utilized for projects. FISCAL IMPACT Amended budget carryovers from 2024/25 to 2025/26 total $34,619,342 for all Funds and are funded with budgetary savings from 2024/25. ESTIMATED REVISED General Fund (101) - Operating 1,050,000$ 850,000$ General Fund (101) - Capital Improvements 36,250,000$ 31,778,242$ Library and Museum Fund (202)-$ 75,000$ Lighting & Landscape Fund (215)500,000$ 500,000$ Housing Authority Fund (241)430,000$ 417,700$ RDA Low-Mod Housing Fund (243)49,200$ 48,400$ Facility and Fleet Replacement Fund (501)150,000$ 150,000$ Information Technology Fund (502)300,000$ 300,000$ Park Equipment & Facility Fund (503)500,000$ 500,000$ 39,229,200$ 34,619,342$ CARRYOVER TOTALS BY FUND TOTAL CARRYOVERS BY FUND BUSINESS SESSION ITEM NO. 1 169 BACKGROUND/ANALYSIS The Fiscal Year 2024/25 General Fund Year-End Budget Report (Report) focuses on the General Fund. Revenues were over budget by $4,403,986 due to tax revenues, intergovernmental- fire service credit, and interest earnings. Overall, all department expenditures were under budget with total savings of $39,710,310. Of these savings, $32,628,242 will be carried over to 2025/26 for multi-year capital projects and operations. Revenues, expenditures, carryovers, reserve balances, and a year-over-year comparison are discussed in the Fiscal Year 2024/25 General Fund Year-End Budget Report (Attachment 1). ALTERNATIVES Council may request additional information regarding this report before approving the recommended amended budget carryovers. Prepared by: Claudia Martinez, Finance Director/City Treasurer Approved by: Jon McMillen, City Manager Attachment: 1. Fiscal Year 2024/25 General Fund Year-End Budget Report 170 OVERVIEW The City oversees multiple sources of funds which are reported in the Annual Comprehensive Financial Report (ACFR) issued annually and presented at a public meeting shortly thereafter. This Fiscal Year 2024/25 Budget Report (Report) focuses on the General Fund and summarizes the overall financial activities of fiscal year (FY) 2024/25 and the City’s financial position through June 30, 2025. The chart below provides a summary comparison of the FY 2024/25 final budget versus actual revenues and expenses. The City concluded FY 2024/25 in a strong financial position, with total revenues exceeding projections by $4.4 million, reaching $122.3 million compared to the final budget of $117.9 million. Expenditures were managed efficiently, with total expenditures coming in $11.5 million below the final budget, totaling $97.5 million compared to the budgeted $109 million. As a result, the actual surplus after carryovers totaled $24.8 million, significantly exceeding the budgeted surplus of $8.9 million, representing a positive variance of $15.9 million. General Fund 2024/25 Final Budget 2024/25 Actuals Variance Operational Revenues 94,212,804 98,616,790 * 4,403,986 Capital/Operational Carryovers 22,566,520 22,566,520 - Use of Measure G Reserves - - - CIP Savings/Use of Reserves 1,095,000 1,095,000 - Total Revenues 117,874,324 122,278,310 4,403,986 Operational/CIP Expenses Multi-Year Capital Improvements 40,288,508 8,539,101 (31,749,407) Operational 68,130,080 60,169,177 (7,960,903) Expenses Before Carryovers 108,418,588 68,708,278 (39,710,310) Plus Carryovers to 2025/26 Multi-Year Capital Improvements 31,778,242 31,778,242 Operational 850,000 850,000 Adjusted Expenditures 108,418,588 101,336,520 (7,082,068) Plus Measure G Reserves 600,000 (3,861,782) (4,461,782) Total Expenditures 109,018,588 97,474,738 (11,543,850) Surplus/(Deficit) After Carryovers 8,855,736 24,803,572 15,947,836 *Reduced by non-cash transactions FISCAL YEAR 2024/25 GENERAL FUND YEAR-END BUDGET REPORT ATTACHMENT 1 171 This favorable fiscal outcome was driven by stronger-than-anticipated revenues and continued prudent expenditure management, reinforcing the City’s commitment to fiscal stability and responsible financial stewardship. Looking ahead, the City remains focused on maintaining sound financial management practices by closely monitoring economic conditions, prioritizing strategic investments, and ensuring adequate funding for essential infrastructure and capital improvement projects. REVENUE VARIANCES As detailed in Exhibit A and summarized on the chart below, most General Fund revenues experienced positive variances when compared to the final budget. Taxes represent 66% of all General Fund revenues and include the three largest funding sources for the City – sales taxes $27,874,446, transient occupancy taxes (TOT) $15,949,842, and property taxes $13,694,081. Combined, these top three revenues account for $57,518,369 or 86% of all taxes. Intergovernmental Revenue increased above original budget projections due to higher- than-estimated Fire Service credits received from Riverside County and additional reimbursements related to expenses incurred during the August 2023 Tropical Storm Hilary emergency response. Use of Money and Property includes the annual fair market value adjustment to the City’s investment portfolio. As of June 30, 2025, the portfolio’s market value increased compared to June 30, 2024 due to market conditions, resulting in a positive adjustment of $2,694,670. The City maintains a five-year investment horizon with laddered maturities to manage interest rate risk and maintain liquidity. Despite ongoing market volatility, staff continues to strategically manage the portfolio within the parameters of the City’s General Fund Revenues 2024/25 Final Budget 2024/25 Actuals Variance % Variance Tax Revenue 65,825,000 66,866,127 1,041,127 2% Licenses & Permits 2,551,500 2,682,345 130,845 5% Intergovernmental 11,573,000 13,971,627 2,398,627 21% Charges for Services 1,238,700 1,407,901 169,201 14% Fines, Forfeitures & Abatements 416,000 389,446 (26,554) -6% Use of Money & Property 6,590,000 9,664,543 3,074,543 47% Miscellaneous/Transfers In 6,018,604 6,386,144 367,540 6% Total Revenues 94,212,804 101,368,134 7,155,330 8% Non-Cash Adjustments Investments Fair Market Value Adjustment (2,694,670) (2,694,670) RDA Loan Interest Earned, Extraordinary Gain (56,674) (56,674) (2,751,344) (2,751,344) Total Adjusted Revenues 94,212,804 98,616,790 4,403,986 172 Investment Policy. The portfolio’s rate of return increased from 3.52% as of June 30, 2024 to 3.76% as of June 30, 2025. Miscellaneous and Transfers In revenue includes $56,674 to record interest earned in FY 2024/25 related to the former Redevelopment Agency loan repayment. Under the State Department of Finance approved repayment schedule, loan payments are applied to principal first and then to interest. Accordingly, the City records the interest earned each year based on the repayment schedule; however, because the interest will be received in a future period, the amount is recorded and then offset as a revenue adjustment. EXPENSE VARIANCES General Fund expenses are summarized in the chart below by department, and details by department and expense category are in Exhibit B. Most departmental expenditures remained within budget. Savings were achieved from vacant positions, workflow efficiencies, and prudent management of contracts and professional services. General Fund Expenditures 2024/25 Final Budget 2024/25 Actuals Variance Carryovers to 2025/26 City Council 346,400 320,906 (25,494) - City Manager's Division 1,735,600 1,468,247 (267,353) - City Attorney 800,000 1,519,880 719,880 - Human Resources 858,600 733,231 (125,369) - City Clerk Department 1,412,570 1,181,635 (230,935) - Finance 2,113,700 2,133,785 20,085 - Centralized Services 46,877,252 13,864,403 (33,012,849) 32,228,242 Police 19,795,800 17,369,902 (2,425,898) - Fire 11,010,230 9,650,654 (1,359,576) 400,000 Community Services Admin. 616,800 452,842 (163,958) - Wellness Center Operations 680,300 638,353 (41,947) - Recreational Programs & Events 2,069,500 1,549,694 (519,806) - Parks Maintenance 5,598,500 5,448,040 (150,460) - Marketing & Community Relations 1,986,500 1,825,063 (161,437) - Public Buildings 1,885,400 1,710,962 (174,438) - Design & Development Admin. 822,150 730,530 (91,620) - Planning 894,700 772,677 (122,023) - Building 1,524,800 1,467,698 (57,102) - Code Compliance/Animal Control 1,801,240 1,494,701 (306,539) - Public Safety Administration 269,440 320,427 50,987 - The Hub 1,509,175 1,338,452 (170,723) - Public Works Administration 839,897 615,280 (224,617) - Public Works Development Svcs. 542,883 410,961 (131,922) - Streets 1,189,650 786,450 (403,200) - Engineering Services 1,237,500 903,505 (333,995) - Total Operating/CIP Expenditures 108,418,588 68,708,278 (39,710,307) 32,628,242 Estimated Actual Variance Carryovers to 2025/26 Capital Improvements - 31,778,242 31,778,242 Operational - 850,000 850,000 Total Carryovers - 32,628,242 32,628,242 Adjusted Expenditures before Reserves 108,418,588 101,336,521 (7,082,065) Plus Measure G Reserves 600,000 (3,861,782) (4,461,782) Total Adjusted Expenses 109,018,588 97,474,739 (11,543,847) 173 The following summarizes the most significant variances between the FY 2024/25 Final Budget and actual expenditures. Centralized Services (CS) represents the largest budget variance at approximately $33 million. This department captures citywide costs such as pension liabilities, retiree medical benefits, and transfers to other funds, including the Gas Tax Fund for street improvements, Lighting and Landscape Fund, SilverRock Golf Course Fund, Public Safety Fund, Economic Development Fund, and the Capital Improvement Project Fund. This department also includes the largest carryover to FY 2025/26, totaling $31,778,242, to support multi-year capital improvement projects as detailed in Exhibit C. The carryover primarily reflects projects currently in progress, including Fritz Burns Park improvements and the Highway 111 Rehabilitation Project. Of the total carryover, $21,264,489 (67%) is funded through Measure G sales tax revenue. Public Safety Services: To ensure sufficient funding for essential services such as Police and Fire, the City budgets contract costs based on the rates initially provided by Riverside County, which may reflect full compensation assumptions. In FY 2024/25, savings were realized due to operational efficiencies and actual salary and benefit costs coming in below projections. Police Services: Savings of $2,425,898 were realized due to lower-than-projected contract service costs. Fire Services: Savings of $1,359,576 were realized, including $400,000 allocated for the purchase of a fire ladder truck, which will be carried over to FY 2025/26. The remaining savings resulted from higher-than-projected tax revenues and actual contract service costs, salaries, and benefits coming in below County projections. These savings reflect prudent financial management while maintaining funding for critical public safety services. Recreational Programs & Events: Expenditures were $519,806 below budget, primarily due to lower-than-anticipated costs associated with recreational programming such as the Fritz Burns Pool, special events, and contracted services. Actual event expenditures and operational costs came in below budgeted estimates during the fiscal year. Streets Department: Streets expenditures were $403,200 below budget, primarily due to the timing of street maintenance and operational activities that will continue into the following fiscal year. Overall, these variances reflect prudent financial management, conservative budgeting practices for critical services, and the multi-year nature of capital improvement project implementation. 174 Capital Improvement Program (CIP) carryovers, detailed in Exhibit C total $31,778,242 and operational carryovers total $850,000, detailed in Exhibit D, from FY 2024/25 to FY 2025/26. Carryovers allow for operational flexibility and reflect City commitments to projects, services, or purchases that were made in 2024/25 but were not completed, fulfilled, or invoiced by the end of the FY. Funds not being carried over are recognized as Unassigned Reserve Fund balance in the General Fund. CIP revenue commitments are reflected in assigned reserves and operational carryovers are noted in committed reserves. RESERVES The chart below depicts reserve balances by category and the value change from June 30, 2024 to June 30, 2025. These reserve balances reflect the financial health of the City at fiscal year-end. Non-Spendable fund balance increased by $2,983,438 from the prior year. The change reflects a decrease in prepaid costs of $133,707, partially offset by the recognition of $5,865,124 in notes and loans receivable for the SilverRock Debtor in Possession (DIP) financing advanced by the City. In addition, Due from Other Governments decreased by $2,747,979 as a result of the FY 2024/25 Redevelopment Agency loan repayment of $2,804,653 in principal and $56,674 in interest. The Due from Other Governments balance of $14,375,798 represents the outstanding amount owed to the General Fund, consisting of $2,178,328 in principal and $12,197,470 in interest, which reflects 80% of the total loan repayments in accordance with the approved repayment schedule. Reserve/Fund Balance As of June 30, 2024 As of June 30, 2025 Change in Value Non-Spendable Prepaid Costs 170,577 36,870 (133,707) Land Held for Resale 5,403,652 5,403,652 - Notes and loans receivable - 5,865,124 5,865,124 Due from Other Governments 17,123,777 14,375,798 (2,747,979) Total Non-Spendable 22,698,006 25,681,444 2,983,438 Restricted Pension Trust 5,666,575 6,172,305 505,730 Committed Cash Flow Reserve 5,000,000 5,000,000 - Natural Disaster Reserve 15,000,000 15,000,000 - Economic Disaster 13,000,000 13,000,000 - Capital Replacement Reserve 12,000,000 12,000,000 - Total Committed 45,000,000 45,000,000 - Assigned Public Safety Fire Services 15,652,616 19,391,133 3,738,517 Measure G Sales Tax 32,985,374 29,623,592 (3,361,782) Capital Projects 21,666,520 31,778,242 10,111,722 Operational Carryovers 900,000 850,000 (50,000) Total Assigned 71,204,510 81,642,967 10,438,457 Unassigned 65,216,627 84,454,583 19,237,956 TOTAL FUND BALANCE 209,785,718 242,951,299 33,165,581 175 Non-spendable fund balances represent assets that are not available to fund ongoing operations, and therefore are not considered available resources for appropriation. Restricted reserves are limited to funds held in a Section 115 Pension Trust set aside to fund the City’s pension obligations. The trust balance resulted in an increase in total value to of $505,730 due to investment gains. Committed reserves remained unchanged at $45 million, reflecting full funding of the City’s four reserve categories in accordance with the adopted Reserve Policy. These reserves include Cash Flow ($5 million), Natural Disaster ($15 million), Economic Disaster ($13 million), and Capital Replacement ($12 million). All categories remain fully funded at the policy target levels. Assigned reserves increased by $10.4 million, primarily due to additional funding allocated for multi-year capital improvement projects. This increase was partially offset by a decrease in Measure G sales tax reserves, as funding was applied to support project expenditures. In addition, the Public Safety Fire Services reserve increased by $3.7 million, primarily due to higher Redevelopment Property Tax Trust Fund (RPTTF) distributions and increased property tax revenues resulting from higher assessed property valuations. Operational carryovers totaling $850,000 were also reclassified into the Assigned reserve category. Overall, the City’s reserve balances remain strong and in alignment with the adopted Reserve Policy. Changes during the fiscal year primarily reflect the timing of capital improvement project funding, continued investment in long-term infrastructure needs, and favorable revenue performance supporting public safety services. These reserves provide financial stability and ensure the City is well-positioned to address future economic conditions, emergencies, and capital priorities while maintaining essential services for the community. 176 MEASURE G SUMMARY The Financial Advisory Commission oversees and audits the use of Measure G sales tax revenues and prepares the annual Measure G Sales Tax Oversight Report. The summary below provides a preview of the revenues and expenditures to date. The Measure G reserve balance ended the FY at $29,623,592. The FY 2024/25 Year-End Budget Report presents the City Council and residents with a comprehensive overview of key financial variances, reinforcing the City’s commitment to fiscal responsibility and transparency. Questions regarding this report may be directed to the Finance Department by calling 760-777-7055 or by email at finance@laquintaca.gov. 177 2023/24 Actuals 2024/25 Original Budget 2024/25 Final Budget 2024/25 Actuals 101 - GENERAL FUND 310 - Tax Revenues 3,517,075 3,400,000 3,850,000 3,697,231101-0000-40310 Property Tax Revenue 5,867,985 5,300,000 6,380,000 6,306,684101-0000-40311 No-Low City Property Tax 3,296,679 3,050,000 3,800,000 3,690,166101-0000-40315 RPTTF Pass Through 12,170,477 12,000,000 12,000,000 12,236,228101-0000-41320 State Sales Tax 15,471,183 15,500,000 15,500,000 15,638,218101-0000-41326 Measure G Sales Tax 919,762 720,000 720,000 970,653101-0000-41327 Document Transfer Tax 9,280,952 9,370,000 9,370,000 9,482,823101-0000-41400 TOT - Hotels 5,921,487 5,500,000 5,775,000 6,014,109101-0000-41401 TOT - Short Term Vac. Rentals 107,075 100,000 100,000 108,460101-0000-41402 TOT - Bed and Breakfast 373,321 370,000 370,000 344,450101-0000-41416 TOT - Resort Fees 1,326,900 1,130,000 1,130,000 1,423,957101-0000-41505 Franchise Taxes - Burrtec 304,192 190,000 190,000 200,106101-0000-41508 Southern California Gas Franchise Fee 639,750 620,000 620,000 594,597101-0000-41509 Cable Television Franchise Fee 149,045 170,000 170,000 111,976101-0000-41510 Communications Franchise Fees 5,584,194 5,850,000 5,850,000 6,046,467101-0000-41800 Property Tax in Lieu of VLF 310 - Tax Revenues Totals:64,930,079 63,270,000 65,825,000 66,866,127 320 - Licenses & Permits 1,625 2,000 2,000 650101-0000-41411 STVR Inspection Fee 933,250 900,000 900,000 907,703101-0000-41415 STVR Registration Fee 344,147 355,000 355,000 391,328101-0000-41600 Business Licenses 51,446 60,000 60,000 51,315101-0000-41602 STVR Business Licenses 1,410 1,500 1,500 1,342101-0000-41610 Film Permits 502,000 335,000 420,000 437,336101-0000-42400 Building Permits 106,736 50,000 50,000 67,769101-0000-42401 Plumbing Permits 90,966 65,000 65,000 78,753101-0000-42402 Mechanical Permits 80,147 50,000 50,000 67,981101-0000-42403 Electrical Permits 234,912 160,000 160,000 190,347101-0000-42404 Miscellaneous Permits 5,520 5,000 5,000 6,060101-0000-42405 Garage Sale Permits 8,809 10,000 10,000 6,293101-0000-42408 Grading Permits 119,285 85,000 85,000 116,374101-0000-42420 Fire Plan Review Fee 53,776 100,000 100,000 20,573101-0000-42421 Fire Inspection Fee - New Construction 1,220 1,000 1,000 1,444101-0000-42430 Transportation Permits 20,061 10,000 10,000 22,920101-0000-42431 Conditional Use Permits 0 1,000 1,000 0101-0000-42433 Minor Use Permit 20,786 12,000 12,000 29,871101-0000-42434 Sign Permit 84,883 55,000 55,000 70,981101-0000-42435 Site Development Permit 11,270 10,000 10,000 21,178101-0000-42436 Final Landscaping Plans 9,049 6,000 6,000 9,069101-0000-42437 Development Agreement 7,490 3,000 3,000 16,721101-0000-42439 Temporary Use Permit 123,763 100,000 180,000 157,140101-0000-43632 Public Works Permits 8,062 10,000 10,000 9,197101-0000-43638 NPDES Inspections 320 - Licenses & Permits Totals:2,820,613 2,386,500 2,551,500 2,682,345 330 - Intergovernmental 0 0 0 5,707101-0000-41710 State Gov't Revenue 11,964,881 11,000,000 11,000,000 13,056,502101-0000-42500 Fire Service Credit 0 0 0 339,183101-0000-43100 FEMA 520,573 250,000 570,000 567,236101-0000-43633 CSA 152 Assessments 3,000 3,000 3,000 3,000101-0000-43650 Contributions from Other Agencies 330 - Intergovernmental Totals:12,488,454 11,253,000 11,573,000 13,971,627 340 - Charges for Services 25,280 11,000 11,000 8,704101-0000-42200 Leisure Enrichment 38,980 40,000 40,000 51,135101-0000-42210 Youth Sports 4,850 5,000 5,000 4,549101-0000-42211 Adult Sports 14,401 10,000 10,000 28,379101-0000-42212 Facility Rentals 350 5,000 5,000 510101-0000-42213 Special Events 30,784 15,000 15,000 49,082101-0000-42214 Wellness Center Leisure Enrichment 0 0 0 4,840101-0000-42215 Parking Lot/Open Space Use Fee 648 1,000 1,000 752101-0000-42216 Wellness Center Special Events 113,575 80,000 80,000 121,098101-0000-42218 Wellness Center Memberships 3,517,075 3,400,000 3,850,000 3,697,231 5,867,985 5,300,000 6,380,000 6,306,684 3,296,679 3,050,000 3,800,000 3,690,166 12,170,477 12,000,000 12,000,000 12,236,228 15,471,183 15,500,000 15,500,000 15,638,218 919,762 720,000 720,000 970,653 9,280,952 9,370,000 9,370,000 9,482,823 5,921,487 5,500,000 5,775,000 6,014,109 107,075 100,000 100,000 108,460 373,321 370,000 370,000 344,450 1,326,900 1,130,000 1,130,000 1,423,957 304,192 190,000 190,000 200,106 639,750 620,000 620,000 594,597 149,045 170,000 170,000 111,976 5,584,194 5,850,000 5,850,000 6,046,467 64,930,079 63,270,000 65,825,000 66,866,127 1,625 2,000 2,000 650 933,250 900,000 900,000 907,703 344,147 355,000 355,000 391,328 51,446 60,000 60,000 51,315 1,410 1,500 1,500 1,342 502,000 335,000 420,000 437,336 106,736 50,000 50,000 67,769 90,966 65,000 65,000 78,753 80,147 50,000 50,000 67,981 234,912 160,000 160,000 190,347 5,520 5,000 5,000 6,060 8,809 10,000 10,000 6,293 119,285 85,000 85,000 116,374 53,776 100,000 100,000 20,573 1,220 1,000 1,000 1,444 20,061 10,000 10,000 22,920 0 1,000 1,000 0 20,786 12,000 12,000 29,871 84,883 55,000 55,000 70,981 11,270 10,000 10,000 21,178 9,049 6,000 6,000 9,069 7,490 3,000 3,000 16,721 123,763 100,000 180,000 157,140 8,062 10,000 10,000 9,197 2,820,613 2,386,500 2,551,500 2,682,345 0 0 0 5,707 11,964,881 11,000,000 11,000,000 13,056,502 0 0 0 339,183 520,573 250,000 570,000 567,236 3,000 3,000 3,000 3,000 12,488,454 11,253,000 11,573,000 13,971,627 25,280 11,000 11,000 8,704 38,980 40,000 40,000 51,135 4,850 5,000 5,000 4,549 14,401 10,000 10,000 28,379 350 5,000 5,000 510 30,784 15,000 15,000 49,082 0 0 0 4,840 648 1,000 1,000 752 113,575 80,000 80,000 121,098 CITY OF LA QUINTA GENERAL FUND REVENUE DETAILS BY CATEGORY E;+IBIT A FY 2024/25 YEAR-END BUDGET 178 2023/24 Actuals 2024/25 Original Budget 2024/25 Final Budget 2024/25 Actuals 1,009 0 0 462101-0000-42300 Cash Over/Short 135 100 100 75101-0000-42303 NSF Charges 46,756 10,000 10,000 25,150101-0000-42412 Minor Adjustment, Plan Checks 23,788 20,000 40,000 47,335101-0000-42415 Tentative Tract Map 43,465 20,000 20,000 43,217101-0000-42416 Digitization/Records Management 3,686 2,500 2,500 2,806101-0000-42417 Modification by Applicant 2,000 1,000 1,000 3,066101-0000-42440 Appeals - Permits, Licenses, Projects, Bids 922 500 500 48101-0000-42441 Planning Compliance Review 13,851 11,000 11,000 15,788101-0000-42443 Zone Change 3,158 5,000 5,000 183101-0000-42445 Environmental Assessment 11,899 12,000 12,000 5,998101-0000-42446 General Plan Amendment 7,985 7,000 7,000 6,189101-0000-42447 Home Occupations 11,221 11,000 11,000 0101-0000-42448 Tentative Parcel Map 12,736 12,000 12,000 19,817101-0000-42451 Specific Plan 3,000 0 0 0101-0000-42456 Lot Exemption Fee 22,955 8,000 8,000 0101-0000-42460 Pre-Application Review 654,406 550,000 650,000 676,464101-0000-42600 Building Plan Check Fees 602 500 500 480101-0000-42610 SMIP Fees 484 600 600 547101-0000-42615 CBSC Administrative Fees 370,662 160,000 250,000 260,066101-0000-42810 Public Works Dev. Plan Check Fee 1,418 2,500 2,500 1,160101-0000-43631 CVMSHCP Admin Fee 29,416 28,000 28,000 29,999101-0000-43635 VGPS TBID Admin Fee 340 - Charges for Services Totals:1,494,422 1,028,700 1,238,700 1,407,901 350 - Fines, Forfeitures & Abatements 167,138 120,000 120,000 103,103101-0000-42700 Administrative Citations 7,628 5,500 5,500 4,162101-0000-42701 Lot Abatement 49,689 35,000 35,000 11,615101-0000-42702 Vehicle Abatement 52,059 65,000 65,000 64,049101-0000-42703 Vehicle Impound Fee 49,366 60,000 60,000 53,487101-0000-42705 Motor Vehicle Code Fines 12,861 15,000 15,000 17,480101-0000-42706 Parking Violations 704 1,500 1,500 471101-0000-42707 Misc Fines 8,165 9,000 9,000 8,451101-0000-42708 Graffiti Removal 46,053 25,000 50,000 74,486101-0000-42709 False Alarm Fees - Police 14,462 5,000 55,000 52,143101-0000-42710 False Alarm Fees - Fire 350 - Fines, Forfeitures & Abatements Totals:408,126 341,000 416,000 389,446 360 - Use of Money & Property 5,467,129 3,500,000 6,400,000 6,768,481101-0000-41900 Allocated Interest 1,689,908 0 0 2,694,670101-0000-41910 GASB 31 Interest 42,397 40,000 40,000 55,425101-0000-41930 Interest Revenue 134,402 150,000 150,000 139,997101-0000-42120 Lease Revenue 0 0 0 5,970101-0000-42302 Electric Vehicle Charging Station Fees 360 - Use of Money & Property Totals:7,333,835 3,690,000 6,590,000 9,664,543 370 - Miscellaneous 416,492 450,000 450,000 742,682101-0000-41410 Zoning Change Mitigation Fees 182,784 50,000 50,000 42,370101-0000-41504 AMR Compliance 135,146 125,000 125,000 139,079101-0000-41507 Burrtec Admin Cost Reimbursement 1,000 0 0 1,500101-0000-41920 Memorial Tree Revenue 912 5,000 5,000 3,142101-0000-42000 Insurance Recoveries 0 100 100 30101-0000-42140 Sales of Publications & Materials 54,882 25,000 275,000 274,250101-0000-42301 Miscellaneous Revenue 207,685 50,000 80,000 83,553101-0000-42305 Miscellaneous Reimbursements 72,468 40,000 40,000 49,359101-0000-43505 Credit Card Fee Revenue 2,227 0 0 0101-0000-45000 Sale of Other Assets 272,644 0 0 56,674101-0000-48500 Extraordinary Gain 370 - Miscellaneous Totals:1,346,240 745,100 1,025,100 1,392,640 1,009 0 0 462 135 100 100 75 46,756 10,000 10,000 25,150 23,788 20,000 40,000 47,335 43,465 20,000 20,000 43,217 3,686 2,500 2,500 2,806 2,000 1,000 1,000 3,066 922 500 500 48 13,851 11,000 11,000 15,788 3,158 5,000 5,000 183 11,899 12,000 12,000 5,998 7,985 7,000 7,000 6,189 11,221 11,000 11,000 0 12,736 12,000 12,000 19,817 3,000 0 0 0 22,955 8,000 8,000 0 654,406 550,000 650,000 676,464 602 500 500 480 484 600 600 547 370,662 160,000 250,000 260,066 1,418 2,500 2,500 1,160 29,416 28,000 28,000 29,999 1,494,422 1,028,700 1,238,700 1,407,901 167,138 120,000 120,000 103,103 7,628 5,500 5,500 4,162 49,689 35,000 35,000 11,615 52,059 65,000 65,000 64,049 49,366 60,000 60,000 53,487 12,861 15,000 15,000 17,480 704 1,500 1,500 471 8,165 9,000 9,000 8,451 46,053 25,000 50,000 74,486 14,462 5,000 55,000 52,143 408,126 341,000 416,000 389,446 5,467,129 3,500,000 6,400,000 6,768,481 1,689,908 0 0 2,694,670 42,397 40,000 40,000 55,425 134,402 150,000 150,000 139,997 0 0 0 5,970 7,333,835 3,690,000 6,590,000 9,664,543 416,492 450,000 450,000 742,682 182,784 50,000 50,000 42,370 135,146 125,000 125,000 139,079 1,000 0 0 1,500 912 5,000 5,000 3,142 0 100 100 30 54,882 25,000 275,000 274,250 207,685 50,000 80,000 83,553 72,468 40,000 40,000 49,359 2,227 0 0 0 272,644 0 0 56,674 1,346,240 745,100 1,025,100 1,392,640 CITY OF LA QUINTA GENERAL FUND REVENUE DETAILS BY CATEGORY FY 2024/25 YEAR-END BUDGET 179 2023/24 Actuals 2024/25 Original Budget 2024/25 Final Budget 2024/25 Actuals 380 - Transfers In 0 0 4,993,504 4,993,504101-0000-49500 Transfers In 380 - Transfers In Totals:0 0 4,993,504 4,993,504 101 - GENERAL FUND Totals:90,821,769 82,714,300 94,212,804 101,368,134 0 0 4,993,504 4,993,504 0 0 4,993,504 4,993,504 90,821,769 82,714,300 94,212,804 101,368,134 CITY OF LA QUINTA GENERAL FUND REVENUE DETAILS BY CATEGORY FY 2024/25 YEAR-END BUDGET Non-Cash Transactions Adjusted Operating Revenues (1,962,552) 88,859,217 (2,751,344) 98,616,790 180 2023/24 Actuals 2024/25 Original Budget 2024/25 Final Budget 2024/25 Actuals 1001 - City Council 318,006 346,400 346,400 320,906 Salaries and Benefits 271,614 295,900 295,900 279,025 Maintenance & Operations 46,392 50,500 50,500 41,881 1002 - City Manager 1,118,332 1,641,100 1,735,600 1,468,247 Salaries and Benefits 736,079 903,400 980,700 1,020,551 Contract Services 108,157 170,000 169,700 112,347 Maintenance & Operations 113,005 118,500 118,800 118,549 Other Expenses 11,890 300,000 300,000 50,400 Internal Service Charges 149,200 149,200 166,400 166,400 1003 - City Attorney 664,255 800,000 800,000 1,519,880 Contract Services 664,255 800,000 800,000 1,519,880 1004 - Human Resources 498,619 745,900 858,600 733,231 Salaries and Benefits 280,210 459,800 458,700 447,514 Contract Services 79,857 79,500 190,200 137,546 Maintenance & Operations 51,952 120,000 120,000 58,471 Internal Service Charges 86,600 86,600 89,700 89,700 1005 - City Clerk 1,033,021 1,406,570 1,412,570 1,181,635 Salaries and Benefits 711,986 804,670 804,670 722,391 Contract Services 126,996 390,000 390,000 259,340 Maintenance & Operations 23,640 41,500 41,500 23,504 Internal Service Charges 170,400 170,400 176,400 176,400 1006 - Finance 1,783,589 2,103,500 2,113,700 2,133,785 Salaries and Benefits 1,292,675 1,494,500 1,494,500 1,347,035 Contract Services 177,881 281,500 281,500 207,823 Maintenance & Operations 27,233 41,700 41,700 22,954 Other Expenses 0 0 0 259,973 Internal Service Charges 285,800 285,800 296,000 296,000 1007 - Central Services 17,940,877 23,935,600 46,877,252 13,864,403 Salaries and Benefits 1,195,793 1,410,000 5,172,100 4,385,891 Maintenance & Operations 98,060 155,700 505,700 48,466 Capital Expenses 2,880 20,000 20,000 0 Internal Service Charges 875,900 875,900 890,945 890,945 Transfers Out 15,768,244 21,474,000 40,288,508 8,539,101 2001 - Police 16,251,852 19,643,300 19,795,800 17,369,902 Contract Services 15,922,569 19,459,000 19,462,000 17,060,670 Maintenance & Operations 6,625 15,000 12,000 9,129 Repair & Maintenance 171,834 40,000 190,000 180,589 Utilities 17,089 26,000 26,000 17,119 Capital Expenses 65,435 35,000 35,000 31,595 Internal Service Charges 68,300 68,300 70,800 70,800 2002 - Fire 9,021,870 10,572,110 11,010,230 9,650,654 Salaries and Benefits 156,023 262,510 279,910 263,793 Contract Services 8,511,221 9,643,000 9,647,000 9,008,441 Maintenance & Operations 81,436 233,000 229,000 82,805 Other Expenses 1,347 0 0 0 Utilities 90,423 139,000 139,000 80,633 Capital Expenses 21,820 135,000 535,000 34,662 Internal Service Charges 159,600 159,600 180,320 180,320 3001 - Community Services Administration 979,036 716,400 616,800 452,842 Salaries and Benefits 433,685 298,800 284,600 185,864 Contract Services 72,122 92,000 92,000 71,900 Maintenance & Operations 351,929 204,300 204,300 159,178 Internal Service Charges 121,300 121,300 35,900 35,900 3002 - Wellness Center Operations 863,041 683,600 680,300 638,353 Salaries and Benefits 546,845 439,500 461,800 476,633 318,006 346,400 346,400 320,906 271,614 295,900 295,900 279,025 46,392 50,500 50,500 41,881 1,118,332 1,641,100 1,735,600 1,468,247 736,079 903,400 980,700 1,020,551 108,157 170,000 169,700 112,347 113,005 118,500 118,800 118,549 11,890 300,000 300,000 50,400 149,200 149,200 166,400 166,400 664,255 800,000 800,000 1,519,880 664,255 800,000 800,000 1,519,880 498,619 745,900 858,600 733,231 280,210 459,800 458,700 447,514 79,857 79,500 190,200 137,546 51,952 120,000 120,000 58,471 86,600 86,600 89,700 89,700 1,033,021 1,406,570 1,412,570 1,181,635 711,986 804,670 804,670 722,391 126,996 390,000 390,000 259,340 23,640 41,500 41,500 23,504 170,400 170,400 176,400 176,400 1,783,589 2,103,500 2,113,700 2,133,785 1,292,675 1,494,500 1,494,500 1,347,035 177,881 281,500 281,500 207,823 27,233 41,700 41,700 22,954 0 0 0 259,973 285,800 285,800 296,000 296,000 17,940,877 23,935,600 46,877,252 13,864,403 1,195,793 1,410,000 5,172,100 4,385,891 98,060 155,700 505,700 48,466 2,880 20,000 20,000 0 875,900 875,900 890,945 890,945 15,768,244 21,474,000 40,288,508 8,539,101 16,251,852 19,643,300 19,795,800 17,369,902 15,922,569 19,459,000 19,462,000 17,060,670 6,625 15,000 12,000 9,129 171,834 40,000 190,000 180,589 17,089 26,000 26,000 17,119 65,435 35,000 35,000 31,595 68,300 68,300 70,800 70,800 9,021,870 10,572,110 11,010,230 9,650,654 156,023 262,510 279,910 263,793 8,511,221 9,643,000 9,647,000 9,008,441 81,436 233,000 229,000 82,805 1,347 0 0 0 90,423 139,000 139,000 80,633 21,820 135,000 535,000 34,662 159,600 159,600 180,320 180,320 979,036 716,400 616,800 452,842 433,685 298,800 284,600 185,864 72,122 92,000 92,000 71,900 351,929 204,300 204,300 159,178 121,300 121,300 35,900 35,900 863,041 683,600 680,300 638,353 546,845 439,500 461,800 476,633 CITY OF LA QUINTA GENERAL FUND EXPENSE SUMMARY BY DEPARTMENT EXHIBIT B FY 2024/25 YEAR-END BUDGET REPORT 181 2023/24 Actuals 2024/25 Original Budget 2024/25 Final Budget 2024/25 Actuals Contract Services 41,798 36,000 46,000 41,238 Maintenance & Operations 36,267 65,400 55,400 28,382 Capital Expenses 120,432 25,000 25,000 0 Internal Service Charges 117,700 117,700 92,100 92,100 3003 - Recreation Programs & Special Events 1,233,529 1,956,000 2,069,500 1,549,694 Salaries and Benefits 274,114 598,600 590,700 439,430 Contract Services 541,334 665,000 665,000 576,745 Maintenance & Operations 369,681 644,000 644,000 363,719 Internal Service Charges 48,400 48,400 169,800 169,800 3005 - Parks Maintenance 4,113,554 4,538,300 5,598,500 5,448,040 Salaries and Benefits 466,872 485,050 485,050 491,711 Contract Services 808,214 1,089,000 1,089,000 1,121,783 Maintenance & Operations 1,053,590 1,165,300 1,165,300 1,026,247 Utilities 528,379 542,450 542,450 491,599 Internal Service Charges 1,256,500 1,256,500 2,316,700 2,316,700 3007 - Marketing & Community Relations 1,850,681 1,932,600 1,986,500 1,825,063 Salaries and Benefits 268,528 301,300 305,100 311,655 Contract Services 519,914 495,000 506,500 450,407 Maintenance & Operations 1,027,539 1,101,600 1,115,100 1,003,201 Internal Service Charges 34,700 34,700 59,800 59,800 3008 - Public Buildings 1,670,209 1,875,750 1,885,400 1,710,962 Salaries and Benefits 624,006 726,050 726,050 691,717 Contract Services 222,069 279,500 279,500 224,435 Maintenance & Operations 224,060 365,700 280,000 198,781 Utilities 298,573 203,000 288,700 284,879 Internal Service Charges 301,500 301,500 311,150 311,150 6001 - Design & Development Administration 709,446 826,800 822,150 730,530 Salaries and Benefits 366,628 472,400 490,350 467,197 Contract Services 150,354 160,000 160,000 98,082 Maintenance & Operations 8,764 10,700 10,700 4,151 Internal Service Charges 183,700 183,700 161,100 161,100 6002 - Planning 560,046 856,900 894,700 772,677 Salaries and Benefits 405,712 590,200 595,000 598,107 Contract Services 49,563 150,000 150,000 35,052 Maintenance & Operations 18,171 30,100 30,100 19,917 Internal Service Charges 86,600 86,600 119,600 119,600 6003 - Building 1,521,525 1,513,600 1,524,800 1,467,698 Salaries and Benefits 815,171 863,800 863,800 895,780 Contract Services 411,429 350,000 350,000 265,173 Maintenance & Operations 5,225 10,100 10,100 5,846 Internal Service Charges 289,700 289,700 300,900 300,900 6004 - Code Compliance/Animal Control 1,546,678 1,821,340 1,801,240 1,494,701 Salaries and Benefits 748,874 868,040 863,240 670,230 Contract Services 408,812 540,500 527,500 458,518 Maintenance & Operations 8,392 32,200 45,200 35,152 Internal Service Charges 380,600 380,600 365,300 330,800 6005 - Public Safety Administration 123,967 269,890 269,440 320,427 Salaries and Benefits 62,451 211,890 224,540 246,695 Maintenance & Operations 9,516 6,000 6,000 332 Internal Service Charges 52,000 52,000 38,900 73,400 6006 - The Hub 1,246,383 1,499,875 1,509,175 1,338,452 Salaries and Benefits 940,723 1,199,925 1,199,925 1,059,263 Contract Services 40,373 25,000 25,000 0 Maintenance & Operations 5,488 15,150 15,150 10,089 41,798 36,000 46,000 41,238 36,267 65,400 55,400 28,382 120,432 25,000 25,000 0 117,700 117,700 92,100 92,100 1,233,529 1,956,000 2,069,500 1,549,694 274,114 598,600 590,700 439,430 541,334 665,000 665,000 576,745 369,681 644,000 644,000 363,719 48,400 48,400 169,800 169,800 4,113,554 4,538,300 5,598,500 5,448,040 466,872 485,050 485,050 491,711 808,214 1,089,000 1,089,000 1,121,783 1,053,590 1,165,300 1,165,300 1,026,247 528,379 542,450 542,450 491,599 1,256,500 1,256,500 2,316,700 2,316,700 1,850,681 1,932,600 1,986,500 1,825,063 268,528 301,300 305,100 311,655 519,914 495,000 506,500 450,407 1,027,539 1,101,600 1,115,100 1,003,201 34,700 34,700 59,800 59,800 1,670,209 1,875,750 1,885,400 1,710,962 624,006 726,050 726,050 691,717 222,069 279,500 279,500 224,435 224,060 365,700 280,000 198,781 298,573 203,000 288,700 284,879 301,500 301,500 311,150 311,150 709,446 826,800 822,150 730,530 366,628 472,400 490,350 467,197 150,354 160,000 160,000 98,082 8,764 10,700 10,700 4,151 183,700 183,700 161,100 161,100 560,046 856,900 894,700 772,677 405,712 590,200 595,000 598,107 49,563 150,000 150,000 35,052 18,171 30,100 30,100 19,917 86,600 86,600 119,600 119,600 1,521,525 1,513,600 1,524,800 1,467,698 815,171 863,800 863,800 895,780 411,429 350,000 350,000 265,173 5,225 10,100 10,100 5,846 289,700 289,700 300,900 300,900 1,546,678 1,821,340 1,801,240 1,494,701 748,874 868,040 863,240 670,230 408,812 540,500 527,500 458,518 8,392 32,200 45,200 35,152 380,600 380,600 365,300 330,800 123,967 269,890 269,440 320,427 62,451 211,890 224,540 246,695 9,516 6,000 6,000 332 52,000 52,000 38,900 73,400 1,246,383 1,499,875 1,509,175 1,338,452 940,723 1,199,925 1,199,925 1,059,263 40,373 25,000 25,000 0 5,488 15,150 15,150 10,089 CITY OF LA QUINTA GENERAL FUND EXPENSE SUMMARY BY DEPARTMENT FY 2024/25 YEAR-END BUDGET REPORT 182 2023/24 Actuals 2024/25 Original Budget 2024/25 Final Budget 2024/25 Actuals Internal Service Charges 259,800 259,800 269,100 269,100 7001 - Public Works Administration 686,074 835,797 839,897 615,280 Salaries and Benefits 564,223 608,497 608,497 490,737 Contract Services 0 100,000 100,000 0 Maintenance & Operations 6,352 11,800 11,800 4,944 Internal Service Charges 115,500 115,500 119,600 119,600 7002 - Public Works Development Services 429,434 539,383 542,883 410,961 Salaries and Benefits 169,992 191,683 191,683 182,394 Contract Services 170,306 255,000 255,000 135,685 Maintenance & Operations 1,936 5,500 5,500 2,182 Internal Service Charges 87,200 87,200 90,700 90,700 7003 - Streets- Traffic 411,774 1,036,550 1,189,650 786,450 Salaries and Benefits 163,676 256,900 256,900 187,392 Contract Services 107,074 610,000 626,000 304,244 Maintenance & Operations 53,580 78,050 104,050 95,601 Other Expenses 0 5,000 5,000 1,515 Repair & Maintenance 0 0 108,000 107,999 Utilities 845 0 0 0 Internal Service Charges 86,600 86,600 89,700 89,700 7006 - Engineering Services 786,850 1,234,400 1,237,500 903,505 Salaries and Benefits 345,257 386,300 386,300 392,468 Contract Services 192,626 550,000 548,500 277,868 Maintenance & Operations 10,001 11,500 13,000 10,461 Other Expenses 152,366 200,000 200,000 133,008 Internal Service Charges 86,600 86,600 89,700 89,700 GENERAL FUND EXPENSES 67,362,648 83,331,665 108,418,588 68,708,278 259,800 259,800 269,100 269,100 686,074 835,797 839,897 615,280 564,223 608,497 608,497 490,737 0 100,000 100,000 0 6,352 11,800 11,800 4,944 115,500 115,500 119,600 119,600 429,434 539,383 542,883 410,961 169,992 191,683 191,683 182,394 170,306 255,000 255,000 135,685 1,936 5,500 5,500 2,182 87,200 87,200 90,700 90,700 411,774 1,036,550 1,189,650 786,450 163,676 256,900 256,900 187,392 107,074 610,000 626,000 304,244 53,580 78,050 104,050 95,601 0 5,000 5,000 1,515 0 0 108,000 107,999 845 0 0 0 86,600 86,600 89,700 89,700 786,850 1,234,400 1,237,500 903,505 345,257 386,300 386,300 392,468 192,626 550,000 548,500 277,868 10,001 11,500 13,000 10,461 152,366 200,000 200,000 133,008 86,600 86,600 89,700 89,700 67,362,648 83,331,665 108,418,588 68,708,278 CITY OF LA QUINTA GENERAL FUND EXPENSE SUMMARY BY DEPARTMENT FY 2024/25 YEAR-END BUDGET REPORT 183 Project #Project Name General Fund Measure G TOTAL 111205 Dune Palms Bridge Improvements (652,440) -(652,440) 2425DRA Citywide Drainage Enhancements 1,618,127 -1,618,127 2425ADA ADA Improvements 42,150 -42,150 2425PMP Pavement Management 752,553 -752,553 2425STI Sidewalk Improvements 176,646 -176,646 201603 Landscape Renovations 426,073 1,629,489 2,055,562 201606 Civic Center Campus Lake 486,163 -486,163 201805 Corporate Yard Admin. Offices & Crew Quarters -1,059,937 1,059,937 201901 Village Art Plaza Promenade & Cultural Campus -1,308,208 1,308,208 201905 Highway 111 Corridor -3,021,418 3,021,418 201908 Citywide Catch Basin Modifications 250,000 -250,000 202102 Fritz Burns Park Improvements 1,000,000 5,929,346 6,929,346 202202 City Hall Capacity Improvements 550,000 -550,000 202204 Sports Complex Lighting Replacement -29,176 29,176 202206 Village Utilities Undergrounding Project 9,249 (17,515)(8,266) 202207 Highway 111 at Jefferson Street Rehabilitation (13,711)-(13,711) 202209 ADA Transition Plan Update -150,000 150,000 202211 Village Parking Lot -500,000 500,000 202212 Phase II Camera System -1,648,326 1,648,326 202213 Smart Infrastructure Improvements Feasibility Study -248,068 248,068 202225 Highway 111 Rehabilitation Project -2,950,875 2,950,875 202230 Cove Trails Parking Lot Improvements (13,752)-(13,752) 202304 Highway 111 Event Site -500,000 500,000 202308 X Park Building ADA Improvements 338,868 -338,868 202309 Washington St Connector to Art & Music Line -1,122,587 1,122,587 202310 SilverRock Dust Control improvements 1,000,000 -1,000,000 202317 Eisenhower Drive at Avenue 50 Drainage (243)-(243) 202322 Eisenhower Retention Basin Slope Repair 45,500 -45,500 202333 Bridge Preventative Maintenance Program 159,857 -159,857 202335 Miscellaneous Retention Basin Improvements 92,365 -92,365 202404 City Hall Drainage Improvements 972,359 -972,359 202405 Citywide Miscellaneous ADA Improvements 37,953 -37,953 202406 Citywide Miscellaneous Concrete Improvements 994,661 -994,661 202407 Citywide Dog Park Improvements 998,220 500,000 1,498,220 202408 Village Parking Lot Utility Undergrounding 500,000 -500,000 202409 Bear Creek Trailhead Restrooms -748,635 748,635 202412 FY 24/25 PMP- Fred Waring Drive- Misc. Locations (20,519)-(20,519) 202413 SilverRock Temporary Golf Cart Path Paving 32,898 -32,898 202415 Citywide Irrigation Upgrade -(64,061) (64,061) 202418 Fritz Burns Park Lighted Crosswalk 700,000 -700,000 202419 Desert Club Dr/Avenida Bermundas Drainage (48)-(48) 202420 Eisenhower Drive Road Diet (4,166)-(4,166) 999902 Jefferson Interchange 34,987 -34,987 TOTAL 10,513,753$ 21,264,489$ 31,778,242$ 33%67%100% (Negative balances represent temporary funding until grants are received) GENERAL FUND Capital Improvement Project Carryovers from 2024/25 to 2025/26 CAPITAL IMPROVEMENT PROJECT CARRYOVERS Estimated Capital Improvement Project (CIP) carryovers from FY 2024/25 to FY 2025/26 were originally projected during the budget development process based on anticipated project timelines. Following review of project balances and outstanding commitments, amended carryovers have been identified for projects that were not completed in FY 2024/25 and require remaining budget authority to continue into FY 2025/26. EXHIBIT C 184 Description/Program Account Number Account Name Estimated Revised Fiscal analysis for citywide projects 101-1002-60510 Contingency for Operations 200,000$ -$ Marketing efforts to attract group business to hotels 101-1007-60536 TOT Resort Rebate Program 450,000$ 450,000$ Fire Ladder Truck purchase 101-2002-80101 Machinery & Equipment 400,000$ 400,000$ $ 1,050,000 $ 850,000 HVAC replacement 202-3004-60667 HVAC $- $ 75,000 Tree maintenance 215-7004-60673 Tree Maintenance/Palm Trees $ 500,000 $ 500,000 Dune Palms Mobile Estates improvements 241-9104-72110 Building/Site Improvements $ 430,000 $ 417,700 Homelessness assistance 243-0000-60532 Homelessness Assistance $ 49,200 $ 48,400 Vehicle upgrades 501-0000-60675 Parts, Accessories, and Upfits $ 75,000 $- Purchase of two City vehicles 501-0000-71031 Vehicles, Purchased $-$ 100,000 City facility improvements 501-0000-71103 City Bldg Repl/Repair $ 150,000 $ 150,000 IT citywide upgrades 502-0000-80100 Machinery & Equipment $ 200,000 $ 200,000 Aging inventory upgrades 502-0000-80103 Computers $ 100,000 $ 100,000 Park supplies and upgrades 503-0000-71060 Parks $ 500,000 $ 500,000 $ 2,004,200 $ 2,091,100 $ 3,054,200 $ 2,941,100 Revised Continuing Appropriations/Carryovers from 2024/25 to 2025/26 GENERAL FUND CARRYOVERS SPECIAL FUNDS CARRYOVERS TOTAL CARRYOVERS FOR ALL FUNDS NOTE: In June 2025 when the budget is adopted, all carryovers are estimates based on projected invoices to end fiscal year 2024/25. Upon completion of the final audit, Finance verifies account balances and makes additional carryover recommendations based on current budgetary needs. In no event shall a carryover exceed the revised per account amount above. AMENDED CARRYOVERS Estimated carryovers from the 2024/25 to 2025/26 budget were estimated based on projected invoices in the Spring of 2025. Upon completion of the final audit, Finance verifies account balances and carryovers and amended carryovers will be added to the 2025/26 budget. EXHIBIT D 185 186 City of La Quinta CITY COUNCIL MEETING: March 17, 2026 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE FISCAL YEAR 2025/26 MID-YEAR BUDGET REPORT, APPROVE THE RECOMMENDED BUDGET ADJUSTMENTS, AND ADOPT RESOLUTION TO ADD ENGINEERING SPECIALIST POSITION RECOMMENDATION A. Receive and file fiscal year 2025/26 Mid-Year Budget Report and approve the recommended budget adjustments. B. Adopt a resolution to update the Classification and Salary/Plan Schedule for fiscal year 2025/26 to add an Engineering Specialist position. EXECUTIVE SUMMARY The fiscal year 2025/26 Mid-Year Budget Report (Attachment 1) provides an update of the City’s fiscal activities from July 2025 to December 2025. The Mid-Year Budget Report includes revenue and expenditure adjustments within the General Fund and Disaster Recovery Fund, and addition of one new position to support operational needs. This report will be presented to the Financial Advisory Commission on April 8, 2026. FISCAL IMPACT Staff recommended adjustments are: BACKGROUND AND ANALYSIS Throughout the fiscal year, each department monitors their budget and proposes adjustments to reflect current conditions and operational needs. These requests undergo review by the City Manager and department directors before final recommendations are included in the Budget Report. Funds without adjustments have been excluded. Fund # Fund Name Revenue Expenses 101 General Fund 4,435,000$ 60,000$ 105 Disaster Recovery 4,993,504 -$ TOTAL ADJUSTMENTS 9,428,504$ 60,000$ BUSINESS SESSION ITEM NO. 2 187 ALTERNATIVES Council could modify or request additional information regarding the requested budget adjustments. Prepared by: Claudia Martinez, Finance Director/City Treasurer Approved by: Jon McMillen, City Manager Attachment: 1. 