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2016 06 07 CC
CALL TO ORDER 44da City Council agendas and staff reports are now available on the City's web page: www.la-quinta.org CITY COUNCIL AGENDA CITY HALL COUNCIL CHAMBERS 78-495 Calle Tampico, La Quinta REGULAR MEETING ON TUESDAY, JUNE 7, 2016 3:00 P.M. CLOSED SESSION 4:00 P.M. OPEN SESSION ROLL CALL: Councilmembers: Franklin, Osborne, Pena, Radi, Mayor Evans PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA At this time, members of the public may address the City Council on any matter not listed on the agenda. Please complete a "Request to Speak" form and limit your comments to three minutes. The City Council values your comments; however in accordance with State law, no action shall be taken on any item not appearing on the agenda unless it is an emergency item authorized by GC 54954.2(b). CONFIRMATION OF AGENDA CLOSED SESSION 1. LABOR NEGOTIATIONS CONFERENCE WITH LABOR NEGOTIATOR, CHRIS ESCOBEDO, REGARDING NEGOTIATIONS WITH THE LA QUINTA CITY EMPLOYEES ASSOCIATION PURSUANT TO GOVERNMENT CODE SECTION 54957.6 MEET AND CONFER PROCESS 2. PUBLIC EMPLOYEE PERFORMANCE EVALUATION, PURSUANT TO GOVERNMENT CODE SECTION 54957, COUNCIL APPOINTED POSITION - CITY ATTORNEY 3. PUBLIC EMPLOYEE PERFORMANCE EVALUATION, PURSUANT TO GOVERNMENT CODE SECTION 54957, COUNCIL APPOINTED POSITION - CITY MANAGER RECESS TO CLOSED SESSION CITY COUNCIL AGENDA 1 JUNE 7, 2016 RECONVENE AT 4:00 P.M. REPORT ON ACTIONS(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. Please complete a "Request to Speak" form and limit your comments to three minutes. The City Council values your comments; however in accordance with State law, no action shall be taken on any item not appearing on the agenda unless it is an emergency item authorized by GC 54954.2(b). ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS 1. PRESENTATION BY COACHELLA VALLEY MOSQUITO AND VECTOR CONTROL 2. INTRODUCTION OF NEW POLICE CHIEF, ROY GRACE CONSENT CALENDAR NOTE: Consent Calendar items are routine in nature and can be approved by one motion. PAGE 1. APPROVE MINUTES OF MAY 17, 2016 2. APPROVE COMMUNITY SERVICES COMMISSION WORK PLAN FOR FISCAL YEAR 2016/17 3. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORTS DATED 27 MARCH 31, 2016 AND APRIL 30, 2016 4. RECEIVE AND FILE THIRD QUARTER FISCAL YEAR 2015/16 39 TREASURY REPORTS FOR THE PERIOD OF JANUARY 1, 2016 THROUGH MARCH 31, 2016 5. APPROVE 2016/17 INVESTMENT ADVISORY BOARD WORK PLAN 69 6. ADOPT RESOLUTION FOR FISCAL YEAR 2016/17 INVESTMENT POLICY 71 [RESOLUTION 2016-019] 7. APPROVE DEMAND REGISTER DATED MAY 13 AND 20, 2016 121 8. ACCEPT OFF-SITE AND ON-SITE IMPROVEMENTS ASSOCIATED WITH 141 THE DARBY ESTATES DEVELOPMENT (TRACT MAP NO. 31087) LOCATED ON THE SOUTH SIDE OF DARBY ROAD, EAST OF PALM ROYALE DRIVE CITY COUNCIL AGENDA 2 JUNE 7, 2016 PAG E 9. ACCEPT OFF-SITE AND ON-SITE IMPROVEMENTS ASSOCIATED WITH THE LA QUINTA RETIREMENT COMMUNITY DEVELOPMENT (PARCEL MAP NO. 36405) LOCATED ON SEELEY DRIVE, EAST OF WASHINGTON STREET, SOUTH OF MILES AVENUE 10. AWARD CONTRACT TO CONSERVE LANDCARE, INC. FOR CITYWIDE LANDSCAPE MAINTENANCE SERVICES, PROJECT NO. 2015-16 11. AWARD CONTRACT TO HORIZON LIGHTING, INC. FOR CITYWIDE LIGHTING MAINTENANCE SERVICES, PROJECT NO. LMC 2015-17 12. APPROVE CONTRACT SERVICES AGREEMENT WITH NELSON JANITORIAL SERVICE FOR 2016/17 JANITORIAL SERVICES 13. AUTHORIZE SUBMISSION OF A GRANT APPLICATION FOR CALIFORNIA DEPARTMENT OF TRANSPORTATION ACTIVE TRANSPORTATION PROGRAM FUNDING AND AUTHORIZE THE MAYOR TO SIGN A LETTER OF SUPPORT BUSINESS SESSION - NONE STUDY SESSION 1. FISCAL YEAR 2016/17 PROPOSED BUDGET 183 2. DISCUSS PARKING TIME LIMITS FOR CERTAIN PUBLIC STREETS IN THE LA QUINTA VILLAGE 3. DISCUSS 2016 PAVEMENT MANAGEMENT PLAN UPDATE 191 PUBLIC HEARINGS — 5:00 P.M. For all Public Hearings on the agenda, a completed "Request to Speak" form must be filed with the City Clerk prior to consideration of that item. 187 A person may submit written comments to City Council before a public hearing or appear in support or opposition to the approval of a project(s). If you challenge a project(s) in court, you may be limited to raising only those issues you or someone else raised at the public hearing or in written correspondence delivered to the City at, or prior to the public hearing. 1. ADOPT RESOLUTION CONFIRMING DIAGRAM AND ASSESSMENT FOR 2016/17 LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT 89-1 [RESOLUTION 2016-020] CITY COUNCIL AGENDA 3 JUNE 7, 2016 DEPARTMENTAL REPORTS PAGE 1. CITY MANAGER - STATE DEPARTMENT OF FINANCE CONFERENCE 2. CITY ATTORNEY - CITY JURISDICTION OVER COACHELLA VALLEY WATER DISTRICT'S PROPOSED CHROMIUM -6 WATER TREATMENT FACILITY NEAR PGA WEST 3. CITY CLERK MAYOR'S AND COUNCIL MEMBER'S ITEMS REPORTS AND INFORMATIONAL ITEMS 1. CVAG COACHELLA VALLEY CONSERVATION COMMISSION (Evans) 2. CVAG ENERGY AND ENVIRONMENTAL RESOURCES COMMITTEE (Evans) 3. CVAG EXECUTIVE COMMITTEE (Evans) 4. GREATER PALM SPRINGS CONVENTION AND VISITORS BUREAU (Evans) 5. LEAGUE OF CALIFORNIA CITIES DELEGATE (Evans) 6. COACHELLA VALLEY WATER DISTRICT POLICY COMMITTEE (Evans) 7. SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS (Evans) 8. CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (Franklin) 9. COACHELLA VALLEY MOUNTAINS CONSERVANCY (Franklin) 10. JACQUELINE COCHRAN REGIONAL AIRPORT AUTHORITY (Franklin) 11. SUNLINE TRANSIT AGENCY (Franklin) 12. AD HOC COMMITTEE TO EVALUATE CITY CANNABIS OPTIONS (Franklin and Pena) 13. CVAG PUBLIC SAFETY COMMITTEE (Osborne) 14. DESERT SANDS SCHOOL DISTRICT COMMITTEE (Osborne and Franklin) 15. IID ENERGY CONSUMERS' ADVISORY COMMITTEE (Osborne) 16. EAST VALLEY COALITION (Osborne) 17. ANIMAL CAMPUS COMMISSION (Pena) 18. CHAMBER OF COMMERCE INFO EXCHANGE COMMITTEE (Pena) 19. CVAG VALLEY -WIDE HOMELESSNESS COMMITTEE (Pena) 20. RIVERSIDE COUNTY TRANSPORTATION COMMISSION (RCTC) (Radi) 21. CVAG TRANSPORTATION COMMITTEE (Radi) 22. COACHELLA VALLEY UNIFIED SCHOOL DISTRICT COMMITTEE (Franklin and Radi) 23. PALM SPRINGS INTERNATIONAL AIRPORT COMMISSION 24. COMMUNITY SERVICES COMMISSION MINUTES DATED FEBRUARY 8, 2016 25. INVESTMENT ADVISORY BOARD MINUTES DATED FEBRUARY 11, 2016 ADJOURNMENT ********************************* The next regular meeting of the City Council will be held on June 21, 2016 commencing with closed session at 3:00 p.m. and open session at 4:00 p.m. at the City Hall Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253. CITY COUNCIL AGENDA 4 JUNE 7, 2016 DECLARATION OF POSTING I, Susan Maysels, City Clerk, of the City of La Quinta, do hereby declare that the foregoing Agenda for the La Quinta City Council meeting was posted on the City's website, near the entrance to the Council Chambers at 78-495 Calle Tampico, and the bulletin boards at the Stater Brothers Supermarket at 78-630 Highway 111, and the La Quinta Cove Post Office at 51-321 Avenida Bermudas, on June 3, 2016 DATED: June 3, 2016 SUSAN MAYSELS, City Clerk City of La Quinta, California Public Notices The La Quinta City Council Chamber is handicapped accessible. If special equipment is needed for the hearing impaired, please call the City Clerk's office at 777-7103, twenty- four (24) hours in advance of the meeting and accommodations will be made. If special electronic equipment is needed to make presentations to the City Council, arrangements should be made in advance by contacting the City Clerk's office at 777- 7103. A one (1) week notice is required. If background material is to be presented to the Councilmembers during a City Council meeting, please be advised that eight (8) copies of all documents, exhibits, etc., must be supplied to the City Clerk for distribution. It is requested that this take place prior to the beginning of the meeting. Any writings or documents provided to a majority of the City Council regarding any item(s) on this agenda will be made available for public inspection at the Community Development counter at City Hall located at 78-495 Calle Tampico, La Quinta, California, 92253, during normal business hours. CITY COUNCIL AGENDA 5 JUNE 7, 2016 CONSENT CALENDAR ITEM NO.1 CITY COUNCIL MINUTES TUESDAY, MAY 17, 2016 A regular meeting of the La Quinta City Council was called to order at 3:00 p.m. by Mayor Evans. PRESENT: Councilmembers Franklin, Osborne, Pena, Radi, Mayor Evans ABSENT: None PUBLIC COMMENT ON MATTERS NOT ON AGENDA - None CONFIRMATION OF AGENDA City Manager Spevacek requested that Business Session Item No. 6 be moved up to be heard first. Councilmember Osborne requested that Consent Calendar Item No. 6 be pulled for discussion and separate vote. Council concurred. CLOSED SESSION 1. LABOR NEGOTIATIONS CONFERENCE WITH LABOR NEGOTIATOR, CHRIS ESCOBEDO, REGARDING NEGOTIATIONS WITH THE LA QUINTA CITY EMPLOYEES ASSOCIATION PURSUANT TO GOVERNMENT CODE SECTION 54957.6 MEET AND CONFER PROCESS 2. CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(d)(1) ALVERIZ ET AL. V. CITY OF LA QUINTA ET AL., RIVERSIDE COUNTY SUPERIOR COURT CASE NO. PSC 1503161; BARTON ET AL. V. CITY OF LA QUINTA ET AL., RIVERSIDE COUNTY SUPERIOR COURT CASE NO. PSC 1505200 3. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54956.8 FOR PROPERTY LOCATED AT: SILVERROCK RESORT (APNS 770-200-026; 776-150-021; 776-150-023; 770- 060-056; 770-060-057; 770-060-058; 770-060-059; 770-060-061; 770-060- 062; 777-490-004; 777-490-006; 777-490-007; 777-490-012 AND 777-490- 014) CITY NEGOTIATOR: FRANK J. SPEVACEK, CITY MANAGER NEGOTIATING PARTY: SILVERROCK DEVELOPMENT COMPANY, LLC. UNDER NEGOTIATION: PRICE AND TERMS OF PAYMENT FOR ACQUISITION AND/OR DISPOSITION OF THE PROPERTY IDENTIFIED CITY COUNCIL MINUTES 1 MAY 17, 2016 COUNCIL RECESSED THE OPEN SESSION PORTION OF THE MEETING AND MOVED INTO CLOSED SESSION AT 3:03 P.M. MAYOR EVANS RECONVENED THE OPEN SESSION PORTION OF THE CITY COUNCIL MEETING AT 4:01 P.M. WITH ALL MEMBERS PRESENT REPORT ON ACTION(S) TAKEN IN CLOSED SESSION: City Attorney Ihrke reported that no actions were taken on Closed Session Item Nos. 1 and 3 that require reporting pursuant to Government Code section 54957.1 (Brown Act). Regarding Closed Session Item No. 2, Mr. Ihrke reported that the City Council unanimously voted to authorize the California Joint Powers Insurance Authority (CJPIA) to participate in mediation as representatives of the City in the following cases: Alveriz et al. v. City of La Quinta et al., Riverside County Superior Court Case No. PSC 1503161 and Barton et al. v. City of La Quinta et al., Riverside County Superior Court Case No. PSC 1505200. COUNCILMEMBER PEN LED THE AUDIENCE IN THE PLEDGE OF ALLEGIANCE PUBLIC COMMENT ON MATTERS NOT ON AGENDA PUBLIC SPEAKER: Connie Koch, La Quinta — Ms. Koch introduced her daughters Madeline and Lilli Koch who explained their school recycling project and requested that the City enroll in Burrtec's Organic Food Waste Recycling program. PUBLIC SPEAKER: Phillip Bettencourt, La Quinta — Mr. Bettencourt noted that he was in attendance as the Planning Commission's liaison. ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS — None CONSENT CALENDAR 1. APPROVE MINUTES OF MAY 3, 2016 2. APPROVE MINUTES OF APRIL 19, 2016 3. ADOPT ORDINANCE NO. 540 IMPLEMENTING A ONE PERCENT TRANSACTIONS (SALES) AND USE TAX, SUBJECT TO VOTER APPROVAL 4. ADOPT ORDINANCE NO. 541 AMENDING CHAPTER 11.44 OF THE LA QUINTA MUNICIPAL CODE TO ENABLE PEACE OFFICERS TO ADMINISTRATIVELY CITE AND EJECT ONE-TIME AND REPEAT OFFENDERS FROM PUBLIC PARKS AND RECREATIONAL AREAS 5. APPROVE DEMAND REGISTERS DATED APRIL 28, 29 AND MAY 6, 2016 CITY COUNCIL MINUTES 2 MAY 17, 2016 8 6. pulled by Councilmember Osborne for discussion and separate vote »> ACCEPT OFF-SITE IMPROVEMENTS ASSOCIATED WITH PARCEL MAP NO. 36883, WASHINGTON PARK COMMERCIAL DEVELOPMENT, NORTHWEST CORNER OF WASHINGTON AND AVENUE 47 7. APPROVE QUITCLAIM DEED OF EASEMENT FOR INGRESS AND EGRESS OF SERVICE AND EMERGENCY VEHICLES ON LOT 1 OF TRACT MAP NO. 28335-R AND ACCEPT GRANT OF EASEMENT AND AGREEMENT FOR A SEPARATE EASEMENT FOR THE SAME PURPOSE ON THE SAME PROPERTY ON LOMA VISTA FROM CASE AND LISA SWENSON MOTION — A motion was made and seconded by Councilmembers Radi/Franklin to approve Consent Calendar Item Nos. 1-5 and 7 as recommended. Motion passed unanimously. In response to Councilmember Osborne, Design and Development Director Jonasson said he will provide details regarding the landscaping bond for the project at Washington Street and Avenue 47. MOTION — A motion was made and seconded by Councilmembers Osborne/Pena to approve Consent Calendar Item No. 6 as recommended. Motion passed unanimously. STUDY SESSION — Part 1 1. PRESENTATION OF PLANS AND DESIGN FOR SILVERROCK RESORT BY SILVERROCK DEVELOPMENT COMPANY Robert Green, Principal, SilverRock Development Company and J. Kevin Heinly, AIA, Principal of Gensler (architectural firm) presented plans for the layout and architectural direction of the project. Councilmembers expressed their support for the modern desert design, color pallet, and orientation of buildings. BUSINESS SESSION [items reordered at meeting] 6. APPROVE IMPLEMENTATION AGREEMENT AND ASSOCIATED OPTION AGREEMENT FOR SILVERROCK RESORT City Economist Jon McMillen presented the staff report, which is on file in the City Clerk's Office. City Attorney Ihrke explained that the blank in the document will be filled in with the final accepted bid amount. CITY COUNCIL MINUTES 3 MAY 17, 2016 9 MOTION — A motion was made and seconded by Councilmembers Franklin/Radi to approve the implementation and option agreements for Silverrock Resort as recommended. Motion passed unanimously. 1. APPROVE THIRD ROUND COMMUNITY SERVICES GRANT REQUESTS Community Services Supervisor Calderon presented the staff report, which is on file in the City Clerk's office. Councilmembers discussed the balance in the grant fund, and the policy requiring grantees to spend grant funds by the end of the fiscal year in which the grant is awarded. Community Resources Director Escobedo said that staff will re-examine the policy. MOTION — A motion was made and seconded by Councilmembers Franklin/Pena to approve a $1,000 grant to the Desert Cancer Foundation as recommended. Motion passed unanimously. 2. APPROVE REDUCTION OF REGULAR CITY COUNCIL MEETINGS TO ONE PER MONTH DURING AUGUST AND SEPTEMBER 2016 BY CANCELLING REGULAR MEETINGS OF AUGUST 16 AND SEPTEMBER 6, 2016 City Clerk Maysels presented the staff report, which is on file in the City Clerk's office. MOTION — A motion was made and seconded by Councilmembers Franklin/Radi to approve reduction of regular City Council meetings to one per month during August and September 2016 by cancelling regular meetings of August 16 and September 6, 2016 as recommended. Motion passed unanimously. 3. ADOPT REVISED RESOLUTIONS RELATED TO CALLING AN ELECTION FOR A MEASURE/ORDINANCE ASKING THE CITY'S QUALIFIED ELECTORS TO APPROVE A ONE PERCENT TRANSACTIONS (SALES) AND USE TAX [RESOLUTIONS 2016- 015, 2016-016 and 2016-017] City Clerk Maysels presented the staff report, which is on file in the City Clerk's Office. Councilmembers made minor edits to the ballot question which staff will make in the three resolutions before submission to the County Registrar of Voters. MOTION — A motion was made and seconded by Councilmembers Osborne/Franklin to adopt revised resolutions, as edited, related to calling an election for a measure/ordinance asking the City's qualified electors to approve a one percent transactions and use tax as recommended. Motion passed unanimously. CITY COUNCIL MINUTES 4 MAY 17, 2016 10 4. RECEIVE AND FILE DRAFT IMPARTIAL ANALYSIS BY CITY ATTORNEY FOR ONE - PERCENT TRANSACTIONS (SALES) AND USE TAX MEASURE City Attorney Ihrlke presented the staff report, which is on file in the City Clerk's office Councilmembers discussed the clarity and contents of the analysis. MOTION — A motion was made and seconded by Councilmembers Radi/Franklin to receive and file a draft impartial analysis by the City Attorney for the one -percent transactions and use tax measure. Motion passed unanimously. MAYOR EVANS PERMITTED A LATE SPEAKER ON CONSENT CALENDAR ITEM NO. 4 PUBLIC SPEAKER: Christine Bieger — Ms. Bieger spoke in opposition to Ordinance 541 stating that it gives law enforcement blanket permission to cite and eject skaters. 5. APPROVE SILVERROCK RESORT 2016/17 ANNUAL PLAN WHICH INCLUDES THE PURCHASE OF NEW MAINTENANCE EQUIPMENT FROM THE SILVERROCK CAPITAL RESERVES Facilities Director Howlett presented the staff report, which is on file in the City Clerk's Office. Councilmembers discussed the number of rounds annually; the average time to complete rounds; water conservation, use of canal water, turf reduction, and the increase in water costs; the number of resident cards issued; equipment purchase and trade in; the addition of foot golf, which will bring new users and additional revenue, and; the effective use of marketing funds. MOTION — A motion was made and seconded by Councilmembers Radi/Franklin to approve Silverrock Resort 2016/17 annual plan as recommended, which includes the purchase of new maintenance equipment from the Silverrock capital reserves. Motion passed unanimously. MAYOR EVANS RECESSED THE MEETING FOR A 15 MINUTE BREAK MAYOR EVANS RECONVENED THE MEETING AT 6:19 P.M. WITH ALL MEMBERS PRESENT Community Resources Manager Larson introduced new employee Marcie Graham, who will hold the position of Marketing and Events Supervisor. STUDY SESSION — Part 2 2. FISCAL YEAR 2016/17 PROPOSED BUDGET City Manager Spevacek, Finance Director Conrad, and Accounting Manager Campos, presented the staff report, which is on file in the City Clerk's office. CITY COUNCIL MINUTES 5 MAY 17, 2016 11 Councilmembers discussed the projected deficit; protecting City revenues from the State; Council opposition to State collecting and passing -through transient occupancy taxes (TOT); phasing in fees at the full cost recovery level; cost effectiveness of employee retention versus recruitment; requirements for renters to obtain short term vacation rental permits; effect of reducing police patrol hours; restructuring the fee for appeals; Public Employees' Retirement System payback balance; earmarking the annual loan repayment for capital projects; the growth of the fire services budget outpacing the growth of the dedicated tax revenue set to cover it; the timeline for examining the Chamber of Commerce and the La Quinta Arts Foundation budgets; the long-term consequences of rising police and fire costs. COUNCILMEMBER PENA LEFT THE MEETING AT 6:52 P.M. Councilmember Osborne requested a report from the City's lobbyist firm on the status of the proposal that the State assume from cities the collection and distribution of TOT. PUBLIC HEARINGS 1. ADOPT RESOLUTION APPROVING FISCAL YEAR 2016/17 THROUGH 2020/21 CAPITAL IMPROVEMENT PROGRAM [RESOLUTION 2016-018] Principal Engineer Wimmer presented the staff report, which is on file in the City Clerk's office. Councilmembers discussed roundabout locations, design and benefits; Fritz Burns pool operation, and; the widening of Madison Street. Mayor Evans declared the PUBLIC HEARING OPEN at 7:44 p.m. PUBLIC SPEAKER: Allen Janisch of Toll Brothers — Mr. Janisch urged the Council to reimburse Toll Brothers for the street and median improvements they completed when they developed the Madison Club. Mayor Evans declared the PUBLIC HEARING CLOSED at 7:52 p.m. City Manager Spevacek said that staff will provide a schedule of pending developer reimbursements along with payment options. MOTION — A motion was made and seconded by Councilmembers Osborne/Radi to adopt RESOLUTION 2016-018 entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING THE FISCAL YEAR 2016/2017 THROUGH 2020/2021 CAPITAL IMPROVEMENT PROGRAM Motion passed: ayes 4, noes 0, absent 1 (Pena) CITY COUNCIL MINUTES 6 MAY 17, 2016 12 DEPARTMENT REPORTS All reports are on file in the City Clerk's Office. City Attorney Ihrke summarized his report on the City's ability to apply existing TOT rates to resort fees. City Clerk Maysels provided deadline dates for the submittal of primary ballot arguments and rebuttal arguments for or against a measure. Planning Manager Perez reported on the additional concert scheduled by Goldenvoice in the Fall. MAYOR'S AND COUNCIL MEMBER'S ITEMS — None REPORTS AND INFORMATIONAL La Quinta's representative for 2016, Mayor Evans reported on her participation in the following organizations meeting: CVAG COACHELLA VALLEY CONSERVATION COMMISSION CVAG ENERGY & ENVIRONMENTAL RESOURCES COMMITTEE GREATER PALM SPRINGS CONVENTION & VISITORS BUREAU LEAGUE OF CALIFORNIA CITIES DELEGATE SO. CALIFORNIA ASSOCIATION OF GOVERNMENTS La Quinta's representative for 2016, Councilmember Franklin reported on her participation in the following organization meeting: COACHELLA VALLEY MOUNTAINS CONSERVANCY JACQUELINE COCHRAN REGIONAL AIRPORT AUTHORITY SUNLINE TRANSIT AGENCY La Quinta's representative for 2016, Councilmember Osborne reported on his participation in the following organizations meeting: CVAG PUBLIC SAFETY COMMITTEE La Quinta's representative for 2016, Councilmember Radi reported on his participation in the following organization meeting: RIVERSIDE COUNTY TRANSPORTATION COMMISSION (RCTC) ADJOURNMENT There being no further business, a motion was made and seconded by Councilmembers Franklin/Radi to adjourn at 8:30 p.m. Motion passed: ayes 4, noes 0, absent 1 (Pena). CITY COUNCIL MINUTES 7 MAY 17, 2016 13 Respectfully submitted, SUSAN MAYSELS, City Clerk City of La Quinta, California CITY COUNCIL MINUTES 8 MAY 17, 2016 14 City of La Quinta CITY COUNCIL MEETING: June 7, 2016 STAFF REPORT CONSENT CALENDAR ITEM NO. 2 AGENDA TITLE APPROVE COMMUNITY SERVICES COMMISSION WORK PLAN FOR FISCAL YEAR 2016/17 RECOMMENDATION Approve the Community Services Commission Work Plan for Fiscal Year 2016/17. EXECUTIVE SUMMARY • The Annual Work Plan (Plan) serves as direction for the activities of the Community Services Commission (Commission). The plan outlines the general services that the Commission will embark on during the next fiscal year. FISCAL IMPACT None at this time. The financial elements of the Plan will be approved by City Council during the annual budget process. BACKGROUND/ANALYSIS The Municipal Code provides that the Commission shall annually prepare a Plan for City Council consideration. If approved, the projects and programs are then incorporated in the annual City Operating Budget. Page 2 of the Plan presents a list of the Commission's responsibilities, which include the following: Marketing Plan Reviews Community Resources marketing plan and identifies recreation program effectiveness based on participation levels, class cancellation rates and surveys, then suggests improvements to the Plan. This Plan is a segment of the City's Marketing Plan and promotes the Healthy Eating Active Living Campaign, recreation programs, events, and the Wellness Center. Planning and Development Reviews proposed park and recreation facility development and renovation, and analyzes City-wide recreation program and facility needs. Liaison to the Community Invites non-profit service providers and recipients of Community Service Grants to meetings to inform them of available City supported programs and services. 15 Community Events Attends community events and makes suggestions for improvements. Community events include: Nature Hikes, Wellness Center Health Fair, Zombie Run, Christmas Tree Lighting Ceremony, Wellness Events, La Quinta Talent Showcase, Better Together Cancer Event, Desert Youth Olympics, Easter Egg Hunt, Community Picnic and Birthday Party, Moonlight Movies and Veteran and Resident Acknowledgements. Park Management Program Provides input on existing park conditions and apprises staff of ongoing park and trail management, maintenance and repair and replacement. Advisory Body to the City Council Reviews issues related to parks and recreation, takes action as directed from City Council, maintains communications, and provides an annual work plan for Council review. Art in Public Places As outlined in the Art in Public Places Strategic Plan, the Commission will 1) review the proposed artwork in relationship to the site and scale with consideration given to diversity of artists, art work, and proposed budget; 2) continue the preventive maintenance program for public art based upon the maintenance requirements of each piece; and 3) support and promote cultural offerings held in the City. ALTERNATIVES Approve the Commission's Plan for 2016/17 with modifications. Prepared by: Tustin K. Larson, Community Resources Manager Approved by: Chris Escobedo, Director of Community Resources Attachment: 1. Work Plan 2016/17 16 ATTACHMENT 1 COMMUNITY SERVICES COMMISSION PHILOSOPHY The general purpose of the Community Services Commission is to encourage the development of a planned and orderly approach to the delivery of leisure and community services in the City. The objectives of the Commission are to: • Serve in an advisory capacity to the City Council on identifying matters pertaining to recreation, cultural arts, and community services; • Communicate the availability of services to citizens through both private and public resources to avoid duplication and conflict of effort; • To evaluate the effectiveness of services provided. ASSIGNMENT ITEMS: PAGE 2016/2017 Specific Goals and Objectives 2 Marketing Plan 3 Planning and Development 4 Liaison to the Community 5 Community Events 6 Park Management Program 7 Advisory Body to City Council 8 Art in Public Places 9 Page 1 of 9 17 2016/2017 Specific Goals and Objectives ASSIGNMENT ITEMS GOALS AND OBJECTIVES Marketing Plan Review and update the Community Resources Marketing Plan for implementation by staff. Planning and Development Review proposed park and recreation capital improvements. Liaison to Community Invite local service providers to attend Commission meetings to describe services available to residents. Community Events Host citywide events at various locations throughout the year. Collaborate with other community groups and non-profit organizations to maximize resources. Park Management Plan Monitor the park management plan for preventive maintenance and management of existing public park facilities. Advisory Body to City Council Reviews issues relating to Community Services and takes action as directed from City Council; maintain communication with City Council; and provide annual work plan for City Council review. Art in Public Places Identify and recommend appropriate projects and locations for the installation of public art. Support the preventative maintenance program based upon the specific needs of each art piece. Utilize the Artist's Registry from the La Quinta Arts Foundation in future projects. Page 2 of 9 18 Task: Completion Date: Participants: Suggested Resources: Steps to Completion: Staff Time: Fiscal Commitment: Staff Role: City Council Role: Reference: Marketing Plan September 2016 Commissioners and City staff 2016/17 City Marketing Strategies The Commission will review the Community Resources Department marketing plan and identify effectiveness based on participation levels, surveys, and suggest improvements to the plan. This plan is in coordination with the City's Marketing Plan. Promote the Healthy Eating Active Living (HEAL) campaign, and city wide special events and programs. Promote services offered at the La Quinta Wellness Center, and other locations around the City. Collaborate with sports associations to reach north area residents. 60 hours during marketing plan development and implementation. $38,000 plus staff time, if approved by City Council. Provide information and implement the plan. Provide direction to Commission to fulfill this assignment. 2.95.040 (9): Make recommendations to the City Council on how to disseminate, publicize, and promote recreation programs and events to the citizens of La Quinta. Page 3 of 9 19 Task: Planning and Development Completion Date: On-going Participants: Commissioners. Staff and User Groups, if needed. Suggested Resources: La Quinta Comprehensive General Plan and Community Services Master Plan. Steps to Completion: Staff Time: The Commission will review proposed park and recreation facility development or renovation. The Commission may review plans for renovations or improvements to various City parks. 30-40 hours per project depending on scope of project. Fiscal Commitment: Dependent upon the park or recreation project. Staff Role: Provide support and liaison to the City Council. City Council Role: Include the Commission in the design and development process and conduct public hearings. Review and consider Commission recommendations. Reference: 2.95.040 (5): Serve as a public forum and conduct public hearings. (11): Review individual park and facility plans for recommendation to City Council. Page 4of9 20 Task: Completion Date: Participants: Suggested Resources: Steps to Completion: Staff Time: Fiscal Commitment: Staff Role: City Council Role: Reference: Liaison to the Community On-going Commissioners Collaborate with government agencies and area non -profits such as La Quinta Boys and Girls Club, Desert Recreation District, YMCA of the Desert, La Quinta Chamber of Commerce, La Quinta Arts Foundation, and Old Town Artisan Studio. Invite service provider representatives to the Commission meetings to inform the Commission of available services to the community. Invite recipients of Community Service Grants to attend Commission meetings to communicate about City supported programs and services. Two hours bi-monthly. None. Provide support and liaison to the City Council. Provide Commission with specific methods as to how to best represent the City Council. Chapter 2.95.040 (12): Aid in coordinating the park and recreation services with other governmental agencies and volunteer organizations. (13): Make recommendations to the City Council on community issues. Chapter 2.75.040(6): Work cooperatively with City Boards, Commissions and committees, and other public and private organizations promoting art and cultural activities within the City. Page 5 of 9 21 Task: Completion Date: Participants: Suggested Resources: Steps to Completion: Staff Time: Fiscal Commitment: Staff Role: City Council Role: Reference: Community Events On-going Commissioners Community resources and local businesses and non- profit agencies. Host citywide events throughout the year. Special Events for 2016/17 include: Nature Hikes, Wellness Center Health Fair, Zombie Run, Christmas Tree Lighting Ceremony, Wellness Events, La Quinta Talent Showcase, Better Together Cancer Event, Desert Youth Olympics, Easter Egg Hunt, Community Picnic and Birthday Party, Moonlight Movies and Veteran and Resident Acknowledgements. 30 - 40 hours per event. $20,000 for event development with financial support from outside sponsorships and partners including local businesses and non -profits, if approved by City Council. Provide support and liaison to the City Council. Provide Commission with direction/comments. Chapter 2.95.040 (15): Recommend to the City Council and upon authorization conduct such programs as, in the opinion of the commission, will increase goodwill and participation among the residents of the community. Page 6of9 22 Task: Completion Date: Participants: Suggested Resources: Steps to Completion: Staff Time: Fiscal Commitment: Staff Role: City Council Role: Reference: Park Management Program On-going Commissioners Various public agencies in the community. The Commission will provide staff input to existing park conditions and make comments regarding ongoing park management, maintenance, repair and replacement. Support and promote the Adopt -A - Park program and evaluate the annual sports field maintenance plan at the three sports facilities. 15 - 20 hours per week. None. Utilize the Coachella Valley Water District water use assessment. Communicate with the local sports associations and residents regarding issues in City owned and maintained parks. Provide approval for Commission to fulfill this assignment. Chapter 2.95.040 (10): Review parks maintenance standards and quality. Page 7of9 23 Task: Completion Date: Participants: Suggested Resources: Steps to Completion: Staff Time: Fiscal Commitment: Staff Role: City Council Role: Reference: Advisory Body to City Council On-going Commissioners To Be Determined. The Commission will review issues relating to Parks and Recreation and take action as directed from City Council, maintain communications with City Council, and provide annual work plan for City Council review. Communicate with the City Council and share items of importance with citizens. 4 - 6 hours per month. None. Provide support and liaison to the City Council. Provide Commission with specific direction as to how to better assist the City Council. Provide opportunities to meet with City Council through joint meetings. Chapter 2.95.020 (A): To serve in an advisory capacity to the City Council to identify community needs for recreation, healthy activities and social services; Chapter 2.95.040 (4): Receive and act on all assignments made by the City Council, and submit reports and recommendations to the city council on these assignments; (5): Serve as a public forum and conduct public hearings for recreation service concerns; Chapter 2.95.060 (C): The City Council shall periodically review the progress of the Commission. Page 8of9 24 Task: Completion Date: Participants: Suggested Resources: Steps to Completion: Staff Time: Fiscal Commitment: Staff Role: City Council Role: Reference: Art in Public Places On-going Commissioners and staff Commissioners, City Council, Developers and La Quinta Arts Foundation and Residents. As outlined in the Art in Public Places Strategic Plan, identify potential locations where public art should be recommended. Review the proposed artwork in relationship to the site and appropriateness of scale with consideration to diversity of artists, art work, and proposed budget. Continue the art preventive maintenance program based upon the condition of each art piece. Support and promote cultural offerings held in the City. 20 - 30 hours per project. Funds appropriated from the Art in Public Places account. Consider site, art piece, and appropriation of funds. Art placement subject to final City Council approval. Chapter 2.75.040 (12): The Commission will submit to the City Council a recommendation for ratification of public art to be financed by the Art in Public Places program. (15): The Commission will make recommendations to the City Council for the commissioning of artworks, the purchase or lease of art sites, agreements for the purchase and display of artwork, or the repair, maintenance or servicing of artwork. Page 9 of 9 25 26 CONSENT CALENDAR 1 TEM NO. Qty of La Quinta aTYcou a L MEETI NG: June 7,2016 STAFF REPORT AGEN DA TI TLE, RECEI VE AND FI LE REVENUE AND EXPEN DI TU RE REPORTS DATED MARCH 31, 2016 AND APRI L 30, 2016 RECOM M EN DATI ON Receive and file revenue and expenditure reports dated March 31, 2016 and April 30, 2016. =XECUTI VE SUMMARY Revenue and expenditure reports are submitted monthly for Oty Council review. The reports sum marize the City's year-to-date (YTD) revenues and expendituresfor March 2016 (Attachment 1) and April 2016 (Attachment 2). FI SCAL I MPACT - None. BACKGROUND/ ANALYSI S Revenues Below is a summary of the column headers used on the Revenue Summary FBport All Funds: Original Total Budget - representsthe revenue budget the Council adopted in June 2015 for Fiscal Year (FY) 2015/16. Current Total Budget - includes original adopted revenue budget, plus carryovers, from the prior FY and Council -approved budget amendments. The bulk of the carryovers are related to Capital Improvement Project (CI P) matters. Each year total a P projects are budgeted; however, project length may span over multiple years. Therefore, unfinished projects from the prior year are carried over (along with associated revenue reimbursements). Period Activity- represents actual revenues received in the reporting month. Fiscal Activity- presents actual revenues collected YTD. For example, the March report shows revenues collected in March in the Period Activity column, but revenues collected from the beginning of the FYthrough the end of the reporting month for 2015/16 are presented in the Fiscal Activity column. 27 Variance Favorable/ (Unfavorable) - represents the difference between YTD collections and the budgeted amount. Percent Used - represents the percentage of budgeted revenues collected YTD. The revenue report includes revenues and transfers into fundsfrom other funds (income items). Unlike expenditures, revenues are not received uniformly throughout the year, which results in peaks and valleys depending upon large payments that are received throughout the year. For example, large property tax payments are usually received in December and May. Smilarly, Redevelopment Property Tax Trust Fund payments are typically received in January and June. March Revenues $3.7 million in General Fund revenue was collected in March bringing the total YTD collectionsto 55 percent ($21.8 million). Total collections for all funds were $5.9 million, bringing total collections to 47 percent ($44.3 million). The bulk of General Fund payments consisted of: $793,433 - sales tax $889,014 - transient occupancy tax (TOT) $1.5 million - property tax related to fire services The larger non -General Fund payments received in March consisted of: $647,568 - SilverRock revenue $138,316 - gas tax revenue $835,624 - county revenue related to Library and Museum operations April Revenues $3.9 million in General Fund revenue was collected in April bringing the total YTD collections to 62.3 percent ($24.7 million). Total collections for all funds were $4.8 million, bringing total collections to 52 percent ($44.8 million). The bulk of General Fund payments consisted of: $439,195 - property tax $1.2 million - transient occupancy tax (TOT) $635,600 - sales tax The largest non -General Fund payments received in April consisted of: $442,015 - SlverRock revenue $59,951 - Measure A sales tax $17,052 - developer impact fees (DIF)/Transportation DI Ffund 28 Expenditures Below is a summary of the column headers used on the Expenditure SummaryRtport All Funds: Original Total Budget - represents the expenditure budget adopted by Council in June 2015 for FY2015/16. Current Total Budget - includes the original adopted expenditure budget plus any carryoversfrom the prior FY, and any Council approved budget amendments. The bulk of the carryovers are related to a P matters. Each year total a P projects are budgeted; however, project length can span over multiple years. Therefore, unfinished projects from the prior year are carried over (along with associated revenue reimbursements). Period Activity- represents actual expenditures made in the reporting month. Fiscal Activity- presents actual expenditures made YTD. For example, the March report shows expenditures made in the Period Activity column (March), but expenditures made during the fiscal year from July through the end of the reporting period are presented in the Fiscal Activity column. Variance Favorable/ (Unfavorable) - represents the difference between YTD expenditures and the budgeted amount (the amount yet to be expended). Percent Used - represents the percentage of budget spent to date. The expenditure report includes expenditures and transfers out to other funds. Unlike revenues, expenditures are fairly consistent month to month. However, large debt service payments or a Pexpenditures can cause swings. March Expenditures General Fund expenditures in March total $4.4 million bringing the total YTDexpenditures to 47 percent. Of the $4.4 million, $509,040 is related to monthly personnel costs (salaries, benefits, etc.). In addition to personnel costs, the other larger General Fund expenditures in March were: $1.9 million for contract police services (10/01/15 to 12/09/15)) $1.4 million for contract fire services (10/01/15 to 12/31/15) $21,807 for contract traffic engineering services Total expendituresfor all funds in March were $11.3 million. The larger non -General Fund expenditures were: $5.5 million for Successor Agency Debt Service payments $271,465 for SilverRock contract golf management costs $140,225 for costs related to playground equipment and installation 29 April Expenditures General Fund expenditures in April total $3.7 million bringing the total YTDexpenditures to 55 percent. Of this amount, $496,060 is related to monthly personnel costs (salaries, benefits, etc.). In addition to personnel costs, the other larger General Fund expenditures in April were: $43,605 for contract engineering costs $45,298 for payment to Greater Palm Springs CVB (based on TOT) $27,281 to La Quinta Chamber of Commerce Total expenditures for all funds equaled $5.5 million. The larger non -General Fund expenditures were: $309,400 to LandMark for contract golf management at SilverRock $72,760 for the Civic Center turf conversion project $43,750 for quarterly contract museum costs Summary All funds are generally on target or under budget with regard to expenditures. Revenue collections appear low due to timing issues discussed in the revenue section above. The timing imbalance of revenues receipts versus expenditures is funded from the City's cash flow reserve. Prepared by: Rita Conrad, Finance Director Approved by: Frank J. Spevacek, Qty Manager Attachments: 1. Revenue and Expenditure Reports for March 2016 2. Revenue and Expenditure Reports for April 2016 30 ATTACHMENT 1 City of La Quinta March 2016 Revenue and Expenditure Reports 32 Fund REVENUE SUMMARY REPORT ALL FUNDS City of La Quinta, CA MARCH 2016 For Fiscal: 2015/16 Period Ending: 03/31/2016 101- GENERAL FUND 201- GAS TAX FUND 202 - LIBRARY FUND 210- FEDERAL ASSISTANCE FUND 212 - SLESF (COPS) FUND 213 - JAG FUND 215 - LIGHTING & LANDSCAPING FUND 218 - CV VIOLENT CRIME TASK FORCE 219 - ASSET FORFEITURE 220 - QUIMBY FUND 221- AB 939 223 - MEASURE A 224-TUMF 225 - INFRASTRUCTURE FUND 231- SUCCESSOR AGCY PA 1 RORF 235 - SO COAST AIR QUALITY FUND 237 - SUCCESSOR AGCY PA 1 ADMIN 241- HOUSING AUTHORITY 242 - HOUSING AUTHORITY PA2 249 - SA 2011 LOW/MOD BOND FUND 250 -TRANSPORTATION DIF FUND 251- PARKS & REC DIF FUND 252 - CIVIC CENTER DIF FUND 253 - LIBRARY DEVELOPMENT DIF 254 - COMMUNITY CENTER DIF 255 - STREET FACILITY DIF FUND 256 - PARK FACILITY DIF FUND 257 - FIRE PROTECTION DIF 270 -ART IN PUBLIC PLACES FUND 275 - LQ PUBLIC SAFETY OFFICER 299 - INTEREST ALLOCATION FUND 310 - LQ FIN AUTHORITY DEBT SVC 401- CAPITAL IMPROVEMENT PROGRAMS 501- EQUIPMENT REPLACEMENT 502 - INFORMATION TECHNOLOGY 503 - PARK EQUIP & FACILITY FND 504- INSURANCE FUND 601- SILVERROCK RESORT 602 - SILVERROCK GOLF RESERVE Variance Original Current Period Fiscal Favorable Percent Total Budget Total Budget Activity Activity (Unfavorable) Used 38611700.00 39,734,100.00 3,735,487.49 21,854,043.97 -17,880,056.03 55.00 % 1438700.00 1,438,700.00 138,481.08 647,685.15 -791,014.85 45.02 % 2206000.00 2,206,000.00 843,760.81 1,121,743.45 -1,084,256.55 50.85 % 145000.00 145,000.00 0.00 0.00 -145,000.00 0.00 % 100100.00 100,100.00 8,773.14 90,424.20 -9,675.80 90.33 % 12000.00 12,000.00 0.00 5,000.00 -7,000.00 41.67 % 1452800.00 1,452,800.00 0.00 509,461.58 -943,338.42 35.07 % 0.00 23,086.00 10,689.57 28,711.92 5,625.92 124.37 % 0.00 0.00 23.06 47.47 47.47 0.00 % 87000.00 87,000.00 14,004.69 29,088.40 -57,911.60 33.43 % 2500.00 2,500.00 1,842.13 3,806.92 1,306.92 152.28 % 749500.00 749,500.00 1,690.26 431,630.92 -317,869.08 57.59 % 0.00 0.00 43.40 184.85 184.85 0.00 % 0.00 0.00 58.86 121.19 121.19 0.00 % 0.00 0.00 1,992.97 7,477,696.88 7,477,696.88 0.00 % 45300.00 45,300.00 11,624.02 37,110.71 -8,189.29 81.92 % 0.00 0.00 0.00 221,122.00 221,122.00 0.00 % 245900.00 245,900.00 29,699.37 245,597.86 -302.14 99.88 % 620300.00 620,300.00 52,401.46 474,560.40 -145,739.60 76.50 % 0.00 0.00 122.31 1,155.57 1,155.57 0.00 % 657700.00 657,700.00 34,669.53 410,467.69 -247,232.31 62.41 % 350000.00 350,000.00 18,432.00 186,368.00 -163,632.00 53.25 % 200000.00 200,000.00 8,624.00 94,262.05 -105,737.95 47.13 % 65000.00 65,000.00 3,096.00 31,304.00 -33,696.00 48.16 % 39700.00 39,700.00 1,406.33 12,240.02 -27,459.98 30.83 % 35000.00 35,000.00 2,124.95 19,601.83 -15,398.17 56.01 % 7000.00 7,000.00 360.84 3,641.62 -3,358.38 52.02 % 80000.00 80,000.00 3,964.00 43,341.36 -36,658.64 54.18 % 98500.00 98,500.00 4,153.25 37,061.73 -61,438.27 37.63 % 2100.00 2,100.00 84.60 175.64 -1,924.36 8.36 % 0.00 0.00 -58,007.87 0.00 0.00 0.00 % 671000.00 671,000.00 53,769.06 675,509.14 4,509.14 100.67 % 13924218.00 38,372,234.17 81,399.35 4,912,599.59 -33,459,634.58 12.80 % 533000.00 533,000.00 50,011.73 432,145.87 -100,854.13 81.08 % 758400.00 758,400.00 45,382.63 395,717.33 -362,682.67 52.18 % 548300.00 548,300.00 51,808.15 422,926.42 -125,373.58 77.13 % 608000.00 608,000.00 67,475.01 607,275.09 -724.91 99.88 % 3942500.00 3,942,500.00 647,568.65 2,807,293.08 -1,135,206.92 71.21 % 68500.00 68,500.00 884.78 1,883.46 -66,616.54 2.75 % Report Total: 68,305,718.00 93,899,220.17 5,867,901.61 44,273,007.36 -49,626,212.81 47.15 % 33 Fund City of La Quinta, CA 101- GENERAL FUND 201- GAS TAX FUND 202 - LIBRARY FUND 210- FEDERAL ASSISTANCE FUND 215 - LIGHTING & LANDSCAPING FUND 218 - CV VIOLENT CRIME TASK FORCE 220 - QUIMBY FUND 221- AB 939 223 - MEASURE A 231- SUCCESSOR AGCY PA 1 RORF 235 - SO COAST AIR QUALITY FUND 237 - SUCCESSOR AGCY PA 1 ADMIN 241- HOUSING AUTHORITY 242 - HOUSING AUTHORITY PA2 248 - SA 2004 LO/MOD BOND FUND 250 -TRANSPORTATION DIF FUND 252 - CIVIC CENTER DIF FUND 253 - LIBRARY DEVELOPMENT DIF 255 -STREET FACILITY DIF FUND 256- PARK FACILITY DIF FUND 257 - FIRE PROTECTION DIF 270 - ART IN PUBLIC PLACES FUND 310 - LQ FIN AUTHORITY DEBT SVC 401- CAPITAL IMPROVEMENT PROGRAMS 405 - SA PA 1 CAPITAL IMPRV FUND 501- EQUIPMENT REPLACEMENT 502 - INFORMATION TECHNOLOGY 503 - PARK EQUIP & FACILITY FND 504- INSURANCE FUND 601- SILVERROCK RESORT EXPENDITURE SUMMARY REPORT ALL FUNDS MARCH 2016 For Fiscal: 2015/16 Period Ending: 03/31/2016 Variance Original Current Period Fiscal Favorable Percent Total Budget Total Budget Activity Activity (Unfavorable) Used 42061500.00 44,084,190.27 4,381,807.65 20,799,885.16 23,284,305.11 47.18 % 1286200.00 1,323,100.00 112,725.08 949,576.48 373,523.52 71.77 % 1761400.00 2,697,659.37 -2,747.27 1,563,594.90 1,134,064.47 57.96 % 0.00 422,706.00 0.00 0.00 422,706.00 0.00 % 1452800.00 1,452,800.00 137,543.51 894,020.99 558,779.01 61.54 % 55650.00 46,634.00 2,274.20 23,134.27 23,499.73 49.61 % 3620000.00 4,408,248.14 0.00 135,429.50 4,272,818.64 3.07 % 61500.00 61,500.00 3,017.95 18,875.35 42,624.65 30.69 % 1105500.00 1,228,640.55 0.00 452,924.35 775,716.20 36.86 % 0.00 0.00 5,493,432.38 11,164,756.51 -11,164,756.51 0.00 % 0.00 0.00 0.00 15,067.68 -15,067.68 0.00 % 0.00 0.00 3,723.50 45,874.50 -45,874.50 0.00 % 384000.00 384,000.00 28,081.95 313,722.90 70,277.10 81.70 % 621000.00 621,000.00 47,364.50 391,260.75 229,739.25 63.00 % 0.00 27,996,401.00 45,597.94 70,695.94 27,925,705.06 0.25 % 1731400.00 3,111,776.26 0.00 522,813.46 2,588,962.80 16.80 % 0.00 0.00 15,351.30 47,312.58 -47,312.58 0.00 % 0.00 0.00 1,926.99 9,393.26 -9,393.26 0.00 % 0.00 0.00 4,131.39 12,749.89 -12,749.89 0.00 % 0.00 0.00 1,080.95 3,643.25 -3,643.25 0.00 % 0.00 0.00 1,325.47 4,166.73 -4,166.73 0.00 % 129000.00 329,000.00 33,650.00 108,592.00 220,408.00 33.01 % 678076.00 678,076.00 0.00 624,171.75 53,904.25 92.05 % 190400.00 37,740,801.10 619,849.32 4,899,615.68 32,841,185.42 12.98 % 0.00 5,733,021.40 0.00 0.00 5,733,021.40 0.00 % 705700.00 898,065.00 16,876.14 527,627.80 370,437.20 58.75 % 637600.00 753,600.00 31,232.63 402,812.22 350,787.78 53.45 % 704500.00 704,500.00 0.00 40,129.61 664,370.39 5.70 % 608000.00 817,000.00 71,827.20 672,258.20 144,741.80 82.28 % 4375100.00 4,375,100.00 294,981.60 3,055,431.68 1,319,668.32 69.84 % Report Total: 62,169,326.00 139,867,819.09 11,345,054.38 47,769,537.39 92,098,281.70 34.15 % 34 ATTACHMENT 2 City of La Quinta April 2016 Revenue and Expenditure Reports 36 Fund REVENUE SUMMARY REPORT ALL FUNDS City of La Quinta, CA APRIL 2016 For Fiscal: 2015/16 Period Ending: 04/30/2016 101- GENERAL FUND 201- GAS TAX FUND 202 - LIBRARY FUND 210- FEDERAL ASSISTANCE FUND 212 - SLESF (COPS) FUND 213 - JAG FUND 215 - LIGHTING & LANDSCAPING FUND 218 - CV VIOLENT CRIME TASK FORCE 219 - ASSET FORFEITURE 220 - QUIMBY FUND 221- AB 939 223 - MEASURE A 224-TUMF 225 - INFRASTRUCTURE FUND 231- SUCCESSOR AGCY PA 1 RORF 235 - SO COAST AIR QUALITY FUND 237 - SUCCESSOR AGCY PA 1 ADMIN 241- HOUSING AUTHORITY 242 - HOUSING AUTHORITY PA2 249 - SA 2011 LOW/MOD BOND FUND 250 -TRANSPORTATION DIF FUND 251- PARKS & REC DIF FUND 252 - CIVIC CENTER DIF FUND 253 - LIBRARY DEVELOPMENT DIF 254 - COMMUNITY CENTER DIF 255 - STREET FACILITY DIF FUND 256 - PARK FACILITY DIF FUND 257 - FIRE PROTECTION DIF 270 -ART IN PUBLIC PLACES FUND 275 - LQ PUBLIC SAFETY OFFICER 299 - INTEREST ALLOCATION FUND 310 - LQ FIN AUTHORITY DEBT SVC 401- CAPITAL IMPROVEMENT PROGRAMS 501- EQUIPMENT REPLACEMENT 502 - INFORMATION TECHNOLOGY 503 - PARK EQUIP & FACILITY FND 504- INSURANCE FUND 601- SILVERROCK RESORT 602 - SILVERROCK GOLF RESERVE Variance Original Current Period Fiscal Favorable Percent Total Budget Total Budget Activity Activity (Unfavorable) Used 38611700.00 39,734,100.00 2,890,833.58 24,744,877.55 -14,989,222.45 62.28 % 1438700.00 1,438,700.00 0.00 647,685.15 -791,014.85 45.02 % 2206000.00 2,206,000.00 0.00 1,121,743.45 -1,084,256.55 50.85 % 145000.00 145,000.00 0.00 0.00 -145,000.00 0.00 % 100100.00 100,100.00 8,333.33 98,757.53 -1,342.47 98.66 % 12000.00 12,000.00 0.00 5,000.00 -7,000.00 41.67 % 1452800.00 1,452,800.00 0.00 509,461.58 -943,338.42 35.07 % 0.00 23,086.00 0.00 28,711.92 5,625.92 124.37 % 0.00 0.00 0.00 47.47 47.47 0.00 % 87000.00 87,000.00 0.00 29,088.40 -57,911.60 33.43 % 2500.00 2,500.00 0.00 3,806.92 1,306.92 152.28 % 749500.00 749,500.00 59,951.22 491,582.14 -257,917.86 65.59 % 0.00 0.00 0.00 184.85 184.85 0.00 % 0.00 0.00 0.00 121.19 121.19 0.00 % 0.00 0.00 29.23 7,477,726.11 7,477,726.11 0.00 % 45300.00 45,300.00 0.00 37,110.71 -8,189.29 81.92 % 0.00 0.00 0.00 221,122.00 221,122.00 0.00 % 245900.00 245,900.00 23,996.38 269,594.24 23,694.24 109.64 % 620300.00 620,300.00 52,588.84 527,149.24 -93,150.76 84.98 % 0.00 0.00 130.74 1,286.31 1,286.31 0.00 % 657700.00 657,700.00 17,052.00 427,519.69 -230,180.31 65.00 % 350000.00 350,000.00 12,288.00 198,656.00 -151,344.00 56.76 % 200000.00 200,000.00 5,652.00 99,914.05 -100,085.95 49.96 % 65000.00 65,000.00 2,064.00 33,368.00 -31,632.00 51.34 % 39700.00 39,700.00 774.00 13,014.02 -26,685.98 32.78 % 35000.00 35,000.00 696.00 20,297.83 -14,702.17 57.99 % 7000.00 7,000.00 240.00 3,881.62 -3,118.38 55.45 % 80000.00 80,000.00 2,598.00 45,939.36 -34,060.64 57.42 % 98500.00 98,500.00 3,144.13 40,205.86 -58,294.14 40.82 % 2100.00 2,100.00 0.00 175.64 -1,924.36 8.36 % 0.00 0.00 43,968.00 43,968.00 43,968.00 0.00 % 671000.00 671,000.00 0.00 675,509.14 4,509.14 100.67 % 13924218.00 38,372,234.17 1,015,767.01 5,928,366.60 -32,443,867.57 15.45 % 533000.00 533,000.00 43,440.00 475,585.87 -57,414.13 89.23 % 758400.00 758,400.00 43,583.00 439,300.33 -319,099.67 57.92 % 548300.00 548,300.00 45,608.00 468,534.42 -79,765.58 85.45 % 608000.00 608,000.00 67,475.01 674,750.10 66,750.10 110.98 % 3942500.00 3,942,500.00 442,015.15 3,249,308.23 -693,191.77 82.42 % 68500.00 68,500.00 0.00 1,883.46 -66,616.54 2.75 % Report Total: 68,305,718.00 93,899,220.17 4,782,227.62 49,055,234.98 -44,843,985.19 52.24 % 37 Fund City of La Quinta, CA 101- GENERAL FUND 201- GAS TAX FUND 202 - LIBRARY FUND 210- FEDERAL ASSISTANCE FUND 215 - LIGHTING & LANDSCAPING FUND 218 - CV VIOLENT CRIME TASK FORCE 220 - QUIMBY FUND 221- AB 939 223 - MEASURE A 231- SUCCESSOR AGCY PA 1 RORF 235 - SO COAST AIR QUALITY FUND 237 - SUCCESSOR AGCY PA 1 ADMIN 241- HOUSING AUTHORITY 242 - HOUSING AUTHORITY PA2 248 - SA 2004 LO/MOD BOND FUND 250 -TRANSPORTATION DIF FUND 252 - CIVIC CENTER DIF FUND 253 - LIBRARY DEVELOPMENT DIF 255 -STREET FACILITY DIF FUND 256- PARK FACILITY DIF FUND 257 - FIRE PROTECTION DIF 270 - ART IN PUBLIC PLACES FUND 310 - LQ FIN AUTHORITY DEBT SVC 401- CAPITAL IMPROVEMENT PROGRAMS 405 - SA PA 1 CAPITAL IMPRV FUND 501- EQUIPMENT REPLACEMENT 502 - INFORMATION TECHNOLOGY 503 - PARK EQUIP & FACILITY FND 504- INSURANCE FUND 601- SILVERROCK RESORT EXPENDITURE SUMMARY REPORT ALL FUNDS APRIL 2016 For Fiscal: 2015/16 Period Ending: 04/30/2016 Variance Original Current Period Fiscal Favorable Percent Total Budget Total Budget Activity Activity (Unfavorable) Used 42061500.00 44,084,190.27 3,678,154.16 24,478,039.32 19,606,150.95 55.53 % 1286200.00 1,323,100.00 105,932.76 1,055,509.24 267,590.76 79.78 % 1761400.00 2,697,659.37 78,573.07 1,642,167.97 1,055,491.40 60.87 % 0.00 422,706.00 0.00 0.00 422,706.00 0.00 % 1452800.00 1,452,800.00 111,843.62 1,005,864.61 446,935.39 69.24 % 55650.00 46,634.00 2,365.41 25,499.68 21,134.32 54.68 % 3620000.00 4,408,248.14 422,418.12 557,847.62 3,850,400.52 12.65 % 61500.00 61,500.00 0.00 18,875.35 42,624.65 30.69 % 1105500.00 1,228,640.55 120,180.76 573,105.11 655,535.44 46.65 % 0.00 0.00 0.00 11,164,756.51 -11,164,756.51 0.00 % 0.00 0.00 6,755.63 21,823.31 -21,823.31 0.00 % 0.00 0.00 10,654.50 56,529.00 -56,529.00 0.00 % 384000.00 384,000.00 24,258.45 337,981.35 46,018.65 88.02 % 621000.00 621,000.00 45,506.52 436,767.27 184,232.73 70.33 % 0.00 27,996,401.00 152,087.70 222,783.64 27,773,617.36 0.80 % 1731400.00 3,111,776.26 7,140.00 529,953.46 2,581,822.80 17.03 % 0.00 0.00 0.00 47,312.58 -47,312.58 0.00 % 0.00 0.00 0.00 9,393.26 -9,393.26 0.00 % 0.00 0.00 0.00 12,749.89 -12,749.89 0.00 % 0.00 0.00 0.00 3,643.25 -3,643.25 0.00 % 0.00 0.00 0.00 4,166.73 -4,166.73 0.00 % 129000.00 329,000.00 2,189.00 110,781.00 218,219.00 33.67 % 678076.00 678,076.00 51,337.50 675,509.25 2,566.75 99.62 % 190400.00 37,740,801.10 276,655.66 5,176,271.34 32,564,529.76 13.72 % 0.00 5,733,021.40 0.00 0.00 5,733,021.40 0.00 % 705700.00 898,065.00 12,175.39 539,803.19 358,261.81 60.11 % 637600.00 753,600.00 35,106.99 437,919.21 315,680.79 58.11 % 704500.00 704,500.00 0.00 40,129.61 664,370.39 5.70 % 608000.00 817,000.00 0.00 672,258.20 144,741.80 82.28 % 4375100.00 4,375,100.00 324,717.18 3,380,148.86 994,951.14 77.26 % Report Total: 62,169,326.00 139,867,819.09 5,468,052.42 53,237,589.81 86,630,229.28 38.06 % 38 CONSENT CALENDAR 1 TEM NO. Qty of La Quinta aTYcou a L MEETI NG: June 7,2016 STAFF REPORT AGENDA TI TLE RECEIVE AND FI LE THI RD QUARTER FI SCAL YEAR 2015/16 TREASURY REPORTS FOR THE PERI OD OF JANUARY 1, 2016 THROUGH MARCH 31, 2016 RECOM M EN DATI ON Receive and file the Third Quarter Fiscal Year 2015/16 Treasury Reports for the period of January 1, 2016 through March 31, 2016 EXECUTI VE SUMMARY The Treasurer's Reports (Attachments 1, 2, and 3), submitted quarterly to the Investment Advisory Board and Qty Council for review, summarize all cash and investments of the Oty, Successor Agency, Housing Authority, and Financing Authority. There is sufficient investment liquidity and anticipated revenues available to meet estimated expenditures. FISCAL IMPACT- None. BACKGROUND/ ANALYSI S For the 2015/16 third quarter (January 1, 2016 through March 31, 2016) the City's total portfolio increased by $9.5 million from $109.8 million to $119.3 million. Typically, during months of January and June each year, receipts are higher than disbursements due to Redevelopment Property Tax Trust Fund (RPTTF) disbursements for obligations of the Successor Agency to the former La Quinta Redevelopment Agency. Larger Receipts by Month: January $7.7 million RPTTFdisbursement $1.2 RPTTF residual property tax payment $3.6 million property tax payment February $2.03 million property tax in lieu of vehicle license fee $604,200 sales tax $640,669 SlverRock revenue 39 March $835,625 Library Fund property tax $793,433 sales tax $637,944 SilverRock revenue payment Larger disbursements by month (not including monthly payroll costs): January $383,719 to LandMark for contract golf management at SilverRock $396,148 to Granite Construction for slurry seal -pavement management $92,537 to Coachella Valley Association of Governments (Jefferson/I 10)) February March $1.56 million to Burrtec for refuse payments collected on property tax rolls $314,568 to LandMark for contract golf management at SilverRock $5 million to US Bank for Successor Agency debt service $271,465 to LandMark Golf for contract management services at SilverRock $1.9 million to the Riverside County Sheriff's Department for contract law enforcement services from 10/15/15 to 12/09/15 $140,226 to Bang Inc. for playground equipment (Community Development Block Grant funds) Investment Activity January $14 million in excess cash from the Successor Agency was transferred to Local Agency Investment Fund (LAI F) Bank fees in January were $998 and the sweep account earned $39 in interest income Average investment maturity in January was 351 days as compared to 419 days in December February $4 million was transferred from LAIF to the City's checking to cover pending debt service payments 3 new CD's of $240,000 each were purchased to replace 3 matured CD's Bank fees for the month of February were $852 and the sweep account earned $35 in interest income Average investment maturity in February was 358 days as compared to 351 days in January 40 March $5.5 million was paid by US Bank to bondholders for debt service A $5 million Federal Home Loan Mortgage Corp (FHLMC) investment was called (was reinvested in April) Bank fees were $907 in December and the sweep account earned $7 in interest income $1 million was transferred from LAI Fto the Qty to cover operating expenses Portfolio Performance January - Overall portfolio performance in January of .81% was slightly lower than .92% performance in December. At January 31th last year the portfolio yielded .49%. February- Overall portfolio performance in February was similar to January at .90%. In February of last year the portfolio yielded .51 %. March - Overall portfolio performance in March of .88% was slightly lower than February's yield of .90%. In March of last year the portfolio yielded .52%. Other Notes The "Permissible Deposits and Investments" report show the City to be over the allowable percentage of funds to be invested in mutual funds. However, these funds are bond proceeds with the fiscal agent and are subject to the bond indentures, not the City's investment policy. Additionally, Successor Agency (SA) funds cannot be invested in long-term investments. Therefore, SA funds are only invested in LAI F. Looking Ahead The Treasurer follows a "buy and hold" investment policy. In the short term, the Treasurer will invest in negotiable certificates of deposits, GSE securities, U.S. Treasurer and LAI F as needed. ALTERNATI VES - None. Prepared by: Rita Conrad, Finance Director Approved by: Frank J. Spevacek, Qty Manager Attachments: 1. Treasurer's Report January 31, 2016 2. Treasurer's Report February 29, 2016 3. Treasurer's Report March 31, 2016 41 42 ATTACHMENT 1 Tat" 4atlitriii TO: La Quinta City Council FROM: Rita Conrad, Finance Director/Treasurer SUBJECT: Treasurer's Report for January 31, 2016 DATE: March 24, 2016 Attached is the Treasurer's Report for the month endingJanuary 31, 2016. The report is submitted to the City Council each month after a reconciliation of accounts is accomplished by the Finance Department. The following table summarizes the changes in investment types for the month: Investment Balance 12/31/15 Purchased Notes Sold/Matured Ending Change LAIF 17,376,525 $ 14,014,323 $ 31,390,848 14,014,323 Interest bearing active bank deposit - - - Certificates of Deposit 10,933,151 10,933,151 0 US Treasuries 19,916,150 19,916,150 0 US Gov't Sponsored Enterprises 28,022,920 28,022,920 0 'Commercial Paper - - - Corporate Notes - - Mutual Funds i 31,275,338 159 31,275,497 159 Subtotal $ 107,524,084 $ 14,014,482 $ $ 121,538,566 $ 14,014,482 Cash $ 2,292,938 (1) & (2) $ (257,690) $ 2,035,248 $ (257,690) Total $ 109,817,022 $ 14,014,482 1 $ (257,690)] $ 123,573,814 1 $ 13,756,792 I certify that this report accurately reflects all pooled investments and is in compliance with the California Government Code; and is in conformity with the City Investment Policy. As Treasurer of the City of La Quinta, I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the pools expenditure requirements for the next six months. The City of La Quinta used the Bureau of the Public Debt, U.S. Bank Monthly Statement and the Bank of New York Monthly Custodian Report to determine the fair market value of investments at month end. Rita Conrad Finance Director/Treasurer Footnote (1) The amount reported represents the net increase (decrease) of deposits and withdrawals from the previous month. 5: .4— tee Date (2) The cash account may reflect a negative balance. This negative balance will be offset with transfers from other investments before warrants are presented for payment by the payee at the bank. 78-495 Calle Tampico 1 La Quinta 1 California 92253 1 760.777.7000 1 www.La-Quinta.or8 43 ECONOMY AT A GLANCE Riverside -San Bernardino -Ontario, CA Riverside -San Bernardino -Ontario, CA Data Series Labor Force Data Civilian Labor Force W Employment Ll Unemployment al Unemployment Rate Lei Nonfarm Wane and Salary Emvloyn'�ent Total Nonfarm 131 12 -month % change Mining and Logging ice: 12 -month % change Construction [3 12 -month % change Manufacturing [ 12 -month % change Trade, Transportation, and Utilities al 12 -month % change Information L 12 -month % change Financial Activities al 12 -month % change Professional and Business Services 1}1 12 -month Glu change Education and Health Services 3.2 12 -month % change Leisure and Hospitality L31 12 -month % change Other Services L: 12 -month % change Government L1 12 -month % change Consumer Price Index: Los Angeles -Riverside -Orange County, CA CPI -U, All items 111 CPI -U, All items, 12 -month % change U) CPI -W, All items131 CPI -W, All items, 12 -month % change ill Back Oct Nov Dec Jan Feb Mar Data 2015 2015 2015 2016 2036 2016 1,966.121 1,977.9 3-L 1,985.4 1,973.1 = 1,975.5 .L.1,842.8 '" 1,855.7 ' ' 1,868.4 1,8513.6 ',LI 11,851.7 a 125.4 122.1 4: 21 117.0 114.5 113.8, I: r 6.4 IL 6.2 2 5.9 5.8 5.8, I1 1.369.6 1,384.9 1,389.9 1,368 7 1,369.6;2! 1.377.7 4.3 3.3 3.4 3.5 3.4213.4. 1.3 1.3 1,2 1.2 1.2' ,11..2 (i.0 0.0 7.7 -7.7 -7.7 ; r'-' -14.3 91.2 88.2 87.2 87.2 87.3 37.9 13.4 9.8 107 10.8 8.7 2.8.0 95.3 95.5 96.4_ 96.5 97.7 97.7 3.9 3.4 3.0 2.9 3.5 21 3.0 338.4 351.4 354.9 339" 3 336.2'1' 338.1 5.2 4,8 4.7 4.4 4.2. ,L 4.6 11.2 11.2 11.3 11.3 11.=4�1; 11.4 0.9 0.0 0.19 0.01 0.9 21 0.9 43.8 43.8 43.2 413 43.0 2. 43.5 3.1 2.6 0.9 1.4 0.2; -1.1 4 145.9 146.0 145.8 143.8 1.43.6 2-4144.5 0.8 -3.9 -4.9 -1.4 0.2' '" 1.4 209.8 209.0 209.0 207.1 208.3 `?�' 210.0 5.8 4.9 4.7 3.3 _ 3.0 .213.7 150.9 153.9 155.2 154.4 155.8 1 155.1 4.1 4.1 5.0 3.8 3.8: IL 1.9 43.5 44.2 44.5 44.5 44.5 '2144.8 1.9 2.8 4.2 4.2 2.8 212.5 237.3 239.4 240.1 240.1 240.61 11' 243.5 2.2 2.3 3.0 3.3 3.11 213.1 3.1 L] 245.312 245.711 245.357 247.155 247.113 247.873 1,0 1.6 2.0 3.1 2.4 1.7 L 237 472 237.190 236.787 238.609 238.262 239.146 0.7 1.4 1.9 3.3 2.3 1.3 F: tr, tT_s (1) NurnhisT f p2rs:ri , in thousands, not s?c5Un_i",LI-5t? . (2) In " .Lens, not .--_.)1', 11`" adjLI5t'a. Nurnba!' in thousands, not sEiasonafiv ac ust . S At ut :l'1 .het. (!) ;,[j I llx.an Con=uni&i's, base: 1982-84=10.0, not s Dnell}' dju11t d. ('51 llrban 'Naos, Eat"ri '45 . nd 1962-34=10O, nit (Ra,*sed (1 FTelirnin=r,` 44 CITY OF LA QUINTA PERMISSIBLE DEPOSITS AND INVESTMENTS January 31, 2016 The City Treasurer will be permitted to invest in the following types of investments subject to the maximum percentage compliance limits and bid process requirements: All maturities must be less than the maximum allowed. Type of Investments Checking/Savings and other time accounts Certificate of Deposits U.S. Treasury Bills, Strips, Notes and Bonds. U.S. Government Sponsored Enterprises and Federal Government Securities ( except any collateralized mortgage obligation (CMO) or structured note which contains embedded rate options): - Government National Mortgage Association (GNMA) - Federal Farm Credit (FFCB) - Federal Home Loan Bank Notes & Bonds (FHLB) - Federal National Mortgage Association (FNMA) - Federal Home Loan Mortgage Corporation (FHLMC) Prime Commercial Paper Medium Term Corporate Notes - TLGP Local Agency Investment Fund (LAIF) Local Agency Bonds/CA Local Agency Bond Obligations Professionally Managed Account Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolio consists only of US Agency Securities maintaining a par value per share of $1. Investment Agreements for bond proceeds and/or reserve funds. Total Annualized Earnings of Pooled Cash Investments Annualized Eamings of Fiscal Agent Investments Annualized Earnings of All Investments All Funds Maximum All Funds Actual % All Funds Over (Under) 85.00% 1 1.77% 1 -83.23% 60.00% 1 9.63% -50.37% 100.00% 17.54% -82.46% 30.00% 15.88% -14.12% 30,000,000 25,000,000 20,000,000 20,000,000 $ - - - 18,000,000 10,000,000 (30,000,000) (25,000,000) (2,000,000) (10,000,000) 95,000,000 $ 28,000,000 (67,000,000) 15.00% 0.00% -15.00% 5,000,000 5,000,000 - (5,000,000) (5,000,000) 20.00% - -20.00% 10,000,000 - (10,000,000) 10,000,000 - (10,000,000) 30.00% 27.64% -2.36% 10.00% 0.00% -10.00% 10.00% 0.00% -10.00% 20.00% 27.54% 7.54% Surplus Maximum Surplus % Surplus Over (Under) 85.00% 1 0.98% 1 -84.02% 60.00% 1 9.71% 1 -50.29% 100.00% 17.68% -82.32% 30.00% 16.01% -13.99% Restrictions Maximum Maturity Credit Quality Exceptions <=$250,000 per institution 1 3 years FDIC Insured I None <=$250,000 per institution 1 5 years FDIC Insured None Except no more than $8 million may be invested over 2 years 10 years None Restricted to per -issuer limits below: 3 years None 30,000,000 25,000,000 20, 000, 000 18, 000, 000 20, 000, 000 10, 000, 000 95,000,000 $28,000,000 (30,000,000) (25,000,000) (2,000,000) 10,000,000) $ ;67,000,000) 15.00% 0.00% -15.00% $30.0 million $25.0 million $20.0 million $20.0 million $95.0 million 15% 90 days Standard & Poors/Moody's None 10.00% 0.00% -10.00% 30.00% 27.86% -2.14% 10.00% 0.00% -10.00% A-1, P-1 $10,000,000 per Issuer 3 years at least Standard & Poors "AA" None $50,000,000 per account Utilize DVP 3 years Unrated None $30,000,000 per account 10 years 10.00% 0.00% -10.00% 3 years N/A 0.00% N/A 1 100.00% 1 0.805% 0.020% 0.575% 20% 27.76% 7.76% N/A 0.00% N/A 100.00% Maintain $1 per share par value. Utilize DVP 60 days AAA by two of three rating agencies or assets of $500 million and investor SEC licensed > 5 yrs None None 45 City of La Ouinta Summary of Holdings City, Redevelopment Agency and Financing Authority January 31, 2016 City Cash & Investments Bank Accounts Name -Availability Surplus Type Interest Rate Book Value Unrealized Gain (Loss) Fair Value Bank Wells Fargo -Demand Yes Checking 0.00% $ 910,824 N/A $ 910,824 $ 1,401,862 Petty Cash - Demand No N/A N/A 1,700 N/A 1,700 1,700 First Empire Securities Yes Savings Acct CD Interest Earnings N/A 20,330 N/A 20,330 - Washington St. Apts. - Demand Yes Operating N/A 122,375 N/A 122,375 124,717 Washington St. Apts. - Demand Yes Taxes & Insurance Acct 0.00% 19,603 N/A 19,603 19,603 Washington St. Apts. - Demand Yes Security Deposit 0.05% 27,572 N/A 27,572 28,572 Washington St. Apts. - Demand Yes Savings 0.05% 201,034 N/A 201,034 201,034 Washington St. Apts. - Demand Yes Money Market 0.25% - N/A - - Washington St. Apts. - Demand Yes Replacement Reserve CD 0.10% 657,184 N/A 657,184 657,136 Washington St. Apts. Petty Cash - Demand Yes N/A 0.00% 200 N/A 200 200 Wells Fargo/Housing - Demand Yes Checking 0.00% 74,426 N/A 74,426 85,898 Total - Bank Accounts 2,174 920 08/08/13 $ 2,035,248 08/08/18 $ 2,035,248 $ 2,520,721 U. S. Government Sponsored Enterprises Custodian -Availability Surplus Issuer/Type Discount/ Rate Fair Value a106/30/15 or oarrent year addition Unrealized Gain (Loss) Fair Value Accrued Interest Days to Maturity Settlement Date First Call Date Maturity Date Original Days to Maturity Yield to Maturity Market Value Source Bank of New York - Demand Yes FNMA 0.750% $ 13,165,492 $ (31,931) $ 13,133,561 37,230 408 06/17/13 03/14/14 03/14/17 1366 0.750% Bank of New York Bank of New York -Demand Yes FNMA 0.750% 4,869,428 (11,809) 4,857,619 13,770 408 05/30/13 03/14/14 03/14/17 1384 0.750% Bank of New York First Empire Securities -Demand Yes FHLMC 1.400% 4,998,000 8,600 5,006,600 25,083 1,146 06/22/15 03/22/16 03/22/19 1369 1.400% First Empire Securites First Empire Securities - Demand Yes FHLMC 1.750% 4,990,000 63,850 5,053,850 7 778 1,611 06/29/15 06/29/17 06/29/20 1827 1.750% First Empire Securites Total - U.S. Government Securities Yes First National Bank CD 0.500% $ 28,022,920 $ 28,710 $ 28,051,630 $ 83,861 12 02/13/13 N/A 02/12/16 1094 0.500% First National Bank U. S. Treasury Notes Custodian -Availability Surplus Issuer/Type Discount/ Rateor Fair Value at06/30/15 rrent year addition Unrealized Gain (Loss) Fair Value Accrued Interest Days to Maturity Settlement Date First Call Date Maturity Date Original Days to Maturity Yield to Maturity Market Value Source First Empire Securities - Demand Yes T -Note 1.431% $nu 4,890,650 $ 75,950 $ 4,966,600 $ 8,470 1,399 06/03/15 N/A 11/30/19 1641 1.431% First Empire Securities First Empire Securities -Demand Yes T -Note 0.362% 5,008,000 (10,350) 4,997,650 8,402 243 07/31/15 N/A 09/30/16 427 0.362% First Empire Securities First Empire Securities - Demand Yes T -Note 0.487% 5,001,000 (8,400) 4,992,600 - 366 07/31/15 N/A 01/31/17 550 0.487% First Empire Securities First Empire Securities - Demand Yes T -Note 0.279% 5,016,500 (13,350) 5,003,150 1,373 166 07/31/15 N/A 07/15/16 350 0.279% First Empire Securities Total - U.S. Treasury Yes First National Bank CD 0.500% $ 19,916,150 $ 43,850 $ 19,960,000 $ 18,245 12 02/13/13 N/A 02/12/16 1094 0.500% First National Bank Certicates of Deposit Custodian -Availability Surplus Issuer/Type Yield Price Fair Value at 06/30/15 or current year addition Unrealized Gain (Loss) Fair Value Accrued Interest Days to Maturity Settlement Date First Call Date Maturity Date Original Days to Maturity Yield to Maturity Market Value Source G.E. Cap Bank CTF Dep Prgrm Yes G.E. Capital Bank CD 1.100% 238,992 348 239,340 347 683 12/14/12 N/A 12/14/17 1826 1.100% G.E. Capital Bank Goldman Sachs Yes Goldman Sachs CD 1.500% 239,230 302 239,532 325 688 12/14/12 N/A 12/19/17 1831 1.150% Goldman Sachs Ally Bank Yes Ally Bank CD 0.900% 240,845 (715) 240,130 425 (41) 12/14/12 N/A 12/21/15 1102 0.900% Ally Bank Discover Bank Yes Discover Bank CD 0.650% 240,382 (377) 240,005 7618 02/06/13 N/A 02/08/16 1097 0.650% Discover Bank First National Bank Yes First National Bank CD 0.500% 240,168 (168) 240,000 59 12 02/13/13 N/A 02/12/16 1094 0.500% First National Bank Amex Centurion Yes Amex Centurion Bank CD 1.000% 242,794 (303) 242,491 2,174 920 08/08/13 N/A 08/08/18 1826 1.900% Amex Centurion Bank CitiBank Yes Citibank CD 1.000% 242,832 (295) 242,537 2,124 926 08/14/13 N/A 08/14/18 1826 1.900% CitiBank CD Webster Bank Yes Webster Bank CD 1.800% 241,445 585 242,030 1,184 1,178 04/23/14 N/A 04/23/19 1826 1.800% Webster Bank BMW Bank Yes BMW Bank CD 1.900% 241,426 592 242,018 1,224 1,180 04/25/14 N/A 04/25/19 1826 1.900% BMW Bank Medallion Bank Yes Medallion Bank CD 1.350% 240,739 (974) 239,765 53 815 04/25/14 N/A 04/25/18 1461 1.350% Medallion Bank Barclays Bank Yes Barclays Bank CD 1.900% 241,390 609 241,999 1,174 1,184 04/29/14 N/A 04/29/19 1826 1.900% Barclays Bank Third Savings Bank & Loan Yes Third Savings Bank & Loan CD 1.250% 240,583 (821) 239,762 773 818 04/29/14 N/A 04/28/18 1460 1.250% Third Savings Bank & Loan Berkshire Bank Yes Berkshire Bank CD 1.350% 240,641 45 240,686 9 820 04/30/14 N/A 04/30/18 1461 1.350% Berkshire Bank Crescent Bank Yes Crescent Bank CD 1.300% 240,773 (1,303) 239,470 9 820 04/30/14 N/A 04/30/18 1461 1.300% Crescent Bank Cornerstone Commercial Bank Yes Cornerstone Commercial Bank CD 1.350% 240,641 (905) 239,736 9 820 04/30/14 N/A 04/30/18 1461 1.350% Cornerstone Commercial Bank First Merchants Bank Yes First Merchants Bank CD 1.500% 241,289 153 241,442 917 820 04/30/14 N/A 04/30/18 1461 1.500% First Merchants Bank Ephrata Bank Yes Ephrata Bank CD 1.650% 241,478 603 242,081 1,009 820 04/30/14 N/A 04/30/18 1461 1.650% Ephrata Bank Parkway Bank & Trust Yes Parkway Bank & Trust CD 0.450% 240,230 (304) 239,926 204 113 05/23/14 N/A 05/23/16 731 0.450% Parkway Bank & Trust Customers Bank Yes Customers Bank CD 1.000% 240,732 (408) 240,324 421 485 05/28/14 N/A 05/30/17 1098 1.000% Customers Bank Traverse City Yes Traverse City CD 1.100% 240,557 (58) 240,499 - 669 05/30/14 N/A 11/30/17 1280 1.100% Traverse City Merrick Bank Yes Merrick Bank CD 1.350% 240,648 48 240,696 195 829 05/09/14 N/A 05/09/18 1461 1.350% Merrick Bank Regal Bank Yes Regal Bank CD 1.400% 240,799 43 240,842 138 897 05/16/14 N/A 07/16/18 1522 1.400% Regal Bank Synchrony G.E. Cap Retail Bank CD (Draper) Yes Synchrony G.E. Capital Retail Bank 2.000% 241,274 632 241,906 1,170 1,187 05/02/14 N/A 05/02/19 1826 2.000% rony G.E. Cap Retail Bank CD (C First Business Bank Yes First Business Bank CD 1.750% 241,210 698 241,908 828 1,205 05/20/14 N/A 05/20/19 1826 1.750% First Business Bank Gulf Coast Bank Yes Gulf Coast Bank CD 1.750% 241,305 689 241,994 138 1,205 05/19/14 N/A 05/20/19 1827 1.750% Gulf Coast Bank Peapack -Goldstone Bank Yes Peapack -Goldstone Bank CD 1.800% 241,231 723 241,954 36 1,213 05/28/14 N/A 05/28/19 1826 1.800% Peapack -Goldstone Bank Washington Trust Yes Washington Trust CD 0.650% 240,667 (417) 240,250 227 344 06/09/14 N/A 01/09/17 945 0.650% Washington Trust TCF National Bank Yes TCF National Bank 0.700% 247,640 (84) 247,556 280 491 06/03/15 N/A 06/05/17 733 0.700% TCF National Bank Towne Bank Yes Towne Bank 0.900% 247,638 (84) 247,554 306 498 06/12/15 N/A 06/12/17 731 0.900% Towne Bank 1st National-Mayfied Yes 1st National-Mayfied 1.000% 247,167 302 247,469 136 680 06/11/15 N/A 12/11/17 914 1.000% 1st National-Mayfied Independent Bank Yes Independent Bank 0.900% 246,983 389 247,372 116 712 06/12/15 N/A 01/12/18 945 0.900% Independent Bank Embassy National Yes Embassy National 1.000% 246,661 456 247,117 95 775 06/17/15 N/A 03/16/18 1003 1.000% Embassy National Carolina Alliance Yes Carolina Alliance 1.000% 246,698 449 247,147 82 778 06/19/15 N/A 03/19/18 1004 1.000% Carolina Alliance South Atlantic Yes South Atlantic 1.000% 246,584 (593) 245,991 150 794 06/09/15 N/A 04/04/18 1030 1.000% South Atlantic Compass Bank Yes Compass Bank 1.350% 246,289 523 246,812 523 856 06/05/15 N/A 06/05/18 1096 1.350% Compass Bank MB Financial Bank Yes MB Financial Bank 1.100% 246,348 514 246,862 194 856 06/05/15 N/A 06/05/18 1096 1.100% MB Financial Bank Mfr Trade & Trust Yes Mfr Trade & Trust 1.200% 246,234 360 246,594 424 862 06/10/15 N/A 06/11/18 1097 1.200% Mfr Trade & Trust Morton Community Yes Morton Community 1.250% 246,001 814 246,815 161 1,046 06/12/15 N/A 12/12/18 1279 1.250% Morton Community Farmers & Merch Yes Fanners & Merch 1.250% 246,001 935 246,936 221 1,101 06/05/15 N/A 02/05/19 1341 1.250% Farmers & Merch Solomon State Yes Solomon State 1.400% 245,825 1,260 247,085 257 1,220 06/04/15 N/A 06/04/19 1461 1.400% Solomon State Connect One Yes Connect One 1.500% 245,817 1,260 247,077 265 1,221 06/05/15 N/A 06/05/19 1461 1.500% Connect One Riverwood Yes Riverwood 1.400% 245,565 1,483 247,048 247 1,313 06/05/15 N/A 09/05/19 1553 1.400% Riverwood EverBank Yes EverBank 1.700% 244,798 2,478 247,276 658 1,587 06/05/15 N/A 06/05/20 1827 1.700% EverBank Capital One Yes Capital One 1.900% 241,790 2,468 244,258 663 1,592 06/10/15 N/A 06/10/20 1827 1.900% Capital One Bank MidWest Yes Bank MidWest 1.650% 244,811 2,524 247,335 213 1,594 06/12/15 N/A 06/12/20 1827 1.650% Bank MidWest Total - Certificates of Deposit 2.128% $ 10,933,151 $ 14,476 $ 10,947,627 $ 20,924 raper) 46 City of La Quinta Summary of Holdings City, Redevelopment Agency and Financing Authority January 31, 2016 Local Agency Investment Fund Name -Availability Surplus Type Interest Rate Book Value Unrealizable Gain/(Loss) Fair Value Accrued Interest Days to Maturity Actual Management Fees Charged Statutory Mgmt Fees Allowed LAIF- City - Demand Yes State Pool 0.32% $ 31,390,848 $ - $ 31,390,848 $ - N/A 2.31%- Q/E 12/31/15 5.00% Total- State Pool N/A 1 .40% of Average Daily $ 31,390,848 $ - $ 31,390,848 $ - - - Total City Investments Total City Cash 8 Investments Fiscal Agent Investments $ 90,263,069 $ 87,036 $ 90,350,105 $ 123,030 $ 92,298,317 $ 87,036 $ 92,385,354 $ 123,030 Portfolio - Money Mrkt Mutual Funds Trustee - Availability Surplus Money Market Mutual Fund Interest Rate Book Value Unrealizable Gain/(Loss) Market Value Accrued Interest Days to Maturity Management Fees Civic Center U.S.Bank - Project Yes 1st American 0.020% $ - $ - $ - N/A 1 .40% of Average Daily Civic Center U.S.Bank - Debt Svc Yes 1st American 0.020% - - - N/A 1 1994 SA U.S. Bank -Debt Svc Yes 1st American 0.020% - - - N/A 1 1998 SA U.S. Bank -PA 2 Debt Svc Yes 1st American 0.020% - - - N/A 1 1998 SA U.S. Bank -PA 1Debt Svc Yes 1st American 0.020% - - - N/A 1 1996 FA Series Bond Yes 1st American 0.020% 1 - 1 N/A 1 2001 SA U.S. Bank -Debt Service Yes 1st American 0.020% - - - N/A 1 2004 Fin Auth Revenue Bonds Yes 1st American 0.020% - - - N/A 1 2004 Fin Auth Housing Project Yes 1st American 0.020% - - - N/A 1 2002 SA U.S. Bank -CIP Yes 1st American 0.020% - - - N/A 1 2002 SA U.S. Bank- Debt Svc Yes 1st American 0.020% - - - N/A 1 2011 PA 2 Tax Allocation Bond Yes 1st American 0.020% 2,420,287 - 2,420,287 N/A 1 2011 PA 2 Tax Allocation Bond Yes 1st American 0.020% 79 - 79 N/A 1 2011 Financing Authority Debt Service Yes 1st American 0.020% 82 - 82 N/A 1 2011 PA 2 Tax Allocation Bond Yes 1st American 0.020% 600,015 - 600,015 N/A 1 2011 Financing Authority Reserve Yes 1st American 0.020% 2,694,449 - 2,694,449 N/A 1 2011 PA 2 Taxable Revenue Bond Yes 1st American 0.020% 25,560,563 - 25,560,563 N/A 1 2011 SA 1 Debt Service Fund Yes 1st American 0.020% - - - N/A 1 2011 SA 2 Bond Proceeds Yes 1st American 0.020% - - - N/A 1 2013 Series A Refunding Bonds Yes 1st American 0.020% 6 - 6 N/A 1 2013 Series B Refunding Bonds Yes 1st American 0.020% 2 - 2 N/A 1 2014 Tax Allocation Refunding Bonds Yes 1st American 0.020% 13 - 13 N/A 1 Subtotal - Mutual Fund 31,275,497 $ - 31,275,497 $ - Total Fiscal Agent Investments Grand Total Average Maturity $ 31,275,497 - $ 31,275,4971 $ $ 123,573,814 1 $ 87,036 1 $ 123,660,851 1 $ 123,030 351 Days 0.28% 47 City of La Quinta Summary of Investment Activities City, Successor Agency and Financing Authority January 31, 2016 Investments Purchased Name Type Principal Date Yield to Maturity LAIF-CITY Checking & Savings - Net Change 8,000,000 Month Ending Balance 123,573,814 LAIF-CITY 6,000,000 LAIF-CITY Reinvested Interest Income -Quarterly 14,323 US Bank Mutual Fund Interest 159 Total Investments Purchased 14,014,482 Investments Sold/Matured Name Type Principal Date Yield to Maturity - Checking & Savings - Net Change (257,690) Month Ending Balance 123,573,814 Total Investments Sold/Matured - Checking & Savings - Net Change $ (257,690) Investment Change Prior Month Ending Balance $ 109,817,022 Plus : Investments Purchased 14,014,482 Less: Investments Sold - Checking & Savings - Net Change (257,690) Month Ending Balance 123,573,814 48 City of La Quinta Distribution of Cash & Investments & Balances January 31, 2016 Distribution of Cash &Investments City Totals General Fund 49,622.440 Gas Tax 81,808 Quimby Fund 5,592,109 AB 939 733,900 Infrastructure Fund 23,401 Developer Impact fees 3,847,795 Art in Public Places 667,244 Special Revenue 1,331,230 Interest Fund 33,333 Capital Project Fund 851,885 Equipment Replacement Fund 2,600,796 Information Technology Fund 697,722 Park Equipment & Facility 2,419,134 Landscape 8 Lighting Fund (168,780) SilverRock Resort (1,501,724) Trust & Agency Funds 276,747 Insurance Fund (128,106) Supplemental Pension Plan 139,261 Subtotal $ 67,122,195 0 Successor Agency Totals 0 Project Area Project Area 0 0 1 2 0 Capital Improvement Funds $ 6,578,843 $ 4,890,615 $ 11,469,458 Debt Service Funds 3,085 261 $ 3,346 Successor Agency 10.524,258 8 $ 10.524,266 Low & Moderate Income Funds 25,562,356 664 $ 25,563,020 Subtotal $ 42,668,542 $ 4,891,548 $ 47,560,090 28,022,920 Housing Authority 37,968,118 Low & Moderate Income Funds $ 2,551966 $ 6,341,994 $ 8,893,960 Subtotal 9 2,551,966 5 6,341,994 5 8,893,960 Prime Commercial Paper0 Financing Authority 0 Project Funds 0 Debt Service Funds (2,431) (2.431) Subtotal $ (2,431) 0 0 Total $ 123,573,814 Cash Balances Type July 15 August September October November December January 15 February March April May June Cash &Investments 12,827,791 1,629,972 3,401,315 1,230,978 2,393,282 2,292,938 2,035,248 1,200,865 1,836,675 4,787,495 10,975,972 0' State Pool 33,951,810 17,751,810 15,351,810 15,376,525 14,376,525 17,376,525 31,390,848 29,885,948 28,885,948 28,805,531 48,905,531 0 Interest bearing active bank deposit 0 0 0 0 0 0 0 0 0 0 0 0 U.S. Treasury Bills/Notes 19,916,150 19,916,150 19,916,150 19,916,150 19,916,150 19,916,150 19,916,150 0 0 0 0 0 U.S. Government Sponsored Enterprises 28,022,920 28,022,920 28,022,920 28,022,920 28,022,920 28,022,920 28,022,920 37,968,118 37,989,445 37,970,729 17,972,055 0 Prime Commercial Paper0 0 0 0 0 0 0 0 0 0 0 0 0 Corporate Notes 0 0 0 0 0 0 0 0 0 0 0 0 Certificates of Deposit 10,933,151 10,933,151 10,933,151 10,933,151 10,933,151 10,933,151 10,933,151 6,480,000 6,480,000 6,480,000 6,480,000 0 Mutual Funds 31,274,730 43,458,172 31,896,605 31,275,023 31,275,183 31,275,338 31,275,497 37,298,633 31,340,838 31,274,280 31,274,415 0 Total _$ 136,926 552 _4121.712,175 $ 109.521,951 $ 106.754,747 $ 106.917.191 $109.817,022 $ 123.573,814 $ 112,833,364 $ 106,512,906 $ - $ $ 128.990 447 Type July 14 August September October November December January 15 February March April May June Cash & Investments 7,148,056 2,012,131 3,135;406 1,490,701 2,497,575 4,025,819 4,805,279 1,200,865 1,836,675 4,787,495 10,975,972 4,945,233 State Pool 49,040,985 35,540,985 32,540,984 29,567,293 27,367,293 27,367,293 35,885,948 29,885,948 28,885,948 28,805,531 48,905,531 48,923,919 Interest beanng active bank deposit 0 0 0 0 0 0 0 0 0 0 0 0 U.S. Treasury Bills/Notes 0 0 0 0 0 0 0 0 0 0 0 4,890,650 U.S. Government Sponsored Enterprises 37,959,046 37,980,372 37,961,656 37,962,983 37,984,267 37,965,593 37,988,920 37,968,118 37,989,445 37,970,729 17,972,055 28,022,920 Prime Commercial Paper 0 0 0 0 0 0 0 0 0 0 0 0 Corporate Notes 0 0 0 0 0 0 0 0 0 0 0 0 Certificates of Deposit 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 10,933,151 Mutual Funds 31,302,066 42,911,857 31,879,618 31,273,469 31,273,629 31,273,784 31,273,944 37,298,633 31,340,838 31,274,280 31,274,415 31,274,574 Total _$ 131 930 153 _$ 124.905 145 $ 111 997 664 $ 106.774.446 $ 105 582.764 9107.112 489 $ 116,412.091 $ 112.833 364 $ 106 512.906 $ 109.418 015 $115 607.973 $ 128.990 447 Type July13 August September October November December January 14 February March April May June Cash & Investments 437,484 648,459 697,949 1,684,060 565,369 1,931,555 3,557,683 5,680,831 3,591,157 1,334,084 3,630,962 8,993,908 5t2te Pool 34,424,537 18,824,537 17,624,537 15,993,075 17,993,075 18,793,075 31,390,848 31,804,337 31,804,337 31,820,932 33,020,932 49,020,932 Interest bearing active bank deposit 39,962,564 39,964,504 39,986,844 0 0 0 0 0 0 0 0 0 US Treasury Bills/Notes 40,194,271 40,196,750 40,199,152 40,200,516 40,199,481 30,200,805 15,201,841 11,999,464 19,916,150 0 0 0 U S Government Sponsored Enterprises 42,943,428 42,944,752 42,946,034 42,947,363 39,948,647 39,949,973 39,951,300 39,952,498 39,953,825 39,955,109 39,956,435 37,957,719 Prime Commercial Paper0 11,998,605 0 0 0 0 0 0 0 0 0 0 0 Corporate Notes 0 0 0 0 0 0 0 0 0 0 0 0 Certificates of Deposit 1,440,000 1,680,000 1,680,000 10,933,151 1,680,000 1,680,000 10,933,151 1,680,000 1,680,000 4,080,000 6,240,000 6,480,000 Mutual Funds 3,215,116 15,671,311 3,436,048 2,846,265 2,559,799 12,559,821 18,645,070 25,098,875 33,928,993 33,847,806 33,847,974 33,870,741 Total _$ 162 617 398 _9159.930.313 $ 146 550.564 $ 114.604 430 $ 102 946.371 $105.115 229 $ 119 679.873 $ 116.216 005 $ 130 874.462 9111.037 931 $116 696.303 $ 136.323 300 Type July12 August September October November December January 13 February March April May June Cash & Investments (524,579) 787,300 347,529 (1,030,761) 10,988,854 (487,400) 1,706,699 555,859 214,521 42,118 706,238 72,776 State Pool 37,144,005 17,769,005 26,519,005 29,646,825 26,246,825 37,946,825 46,871,689 39,771,689 37,971,689 39,501,132 35,801,132 36,801,132 Interest bearing active bank deposit 39,975,735 39,941,367 39,955,737 39,972.429 39,987,007 39,898,494 39,909,510 39,919,093 39,928,379 39,938,373 39,947,649 39,955,556 U.S Treasury Bills/Notes 72,981,334 70,986,318 70,986,311 70,992,223 61,031,070 61,033,380 61,035,737 61,036,858 61.037,947 40,992,801 40,992,192 40,191,789 U.S Government Sponsored Enterprises 8,999,015 8,999,709 0 0 0 0 0 3600,000 3,000000 23,000,000 28,000,000 42,942,099 Prime Commercial Paper 11,998,605 4,999,025 4,999,721 0 0 0 0 0 0 0 0 0 Corporate Notes 0 0 0 0 0 0 0 0 0 0 0 0 Certdicates of Deposit 724,000 480,000 480,000 480,000 480,000 1,200,000 1,200,000 1,680,000 1,680,000 1,680,000 1,680,000 1,440,000 Mutual Funds 16,025,086 15,464,837 2,540,266 2,497,187 2,503,903 2,462,175 2,462,208 9,029,319 2,490,259 2,409,320 2,412,269 3,215,081 Total _$ 187 323 201 _$ 159 427 561 $ 145 828 569 $ 142 557 903 $ 141 237 659 5142.053,474 $ 153 185.843 $ 154.992 818 $ 146 322.795 5147.563 742 $149 539.480 $ 164.618 433 Type July11 August September October November December January 12 February March April May June Cash & Investments 281,578 0976,528 249,778 13,795,085 -1,090,198 979,796 1,057,919 6,838,073 -343,072 254,700 2,980,840 455,407' State Pool 21,378,745 17,978,745 17,278,745 15,200,984 26,650,984 39,150,985 39,975,653 31,975,653 36,675,653 35,510,862 39,910,862 38,010,862 Interest bearing active bank deposit 10,001,051 15,007,114 39,514,615 39,527,820 39,546,824 39,563,950 39,581,019 39,896,313 39,912,287 39,928,765 39,944,847 39,959,602 U S Treasury Bills/Notes 58942,159 58,947,722 72,949,195 60,955,235 60,962,430 43,967,696 43,970,933 58,371,968 56369,810 73,368,195 72,968,698 72,974,913 U 9 Government Sponsored Enterprises 19,994,459 19,997,371 14,995,325 14,996,096 14,996,842 14,997,613 23,997,920 23,998,996 23,996,161 8,998,956 8,997,650 8,998,321 Prime Commercial Paper 19,992,888 4,997,433 0 0 0 6,999,427 14,996,537 14,998,717 9,996,828 9,998,388 9,996,342 11,997,202 Corporate Notes 10,034,373 10,024,534 5,015,752 5,008,776 5,002,025 0 0 0 0 0 0 0 Certificates of Deposit 724,000 724,000 724,000 724,000 724,000 724,000 724,000 724,000 724,000 724,000 724,000 724,000 Mutual Funds 45,287,175 45,258,832 16,767,608 16,130,247 16,130,247 16,132,569 15,983,994 3,585,189 3,612,383 3,397,985 3,763,623 16,088,410 Total _$ 186 636428 _9182 912 279 $ 167 495 018 $ 166 338 243 $ 162 923.154 9162.516.036 $ 180 287.975 $ 180,388 909 $ 172 944.050 9172.179 851 5179286.862 $ 189.208.717 49 City of La Quinta Comparative Rates of Interest January 31, 2016 Year FY 10/11 City of La Quinta Commercial Paper Annualized Earnings Average Treasury Bills/Note Three Month Month Pooled Cash Fiscal Agent Overall Maturity (days) Three Month Six Month One Year Two Year Non -Financial LAIF Rate FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 July2010 0.50% 0.15% 0.47% 119 0.16% 0.20% 0.30% 0.63% 0.28% 0.53% Aug 2010 0.49% 0.15% 0.46% 108 0.15% 0.19% 0.26% 0.38% 0.25% 0.51% Sept2010 0.55% 0.15% 0.51% 107 0.16% 0.19% 0.27% 0.38% 0.24% 0.50% Oct2010 0.55% 0.15% 0.51% 88 0.13% 0.17% 0.23% 0.38% 0.23% 0.48% Nov 2010 0.53% 0.15% 0.49% 84 0.18% 0.21% 0.28% 0.50% 0.23% 0.45% Dec2010 0.57% 0.14% 0.52% 265 0.15% 0.19% 0.30% 0.63% 0.23% 0.46% Jan 2011 0.51% 0.14% 0.43% 206 0.16% 0.18% 0.28% 0.63% 0.24% 0.54% Feb 2011 0.55% 0.17% 0.46% 210 0.15% 0.17% 0.31% 0.63% 0.23% 0.51% Mar2011 0.54% 0.17% 0.45% 218 0.05% 0.13% 0.26% 0.75% 0.23% 0.50% Apr2011 0.59% 0.17% 0.48% 192 0.05% 0.10% 0.28% 0.63% 0.20% 0.59% May2011 0.48% 0.17% 0.41% 156 0.06% 0.12% 0.20% 0.50% 0.16% 0.41% June2011 0.53% 0.00% 0.35% 126 0.03% 0.10% 0.20% 0.38% 0.15% 0.45% July2011 0.53% 0.00% 0.35% 112 0.07% 0.12% 0.15% 0.20% 0.14% 0.38% Aug2011 0.60% 0.00% 0.38% 102 0.02% 0.05% 0.10% 0.13% 0.16% 0.41% Sept2011 0.58% 0.03% 0.39% 124 0.02% 0.06% 0.09% 0.13% 0.14% 0.38% Oct2011 0.53% 0.03% 0.35% 117 0.01% 0.06% 0.12% 0.25% 0.15% 0.39% Nov2011 0.52% 0.03% 0.37% 94 0.03% 0.07% 0.10% 0.25% 0.14% 0.40% Dec2011 0.48% 0.03% 0.35% 86 0.02% 0.06% 0.11% 0.13% 0.14% 0.39% Jan 2012 0.45% 0.03% 0.34% 74 0.05% 0.08% 0.11% 0.25% 0.14% 0.39% Feb 2012 0.49% 0.05% 0.36% 72 0.12% 0.15% 0.17% 0.25% 0.17% 0.39% Mar2012 0.44% 0.05% 0.34% 74 0.08% 0.14% 0.19% 0.25% 0.18% 0.38% Apr2012 0.44% 0.09% 0.35% 61 0.10% 0.15% 0.19% 0.25% 0.20% 0.37% May2012 0.43% 0.09% 0.34% 62 0.09% 0.14% 0.19% 0.25% 0.19% 0.36% June2012 0.38% 0.08% 0.29% 47 0.10% 0.15% 0.21% 0.25% 0.21% 0.36% July2012 0.41% 0.08% 0.31% 112 0.11% 0.15% 0.18% 0.22% 0.22% 0.36% Aug2012 0.41% 0.08% 0.29% 31 0.11% 0.14% 0.20% 0.25% 0.20% 0.38% Sept2012 0.43% 0.09% 0.33% 34 0.11% 0.14% 0.18% 0.25% 0.20% 0.35% Oct2012 0.47% 0.10% 0.36% 22 0.13% 0.16% 0.18% 0.25% 0.19% 0.34% Nov 2012 0.48% 0.10% 0.36% 161 0.10% 0.15% 0.18% 0.25% 0.20% 0.32% Dec2012 0.47% 0.10% 0.36% 137 0.08% 0.12% 0.16% 0.13% 0.20% 0.33% Jan 2013 0.44% 0.10% 0.34% 111 0.08% 0.11% 0.14% 0.25% 0.16% 0.30% Feb 2013 0.37% 0.10% 0.29% 105 0.13% 0.14% 0.15% 0.25% 0.17% 0.29% Mar2013 0.39% 0.09% 0.30% 123 0.08% 0.11% 0.15% 0.25% 0.15% 0.29% Apr2013 0.31% 0.08% 0.25% 186 0.05% 0.08% 0.14% 0.13% 0.12% 0.26% May2013 0.30% 0.06% 0.23% 175 0.05% 0.08% 0.14% 0.25% 0.10% 0.25% June 2013 0.30% 0.07% 0.23% 212 0.05% 0.09% 0.16% 0.38% 0.10% 0.24% July2013 0.28% 0.07% 0.21% 336 0.03% 0.07% 0.12% 0.25% 0.11% 0.27% Aug 2013 0.28% 0.06% 0.21% 303 0.03% 0.06% 0.07% 0.14% 0.09% 0.27% Sept2013 0.30% 0.07% 0.23% 321 0.01% 0.04% 0.01% 0.25% 0.08% 0.26% Oct2013 0.48% 0.06% 0.31% 427 0.05% 0.08% 0.16% 0.25% 0.11% 0.27% Nov 2013 0.49% 0.06% 0.31% 444 0.05% 0.08% 0.16% 0.25% 0.09% 0.26% Dec2013 0.49% 0.05% 0.31% 396 0.07% 0.09% 0.14% 0.25% 0.09% 0.26% Jan 2014 0.44% 0.05% 0.32% 381 0.04% 0.06% 0.13% 0.38% 0.09% 0.24% Feb 2014 0.44% 0.03% 0.30% 357 0.05% 0.08% 0.12% 0.25% 0.10% 0.24% Mar2014 0.44% 0.02% 0.30% 352 0.05% 0.07% 0.12% 0.38% 0.10% 0.24% Apr2014 0.47% 0.02% 0.33% 368 0.02% 0.05% 0.11% 0.45% 0.10% 0.23% May2014 0.49% 0.02% 0.35% 373 0.04% 0.06% 0.10% 0.39% 0.10% 0.23% June2014 0.44% 0.02% 0.33% 310 0.04% 0.07% 0.11% 0.50% 0.10% 0.23% July2014 0.45% 0.02% 0.34% 305 0.03% 0.06% 0.11% 0.50% 0.10% 0.24% Aug 2014 0.49% 0.02% 0.36% 313 0.03% 0.05% 0.11% 0.50% 0.11% 0.26% Sept2014 0.51% 0.02% 0.36% 325 0.02% 0.04% 0.12% 0.50% 0.10% 0.25% Oct 2014 0.50% 0.02% 0.36% 323 0.02% 0.06% 0.10% 0.38% 0.10% 0.26% Nov2014 0.52% 0.02% 0.37% 317 0.03% 0.08% 0.14% 0.50% 0.10% 0.26% Dec2014 0.52% 0.02% 0.37% 304 0.02% 0.07% 0.18% 0.50% 0.13% 0.27% Jan 2015 0.49% 0.02% 0.36% 268 0.02% 0.07% 0.21% 0.50% 0.12% 0.26% Feb 2015 0.51% 0.02% 0.36% 269 0.02% 0.08% 0.21% 0.50% 0.12% 0.27% Mar2015 0.52% 0.02% 0.37% 261 0.04% 0.14% 0.27% 0.50% 0.11% 0.28% Apr2015 0.52% 0.02% 0.37% 248 0.02% 0.07% 0.25% 0.50% 0.10% 0.28% May2015 0.50% 0.02% 0.35% 388 0.01% 0.07% 0.26% 0.63% 0.12% 0.29% June 2015 0.70% 0.02% 0.53% 378 0.02% 0.09% 0.30% 0.63% 0.14% 0.30% July2015 0.79% 0.02% 0.57% 417 0.08% 0.17% 0.34% 0.63% 0.13% 0.32% Aug 2015 0.91% 0.02% 0.60% 467 0.10% 0.28% 0.42% 0.63% 0.18% 0.33% Sept2015 0.94% 0.02% 0.62% 470 0.02% 0.11% 0.45% 0.63% 0.22% 0.34% Oct2015 0.94% 0.02% 0.62% 458 0.11% 0.29% 0.21% 0.63% 0.18% 0.36% Nov2015 0.95% 0.02% 0.62% 448 0.22% 0.42% 0.51% 0.88% 0.20% 0.37% Dec2015 0.92% 0.02% 0.61% 419 0.22% 0.51% 0.69% 0.88% 0.36% 0.40% Jan 2016 0.81% 0.02% 0.57% 351 0.36% 0.47% 0.69% 0.75% 0.47% 0.45% 50 City of La Quinta Chart of Interest Rates August 2015 through January 2016 1.00%- 0.90% - 0.80% - 0.70% - 0.60% - 0.50% - 0.40% - 0.30% - 0.20% 0.10% - 0.00% • T • Aug'15 Sep'15 Oct'15 Months Nov'15 Dec'15 Jan'16 — • — Annualized Earnings of Pooled Cash Investments A r d E ' g f F cal Agent Investments ■ Annualized Earnings of All Investments Six Month Treasury Bill Rate —at— Two Year Treasury Note Rate 51 52 ATTACHMENT 2 Tay/4 44thdad TO: La Quinta City Council FROM: Rita Conrad, Finance Director/Treasurer SUBJECT: Treasurer's Report for February 29, 2016 DATE: March 25, 2016 Attached is the Treasurer's Report for the month ending February 29, 2016. The report is submitted lo the City Council each month after a reconciliation of accounts is accomplished by the Finance Deprriment. The following table summarizes the changes in investment types for the month: Investment Balance 01/31/16 Purchased Notes Sold/Matured Ending Change LAIF 31,390,848 $ (4,000,000) $ 27,390,848 (4,000,000) Interest bearing active bank deposit - - Certificates of Deposit 10,933,151 720,000 (721,395) 10,931,756 (1,395) US Treasuries 19,916,150 19,916,150 0 US Gov't Sponsored Enterprises 28,022,920 28,022,920 0 Commercial Paper - - - Corporate Notes - - - Mutual Funds 31,275,497 5,493,422 36,768,919 5,493,422 Subtotal $ 121.538,566 $ 6.213,422 $ (4,721,395) $ 123,030,593 $ 1,492,027 Cash $ 2,035.248 (1) & (211 $ 29,700 $ 2,064,948 $ 29,700 Total 1 $ 123.573.814 f $ 6.213.422 1 1 $ (4.691.695)1 $ 125,095,541 1 $ 1,521,727 I certify that this report accurately reflects all pooled investments and is in compliance with the California Government Code; and is in conformity with the City Investment Policy. As Treasurer of the City of La Quinta, I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the pools expenditure requirements for the next six months. The City of La Quinta used the Bureau of the Public Debt, U.S. Bank Monthly Statement and the Bank of New York Monthly Custodian Report to determine the fair market value of investments at month end. Rita Conrad Finance DirectorfTreasurer Footnote (1) The amount reported represents the net increase (decrease) of deposits and withdrawals from the previous month. Date (2) The cash account may reflect a negative balance. This negative balance will be offset with transfers from other investments before warrants are presented for payment by the payee at the bank. 78-495 Calle Tampico 1 La Quinta 1 California 92253 1 760.777.7000 1 www.La-Quinta.org 53 CITY OF LA QUINTA PERMISSIBLE DEPOSITS AND INVESTMENTS February 29, 2016 The City Treasurer will be permitted to invest in the following types of investments subject to the maximum percentage compliance limits and bid process requirements: All maturities must be less than the maximum allowed. Type of Investments Checking/Savings and other time accounts Certificate of Deposits U.S. Treasury Bills, Strips, Notes and Bonds. U.S. Government Sponsored Enterprises and Federal Government Securities ( except any collateralized mortgage obligation (CMO) or structured note which contains embedded rate options): - Government National Mortgage Association (GNMA) - Federal Farm Credit (FFCB) - Federal Home Loan Bank Notes & Bonds (FHLB) - Federal National Mortgage Association (FNMA) - Federal Home Loan Mortgage Corporation (FHLMC) Prime Commercial Paper Medium Term Corporate Notes - TLGP Local Agency Investment Fund (LAIF) Local Agency Bonds/CA Local Agency Bond Obligations Professionally Managed Account Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolio consists only of US Agency Securities maintaining a par value per share of $1. Investment Agreements for bond proceeds and/or reserve funds. Total Annualized Earnings of Pooled Cash Investments Annualized Eamings of Fiscal Agent Investments Annualized Earnings of All Investments All Funds Maximum All Funds Actual % All Funds Over (Under) 85.00% 1 1.82% 1 -83.18% 60.00% 1 9.86% -50.14% 100.00% 17.97% -82.03% 30.00% 16.27% -13.73% 30,000,000 25,000,000 20,000,000 20,000,000 $ - - - 18,000,000 10,000,000 (30,000,000) (25,000,000) (2,000,000) (10,000,000) 95,000,000 $ 28,000,000 (67,000,000) 15.00% 0.00% -15.00% 5,000,000 5,000,000 - (5,000,000) (5,000,000) 20.00% - -20.00% 10,000,000 - (10,000,000) 10,000,000 - (10,000,000) 30.00% 24.71% -5.29% 10.00% 0.00% -10.00% 10.00% 0.00% -10.00% 20.00% 29.37% 9.37% Surplus Maximum Surplus % Surplus Over (Under) 85.00% 1 1.01% 1 -83.99% 60.00% I 9.96% 1 -50.04% 100.00% 18.11% -81.89% 30.00% 16.40% -13.60% Restrictions Maximum Maturity Credit Quality Exceptions <=$250,000 per institution 1 3 years FDIC Insured I None <=$250,000 per institution 1 5 years FDIC Insured None Except no more than $8 million may be invested over 2 years 10 years None Restricted to per -issuer limits below: 3 years None 30,000,000 25,000,000 20, 000, 000 18, 000, 000 20, 000, 000 10, 000, 000 95,000,000 $28,000,000 (30,000,000) (25,000,000) (2,000,000) 10,000,000) $ ;67,000,000) 15.00% 0.00% -15.00% $30.0 million $25.0 million $20.0 million $20.0 million $95.0 million 15% 90 days Standard & Poors/Moody's None 10.00% 0.00% -10.00% 30.00% 24.91% -5.09% 10.00% 0.00% -10.00% A-1, P-1 $10,000,000 per Issuer 3 years at least Standard & Poors "AA" None $50,000,000 per account Utilize DVP 3 years Unrated None $30,000,000 per account 10 years 10.00% 0.00% -10.00% 3 years N/A 0.00% N/A 1 100.00% 1 0.898% 0.020% 0.624% 20% 29.61% 9.61% N/A 0.00% N/A 100.00% Maintain $1 per share par value. Utilize DVP 60 days AAA by two of three rating agencies or assets of $500 million and investor SEC licensed > 5 yrs None None 54 City of La Quinta Summary of Holdings City, Redevelopment Agency and Financing Authority February 29, 2016 City Cash & Investments Bank Accounts Name -Availability Surplus Type Interest Rate Book Value Unrealized Gain (Loss) Fair Value Bank Wells Fargo -Demand Yes Checking 0.00% $ 905,354 N/A $ 905,354 $ 1,230,810 Petty Cash - Demand No N/A N/A 1,700 N/A 1,700 1,700 First Empire Securities Yes Savings Acct CD Interest Earnings N/A 44,969 N/A 44,969 - Washington St. Apts. - Demand Yes Operating N/A 124,241 N/A 124,241 131,843 Washington St. Apts. - Demand Yes Taxes & Insurance Acct 0.00% 10,971 N/A 10,971 21,703 Washington St. Apts. - Demand Yes Security Deposit 0.05% 27,773 N/A 27,773 27,773 Washington St. Apts. - Demand Yes Savings 0.05% 201,042 N/A 201,042 201,042 Washington St. Apts. - Demand Yes Money Market 0.25% - N/A - - Washington St. Apts. - Demand Yes Replacement Reserve CD 0.35% 662,606 N/A 662,606 662,606 Washington St. Apts. Petty Cash - Demand Yes N/A 0.00% 200 N/A 200 200 Wells Fargo/Housing - Demand Yes Checking 0.00% 86,092 N/A 86,092 92,342 Total - Bank Accounts 1,587 1,151 04/25/14 $ 2,064,948 04/25/19 $ 2,064,948 $ 2,370,019 U. S. Government Sponsored Enterprises Custodian -Availability Surplus Issuer/Type Discount/ Rote Fair Value at 06/30/15 or o0rrent year addition Unrealized Gain (Loss) Fair Value Accrued Interest Days to Maturity Settlement Date First Call Date Maturity Date Original Days to Maturity Yield to Maturity Market Value Source Bank of New York -Demand Yes FNMA 0.750% $ 13,165,492 $ (25,361) $ 13,140,131 45,716 379 06/17/13 03/14/14 03/14/17 1366 0.750% Bank of New York Bank of New York - Demand Yes FNMA 0.750% 4,869,428 (9,379) 4,860,049 16,909 379 05/30/13 03/14/14 03/14/17 1384 0.750% Bank of New York First Empire Securities - Demand Yes FHLMC 1.400% 4,998,000 4,950 5,002,950 30,528 1,117 06/22/15 03/22/16 03/22/19 1369 1.400% First Empire Securites First Empire Securities -Demand Yes FHLMC 1.750% 4,990,000 64,200 5,054,200 14,583 1,582 06/29/15 06/29/17 06/29/20 1827 1.750% First Empire Securites Total - U.S. Government Securities Yes Webster Bank CD 1.800% $ 28,022,920 $ 34,410 $ 28,057,330 $ 107,736 1,149 04/23/14 N/A 04/23/19 1826 1.800%. Webster Bank U. S. Treasury Notes Custodian -Availability Surplus Issuer/Type Discount/ Rate Far Value at06/30/15 or current year addition Unrealized Gain (Loss) Fair Value Accrued Interest Days to Maturity. Settlement Date First Call Date Maturity Date Original Days to Maturity Yield to Maturity Market Value Source First Empire Securities - Demand Yes T -Note 1.431% $ 4,890,650 $ 92,550 $ 4,983,200 $ 12,432 1,370 06/03/15 N/A 11/30/19 1641 1.431% First Empire Securities First Empire Securities -Demand Yes T -Note 0.362% 5,008,000 (9,550) 4,998,450 10,382 214 07/31/15 N/A 09/30/16 427 0.362% First Empire Securities First Empire Securities - Demand Yes T -Note 0.487% 5,001,000 (9,200) 4,991,800 1,992 337 07/31/15 N/A 01/31/17 550 0.487% First Empire Securities First Empire Securities - Demand Yes T -Note 0.279% 5,016,500 (13,650) 5,002,850 3,863 137 07/31/15 N/A 07/15/16 350 0.279% First Empire Securities Total - U.S. Treasury Yes Webster Bank CD 1.800% $ 19,916,150 $ 60,150 $ 19,976,300 $ 28,669 1,149 04/23/14 N/A 04/23/19 1826 1.800%. Webster Bank Certicates of Deposit Custodian -Availability Surplus Issuer/Type Yield Price Fair Value at 06/30/15 or current year addition Unrealized Gain (Loss) Fair Value Accrued Interest Days to Maturity Settlement Date First Call Date Maturity Date Original Days to Maturity Yield to Maturity Market Value Source G.E. Cap Bank CTF Dep Prgrm Yes G.E. Capital Bank CD 1.100% 238,992 850 239,842 557 654 12/14/12 N/A 12/14/17 1826 1.100% G.E. Capital Bank Goldman Sachs Yes Goldman Sachs CD 1.500% 239,230 806 240,036 544 659 12/14/12 N/A 12/19/17 1831 1.150% Goldman Sachs Amex Centurion Yes Amex Centurion Bank CD 1.000% 242,794 633 243,427 237 891 08/08/13 N/A 08/08/18 1826 1.900% Amex Centurion Bank CitiBank Yes Citibank CD 1.000% 242,832 646 243,478 187 897 08/14/13 N/A 08/14/18 1826 1.900% CitiBank CD Webster Bank Yes Webster Bank CD 1.800% 241,445 1,836 243,281 1,527 1,149 04/23/14 N/A 04/23/19 1826 1.800%. Webster Bank BMW Bank Yes BMW Bank CD 1.900% 241,426 1,840 243,266 1,587 1,151 04/25/14 N/A 04/25/19 1826 1.900% BMW Bank Medallion Bank Yes Medallion Bank CD 1.350% 240,739 (209) 240,530 35 786 04/25/14 N/A 04/25/18 1461 1.350% Medallion Bank Barclays Bank Yes Barclays Bank CD 1.900% 241,390 1,864 243,254 1,537 1,155 04/29/14 N/A 04/29/19 1826 1.900% Barclays Bank Third Savings Bank & Loan Yes Third Savings Bank & Loan CD 1.250% 240,583 (245) 240,338 1,011 789 04/29/14 N/A 04/28/18 1460 1.250% Third Savings Bank & Loan Berkshire Bank Yes Berkshire Bank CD 1.350% 240,641 792 241,433 - 791 04/30/14 N/A 04/30/18 1461 1.350% Berkshire Bank Crescent Bank Yes Crescent Bank CD 1.300% 240,773 (516) 240,257- 791 04/30/14 N/A 04/30/18 1461 1.300% Crescent Bank