2025/26 Mid-Year Budget Report 188 RESOLUTION NO. 2026 – XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING A REVISED CLASSIFICATION PLAN AND SALARY PLAN/SCHEDULE ADDING AN ENGINEERING SPECIALIST CLASSIFICATION IN FISCAL YEAR 2025/26 WHEREAS, pursuant to the City of La Quinta’s (City) Personnel Policy the City’s Classification Plan and Salary Plan/Schedule and amendments thereof must be approved by the City Council and adopted by resolution; and WHEREAS, on June 17, 2025, the City Council adopted Resolution Nos. 2025- 015 and 2025-016, approving the current Fiscal Year 2025/26 Classification Plan and Salary/Plan Schedule; and WHEREAS, the City desires to add an Engineering Specialist classification/position to align staffing resources with operational needs in the Public Works/Engineering Department, requiring revisions to the City’s Classification and Salary Plan/Schedule. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: SECTION 1. The City Council hereby approves the revised Classification Plan and Salary Plan/Schedule adding an Engineering Specialist classification/position to the authorized positions for fiscal year 2025/26, attached hereto as Exhibits A and B, respectively, and incorporated herein by this reference. SECTION 2. This Resolution shall become effective upon adoption and shall supersede Resolution Nos. 2025-015 and 2025-016, together with any other resolutions relating to the City’s Classification Plan and Salary/Plan Schedule. PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City Council held on this 17th day of March 2026, by the following vote: AYES: NOES: ABSENT: ABSTAIN: 189 Resolution No. 2026 – xxx FY 2025/26 Classification and Salary Plan/Schedule Revision Adopted: March 17, 2026 Page 2 of 2 ___________________________ LINDA EVANS, Mayor City of La Quinta, California ATTEST: ___________________________ MONIKA RADEVA, City Clerk City of La Quinta, California APPROVED AS TO FORM: ___________________________ WILLIAM H. IHRKE, City Attorney City of La Quinta, California 190 CITY OF LA QUINTA 2025/2026 CLASSIFICATION PLAN EFFECTIVE JULY 1, 2025 Administrative Administrative Assistant Administrative Assistant A12 Administrative Technician Administrative Technician B21/B22 Executive Specialist Executive Specialist B25/B32 Building Building Inspector Apprentice Building Inspector Apprentice B22 Building Inspector Building Inspector B23 Senior Building Inspector Senior Building Inspector B24/B31 Plans Examiner Plans Examiner B25/B32 Deputy Building Official Deputy Building Official C42 Centralized Services Permit Technician Apprentice Permit Technician Apprentice B21 Permit Technician Permit Technician B22 Senior Permit Technician Senior Permit Technician B23 City Clerk Records Technician Apprentice Records Technician Apprentice B21 Records Technician Records Technician B22 Records Coordinator Records Coordinator B25/B32 Deputy City Clerk Deputy City Clerk B25/B32 Code Code Compliance Officer Apprentice Code Compliance Officer Apprentice B21 Code Compliance Officer Code Compliance Officer B22 Senior Code Compliance Officer Senior Code Compliance Officer B23 Animal Control/Code Compliance Supervisor Animal Control/Code Compliance Supervisor C42 Community Services Recreation Leader Recreation Leader A11 Senior Recreation Leader Senior Recreation Leader A12 Community Services Specialist Community Services Specialist B23 Senior Community Services Specialist Senior Community Services Specialist B24 Data Administration Data Reporting Specialist Data Reporting Specialist B24/B32 Engineering Construction Inspector Apprentice Construction Inspector Apprentice B22 Construction Inspector Construction Inspector B23 Engineering Specialist Engineering Specialist B24 Assistant Construction Manager Assistant Construction Manager C43 Associate Engineer Associate Engineer C44/C51 Senior Civil Engineer/Managing Engineer Senior Civil Engineer/Managing Engineer D63 Finance Finance Technician Apprentice Finance Technician Apprentice B21 Finance Technician Finance Technician B22 Senior Finance Technician Senior Finance Technician B23 Junior Accountant Junior Accountant B24 Accountant Accountant B25/B32 Senior Accountant Senior Accountant C42 Human Resources Human Resources Technician Apprentice Human Resources Technician Apprentice B21 Human Resources Technician Human Resources Technician B22 Maintenance & Operations Maintenance & Operations Worker Maintenance & Operations Worker A12 Senior Maintenance & Operations Worker Senior Maintenance & Operations Worker A13 Maintenance & Operations Technician Maintenance & Operations Technician B23 Maintenance & Operations Coordinator Maintenance & Operations Coordinator B24/B31 Maintenance & Operations Crew Leader Maintenance & Operations Crew Leader B24/B31 Maintenance & Operations Superintendent Maintenance & Operations Superintendent C43 Management Manager Building Official D61 Manager Finance Manager D61 Manager Hub Manager D61 Manager Marketing Manager D61 Manager Planning Manager D61 Manager Technology Manager D61 Deputy Director Community Services Deputy Director D63 Deputy Director Maintenance & Operations Deputy Director D63 Deputy Director Human Resources Deputy Director D63 Deputy Director Public Safety Deputy Director D63 CLASSIFICATION SERIES CLASSIFICATION SPECIFICATION AUTHORIZED WORKING TITLE RATING 1 RESOLUTION NO. 2026-0XX EXHIBIT A Adopted: March 17, 2026 191 CITY OF LA QUINTA 2025/2026 CLASSIFICATION PLAN EFFECTIVE JULY 1, 2025 Management (continued) Director City Clerk E82 Director Design & Development Director E82 Director Director (Business Unit/Housing Development)E82 Director Finance Director/Treasurer E82 Director Public Works Director/City Engineer E82 City Manager City Manager F101* Management Administration Management Specialist Management Specialist B25 Management Analyst Apprentice Management Analyst Apprentice B25 Management Analyst Management Analyst C42 Senior Management Analyst Senior Management Analyst C43 Principal Management Analyst Principal Management Analyst C44/C51 Marketing/Communications Marketing & Communications Specialist Apprentice Marketing & Communications Specialist Apprentice B23 Marketing & Communications Specialist Marketing & Communications Specialist B24/B31 Planning Assistant Planner Apprentice Assistant Planner Apprentice B24 Assistant Planner Assistant Planner B25 Associate Planner Associate Planner C42 Senior Planner Senior Planner C44/C51 Traffic Traffic Signal Technician Apprentice Traffic Signal Technician Apprentice B21 Traffic Signal Technician Traffic Signal Technician B22 * City Manager salary is determined by City Council contract CLASSIFICATION SERIES CLASSIFICATION SPECIFICATION AUTHORIZED WORKING TITLE RATING 2 192 WORKING TITLE DBM STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 A11 $ 44,734.92 $ 47,323.15 $ 49,911.39 $ 52,499.62 $ 55,087.86 $ 57,676.09 $ 60,264.33 $ 62,852.56 Administrative Assistant Maintenance & Operations Worker A12 $ 49,217.90 $ 52,065.51 $ 54,913.12 $ 57,760.72 $ 60,608.33 $ 63,455.94 $ 66,303.54 $ 69,151.15 Senior Maintenance & Operations Worker A13 $ 53,700.88 $ 56,807.86 $ 59,914.84 $ 63,021.82 $ 66,128.80 $ 69,235.78 $ 72,342.76 $ 75,449.74 Administrative Technician Code Compliance Officer Apprentice Finance Technician Apprentice Human Resources Technician Apprentice Permit Technician Apprentice Records Technician Apprentice Traffic Signal Technician Apprentice B21 $ 58,197.33 $ 61,564.46 $ 64,931.59 $ 68,298.72 $ 71,665.85 $ 75,032.98 $ 78,400.11 $ 81,767.24 Administrative Technician Building Inspector Apprentice Code Compliance Officer Construction Inspector Apprentice Finance Technician Human Resources Technician Permit Technician Records Technician Traffic Signal Technician B22 $ 62,680.31 $ 66,306.81 $ 69,933.32 $ 73,559.82 $ 77,186.32 $ 80,812.83 $ 84,439.33 $ 88,065.83 Building Inspector Community Services Specialist Construction Inspector Maintenance & Operations Technician Marketing & Communications Specialist Apprentice Senior Code Compliance Officer Senior Finance Technician Senior Permit Technician B23 $ 67,163.30 $ 71,049.18 $ 74,935.06 $ 78,820.93 $ 82,706.81 $ 86,592.69 $ 90,478.56 $ 94,364.44 Assistant Planner Apprentice Data Reporting Specialist Engineering Specialist Junior Accountant Maintenance & Operations Coordinator Maintenance & Operations Crew Leader Marketing & Communications Specialist Senior Building Inspector Senior Community Services Specialist B24 $ 73,343.11 $ 77,586.53 $ 81,829.95 $ 86,073.37 $ 90,316.80 $ 94,560.22 $ 98,803.64 $ 103,047.06 Accountant Assistant Planner Deputy City Clerk Executive Specialist Plans Examiner Management Analyst Apprentice Management Specialist Records Coordinator B25 $ 80,947.60 $ 85,630.99 $ 90,314.39 $ 94,997.79 $ 99,681.18 $ 104,364.58 $ 109,047.98 $ 113,731.37 B31 $ 73,343.11 $ 77,586.53 $ 81,829.95 $ 86,073.37 $ 90,316.80 $ 94,560.22 $ 98,803.64 $ 103,047.06 B32 $ 80,947.60 $ 85,630.99 $ 90,314.39 $ 94,997.79 $ 99,681.18 $ 104,364.58 $ 109,047.98 $ 113,731.37 WORKING TITLE DBM STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 STEP 9 STEP 10 Associate Planner Animal Control/Code Compliance Supervisor Deputy Building Official Management Analyst Senior Accountant C42 $ 87,465.47 $ 92,373.25 $ 97,281.04 $ 102,188.82 $ 107,096.61 $ 112,004.39 $ 116,912.18 $ 121,819.96 $ 126,727.74 $ 131,635.53 Assistant Construction Manager Maintenance & Operations Superintendent Senior Management Analyst C43 $ 92,261.93 $ 97,438.85 $ 102,615.77 $ 107,792.69 $ 112,969.61 $ 118,146.53 $ 123,323.45 $ 128,500.37 $ 133,677.29 $ 138,854.21 Associate Engineer Principal Management Analyst Senior Planner C44 $ 98,268.33 $ 103,782.28 $ 109,296.23 $ 114,810.17 $ 120,324.12 $ 125,838.06 $ 131,352.01 $ 136,865.95 $ 142,379.90 $ 147,893.84 Building Official Finance Manager Hub Manager Marketing Manager Planning Manager Technology Manager D61 $ 111,476.65 $ 117,731.73 $ 123,986.81 $ 130,241.89 $ 136,496.97 $ 142,752.05 $ 149,007.13 $ 155,262.20 $ 161,517.28 $ 167,772.36 Community Services Deputy Director Human Resources Deputy Director Maintenance & Operations Deputy Director Public Safety Deputy Director Senior Civil Engineer D63 $ 122,903.02 $ 129,799.24 $ 136,695.47 $ 143,591.69 $ 150,487.92 $ 157,384.14 $ 164,280.37 $ 171,176.59 $ 178,072.82 $ 184,969.04 City Clerk Design & Development Director Director (Business Unit/Housing Development) Finance Director/City Treasurer Public Works Director/City Engineer E82 $ 148,041.42 $ 156,348.18 $ 164,654.95 $ 172,961.72 $ 181,268.49 $ 189,575.26 $ 197,882.03 $ 206,188.79 $ 214,495.56 $ 222,802.33 City Manager F101* $ 222,802.33 $ 232,490.96 $ 242,179.59 $ 251,868.22 $ 261,556.85 $ 271,245.48 $ 280,934.11 $ 290,622.74 $ 300,311.37 $ 310,000.00 Recreation Leader A11 $ 21.51 $ 22.75 $ 24.00 $ 25.24 $ 26.48 $ 27.73 $ 28.97 $ 30.22 Senior Recreation Leader A12 $ 23.66 $ 25.03 $ 26.40 $ 27.77 $ 29.14 $ 30.51 $ 31.88 $ 33.25 Elected Official Positions (per La Quinta Municipal Code Section 2.04.050) Mayor Council Members City Council Approval Effective Date 3/17/2026 3/17/2026 6/17/2025 7/1/2025 $ 2,300.00 PART-TIME EMPLOYEES (HOURLY) FULL-TIME EMPLOYEES (ANNUAL) FULL-TIME EMPLOYEES (ANNUAL) Monthly $ 2,800.00 RESOLUTION NO. 2026-0XX EXHIBIT B Adopted: March 17, 2026 193 Fiscal Year 2025/26 Mid-Year Budget Report SUMMARY The annual budget is a flexible management tool that allows the City to respond to changing operational needs and updated financial projections throughout the fiscal year. Periodic budget reports provide transparency and oversight of public funds, summarize current activities, and present recommended funding adjustments when necessary. While all funds are continually monitored, this report highlights only those funds requiring budget modifications; funds without adjustments are not included. The City of La Quinta remains committed to responsible fiscal management, careful budget oversight, and long-term financial sustainability. Based on the current review, General Fund revenues and expenditures are generally performing in line with adopted budget expectations. However, given evolving economic conditions, the City will continue to closely monitor financial activity to ensure resources are managed effectively. These updates allow the City Council to stay informed on revenue and expenditure trends and support timely, well-informed policy decisions. The Fiscal Year (FY) 2025/26 Mid-Year Budget Report has several adjustments, which are detailed in Exhibit 1. The recommended adjustments are largely derived from year-to-date revenues collected and expenses incurred due to programming activities and operational needs. GENERAL FUND REVENUES General Fund revenue adjustments summarized below total $4,435,000. Adjustments reflect updated projections based on last fiscal year’s actuals and year-to-date activity. All revenue streams will continue to be monitored and if necessary, additional adjustments will be recommended in the next budget update report in June. Tax Revenues Sales Taxes - Sales tax revenues were conservatively budgeted based on information available as of June 2025. Since that time, collections have remained steady and have performed above prior quarterly trends. Based on current year-to-date activity and updated projections, sales tax revenues are anticipated to exceed the original budget by approximately $2.5 million by fiscal Revenue Description Adjustment Tax Revenues 3,755,000 Intergovernmental 500,000 Charges for Services 80,000 Miscellaneous 100,000 TOTAL GF REVENUE ADJUSTMENTS 4,435,000$ ATTACHMENT 1 194 year-end. Of this increase, approximately $1.0 million is attributable to the City’s share of the State sales tax rate, while $1.5 million is attributed to local Measure G sales tax collections. Document Transfer Tax – An increase of $300,000 is recommended based on actual revenues received year-to-date. Continued strength in the local real estate market, along with strong transaction values, has contributed to collections exceeding original projections. Transient Occupancy Tax (TOT) – When the budget was adopted, TOT revenues were conservatively projected due to uncertainty surrounding broader economic conditions and travel demand. Based on actual revenue collections received year-to-date, an increase of $600,000 is recommended for Hotel TOT and $200,000 for Short-Term Vacation Rental TOT, reflecting continued visitor activity and stronger-than-anticipated occupancy levels during the current fiscal year. Property Taxes – An increase of $155,000 in Property Tax in Lieu of Vehicle License Fee (VLF) is requested due to growth in property values due to increased sales prices in 2025, the year used for growth in assessment roll for 2025/26. Intergovernmental An increase of $500,000 is requested for the Fire Service Credit which is anticipated to be higher than the original projected estimates provided by Riverside County. Charges for Services An increase of $80,000 in Public Works Development Plan Check Fees is based on current year- to-date activity in private residential tract developments and commercial projects. Miscellaneous An increase of $100,000 is recommended to account for unanticipated reimbursements and one- time funds received from external agencies during the fiscal year. These revenues include settlement-related distributions and other miscellaneous receipts that were not known at the time the budget was adopted but have been received year-to-date. GENERAL FUND EXPENDITURES The Finance Department collaborated with all City departments and conducted a review of all department budgets to identify any new needs and potential areas of savings. Expenditure adjustments are recommended for unanticipated expenses and to avoid budget overruns based on updated operational needs. A summary is provided below and itemized in Exhibit 1. Expense Description Adjustment Public Safety 45,000 Marketing 15,000 Public Works 20,000 Contingency for Staffing (20,000) TOTAL GF EXPENSE ADJUSTMENTS 60,000$ 195 Public Safety An increase of $45,000 for the Vehicles account is recommended to account for the purchase of two Police motor bikes that experienced delivery delays due to extended backorder timelines. The adjustment aligns the budget with the timing of the expenditure. Marketing The Marketing division is requesting an additional $15,000 for Sponsorships/Advertising due to an increase in sponsorship commitments that will enhance community engagement and promote local events, businesses, and initiatives. Public Works The Public Works Development Services Division is requesting City Council approval to add a new Engineering Specialist position. Currently, the division is staffed with only one Analyst position, the Associate Engineer, which limits the division’s capacity to manage plan reviews, coordinate with developers, and respond to ongoing development activity. The proposed Engineering Specialist would assist with administrative and technical tasks, including preliminary plan reviews, permit coordination, and project communication with internal departments and external stakeholders. Establishing this position will help maintain continuity of service, improve responsiveness to development activity, and support succession planning within the division, while allowing the Associate Engineer to focus on higher-level engineering analysis and project management responsibilities. The request aligns staffing resources with the City’s operational needs and current development activity. The estimated annual cost for the Engineering Specialist position is approximately $120,000, including salary and benefits. For the current fiscal year, staff is requesting a proportionate budget adjustment of $20,000 to cover costs associated with the final two months of the fiscal year. Funding for this adjustment will be provided through the Contingency for Staffing account. SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for revenues that are legally restricted or committed to specific purposes. Periodic budget adjustments may be required to recognize revenues received, align expenditures with program activities, or align accounting entries to ensure funds are reported accurately. The following adjustment is recommended to properly reflect revenues received for disaster recovery activities. Disaster Recovery Fund (Fund 105) An adjustment of $4,993,504 is recommended to recognize federal revenue received for disaster recovery activities. While the transfer of funds from Fund 105 to the General Fund (Fund 101) was previously completed, the corresponding revenue was not recorded. This adjustment corrects the accounting treatment and aligns the revenue with the original funding source. ___________________________________________________________________________ In summary, the City concluded FY 2024/25 in a stronger financial position than originally anticipated and continues to maintain a stable financial outlook as the current fiscal year progresses. While the City’s fiscal position remains solid, ongoing economic uncertainty requires continued prudence and adaptability in financial planning. This budget update reflects strategic adjustments intended to support a balanced and sustainable financial plan while prioritizing 196 reserve levels, addressing long-term liabilities, investing in infrastructure, and maintaining the programs, services, and community events valued by residents. Staff will continue to closely monitor economic conditions and budget performance to ensure the City remains well-positioned to respond to potential financial changes. Departmental spending remains generally consistent with budget expectations, and if revenue trends continue to perform as projected, the City is well positioned to conclude the fiscal year in a favorable financial position. All budget projections for both the General Fund and other City funds will continue to be evaluated through Spring 2026, and an additional update will be presented as part of the next FY 2025/26 Budget Update Report. 197 City of La Quinta FY 2025/26 Recommended Budget Adjustments Exhibit 1 Account No. Description Revenues Expenses REVENUE Tax Revenues 101-0000-41320 State Sales Tax 1,000,000 101-0000-41326 Measure G Sales Tax 1,500,000 101-0000-41327 Document Transfer Tax 300,000 101-0000-41400 TOT- Hotels 600,000 101-0000-41401 TOT- Short Term Vacation Rentals 200,000 101-0000-41800 Property Tax in Lieu of VLF 155,000 Intergovernmental 101-0000-42500 Fire Service Credit 500,000 Charges for Services 101-0000-42810 Public Works Development Plan Check Fee 80,000 Miscellaneous 101-0000-42301 Miscellaneous Reimbursements 100,000 EXPENSES Public Safety 101-2001-71031 Vehicles 45,000 Marketing 101-3007-60450 Sponsorships/Advertising 15,000 Public Works 101-7002-50101 20,000 101-1007-50115 Permanent Full Time (Public Works Development Services) Contingency for Staffing (20,000) TOTAL GENERAL FUND 4,435,000 60,000 Account No. Description Revenues Expenses Fund 105 Disaster Recovery 105-0000-41700 Federal Government Revenue 4,993,504 TOTAL SPECIAL REVENUE FUNDS 4,993,504 - General Fund (101) Special Revenue Funds 198 City of La Quinta CITY COUNCIL MEETING: March 17, 2026 STAFF REPORT AGENDA TITLE: APPROVE AGREEMENT REGARDING INSUBSTANTIAL MODIFICATION TO DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF LA QUINTA AND CM WAVE DEVELOPMENT LLC RELATING TO DEVELOPMENT AGREEMENT 2023-1000 FOR THE CORAL MOUNTAIN CLUB PROJECT; LOCATION: SOUTH OF AVENUE 58, WEST OF MADISON STREET, AND NORTH OF AVENUE 60 RECOMMENDATION Approve Agreement Regarding Insubstantial Modification to Development Agreement by and between the City of La Quinta and CM Wave Development LLC, relating to the Development Agreement 2023-1000 for the Coral Mountain Club project, and authorize the City Manager to execute the agreement. EXECUTIVE SUMMARY On March 5, 2024, Council adopted resolutions approving the Coral Mountain Club project (Project) as follows: 1) Resolution No. 2024-007 certifying Environmental Impact Report (EIR) (SCH # 2021020310) for Alternative No. 2 prepared for Environmental Assessment 2019-0010; and 2) Resolution No. 2024-008 approving General Plan Amendment (GPA) 2023-1000, Specific Plan (SP) 2023- 0003 (SP 2003-067, Amendment V), and Tentative Tract Map (TTM) 2023-0005 (TTM 37815). On March 19, 2024, Council adopted Ordinances Nos. 612 and 613 at second reading adopting Zone Change (ZC) 2023-1000 and Development Agreement (DA) 2023-1000. The DA has a 50-year term. On October 28, 2025, Planning Commission (PC) adopted PC Resolution No. 2025-012 approving TTM 2025-001 (TTM 39058) and Site Development Permits (SDP) 2025-0001 and 2025-0002 for the construction of a golf course, perimeter landscaping and sales center for the Coral Mountain Club. Pursuant to Section 1.6(a) of the DA, the developer is proposing an insubstantial modification that would (1) extend the homeowners annual mitigation fee in perpetuity, (2) expressly permit short-term vacation rentals (STVRs) in specified areas of the Project, and (3) have STVRs in those areas administered through the privately run Coral Mountain Club planned to oversee the golf course and related facilities. BUSINESS SESSION ITEM NO. 3 199 FISCAL IMPACT DA 2023-1000 includes payment of an annual $1,000 per residential unit mitigation fee to recover expenses associated with public safety and other City-based service costs, as an economic analysis prepared for the Project showed this portion of the City would not generate sufficient property tax to offset costs for these services. The DA provides, however, that if the City received transient occupancy taxes (TOT) for STVRs within the Project in excess of $1 million, but less $1.7 million, for two consecutive operative years, then the annual fee per residential unit would be reduced to $500. Thereafter, if the City received TOT for STVRs within the project in excess of $1.7 million for two consecutive operative years, the obligation to pay the annual fee would be released. The DA requires the covenants, conditions, and restrictions (CC&Rs) for the homeowners association(s) established to manage the Project to include provisions for the management, collection, and remittance of the annual fee to the City. The proposed Agreement Regarding Insubstantial Modification to the DA (Attachment 1) would delete the provisions for the reduction and release of the annual fee, thereby extending the annual fee in perpetuity. BACKGROUND/ANALYSIS On March 5, 2024, Council adopted Resolution Nos. 2024-007 and 2024-008, which certified EIR (SCH #2021020310) for Alternative No. 2, for the Project, and approved GPA 2023-1000, SP 2023-0003, and TTM 2023-0005 (TTM 37815) related to the Project. On March 19, 2024, Council adopted Ordinance No. 612 adopting ZC 2023-1000 and Ordinance No. 613 approving DA 2023-1000. DA 2023-1000 provides for: 1) Development of 750 residential units, a golf course, and 60,000 square feet of commercial space over approximately 386 acres located south of Avenue 58, north of Avenue 60, and west of Madison Street; 2) Establishes a 10-year phased development schedule; 3) Allows STVRs for the residential units within the entire Project, subject to obtaining the City-required STVR permits and “centralized” management by developer or its successor(s)-in-interest; 4) Requires payment of an annual $1,000 per unit mitigation fee for public safety and other costs, subject to reduction and release based on TOT revenues, as discussed above. On October 28, 2025, the Planning Commission adopted PC Resolution No. 2025-012 approving TTM 2025-0001 (TTM 39058) and SDPs 2025-0001 and 2025-0002 for the construction of the golf course, perimeter landscaping and sales center for the Coral Mountain Club. 200 Section 1.6(a) of the DA allows for minor modifications of the DA without the need for a full amendment when modifications do not trigger major modifications, as defined in the DA, to the deal points approved by the Council and developer. While the City Manager has authority to approve insubstantial modifications, the DA allows the City Manager to present them for Council review and approval. The developer has proposed modifications in connection with development and implementation of the Project, including a determination that the Project will have a community association to manage and govern the residential portion of the Project and own and manage certain common areas associated therewith (the “Community Association”), as well as a separate owner of the private club to own and operate the golf course and other related recreational amenities and facilities within the Project (the “Private Club”). In addition to the modifications to the annual mitigation fee noted above, the developer is proposing to expressly identify certain areas within the Project which would allow STVRs. Specifically, STVRs would be managed through the Private Club and would be allowed only in the following three areas: (1) approximately 18.5 acre parcel identified on the approved TTM as Lot 202, commonly referenced as “Founder’s Island”; (2) the property identified on the approved TTM as Lots 99 – 105, commonly known as the “Club Cottages”; and (3) the property identified on the approved TTM as Lot 203, commonly known as the “Residence Club.” These three areas are centralized and near the clubhouse and other amenities. The decision to allow STVRs in other areas of the Project still remains with the developer, Community Association, and/or Private Club. Other non-substantive modifications to the developer’s contact information are proposed, and all other terms and conditions of the DA would remain in full force and effect. ENVIRONMENTAL REVIEW As noted above, the Council adopted Resolution No. 2024-007 certifying Environmental Impact Report (EIR) (SCH # 2021020310) for Alternative No. 2 prepared for Environmental Assessment 2019-0010, when the Project was approved. The proposed Agreement Regarding Insubstantial Modification to the DA is consistent with the Project as approved and analyzed in the EIR, as there is no change in allowable uses and, if approved, would result in a potentially reduced intensity of use of STVRs throughout the entire Project. Moreover, if approved, there would be more revenues to offset costs attributed to public safety and other public services. Therefore, no further environmental review is required. ALTERNATIVES Council may choose not to approve the proposed Agreement Regarding Insubstantial Modification to the DA, which would leave the provisions regarding the annual mitigation fee and STVR-allowances unchanged. The developer, however, has represented that, among other reasons, the limitation of STVRs to the areas of the Project that are 201 centralized and closer to the recreational facilities would help with marketing the sales and development of the remainder parcels for residential development, as well as assist in the centralized management of STVRs as required by the DA. Prepared by: Bill Ihrke, City Attorney Approved by: Jon McMillen, City Manager Attachments: 1. Agreement Regarding Insubstantial Modification to Development Agreement 2. Tentative Tract Map No. 39058 (2025-0001) 202 1 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of La Quinta Attn: City Clerk La Quinta City Hall 78-495 Calle Tampico La Quinta, CA 92253 Exempt from Fees Per Gov. Code §6103 and §27383 _____________________________________________________________________________ Space above this line for Recorder’s Use Only AGREEMENT REGARDING INSUBSTANTIAL MODIFICATION TO DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF LA QUINTA AND CM WAVE DEVELOPMENT LLC This Agreement Regarding Insubstantial Modification to Development Agreement (the “Insubstantial Modification”), dated _____________, 2026 for reference purposes only, is made by and between the CITY OF LA QUINTA, a California municipal corporation and charter city organized and existing under the Constitution of the State of California (“City”), and CM WAVE DEVELOPMENT LLC, a Delaware limited liability company (“Developer”), with reference to the following: R E C I T A L S A. On or about April 4, 2024, the City and Developer entered into a Development Agreement, which was recorded in the Official Records of Riverside County on May 23, 2024, as Instrument No. 2024-0149536 (the “Development Agreement” or “Agreement”). The Development Agreement runs with the land and touches and concerns that certain real property in the City of La Quinta, as more particularly described on Exhibit A hereto and incorporated herein by this reference (the “Site”). Capitalized terms used herein and not otherwise defined shall have the meaning set forth in the Development Agreement. B. Pursuant to Section 1.6(a) of the Development Agreement, Developer has proposed certain refinements to the Development Agreement to address minor changes and clarifications sought by Developer in connection with development and implementation of the Project, including the determination that the Project will have a community association to manage and govern the residential portion of the Project and own and manage certain common ATTACHMENT 1 203 2 areas associated therewith (the “Community Association”), as well as a separate owner of the private club to own and operate the golf course and other related recreational amenities and facilities within the Project (the “Private Club”). C.The Community Association and Private Club may be separate HOAs (as defined in Section 3.8 of the Development Agreement), or may be a separate nonprofit unincorporated or incorporated association, as long as Developer complies with all of the requirements and provisions in the Development Agreement (including but not limited to Section 3.8 therein) and requirements of applicable state law for a common interest development (such as Civil Code section 4800 of the Davis-Stirling Common Interest Development Act (Civ. Code, § 4000 et seq., and “Davis-Stirling Act”) pertaining to the obligations to prepare, draft (in a form to be approved by the City Manager and City Attorney), execute, and cause to be recorded in the Recorder’s Office the CC&Rs. D.On October 28, 2025, in accordance with the Subdivision Map Act (Government Code Sections 66410 et seq., the “Map Act”), Development Agreement, and La Quinta Municipal Code, the City approved Tentative Tract Map No. 2025-0001 (TTM 39058) (the “Approved Tentative Tract Map”) with the La Quinta Planning Commission’s adoption of Planning Commission Reso. 2025-012. The Approved Tentative Tract Map which governs the subdivision of specified parcels at the Site. E.The City has reviewed the proposed refinements to the Development Agreement proposed by Developer and set forth herein, and City agrees that these refinements do not require an amendment to the Development Agreement and qualify as an “Insubstantial Modification” under Section 1.6(a) of the Development Agreement. In consideration of the foregoing, and pursuant to Section 1.6(a) of the Development Agreement, the Development Agreement is hereby revised and clarified as follows: AGREEMENT 1.Revisions to Article 3. Article 3 (Developer’s Obligations) of the Development Agreement is amended as follows: A.Section 3.6.2 of the Development Agreement is struck in its entirety and amended to read as follows: “3.6.2 Annual Mitigation Fee. To ensure that the Project generates sufficient TOT and sales tax revenues to the City to pay all public safety and other public service costs of the City resulting from the Project, on each July 1st following the Effective Date (“Annual Mitigation Payment Date”), the Developer or the Developer’s successor shall pay to the City an annual mitigation fee (“Coral Mountain Annual Mitigation Fee”) covering the annual period of the prior July 1 through the June 30 occurring immediately preceding the Annual Mitigation Payment Date (the “Operative Year”) (provided, however, the first Operative Year shall commence on the Effective Date of this Agreement and 204 3 end on the next occurring June 30). The Coral Mountain Annual Mitigation Fee shall be comprised of the following: The collective sum of One Thousand Dollars ($1,000.00) for each of the 750 allowed residential units (also referred to as the “Coral Mountain Residential Unit Fee”) in the Project that has received a certificate of occupancy, and that has been sold to a third party purchaser as evidenced by a recorded grant deed for such unit, prior to the applicable Annual Mitigation Payment Date, regardless of when or in which Operative Year the unit was sold. Notwithstanding the obligation by Developer (or Developer’s successors) to pay the Coral Mountain Annual Mitigation Fee, all rentals of residential units shall remain subject to the City’s TOT requirements. The CC&Rs for the residential units in the Project shall provide for the assessment and collection of the Coral Mountain Annual Mitigation Fee consistent with the terms hereof, and shall provide for and adequately ensure the collection and payment thereof. As to the collection and payment of the Coral Mountain Annual Mitigation Fee, the CC&Rs shall provide the City with enforcement rights against both the Community Association (or its successor) and the individual homeowners. The City shall be provided with the same rights of collection as to the Coral Mountain Annual Mitigation Fee that the Community Association shall have for the collection of other fees and assessments, but the Community Association shall have the obligation for collection and payment of the Coral Mountain Annual Mitigation Fee. In any action by the City to collect the Coral Mountain Annual Mitigation Fee, the City shall, in addition to the fee, be entitled to collect all of its costs, expenses, and attorneys’ fees in enforcing its rights. The CC&Rs shall be subject to the terms and conditions set forth in Section 3.8 of this Agreement. 