Cornerstone Commercial Bank Yes Cornerstone Commercial Bank CD 1.350% 240,641 (130) 240,511- 791 04/30/14 N/A 04/30/18 1461 1.350% Cornerstone Commercial Bank First Merchants Bank Yes First Merchants Bank CD 1.500% 241,289 1,219 242,508 1,203 791 04/30/14 N/A 04/30/18 1461 1.500% First Merchants Bank Ephrata Bank Yes Ephrata Bank CD 1.650% 241,478 1,863 243,341 1,324 791 04/30/14 N/A 04/30/18 1461 1.650% Ephrata Bank Parkway Bank & Trust Yes Parkway Bank & Trust CD 0.450% 240,230 (273) 239,957 290 84 05/23/14 N/A 05/23/16 731 0.450% Parkway Bank & Trust Customers Bank Yes Customers Bank CD 1.000% 240,732 (154) 240,578 611 456 05/28/14 N/A 05/30/17 1098 1.000% Customers Bank Traverse City Yes Traverse City CD 1.100% 240,557 374 240,931 - 640 05/30/14 N/A 11/30/17 1280 1.100% Traverse City Merrick Bank Yes Merrick Bank CD 1.350% 240,648 816 241,464 178 800 05/09/14 N/A 05/09/18 1461 1.350% Merrick Bank Regal Bank Yes Regal Bank CD 1.400% 240,799 979 241,778 120 868 05/16/14 N/A 07/16/18 1522 1.400% Regal Bank Synchrony G.E. Cap Retail Bank CD (Draper) Yes Synchrony G.E. Capital Retail Bank 2.000% 241,274 1,889 243,163 1,552 1,158 05/02/14 N/A 05/02/19 1826 2.000% rone G.E. Cap Retail Bank CD (0 First Business Bank Yes First Business Bank CD 1.750% 241,210 1,980 243,190 1,162 1,176 05/20/14 N/A 05/20/19 1826 1.750% First Business Bank Gulf Coast Bank Yes Gulf Coast Bank CD 1.750% 241,305 1,971 243,276 115 1,176 05/19/14 N/A 05/20/19 1827 1.750% Gulf Coast Bank Peapack -Goldstone Bank Yes Peapack -Goldstone Bank CD 1.800% 241,231 2,014 243,245 12 1,184 05/28/14 N/A 05/28/19 1826 1.800% Peapack -Goldstone Bank Washington Trust Yes Washington Trust CD 0.650% 240,667 (273) 240,394 350 315 06/09/14 N/A 01/09/17 945 0.650%. Washington Trust TCF National Bank Yes TCF National Bank 0.700% 247,640 229 247,869 419 462 06/03/15 N/A 06/05/17 733 0.700% TCF National Bank Towne Bank Yes Towne Bank 0.900% 247,638 231 247,869 483 469 06/12/15 N/A 06/12/17 731 0.900% Towne Bank 1st National-Mayfied Yes 1st National-Mayfied 1.000% 247,167 813 247,980 122 651 06/11/15 N/A 12/11/17 914 1.000% 1st National-Mayfied Independent Bank Yes Independent Bank 0.900% 246,983 967 247,950 104 683 06/12/15 N/A 01/12/18 945 0.900% Independent Bank Embassy National Yes Embassy National 1.000% 246,661 1,175 247,836 82 746 06/17/15 N/A 03/16/18 1003 1.000 % Embassy National Carolina Alliance Yes Carolina Alliance 1.000% 246,698 1,176 247,874 68 749 06/19/15 N/A 03/19/18 1004 1.000% Carolina Alliance South Atlantic Yes South Atlantic 1.000% 246,584 221 246,805 136 765 06/09/15 N/A 04/04/18 1030 1.000% South Atlantic Compass Bank Yes Compass Bank 1.350% 246,289 1,438 247,727 789 827 06/05/15 N/A 06/05/18 1096 1.350% Compass Bank MB Financial Bank Yes MB Financial Bank 1.100% 246,348 1,436 247,784 179 827 06/05/15 N/A 06/05/18 1096 1.100% MB Financial Bank Mfr Trade & Trust Yes Mfr Trade & Trust 1.200% 246,234 1,297 247,531 660 833 06/10/15 N/A 06/11/18 1097 1.200% Mfr Trade & Trust Morton Community Yes Morton Community 1.250% 246,001 2,031 248,032 144 1,017 06/12/15 N/A 12/12/18 1279 1.250% Morton Community Farmers & Merch Yes Farmers & Merch 1.250% 246,001 2,210 248,211 204 1,072 06/05/15 N/A 02/05/19 1341 1.250% Farmers & Merch Solomon State Yes Solomon State 1.400% 245,825 2,664 248,489 238 1,191 06/04/15 N/A 06/04/19 1461 1.400% Solomon State Connect One Yes Connect One 1.500% 245,817 2,664 248,481 245 1,192 06/05/15 N/A 06/05/19 1461 1.500% Connect One Riverwood Yes Riverwood 1.400% 245,565 2,991 248,556 228 1,284 06/05/15 N/A 09/05/19 1553 1.4009/0 Riverwood EverBank Yes EverBank 1.700% 244,798 4,184 248,982 993 1,558 06/05/15 N/A 06/05/20 1827 1.700% EverBank Capital One Yes Capital One 1.900% 241,790 4,151 245,941 1,033 1,563 06/10/15 N/A 06/10/20 1827 1.900% Capital One Bank MidWest Yes Bank MidWest 1.650% 244,811 4,245 249,056 191 1,565 06/12/15 N/A 06/12/20 1827 1.650% Bank MidWest Ally Bank Midvale Yes Ally Bank Midvale 1.700% 240,000 1,279 241,279 749 1,029 12/24/15 N/A 12/24/18 1096 1.700% Ally Bank Midvale Wells Fargo Bank Yes Wells Fargo Bank 1.200% 240,000 1,001 241,001 24 1,093 02/26/16 N/A 02/26/19 1096 1.200% Wells Fargo Bank Comenity Capital Bank Yes Comenity Capital Bank 1.700% 240,000 38 240,038 78 1,820 02/22/16 N/A 02/22/21 1827 1.700% Comenity Capital Bank Total - Certificates of Deposit Average CD Yield 2.222% $ 10,931,756 $ 57,013 $ 10,988,769 $ 21,308 55 City of La Quinta Summary of Holdings City, Redevelopment Agency and Financing Authority February 29, 2016 Local Agency Investment Fund Name -Availability Surplus Type Interest Rate Book Value Unrealizable Gain/(Loss) Fair Value Accrued Interest Days to Maturity Actual Management Fees Charged Statutory Mgmt Fees Allowed LAIF- City - Demand Yes State Pool 0.47% $ 27,390,848 $ - $ 27,390,848 $ - N/A 2.31%- Q/E 12/31/15 5.00% Total - State Pool N/A $ 27,390,848 $ - $ 27,390,848 $ - 0.020% - Total City Investments Total City Cash & Investments L Fiscal Agent Investments $ 86,261,674 $ 151,573 $ 86,413,247 $ 157,713 $ 88,326,622 $ 151,573 $ 88,478,196 $ 157,713 Portfolio - Money Mrkt Mutual Funds Trustee - Availability Surplus Money Market Mutual Fund Interest Rate Book Value Unrealizable Gain/(Loss) Market Value Accrued Interest Days to Maturity Management Fees Civic Center U.S.Bank -Project Yes 1st American 0.020% $ - $ - $ - N/A .40% of Average Daily Civic Center U.S.Bank - Debt Svc Yes 1st American 0.020% - -- N/A 1994 SA U.S. Bank -Debt Svc Yes 1st American 0.020% - - - N/A 1998 SA U.S. Bank -PA 2 Debt Svc Yes 1st American 0.020% - -- N/A 1998 SA U.S. Bank -PA 1 Debt Svc Yes 1st American 0.020% - - - N/A 1996 FA Senes Bond Yes 1st American 0.020% 1 - 1 N/A 2001 SA U.S. Bank -Debt Service Yes 1st American 0.020% - - - N/A 2004 Fin Auth Revenue Bonds Yes 1st American 0.020% - -- N/A 2004 Fin Auth Housing Project Yes 1st American 0.020% - - - N/A 2002 SA U.S. Bank - CIP Yes 1st American 0.020% - -- N/A 2002 SA U.S. Bank - Debt Svc Yes 1st American 0.020% - - - N/A 2011 PA 2 Tax Allocation Bond Yes 1st American 0.020% 2,420,287 - 2,420,287 N/A 2011 PA 2 Tax Allocation Bond Yes 1st American 0.020% 235,380 - 235,380 N/A 2011 Financing Authority Debt Service Yes 1st American 0.020% 1,049,926 - 1,049,926 N/A 2011 PA 2 Tax Allocation Bond Yes 1st American 0.020% 600,003 - 600,003 N/A 2011 Financing Authority Reserve Yes 1st American 0.020% 2,694,395 - 2,694,395 N/A 2011 PA 2 Taxable Revenue Bond Yes 1st American 0.020% 25,560,694 - 25,560,694 N/A 2011 SA 1 Debt Service Fund Yes 1st American 0.020% - -- N/A 2011 SA 2 Bond Proceeds Yes 1st American 0.020% - - - N/A 2013 Series A Refunding Bonds Yes 1st American 0.020% 2,167,235 - 2,167,235 N/A 2013 Series B Refunding Bonds Yes 1st American 0.020% 512,741 - 512,741 N/A 2014 Tax Allocation Refunding Bonds Yes 1st American 0.020% 1,528,257 - 1,528,257 N/A Subtotal- Mutual Fund 36,768,919 $ - 36,768,919 $ - Total Fiscal Agent Investments Grand Total Average Maturity $ 36,768,919 - $ 36,768,919 $ $ 125,095,541 $ 151,573 1 $ 125,247,1151 $ 157,713 358 Days 0.41% 56 City of La Quinta Summary of Investment Activities City, Successor Agency and Financing Authority February 29, 2016 Investments Purchased Name Type Principal Date Yield to Maturity Ally Bank CD 240,000 Month Ending Balance 125,095,541 Comenity Capital Bank CD 240,000 Wells Fargo Bank CD 240,000 US Bank Mutual Fund Debt Svc Pymt Pending 5,493,261 US Bank Mutual Fund Interest 161 Total Investments Purchased 6,213,422 Investments Sold/Matured Name Type Principal Date Yield to Maturity LAIF-CITY Checking & Savings - Net Change (2,000,000) Month Ending Balance 125,095,541 LAIF-CITY (2,000,000) Discover Bank CD (240,382) First Nat'l Bank CD (240,168) Ally Bank CD (240,845) Total Investments Sold/Matured (4,721,395) Checking & Savings - Net Change 29,700 Investment Change Prior Month Ending Balance $ 123,573,814 Plus : Investments Purchased 6,213,422 Less: Investments Sold (4,721,395) Checking & Savings - Net Change 29,700 Month Ending Balance 125,095,541 57 City of La Quinta Distribution of Cash & Investments & Balances February 29, 2016 Distribution of Cash & Investments City Totals General Fund 50,882,402 Gas Tax 45,446 Quimby Fund 5,592,109 AB 939 733,093 Infrastructure Fund 23,401 Developer Impact fees 3,923,418 Art in Public Places 640.777 Special Revenue 1,396,870 Interest Fund 58,008 Capital Project Fund 671,004 Equipment Replacement Fund 2,604,959 Information Technology Fund 716,190 Perk Equipment & Facility 2.464,742 Landscape & Lighting Fund (261,050) SilverRock Resort (1.186.749) Trust & Agency Funds 274,673 Insurance Fund (60,631) Supplemental Pension Plan 139,261 Subtotal $ 68.661.921 0 Successor Agency Totals 0 Project Area Project Area 0 0 1 2 0 Capital Improvement Funds $ 6,578,843 $ 4,883,115 $ 11,461,958 Debt Service Funds 3,084 261 $ 3,345 Successor Agency 10.517,844 8 $ 10.517,852 Low & Moderate Income Funds 25,562,487 664 $ 25,563,151 Subtotal $ 42.662,258 9 4,884.048 9 47.546,306 28,022,920 Housing Authority 28,022,920 Low & Moderate Income Funds $ 2,548,886 $ 6,340,859 $ 8,889,745 Subtotal 9 2.548,886 9 6,340.850 9 8.886,745 Prime Commercial Paper0 Financing Authority 0 Project Funds 0 Debt Service Funds (2,431) (2,431) Subtotal $ (2,431) 0 0 Total $ 125,095,541 Cash Balances Type July 15 August September October November December January 15 February March April May June Cash &Investments 12.827,791 1,829.972 3.401,315 1,230,978 2.393,262 2,292.938 2035,248 2,084,948 1,836,675 4,787,495 10,975,972 0' State Pool 33,951,810 17,751,610 15,351,810 15,376,525 14,376,525 17,376,525 31,390,848 27,390,848 28,885,948 28,805,531 48,905,531 0 Interest bearing active bank deposit 0 0 0 0 0 0 0 0 0 0 0 0 U.S. Treasury Bills/Notes 19,916,150 19,916,150 19,916,150 19,916,150 19,916,150 19,916,150 19,916,150 19,916,150 0 0 0 0 U.S. Government Sponsored Enterprises 28,022,920 28,022,920 28,022,920 28,022,920 28,022,920 28,022,920 28,022,920 28,022,920 37,969,445 37.970,729 17,972,055 0 Prime Commercial Paper0 0 0 0 0 0 0 0 0 0 0 0 0 Corporate Notes 0 0 0 0 0 0 0 0 0 0 0 0 Certificates of Deposit 10,933,151 10,933,151 10,933,151 10,933,151 10,933,151 10,933,151 10,933,151 10,931,756 6,480,000 6,480,000 6,480,000 0 Mutual Funds 31,274.730 43,458,172 31,896,605 31,275,023 31,275.183 31.275,338 31,275.497 36,768,919 31,340.836 31.274,260 31,274,415 0 Total _$ 136.926 552 _$ 121,712.175 $ 109.521,951 $ 106.754.747 $ 106.917,191 $109.817.022 $ 123.573,814 $ 125.095,541 $ 106 512.906 $ - $ $ 128.990 447 Type July 14 August September October November December January 15 February March April May June Cash & Investments 7,148,056 2,012,131 3,135,406 1,490,701 2,497,575 4,025,819 4,805,279 1,200,865 1,836,675 4,787,495 10,975,972 4,945,233 State Pod 49,040,985 35,540,985 32,540,984 29,567,293 27,367,293 27,367,293 35,885,948 29,885,948 28,885,948 28,805,531 48,905,531 48,923,919 Interest beanng active bank deposit 0 0 0 0 0 0 0 0 0 0 0 0 U.S. Treasury Bills/Notes 0 0 0 0 0 0 0 0 0 0 0 4,890,650 U.S. Government Sponsored Enterprises 37,959,046 37,960,372 37,961,656 37.962,983 37,964.267 37,965,593 37,986.920 37,968,118 37,969,445 37.970,729 17,972,055 28,022,920 Prime Commercial Paper 0 0 0 0 0 0 0 0 0 0 0 0 Corporate Notes 0 0 0 0 0 0 0 0 0 0 0 0 Certificates of Deposit 6,480,000 6,480,000 6,480,000 6.480,000 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 10,933,151 Mutual Funds 31,302066 42.911,857 31,879.618 31.273,469 31,273.629 31,273,784 31,273.944 37.298,633 31,340.836 31.274,260 31,274,415 31,274,574 Total _$ 131 930 153 _$ 124.905 145 $ 111 997 664 $ 106.774,446 $ 105 562.764 $107.112 489 $ 116,412.091 $ 112.833 364 $ 106 512.906 $ 109.418 015 $115 607.973 $ 128.990 447 Type July13 August September October November December January 14 February March April May June Cash & Investments 437,484 648,459 697,949 1,684,060 565,369 1,931.555 3,557,663 5,680.831 3.591,157 1,334,084 3,630,962 8,993,908 State Pod 34,424,537 18,824,537 17,624,537 15,993,075 17,993,075 18,793,075 27,390,848 31,804,337 31,804,337 31,620,932 33,020,932 49,020,932 Interest bearing active bank deposit 39,962,564 39,964,504 39,966,844 0 0 0 0 0 0 0 0 0 US Treasury Bills/Notes 40,194,271 40,196,750 40,199,152 40,200,516 40,199.481 30,200,805 15,201,841 11,999,464 19,916,150 0 0 0 U S Government Sponsored Enterprises 42,943.426 42,944,752 42,946,034 42,947,363 39,948,647 39,949,973 39,951,300 39,952,498 39,953.825 39,955,109 39,956,435 37,957,719 Prime Commercial Paper0 11,998,605 0 0 0 0 0 0 0 0 0 0 0 Corporate Notes 0 0 0 0 0 0 0 0 0 0 0 0 Certificates of Deposit 1,440,000 1,680,000 1,680,000 10,931,756 1,680,000 1,680,000 10,931,756 1,660,000 1,680,000 4,060,000 6,240,000 6,480,000 Mutual Funds 3,215,116 15.671,311 3,436,046 2,846,265 2,559,799 12,559,821 18,645.070 25,098,875 33,928,993 33,847,806 33,847,974 33,870,741 Total _$ 162 617 398 _$ 159.930.313 $ 146 550,564 $ 114.603 035 $ 102 946.371 5105.115 229 $ 115 678.478 $ 116.216 005 $ 130 874.462 $111.037 931 $116 696.303 $ 136.323 300 Type July12 August September October November December January 13 February March April May June Cash & Investments (524,579) 787,300 347,529 (1,030,761) 10,988,854 (487.400) 1.706,699 555,859 214,521 42.116 706,238 72,776 State Pool 37,144,005 17.769,005 26,519,005 29.646,825 26,246,825 37,946,825 46,871,689 39,771,669 37.971,689 39,501,132 35.801,132 36,801,132 Interest bearing active bank deposit 39,975,735 39,941,367 39,955,737 39,972,429 39,987,007 39,898,494 39,909,510 39,919,093 39,928,379 39,938,373 39,947,649 39,955,556 U.S Treasury Bills/Notes 72,981,334 70,986,318 70986,311 70,992,223 61,031,070 61,033,380 61,035,737 61,036,858 61.037,947 40,992,801 40,992.192 40,191,789 U.S Government Sponsored Enterprises 8,999,015 8.999,709 0 0 0 0 0 3000,000 3,000000 23,000,000 28,000,000 42,942,099 Prime Commercial Paper 11,998,605 4,999,025 4,999,721 0 0 0 0 0 0 0 0 0 Corporate Notes 0 0 0 0 0 0 0 0 0 0 0 0 Certificates of Deposit 724,000 460,000 480,000 480,000 480,000 1,200,000 1,200,000 1,680,000 1,680.000 1,680,000 1,680.000 1,440,000 Mutual Funds 16,025.086 15.414,837 2,540,266 2,497,187 2,503,903 2,462,175 2,462,208 9,029,319 2,490.259 2.409,320 2,412,269 3,215,081 Total _$ 187 323 201 _$ 159427 561 $ 145 828 569 $ 142 557 903 $ 141 237 659 5142.053.474 $ 153 185.843 $ 154.992 818 $ 146 322.795 6147.563 742 $149 539.480 $ 164.618 433 Type July11 August September October November December January 12 February March April May June Cash & Investments 281,578 9,976,528 249,778 13,795,085 -1,090,198 979,796 1,057,919 6,838,073 -343,072 254,700 2,980,840 455,407' State Pool 21,378,745 17,978,745 17,278,745 15,200,984 26,650,984 39.150,985 39,975,653 31.975,653 36,675,653 35,510,862 39,910.862 38,010,862 Interest bearing active bank deposit 10,001,051 15,007,114 39,514,615 39,527,820 39,546,824 39,563,950 39,581,019 39,896,313 39,912,287 39,928,765 39,944,847 39,959,602 U S Treasury Bills/Notes 56,942,159 58,947,722 72,949,195 60,955,235 60,962,430 43,967,696 43,970,933 58,371,968 58,369,610 73,366,195 72,968,698 72,974,913 U S Government Sponsored Enterprises 19,994.459 19.997,371 14,995.325 14,996,096 14,996,842 14,997,613 23,997,920 23,998,996 23,996.161 8,996,956 8,997,650 8,998,321 Prime Commercial Paper 19,992,668 4,997,433 0 0 0 6.999,427 14,996.537 14.996,717 9,996028 9.996,388 9,996,342 11.997,202 Corporate Notes 10,034.373 10,024,534 5,015.752 5,008,776 5,002.025 0 0 0 0 0 0 0 Certificates of Deposit 724,300 724,000 724,000 724,000 724,000 724,000 724,000 724,000 724,000 724,000 724,000 724,000 Mutual Funds 45,287.175 45,258,832 16,767,608 16.130,247 16,130,247 16.132,569 15,983,994 3,585,189 3,612.383 3,397,985 3,763,623 16,088.410 Total _$ 186 636428 _$ 182 912 279 $ 167 495 018 $ 166 338 243 $ 162 923.154 5162.516.036 $ 180 267.975 $ 180,388 909 $ 172 944.050 $172.179 851 5179286.862 $ 189.208,717 58 City of La Quinta Comparative Rates of Interest February 29, 2016 Year FY 10/11 City of La Quinta Commercial Paper Annualized Earnings Average Treasury Bills/Note Three Month Month Pooled Cash Fiscal Agent Overall Maturity (days) Three Month Six Month One Year Two Year Non -Financial LAIF Rate FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 July2010 0.50% 0.15% 0.47% 119 0.16% 0.20% 0.30% 0.63% 0.28% 0.53% Aug 2010 0.49% 0.15% 0.46% 108 0.15% 0.19% 0.26% 0.38% 0.25% 0.51% Sept2010 0.55% 0.15% 0.51% 107 0.16% 0.19% 0.27% 0.38% 0.24% 0.50% Oct 2010 0.55% 0.15% 0.51% 88 0.13% 0.17% 0.23% 0.38% 0.23% 0.48 Nov 2010 0.53% 0.15% 0.49% 84 0.18% 021% 0.28% 0.50% 0.23% 0.45% Dec 2010 0.57% 0.14% 0.52% 265 0.15% 0.19% 0.30% 0.63% 0.23% 0.46% Jan 2011 0.51% 0.14% 0.43% 206 0.16% 0.18% 0.28% 0.63% 024% 0.54% Feb2011 0.55% 0.17% 0.46% 210 0.15% 0.17% 0.31% 0.63% 0.23% 0.51% Mar2011 0.54% 0.17% 0.45% 218 0.05% 0.13% 0.26% 0.75% 0.23% 0.50% Apr2011 0.59% 0.17% 0.48% 192 0.05% 0.10% 0.28% 0.63% 0.20% 0.59% May 2011 0.48% 0.17% 0.41% 156 0.06% 0.12% 0.20% 0.50% 0.16% 0.41% June 2011 0.53% 0.00% 0.35% 126 0.03% 0.10% 0.20% 0.38% 0.15% 0.45% July2011 0.53% 0.00% 0.35% 112 0.07% 0.12% 0.15% 0.20% 0.14% 0.38% Aug 2011 0.60% 0.00% 0.38% 102 0.02% 0.05% 0.10% 0.13% 0.16% 0.41% Sept2011 0.58% 0.03% 0.39% 124 0.02% 0.06% 0.09% 0.13% 0.14% 0.38% Oct2011 0.53% 0.03% 0.35% 117 0.01% 0.06% 0.12% 0.25% 0.15% 0.39% Nov 2011 0.52% 0.03% 0.37% 94 0.03% 0.07% 0.10% 0.25% 0.14% 0.40% Dec2011 0.48% 0.03% 0.35% 86 0.02% 0.06% 0.11% 0.13% 0.14% 0.39% Jan 2012 0.45% 0.03% 0.34% 74 0.05% 0.08% 0.11% 0.25% 0.14% 0.39% Feb2012 0.49% 0.05% 0.36% 72 0.12% 0.15% 0.17% 025% 0.17% 0.39% Mar2012 0.44% 0.05% 0.34% 74 0.08% 0.14% 0.19% 0.25% 0.18% 0.38% Apr2012 0.44% 0.09% 0.35% 61 0.10% 0.15% 0.19% 025% 0.20% 0.37% May2012 0.43% 0.09% 0.34% 62 0.09% 0.14% 0.19% 0.25% 0.19% 0.36% June2012 0.38% 0.08% 0.29% 47 0.10% 0.15% 0.21% 0.25% 0.21% 0.36% July2012 0.41% 0.08% 0.31% 112 0.11% 0.15% 0.18% 0.22% 0.22% 0.36% Aug 2012 0.41% 0.08% 029% 31 0.11% 0.14% 0.20% 0.25% 0.20% 0.38% Sept 2012 0.43% 0.09% 0.33% 34 0.11% 0.14% 0.18% 0.25% 0.20% 0.35% Oct2012 0.47% 0.10% 0.36% 22 0.13% 0.16% 0.18% 025% 0.19% 0.34% Nov2012 0.48% 0.10% 0.36% 161 0.10% 0.15% 0.18% 0.25% 0.20% 0.32% Dec2012 0.47% 0.10% 0.36% 137 0.08% 0.12% 0.16% 0.13% 0.20% 0.33% Jan 2013 0.44% 0.10% 0.34% 111 0.08% 0.11% 0.14% 0.25% 0.16% 0.30% Feb2013 0.37% 0.10% 0.29% 105 0.13% 0.14% 0.15% 0.25% 0.17% 0.29% Mar2013 0.39% 0.09% 0.30% 123 0.08% 0.11% 0.15% 0.25% 0.15% 0.29% Apr2013 0.31% 0.08% 025% 186 0.05% 0.08% 0.14% 0.13% 0.12% 0.26% May 2013 0.30% 0.06% 0.23% 175 0.05% 0.08% 0.14% 0.25% 0.10% 0.25% June 2013 0.30% 0.07% 0.23% 212 0.05% 0.09% 0.16% 0.38% 0.10% 0.24% July2013 0.28% 0.07% 021% 336 0.03% 0.07% 0.12% 0.25% 0.11% 0.27% Aug 2013 0.28% 0.06% 0.21% 303 0.03% 0.06% 0.07% 0.14% 0.09% 0.27% Sept 2013 0.30% 0.07% 0.23% 321 0.01% 0.04% 0.01% 0.25% 0.08% 0.26% Oct 2013 0.48% 0.06% 0.31% 427 0.05% 0.08% 0.16% 0.25% 0.11% 0.27% Nov 2013 0.49% 0.06% 0.31% 444 0.05% 0.08% 0.16% 0.25% 0.09% 0.26% Dec 2013 0.49% 0.05% 0.31% 396 0.07% 0.09% 0.14% 0.25% 0.09% 0.26% Jan 2014 0.44% 0.05% 0.32% 381 0.04% 0.06% 0.13% 0.38% 0.09% 0.24% Feb 2014 0.44% 0.03% 0.30% 357 0.05% 0.08% 0.12% 0.25% 0.10% 0.24% Mar 2014 0.44% 0.02% 0.30% 352 0.05% 0.07% 0.12% 0.38% 0.10% 0.24% Apr 2014 0.47% 0.02% 0.33% 368 0.02% 0.05% 0.11% 0.45% 0.10% 0.23% May 2014 0.49% 0.02% 0.35% 373 0.04% 0.06% 0.10% 0.39% 0.10% 0.23% June 2014 0.44% 0.02% 0.33% 310 0.04% 0.07% 0.11% 0.50% 0.10% 0.23% July 2014 0.45% 0.02% 0.34% 305 0.03% 0.06% 0.11% 0.50% 0.10% 0.24% Aug 2014 0.49% 0.02% 0.36% 313 0.03% 0.05% 0.11% 0.50% 0.11% 0.26% Sept 2014 0.51% 0.02% 0.36% 325 0.02% 0.04% 0.12% 0.50% 0.10% 0.25% Oct 2014 0.50% 0.02% 0.36% 323 0.02% 0.06% 0.10% 0.38% 0.10% 0.26% Nov 2014 0.52% 0.02% 0.37% 317 0.03% 0.08% 0.14% 0.50% 0.10% 0.26% Dec 2014 0.52% 0.02% 0.37% 304 0.02% 0.07% 0.18% 0.50% 0.13% 0.27% Jan 2015 0.49% 0.02% 0.36% 268 0.02% 0.07% 0.21% 0.50% 0.12% 0.26% Feb 2015 0.51% 0.02% 0.36% 269 0.02% 0.08% 0.21% 0.50% 0.12% 0.27% Mar2015 0.52% 0.02% 0.37% 261 0.04% 0.14% 0.27% 0.50% 0.11% 0.28% Apr 2015 0.52% 0.02% 0.37% 248 0.02% 0.07% 0.25% 0.50% 0.10% 0.28% May 2015 0.50% 0.02% 0.35% 388 0.01% 0.07% 0.26% 0.63% 0.12% 0.29% June 2015 0.70% 0.02% 0.53% 378 0.02% 0.09% 0.30% 0.63% 0.14% 0.30% July2015 0.79% 0.02% 0.57% 417 0.08% 0.17% 0.34% 0.63% 0.13% 0.32% Aug 2015 0.91% 0.02% 0.60% 467 0.10% 0.28% 0.42% 0.63% 0.18% 0.33% Sept 2015 0.94% 0.02% 0.62% 470 0.02% 0.11% 0.45% 0.63% 0.22% 0.34% Oct 2015 0.94% 0.02% 0.62% 458 0.11% 0.29% 0.21% 0.63% 0.18% 0.36% Nov 2015 0.95% 0.02% 0.62% 448 0.22% 0.42% 0.51% 0.88% 0.20% 0.37% Dec 2015 0.92% 0.02% 0.61% 419 0.22% 0.51% 0.69% 0.88% 0.36% 0.40% Jan 2016 0.81% 0.02% 0.57% 351 0.36% 0.47% 0.69% 0.75% 0.47% 0.45% Feb 2016 0.90% 0.02% 0.62% 358 0.33% 0.49% 0.67% 0.75% 0.47% 0.47% 59 City of La Quinta Chart of Interest Rates September 2015 through February 2016 1.00%- 0.90% 0.80% - 0.70% - 0.60% - 0.50% - 0.40% - 0.30% - 0.20% 0.10% - 0.00% ■ -- • • Sep'15 Oct' 15 Nov'15 Months Dec' 15 Jan'16 Feb'16 — •• — Annualized Earnings of Pooled Cash Investments A I d E m' g f F cal Agent Investments • Annualized Eamings of All Investments — 5' M nth T ry 911 R t Two Year Treasury Note Rate 60 ATTACHMENT 3 Tait 4 4adift TO: La Quinta City Council FROM: Rita Conrad, Finance Director/Treasurer SUBJECT: Treasurer's Report for March 31, 2016 DATE: April 21, 2016 Attached is the Treasurer's Report for the month ending March 31, 2016. The report is submitted to the City Council each month after a reconciliation of accounts is accomplished by the Finance Department. The following table summarizes the changes in investment types for the month: Investment Balance 02/29/16 Purchased Notes Sold/Matured Ending Change LAIF 27,390,848 $ (1,000,000) $ 26,390,848 (1,000,000) Interest bearing active bank deposit - - - Certificates of Deposit 10,931,756 10,931,756 0 US Treasuries 19,916,150 19,916,150 0 US Gov't Sponsored Enterprises 28,022,920 (4,998,000) 23,024,920 (4,998,000) Commercial Paper - - - Corporate Notes - - Mutual Funds 36,768,919 51.524 (5,493,432) 31,327,011 (5.441.908) Subtotal $ 123,030,593 $ 51.524 $ (11.491,432) $ 111.590.685 $111,439,908) Cash $ 2.064,948 1 1(1) & (2) $ 5,642,509 $ 7,707,457 rs 5.642,509 Total I $ _125.095.541 1 51,524 1 1 $ (5.848.923)1 $ 119,298,142 j $ (5,797.399 I certify that this report accurately reflects all pooled investments and is in compliance with the California Government Code; and is in conformity with the City Investment Policy. As Treasurer of the City of La Quinta, I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the pools expenditure requirements for the next six months. The City of La Quinta used the Bureau of the Public Debt, U.S. Bank Monthly Statement and the Bank of New York Monthly Custodian Report to determine the fair market value of investments at month end. Rita Conrad Finance Director/Treasurer Footnote (1) The amount reported represents the net increase (decrease) of deposits and withdrawals from the previous month. Date (2) The cash account may reflect a negative balance. This negative balance will be offset with transfers from other investments before warrants are presented for payment by the payee at the bank. 78-495 Calle Tampico 1 La Quinta 1 California 92253 1 760.777.7000 1 www.La-Quinta.orr 61 CITY OF LA QUINTA PERMISSIBLE DEPOSITS AND INVESTMENTS March 31, 2016 The City Treasurer will be permitted to invest in the following types of investments subject to the maximum percentage compliance limits and bid process requirements: All maturities must be less than the maximum allowed. Type of Investments Checking/Savings and other time accounts Certificate of Deposits U.S. Treasury Bills, Strips, Notes and Bonds. U.S. Government Sponsored Enterprises and Federal Government Securities ( except any collateralized mortgage obligation (CMO) or structured note which contains embedded rate options): - Government National Mortgage Association (GNMA) - Federal Farm Credit (FFCB) - Federal Home Loan Bank Notes & Bonds (FHLB) - Federal National Mortgage Association (FNMA) - Federal Home Loan Mortgage Corporation (FHLMC) Prime Commercial Paper Medium Term Corporate Notes - TLGP Local Agency Investment Fund (LAIF) Local Agency Bonds/CA Local Agency Bond Obligations Professionally Managed Account Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolio consists only of US Agency Securities maintaining a par value per share of $1. Investment Agreements for bond proceeds and/or reserve funds. Total Annualized Earnings of Pooled Cash Investments Annualized Eamings of Fiscal Agent Investments Annualized Earnings of All Investments All Funds Maximum All Funds Actual % All Funds Over (Under) 85.00% 1 2.39% 1 -82.61% 60.00% 1 10.01% 1 -49.99% 100.00% 18.24% -81.76% 30.00% 16.51% -13.49% 30,000,000 25,000,000 20,000,000 20,000,000 $ - - - 18,000,000 10,000,000 (30,000,000) (25,000,000) (2,000,000) (10,000,000) 95,000,000 $ 28,000,000 (67,000,000) 15.00% 0.00% -15.00% 5,000,000 5,000,000 - (5,000,000) (5,000,000) 20.00% - -20.00% 10,000,000 - (10,000,000) 10,000,000 - (10,000,000) 30.00% 24.17% -5.83% 10.00% 0.00% -10.00% 10.00% 0.00% -10.00% 20.00% 28.69 % 8.69% Surplus Maximum Surplus Surplus Over (Under) 85.00% 1 1.05% 1 -83.95% 60.00% 1 10.16% 1 -49.84% 100.00% 18.49% -81.51% 30.00% 16.74% -13.26% Restrictions Maximum Maturity Credit Quality Exceptions <=$250,000 per institution 1 3 years 1 FDIC Insured 1 None <=$250,000 per institution 1 5 years FDIC Insured None Except no more than $8 million may be invested over 2 years 10 years None Restricted to per -issuer limits below: 3 years None 30,000,000 25,000,000 20, 000, 000 18, 000, 000 20, 000, 000 10, 000, 000 95,000,000 $28,000,000 (30,000,000) (25,000,000) (2,000,000) 10,000,000) $ ;67,000,000) 15.00% 0.00% -15.00% $30.0 million $25.0 million $20.0 million $20.0 million $95.0 million 15% 90 days Standard & Poors/Moody's None 10.00% 0.00% -10.00% 30.00% 24.50% -5.50% 10.00% 0.00% -10.00% A-1, P-1 $10,000,000 per Issuer 3 years at least Standard & Poors "AA" None $50,000,000 per account Utilize DVP 3 years Unrated None $30,000,000 per account 10 years 10.00% 0.00% -10.00% 3 years N/A 0.00% N/A 1 100.00% 1 0.882% 0.020% 0.602% 20% 29.03% 9.03% N/A 0.00% N/A 100.00% Maintain $1 per share par value. Utilize DVP 60 days AAA by two of three rating agencies or assets of $500 million and investor SEC licensed > 5 yrs None None 62 City of La Quinta Summary of Holdings City, Redevelopment Agency and Financing Authority March 31, 2016 City Cash & Investments Bank Accounts Name -Availability Surplus Type Interest Rate Book Value Unrealized Gain (Loss) Fair Value Bank Wells Fargo -Demand Yes Checking 0.00% $ 1,472,835 N/A $ 1,472,835 $ 1,587,697 Petty Cash - Demand No N/A N/A 1,700 N/A 1,700 1,700 First Empire Securities Yes Savings Acct CD Interest Earnings N/A 5,098,334 N/A 5,098,334 - Washington St. Apts. - Demand Yes Operating N/A 133,563 N/A 133,563 141,825 Washington St. Apts. - Demand Yes Taxes & Insurance Acct 0.00% 13,071 N/A 13,071 13,071 Washington St. Apts. - Demand Yes Security Deposit 0.05% 27,775 N/A 27,775 27,775 Washington St. Apts. - Demand Yes Savings 0.05% 258,020 N/A 258,020 258,020 Washington St. Apts. - Demand Yes Money Market 0.00% - N/A - - Washington St. Apts. - Demand Yes Replacement Reserve CD 0.35% 600,000 N/A 600,000 600,000 Washington St. Apts. Petty Cash - Demand Yes N/A 0.00% 200 N/A 200 200 Wells Fargo/Housing - Demand Yes Checking 0.00% 101,959 N/A 101,959 107,609 Total - Bank Accounts 1,974 1,120 04/25/14 $ 7,707,457 04/25/19 $ 7,707,457 $ 2,737,897 U. S. Govemment Sponsored Enterprises Custodian -Availability Surplus Issuer/Type Discount/ Rateor Fair Value at 06/30/15 wrrent year addition Unrealized Gain (Loss) Fair Value Accrued Interest Days to Maturity Settlement Date First Call Date Maturity Date Original Days to Maturity Yield to Maturity Market Value Source Bank of New York - Demand Yes FNMA 0.750% $ 13,165,492 $ (18,659) $ 13,146,833 4,654 348 06/17/13 03/14/14 03/14/17 1366 0.750% Bank of New York Bank of New York -Demand Yes FNMA 0.750% 4,869,428 (6,901) 4,862,527 1,721 348 05/30/13 03/14/14 03/14/17 1384 0.750% Bank of New York First Empire Securities - Demand Yes FHLMC 1.750% 4,990 000 61,650 5,051,650 22 361 1,551 06/29/15 06/29/17 06/29/20 1827 1.750% First Empire Securites Total - U.S. Government Securities Yes T -Note 0.279% $ 23,024,920 $ 36,090 $ 23,061,010 $ 28,736 106 07/31/15 N/A 07/15/16 350 0.279% First Empire Securities U. S. Treasury Notes Custodian -Availability Surplus Issuer/Type Discount/ Rateor Far Value at 06/30/15 ca rrent year addition Unrealized Gain (Loss) Fair Value Accrued Interest Days to Maturity Settlement Date First Call Date Maturity Date Original Days to Maturity Yield to Maturity Market Value Source First Empire Securities - Demand Yes T -Note 1.431% $ 4,890,650 $ 107,200 $ 4,997,850 $ 16,666 1,339 06/03/15 N/A 11/30/19 1641 1.431% First Empire Securities First Empire Securities -Demand Yes T -Note 0.362% 5,008,000 (6,050) 5,001,950 - 183 07/31/15 N/A 09/30/16 427 0.362% First Empire Securities First Empire Securities - Demand Yes T -Note 0.487% 5,001,000 (4,700) 4,996,300 4,121 306 07/31/15 N/A 01/31/17 550 0.487% First Empire Securities First Empire Securities - Demand Yes T -Note 0.279% 5,016,500 (12,600) 5,003,900 6,525 106 07/31/15 N/A 07/15/16 350 0.279% First Empire Securities Total - U.S. Treasury Yes Webster Bank CD 1.800% $ 19,916,150 $ 83,850 $ 20,000,000 $ 27,312 1,118 04/23/14 N/A 04/23/19 1826 1.800% Webster Bank Certicates of Deposit Custodian -Availability Surplus Issuer/Type Yield Price Far value at 06/30/1s or current year addition Unrealized Gain (Loss) Fair Value Accrued Interest Days to Maturity Settlement Date First Call Date Maturity Date Original Days to Maturity Yield to Maturity Market Value Source G.E. Cap Bank CTF Dep Prgrm Yes G.E. Capital Bank CD 1.100% 238,992 1,162 240,154 781 623 12/14/12 N/A 12/14/17 1826 1.100% G.E. Capital Bank Goldman Sachs Yes Goldman Sachs CD 1.500% 239,230 1,111 240,341 779 628 12/14/12 N/A 12/19/17 1831 1.150% Goldman Sachs Amex Centurion Yes Amex Centurion Bank CD 1.000% 242,794 1,125 243,919 625 860 08/08/13 N/A 08/08/18 1826 1.900% Amex Centurion Bank CitiBank Yes Citibank CD 1.000% 242,832 1,152 243,984 575 866 08/14/13 N/A 08/14/18 1826 1.900% CitiBank CD Webster Bank Yes Webster Bank CD 1.800% 241,445 2,649 244,094 1,894 1,118 04/23/14 N/A 04/23/19 1826 1.800% Webster Bank BMW Bank Yes BMW Bank CD 1.900% 241,426 2,656 244,082 1,974 1,120 04/25/14 N/A 04/25/19 1826 1.900% BMW Bank Medallion Bank Yes Medallion Bank CD 1.350% 240,739 171 240,910 53 755 04/25/14 N/A 04/25/18 1461 1.350% Medallion Bank Barclays Bank Yes Barclays Bank CD 1.900% 241,390 2,683 244,073 1,924 1,124 04/29/14 N/A 04/29/19 1826 1.900% Barclays Bank Third Savings Bank & Loan Yes Third Savings Bank & Loan CD 1.250% 240,583 65 240,648 1,266 758 04/29/14 N/A 04/28/18 1460 1.250% Third Savings Bank & Loan Berkshire Bank Yes Berkshire Bank CD 1.350% 240,641 1,147 241,788 9 760 04/30/14 N/A 04/30/18 1461 1.350% Berkshire Bank Crescent Bank. Yes Crescent Bank CD 1.300% 240,773 (118) 240,655 9 760 04/30/14 N/A 04/30/18 1461 1.300% Crescent Bank Cornerstone Commercial Bank Yes Cornerstone Commercial Bank CD 1.350% 240,641 261 240,902 9 760 04/30/14 N/A 04/30/18 1461 1.350% Cornerstone Commercial Bank First Merchants Bank Yes First Merchants Bank CD 1.500% 241,289 1,903 243,192 1,509 760 04/30/14 N/A 04/30/18 1461 1.500% First Merchants Bank Ephrata Bank Yes Ephrata Bank CD 1.650% 241,478 2,683 244,161 1,660 760 04/30/14 N/A 04/30/18 1461 1.650% Ephrata Bank Parkway Bank & Trust Yes Parkway Bank & Trust CD 0.450% 240,230 (225) 240,005 382 53 05/23/14 N/A 05/23/16 731 0.450% Parkway Bank & Trust Customers Bank Yes Customers Bank CD 1.000% 240,732 60 240,792 815 425 05/28/14 N/A 05/30/17 1098 1.000% Customers Bank Traverse City Yes Traverse City CD 1.100% 240,557 624 241,181 - 609 05/30/14 N/A 11/30/17 1280 1.100% Traverse City Merrick Bank Yes Merrick Bank CD 1.350% 240,648 1,186 241,834 195 769 05/09/14 N/A 05/09/18 1461 1.350% Merrick Bank Regal Bank Yes Regal Bank CD 1.400% 240,799 1,483 242,282 138 837 05/16/14 N/A 07/16/18 1522 1.400% Regal Bank Synchrony G.E. Cap Retail Bank CD (Draper) Yes Synchrony G.E. Capital Retail Bank 2.000% 241,274 2,710 243,984 1,959 1,127 05/02/14 N/A 05/02/19 1826 2.000% rony G.E. Cap Retail Bank CD (0 First Business Bank Yes First Business Bank CD 1.750% 241,210 2,820 244,030 1,519 1,145 05/20/14 N/A 05/20/19 1826 1.750% First Business Bank Gulf Coast Bank Yes Gulf Coast Bank CD 1.750% 241,305 963 242,268 138 1,145 05/19/14 N/A 05/20/19 1827 1.750% Gulf Coast Bank Peapack -Goldstone Bank Yes Peapack -Goldstone Bank CD 1.800% 241,231 2,861 244,092 36 1,153 05/28/14 N/A 05/28/19 1826 1.800% Peapack -Goldstone Bank Washington Trust Yes Washington Trust CD 0.650% 240,667 (185) 240,482 483 284 06/09/14 N/A 01/09/17 945 0.650% Washington Trust TCF National Bank Yes TCF National Bank 0.700% 247,640 504 248,144 566 431 06/03/15 N/A 06/05/17 733 0.700% TCF National Bank Towne Bank Yes Towne Bank 0.900% 247,638 508 248,146 673 438 06/12/15 N/A 06/12/17 731 0.900%. Towne Bank 1st National-Mayfied Yes 1st National-Mayfied 1.000% 247,167 1,126 248,293 136 620 06/11/15 N/A 12/11/17 914 1.0009,0 1st National-Mayfied Independent Bank Yes Independent Bank 0.900% 246,983 1,297 248,280 116 652 06/12/15 N/A 01/12/18 945 0.900% Independent Bank Embassy National Yes Embassy National 1.000% 246,661 1,542 248,203 95 715 06/17/15 N/A 03/16/18 1003 1.000% Embassy National Carolina Alliance Yes Carolina Alliance 1.000% 246,698 1,543 248,241 82 718 06/19/15 N/A 03/19/18 1004 1.000% Carolina Alliance South Atlantic Yes South Atlantic 1.000% 246,584 655 247,239 149 734 06/09/15 N/A 04/04/18 1030 1.000 % South Atlantic Compass Bank Yes Compass Bank 1.350% 246,289 1,944 248,233 1,073 796 06/05/15 N/A 06/05/18 1096 1.350% Compass Bank MB Financial Bank Yes MB Financial Bank 1.100% 246,348 1,940 248,288 194 796 06/05/15 N/A 06/05/18 1096 1.100% MB Financial Bank Mfr Trade & Trust Yes Mfr Trade & Trust 1.200% 246,234 1,823 248,057 913 802 06/10/15 N/A 06/11/18 1097 1.200% Mfr Trade & Trust Morton Community Yes Morton Community 1.250% 246,001 2,852 248,853 161 986 06/12/15 N/A 12/12/18 1279 1.250% Morton Community Farmers & Merch Yes Farmers & Merch 1.250% 246,001 3,070 249,071 221 1,041 06/05/15 N/A 02/05/19 1341 1.250% Farmers & Merch Solomon State Yes Solomon State 1.400% 245,825 3,616 249,441 257 1,160 06/04/15 N/A 06/04/19 1461 1.400% Solomon State Connect One Yes Connect One 1.500% 245,817 3,616 249,433 265 1,161 06/05/15 N/A 06/05/19 1461 1.500% Connect One Riverwood Yes Riverwood 1.400% 245,565 4,017 249,582 247 1,253 06/05/15 N/A 09/05/19 1553 1.400% Riverwood EverBank Yes EverBank 1.700% 244,798 5,335 250,133 1,351 1,527 06/05/15 N/A 06/05/20 1827 1.700% EverBank Capital One Yes Capital One 1.900% 241,790 5,288 247,078 1,428 1,532 06/10/15 N/A 06/10/20 1827 1.900% Capital One Bank MidWest Yes Bank MidWest 1.650% 244,811 5,404 250,215 213 1,534 06/12/15 N/A 06/12/20 1827 1.650% Bank MidWest Ally Bank Midvale Yes Ally Bank Midvale 1.700% 240,000 2,042 242,042 1,095 998 12/24/15 N/A 12/24/18 1096 1.700% Ally Bank Midvale Wells Fargo Bank Yes Wells Fargo Bank 1.200% 240,000 1,831 241,831 39 1,062 02/26/16 N/A 02/26/19 1096 1.200% Wells Fargo Bank Comenity Capital Bank Yes Comenity Capital Bank 1.700% 240,000 1 356 241,356 101 1 789 02/22/16 N/A 02/22/21 1827 1.700% Comenity Capital Bank Total - Certificates of Deposit Average CD Yield 2.222% $ 10,931,756 $ 82,256 $ 11,014,012 $ 28,107 63 City of La Quinta Summary of Holdings City, Redevelopment Agency and Financing Authority March 31, 2016 Local Agency Investment Fund Name -Availability Surplus Type Interest Rate Book Value Unrealizable Gain/(Loss) Fair Value Accrued Interest Days to Maturity Actual Management Fees Charged Statutory Mgmt Fees Allowed LAIF- City - Demand Yes State Pool 0.51% $ 26,390,848 $ - $ 26,390,848 $ - N/A 1.75%- Q/E 03/31/16 5.00% Total - State Pool N/A $ 26,390,848 $ - $ 26,390,848 $ - 0.020% - Total City Investments Total City Cash & Investments L Fiscal Agent Investments $ 80,263,674 $ 202,196 $ 80,465,870 $ 84,155 $ 87,971,131 $ 202,196 $ 88,173,328 $ 84,155 Portfolio - Money Mrkt Mutual Funds Trustee - Availability Surplus Money Market Mutual Fund Interest Rate Book Value Unrealizable Gain/(Loss) Market Value Accrued Interest Days to Maturity Management Fees Civic Center U.S.Bank -Project Yes 1st American 0.020% $ - $ - $ - N/A .40% of Average Daily Civic Center U.S.Bank - Debt Svc Yes 1st American 0.020% - -- N/A 1994 SA U.S. Bank -Debt Svc Yes 1st American 0.020% - - - N/A 1998 SA U.S. Bank -PA 2 Debt Svc Yes 1st American 0.020% - -- N/A 1998 SA U.S. Bank -PA 1 Debt Svc Yes 1st American 0.020% - - - N/A 1996 FA Senes Bond Yes 1st American 0.020% 51,338- 51,338 N/A 2001 SA U.S. Bank -Debt Service Yes 1st American 0.020% - - - N/A 2004 Fin Auth Revenue Bonds Yes 1st American 0.020% - -- N/A 2004 Fin Auth Housing Project Yes 1st American 0.020% - - - N/A 2002 SA U.S. Bank - CIP Yes 1st American 0.020% - -- N/A 2002 SA U.S. Bank - Debt Svc Yes 1st American 0.020% - - - N/A 2011 PA 2 Tax Allocation Bond Yes 1st American 0.020% 2,420,286- 2,420,286 N/A 2011 PA 2 Tax Allocation Bond Yes 1st American 0.020% 39 - 39 N/A 2011 Financing Authority Debt Service Yes 1st American 0.020% 69 - 69 N/A 2011 PA 2 Tax Allocation Bond Yes 1st American 0.020% 600,006 - 600,006 N/A 2011 Financing Authority Reserve Yes 1st American 0.020% 2,694,408 - 2,694,408 N/A 2011 PA 2 Taxable Revenue Bond Yes 1st American 0.020% 25,560,816 - 25,560,816 N/A 2011 SA 1 Debt Service Fund Yes 1st American 0.020% - -- N/A 2011 SA 2 Bond Proceeds Yes 1st American 0.020% - - - N/A 2013 Series A Refunding Bonds Yes 1st American 0.020% 7 - 7 N/A 2013 Series B Refunding Bonds Yes 1st American 0.020% 2 - 2 N/A 2014 Tax Allocation Refunding Bonds Yes 1st American 0.020% 40 - 40 N/A Subtotal - Mutual Fund 31,327,011 $ - 31,327,011 $ - Total Fiscal Agent Investments Grand Total Average Maturity $ 31,327,011 $ 31,327,011 $ § 119,298,142 $ 202,196 1 $ 119,500,339 1 $ 84,155 314 Days 0.65% 64 City of La Quinta Summary of Investment Activities City, Successor Agency and Financing Authority March 31, 2016 Investments Purchased Name Type Principal Date Yield to Maturity US Bank Mutual Fund Debt Svc Pymt Pending 51,336 Month Ending Balance 119,298,142 US Bank Mutual Fund Interest 188 Total Investments Purchased 51,524 Investments Sold/Matured Name Type Principal Date Yield to Maturity LAIF-CITY Checking & Savings - Net Change (1,000,000) Month Ending Balance 119,298,142 FHLMC - Call (4,998,000) Debt Svc Pymt (5,493,432) Total Investments Sold/Matured (11,491,432) Checking & Savings - Net Change $ 5,642,509 Investment Change Prior Month Ending Balance $ 125,095,541 Plus : Investments Purchased 51,524 Less: Investments Sold (11,491,432) Checking & Savings - Net Change 5,642,509 Month Ending Balance 119,298,142 65 City of La Ouinta Distribution of Cash & Investments & Balances March 31, 2016 Distribution of Cash B Investments City Totals General Fund 50,638,342 Gas Tax 70,462 Quimby Fund 5,569,443 AB 939 731,918 Infrastructure Fund 23,460 Developer Impact fees 3,969,821 Art in Public Places 611,280 Special Revenue 1,426,287 Interest Fund 2,292,938 Capital Project Fund 274,484 Equipment Replacement Fund 2,638,859 Information Technology Fund 732,306 Perk Equipment & Facility 2,516,550 Landscape 8 Lighting Fund (398,594) SilverRock Resort (821,610) Trust & Agency Funds 274,859 Insurance Fund (64,983) Supplemental Pension Plan 139,611 Subtotal $ 68.332.495 0 Successor Agency Totals 0 Project Area Project Area 0 0 1 2 0 Capital Improvement Funds $ 6,578,843 $ 4,837,517 $ 11,416,360 Debt Service Funds 3,085 261 $ 3,346 Successor Agency 5.030,042 8 $ 5,030,050 Low & Moderate Income Funds 25,562,609 664 $ 25,563,273 Subtotal $ 37,174,579 5 4,838,450 5 42.013.029 28,022,920 Housing Authority 28,022,920 Low & Moderate Income Funds $ 2,554,626 $ 6,346,654 $ 8,901,280 Subtotal 9 2,554,626 5 6,346,654 $ 8,901,280 Prime Commercial Paper0 Financing Authority 0 Project Funds 0 Debt Service Funds 51,338 51.338 Subtotal $ 51,338 0 0 Total $ 119,298,142 Cash Balances Type July15 August September October November December January 15 February March April May June Cash &Investments 12,827,791 1,829,972 3,401,315 1,230,978 2,393,282 2,292,938 2,035,248 2,064,948 7,707,457 4,787,495 10,975,972 0' State Pool 33,951,810 17,751,810 15,351,810 15,376,525 14,376,525 17,376,525 31,390,848 27,390,848 26,390,848 28,905,531 48,905,531 0 Interest bearing active bank deposit 0 0 0 0 0 0 0 0 0 0 0 0 U.S. Treasury Bills/Notes 19,916,150 19,916,150 19,916,150 19,916,150 19,916,150 19,916,150 19,916,150 19,916,150 19,916,150 0 0 0 U.S. Government Sponsored Enterprises 28,022,920 28,022,920 28,022,920 28,022,920 28,022,920 28,022,920 28,022,920 28,022,920 23,024,920 37,970,729 17,972,055 0 Prime Commercial Paper0 0 0 0 0 0 0 0 0 0 0 0 0 Corporate Notes 0 0 0 0 0 0 0 0 0 0 0 0 Certificates of Deposit 10,933,151 10,933,151 10,933,151 10,933,151 10,933,151 10,933,151 10,933,151 10,931,756 10,931,756 6,480,000 6,480,000 0 Mutual Funds 31,274,730 43,458,172 31,896,605 31,275,023 31,275,183 31,275,338 31,275,497 36,768,919 31,327,011 31,274,260 31,274,415 0 Total _9 136,926 552 _9121,712,175 $ 109,521,951 $ 106.754,747 $ 106,917,191 5109.817.022 $ 123,573,814 $ 125.095,541 $ 119,298.142 $ - $ $ 128.990 447 Type July 14 August September October November December January 15 February March April May June Cash & Investments 7,148,056 2,012,131 3,135;406 1,490,701 2,497,575 4,025,819 4,805,279 1,200,865 1,836,875 4,787,495 10,975,972 4,945,233 5506e Pool 49,040,985 35,540,985 32,540,984 29,567,293 27,367,293 27,367,293 35,885,948 29,885,948 28,885,948 28,905,531 48,905,531 48,923,919 Interest beanng active bank deposit 0 0 0 0 0 0 0 0 0 0 0 0 U.S. Treasury Bills/Notes 0 0 0 0 0 0 0 0 0 0 0 4,890,650 U.S. Government Sponsored Enterprises 37,959,046 37,960,372 37,961,656 37,962,983 37,964,267 37,965,593 37,966,920 37,968,118 37,969,445 37,970,729 17,972,055 28,022,920 Prime Commercial Paper 0 0 0 0 0 0 0 0 0 0 0 0 Corporate Notes 0 0 0 0 0 0 0 0 0 0 0 0 Certificates of Deposit 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 10,933,151 Mutual Funds 31,302,066 42,911,857 31,879,818 31,273,469 31,273,629 31,273,784 31,273,944 37,298,633 31,340,838 31,274,260 31,274,415 31,274,574 Total _$ 131 930 153 _$ 124.905 145 $ 111 997 664 $ 106.774,446 $ 105 582.764 $107.112 489 $ 116,412.091 $ 112.833 364 $ 106 512.906 $109.418 015 $115 607.973 $ 128.990 447 Type July13 August September October November December January 14 February March April May June Cash & Investments 437,484 648,459 697,949 1,684,060 565,369 1,931,555 3,557,663 5,680,831 3,591,157 1,334,084 3,630,962 8,993,908 State Pool 34,424,537 18,824,537 17,624,537 15,993,075 17,993,075 18,793,075 26,390,848 31,804,337 31,804,337 31,820,932 33,020,932 49,020,932 Interest bearing active bank deposit 39,962,584 39,964,504 39,986,844 0 0 0 0 0 0 0 0 0 U5 Treasury Bills/Notes 40,194,271 40,196,750 40,199,152 40,200,516 40,199,481 30,200,805 15,201,841 11,999,464 19,916,150 0 0 0 U S Government Sponsored Enterprises 42,943,426 42,944,752 42,946,038 42,947,363 39,948,647 39,949,973 39,951,300 39,952,498 39.953.825 39,955.109 39,956,435 37,957,719 Prime Commercial Paper 0 0 0 0 0 0 0 0 0 0 0 0 Corporate Notes 0 0 0 0 0 0 0 0 0 0 0 0 Certificates of Deposit 1,440,000 1,680,000 1,680,000 10,931,756 1,680,000 1,680,000 10,931,756 1,680,000 1,680,000 4,080,000 6,240,000 6,480,000 Mutual Funds 3,215,116 15,671,311 3,436,046 2,846,265 2,559,799 12,559,821 18,645,070 25,098,875 33,928,993 33,847,806 33,847,974 33,870,741 Total _$ 162 617 398 .4 159.930,313 $ 146 550,564 $ 114.603 035 $ 102 946.371 $105.115 229 $ 114 678.478 $ 116.216 005 $ 130 874.462 $111,037 931 $116 696.303 $ 136.323 300 Type July12 August September October November December January 13 February March April May June Cash & Investments (524,579) 787,300 347,529 (1,030,761) 10,988,854 (487,400) 1,706,699 555,859 214,521 42,116 706,238 72,776 State Pool 37,144,005 17,769,005 26,519,005 29,646,825 26,246,825 37,946,825 46,871,689 39,771,689 37,971,689 39,501,132 35,801,132 36,801,132 Interest bearing 4016e bank deposit 39,975,735 39,941,367 39,955,737 39,972,429 39,987,007 39,898,494 39,909,510 39,919,093 39,928,379 39,938,373 39,947,649 39,955,556 U.S Treasury Bills/Notes 72,981,334 70,986,318 70,986,311 70,992,223 61,031,070 61,033,380 61,035,737 61,036,858 61.037,947 40,992,801 40,992,192 40,191,789 U.S Government Sponsored Enterprises 8,999,015 8,999,709 0 0 0 0 0 3,000,000 3,000,000 23,000,000 28,000,000 42,942,099 Prime Commercial Paper 11,998,605 4,999,025 4,999,721 0 0 0 0 0 0 0 0 0 Corporate Notes 0 0 0 0 0 0 0 0 0 0 0 0 Certificates of Deposit 724,000 480,000 480,000 480,000 480,000 1,200,000 1,200,000 1,680,000 1,680,000 1,680,000 1,680,000 1,440,000 Mutual Funds 16,025,086 15,464,837 2,540,266 2,497,187 2,503,903 2,462,175 2,462,208 9,029,319 2,490,259 2,409,320 2,412,269 3,215,081 Total _$ 187 323 201 _$ 159427 561 $ 145 828 569 $ 142 557 903 $ 141 237 659 5142.053,474 $ 153 185.843 $ 154.992 818 $ 146 322.795 5147.563 742 $149 539.480 5 164.618 433 Type July 11 August September October November December January 12 February March April May June Cash & Investments 281,978 9,970,528 249,778 13,795,085 -1,090,198 979,796 1,057,919 6,838,073 -343,072 254,700 2,980,840 455,407' State Pool 21,378,745 17,978,745 17,278,745 15,200,984 26,650,984 39,150,985 39,975,653 31,975,653 36,675,653 35,510,862 39,910,862 38,010,862 Interest bearing active bank deposit 10,001,051 15,007,114 39,514,815 39,527,820 39,546,824 39,563,950 39,581,019 39,896,313 39,912,287 39,928,765 39,944,847 39,959,602 U S Treasury Bills/Notes 58942,159 58,947,722 72,949,195 60,955,235 60,962,430 43,967,696 43,970,933 58,371,968 58,369,610 73,368,195 72,968,696 72,974,913 U S Government Sponsored Enterprises 19,994,459 19,997,371 14,995,325 14,996,096 14,996,842 14,997,613 23,997,920 23,998996 23,996,161 8,996,956 8,997,650 8,998,321 Prime Commercial Paper 19,992,888 4,997,433 0 0 0 6,999,427 14,996,537 14,998,717 9,996,828 9,998,388 9,996,342 11,997,202 Corporate Notes 10,034,373 10,024534 5,015,752 5,008,776 5,002,025 0 0 0 0 0 0 0 Certificates of Deposit 724,000 724,000 724,000 724,000 724,000 724,000 724,000 724,000 724,000 724,000 724,000 724,000 Mutual Funds 45,287,175 45,258,832 16,767,608 16,130,247 16,130,247 16,132,569 15,983,994 3,585,189 3,612,383 3,397,985 3,763,623 16,088,410 Total _$ 186 636428 _5182 912 279 $ 167 495 018 $ 166 338 243 $ 162 923.154 5162.516,036 $ 180 287.975 $ 180,388 909 $ 172 944.050 5172.179 851 5179286.862 $ 189,208,717 66 City of La Quinta Comparative Rates of Interest March 31, 2016 Year FY 10/11 City of La Quinta Commercial Paper Annualized Earnings Average Treasury Bills/Note Three Month Month Pooled Cash Fiscal Agent Overall Maturity (days) Three Month Six Month One Year Two Year Non -Financial LAIF Rate FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 July2010 0.50% 0.15% 0.47% 119 0.16% 0.20% 0.30% 0.63% 0.28% 0.53% Aug 2010 0.49% 0.15% 0.46% 108 0.15% 0.19% 0.26% 0.38% 0.25% 0.51% Sept2010 0.55% 0.15% 0.51% 107 0.16% 0.19% 0.27% 0.38% 0.24% 0.50% Oct 2010 0.55% 0.15% 0.51% 88 0.13% 0.17% 0.23% 0.38% 0.23% 0.48 Nov 2010 0.53% 0.15% 0.49% 84 0.18% 021% 0.28% 0.50% 0.23% 0.45% Dec 2010 0.57% 0.14% 0.52% 265 0.15% 0.19% 0.30% 0.63% 0.23% 0.46% Jan 2011 0.51% 0.14% 0.43% 206 0.16% 0.18% 0.28% 0.63% 024% 0.54% Feb2011 0.55% 0.17% 0.46% 210 0.15% 0.17% 0.31% 0.63% 0.23% 0.51% Mar2011 0.54% 0.17% 0.45% 218 0.05% 0.13% 0.26% 0.75% 0.23% 0.50% Apr2011 0.59% 0.17% 0.48% 192 0.05% 0.10% 0.28% 0.63% 0.20% 0.59% May 2011 0.48% 0.17% 0.41% 156 0.06% 0.12% 0.20% 0.50% 0.16% 0.41% June 2011 0.53% 0.00% 0.35% 126 0.03% 0.10% 0.20% 0.38% 0.15% 0.45% July2011 0.53% 0.00% 0.35% 112 0.07% 0.12% 0.15% 0.20% 0.14% 0.38% Aug 2011 0.60% 0.00% 0.38% 102 0.02% 0.05% 0.10% 0.13% 0.16% 0.41% Sept2011 0.58% 0.03% 0.39% 124 0.02% 0.06% 0.09% 0.13% 0.14% 0.38% Oct2011 0.53% 0.03% 0.35% 117 0.01% 0.06% 0.12% 0.25% 0.15% 0.39% Nov 2011 0.52% 0.03% 0.37% 94 0.03% 0.07% 0.10% 0.25% 0.14% 0.40% Dec2011 0.48% 0.03% 0.35% 86 0.02% 0.06% 0.11% 0.13% 0.14% 0.39% Jan 2012 0.45% 0.03% 0.34% 74 0.05% 0.08% 0.11% 0.25% 0.14% 0.39% Feb2012 0.49% 0.05% 0.36% 72 0.12% 0.15% 0.17% 025% 0.17% 0.39% Mar2012 0.44% 0.05% 0.34% 74 0.08% 0.14% 0.19% 0.25% 0.18% 0.38% Apr2012 0.44% 0.09% 0.35% 61 0.10% 0.15% 0.19% 025% 0.20% 0.37% May2012 0.43% 0.09% 0.34% 62 0.09% 0.14% 0.19% 0.25% 0.19% 0.36% June2012 0.38% 0.08% 0.29% 47 0.10% 0.15% 0.21% 0.25% 0.21% 0.36% July2012 0.41% 0.08% 0.31% 112 0.11% 0.15% 0.18% 0.22% 0.22% 0.36% Aug 2012 0.41% 0.08% 029% 31 0.11% 0.14% 0.20% 0.25% 0.20% 0.38% Sept 2012 0.43% 0.09% 0.33% 34 0.11% 0.14% 0.18% 0.25% 0.20% 0.35% Oct2012 0.47% 0.10% 0.36% 22 0.13% 0.16% 0.18% 025% 0.19% 0.34% Nov2012 0.48% 0.10% 0.36% 161 0.10% 0.15% 0.18% 0.25% 0.20% 0.32% Dec2012 0.47% 0.10% 0.36% 137 0.08% 0.12% 0.16% 0.13% 0.20% 0.33% Jan 2013 0.44% 0.10% 0.34% 111 0.08% 0.11% 0.14% 0.25% 0.16% 0.30% Feb2013 0.37% 0.10% 0.29% 105 0.13% 0.14% 0.15% 0.25% 0.17% 0.29% Mar2013 0.39% 0.09% 0.30% 123 0.08% 0.11% 0.15% 0.25% 0.15% 0.29% Apr2013 0.31% 0.08% 025% 186 0.05% 0.08% 0.14% 0.13% 0.12% 0.26% May 2013 0.30% 0.06% 0.23% 175 0.05% 0.08% 0.14% 0.25% 0.10% 0.25% June 2013 0.30% 0.07% 0.23% 212 0.05% 0.09% 0.16% 0.38% 0.10% 0.24% July2013 0.28% 0.07% 021% 336 0.03% 0.07% 0.12% 0.25% 0.11% 0.27% Aug 2013 0.28% 0.06% 0.21% 303 0.03% 0.06% 0.07% 0.14% 0.09% 0.27% Sept 2013 0.30% 0.07% 0.23% 321 0.01% 0.04% 0.01% 0.25% 0.08% 0.26% Oct 2013 0.48% 0.06% 0.31% 427 0.05% 0.08% 0.16% 0.25% 0.11% 0.27% Nov 2013 0.49% 0.06% 0.31% 444 0.05% 0.08% 0.16% 0.25% 0.09% 0.26% Dec 2013 0.49% 0.05% 0.31% 396 0.07% 0.09% 0.14% 0.25% 0.09% 0.26% Jan 2014 0.44% 0.05% 0.32% 381 0.04% 0.06% 0.13% 0.38% 0.09% 0.24% Feb 2014 0.44% 0.03% 0.30% 357 0.05% 0.08% 0.12% 0.25% 0.10% 0.24% Mar 2014 0.44% 0.02% 0.30% 352 0.05% 0.07% 0.12% 0.38% 0.10% 0.24% Apr 2014 0.47% 0.02% 0.33% 368 0.02% 0.05% 0.11% 0.45% 0.10% 0.23% May 2014 0.49% 0.02% 0.35% 373 0.04% 0.06% 0.10% 0.39% 0.10% 0.23% June 2014 0.44% 0.02% 0.33% 310 0.04% 0.07% 0.11% 0.50% 0.10% 0.23% July 2014 0.45% 0.02% 0.34% 305 0.03% 0.06% 0.11% 0.50% 0.10% 0.24% Aug 2014 0.49% 0.02% 0.36% 313 0.03% 0.05% 0.11% 0.50% 0.11% 0.26% Sept 2014 0.51% 0.02% 0.36% 325 0.02% 0.04% 0.12% 0.50% 0.10% 0.25% Oct 2014 0.50% 0.02% 0.36% 323 0.02% 0.06% 0.10% 0.38% 0.10% 0.26% Nov 2014 0.52% 0.02% 0.37% 317 0.03% 0.08% 0.14% 0.50% 0.10% 0.26% Dec 2014 0.52% 0.02% 0.37% 304 0.02% 0.07% 0.18% 0.50% 0.13% 0.27% Jan 2015 0.49% 0.02% 0.36% 268 0.02% 0.07% 0.21% 0.50% 0.12% 0.26% Feb 2015 0.51% 0.02% 0.36% 269 0.02% 0.08% 0.21% 0.50% 0.12% 0.27% Mar2015 0.52% 0.02% 0.37% 261 0.04% 0.14% 0.27% 0.50% 0.11% 0.28% Apr 2015 0.52% 0.02% 0.37% 248 0.02% 0.07% 0.25% 0.50% 0.10% 0.28% May 2015 0.50% 0.02% 0.35% 388 0.01% 0.07% 0.26% 0.63% 0.12% 0.29% June 2015 0.70% 0.02% 0.53% 378 0.02% 0.09% 0.30% 0.63% 0.14% 0.30% July2015 0.79% 0.02% 0.57% 417 0.08% 0.17% 0.34% 0.63% 0.13% 0.32% Aug 2015 0.91% 0.02% 0.60% 467 0.10% 0.28% 0.42% 0.63% 0.18% 0.33% Sept 2015 0.94% 0.02% 0.62% 470 0.02% 0.11% 0.45% 0.63% 0.22% 0.34% Oct 2015 0.94% 0.02% 0.62% 458 0.11% 0.29% 0.21% 0.63% 0.18% 0.36% Nov 2015 0.95% 0.02% 0.62% 448 0.22% 0.42% 0.51% 0.88% 0.20% 0.37% Dec 2015 0.92% 0.02% 0.61% 419 0.22% 0.51% 0.69% 0.88% 0.36% 0.40% Jan 2016 0.81% 0.02% 0.57% 351 0.36% 0.47% 0.69% 0.75% 0.47% 0.45% Feb2016 0.90% 0.02% 0.62% 358 0.33% 0.49% 0.67% 0.75% 0.47% 0.47% Mar 2016 0.88% 0.02% 0.60% 314 0.24% 0.39% 0.67% 0.88% 0.47% 0.51% 67 City of La Quinta Chart of Interest Rates October 2016 through March 2016 1.00%- 0.90% - 0.80% - 0.70% - 0.60% - 0.50% - 0.40% - 0.30% - 0.20% 0.10% - 0.00% • Oct' 15 Nov'15 Dec'15 Months Jan'16 Feb' 16 Mar'16 — — Annualized Earnings of Pooled Cash Investments A r d E ' g f F cal Agent Investments m Annualized Earnings of All Investments Six Month Treasury Bill Rate —a— Two Year Treasury Note Rate 68 CONSENT CALENDAR ITEM NO. City of La Quint() CITY COUNCIL MEETING: June 7, 2016 STAFF REPORT AGENDA TITLE: APPROVE 2016/17 INVESTMENT ADVISORY BOARD WORK PLAN RECOMMENDATION Approve the Investment Advisory Board Work Plan for 2016/17. EXECUTIVE SUMMARY Each year, the Investment Advisory Board (IAB) presents its work plan to the Council in order to provide an opportunity for potential modifications to the existing plans. The Investment Advisory Board's (IAB) current work plan reflects five principal functions as set forth in the City's Municipal Code. FISCAL IMPACT - None. BACKGROUND/ANALYSIS The work plan adopted by the IAB does not differ from the previous year and is as follows: Review the City's investment policy annually and recommend changes. Review monthly treasury report, noting compliance with the investment policy and adequacy of cash and investments for anticipated obligations. Receive and consider other reports provided by the City Treasurer. Meet with the independent auditor after completion of the City's annual audit and receive and consider the auditor's comments on procedures, internal controls, and findings for cash and investment activities. Serve as a resource for the City Treasurer on matters such as proposed investments, internal controls, use or change of financial institutions, custodians, brokers and dealers. ALTERNATIVES - None. Prepared by: Rita Conrad, Finance Director Approved by: Frank J. Spevacek, City Manager 69 70 CONSENT CALENDAR 1 TEM NO. Qty of La Quinta aTYcou a L MEETI NG: June 7,2016 STAFF REPORT AGENDA TI TLL ADOPT RESOLUTI ON FOR 2016/17 I NVESTMENT POLI CY RECOM M EN DATI ON Adopt a resolution approving the Investment Policy for Fiscal Year 2016/17. FXFCUTI VE SUMMARY California Government Code requires that the City Treasurer submit an annual statement of investment policy. The City's Investment Advisory Board (IAB) has completed its annual review of the current Investment Policy (Policy) and has identified minor items that should be updated. The IAB is not recommending any major changes at this time. FI SCAL I MPACT - None. BACKGROUND/ ANALYSI S The California Government Code imposes certain reporting requirements on state and local agencies, which includes the submittal of an annual statement of investment policy to the legislative body. As a result, in February 2016 the IAB began the process of updating the City's Policy to conform to this legislative requirement. IAB recommended the Fiscal Year 2016/17 Policy, which has been presented in a redline version (Attachment 1). The IAB conducted a thorough review of the Policy in June 2015 and only minor updates are needed at this time. Recommendations include changes to the fiscal year referenced; minor language changes for text consistency in appendices; and changes for consistency with state law: Combine sections related to Negotiable and Non -Negotiable Certificates of Deposits into one section and limit the overall total combined percentage of the portfolio to 30%. Update language related to Certificates of Deposits (both negotiable and non-negotiable) to be consistent with state law. Remove language referring to the Mutual Fund restriction of "$1 per share par value" to be consistent with state law requirements. 