2. Revisions to Article 5. Article 5 (Short Term Vacation Rentals/Transient Occupancy Taxes) of the Development Agreement is amended as follows: A. Section 5.1 of the Development Agreement is struck in its entirety and amended to read as follows: “5.1 Short Term Vacation Rentals as a Permitted Use. (a)This Agreement does hereby provide that short-term vacation rentals are a permitted use in all Planning Areas within the Project and on the Site that allow residential uses, and the rights to such permitted use are hereby vested pursuant to the terms of this Agreement, and this vested right shall inure to the benefit of Developer and its successor-in-interest Private Club, but, except as provided in this Insubstantial Modification, shall not grant to or vest any rights in owners of residential dwellings or units (collectively, referred to herein as “residential units”) within the Project. As such, the rights and obligations of Developer and Private Club under this Section 5.1 shall survive the sale of each residential unit to a third-party homebuyer and termination of this Agreement as to each such residential unit but shall not create in any residential lot owner for a residential unit the right to operate a short-term vacation rental thereon or therein. The decision to allow short-term vacation rentals, or to limit or prohibit them, are vested in the Developer and Private Club, as owner of the golf course and other primary recreational amenities 205 4 within the Project, subject to all applicable restrictions against any form of discrimination prohibited by federal, state, or local law. (b) Notwithstanding the foregoing paragraph (a) in this Section 5.1, the Developer and its successor-in-interest Private Club shall permit short-term vacation rentals within the following three areas of the Project to ensure the generation of TOT revenues for the benefit of the City and its residents: (1) the approximately 18.5 acre parcel identified on the Approved Tentative Tract Map as Lot 202, identified on the proposed Phase 1 final map as an 18.472-acre remainder parcel, and commonly referenced as “Founder’s Island”; (2) the property identified on the Approved Tentative Tract Map as Lots 99 – 105, identified on the proposed Phase 1 final map as Lots 77 – 85, and commonly known as the “Club Cottages”; and (3) the property identified on the Approved Tentative Tract Map as Lot 203, identified on the proposed Phase 1 final map as Lot 89, and commonly known as the “Residence Club.” The areas of the Project and on the Site referred to and described herein as “Founders Island,” “Club Cottages,” and “Residence Club” are collectively referred to as the “Always Permittable STVR Locations.” (c) Except as provided in the Development Agreement (as modified by this Insubstantial Modification) and except for the Always Permittable STVR Locations, the City shall not impose on or apply to the Project (whether by action of the Council, or other legislative body, or by initiative, referendum, or other measure) any ordinance, resolution, standard, directive, condition, or other measure that is in conflict with the Development Agreement (as modified by the Insubstantial Modification) or that would materially interfere with the right or ability of the Developer or Private Club to allow for or restrict a residential unit owner’s ability to apply for and operate short-term vacation rentals in all residential units within the Project. (d) Any and all short-term vacation rentals within the Project, including the Always Permittable STVR Locations, shall be subject to the Short-Term Vacation Rental Regulations, including but not limited to obtaining City staff approval of short-term vacation rental permits and for violations and penalties for violations or failing to comply with the City’s Short-Term Vacation Rental Regulations. (For reference only, a copy of Chapter 3.25 of the La Quinta Municipal Code in effect as of the Effective Date is attached to the Development Agreement as Exhibit “G”. In the event Chapter 3.25 is repealed in its entirely, only then the provisions of Chapter 3.25 as attached to the Development Agreement shall govern the permitting, operation, and renewal of short-term vacation rental permits in the Project and on the Site.) In order to ensure the timely collection and reporting of the applicable transient occupancy taxes, and compliance with the applicable operational requirements and conditions set forth in the Short-Term Vacation Rental Regulations, the Developer or Private Club shall be the “authorized agent or representative” (as that term is defined in the Short-Term Vacation Rental Regulations, or, if the definition is removed during the Term of the Development Agreement, as defined in Chapter 3.25 as of the Effective Date of the Development Agreement) for all short-term vacation rentals and short-term vacation rental permits within the Project, including but not limited to applying for and managing all short- term vacation rental permits, making all reservations and payments, and ensuring compliance with all other requirements of the Short-Term Vacation Rental Regulations, and shall do so exclusively through a central rental operator pursuant to Section 5.3.1 of the Development Agreement (as modified by this Insubstantial Amendment), which shall be confirmed at the issuance and renewal of each short-term vacation rental permit; provided, however, that the “owner” (as that term is 206 5 defined in the Short-Term Vacation Rental Regulations, or, if the definition is removed during the Term of the Development Agreement, as defined in Chapter 3.25 as of the Effective Date of the Development Agreement) of a residential unit may also retain its own third party rental agent to perform marketing and other services on behalf of said owner, as long as such third party rental agent is approved in accordance with the requirements set forth in the project CC&Rs, complies with the City’s Short-Term Vacation Rental Regulations, and, at all times, the Developer or Private Club, as “the authorized agent or representative,” shall be engaged by said owner and shall remain responsible for collection and payment of transient occupancy taxes, managing all short-term vacation rental permits, making all reservations and payments, and ensuring compliance with all other requirements of the Short-Term Vacation Rental Regulations. Notwithstanding the requirements of the Developer or Private Club, as “authorized agent or representative,” an owner of residential unit being used for short-term vacation rental shall remain ultimately obligated as the holder of the short-term vacation rental permit for any and all remedial actions necessary for compliance with the Short-Term Vacation Rental Regulations and the Development Agreement (as modified by this Insubstantial Modification), including but not limited to the payment of any fines or recorded liens or any other violations for non-compliance; and, provided further, that the “owner” under any short-term vacation rental permit shall have a process available, through an independent arbitrator or neutral decision-maker designated by the Developer or Private Club of which the short-term vacation rental unit owner is a member, to petition for a change of that owner’s “authorized agent or representative” because the owner demonstrates, with a preponderance of evidence, that the “authorized agent or representative,” designated by the Developer or its successor or assignee, has failed to perform its duty to ensure compliance with all other requirements of the Short-Term Vacation Rental Regulations for that owner’s short-term vacation rental unit. The CC&Rs as described in Section 3.8 of the Development Agreement shall include the terms and conditions, and detailed specifics for process and decision, whenever an owner may petition for a change in that owner’s “authorized agent or representative” as required by this Section 5.1; the City Manager and City Attorney shall review and approve, in their reasonable discretion and not to be unreasonably delayed or denied, said terms and conditions in the CC&Rs that would apply if an owner were to petition for a change in that owner’s “authorized agent or representative” as required by this Section 5.1. (e) Pursuant to the expressed exceptions referenced in the preceding paragraph, the following provisions shall apply to the use and operation of the Project and each single-family residence on the Site within the Project: (1) The operational requirements and restrictions in Section 3.25.070 (or successor section) of the La Quinta Municipal Code shall apply to all short-term vacation rental units, including the limits on the number of daytime and overnight guests in each unit to ensure that occupancy levels are appropriate for the number of bedrooms and compatible with single- family residential communities; and (2) All short-term vacation rental units in the Project shall be subject to, at a minimum, the noise restrictions in Sections 9.100.210 and 11.08.040 (or successor sections) of the La Quinta Municipal Code, in addition to any noise compliance requirements set forth in Chapter 3.25 of the La Quinta Municipal Code.” 207 6 B. Section 5.3 of the Development Agreement is struck in its entirety and amended to read the following: “5.3 Covenants, Conditions, and Restrictions. All CC&Rs recorded pursuant to Section 3.8 of the Development Agreement on any property within the Project where residential uses are allowed shall expressly provide whether and to what extent short-term vacation rentals are authorized for all residential units. All such CC&Rs shall state the operational requirements and standard conditions applicable to any short- term rentals permitted in that tract or planning area of the Project.” C. Section 5.3.1 of the Development Agreement is struck in its entirety and amended to read the following: “5.3.1 Rental Management Program. Developer shall be responsible for ensuring that for the Term of this Agreement, to the extent any owners of the residential units are permitted to make their units available for short-term vacation rentals under the terms of the Development Agreement (as amended by this Insubstantial Modification) and the CC&Rs, one or more contract(s) shall be in effect at all times which provide for the centralized management of such short-term rentals in accordance with all applicable requirements set forth in the Development Agreement (as amended by this Insubstantial Modification). The contract or contracts may, but are not required to be, with an on-site rental management agent. Developer may assign this obligation to its successors in accordance with this Agreement.” D. Rescission of Amendments Pertaining to Short-Term Vacation Rentals If No Final Map Approved and Recorded. In the event that the Approved Tentative Tract Map, after taking into account any extension pursuant to Section 2.2.9 of the Development Agreement, is not perfected by the approval and recording (in the Office of Official Records for Riverside County, California) of the final map for the Approved Tentative Tract Map in accordance with the Map Act, Development Agreement, and La Quinta Municipal Code, then” (i) the amendments to Article 5 of the Development Agreement set forth in Paragraphs (A), (B), and (C), above, of Sections 2 in this Insubstantial Modification shall be rescinded and immediately deemed null and void, and of no further force and effect, and (ii) the terms and conditions in Article 5 of the Development Agreement, as originally adopted, shall be reactivated and immediately in full force and effect, governing the Project and the Site, for the balance of the Term of the Development Agreement (unless Article 5 is subsequently amended by a Substantial Amendment or Insubstantial Modification pursuant to Section 1.6 of the Development Agreement). The provisions in this Paragraph (D) of Section 2 shall be self-executing, without the obligation of either Party to take any further action or execute any additional document to (x) rescind the amendments to Article 5 set forth in this Insubstantial Modification, and (z) reactive the original provisions in Article 5 of the Development Agreement. 3. Revisions to Article 8. Article 8 (Miscellaneous) of the Development Agreement is amended as follows: 208 7 A. The notice information for Developer, as set forth in Section 8.1 of the Development Agreement, is hereby updated to the following: To Developer: CM Wave Development LLC c/o Meriwether Companies 2235 Broadway Boulder, CO 80302 Attn: Garrett Simon With a copy to: Procopio, Cory, Hargreaves, and Savitch LLP 200 Spectrum Center Drive, Suite 1650 Irvine, CA 92618 Attn: James D. Vaughn, Esq 4. Development Agreement in Full Force and Effect. Except as expressly amended by this Insubstantial Modification, all of the terms and conditions set forth in the Development Agreement remain binding and in full force and effect. 5. Developer Consent. Developer expressly consents to the terms and conditions set forth in this Insubstantial Modification, and confirms that this Insubstantial Modification does not affect the monetary obligations of Developer. To the extent any monetary obligations of Developer may be affected by this Insubstantial Modification, Developer expressly waives any rights pursuant to Sections 1.6(a) or 1.6(b) of the Development Agreement. 6. Authority. The person or persons executing this Agreement on behalf of the City and Developer warrant and represent that they have the authority to execute this Agreement and the authority to bind the City and Developer, as applicable, to the performance of their respective obligations hereunder. 7. Counterparts. This Insubstantial Modification may be executed in counterparts, each of which shall be deemed an original, and all such counterparts, when taken together, shall constitute one agreement. [SIGNATURES ON FOLLOWING PAGE] 209 8 SIGNATURE PAGE TO AGREEMENT REGARDING INSUBSTANTIAL MODIFICATION TO DEVELOPMENT AGREEMENT IN WITNESS WHEREOF, the Developer and the City have signed this Insubstantial Modification, by and through the signatures of their authorized representatives as of the dates indicated below. “DEVELOPER” CM WAVE DEVELOPMENT, LLC, a Delaware limited liability company By: Its: “CITY” CITY OF LA QUINTA, a California municipal corporation By: ___________________________ Name: Jon McMillen Title: City Manager ATTEST: Monika Radeva City Clerk APPROVED AS TO FORM RUTAN & TUCKER, LLP William H. Ihrke City Attorney 210 9 Exhibit A Legal Description of Site [attached] 211 10 THE LAND REFERRED TO HEREIN BELOW IS SITUATED LA QUINTA, IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: PARCEL A: PARCEL “B” OF LOT LINE ADJUSTMENT NO. 2006-462, AS APPROVED BY THE CITY OF LA QUINTA DECEMBER 07, 2006 BEING: THAT PORTION OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION 28, TOWNSHIP 6 SOUTH, RANGE 7 EAST, S.B.M. IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND PARCEL “D” OF LOT LINE ADJUSTMENT NO. 2002-930, RECORDED FEBRUARY 13, 2003, AS DOCUMENT NO. 2003-102524, RECORDS OF RIVERSIDE COUNTY MORE PARTICULARLY DESCRIBED AS FOLLOWS; BEGINNING AT THE NORTHWEST CORNER OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 28; THENCE SOUTH 89° 56’ 35” EAST ALONG THE NORTHERLY LINE OF SAID SECTION 28, A DISTANCE OF 499.01 FEET; THENCE SOUTH 00° 03’ 25” WEST, A DISTANCE OF 261.25 FEET; THENCE SOUTH 58° 09’ 44” EAST, A DISTANCE OF 765.93 FEET; THENCE NORTH 77° 42’ 02” EAST, A DISTANCE OF 176.74 FEET, TO THE EASTERLY LINE OF SAID PARCEL “D” AND THE BEGINNING OF A NON-TANGENT CURVE CONCAVE EASTERLY HAVING A RADIUS OF 2455.00 FEET FROM WHICH A RADIAL LINE OF SAID CURVE BEARS NORTH 77° 42’ 23” EAST; THENCE SOUTHERLY AND SOUTHEASTERLY ALONG SAID CURVE AND SAID EASTERLY LINE THROUGH A CENTRAL ANGLE OF 20° 10’ 55”, AN ARC DISTANCE OF 864.75 FEET; TO THE BEGINNING OF A REVERSE CURVE CONCAVE WESTERLY, HAVING A RADIUS OF 2345.00 FEET; THENCE SOUTHEASTERLY, SOUTHERLY AND SOUTHWESTERLY ALONG SAID CURVE AND SAID EASTERLY LINE THROUGH A CENTRAL ANGLE OF 65° 20’ 50”, AN ARC DISTANCE OF 2674.53 FEET; TO THE BEGINNING OF A REVERSE CURVE CONCAVE SOUTHEASTERLY, HAVING A RADIUS OF 2455.00 FEET; THENCE SOUTHWESTERLY AND SOUTHERLY ALONG SAID CURVE AND SAID EASTERLY LINE THROUGH A CENTRAL ANGLE OF 20° 25’ 31”, AN ARC DISTANCE OF 875.17 FEET TO THE EASTERLY LINE OF SAID SECTION 28 AND THE MOST SOUTHERLY CORNER OF SAID PARCEL “D”; THENCE NORTH 00° 17’ 44” EAST ALONG THE EASTERLY LINE OF SAID SECTION 28 AND THE PARCEL LINE OF SAID PARCEL “D”, A DISTANCE OF 2104.91 TO THE EAST QUARTER CORNER OF SAID SECTION 28; THENCE SOUTH 89° 30’ 09” EAST ALONG SAID PARCEL LINE, A DISTANCE OF 30.00 FEET; THENCE NORTH 00° 05’ 52” EAST ALONG SAID PARCEL LINE, A DISTANCE OF 1326.33 FEET; THENCE NORTH 89° 30’ 56” WEST ALONG SAID PARCEL LINE A DISTANCE OF 30.00 FEET TO THE SOUTHEAST CORNER OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 28; THENCE NORTH 89° 54’ 54” WEST ALONG THE SOUTHERLY LINE OF SAID NORTHEAST QUARTER OF THE NORTHEAST QUARTER, A DISTANCE OF 1322.31 FEET TO THE SOUTHWEST CORNER OF SAID NORTHEAST QUARTER OF THE NORTHEAST QUARTER; THENCE NORTH 00° 09’ 14” EAST ALONG THE WESTERLY LINE OF SAID NORTHEAST QUARTER OF THE NORTHEAST QUARTER, A DISTANCE OF 1325.69 TO THE POINT OF BEGINNING. TOGETHER WITH THAT CERTAIN PORTION OF MADISON STREET, VACATED BY SAID CITY ON JANUARY 07, 2003 PER RESOLUTION NO. 2003-003, A COPY OF WHICH RECORDED APRIL 30, 2014 AS INSTRUMENT NO. 2014-0157740 OF OFFICIAL RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, AND WHICH WOULD BY OPERATION OF LAW REVERT TO THE ABOVE DESCRIBED PROPERTY. APN: 766-070-012-5, 764-210-007-9, 764-210-028, 764-210-029, 764-200-076-0 212 11 PARCEL B: THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER, THE SOUTHERLY 180.00 FEET TO THE NORTHEAST QUARTER OF THE NORTHWEST QUARTER, THE SOUTH HALF OF THE NORTHEAST QUARTER, THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER, EXCEPT THE WEST 820.00 FEET THEREOF AND THE SOUTHERLY 180.00 FEET OF THE WEST 820.00 FEET OF THE NORTHWEST QUARTER, OF THE NORTHEAST QUARTER, ALL IN SECTION 28, TOWNSHIP 6 SOUTH, RANGE 7 EAST, SAN BERNARDINO BASE AND MERIDIAN; EXCEPTING THEREFROM THAT PORTION THEREOF INCLUDED WITHIN 58TII AVENUE. TOGETHER WITH THAT CERTAIN PORTION OF MADISON STREET, VACATED BY SAID CITY ON JANUARY 07, 2003 PER RESOLUTION NO. 2003-003, A COPY OF WHICH RECORDED APRIL 30, 2014 AS INSTRUMENT NO. 2014-0157740 OF OFFICIAL RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, AND WHICH WOULD BY OPERATION OF LAW REVERT TO THE ABOVE DESCRIBED PROPERTY. APN: 766-070-003-7,006-0 PARCEL C: THE NORTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 28, TOWNSHIP 6 SOUTH, RANGE 7 EAST, SAN BERNARDINO BASE AND MERIDIAN; EXCEPTING THEREFROM ALL OIL, MINERAL, HYDROCARBON AND KINDRED SUBSTANCES IN AND UNDER SAID PROPERTY, WITHOUT RIGHT OF SURFACE ENTRY. APN: 766-080-001-6, 002-7 PARCEL D: THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 28, TOWNSHIP 6 SOUTH, RANGE 7 EAST, SAN BERNARDINO BASE AND MERIDIAN; EXCEPTING THEREFROM THAT PORTION OF LAND LYING IN THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 28, TOWNSHIP 6 SOUTH, RANGE 7 EAST, SAN BERNARDINO BASE AND MERIDIAN, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTH QUARTER CORNER OF SAID SECTION 28; THENCE NORTH 00°07’45” WEST, ALONG THE WEST BOUNDARY OF SAID SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER, 287.38 FEET TO A POINT ON THE ARC OF A CURVE; THENCE 94.73 FEET ALONG THE ARC OF SAID CURVE TO THE LEFT, HAVING A RADIUS OF 910.00 FEET AND A CENTRAL ANGLE OF 05°57’51” WHOSE CHORD BEARS SOUTH 66°04’50” EAST, A DISTANCE OF 94.68 FEET; THENCE SOUTH 69°03’45” EAST, 679.03 FEET TO A POINT IN THE SOUTH BOUNDARY OF SAID SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER; THENCE SOUTH 89°29’45” WEST, ALONG SAID SOUTH BOUNDARY, 720.12 FEET TO THE POINT OF BEGINNING; EXCEPTING THEREFROM THAT PORTION THEREOF LYING WITHIN 60TH AVENUE. APN: 766-080-005-0 213 12 PARCEL E: THE NORTH HALF OF THE SOUTHEAST QUARTER OF SECTION 28, TOWNSHIP 6 SOUTH, RANGE 7 EAST, SAN BERNARDINO BASE AND MERIDIAN. TOGETHER WITH THAT CERTAIN PORTION OF MADISON STREET, VACATED BY SAID CITY ON JANUARY 07, 2003 PER RESOLUTION NO. 2003-003, A COPY OF WHICH RECORDED APRIL 30, 2014 AS INSTRUMENT NO. 2014-0157740 OF OFFICIAL RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, AND WHICH WOULD BY OPERATION OF LAW REVERT TO THE ABOVE DESCRIBED PROPERTY. APN: 766-080-004-9 PARCEL F: PARCEL A OF LOT LINE ADJUSTMENT NO. 2006-462, AS APPROVED BY THE CITY OF LA QUINTA DECEMBER 7, 2006, BEING A PORTION OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION 28, TOWNSHIP 6 SOUTH, RANGE 7 EAST, SAN BERNARDINO BASE AND MERIDIAN, IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND A PORTION OF PARCEL D OF THE LOT LINE ADJUSTMENT NO. 2002-390 RECORDED FEBRUARY 13, 2003 AS INSTRUMENT NO. 2003102524 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, WHICH IS INCLUDED WITHIN SAID PARCEL A, ALL OF WHICH IS MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 28; THENCE SOUTH 89° 56’ 35” EAST ALONG THE NORTHERLY LINE OF SAID NORTHEAST QUARTER A DISTANCE OF 499.01 FEET TO THE TRUE POINT OF BEGINNING; THENCE SOUTH 00° 03’ 25” WEST, A DISTANCE OF 261.25 FEET; THENCE SOUTH 58° 08’ 44” EAST A DISTANCE OF 765.93 FEET; THENCE NORTH 77° 42’ 02” EAST, A DISTANCE OF 176.74 FEET, TO THE EASTERLY LINE OF SAID PARCEL D AND THE BEGINNING OF A NON-TANGENT CURVE CONCAVE EASTERLY, HAVING A RADIUS OF 2455.00 FEET FROM WHICH A RADIAL LINE OF SAID CURVE BEARS NORTH 77° 42’ 23” EAST; THENCE NORTHERLY ALONG SAID CURVE AND SAID EASTERLY LINE THROUGH A CENTRAL ANGLE OF 00° 14’ 26” AN ARC DISTANCE OF 10.31 FEET TO THE EASTERLY LINE OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 28; THENCE NORTH 00° 05’ 52” EAST ALONG SAID EASTERLY LINE, A DISTANCE OF 616.74 FEET TO THE NORTHEAST CORNER OF SAID SECTION 28; THENCE NORTH 89° 56’ 35” WEST ALONG THE NORTHERLY LINE OF SAID SECTION 28, A DISTANCE OF 822.00 FEET TO THE TRUE POINT OF BEGINNING. APN: 766-070-014 [end of legal description] 214 ______ ,,,.,......, ______ ,,,,,..._ -··-··-··-··-··-··-"'""""'" = = =: .,,.,... ...... 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TH!NcAAS.=INGO,,UlfiGS,Q.DftG'i,.OIIOIID.SlkUCIUPlSICNOWNON l PO TEtflW.'ICC£5.SLOCA110t61'N.SlUaTORElf'tEl,Ufl1Nfl.W.CBIGN. "'-PlYlloP,t,lll['IClll,U;loo:lUPES fl_,,_PUIIIC-OfWA.YOflll<,lTION j1.7'1CILS) 'i.S([L.lNISQl'[PIAN',fOl\l'l<l!lafl�Ut-lS.f!ISttttC[&UfV.OIIDN'>- ATTACHMENT 2 215 216 217 218 City of La Quinta CITY COUNCIL MEETING: March 17, 2026 STAFF REPORT AGENDA TITLE: INTRODUCE FOR FIRST READING AN ORDINANCE AMENDING CHAPTER 3.25 OF THE LA QUINTA MUNICIPAL CODE RELATED TO SHORT-TERM VACATION RENTALS RECOMMENDATION Move to take up Ordinance No. ___ by title and number only and waive further reading. Move to introduce at first reading, Ordinance No. ___ to amend Sections 3.25.020, 3.25.030, and 3.25.070 of Chapter 3.25 of the La Quinta Municipal Code related to Short-Term Vacation Rentals. EXECUTIVE SUMMARY Staff periodically reviews Chapter 3.25 of the La Quinta Municipal Code (LQMC) related to the City’s Short-Term Vacation Rental (STVR) program, and proposes amendments to update or clarify requirements and regulations as needed. A recent trial court decision, reversing an administrative hearing officer’s decision, decided that the definition of “short-term vacation rental unit” could be interpreted to mean an owner without an STVR permit could nonetheless allow persons to rent and occupy a residence for 30 days or less if there was evidence of a lease agreement for longer than 30 days. While the City has prevailed numerous times in the past in administrative hearings and trial court appeals that have raised this argument, staff and the City Attorney’s Office recommend clarifying amendments to a few definitions, as well as the legislative intent, to address the recent trial court decision. FISCAL IMPACT – None. BACKGROUND AND ANALYSIS Staff periodically reviews Chapter 3.25 of the LQMC related to the STVR program, and proposes amendments to update or clarify requirements and regulations as needed. As part of the last revisions in December 2024 (Ordinance No. 619), the Council amended Chapter 3.25 to add the definition of “subtenant” to explicitly state that any rental activity of a privately owned dwelling, regardless of whether it was directly rented or sub-rented by the BUSINESS SESSION ITEM NO. 4 219 occupant(s), for 30-days or less constitutes an STVR rental and is subject to the STVR program requirements and regulations. The City’s Code Enforcement Office, in conjunction with the City’s Lead Code Enforcement Attorney, are periodically called to investigate alleged code violations and, after conducting investigations and obtaining evidence, periodically issue citations for violations of the City’s STVR Regulations in Chapter 3.25. Over the years, a few residential owners have argued that a written lease for more than 30 days should be conclusive evidence that the residence is not an STVR and thus not subject to Chapter 3.25. Repeatedly in response to such arguments, the City has countered that the actual use of a residence is determinative of whether it is an STVR subject to regulations and compliance under Chapter 3.25. The City routinely prevailed on this argument because, among other reasons, proper statutory interpretation of Chapter 3.25 required viewing the ordinance as a whole in light of the overall legislative intent, not just one definition in LQMC Section 3.25.030. However, a recent trial court decision, which was brought as an appeal of an administrative hearing officer’s decision favorable to the City, focused solely on the definition of “short-term vacation rental unit” as possibly being interpreted to allow a person to rent a residence without an STVR permit, even if there is evidence of multiple persons occupying the residence sporadically for less than 30 days, as long as there is a written lease with an occupant for more than 30 days. Staff and the City Attorney’s Office recommend amending the definition of “short-term vacation rental unit” to address the cited ambiguity that led to the trial court’s decision. The proposed amendment “parses out” the elements of the current definition to clarify that an STVR unit is any privately owned residential dwelling rented for transient use and occupied by any person(s) for a period of thirty (30) consecutive calendar days or less. A proposed conforming amendment to the definition of “subtenant” is included, as well as proposed amendments that list common “secondary effects” to which the regulations in Chapter 3.25 are intended to limit or prevent (LQMC Section 3.25.020). Some minor amendments are also proposed to Section 3.25.070 – Operational Requirements and Standard Conditions and are intended to consolidate provisions, remove unnecessary detail, and clarify terms. ALTERNATIVES Council may elect not to introduce the proposed ordinance; approve only some of the amendments and/or additions; or instruct staff to make additional/different amendments. Prepared by: Bill Ihrke, City Attorney Approved by: Jon McMillen, City Manager 220 ORDINANCE NO. XXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AMENDING SECTIONS 3.25.020, 3.25.030, AND 3.25.070 OF CHAPTER 3.25 OF THE LA QUINTA MUNICIPAL CODE RELATED TO SHORT-TERM VACATION RENTALS WHEREAS, Chapter 3.25 of the La Quinta Municipal Code (LQMC) relates to short-term vacation rentals, including permitted uses, short-term vacation rental process and permitting procedures, requirements, violations, fines, etc.; and WHEREAS, the City has the authority to regulate residential uses, including short- term vacation rental uses, operating within the City; and WHEREAS, the proposed amendments to Section 3.25.020 – Purpose are intended to list common “secondary effects” to which the regulations of Chapter 3.25 are intended to limit or prevent; and WHEREAS, the proposed amendments to Section 3.25.030 – Definitions are: (1) Intended to “parse out” the elements of the current definition of a “short-term vacation rental unit” to clarify that an STVR unit is any privately owned residential dwelling rented for transient use and occupied by any person (s) for a period of 30 consecutive calendar days or less; and (2) Add a definition for “Long-term rental;” and (3) Provide a conforming amendment to the definition of “subtenant;” and (4) Provide other miscellaneous conforming amendments throughout the rest of the definitions; and WHEREAS, the proposed amendments to Section 3.25.070 – Operational requirements and standard conditions are intended to consolidate provisions, remove unnecessary detail, and clarify terms. NOW, THEREFORE, the City Council of the City of La Quinta does ordain as follows: SECTION 1. Chapter 3.25 shall be amended as written in “Exhibit A” attached hereto and incorporated herein by this reference. SECTION 2. EFFECTIVE DATE: This Ordinance shall be in full force and effect thirty (30) days after its adoption. 221 Ordinance No. XXX Chapter 3.25 Short-Term Vacation Rentals – Amending Sections 3.25.020, 3.25.030, and 3.25.070 Adopted: Month Date, 2026 Page 2 of 3 SECTION 3. 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 permanent record of Ordinances of the City of La Quinta. SECTION 4. CORRECTIVE AMENDMENTS: the City Council does hereby grant the City Clerk the ability to make minor amendments and corrections of typographical or clerical errors to “Exhibit A” to ensure consistency of all approved text amendments prior to the publication in the La Quinta Municipal Code. SECTION 5. 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. PASSED, APPROVED and ADOPTED, at a regular meeting of the La Quinta City Council held this _____ day of ___________, 2026, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ________________________ LINDA EVANS, Mayor City of La Quinta, California ATTEST: _________________________ MONIKA RADEVA, City Clerk City of La Quinta, California 222 Ordinance No. XXX Chapter 3.25 Short-Term Vacation Rentals – Amending Sections 3.25.020, 3.25.030, and 3.25.070 Adopted: Month Date, 2026 Page 3 of 3 APPROVED AS TO FORM: ___________________________ WILLIAM H. IHRKE, City Attorney City of La Quinta, California 223 Title 3 - REVENUE AND FINANCE Chapter 3.25 SHORT-TERM VACATION RENTALS La Quinta, California, Municipal Code Created: 2026-01-28 09:56:34 [EST] (Supp. No. 7, Update 3) Page 1 of 8 Chapter 3.25 SHORT-TERM VACATION RENTALS 3.25.020 Purpose. A. The purpose of this chapter is to establish regulations for the use of privately owned residential dwellings as short-term vacation rentals that ensure the collection and payment of transient occupancy taxes (TOT) as provided in Chapter 3.24 of this code, and minimize the negative secondary effects of such use on surrounding residential neighborhoods. Among other secondary effects to be limited, this chapter is intended to: 1. Prevent the circumvention by any owner of a dwelling (or any real property) in the city from operating a short-term vacation rental (STVR), without properly obtaining a permit and license required by this chapter, by claiming to have a rental arrangement longer than thirty (30) days but nonetheless collecting rent from a tenant or subtenant who occupies a residence for thirty (30) consecutive calendar days or less; 2. Require sufficient parking so that neighboring dwellings and other property uses are not unduly adversely impacted by the use of a residential dwelling on a short-term basis as a short-term vacation rental; 3. Impose strict obligations on occupants of short-term vacation rental units to limit excessive outside or ambient noise that would unduly interfere with the use and enjoyment of neighboring dwellings or other property owners; 4. Prevent conversion of rooms, without required permitting or licensing as set forth in this chapter and this code, from a non-bedroom use to bedroom use for the purpose of increasing the maximum allowed number of occupants using a short-term vacation rental unit; 5. Maintain the residential character of the city’s residential zones and neighborhoods by avoiding transitory uses which are not properly permitted pursuant to this chapter; and 6. Prohibit any property from being used as a short-term vacation rental unless such use is allowed within an area of the city and properly permitted pursuant to this chapter. B. This chapter is not intended to provide any owner of residential property with the right or privilege to violate any private conditions, covenants and restrictions applicable to the owner's property that may prohibit the use of such owner's residential property for short-term vacation rental purposes as defined in this chapter. C. The requirements of this chapter shall be presumed to apply to any residential dwelling that has received a short-term vacation rental permit. A rebuttable presumption arises that, whenever there is an occupant(s), paying rent or not, of a residential dwelling that has received a short-term vacation rental permit, the requirements of this chapter shall apply, including but not limited to any suspension or other modifications imposed on a short-term vacation rental permit as set forth in this chapter. The city manager or authorized designee shall have the authority to implement any necessary or appropriate policies and procedures to apply the rebuttable presumption set forth in this section. (Ord. 619 § 1, Exh. A, 12-17-2024; Ord. No. 607, Exh. A, 12-5-2023; Ord. 590 § 1(Exh. A), 3-16-2021; Ord. 586 § 1(Exh. A), 12-15-2020; Ord. 572 § 1, 2018; Ord. 563 § 1, 2017; Ord. 501 § 2, 2012) ORDINANCE NO. XXX EXHIBIT A ADOPTED: _____________, 2026 224 Created: 2026-01-28 09:56:34 [EST] (Supp. No. 7, Update 3) Page 2 of 8 3.25.030 Definitions. For purposes of this chapter, the following words and phrases shall have the meaning respectively ascribed to them by this section: "Advertise," "advertisement," "advertising, "publish," and "publication" mean any and all means, whether verbal or written, through any media whatsoever whether in use prior to, at the time of, or after the enactment of the ordinance adding this definition, used for conveying to any member or members of the public the ability or availability to rent a short-term vacation rental unit as defined in this section, or used for conveying to any member or members of the public a notice of an intention to rent a short-term vacation rental unit as defined in this section. For purposes of this definition, the following media are listed as examples, which are not and shall not be construed as exhaustive: verbal or written announcements by proclamation or outcry, newspaper advertisement, magazine advertisement, handbill, written or printed notice, printed or poster display, billboard display, e-mail or other electronic/digital messaging platform, electronic commerce/commercial Internet websites, and any and all other electronic media, television, radio, satellite-based, or Internet website. "Applicable laws, rules and regulations" means any laws, rules, regulations and codes (whether local, state or federal) pertaining to the use and occupancy of a privately owned dwelling unit as a short-term vacation rental. "Applicant" means the owner of the short-term vacation rental unit. "Authorized agent or representative" means a designated agent or representative who is appointed by the owner and is also responsible for compliance with this chapter with respect to the short-term vacation rental unit. "Booking transaction" means any reservation or payment service provided by a person or entity who facilitates a home-sharing or vacation rental (including short-term vacation rental) transaction between a prospective occupant and an owner or owner's authorized agent or representative. "City manager" means that person acting in the capacity of the city manager for the City of La Quinta or authorized designee. "Declaration of non-use" means the declaration described in Section 3.25.050. "Dwelling" has the same meaning as set forth in Section 9.280.030 (or successor provision, as may be amended from time to time) of this code; "dwelling" does not include any impermanent, transitory, or mobile means of temporary lodging, including but not limited to mobile homes, recreational vehicles (RVs), car trailers, and camping tents. "Estate home" is defined as a single-family detached residence with five (5) or more bedrooms, subject to evaluation criteria and inspection of the property pursuant to Section 3.25.060(D)(1). An estate home is a sub-type of short-term vacation rental unit and shall be subject to a general short-term vacation rental permit, primary residence short-term vacation rental permit, or homeshare short-term vacation rental permit, as applicable, pursuant to this chapter. "General short-term vacation rental permit" is a type of short-term vacation rental permit that is neither a homeshare short-term vacation rental permit nor a primary residence short-term vacation rental permit. “Good guest brochure” and "Good neighbor brochure" means a document prepared by the city that summarizes the general rules of conduct, consideration, and respect, including, without limitation, provisions of this code and other applicable laws, rules or regulations pertaining to the use and occupancy of short-term vacation rental units. "Homeshare short-term vacation rental permit" is a type of short-term vacation rental permit whereby the owner hosts visitors in the owner's dwelling, for compensation, for periods of thirty (30) consecutive calendar days or less, while the owner lives on-site and in the dwelling, throughout the visiting occupant's stay. 225 Created: 2026-01-28 09:56:34 [EST] (Supp. No. 7, Update 3) Page 3 of 8 "Hosting platform" means a person or entity who participates in the home-sharing or vacation rental (including short-term vacation rental) business by collecting or receiving a fee, directly or indirectly through an agent or intermediary, for conducting a booking transaction using any medium of facilitation, including but not limited to the Internet. "Large lot" means a single "parcel," as defined in Section 9.280.030 (or successor provision, as may be amended from time to time) of this code, that meets all of the criteria set forth in subsection (A) of Section 3.25.057. "Local contact person" means the person designated by the owner or the owner's authorized agent or representative who shall be available twenty-four (24) hours per day, seven (7) days per week with the ability to respond to the location within thirty (30) minutes for the purpose of: (1) taking remedial action to resolve any complaints; and (2) responding to complaints regarding the condition, operation, or conduct of occupants of the short-term vacation rental unit. A designated local contact person must obtain a business license otherwise required by Sections 3.24.060 and 3.28.020 (or successor provisions, as may be amended from time to time) of this code. “Long-term rental,” solely for purposes of this chapter, means any rental that is not a short-term vacation rental, as defined in this chapter. "Management company" means any individual or entity, whether for profit or nonprofit, and regardless of entity type, such as a limited liability company, corporation, or sole proprietorship, that is retained by an owner to be the owner's authorized agent or representative, or is the owner of a short-term vacation rental unit subject to this chapter, and is engaged in or represents itself to be engaged in the business of managing real property. "Multi-unit lock-off STVR unit" means a specific design and construction of a single-family detached dwelling or multi-family attached unit(s) dwelling, which construction is designed to allow sections of such dwelling to be locked-off and separated into individual stand-alone units and meets one (1) or more of the exemptions set forth in Section 3.25.055. The design and construction of a multi-unit lock-off STVR unit provides at a minimum for: a) Independent living facilities within the space secured by a lock-off door(s), b) Separate access to the exterior area(s) and public right-of-way without the need to enter or walk through the primary living area of the dwelling or other lock-off STVR units, and c) Permanent provisions for sleeping and sanitation (bathroom) within the space secured by a lock-off door(s). Examples of multi-unit lock-off STVR units include a dwelling that has "hotel- or motel-like" exterior access door(s) and interior security door(s) that can be secured from either side between two (2) stand-alone units where each stand-alone unit has the ability to secure itself from the other adjacent unit; or, a two (2)-story dwelling (such as a two (2)-story duplex) in which the first floor and second floor are separate lock-off STVR units, and the first and second floors each have their own independent exterior access to the exterior areas and public right-of-way. A multi-unit lock-off STVR unit is a sub-type of short-term vacation rental unit and shall be subject to a general short- term vacation rental permit or primary residence short-term vacation rental permit, as applicable, pursuant to this chapter. "Notice of permit modification, suspension or revocation" means the notice the city may issue to an applicant, authorized agent or representative, local contact person, occupant, owner, responsible person, or any other person or entity authorized to be issued such notice under this code for a short-term vacation rental unit, upon a determination by the city of a violation of this chapter or other provisions of this code relating to authorized uses of property subject to this chapter. "Occupant" means any person(s) occupying the dwelling at any time. "Owner" means the person(s) or entity(ies) that hold(s) legal and/or equitable title to the subject short-term vacation rental unit. 226 Created: 2026-01-28 09:56:34 [EST] (Supp. No. 7, Update 3) Page 4 of 8 "Primary residence" means a dwelling where an owner spends the majority of the calendar year on the property used as a short-term vacation rental unit, and the property is identified in the Riverside County assessor's record as the owner's primary residence. "Primary residence short-term vacation rental permit" is a type of short-term vacation rental permit whereby the short-term vacation rental unit is the owner's primary residence, as defined herein in this section. "Property" means a residential legal lot of record on which a short-term vacation rental unit is located. "Qualified and certified large lot" has the meaning as set forth in Section 3.25.057. "Rent" has the same meaning as set forth in Section 3.24.020 (or successor provision, as may be amended from time to time) of this code. "Rental agreement" means a written or verbal agreement for use and occupancy of a privately - owned residential dwelling, including a dwelling that has been issued a short-term vacation rental permit, including or a dwelling that may have a short-term vacation rental permit which has been or is under suspension. "Responsible person" means the signatory of an rental agreement for the rental, use and occupancy of a short- term vacation rental unit, and/or any person(s) occupying the short-term vacation rental unit without a rental agreement, including but with the permission of the owner(s), owner's authorized agent(s) or representative(s), or local contact(s), and their guests, who shall be an occupant of that short-term vacation rental unit, who is at least twenty-one (21) years of age, and who is legally responsible for ensuring that all occupants of the short-term vacation rental unit and/or their guests comply with all applicable laws, rules and regulations pertaining to the use and occupancy of the subject short-term vacation rental unit. "Short-term vacation rental permit" means a permit that permits the use of a privately owned residential dwelling as a short-term vacation rental unit pursuant to the provisions of this chapter, and which incorporates by consolidation a transient occupancy permit and a business license otherwise required by Sections 3.24.060 and 3.28.020 (or successor provisions, as may be amended from time to time) of this code. A short-term vacation rental permit is one (1) of the following types: (1) general short-term vacation rental permit, (2) primary residence short-term vacation rental permit, or (3) homeshare short-term vacation rental permit, as defined in this section. “Short-term vacation rental” and “short-term rental” mean any privately owned residential dwelling rented for transient use for a period of thirty (30) consecutive calendar days or less. When calculating thirty (30) consecutive calendar days or less, count portions of calendar days as full days. "Short-term vacation rental unit" means any privately owned residential dwelling, such as, but not rented for transient use for a period of thirty (30) consecutive calendar days or less. For purposes of this definition: (a) “residential dwelling” includes, but is not limited to, a single-family detached or multiple-family attached unit, apartment house, condominium, cooperative apartment, duplex, or any portion of such dwellings and/or property and/or yard features appurtenant thereto, rented for occupancy and/or occupied for dwelling, lodging, or any (b) “transient use”, includesing, but is not limited to, dwelling or lodging purposes, such as sleeping overnight sleeping purposes; for a period of and (c) when calculating thirty (30) consecutive calendar days or less, counting portions of calendar days as full days, by any person(s) with or without a rental agreement . For avoidance of doubt, the existence of a dwelling with a lawful occupant who has a rental agreement for more than thirty (30) consecutive days shall not be conclusive that a short-term vacation rental permit is not required if any other occupant is a subtenant, tenant, or transient, using that dwelling for a transient use for a period of thirty (30) consecutive days or less (see subsection (T) of Section 3.25.070). "STVR" may be used by city officials as an abbreviation for "short-term vacation rental." "Subtenant" means any person subject to, or claiming to be subject to, an arrangement in which a privately owned residential dwelling, rented to a lawful occupant, is in turn sub-rented or sub-leased by that lawful occupant to another person or third party, where said arrangement allows for the use and/or occupancy of the dwelling, 227 Created: 2026-01-28 09:56:34 [EST] (Supp. No. 7, Update 3) Page 5 of 8 whether or not said arrangement is with or without a rental agreement , and whether or not the lawful occupant still occupies the residential dwelling. "Suspension" means that short-term vacation rental permit that is suspended pursuant to Section 3.25.090. "Tenant" or "transient," for purposes of this chapter, means any person, including any Ssubtenant, who seeks to rent or who does rent, or who occupies or seeks to occupy, or has a right to occupy, a privately owned residential dwelling, for thirty (30) consecutive calendar days or less, a short-term vacation rental unit. (Ord. 619 § 1, Exh. A, 12-17-2024; Ord. No. 607, Exh. A, 12-5-2023; Ord. 595 § 1(Exh. A), 6-15-2021; Ord. 590 § 1(Exh. A), 3-16-2021; Ord. 586 § 1(Exh. A), 12-15-2020; Ord. 572 § 1, 2018; Ord. 563 § 1, 2017; Ord. 501 § 2, 2012) 3.25.070 Operational requirements and standard conditions. A. The owner and/or owner's authorized agent or representative shall use reasonably prudent business practices to ensure that the short-term vacation rental unit is used in a manner that complies with all applicable laws, rules and regulations pertaining to the use and occupancy of the subject short-term vacation rental unit. 1. An estate home may be established for short-term vacation rental use subject to evaluation and inspection of the property pursuant to Section 3.25.060(D)(1). 2. An estate home established for short-term vacation rental use is required to be equipped with a noise monitoring device(s) that is operable at all times. B. The responsible person(s) shall be an occupant(s) of the short-term vacation rental unit for which he, she or they signed a rental agreement for such rental, use and occupancy., and/or The responsible person(s) shall also be responsible for any person(s) occupying the short-term vacation rental unit without a rental agreement, including with the permission of the owner(s), owner's authorized agent(s) or representative(s), or local contact(s) and their guests. The responsible person(s) shall be legally responsible for ensuring that all occupants of the short-term vacation rental unit and/or their guests comply with all applicable laws, rules and regulations pertaining to the use and occupancy of the subject short-term vacation rental unit. The responsible person(s) shall not sub-rent or sub-lease the short-term vacation rental unit to a Ssubtenant unless said sub-rental or sub-leasing is in full compliance with this chapter. No non-permanent improvements to the property, such as tents, trailers, or other mobile units, may be used as short-term vacation rentals. The total number of occupants, including the responsible person(s) and children regardless of age, allowed to occupy any given short-term vacation rental unit may be within the ranges set forth in the table below. By the issuance of a short-term vacation rental permit, the city or its authorized designees, including police, shall have the right to conduct a count of all persons occupying the short-term vacation rental unit in response to a complaint or any other legal grounds to conduct an inspection resulting from the use of the short-term vacation rental unit, and the failure to allow the city or its authorized designees the ability to conduct such a count may constitute a violation of this chapter. The city council may by resolution further restrict occupancy levels provided those restrictions are within the occupancy ranges set forth below. Number of Bedrooms Total of Overnight* Occupants Total Daytime** Occupants (Including Number of Overnight Occupants) 0—Studio 2 2—8 1 2—4 2—8 2 4—6 4—8 3 6—8 6—12 4 8—10 8—16 5 10—12 10—18 6 12—14 12—20 228 Created: 2026-01-28 09:56:34 [EST] (Supp. No. 7, Update 3) Page 6 of 8 7 14 14—20 8 16 16—22 9 18 18—24 *Overnight (10:01 p.m.—6:59 a.m.) **Daytime (7:00 a.m.—10:00 p.m.) C. The person(s) listed as the local contact person in the short-term vacation rental unit's online registration profile shall be available twenty-four (24) hours per day, seven (7) days per week, with the ability to respond to the location within thirty (30) minutes to complaints regarding the condition, operation, or conduct of occupants of the short-term vacation rental unit or their guests. The person(s) listed as a local contact person shall be able to respond personally to the location, or to contact the owner or the owner's authorized agent or representative to respond personally to the location, within thirty (30) minutes of notification or attempted notification by the city or its authorized short-term vacation rental designated hotline service provider. No provision in this section shall obligate the city or its authorized short-term vacation rental designated hotline service provider to attempt to contact any person or entity other than the person(s) listed as the local contact person. D. The owner, the owner's authorized agent or representative and/or the owner's designated local contact person shall use reasonably prudent business practices to ensure that the occupants and/or guests of the short-term vacation rental unit do not create unreasonable or unlawful noise or disturbances, engage in disorderly conduct, or violate any applicable law, rule or regulation pertaining to the use and occupancy of the subject short-term vacation rental unit. E. Occupants of the short-term vacation rental unit shall comply with the standards and regulations for allowable noise at the property in accordance with Sections 9.100.210 and 11.08.040 (or successor provision, as may be amended from time to time) of this code. No radio receiver, musical instrument, phonograph, compact disk player, loudspeaker, karaoke machine, sound amplifier, or any machine, device or equipment that produces or reproduces any sound shall be used outside or be audible from the outside of any short- term vacation rental unit between the hours of 10:00 p.m. and 7:00 a.m. Pacific Standard Time. Observations of noise related violations shall be made by the city or its authorized designee from any location at which a city official or authorized designee may lawfully be, including but not limited to any public right-of-way, any city-owned public property, and any private property to which the city or its authorized designee has been granted access. F. Prior to occupancy of a short-term vacation rental unit, the owner (s) or the owner's authorized agent(s) or representative(s) and/or the owner’s designated local contact person shall: 1. Obtain the contact information of the responsible person; 2. Provide copies of all electronically distributed short-term vacation rental information from the city, including anythe good guest brochure to the responsible person and each occupant of the short-term vacation rental unit, and post a copy of the short-term vacation rental permit and a copy of the good guest brochure in a conspicuous location within the short-term vacation rental unit, in a manner that allows for the information to be viewed in its entirety; and require such responsible person to execute a formal acknowledgement that he/she/they is/are legally responsible for compliance by all occupants of the short-term vacation rental unit and their guests with all applicable laws, rules and regulations pertaining to the use and occupancy of the short-term vacation rental unit. This information shall be maintained by the owner or the owner's authorized agent or representative for a period of three (3) years and be made readily available upon request of any officer of the city responsible for the enforcement of any provision of this code or any other applicable law, rule or regulation pertaining to the use and occupancy of the short-term vacation rental unit. 229 Created: 2026-01-28 09:56:34 [EST] (Supp. No. 7, Update 3) Page 7 of 8 G. The owner, the owner's authorized agent or representative and/or the owner's designated local contact person shall, upon notification or attempted notification that the responsible person and/or any occupant and/or guest of the short-term vacation rental unit has created unreasonable or unlawful noise or disturbances, engaged in disorderly conduct, or committed violations of any applicable law, rule or regulation pertaining to the use and occupancy of the subject short-term vacation rental unit, promptly respond within thirty (30) minutes to immediately halt and prevent a recurrence of such conduct by the responsible person and/or any occupants and/or guests. Failure of the owner, the owner's authorized agent or representative and/or the owner's designated local contact person to respond to calls or complaints regarding the condition, operation, or conduct of occupants and/or guests of the short-term vacation rental unit within thirty (30) minutes, shall be subject to all administrative, legal and equitable remedies available to the city. H. The owner of a short-term vacation rental unit that has a valid homeshare short-term vacation rental permit shall occupy the dwelling during the transient stay. A violation of any provision of this chapter, this code, or any other applicable federal, state, or local laws or codes, by the owner, owner's authorized agent or representative and/or the owner's designated local contact person shall be subject to all administrative, legal and equitable remedies available to the city. I. Trash and refuse shall not be left or stored within public view, except in proper containers for the purpose of collection by the city's authorized waste hauler on scheduled trash collection days. The owner, the owner's authorized agent or representative shall use reasonably prudent business practices to ensure compliance with all the provisions of Chapter 6.04 (Solid Waste Collection and Disposal) (or successor provision, as may be amended from time to time) of this code. J. Signs may be posted on the premises to advertise the availability of the short-term vacation rental unit as provided for in Chapter 9.160 (Signs) (or successor provision, as may be amended from time to time) of this code. K.ReservedThe owner, the owner's authorized agent or representative and/or the owner's designated local contact person shall post a copy of the short-term vacation rental permit and a copy of the good guest brochure in a conspicuous place within the short-term vacation rental unit, and a copy of the good guest brochure shall be provided to each occupant of the subject short-term vacation rental unit . L. Unless otherwise provided in this chapter, the owner and/or the owner's authorized agent or representative shall comply with all provisions of Chapter 3.24 concerning transient occupancy taxes, including, but not limited to, submission of a monthly return in accordance with Section 3.24.080 (or successor provisions, as may be amended from time to time) of this code, which shall be filed monthly even if the short-term vacation rental unit was not rented during each such month. M. Guesthouses, detached from the primary residential dwelling on the property, or the primary residential dwelling on the property, may be rented pursuant to this chapter as long as the guesthouse and the primary residential dwelling are rented to one (1) party; provided, however, that this Subsection (M) does not apply to multi-unit lock-off STVR units. N. The owner and/or the owner's authorized agent or representative shall post the number of authorized bedrooms, and the current short-term vacation rental permit number , and whether the short-term vacation rental unit is permitted as a “Homeshare,” as defined in this chapter, at the beginning or top of any advertisement that promotes the availability or existence of a short-term vacation rental unit; provided, however, this requirement may be satisfied if a hosting platform used by the owner and/or owner's authorized agent or representative provides a designated field(s) to post the number of authorized bedrooms and the current short-term vacation rental permit number for the short-term vacation rental unit. In the instance of audio-only advertising of the same, the short-term vacation rental permit number and the number of authorized bedrooms, and whether the short-term vacation rental unit is permitted as a “Homeshare” shall be read as part of the advertisement. 230 Created: 2026-01-28 09:56:34 [EST] (Supp. No. 7, Update 3) Page 8 of 8 O. The owner and/or owner's authorized agent or representative shall operate a short-term vacation rental unit in compliance with any other permits or licenses that apply to the property, including, but not limited to, any permit or license needed to operate a special event pursuant to Section 9.60.170 (or successor provision, as may be amended from time to time) of this code. The city may limit the number of special event permits issued per year on residential dwellings pursuant to Section 9.60.170 (or successor provision, as may be amended from time to time). P. The city manager, or designee, shall have the authority to impose additional conditions on the use of any given short-term vacation rental unit to ensure that any potential secondary effects unique to the subject short-term vacation rental unit are avoided or adequately mitigated, including, but not limited to, a mitigating condition that would require the installation of a noise monitoring device to keep time-stamped noise level data from the property that will be made available to the city upon city's reasonable request. Q. The standard conditions set forth herein may be modified by the city manager, or designee, upon request of the owner or the owner's authorized agent or representative based on site-specific circumstances for the purpose of allowing reasonable accommodation of a short-term vacation rental unit. All requests must be in writing and shall identify how the strict application of the standard conditions creates an unreasonable hardship to a property such that, if the requirement is not modified, reasonable use of the property as a short-term vacation rental unit would not be allowed. Any hardships identified must relate to physical constraints to the subject site and shall not be self-induced or economic. Any modifications of the standard conditions shall not further exacerbate an already existing problem. R. On-site parking shall be on an approved driveway, garage, and/or carport areas only; this section does not impose restrictions on public street parking regulations. Recreational vehicles may be parked in accordance with the provisions set forth in Section 9.60.130 (or successor provision, as may be amended from time to time) of this code. S. No "apartment," "apartment building," or "apartment project," as defined in Section 9.280.030 (or successor provision, as may be amended from time to time) of this code shall be eligible to apply for or obtain a short- term vacation rental permit. T. A privately owned residential dwelling, regardless of whether it is permitted or not as a short-term vacation rental unit, rented for a period of thirty one (31) consecutive calendar days or more, counting portions of calendar days as full days, by any person(s), with or without a rental agreement, that is subsequently sub- rented or sub-leased to a Subtenant for a period of thirty (30) consecutive days or less, counting portions of calendar days as full days, constitutes use of the privately owned residential dwelling as a short-term vacation rental unit and is subject to the provisions of this chapter. This Subsection (T) is declaratory of existing law under this chapter. (Ord. 619 § 1, Exh. A, 12-17-2024; Ord. No. 608, § 1, 12-5-2023; Ord. No. 607, Exh. A, 12-5-2023; Ord. 590 § 1(Exh. A), 3-16-2021; Ord. 586 § 1(Exh. A), 12-15-2020; Ord. 577 § 1, 2019; Ord. 572 § 1, 2018; Ord. 563 § 1, 2017; Ord. 501 § 2, 2012) 231 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LA QUINTA ) I, MONIKA RADEVA, 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 _____(date) day of ______(month), 2026, and was adopted at a regular meeting held on the ____(date) day of ______(month), 2026, not being less than 5 days after the date of introduction thereof. I further certify that the foregoing Ordinance was posted in three places within the City of La Quinta as specified in the Rules of Procedure adopted by City Council Resolution No. 2022-027. ________________________ MONIKA RADEVA, City Clerk City of La Quinta, California DECLARATION OF POSTING I, MONIKA RADEVA, City Clerk of the City of La Quinta, California, do hereby certify that the foregoing ordinance was posted on , 2026, pursuant to Council Resolution. ________________________ MONIKA RADEVA, City Clerk City of La Quinta, California 232 AGENDA TITLE: ADOPT RESOLUTION TO APPROVE THE PROPERTY LOCATED AT 57600 CORAL MOUNTAIN COURT AS A QUALIFIED AND CERTIFIED LARGE LOT PURSUANT TO SECTION 3.25.057 OF THE LA QUINTA MUNICIPAL CODE RECOMMENDATION Adopt a resolution to approve the property located at 57600 Coral Mountain Court as a Qualified and Certified Large Lot pursuant to Section 3.25.057 of the La Quinta Municipal Code. EXECUTIVE SUMMARY Effective May 20, 2021, Section 3.25.055 of the La Quinta Municipal Code (LQMC) established a ban on the issuance of new short-term vacation rental (STVR) permits for properties located within non-exempt areas in the city. Effective January 4, 2024, Section 3.25.057 of the LQMC provides that properties may apply for and be approved as a “Qualified and Certified Large Lot,” as defined, and shall be exempted from the ban on the issuance of new STVR permits in non- exempt areas as set forth in LQMC Section 3.25.055, if certain criteria are met. The property located in south La Quinta, at 57600 Coral Mountain Court (Property), in the Coral Mountain Estates gated residential development, as depicted in the enclosed vicinity map as Attachment 1, has met all required criteria for a Qualified and Certified Large Lot and seeks exemption from the ban. FISCAL IMPACT If the Property is approved as Qualified and Certified Large Lot, it will be eligible to obtain an STVR permit, which would generate 10% transient occupancy tax for the City on STVR stays in accordance with Chapter 3.24 of the LQMC. BACKGROUND/ANALYSIS The City has the authority to regulate residential uses operating within the city. LQMC Chapter 3.25 regulates the City’s STVR Program, including but not limited to STVR permitted uses, STVR processing and permitting procedures, and other related STVR requirements, violations, and fines. PUBLIC HEARING ITEM NO. 1 233 City of La Quinta CITY COUNCIL MEETING: March 17, 2026 STAFF REPORT Effective May 20, 2021, Section 3.25.055 of the LQMC established a ban on the issuance of new STVR permits for properties located within non-exempt areas in the city. Effective January 4, 2024, Section 3.25.057 of the LQMC provides that properties may apply for and be approved as a “Qualified and Certified Large Lot,” as defined, and shall be exempted from the ban on the issuance of new STVR permits in non-exempt areas as set forth in Section 3.25.055 of the LQMC, if certain criteria are met. The Property submitted a Qualified and Certified Large Lot application (LLQC 2025-0001) seeking exemption from the ban, and has met all required criteria as follows: 1)The Property has a “Lot Area,” as defined, comprised of a single parcel of 2.15 acres, or 93,654 square feet, as shown in the enclosed Riverside County Parcel Report included as Attachment 2, which is greater than the Lot Area requirement of no less than 25,000 square feet pursuant to Section 3.25.057(A)(1) of the LQMC. 2)The Property is comprised of a main dwelling and a detached casita, both consisting of 13,280 square feet in combined total living area available for use. 3)The total number of approved bedrooms shall be established at the issuance of an STVR permit and shall be verified at least annually during the STVR permit renewal. The Riverside County Parcel Report lists five (5) bedrooms for this Property, three (3) in the main dwelling and two (2) in the detached casita. 4)The Property shall be subject to the allowed daytime and overnight occupancy limits established pursuant to Section 3.25.070(B) of the LQMC based on the approved number of bedrooms upon issuance of an STVR permit. For reference, a 5-bedroom property is allowed 10 to 12 overnight occupants, and 10 to 18 daytime occupants. 5)The Property is located within the gated Coral Mountain Estates residential development, comprised of four (4) common interest lots, owned by three (3) separate private parties, and governed by a nonprofit mutual benefit association (Association) registered with the California Secretary of State in 2022. This development does not have recorded conditions, covenants, and restrictions (CC&Rs). Instead, an Amendment to Declaration for Coral Mountain Estates a Planned Development (DOC # 2023-0050231) was recorded with Riverside County on February 22, 2023, superseding the original unincorporated homeowners association formed in 2003 and recorded on August 11, 2004, provided for in the original declaration (DOC # 2004-0627750). The Association’s Articles of Incorporation and its bylaws are enclosed as Attachment 3. The recorded Amendment to Declaration is enclosed as “Exhibit A,” and the Architectural Guidelines, specifically an amendment thereto, dated November 10, 2024, authorizing the use of the Property as an STVR unit (see page 251 of this report) in enclosed “Exhibit B” to the proposed Resolution. 234 6) The use of the Property as an STVR unit is not prohibited or otherwise inconsistent with any recorded instruments governing the use of the Property. 7) On-site inspection of the Property was conducted on February 4, 2026, (the inspection report is enclosed as Attachment 4) by the City’s Municipal Code Compliance Office to verify: a. The locations of outdoor gathering/living spaces and entertainment areas, including but not limited to any pool(s), spa(s), BBQ areas, courtyard(s), are as shown in enclosed “Exhibit C – Site and Parking Plan” to the Resolution; and the physical distance and their proximity to neighboring properties is unlikely to cause a disturbance. b. There is adequate on-site parking for use of the Property as an STVR unit, in accordance with Section 3.25.050(F) of the LQMC, as shown in enclosed “Exhibit C – Site and Parking Plan” to the Resolution – three (3) parking spaces would be required for this Property based on the allowed number of overnight guests (10 to 12 people), if an STVR permit were to be issued for the five (5) bedrooms; and the City’s Good Guest and Good Neighbor brochures recommend five (5) parking spaces. The Property has three (3) garage spaces and eight (8) driveway spaces available, which exceed both, the required and recommended parking. 8) The single parcel is not, nor will the single parcel ever be for the duration of the Property’s approval as a Qualified and Certified Large Lot, subject to a subdivision, lot-line adjustment, lot merger, or any other alteration of the single parcel under the Subdivision Map Act in Division 2 (commencing with Section 64410) of Title 7 of the California Government Code or under Title 13 of the LQMC, which would result in the single parcel no longer being in compliance with the original approval by the City under Section 3.25.057 of the LQMC pursuant to the proposed Resolution. 9) Council authorizes the City Manager, or designee(s), to execute a land use covenant (Notice, Agreement, and Covenant Affecting Real Property), enclosed as Attachment 5, in a form approved by the City Attorney and executed by the owner of the Property, memorializing the terms and conditions applicable to the Property, for the duration of the Property’s approval as a Qualified and Certified Large Lot for use as an STVR unit, with said land use covenant to include the proposed Resolution granting Council approval of the Property as Qualified and Certified Large Lot, along with all exhibits, and conditions of approval, if any, imposed by Council at the public hearing. The executed land use covenant shall be recorded against the Property in the Riverside County Recorder’s Office no later than sixty (60) days after the adoption of the proposed Resolution, or such later date as may be mutually agreed upon by the owner of the Property and the City Manager. 10) As of this writing, there are no active STVR permits within a 500-foot radius from the Property. 235 AGENCY AND PUBLIC REVIEW Public Hearing Notice This item was advertised in The Desert Sun newspaper on February 27, 2026; and public hearing notices were mailed to all property owners within 500 feet of the Property. As of this writing, no public comments have been received. ENVIRONMENTAL REVIEW The Design and Development Department has determined this project to be exempt from environmental review pursuant to California Environmental Quality Act Section 15061(b)(3) – Common Sense Exemption and Section 15301 – Existing Facilities. ALTERNATIVES Council may elect not to adopt the proposed Resolution and not to approve the Property as a Qualified and Certified Large Lot. Prepared by: Olivia Rodriguez, Deputy City Clerk Approved by: Monika Radeva, City Clerk Attachments: 1. Vicinity Map, including 500-foot radius 2. Riverside County Parcel Report 3. Coral Mountain Estates HOA – 2022 California Secretary of State Articles of Incorporation and 2022 Bylaws 4. Property Inspection Report, dated February 4, 2026 5. Notice, Agreement, and Covenant Affecting Real Property 236 RESOLUTION NO. 2026 – XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING THE PROPERTY LOCATED AT 57600 CORAL MOUNTAIN COURT, LA QUINTA, CALIFORNIA, IDENTIFIED AS ASSESSOR PARCEL NUMBER 762-440-035, AS A “QUALIFIED AND CERTIFIED LARGE LOT” PURSUANT TO SECTION 3.25.057 OF THE LA QUINTA MUNICIPAL CODE CASE NUMBER: LARGE LOT QUALIFIED AND CERTIFIED 2025-0001 APPLICANT: KEVIN MURRAY OWNER: KEVIN MURRAY & SHERRI MURRAY WHEREAS, the City has the authority to regulate residential uses, including STVR uses, operating within the City; and WHEREAS, Chapter 3.25 of the La Quinta Municipal Code (LQMC) regulates short-term vacation rentals (STVRs) in the City, including but not limited to STVR permitted uses, STVR processing and permitting procedures, and other related STVR requirements, violations, and fines; and WHEREAS, effective May 20, 2021, Section 3.25.055 of the LQMC established a ban on the issuance of new STVR permits for properties located within non-exempt areas in La Quinta; and WHEREAS, effective January 4, 2024, Section 3.25.057 of the LQMC provides that properties may apply for and be approved as a “Qualified and Certified Large Lot,” as defined, and shall be exempted from the ban on the issuance of new STVR permits in non-exempt areas as set forth in Section 3.25.055 of the LQMC, if certain criteria are met; and WHEREAS, the City Council of the City of La Quinta, California, did, on March 17, 2026, hold a duly noticed Public Hearing to consider a request for approval of the property located in mid La Quinta at 57600 Coral Mountain Court, La Quinta, California (the “Property”), as a “Qualified and Certified Large Lot,” as defined, in accordance with LQMC Section 3.25.057; and WHEREAS, the City published a public hearing notice in The Desert Sun newspaper on February 27, 2026, as prescribed by the LQMC and State Planning and Zoning Law (Gov. Code Section 65000 et seq.); public hearing notices were also mailed to all property owners within 500 feet of the Property; and 237 Resolution No. 2026 – XXX Qualified and Certified Large Lot – 57600 Coral Mountain Court Adopted: March 17, 2026 Page 2 of 4 WHEREAS, upon hearing and considering all testimony and arguments, the City Council approves the Property as a Qualified and Certified Large Lot for the following reasons: 1) The Property has a “Lot Area,” as defined, comprised of a single parcel of 2.15 acres, or 93,654 square feet, which is greater than the Lot Area requirement of no less than 25,000 square feet pursuant to Section 3.25.057(A)(1) of the LQMC; and 2) The Property has an existing main dwelling and one (1) accessory dwelling unit (detached casita), with a combined total of 13,280 square feet, between the two units, of living area available for use; and 3) The total number of approved bedrooms shall be established at the issuance of an STVR permit, and shall be verified at least annually during the STVR permit renewal. Riverside County Assessor records show the property has five (5) bedrooms, three (3) in the main dwelling and two (2) in the accessory dwelling unit; and 4) The Property shall be subject to the allowed daytime and overnight occupancy limits established pursuant to Section 3.25.070(B) of the LQMC based on the approved number of bedrooms; and 5) The Property is located within the gated Coral Mountain Estates residential development, comprised of four (4) common interest lots, and governed by a nonprofit mutual benefit association (Association) registered with the California Secretary of State in 2022. This development does not have recorded conditions, covenants, and restrictions (CC&Rs). Instead, an Amendment to Declaration for Coral Mountain Estates a Planned Development (DOC # 2023-0050231) was recorded with Riverside County on February 22, 2023, superseding the original unincorporated homeowners association formed in 2003 and recorded on August 11, 2004, provided for in the original declaration (DOC # 2004-0627750). The Association’s recorded Amendment to Declaration is enclosed as “Exhibit A,” incorporated herewith by this reference. The Architectural Guidelines, specifically an amendment thereto, dated November 10, 2024, authorizing the use of the Property as an STVR unit is enclosed as “Exhibit B” and incorporated herewith by this reference. 6) The use of the Property as an STVR unit is not prohibited or otherwise inconsistent with any recorded instruments governing the use of the Property; and 7) On-site inspection of the Property was conducted on February 4, 2026, by the City’s Municipal Code Compliance Office to verify: a. The locations of outdoor gathering/living spaces and entertainment areas, including but not limited to any pool(s), spa(s), BBQ areas, courtyard(s), are 238 Resolution No. 2026 – XXX Qualified and Certified Large Lot – 57600 Coral Mountain Court Adopted: March 17, 2026 Page 3 of 4 as shown in enclosed “Exhibit C – Site and Parking Plan” to the Resolution, incorporated herewith by this reference; and the physical distance and their proximity to neighboring properties is unlikely to cause a disturbance; and b. There is adequate on-site parking for use of the Property as an STVR unit, in accordance with Section 3.25.050(F) of the LQMC, as shown in enclosed “Exhibit C – Site and Parking Plan” to the Resolution – three (3) parking spaces would be required for this Property based on the allowed number of overnight guests (10 to 12 people), if an STVR permit were to be issued for the five (5) bedrooms; and the City’s Good Guest and Good Neighbor brochures recommend five (5) parking spaces. The Property has three (3) garage spaces and eight (8) driveway spaces available, which exceed both, the required and recommended parking; and 8) The single parcel is not, nor will the single parcel ever be for the duration of the Property’s approval as a Qualified and Certified Large Lot, subject to a subdivision, lot-line adjustment, lot merger, or any other alteration of the single parcel under the Subdivision Map Act in Division 2 (commencing with Section 64410) of Title 7 of the California Government Code or under Title 13 of the LQMC, which would result in the single parcel no longer being in compliance with the original approval by the City under Section 3.25.057 of the LQMC pursuant to the proposed Resolution; and 9) The City Council does hereby authorize the City Manager, or designee(s), to execute a land use covenant (the “Notice, Agreement, and Covenant Affecting Real Property”), in a form approved by the City Attorney and executed by the owner of the Property, memorializing the terms and conditions applicable to the Property, for the duration of the Property’s approval as a Qualified and Certified Large Lot for use as an STVR unit, with said land use covenant to include this Resolution, along with all Exhibits, and Conditions of Approval, if any, imposed by the City Council at the public hearing. The executed land use covenant shall be recorded against the Property in the Riverside County Recorder’s Office no later than sixty (60) days after the adoption of this Resolution, or such later date as may be mutually agreed upon by the owner of the Property and the City Manager. 10) There are a total of zero (0) active STVR permits within a 500-foot radius from the Property as of this writing. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: SECTION 1. The foregoing recitals are true and correct, and constitute the findings of the City Council in this case, and are incorporated herein by this reference. 239 Resolution No. 2026 – XXX Qualified and Certified Large Lot – 57600 Coral Mountain Court Adopted: March 17, 2026 Page 4 of 4 SECTION 2. The City Council does hereby approve the Property as a Qualified and Certified Large Lot pursuant to Section 3.25.057 of the LQMC. SECTION 3. This Resolution shall go into effect upon adoption and the City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City Council held on this 17th day of March, 2026, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ________________________ LINDA EVANS, Mayor City of La Quinta, California ATTEST: _________________________ MONIKA RADEVA, City Clerk City of La Quinta, California APPROVED AS TO FORM: ___________________________ WILLIAM H. IHRKE, City Attorney City of La Quinta, California 240 I RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: 2023-0050231 02/22/2023 11:52 AM Fee:$ 110.00Page 1 of a CRecort d u d in Offlcial Records Po�tn Y of RiversJdee er Al d ana Daniel E. Olivier, Esq, Nethery/Mueller/Olivier LLP Assessor-County Clerk-Recorder 1111 t�ri���,l�,rm,1,11 11141-750 Rancho Las Palmas Drive, Suite H-1 Rancho Mirage, CA 92270 AMENDMENT TO DECLARATION FOR CORAL MOUNTAIN ESTATES A PLANNED DEVELOPMENT l34 This Amendment to Declaration for Coral Mountain Estates a Planned Development (this "Amendment") dated for reference as of 1-\ -Z... \ 2023, is executed by and among Mark Andrew Engler and Mary Moore Engler, Trustees of the Mary Engler Family Trust dated June 12, 2021, the Augustine Band of Cahuilla Indians, and Rayson, LLC, a California limited liability company (collectively, the "Owners") with reference to the following: RECITALS A.On or about August 11, 2004, that certain Declaration for Coral Mountain Estates a Planned Development (the "Original Declaration") was recorded in the Official Records of Riverside County, California, as Instrument No. 2004-0627750. B.The Original Declaration covers certain real property more particulady described as Lots 1, 2, 3 and 4 and Lettered Lot A of Tract Map No. 29963 in the City of La Quinta, County of Riverside, State of California as per map filed in Book 340, Pages 36 and 37 of Maps, in the office the County Recorder of said County, together with Lettered Lot C of Tract Map No. 30834 in the City of La Quinta, County of Riverside, State of California as per map filed in Book 332, Pages 61 through 66 of Maps, in the office the County Recorder of said County (collectively, the "Property"). C.The Owners have formed a nonprofit mutual benefit corporation to replace and supersede the existing unincorporated homeowners association provided for in the Original Declaration. D.The Owners desire to am.end the Original Declaration as hereinafter provided in this Amendment. The Owners own all of the Lots (as defined in the Original Declaration) located in the Development. (as defined in the Original Declaration). NOW THEREFORE, the undersigned hereby am.ends the Original Declaration as set forth below: Resolution No. 2026 – XXX - EXHIBIT A Large Lot Qualified and Certified 2026-0001– 57600 Coral Mountain Court Adopted: March 17, 2026 241 1.The definition of "Association" as set forth in Article 1, Section 1.02 of theOriginal Declaration is hereby a.mended in its entirety to read as follows: "Association. "Association" means Coral Mountain Estates, Inc., a California non-profit mutual benefit corporation, the members of which are the Owners of the Lots in the Development. The Association is an "association" as defined in Section 4080 of the California Civil Code." 2.The first sentence of Article III, Section 3.01 is hereby amended in its entirety toread as follow: "The Association is a California nonprofit mutual benefit corporation." 3.All references in the Original Declaration to California Civil Code Sections 1350through 1378 shall be superseded by the corresponding new Sections found in California Civil Code Sections 4000 through 6150 pursuant to AB 805 (Stats 2012, c 180). The undersigned Owners are all of the owners of Lots in the Property and as such have the right to amend the Original Declaration in accordance with Section 12.2 of the Original Declaration. In witness thereof, this Amendment has been made and executed effective as of the date first above written. Mar Augustine Band of Cahuilla Indians Rayson, LLC By: ___________ _ By: _________ _ Name: Amanda Vance Name: Keven Murray Its: Authorized Representative Its: ------------ 242 NOTARY ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of theindividual who signed the document, to which this ce1tificate is attached, and not thetruthfulness, accuracy, 01· validity of that document.STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) On f..-l@ Z..I Ze1 2-1 • before me. °F><.,f/,'I. �{1.kl1.- • Notary Public. personallyappeared !MM 1£ �..1-M...,, r" � L� Md n\Ar1 }11t;"/N'-( f 1-(' t;i-who proved to me on the basis of satisfactoryevidence to be the person(s) whose name(s) is/are subsctibed to the within instrument and acknowledgedto me that he/she/they executed the same in his/her/tlleir authotized capacity(ies), and that by his/her/theirsignature(s) on the instrument the person(s). or the entity upon behalf of which the person(s) acted,executed the instrument.I certify under PENALTY of PERJURY under the laws of the State of California that theforegoing paragraph jg true and correct.(Seal)243 1. The definition of ''Association" as set forth in Article 1, Section 1.02 of theOriginal Declaration is hereby amended in its entirety to read as follows:"Association. "Association" means Coral Mountain Estates, Inc., a California non-profitmutual benefit corporation, the members of which are the Owners of the Lots in theDevelopment. The Association is an "association" as defined in Section 4080 of theCalifornia CiviJ Code."2. The first sentence of Article III, Section 3.01 is hereby amended in its entirety toread as follow: "The Association is a California nonprofit mutual benefit corporation."3. All references in the Original Declaration to California Civil Code Sections 1350through 1378 shall be superseded by the corresponding new Sections found in California CivilCode Sections 4000 through 6150 pursuant to AB 805 (Stats 2012_ c 180).The undersigned Owners are all of the owners of Lots in the Property and as suchhave the right to amend the Original Declaration in accordance with Section 12.2 of the OriginalDeclaration.In witness thereof, this Amendment has been made and executed effective as of the datefirst above written.Mark Andrew Engler, Trusteeand of Mary Moore Engler, TrusteeRayson, LLCBy: Nameti<:even MurrayIts: , 'f fdEf/!;J 244 NOTARY ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of theindividual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.ST ATE OF CALIFORNIA COUNTY OF RIVERSIDE ) ) ) . .,........._�_,__-�before fv fteu�J -4v1YK?Notary Public, personallyappeared ���--=�---1=L-!..i....:...=-_u;.�l/l�....::·(2::....__. who proved to me on the basis of satisfactory evidence to be the person<p whose name� is/¥'e subscribed to the within instrument and acknowledged to me that 1,&she/tt0 executed the same in)tWher/tMir authorized capacity(�), and that by �er/¥r signaturecr on the instrument the person<,), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY of PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. .. OMAR ACEVES ACiUlllll Ma11ry Public • C.llfQrnla I ltlv•r1lu Caunty CCllllffllHlon f 2J71056 14.y CGfflm, h�I,.. Nov 6, 101S (Seal) WITNESS my hand and official seal.� 245 1.The definition of "Association" as set forth in Article 1, Section 1.02 of the Original Declaration is hereby amended in its entirety to read as follows: "Association. "Association" means Coral Mountain Estates, Inc., a California non-profit mutual benefit corporation, the members of which are the Owners of the Lots in the Development. The Association is an "association" as defined in Section 4080 of the California Civil Code." 2.The first sentence of Article III, Section 3.01 is hereby amended in its entirety toread as follow: ''The Association is a California nonprofit mutual benefit corporation." 3.All references in the Original Declaration to California Civil Code Sections 1350 through 1378 shall be superseded by the corresponding new Sections found in California Civil Code Sections 4000 through 6150 pursuant to AB 805 (Stats 2012, c 180). The undersigned Owners are all of the owners of Lots in the Property and as such have the right to amend the Original Declaration in accordance with Section 12.2 of the Original Declaration. In witness thereof, this Amendment has been made and executed effective as of the date first above written. Mark Andrew Engler, Trustee Augustine Band of Cahuilla Indians By:------------Name: Amanda Vance Its: Authorized Representative Mary Moore Engler, Trustee 246 PETER ALDANA COUNTY OF RIVERSIDE ASSESSOR-COUNTY CLERK-RECORDER CERTIFICATION Recorder P.O. Box751 Riverside, CA 92502-0751 (951) 486-7000 www.riversideacr.com Pursuant to the provisions of Government Code 27361.7, I certify under the penalty of perjury that the following is a true copy oflllegible wording found in the attached document: (Print or type the page number(s) and wording below): ·7/#J.b 11�'1 J#tJ£C 6Nf /� . u u;;--f!m, !WM � ,lfmltrlM /lJM/r--t¼ 1M +(6-u;u J/ur-r/1--y Date: Signature: Print Name: ACR 601 (Rev. 09/2005) Available In Alternate Formats t r 247 NOTARY ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) ) -s;..,..., COIJNTY0�'.:_1<8��-. e $;,,<;ft On 2/+ /2,e>Z3, before me, .s£t..e,(4?y · , Notary Public, personally appeared l?e,v i r'\ fl/t vt vtv-y , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/theil' authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENAL TY of PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand an :.e'.� s� (Seal) 248 Receipt: 23-47123 Product 494 Sub-Total Service Fee Total Tender (Credit Card OTC) Transaction ID Service Fee Credit Card# Entry method Au\hCode Credit Card Invoice# Customer Phone Number Signature 2/22/23 11 :52 AM Palm Desert Pater Aldana Riverside County Assessor-County Clerk-Recorder 2724 Gateway Drive Riverside, CA 92507 Name (951)486-7000 www.rivcoacr.org DECLARATION Document# #Pages 18538248303 $2.51 ..... ·-·•-•97e1 Chip 008160 BPl3023S377 7605672843 Extended $110.00 2023-0050231 8 $110.00 $2.51 $112.51 $112.51 249 ECORDING REQUESTED BY: CRISTE, PIPPIN & GOLDS, L.L.P. When recorded mail to: CRISTE, PIPPIN & GOLDS, L.L.P. 73-550 Alessandro Dr., Suite 200 Palm Desert, CA 92260 DOC � 2004-06277�0 08/11/2004 Conformed Copy Has not been compared with original Gary L Orso County of Riverside Assessor, County Clerk & Recorder This space for Recorder's use only DECLARATION FOR CORAL MOUNTAIN ESTATES A PLANNED DEVELOPMENT Title of Document cgc\recorder.ftm 250 I AMMENDMENT TO THE ARCHITECTUAL GUIDELINES FOR CORAL MOU NTAIN ESTAT ES, HOA PLANNED DEVELOPMENT Date 11-10-2024 REGARDING: Occupy or use of and Lot Now therefore the members of the Coral Mountain Estates HOA hereby amend and restate the occupancy and/or use of any lot within the development. The use of any lot is not addressed in the Articles of Incorporation nor in the Architectural Guidelines. This amendment will serve as the document related to "Use of Lot" Occupy or use of Lot to be occupied or used, for any purpose other than as a private residence. Nothing in this Declaration shall prohibit an Owner from leasing or renting his or her dwelling. Any owner wishing to rent their residence shall have the right to do so providing they follow all rules and restrictions set forth by the city of La Quinta. Currently, the City of La Quinta does not regulate any rentals that are 31 days or longer. For any rentals less than 31 days a STVR permit would be required through the City of La Quinta using a "Large Lot Qualification" that would be approved by City Council. Sincerely, Kevin Murray HOA President and only officer Resolution No. 2026 – XXX - EXHIBIT B Large Lot Qualified and Certified 2026-0001– 57600 Coral Mountain Court Adopted: March 17, 2026 251 C'JRAL MOUNTAIN ESTATES HOMESITE DESIGN GUIDELINES I.INTRODUCTION A.PURPOSE AND APPLICABILITY. The purpose of the Coral Mountain Estates (CME) Homesite Design Guidelines (the "Design Guidelines") is to ensure a sense of design continuity for the Estate Homesites. Such continuity preserves land values, provides a visually appealing living environment and encourages design creativity within a consistent framework. The design guidelines apply to all custom home development on Estate Homesites within the CME community. The Design Guidelines are intended to guide Owners, architects and builders in designing homes and Improvements on individual Estate Homesites within the community, as well as providing guidelines with respect to alterations of existing improvements constructed on Estate Homesites. B.REGULATIONS. These Design Guidelines are not intended to supersede or contradict the currently adopted Uniform Building Code by the City of La Quinta, or any other public agency. Any requests for exceptions or variances to the laws and regulations or standards adoptedby such agencies must be submitted to the appropriate agency or the City according to the established procedures for the granting of such exceptions or variances. The Declaration contains restrictions regulating the construction and maintenance oflmprovements within the CME community and is enforceable in courts oflaw. The Declaration and Design Guidelines are subject to interpretation by the Developer which may, subject to the provisions of the Declaration, amend or augment the Design Guidelines to meet specific site, temporal, or functional requirements of property in the CME community. As these Design Guidelines are subject to change without notice, Owner shall be subject to the Design GuiJelines existing at the time at which Owner completes the Preliminary Plan Submittal. None of the CME Architectural Committee (CMEAC), the Association, or Developer assumes responsibility through plan review to check for compliance with local codes or ordinances. Plan review is intended to ensure that the plans meet the intent of the Design Guidelines. No work shall be performed or alterations made in the community without having been approved as provided for in the Declaration and Design Guidelines. II.DEFINITIONS. A."ACCESSORY STRUCTURE" shall mean a detached structure with non-livable space only. (A guesthouse is not an Accessory Structure.) Examples include storage buildings, equipment enclosures, shade structures, gazebos, and cabanas. Coral Mountain Estates Homesite Design Guidlines PAGE NUMBER 1 VERSION December 15, 2004 252 B."ARCHITECTURAL FEATURES AND PROJECTIONS" shall mean eaves, overhangs, pop-outs, bay windows, fireplaces, columns, wing walls, etc. C."ASSOCIATION" shall mean the Coral Mountain Estates (CME) homeowners as described in the Declaration. D."BOARD OF DIRECTORS" shall mean the governing body of the Association as described in the Declaration. E."BUILDING ENVELOPE" refers to the area of a Homesite bounded by the front, rear and side Building Setbacks, constituting the allowable building area. F."BUILDING HEIGHT" shall mean the maximum height of a structure as measured from finish grade at the lowest adjacent point five (5) feet from the building footprint to the highest point of the roof. G."BUILDING SETBACK" shall mean the minimum distance a building must be set back from a designated property line. H."CITY" shall mean the City of La Quinta, California. I."COUNTY" shall mean Riverside County, California. J."COURTYARD WALLS" are walls enclosing front, side, or rear courtyards or patios. K."DECLARATION" shall mean the Declaration of Covenants, Conditions, and Restrictions for the Coral Mountain Estates community as recorded in the real property records of Riverside County, California, as the same man be amended and supplemented from time to time. L."DEVELOPER" shall mean Bruce R. Baumann, or its assigns, which is the developer of the Coral Mountain Estates community. M."ESTATE HOMESITE" shall mean those Homesites which the Developer shall, from time to time, designate for construction of custom homes thereon. N."ARCHITECTURAL COMMITTEE" shall have the meaning ascribed to it in the Declaration. 