71 Update to chart of permissible deposits in text of Policy to clear up differences between Appendix A (Permissible Deposits and I nvestments) and this section of the Policy. Appendix A incorrectly stated that the state restricts local public agencies to 30% of funds allowed for investment in the Local Agency Investment Fund (LAI F). The IAB and Treasurer are in agreement that the state limit of $50 million in LAIF should also be reflected as the City's restriction. It is Qty Policy to invest all public funds in a manner which will provide a diversified portfolio with maximum security with the highest investment return in conformity with all state and local statutes, while meeting daily cash flow demands. This Policy applies to all cash and investments of the City, Successor Agency to the La Quinta Redevelopment Agency, La Quinta Housing Authority, and the La Quinta Financing Authority. The primary objectives of investment activity, in order of priority, are: Safety of principal; Liquidity to meet all obligations and requirements that may be reasonably anticipated; and A risk-based market rate of return, meaning the return on an investment is less important than the safety and liquidity. The portfolio's rates of return will be influenced by actions of the Federal Reserve Board, the market place and overall economic perceptions and conditions. The City's buy and hold policy protects the yield of securities during the holding period because the securities' yields are fixed at the time of purchase. Authority to manage the City's investment portfolio is specified in Section 3.08.010 of the City's Municipal Code. Management responsibility for the investment program is delegated to the Qty Treasurer, who establishes and implements written procedures for its operation, consistent with the Policy. ALTERNATI VES Modifications to the Policy may be identified and referred back to the IAB. Prepared by: Rita Conrad, Finance Director Approved by: Frank J. Spevacek, Qty Manager Attachments: 1. Redlined version of Fiscal Year 2016/2017 Investment Policy 72 RESOLUTI ON NO. 2016- A RESOLUTI ON OF THE CI TY COU NCI L OF THE CI TY OF LA QUI NTA APPROVING AND ADOPTING THE AMENDED I NVESTMENT POLI CY FOR FI SCAL YEAR 2016/2017 WHEREAS, the general purpose of the Investment Policy isto provide the rules and standards users must follow in investing funds of the Qty of La Quinta; and WHEREAS, the primary objectives, in order of priority, of the City of La Quinta's investment activity shall be: Safety of principal is the foremost objective of the investment program. Investments of the Qty of La Quinta shall be undertaken in a manner that seeksto ensure the preservation of capital in the overall portfolio. The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. The investment portfolio shall be designed with the objective of attaining a market rate of return or yield throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs; and WHEREAS, authority to manage the City of La Quinta's investment portfolio is derived from the City's municipal code, management responsibility for the investment program is delegated to the City Treasurer, who shall establish and implement written procedures for the operation of the City's investment program consistent with the Investment Policy for Fiscal Year 2016/2017; and WHEREAS, the Investment Policy will be adopted before the end of June of each year and amended as considered necessary. NOW, THEREFORE, BE I T RESOLVED by the City Council of the Qty of La Quinta to adopt the Fiscal Year 2016/2017 Investment Policy (Exhibit A). 1 73 Resolution No. 2016- I nvestment Policy for Fiscal Year 2016/2017 Adopted: June 7, 2016 Page 2 of 3 PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta Oty Council, held on this 7th day of June, 2016 by the following vote: AYES: NOES: ABSTAI N: ABSENT: LI NDA EVANS, Mayor Qty of La Quinta, California ATTEST: SUSAN MAYSELS, Oty Clerk Qty of La Quinta, California (O TY SEAL) APPROVED AS TO FORM: WILLIAM H. I HRKE, Oty Attorney Oty of La Quinta, California 74 Resolution No. 2016- 1 nvestment Policy for Fiscal Year 2016/2017 Adopted: June 7, 2016 Page 3 of 3 Exhibit A (TO BE ATTACHED) 1 75 76 CITY OF LA QUINTA Investment Policy Fiscal Year 2015/20162016/2017 Table of Contents Section Topic Page Executive Summary 2 General Purpose 4 II Investment Policy 4 III Scope 4 IV Objectives 4 ► Safety of Principal ► Provide Liquidity ► Yield A Risk -Based Market Rate Of Return ✓ Maximum Maturities 6 VI Prudence 6 VII Authority 6 VIII Ethics and Conflicts of Interest 7 IX Authorized Financial Dealers and Institutions 7 ► Broker/Dealers ► Financial Institutions X Permissible Deposits and Investments 8 XI Investment Pools 12 XII Payment and Custody 13 XIII Interest Earning Distribution Policy 13 XIV Internal Controls and Independent Auditors 13 XV Reporting Standards 14 XVI Financial Assets and Investment Activity Not Subject to this Policy 15 XVII Investment of Bond Proceeds 15 XIII Investment Advisory Board - City of La Quinta 15 XIX Investment Policy Adoption 16 Appendices Topic Page A Summary of Permissible Deposits and Investments 17 B City of La Quinta Municipal Code Ordinance 2.70 - Investment Advisory Board 19 C City of La Quinta Municipal Code Ordinance 3.08 - Investment of Moneys and Funds20 D Segregation of Major Investment Responsibilities 22 E Listing of Approved Financial Institutions 23 F Broker/Dealer Questionnaire and Certification 24 G Request for Proposal for Professional Portfolio Management Firm 28 H Permissible Investment Chart — Professional Portfolio Management Firm 34 Investment Management Process and Risk 35 J Glossary 36 1 ATTACHMENT 1 77 CITY OF LA QUINTA Investment Policy Fiscal Year 2015/20162016/2017 Executive Summary The general purpose of this Investment Policy is to provide the rules and standards that must be followed in administering the City of La Quinta's deposits and investments. The City's Investment Policy conforms to all state and local statutes and applies to all deposits and investments of the City of La Quinta (the"City"). It is the City's policy to deposit and invest public funds in a manner that shall provide: ► Safety of principal; ► Liquidity to meet all of the City's obligations and requirements that may be reasonably anticipated; and ► A risk-based market rate of return. It is the City's policy to hold securities and other investments until maturity. This buy -and -hold policy shall not prevent the sale of a security to minimize loss of principal when an issuer or backer suffers declining credit worthiness or when the liquidity needs of the portfolio require that a security be sold. Authority to manage the City's investment portfolio is derived from the City Municipal Code. Management responsibility for the investment program is delegated to the City Treasurer, who shall establish and implement written procedures for the operation of the City's investment program consistent with the Investment Policy. The Treasurer shall establish and implement a system of internal controls to accomplish the following objectives: ► Safeguard assets; ► Orderly and efficiently conduct its business, including adherence to all City management policies; ► Prevent or detect errors and fraud; ► Accurately complete all accounting records; and ► Timely prepare all reliable financial information. The System of Internal Controls developed by the City Treasurer shall be reviewed annually by the independent auditors in connection with the annual audit of the City's financial statements. The City Manager, City Treasurer and city employees involved in the City's banking and investment process shall conduct the City's business in an ethical manner and refrain from any activity or relationship that may be, or have the appearance of, a conflict of interest. The City Treasurer maintains a listing of financial institutions which are approved for investment purposes. All Broker/Dealers and financial institutions that provide investment services will be subject to City Council approval. The Treasurer will be permitted to invest only in the permissible deposits and investments described in Section X and Appendix A up to the specified maximum allowable percentages and/or dollar limitations and, where applicable, through the bid process requirements. Permissible deposits and investments include, in general: 2 78 ► FDIC -Insured Checking, Savings, and Sweep Accounts; ► Collateralized Bank Deposits; ► Certificates of Deposit; ► Ncgotiablc Certificates of Deposit (Negotiable and Non -Negotiable); ► U.S. Government Agency Securities and Federal Government Securities; ► Prime Commercial Paper; ► Local Agency Investment Fund (LAIF); ► Money Market Mutual Funds; ► Corporate Notes; and ► Professionally Managed Accounts. The City's deposits and investments are generally limited to three years' maximum maturity. However, the projected amount of funds not expected to be disbursed within five years may be invested in notes and bonds maturing between three and five years. Additionally, funds may be invested for up to ten (10) years as further discussed in Section V. The City's Investment Policy does not specify a single benchmark as a goal or target yield for a rate of return on its investment portfolio. As a basis for comparison only, the Treasurer's monthly report will display the rates of return on the three-month Bill, six-month Bill, and the one and two-year U.S. Treasury Note, comparable -period rates for commercial paper, and the yield for the State Treasurer's Local Agency Investment Fund (LAIF). The Investment Policy shall be adopted by resolution of the La Quinta City Council on an annual basis. The Investment Policy will be adopted before the end of June of each year. This Executive Summary is only an overview of the City's Investment Policy. Reading this summary does not constitute a complete review, which can only be accomplished by reviewing all of the pages herein. 3 79 City of La Quinta Statement of Investment Policy July 1, 20152016 through June 30, 20162017 Adopted by the City Council on June 27, 20165 GENERAL PURPOSE The general purpose of this document is to provide the rules and standards that must be followed in administering the City of La Quinta's deposits and investments. II INVESTMENT POLICY It is the policy of the City of La Quinta to deposit and invest public funds in a manner that shall provide: ► Safety of principal; ► Liquidity to meet all of the City's obligations and requirements that may be reasonably anticipated; and ► A risk-based market rate of return. The Investment Policy conforms to all State and local statutes governing the investment of public funds and sets forth the permissible deposits and investments of the City's funds and the limitations thereon. III SCOPE Except as further detailed in Section XVII, this Investment Policy applies to all deposits and investments of the City of La Quinta, Successor Agency to the City of La Quinta Redevelopment Agency and the City of La Quinta Financing and Housing Authorities (hereafter referred to in this document as the "City"). These funds are reported in the City's Comprehensive Annual Financial Report (CAFR) and include all funds within the following fund types: ► General ► Special Revenue ► Capital Projects ► Debt Service ► Enterprise ► Internal Service ► Trust and Agency ► Any new fund types and fund(s) that may be created. IV OBJECTIVES The objectives of the City's investment activity, in order of priority and importance, are: 1. Safety of Principal Safety of principal is the foremost objective of the City's investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of principal of the overall portfolio in accordance with the permissible deposits and investments. 4 80 The City shall endeavor to preserve its investment principal by making only permissible deposits and investments, undertaken in a controlled manner to minimize the possibility of loss or misappropriation through malfeasance or otherwise. Investments not backed by the full faith and credit of the United States Government shall be diversified by allocating assets between different types of permissible investments, maturities, and issuers as a means to mitigate credit risk and interest rate risk. a. Credit Risk is the risk of loss from the failure of the security issuer or backer. Credit risk may be mitigated by: ► Limiting investments to investment grade securities as permitted in Section X; and ► Diversifying the issuers of the securities in the investment portfolio so that potential losses due to issuer failure or individual securities downgrades may be minimized. b. Interest Rate Risk is the risk that market values of securities in the portfolio will decline due to changes in general interest rates. Interest rate risk may be mitigated by: ► Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity; and ► Investing operating funds primarily in shorter -term securities. c. Liquidity Risk is the risk that a security cannot be liquidated because of its unique features or structure or because it is thinly traded. Liquidity risk is not a material issue for the City's portfolio because of the permissible deposits and investments (see Section X) and because the City maintains a buy -and -hold policy and holds securities and other investments to maturity. A discussion of the City's investment process and risk is presented in Appendix I. 2. Provide Liquidity The investment portfolio shall remain sufficiently liquid to meet all of the City's cash needs that may be reasonably anticipated. This is accomplished by structuring the portfolio so that sufficient liquid funds are available to meet anticipated demands. Furthermore, since all possible cash needs cannot be anticipated the portfolio should be diversified and consist of securities with active secondary or resale markets. The City's policy is to hold securities and other investments to maturity. Accordingly, securities shall not be sold prior to maturity with the following exceptions: ► A security with declining credit quality can be sold early to minimize loss of principal; and ► Unanticipated liquidity needs of the portfolio require that one or more securities be sold. 3. Yield a Risk -Based Market Rate of Return The City's investment portfolio shall be structured with the objective of yielding a risk- based market rate of return throughout budgetary and economic cycles. Return on investment is less important than the safety and liquidity objectives described above. 5 81 The City's Investment Policy does not specify a single benchmark as a goal or target yield for a rate of return on its investment portfolio. The portfolio's rates of return will be influenced by several factors, including actions by the Federal Reserve Board, the marketplace, and overall economic perceptions and conditions. These factors will not affect yield during the securities' holding period because the City's buy -and -hold policy fixes the securities' yield at the time of purchase. As a basis for comparison only, the Treasurer's monthly reports will display the rates of return on the three-month Bill, six-month Bill, and one and two-year U.S. Treasury Note, comparable -period rates for commercial paper, and the yield for the State Treasurer's Local Agency Investment Fund (LAIF). The Treasurer may use these or any other published rates of return that the Treasurer deems appropriate for comparison to the return on the City's investment portfolio. V MAXIMUM MATURITIES It is the City's policy to hold securities and other investments until maturity, thus avoiding the risk of market value fluctuations with overall market interest rates. This buy -and -hold policy shall not prevent the sale of a security to minimize loss of principal when an issuer or backer suffers declining credit worthiness or when the liquidity needs of the City require that a security be sold. The buy -and -hold policy requires that the City's investment portfolio be structured so that sufficient liquid funds are available from maturing investments and other sources to meet all reasonably -anticipated cash needs. To meet anticipated cash needs, it is essential that the Treasurer have reliable, diligently prepared cash flow projections. Annually, the Treasurer shall project the amount of funds not expected to be disbursed within ten years. For FY201 5/2016, the amount of such funds is projected to be $20 million. Funds up to that amount may be invested in U.S.Treasury notes and bonds, Local Agency Obligations, and California Local Agency Obligations maturing between 3 and 10 years. For all other funds, investments are limited to five years maximum maturity. VI PRUDENCE The City shall follow the Uniform Prudent Investor Act as adopted by the State of California in Probate Code Sections 16045 through 16054. Section 16053 sets forth the terms of a prudent person which are as follows: "Investments shall be made with judgment and care - under circumstances then prevailing - which persons of prudence, discretion, and intelligence exercise in the professional management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived." VII AUTHORITY Authority to manage the City's investment portfolio is derived from section 3.08 of the City's Municipal Code. Management responsibility for the investment program is delegated to the City Treasurer for a period of one year pursuant to the City Council's annual adoption of the Investment Policy. 6 82 The City Treasurer shall establish written procedures for the operation of the investment program consistent with the Investment Policy. Procedures should include reference to safekeeping, wire transfer agreements, banking service contracts, and collateral/depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this Investment Policy and the procedures established by the City Treasurer. The City Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. The City Manager or his/her designee shall acknowledge in writing all purchases and sales of investments prior to their execution by the City Treasurer. VIII ETHICS AND CONFLICTS OF INTEREST The City Manager, City Treasurer and city employees involved in the City's banking and investment process shall conduct the City's business in an ethical manner and refrain from any activity or relationship that may be, or have the appearance of, a conflict of interest. Any questionable activity or relationship shall be reported immediately and in compliance with the procedures set forth in Section 1 .40 — Conflicts of Interest and Acceptance of Gifts and other Gratuities of the City of La Quinta Personnel Manual. Reporting must be made in accordance with the personnel policies of the City and, until resolved, the officer or employee shall refrain from participating in the City's business related to the matter. The City Manager, City Treasurer and City employees may conduct personal business with banks, brokers, and other financial institutions that are authorized to conduct business with the City provided that the terms of the activity to the accountholder with the City are the same as those that are available to the public in general. IX AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The City Treasurer maintains a listing of financial institutions which are approved for direct investment purposes. In addition a list will also be maintained of approved broker/dealers selected by credit worthiness. 1. Broker/Dealers who desire to become bidders for direct investment transactions must supply the City with the following: ► Current audited financial statements; ► Proof of Financial Industry Regulatory Authority (FINRA) Certification; ► Trading resolution; ► Resume of Financial broker; and ► Completion of the City of La Quinta Broker/Dealer questionnaire (see Appendix F) which contains a certification of having read the City's Investment Policy. The City Treasurer shall evaluate the documentation submitted by the broker/dealer and independently verify existing reports on file for any firm and individual conducting investment related business. The City Treasurer will also contact the following agencies during the verification process: ► Financial Industry Regulatory Authority (FINRA) Public Disclosure Report File (1- 800-289-9999). 7 83 ► State of California Department of Corporations (1-916-445-3062). The City Treasurer maintains a listing of financial institutions which are approved for investment purposes. All Broker/Dealers and financial institutions that provide investment services will be subject to City Council approval. Each securities dealer shall provide monthly and quarterly reports filed pursuant to U.S. Treasury Department regulations. Each mutual fund shall provide a prospectus and statement of additional information. 2. Financial Institutions will be required to meet the following criteria in order to receive City funds for deposit or investment (see Appendix E, "Listing of Approved Financial Institutions"): a. Insurance - Public Funds shall be deposited only in financial institutions having accounts insured by the Federal Deposit Insurance Corporation (FDIC). b. Collateral - The amount of the City's deposits or investments not insured by the FDIC -shall be collateralized by securities with market values of 110%, or by mortgages with market values 1 50%, of the amount of invested funds plus unpaid interest earnings. c. Disclosure - Each financial institution maintaining invested funds in excess of the FDIC insured amount shall furnish the City a copy of the most recent Call Report. The City shall not invest in excess of the FDIC insured amount in banking institutions which do not disclose to the city a current listing of securities pledged for collateralization in public monies. X PERMISSIBLE DEPOSITS AND INVESTMENTS Permissible deposits and investments are summarized below. A more comprehensive list is included in Appendix A. Maximum Allocation Maximum Maturity Restrictions 85°4, -of Portfolio Current-/ On --Demand U.S. Tr aeurioo and/or GSE'o Intcrc..t b aring active bank deposits non FDIC in„urcd collateralized by 110% of eligible securities 60%-ef-Rer#eIe Current-/ On -Demand $40 -million per -bank Certificates of Deposit FDIC Insured 60% of Portfolio 5 Year - $250,000, on Negotiable Certificates of Deposit FDIC Insured 30% of Pc cIi3 5 Y aro <=$250,500 incl et per -institution U.S. Treasury Bills, Notes and Bonds, and Government National 484-0,ef-Por She 5 -Years <-420,000T000 maturing 3 10 Yrs. 8 84 Formatted: Left Maxi -mum eu Gat -on Maximum My Restrisiions 30% of Portfolio Years 00 rnaturibg-340 Yrs. Long-term "A, A2, A" or better which contain embedded rate options): $10 million per purchase Federal National Mortgage Association (FNMA) Federal Homo Loan Bank Notes & Bonds (FHLB) Federal Farm Crcdit Bank (FFCB) $20-,000,000 $25-,009400 $30409;500 $20,000,000 5 Years 5 -Years 5 Y aro 5 years °30� d_pertfelie Program (TLGP) 159,k-ef Rertf3Ae 90 Days $5508,500 -per Local Agency Investment Fund (LAIF) 3041,4f Portfolio Current-/ On --Demand $59 mililen por account Money market mutual funds regulated by the SEC that consist only of US Tr asury Sccuritics or GSE's and maintain a par value of $1 per share 20% of Portfolio Current / On Demand Mah;taip-$1-per chars par value Cor-perate-Netes 10 of Portfolio 3 -Nears $5;009,890 max per issuer AA rated or better 20% of Portfolio 3 -Years $10,000,000 max YcT�vcrTv'A /� rated or better Professionally Managed Account d9 , of Pekfelie 3 Years Requires Cit. T - Approved -RFP 13 ermissible Deposits and Investments Maximum city Restrictions City Maximum Allocation Maturity (Footnote 1) C ecking & Savings Accounts (FDIC Insured) & Sweep 85% Portfolio Sweep Account: U.S. Treasuries and/or Current/On Demand A counts GSE's In rest bearing active bank deposits — non FDIC insured 60% Portfolio $40 000 000 per bank Current /on Demand c lateralized by 110% of eligible securities C rtificate of Deposit (negotiable and non-negotiable) 3060 % Portfolio <= $250,000 including interest per 5 years institution -- -- - - -- - - -- 30-k°-RerttoBe <=$250 000 includnganterest-per i 5 year- y institution institution . Treasury Bills Notes and Bonds, and Government 100% Portfolio <=$30,0000,000 maturing 3-5 Yrs. 3 years N t Mortgage Association (GNMA) securities U.3. Government Agency Securities and Federal 30% of Portfolio combined $10 million per purchase 5 years Government Securities (except collateralized mortgage obligations en (CMO's) or structured notes which contain bedded rate options): $20,000,000 per issuer - federal National Mortgage Association (FNMA) - federal Home Loan Bank Notes & Bonds (FHLB) $25,000,000 per issuer Lyes - federal Farm Credit Bank (FFCB) $30,000,000 per issuer Lyes ..------ - federal Home Loan Mortgage Corporation (FHLMC) $20,000,000 per issuer 5 years •--:-__-„ P me Commercial Paper including Temporary Liquidity 15% Portfolio $5,000,000 per issuer maximum 90 days G Program (TLGP) (Igrantee L+Cal Agency Investment Fund (LAIF) $50,000,000 $50,000,000 Current/On Demand per account 9 Formatted: Left 85 M ney market mutual funds regulated by the SEC that 20% Portfolio Mutual fund must have in excess of Current / $500 million in assets under crosist only of US Treasury Securities or GSE's-and management. On Demand value Corporate Notes 10% Portfolio $5,000,000 max per issuer 3 years C rporate Notes - Temporary Liquidity Guarantee 20% Portfolio $10 000 000 max per issuer 3 years P gram (TLGP). II Professionally Managed Account 10% Portfolio Requires Approved RFP 3 years Lc(cal Agency Bonds/California Agency Obligations 100% <=130,000,0000 10 years Long -Term Scale S&P Al AAA, AA+, AA, AA-, A+, A Moody's P1 Aaa, Aa1, Aa2, Aa3, Al, A2 Fitch AAA, AA + , AA, AA-, A + , A Checking, Savings, and Sweep Accounts — The City will only maintain checking, savings, and sweep accounts with FDIC insured financial institutions. As authorized by the City Council, a U.S. Treasury and/or U.S. Agency Securities Money Market Sweep Account with a $50,000 target balance may be maintained in conjunction with the checking account. In addition, the Treasurer may invest in an interest bearing active deposit account as approved in Government Code Section 53632. The deposit account must be collateralized with securities that are in accordance with Government Code Sections 53632.5(c). In addition, the market value of the collateralized securities must be maintained in accordance with 53652 (a), and be held by a custodian in accordance with the requirements of Government Code Section 53656. The proposition of the City's share of the deposit account shall be determined in accordance with Government Code Section 53658. Certificates of Deposit (Negotiable and Non-negotiable) - As authorized in Government Code Section 53601, local governments may invest up to 30% of their portfolios in Certificates of Deposits and 30% in Negotiable Certificates of deposits. The City's policy is to limit combined Non -Negotiable and Negotiable Certificates of Deposits to 30% of the overall portfolio. Each CD is limited to the FDIC limit of $250,000. (619, Ccrtificatcs of Deposit arc fixcd term investments which arc required to bc collateralized from 1 10% to 150% depending on thc specific security pledged as collateral in accordance with Government Codc Scction 53652. ................. Collateralization will bc required for Certificates of Deposits in cxce^., of thc FDIC insured amount. The type of collateral is limited to City authorized investments. Collateral will always be held by an independent third party from the institution that sells thc Certificates of Deposit to the City. Evidence of compliance with State Collateralization policies must be supplied to thc City and retained by thc City Tr °surer as follows: Ccrtificatcs of Deposits Insured by the FDIC: The City Trgasurcr may waive collateralization of a deposit that is federally insured. Ccrtificatcs of Deposit in exec's of FDIC Limits: The amount not federally insurcd shall be 10 Formatted: Indent: Hanging: 0.5" Formatted: Justified, Indent: Left: 0", Hanging: 0.5", No bullets or numbering, Tab stops: Not at -1" + 0.75" invested funds plus unpaid interest carnings. The City's Investment Policy limits thc percentage of Certificates of Deposit to 60% of the4 portfolio. Negotiable Certificates of Deposit issucd by a nationally or state chartered bank, a savings association or a federal association (as dcfincd by Scction 5102 of thc Financia( foreign bank. No more than 30% of thc City's portfolio may be invested in negotiable CDs. U.S. Treasury Bills, Notes, and Bonds and Government National Mortgage Associations (GNMA) securities — The City may invest in U.S. Treasury bills, notes, and bonds and GNMA securities directly issued and backed by the full faith and credit of the U.S. Government. The City's Investment Policy provides for investments in U.S. Treasury issues and GNMA's of 100% of the portfolio. ► The City's Investment Policy does not allow investments in state indebtedness. Local Agency Bonds and California Local Agency Obligations — The City may invest in California local agency obligations pursuant to 56301(a) and 53301 (e). 53601(a) pertains to investing in bonds issued by a local agency, department, board, agency or authority of the local agency. 53601 (e) pertains to investing in bonds and other defined indebtedness of a local agency or department, board, agency or authority of the local agency within the State of California. The City's Investment Policy limits investments in Local Agency Bonds and California Local Agency obligations to 30% of the portfolio with up to a ten year maximum maturity. In addition, the Agency obligations must be invested in the long term rating of A, A2, A or better by S&P, Moody's or Fitch. In the case of an initial public offering, including refinancings, the Treasurer may purchase directly from the Bond Underwriter. In the case of secondary issues, the Treasurer will rely on the approved Broker/Dealers. U.S. Government Agency Securities and Federal Government Securities — The City may invest in securities issued by U.S. Government instrumentalities and agencies (commonly referred to as government sponsored enterprises or GSE's). These securities are not backed by the full faith and credit of the U.S. Government. Publicly owned GSE's include Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC) and Student Loan Marketing Association (SLMA). Non -publicly owned GSE's include the Federal Home Loan Bank (FHLB), Federal Farm Credit Bank (FFCB), Federal Land Bank (FLB) and Federal Intermediate Credit Bank (FICB). The City's Investment Policy allows investment only in securities of FNMA, FHLMC, FHLB and FFCB. For Fiscal Year 2015/2016, the maximum face amount per issuer is $20 million for FNMA and FHLMC, $25 million for FHLB and $30 million for FFCB. In addition, no more than 30% of the portfolio surplus may be invested in all GSE's combined with a maximum $10 million face amount per purchase. Prime Commercial Paper - As authorized in Government Code Section 53601 (g), a portion of the City's portfolio may be invested in commercial paper of the highest rating (Al or 11 Formatted: Justified, Indent: Hanging: 0.5" Formatted: Indent: Hanging: 0.5" P1) as rated by Moody's or Standard and Poor's. There are a number of other qualifications regarding investments in commercial paper based on the financial strength of the corporation and the size of the investment. The City's Investment Policy permits investments in commercial paper with the following limitations: ► Maximum 15% of the portfolio; ► Maximum maturity of 90 days; and ► Maximum of $5 million per issuer. These limitations are more restrictive than the State code which allows amounts of 25% of the total portfolio with maturities up to 270 days with no per -issuer limitations. Local Agency Investment Fund (LAIF) - As authorized in Government Code Section 16429.1 and by LAIF procedures, local government agencies are each authorized to invest a maximum of $50 million per account in this investment program administered by the California State Treasurer. The City Treasurer may not invest more than $50 million per account in LAIF. The City's investment in LAIF is allowable as long as the average maturity of its investment portfolio does not exceed two years, unless specific approval is authorized by the City Council. The City limits invcstmcnt to 30% of the portfolio. Money Market Mutual Funds - As authorized in Government Code Section 53601 (k), local agencies are authorized to invest in shares of beneficial interest issued by diversified management companies (mutual funds) in an amount not to exceed 20% of the agency's portfolio. There are a number of other qualifications and restrictions regarding allowable investments in corporate notes and shares of beneficial interest issued by mutual funds which include (1) attaining the highest ranking or the highest letter and numerical rating provided by not less than two of the three largest nationally recognized rating services, or (2) having an investment advisor registered with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations and with assets under management in excess of five hundred million dollars ($500,000,000). The City's Investment Policy only allows investments in mutual funds that arc moncy .. that invest in direct issues of the U.S. Treasury and/or US Agency Securities with an average maturity of their portfolio not exceeding 90 days and the City limits such investments to 20% of the portfolio. Corporate Notes - As authorized in Government Code Section 53601 (j), local agencies may invest in corporate notes. The notes must be issued by corporations organized and operating in the United States or by depository institutions licensed by the United States or any other state and operating in the United States. The City's Investment Policy allows investment in corporate notes authorized by the Government Code with the following limitations: ► Maturities shall not exceed three years from date of purchase; ► Eligible notes shall be regularly quoted and traded in the marketplace; ► Eligible notes shall be rated "AA" or better; and ► The maximum aggregate investment shall not exceed $5 million face amount for each issuer. This is more restrictive than the State code allowed amounts of 30% of the total portfolio with maturities up to five years with no per -issuer limitations. Professionally Managed Account(s) - The City Treasurer may place up to 10% of the 12 88 portfolio with a professional portfolio management firm ("PPMF"). The PPMF will be approved by the City Council based upon the City Treasurer's recommendation pursuant to completion of a request for proposal (RFP) as outlined in Appendix G. The PPMF shall have: ► An established professional reputation for asset or investment management; ► Knowledge and working familiarity with State and Federal laws governing and restricting the investment of public funds; ► Substantial experience providing investment management services to local public agencies whose investment policies and portfolio size are similar to those of the City; ► Professional liability (errors and omissions) insurance and fidelity bonding in such amounts as are required by the City; and ► Registration with the Securities and Exchange Commission under the Investment Advisers Act of 1940. Before engagement by the City and except as may be specifically waived or revised, the PPMF shall commit to adhere to the provisions of the City's Investment Policy with the following exceptions: ► The PPMF may be granted the discretion to purchase and sell investment securities in accordance with Appendix I of this Investment Policy; ► The PPMF is not required to adhere to the buy -and -hold policy of the City's Investment Policy; and ► The PPMF does not need City Manager or City Treasurer approval to make permissible investments as detailed in column 8 of Appendix H of this Investment Policy. XI INVESTMENT POOLS There are three (3) types of investment pools: ► State-run pools (e.g., LAIF); ► Pools that are operated by a political subdivision where allowed by law and the political subdivision is the trustee (e.g., County Pools); and ► Pools that are operated for profit by third parties. The City's Investment Policy permits investment only in pools authorized in Section X. XII PAYMENT AND CUSTODY The City shall engage qualified third party custodians to act in a fiduciary capacity to maintain appropriate evidence of the City's ownership of securities and other eligible investments. Such custodians shall disburse funds, received from the City for a purchase, to the broker, dealer or seller only after receiving evidence that the City has legal, record ownership of the securities. Even though ownership is evidenced in book -entry form rather than by actual certificates, this procedure is commonly accepted as the delivery versus payment (DVP) method for the transfer of securities. 13 89 XIII INTEREST EARNING DISTRIBUTION POLICY Interest earnings are generated from pooled investments and specific investments. The following provisions apply to the calculation and distribution of interest earnings. 1 . Pooled Investments - It is the general policy of the City to pool all available operating cash of the City of La Quinta, Successor Agency to the City of La Quinta Redevelopment Agency, La Quinta Financing Authority, and La Quinta Housing Authority, and to allocate interest earnings in the following order, as follows: a. Payment to the General Fund of an amount equal to the total annual bank service charges as incurred by the general fund for all operating funds as included in the annual operating budget. b. Payment to the General Fund of a management fee equal to 5% of the annual pooled cash fund investment earnings. c. Payment to each fund of an amount based on the average computed daily cash balance included in the common portfolio for the earning period. 2. Specific Investments - Specific investments purchased by a fund shall incur all earnings and expenses to that particular fund. XIV INTERNAL CONTROLS AND INDEPENDENT AUDITOR The City Treasurer shall establish a system of internal controls to accomplish the following objectives: ► Safeguard assets; ► The orderly and efficient conduct of its business, including adherence to management policies; ► Prevention or detection of errors and fraud; ► The accuracy and completeness of accounting records; and ► Timely preparation of reliable financial information. While no internal control system, however elaborate, can guarantee absolute assurance that the City's assets are safeguarded, it is the intent of the City's internal control to provide a reasonable assurance that management of the investment function meets the City's objectives. The internal controls shall address the following: ► Control of collusion. Collusion is a situation where two or more employees are working in conjunction to defraud their employer. ► Separation of transaction authority from accounting and record keeping. By separating the person who authorizes or performs the transaction from the people who record or otherwise account for the transaction, a separation of duties is achieved. ► Custodial safekeeping. Securities purchased from any bank or dealer including appropriate collateral las defined by State Law) shall be placed with an independent third party for 14 90 custodial safekeeping. ► Avoidance of physical delivery securities. Book entry securities are much easier to transfer and account for since actual delivery of a document never takes place. Delivered securities must be properly safeguarded against loss or destruction. The potential for fraud and loss increases with physically delivered securities. ► Clear delegation of authority to subordinate staff members. Subordinate staff members must have a clear understanding of their authority and responsibilities to avoid improper actions. Clear delegation of authority also preserves the internal control structure that is contingent on the various staff positions and their respective responsibilities as outlined in the Segregation of Major Investment Responsibilities appendices. ► Written confirmation or telephone transactions for investments and wire transfers. Due to the potential for error and improprieties arising from telephone transactions, all telephone transactions shall be supported by written communications or electronic confirmations and approved by the appropriate person. Written communications may be via fax if on letterhead and the safekeeping institution has a list of authorized signatures. Fax correspondence must be supported by evidence of verbal or written follow-up. ► Development of a wire transfer agreement with the City's bank and third party custodian. This agreement should outline the various controls, security provisions, and delineate responsibilities of each party making and receiving wire transfers. The system of internal controls developed by the City, shall be reviewed annually by the independent auditor in connection with the annual audit of the City's Financial Statements. The independent auditor's letter on internal control over financial reporting and compliance as it pertains to cash and investments, if any, shall be directed to the City Manager who will direct the City Treasurer to provide a written response to the independent auditor's letter. The auditor's letter, as it pertains, to cash and investment activities and the City Treasurer's response shall be provided to the City's Investment Advisory Board for their consideration. Following the completion of each annual audit, the independent auditor shall meet with the Investment Advisory Board and discuss the auditing procedures performed and the review of internal controls for cash and investment activities. See Appendix D, "Segregation of Major Investment Responsibilities." XV REPORTING STANDARDS The City Treasurer shall submit a monthly Treasurers Report to the City Council and the Investment Advisory Board that includes all cash and investments under the authority of the Treasurer. The Treasurer's Report shall summarize cash and investment activity and changes in balances and include the following: ► A certification by the City Treasurer; ► A listing of purchases and sales/maturities of investments; ► Cash and Investments categorized by authorized investments, except for LAIF which will be provided quarterly and show yield and maturity; ► Comparison of month end actual holdings to Investment Policy limitations; ► Current year and prior year monthly history of cash and investments for trend analysis; ► Balance Sheet; ► Distribution of cash and investment balances by fund; ► A year to date historical cash flow analysis and projection for the next six months; 15 91 and ► A two-year list of historical interest rates. XVI FINANCIAL ASSETS AND INVESTMENT ACTIVITY NOT SUBJECT TO THIS POLICY The City's Investment Policy does not apply to the following: ► Cash and Investments raised from Conduit Debt Financing; ► Funds held in trust in the City's name in pension or other post-retirement benefit programs; ► Cash and Investments held in lieu of retention by banks or other financial institutions for construction projects; and ► Short or long term loans made to other entities by the City or Agency, Short term (Due to/from) or long term (Advances from/to) obligations made either between the City and its funds or between the City and Agency. XVII INVESTMENT OF BOND PROCEEDS The City's Investment Policy shall govern bond proceeds and bond reserve fund investments. California Code Section 5922 (d) governs the investment of bond proceeds and reserve funds in accordance with bond indenture provisions which shall be structured in accordance with the City's Investment Policy. Arbitrage Requirement - The US Tax Reform Act of 1986 requires the City to perform arbitrage calculations as required and return excess earnings to the US Treasury from investments of proceeds of bond issues sold after the effective date of this law. These arbitrage calculations may be contracted with an outside source to provide the necessary technical assistance to comply with this regulation. Investable funds subject to the 1986 Tax Reform Act will be kept segregated from other funds and records will be kept in a fashion to facilitate the calculations. The City's investment position relative to the new arbitrage restrictions is to continue pursuing the maximum yield on applicable investments while ensuring the safety of capital and liquidity. It is the City's position to continue maximization of yield and to rebate excess earnings, if necessary. XVIII INVESTMENT ADVISORY BOARD - CITY OF LA QUINTA The Investment Advisory Board (IAB) is a standing board composed of five members from the public that are appointed by the City Council. Background information will be requested and potential candidates must agree to a background check and verification. On an annual basis, in conjunction with the Political Reform Act disclosure statutes, or at any time if a change in circumstances warrants, each board member will provide the City Council with a disclosure statement which identifies any matters that have a bearing on the appropriateness of that member's service on the board. All board members shall report annually to the City Clerk on Form 700, Statement of Economic Interests, any activities, interests, or relationships that may be, or have the appearance of, a conflict of interest. The IAB must meet at least quarterly, but usually meets monthly, to: ► Review at least annually the City's Investment Policy and recommend appropriate 16 92 changes; ► Review monthly treasury report and note compliance with the Investment Policy and adequacy of cash and investments for anticipated obligations; ► Receive and consider other reports provided by the City Treasurer; ► Meet with the independent auditor after completion of the annual audit of the City's financial statements, and receive and consider the auditor's comments on auditing procedures, internal controls and findings for cash and investment activities; and ► Serve as a resource for the City Treasurer on matters such as proposed investments, internal controls, use or change of financial institutions, custodians, brokers and dealers. The IAB will report to the City Council after each meeting either in person or through correspondence at a regular City Council meeting. See Appendix B: "Investment Advisory Board Provisions." XIX INVESTMENT POLICY ADOPTION The City's Investment Policy will be reviewed annually by the City's Investment Advisory Board and the City Treasurer. The Investment Advisory Board will forward the Investment Policy with any revisions to the City Manager and City Attorney for their review and comment. A joint meeting will be held with the Investment Advisory Board, City Manager, City Attorney, and City Treasurer to review the Investment Policy and any comments prior to submission to the City Council for their consideration. The Investment Policy shall be adopted by resolution of the City Council annually before the end of June of each year. 17 93 CITY OF LA QUINTA SUMMARY OF PERMISSIBLE DEPOSITS AND INVESTMENTS Appendix A The City Treasurer will be permitted to invest in the following types of investments subject to the maximum percentage allocation limits and bid process requirements. All maturities must be less than or equal to the maximum maturity allowed. Bid Process Permissible Deposits and Investments City Maximum Allocation (Footnote 1) State Maximum Allocation City Restrictions City Maximum Maturity Credit Quality Surplus Funds 1 Checking & Savings Accounts (FDIC Insured) & Sweep Accounts 85% Portfolio 100% Portfolio Sweep Account: U.S. Treasuries and/or GSE's Current/On Demand FDIC Insured 2 Interest bearing active bank deposits - non FDIC insured collateralized by 110% of eligible securities 60% Portfolio 100% Portfolio $40,000,000 per bank Current /on Demand Non -FDIC Insured I 2 Certificate of Deposit (Negotiable and Non -Negotiable) 360% Portfolio 60 400% Portfolio <_ $250,000 including interest per institution 5 years FDIC Insured I S°3911 309/A2444e 400,6-P� ortfetiio - .. - - - - - - - - - - -• 6 -years FDIC -Insured 3 U.S. Treasury Bills, Notes and Bonds, and Government National Mortgage Association (GNMA) securities 100% Portfolio 100% Portfolio <=$30,0000,000 maturing 3-5 Yrs. 3 years I 3 U.S. Govemment Agency Securities and Federal Government Securities (except collateralized mortgage obligations (CMO's) or structured notes which contain embedded rate options): - Federal National Mortgage Association (FNMA) - Federal Home Loan Bank Notes & Bonds (FHLB) - Federal Farm Credit Bank (FFCB) - Federal Home Loan Mortgage Corporation (FHLMC) Per issuer: 30390% Portfolio 510,000,000 per purchase 5 years 5 years 5 years 5 years $20,000,000 $25,000,000 $30,000,000 $20,000,000 3 Prime Commercial Paper including Temporary Liquidity Guarantee Program (TLGP) 15% Portfolio 25% Portfolio 270 Days $5,000,000 per issuer maximum 90 days S&P (A-1) Moody's (P-1) I 4 Local Agency Investment Fund (LAIF) $50,000,000 30%-Portfalie $50,000,000 per account Current/On Demand 5 Money market mutual funds regulated by the SEC that consist only of US Treasury Securities or GSE's and maintain a par value of $1 per share 20% Portfolio 20% Portfolio Maintain 51 Current / On Demand Rated AAA by 2 of 3 agencies; assets>=$500 million; SEC reg'd >5 Yrs. por share par value Mutual fund must have in excess of $500 million in assets under management 6 Corporate Notes 10% Portfolio 30% Portfolio $5,000,000 max per issuer 3 years S &Prated AA or better 6 Corporate Notes - Temporary Liquidity Guarantee Program (TLGP) 20% Portfolio 30% Portfolio $10,000,000 max per issuer 3 years S&P rated AA or better. 