0."FLAT ROOF" shall mean any roof having a pitch of 1: 12 or less. Coral Mountain Estates Homesite Design Guidlines PAGE NUMBER 2 VERSION December 15, 2004 253 P."FRONT YARD" shall mean the area between the front property line and face of the building walls exposed to the Street, including porte cocheres, but excluding porches and courtyards within walls. Q."GUESTHOUSE" shall mean a secondary structure with livable space, either attached or detached. R."HOMESITE" shall mean a parcel of land within the CME community which is, or is intended to be, a subdivided lot under the Subdivision Map Act of the State of California, is intended to be developed with a single family home, and is subject to the Declaration. S."IMPROVEMENTS" shall mean all improvements to an Estate Homesite, including, but not limited to, utilities, paving, structures, exterior painting and window coverings, landscaping, and amenities. T."LANDSCAPE WALLS" are walls used to retain grade and create raised planters, or free standing low walls used as accents at entry walkways, patio enclosures, etc. U."LIVING AREA" shall mean those spaces located within the exterior building walls of the main Residence and any Guesthouse excluding the following spaces: Accessory Structures, garages, covered terraces and patios or storage areas which are only accessible from the exterior or from the garage. V."OWNER" shall mean the record owner of a Homesite. W."RESIDENCE" shall mean the home of an Owner and family members constructed on an Estate Homesite within the community. Residence includes any Guesthouse. X."STREETS" shall mean those areas of the community which are depicted as public or private streets on the subdivision maps recorded by the Developer. Y."YARD SETBACKS" shall mean that ground area between the wall faces of the Residence and all property lines. III.DESIGN REVIEW AND APPROVAL PROCESS A.PLAN REVIEW. 1.IMPROVEMENTS REQUIRING REVIEW. All Improvements and all alterations to Improvements will require review and approval by the CMEAC (Coral Mountain Estates Architectural Committee). Coral Mountain Estates Homesite Design Guidlines PAGE NUMBER 3 VERSION December 15, 2004 254 2.PLAN REQUIREMENTS. All plans for Improvements shall be submitted in accordance with the procedures set forth herein and in the Declarations. All plans shall be prepared by licensed or otherwise qualified land planners, architects, landscape architects, engineers or other approved designers. It is recommended that a team of qualified professionals be used in the preparation of the plans. Selection of non-licensed professionals must be approved by the CMEAC prior to the submittal of any plans. Submittals that are deemed incomplete will be returned unreviewed. 3.PLAN SUBMITTAL PROCEDURES. One set of plans to scale no larger than 30" x 42", and the appropriated completed application shall be delivered to: Ron Gregory RGA Landscape Architects 74020 Alessandro Suite, Suite E Palm Desert, CA 92260 Attn: Coral Mountain Estates B.SUBMITTALS. 1.COURTESY REVIEW. A courtesy review is recommended prior to the preliminary submittal with the Owner or Owner's representaLve to review the Design Guidelines and any conceptual plans that have been prepared. A design review application and deposit are required at this time. See Appendix B. 2.PRELIMINARY PLAN SUBMITTAL. The Owner shall submit a blueprint copy of the preliminary plans to the CMEAC for approval prior to the submission of final drawings for review. a.All preliminary plans shall be drawn to an appropriate sale no smaller than 1/8" 1' for site drawings and¼" 1' for architecture drawings. b.The following information shall be clearly indicated on all drawings: Sheet title; scale; north arrow; owner's name; builder (name of company), if selected; prepared by ( entity that prepared the plans); date the drawings were completed and/or modified; homesite identification; square footage of each proposed structure and Living Area. c.The fol�owing items re required for preliminary plan submittal: 1)Design Review Application. The preliminary design review application and checklist must be completed in their entirety. Coral Mountain Estates Homesite Design Guidlines PAGE NUMBER 4 VERSION December 15, 2004 255 2)Plan Check Fee. The plan check fee must be paid at this time. Refer to Section III.C.1 for fee requirements. 3)Site Plan. Dimensioned site plan showing Homesite boundaries, building footprint(s), roof plan, setbacks, walls, fences, paving, Accessory Strnctures, swimming pools or other amenities, and any requested variances or encroachments. 4)Grading Plans. Grading plans showing all existing and proposed elevations, drainage flow lines, drainage strnctures, retaining wall locations and sections or other site structures, utility connections to the Residence, as well as pad elevations for all adjacent Homesites. 5)Architecture Concept Plans. Dimensioned plans showing all building floor plans, elevations, sections and roof plans. Area calculations including living areas, basement areas, porches, and garages. Dimensioned heights of all elements, including height of the Residence and any Accessory Structures, as well as perimeter wall treatments. The front and rear elevations shall include any walls, fences and gates. 6)Landscape Concept Plan. Plan showing all existing and proposed landscape elements, turf and nonturf areas, location and size of plant materials drawn to mature scale (five years), plant list with botanical and common names, and wall and hardscape elements. d.Preliminary Plan Approval. Upon review, the CMEAC will either approve, approve with conditions, or deny the preliminary plans. The Onwer may submit the final plans only if the preliminary plans are approved or are approved with conditions. The Owner must address all approval conditions on the final plans. Preliminary plans which asre denied must be revised and resubmitted to the CMEAC for approval. While the CMEAC will make every effort to review plans carefully according to the requirements set forth in the Design Guidelines, the CMEAC reserves the right to make a complete review of the final plans and to reject any inconsistencies with the Design Guidelines, regardless of the preliminary approval or any oversight that may have occurred in the preliminary approval process. 3.FINAL PLAN SUBMITTAL. The Owner shall submit one set of the final plans only after approval or conditional approval of the preliminary rlans. Coral Mountain Estates Homesite Design Guidlines PAGE NUMBER 5 VERSION December 15, 2004 256 a.Final plans shall be drawn to scale no smaller than 1/8" 11 for site drawings and¼" 1' for architecture drawings. b.Final plans shall include all of the information requested in the preliminary plan submittal, and additional details and other required information as outlined below: 1)Application. The final plan review application and checklist completed in their entirety 2)Site Plan. Dimensioned site plan showing Homesite boundaries, building footprint(s), roof plan, setbacks, easements, walls, fences, site amenities, utility and equipment locations, driveways, and other paved surfaces. 3)Grading Plan. Grading plans showing all existing and proposed elevations, drainage flow lines, drainage structures, retaining walls or other site structures, utility connections to the Residence and pad elevations for all adjacent Homesites. Spot elevations shall be provided along flow lines, at entrances to the Residence, at intervals along the property line, and at the top and base of all walls. 4)Architecture Plans. Dimensioned plans showing all elevations, floor plans with area calculations, roof plans, elevations and similar drawings depicting use of exterior materials and paint colors, location of ground mounted HV AC and pool equipment, utility meter locations, and dimensioned heights of all elements including the height of the Residence and any Accessory Structures and walls. 5)Material Sample Board. Material sample board(s) showing samples or manufacturers' cut sheets for all exterior materials, including but not limited to: doors, garage doors, windows, lighting, roofing, exterior colors, building wall finishes, fence or site wall finishes, decorative paving and landscape rock. Refer to Sectoins V.A.16 for material and color requirements. 6)Landscape Plans. Landscape plans showing all existing and proposed landscape and hardscape elements, location and size of plant materials drawn to mature scale (five years), a plant list with botanical and common names, and landscape lighting. 7)Irrigation Plans. Irrigation plans depicting location and product specifications of all Coral Mountain Estates Homesite Design Guidlines PAGE NUMBER 6 VERSION December 15, 2004 257 sprinkler head emitters, valves, controllers, backflow prevention and piping, including size of the lines. 8)Exterior Lighting Plans. Exterior lighting plans showing location and types of fixtures (provide cut sheets). 9)Construction Plans. Construction plans showing location of construction access, trash receptacles, temporary rest rooms and construction fencing as defined in Section VII.A. 1 0)Repair Deposit. No Owner shall commence construction on a Homesite until such Owner has deposited in an interest bearing account cash in the amount of $5,000.00 to the benefit of Coral Mountain Estates. Said cash will be held as security for the repair by the Owner of any Association property ( or streets or other property within the community) damaged during the course of construction or landscape installation. c.Final Plan Approval. The CMEAC will either approve the plans as submitted, approve with conditions, or request a resubmittal to address any outstanding items. 4.MODIFICATIONS TO FINAL APPROVED PLANS. Changes to approved plans, additions or deletions, shall be submitted to the CMEAC for approval prior to installation/deletion and shall clearly identify the revision(s). 5.CITY APPROVAL. Plans may not be submitted to the City for plan review and/or building permit issuance without prior written approval of the final plans by the CMEAC. C.ADMINISTRATION. 1.FEES. The CMEAC shall have the right to require payment of reasonable fees for review of proposed plans and other materials, and site observation of constructed Improvements. An initial plan check fee of $750.00 is required. This fee covers the preliminary and final review submittals, providing two reviews per submittal, and up to five field inspections. If additional reviews or inspections qare required, or substantial changes in plans occur, an additional fee of $200.00 per review and $75.00 for each inspection will be assessed. 2.AMENDMENT. The Design Guidelines, including the amount of fees and deposits, may be amended as provided for in the Declaration. 3.PREVALENCE OF DECLARATION. In case of any conflict between the provisions of the Design Guidelines and the Declaration, the Declaration shall prevail.4.MISCELLANEOUS. All items submitted shall become the property of the Association. Coral Mountain Estates Homesite Design Guidlines PAGE NUMBER 7 VERSION December 15, 2004 258 5.EXECUTION OF WORK AFTER APPROVAL. After approval of the final plans by the CMEAC, the construction, alteration or other work described therein shall be commenced and completed in accordance with the rules set forth in these Design Guidelines and the Declaration. The CEMAC or representatives have the right to enter the Homesite and to inspect the project for compliance with the Design Guildlines or the Declaration at any time, without advance notice to the Owner. 6.VIOLATIONS. Construction deemed by the CMEAC to be in violation of approved drawings, the Design Guidelines, or the Declaration shall be corrected as provided for in the Declaration. 7.NOTICE OF APPROVAL. Upon approval of the final plans, the CMEAC shall issue a Notice of Approval to the Owner. 8.NO LIABILITY OF COMMITTEE. Provided the CMEAC acts in good faith, neither the CMEAC nor any representative thereof shall be liable to any Owner or any other person for any damage, loss or prejudice suffered or claimed on account of the review of any plans, specifications or materials. The CMEAC does not profess to be an expert in construction law or building code rules, and therefore takes no responsibility for violation by the Owner thereof. 9.PROFESSIONAL ADVICE. The CMEAC may employ the service� of consultants to render professional advice for plan reviews. Owners are encouraged to seek similar advice for their own protection. IV.SITE PLANNING DESIGN GUIDELINES The following site planning Guidelines are established to ensure a consistency in the level of quality and image established for the CME community. They include those identifiable and unifying elements that promote consistency within the community streetscape, while encouraging innovation through custom home building. A.SETBACKS. All setbacks will be reviewed on the individual merits of the submitted site plan. However, no develop able area shall fall within the following minimum setbacks: 1.FRONT YARD SETBACK. A minimum of 50' shall be required between tht: Residence and the front property line. The front of the Residence fhall include significant building offsets (steps) and other architectural relief. 2.SIDE YARD SETBACK. A minimum of 50' shall be required between the Residence and each side property line. 3.REAR Y ARD SETBACK. A minimum of 50' shall be required between the Residence and the rear property line. The rear of the Coral Mountain Estates Homesite Design Guidlines PAGE NUMBER 8 VERSION December 15, 2004 259 Residence shall include significant building offsets (steps) and other architectural relief. 4.FRONT AND REAR Y ARD ENCROACHMENT. No front or rear yard encroachment is allowed. 5.SETBACKS FOR WALLS AND FENCES. Walls and fences are subject to review by the CMEAC. Only one wall or fence can be built on a common property line. 6.SETBACKS FOR SWIMMING POOLS AND WATER FEATURES. a.The inside edge of a swimming pool, spa or fountain /water feature shall not be closer than 50' from any property line. b.Swimming pool, spa and fountain/water feature equipment shall be located a minimum of 50' from any property line with the intent of minimizing noise. c.Setbacks for small water features ( e.g. wall fountains, bird baths, ornamental ponds) are subject to review by the EHAC. 7.BULK PLANE SETBACK. The maximum height of any structure at any point along the front setback line or the Side Yard Setback shall be 20'. The height is measured from the finished floor. The bulk plane steps back from the 20' height at an angle of 146 degrees or 1' horizontally of each l '-6" of additional elevation to a maximum building height of 26' as measured from the existing building pad. All parapet walls of flat roofed structures must remain behind the bulk plane setback line. Gable end roofs may not encroar,h into the bulk plane setback. Sloped roof overhangs may extend through the bulk plane. If a porte cochere exists, the bulk plane setback line will follow the layout of the porte cochere. 8.SETBACKS OF ACCESSORY STRUCTURES. Accessory Structures, including pool cabanas and gazebos, are not permitted within the rear Building Setbacks. 9.SETBACKS FOR PORTE COCHERES. Porte cocheres must be set back a minimum of 50' from the curb. 10.SETBACKS FOR ARCHITECTURAL FEATURES AND PROJECTIONS. Architectural Features and Projections such as fireplaces, bay windows, columns, popouts, wingwalls, etc., may encroach no more than 30" into any setback. Architectural Features and Projections such as eaves, roof overhangs, etc., may encroach nu more than 30" into any setback. Coral Mountain Estates Homesite Design Guidlines PAGE NUMBER 9 VERSION December 15, 2004 260 11.SETBACKS FOR TRELLISES. Trellis supports may not encroach into any Yard Setback. The edge of the trellis may encroach up to 30", as measured from the structural support toward the nearest property line. Trellises shall not exceed the plate height of the nearest face of the house. Wood members must be substantial in size and laminated to avoid warping and bending. Trellises are considered to be patio covers or Accessory Structures and must follow setback Guidelines in Section IV.B.9. B.BUILDING SITING AND ORIENTATION. The siting of a house or structure and its orientation should reflect its functional needs and should be sensitive to Homesite characteristics, adjacent Homesites, and the surrounding community. It is important that the siting and three-dimensional character of each house be considered as it relates to views to and from the house, its effect on adjacent Homesites, and the massing of consecutive Homesites. The EHAC will consider each Homesite independently, but will give extensive consideration to impact on adjacent homes, solar orientation, drainage patterns, impact on existing site conditions, and driveway access. The use of additional setbacks may be applied to specific Homesites to address specific siting issues. The Owner is encouraged to orient homes within the Building Envelope to take full advantage of views, and to provide privacy from other Homesites. C.EASEMENTS. Easements are restrictions placed on Homesites to provide for a specific use, such as service of utilities, or drainage across a Homesite. Any Improvements built within easements are the sole responsibility of the Owner, and may be subject to removal at the expense of the Owner ifrequested by the easement holder. D.PARKINGANDDRIVEWAYS. 1.OFF STREET PARKING. Each Residence shall have a minimum three (3) car enclosed garage. Any garage should be planned so as not to face the street view of the home. 2.DRIVEWAYS. Driveways must be located to minimize their visual impact and street scene disruption. 3.DRIVEWAY ENTRANCES. The Developer will not provide driveway entrances (i.e., curb cuts). The Owner must provide all necessary curb cuts and construct a concrete driveway entrance perpendicular to the curb. See Section VI.B.2 for pavement treatments. 4.DRIVEWAY WIDTH. Where driveways intersect the Street, single entry driveways shall not exceed 18' in width and dual entry driveways ( circular drives) shall not exceed 12' in width per Coral Mountain Estates Homesite Design Guidlines PAGE NUMBER 10 VERSION December 15, 2004 261 entrance. A 36' minimum separation, as measured from the centerline, �s required on all dual entry driveways. 5.ONSITE PARKING. Uncovered additional guest parking may be permitted on the Homesite if sufficient screening is provided. Parking areas must be a minimum of 50' from side property lines. E.SITE AMENITY STANDARDS 1.WATER FEATURES. Swimming pools, spas and other water features must be screened from direct view from the Street and adjacent Homesites. Pool equipment must also be screened from view from Streets and adjacent Homesites. 2.TENNIS COURTS. Tennis courts are permitted on any Homesite subject to t:1e review of the CMEAC. Lighting of tennis courts is not permitted. 3.SATELLITE DISHES AND ANTENNAS. No satellite dishes or antennas may be installed on an Estate Homesite without the prior written consent of the CMEAC. 4.ACCESSORY STRUCTUR ES. All Accessory Structures such as gazebos, detached garages, decks, storage sheds, equipment enclosures, etc. not part of the Residence shall be reviewed and approved by the CMEAC at the preliminary review stage. 5.SPORTS COURTS. All hard and soft surfaced sport court locations, structures, and materials shall b'e reviewed by the CMEAC at the preliminary review stage. Sport Courts are permitted on any Homesite subject to the review of the CMEAC. Lighting of sport courts is not permitted. 6.GATE ENTRY SYSTEMS. Owners may design individual security and communication systems conncted to commercially available facilities for fire, burglary and medical alert alarms. The Owner shall be responsible for the installation and maintenance of such system. V.ARCHITECTURAL DESIGN GUIDELINES The following architectural guidelines are established to ensure consistency with the overall architectural theme and standards of quality for the Coral Mountain Estates community while encouraging individual creativity and expression within the boundaries of that theme. Coral Mountain Estates Homesite Design Guidlines PAGE NUMBER 11 VERSION December 15, 2004 262 1.STYLE. The architectural character of Coral Mountain Estates should reflect a feeling of elegance, individuality and quality incorporating Tuscan design. 2.FLOOR AREAS. Residences shall have a minimum of 4,500 square feet of living area. 3.GROUND COVERAGE RATIO. The maximum roofed area of the Residence and any Accessory Structure, including eaves, shall not exceed 20 percent of the total Homesite area. 4.GARAGES. Residences shall have an enclosed garage of sufficient size to accommodate all vehicles owned or regularly operated by the Owner. 5.BUILDING HEIGHTS. The Design Guidelines are intended to prohibit any Residence which would appear excessive in height when viewed from the Street, public space or private Homesites making it appear incompatible with surrounding Residences. The CMEAC may, for reasons stated above, disapprove a proposed Residence for excessive height even though the proposed Residence may comply with the maximum height restrictions, due to massing, ridge lines, heights at setbacks or other reasons deemed relevant. Without limiting the foregoing, the CMEAC shall disapprove any portion of the Residence which exceeds the 30 foot height limit. In general, the highest points of structure should be directed toward the interior portion of the structure with the mass (See Section V .A. 7) of the structure lowering as it approces the setback lines. This concept protects view corridors as well as allows adjacent Residenceds to better relate to one another. A maximum of 45 percent of the structure may extent about 15' and a maximum of 20 percent may extend above 18'. 6.BENCHMARK. In order to assure compliance with height restrictions by all parties, the following procedures are required: a.At completion of foundation the surveyor must certify compliance of finished floor heights with approved plans. This certification letter must be on file with the CMEAC. b.At any time during or after framing the CMEAC may require the Owner and/or builder to certify that the finished height of the Residence complies with the approved plans. Should the heights, in any aspect, exceed the approved documents, the Owner/builder shall immediately bring the Residence into full compliance. 7.BUILDING MASS AND SCALE.Residences shall be limited to one story above grade. The exterior design of the residences shall Coral Mountain Estates Homesite Design Guidlines PAGE NUMBER 12 VERSION December 15, 2004 263 incorporate quality elements of design including balance, depth, repetition and contrast with special attention to shade and shadows. Variety of massing is required. Roof lines should create interest while relating to adjacent residences. Rear and side elevations shall incorporate architectural elements such as window treatments, recesses and popouts, enhanced materials, etc., which are found on the front elevation. Materials of construction must appear natural and blend with the colors and textures of the rest of the community. Windows must be protected by deep overhangs or deep wall recesses to shelter glazing from the climate and sun conditions. 8.BUILDING COLORS.The colors of exterior materials must generally be subdued to complement the natural terrain and landscape. Colors should enhance the environment, not overpower the surroundings. Earth tones are recommended. All colors of structure, trim, yard walls, exterior tiles, paving and exterior artwork must be submitted for rP,view and approval. The rich palette of colors and materials used throughout the Coral Mountain Estates community will provide for an interesting and varied street scene, allowing for creativity, individuality, and distinctiveness for each Residence while visually enhancing the common Tuscan theme of the community. While a specific color and materials palette has not been specified, colors or materials which do not, in the determination of the CMEAC, enhance the Coral Mountain Estates community will not be permitted. 9.EXTERIOR MATERIALS. Exterior materials must generally consist of materials that blend and are compatible with the Tuscan theme of the community. Masonry, stucco, concrete or stone are to be the predominant surfaces. Exterior materials must withstand the climate extremes and should not create maintenance problems for the owners. Specifically prohibited materials are: reflective or bright colored metal, vinyl and plastic siding, reflective materials, mirrored glazing and other materials whose appearance in the judgment of the CMEAC does not convey strength, permanence or durability. The use of wood for trim and accent is permitted if consideration is given to proper detailing, protection from elements and placement. Wood siding is not permitted. Exterior wall finishes used on the Residence shall be continuous and consistent on all elevations of the Residence I order to achieve a uniform and complete architectural design statements. Veneer should include masses of full walls and/or columns, or substantial wainscoting. 10.BUILDING PROJECTIONS. All projections from a Residence including, but not limited to, chimneys, chimney caps, vents, gutters, down spouts, utility boxes, services, etc., must be incorporated and detailed into the overall design. These items must be included on the submittals and reviewed by the CMEAC for approval. 11.WINDOWS, SKYLIGHTS AND GLAZING. Skylights and windows are important sources of natural light as well as providing the indoor/outdoor living environment to the desert lifestyle. They can, if not carefully situated in the design, be sources of undesirable Coral Mountain Estates Homesite Design Guidlines PAGE NUMBER 13 VERSION December 15, 2004 264 reflections and glare as well as being sources of tremendous heat gain and energy waste. a.Skylights should be designed to be an integral part of the roof. Skylights must be low in profile and cannot be clear or white and must fit in with the overall color palette of the Residence even if they are concealed from view. b.Wiudows should be protected by recesses or overhangs to protect and shelter the glazing from the environment as well as to provide the appearance of substantial walls. Window jamb and sill details, including colors, must be submitted to the CMEAC for review and approval. 12.BASEMENTS. Basements are permitted; however, any exposed wall surfaces shall be finished consistent with other wall surfaces of the building, and shall be kept within the Building Setbacks. Light wells and open exterior stairs may not encroach into side and rear setbacks. 13.ROOF DESIGN AND MATERIALS. a.Roofscapes form an important part of the visual environment and must be an integral part of the design. Roof mounted equipment, including solar panels, is prohibited on any roof unless, in the judgment of the CMEAC, it is completely screened from view of adjacent Homesites, streets, and public spaces. No asphalt shingles or unnatural appearing roof materials are permitted. Roof colors should be muted and should be interesting textures and colors compatible with the overall Residence design. b.Roofs may be flat or pitched.Clay profile tiles are required. Concrete profile tiles are prohibited. Flat tiles may be clay, slate or concrete. Flat portions of the roof shall contain a parapet. Finish material of the flat roof shall be monolithic and have a light reflectance value of 4 percent or less. Fiberglass shingles, simulated tile including fiberglass or metal, are specifically prohibited from use. Nonreflective, standing seam metal roofs are prohibited. Mechanical devices such as exhaust fans, vent and pipes shall be painted to match adjacent roof surfaces. c.Eaves shall overhang a minimum of 12". Exposed wood members such as fascia and rafters must be of a substantial size in order to avoid twisting or warping. Wood elements shall be stained or painted. Fascias shall be a minimum of 14" wide. Exposed gutters and downspouts are not permitted. Decorative scupper extensions without down spouts are ascceptable. 14.FLAGPOLES AND ANTENNA. No antenna or satellite dish is allowed without special review and design consideration and approval by the CMEAC. Any owner considering the use of such Coral Mountain Estates Homesite Design Guidlines PAGE NUMBER 14 VERSION December 15, 2004 265 a device should first discuss possible installation solutions with the CMEAC as only acceptable solutions will be considered. Flagpoles are not allowed. 15.PATIO COVERS. Patio covers shall be designed to continue and/or complement the Architectural Features and Projections of the Residence. 16.EXTERIOR GARDEN/COURTYARD WALLS. Exterior Garden/Courtyard Walls. Walls shall be included in the overall design concept as an integral extension of the Residence. Walls should be used as separation for privacy as well as screening of guest parking and service areas. The colors and materials of the walls must be integral with the overall design concept of the Residence. a.The minimum height of walls deemed necessary for private/public screening shall be 4'6". In all cases the wall height shall be sufficient to fully screen the intended view or equipment, and shall not exceed 8'. The height of the wall shall be measured from the pad elevation on the higher of two adjoining homesites. b.All walls shall be masonry construction, and may be veneered in materials compatible and harmonious with the exterior finishes of the architecture. Materials such as indigenous rock, stone and stucco are encouraged and are subject to CMEAC approval. Materials for exterior walls shall consist of at least one but not more than three of the following: 1.Stucco or plaster with a light texture (i.e. dash, smooth or sand). Heavy finishes such as Spanish lace, swirl or heavy trowel are prohibited. Comer bead or comer aide is required at the comers of exterior surfaces. 2.Solid clay brick 3.Glass 4.Stone or cultured stone 5.Glass block 6.Slump block 7.Slurried split face block 8.Precast or simulated precast concrete c.All wall footings, whether for freestanding or retaining walls, shall have a minimum of 16" deep soil cover, measured from the top of footing. This requirement allows for planting adjacent to the wall. Footings for freedstanding and retaining walls shall be engineered to the depth and width necessary to meet City standards. d.All walls shall be terminated with a minimum 18" square column or 24" return. Wall and garden gates shall be substantially constructed and include metal jambs, frames Coral Mountain Estates Homesite Design Guidlines PAGE NUMBER 15 VERSION December 15, 2004 266 and hardware. Design of gates and hardware shall be compatible and consistent with the architectural theme. 17.WINDOW AND DOOR OPENINGS. a.All window and door openings within exterior wall surfaces shall be treated in one of the following ways: 1.Architectural pop outs 2.Time surrounds on all sides 3.Recessed windows into thickened walls 4.Bay windows 5.Curved walls of glass block or glass 6.Combinations of the above or any other design treatment which achieves scale, order, proportion or depth of opening b.If recessed windows are provided in the front, side and ear elevations, they shall be recessed a minimum of 3 ½". The wall surfaces around the windows shall be of a significant mass and scale. Portions of homes with flat roofs and parapets shall have all exterior openings recessed a minimum of 5 ½". Trim elements shall not be calculated as part of the minimum recess requirement. c.Windows may be either divided light, plain glass or glass block. Pram es must be a minimum of l" thick. Mill finish aluminum frames are prohibited. Glazing may be either clear or tinted. Reflective glass is not permitted. d.Window shapes shall be appropriate for the architecture of the Residence. Arched and stacked window designs are encouraged. e.Security bars at doors and windows are not permitted. 18.COLUMNS AND ARCHWAYS. The use of columns and archways appropriate to the architectural theme is encouraged. Columns and archways should be massive and provide a feeling of depth and interest at fenestration and entries. Attention to detail should be given without appearing unnecessarily ornamental. 19.COURTYARD WALLS AND FENCES.Courtyard walls and fences must be visually softened with planting. 20.CHIMNEVS. The design and finish of chimneys should complement the architectural design of the Residence. The use of accent trim such as precast concrete, tile and stone is encouraged. Chimneys may not exceed the maximum Building Height. 21.UTILITY METERS. Wall mounted meters must be recessed and otherwise hidden from view from the Street. Pad mounted meters must be set into full depth niches. 22.UTILITY EQUIPMENT. Security equipment, HV AC units,swimming pool equipment, etc. shall be screened from public view but must meet utility company standards for access. 23.RESIDENTIAL EXTERIOR LIGHTING. Subtle, low level lighting of facades is encouraged. The lighting of address plaques is Coral Mountain Estates Homesite Design Guidlines PAGE NUMBER 16 VERSION December 15, 2004 267 required. Lighting shall be located, directed, and shielded so that light rays and glare, to the greatest extent practicable, do not extend beyond Homesite boundaries. Light fixtures with cutoff or concealed light sources are preferred. These types of fixtures may include wall sconces, recessed lighting, soffit lighting and directional lighting. Light fixtures with visible light sources are discouraged. Lighting may be mounted on the home or Accessory Structures. Recessed lighting (i.e., soffit lights) incorporated into the architecture of the home may occur at heights exceeding 10'. 24.ACCESSORY STRUCTURES. The Building Height of Accessory Structures shall not exceed 20' measured to the highest element of the roof No Accessory Structures shall be located closer than 6' from the Residence. The architecture of Accessory Structures must be similar and compatible with the architecture of the Residence. 25.BARBECUES. Barbecue areas shall be architecturally consistent with the Residence. All equipment that is visible from adjacent Homesites must not be reflective or of bright colors. Stainless steel is, however, acceptable. 26.SERVICE YARDS. Each Residence shall contain a designated service yard accessible to, but screened from the Street, for trash cans, meters, mechanical equipment and other outdoor maintenance requirements. All equipment and meters must be fully screened from public view and adjacent Homesites. 27.GUEST HOUSES .. Guesthouse structures may be attached or detached, but must be designed as an integral part of the Residence. Paving must be architecturally consistent between the main house an Guesthouse. Permission to construct guesthouses must be obtained from the City and the CMEAC. Guesthouses, when allowed, shall conform to apr licable design Guidelines. No Guesthouse may be leased or rented. All Guesthouses must contain a minimum of 500 sq. ft. 28.SCULPTURES AND ARTWORK. Sculptures and artwork should be designed and located for viewing principally within the Homesite. No reflective or bright colors are allowed. All sculptures and artwork which are visible to adjacent Homesites must be approved by the CMEAC prior to installation. The submittal shall include detailed information on location, size, materials, colors, mounting details and lighting. VI.LANDSCAPE ARCHITECTURE DESIGN GUIDELINES. The goal of Coral Mountain Estates is to capture and incorporate timeless beauty and character of the Tuscan countryside. The following landscape guidelines have been established to ensure continuity and visual quality of the community im.:..ge. This image is communicated primarily through the treatment of walls, streetscapes, yards and common areas. Coral Mountain Estates Homesite Design Guidlines PAGE NUMBER 17 VERSION December 15, 2004 268 A.UTILITY VERIFICATION. Each Owner shall physically verify the location of the utility boxes on their Homesite. None of these items may be moved and driveways must be coordinated within these conditions. Owners must indicate on their plan submittals that they have verified these conditions. Any Improvements damaged during construction on the Homesite must be repaired or replaced by the Owner. B.HARDSCAPE STANDARDS. Selection of hardscape materials for landscape use shall be aesthetically pleasing, harmonious and compatible with the community surroundings and the architecture. The intent is to complement and enhance the adjoining landscape, allowing for the visual interaction of neighboring homes. Walls, walks, driveways, patios, decks and courtyards shall be integral to the design of the Residence and surroudning landscape. Textured surfaces such as brick, stone, texctured and integral colored concrete are encouraged. 1.WALLS. Walls are an important part of the security, privacy and visual environment of residential areas. The Developer has provided several uniquely designed wall systems at the entries and the exterior of the community to reinforce the high quality of the development. The following wall types and their uses are the only ones permitted within the community: a.Residential walls. Residential walls are intended for privacy at the side yard property lines. b.Cost of common residential walls. Cost of construction and maintenance of common residential walls must be shared equally between neighbors. c.Common lot line walls should be constructed so that they can be used by both Owners. The Owners of adjacent Homesites are responsible for coordinating wall location, textures and colors. d.Wall Locations. Refer to Sections IV.B.6 for wall setback guidelines. e.Wall Height. Walls may not exceed 8' in height and may not be built on artificially created mounds or berms used solely for the purpose of gaining additional height. Wall height will be measured from the pad elevation on the higher of two adjoining Homesites. No residential wall may exceed the height of adjacent walls at the point of connection. Residential walls higher than adjacent walls shall step down prior to the point of Coral Mountain Estates Homesite Design Guidlines PAGE NUMBER 18 VERSION December 15, 2004 269 connection. All walls shall step rather than slope to accommodate grade change. Courtyard walls may be a maximum of 6' in height at the front setback line. Courtyard walls 36" in height or less are permitted in the front Building Setback as provided in Section IV.A.5. Height of retaining walls visible from any Street or Adjacent Residence shall be subject to review. Retaining walls combined with freestanding walls or fences, if visible from any Street or Adjacent Residence shall also be subject to review. No wood, chain link, plastic mesh, or pane fences are allowed. f.Wall Color and Materials. Masonry block is the preferred material for walls. Interior Residential walls, wherever located, which can be seen from any Street or Adjacent Residence shall be textured and colored compatibly with adjacent walls and Residences. Painted or unfinished precision concrete block walls are not allowed. g.Wall Modifications. Owners may not modify in any way the walls constructed by the Developer. 2.PAVEMENT TREATMENTS. a.Driveways. Owners shall construct driveways of integral colored, scored, patterned or exposed aggregate concrete; pavers; brick; stone or other similar decorative materials. Asphalt is not permitted on driveways visible to adjacent Homesites or Streets. b.Special Paving. Special paving such as patterned concrete, scored or aggregate concrete, brick or stone pavers, cobblestones and various paving materials in walkways, patios, courtyards and porch areas is encouraged to create texture and character. 3.BARBECUES/FIREPITS. Material selection shall be compatible and harmonious with all other selected building materials to further site design continuity. 4.FIREPLACES. Outdoor fireplaces shall confirm to the building setback requirements and established architectural materials. Placement and design shall take into consideration views from adjacent Homesites. 5.PLAY EQUIPMENT. Any play equipment shall be installed so that it is not visible to adjacent Homesites or Streets. Coral Mountain Estates Homesite Design Guidlines PAGE NUMBER 19 VERSION December 15, 2004 270 6. BASKETBALL. Basketball backboards are allowed if they are installed out of view of adjacent Streets and Homesites. 7.SHOWERS. Outside showers shall be installed out of public view only. 8.ORNAMENTS. Garden and lawn ornaments (e.g., pink flamingos) are not permitted unless approved by the CMEAC. 9.WATER ELEMENTS. a.POOL/SP A. 1)Consideration should be given in the design of the pool and/or spa areas to provide for privacy for both the Homesite Owner and neighbors. All pools and spas should complement the overall design of the individual properties as well as Coral Mountain Estates as a whole. All pools and spas will be reviewed by the CMEAC. Precast or molded pools or spas are not acceptable. A minimum of 50' of planting between all hardscape and property lines within ear yard setback area is required. 2)All infinity edges shall be designed and installed so that the outfall portion (where visible from adjacent Homesites or Streets) shall appear as natural landscape, blending with the existing landscape theme. 3)All pool and spa equipment shall be screened from view. If a below-grade vault is used to contain pool equipment, the vault shall be a minimum of 50' from any property line. b.FOUNTAINS. 1)Decorative water features are allowed subject to the approval of the CMEAC. 2)Fountains and smaller water features (i.e. birdbath, ornamental pond, wall fountain) may be reviewed by the CMEAC on a case by case basis for setback requirements. 3)Fountains shall not be higher than the adjacent or nearest property line wall. 4)Water features that utilize spray or mist-type fountain jets which lose water to evaporation and suffer "wind carry" are discouraged. Coral Mountain Estates Homesite Design Guidlines PAGE NUMBER20 VERSION December 15, 2004 271 5)Recirculating water should be used for all water feature elements. 