7 Professionally Managed Account 10% Portfolio 100% Portfolio Requires Approved RFP 3 years SEC Reg'd; E&O, Fidelity Insured 8 Local Agency Bonds/Califomia Agency Obligations 100% 30% <=130,000,0000 10 years At least long term "A, A2, A" rating 18 94 Bid Process 2 3 Periodically conduct a bid process at least every four (4) years or sooner if considered necessary for banking and/or custodian services. Since banking services and custodian services are so closely related it is anticipated that the bid process would include the scope of both services. The financial institutions can be either state or federally chartered and must be insured by the Federal Deposit Insurance Corporation (FDIC). At least two bids from broker/dealers that qualify under Securities and Exchange Commission Rule 15C3-1 listed on the "Listing of Approved Financial Institutions" in the appendices. 4 City Council Approval. 5 6 Money Market mutual funds must comply with Govemment Code Section 53601(k). The fund must be registered by the SEC and must include marking the portfolio to market daily. At least two bids from broker/dealers that qualify under Securities and Exchange Commission Rule 15C3-1 listed on the "Listing of Approved Financial Institutions" in the appendices. The professional portfolio management firm (PPMF) will be approved by the City Council based upon the City 7 Treasurer's recommendation pursuant to completion of a request for proposal (RFP) as outlined in the appendices. See also Footnote 2. 8 Footnote 1 Footnote 2 Initial offerings the Treasurer may purchase directly from Bond Underwriter, secondary issues follow bid process 3. Appendix A (continued) Unauthorized Investments The City Treasurer will not be permitted to invest in the following types of investments (see Footnote 2 and "State Code Permitted Deposits And Investments Not Authorized By The CiWs Investment Policy', below). - Repurchase Agreements - Bankers Acceptances - Mutual Funds other than money market mutual funds - Preferred and Common Stock - State Indebtedness - Asset Backed Securities - Reverse Repurchase Agreements - Derivatives The above list of unauthorized deposits and investments is not meant to be all-inclusive. Only those deposits and investments listed in the "Permissible Deposits and Investments" section of the Policy are permissible. The City has imposed a maximum limitation based upon the total portfolio of investments. Total portfolio investments are all cash and investments, including bond proceeds. In addition, the State has adopted limits on the investment of surplus funds. The City may engage the services of a professional portfolio management firm which may invest in Bankers Acceptances, Mutual Funds, and Asset Backed Securities not otherwise permissible under the City's Investment Policy. 19 95 Appendix B Sections: 2.70.010 General rules regarding the investment advisory board. 2.70.020 Number of members. 2.70.030 Qualifications of members. 2.70.040 Powers and duties. 2.70.010 General rules regarding the investment advisory board. A. Except as set out below, see Chapter 2.06 for General Provisions. (Ord. 516 § 5, 2013) B The Investment Advisory Board ("IAB") shall consist of five members appointed by, and serving at the will of the city council. C. Applicants for the board should have a background in finance, preferably with knowledge and/or experience in markets, controls and accounting for securities. Background information wil be requested and potential candidates must agree to a background check and verification. D. On an annual basis, in conjunction with the Political Reform Act disclosure statutes, or at any time if a change in circumstances warrants, each board member will provide the City Council with a disclosure statement which identifies any matters that have a bearing on the appropriateness of that member's service on the board. Such matters may include, but are not limited to, changes in employment, changes in residence, or changes in clients. E. To promote continuity, the expiration of the terms of the members of the board shall be staggered. The term of service is three years, with one or two terms expiring each year. 2.70.020 Number of members. serving The investment advisory board ("IAB") shall consist of five members appointed by, and at the will of the city council. (Ord. 516 § 5, 2013) 2.70.030 Qualifications of members. 2 A. In addition to the qualification requirements set forth in Section 2.06.040, applicants for the IAB should have a verifiable background in finance and/or securities, preferably with knowledge and/or experience in markets, financial controls and accounting for securities. B. Background information will be requested and potential candidates must agree to a background check and verification by the city manager or designee. (Ord. 516 § 5, 2013) 70.040 Powers and duties. A. The principal functions of the IAB are: 1. Review at least annually the city's investment policy and recommend appropriate changes; 2. Review monthly the treasury report and note compliance with the investment policy and adequacy of cash and investments for anticipated obligations; 3. Receive and consider other reports provided by the city treasurer; 20 96 4. Meet with the independent auditor after completion of the annual audit of the city's financial statements, and receive and consider the auditor's comments on auditing procedures, internal controls, and findings for cash and investment activities; and 5. Serve as a resource for the city treasurer on matters such as proposed investments, internal controls, use of change or change of financial institutions, custodians, brokers and dealers. B. The IAB will report to the city council after each meeting either in person or through correspondence at a regular city council meeting. (Ord. 516 § 5, 2013) 21 97 Sectio 2.70.010 2.70.020 2.70.030 City of La Quinta Municipal Codc Chaptcr 2.70 _ e • t' . 1 • \ • • . _ e , _ General Rules Regarding Appointment. Board Meetings. Board Functions. 2.70.010 General rules regarding appointmcnt A. Exccpt as sct out below, ccc Chaptcr 2.06 for Gcncral Provisions. B The Investment Advisory Board (the"board") is a standing board composed of five (5) members from the public that are appointed by city council. C. Applicants for the board should have a background in finance, preferably with knowledge and/ r experience in markets, controls and accounting for securities. Background information will be requested and potential candidates must agree to a background check and verification. D. On an annual basis, in conjunction with thc Political Rcform Act disclosure statutcs, or a -t any timc if a changc in circumstanccs warrants, ach board member will providc thc City Coune+4 with a dicclosurc statcmcnt which idcntifics any mattcrs that havc a b aring on the appr priatcncss of that mcmbcr's ccrvicc on the board. Such mattcrs may includc, but arc not limited to, changcs in employment, changcs in residence, or changes in clients. E. To promote continuity, the expiration of the terms of thc members of thc board shall be staggered. The term of service is three years, with one or two terms expiring each year. 2.70.020 Board meetings. Thc Board usually will meet monthly, but this schedule may bc extended to quarterly meetings upon thc concurrcncc of thc Board and thc City Council. Thc specific mccting dates -w -ill bc determined by the Board Mcmbcrs and meetings may bc called for on an as needed basis. 2.70.030 Board functions. A. The principal functions of the Board are: (1) review at least annually the City's Investment Policy and recommend appropriate changes; (2) review monthly Treasury Report and note compliance with the Investment Policy and adequacy of cash and investments for anticipated obligations; (3) rcccivc and consider other reports providcd by thc City Treasurer; (11) meet with the independent auditor after completion of the annual audit of the City's financial statemcnts,-aad receive and consider thc auditor's comments on auditing procedures, intcrnal controls, and finding -s for cash and investment activities, and; (5) servo as a rcsourcc for the City Tr aeurcr on matter -s such as proposed invcstmcnts, intcrnal controls, use or changc of financial institutions, custodians, brokers and d alcrs. B The Board will report to thc City Council after ach mccting either in person or through correspondence at a regular City Council meeting. 22 98 Appendix C City of La Quinta Municipal Code Chapter 3.08 INVESTMENT OF MONEYS AND FUNDS Sections: 3.08.010 Investment of city moneys and deposit of securities. 3.08.020 Authorized investments. 3.08.030 Sales of securities. 3.08.040 City bonds. 3.08.050 Reports. 3.08.060 Deposits of securities. 3.08.070 Trust fund administration. 3.08.010 Investment of city moneys and deposit of securities. Pursuant to, and in accordance with, and to the extent allowed by, Sections 53607 and 53608 of the Government Code, the authority to invest and reinvest moneys of the city, to sell or exchange securities, and to deposit them and provide for their safekeeping, is delegated to the city treasurer. (Ord. 2 § 1 (part), 1982) 3.08.020 Authorized investments. Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized to purchase, at their original sale or after they have been issued, securities which are permissible investments under any provision of state law relating to the investing of general city funds, including but not limited to Sections 53601 and 53635 of the Government Code, as said sections now read or may hereafter be amended, from moneys in his custody which are not required for the immediate necessities of the city and as he may deem wise and expedient, and to sell or exchange for other eligible securities and reinvest the proceeds of the securities so purchased. (Ord. 2 § 1 (part), 1982) 3.08.030 Sales of Securities. From time to time the city treasurer shall sell the securities in which city moneys have been invested pursuant to this chapter, so that the proceeds may, as appropriate, be applied to the purchase for which the original purchase money may have been designated or placed in the city treasury. (Ord.2 § I (part), 3.08.040 City bonds. Bonds issued by the city and purchased pursuant to this chapter may be cancelled either in satisfaction of sinking fund obligations or otherwise if proper and appropriate; provided, however, that the bonds may be held uncancelled and while so held may be resold. (Ord. 2 § 1 (part), 1982) 23 99 3.08.050 Reports. The city treasurer shall make a monthly report to the city council of all investments made pursuant to the authority delegated in this chapter. (Ord. 2 § 1 (part), 1982) 3.08.060 Deposits of securities. Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized to deposit for safekeeping, the securities in which city moneys have been invested pursuant to this chapter, in any institution or depository authorized by the terms of any state law, including but not limited to Section 53608 of the Government Code as it now reads or may hereafter be amended. In accordance with said section, the city treasurer shall take from the institution or depository a receipt for the securities so deposited and shall not be responsible for the securities delivered to and receipted for by the institution or depository until they are withdrawn therefrom by the city treasurer. (Ord. 2 § 1 (part), 1982) 3.08.070 Trust fund administration. Any departmental trust fund established by the city council pursuant to Section 36523 of the Government Code shall be administered by the city treasurer in accordance with Section 36523 and 26524 of the Government code and any other applicable provisions of law. (Ord. 2 § 1 (part), 1982) 24 100 Appendix D SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES Function Responsible Parties Develop and Recommend Modifications Investment Advisory Board to City's Formal Investment Policy and City Treasurer Review City's Investment Policy and Recommend City Council Action City Manager and City Attorney Adopt Formal Investment Policy City Council Implement Formal Investment Policy City Treasurer Review Financial Institutions & Select Investments City Treasurer Acknowledge Investment Selections City Manager or his/her designee Execute Investment transactions City Treasurer or City Manager Confirm Wires (if applicable) Accounting Manager or Financial Services Assistant Record Investment Transactions in City's Accounting Manager or Accounting Records Financial Services Assistant Investment Verification (match broker confirmation City Treasurer and Financial to City investment records) Services Assistant Reconcile Investment Records to Accounting Records and Bank Statements Financial Services Assistant Reconcile Investment Records to Treasurers Report of Investments Accounting Manager Security of Investments at City Accounting Manager or Senior Secretary Security of Investments outside City Third Party Custodian Review Internal Control Procedures External Auditor 25 101 Appendix E LISTING OF APPROVED FINANCIAL INSTITUTIONS 1. Banking Services - Wells Fargo Bank, Government Services, Los Angeles, CA (Banking Services) Rabobank N.A., Government Banking Group, Roseville, CA (Collateralized Bank Deposits) 2. Custodian Services - Bank of New York/Mellon 3. Deferred Compensation - International City/County Management Association Retirement Corporation 4. Broker/Dealer Services 5. Government Pool 6. Bond Trustees Banc of America Securities/Merrill Lynch Morgan Stanley CitiGroup First Empire Securities State of California Local Agency Investment Fund 1996 Lease Revenue Bonds — US Bank 1998 RDA Project Area 1 &2 — US Bank 2001 RDA Project Area 1 — US Bank 2002 RDA Project Area 1 — US Bank 2003 RDA Project Area 1 — US Bank 2004 Local Agency Rev — US Bank 2011 RDA Project Area 2 — US Bank 2011 Fin Auth Housing 1 &2 — US Bank 2013 Successor Agency — US Bank Assessment Districts — US Bank No Changes to this listing may be made without City Council approval 26 102 BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION 1. Name of Firm: 2. Address: 3. Telephone: ( ) Appendix F 4. Broker's Representative to the City (attach resume): Name: Title: Telephone: ( 5. Manager/Partner-in-charge (attach resume): Name: Title: Telephone: 6. List all personnel who will be trading with or quoting securities to City employees (attach resume) Name: Title: Telephone: ( ) ( ) 7. Which of the above personnel have read the City's Investment Policy? 8. Which instruments are offered regularly by your local office? (Must equal 100%) % U.S. Treasuries % BA's % Commercial Paper % CD's % Mutual Funds % Agencies (specify): % Repos % Reverse Repos % CMO's % Derivatives % Stocks/Equities % Other (specify): 9. References -- Please identify your most directly comparable public sector clients in our geographical area. Entity Entity Contact Contact 27 103 Telephone ( ) Telephone ( ) Client Since Client Since 10. Have any of your clients ever sustained a loss on a securities transaction arising from a misunderstanding or misrepresentation of the risk characteristics of the instrument? If so, explain. Has your firm or your local office ever been subject to a regulatory or state/ federal agency investigation for alleged improper, fraudulent, disreputable or unfair activities related to the sale of securities? Have any of your employees been so investigated? If so, explain. 12. Has a client ever claimed in writing that you were responsible for an investment loss? Yes No If yes, please provide action taken Has a client ever claimed in writing that your firm was responsible for an investment loss? Yes No If yes, please provide action taken Do you have any current or pending complaints that are unreported to FINRA? Yes No If yes, please provide action taken Does your firm have any current, or pending complaints that are unreported to FINRA? Yes No If yes, please provide action taken 1 3. Explain your clearing and safekeeping procedures, custody and delivery process. Who audits these fiduciary responsibilities? Latest Audit Report Date 28 104 14. How many and what percentage of your transactions failed? Last month? % $ Last year? % $ 1 5. Describe the method your firm would use to establish capital trading limits for the City of La Quinta. 16. Is your firm a member in the S.I.P.C. insurance program? Yes No If yes, explain primary and excess coverage and carriers. 1 7. What portfolio information, if any, do you require from your clients? 18. What reports and transaction confirmations or any other research publications will the City receive? 19. Does your firm offer investment training to your clients? Yes No 20. Does your firm have professional liability insurance? Yes If yes, please provide the insurance carrier, limits and expiration date. No 21. Please list your FINRA/NASD Registration Number 22. Do you have any relatives who work at the City of La Quinta? Yes No If yes, Name and Department 23. Do you maintain an office in California? Yes No 24. Do you maintain an office in La Quinta or Riverside County? Yes No 25. Please enclose the following: ► Latest audited financial statements; ► Samples of reports, transaction confirmations and any other research/publications the City will receive; ► Samples of research reports and/or publications that your firm regularly provides to clients; and ► Complete schedule of fees and charges for various transactions. 29 105 *CERTIFICATION* I hereby certify that I have personally read the Statement of Investment Policy of the City of La Quinta, and have implemented reasonable procedures and a system of controls designed to preclude imprudent investment activities arising out of transactions conducted between our firm and the City of La Quinta. All sales personnel will be routinely informed of the City's investment objectives, horizons, outlooks, strategies and risk constraints whenever we are so advised by the City. We pledge to exercise due diligence in informing the City of La Quinta of all foreseeable risks associated with financial transactions conducted with our firm. By signing this document the City of La Quinta is authorized to conduct any and all background checks. Under penalties of perjury, the responses to this questionnaire are true and accurate to the best of my knowledge. Broker Representative Date Title Sales Manager and/or Managing Partner* Date Title 30 106 Appendix G Request for Proposals Professional Portfolio Management Firm City of La Quinta, CA The City of La Quinta, CA is soliciting Requests for Proposals (RFP) from interested firms for the provision of a discretionary investment management services for City of La Quinta, CA. The portfolio to be managed of the invested assets is will be approximately 10% of the City's investment portfolio and will be invested between 0 — 3 years. The investment of City of La Quinta, CA's funds is guided by the applicable State statutes and the City of La Quinta, CA's investment policy. A copy of the investment policy is attached for your information. Questions regarding this RFP should be directed to: Name: Rita Conrad Title: Finance Director/Treasurer City of: La Quinta, CA Address: 78-495 Calle Tampico City, State, Zip Code: La Quinta, CA 92253 Phone Number: (760)777-7150 I. CRITERIA FOR EVALUATION AND SELECTION ■ Experience of the firm in providing services to public sector entities of similar size and with similar investment objectives; ■ Professional experience and qualifications of the individuals assigned to the account; ■ Portfolio management resources, investment philosophy and approach; ■ Responsiveness to the RFP, communicating an understanding of the overall program and services required; ■ Reporting capabilities; ■ Fees. II. SELECTION TIMETABLE A. [Month, Day and Year] Proposals due by [Time] PST. B. [Month, Day and Year] Proposals evaluated: to be determined C. [Month, Day and Year] [City of La Quinta, CA] [Board/Council] approves selection and awards contract. III. FORMAT FOR PROPOSALS Please format your response to this RFP in the following manner: A. Organization 31 107 1. Describe your organization, date founded, ownership and other business affiliations. Provide number and location of affiliated offices. Specify the number of years your organization has provided investment management service. 2. Describe your firm's revenue sources (e.g., investment management, institutional research, etc.) and comment on your firm's financial condition. 3. Within the past three years, have there been any significant developments in your organization (e.g., changes in ownership, new business ventures)? Do you expect any changes in the near future? 4. Describe any U.S. Securities and Exchange Commission (SEC) censures or litigation involving your organization, any officer, or employee at any time in the last ten years. 5. Describe the firm's fiduciary liability and/or errors and omissions insurance coverage. Include dollar amount of coverage. B. Personnel 1. Identify the number of professionals employed by your firm by classification. 2. Provide an organization chart showing function, positions, and titles of all the professionals in your organization. 3. Provide biographical information on investment professionals that will be involved in the decision-making process for our portfolio, including number of years at your firm. Identify the person who will be the primary portfolio manager assigned to the account. 4. Describe your firm's compensation policies for investment professionals and address any incentive compensation programs. C. Assets Under Management 1. Summarize your institutional investment management asset totals by category for your latest reporting period in the following table: Number of Clients Operating Funds Number of Clients Other Restrictive Funds Governmental $ $ Governmental Pension $ N/A N/A Non Governmental N/A N/A Pension 32 108 Corporate $ N/A N/A High Net Worth Client $ N/A N/A Endowmental/Foun- dation $ N/A N/A 2. Provide the number of separate accounts whose portfolios consist of operating funds. 3. List in the following table the percentage by market value of aggregate assets under all governmental accounts under management for your latest reporting period: Type of Asset U.S. Treasury securities Federal Agency obligations Corporate securities rated AAA -AA Corporate securities rated A Corporate securities rated BBB or lower Other (specify Percent by Market Value 4. Describe the procedures that your firm has in place to address the potential or actual credit downgrade of an issuer and to disclose and advise a client of the situation. 5. Provide data on account/asset growth over the past five years. Indicate the number of government accounts gained and the number of government accounts lost. 6. List your five governmental largest clients. Identify those that are exclusively operating fund relationships and/or those that are other relationships (e.g., bond fund, retirement fund). 7. Provide a copy of the firm's Form ADV, Parts I and II (including all schedules). 8. Provide proof of State of California Registration, if your firm is not eligible for SEC registration. 9. Provide a sample contract for services. 33 109 D. Philosophy/Approach 1. Describe your firm's investment philosophy for public clients, including your firm's philosophy regarding average duration, maturity, investment types, credit quality, and yield. 2. Describe in detail your investment process, as you would apply it to City of La Quinta, CA's portfolio. 3. What are the primary strategies for adding value to portfolios? 4. Describe the process you would recommend for establishing the investment objectives and constraints for this account. 5. Describe in detail your process of credit risk management, including how you analyze credit quality, monitor credits on an ongoing basis, and report credit to governmental accounts. 6. Describe your firm's trading methodology. 7. Describe your firm's decision-making process in terms of structure, committees, membership, meeting frequency, responsibilities, integration of research ideas, and portfolio management. 8. Describe your research capabilities as they would pertain to governmental accounts. What types of analysis do you use? 9. Describe the firm's approach to managing relationships with the broker-dealer community. E. Portfolio Management 1. Are portfolios managed by teams or by one individual? 2. What is the average number of accounts handled per manager? 3. Which professional staff member will be the primary client contact for City of La Quinta, CA? 4. How frequently are you willing to meet with us? 5. Describe procedures used to ensure that portfolios comply with client investment objectives, policies, and bond resolutions. F. Fees Charged 1. Please include a copy of your firm's fee schedule applicable to this RFP. 2. Identify any expenses that would not be covered through this fee structure and would be required in order to implement the firm's program. 34 110 3. Is there a minimum annual fee? G. Performance Reporting 1. Please report on all accounts under $100 million. 2. Please provide performance history for governmental accounts for the last five years. 3. Please provide risk measurements for governmental accounts for the last five years. 4. Indicate whether your returns are calculated and compiled in accordance with the Association for Investment Management and Research (AIMR/CFA Institute) standards. 5. Do your reports conform to the State of California reporting standards? Are you willing to customize your reports to meet our specifications? 6. How will you notify us of investment transactions? 7. Are confirmations of investment transactions sent directly by the broker/dealer to the client? 8. Do your reports include rating information on investments which is required by GASB 40? H. References Provide a list of at least five (5) client references in California. References should be public agencies with portfolio size and investment objectives similar to City of La Quinta, CA. Include length of time managing the assets, contact name, and phone number. 1. Insurance Requirements Exhibit A defines the insurance requirements that will need to be met prior to the [Board/Council]'s approval of any agreement for services. J. Submittal of proposals 1. Seven (7) copies of the proposal shall be submitted in a sealed envelope bearing the caption RFP for (City of La Quinta, CA) and addressed to: City of La Quinta, CA 78-495 Calle Tampico La Quinta, CA 92253 Attention: Rita Conrad, Finance Director/Treasurer 35 111 2. Proposal must be received no later than [Time] PST on [Month, Day, and Year]. 3. Proposals should be verified before submission. The City of La Quinta, CA shall not be responsible for errors or omissions on the part of the respondent in preparation of a proposal. The City of La Quinta, CA reserves the right to reject any and all proposals, to wave any irregularities, or informalities in the proposals, and to negotiate modifications to any proposal. Enclosures: Investment Policy Treasurers Report 36 112 City of La Quinta Permissible Investment Chart - Professional Portfolio Management Firm (1) (2) (3) (4) (5) (6) (7) Appendix H (8) California Government Code Section Investment Category Maximum Maturity Authorized Investment Limits (% of Portfolio) Credit Rating Limits Comments Allowed per City Policy Allowed per Professional Portfolio Management Firm 53601(a) Local Agency Bonds 5 Years None None No No 53601(c) State of California Obligations 5 Years None None No No 53601(d) CA Local Agency Obligations 5 Years None Multiple No No 53601(1) Repurchase Agreements 1 Year None None No No 53601(1) Reverse Repurchase Agreements 92 Days 20% of the base value of the portfolio None No No 53601(i) Securities Lending Agreements 92 Days 20% of the base value of the portfolio None No No 53684 County Pooled Investments None None None No No 53632 Interest bearing active deposits None None None Collateralized 110% Yes Yes 53601(f) Bankers Acceptances 180 Days 40% None "AA" or better No Yes 53601(h) Negotiable CD's 5 Years 30% None Yes Yes 53601(k) Mutual Funds None 20% Multiple No Yes 53601(n) Asset Backed Securities 5 Years 20% AA No Yes Cash and Equivalents None None None Yes Yes 16429.1 LAIF None None None Yes No 53601(b) US Treasuries 5 Years None None Yes Yes 53601(e) US Agencies 5 Years None None Yes Yes 53601(9), 53635 Commercial Paper 270 Days 25% of portfolio A-1 / P-1 / F-1 Yes Yes 53601(k) Medium Term Notes 5 Years 30% A Yes Yes Money Market Mutual Funds None 20% Multiple Yes Yes 53601(m) Time Deposits 5 Years None None Yes Yes Collateralized Bank Deposits (including non-negotiable CD's) 5 Years None None Yes Yes Source of Columns (1) through (5) - Investment: Investment Portfolio Reporting Practices CA Debt and Investment Advisory Commission. Note: The Professional Portfolio management Firm (PPMF) is not required to adhere to the City's buy and hold policy and does not need City Manager or City Treasurer approval to make permissible deposits and investments as detailed in column (8). 37 113 Appendix 1 Investment Management Process and Risk Except as provided for in Section 27000.3, Government Code Section 53600.3 declares as a trustee each person, treasurer, or governing body authorized to make investment decisions on behalf of local agencies. As trustees are subject to the prudent investor standard. These persons shall act with care, skill, prudence, and diligence under the circumstances then prevailing when investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing funds. Section 53600.5 further stipulates that the primary objective of any person investing public funds is to safeguard principal; secondly, to meet liquidity needs of the depositor; and lastly, to achieve a return or yield on invested funds (Government Code Section 27000.5 specifies the same objectives for county treasurers and board of supervisors). Risk is inherent throughout the investment process. There is investment risk associated with any investment activity and opportunity risk related to inactivity. Market risk is derived from exposure to overall changes in the general level of interest rates while credit risk is the risk of loss due to the failure of the insurer of a security. The market value of a security varies inversely with the level of interest rates. If an investor is required to sell an investment with a five percent yield in a comparable seven percent rate environment, that security will be sold at a loss. The magnitude of that loss will depend on the amount of time until maturity. Purchasing certain allowable securities with a maturity of greater than five years requires approval of the governing board (see Government Code Section 53601). Part of that approval process involves assessing and disclosing the risk and possible volatility of longer-term investments Another element of market risk is liquidity risk. Instruments with unique call features or special structures, or those issued by little known companies, are examples of "story bonds" and are often thinly traded. Their uniqueness often makes finding prospective buyers in a secondary market more difficult and, consequently, the securities' marketability and price are discounted. However, under certain market conditions, gains are also possible with these types of securities. Default risk represents the possibility that the borrower may be unable to repay the obligation as scheduled. Generally, securities issued by the federal government and its agencies are considered the most secure, while securities issued by private corporations or negotiable certificates of deposit issued by commercial banks have a greater degree of risk. Securities with additional credit enhancements, such as bankers acceptances, collateralized repurchase agreements and collateralized bank deposits are somewhere between the two on the risk spectrum. The vast majority of portfolios are managed within a buy and hold policy. Investments are purchased with the intent and capacity to hold that security until maturity. At times, market forces or operations may dictate swapping one security for another or selling a security before maturity. Continuous analysis and fine tuning of the investment portfolio are considered prudent investment management. The Government Code contains specific provisions regarding the types of investments and practices permitted after considering the broad requirement of preserving principal and maintaining liquidity before seeking yield. These provisions are intended to promote the use of reliable, diverse, and safe investment instruments to better ensure a prudently managed portfolio worthy of public trust. Chapter II. Fund Management Local Agency Investment Guidelines 2010 Issued by California Debt and Investment Advisory Commission 38 114 Appendix J GLOSSARY (Adopted from the Municipal Treasurers Association) The purpose of this glossary is to provide the reader of the City of La Quinta investment policies with a better understanding of financial terms used in municipal investing. AGENCIES: Federal agency securities and/or introductory material, and a detailed Statistical Government-sponsored enterprises. Section. ASKED: The price at which securities are offered. BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer. BROKER: A broker brings buyers and sellers together for a commission. CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large -denomination CD's are typically negotiable. COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMMERCIAL PAPER: Short-term unsecured promissory notes issued by a corporation to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation, IBM, Bank America, etc. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the City of La Quinta. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance -related legal and contractual provisions, extensive 39 CONDUIT FINANCING: A form of Financing in which a government or a government agency lends its name to a bond issue, although it is acting only as a conduit between a specific project and bond holders. The bond holders can look only to the revenues from the project being financed for repayment and not to the government or agency whose name appears on the bond. COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities). DISCOUNT: The difference between the cost price of a security and its maturity when quoted at 115 lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount. DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued a discount and redeemed at maturity for full face value, e.g., U.S. Treasury Bills. DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L's, small business firms, students, farmers, farm cooperatives, and exporters. 1. FNMAs (Federal National Mortgage Association) - Like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder -owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. 2. FHLBs (Federal Home Loan Bank Notes and Bonds) - Issued by the Federal Home Loan Bank System to help finance the housing industry. The notes and bonds provide liquidity and home mortgage credit to savings and loan associations, mutual savings banks, cooperative banks, insurance companies, and mortgage -lending institutions. They are issued irregularly for various maturities. The minimum denomination is $5,000. The notes are issued with maturities of less than one year and interest is paid at maturity. 40 3. FLBs (Federal Land Bank Bonds) - Long-term mortgage credit provided to farmers by Federal Land Banks. These bonds are issued at irregular times for various maturities ranging from a few months to ten years. The minimum denomination is $1,000. They carry semi-annual coupons. Interest is calculated on a 360 -day, 30 day month basis. 4. FFCBs (Federal Farm Credit Bank) - Debt instruments used to finance the short and intermediate term needs of farmers and the national agricultural industry. They are issued monthly with three- and six-month maturities. The FFCB issues larger issues (one to ten year) on a periodic basis. These issues are highly liquid. 5. FICBs (Federal Intermediate Credit Bank Debentures) - Loans to lending institutions used to finance the short-term and intermediate needs of farmers, such as seasonal production. They are usually issued monthly in minimum denominations of $3,000 with a nine-month maturity. Interest is payable at maturity and is calculated on a 360 - day, 30 -day month basis. 6. FHLMCs (Federal Home Loan Mortgage Corporation) - a government sponsored entity established in 1970 to provide a secondary market for conventional home mortgages. Mortgages are purchased solely from the Federal Home Loan Bank System member lending institutions whose deposits are insured by agencies of the United States Government. They are issued for various maturities and in minimum denominations of $10,000. Principal and interest is paid monthly. Other federal agency issues are Small Business Administration notes (SBA's), Government National Mortgage Association notes (GNMA's), Tennessee Valley Authority notes (TVA's), and Student Loan Association notes (SALLIE-MAE's)• FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit through December 31, 2013. 116 FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open - market operations. FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks (currently 12 regional banks) which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district Bank. FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FMHM mortgages. The term "pass-throughs" is often used to describe Ginnie Maes. LAIF (Local Agency Investment Fund) - A special fund in the State Treasury which local agencies may use to deposit funds for investment. There is no minimum investment period and the minimum transaction is $5,000, in multiples of $1 ,000 above that, with a maximum balance of 41 $50,000,000 for any agency. The City is restricted to a maximum of ten transactions per month. It offers high liquidity because deposits can be converted to cash in 24 hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share basis determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly. The State retains an amount for reasonable costs of making the investments, not to exceed one-half of one percent of the earnings. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase --reverse repurchase agreements that establishes each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer -lender to liquidate the underlying securities in the event of default by the seller -borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded. OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid. OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve 117 Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool. PORTFOLIO: Collection of all cash and securities under the direction of the City Treasurer, including Bond Proceeds. PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) -registered securities broker-dealers, banks and a few unregulated firms. QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is increasing bank reserves. REVERSE REPURCHASE AGREEMENTS (RRP or RevRepo) - A holder of securities sells these securities to an investor with an agreement to 42 repurchase them at a fixed price on a fixed date. The security"buyer" in effect lends the"seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RRP extensively to finance their positions. Exception: When the Fed is said to be doing RRP, it is lending money that is increasing bank reserves. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See Uniform Net Capital Rule. STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, SLMA, etc.) and Corporations which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, and derivative - based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve. SURPLUS FUNDS: Section 53601 of the California Government Code defines surplus funds as any money not required for immediate necessities of the local agency. The City has defined immediate necessities to be payment due within one week. TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months or one year. TREASURY BONDS: Long-term coupon -bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years. 118 TREASURY NOTES: Medium-term coupon -bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. UNIFORM PRUDENT INVESTOR ACT: The State of California has adopted this Act. The Act contains the following sections: duty of care, diversification, review of assets, costs, compliance determinations, delegation of investments, terms of prudent investor rule, and application. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. 43 119 120 CONSENT CALENDAR 1 TEM NO. Qty of La Quinta aTYcou a L MEETI NG: June 7,2016 STAFF REPORT AGENDA TI TLE: APPROVE DEMAND REGI STERS DATED MAY 13 AND MAY 20, 2016. RECOM M EN DATI ON Approve demand registers dated May 13 and May 20, 2016. EXECUTI VE SUMMARY None FI SCAL I M PACT Demand of Cash: Qty $ 835,762.11 Successor Agency of RDA $ 4,096.00 Housing Authority $ 466.45 Housing Authority Commission $ 0.00 $ 840,324.56 BACKGROUND/ AN ALYSI S Between Qty Council meetings, routine bills and payroll must be paid. Attachment 1 details the weekly demand registers from May 13 through May 20, 2016. Warrants I ssued: 111043 - 111113} $ 144,315.91 111114 - 111196} $ 290,226.07 Voids} $ (31.96) Wire Transfers} $ 210,726.64 P/RDirect Deposit} $ 156,407.28 Payroll Tax Transfers} $ 38,680.62 $ 840,324.56 In the amounts listed above, seven checks were voided. Check Nos. 105042, 105821, 105981, 106165, 106315, 106912, and 107019 were all stale dated checks. Per outstanding/stale check policy, any individual items of less than fifteen dollars, which remain unclaimed for a period of one year, shall be voided. 121 The most significant expenditures on the demand registers listed above are as follows: Vendor: Account Name: Amount: Purpose: Rutan & Tucker Various $ 43,880.35 Mar -Legal Services JAS Pacific Inc. R-ofessional Svc. $ 40,735.50 Dec -Apr Building Ran Checks Studio EArchitects Design arc $ 37,829.47 Washington Apts. Design Services Conserve Landcare Various $ 37,080.00 May -Landscaping Services Wire Transfers: Six wire transfers totaled $210,726.64. Of this amount, $167,506.21 was to Landmark for golf course management, and $34,291.91 to CaIPERSfor retirement costs. (See Attachment 2 for a full listing). ALTERNATI V Council may approve, partially approve, or reject the demand registers. Prepared by: Derrick Armendariz, Account Technician Approved by: Iota Conrad, Finance Director Attachment: 1. Demand Registers 2. Wire Transfers 122 Vendor Name City of La Quinta, CA Fund: 101- GENERAL FUND 2XL CORPORATION 4IMPRINT ADOM VENTURES AMERICAN FORENSIC NURSE ANSAFONE CONTACT CENTE ARMENDARIZ, DERRICK AYON, UBALDO BELYEA, JOHN BIO-TOX LABORATORIES BIO-TOX LABORATORIES BIO-TOX LABORATORIES CALIFORNIA ASSOC OF CODE CLASSIC AUTO TRANSPORT CLASSIC AUTO TRANSPORT CONSERVE LANDCARE CONSERVE LANDCARE DATA TICKET, INC. DESERT C A M DESIGN BY TRICIA WALKER DUENAS, DANIEL EMPLOYMENT DEVELOPMEN FOSTER, BRUCE & SUSAN FOSTER, BRUCE & SUSAN FOSTER, BRUCE & SUSAN FOSTER, BRUCE & SUSAN FOSTER, BRUCE & SUSAN FOSTER, BRUCE & SUSAN FOSTER, BRUCE & SUSAN FOSTER, BRUCE & SUSAN FOSTER, BRUCE & SUSAN FRONTIER -INTERNET GALLS LLC GARDAWORLD GOLDEN TOUCH CLEANING I GOLDEN TOUCH CLEANING I GOLDEN TOUCH CLEANING I HENSON CONSULTING GROU HERMANN DESIGN GROUP I HERMANN DESIGN GROUP I HONDA YAMAHA OF REDLA IMPERIAL IRRIGATION DIST IMPERIAL IRRIGATION DIST IMPERIAL IRRIGATION DIST IMPERIAL IRRIGATION DIST IMPERIAL IRRIGATION DIST IMPERIAL IRRIGATION DIST IMPERIAL IRRIGATION DIST IMPERIAL IRRIGATION DIST IMPERIAL IRRIGATION DIST INTEGRITY INSPECTION INC JOHNSTON, ALEXANDER KRIBBS, BRUCE LA QUINTA FARMS LLC Payment Number 111043 111044 111045 111046 111047 111048 111050 111052 111053 111053 111053 111054 111055 111055 111056 111056 111057 111058 111060 111061 111062 111065 111065 111065 111065 111065 111065 111065 111065 111065 111067 111068 111069 111070 111070 111070 111071 111072 111072 111074 111075 111075 111075 111075 111075 111075 111075 111075 111075 111076 111078 111080 111081 Payment Date 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 ATTACHMENT 1 Demand Register Packet: APPKT00731 - DA 5/13/16 Description (Payable) WC GYM WIPES PROMOTIONAL ITEMS 14-019 DEV DEP BLOOD ALCOHOL TESTING ANSWERING SERVICE FITNESS REIMB TRAVEL REIMB REFUND OVERPAYMENT BLOOD ALCOHOL TESTING BLOOD ALCOHOL TESTING BLOOD ALCOHOL TESTING CACEO CERTIFICATIONS TOWING '05 MAZDA TOWING '04 TOYOTA FB PARK MAIN LINE REPAIR CITY HALL NEW PLANTS MAR- ADMIN CITATION SVC COUNCIL MEETING 5/3/16 REFUND OVERPAYMENT CLASS REFUND SUI PYMTQ/E 3/31/16 REFUND OVERPAYMENT REFUND OVERPAYMENT REFUND OVERPAYMENT REFUND OVERPAYMENT REFUND OVERPAYMENT REFUND OVERPAYMENT REFUND OVERPAYMENT REFUND OVERPAYMENT REFUND OVERPAYMENT INTERNET SVC 4/10-5/09 CODE UNIFORMS MAY- ARMORED TRANSPORT APR- JANITORIAL MAINT APR- JANITORIAL MAINT APR- JANITORIAL MAINT APR- CONSULTING SVC DESIGN- AUTO CENTER DESIGN- NORTH LQ LANDSC HONDA REPAIRS ELECTRICAL SERVICE ELECTRICAL SERVICE ELECTRICAL SERVICE ELECTRICAL SERVICE ELECTRICAL SERVICE ELECTRICAL SERVICE ELECTRICAL SERVICE ELECTRICAL SERVICE ELECTRICAL SERVICE REFUND OVERPAYMENT TRAVEL REIMB ELECTRICAL SERVICE APR-PM10 DUST CONTROL Account Number 101-3002-60420 101-2001-60109 101-0000-22810 101-2001-36310 101-7006-60104 101-1004-60104 101-7006-60320 101-0000-42300 101-2001-36310 101-2001-36310 101-2001-36310 101-6004-60320 101-2001-60176 101-2001-60176 101-3005-60424 101-3005-60113 101-6004-61190 101-3008-60108 101-0000-41600 101-0000-42200 101-1004-50244 101-0000-42300 101-0000-42300 101-0000-42300 101-0000-42300 101-0000-42300 101-0000-42300 101-0000-42300 101-0000-42300 101-0000-42300 101-1007-61300 101-6004-60690 101-1006-60103 101-3002-60115 101-3005-60115 101-3008-60115 101-1002-60101 101-1002-60101 101-7006-60104 101-2001-71031 101-2002-61101 101-3005-61102 101-3005-61104 101-3005-61108 101-3005-61109 101-3005-61110 101-3005-61111 101-3005-61113 101-3005-61114 101-0000-42300 101-2002-60320 101-3008-60691 101-7006-60146 Amount 655.91 2,175.52 10,000.00 140.00 129.99 40.00 258.31 9.62 380.80 735.00 39.00 75.00 170.00 170.00 319.00 42.25 767.10 183.75 6.00 50.00 1,636.00 4.68 19.83 9.00 3.82 7.69 11.59 5.97 7.87 40.08 89.99 244.59 101.03 1,795.00 600.00 3,540.00 4,900.00 4,399.20 372.50 90.59 702.77 12.34 36.50 439.38 2,411.24 57.21 15.79 20.39 13.48 15.00 381.05 150.00 23,049.24 5/12/2016 7:17:08 PM Page 1 of 5 123 Demand Register Packet: APPKT00731 - DA 5/13/16 Vendor Name LIGHT SOURCE LOWE'S HOME IMPROVEME LOWE'S HOME IMPROVEME LOWE'S HOME IMPROVEME LOWE'S HOME IMPROVEME LOWE'S HOME IMPROVEME LOWE'S HOME IMPROVEME LOWE'S HOME IMPROVEME LOWE'S HOME IMPROVEME LOWE'S HOME IMPROVEME LOWE'S HOME IMPROVEME LOWE'S HOME IMPROVEME LOWE'S HOME IMPROVEME LOWE'S HOME IMPROVEME LOWE'S HOME IMPROVEME MOYA, DANIEL MSA SYSTEMS INC OFFICE DEPOT OLD TOWN LA QUINTA, LLC PALM SPRINGS DESERT RESO PLUG & PAY TECHNOLOGIES I RICHARD OLSSON RJW NOTARY PUBLIC RODRIGUEZ, ERIKA SHARK POOLS INC SHARK POOLS INC SHARK POOLS INC SHARK POOLS INC SHOVE, TED SHRED -IT USA - SAN BERNAD STAPLES ADVANTAGE STAPLES ADVANTAGE STAPLES ADVANTAGE STAPLES ADVANTAGE STAPLES ADVANTAGE STAPLES ADVANTAGE STRATUM LANDSCAPE CONT STUDIOCARPRARO.COM TELEPACIFIC COMMUNICATI TELEPACIFIC COMMUNICATI TELEPACIFIC COMMUNICATI TELEPACIFIC COMMUNICATI TELEPACIFIC COMMUNICATI TELEPACIFIC COMMUNICATI TELEPACIFIC COMMUNICATI TELEPACIFIC COMMUNICATI TERRA NOVA PLANNING & R TESTA DURA PIC LLC TUCKERS FAMILY RESTAURA VERIZON WIRELESS VERIZON WIRELESS Fund: 201- GAS TAX FUND FASTENAL COMPANY JOHNSON MACHINERY CO. JOHNSON MACHINERY CO. SPARKLETTS SPARKLETTS TOPS'N BARRICADES INC TOPS'N BARRICADES INC 5/12/2016 7:17:08 PM Payment Number 111082 111083 111083 111083 111083 111083 111083 111083 111083 111083 111083 111083 111083 111083 111083 111085 111086 111087 111088 111089 111090 111092 111093 111094 111095 111095 111095 111095 111096 111097 111100 111100 111100 111100 111100 111100 111101 111102 111104 111104 111104 111104 111104 111104 111104 111104 111105 111106 111110 111111 111111 111063 111077 111077 111099 111099 111108 111108 Payment Date 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 Description (Payable) ADMIN LIGHTS LOWES 3/29-4/22 LOWES 3/29-4/22 LOWES 3/29-4/22 LOWES 3/29-4/22 LOWES 3/29-4/22 LOWES 3/29-4/22 LOWES 3/29-4/22 LOWES 3/29-4/22 LOWES 3/29-4/22 LOWES 3/29-4/22 LOWES 3/29-4/22 LOWES 3/29-4/22 LOWES 3/29-4/22 LOWES 3/29-4/22 ELDERLY ASSISTANCE RECEIPT LABELS OFFICE SUPPLIES BLOCK PARTY SPONSOR FEE RESTAURANT WEEK APR- CREDIT CARD FEES CLASS REFUND INSTRUCTOR FINGERPRINTIN RENTAL REFUND MAY- FB POOL SERVICE FB POOL CHLORINE TABLETS LQ PARK WF PUMP/FILTER APR- LQ PARK WATER FT TUITION REIMB APR -RECYCLING LQPD OFFICE SUPPLIES OFFICE SUPPLIES OFFICE SUPPLIES OFFICE SUPPLIES OFFICE SUPPLIES OFFICE SUPPLIES REFUND OVERPAYMENT GRAPHIC DESIGN- CODE CO TELEPACIFIC 4/23-5/22 TELEPACIFIC 4/23-5/22 TELEPACIFIC 4/23-5/22 TELEPACIFIC 4/23-5/22 TELEPACIFIC 4/23-5/22 TELEPACIFIC 4/23-5/22 TELEPACIFIC 4/23-5/22 TELEPACIFIC 4/23-5/22 FEB -MAR PLANNING CONSU REFUND OVERPAYMENT MAY- WC LUNCHEON LQPD WIRELESS 2/26-3/25 MOBILE TICKET WRITER 3/11 MATERIALS EQUIPMENT RENTAL EQUIPMENT RENTAL DRINKING WATER DRINKING WATER SIGNS CONES/BARRCADES Account Number 101-3008-60691 101-2002-60670 101-2002-60670 101-2002-60670 101-2002-60670 101-3002-60691 101-3003-60149 101-3005-60555 101-3006-60691 101-3008-60432 101-3008-60432 101-3008-60665 101-3008-60665 101-3008-60665 101-3008-60691 101-6004-60120 101-2001-60175 101-6001-60400 101-3007-60461 101-3007-60450 101-3003-60122 101-0000-42200 101-1004-60103 101-0000-22830 101-3001-60184 101-3001-60184 101-3005-60554 101-3005-60554 101-1004-60322 101-2001-60109 101-1002-60400 101-1004-60400 101-6001-60400 101-1002-60400 101-6001-60400 101-3001-60400 101-0000-42300 101-3007-60461 101-1007-61300 101-1007-61300 101-1007-61300 101-1007-61300 101-2002-60671 101-3001-60184 101-3005-60554 101-3005-61204 101-6002-60103 101-0000-42300 101-3002-60420 101-1007-61301 101-2001-61300 Fund 101- GENERAL FUND Total: 201-7003-60431 201-7003-61701 201-7003-61701 201-7003-60400 201-7003-60400 201-7003-60429 201-7003-56430 124 Amount 142.99 107.67 15.36 8.15 9.92 13.75 103.79 37.90 33.78 35.89 8.89 19.43 2.04 9.21 1.62 400.00 278.99 120.50 2,500.00 3,000.00 23.02 50.00 47.00 50.00 488.75 407.50 1,588.24 295.00 225.00 17.95 12.13 28.81 69.64 19.01 69.64 16.19 5.10 93.75 395.65 500.27 570.24 284.40 1,084.98 47.40 237.00 47.40 15,809.68 3.00 271.08 1,102.59 93.23 92,334.60 70.35 1,181.57 -1,083.10 400.83 65.41 807.03 858.60 Page 2 of 5 Demand Register Vendor Name TOPS'N BARRICADES INC TOPS'N BARRICADES INC Fund: 202 - LIBRARY FUND FRONTIER COMMUNICATION GOLDEN TOUCH CLEANING I GOLDEN TOUCH CLEANING I LOWE'S HOME IMPROVEME TELEPACIFIC COMMUNICATI Payment Number 111108 111108 111066 111070 111070 111083 111104 Fund: 215 - LIGHTING & LANDSCAPING FUND DESERT ELECTRIC SUPPLY 111059 DESERT ELECTRIC SUPPLY 111059 DESERT ELECTRIC SUPPLY DESERT ELECTRIC SUPPLY HIGH TECH IRRIGATION INC KIRKPATRICK LANDSCAPING TELEPACIFIC COMMUNICATI TELEPACIFIC COMMUNICATI WALTERS WHOLESALE ELECT WALTERS WHOLESALE ELECT WALTERS WHOLESALE ELECT WALTERS WHOLESALE ELECT 111059 111059 111073 111079 111104 111104 111112 111112 111112 111112 Fund: 401- CAPITAL IMPROVEMENT PROGRAMS BAKER, MICHAEL INTERNATI HERMANN DESIGN GROUP 1 HERMANN DESIGN GROUP 1 LOWE'S HOME IMPROVEME LOWE'S HOME IMPROVEME 111051 111072 111072 111083 111083 Fund: 501- EQUIPMENT REPLACEMENT AUTOZONE 111049 MOUNTAIN VIEW TIRE 111084 RAN AUTO DETAIL 111091 TOWER ENERGY GROUP 111109 Fund: 502 - INFORMATION TECHNOLOGY SIGMANET 111098 SUNGARD PUBLIC SECTOR IN SUNGARD PUBLIC SECTOR IN TIME WARNER CABLE 111103 111103 111107 Fund: 601- SILVERROCK RESORT FIRST CHOICE A/C & HEATIN 111064 LOWE'S HOME IMPROVEME 111083 LOWE'S HOME IMPROVEME 111083 Fund: 735 - 97-1 AGENCY REDEMPTION FUND WILLDAN FINANCIALSERVIC 111113 Payment Date 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 05/13/2016 Description (Payable) SIGN MATERIAL SIGNS MUSEUM 4/13-5/12 APR -JANITORIAL MAINT APR -JANITORIAL MAINT LOWES 3/29-4/22 TELEPACIFIC 4/23-5/22 Packet: APPKT00731 - DA 5/13/16 Account Number 201-7003-60429 201-7003-60429 Fund 201- GAS TAX FUND Total: 202-3006-61300 202-3004-60115 202-3006-60115 202-3006-60667 202-3006-61300 Fund 202 - LIBRARY FUND Total: ELECTRICAL MATERIALS ELECTRICAL MATERIALS ELECTRICAL MATERIALS ELECTRICAL MATERIALS IRRIGATION MATERIAL LANDSCAPE SERVICE TELEPACIFIC 4/23-5/22 TELEPACIFIC 4/23-5/22 ELECTRICAL MATERIAL ELECTRICAL MATERIAL ELECTRICAL MATERIAL ELECTRICAL MATERIAL Fund 215 - LIGHTING DRAINAGE STUDY 2014-04 DESIGN 2015-13 DESIGN- YMCA TURF REDUC LOWES 3/29-4/22 LOWES 3/29-4/22 215-7004-60431 215-7004-60431 215-7004-60431 215-7004-60431 215-7004-60431 215-7004-60112 215-7004-60189 215-7004-60189 215-7004-60431 215-7004-60431 215-7004-60431 215-7004-60431 & LANDSCAPING FUND Total: 401-0000-60103 401-0000-60185 401-0000-60185 401-0000-60188 401-0000-60188 Fund 401- CAPITAL IMPROVEMENT PROGRAMS Total: TK#31 LIGHT PARTS 501-0000-60676 TK#67 TIRES 501-0000-60676 CAR WASH 4/30/16 501-0000-43430 FUEL 4/1/16-4/15/16 501-0000-60674 Fund 501- EQUIPMENT REPLACEMENT Total: TRACKIT MAINTENANCE TYLER MODIFICATION SUNGARD MAINT CITY HALL CABLE 5/1-5/31 502-0000-60104 502-0000-60301 502-0000-60301 502-0000-61400 Fund 502 - INFORMATION TECHNOLOGY Total: SRR A/C SERVICE LOWES 3/29-4/22 LOWES 3/29-4/22 601-0000-60556 601-0000-60556 601-0000-60556 Fund 601- SILVERROCK RESORT Total: AD97-1 ADMIN 735-0000-23410 Fund 735 - 97-1 AGENCY REDEMPTION FUND Total: Grand Total: Amount 291.38 266.54 2,858.61 109.75 1,900.00 550.00 9.20 47.40 2,616.35 36.90 40.62 33.21 20.21 153.35 6,669.50 47.40 47.40 158.22 56.77 712.80 649.63 8,626.01 26,939.74 285.00 2,200.00 106.81 98.32 29,629.87 20.71 294.72 498.00 1,813.59 2,627.02 1,530.00 600.00 3,000.00 24.79 5,154.79 316.00 6.73 -6.73 316.00 152.66 152.66 . .................... 144,315.91 5/12/2016 7:17:08 PM Page 3 of 5 125 Demand Register Packet: APPKT00731 - DA 5/13/16 Fund Summary • Fund Expense Amount 101- GENERAL FUND 92,334.60 201- GAS TAX FUND 2,858.61 202 - LIBRARY FUND 2,616.35 215 - LIGHTING & LANDSCAPING FUND 8,626.01 401- CAPITAL IMPROVEMENT PROGRAMS 29,629.87 501- EQUIPMENT REPLACEMENT 2,627.02 502 - INFORMATION TECHNOLOGY 5,154.79 601- SILVERROCK RESORT 316.00 735 - 97-1 AGENCY REDEMPTION FUND 152.66 Grand Total: 144,315.91 Account Summary Account Number Account Name Expense Amount 101-0000-22810 Developer Deposits 10,000.00 101-0000-22830 Miscellaneous Deposits 50.00 101-0000-41600 Business Licenses 6.00 101-0000-42200 Leisure Enrichment 100.00 101-0000-42300 Cash Over/Short 143.25 101-1002-60101 Contract Services - Admi 9,299.20 101-1002-60400 Office Supplies 31.14 101-1004-50244 State Unemployment Ins 1,636.00 101-1004-60103 Professional Services 47.00 101-1004-60104 Consultants 40.00 101-1004-60322 Training & Education/M 225.00 101-1004-60400 Office Supplies 28.81 101-1006-60103 Professional Services 101.03 101-1007-61300 Utilities - Telephone 1,840.55 101-1007-61301 Mobile/Cell Phones 1,102.59 101-2001-36310 Blood/Alcohol Testing 1,294.80 101-2001-60109 LQ Police Volunteers 2,193.47 101-2001-60175 Special Enforcement Fun 278.99 101-2001-60176 Sheriff - Other 340.00 101-2001-61300 Utilities - Telephone 93.23 101-2001-71031 Vehicles 90.59 101-2002-60320 Travel & Training 381.05 101-2002-60670 Fire Station 141.10 101-2002-60671 Repair & Maintenance - 1,084.98 101-2002-61101 Utilities - Electricity 702.77 101-3001-60184 Fritz Burns Park 943.65 101-3001-60400 Office Supplies 16.19 101-3002-60115 Janitorial 1,795.00 101-3002-60420 Operating Supplies 926.99 101-3002-60691 Repair & Maintenance 13.75 101-3003-60122 Credit Card Fees 23.02 101-3003-60149 Special Events 103.79 101-3005-60113 Landscape Improvement 42.25 101-3005-60115 Janitorial 600.00 101-3005-60424 Materials - Irrigation & L 319.00 101-3005-60554 LQ Park Building 2,120.24 101-3005-60555 Sports Complex Building 37.90 101-3005-61102 Utilities - Electric - Monti 12.34 101-3005-61104 Utilities - Electric - Pione 36.50 101-3005-61108 Utilities - Electric - Colon 439.38 101-3005-61109 Utilities - Electric - Com 2,411.24 101-3005-61110 Utilities - Electric - Adam 57.21 101-3005-61111 Utilities - Electric - Velas 15.79 101-3005-61113 Utilities - Electric - Eisen 20.39 101-3005-61114 Utilities - Electric - Deser 13.48 101-3005-61204 Utilities - Water -Fritz Bu 47.40 5/12/2016 7:17:08 PM Page 4 of 5 126 Demand Register Account Summary Account Number Account Name Expense Amount 101-3006-60691 Repair & Maintenance 33.78 101-3007-60450 Advertising 3,000.00 101-3007-60461 Marketing & Tourism Pr 2,593.75 101-3008-60108 Technical 183.75 101-3008-60115 Janitorial 3,540.00 101-3008-60432 Small Tools/Equipment 44.78 101-3008-60665 Maint.-Other Equipment 30.68 101-3008-60691 Repair & Maintenance 294.61 101-6001-60400 Office Supplies 259.78 101-6002-60103 Professional Services 15,809.68 101-6004-60120 Lot Cleaning 400.00 101-6004-60320 Travel & Training 75.00 101-6004-60690 Uniforms 244.59 101-6004-61190 Admin Citation Services 767.10 101-7006-60104 Consultants 502.49 101-7006-60146 PM 10 SilverRock 23,049.24 101-7006-60320 Travel & Training 258.31 201-7003-56430 Barricades 858.60 201-7003-60400 Office Supplies 466.24 201-7003-60429 Signs 1,364.95 201-7003-60431 Materials 70.35 201-7003-61701 Equipment Rental 98.47 202-3004-60115 Janitorial 1,900.00 202-3006-60115 Janitorial 550.00 202-3006-60667 HVAC 9.20 202-3006-61300 Utilities - Telephone 157.15 215-7004-60112 Landscape Contract 6,669.50 215-7004-60189 Technical 94.80 215-7004-60431 Materials 1,861.71 401-0000-60103 Professional Services 26,939.74 401-0000-60185 Design 2,485.00 401-0000-60188 Construction 205.13 501-0000-43430 Car Washes 498.00 501-0000-60674 Fuel & Oil 1,813.59 501-0000-60676 Vehicle Repair & Mainte 315.43 502-0000-60104 Consultants 1,530.00 502-0000-60301 Software Maintenance A 3,600.00 502-0000-61400 Utilities - Cable 24.79 601-0000-60556 SilverRock Buildings 316.00 735-0000-23410 AD Administrative fees 152.66 Grand Total: 144,315.91 Project Account Summary Project Account Key Expense Amount **None** 114,686.04 131407CT 205.13 141501D 2,200.00 141504P 26,939.74 151613D 285.00 Grand Total: 144,315.91 5/12/2016 7:17:08 PM Packet: APPKT00731 - DA 5/13/16 127 Page 5 of 5 Vendor Name IA City of La Quinta, CA Fund: 101- GENERAL FUND 12MILESOUT.COM ACCOU NTE M PS ACCOUNTEMPS ALTEC ALVAREZ, MARIA ISABEL AMERICAN FORENSIC NURSE ANGELOS, JOHANNA BAUER, FARA BIO CLEAR WATER SOLUTION CALBO CALPERS LONG-TERM CARE CAPITAL ONE COMMERCIAL CAPITAL ONE COMMERCIAL CAPITAL ONE COMMERCIAL CAPITAL ONE COMMERCIAL CASSEL, LLORA CASSEL, LLORA COACHELLA VALLEY CONSER COACHELLA VALLEY CONSER COACHELLA VALLEY WATER COACHELLA VALLEY WATER COACHELLA VALLEY WATER COACHELLA VALLEY WATER COACHELLA VALLEY WATER CONSERVE LANDCARE DESERT SANDS UNIFIED SCH DESERT SUN, THE DESERT SUN, THE DESERT SUN, THE DIGICERT INC ESGIL CORPORATION ESGIL CORPORATION ESGIL CORPORATION FRANCHISE TAX BOARD FRONTIER COMMUNICATION FRONTIER -INTERNET GAS COMPANY, THE GONSALVES, JOE A & SON HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC 5/23/2016 6:18:32 PM Payment Number 111114 111115 111115 111118 111120 111121 111122 111124 111125 111127 111128 111129 111129 111129 111129 111130 111130 111133 111133 111134 111134 111134 111134 111134 111135 111137 111138 111138 111138 111140 111142 111142 111142 111144 111145 111147 111148 111149 111150 111150 111150 111150 111150 111150 111150 111150 111150 111150 111150 111150 111150 111150 111150 Payment Date 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 Demand Register Packet: APPKT00739 - DA 5/20/16 Description (Payable) APR - COUNCIL MEETING VID TEMP - STAFFING WKEND 4/ TEMP - STAFFING WKEND 5/ CHECK STOCK INSTRUCTOR PAYMENT BLOOD ALCOHOL TESTING INSTRUCTOR PAYMENT INSTRUCTOR PAYMENT LAKE MAINT4/12-5/4 MEMBERSHIP- HANADA LONG TERM CARE CPR TRAINING SUPPLIES TRAINING SNACKS SUPPLIES CPR TRAINING SNACKS INSTRUCTOR PAYMENT INSTRUCTOR PAYMENT APR- MITIGATION FEE APR- MITIGATION FEE WATER SERVICES WATER SERVICES WATER SERVICES WATER SERVICES WATER SERVICES MAY- LANDSCAPE MAINT SCHOOL OFFICER APR- SUBSCRIPTION MAR- SUBSCRIPTION MAY- SUBSCRIPTION ELECTRONIC SIG KEY JAN -BLDG PLAN CHECK FEB -BLDG PLAN CHECK APR- BLDG PLAN CHECK GARNISHMENT T1 LINE LQPD 4/4-5/3 INTERNET SVC 4/25-5/24 FS#93 GAS 3/31-4/29 MAR- LEGISLATIVE SERVICE HOME DEPOT 3/28-4/28 HOME DEPOT3/28-4/28 HOME DEPOT 3/28-4/28 HOME DEPOT 3/28-4/28 HOME DEPOT 3/28-4/28 HOME DEPOT 3/28-4/28 HOME DEPOT 3/28-4/28 HOME DEPOT 3/28-4/28 HOME DEPOT 3/28-4/28 HOME DEPOT 3/28-4/28 HOME DEPOT 3/28-4/28 HOME DEPOT 3/28-4/28 HOME DEPOT 3/28-4/28 HOME DEPOT 3/28-4/28 HOME DEPOT 3/28-4/28 Account Number 101-3008-60108 101-1004-60125 101-1004-60125 101-1006-60410 101-3002-60107 101-2001-36310 101-3003-60107 101-3002-60107 101-3005-60117 101-6003-60351 101-0000-20949 101-1004-60321 101-1004-60320 101-3001-60400 101-1004-60321 101-3002-60107 101-3003-60107 101-0000-20310 101-0000-43631 101-2002-61200 101-3005-61204 101-3005-61209 101-3008-61200 101-7006-60146 101-3005-60108 101-2001-60168 101-6001-60450 101-6001-60450 101-6001-60450 101-7001-60420 101-6003-60118 101-6003-60118 101-6003-60118 101-0000-20985 101-2001-61300 101-1007-61300 101-2002-61100 101-1002-60101 101-2002-60670 101-2002-60670 101-2002-60670 101-2002-60670 101-2002-60670 101-3002-60691 101-3002-60691 101-3005-60424 101-3005-60554 101-3005-60554 101-3005-60554 101-3005-60554 101-3006-60691 101-3008-60665 101-3008-60691 Amount 800.00 421.20 497.25 274.48 470.69 180.00 14.00 112.00 817.50 215.00 144.16 59.70 75.64 21.58 87.93 156.80 44.80 3,143.00 -31.43 200.56 72.69 202.52 40.30 436.19 28,575.00 16,690.83 76.44 76.61 69.85 379.00 6,835.51 2,820.65 958.65 125.00 289.79 79.99 70.10 3,500.00 -55.56 192.02 243.78 1,327.85 79.84 25.39 12.46 12.38 102.70 23.57 44.69 11.85 15.62 73.44 126.36 Page 1 of 7 128 Demand Register Vendor Name , HR GREEN CALIFORNIA INC HR GREEN CALIFORNIA INC IRC INC JAS PACIFIC INC JAS PACIFIC INC JAS PACIFIC INC JAS PACIFIC INC KEPLER, KRISTOFFER KLEIN, SANDRA LANCE, SOLL, & LUNGHARD L LEVINE, DAN MEDEIROS, JOYCELEEN MISELL, STACY OFFICE DEPOT OFFICE DEPOT OFFICE DEPOT OFFICE DEPOT OFFICE DEPOT OFFICE DEPOT OFFICE DEPOT ONTRAC RASA/ERIC NELSON RASA/ERIC NELSON RASA/ERIC NELSON RASA/ERIC NELSON RASA/ERIC NELSON RIVERSIDE COUNTY SHERIFF' RIVERSIDE DEPARTMENT OF ROJAS, MIGUELANGEL ROYAL GYM SERVICES RUTAN & TUCKER RUTAN & TUCKER RUTAN & TUCKER RUTAN & TUCKER RUTAN & TUCKER RUTAN & TUCKER RUTAN & TUCKER RUTAN & TUCKER RUTAN & TUCKER RUTAN & TUCKER RUTAN & TUCKER SCENTAIR TECHNOLOGIES IN SHIRY, TERESA SILVERROCK RESORT SILVERROCK RESORT SILVERROCK RESORT SILVERROCK RESORT SMART & FINAL SOCIETY FOR HUMAN RESO SOUTH COAST AIR QUALITY STAPLES ADVANTAGE STAPLES ADVANTAGE STAPLES ADVANTAGE STAPLES ADVANTAGE STAPLES ADVANTAGE STAPLES ADVANTAGE TOTALFUNDS BY HASLER TRUE, ARTHUR ALLEN ULRICH, MARGARET UNITED WAY OF THE DESERT Payment Number 111152 111152 111154 111155 111155 111155 111155 111156 111158 111160 111161 111162 111163 111164 111164 111164 111164 111164 111164 111164 111165 111166 111166 111166 111166 111166 111168 111169 111171 111172 111173 111173 111173 111173 111173 111173 111173 111173 111173 111173 111173 111174 111175 111176 111176 111176 111176 111177 111178 111179 111180 111180 111180 111180 111180 111180 111186 111188 111189 111191 Payment Date 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 Description (Payable) DEC -PLAN CHECK SERVICES APR -PLAN CHECK SERVICES BACKROUND CHECKS DEC -BLDG PLAN CHECK FEB -BLDG PLAN CHECK MAR- BLDG PLAN CHECK APR- BLDG PLAN CHECK INSTRUCTOR PAYMENT INSTRUCTOR PAYMENT LSL GOVERNMENTAL ACCTIN INSTRUCTOR PAYMENT INSTRUCTOR PAYMENT INSTRUCTOR PAYMENT OFFICE OPERATING SUPPLIES OFFICE SUPPLIES OFFICE SUPPLIES BUSINESS CARDS OFFICE SUPPLIES OFFICE SUPPLIES OFFICE SUPPLIES OVERNIGHT MAIL FTM 2015-0003 FPM 2015-0009 FPM 2015-0010 FTM 2016-0004 FTM 2016-0004 GARNISHMENT GARNISHMENT INSTRUCTOR PAYMENT MAY -GYM MAINT MAR- LEGAL FEES MAR- LEGAL FEES MAR- LEGAL FEES MAR- LEGAL FEES MAR- LEGAL FEES MAR- LEGAL FEES MAR- LEGAL FEES MAR- LEGAL FEES MAR- LEGAL FEES MAR- LEGAL FEES MAR- LEGAL FEES GYM SUPPLIES INSTRUCTOR PAYMENT APR - SALES TAX APR - SALES TAX APR - SALES TAX APR - SALES TAX VOLUNTEER LUNCHEON MEMBERSHIP DUES EOC GENERATOR/AQMD FEE OFFICE SUPPLIES EOC (6) LAPTOPS OFFICE SUPPLIES OFFICE SUPPLIES OFFICE SUPPLIES OFFICE SUPPLIES CITY WIDE POSTAGE INSTRUCTOR PAYMENT INSTRUCTOR PAYMENT CONTRIBUTION Packet: APPKT00739 - DA 5/20/16 Account Number 101-7002-60183 101-7002-60183 101-1004-60104 101-6003-60118 101-6003-60118 101-6003-60118 101-6003-60118 101-3002-60107 101-3003-60107 101-1006-60320 101-3002-60107 101-3002-60107 101-3002-60107 101-1005-60400 101-1005-60400 101-1005-60400 101-3002-60420 101-1005-60400 101-1005-60400 101-1005-60400 101-1007-60470 101-7002-60183 101-7002-60183 101-7002-60183 101-7002-60183 101-7002-60183 101-0000-20985 101-0000-20985 101-3003-60107 101-3002-60691 101-1003-60153 101-1003-60153 101-1003-60153 101-1003-60153 101-1003-60153 101-1003-60154 101-1003-60154 101-1003-60154 101-1003-60154 101-1003-60154 101-1003-60154 101-3002-60420 101-3003-60107 101-0000-20304 101-3003-60149 101-3003-60420 101-3007-60461 101-3007-60461 101-1004-60351 101-2002-60671 101-3001-60400 101-2002-80101 101-3002-60400 101-1004-60400 101-1006-60400 101-3001-60400 101-1007-60470 101-3003-60107 101-3003-60107 101-0000-20981 Amount 1,593.75 7,508.75 599.50 13,032.50 9,958.00 9,132.50 8,612.50 848.80 42.00 180.00 94.50 112.00 110.25 33.40 173.43 138.90 121.09 139.89 18.35 45.32 24.15 522.00 337.00 300.00 4,056.00 1,248.00 411.55 200.00 1,620.50 315.00 4,000.00 16,006.90 6,540.50 1,701.50 1,198.50 2,880.00 1,502.00 2,736.00 456.00 208.50 2,088.00 192.25 679.00 40.00 4.00 45.00 24.00 161.53 190.00 122.53 29.62 6,087.90 130.18 19.52 50.90 7.32 5.61 131.60 196.00 30.00 5/23/2016 6:18:32 IDM Page 2 of 7 129 Demand Register Vendor Name VACATION RENTAL COMPLIA VERIZON WIRELESS WELLS FARGO BUSINESS CAR WELLS FARGO BUSINESS CAR WELLS FARGO BUSINESS CAR WELLS FARGO BUSINESS CAR WELLS FARGO BUSINESS CAR WELLS FARGO BUSINESS CAR WELLS FARGO BUSINESS CAR WELLS FARGO BUSINESS CAR WELLS FARGO BUSINESS CAR WELLS FARGO BUSINESS CAR WELLS FARGO BUSINESS CAR WILSON, RICHARD ELECTRIC YOUNG ENGINEERING SVC YOUNG ENGINEERING SVC Fund: 201- GAS TAX FUND HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC TOPS'N BARRICADES INC TOPS'N BARRICADES INC TOPS'N BARRICADES INC TOPS'N BARRICADES INC TOPS'N BARRICADES INC TOPS'N BARRICADES INC UNDERGROUND SERVICE AL Fund: 202 - LIBRARY FUND COACHELLA VALLEY WATER COACHELLA VALLEY WATER CONSERVE LANDCARE CONSERVE LANDCARE HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC Payment Number 111192 111193 111194 111194 111194 111194 111194 111194 111194 111194 111194 111194 111194 111195 111196 111196 111150 111150 111150 111150 111150 111150 111150 111150 111185 111185 111185 111185 111185 111185 111190 111134 111134 111135 111135 111150 111150 111150 Fund: 215 - LIGHTING & LANDSCAPING FUND ALSCO INC ALSCO INC CONSERVE LANDCARE DESERT ELECTRIC SUPPLY DESERT ELECTRIC SUPPLY DESERT ELECTRIC SUPPLY HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC 111117 111117 111135 111136 111136 111136 111150 111150 111150 111150 111150 111150 111150 111150 111150 Payment Date 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 Description (Payable) APR- STVR COMPLIANCE WIRELESS SVC 3/14-4/13 APR- VISA CARD PAYMENT APR- VISA CARD PAYMENT APR- VISA CARD PAYMENT APR -VISA CARD PYMT APR -VISA CARD PYMT APR -VISA CARD PYMT APR -VISA CARD PYMT APR -VISA CARD PYMT APR -VISA CARD PYMT APR -VISA CARD PYMT APR -VISA CARD PYMT FS#32 GARAGE MAINT MAR -BLDG PLAN CHECK APRIL -BLDG PLAN CHECK HOME DEPOT 3/28-4/28 HOME DEPOT 3/28-4/28 HOME DEPOT3/28-4/28 HOME DEPOT3/28-4/28 HOME DEPOT 3/28-4/28 HOME DEPOT 3/28-4/28 HOME DEPOT3/28-4/28 HOME DEPOT 3/28-4/28 SIGNS SIGN MATERIAL SIGN MATERIAL SIGNS SIGNS SAFETY GEAR DIG ALERT -14 WATER SERVICES WATER SERVICES MAY - LANDSCAPE MAINT MAY - LANDSCAPE MAINT HOME DEPOT 3/28-4/28 HOME DEPOT 3/28-4/28 HOME DEPOT 3/28-4/28 UNIFORM RENTAL UNIFORM RENTAL MAY - LANDSCAPE MAINT ELECTRICAL ELECTRICAL MATERIAL ELECTRICAL HOME DEPOT 3/28-4/28 HOME DEPOT 3/28-4/28 HOME DEPOT3/28-4/28 HOME DEPOT3/28-4/28 HOME DEPOT 3/28-4/28 HOME DEPOT 3/28-4/28 HOME DEPOT3/28-4/28 HOME DEPOT 3/28-4/28 HOME DEPOT 3/28-4/28 Packet: APPKT00739 - DA 5/20/16 Account Number 101-6001-60103 101-1007-61301 101-3005-60554 101-7001-60320 101-7001-60320 101-1001-60320 101-1002-60320 101-1005-60320 101-2002-60320 101-2002-60671 101-3003-60149 101-3007-60352 101-3007-60461 101-2002-60670 101-6003-60118 101-6003-60118 Fund 101- GENERAL FUND Total: 201-7003-56490 201-7003-56490 201-7003-60431 201-7003-60431 201-7003-60431 201-7003-60431 201-7003-60431 201-7003-60431 201-7003-60429 201-7003-60429 201-7003-60429 201-7003-60429 201-7003-60429 201-7003-60427 201-7003-60431 Fund 201- GAS TAX FUND Amount 3,720.00 1,341.85 628.75 360.00 360.00 542.11 1,234.51 359.20 519.45 543.84 340.20 50.00 353.86 209.44 3,920.00 2,135.00 196,853.07 798.93 170.55 -66.79 17.03 4.29 -17.64 120.83 117.18 198.50 -291.38 375.41 137.70 85.00 58.73 21.00 Total: 1,729.34 202-3004-61200 202-3006-61200 202-3004-60112 202-3006-60108 202-3004-60667 202-3004-60667 202-3004-60667 Fund 202 - LIBRARY FUND Total: 215-7004-60690 215-7004-60690 215-7004-60189 215-7004-60431 215-7004-60431 215-7004-60431 215-7004-60423 215-7004-60423 215-7004-60423 215-7004-60423 215-7004-60423 215-7004-60423 215-7004-60423 215-7004-60423 215-7004-60423 91.30 96.73 1,575.00 1,115.00 12.61 25.82 -21.21 2,895.25 102.10 102.83 5,815.00 41.26 118.07 48.60 449.06 18.39 328.72 203.62 220.26 45.01 38.79 129.21 45.36 5/23/2016 6:18:32 PM Page 3 of 7 130 Demand Register Vendor Name HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC HOME DEPOT CREDIT SERVIC Fund: 218 - CV VIOLENT CRIME ADVANCED IMAGING SOLUTI ALVARADO, MARCIAL AREVALOS CAMPOS, ROSAU BURRTEC WASTE & RECYCLI DESERTARC FRONTIER -GANG TASK FORC FRONTIER -GANG TASK FORC IMPERIAL IRRIGATION -GANG KIRK, THOMAS STAPLES GANG TASK FORCE TAPP, MICHAEL Payment Number 111150 111150 111150 111150 111150 111150 111150 111150 111150 111150 111150 111150 TASK FORCE 111116 111119 111123 111126 111139 111146 111146 111153 111157 111181 111184 Fund: 224 - TUMF COACHELLA VALLEY ASSOC 0 111132 Fund: 237 - SUCCESSOR AGCY PA 1 ADMIN RUTAN & TUCKER 111173 RUTAN & TUCKER 111173 Fund: 241- HOUSING AUTHORITY RUTAN & TUCKER 111173 Fund: 248 - SA 2004 LO/MOD BOND FUND RGA LANDSCAPE ARCHITECT STUDIO E ARCHITECTS STUDIO E ARCHITECTS 111167 111183 111183 Fund: 401- CAPITAL IMPROVEMENT PROGRAMS ECONOLITE CONTROL PROD 111141 FORBES TRAFFIC SOLUTIONS 111143 ROADWAY ENGINEERING & C 111170 Fund: 501- EQUIPMENT REPLACEMENT CHEVROLET CADILLAC GAS COMPANY, THE L & L AUTOMOTIVE L & L AUTOMOTIVE L & L AUTOMOTIVE STONE'S, CAM AUTOMOTIVE TOWER ENERGY GROUP 111131 111148 111159 111159 111159 111182 111187 Payment Date 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 05/20/2016 Packet: APPKT00739 - DA 5/20/16 Description (Payable) , Account Number HOME DEPOT 3/28-4/28 HOME DEPOT 3/28-4/28 HOME DEPOT 3/28-4/28 HOME DEPOT 3/28-4/28 HOME DEPOT 3/28-4/28 HOME DEPOT 3/28-4/28 HOME DEPOT 3/28-4/28 HOME DEPOT 3/28-4/28 HOME DEPOT3/28-4/28 HOME DEPOT 3/28-4/28 HOME DEPOT 3/28-4/28 HOME DEPOT 3/28-4/28 215-7004-60427 215-7004-60431 215-7004-60431 215-7004-60431 215-7004-60431 215-7004-60431 215-7004-60431 215-7004-60431 215-7004-60431 215-7004-60431 215-7004-60431 215-7004-60431 Fund 215 - LIGHTING & LANDSCAPING FUND Total: SVC/SUPPLIES 3/23-4/22 FREON-3A/C UNITS APR -JANITORIAL MAY - TRASH SERVICE SHIRTS- GAINES CLETS LINE 4/13-5/12 PHONE SVC 4/22-5/21 ELECTRICITY SERVICE 3/29-4 REIMB UNIFORM PANTS OFFICE SUPPLIES PETTY CASH POSTAGE 218-0000-60665 218-0000-60665 218-0000-60115 218-0000-61501 218-0000-60690 218-0000-61300 218-0000-61300 218-0000-61101 218-0000-60690 218-0000-60400 218-0000-60420 Fund 218 - CV VIOLENT CRIME TASK FORCE Total: APR-TUMF FEE 224-0000-20320 Fund 224 - TUMF Total: MAR- LEGAL FEES 237-9001-60153 MAR- LEGAL FEES 237-9001-60153 Fund 237 - SUCCESSOR AGCY PA 1 ADMIN Total: MAR- LEGAL FEES 241-9101-60153 Fund 241- HOUSING AUTHORITY Total: WSA/CONST DOC PREP/DESI 248-0000-60185 APR-WSA DESIGN SVCS/REI 248-0000-60185 APR-WSA DESIGN SVCS/CON 248-0000-60185 Fund 248 - SA 2004 LO/MOD BOND FUND Total: MMU PROGRAM CARD 401-0000-60188 CORRIDOR III PROBLEMS 401-0000-60188 FINAL RETENTION 2013-02 401-0000-60188 Fund 401- CAPITAL IMPROVEMENT PROGRAMS Total: TK#54 RADIATOR SERVICE SWEEPER CNG GAS TK#51 SERVICE BRAKES/TIRE TK#65 SEAT REPAIR TK#67 SERVICE LOF TK#71 SVC/CK ENG LIGHT FUEL 4/16-4/30 501-0000-60676 501-0000-60678 501-0000-60676 501-0000-60676 501-0000-60676 501-0000-60676 501-0000-60674 Fund 501- EQUIPMENT REPLACEMENT Total: Amount 56.10 32.43 59.13 5.29 13.76 22.59 7.60 10.24 57.19 13.82 10.56 75.47 8,070.46 54.63 585.00 200.00 85.61 17.82 289.79 148.32 471.22 43.20 1,073.28 113.10 3,081.97 11,024.64 11,024.64 96.00 4,000.00 4,096.00 466.45 466.45 3,000.00 1,673.42 36,156.05 40,829.47 250.00 2,475.00 14,526.37 17,251.37 525.47 311.97 1,113.39 250.00 39.84 166.90 1,520.48 3,928.05 Grand Total: 290,226.07 5/23/2016 6:18:32 PM Page 4 of 7 131 Demand Register Packet: APPKT00739 - DA 5/20/16 Fund Summary Fund 101 -GENERAL FUND 201- GAS TAX FUND 202 - LIBRARY FUND 215 - LIGHTING & LANDSCAPING FUND 218 - CV VIOLENT CRIME TASK FORCE 224 - TUMF 237 - SUCCESSOR AGCY PA 1 ADMIN 241- HOUSING AUTHORITY 248 - SA 2004 LO/MOD BOND FUND 401 -CAPITAL IMPROVEMENT PROGRAMS 501- EQUIPMENT REPLACEMENT Account Number 101-0000-20304 101-0000-20310 101-0000-20949 101-0000-20981 101-0000-20985 101-0000-43631 101-1001-60320 101-1002-60101 101-1002-60320 101-1003-60153 101-1003-60154 101-1004-60104 101-1004-60125 101-1004-60320 101-1004-60321 101-1004-60351 101-1004-60400 101-1005-60320 101-1005-60400 101-1006-60320 101-1006-60400 101-1006-60410 101-1007-60470 101-1007-61300 101-1007-61301 101-2001-36310 101-2001-60168 101-2001-61300 101-2002-60320 101-2002-60670 101-2002-60671 101-2002-61100 101-2002-61200 101-2002-80101 101-3001-60400 101-3002-60107 101-3002-60400 101-3002-60420 101-3002-60691 101-3003-60107 101-3003-60149 101-3003-60420 101-3005-60108 101-3005-60117 Grand Total: Account Summary Account Name Sales Taxes Payable MSHCP Mitigation Fee LT Care Insurance Pay United Way Deductions Garnishments Payable CVMSHCP Admin Fee Travel & Training Contract Services - Admi Travel & Training Attorney Attorney/Litigation Consultants Temporary Agency Servi Travel & Training Training & Education Membership Dues Office Supplies Travel & Training Office Supplies Travel & Training Office Supplies Printing Postage Utilities - Telephone Mobile/Cell Phones Blood/Alcohol Testing School Officer Utilities - Telephone Travel & Training Fire Station Repair & Maintenance - Utilities - Gas Utilities - Water Machinery & Equipment Office Supplies Instructors Office Supplies Operating Supplies Repair & Maintenance Instructors Special Events Operating Supplies Technical Civic Center Lake Mainte Expense Amount 196,853.07 1,729.34 2,895.25 8,070.46 3,081.97 11,024.64 4,096.00 466.45 40,829.47 17,251.37 3,928.05 290,226.07 Expense Amount 40.00 3,143.00 144.16 30.00 736.55 -31.43 542.11 3,500.00 1,234.51 29,447.40 9,870.50 599.50 918.45 75.64 147.63 190.00 19.52 359.20 549.29 180.00 50.90 274.48 29.76 79.99 1,341.85 180.00 16, 690.83 289.79 519.45 1,997.37 666.37 70.10 200.56 6,087.90 58.52 1,905.04 130.18 313.34 352.85 2,727.90 344.20 45.00 28,575.00 817.50 5/23/2016 6:18:32 PM Page 5 of 7 132 Demand Register Account Summary Account Number Account Name Expense Amount 101-3005-60424 Materials - Irrigation & L 12.38 101-3005-60554 LQ Park Building 811.56 101-3005-61204 Utilities - Water -Fritz Bu 72.69 101-3005-61209 Utilities - Water -Commu 202.52 101-3006-60691 Repair & Maintenance 15.62 101-3007-60352 Subscriptions & Publicati 50.00 101-3007-60461 Marketing & Tourism Pr 539.39 101-3008-60108 Technical 800.00 101-3008-60665 Maint.-Other Equipment 73.44 101-3008-60691 Repair & Maintenance 126.36 101-3008-61200 Utilities - Water 40.30 101-6001-60103 Professional Services 3,720.00 101-6001-60450 Advertising 222.90 101-6003-60118 Plan Checks 57,405.31 101-6003-60351 Membership Dues 215.00 101-7001-60320 Travel & Training 720.00 101-7001-60420 Operating Supplies 379.00 101-7002-60183 Map/Plan Checking 15,565.50 101-7006-60146 PM 10 SilverRock 436.19 201-7003-56490 Asphalt 969.48 201-7003-60427 Safety Gear 58.73 201-7003-60429 Signs 505.23 201-7003-60431 Materials 195.90 202-3004-60112 Landscape Contract 1,575.00 202-3004-60667 HVAC 17.22 202-3004-61200 Water -Inside 91.30 202-3006-60108 Technical 1,115.00 202-3006-61200 Water - Inside 96.73 215-7004-60189 Technical 5,815.00 215-7004-60423 Supplies -Graffiti 1,478.42 215-7004-60427 Safety Gear 56.10 215-7004-60431 Materials 516.01 215-7004-60690 Uniforms 204.93 218-0000-60115 Janitorial 200.00 218-0000-60400 Office Supplies 1,073.28 218-0000-60420 Operating Expenses 113.10 218-0000-60665 Maint.-Other Equipment 639.63 218-0000-60690 Uniforms 61.02 218-0000-61101 Electricity 471.22 218-0000-61300 Utilities - Telephone 438.11 218-0000-61501 Refuse Collection 85.61 224-0000-20320 TUMF Payable to CVAG 11,024.64 237-9001-60153 Attorney 4,096.00 241-9101-60153 Attorney 466.45 248-0000-60185 Design 40,829.47 401-0000-60188 Construction 17,251.37 501-0000-60674 Fuel & Oil 1,520.48 501-0000-60676 Vehicle Repair & Mainte 2,095.60 501-0000-60678 Street Sweeper 311.97 Grand Total: 290,226.07 Project Account Summary Project Account Key Expense Amount **None** 232,145.23 131402CT 14,526.37 131407CT 250.00 131407T 2,475.00 999901D 40,829.47 5/23/2016 6:18:32 PM Packet: APPKT00739 - DA 5/20/16 133 Page 6 of 7 Demand Register Project Account Summary Project Account Key Expense Amount 999901D Grand Total: 290,226.07 Packet: APPKT00739 - DA 5/20/16 5/23/2016 6:18:32 PM 134 Page 7 of 7 City of La Quinta, CA Canceled Payables Vendor Set: 01- Vendor Set 01 Bank: APBNK -APBNK Vendor Number 07624 Payment Type Check Vendor Name KAPPY LLC Payment Number 105042 Payable Number: R00000583 -R Vendor Number 07706 Payment Type Check Vendor Name PIXIE GLAM STUDIO Payment Number 105821 Payable Number: 1799-R Vendor Number 07722 Payment Type Check Vendor Name TAYLON, TONYA DALTON Payment Number 105981 Payable Number: 2001-R Vendor Number 07765 Payment Type Check Description REFUND TOT OVERPAYMENT Description REFUND OVERPAYMENT Description REFUND ANIMAL LIC Vendor Name ACKEIMAN, WENDY & TERRY Payment Number 106165 Payable Number: 553-R Vendor Number 07787 Payment Type Check Vendor Name BEAUTY BY CARRIE MARIE Payment Number 106315 Payable Number: 3067-R Vendor Number 07857 Payment Type Check Vendor Name PARENT EMPOWERMENT Payment Number 106912 Payable Number: R5193 -R Description REFUND TOT OVERPAYMENT Description REFUND OVERPAYMENT Description REFUND OVERPAYMENT Payment Reversal Register APPKT00732 - DA 5/17/16 Original Payment Date Reversal Date Cancel Date 11/07/2014 05/17/2016 11/07/2014 Payable Date Due Date 10/16/2014 11/07/2014 Original Payment Date Reversal Date Cancel Date 01/23/2015 05/17/2016 01/23/2015 Payable Date Due Date 01/09/2015 01/23/2015 Original Payment Date Reversal Date Cancel Date 02/06/2015 05/17/2016 02/06/2015 Payable Date Due Date 01/21/2015 02/06/2015 Original Payment Date Reversal Date Cancel Date 02/27/2015 05/17/2016 02/27/2015 Payable Date Due Date 02/12/2015 02/27/2015 Original Payment Date Reversal Date Cancel Date 03/13/2015 05/17/2016 03/13/2015 Payable Date Due Date 02/26/2015 03/13/2015 Original Payment Date Reversal Date Cancel Date 05/01/2015 05/17/2016 05/01/2015 Payable Date Due Date 04/20/2015 05/01/2015 Total Vendor Amount -8.67 Payment Amount -8.67 Payable Amount 8.67 Total Vendor Amount -3.00 Payment Amount -3.00 Payable Amount 3.00 Total Vendor Amount -3.00 Payment Amount -3.00 Payable Amount 3.00 Total Vendor Amount -5.40 Payment Amount -5.40 Payable Amount 5.40 Total Vendor Amount -3.00 Payment Amount -3.00 Payable Amount 3.00 Total Vendor Amount -3.00 Payment Amount -3.00 Payable Amount 3.00 5/23/2016 6:48:52 PM Page 1 of 3 135 Payment Reversal Register Packet: APPKT00732 - DA 5/17/16 Vendor Number Vendor Name 07869 BECKLEY, LESLIE Payment Type Payment Number Check 107019 Payable Number: R5770/R5771-R Description REFUND OVERPAYMENT Total Vendor Amount -5.89 Original Payment Date Reversal Date Cancel Date Payment Amount 05/15/2015 05/17/2016 05/15/2015 -5.89 Payable Date Due Date Payable Amount 05/04/2015 05/15/2015 5.89 5/23/2016 6:48:52 PM Page 2 of 3 136 Payment Reversal Register Bank Code Canceled Payables APBNK -31.96 Report Total: -31.96 5/23/2016 6:48:52 PM Payables Left To Pay Again 0.00 0.00 Packet: APPKT00732 - DA 5/17/16 Bank Code Summary Total -31.96 -31.96 137 Page 3 of 3 138 ATTACHMENT 2 CITY OF LA QUINTA BANK TRANSACTIONS 05/07/16 - 05/20/16 05/10/16 WIRE TRANSFER - TASC $1,038.52 05/17/16 WIRE TRANSFER - GASB 68 $1,950.00 05/18/16 WIRE TRANSFER - LANDMARK $167,506.21 05/20/16 WIRE TRANSFER - ICMA $5,549.00 05/20/16 WIRE TRANSFER - LQCEA $391.00 05/20/16 WIRE TRANSFER - PERS $34,291.91 TOTAL WIRE TRANSFER OUT $210,726.64 139 140 CONSENT CALENDAR ITEM NO. City of La Quinta CITY COUNCIL MEETING: June 7, 2016 STAFF REPORT AGENDA TITLE: ACCEPT OFF-SITE AND ON-SITE IMPROVEMENTS ASSOCIATED WITH THE DARBY ESTATES DEVELOPMENT (TRACT MAP NO. 31087) RECOMMENDATION Accept the off-site and on-site improvements associated with Tract Map No. 31087, Darby Estates Residential Development; 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 • Darby Estates is located on the south side of Darby Road, east of Palm Royale Drive (Attachment 1). • Adom Ventures, LLC (Developer) has completed all obligations of the Off-site and On-site Subdivision Improvement Agreements and has requested release of the performance and labor and materials securities. • Staff has verified satisfactory completion of these improvements and recommends acceptance of the off-site and on-site improvements. FISCAL IMPACT This action will require the City to maintain a storm drain catch basin on Darby Road after the one-year warranty period. Catch basin maintenance is estimated to be $500 annually, which will be incorporated in the Facilities Department operating budget. BACKGROUND/ANALYSIS The Developer of Darby Estates has completed all off-site and on-site improvements required by the conditions of approval for Tract Map No. 31087. The improvements include asphalt concrete pavement, curb and gutter, curb ramps, sidewalk, storm drain, catch basins, water and sewer improvements, landscaping, and survey monumentation. Staff inspected the improvements and verified they meet City approved plans and standards. ALTERNATIVES Acceptance of these improvements is a ministerial action necessary for the release of the improvement securities. Since the improvements have been inspected and found to meet City standards, staff does not recommend an alternative action. Prepared by: Bryan McKinney, P.E., Principal Engineer Approved by: Timothy R. Jonasson, P.E., Design and Development Director/City Engineer Attachment: 1. Vicinity Map 141 142 ATTACHMENT 1 TRACT MAP NO. 31087 DARBY ESTATES PROJECT 5Y7E FRED WARING VICINITY MAP NOT TO SCALE 144 CONSENT CALENDAR ITEM NO. City of La Quinta CITY COUNCIL MEETING: June 7, 2016 STAFF REPORT AGENDA TITLE: ACCEPT OFF-SITE AND ON-SITE IMPROVEMENTS ASSOCIATED WITH THE LA QUINTA RETIREMENT COMMUNITY DEVELOPMENT (PARCEL MAP NO. 36405) RECOMMENDATION Accept the off-site and on-site improvements associated with Parcel Map No. 36405, La Quinta Retirement Community; 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 • The La Quinta Retirement Community is located on Seeley Drive, east of Washington Street and south of Miles Avenue, within the Centre Pointe commercial development (Attachment 1). • La Quinta Retirement Residence Limited Partnership (Developer) has completed all obligations of the Off-site and On-site Subdivision Improvement Agreements and has requested release of the performance and labor and materials securities. • Staff has verified satisfactory completion of these improvements and recommends acceptance of the off-site and on-site improvements. FISCAL IMPACT - None. BACKGROUND/ANALYSIS The Developer of the La Quinta Retirement Community has completed all off-site and on- site improvements required by the conditions of approval for Parcel Map No. 36405. The improvements include asphalt concrete pavement, curb and gutter, curb ramps, sidewalk, storm drain, catch basins, water and sewer improvements, landscaping, and survey monumentation. Staff inspected the improvements and verified they meet City approved plans and standards. ALTERNATIVES Acceptance of these improvements is a ministerial action necessary for the release of the improvement securities. Since the improvements have been inspected and found to meet City standards, staff does not recommend an alternative action. Prepared by: Bryan McKinney, P.E., Principal Engineer Approved by: Timothy R. Jonasson, P.E., Design and Development Director/City Engineer Attachment: 1. Vicinity Map 145 146 0 cn ATTACHMENT 1 PM 36405 LA QUINTA RETIREMENT COMMUNITY FRED SEELEY DRIVE WARINg. MIL AGUE VIES ARD LL z IP 1- 0 z VICINITY MAP NOT TO SCALE 148 City of La Quinta CITY COUNCIL MEETING: June 7, 2016 STAFF REPORT CONSENT CALENDAR ITEM NO. AGENDA TITLE: AWARD CONTRACT TO CONSERVE LANDCARE, INC. FOR CITYWIDE LANDSCAPE MAINTENANCE SERVICES, PROJECT NO. 2015-16. RECOMMENDATION Award a contract to Conserve Landcare, Inc. in the amount of $425,898 for Citywide Landscape Maintenance Services. Project No. 2015-16. EXECUTIVE SUMMARY The Citywide landscape contract provides landscape maintenance for all public medians, parkways and retention areas and ensures safe and aesthetically pleasing streetscapes throughout the City. On April 19, 2016, City Council approved specifications and bid documents for this project, and authorized staff to advertise it for bid. Bids were opened on May 26, 2016, and staff recommends the contract for this work be awarded to the lowest bidder, Conserve Landcare Inc. (Conserve) of Thousand Palms, California. FISCAL IMPACT Funding in the amount of $556,100 is being proposed in the 2016/17 Lighting and Landscape budget based on the current contract. BACKGROUND/ANALYSIS The citywide landscape maintenance program provides for daily, weekly and monthly maintenance of all landscaped area located within the City's right-of-way. On May 26, 2016 sealed bids were received for the project, the bid comparisons are as follows: BIDDER BID AMOUNT Kirkpatrick Landscaping Services $649,666 Mariposa Landscape, Inc. $615,074 Conserve Landcare, Inc. $425,898 Conserve submitted the lowest bid. They have worked with the City for the past year as the parks maintenance contractor and were also the contractor that was awarded the projects for the turf conversions at the Civic Center Campus, Fritz Burns Park, and Fire Station #70. Therefore, staff recommends that Conserve be awarded the contract for this project. 149 The contract will be for a one-year initial term, July 1, 2016 through June 30, 2017, and will allow for four, one-year extensions, renewable at the beginning of each fiscal year through 2020/21 at the City's discretion if the contractor performs in a satisfactory manner. The contract may be terminated with a 30 -day notice to the contractor. ALTERNATIVES Conserve has provided quality and timely services to the City. Given that their proposal includes new prevailing wage requirements and additional areas of service, staff does not recommend an alternative because they submitted a cost saving proposal. Prepared by: Steve Howlett, Facilities Director Approved by: Frank J. Spevacek, City Manager Attachment: 1. Contract Services Agreement. 150 SECTION 1300 CONTRACT THIS CONTRACT, by and between the CITY OF LA QUINTA, a municipal corporation, herein referred to as "City," and Conserve LandCare, Inc., herein referred to as, "Contractor." WITNESSETH: In consideration of their mutual covenants, the parties hereto agree as follows: 1. Contractor shall furnish all necessary labor, material, equipment, transportation and services for Landscape Maintenance Services for Landscape and Lighting Assessment District 89-1, City Project No. 2015-16in the City of La Quinta, California pursuant to the Invitation to Bid, the project Specifications, and Contractor's Bid, all of which documents shall be considered a part hereof as though fully set herein. Should any provisions of Contractor's Bid be in conflict with the Notice Inviting Bids, Specifications, or this Contract, then the provisions of said Contract, Specifications, and Invitation to Bid shall be controlling, in that order of precedence. The time frame for work shall be in accordance with that specified in the Invitation to Bid. 2. Contractor will comply with all Federal, State, County, and La Quinta Municipal Code, which are, as amended from time to time, incorporated herein by reference. 3. AU work shall be done in a manner satisfactory to the Public Works Manager. 4. Contractor shall commence work on July 1, 2016 after the issuance of a written Notice to Proceed. 5. In consideration of said work, City agrees to pay Contractor such sums as shall be approved by Public Works Manager at monthly sums and/or unit prices stated in the Contractor's Bid, the base consideration Four Hundred Twenty Five Thousand, Eight Hundred Ninety Seven dollars and 72 Cents ($425,897.72). All payments shall be subject to approval by the Public Works Manager and shall be in accordance with the terms, conditions, and procedures provided in the Specifications. 6. The Contractor shall not knowingly pay less than the general prevailing rate for per diem wages, as determined by the State of California Department of Industrial Relations and referred to in the Invitation to Bid, to any workman employed for the work to be performed under this contract; and the Contractor shall forfeit as a penalty to the City the sum of Twenty -Five Dollars ($25.00) for each calendar day, or fraction thereof, for such workman paid by him or by any subcontractor under him in violation of this provision (Sections 1770-1777, Labor Code of California). Pursuant to Section 1770, et. seq., of the California Labor Code, the successful bidder shall pay not less than the prevailing rate of per diem wages as determined by the Director of the California Department of Industrial Relations. These wage rates are available from the California Department of Industrial Relations' Internet website at http://www.dir.ca.gov. Contract 1300-1 151 Pursuant to Section 1725.5 of the California Labor Code, no contractor or subcontractor may be awarded a contract for public work on a public works project unless registered with the Department of Industrial Relations at the time the contract is awarded. Contractors and subcontractors may find additional information for registering at the Department of Industrial Relations website at http://www.dir.ca.gov/Public-Works/PublicWorks.html. Pursuant to Labor Code section 1771.1, no contractor or subcontractor may be listed on a bid proposal for a public works project submitted on or after March 1, 2015 unless registered with the Department of Industrial Relations. Furthermore, ill bidders and contractors are hereby notified that no contractor or subcontractor may be awarded, on or after April 1, 2015, a contract for public work on a public works project unless registered with the Department of Industrial Relations. Pursuant to Labor Code section 1771.4, all bidders are hereby notified that this project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. 7. Concurrently with the execution of this Contract, Contractor shall furnish bonds of a surety satisfactory to City, as provided in said Specifications or Invitation to Bid, the cost of which shall be paid by Contractor. 8. Except for the gross negligence or willful misconduct of an Indemnified Party (as hereinafter defined), the Contractor hereby assumes liability for and agrees to defend (at Indemnified Parties' option), indemnify, protect and hold harmless City and its Project Consultants, and Engineers, officers, agents, and employees ("Indemnified Parties") from and against any and all claims, charges, damages, demands, actions, proceedings, losses, stop notices, costs, expenses (including counsel fees), judgments, civil fines and penalties, liabilities of any kind or nature whatsoever, which may be sustained or suffered by or secured against the Indemnified Parties arising out of or encountered in connection with this Contract or the performance of the Work including, but not limited to, death of or bodily or personal injury to persons or damage to property, including property owned by or under the care and custody of City, and for civil fines and penalties, that may arise from or be caused, in whole or in part, by any negligent or other act or omission of Contractor, its officers, agents, employees or Subcontractors including, but not limited to, liability arising from: 1. Any dangerous, hazardous, unsafe or defective condition of, in or on the premises, of any nature whatsoever, which may exist by reason of any act, omission, neglect, or any use or occupation of the premises by Contractor, its officers, agents, employees, or subcontractors; 2. Any operation conducted upon or any use or occupation of the premises by Contractor, its officers, agents, employees, or subcontractors under or pursuant to the provisions of this contract or otherwise; 3. Any act, omission or negligence of Contractor, its officers, agents, employees, or Subcontractors; 4. Any failure of Contractor, its officers, agents or employees to comply with any of the terms or conditions of this Contract or any applicable federal, state, regional, or municipal law, ordinance, rule or regulation; and Contract 1300-2 152 5. The conditions, operations, uses, occupations, acts, omissions or negligence referred to in Sub -subsections (1), (2), (3), and (4), existing or conducted upon or arising from the use or occupation by Contractor on any other premises in the care, custody and control of City. The Contractor also agrees to indemnify City and pay for all damages or loss suffered by City including but not limited to damage to or loss of City property, to the extent not insured by City and loss of City revenue from any source, caused by or arising out of the conditions, operations, uses, occupations, acts, omissions or negligence referred to in Sub -subsections (1), (2), (3), (4) and (5). Contractor's obligations under this Section apply regardless of whether or not such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnified Party. However, without affecting the rights of City under any provision of this Contract, Contractor 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 Contract 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 Contractor will be for that entire portion or percentage of liability not attributable to the active negligence of City. Contractor agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this section from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Contractor in the performance of this Contract. In the event Contractor fails to obtain such indemnity obligations from others as required here, Contractor agrees to be fully responsible according to the terms of this section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth here is binding on the successors, assigns or heirs of Contractor and shall survive the termination of this Contract or this section. This indemnity shall survive termination of the Contract or Final Payment hereunder. This Indemnity is in addition to any other rights or remedies that the Indemnified Parties may have under the law or under any other Contract Documents or Agreements. In the event of any claim or demand made against any party which is entitled to be indemnified hereunder, City may, in its sole discretion, reserve, retain or apply any monies to the Contractor under this Contract for the purpose of resolving such claims; provided, however, City may release such funds if the Contractor provides City with reasonable assurance of protection of the Indemnified Parties' interests. City shall, in its sole discretion, determine whether such assurances are reasonable. Approval of any insurance contracts by the City does not relieve the Contractor or subcontractors from liability under Section 1340-1.0, Indemnification of the Specifications. The City will not be liable for any accident, loss, or damage to the work prior to its completion and acceptance. Contract 1300-3 153 9. Contractor shall hold the County of Riverside, its officers, agents and employees free and harmless from any liability whatsoever, including wrongful death, based or asserted upon any act or omission of principal, its officers, agents, employees or sub -contractors relating to or in any way connected with or arising from the accomplishment of the work, whether or not such acts or omissions were in furtherance of the work requires by the Contract Documents and agrees to defend at his expense, including attorney fees, City of La Quinta, County of Riverside, its officers, agents, employees and Independent Architect in any legal action based on any such alleged acts or omissions. 10. Except as otherwise required, Contractor shall concurrently with the execution of this contract, furnish the City satisfactory evidence of insurance of the kinds and in the amounts provided in said Specifications, Section 1340-2.0, Insurance Requirements. This insurance shall be kept in full force and effect by Contractor during this entire contract and all premiums thereon shall be promptly paid by it. Each policy shall further state that it cannot be canceled without 30 days unconditional written notice to the City and shall name the City as an additional insured on the Commercial General Liability policy only. Contractor shall furnish evidence of having in effect, and shall maintain Workers Compensation Insurance coverage of not less than the statutory amount or otherwise show a certificate of self-insurance, in accordance with the Workers Compensation laws of the State of California. Failure to maintain the required amounts and types of coverage throughout the duration of this Contract shall constitute a material breach of this Contract. 11. Contractor shall forfeit as a penalty to City $25.00 for each laborer, workman, or mechanic employed in the execution of this Contract by said Contractor, or any subcontractor under it, upon any of the work herein mentioned, for each calendar day during which such laborer, workman, or mechanic is required or permitted to work at other than a rate of pay provided by law for more than 8 hours in any one calendar day and 40 hours in any one calendar week, in violation of the provisions of Sections 1810-1815 of the Labor Code of the State of California. 12. In accepting this Contract, Contractor certifies that in the conduct of its business it does not deny the right of any individual to seek, obtain and hold employment without discrimination because of race, religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status, sex or age as provided in the California Fair Employment Practice Act (Government Code Sections 12900, et seq.) Contractor agrees that a finding by the State Fair Employment Practices Commission that Contractor has engaged during the term of this Contract in any unlawful employment practice shall be deemed a breach of this Contract and Contractor shall pay to City $1,607.00 liquidated damages for each such breach committed under this contract. 