10.LANDSCAPE LIGHTING. a.At night exterior lighting is often the only way we experience a landscape. Landscape lighting can be a very strong design element as well as enhance safety. The CMEAC will review all lighting concepts to add another level of beauty, sophistication and integrity to the Coral Mountain Estates environment. b.CME does not use conventional pole lighting to illuminate the Street. Instead we rely on soft, indirect ambient light, reflected from the landscape planting along the Street. Owners are required to continue this concept along the Street frontage of the Homesite. c.Street frontage landscape lighting shall be connected to a time clock or photocell on the Owner's property serviced by the Owner's electrical panel. Such lighting is required to be illuminated from sunset to dawn, 365 days per year. All other garden lighting around the home may be controlled from conventional switching inside the Owner's house. 11.LANDSCAPE LIGHTING GUIDELINES. a.Frontage Street landscape lighting requires a minimum of one 20amp 2400 watt circuit to be available on the Owner's time clock. Time clock settings may be determined by the CMEAC for overall lighting requirements. Final selection of fixtures and electrical work must be approved by the CMEAC. b.Flood and Spot Light Fixtures. Above-grade flood lights for the lighting of trees and plantings shall be concealed by shrubs to prevent daytime visibility or light source visibility. They shall be installed and shielded so as not to produce glare into neighboring Homesites. These fixtures are to be high grade construction and materials to ensure a long lasting, aesthetically pleasing appearance. No above-grade fixtures shall be located in turf areas. c.Where below-grade fixtures are used to up light trees, standards shall conform to those listed above for flood and spotlight fixtures. d.All outdoor fixtures may use incandescent or tungsten halogen lamps. No colored lamps are allowed, e.g., red, blue, amber. No post lights are permitted. e.A void excessive spill lights on buildings, garage doors, driveways, etc., to allow full quality effect of the landscape lights and beauty of the garden. f.All exterior wall mount or ceiling mount decorative fixtures shall be of high quality and in conformance with the house Coral Mountain Estates Homesite Design Guidlines PAGE NUMBER 21 VERSION December 15, 2004 272 architecture. All exterior decorative fixtures must be approved by the CMEAC. g.Walk lights placed adjacent to walkways in shrub or goundcover areas must use below grade junction boxes to minimize the daytime visibility of the hardware. h.The CMEAC requires field testing of all light fixture locations at night, prior to final approval. i.Only indirect low level lighting is permitted. No lighting that causes glare, discomfort or disruption to the visual environment of neighboring Residences, yards or Streets is permitted. Any lights mounted higher than 6' off the ground must be pointed downward and away from neighboring Residences. No light on any building, tree, pole or any other vertical element within a Homesite may be located higher than the eaves of the house. Ground mounted spotlights and up lights are acceptable provided they point towards plants and do not provide nuisance light levels in adjacent Homesites. j.All landscape lighting fixtures shall be kept in optimum working condition for aesthetics and security. Proper beam direction and alignment of fixtures shall be regularly checked and adjusted. Lenses sha�l be kept cleaned; lamps shall be replaced immediately as necessary., Planter material which serves to screen light fixtures shall be selectively trimmed to ensure unobstructed light beams. 12.LANDSCAPE ELEMENTS/BOULDERS a.Natural desert varnish or granite boulders and rock indigenous to the desert surroundings are encouraged. Boulders shall be placed into the finish grade at a minimum of one third the height of the bounder and in aesthetic groupings of two or more to achieve a natural look. b.Painting of bounders is not allowed. Approved stains such as Permeon may be used to achieve the desert varnish look. Samples are required for approval prior to construction. c.If landscape boulders have been stained and the color fades, it is the responsibility of the Owner to reestablish the original desert varnish color. C.LANDSCAPE STANDARDS. Selection of plant materials shall portray a character that harmonizes with the surrounding community. Plants must be approved for use by the CMEAC. The planting theme emphasizes the use of native and naturalized species that emulate the character of the Tuscan countryside and complement the overall community image. The use of traditional desert palms on the street-side view of a homesite is discouraged. 1.HOMESITE LANDSCAPING AND MAINTENANCE. Each Owner shall be responsible for landscaping and maintaining the yard areas included in their Homesite in accordance with the Design Guidelines and Declaration. 2.HOMESITE GRADING. Coral Mountain Estates Homesite Design Guidlines PAGE NUMBER 22 VERSION December 15, 2004 273 a.Grading, including grading for combined Homesites, should establish compatible grade relationships along Streets, between Homesites, and adjacent Homesites. b.Grading should respect existing topography, including existing property grades near adjacent Homesites with techniques which are safe, aesthetically pleasing and suitable for soil stabilization. c.Existing slopes along side yard lot lines with adjacent Homesites shall not be modified during grading. Grading shall be done with a minimum of disturbance to topographic features and environmental elements, especially as it affects neighboring Homesites. Where topographic constraints exist, or where pad elevation constraints have been introduced by combining Homesites, architectural design solutions (such as split level designs) shall be utilized rather than grading solutions. Existing slopes between pads combined into one larger Homesite must be removed and replaced with smooth graceful slopes to match architectural solutions for elevation constraints. Additional setbacks or stem wall construction at garages and Residences may be required on some Homesties to meet maximum driveway slope limitations, or to resolve specific siting issues for combined Homesites. d.The Developer has provided Homesites with rough grading responsive to the overall topographic and draining conditions of the site. Finish Homesite grading may be required to modify individual Homesites for specific needs and is the responsibility of the Homeowner. e.Building pad elevations shall provide a smooth physical transition from the curb to the front of the Residence. f.The finished floor elevation shall not be set greater than 6" above the finished pad grade, except for raised entries which may be up to 18" above finished pad grade. However, variations in pad elevation will be considered consistent with the intent of this section. g.No steep mounding that appears artificial is permitted. h.Any other grade changes are subject to review and approval of the CMEAC. 1. Grading design shall: 1)Minimize soil instability by providing adequate vegetative cover upon completion of building construction. 2)Ensure adequate site drainage. 3)Ensure that drainage is directed away from the inside ( or backside) of all perimeter and common area walls built by the Developer or adjacent Owners, unless specifically indicated on the Developer's rough grading plans. j.Grading .:ihould result in a graceful contouring of the Homesite rather than harsh geometric slopes, banks and pads. Where graded slopes meet natural terrain, there should be a smooth, gradual transition. Coral Mountain Estates Homesite Design Guidlines PAGE NUMBER 23 VERSION December 15, 2004 274 k.Turf areas should not exceed a 4: I slope and should have a minimum 1.5 percent slope for proper drainage unless detention is desired. 1.Shrub and groundcover areas should not exceed a 3: 1 slope and should hav� a minimum 1.5 percent slope. m.Irrigation nuisance water shall be directed to outfall in the established swales. n.Driveway slopes shall not exceed 12.5 percent with a maximum cross slope of 3 percent beyond the back of curb or sidewalk. o.Retaining walls constructed immediately adjacent to, or connecting with a building, should be constructed of a material that visually matches the exterior building material, or that is an integral material in the landscape. See Section VI.B. l .e for wall height Guidelines. p.All draining amenities including drain tiles, catch basins, sumps, bubble boxes, roof gutters and surface swales shall be kept free of debris and obstmction to ensure positive drainage flow of nuisance water. 3.IRRIGATION. a.Automatic irrigation systems must be installed on Homesites to conserve water and ensure proper watering of plant materials. No manualvalves are allowed. b.Automatic controls and enclosures are to be located in a service yard, mechanical room, or similar screened area out of public view. c.A pressure vacuum breaker (PVB) or reduced pressure backflow preventer (RPBP) is required for all residential irrigation. Atmospheric breakers are not allowed. This backflow device shall be discreetly located and visually screened with plant material from any view. d.All irrigation piping, connections, swing joints, sleeving, etc., shall be installed below grade. e.All control valves, gate valves, quick couplers, etc., shall be installed in valve boxes with removable lids flush with finished grade. No such equipment shall be located in turf areas. f.Head to head spray irrigation coverage is required in all lawn areas. g.Systems shall be designed so peak summertime lawn irrigation can be completed betweer1 the hours of 1 0:00PM and 6:00 AM. h.Irrigation systems and controller programs shall be designed to meet the peak demand of all plant material without overspray, runoff or overwatering. Installation of tension meters and rain guards are encouraged to prevent automatic systems from watering during periods of ram. i.Spray heads shall not throw water directly onto a foundation structure, roadway, walkway or paved surface. Coral Mountain Estates Hnmesite Design Guidlines PAGE NUMBER 24 VERSION December 15, 2004 275 j.Spray heads must remain a minimum of 3' from all perimeter or residential walls. k.Spray irrigated areas shall be a minimum of 6' wide. I.Drip irrigation is recommended for all shrub areas except in conditions that require spray irrigation ( e.g., annual color, some ground cover). All drip emitters shall be installed no more than 2" above finish grade. All sprayheads shall be pop ups when adjacent to vehicular or pedestrian travel, or within visible areas. m.It shall be Owner's responsibility to see that the irrigation systems are checked on a regular basis. All emitters, sprayheads and valves shall be properly adjusted for optimum coverage and minimal overspray onto walks, drives, walls or into planting areas not designed for additional water. n.The automatic controller shall be kept in proper working condition. It shall be adjusted, cleaned and repaired regularly to ensure all remove control valves are programmed to the appropriate watering and cycle times according to seasonal and/or climatic conditions. 4.Planting Design. a.The landscape architectural style and the architectural style of the Residence shall be compatible and integral. b.All trees shall be nursery grown, free of disease, of good habit and representing the best qualities of their species. c.Trees. The minimum number of trees and their required sizes are as follows: 1)Front Yards a)Large Trees Four-36" box b)Accent Trees Four-24" box 2)Rear Yards a)Large or Accent Trees Four -36" box 5.FRONT, REAR AND SIDE YARDS. Front rear and side yard areas must be landscaped with a combination of shrubs, groundcovers and turf to achieve 100% coverage after one year of planting. a.Landscape Ratio. No more than 33% of the Front Yard shall be non-organic material. Use of decorative, multi-colored gravel or synthetic turf is not allowed. Natural boulders, cobblestones, river rock or gravel may be an attractive supplement to the landscape, but should be limited. Boulders and rock groupings should be buried at least 30% so as to Coral Mountain Estates Homesite Design Guidlines PAGE NUMBER25 VERSION December 15, 2004 276 appear as natural rock outcroppings. Gravel mulch shall be earth tone in color. Owners shall provide calculations on plan submittals that show square footage of hardscape and softscape and percentage of each. b.Turf. Turf areas shall be limited to 75% of the Front Yard, excluding driveways and other hardscape. All turf areas shall be Hybrid Bermuda and shall be overseeded annually in the fall with perennial ryegrass. 6.Plant Materials. Plants that can withstand the extremes of climate experiences in the Coachella Valley should be selected. 7.Installation. Owners must install plant materials in a manner generally acceptable to the horticultural practices of the area and in a manner which will maximize chances of survival. 8.Maintenance. Owners shall maintain all plantings in a healthy growing condition. This includes but is not limited to weekly lawn mowing, weeding, pnming trees and shrubs, fertilizing, watering, removal of dead plants or parts of plants, replacement of plants and overseeding of lawn areas when necessary. No hedging of plant material will be allowed. All shrubs, vines and ground cover must be selectively pruned. Dead and dying plant material shall be removed and replaced with like species and size within 14 working days. Pruning of trees shall be done under the direction of a licensed arborist or landscape architect only. Pruning shall be done in a timely manner with respect to growth of the tree to maintain a healthy, aesthetically pleasing and natural canopy. Any modifications to the installed, approved landscape architectural design which is visible to the public view shall require approval by the CEMAC prior to any start of work. 9.Inspection. Final on-site inspection shall be made with the landscape contractor and the landscape architect at completion of construction as listed below. It shall be the general contractor's responsibility to call and coordinate for this inspection at the proper time. a.Final Landscape Inspection. Irrigation system and coverage, ground cover, vine attachment, landscape lighting, etc., will be examined at this time. b.Rough Grading and Drainage System Inspection. Benning, swales, rock and boulder placement, relationship of grade to hardscape amenities, placement of drainage amenities and positive drainage shall be examined. c.Location and arrangement of special landscape features will be inspected. After final inspection is complete and landscape installation is deemed safsfactory in workmanship and in accordance with the Coral Mountain Estates Homesite Design Guidlines PAGE NUMBER26 VERSION December 15, 2004 277 approved plans and specifications, written notice thereof shall be issued to the Owner by the CMEAC. VII.CONSTRUCTION PROCEDURES Proper care shall be exercised to protect the public health, safety and welfare during all phases of construction. All materials shall be stored in a manner that is not objectionable to public view. A.Construction Operations. 1.Nuisance Control. No construction operation or activity shall create any of the following effects to the extent they are permanent or are detectable without the use of instruments at any location outside of the Homesite upon which the operation or activity is conducted: a.Change of air temperature or humidity. b.Dust or other airborne particulate matter. c.Noxious odor. d.Glare from lighting or reflective materials. e.Disruption of television or radio reception. f.Excessively loud noise or music for long periods of time. g.Parking for construction personnel shall be permitted only on the Homesite of the Owner. No on-street parking for construction personnel is allowed. 2.Construction Fencing. Construction fencing is required around the peri,neter of the Homesite to control trash. The construction fencing must be, as a minimum, chain link with a windscreen. Permanent walls may be constructed instead of using temporary fencing. The temporary fencing and/or the permanent walls must be installed prior to any vertical construction and/or storage of any materials. The Developer and/or the CMEAC may enact strict procedures, temporary or permanent, at any time to ensure noise and dust abatement measures are taken by Owners and their contractors. 3.Cleanliness. a.Because local winds frequently carry debris from construction sites, each Homesite shall be kept free of trash, materials and waste. The site shall be left in a neat and orderly condition at the close of each workday. Scrap matjrial and debris shall be disposed of in contained trash receµtacles and such receptacles shall be collected and emptied prior to becoming over-filled. b.Hazardous debris and material shall be removed from the site each day. No hazardous material shall be stored on the site overnight. c.Weeds, debris and litter shall not be allowed to accumulate on-site. d.Should it become necessary for the Association to contact the Owner concerning the lack of cleanliness of their Coral Mountain Estates Homesite Design Guidlines PAGE NUMBER 27 VERSION December 15, 2004 278 Hor.1esite, one warning will be given. If the Homesite is not cleaned up in the time allowed, construction work will be tenninated until the Homesite is cleaned up. e.No trailers for temporary living quarters shall be allowed on-site. Construction trailers may be allowed subject to the approval of the Developer and/or the CMEAC. f.There shall be a minimum of one temporary restroom facility (with required washing facilities) per Homesite during construction. Such facilities shall be serviced regularly and kept clean at all times. Placement/location of these facilities must be approved by the CMEAC. g.Storage of construction materials on Streets and sidewalks is not permitted. 4.Construction Access. The only approved construction access during '�he time a Residence or other Improvements are being built will be over the approved driveway for the Homesite. VIII.DAMAGE REP AIR 1.Owners have the direct responsibility for the control of their contractors and the actions of their contractors. All liability for inappropriate and unlawful actions and activities in violation of the Declaration or Design Guidelines caused by contractors shall rest with the Owner. 2.Excess excavation materials must be hauled away from the CME community within 10 working days of excavation. 3.Damage and scarring to other property, including, but not limited to other Homesites, Streets, common areas, driveways, irrigation, landscaping, and/or other Improvements will not be permitted. If any such damage occurs, it must be repaired and/or restored promptly at the expense of the person causing the damage or the Owner contracting that person. 4.Upon completion of construction, each Owner and builder shall clean the construction site and repair all property which was damaged, including but not limited to restoring grades, planting shrubs and trees, as approved or required by the CMEAC, and repair of streets, driveways, pathways, drains, culverts, ditches, signs, lighting, and fencing. 5.Any damage not repaired by the Owner will be repaired by the Association as described in the Declaration. All costs for such repair will be withheld from the repair deposit described in Section III.B.3.b.10 (page 7). If the deposit is insufficient to pay the costs of repair, the Owner shall pay the balance to the Association promptly on demand. 6.Storage of any construction materials, machinery, tools or forms is not permitted on any adjacent Homesites. Coral Mountain Estates Homesite Design Guidlines PAGE NUMBER 28 VERSION December 15, 2004 279 CORAL MOUNTAIN ESTATES HOMESITE DESIGN GUIDELINES INDEX Accessory Structures, page 1 7 Antennas, page 11 Architectural Design Guidelines, page 11 Barbecues, page 17 Barbecues/Firepits, Page 19 Basements, page 14 Basketball, page 19 Benchmark, page 12 Boulders, Landscape, page 22 Building Colors, page 13 Building Heights, page 12 Building Mass and Scale, page 12 Building Projections, page 13 Building Siting and Orientation, page 10 Bulkplane Setback, page 9 Chimneys, page 16 City Approval, page 7 CMEAC, see Definitions p. 2 Columns and Archways, page 16 Common lot line walls, page 18 Common residential walls, shared costs, page 18 Construction Access, page 28 Construction Fencing, page 27 Construction Nuisance Control, page 27 Construction Parking, page 27 Construction Procedures, pag1;; 27 Courtesy Review, page 4 Damage Repair, page 28 Definitions, page 1 Design Review and Approval Process, page 3 Driveways, Page 19 Driveways, see Parking and Driveways, page 10 Easements, page 10 Exterior Garden/Courtyard Walls, page 15 Exterior Materials, page 13 Fees, page 7 Final Plan Approval, page 7 Final Plan Submittal, page 5 Fireplaces, page 19 Flagpoles and Antenna, page : 4 Floor Areas minimum, page 12 Fountains, page 20 Garages, page 12 280 Gate Entry Systems, page 11 Grading, page 23 Ground Coverage Ratio, page 12 Guesthouses, page 1 7 Hardscape Standards, page 18 Improvements Requiring Review, page 3 Inspection, Contractor Requirements, page 26 Irrigation, page 24 Jacuzzi, see Pool/Spa page 20 Landscape Architecture Design Guidelines, page 1 7 Landscape Elements/Boulders, page 22 Landscape Lighting Guidelines, page 21 Landscape Ratio, page 25 Landscape Standards, page 22 Lighting, Landscape, page 21 Lighting, Residential Exterior, page 16 Maintenance, page 22 Modifications to Final Approved Plans, page 7 No Liability of Committtee, page 8 Notice of Approval, page 8 Nuisance Control, page 27 Ornaments, page 20 Parking and Driveways, page 10 Patio Covers, page 15 Pavement Treatment, page 19 Pavement, Special, Page 19 Plan Requirements, page 3 Plan Submittal Procedures, page 3 Plant Maintenance, page 26 Plant Materials, page 26 Planting Design, page 25 Play equipment, page 19 Pool/Spa, page 20 Preliminary Plan Submittal, page 4 Professional Advice, page 8 Purpose, page 1 Regulations, page 1 Repair Deposit, page 7 Residential Exterior Lighting, page 16 Roof Design and Materials, page 14 Satellite Dishes, page 11 Sculptures and Artwork, page 17 Service Yards, page 17 Setbacks, page 8 Showers, page 20 Site Amenity Standards, page 11 281 Site Planning Guidelines, page 8 Sports Courts, page 11 Swimming pools, see Water Features, page 11 Tennis Courts, page 11 Trees, Specified Amounts, page 25 Turf (ratio), page 26 Utility Meters and Equipment, page 16 Utility Verification, page 18 Violations, page 8 Wall Color and Materials, page 19 Wall Height, page 18 Wall Locations, page 18 Wall Modifications, page 19 Walls, page 18 Water Features, page 11 Water Features, page 20 Window and Door Opemings, page 16 Windows, Skylights and Glazing, page 13 282 CORAL MOUNTAIN ESTATES DESIGN REVIEW APPLICATION Together with this Design Review Application, I have included a design review fee in the amount of $750.00 payable to Coral Mountain Estates Architectural Committee (CMEAC) along with conceptual plans for the home. The conceptual plans have been prepared according to the December, 2004 CME Homesite Guidelines. I understand that I or my designee must follow the three steps of plan submittal stated below: 1.Courtesy Review 2.Preliminary Plan Submittal, including $750.00 design review fee. See Section 111.C. l for fee requirements. 3.Final Plan Submittal, including $5,000.00 Repair Deposit. See Section 111.C.10. I understand that the Developer, CMEAC and Association, as defined in the Declaration of Coral Mountain Estates, do not have specific knowledge of construction rules and regulations issued by the City of La Quinta, County of Riverside, or other government entity, and such assume no liability or responsibility for violation of such. Compliance in construction with such entities is solely the responsibility of the Owner and his assigns. I understand it will take no longer than thirty (30) days at each stage to complete a formal review of each submittal presented to the CMEAC. I further understand that b0fore I commence construction, I must deposit $5,000.00 in an interest bearing account ofmy choice, naming CMEAC as a co owner of the account. I understand the purpose of this account (Repair Deposit) is to warrant against damages to common areas or adjacent homesites during construction of my residence Two signatures, one representing the Homeowner and one representing CMEAC, must be required to withdraw the funds from or liquidate this account. I will provide proof of such account to CMEAC within five (5)working days ofmy preliminary plan submittal. The account may be liquidated and funds returned to me, including interest accumulated, upon receipt of final approval from the CMEAC after construction of my home is complete. Signature of Lot Owner X Owner's Name/Mailing Address Owner's Telephone ( Architectural Firm Name Version Dec. 15, 2004 Date Telephone ( ) Lot #/Tract# License # CA# 1 283 Resolution No. 2026-XXX - EXHIBIT C Large Lot Qualified and Certified 2026-0001 57600 Coral Mountain Court; APN: 762-440-035 Adopted: March 17, 2026 I f.J 11 1 -1 I/ .. 1 .,,. m RETENTION BASIN CORAL MOUNTAIN CT. lmportonlNolice-UndergrrundSer.iceAlert @ !o,;l;,,•l1l/•mo1titr--m.llCodi""""" olijklldiro'""°"'-,."'is,,,,dbeln, ._..,Eo<o,.· .. 11o...,_r.,,.,..1Jg11w1 --alll�O<Rl--"-1 Rll.fllE ,t 1-1!00-221-2li00 1-t> "°""IJ "'Jo _,,,,..� r;) CoM1rUctloo conncto,ogrNsthoth0<c,:,rdm<•-.lthgonorolyo«opt•dconWoction pr0<U<00.coo1w,;ti011cootro<l""'""""''"'lo•H'"""1olt•nd<00>plt1•11,p<111e.t1I" p11,ito,C110ilions<iJrllljh«,1ruof con,lrJ<liooofhr,ojt<t,i'dJdlllj10ftl)O!cil-• andpr�l�l..,tU,iorequi-..,, .. t..,..,modttoappl1cootir>u<>J,.,..,,noto,limilO<llo "'"'"' �nwr,, <l'ld '"'"�uclioo conlractor '-rthor OIJ"'' to .. lond, ..-..ly C1IO hold d<1i:J,r,01....,.,i1>orm1..,n.,,,..,,ondollioMliroolorol«i•d.'1co,nectia,oithU,o Pff""'"''"" o1 _.. on this projoct -t"'l liM01 "�"'I �-lh< U -.il'l<lla ol ""'"In protcsoionol. J SEE SHEETS L-5 FOR CONSTRUCTION DETAILS CONSTRUCTION NOTES 1. ALL CONCRETE TO BE 6.5 SACK MIX TO OBTAIN A MINIMUM COMPRESSlVE STRENGTH OF 3000 PSI AT 28 DAYS 2 AU CONSTRUCTION TO BE PLUMB ANO TRUE UNLESS Oll-lER'MSE INDICATED J VE:RIFY 'Mll-l Tl-lE PRO..£CT SOILS ENGINEER Tl-lE NEED FOR REINFORCING, BASE MATERIAL, PRESAnJRATION, ETC FOR WALKS, STAIRS, WALL FOOTINGS, ETC 4. ALL MATERIALS ANO CONSTRUCTION TO CONFORM TO APPLICABLE GOVERNING CODES ANO ORDINANCES 5 AU CONCRETE PAVING TO BE A f.AINlf.AUM Of 31/2" THICK, COLORED CONCRETE-INTEGRAL COLOR, EXPANSION JOINTS, AT 8'-0" O.C.,UNLESS OTHER'MSE INDICATED 5 ALLOW FOR ADJOINING CONSTRUCTION 7 PAVING ANO CONCRETE SUBCONTACTORS ARE TO COOROINATE AND COOPERATE Wlll-l THE ELICTRIQAN, DRAIN LINE SUBCONTRACTOR AND IRRIGATION SUBCONTRACTOR FOR SLEEVING,PIPING AND CONDUIT UNDER ALL PAVING FINISH GRADING NOTES I Sl .CffALiORAINUNESAT AMINIMUM OFl/2% 2. ALL DRAIN LINE .UNCTIONSAND CHANGESOF DIRECTIONSTOBE MADE WITH 45 00 S\IIEEP TYPE EllS 3. PROVISIONSFOR POSIT1\.'E DRAINAG£0F AL1LANOSCAPED AREASTO TAKE PRECfOENCE OVER MOIJNDING ASOIAGRAMED ON GRADING PLAN 4 HQD FINISH GRADE 1 i" BELOW FINISH SU RFACE 5 SL OPE AL1EARTHEN AREASAT A MINIMUM OFl%TO DRAIN-2:tPREFERRED 6 SL OPE ALL F1NISH SU RFACESAT AMINIMUM OF1%TO DRAIN 7 ALL MATERIALSAND WORKMANSHIP ISTO CONFORM TO GO\.'ERNING CODES AND ORDINANCES 8 SL OPE IN U."1'1AREASISNOT TO EXCEED3:1 9 HQD FINISH GRADE A MINIMUM OF 4" BELOW TOP OF WALLS. 6" BELOW FINISH FLOCRSCf"9..ABSAND12"BELOW FINISH FLOORS ON C�VENTlONAL WOOO FlOCRING 10 PROVIOE DRAINLJNE CLEANOUTSAND/OOCATCHBASI NSAT A MINIMUM Of 50" 0.C.OOATEVERY01ANGE OF OIRECTION 11 HOLD INVERTSON DRAINUNESA MINIIJUM OF8"BELOW FINISH GRADE SU RFACE 12 RAMPS INTO BULDINGS NOT TO EXCEED A SL OPE OF 1:12 00 8.3% GRADIENT 13 PRQ..{CT WALKS NOT TO EXCEED A SL OPE OF 1:20 00 5% GRADIENT MA5Cf,RYWAI.L NOIES_ 1. GROOT ALL ca.LS '111TH STEEL SCUD -IF RETAINING, GROOT All CELLS SCUD 2. GROOT SHAI.L BEFLUIJCONSISTENCYWITHA RATIO CJ"(1)PAAT CEUENT.(3) PARTSSAN0,(2)PARTS P'l:AGRA;U 3 MORTAR SHAllOCF"RESIUPREPAREOANO UNIFORMLY MIXEO INTI-CRATIO OF(1)PAATCEJ.1£NT,(1/2)PAAT LIME PUTTY,{4-1/2)PARTSS AHDANO SHAU.CONFORM TO A.S.T.M.C270 4 REINf ORCING SIEELS HALL BE Dff OOMEDBAAS CONFORMtlG T0 A.S.T.M.A615 """"' 5 CONSTRIJCTWALLSPLU MBAN0 TRUE,S T EPfOOTINGSIN E�IIJ'.lCK INCREMENTS 7 �Ol��ANS HIP ANO MAT ERIALS TO CONFOOM TO GO'IERNING COOESAHO 8 AU. S TUCCO 00 SLUMP8L0Ck WALLS ro HAVE a>EN HE:Ml JCINTS AT 32 " o.c. AT FIRS TCOIJRSEAB0'IE GRAOE F0R 0RAINAG( 9 AU.FOOTINCS SHAL.LBEPOORE0ON UN0ISTURBE0NATURAI.SOCOO CO MP ACTE0 fl.L(95%REI..AllVE.) 10 -:f-=AHt��GR��S NciOw����'i Mi'aM Br ,1,4�l:l:i1:E!ft�S°1LAP Wl,IEIERS 11. 00'11{LS SHAU.BE ATL£AST EOOAI.IN Sl2E ANO SPAONCTOVERTICAI..BARS 12 ��::��� 1r�:o��""�\g��r:�1�:/ls�Ai� �rANOAROS 13 PORllAHDCEMENT SHALL CONfORM TO A.S.T.M.C15D 14 CONCRETES HA LLHAVE AM:NI MUM C�PRES S IYES TRENG™CM'"300CI P.S .I.AT280AYS 15 PROl'IOE El!PANSl()IJOINTS INWAU.S AT25"-0"0.C.MAX. 16 WALL roonNGS TO 1£ CONTIHUOIJS UNDffi CATE OPENINGS FINISH MATERIAL SCHEDULE 1,POl'.l; PER DflAILS"Ht"ONSHEET L-5.UQiTSPER PI.AN 2. SPA: PEROCTAIL1"0N SHEET L-5 81.PPER8AO<.US,4LOl'CR8A0<.£TSAIID4CAI.F.EISN«J1P£NTAIR COLOR\11-lEELUQil 4. POO.. DE CK WAIJ(WAY 9.JRFACC llOHA TAN CONCfU[ '111TH A UQiT AOO FINISH 5.FR()rj!EMTRY PA\U!Sl.lRF.-CE:D<rlGroy--P..,\..--O,,,.e<UAql,olinaPo,.,BYANcnLISPAVER'S '1t'.Oled'1arondomr\1Mer?<J\lern 6. MOTTJI COORT: D<rk Gray--Pe•t..--Chon:ool ""'dr1a Po..,,, BY ANGEWS PAVERS '11toled'1orl>'ld'-"'n.mer?<i\\ern t:.r.:l u z t:.r.:l a ifJ. t:.r.:l 0::: >- � 0::: 0::: � e. \IO'XI OC(J( roersnrc1m BY CUNT fc,!,------� 7.SHADE SIRUCT\JRESPER ARC HITECIS�S � -•·=�="'-"'-°"-�_ru_ae_.,_sm_m_,_"_""_� ________ _ LEGEND �-INDICATES SECTION 'l:]7-INOICATES SHEET NUMBER �INDICATES ELEVATION �INOICATES SHEET NUf.ABER P.A.-PLANTAREA LAWN -LAIIN SYN-LAWN-SYNTl-lETlC LA� NORTH SCALE: f:l _____ _ f:l _____ _ f:l _____ _ SHEE:]'• L-1 DATE: 5--16-237 CONSTRUCTION PLAN 284 - SITE. PLAN 285 JackNicklaus B l v d Merion Ri vier a Riv ie r a C o r a l V i e w W a y Sto ne Cr e e k T r l E 58 t h Av e S e go vi a View W ay Arag o n W a y Stone C r e e k T r l W Palat i ne C t R o s e wo o d C t He r mi t a g e Herm i t ag e In t e rl a c h e n R i v i e r a Weis k o p f Weis kopf Meadowbrook Cal le Azul V ia Puerta A z u l S a n t a R o s a T r l S V all ey Ln S a l i d a D e l S o l S a n t o T h o m a s 0 500250 Feet m City Boundary Parcel 500 ft Buffer from Parcel Large Lot Inventory Address: 57600 Coral Mountain Court, La Quinta, CA 92253 APN: 762-440-035 Size: Approx. 92,410 square feet Parcel Information ATTACHMENT 286 Full Report Riverside County Parcel Report DISCLAIMER Maps, permit information and data are to be used for reference purposes only. Map features are approximate, and are not necessarily accurate to surveying or engineering standards. The County of Riverside makes no warranty or guarantee as to the content (the source is often third party), accuracy, timeliness, or completeness of any of the data provided, and assumes no legal responsibility for the information contained on this map. Any use of this product with respect to accuracy and precision shall be the sole responsibility of the user. ASSESSOR DATA 762440035 Lot Size Address Previous APN APN 762-440-035-1 762240019 57600 CORAL MOUNTAIN CT, LA QUINTA CA 92253 2.15 Mailing Address Owner Name(s)NOT AVAILABLE ONLINE 8450 HINTERLAND DR SAN DIEGO CA 92127 Legal Description Recorded Book/Page: Subdivision:TR 29963 MB 340/36 Lot/Parcel: Block: Tract Number:3 Property Characteristics Property Code 57600 CORAL MOUNTAIN CT, LA QUINTA CA 92253 Class Code Single Family Dwelling Year Constructed: Baths: Bedrooms: Construction Type: Garage Type: Property Area (sq ft): Roof Type: Stories: Pool: Central Cool: Central Heat: 2025 1 2 1011 sq ft. Wood or Light Steel (D) YES YES YES Year Constructed: Baths: Bedrooms: Construction Type: Garage Type: Property Area (sq ft): Roof Type: Stories: Pool: Central Cool: Central Heat: 2025 1 6 3 12269 sq ft. Wood or Light Steel (D) YES YES YESTile/Slate Attached Garage PARCEL DATA City Boundary LA QUINTA City Spheres of Influence NOT IN A CITY SPHERE LAFCO Case/Date 88-97-4 (09/01/1989) Proposed City Annexation N/A Elevation -26 ft NOT IN A TRIBAL LANDIndian Tribal Land March Joint Powers Authority NOT IN THE JURISDICTION OF THE MARCH JOINT POWERS AUTHORITY Supervisorial District V MANUEL PEREZ, DISTRICT 4 Thomas Bros. Map Page/Grid PAGE: 5530, GRID: B6 Township/Range T6SR7E SEC 21 SWSE PLANNING more... Report printed on Monday, September 29, 2025 05:32 PM gis1_mmc_rptFull_v041 20250727 Page 1/5 1ff866f21aaf4b9d8f09c30587e792e4 ATTACHMENT 2 287 Agricultural Preserve NOT IN AN AGRICULTRAL PRESERVE Airport Compatibility Zones NOT IN AN AIRPORT COMPATIBLITY AREA Airport Influence Areas NOT IN AN AIRPORT INFLUENCE AREA Area Plan (RCIP)Western Coachella Valley NOT IN A COMMUNITY ADVISORY COUNCILCommunity Advisory Councils Community Facility Districts NOT IN A COMMUNITY FACILITY DISTRICT General Plan Policy Areas NOT IN A GENERAL PLAN POLICY AREA General Plan Policy Overlays NOT IN A GENERAL PLAN POLICY OVERLAY Historic Preservation Districts NOT IN A HISTORIC PRESERVATION DISTRICT Land Use Designations CITY Residential Permit Stats Expected Units: BRS Permit Units: Current Permits: Cumulative Total: % of Expected: Final Issued Active Environmental Justice Communities NOT IN AN ENVIRONMENTAL JUSTICE COMMUNITY Specific Plans NOT IN A SPECIFIC PLAN Zoning Classifications (ORD. 348)Contact the Planning Dept at https://planning.rctlma.org/Contact-Us for more information CHECK WITH THE CITY FOR MORE INFORMATION Zoning Overlays NOT IN A ZONING OVERLAY Zoning Districts and Zoning Areas NOT IN A ZONING DISTRICT/AREA ENVIRONMENTAL more... Coachella Valley Multi-Species Habitat Conservation Plan (CVMSHCP) Plan Area COACHELLA VALLEY NOT COACHELLA VALLEY CONSERVATION AREACVMSHCP Conservation Area CVMSHCP Fluvial Sand Transport Special Provision Areas NOT IN A FLUVIAL SAND TRANSPORT SPECIAL PROVISION AREA Habitat Acquisition and Negotiation Strategy/Expedited Review Process NOT IN A HANS/ERP PROJECT Vegetation (2005)NOT IN A VEGETATION AREA NOT IN A WESTERN RIVERSIDE COUNTY PLAN FEE AREAWestern Riverside County Multi- Species Habitat Conservation Plan (WRMSHCP) Plan Area NOT IN A CELL GROUPWRMSHCP Cell Group WRMSHCP Cell Number NOT IN A CELL NUMBER FIRE Fire Hazard Classification (Ord. 787)NOT IN A FIRE HAZARD ZONE NOT IN A FIRE RESPONSIBILITY AREAFire Responsibility Area DEVELOPMENT FEES CVMSHCP Fee Area (Ord 875)COACHELLA VALLEY Report printed on Monday, September 29, 2025 05:32 PM gis1_mmc_rptFull_v041 20250727 Page 2/5 1ff866f21aaf4b9d8f09c30587e792e4 288 Development Agreements NOT IN A DEVELOPMENT AGREEMENT WESTERN COACHELLA VALLEY, AREA 2Development Impact Fee Area (Ord. 659) Eastern Transportation Uniform Mitigation Fee (TUMF) (Ord. 673) IN OR PARTIALLY WITHIN A TUMF FEE AREA NOT IN A ROAD BRIDGE BENEFIT DISTRICTRoad & Bridge Benefit District Stephen’s Kangaroo Rat Fee Area (Ord. 663.10) NOT IN THE SKR FEE AREA Western Transportation Uniform Mitigation Fee (TUMF) ( Ord. 824) NOT IN THE WESTERN TUMF FEE AREA WRMSHCP Fee Area (Ord. 810)NOT IN A WESTERN RIVERSIDE COUNTY PLAN FEE AREA more...TRANSPORTATION Circulation Element Ultimate Right-of-Way NOT IN A CIRCULATION ELEMENT RIGHT-OF-WAY Community and Environmental Transportation Acceptability Process Corridors NOT IN A CETAP CORRIDOR Road Book Page 222 Transportation Agreements NOT IN A TRANS AGREEMENT HYDROLOGY Flood Control District COACHELLA VALLEY WATER DISTRICT Flood Plan Review OUTSIDE FLOODPLAIN, REVIEW NOT REQUIRED Water District COACHELLA VALLEY WATER DISTRICT Watershed WHITEWATER GEOLOGIC Fault Zone NOT IN A FAULT ZONE Faults NOT IN A FAULT LINE Liquefaction Potential MODERATE Paleontological Sensitivity HIGH SENSITIVITY (HIGH A): BASED ON GEOLOGIC FORMATIONS OR MAPPABLE ROCK UNITS THAT ARE ROCKS THAT CONTAIN FOSSILIZED BODY ELEMENTS, AND TRACE FOSSILS SUCH AS TRACKS, NESTS AND EGGS. THESE FOSSILS OCCUR ON OR BELOW THE SURFACE Subsidence ACTIVE MISCELLANEOUS 2010 Census Tract 456.13 Communities LA QUINTA Farmland OTHER LANDS Lighting (Ord. 655)ZONE: B School District COACHELLA VALLEY UNIFIED Special Notes PLEASE REFER TO ORDINANCE 457.96 FOR COACHELLA VALLEY AGRICULTURAL GRADING EXEMPTIONS.|WITHIN IMPERIAL IRRIGATION DISTRICT UTILITY BOUNDARY CONTACT AT 800-303-7756 OR 760-335-3640 Report printed on Monday, September 29, 2025 05:32 PM gis1_mmc_rptFull_v041 20250727 Page 3/5 1ff866f21aaf4b9d8f09c30587e792e4 289 Tax Rate Areas 020179 - CITRUS PEST CONTROL 2 020179 - CITY OF LA QUINTA 020179 - CO FREE LIBRARY 020179 - CO STRUCTURE FIRE PROTECTION 020179 - COACHELLA VALLEY JOINT BLO HS 020179 - COACHELLA VALLEY PUBLIC CEMETERY 020179 - COACHELLA VALLEY REC & PK 020179 - COACHELLA VALLEY RESOURCE CONS 020179 - COACHELLA VALLEY UNIFIED SCHOOL 020179 - COACHELLA VALLEY WATER DISTRICT 020179 - CSA 152 020179 - CV MOSQUITO & VECTOR CONTROL 020179 - CVWD IMP DIST 1 DS 020179 - CVWD IMP DIST 55 020179 - CVWD STORM WATER UNIT 020179 - DESERT COMMUNITY COLLEGE 020179 - GENERAL 020179 - GENERAL PURPOSE 020179 - RDV PROJ 4-THERMAL 020179 - RIVERSIDE CO OFC OF EDUCATION Vapor Intrusion Mitigation Systems NOT IN A VAPOR INTRUSION MITIGATION SYSTEM DEPARTMENT OF ENVIRONMENTAL HEALTH PERMITS Septic Systems Permit Id Plan Review Submitted Date Status N/A N/A N/A Permit Number Type of Well StatusService Type Application Date Well Water N/A N/A N/A N/A PLUS PERMITS & CASES Case Case Description Status Administration Cases N/A N/A N/A Case Case Description Status Building and Safety Cases N/A N/A N/A Case Case Description Status Code Cases N/A N/A N/A Case Case Description Status Fire Cases N/A N/A N/A Case Case Description Status Planning Cases N/A N/A N/A Report printed on Monday, September 29, 2025 05:32 PM gis1_mmc_rptFull_v041 20250727 Page 4/5 1ff866f21aaf4b9d8f09c30587e792e4 290 Case Case Description Status Survey Cases MAP29963 ISSUED Case Case Description Status Transportation Cases N/A N/A N/A Report printed on Monday, September 29, 2025 05:32 PM gis1_mmc_rptFull_v041 20250727 Page 5/5 1ff866f21aaf4b9d8f09c30587e792e4 291 5 154259 Corporation Name Corporation Name Coral Mountain Estates, Inc. Initial Street Address of Principal Office of Corporation Principal Address 57615 CORAL MOUNTAIN COURT LA QUINTA, CA 92253 Initial Mailing Address of Corporation Mailing Address 57615 CORAL MOUNTAIN COURT LA QUINTA, CA 92253 Attention Mark Engler Agent for Service of Process Agent Name Mark Engler Agent Address 57615 CORAL MOUNTAIN COURT LA QUINTA, CA 92253 Purpose Statement This corporation is a Nonprofit Mutual Benefit Corporation organized under the Nonprofit Mutual Benefit Corporation Law. The purpose of this corporation is to engage in any lawful act or activity other than credit union business, for which a corporation may be organized under such law. Additional Statements The specific purpose of this corporation is to Serve as a Common Interest Development Homeowners Association Notwithstanding any of the above statements of purpose and powers, this corporation shall not, except to an insubstantial degree, engage in any activities or exercise any powers that are not in furtherance of the specific purpose of this corporation. Additional information and signatures set forth on attached pages, if any, are incorporated herein by reference and made part of these Articles of Incorporation. Electronic Signature I declare that I am the person who executed this instrument, which execution is my act and deed. Mark Engler Signature 07/12/2022 Date STATE OF CALIFORNIA Office of the Secretary of State ARTICLES OF INCORPORATION CA NONPROFIT CORPORATION MUTUAL BENEFIT California Secretary of State 1500 11th Street Sacramento, California 95814 (916) 653-3516 B0 9 0 2 - 2 5 7 8 0 7 / 1 2 / 2 0 2 2 1 1 : 0 7 A M R e c e i v e d b y C a l i f o r n i a S e c r e t a r y o f S t a t e Page 1 of 1 For Office Use Only -FILED- File No.: 5154259 Date Filed: 7/12/2022 ATTACHMENT 3 292 BYLAWS OF CORAL MOUNTAIN ESTATES, INC. A California Nonprofit Mutual Benefit Corporation ATTACHMENT 3 293 BYLAWS OF CORAL MOUNTAIN ESTATES. INC, TABLE OF CONTENTS ARTICLE I. PLA OF OWNERSHIP Section 1.01. Name. Section 1.02. Principal Office. Section 1.03. Application. Section 1.04. Definitions. Section 1.05. Membership Rights. Section 1.06. Successor Entity ARTICLE II. MEET GS OF MEIVIBERS Section 2.01. Place of Meetings. Section 2.02. Annual Meetings. Section 2.03. Special Meetings. Section 2.04. Notice of Meetings. Section 2.05. Waiver of Notice or Consent of Absentees. Section 2. 06. Voting Rights. Section 2.07. Record Date of Membership. Section 2.08. Quorum. Section 2.09. Parliamentary Procedure. Section 2.10. Proxies. Section 2.11. Action Taken Without a Meeting. Section 2.12. Approval by Members Required by Statute. ARTICLE III. BOARD OF DIRECTORS Section 3.01. Number. Section 3.02. Nomination. Section 3.03. Election. Section 3 .04. Special Election Procedure. Section 3.05. Term. Section 3.06. Removal ofDirectors. Section 3.07. Vacancies. Section 3.08. Compensation. Section 3. 09. Powers and Duties. Section 3.10. Limitations on Powers. ATTACHMENT 3 294 ARTICLE IV. MEETINGS OF DIRECTORS Section 4.01. Regular Meetings. Section 4.02. Spec ial Meetings. Section 4.03. Emergency Meetings Section 4.04. Quorum. Section 4.05. Open Meetings. Section 4.06. Executive Session. Section 4.07. Adjournment. Section 4.08. Minutes. Section 4.09. Action Taken Without a Meeting. ARTICLE V. OFFICERS Section 5.01. Enumeration of Officers. Section 5.02. Appointment and Tenn. Section 5. 