13. Contractor also agrees that for contracts in excess of $30,000 and more than 20 calendar days duration, that apprentices will be employed without discrimination in an approved program in a ratio established in the apprenticeship standards of the craft involved (Sections 1777.5 and 1777.6, Labor Code of California). Contractors who willfully fail to comply will be denied the right to bid on public projects for a period of six months in addition to other penalties provided by law. 14. This Contract shall not be assignable by Contractor without the written consent of City. Contract 1300-4 154 15. In accepting this Contract, Contractor certifies that no member or officer of the firm or corporation is an officer or employee of the City except to the extent permitted by law. 16. Contractor certifies that it is the holder of any necessary California State Contractor's License and authorized to undertake the above work. 17. The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Contractor records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the contract and/or is paying only the amounts to which Contractor is properly entitled under the Contract or for other purposes relating to the Contract. 18. The Contractor shall maintain and preserve all such records for a period of at least three years after termination of the contract. 19. The Contractor shall maintain all such records in the City of La Quinta. If not, the Contractor shall, upon request, promptly deliver the records to the City or reimburse the City for all reasonable and extra costs incurred in conducting the audit at a location other than at City offices including, but not limited to, such additional (out of the City) expenses for personnel, salaries, private auditors, travel, lodging, meals and overhead. 20. The further terms, conditions, and covenants of the Contract are set forth in the Contract Documents, each of which is by this reference made a part hereof. Contract 1300-5 155 IN WITNESS WHEREOF, the parties have executed this Contract as of the dates stated below. "CITY" CITY OF LA QUINTA, a California municipal corporation Dated: By:. ATTEST: Susan Maysels, City Clerk APPROVED AS TO FORM: City Attorney Dated: 511 Name:A Frank J. Spevacek, City Manager Dated: Dated: "CONTRACTOR" (If corporation, affix seal) G1z£4 Signature Title: Li1Le_ Pre 5'Y -1c'4*(-- Address: 7-22-19s Mant)j 4t-iL {r'.`^a , d , , �Js4L f% 145 Street Address City State Zip Code E-mail: riK4el e6045ervi 1 nd e rte. e esi Dated: By: Signature Name: Title: Address: Street Address City State Zip Code E-mail: Contract 1300-6 156 CONSENT CALENDAR ITEM NO. City of La Quinta CITY COUNCIL MEETING: June 7, 2016 STAFF REPORT AGENDA TITLE: AWARD CONTRACT TO HORIZON LIGHTING, INC. FOR CITYWIDE LIGHTING MAINTENANCE SERVICES, PROJECT NO. LMC 2015-17. RECOMMENDATION Award a contract to Horizon Lighting, Inc. in the amount of $73,200, for Citywide Lighting Maintenance Services. Project No. LMC 2015-17. EXECUTIVE SUMMARY The Citywide Landscape Lighting Maintenance program maintains landscape lighting within the City medians and parkways. This lighting enhances motorist safety and streetscape aesthetics. Staff prepared new Bid Documents and Specifications that include prevailing wages and additional areas of service. On April 19, 2016 Council approved these specifications and documents, and authorized staff to advertise for bids. Bids were opened on May 26, 2016 and staff recommends that the lowest bidder, Horizon Lighting, Inc. (Horizon) of Palm Desert, California, be awarded this contract. FISCAL IMPACT $160,000 is budgeted in the 2016/17 Lighting and Landscape budget. BACKGROUND/ANALYSIS The Landscape and Lighting District 89-1 provides for both the Citywide Landscaping Maintenance and Landscape Lighting Contracts. This includes all public medians, parkways and retention areas. These contracts are necessary for roadway safety, water retention and visual aesthetics. New prevailing wage requirements and additional service areas made it necessary to prepare new Bid Documents and Specifications, and bid these services. On May 26, 2016 sealed bids were received, the bid comparisons are as follows: BIDDER BID AMOUNT La Salle Lighting Services $73,704 Horizon Lighting, Inc. $73,200 157 Horizon submitted the lowest bid; therefore, staff recommends that Horizon be awarded the contract. The contract will be for a one year initial term, July 1, 2016 through June 30, 2017, and will allow for four, one-year extensions, renewable each fiscal year through 2020/2021 at the City's discretion, if the contractor performs in a satisfactory manner. The contract may be terminated with a 30 -day notice. ALTERNATIVES Horizon is a Coachella Valley based company and given that their proposal includes new prevailing wage requirements and additional areas of service, staff does not recommend an alternative because they submitted a cost saving proposal. Prepared by: Steve Howlett, Facilities Director Approved by: Frank J. Spevacek, City Manager Attachment: 1. Contract Services Agreement. 158 SECTION 1300 CONTRACT THIS CONTRACT, by and between the CITY OF LA QUINTA, a municipal corporation, herein referred to as "City," and Horizon Liahtina, Inc herein referred to as, "Contractor." WITNES5ETH: In consideration of their mutual covenants, the parties hereto agree as follows: 1. Contractor shall furnish all necessary labor, material, equipment, transportation and services for Landscape Lighting and Maintenance Services for Landscape and Lighting Assessment District 89-1, City Project No. 2015-17in the City of La Quinta, California pursuant to the Invitation to Bid, the project Specifications, and Contractor's Bid, all of which documents shall be considered a part hereof as though fully set herein. Should any provisions of Contractor's Bid be in conflict with the Notice Inviting Bids, Specifications, or this Contract, then the provisions of said Contract, Specifications, and Invitation to Bid shall be controlling, in that order of precedence. The time frame for work shall be in accordance with that specified in the Invitation to Bid. 2. Contractor will comply with all Federal, State, County, and La Quinta Municipal Code, which are, as amended from time to time, incorporated herein by reference. 3. All work shall be done in a manner satisfactory to the Public Works Manager. 4. Contractor shall commence work on July 1, 2016 after the issuance of a written Notice to Proceed. 5. In consideration of said work, City agrees to pay Contractor such sums as shall be approved by Public Works Manager at monthly sums and/or unit prices stated in the Contractor's Bid, the base consideration ($ 73 2 0 0 .00). All payments shall be subject to approval by the Public Works Manager and shall be in accordance with the terms, conditions, and procedures provided in the Specifications. 6. The Contractor shall not knowingly pay less than the general prevailing rate for per diem wages, as determined by the State of California Department of Industrial Relations and referred to in the Invitation to Bid, to any workman employed for the work to be performed under this contract; and the Contractor shall forfeit as a penalty to the City the sum of Twenty -Five Dollars ($25.00) for each calendar day, or fraction thereof, for such workman paid by him or by any subcontractor under him in violation of this provision (Sections 1770-1777, Labor Code of California). Pursuant to Section 1770, et. seq., of the California Labor Code, the successful bidder shall pay not less than the prevailing rate of per diem wages as determined by the Director of the California Department of Industrial Relations. These wage rates are available from the California Department of Industrial Relations' Internet website at http://www.dir.ca.gov. Contract 1300-1 159 Pursuant to Section 1725.5 of the California Labor Code, no contractor or subcontractor may be awarded a contract for public work on a public works project unless registered with the Department of Industrial Relations at the time the contract is awarded. Contractors and subcontractors may find additional information for registering at the Department of Industrial Relations website at http://www.dirca.gov/Public-Works/PublicWorks.html. Pursuant to Labor Code section 1771.1, no contractor or subcontractor may be listed on a bid proposal for a public works project submitted on or after March 1, 2015 unless registered with the Department of Industrial Relations. Furthermore, all bidders and contractors are hereby notified that no contractor or subcontractor may be awarded, on or after April 1, 2015, a contract for public work on a public works project unless registered with the Department of Industrial Relations. Pursuant to Labor Code section 1771.4, all bidders are hereby notified that this project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. 7. Concurrently with the execution of this Contract, Contractor shall furnish bonds of a surety satisfactory to City, as provided in said Specifications or Invitation to Bid, the cost of which shall be paid by Contractor. 8. Except for the gross negligence or willful misconduct of an Indemnified Party (as hereinafter defined), the Contractor hereby assumes liability for and agrees to defend (at Indemnified Parties' option), indemnify, protect and hold harmless City and its Project Consultants, and Engineers, officers, agents, and employees ("Indemnified Parties") from and against any and all claims, charges, damages, demands, actions, proceedings, losses, stop notices, costs, expenses (including counsel fees), judgments, civil fines and penalties, liabilities of any kind or nature whatsoever, which may be sustained or suffered by or secured against the Indemnified Parties arising out of or encountered in connection with this Contract or the performance of the Work including, but not limited to, death of or bodily or personal injury to persons or damage to property, including property owned by or under the care and custody of City, and for civil fines and penalties, that may arise from or be caused, in whole or in part, by any negligent or other act or omission of Contractor, its officers, agents, employees or Subcontractors including, but not limited to, liability arising from: 1. Any dangerous, hazardous, unsafe or defective condition of, in or on the premises, of any nature whatsoever, which may exist by reason of any act, omission, neglect, or any use or occupation of the premises by Contractor, its officers, agents, employees, or subcontractors; 2. Any operation conducted upon or any use or occupation of the premises by Contractor, its officers, agents, employees, or subcontractors under or pursuant to the provisions of this contract or otherwise; 3. Any act, omission or negligence of Contractor, its officers, agents, employees, or Subcontractors; 4. Any failure of Contractor, its officers, agents or employees to comply with any of the terms or conditions of this Contract or.any applicable federal, state, regional, or municipal law, ordinance, rule or regulation; and Contract 1300-2 160 5. The conditions, operations, uses, occupations, acts, omissions or negligence referred to in Sub -subsections (1), (2), (3), and (4), existing or conducted upon or arising from the use or occupation by Contractor on any other premises in the care, custody and control of City. The Contractor also agrees to indemnify City and pay for all damages or loss suffered by City including but not limited to damage to or loss of City property, to the extent not insured by City and loss of City revenue from any source, caused by or arising out of the conditions, operations, uses, occupations, acts, omissions or negligence referred to in Sub -subsections (1), (2), (3), (4) and (5). Contractor's obligations under this Section apply regardless of whether or not such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnified Party. However, without affecting the rights of City under any provision of this Contract, Contractor 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 Contract 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 Contractor will be for that entire portion or percentage of liability not attributable to the active negligence of City. Contractor agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this section from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Contractor in the performance of this Contract. In the event Contractor fails to obtain such indemnity obligations from others as required here, Contractor agrees to be fully responsible according to the terms of this section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City cis set forth here is binding on the successors, assigns or heirs of Contractor and shall survive the termination of this Contract or this section. This indemnity shall survive termination of the Contract or Final Payment hereunder. This Indemnity is in addition to any other rights or remedies that the Indemnified Parties may have under the law or under any other Contract Documents or Agreements. In the event of any claim or demand made against any party which is entitled to be indemnified hereunder, City may, in its sole discretion, reserve, retain or apply any monies to the Contractor under this Contract for the purpose of resolving such claims; provided, however, City may release such funds if the Contractor provides City with reasonable assurance of protection of the Indemnified Parties' interests. City shall, in its sole discretion, determine whether such assurances are reasonable. Approval of any insurance contracts by the City does not relieve the Contractor or subcontractors from liability under Section 1340-1.0, Indemnification of the Specifications. The City will not be liable for any accident, loss, or damage to the work prior to its completion and acceptance. Contract 1300-3 161 9. Contractor shall hold the County of Riverside, its officers, agents and employees free and harmless from any liability whatsoever, including wrongful death, based or asserted upon any act or omission of principal, its officers, agents, employees or sub -contractors relating to or in any way connected with or arising from the accomplishment of the work, whether or not such acts or omissions were in furtherance of the work requires by the Contract Documents and agrees to defend at his expense, including attorney fees, City of La Quinta, County of Riverside, its officers, agents, employees and Independent Architect in any legal action based on any such alleged acts or omissions. 10. Except as otherwise required, Contractor shall concurrently with the execution of this contract, furnish the City satisfactory evidence of insurance of the kinds and in the amounts provided in said Specifications, Section 1340-2.0, Insurance Requirements. This insurance shall be kept in full force and effect by Contractor during this entire contract and all premiums thereon shall be promptly paid by it. Each policy shall further state that it cannot be canceled without 30 days unconditional written notice to the City and shall name the City as an additional insured on the Commercial General Liability policy only. Contractor shall furnish evidence of having in effect, and shall maintain Workers Compensation Insurance coverage of not less than the statutory amount or otherwise show a certificate of self-insurance, in accordance with the Workers Compensation laws of the State of California. Failure to maintain the required amounts and types of coverage throughout the duration of this Contract shall constitute a material breach of this Contract. 11. Contractor shall forfeit as a penalty to City $25.00 for each laborer, workman, or mechanic employed in the execution of this Contract by said Contractor, or any subcontractor under it, upon any of the work herein mentioned, for each calendar day during which such laborer, workman, or mechanic is required or permitted to work at other than a rate of pay provided by law for more than 8 hours in any one calendar day and 40 hours in any one calendar week, in violation of the provisions of Sections 1810-1815 of the Labor Code of the State of California. 12. In accepting this Contract, Contractor certifies that in the conduct of its business it does not deny the right of any individual to seek, obtain and hold employment without discrimination because of race, religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status, sex or age as provided in the California Fair Employment Practice Act (Government Code Sections 12900, et seq.) Contractor agrees that a finding by the State Fair Employment Practices Commission that Contractor has engaged during the term of this Contract in any unlawful employment practice shall be deemed a breach of this Contract and Contractor shall pay to City $1,607.00 liquidated damages for each such breach committed under this contract. 13. Contractor also agrees that for contracts in excess of $30,000 and more than 20 calendar days duration, that apprentices will be employed without discrimination in an approved program in a ratio established in the apprenticeship standards of the craft involved (Sections 1777.5 and 1777.6, Labor Code of California). Contractors who willfully fail to comply will be denied the right to bid on public projects for a period of six months in addition to other penalties provided by law. 14. This Contract shall not be assignable by Contractor without the written consent of City. Contract 1300-4 162 15. In accepting this Contract, Contractor certifies that no member or officer of the firm or corporation is an officer or employee of the City except to the extent permitted by law. 16. Contractor certifies that it is the holder of any necessary California State Contractor's License and 'authorized to undertake the above work. 17. The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Contractor records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the contract and/or is paying only the amounts to which Contractor is properly entitled under the Contract or for other purposes relating to the Contract. 18. The Contractor shall maintain and preserve all such records for a period of at least three years after termination of the contract. 19. The Contractor shall maintain all such records in the City of La Quinta. If not, the Contractor shall, upon request, promptly deliver the records to the City or reimburse the City for all reasonable and extra costs incurred in conducting the audit at a location other than at City offices including, but not limited to, such additional (out of the City) expenses for personnel, salaries, private auditors, travel, lodging, meals and overhead. 20. The further terms, conditions, and covenants of the Contract are set forth in the Contract Documents, each of which is by this reference made a part hereof. Contract 1300-5 163 IN WITNESS WHEREOF, the parties have executed this Contract as of the dates stated below. "CITY" CITY OF LA QUINTA, a California municipal corporation Dated: By: Frank J. Spevacek, City Manager ATTEST: Susan Maysels, City Clerk APPROVED AS TO FORM: City Attorney Dated: Dated: "CONTRACTOR" (If corporation, affix seal) 5/24/16 Dated: By: Signature Name: Edwin Hunter Title: President Address: 41-905 Boardwalk Palm Desert, CA 92211 Street Address City State Zip Code E_Imaikehl@horizonlightinginc.com Dated: By: Signature Name: Title: Address: Street Address City State Zip Code E-mail: Contract 1300-6 164 CONSENT CALENDAR ITEM NO. City of La Quinta CITY COUNCIL MEETING: June 7, 2016 STAFF REPORT AGENDA TITLE: APPROVE CONTRACT SERVICES AGREEMENT WITH NELSON JANITORIAL SERVICE FOR 2016/17 JANITORIAL SERVICES. RECOMMENDATION Approve a Contract Services Agreement in the amount of $101,125 with Nelson Janitorial Service for 2016/17 janitorial services. EXECUTIVE SUMMARY The City contracts janitorial maintenance services for City facilities. The City posted a Request for Proposals (RFP) for janitorial services on May 2, 2016. A selection committee ranked the three lowest bids and selected Nelson Janitorial based on cost and qualifications. FISCAL IMPACT The annual cost is $101,125 and is allocated as follows - $72,325 to the General Fund and $28,800 to the Library Fund. BACKGROUND/ANALYSIS A RFP and Contract Services Agreement (Attachment 1) for janitorial services were posted on the City's Website on May 2, 2016. The current firm was not providing adequate supervision and staff elected to bid this contract. The facilities maintained include: City Hall, Library, Wellness Center, Museum, Public Works maintenance trailer, Fritz Burns pool office and restrooms (summer only), and three sports parks, snack bars and restrooms. A pre -proposal facility tour was held on May 16, 2016. Eight janitorial businesses attended; two were Coachella Valley based companies. Eight proposals were received and reviewed by the selection committee composed of three staff members. The three lowest bids were ranked according to cost and qualifications. Nelson Janitorial Service, based in Desert Hot Springs, was selected with an annual bid amount of $101,125. The previous janitorial contract was $102,220. Upon Council approval, services will begin July 1, 2016. The contract provides a one-year initial term with the option to extend four additional years. ALTERNATIVES City Council may reject the proposals and direct staff to re -advertise the RFP for Janitorial Services at La Quinta City facilities. Prepared by: Steve Howlett, Facilities Director Approved by: Frank Spevacek, City Manager Attachment: 1. Contract Services Agreement 165 166 ATTACHMENT 1 CONTRACT SERVICES AGREEMENT THIS CONTRACT SERVICES AGREEMENT (the "Agreement") is made and entered into by and et the CIIay CLF Lq QUINTA, a California municipal corporation ("City"), and E��'S �(NI RIA SVC, a California janitorial services contractor ("Contractor"). RECITALS WHEREAS, City desires to utilize the services of Contractor as an independent contractor to provide City with janitorial services at City owned facilities. A. Contractor represents that it is fully qualified to perform such services by virtue of its experience and the training, education and expertise of its principals and employees. B. City desires to retain Contractor, and Contractor desires to serve City to perform these services subject to the terms contained herein and all applicable local, state, and federal laws and regulations. NOW, THEREFORE, based on the foregoing Recitals and in consideration of the performance by the parties of the mutual promises, covenants, and conditions contained herein, the parties agree as follows: 1.0 SERVICES OF CONTRACTOR 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Contractor shall provide those services related to janitorial services as specified in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by this reference (the "Services"). Contractor represents and warrants that Contractor is a provider of first-class work and services and Contractor is experienced in performing the Services contemplated herein and, in light of such status and experience, Contractor covenants that it shall follow the highest professional standards in performing the Services required hereunder and that all materials will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase "highest professional standards" shall mean those standards of practice recognized by one or more first-class firms performing similar services under similar circumstances. 1.2 Compliance with Law. All Services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations, and laws of City and any Federal, State, or local governmental agency of competent jurisdiction. Contractor 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 1600, et seq., (collectively, the "Prevailing Wage Laws"), 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 the total compensation is ONE THOUSAND DOLLARS ($1,000) or more, Contractor 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. Contractor will maintain and will require all Last Revised May 2016 -1- 167 subcontractors to maintain valid and current DIR Public Works Contractor registration during the term of this Agreement. Contractor shall notify City in writing immediately, and in no case more than twenty-four (24) hours, after receiving any information that Contractor'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 Contractor to determine the correct salary scale. Contractor 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 Contractor'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. Contractor must forfeit to City TWENTY FIVE DOLLARS ($25.00) per day for each worker who works in excess of the minimum working hours when Contractor does not pay overtime. In accordance with the provisions of Labor Code Sections 1810 et seq., eight (8) hours is the legal working day. Contractor 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. Contractor shall defend (with counsel selected by City), indemnify, and hold City, 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), Contractor 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. Contractor acknowledges and agrees that it shall be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with such laws. Contractor shall require the same of all subcontractors. 1.3 Licenses, Permits, Fees and Assessments. Except as otherwise specified herein, Contractor 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. Contractor 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. Contractor 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. Contractor shall be responsible for all subcontractors' compliance with this Section. 1.4 Familiarity with Work. By executing this Agreement, Contractor 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 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 Contractor discover any latent or unknown conditions materially differing from those inherent in the Services or as represented by City, Contractor shall immediately inform City of such fact and shall not proceed except at Contractor's risk until written instructions are received from the Contract Officer (as defined in Section 4.2 hereof). Last Revised May 2016 -2- 168 1.5 Standard of Care. Contractor acknowledges and understands that the Services contracted for under this Agreement require specialized skills and abilities and that, consistent with this understanding, Contractor's work will be held to a heightened standard of quality and workmanship. Consistent with Section 1.4 hereinabove, Contractor represents to City that it holds the necessary skills and abilities to satisfy the heightened standard of work as set forth in this Agreement. Contractor shall adopt reasonable methods during the life of this Agreement to furnish continuous protection to the Services performed by Contractor, 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 Contractor shall not relieve Contractor 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 Contractor. 1.6 Additional Services. In accordance with the terms and conditions of this Agreement, Contractor shall perform work in addition to those specified in the Scope of Services ("Additional Services") only when directed to do so by the Contract Officer, provided that Contractor shall not be required to perform any Additional Services without compensation. No such Additional Services may be undertaken unless a written change order is first given by the Contract Officer to Contractor, incorporating therein any adjustment in (i) the Contract Sum, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of Contractor. It is expressly understood by Contractor 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 Contractor to secure the Contract Officer's written authorization for Additional Services shall constitute a waiver of any and all right to adjustment of the Contract Sum or time to perform this Agreement, whether by way of compensation, restitution, quantum meruit, or the like, for Additional Services provided without the appropriate authorization from the Contract Officer. Compensation for properly authorized Additional Services shall be made in accordance with Section 2.3 of this Agreement. 1.7 Special Requirements. Additional terms and conditions of this Agreement, if any, are set forth in Exhibit "D" (the "Special Requirements"), which is incorporated herein by this reference and expressly made a part hereof. In the event of a conflict between the provisions of the Special Requirements and any other provisions of this Agreement, the provisions of the Special Requirements shall govern. 2.0 COMPENSATION 2.1 Contract Sum. For the Services rendered pursuant to this Agreement, Contractor shall be compensated in accordance with Exhibit "B" (the "Schedule of Compensation") in a total amount not to exceed ONE HUNDRED ONE THOUSAND ONE HUNDRED TWENTY dllars ($ 101,125, .00) (the "Contract Sum"), except as provided in Section 1.6. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment in accordance with the percentage of completion of the Services, payment for time and materials based upon Contractor'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 Contractor at all project meetings reasonably deemed necessary by City; Contractor shall not be entitled to any additional compensation for attending said meetings. Compensation shall include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, Last Revised May 2016 -3- 169 and similar costs and expenses only when and if specified in the Schedule of Compensation. Regardless of the method of compensation set forth in the Schedule of Compensation, Contractor's overall compensation shall not exceed the Contract Sum, except as provided in Section 1.6 of this Agreement. Method of Payment. Any month in which Contractor wishes to receive payment, Contractor shall submit to City no later than the tenth (10th) business 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 Contractor specifying that the payment requested is for Services performed in accordance with the terms of this Agreement. 2.2 Compensation for Additional Services. Additional Services approved in advance by the Contract Officer pursuant to Section 1.6 of this Agreement shall be paid for in an amount agreed to in writing by both City and Contractor in advance of the Additional Services being rendered by Contractor. Any compensation for Additional Services amounting to five percent (5%) or less of the Contract Sum may be approved by the Contract Officer. Any greater amount of compensation for Additional Services must be approved by the La Quinta City Council. Under no circumstances shall Contractor receive compensation for any Additional Services unless prior written approval for the Additional Services is obtained from the Contract Officer pursuant to Section 1.6 of this Agreement. 3.0 PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. If the work is not completed in accordance with the Schedule of Performance, as set forth in Section 3.2 and Exhibit C, it is understood that City will suffer damage. 3.2 Schedule of Performance. All Services rendered pursuant to this Agreement shall be performed diligently and within the time period established in Exhibit "C" (the "Schedule of Performance"). Extensions to the time period specified in the Schedule of Performance may be approved in writing by the Contract Officer. 3.3 Force Majeure. The time period specified in the Schedule of Performance for performance of the Services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Contractor, 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 Contractor shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the Services for the period of the forced delay when and if in his or her judgment such delay is justified, and the Contract Officer's determination shall be final and conclusive upon the parties to this Agreement. 3.4 Term. Unless earlier terminated in accordance with Sections 8.8 or 8.9 of this Agreement, this Agreement shall commence on July 1, 2016 and terminate on June 30, 2017 ("Initial Term"). This agreement may be extended for four (4) additional one-year terms upon mutual agreement by both parties ("Extended Term"). Last Revised May 2016 -4- 170 4.0 COORDINATION OF WORK 4.1 Representative of Contractor. The following principals of Contractor ("principals") are hereby designated as being the principals and representatives of Contractor authorized to act in its behalf with respect to the Services specified herein and make all decisions in connection therewith: a. NAME, TITLE: DIANE NELSEN, OWNER E-mail: desertladydi@aol.com b. NAME, TITLE: DENNIS NELSEN E-mail: dndnel@aol.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 Contractor and devoting sufficient time to personally supervise the Services hereunder. For purposes of this Agreement, the Principals may not be replaced nor may their responsibilities be substantially reduced by Contractor without the express written approval of City. 4.2 Contract Officer. The "Contract Officer" or such other person will be designated in writing by the Facilities Director of City. It shall be Contractor's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the Services, and Contractor shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. The Contract Officer shall have authority to sign all documents on behalf of City required hereunder to carry out the terms of this Agreement. 4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability, and reputation of Contractor, its principals, and employees were a substantial inducement for City to enter into this Agreement. Except as set forth in this Agreement, Contractor shall not 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 Contractor, taking all transfers into account on a cumulative basis. Any attempted or purported assignment or subcontracting by Contractor without City's express written approval shall be null, void, and of no effect. No approved transfer shall release Contractor 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 Contractor, its agents, or 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 Contractor's employees, servants, representatives, or agents, or in fixing their number or hours of service. Contractor 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 Last Revised May 2016 -5- 171 consistent with that role. Contractor 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 Contractor in its business or otherwise or a joint venture or a member of any joint enterprise with Contractor. Contractor shall have no power to incur any debt, obligation, or liability on behalf of City. Contractor 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 Contractor as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Contractor for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Contractor 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, Contractor 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. Contractor agrees to pay all required taxes on amounts paid to Contractor 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. Contractor shall fully comply with the workers' compensation laws regarding Contractor and Contractor's employees. Contractor further agrees to indemnify and hold City harmless from any failure of Contractor to comply with applicable workers' compensation laws. City shall have the right to offset against the amount of any payment due to Contractor under this Agreement any amount due to City from Contractor as a result of Contractor's failure to promptly pay to City any reimbursement or indemnification arising under this Section. 4.5 Identity of Persons Performing Work. Contractor 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. Contractor represents that the Services required herein will be performed by Contractor 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 Contractor with any plans, publications, reports, statistics, records, or other data or information pertinent to Services to be performed hereunder which are reasonably available to Contractor only from or through action by City. 4.7 Utility Relocation. Not Applicable 4.8 Trenches or Excavations. Not Applicable 4.9 Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out the Services, Contractor 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, confined space procedures, equipment and other safety devices, equipment and wearing apparel as are Last Revised May 2016 -6- 172 necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures. 5.0 INSURANCE. 5.1 Insurance. Prior to the beginning of any Services under this Agreement and throughout the duration of the term of this Agreement, Contractor shall procure and maintain, at its sole cost and expense, and submit concurrently with its execution of this Agreement, policies of insurance as set forth in Exhibit "E" (the "Insurance Requirements") which is incorporated herein by this reference and expressly made a part hereof. 6.0 INDEMNIFICATION. 6.1 Indemnification. To the fullest extent permitted by law, Contractor shall indemnify, protect, defend and hold harmless City and any and all of its officers, employees, agents, and volunteers as set forth in Exhibit "F" ("Indemnification") which is incorporated herein by this reference and expressly made a part hereof. 7.0 RECORDS AND REPORTS. 7.1 Reports. Contractor shall prepare and submit to the Contract Officer such reports concerning the performance of the Services as the Contract Officer shall require. Contractor hereby acknowledges that City is greatly concerned about the cost of the Services to be performed pursuant to this Agreement. For this reason, Contractor agrees that if Contractor becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Services contemplated herein, Contractor shall promptly notify the Contract Officer of said fact, circumstance, technique, or event and the estimated increased or decreased cost related thereto. 7.2 Records. Contractor shall keep, and require subcontractors to keep, such ledgers books of accounts, invoices, vouchers, canceled checks, reports (including but not limited to payroll reports), studies, or other documents relating to the disbursements charged to City and the Services performed hereunder (the "Books and Records"), as shall be necessary to perform the Services required by this Agreement and enable the Contract Officer to evaluate the performance of such Services. Any and all such Books and Records shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer shall have full and free access to such Books and Records at all times during normal business hours of City, including the right to inspect, copy, audit, and make records and transcripts from such Books and Records. Such Books and Records shall be maintained for a period of three (3) years following completion of the Services hereunder, and City shall have access to such Books and Records in the event any audit is required. In the event of dissolution of Contractor's business, custody of the Books and Records may be given to City, and access shall be provided by Contractor'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. Not Applicable 7.4 Licensing of Intellectual Property. Not Applicable Last Revised May 2016 -7- 173 7.5 Release of Documents. Not Applicable 7.6 Confidentiality. Contractor covenants that all data, documents, discussion, or other information, if any, developed or received by Contractor or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Contractor to any person or entity without prior written authorization by City. City shall grant such authorization if disclosure is required by law. All City data, documents, discussion, or other information shall be returned to City upon the termination or expiration of this Agreement. Contractor's covenant under this section shall survive the termination or expiration of this Agreement. 8.0 ENFORCEMENT OF AGREEMENT. 8.1 California Law. This Agreement shall be interpreted, construed, and governed both as to validity and to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 8.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer; provided that if the default is an immediate danger to the health, safety, and general welfare, City may take such immediate action as City deems warranted. Compliance with the provisions of this Section shall be a condition precedent to termination of this Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party's right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City's right to terminate this Agreement without cause pursuant to Section 8.8. During the period of time that Contractor 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. Not Applicable 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 Contractor 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 Contractor. 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. Last Revised May 2016 -8- 174 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 Liquidated Damages. Since the determination of actual damages for any delay in performance of this Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, Contractor shall not be charged Liquidated Damages, but will be in default of this Agreement and therefore with the provisions of Section 8.9, shall warrant termination. 8.8 Termination Prior to Expiration of Term. This Section shall govern any termination of this Agreement, except as specifically provided in the following Section 8.9 for termination for cause. City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days' written notice to Contractor. Upon receipt of any notice of termination, Contractor shall immediately cease all Services hereunder except such as may be specifically approved by the Contract Officer. Contractor shall be entitled to compensation for all Services rendered prior to receipt of the notice of termination and for any Services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer. 8.9 Termination for Default of Contractor. If termination is due to the failure of Contractor to fulfill its obligations under this Agreement, Contractor shall vacate any City -owned property which Contractor 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 Contractor 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 Contractor for the purpose of setoff or partial payment of the amounts owed City. 8.10 Attorneys' Fees. If either Party to this Agreement is required to initiate or defend or made a Party to any action or proceeding in any way connected with this Agreement, the prevailing Party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorneys' fees; provided, however, that the attorneys' fees awarded pursuant to this Section shall not exceed the hourly rate paid by City for legal services multiplied by the reasonable number of hours spent by the prevailing Party in the conduct of the litigation. Attorneys' fees shall include attorneys' fees on any appeal, and in addition a Party entitled to attorneys' fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery, and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. The court may set such fees in the same action or in a separate action brought for that purpose. 9.0 CITY OFFICERS AND EMPLOYEES; NONDISCRIMINATION. 9.1 Non -liability of City Officers and Employees. No officer, official, employee, agent, representative, or volunteer of City shall be personally liable to Contractor, or any successor in interest, in the event of any default or breach by City or for any amount which may become due to Contractor or to its successor, or for breach of any obligation of the terms of this Agreement. Last Revised May 2016 -9- 175 9.2 Conflict of Interest. Contractor 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 Contractor's performance of the Services under this Agreement. Contractor 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. Contractor 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. Contractor 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. Contractor 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. Contractor shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry. 10.0 MISCELLANEOUS PROVISIONS 10.1 Notice. Any notice, demand, request, consent, approval, 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: Steve Howlett, Facilities Department Director 78495 Calle Tampico La Quinta, CA 92253 To Contractor: 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. Last Revised May 2016 -10- 176 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 Contractor 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, Contractor 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 Contractor 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. Last Revised May 2016 -11- 177 IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. CITY OF LA QUINTA, a California municipal corporation FRANK J. SPEVACEK, City Manager CONT TOR: By: ' /Q. Name: NELSEN'S JANITORIAL SERVICE Dated: Title: OWNER ATTEST: By: SUSAN MAYSELS, City Clerk, La Quinta, Name: California Title: APPROVED AS TO FORM: William H. Ihrke, City Attorney City of La Quinta, California Two signatures are required if a corporation. NOTE: CONTRACTOR'S SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONTRACTOR'S BUSINESS ENTITY Last Revised May 2016 -12- 178 City of La Quinta CITY COUNCIL MEETING: June 7, 2016 STAFF REPORT CONSENT CALENDAR ITEM NO. AGENDA TITLE: AUTHORIZE SUBMISSION OF A GRANT APPLICATION FOR CALIFORNIA DEPARTMENT OF TRANSPORTATION ACTIVE TRANSPORTATION PROGRAM FUNDING AND AUTHORIZE THE MAYOR TO SIGN A LETTER OF SUPPORT RECOMMENDATION Authorize the submission of a grant application for the California Department of Transportation Active Transportation Program and authorize the Mayor to sign a letter of support. EXECUTIVE SUMMARY • Surveys and interviews of participants during public outreach for The Village Specific Plan update indicated a strong desire to improve pedestrian and bicycle access to The Village and surrounding areas. • Staff proposes to submit an application in June 2016 requesting about $9.7 million for the "Village Complete Streets - A Road Diet Project" to fund pedestrian and bicycle friendly street improvements. • Staff also recommends that City Council authorize the Mayor to sign a letter of support to demonstrate the City's commitment to this project which will slow traffic and promote walking and bicycling in The Village. FISCAL IMPACT None with this action. If the grant is awarded, staff will submit a subsequent request to Council to appropriate about $2.5 million of Measure A funds for the local match (currently in 2019/20 Capital Improvement Program). The local match will be used to pay for all "soft costs" related to the improvements. BACKGROUND/ANALYSIS Improvements were developed through The Village Specific Plan public outreach meetings and will provide pedestrians and bicyclists improved access to Benjamin Franklin Elementary School, Civic Center, Community Park, and The Village. They include: roundabouts at five key intersections, travel lane reductions (from four to two) on Calles Tampico and Sinaloa as well as Eisenhower Drive, raised crosswalks, designated bicycle lanes and parallel parking (Attachment 1). The improvements will effectively connect the Cove neighborhood and the La Quinta Resort to The Village via the Bear Creek Trail. Staff anticipates connecting this system to CV Link in the future. Letters of support for the project have already been received from Coachella Valley Association of Governments and Desert Sands Unified School District. 