03. Resignation and Removal. Section 5.04. Compensation. ARTIC E Vl, PRESIDENT Section 6.01. Election. Section 6.02. Duties. ARTICLE VII. VICE-PRESIDENT Section 7.01. Election. Section 7.02. Duties. AR TTCLE VIII, SECRETARY Section 8.01. Election. Section 8.02. Duties. ARTICLE IX. CHIEF FINA CIAL OFFICER Section 9.01. Election. Section 9.02. Duties. ARTICLE X. SUBORDINATE OFFICERS Section 10.01. Appointment. Section 10.02. Duties. ATTACHMENT 3 295 ARTICLE XL BOOKS AND RECORDS Section 11.01. Required Books and Records. Section 11.02. Inspection Rights. ARTICLE XII. NONLIABILITY AND INDEMNIFICATIO Section 12.01. Definition of Agent. Section 12.02. Nonliability. Section 12.03. Ind emnification. Section 12.04. Approval by Board. Section 12.05. Payments. Section 12.06. Insurance. ARTICLE XIII. AlvfENDME TS Section 13.01'. Amendment of Bylaws. Section 13.02. Prior Approval of Commissioner . . ., 712 ATTACHMENT 3 296 BYLAWS OF CORAL MOUNTAIN ESTATES, INC. A California Nonprofit Mutual Benefit Corporation ARTICLE I. PLAN OF OWNERSHIP Section 1.01. The name of the association is Coral Mountain Estates, Inc. (the "Association"). Section 1.02. The principal office of the Association is located at 57615 Coral Mountain Court, La Quinta, California. The Board of Directors is hereby granted full power and authority to change the principal office of the Association from one location to another in the County of Riverside, California. Any such change shall be noted by the Secretary in these Bylaws, but shall not be considered an amendment of these Bylaws. Section 1.03. These Bylaws are applicable to the residential planned development known as Coral Mountain Estates ("Development"), located west of Madison Street and North of 58th Avenue in the City of La Quinta in Riverside County, California. These Bylaws are also applicable to all Members of the Association and all tenants, employees, and other persons who use the facilities of the Development in any manner. Section 1.04. Unless otherwise specified in these Bylaws, the definitions set forth in Article I of the Declaration for Coral Mountain Estates ("Declaration") recorded or to be recorded in the Office of the Recorder of Riverside County, California, and as amended, apply to these By laws. Section 1.05. The qualification for membership provisions of Section 3.02 of the Declaration are hereby incorporated by reference. Section 1.06. The Association is the successor entity to the unincorporated association called "Coral Mountain Owners' Association." The Association was formed by the filing of Articles of Incorporation with the California Secretary of State on July 12, 2022, as File No. 5154259. ARTICLE II. MEETINGS OF MEMBERS Section 2.01. All meetings of the Members shall be held at a place designated by the Board. This meeting place shall be within the Development or as close to it as possible. If no meeting place is designated, the meetings shall be held at the principal office of the Association. No meeting of the Members shall, unless unusual conditions exist, be held outside of Riverside County, California. Section 2.02. The first meeting of the Members of the Association shall be held within six months after the closing of the sale of the first Lot within the Development. ATTACHMENT 3 297 Thereafter, the annual meeting of the Members shall be held on the second Tuesday of February of each succeeding calendar year at the hour of 7:00 p.m. If the day for the annual meeting of the Members is a legal holiday, the meeting shall be held at the same hour on the next day that is not a Saturday, Sunday, or legal holiday. Section 2.03. Special meetings of the Members may be called for any lawful purpose by a majority of a quorum of the Board, the President of the Association, or by a written request signed by Members representing at least 5 percent of the total voting power of the Association. The special meeting shall be held not less than 35 nor more than 90 days after adoption of the resolution or receipt of the request. Only that business stated in the notice of meeting given pursuant to Section 2.04 of these Bylaws shall be transacted at the special meeting. Section 2.04. The Secretary of the Association shall give written notice of any Members' meeting to each Member of record. Except as provided below, the notice shall be given at least 10 but not more than 90 days before the meeting, by first class mail or by personal delivery. If a special meeting is called by Members pursuant to Section 2.03 of these Bylaws, the notice shall be given within 20 days after receipt of the request for the meeting. If that 20-day requirement is not satisfied, the Members who called the meeting may give the notice. Any notice of meeting shall be addressed to the Member at the address appearing on the books of the Association, or the address supplied by the Member to the Association for this purpose. If there is no such address, notice shall be given at the principal office of the Association or by publication at least once in a newspaper of general circulation in the county in which the principal office is located. The notice shall state the place, date, and time of the meeting. The notice shall also specify those matters the Board intends to present for action by the Members. In the case of a special meeting, the only matters that may be voted on are those matters that were mentioned in the notice of meeting. In the case of an annual meeting, any proper matter may be presented at the meeting for action, except as provided in Section 2.08 of these Bylaws. If Directors are to be elected at the meeting, the notice shall include the names of all those who are nominees at the time the notice is given. Section 2.05. The transactions of any meeting of Members, however called and noticed, shall be as valid as though taken at a duly called, noticed, and held meeting, if: ( 1) a quorum is present either in person or by proxy; and (2) either before or after the meeting, each of the Members not present in person or by proxy, signs a written waiver of notice, or a consent to the holding of the meeting, or an approval of the Minutes of the meeting. Any such waiver, consent, or approval shall be filed with the corporate records or made a part of the Minutes of the Meeting. Section 2.06. The voting of membership provision set forth in Section 3.04 of the Declaration is hereby incorporated by reference. Section 2.07. The Board shall fix, in advance, a record date or dates for the purpose of determining the Members entitled to notice of and to vote at any meeting of Members. The record date for notice of a meeting shall not be more than 90 nor less than 2 ATTACHMENT 3 298 10 days before the date of the meeting. The record date for voting shall not be more than 60 days before the date of the meeting or before the date on which the first written ballot is mailed or solicited. The Board may also fix, in advance, a record date for the purpose of determining the Members entitled to exercise any rights in connection with any other action. Any such date shall not be more than 60 days prior to the action. Section 2.08. At any meeting, the presence either in person or by proxy of Members entitled to cast at least 66 percent of the total voting power of the Association shall constitute a quorum for any action except as otherwise provided in the Articles, Bylaws, or this Declaration. The Members present at a duly called or held meeting at which a quorum is present may continue to transact business until adjournment notwithstanding the withdrawal of enough Members to leave less than a quorum, if the action taken, other than adjournment, is approved by at least a majority of members required to constitute a quorum. If a quorum is not present at any time at a duly called meeting, a majority of those Members present in person or by proxy may adjourn the meeting to a time not less than five days nor more than 30 days from the meeting date, but no other business may be transacted. An adjourned meeting may be held without written notice, provided that notice is given by announcement at the original meeting. If no such announcement is made, or if the selected date is changed after adjournment, notice of the time and place shall be given to Members in the manner provided in Section 2.04 of these Bylaws. The quorum for the adjourned meeting shall be 66 percent. Section 2.09. All meetings of the Members shall be conducted in accordance with (1) a recognized system of parliamentary procedure, or (2) any parliamentary procedures adopted by the Association. Section 2.10. At any meeting of Members, each Member may vote in person or by proxy. All proxies shall be in writing and filed with the Secretary of the Association. Every proxy shall be revocable and shall automatically cease upon conveyance by the Member of his or her Lot, or upon receipt of notice by the Secretary of the death or judicially declared incompetence of the Member. No proxy shall be valid after 11 months from the date of its execution unless otherwise specifically provided in the proxy. The maximum term of any proxy shall be three years from the date of its execution. Section 2.11. Any action that may be taken at a meeting of the Members, except for the election of Directors, may be taken without a meeting provided the following ballot requirements are satisfied: (a)The Association shall distribute a written ballot to every member entitled to vote on the matter. The ballot shall be solicited in the same manner as provided in Section 2.04 of these Bylaws for the giving of notice of meetings of Members. (b)The ballot shall set forth the proposed action, provide an opportunity to specify approval or disapproval of any proposal, provide a reasonable time within which to return the ballot, indicate the number of responses needed to meet the quorum requirement, and 3 ATTACHMENT 3 299 state the percentage of approvals necess ary to pass the measure submitted. (c)The proposed action shall be considered approved if: (1)The number of votes cast by ballot within the specified time period equals or exceeds the quorum required to be present at a meeting authorizing the action; and (2)The number of approvals equals or exceeds the number of votes that would be required for approval at a meeting at which the total number of votes cast was the same as the number of votes cast by ballot. (d)No written ballot shall be revoked. Section 2.12. Any approval by the Members of the following proposals, other than unanimous approval by those entitled to vote, shall be valid only if the general nature of the approved proposal was stated in the notice of meeting or any waiver of notice of meeting: (a)Removing a director without cause pursuant to Section 7222 of the California Corporations Code; (b)Filling vacancies on the Board pursuant to Section 7224 of the California Corporations Code; (c)Entering into or approving a contract or transaction between the Association and one or more of the Directors, or between the Association and any entity in which one or more of the Directors has a material financial interest, pursuant to Section 7233 of the California Corporations Code; (d)Amending the Articles pursuant to Section 7812 of the California Corporations Code; (e)Electing to dissolve the Association pursuant to Section 8610 of the California Corporations Code; or (f)Approving a plan of distribution in connection with the dissolution ofthe Association pursuant to Section 8719 of the California Corporations Code. ARTICLE III. BOARD OF DIRECTORS Section 3.01. The affairs of this Association shall be managed and its duties and obligations performed by an elected Board of Directors, consisting of three (3) persons. Section 3.02. Nominations for election to the Board of Directors may be made by any of ATTACHMENT 3 300 the following: (a)A nominating committee appointed by the Board at least 90 days prior to an annual meeting of Members, provided the Board receives the committee's nomination or nominations at least 30 days prior to the annual meeting of Members. (b)A written petition signed within 11 months preceding the annual meetingby Members representing 25 percent of the "voting power" of the Association. The petition shall identify the nominee, contain that person's written consent to serve as a Director, and be delivered to the Secretary of the Association at least 30 days prior to the annual meeting. (c)Any Member who is present in person, or by the proxy of any Member who is present by proxy, at the annual meeting of Members at which the Director is to be elected. Section 3. 03. Voting for Directors shall be by secret written ballot. At the first annual meeting of the Association, the Members shall fill, by election, all positions on the Board of Directors. Subsequent elections shall also be held at the annual meetings. However, if an annual meeting is not held or does not include an election, the election may be held at a special meeting of members called for that purpose. At an election the Members or their proxies may cast, in respect to each vacancy, as many votes as they are entitled to exercise under the provisions of these Bylaws. Each Member entitled to vote on the election may cumulate his or her votes and give one candidate a number of votes equal to the number of Directors to be elected multiplied by the number of votes to which the Member is entitled, or distribute the Member's votes on the same principle among as many candidates as the Member thinks fit. No Member shall be entitled to cumulate votes for a candidate or candidates unless the candidate's name or candidates' names have been placed in nomination prior to voting and a Member has given notice at the meeting prior to the voting of the Member's intention to cumulate votes. If any one Member has given this notice, all Members may cumulate their votes for candidates in nomination. The persons receiving the highest number of votes shall be elected. Section 3.04. Notwithstanding any other provision of these Bylaws, for so long as a majority of the voting power of the Association resides in Declarant, or so long as there are two classes of membership in the Association, at least one Director(s) shall have been elected solely by the votes of Members other than Declarant. If, at any election, Members other than Declarant do not have a sufficient percentage of the voting power to satisfy that requirement, the one position on the Board shall be filled by the candidate(s) who receive(s) the highest number of votes cast by Members other than Declarant. Any remaining positions on the Board shall be filled in accordance with normal voting procedures. Section 3.05. Each Director shall hold office until the election of his or her successor or until the Director's death, removal, or judicial adjudication of mental incompetence. The term of office of each Director shall be two years. ATTACHMENT 3 301 Thereafter, at each annual meeting, any vacancies on the Board created by death, resignation, removal, judicial adjudication of mental incompetence, or expiration of term shall be filled. The term of office of each Director elected to fill a vacancy created by the expiration of the term of office of the preceding Director shall be the same length as his or her predecessor's term. The term of office of any Director elected or appointed to fill a vacancy created by any event other than the expiration of the predecessor Director's term shall be the balance of the unserved term of the predecessor. Any person serving as a Director may be re-elected, and there shall be no limitation on the number of terms a Director may serve. Section 3. 06. Directors may be removed as follows: (a)The Board may declare vacant the office of a Director on the occurrence of any of the following events: of court; (1)The Director has been declared of unsound mind by a final order (2)The Director has been convicted of a felony; (3)The Director has been found by a final order or judgment of any court to have breached duties imposed by Corporations Code Section 7238 on directors who perform functions with respect to assets held in charitable trust; or (b)One or more Directors may be removed prior to the expiration of their terms, without cause, at an annual or special meeting of the Members. Any removal without cause shall be approved (1) by a majority of the total voting power of the Association. Notwithstanding the foregoing, unless the entire Board is removed from office by the vote of the Members, an individual Director shall not be removed prior to the expiration of his or her term of office if the number of votes cast against the removal, or not consenting in writing to the removal, would be sufficient to elect the Director if voted cumulatively at an election at which the same total number of votes were cast (or, if the action is taken by written ballot, all memberships entitled to vote were voted) and the entire number of Directors authorized at the time of the Director's most recent election were then being elected. A Director who has been elected to office solely by the votes of Members other than Declarant as required by Section 3.04 of these Bylaws, may be removed from office prior to the expiration of his or her term of office only by the vote of at least 51 percent of the voting power of Members other than Declarant. If a Director is removed at a meeting, a new Director may be elected at the same meeting. Section 3. 07. Any vacancy on the Board caused by the death or resignation of a Director shall be filled by the remaining Directors. The successor shall serve for the unexpired term of his or her predecessor. The Board shall not fill a vacancy on the Board created by the removal of a Director, except with the vote or written assent of a majority of each class of Members. C, ATTACHMENT 3 302 Section 3.08. A Director shall not receive any compensation for any service he or she may render to the Association; provided, however, that a Director may be reimbursed for actual out-of-pocket expenses incurred by the Director in the performance of his or her duties. Section 3.09. The Board's powers and duties shall include, but shall not be limited to, the following: (a)Enforcement of the applicable provisions of this Declaration, the Articles, Bylaws, and any other instruments governing the ownership, management, and control of the Development. (b)Payment of taxes and assessments that are, or could become, a lien on all or a portion of the Common Area. Association. (c)Contracting for casualty, liability, and other insurance on behalf of the ( d)Contracting for goods and services for the Common Area, facilities, and interests of the Association, subject to the limitations set forth in Section 3.10 (a) of these By laws. (e)Delegation of its powers to any committees, Officers, or employees of the Association expressly authorized by the Governing Instruments. (f)Preparation of budgets and financial statements for the Association as prescribed in the Governing Instruments. (g)Formulating Rules and Regulations for the use and operation of the Common Area and facilities owned or controlled by the Association. (h)Initiating and executing of disciplinary proceedings against Members for violations of provisions of the Governing Instruments in accordance with procedures set forth in the Governing Instruments. (i)Entering any Lot or improvement on a Lot to perform necessary construction, maintenance, or emergency repair work for the benefit of the Common Area or the Members in the aggregate. U)Electing the Officers of the Association. (k)Filling vacancies on the Board of Directors, except for a vacancy created by the removal of a Director. (1)Reviewing the following on at least a quarterly basis: 7 ATTACHMENT 3 303 Association. (1)A current reconciliation of the operating accounts of the (2)A current reconciliation of the reserve accounts of the Association. (3)The actual reserve revenues and expenses for the current year compared with the budget for the current year. (4)The most current account statements prepared by the financial institution where the Association has its operating and reserve accounts. (5)An income and expense statement for the operating and reserve accounts of the Association. (m)Withdrawing moneys from the Association's reserve accounts. (n)Causing studies of the reserve account requirements of the Development to be conducted, when necessary, and reviewing those studies in accordance with Civil Code Section 1365.S(e). (o)Performing any act reasonably necessary to resolve any civil claim or action through alternative dispute resolution proceedings such as mediation, binding arbitration, or non-binding arbitration proceedings. To this end, the Board is authorized, but not required to do the fol lowing: (1)Provide, or in good faith attempt to provide, one hundred twenty (120)days' advance notice of its intent to initiate any civil action and of the nature and basis of the claim to every member of the Association and every entity or person who is a prospective party to the civil action; provided that notice can be given (A) more than one hundred twenty (120) days before any pertinent statute oflimitations expires, and (B) withoutprejudice to the Association's right to enforce the governing documents; and further provided that no notice is re quired before filing an action in sm all claims court, or an action so lely to enforce asse ssment obligations. (2)Before initiating a civil action solely for declaratory relief or injunctive relief to enforce the governing documents, or for declaratory relief or injunctive relief to enforce the governing documents in conjunction with a claim for monetary damages not in excess of five thousand dollars ($5,000), to attempt to submit the matter to alternative dispute resolution in compliance with the provisions of Civil Code Section 1354(6). (3)Immediately after initiating the prosecution or defense of any civil action, making a reasonable, good faith effort to meet and confer with every person who is a party concerning: (a) appropriate processes for resolving the action, including available alternative dispute resolution proceedings; (b) appropriate processes for avoiding or reducing costs or losses by the parties associated with the action; ( c) providing an opportunity to cure any alleged defect in common areas or facilities that is the basis for the action; and ( d) '8 ATTACHMENT 3 304 providing for the scope of discovery, if any, to be conducted before beginning any alternative dispute resolution procedure. (4)Considering diverting the prosecution or defense of any civil action to alternative dispute resolution proceedings such as mediation, non-binding arbitration, or binding arbitration. (5)Agreeing to participate and participating fully and in good faith in resolving any civil action through any alternative dispute resolution proceedings, including but not limited to mediation, non-binding arbitration, and binding arbitration, and paying costs reasonably incurred by the Association on account of those alternative dispute resolution proceedings. the following: (p)The authorization detailed in ( o) does not require the Board to do any of (1)As a prerequisite to initiating any civil action, to conduct inspections, maintain inspection records, exhaust applicable casualty insurance coverage maintained by the Association, provide an opportunity to cure, meet with members, or obtain the consent of the members. (2)Except in compliance with Civil Code Section 1354(b) or 1366.3(a), to submit civil claims of any kind to binding or non-binding alternative dispute resolution procedures. Section 3.10. Notwithstanding the provisions of Section 3.09, the Board shall be prohibited from tal cing any of the following actions, except with the vote or written assent of a majority of each class of Members, or when Class B membership no longer exists, with the approval of a majority of the total voting power of the Association as well as the approval of a majority of the total voting power residing in Members other than Declarant: (a)Entering into a contract with a third person under which the third person will furnish goods or services for the Common Area or the Association for a term longer than one year, with the following exceptions: ( 1)A management contract approved by the Federal Housing Administration or Veterans Administration; (2)A contract with a public utility if the rates charged are regulated by the Public Utilities Commission, provided that the term shall not exceed the shortest term for which the utility will contract at the regulated rate; Prepaid casualty and/or liability insurance of not more than three years duration, provided that the policy provides for short rate cancellation by the insured; (3)Lease agreements for laundry room fixtures and equipment of not more than five years duration, provided that the lessor under the agreement is not an ATTACHMENT 3 305 entity in which the Declarant has a direct or indirect ownership interest of 10 percent or more; (4)Agreements for cable television services and equipment or satellite dish television services and equipment of not to exceed five years duration, provided that the supplier is not an entity in which the Declarant has a direct or indirect ownership interest of 10 percent or more; and (5)Agreements for the sale or lease of burglar alarm and fire alarm equipment, installation, and services for a term of up to five years, provided that the supplier or suppliers are not entities in which the Declarant has a direct or indirect ownership interest of 10 percent or more. (b)Incurring aggregate expenditures for capital improvements to the Common Area in any fiscal year in excess of 5 percent of the budgeted gross expenses of the Association for that fiscal year. ( c)Selling during any fiscal year property of the Association having an aggregate fair market value in excess of 5 percent of the budgeted gross expenses of the Association for that fiscal year. ( d)P ay ing compensation to Directors or to Officers of the Association forservices rendered in the conduct of the Association's business; provided, however, that the Board may reimburse a Director or Officer for expenses incurred in carrying on the business of the Association. a Director. (e)Filling a vacancy on the Board of Directors created by the removal of ARTICLE IV. MEETINGS OF DIRECTORS Section 4.01. Regular meetings of the Board of Directors shall be held annually at a time and place within the Development fixed by resolution of the Board. Notice of the time and place of the meeting shall be communicated to the Directors not less than four days before the meeting; provided, however, that notice need not be given to any Director who has signed a waiver of notice or a written consent to holding of the meeting. Notice of the time and place of the meeting shall also be posted in a prominent place or places within the Common Area. However, if the Common Area is unsuitable for such a posting, the Board shall communicate the notice of the time and place by any means it deems appropriate. Section 4.02. Special meetings of the Board shall be held when called by written notice signed by the President of the Association or by any two Directors other than the President. The notice shall specify the time and place of the meeting and the nature of any JO ATTACHMENT 3 306 special business to be considered. Notice of any special meeting must be given to each Director not less than three days or more than 15 days before the date fixed for the meeting; provided, however, that notice need not be given to any Director who has signed a waiver of notice or a written consent to holding of the meeting. A copy of the notice shall also be posted in a prominent place or places in the Common Area of the Development. Section 4.03. Emergency meetings of the Board of Directors may be called by the President of the Association, or by any two members of the Board other than the President, if there are circumstances that could not have been reasonably foreseen that require immediate attention and possible action by the Board, and that of necessity make it impracticable to provide notice as otherwise required for meetings of the Board. Section 4.04. A majority of the Board shall constitute a quorum and, if a quorum is present, the decision of a majority of the Directors present shall be the act of the Board. Section 4.05. Regular and special meetings of the Board shall be open to all Members of the Association. The Board must permit any Member to speak at any of the Board's meetings, except for meetings held in executive session. To this end, the Board must establish a reasonable time to allow Members to speak to the Board at its meetings. Notice of regular and special meetings of the Board must be given to Members at least three days before the meeting. Notice may be given by posting in a prominent place or places within the Common Area, by mail or delivery to each Unit, or by Association newsletter. Section 4.06. The Board may, with the approval of a majority of the Directors present at a meeting at which a quorum for the transaction of business has been established, adjourn a meeting and reconvene in executive session to discuss and vote upon (1) litigation in which the Association is or may become involved, (2) matters that relate to the formation of contracts with third parties, (3) personnel matters, ( 4) member discipline matters, and (5) orders of business of a similar nature. In any matter relating to the disciplining of a Member, the Board shall meet in executive session if requested to do so by that Member, and the Member shall be entitled to attend the executive session. In all other cases, Members who are not on the Board may not attend an executive session. The nature of any business to be considered in executive session shall first be announced in open session. Further, any matter discussed in executive session shall be generally noted in the minutes of the Board. Section 4.07. A majority of the Directors present, whether or not a quorum is present, may adjourn any meeting to another time and place. If the meeting is adjourned for more than 24 hours, notice of the adjournment shall be given, before the time of the adjourned meeting, to the Directors who were not present at the time of the adjournment. Section 4.08. Written minu tes shall be kept of all meetings of the Board. The minutes, minutes proposed for adoption that are marked to indicate draft status, or a summary of the minutes, of any meeting of the Board, other than an executive session, shall be made available to Members within 30 days of the meeting . Further, the minutes, 1-1. ATTACHMENT 3 307 proposed minutes, or summary minutes shall be distributed to any Member on request. Any Member making such a request shall reimburse the Association for its costs in making that distribution. Members shall be notified in writing at the time that the pro forma budget required by Civil Code Section 1365 is distributed, or at the time of any general mailing to the entire membership of the Association, of their right to have copies of the minutes of meetings of the Board and of how and where those minutes may be obtained. Section 4.09. The Board may take actions without a meeting if all of the Directors consent in writing to the action to be taken. If the Board resolves by unanimous written consent to take action, an explanation of the action taken shall be posted at a prominent place or places within the Common Area within three days after the written consents of all Directors have been obtained. However, if the Common Area is unsuitable for such a posting, the Board shall communicate the explanation of the action taken by any means it deems appropriate. ARTICLE V. OFFICERS Section 5.01. The Officers of this Association shall be a President, a Vice President, a Secretary, and a Chief Financial Officer. The Board may appoint additional officers pursuant to Article X of these Bylaws. Any number of offices may be held by the same person. Section 5.02. The Officers of his Association, except those Officers appointed in acc ordance with Article X of these Bylaws, shall be elected annually by the Board. Any vac ancies shall be filled by the Board at any time, not necess arily on an annual basis, that it deems proper. Each Officer shall hold his or her office at the pleasure of the Board. Section 5.03. The Board may remove any Officer from office either with or without cause. Any Officer may resign at any time by giving written notice to the Board, the President, or the Secretary. The resignation shall take effect at the date of receipt of the notice or at any later time specified in the notice. Unless otherwise specified in the notice, acceptance of the resignation by the Board shall not be necessary to make it effective. Section 5.04. An Officer shall not receive any compensation for any service he or she may render to the Association; provided, however, that an Officer may be reimbursed for actual out-of-pocket expenses incurred by the Officer in the performance of his or her duties. .12 ATTACHMENT 3 308 ARTICLE VI. PRESIDENT Section 6.01. At the first meeting of the Board immediately following the first annual meeting of the Members, the Board shall elect one of its Members to act as President. Sect ion 6.02. The President shall: (a)Preside over all meetings of the Members and of the Board. (b)Sign as President all deeds, contracts, and other written instruments that have been approved by the Board, unless the Board, by duly adopted resolution, authorizes the signature of a lesser Officer. (c)Call meetings of the Board whenever he or she deems itnecessary, in accordance with any rules and notice requirements imposed by the Board and the Governing Instruments. The notice period shall not be less than three days except in the case of emergencies. (d)Have, subject to the advice of the Board, general supervision, direction, and control of the affairs of the Association. (e)Discharge any other duties required of him or her by the Board. ARTICLE VII. VICE-PRESIDENT Section 7.01. At the first meeting of the Board immediately following the :first annual meeting of the Members, the Board shall elect one of its Members to act Vice President. Section 7.02. The Vice-President shall: (a)Act in the place and in the stead of the President in the event of his or her absence, inability, or re fusal to act; and (b)Exercise and discharge any other duties required of him or her by the Board. In connection with any such additional duties, the Vice-President shall be responsible to the President. ARTICLE VIII. SECRETARY Section 8.01. At the first meeting of the Board immediately following the first annual meeting of the Members, the Board shall elect one of its Members to act as Secretary. :13 ATTACHMENT 3 309 seal; Section 8.02. The Secretary shall: (a)Keep a record of all meetings and proceedings of the Board and of theMembers;(b)Keep the seal of the Association, if any, affix it on all papers requiring the(c)Serve all required notices of meetings of the Board and the Members;( d)Keep current records showing the names and addresses of all Members;( e)Sign as Secretary all deeds, contracts, and other writ ten instruments that havebeen approved by the Board, if the instruments require a second Association signature and the Board has not passed a resolution authorizing another Officer to sign in place and stead of the Secretary. ARTICLE IX. CHIEF FINANCIAL OFFICER Section 9.01. At the first meeting of the Board immediately following the first annual meeting of the Members, the Board shall elect one of its Members to act as Chief Financial Officer. Section 9.02. The Chief Financial Officer shall: (a)Receive and deposit all of the funds of the Association in any bankor banks selected by the Board; (b)Be responsible for and supervise the maintenance of books andrecords toaccount for Association funds and other Association assets; Board; and ( c)Disburse and withdraw Association funds in the manner specified by the( d)Prepare and distribute the financial statements for the Association requiredby the Declaration. ARTICLE X. SUBORDINATE OFFICERS Section 10.01. The Board may appoint, at any time, any subordinate Officers that the Association may require. ATTACHMENT 3 310 Section 10.02. The Board shall prescribe the term of office, authority, and duties of subordinate Officers. These duties may include the right to act in the place and stead of any Officer other than the President. ARTICLE XI. BOOKS AND RECORDS Sec tion 11.01. The Association shall maintain at its principal office: (a)Copies of the Governing Instruments as last amended;(b )Adequate and correct books and records of account;(c)Written minutes of the proceedings of its Members, of its Board,and of committees of its Board; and (d)A Membership Register containing the following information abouteach Member: name, mailing address, telephone number, and class of membership. Section 11.02. The books and records referred to in Section 11.01 shall be made available for inspection as follows: (a)Any Member shall have the right to inspect the above books andrecords and copy them at any reasonable time during office hours and for a purpose reasonably related to his or her interest as a Member. This right is subject to the power of the Board to set reasonable times for inspection, notice requirements, and fees to cover the cost of making copies of the documents requested by a Member. (b)Every Director shall have the absolute right to inspect all books,records, and documents of the Association and the physical properties owned or controlled by the Association at any reasonable time. The right of inspection by a Director includes the right to make extracts and copies of documents. ARTICLE XII. NONLIABILITY AND INDEMNIFICATION Section 12.01. For purposes of this Article, "Agent" means any present or former Director or Officer or any other employee or agent of the Association. Section 12.02. Except as provided by law, no right, power, or responsibility conferred on the Board or the Architectural Committee by the Governing Instruments shall be construed as a duty, obligation, or disability charged upon any Agent. No Agent shall be liable to any party ( other than the Association or a party claiming in the name of the Association) for injuries or damage resulting from the Agent's acts or omissions within what the Agent reasonably believed to be the scope of his or her Association duties ("Official Act"), except to the extent that the injuries or damage result from the Agent's willful or malicious misconduct. No Agent shall be liable to the Association ( or to any party claiming in the name ATTACHMENT 3 311 of the Association) for injuries or damage resulting from the Agent's Official Acts, except to the extent that the injuries or damage result from the Agent's negligence or willful or malicious misconduct. Section 12.03. The Association shall pay all expenses actually and reasonably incurred by, and satisfy any judgment or fine levied against, any Agent as a result of any action or threatened action against the Agent to impose liability on the Agent for his or her Official Acts, provided that: (a)The Board determines that the Agent acted in good faith and in a manner the Agent reasonably believed to be in the best interests of the Association; (b)In the case of a criminal proceeding, the Board determines that the Agent had no reasonable cause to believe his or her conduct was unlawful; and (c)In the case of an action or threatened action by or in the right of the Association, the Board determines that the Agent acted with the care (including reasonable inquiry) that an ordinarily prudent person in a like position would use under similar circumstances. Section 12.04. Any determination of the Board required under this Article must be approved by a majority vote of a quorum consisting of Directors who are not parties to the action or threatened action giving rise to the indemnification. If the Board fails or refuses to make any such determination, the determination may be made by the vote or written consent of a majority of a quorum of the Members, provided that the Agent to be indemnified shall not be entitled to vote. Section 12.05. Payments made pursuant to this Article shall include amounts paid and expenses incurred in settling the action or threatened action. This Article shall be construed to authorize payments and indemnification to the fullest extent now or hereafter permitted by applicable law. Section 12.06. The Association may purchase and maintain insurance on behalf of its Agents to the extent and under the circumstances provided in the Declaration. ARTICLE XIII. AMENDMENTS Section 13.01. The classes of membership and the voting rights of Members shall be as stated in the Declaration. So long as a two-class voting system is in effect, any amendment of these Bylaws shall require the vote or written consent of Members representing 51 % of the voting power of each class of Members. After conversion of the Class B Membership to Class A Membership, these Bylaws may be amended by the vote or written consent of(l) 51% percent of a quorum, and (2) 75% percent of the votes of Members other than the Declarant. 1G ATTACHMENT 3 312 Notwithstanding the foregoing, the percentage of a quorum or of the voting power of the Association or of Members other than Declarant necessary to amend a specific clause or provision in these Bylaws shall not be less than the prescribed percentage of affirmat ive votes required for action to be taken under that clause or provision. Section 13.02. When required under Section 11018.7 of the California Business and Professions Code, the prior written consent of the Real Estate Commissioner shal l be obtained prior to submitting a proposed amendment to these Bylaws to the vote of the Members. :17 ATTACHMENT 3 313 CERTIFICATION I, the undersigned, do hereby certify: That I am the sole Incorporator of Coral Mountain Estates, Inc., a California nonprofit mutual benefit corporation (the "Association"). That the foregoing Bylaws constitute the original Bylaws of the Association and are adopted by me on behalf of the corporation pursuant to Section 7134 of the California Corporations Code. That the foregoing Bylaws will be presented to the Board of Directors of the Association at its organizational meeting, at which time adoption of the Bylaws which is hereby certified will be ratified by the Board. IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the seal of said Association this 2G, #... day of 5e..,� b:z.._. . 20�L Mark Engler (SEAL) .1'iJ ATTACHMENT 3 314 CERTIFICATION I, the undersigned, do hereby certify: That I am the Secretary of Coral Mountain Estates, Inc., a California nonprofit mutual benefit corporation. That the foregoing Bylaws constitute the original Bylaws of said Association as previously adopted by the Incorporator on ':} J ¼ , 20 .zz- That adoption of the foregoing Bylaws by the Incorporator was ratified at a meeting of the Board of Directors of the Association held on the 'l:� day of �t""'C � 1=.d...-, 202 "!-- IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the seal of said Association this -31.._ day of G;.+c.,.,.� , 2o'L � (SEAL) ATTACHMENT 3 315 Short-Term Vacation Rental {STVR} Checklist Large Lot Qualified & Certified {LLQC) Inspection Date: al y l 2 CR Inspection Time: ___ I_O_llxY)_...._ __ owner/Authorized Agent Name: _...1:K�e:.wY:u.iouM.KW1IICu.r::1"'¥I'------====== Property Address: 5Z6QQ Coral Mountain Court La Oujnta CA 92253 No. of Be drooms: f 6;No. of Dwellings at Property: t'3 7 No. of Parking Spaces Required: _2 __ _ General Property Information: ✓verify parking plan is accurate and property can accommodate all guest parking requirements (see attached parking plan) o Parking spaces available: Garage:_2_ Driveway: _g __ Street: Other: (please specify location) ______________ □Verify history of disturbance complaints ______________ Verify site plan includes all outdoor areas utilized by guests (see attached site plan) /verify all outdoor gathering areas (including pool/spa), entertainment areas, and any recreational activities (such as games -corn hole, ping-pong table, croquet, basketball hoop, etc.) are located in a manner and proximity that is unlikely to disturb the surrounding properties and neighbors. Bedroom egress - a minimum of 1 opening with the following requirements: o 44" maximum sill height o Minimum net clear opening: 5.7 square feet o Minimum opening height: 24" o Minimum opening width: 20" ATTACHMENT 4 316 0edroom lighting -one wall switch-controlled lighting outlet !;i9hting must be recessed lighting or a switch-controlled lighting receptacle} V Bedroom size -minimum area of 70 square feet, with a minimum of 7-feet in anydirection Bedroom ceiling -at least 50% of ceiling must be a minimum of 7-feet in height if ceiling is different levels �oke alarms within sleeping room(s) and in area(s) outside and adjacent to the sleeping area(s) (Alarms must be 120V hard-wired and be interconnected with all existing smoke alarms within the dwelling. Remodels can have battery operated alarms) d.rbon monoxide detection device (Device must be approved and listed by the State Fire Marshal pursuant to Section 13263, in each dwelling having a fossil fuel burning heater or appliance, fireplace, or an attached garage) Property Inspection Notes: Owner/Authorized Agent Signature: -:6----'-_ --"-�-Q"""' J.,.;/j_�;.....----------- Code Compliance Officer Signature: _ _[JL-.,,H<Jw ____ w __ ll, ... _.&.:,... ___________ _ 317 1 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO City of La Quinta 78495 Calle Tampico La Quinta, CA 92253 Attn: City Clerk Space Above This Line for Recorder’s Use (Exempt from Recording Fee per Gov. Code §6103 and §27383) NOTICE, AGREEMENT, AND COVENANT AFFECTING REAL PROPERTY (City of La Quinta – Qualified and Certified Large Lot) This AGREEMENT, NOTICE, AND COVENANT AFFECTING REAL PROPERTY (this “Covenant”) is entered into as of the 17th day of March, 2026 (the “Effective Date”), by and between the CITY OF LA QUINTA, a California municipal corporation and charter city (“City”), and Kevin Murray (“Property Owner”), with reference to the following: RECITALS A. Chapter 3.25 of the La Quinta Municipal Code (LQMC) regulates short-term vacation rentals (STVRs) in the City, including but is not limited to permitted and prohibited uses, STVR processing and permitting procedures, and other related STVR requirements, violations, and fines. B. Effective May 20, 2021, Section 3.25.055 of the LQMC established a ban on the issuance of new STVR permits for properties located within non- exempt areas of City. C. Effective January 4, 2024, Section 3.25.057 of the LQMC provides that a “Qualified and Certified Large Lot,” as defined, may be exempted from the ban on the issuance of new STVR permits if certain criteria are met. D. Property Owner owns fee title to that certain real property located in the City of La Quinta, California and more specifically described on Exhibit “A” which is attached hereto and incorporated herein by this reference (the “Property”). E. Property Owner submitted an application for the City to review, consider, and approve the Property as a Qualified and Certified Large Lot. ATTACHMENT 5 APN: 762-440-035 318 2 F. On __________, the City Council of the City of La Quinta adopted Resolution Number ___________ (the “Resolution”) approving the Property as a Qualified and Certified Large Lot, subject in part to a requirement that the Property Owner execute this Covenant, which shall be recorded in the Official Records of Riverside County. The Resolution, including any Conditions of Approval associated therewith is attached hereto as Exhibit “B” and incorporated herein by this reference. G. City and Property Owner now desire to execute this Covenant as a condition of City’s approval in the Resolution that the Property is a Qualified and Certified Large Lot. AGREEMENT, NOTICE, AND COVENANT NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein by this reference, the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and legal sufficiency of which is hereby acknowledged, the City and Property Owner hereby agree as follows: 1. EFFECTIVE DATE. This Covenant shall be effective and of full force and effect upon complete execution by City and Property Owner, which shall be inserted in the preamble, and shall be perfected as binding against any and all owners of the Property upon recording in the Official Records of Riverside County. 2. QUALIFIED AND CERTIFIED LARGE LOT. 2.1 Approval Conditional. City’s approval in the Resolution that the Property is a Qualified and Certified Large Lot is contingent on the Property’s compliance with this Covenant, LQMC Section 3.25.057 or successor provisions as the same may be amended, and the Resolution, including the Conditions of Approval, if any, set forth in the Resolution (collectively the “Resolution Conditions”). Property Owner acknowledges that the Property only qualifies as a Qualified and Certified Large Lot when it meets the Resolution Conditions, and covenants to keep the Property in compliance with such Resolution Conditions at all times when the Property is operating as a Qualified and Certified Large Lot. If, at any point, the Property is out of compliance with the Resolution Conditions, it shall immediately cease to qualify as a Qualified and Certified Large Lot without any further action of City. 2.2 Single Lot. Property Owner acknowledges, covenants, and agrees that the Property is a single parcel and shall remain a single parcel at all times when the Property is used as a Qualified and Certified Large Lot. In no event shall the Property be subdivided, merged, subject to a lot-line adjustment, or otherwise altered in a manner that would result in the Property no longer being a single lot which complies with the Resolution Conditions. Any subdivision, merger, lot-line adjustment, or other alteration in violation of this Section 2.2 shall be a violation of 319 3 this Covenant and shall result in immediate disqualification of the Property as a Qualified and Certified Large Lot. 2.3 STVR Permits Contingent. Property Owner acknowledges and agrees that any STVR permits granted due to the Property’s designation as a Qualified and Certified Large Lot shall immediately lapse and be void if at any time the Property ceases to qualify as a Qualified and Certified Large Lot. Operation of an STVR subject to such a permit shall be a violation of the STVR permit and this Covenant if the Property does not meet the Resolution Conditions. 3. REMEDIES FOR DEFAULT. 3.1 City’s Rights. In the event of failure by Property Owner or any successor to the Property (or any portion thereof) to perform any material term or provision of this Covenant, City shall have those rights and remedies provided in this Covenant and any and all rights and remedies available at law or in equity, including but not limited to immediate and permanent injunctive relief. 3.2 City’s Rights in the Event of Unlawful STVR Operation. Without limitation to Section 3.1, in the event that Property Owner operates an STVR on the Property in violation of this Covenant, City’s remedies shall include (i) revocation of the Property’s eligibility to operate as a Qualified and Certified Large Lot, (ii) revocation or termination of any STVR permit granted on the condition that the Property qualify as a Qualified and Certified Large Lot, and/or (iii) any other remedy available at law or in equity including under LQMC Chapter 3.25. 4. GENERAL PROVISIONS. 4.1 Notice of Covenant. By executing this Covenant, Property Owner covenants that it has taken notice of all matters contained herein. 4.2 Amendment and Cancellation. Except as expressly allowed herein, this Covenant shall not be amended or canceled in whole or in part without the prior written consent of City. 4.3 Covenant Runs with the Land. This Covenant shall be construed as a covenant running with the land to the burden of the Property and in favor of City and its successors in interest. This Covenant shall be binding on Property Owner and its successors in interest, and any grant, transfer, or conveyance of interest in the Property shall be and hereby is conditioned on the assumption of this Covenant in its entirety by the successor in interest. 4.4 Recording. Upon complete execution and notarizing of this Covenant, City shall cause the Covenant to be recorded in the Official Records of Riverside County. This Covenant shall have priority over and shall not be made subordinate to any mortgage, deed of trust, or other encumbrance recorded against the Property without the expressed written consent of the City. If this Covenant becomes subordinate to any mortgage, deed of trust, or other 320 4 encumbrance recorded against the Property without the written approval of the City, and the Property is sold, transferred, or otherwise conveyed by foreclosure or deed in lieu of foreclosure, the City reserves the right to require the subsequent owner to re-apply to the City pursuant to Section 3.25.057 (or successor provisions) for the review and consideration of the Property as a Qualified and Certified Large Lot. 4.5 Notices. Any approval, disapproval, demand, document or other notice (“Notice”) which either party may desire to give to the other party under this Covenant must be in writing and shall be sufficiently given if (i) delivered by hand, (ii) delivered by reputable same-day or overnight messenger service that provides a receipt showing date and time of delivery, or (iii) dispatched by registered or certified mail, postage prepaid, return receipt requested, to the principal offices of City and Property Owner at the addresses specified below, or at any other address as that party may later designate by Notice: To City: City of La Quinta City Clerk’s Office 78495 Calle Tampico La Quinta, California 92253 Attn: City Manager With a copy to: Rutan & Tucker, LLP 18575 Jamboree Rd, 9th Floor Irvine, California 92612 Attn: William H. Ihrke To Property Owner: Kevin Murray 8460 Hinterland Dr San Diego, CA 92127 Any written notice, demand or communication shall be deemed received immediately if personally delivered or delivered by delivery service, and shall be deemed received on the third day from the date it is postmarked if delivered by registered or certified mail. 4.6 Non-liability of City Officers and Employees. No official, officer, employee, agent or representative of City, acting in his/her official capacity, shall be personally liable for any loss, costs, damage, claim, liability, or judgment, arising out of or connection to this Covenant, or for any act or omission on the part of City. 4.7 Covenant Against Discrimination. There shall be no discrimination against, or segregation of, any person or group or persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry, or any other impermissible classification, in the performance of this Covenant. Property Owner 321 5 shall comply with the Americans with Disabilities Act of 1990, as amended (42 U.S.C. §§ 12101, et seq.). 4.8 Attorney’s Fees and Costs for Prevailing Party. If there is an action against one party by reason of the default of any term or condition in this Covenant, or otherwise arising out of this Covenant, the unsuccessful party shall pay to the prevailing party its attorney’s fees and costs, which shall be payable whether or not such action is prosecuted to judgment, and shall include fees and costs of appeal, if any. The term "prevailing party" shall include, without limitation, a party who obtains substantially the relief sought whether by compromise, settlement or judgment. 4.9 Severability. If any term or condition of this Covenant is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of this Covenant shall continue in full force and effect. 4.10 Time. Time is of the essence in the performance of this Covenant and of each term and condition hereof as to which time is an element. 4.11 Recitals & Exhibits Incorporated. The Recitals to this Covenant and all of the Exhibits to this Covenant are, by this reference, incorporated into this Covenant and made a part hereof. 4.12 Authority to Execute; Representations and Warranties. The Property Owner warrants and represents that (i) Property Owner is duly authorized to execute and deliver this Covenant, (ii) by executing this Covenant, Property Owner is formally bound to the provisions of this Covenant, (iii) Property Owner’s entering into and performance of the obligations set forth in this Covenant do not violate any provision of any other agreement to which Property Owner is bound, and (iv) there is no existing or threatened litigation or legal proceeding of which the Property Owner is aware which could prevent Property Owner from entering into or performing its obligations set forth in this Covenant. 4.13 City Approvals and Actions. The City Manager or authorized designee shall have the authority to implement this Covenant, including the authority to negotiate and sign on behalf of the City implementing agreements and other documents, so long as the substantive provisions of this Covenant are maintained. All other City approvals and actions shall require at least a majority vote of the City Council of the City of La Quinta. Nothing in this paragraph prevents or shall be construed as preventing the City Manager from taking any review, approval request, or other action relating to this Covenant to the City Council of City for its review and action. 4.14 Governing Law. The internal laws of the State of California shall govern the interpretation and enforcement of this Covenant without regard to conflicts of law principles. Any action at law or in equity brought by City or Property Owner for the purpose of enforcing, construing, or interpreting the validity of this 322 6 Covenant or any provision hereof shall be brought in the Superior Court of the State of California in and for the County of Riverside, or such other appropriate court in said county. 4.15 Counterpart. For convenience, City and Property Owner may execute and acknowledge this Covenant in counterparts which shall constitute one and the same complete Covenant. [end – signature page follows] 323 7 IN WITNESS WHEREOF, City and Property Owner have executed this Covenant as of the date first indicated in the preamble. CITY CITY OF LA QUINTA, a California municipal corporation and charter city ___________________________ Jon McMillen, City Manager Date: _____________________ PROPERTY OWNER __________________________ Kevin Murray Date: _____________________ ATTEST ___________________________ Monika Radeva, City Clerk Date: _____________________ APPROVED AS TO FORM RUTAN & TUCKER, LLP ___________________________ William H. Ihrke, City Attorney Date: _____________________ 324 EXHIBIT “B” EXHIBIT “A” LEGAL DESCRIPTION OF PROPERTY THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS: LOT 3 OF TRACT 29963, IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 340, PAGE 36 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF RIVERSIDE COUNTY. ASSESSOR’S PARCEL NUMBER: 762-440-035 325 EXHIBIT “B” EXHIBIT “B” COUNCIL RESOLUTION AND CONDITIONS OF APPROVAL [Attach signed Resolution and Conditions of Approval, if any.] Council Resolution No. 2024-00X, adopted on Month XX, 2024 – enclosed Conditions of Approval – None 326 STVR QUARTERLY REPORT OCTOBER 1, 2025 - DECEMBER 31, 2025 THE STVR PROGRAM CONSISTS OF PERMITTING, LICENSING, TAX COLLECTION, AND COMPLIANCE MONITORING AND ENFORCEMENT PERMITTING The City Clerk's Office issues all new and renewed STVR permits and related business licenses, handles Transient Occupancy Tax (TOT) collections, and assists STVR property owners with keeping their property in compliance with the STVR program. Number of STVR Permits: December 2025 Total STVR Permits: 1,215 57 40 1,118 Homeshares Primary Residence General Permits 0 500 1000 Figure 1 (Estate Permits: 66) Active STVR Permits by Area Per Year from 2021 to 2025: Table 1 Enclosed at the end of this report as Attachment 2 is a list of Active STVR Permits categorized by development. Section 3.25.055 of the La Quinta Municipal Code imposes a permanent ban on issuing new STVR permits in General and Primary permit categories. STVR permits in these categories can only be issued to properties located in Exempt areas. Effective January 4, 2024, STVR Homeshare permits were exempted from the permanent ban. STVR zones are depicted in Attachment 1. 0 DEPARTMENTAL REPORT ITEM NO. 3 327 Figure 2 Table 2 Density of STVR Permits by Area Per Year - from 2021 to 2025: Table 2 above lists the total number of STVR permits by Area from January of each year since 2021 through December 2025, along with the total number of approved parcels in those areas as of 2023. Since January 2021, the data shows a decline of 387 STVR permits (37%) in permit ban areas due to attrition related to home sales and non-renewals. STVR density is calculated as a percentage by dividing the number of STVR permits by the number of developed parcels within each area, as listed in Table 2. Table 3 shows the year over year change in permit density from 2021 to 2025. Table 3 140 115 110 110 112 100 148 122 92 90 90 87 292 252 236 226 223 208 470 354 317 301 282 268270 331 434 530 543 552 North LQ Mid LQ Cove South LQ Exempt JAN-21 JAN-22 JAN-23 JAN-24 JAN-25 DEC-25 0 100 200 300 400 500 Figure 2 shows the change in active STVR permits within the Exempt and Ban areas since January 2021 to December 2025 328 COMPLIANCE The Code Compliance Department handles all compliance related matters for the STVR program, which includes managing complaints, conducting investigations, and taking enforcement actions, such as issuing notices of violations, administrative citations, and STVR permit suspensions. 2024 & 2025 STVR Complaints Citywide by Area 10 48 13 3 2 22 13 1 18 30 1 1 4 10 5 28 23 6 12 9 9 5 1 21 46 2 7 4 22 3 1 11 6 34 1 2 8 3 North LQ Mid LQ Cove South LQ (PGA West)Exempt Areas 0 20 40 60 80 100 120 140 160 Q-1 2024 Q-2 2024 Q-3 2024 Q-4 2024 Q-1 2025 Q-2 2025 Q-3 2025 Q-4 2025 88 153 Figure 3 24 Figure 3 above shows the complaints received citywide for each Area quarterly in 2024 and 2025. 56 21 3 71 24/7 STVR Hotline: (760) 777-7157 The STVR program features a 24/7 STVR Hotline available to residents to call and report complaints or potential issues regarding STVR properties. These calls are answered by City staff or the call center vendor (see Picture-Chart included as Attachment 3), and each call is directed accordingly to a Code Enforcement Officer or the Local Contact on file for the STVR property. Calls can be reported anonymously. Complaints: 29 329 Figure 4 Figure 3 details the the complaint data for Q-1, Q- 2 & Q-3 of 2024 as it applies to permitted vs. unpermitted STVR properties. Complaints: January - December 2025 Permitted vs. Unpermitted 1 2 5 13 9 9 6 16 4 0 1 023 8 35 0 5 2 1 0 0 0 2 Permitted Unpermitted JA N - 2 5 FE B - 2 5 MA R - 2 5 AP R - 2 5 MA Y - 2 5 JU N - 2 5 JU L - 2 5 AU G - 2 5 SE P - 2 5 OC T - 2 5 NO V - 2 5 DE C - 2 5 0 10 20 30 Figure 4 shows that 47% of complaints received in 2025 were for unpermitted STVR properties. Figure 5 shows the number of complaints received for each quarter in 2022, 2023, and 2024 were generally consistent, while, in 2025, there was a considerable reduction in comparison to the previous years. YOY Quarterly Complaints: 2022 - 2025 71 129 56 30 81 141 47 54 88 153 56 2421 71 29 3 2022 2023 2024 2025 Q-1 Q-2 Q-3 Q-4 0 50 100 150 Figure 5 330 Citations: Figure 6 Figure 7 2024 & 2025 STVR Citations: Permitted vs. Unpermitted 3 10 3 1 1 6 1 10 22 5 3 11 1 Permitted Citations Unpermitted Citations Q- 1 2 0 2 4 Q- 2 2 0 2 4 Q- 3 2 0 2 4 Q- 4 2 0 2 4 Q- 1 2 0 2 5 Q- 2 2 0 2 5 Q- 3 2 0 2 5 Q- 4 2 0 2 5 0 20 Disturbance - the majority of disturbance compliance activities are due to noise, generally caused by large events or gatherings, children running/screaming/laughing, popping balloons, construction, slamming doors, etc. Other complaints include excessive parking, bright lights, trash, unsecured pool access, unmaintained yard, etc. Administrative - the overwhelming majority of administrative compliance matters are related to operating/advertising without an STVR permit or business license, or failure to display the STVR permit number on listings. Others include incorrect or missing occupancy limit advertised on listings, failure to report/remit transient occupancy tax, etc. 2024 & 2025 STVR Citations: Administrative vs. Disturbance 11 22 5 3 16 1 2 10 3 1 1 1 1 Administrative Citations Disturbance Citations Q-1 2024 Q-2 2024 Q-3 2024 Q-4 2024 Q-1 2025 Q-2 2025 Q-3 2025 Q-4 2025 0 10 20 30Figure 7 shows the vast majority of citations in 2024 and 2025 were issued for administrative matters, primarily for operating and/or advertising without an STVR permit: -87% in 2025-70% in 2024 Figure 6 shows the majority of citations in 2024 and 2025 were issued to unpermitted properties: -65% in 2025-69% in 2024 0 331 TAXES, FEES & STVR PROGRAM COSTS The STVR program collects Transient Occupancy Tax (TOT), fees for citations and inspections, and all program operating costs such as STVR permit and business licensing fees. Table 4 *Citation Fine Collections are current as of February 26, 2026 STVR Annual Revenue Summary: 2020-2023, 2024, & 2025 Table 4 below provides an overview of the annual STVR program revenues for calendar years 2020, 2021, 2022, 2023, 2024, and 2025. TOT is a 10% tax due to the City each month on all STVR stays of 30-days or less. Permit and licensing fees and fine collections covered STVR program operational costs in 2021, 2022, and 2023. These fee and fine collections nearly covered program costs in 2024, and 2025. TOT collections remained generally consistent over the last 5 calendar years (2021 - 2025). 332 --CALIFORNIA -- FRED WARING DR 48TH AVE J 50TH AVE "' ;Q r'5 0 "' 0 z UJ :;;: � 3: "' "' 0 UJ I z <l'. <l'. LU 0 l/l 0 tiJ z z LU UJ � � CALLE TECATE February 2025 STVRAREAS t;; z 0 LU u.. u.. ----� t;; Map ID 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 50 52ND AVE 58TH AVE STVR Exempt Areas Development Name Exemption Homewood Suites La Quinta Desert Villas -Center Pointe Tourist Commercial District Legacy Villas Tourist Commercial District & Development Agreement La Quinta Resort including Spa & Tennis Villas Tourist Commercial District & Adjacent to TC District Embassy Suites (Casitas Las Rosas) Village Commercial SilverRock Resort I Talus Club at Coral Mountain Signature at PGA West (Haciendas) Puerta Azul Village Commercial District Village Commercial District Tourist Commercial District/ SilverRock Resort Specific Plan Development Agreement (Ordinance No. 613) Tourist Commercial District Entitlement Approval Southwest corner Avenue 62 & Madison St Tourist Commercial District -Undeveloped Northwest corner Avenue 64 & Madison St Tourist Commercial District -Undeveloped Polo Villas Residences Bravo Estates Merv Griffin Estate Travertine 51555 Madison Street 51215 Avenida Obregon 54TH AVE 14 :;: � 0 z 0 "' z 0 ".l m ".l AIRPORT BLV - Development Agreement (Ordinance No. 599) Development Agreement (Ordinance No. 620) Estates at Griffin Lake Specific Plan Development Agreement (Ordinance No. 617) Large Lot Qualified & Certified; Resolution No. 2024-011 Large Lot Qualified & Certified; Resolution No. 2024-012 D City Boundary •STVR Exempt Area STVR Exempt AreaCJ Large Lot Qualified & Certified City Areas •North La Quinta□Cove D Mid La Quinta D South La Quinta 0 Miles N 2 A ATTACHMENT 1 333 Acacia 9 The Cove 207 Bella Vista 8 Large Lot Qualified & Certified 1 Cactus Flower 7 Cove Total STVR Permits 208 Del Rey 2 Desert Pride 10 Indian Springs Neighborhood 6 Avenida La Fonda Neighborhood (Desert Club TR Unit 2) 2 La Quinta Del Oro (Not Gated)7 Calle Fortuna Neighborhood (Desert Club TR Unit 1)3 La Quinta Highlands 13 Desert Club Estates (Desert Club TR Unit 5)13 Marbella 5 Enclave 1 Monticello 8 Haciendas at La Quinta 1 Quinterra 2 Highland Palms Neighborhood 15 Rancho Ocotillo 3 Montero Estates (No HOA)1 Sonrisa 7 Large Lot Qualified & Certified 1 Topaz 10 Renaissance 1 Vista Grande 2 Sagebrush Neighborhood (Desert Club Manor TR 1)7 Westward Ho/Westward Shadows 1 Santa Rosa Cove 41 North La Quinta Total STVR Permits: 100 Seasons at La Quinta (Residential)1 Mid La Quinta Total STVR Permits:87 Casitas Las Rosas 72 Legacy Villas 217 Merv Griffin Estate 1 Estates at La Quinta 2 PGA West:Signature 157 La Quinta Fairways 4 Polo Villas 18 PGA West: Fairways 84 Puerta Azul 44 PGA West: Res I 120 Spa Villas at LQ Resort 10 PGA West: Res II 53 Tennis Villas 32 Village at the Palms 5 Village Hospitality Homes 1 South La Quinta Total STVR Permits: 268 Exempt Total STVR Permits 552 *This information is current as of December 31, 2025 and is updated on a quarterly basis Number of Permitted STVR Properties per Development 1,215 Active STVR Permits as of 12/31/2025* North La Quinta Cove Mid La Quinta Exempt South La Quinta ATTACHMENT 2 334 **SHERIFF MAY BE DISPATCHED AT ANY TIME DEPENDING ON THE CIRCUMSTANCES OF THE CALL *IF THE CODE OFFICER IS UNAVAILABLE OR UNABLE TO RETURN CALLS IMMEDIATELY, HOTLINE CALLS ARE FORWARDED TO THE HOTLINE VENDOR UNTIL THE CODE OFFICER BECOMES AVAILABLE CALL TO HOTLINE IS RECEIVED 24/7 STVR HOTLINE - (760) 777-7157 HOTLINE CALLS EXTENDED-BUSINESS HOURS: FRIDAY - SUNDAY: 6:00 PM - 2:00 AM (MONDAY) HOTLINE VENDOR ANSWERS CALL AND GATHERS COMPLAINT AND PROPERTY INFORMATION FROM CALLER CITY CONTRACTED SECURITY PATROL OFFICER IS DISPATCHED TO PROPERTY. DEPENDING ON SITUATION, LOCAL CONTACT MAY BE CALLED** ALL CALLS MADE TO THE 24/7 STVR HOTLINE ARE ROUTED ACCORDINGLY DEPENDING ON THE DAY/TIME OF THE CALL AS SHOWN BELOW HOTLINE CALLS BUSINESS-HOURS: MONDAY - FRIDAY: 8:00 AM - 4:30 PM OR SATURDAY: 8:30 AM - 4:30 PM CITY CODE OFFICER IS DISPATCHED TO PROPERTY. DEPENDING ON SITUATION, LOCAL CONTACT MAY BE CALLED** CITY CODE COMPLIANCE ANSWERS THE CALL AND GATHERS COMPLAINT AND PROPERTY INFORMATION FROM CALLER* HOTLINE VENDOR ANSWERS CALL AND GATHERS COMPLAINT AND PROPERTY INFORMATION FROM CALLER HOTLINE VENDOR CONTACTS LOCAL CONTACT ON FILE FOR STVR PROPERTY TO ADDRESS COMPLAINT OR SHERIFF'S DEPARTMENT IF NEEDED HOTLINE CALLS AFTER-HOURS: MONDAY - FRIDAY: 4:30 PM - 8:00 AM OR SUNDAY - MONDAY: 2:00 AM - 8:00 AM (MONDAY) CALL TO HOTLINE IS RECEIVED CALL TO HOTLINE IS RECEIVED ATTACHMENT 3 335 336 ARTS AND COMMUNITY SERVICES COMMISSION Page 1 of 3 DECEMBER 8, 2025 QUARTERLY MINUTES ARTS AND COMMUNITY SERVICES COMMISSION MINUTES MONDAY, DECEMBER 8, 2025 CALL TO ORDER A regular quarterly meeting of the Arts and Community Services Commission (Commission) was called to order at 4:00 p.m. by Chair Chiapperini. PRESENT: Commissioners Beesemyer, Biondi, Brower, and Chair Chiapperini ABSENT: Vice Chair Webb PLEDGE OF ALLEGIANCE Commissioner Brower 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 – None CONSENT CALENDAR ITEMS 1.RECEIVE AND FILE MEETING MINUTES DATED SEPTEMBER 8, 2025 MOTION – A motion was made and seconded by Commissioners Brower/Beesemyer to approve the Consent Calendar as presented. Motion passed: ayes – 4, noes – 0, abstain – 0, absent – 1 (Webb). BUSINESS SESSION 1. RECOMMEND COUNCIL APPROVAL OF PILLAR OF THE COMMUNITY AWARD NOMINEES Senior Management Analyst Calderon presented the staff report, which is on file in the Community Services Department. The Commission expressed general support for both nominees, noting their contributions to community events, local organizations, and civic engagement. The Commission expressed general consensus to recommend both nominees for Council approval. MOTION – A motion was made and seconded by Commissioners Beesemyer/Brower recommending Council approval of Phil La Grece and Doug Hassett as Pillar of the REPORTS AND INFORMATIONAL ITEM NO. 22 337 ARTS AND COMMUNITY SERVICES COMMISSION Page 2 of 3 DECEMBER 8, 2025 QUARTERLY MINUTES Community Award Nominees. Motion passed: ayes – 4, noes – 0, abstain – 0, absent – 1 (Webb). 2. RECOMMEND RECIPIENT OF THE 2025 LA QUINTA SENIOR INSPIRATION AWARD TO CITY COUNCIL Senior Management Analyst Calderon presented the staff report, which is on file in the Community Services Department. The Commission discussed each of the four nominee’s volunteer work, professional background, and level of community involvement; depth and type of service performed across different organizations; and the distinction between volunteer work performed within La Quinta versus in the Coachella Valley. PUBLIC SPEAKER: Sally Shelton, La Quinta – inquired about the eligibility requirements for the Senior Inspiration Award; and whether the nominees’ volunteer work was generally in the Coachella Valley or primarily in La Quinta. The Commission discussed the award criteria, noting that nominees do not need to perform the majority of their service in La Quinta; and non-selected nominees may be nominated for other awards as well as for this award again in the future. MOTION – A motion was made and seconded by Commissioners Brower/Beesemyer recommending Council approval of nominee Judy Hoffman as recipient of the 2025 Senior Inspiration Award. Motion passed: ayes – 4, noes – 0, abstain – 0, absent – 1 (Webb). STUDY SESSION 1. DISCUSS MARKETING AND ECONOMIC DEVELOPMENT STRATEGIES FOR FISCAL YEAR 2025/26 Marketing Manager Graham and Director of Business Unit and Housing Development Villapando presented the staff report, which is on file in the Community Services Department. The Commission discussed local media outreach and public service announcements; merchandise possibilities for La Quinta branding and efforts to increase public availability; Highway 111 corridor development and potential walkable areas; attracting sit-down restaurants versus fast-food establishments; affordable housing projects, unit counts and easement requirements; market rental rates and average income for residents; the City’s marketing efforts through social media, newsletters, podcasts, outreach to visitors; and coordination with the Chamber of Commerce and local colleges to provide business development resources. 338 ARTS AND COMMUNITY SERVICES COMMISSION Page 3 of 3 DECEMBER 8, 2025 QUARTERLY MINUTES DEPARTMENTAL REPORTS – Verbal Updates 1. LA QUINTA YOUTH COLLECTIVE Staff reported the La Quinta Youth Collective (LQYC) has launched with 20 participating students from La Quinta High School, Xavier Prep, and local residents attending other Coachella Valley schools; the LQYC has completed department-based learning sessions, is currently working on community service projects and has volunteered at recent City events such as the La Quinta Fall Festival, Veterans Recognition Ceremony, and the Tree Lighting Ceremony. The Commission requested that the LQYC be brought to a future meeting. 2. LA QUINTA ART CELEBRATION PURCHASE COMMITTEE (Committee) Staff said the Committee selected two commissioned artworks at the November 2025 La Quinta Art Celebration – (1) a metal sculpture by Boris Kramer for installation at the Wellness Center entrance, and (2) a custom glass installation by Jesse Kelly incorporating bamboo-inspired elements; and installations are anticipated to be completed in January 2026. 3. CITY EVENTS RECAP Staff provided updates on recent City events, including the Hunter Lopez Lightsaber Vigil, 9/11 Candlelight Vigil, La Quinta Fall Festival, Veterans Recognition Ceremony, Tree Lighting Ceremony, City Hall Open House, Ironman 70.3 La Quinta triathlon, and Iron Kid; and highlighted upcoming events such as the Mission LQ Rocket Launch, Concerts in the Park, Wellness Day, and the March 2026 La Quinta Art Celebration. COMMISSIONERS’ ITEMS – None ADJOURNMENT There being no further business, it was moved and seconded by Commissioners Brower/Beesemyer to adjourn this meeting at 5:20 p.m. Motion passed: ayes – 4, noes – 0, abstain – 0, absent – 1 (Webb). Respectfully submitted, Amanda Guerrero, Commission Secretary City of La Quinta, California 339 WRITTEN PUBLIC COMMENTS CITY COUNCIL MEETING MARCH 17, 2026 1 From:don jankowiak <donjankowiak@hotmail.com> Sent:Saturday, March 14, 2026 6:05 AM To:City Clerk Mail Subject:57600 Coral Mt. Court short term request Follow Up Flag:Follow up Flag Status:Flagged Don Jankowiak 57565 Cherrywood Pl. La Quinta, CA. 92253 In my opinion it is very important for the city of La Quinta to maintain it's decision to Not TO PERMIT ANY NEW short term rentals. Even though this request appears not near existing homes, if allowed there will be another request claiming that their situation is similar or unique and needs to be considered. No Short Term must be upheld or a lot of time and frustration will only resurface. Regards, Don Jankowiak CITY COUNCIL MEETING - MARCH 17, 2025 - WRITTEN PUBLIC COMMENTS BY DON JANKOWIAK PUBLIC HEARING ITEM NO. 1 - OPPOSED TO LLQC 2026-0001 - 57600 CORAL MTN CT 1 From:Peggy Papie <mjpapie@gmail.com> Sent:Saturday, March 14, 2026 7:17 AM To:City Clerk Mail Subject:LARGE LOT - QUALIFIED AND CERTIFIED 2025-0001 APN: 762-440-035 Follow Up Flag:Follow up Flag Status:Flagged Dear City Clerk of La Quinta, I am writing to formally oppose the approval of the property located at 57600 Coral Mountain Court as a qualified and certified large lot pursuant to Section 3.25.057 of the La Quinta Code. Furthermore, although the "Notice of Public Hearing" does not explicitly state that this consideration includes "Short Term Rental" status, I wish to record my vehement opposition to any such approvals for this property and any other properties in the future. Sincerely, Peggy Papie 57565 Cherrywood Place La Quinta, CA 92253 CITY COUNCIL MEETING - MARCH 17, 2026 - WRITTEN PUBLIC COMMENTS BY PEGGY PAPIE PUBLIC HEARING ITEM NO. 1 - OPPOSED TO LLQC 2025-0001 - 57600 CORAL MTN CT POWER POINTS CITY COUNCIL MEETING MARCH 17, 2026 City Council Regular Meeting March 17, 2026 Af �. •Y� . _ �'"t.. s �� � �' �� Wit'+! � �.�- . `-, City Council Regular Meeting March 17, 2026 PUBLIC COMMENT - MATTERS NOT ON THE AGENDA CA 3 1 -• � City Council Regular Meeting March 17, 2026 CLOSED SESSION IN PROGRESS CALIFORNIA oaigr(v��, r'' City Council Regular Meeting March 17, 2026 PUBLIC COMMENT — MATTERS NOT ON THE AGENDA City Council Meeting March 17, 2026 P1 - SilverRock Development Project Status Update City Council Meeting March 17, 2026 P2 - IRONMAN 70.3 La Quinta Recap and Economic Report �A wce U 11_!f"can\IN �tl OI .3 RIM 0 A 1 �� 6flp oQ as Qaa©� 9 ent Recap I n n f O n er + 3 Athlete Origins - q Swim CourseiJ ; i• '� 4 - !.- -• it r 5 Bike Courss " �`• 6 Run Course r 7 Finish Line `r _ g Historical Economic Impact . �..,.•� 10 2025 Economic Impact Report =" IRON AN Athlete Origins Top 10 Domestic & International Athlete Origins M ROKK THE IRONMAN• GROUP 2025 Event Recap Swim Course There are no proposed changes to the _ sw swim course. We will continue to use Lake Cahuilla for r �� f this portion of the race. - �t _ ra 11•I :ill :'r am• THE IRONMAN• GROUP 2025 Event Recap � r Bike Course u� • Overall Athlete Satisfaction was positive. A Some internal traffic issues within the City of La Quinta were reported on race day. Those issues and alternative options have already been discussed with La Quinta and Riverside County Sherrif's • Our main goal is to improve local traffic flow and vehicle accessfor City of La Quinta Residents. n .,Am L A QUINTA THE IRONMAN• GROUP 2025 Event Recap Run Course Overall, this run course was received well by our athletes. We have received feedback from Randy on how we can make things better for him and his team next year. Our 2026 request would be to have golf operations completely closed on the Saturday before race day to to issues and confusion of letting golfers into Silver Rock Park and not IRONMAN Athletes. THE IRONMAN• GROUP 2025 Event Recap Finish line Athletes loved the finish line within Silver Rock Park. We have received feedback some internal feedback on access and trash. As we deep dive into planning for 2026 all feedback will be taken seriously on ways to improve the event and overall finish line atmosphere. N- • i bVIP, � r-` - - �► Ii .. �� • J�' Its ' �1 r ROKA G�i THE I R O N M A N" GROUP 2025 Event Recap 2026: • Areas to Improve Data collected from the 2019 event estimates the total impact of the event to be $9.9 million for the Greater Palm Springs region. This data was collected via the Greater Palm Springs Convention and Visitors Bureau. O Historical Economic Impact No report calculated in 2021 O 2019 2020 2021 0 The event was not held in 2020 $5.9 million estimated economic impact for the Greater Palm Springs region. O 2022 0 $4.8 million estimated economic impact for the Greater Palm Springs Region IBMMAMA 70,� LA QUINTA 2023 $15.3 in total business sales in the Greater Palms Springs economy. O 2024 2025 0 $14.2 in total business sales in the Greater Palms Springs economy. 18 March 17, 2026 Approach Overview This document has been prepared by Two Circles for The IRON MAN Group. It provides a summary of insights from the 2025 IRON MAN 70.3 La Quinta, based primarily on data collected through the post -event athlete survey and organizer information. The analysis focuses on the following impact areas: AnnnnA9-u P11 1 1\V P'1%�1 1 Attendee Analysis: • Market size by attendee type (athletes, supporters, visiting staff) • Athlete Demographics by age and gender Event Satisfaction & Host City Future Impact • Athlete attitudes and perceptions • Event experience and willingness to recommend Ili 410-M 19 Economic Impact: • Direct visitor spending from non -local athletes, supporters, and staff • Spend by category • Total economic impact including multipliers Executive Summary — 2025 IRONMAN 70.3 La Quinta The 2025 IRONMAN 70.3 La Quinta brought $8.7m in direct economic impact and $15.3m in direct and indirect economic impact. $3.6m tTt1':7 � 63.Om Direct Consumer Direct Organizer Impact Total Direct Impact Indirect Impact Induced Impact Total Impact Economic Impact Visitors (excl. within 30 miles of La Quinta) 9,219 Avg. Length of Stay (days) 4.03 Total Visitor Days 37,112 Per Person Per Day Expenditures $215 Total Direct Spend (USD) $8.7m 20 10 March 17, 2026 Executive Summary — 2025 IRONMAN 70.3 La Quinta The 2025 IRONMAN 70.3 La Quinta brought $8.7m in direct economic impact and $15.3m in direct and indirect economic impact. $680k :'nreit Conurmo, Impact Ovoa Chearvzer Impact Tow Drract Impact Indoact Impact Induced Imps Taal Direct Consumer Spend: About 49%of direct consumer spend came from hotels with the remaining from discretionary categories (including food and drink, entertainment, and transportation) Hotels & Hospitality Discretionary (1 . .l '. 21 21 Economic Impact Market Sizing Methodology (1/2) Definition: Total # of Bibs picked up at 2025 IRONMAN 70.3 La Quinta(2,673) x 97% non -local athletes Only non -local athletes* (defined as athletes who live greater than 30 miles awayfrom the race location) are ultimately 2.6k Athletes included in the economic impact for the event. *Source: 2025 IRONMAN 70.3 La Quintapost-event athlete survey Definition: At host city to support an athlete(s) Based on the Athlete post -event survey, the average number of supporters per athlete (2.10) who came to the region 5.4k Supporters to support athletes participating in the 20251RONMAN70.3LaQuinta. Source: 2025 IRONMAN 70.3 La Quintapost-event athlete survey 1,280 Definition: Visiting Staff, Partners, Vendors and Volunteers who were in the host city for the event IRONMAN brought in 80 visiting event staff and 1200 volunteers who are included in the local market sizing for Visiting Event Staff, economic impact. Volunteers are included based on 1.25 volunteer days. Partners & Volunteers Source: Organizer (IRONMAN) visiting event staff and volunteer data 9.2 k Total Attendee Total Attendee Market Size = Athletes + Supporter + travelling event staff, partners and local volunteers Market Size 22 22 March 17, 2026 Economic Impact Market Sizing Using the 2025 IRON MAN 70.3 La Quinta post -event athlete survey, we defined non -local (visiting) athletes and supporters in them a rket to identify their spending across category. — Total Market Size* — Type Market size Athlete 2,584 Supporter 5,435 Travel Event Staff** 80 Volunteer*** 1,200 Total 9,219 Market Size athlete Market Attendees % Local 89 3% Visiting 2,584 97% Total 2,673 Avg. Spend Per Person — Total DiscretionaryType Hotel/Accom. Athlete $471 $642 $1,113 Avg. of Supporter 3.03Nights $417 $888 Market Size Supporter Market Attendees % Local 186 3% Visiting 5,435 97% Total 5,621 Assumptions • Accommodation is calculated for non -local athletes and non -local supporters only, based on average nightly room rates and length of stay. Average accommodation spend includes zero -spend responses to reflect non -local attendees staying in second homes or with friends or family, ensuring hotel usage is not overstated. Local athletes and supporters are excluded separately through the non -local impact base Athlete and supporter spend is modeled separately. Athlete spend reflects per -person accommodation and discretionary behavior, while supporter spend is estimated using conservative, survey -based relationship to athlete discretionary spend and scaled only from non -local athletes * Totalmarket size is adjusted down to capture only non-local(visiting) athlete and supporters to applyto economic impact framework x **Event Staff assumed to be all traveling i ** Volunteer assumed to be all traveling 23 Average Spend per Person Average spend of those that competed or supported an athlete at the event (both total trip and daily spend). Avg. Spend Per Person —Total DiscretionaryType Hotel/Accom. Athlete $471 $642 $1,113 Avg. of Supporter 3.03Nights $417 $888 Avg. Spend Per Person — Daily 6 24 Type Hotel/Accom. Discretionary Spend 1� 23 24 12 0*WA Za161A 9RE1TTLING wr N . -. RQKA `. W-• i�� ser171, • �r Itwv A �CF '• .�� 4'5C •v— K Y r61 �eK. '� Sty All •1 �pA • 1 CC!! � .c uvr � +Y "` 1 � � Y ABM AM •rw � � !� 1� "fir• AI 0 AA IAA �A ■ ..- A t� 1 Afl NOW AN wl owa ,low A 7eS1 w+ �ST 1110N t11 i •��_ _ _ -�� IRON'"TAM 2tio 3 1 ( F nv M.r. AG4 ~r 111 City Council Meeting March 17, 2026 P3 -Proclamation Presentation Recognizing Government Finance Professionals Week March +I t 1I'I AyR \�I.1 kv 46 INIA or- 10 c - - - - City Council Meeting March 17, 2026 B1 — FY 2024/25 Year -End Budget Report fir► .,-,,� � ,. March 17, 2026 29 30 15 General Fund Expenses General Fund 2024/25 2024/25 Final Budqet Actuals usted Expenditures 108,418,588 101 Total Expenditures 1V-WWRFN1----37,474,738 -W (11,543,850) i ■ Measure G reserves use of $3.9 million ■ Total expenditure savings after carryovers $11.5 million Carryovers to 2025/26 Capital Improvements ■ Total $31,778,242 ■ For 43 Projects detailed in Exhibit C l Operating ■ Total $850,000 Other Funds 0 Total $2,091,100 Reserve/Fund Balance Committed Cash Flow Reserve Natural Disaster Reserve Economic Disaster Capital Replacement Reserve Ma Total Committed Assigned Public Safety Fire Services Measure G Sales Tax 1 L li Capital Projects Operational Carryovers Total Assianed 5,000,000 5,000,000 - 15,000,000 15,000,000 - 13,000,000 13,000,000 - 12,000,000 12,000,000 - 45,000,000 45,000,000 - 15,652,616 19, 391,133 3,738,517 32,985,374 29,623,592 (3,361,782) 21,666,520 31,778,242 10,111,722 900,000 850,000 (50,000) 71.204.510 81.642.967 10.438.457 TOTAL FUND BALANCE 209,785,718 11 242,951,299 MEMEL— Measure G Summary Fruz Burns Park Improvements M14hwa 111 Pavement RahablUtatIon ■ FY 24-25 Measure G Revenue : $15.6 million ■ Revenues since inception: $108 million 1 Discussion & Questions ■ Strong Financial Position — $24.8M surplus, exceeding expectations ■ Revenue Growth — Higher tax revenues and investment earnings ■ Controlled Spending —Savings across departments, efficient budget management ■ Capital Investments — $31.8M in project carryovers for infrastructure improvements ■ Fully Funded Reserves — Ensuring financial stability for the future r!l ` .+ f • zL" •(Al 11 ()KMA r'' City Council Meeting March 17, 2026 B2- Receive & File Fiscal Year 2025/26 Mid -Year Budget Update Report, Approve the Recommended Budget Adjustments, and Adopt Resolution to Add Engineering Specialist Position " City Budget Outlook STEADY EXPENSES REVENUE ON TARGET MONITOR ECONOMIC ENVIRONMENT Mid -Year Report Content ➢ General Fund Recommended Adjustments: — Revenues — Expenses $94281504 $•1 0 ➢ Engineering Specialist position General Fund Adjustment Requests Description Revenue „Expenses TOTAL GF ADJUSTMENTS $4,435,000 $ 60,000 FY 2026/27 Budget Schedule • May 13 — Financial Advisory Commission • May 19 — City Council/Housing Authority • June 2 — City Council/Housing Authority • June 10 — Financial Advisory Commission • June 10 —Housing Commission • June 16 — City Council, Adoption For the latest budget information visit: www.laquintaca.gov/business/finance/budget Discussion & Questions It 0 kv .fir, J njim i W"A" City Council Meeting March 17, 2026 B3 -Approve Development Agreement By and Between the City of La Quinta and CM Wave Development LLC for Coral Mountain Club Project City Council Meeting � March 17, 2026 B4 —Introduce For First Reading an Ordinance Amending the La Quinta Municipal Code Related to Short Term Vacation Rentals Qar���, CALIFORNIA City Council Meeting March 17, 2026 H1 - Large Lot Qualified & Certified 57600 Coral Mountain Court Large Lot Qualified & Certified 1 • May 20, 2021 —Section 3.25.055 STVR Ban is Jan. 4, 2024 — Section 3.25.057 — provides properties may apply for & be approved as LLQC, if certain criteria are met, to be exempted from the STVR Ban • 57600 Coral Mountain Ct property —seeks exemption &has met all criteria r Hermitage - La Located in south _i Quinta north ;�� of Avenue 58, I& .d •� - west of Madison Street Ilop m � a .044 0 06 0 � secn nve — • 2.15 Acre Lot • Nonprofit Mutual Benefit Association • 13,280 sq ft Living Area • 2 Dwellings 5 Bedrooms • Site Plan • Parking Plan — 3 spaces required 0 Land Use Covenant CALIFORNIA i 0 Active STVRs within 500 ft Public Hearing Notice published in the Desert Sun on February 27, 2026; and were mailed to all property owners within a 500 ft radius from the property line lit' tat ». r� . _ ..err w� � �+1 •-� a 1 i r1 e• �.