179 ALTERNATIVES Council may choose to not authorize the grant application submission; however, staff does not recommend this alternative as without grant funding the City's ability to improve pedestrian and bicycle access to The Village and surrounding area will be very limited. Prepared by: Ed Wimmer, P.E., Principal Engineer Approved by: Timothy R. Jonasson, P.E., Design and Development Director/City Engineer Attachment: 1. Proposed Improvements Exhibit 180 Al IAOHMENT 1 Am& L R, JOHN ADAMS ELEMENTARY SCHOOL PROPOSED IMPROVEMENTS PFCTANGULAI PI ---- BIGHT -OF -WAY N;V SIF IGHr OPHOO c - SV;;T LIGHT 2 FLASHING I3 ACON (�p�F3) FLFCTO\IC r441 v �HICL� CONN,CT TO BENJAMIN FRANKLIN ELEMENTARY SCHOOL CA\YO\ A CALLE TAMPICO - CIVIC CENTER PARK TYPICAL I?FCTANGULAA kA1912 FLASHING 13FACO AVENIDA MONTEZUMA LA QUINTA COMMUNITY PARK AVENIDA MONTEZUMA I51I\G siG�\AUJZ \1-5C1-10\ Y') CAL 61K; LAN PAV;MFNT MAp N;V \GS J TYPICAL 5HAI? SOW SFCTION A -A ITOPOSFb SING,L; LAN; COPPI2OP ( TYPICAL) fir. - : `d I ; Z E�1It La Quinta ViIIa.e Com.Iete Streets A ROAD DIET PROJECT 400 EN ( IN FEET ) 1 inch = 400 ft. 0 400 SENGINEERING SOLUTIONS omni means MAY 2016 2178EX001 I- 1N3 W HJVJJ_\d 182 STUDY SESSI ON I TEM NO. Qty of La Quinta aTYcou a L MEETI NG: June 7, 2016 STAFF REPORT AGEN DA TI TLE: FI SCAL YEAR 2016/17 PROPOSED BUDGET RFcOM M EN DATI ON Provide direction regarding 2016/17 Budget options. EXECUTIVE SUMMARY The City Council received the Proposed 2016/17 Budget (Budget) on May 17, 2016; expenditures exceeded revenues by $327,000. Reallocating police resources would reduce the $960,700 2016/17 contract increase by $225,000. The Chamber of Commerce and Arts Foundation contracts could be reduced by $10,000 each, and the Community Grants Program by $20,000. Personnel reclassifications in Community Resources and the City Manager's Office combined with reducing professional services and computer equipment budgets, yield a $10,000 savings. Based on recent contract negotiations with the La Quinta City Employees Association (LQCEA), an increase of $31,500 to the staffing contingency budget is recommended. These modifications lower the projected deficit to $83,500. Until long-range solutions have been vetted, General Fund reserves would be used to balance the budget. FISCAL IMPACT These recommendations reduce the $327,000 deficit by $243,500 to $83,500. BACKGROUND/ ANALYSI S The proposed 2016/17 budget projected expenditures to exceed revenues by $327,000. In addition to this immediate challenge, the Oty faces substantial budget issues in future budget years. Revenues continue to be flat as costs for existing services rise. Public safety costs are the biggest challenge and comprise 53 percent of total General Fund expenditures. F verside County contract police costs, compared to 2015/16 increased by $960,700. Similarly, Riverside County contract fire services costs have increased by $322,600. It is probable that in 2017/18, the fire property tax 183 revenue will not cover fire service increases and the General Fund, for the first time, will have to shoulder this increase. At the May 3, 2016 Council meeting, based on recommendations from the Ad -Hoc Finance Advisory Committee, the Council approved placing a sales tax measure on the November ballot, which could yield $6 million in new tax revenue annually. This increase would position the Qty to deal with growing public safety costs and unfunded capital improvement needs. However, the current $327,000 immediate deficit must be addressed and the Executive Team crafted the following options. Deficit Reduction Options Reallocate police resources - $225,000. Reallocating police resources to further enhance service delivery efficiencies would reduce patrol hours by 3.3 percent, from 140 daily to 135 hours daily. Based on 2015/16 data, patrol hours are running at approximately 134 hours per day; this adjustment would align the contract with current patrol needs. Staff also recommends reallocating resources to increase allocations to both the Police Special Enforcement Fund and overtime; these categories facilitate specialized patrol services, traffic enforcement, and burglary prevention activities. This would also reserves funds for unanticipated police service spikes. This reallocation would reduce the police budget increase by $225,000. Reduce La Quinta Chamber of Commerce (LQCC) contract - $10,000. LQCC provides marketing and tourism enhancement services; the current year agreement is $127,500. Discussions with LQCC staff indicate this contract will be $117,500 for 2016/17. Reduce La Quinta Arts Foundation (LQAF) contract - $10,000. Similar to the LQCC agreement, the Qty contracts with LQAF for civic and promotional opportunities; the current agreement is $103,100 (rounded). For 2016/17 the LQAF request will be $93,100. Reduce Community Program Grants- $20,000. Last year, the Council increased the Community Grant Program appropriations from $40,000 to $60,000; an additional $20,000 was unused from 2014/15 and was appropriated for a total 2015/16 budget of $80,000. The Oty did not receive nor fund grants to expend the $80,000 budget, so staff recommends reducing the 2016/17 budget by $20,000 or from $80,000 to $60,000. Realign positions in the City Manager's Office, City Clerk's Office and Community Resources Department - Net savings of $10,000. In order to enhance services to internal and external customers, and to better align staff skills with service needs, the Executive Team recommends the following: ➢ A realignment of Human Resources staff through two reclassifications (no net change in total positions). The first, would downgrade the vacant Human Resources Manager position to a Human Resources Analyst for 184 an annual savings of $33,600. The second would upgrade the existing Human Resources Coordinator to a Human Resources Analyst for an annual cost of $4,300. Human Resources would operate with two Analysts under the guidance of the Community Resources Director. Professional services costs would also be reduced by $6,900. ➢ Currently, a Deputy City Clerk is shared by the City Manager's Office and City Clerk's Office, with this Deputy City Clerk handling Council support, Qty Manager support, public records requests and Housing Authority functions. Review of this workload indicated that sharing a Deputy Qty Clerk between two departments is not practical. The recommendation is to retitle the Deputy Qty Clerk to Executive Assistant (no cost) and have this position dedicated to Qty Council support and City Manager's Office. A Management Assistant in the City Manager's Office would be reclassified to a Management Specialist and handle the higher level, more complex tasks of the Housing Authority; the annual cost of this reclassification is $5,400. The Housing Authority would fund 50% of the Management Specialist's salary and benefits. With one Deputy Qty Oerk being assigned full-time to the City Manager's Office, the City Clerk's office requires part time administrative support to assist with the agenda process, prepare meeting minutes, receive and open bids, and conduct records management. Estimated cost of a part- time Administrative Technician is $25,800. ➢ Community Resources has reviewed the contingency for computer hardware in the Information Technology (ID budget and determined that it can be reduced by $5,000. Staffing Transitions/Contingency $31,500 increase. The guiding principles the Qty follows when addressing staff are: ➢ Reward performance ➢ Work within the Class and Compensation Structure ➢ Manage PERS increases )=. Ensure job rates reflect market rates (public and private). $168,500 has been budgeted for continued execution of these principles. Staff recommends increasing this amount by $31,500 to $200,000 to accommodate contractual adjustments with the La Quinta Qty Employees Association (LQCEA); these include adjusting market pay (the first since 2014) and medical cost increases. ALTERNATI VES Staff is seeking Council input on these recommendations. This direction would be incorporated in to a Final Budget for Council consideration on June 21, 2016. Prepared by: Approved by: Rita Conrad, Finance Director Frank J. Spevacek, Qty Manager 185 186 City of La Quinta CITY COUNCIL MEETING: June 7, 2016 STAFF REPORT AGENDA TITLE: DISCUSS 2016 PAVEMENT MANAGEMENT UPDATE RECOMMENDATION Discuss the 2016 Pavement Management Update. EXECUTIVE SUMMARY STUDY SESSION ITEM NO. • Every five years, the City reviews street conditions and prioritizes its street maintenance and resurfacing efforts in order to create a five year Pavement Management Plan (PMP). • Generally, this year's review shows the City is doing a very good job maintaining its streets; therefore, no reduction or increase in the level of street maintenance is recommended. FISCAL IMPACT None for this action. Per previous City Council direction, $1 million per year is allocated annually from the General Fund for roadway resurfacing. Staff recommends continuing this funding level for the next five year PMP. BACKGROUND/ANALYSIS To preserve the investment in its roadways, every five years the City inventories street conditions and prioritizes maintenance efforts which becomes the five year PMP. The attached draft PMP includes a current inventory (with condition and preservation requirements) and a five-year work plan that is annually incorporated in the Operation and Maintenance budget. Attachment 1 depicts the recommended annual roadway maintenance improvements. The complete draft PMP document is available for review in the Design and Development Department. Highlights of the draft PMP include: The roadway pavement network has: • 127.8 centerline miles; • 29,308,979 square feet of pavement; • An estimated replacement value of $176.1 million; and, • An average Pavement Condition Index (PCI) of 85 out of 100, which is considered very good condition. 187 The maintenance improvements recommended during the next five years include: • 2016/17 — Restripe major and primary arterial roads citywide as well as digging out, crack sealing, slurry sealing, grinding and/or overlaying selected segments of Avenida Bermudas, Eisenhower Drive, and the Desert Club Estates neighborhood east of City Hall. In order to address speeding on Avenida Bermudas, staff recommends City Council consider revisions to the lane striping after the street is slurry sealed. Staff will include this in the PMP presentation; • 2017/18 — Grind and overlay selected segments of Washington Street; • 2018/19 — Crack and slurry seal selected segments of Avenue 50 and select streets located just south of Highway 111 and Washington Street; • 2019/20 — Grind and overlay selected segments of Avenue 52; and, • 2020/21 — Crack and slurry seal selected segments on Avenue 54, Madison Street, and Avenue 58. Staff seeks direction on the above priorities and will bring back the final PMP for Council approval on June 21, 2016. Prepared by: Ed Wimmer, P.E., Principal Engineer Approved by: Timothy R. Jonasson, P.E., Design and Development Director/City Engineer Attachment: 1. City of La Quinta Draft Five -Year Plan 2016/21 188 0 U0 MN m J U WESTWP 4-I0 0 Q co 4 c/)$1 4 w CO 0 C H 0 z 0 z WN z J DR re F- z 0 cio tr HARVARD Z z —� wLL SABI,T nR R IES7� = O NE ,SIP- E titan SH -111 z J - w 9 zT m nom deti ID' J H TH 14JE—FLU F RD MARY LN -{ Q City of La Quinta Draft 5 Year Plan 2016-2021 rIdn' O 4JE� WEOQJ.I H w TIGOIS AVEI J r Lw 0 pro < U 0 50TH AVE OA CASTL ook 'V: NIDA ULTIMO 1 ■ CALLE T ��j ' • • moram AVENIDAe. • , ~111111r. law e X 1111 n1111111111 111111110111 •• 0 L Z J J < w 7 0 L w w i CITRUS G>_ 0 •—U 0 ▪ i m 2 J CD a • 414— co m < Z, rr a` 73 O 4 -A- w z 51ST AVE LV r REVOIR PL LJ 0 J w z ce O O z O — Z VIA PORTOFINO VIA C VIA PAESSAR D -o N g w > o < -7 Legend COLQCtrlines <all other values> 5 Year Plan 2016-2021 2016-2017 Zones 1,2 &5 CITY-WIDE STRIPING Digouts & Slurry Seal Crack Seal & Slurry Seal Grind & Overlay 2017-2018 Zone 2 Grind & Overlay 2018-2019 Zone 2 Crack Seal & Slurry Seal 2019-2020 Zone 2 Grind & Overlay 2020-2021 Zone 3 Crack Seal & Slurry Seal 0 a D AVE H z 0 POLO RD GAUNT 4VAY VAY GINS CT 54TH AVE 0 TIONAL DR TIBURON DR GF AIRP 0 z 0 2 TOMFAZIOLNN J w 1- m VIA z 0 - VID m 0 18 3OHNOW LVD w U J J_ ITAS E 58 O ARY LN TOM FAZIO LN SE R 1- z 0 0 190 City of La Quinta CITY COUNCIL MEETING: June 7, 2016 STAFF REPORT AGENDA TITLE: DISCUSS PARKING TIME LIMITS FOR CERTAIN PUBLIC STREETS IN THE LA QUINTA VILLAGE RECOMMENDATION Discuss and provide direction regarding parking time limits in the La Quinta Village. EXECUTIVE SUMMARY Businesses in the La Quinta Village have requested time limits for public parking spaces to facilitate space turnover. The City could institute three hour parking time limits on Avenida La Fonda, Calle Estado, and Desert Club Drive between the hours of 8:00 a.m. and 7:00 p.m. seven days a week (Attachment 1). FISCAL IMPACT The cost to install 20 parking signs is approximately $2,500; funds are available in the Facilities Department’s streets maintenance budget. BACKGROUND/ANALYSIS In recent years, Village business owners have requested parking time limits along certain public streets to facilitate parking turn over. After receiving a petition from several business owners on Calle Estado (Attachment 2), staff held a meeting inviting all affected business and property owners on December 1, 2015; however, only one representative (Old Town) attended. Staff recommends instituting three hour parking restrictions for all public parking spaces on Calle Estado, Avenida La Fonda, and Desert Club Drive to increase parking availability in the Village. The restrictions would apply from 8:00 a.m. to 7:00 p.m. seven days a week. Enforcement would occur on an as needed basis. No other parking time limit restrictions are proposed. Prepared by: Gabriel Perez, Planning Manager Approved by: Timothy R. Jonasson, P.E., Design and Development Director/City Engineer Attachments: 1. Proposed Area of Parking Restrictions in The Village 2. Petition from Calle Estado Business Owners STUDY SESSION ITEM NO. 191 192 AV E N I D A B E R M U D A S AVENIDA BUENA VENTURA CALLE TAMPICO ± ± Avenida La Fonda Calle Estado Proposed Area of Parking Restrictions in the Village- 8AM-7PM 0 100 200 300 40050Feet De s e r t C l u b D r i v e A T T A C H M E N T 1 1 9 3 1 9 4 A T T A C H M E N T 2 1 9 5 1 9 6 City of La Quinta CITY COUNCIL MEETING: June 7, 2016 STAFF REPORT AGENDA TITLE: ADOPT RESOLUTION CONFIRMING DIAGRAM AND ASSESSMENT FOR 2016/17 LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT 89-1 RECOMMENDATION Adopt a resolution confirming the diagram and assessment for Landscape and Lighting Assessment District 89-1, Fiscal Year 2016/17, pursuant to the Engineer’s report. EXECUTIVE SUMMARY Annually, the Council must take certain actions including holding this public hearing in order to levy the annual assessments for the Citywide Landscape and Lighting Assessment District 89-1 (District). These assessments fund 67% of the citywide landscape, lighting, median, and parkway maintenance costs. The 2016/17 assessment rate will remain at $35.60 per dwelling/parcel also identified as an Equivalent Benefit Unit (EBU). This has been the rate since 1997. Adopting the attached resolution is necessary to place this assessment on the tax roll for 2016/17 by the County Assessor. FISCAL IMPACT The 2016/17 estimated cost for retention basin and right-of-way maintenance (landscaping and lighting maintenance for medians and parkways) is $1,569,249. The assessment charge will generate an estimated $958,897. The City will also receive $100,000 from County Service Area 152, levied by Riverside County, to fund retention basin maintenance. The combined income is projected to be $1,058,897; this leaves a shortfall (funded by the General Fund) of $510,352. BACKGROUND/ANALYSIS In 1989, the Council formed a District to fund costs associated with the maintenance, construction and servicing of landscape areas, streetlights and traffic signals. The District was modified in 1997 to conform to Proposition 218, which required the removal of maintenance costs for facilities that provide general benefit to the public such as parks, fire stations, and public buildings. Since 1997, the City’s District has only included maintenance costs for streets, streetlights, traffic signals, landscape medians, parkways and retention basins since these costs are considered “exempt” under Proposition 218. Beginning in 1997, maintenance of “nonexempt” items (i.e., facilities providing general PUBLIC HEARING ITEM NO. 1 197 benefit) were shown separately, but still shown as part of the overall landscape maintenance budget. Proposition 218 also requires that any assessment rate increase be supported by a benefits analysis and Citywide vote in favor of the increase. These requirements have virtually locked in the assessment rate at $35.60 since 1997, while the District’s maintenance costs have nearly tripled. On May 3, 2016, the Council adopted the following resolutions: Resolution No. 2016-011, approving the Preliminary Engineer’s Report for Fiscal Year 2016/17 in connection with the District. Resolution No. 2016 -012, declaring intention to levy annual assessment for construction, maintenance, and servicing landscape and lighting improvements within the boundaries of the territory included in the Citywide District, and giving notice thereof. The engineer’s report must contain the following information: 1. A description of the services to be provided throughout the District; 2. Total costs necessary to provide all services described in the engineer’s report; 3. A diagram showing the boundaries of the District, including special benefit zones; and 4. An assessment schedule. The final engineer’s report for the 2016/17 assessment has been completed (Attachment 1) and establishes the maintenance budget and number of benefitting parcels. The chart below compares the projected 2016/17 data with the 2015/16 data: FY 2015/16 FY 2016/17 Citywide Benefit Zone Yes Yes Number of Local Benefit Units 6 6 Number of Equivalent Benefit Units (EBUs) 26,948 26,937 EBU Rate $35.60/EBU $35.60/EBU District Revenue $959,313 $958,897 Willdan projects the number of EBU’s will be reduced from 2015/16 to 2016/17 due to changes in the County’s land use classifications and/or Assessor Parcel Number changes. The actual EBU’s will be based on the final County Secured Tax Roll for 2016/17. All property owners, including those within six previously identified local benefit zones, will be assessed at a flat rate. This public hearing affords an opportunity for affected property owners to ask questions regarding the District and to provide public testimony regarding any proposed changes. No changes are proposed at this time. Only after the public hearing has been conducted can the City Council adopt assessment fees for Fiscal Year 2016/2017. Should the Council receive testimony from the public through the end of the public meeting/hearing that warrants a change to the assessment level, the Council can lower the assessment by a majority vote of the Council, or increase it but only by a special benefit analysis and vote through a property owner ballot. If lowered, the reduction in 198 assessment level would impact the revenues necessary to fund the District’s 2016/17 operations budget. If service levels were not adjusted accordingly, the General Fund would make up the difference between the reduced revenue level and the District’s operations budget. ALTERNATIVES The Council can direct staff to adjust the engineer’s report to reflect any changes resulting from the public hearing. Should the Council direct amendments to the engineer’s report, an amended report and the impacts of the amendments would be submitted to the Council for approval at the June 21, 2016 City Council meeting. Prepared by: Steve Howlett, Facilities Director Approved by: FrankJ. Spevacek, City Manager Attachment: 1. Final Engineer’s Report. 199 200 RESOLUTION NO. 2016 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, CONFIRMING THE DIAGRAM AND ASSESSMENTS FOR FISCAL YEAR 2016/17 LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT 89-1 (PURSUANT TO THE LANDSCAPE AND LIGHTING ACT OF 1972) WHEREAS, maintenance of landscape improvements in roadways and drainage facilities is a very important service in our community. Landscaping, if well maintained, provides beautification and enhancement to the surroundings, along with a positive effect on property values; and WHEREAS, the annual assessments generated by the existing 1972 Act City of La Quinta Landscaping and Lighting District will fund the cost of providing installation, servicing, maintenance, and operation of landscaping, lighting and appurtenant facilities within the City of La Quinta that are exempt under provisions of Proposition 218 voted in by the California residents during the November 1996 election; and WHEREAS, on May 3, 2016, the City Council adopted the following resolutions: Resolution No. 2016-011, approving the Preliminary Engineer’s Report for Fiscal Year 2016/17 in connection with Landscape and Lighting Assessment District 89-1. Resolution No. 2016-012, declaring intention to levy annual assessments for construction, maintenance, and servicing landscape and lighting improvements within the boundaries of the territory included in the City-wide Landscape and Lighting Assessment District 89-1, and giving notice thereof; and WHEREAS, a Notice of a Public Hearing to Adopt a Resolution Confirming the Diagram and Assessments for Fiscal Year 2016/17 Landscape and Lighting Assessment District 89-1 was published in The Desert Sun newspaper on May 27, 2016. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: SECTION 1. Pursuant to Chapter 3 of the Landscaping and Lighting Act of 1972, the City Council directed the City Engineer to prepare and file an annual report for Fiscal Year 2016/2017. SECTION 2. The City Engineer filed an annual report on May 3, 2016, and the City Council adopted a Resolution of Intention to Levy and Collect Assessments within Landscape and Lighting Assessment District 89-1 for Fiscal Year 2016/17 and set a Public Meeting/Hearing date of June 7, 2016 at the La Quinta City Council Chambers, 201 Resolution No. 2016- Landscape and Lighting Assessment District 89-1 Adopted: June 7, 2016 Page 2 of 3 78-495 Calle Tampico, La Quinta, California. Notice of the Public Meeting/Hearing was given in the time and manner required by law. SECTION 3. On June 7, 2016, a Public Meeting/Hearing for which notice was given, was conducted at which every interested person was given an opportunity to object to the proposed assessment in writing or orally, and the City Council has considered each protest. SECTION 4. On June 7, 2016, the City Council found that written protests against the proposed assessment had not been made by owners representing more than one-half of the area of the land to be assessed. SECTION 5. The City Council hereby confirms the diagram and assessment as set forth in the annual report of the Engineer of Work and hereby levies the assessment set forth for Fiscal Year 2016/17. SECTION 6. The City Council authorizes and directs the City Clerk to (i) submit certified copies of this resolution to the County of Riverside and (ii) take such other and further actions as may be necessary and proper for the County Assessor to place this assessment on the tax roll. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held on this 7th day of June 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ______________________________ L I N D A E V A N S , M A Y O R City of La Quinta, California 202 Resolution No. 2016- Landscape and Lighting Assessment District 89-1 Adopted: June 7, 2016 Page 3 of 3 ATTEST: _____________________________________ SUSAN MAYSELS, CITY CLERK City of La Quinta, California (CITY SEAL) APPROVED AS TO FORM: _______________________________________ WILLIAM H. IHRKE, CITY ATTORNEY City of La Quinta, California 203 204 City of La Quinta Street Lighting and Landscape District No. 89-1 2016/2017 ENGINEER’S ANNUAL LEVY REPORT Intent Meeting: May 3, 2016 Public Hearing: June 7, 2016 27368 Via Industria Suite 200 Temecula, CA 92590 T 951.587.3500 | 800.755.6864 F 951.587.3510 www.willdan.com/financial 205 206 ENGINEER'S REPORT AFFIDAVIT CITY OF LA QUINTA Street Lighting and Landscape District No. 89-1 Riverside County, State of California This Report and the enclosed diagrams show the exterior boundaries of the District as they existed at the time of the passage of the Resolution of Intention. Reference is hereby made to the Riverside County Assessor’s maps for a detailed description of the lines and dimensions of parcels within the District. The undersigned respectfully submits the enclosed Report as directed by the City Council. Dated this ____________ day of ______________, 2016. Willdan Financial Services Assessment Engineer On Behalf of the City of La Quinta By: ________________________________ Stacee Reynolds Senior Project Manager, District Administration Services By: ________________________________ Richard Kopecky R. C. E. # 16742 207 ENGINEER'S REPORT CITY OF LA QUINTA STREET LIGHTING AND LANDSCAPE DISTRICT NO. 89-1 I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll thereto attached was filed with me on the day of , 2016. BY: Susan Maysels, City Clerk City of La Quinta Riverside County, California I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll thereto attached, was approved and confirmed by the City Council of the City of La Quinta, California, on the day of , 2016. BY: Susan Maysels, City Clerk City of La Quinta Riverside County, California I HEREBY CERTIFY that the enclosed Assessment Roll was filed with the County Auditor of the County of Riverside, on the day of , 2016. BY: Susan Maysels, City Clerk City of La Quinta Riverside County, California 208 TABLE OF CONTENTS I. OVERVIEW 1 A. INTRODUCTION 1 B. COMPLIANCE WITH CURRENT LEGISLATION 1 C. HISTORICAL BACKGROUND AND LEGISLATION 2 II. DESCRIPTION OF THE DISTRICT 2 A. DISTRICT BOUNDARIES AND SPECIFIC AREAS OF IMPROVEMENT 2 B. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT 2 C. IMPROVEMENTS WITHIN THE DISTRICT 4 III. METHOD OF APPORTIONMENT 4 A. GENERAL 4 B. BENEFIT ANALYSIS 5 C. METHODOLOGY 6 IV. DISTRICT BUDGETS 9 A. DESCRIPTION OF BUDGET ITEMS 9 B. 2016/2017 DISTRICT BUDGET 10 APPENDIX A – DISTRICT ASSESSMENT DIAGRAM 13 APPENDIX B – 2016/2017 COLLECTION ROLL 14 209 2016/2017 LLD 89-1 Page 1 of 18 I. OVERVIEW A. INTRODUCTION The City of La Quinta (the “City”) annually levies and collects special assessments in order to provide and maintain the facilities, improvements and services within Street Lighting and Landscape District No. 89-1 (the “District”). The District was formed in 1989 pursuant to the Landscaping and Lighting Act of 1972 (the “1972 Act”), Part 2 of Division 15 of the Streets and Highways Code and authorizes the Agency to annually levy and collect assessments to maintain the services and improvements related thereto. This Engineer’s Annual Levy Report (the “Report”) describes the District, any changes to the District, and the proposed assessments for Fiscal Year 2016/2017. The proposed assessments are based on the estimated cost to maintain improvements that provide special benefit to properties assessed within the District. The various improvements within the District and the costs of those improvements are identified and budgeted separately, including expenditures, deficits, surpluses, revenues, and reserves. The word “parcel,” for the purposes of this Report, refers to an individual property assigned its own Assessor Parcel Number (“APN”) by the Riverside County Assessor’s Office. The Riverside County Auditor/Controller uses Assessor Parcel Numbers and specific fund numbers on the tax roll to identify properties assessed for special district benefit assessments. Each parcel within the District is assessed proportionately for those improvements provided by the District and from which the parcel receives special benefit. Following consideration of public comments, written protests at a noticed public hearing and review of the Report, the City Council may order amendments to the Report or confirm the Report as submitted. Following final approval of the Report, and confirmation of the assessments, the Council may order the levy and collection of assessments for Fiscal Year 2016/2017 pursuant to the 1972 Act. In such case, the assessment information will be submitted to the County Auditor/Controller, and included on the property tax roll for each benefiting parcel for Fiscal Year 2016/2017. B. COMPLIANCE WITH CURRENT LEGISLATION The District was formed in 1989 pursuant to the Landscaping and Lighting Act of 1972 (the “1972 Act”). As such, the City has determined that pursuant to California Constitutional Article XIIID Section 5 Subsection A the existing assessments are exempt from the substantive and procedural requirements of Proposition 218. Any new or increased assessments above the maximum assessment rates previously approved and levied by the City Council would be subject to both the substantive and procedural requirements of the Proposition. 210 2016/2017 LLD 89-1 Page 2 of 18 C. HISTORICAL BACKGROUND AND LEGISLATION The assessments for the District provide a special benefit to the parcels assessed, and the City utilizes General Fund Revenues to fund improvements and services that are considered general benefit. This District was formed pursuant to the 1972 Act, which permits the establishment of assessment districts by cities for the purpose of providing for the maintenance of certain public improvements, which include the facilities existing within the District, as those improvements provide a special benefit to parcels. The City Council reviews the current and projected years’ costs for the construction, operation, maintenance, and servicing of the District facilities and sets the assessment for the ensuing fiscal year, which runs between July 1 and June 30. II. DESCRIPTION OF THE DISTRICT A. DISTRICT BOUNDARIES AND SPECIFIC AREAS OF IMPROVEMENT The boundaries of the District are coterminous with the boundaries of the City. The Diagram of the District showing the exterior boundaries has been submitted to the City Clerk at the City and is included by reference. B. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT As applicable or may be applicable to this District, the 1972 Act defines improvements to mean one or any combination of the following: The installation or planting of landscaping. The installation or construction of statuary, fountains, and other ornamental structures and facilities. The installation or construction of public lighting facilities. The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof, including, but not limited to, grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities. The maintenance or servicing, or both, of any of the foregoing. 211 2016/2017 LLD 89-1 Page 3 of 18 The acquisition of any existing improvement otherwise authorized pursuant to this section. Incidental expenses associated with the improvements including, but not limited to: The cost of preparation of the report, including plans, specifications, estimates, diagram, and assessment; The costs of printing, advertising, and the publishing, posting and mailing of notices; Compensation payable to the County for collection of assessments; Compensation of any engineer or attorney employed to render services; Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements; Any expenses incidental to the issuance of bonds or notes pursuant to Section 22662.5. Costs associated with any elections held for the approval of a new or increased assessment. The 1972 Act defines "Maintain" or "maintenance" to mean furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including: Repair, removal, or replacement of all or any part of any improvement. Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury. The removal of trimmings, rubbish, debris, and other solid waste. The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. 212 2016/2017 LLD 89-1 Page 4 of 18 C. IMPROVEMENTS WITHIN THE DISTRICT The District improvements are the operation, servicing and maintenance of landscaping, lighting and appurtenant facilities, including, but not limited to, personnel, electrical energy, water, materials, contracting services, and other items necessary for the satisfactory operation of these services described as follows: Landscaping and Appurtenant Facilities include, but are not limited to, landscaping, planting, shrubbery, trees, irrigation systems, hardscapes, fixtures, sidewalk maintenance and appurtenant facilities, located within the public street rights-of-way, medians, trails, and dedicated street, drainage or sidewalk easements within the boundary of the District. Lighting and Appurtenant Facilities include, but are not limited to, poles, fixtures, bulbs, conduits, equipment including guys, anchors, posts and pedestals, metering devices, controllers and appurtenant facilities as required to provide safety lighting and traffic signals within public street rights-of-way and easements within the boundaries of the District. Maintenance is defined as the furnishing of services and materials for the operation and usual maintenance, operation and servicing of the landscaping, public lighting facilities and appurtenant facilities, including repair, removal or replacement of landscaping, public lighting facilities, or appurtenant facilities; providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; and the removal of trimmings, rubbish, debris and other solid waste. Servicing is defined as the furnishing of water for the irrigation of the landscaping and the furnishing of electric current or energy, gas or other illuminating agent for the public lighting facilities, or for the lighting or operation of landscaping or appurtenant facilities. The plans and specifications for the improvements are on file in the office of the City Engineer and are by reference made a part of this report. III. METHOD OF APPORTIONMENT A. GENERAL The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements that include the construction, 213 2016/2017 LLD 89-1 Page 5 of 18 maintenance and servicing of public lights, landscaping and appurtenant facilities. The 1972 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value: “The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.” The formula used for calculating assessments in this District therefore reflects the composition of the parcels, and the improvements and services provided, to apportion the costs based on benefit to each parcel. B. BENEFIT ANALYSIS Properties within the District boundary are found to derive a special benefit from the improvements provided by the District. These properties include single family residential, non-residential, vacant residential and non-residential, golf courses, agricultural and hillside conservation properties, vacant and remote non-residential and rural and estate residential properties. Special Benefits The method of apportionment (method of assessment) is based on the premise that each assessed parcel receives special benefit from the improvements maintained and funded by the assessments, specifically, landscaping and lighting improvements installed in connection with the development of these parcels. The desirability of properties within the District is enhanced by the presence of well- maintained landscaping and lighting improvements in close proximity to those properties. The annual assessments outlined in this Report are based on the estimated costs to provide necessary services, operation, administration, and maintenance required to ensure the satisfactory condition and quality of each improvement. The special benefits associated with the landscaping improvements are specifically: Enhanced desirability of properties through association with the improvements. Improved aesthetic appeal of properties within the District providing a positive representation of the area. Enhanced adaptation of the urban environment within the natural 214 2016/2017 LLD 89-1 Page 6 of 18 environment from adequate green space and landscaping. Environmental enhancement through improved erosion resistance, and dust and debris control. Increased sense of pride in ownership of property within the District resulting from well-maintained improvements associated with the properties. Reduced criminal activity and property-related crimes (especially vandalism) against properties in the District through well-maintained surroundings and amenities. Enhanced environmental quality of the parcels by moderating temperatures, providing oxygenation and attenuating noise. The special benefits of street lighting are the convenience, safety, and security of property, improvements, and goods, specifically: Enhanced deterrence of crime – an aid to police protection. Increased nighttime safety on roads and highways. Improved visibility of pedestrians and motorists. Improved ingress and egress to and from property. Reduced vandalism, damage to improvements or property, and other criminal acts. Improved traffic circulation and reduced nighttime accidents and personal property loss. Increased promotion of business during nighttime hours in the case of commercial properties. The preceding special benefits contribute to a specific enhancement and desirability of each of the assessed parcels within the District. C. METHODOLOGY Pursuant to the 1972 Act, the costs of the District may be apportioned by any formula or method that distributes the net amount to be assessed among the assessable parcels in proportion to the estimated special benefits to be received by each such parcel from the improvements. The special benefit formula used within the District should reflect the composition of the parcels - and the improvements and services provided therein - to apportion the costs based on estimated special benefit to each parcel. 215 2016/2017 LLD 89-1 Page 7 of 18 The cost to provide maintenance and service of the improvements within the District shall be equitably distributed among each assessable parcel based on the estimated special benefit received by each parcel. Equivalent Benefit Units To equitably spread special benefit to each parcel, it is necessary to establish a relationship between the various types of properties within the District and the improvements that benefit those properties. Each parcel within the District is assigned an Equivalent Benefit Unit (“EBU”) factor that reflects its land use, size and development, or development potential. Parcels that receive special benefit from the various District improvements are proportionately assessed for the cost of those improvements based on their calculated EBU. The EBU method assessment for this District uses the Single Family Residential parcel as the basic unit of assessment. A Single Family Residential (“SFR”) parcel equals one EBU. Every other land-use is assigned an EBU factor based on an assessment formula that equates the property’s specific land-use and relative special benefits compared to the Single Family Residential parcel. The EBU method of apportioning special benefits is typically seen as the most appropriate and equitable assessment methodology for districts formed under the 1972 Act, as the benefits to each parcel from the improvements are apportioned as a function of land use type, size, and development. The following table provides a listing of land use types, the EBU factors applied to that land use and the multiplying factor used to calculate each parcel’s individual EBU for each improvement provided in the District. During the formation of the District, a methodology was developed to calculate the EBUs for other residential and non-residential land use parcels, which are outlined below for reference. Every land use is assigned EBUs based on the assessment formula approved for the District. Parcels which have been determined to receive greater benefit than the SFR parcel are assigned more than 1 EBU and parcels that are determined to receive lesser benefit than SFR parcels are assigned less than 1 EBU as reflected in the Assessment Methodology. Land Use EBU Factor Exempt Parcels 0.0 Single Family Residential Parcels 1.0 per unit Non-Residential Parcels 5.0 per acre; 1.0 minimum Vacant Residential Parcels 0.33 per unit Vacant Non-Residential Parcels 1.65 per acre for first 20 acres only Golf Course Parcels 0.50 per acre; 1.0 minimum Agricultural Parcels 0.25 per acre; 1.0 minimum Hillside Conservative Zone Parcels 0.10 per acre Vacant & Remote Parcels 0.825 per acre for first 20 acres only Rural/Estate Residential 1.0 + 0.33 per acre in excess 1 acre 216 2016/2017 LLD 89-1 Page 8 of 18 Single-Family Residential The City’s General Plan allows up to one acre of area for subdivided residential lots. The subdivided single family lot equal to or less than one acre in size is the basic unit for calculation of the benefit assessments. Parcels less than one acre in size zoned for single-family residential use are assessed one (1) EBU. Non-Residential The factor used for converting nonresidential is based on the average number of typical single-family residential lots of five per acre. Therefore, non-residential parcels will be assessed five (5) EBUs per acre with a minimum number per parcel of one (1) EBU. Vacant Residential Parcels defined as single family residential parcels less than one acre and having no structure will be assessed 33 percent (33%) of a single-family dwelling, or 0.33 EBU per parcel. Vacant Non-Residential Parcels not considered single family residential parcels less than one acre, and having no structure will be assessed based on acreage. The typical development in La Quinta occurs in increments of twenty (20) acres or less. The first twenty (20) acres of a Vacant Non-Residential parcel will be assessed at a rate of 33 percent (33%) of developed nonresidential properties, or 1.65 EBU per acre or any portion of an acre. The minimum number of EBUs per parcel is one (1) EBU. Any parcel of land greater than twenty (20) acres is considered open space and exempt from assessment until such time as parcel subdivision or development occurs. Golf Courses Properties identified as golf courses will be assessed a rate of 10 percent (10%) of the developed nonresidential properties, or 0.50 EBU per acre or any portion of an acre. The minimum number per parcel is one (1) EBU. Agricultural Properties identified as agricultural will be assessed a rate of 5 percent (5%) of developed nonresidential properties, or 0.25 EBU per acre or any portion of an acre. The minimum number per parcel is one (1) EBU. Hillside Conservation Parcels located in areas zoned Hillside Conservation per the City’s Official Zoning Map will be assessed on the basis of allowable development within the Hillside Conservation Zone. The parcel will be assessed as one dwelling unit per ten (10) acres or 0.10 EBU per acre or any portion of an acre. Vacant and Remote Non-Residential Parcels (Annexation No. 9) Parcels not considered single family residential parcels less than one (1) acre and do not contain structures, will be assessed based on acreage. The City defines 217 2016/2017 LLD 89-1 Page 9 of 18 Vacant and Remote Non-Residential as parcels physically separated from City services and not readily able to develop due to difficult access and utility limitations. The land values are typically one half the value of other Vacant Non- Residential parcels because of the high cost of constructing appropriate access and utility infrastructures necessary. The Vacant and Remote Non-Residential parcels are assessed a rate of 0.825 EBUs per acre or portion thereof, for the first twenty (20) acres, with a minimum of one (1) EBU per parcel. Rural/Estate Residential Parcels of one acre or more in size, but having only one residential unit are identified as Rural/Estate Residential. These parcels will be assessed a rate of one (1) EBU for the first acre and 0.33 EBUs for each additional acre or portion of an acre. Exempt Property Publicly owned property and utility rights-of-way are exempt from assessment, as well as parcels of land shown on the County Assessor's records as Vacant Desert Land, Vacant Mountain Land, Agricultural Preserve and Public Utility owned land. This Report does not propose an increase in the District assessment rates for Fiscal Year 2016/2017 over or above the maximum rate established. The proposed rate per EBU for Fiscal Year 2016/2017 is the same rate assessed for Fiscal Year 2015/2016. The base assessment rate to be approved for Fiscal Year 2016/2017 is $35.60. The maximum assessment rate per EBU may not increase without a vote of the property owners in the District. Therefore, the assessment is proposed to remain at the maximum amount of $35.60 per EBU. This equates to total projected assessment revenue of $958,897 The City proposes the remaining $2,150,308 be funded through a General Fund contribution of $2,050,308 and $100,000 of revenue from CSA 152. IV. DISTRICT BUDGETS A. DESCRIPTION OF BUDGET ITEMS The 1972 Act requires that a special fund be established and maintained for the revenues and expenditures of the District. Funds raised by assessment shall be used only for the purposes as stated herein. A contribution to the District by the City may be made to reduce assessments, as the City Council deems appropriate. The following describes the services and costs that are funded through the District, shown in the District Budgets. District Costs Personnel – Reflects relevant City Staff salaries, wages and benefits, and also includes Worker’s Comp insurance, Stand-By, and Overtime labor. 218 2016/2017 LLD 89-1 Page 10 of 18 Contract Services – Includes contracted labor, such as the Riverside County Tax Roll Administration Fees, maintenance and repair of traffic signals, tree trimming, and security service. Rental Services – Reflects funds used for the purpose of uniform rental. Vehicle Operations – Includes the maintenance of fleet vehicles. Utilities – Includes the electric, telephone, and water services. Travel Training & Meetings – Reflects the funds used for the purposes of training and meetings. Information Technology – Includes computers, printers, and other related items and services. Operating Supplies – This item includes plant replacement, safety gear, field materials, and the materials used for the purposes of removing graffiti. Small Tools/Equipment – Includes non-capital small tools and equipment. District Administration – The cost for providing the coordination of District services and operations, response to public concerns and education, as well as procedures associated with the levy and collection of assessments. This item also includes the costs of contracting with professionals to provide any additional administrative, legal or engineering services specific to the District including any required notices, mailings or property owner protest ballot proceedings. B. 2016/2017 DISTRICT BUDGET For the purpose of estimating costs for the maintenance and servicing, actual costs are used where possible. However, where the improvements are new, or where actual maintenance experience is lacking, cost estimates will be used to determine costs. The Budget of estimated cost of operation, servicing, and maintenance for Fiscal Year 2016/2017 is summarized on the next page in Table 1. 219 2016/2017 LLD 89-1 Page 11 of 18 Table 1 Fiscal Year 2016/2017 Budget Category Description Estimated Expenditures Funding Fiscal Year 2016/2017 L & L Assessments General Fund–Parks Personnel Salaries-Permanent Full Time $327,992 $100,480 $227,512 Other Benefits & Deductions 143,137 37,795 105,342 Stand By Stand By Overtime Overtime Total Personnel $471,129 $138,275 $332,854 Contract Services Annual Lighting & Landscape Report 18,000 18,000 Civic Center Campus Lake Maintenance 15,000 15,000 Landscape Lighting Maintenance 185,000 160,000 25,000 Financial Services Admin. Fee Citywide Maintenance Contract 991,380 633,060 358,320 Undeveloped Parks PM10 Services Maintenance & Repair 30,000 30,000 CVWD Lease-Pioneer Dog Park 1 1 Tree Trimming 19,000 15,000 4,000 Janitorial Services Security Service - Corporation Yard Fritz Burns Pool 35,000 35,000 Musco Lighting 1,000 1,000 Total Contract Services 1,294,381 $826,060 $468,321 Rental Services Uniforms 1,600 $600 $1,000 Total Rental Services 1,600 $600 $1,000 Park Equipment Vehicle Operations Facilities Charges $1,923 $1,923 Fleet Maintenance 1,400 1,400 Facility & Equipment Depreciation 502,523 502,523 Total Operations $505,846 $1,400 $504,446 Utilities Electric $249,500 $137,000 $112,500 Phone 500 500 Water 310,900 200,000 110,900 Total Utilities $560,900 $337,000 $223,900 Travel Training & Meetings $7,200 $2,000 $5,200 Total Travel Training & Meetings $7,200 $2,000 $5,200 Information Technology Computers Printers and Services $12,522 $7,100 $5,422 Total Information Technology $12,522 $7,100 $5,422 Operating Supplies Plant Replacement $50,000 $30,000 $20,000 Graffiti Removal 32,500 12,500 20,000 Safety Gear 400 1,000 Field Materials 114,000 64,000 50,000 Total Operating Supplies $196,900 $106,900 $90,000 Small Tools / Equipment Non-Capital $2,000 $500 $1,500 Total Small Tools/Equipment $2,000 $500 $1,500 Total Landscape & Lighting Budget $3,052,478 $1,419,835 $1,632,643 District Administration Public Works Administration $67,236 $67,236 Citywide Administration 138,905 82,178 56,727 Total District Administration $206,141 $149,414 $56,727 Total Landscape & Lighting Expenditures $3,258,619 $1,569,249 $1,689,370 Less CSA 152 Revenue $100,000 100,000 Less General Fund Contribution $2,199,722 $510,352 $1,689,370 Balance to Levy $958,897 Total EBU 26,937 Levy Per EBU $35.60 220 2016/2017 LLD 89-1 Page 12 of 18 The following information was obtained from the Riverside County Assessor's Secured Roll, Assessor's Parcel Maps, and the City’s Planning Department. The land use categories were developed to classify the different land use types in the City. Table 2 Land Use FY 2016/2017 Parcel Count County Acres Prior Year EBU Prior Year Levy FY 2016/2017 EBU (1) FY 2016/2017 Levy (2) Agricultural 20 391.80 98.31 $3,499.80 98.31 $3,499.80 Exempt 2,310 9,709.14 0 0 0.95 0.00 Golf Course 284 3,501.86 1,828.17 65,080.94 1,807.63 64,349.74 Hillside Conservation 12 319.03 31.9 1,135.62 31.90 1,135.62 Multi-Family Residential 34 92.81 635.5 22,623.80 635.50 22,623.80 Non-Residential 259 545.63 2,755.15 98,083.34 2,755.15 98,083.34 Rural/ Estate 51 106.18 86.04 3,062.58 86.04 3,062.58 Single Family Residential 19,911 2,429.82 19,911.00 708,831.60 19,911.00 708,831.60 Vacant/ Remote 13 144.48 119.2 4,243.30 119.20 4,243.30 Vacant Non-Residential 213 609.69 803.22 28,575.16 644.49 22,941.92 Vacant Residential 2,567 1,197.88 679.19 24,177.02 847.11 30,124.84 Total 25,674 19,048.32 26,947.67 $959,313.16 26,937.28 $958,896.54 (1) The EBU count in this column reflects the total EBU count for the district. Whereas, for budget purposes, the EBU count in the previous table reflects only those parcels that are assessable (not exempt). (2) The difference in the “Balance to Levy” figure in the previous table and the land use classification proposed levy in this table is due to the Riverside County even penny requirement for each charged parcel. Actuals will be based on the final County Secured Roll for Fiscal Year 2016/2017. Differences are generally due to changes in County Land Use Classifications or Assessor Parcel Number changes. 221 2016/2017 LLD 89-1 Page 13 of 14 APPENDIX A – DISTRICT ASSESSMENT DIAGRAM The Boundary Diagrams for the original districts have previously been submitted to the Clerk of the City in the format required under the 1972 Act and are made part of this Report by reference. The parcel identification, lines and dimensions of each parcel within the District are those lines and dimensions shown on the Assessor Maps of Riverside County for the year in which this Report was prepared and is incorporated by reference and made part of this Report. The attached Landscape Maintenance Map displays the landscape maintenance areas within the City. 222 CactusFlower Esplanade Monticello WildFlowerSunFlower JeffersonSquareLa QuintaPalmsRanchoOcotillo Quinterra SonrisaDesertFlower La QuintaHighlands AcaciaLa QuintaDel Oro Palm Royale C.C. Bella Vista StarlightDunes Desert Pride(Reunion) Marbella PointHappyEstates Del Rey Topaz Aliso Del Rey Aliso II Highland Palms Rancho La Quinta Miraflores Watercolors Desert Cove LakeLa Quinta HadleyVillas Hidden Canyon Laguna De La Paz Legacy Villas Rancho La Quinta Talante Renaissance Althea Parc La Quinta Desert ClubManor TR 1 MonteroEstates La QuintaGolf Estates La QuintaClub & Resort Lago La Quinta La QuintaC.C. Estates Villas ofLa Quinta Haciendas atLa Quinta TheSeasons Duna La Quinta La QuintaFairways Bajada PaintedCove The Citrus DesertClubTRUnit 5 Estancias Palmilla WatermarkVillas CitrusEl Dorado GoldReserve Mountain View C.C. La QuintaPolo Estates Diamante La Canterra PoloEstates La QuintaPolo Estates Codorniz The Hideaway Madison Club Rancho Santana Carmela Griffin Ranch PGA WestGreg Norman Monterra The Estates atLa Quinta PGA WestLegends The Villageat the Palms Capistrano PiazzaSerena Andalusia Trilogy Palizada Village atCoral Mtn. Stone CreekRanch Coral MtnEstates PGA West PaloVerdeSantaRosaTrails AltaVerde LionsGate Santerra The Quarry Puerta Azul PGA WestResidence Club Silver RockResort Tradition Malaga YMCA SeasonsDog Park ¬«2 ¬«6 ¬«5 ¬«8 ¬«10 ¬«4 ¬«11 ¬«7 ¬«1 ¬«3 ¬«9 CoveOasis La QuintaHigh School VistaDunes Fire Station #93 Fire Station #70 Fire Station #32 La QuintaEntrance Monument(Water Feature) La QuintaEntrance Monument(Water Feature) L a n d s c a p e M a i n t e n a n c e M a p FRED WARING DR JE F F E R S O N S T DU N E P A L M S R D WA S H I N G T O N S T WA S H I N G T O N S T 48TH AVENUE JE F F E R S O N S T 52ND AVENUE CALLETAMPICO MA D I S O N S T 54TH AVENUE MA D I S O N S T 58TH AVENUE Department of Public Works - Maintenance DivisionContact: James Lindsey, Maintenance ManagerEmail: jlindsey@la-quinta.orgDirect Tel. (760) 777-7052 Department of Public Works - Engineering DivisionGIS Contact: Daniel Valenzuela, Public Works InspectorEmail: dvalenzuela@la-quinta.orgDirect Tel. (760) 777-7096 AIRPORT BLVD. MILES AVENUE ·|}þ1 1 1 ·|}þ1 1 1 0 0.25 0.5 0.75 10.125 Miles AD A M S S T . FRED WARING DR MILES AVENUE 50TH AVENUE 52ND AVENUE 48TH AVENUE 50TH AVENUE CALLETAMPICO AV E N I D A B E R M U D A S EI S E N H O W E R D R A V E N I D A MONTEZ U M A 54TH AVENUE 58TH AVENUE 60TH AVENUE 62ND AVENUE MO N R O E S T MO N R O E S T Date: March 5, 2014GIS data received from Riverside County Jan. 2014. This map is for reference only. Legend Facilities Maintained by LLD Parkway Maintained by LLD Center Median Maintained by LLD Storm Retention Basin Maintained by LLD Parkways Maintained by HOA or Property Owners Center Median Maintained by HOA or Property Owners Parks Maintained by Community Services NAME ADAMS PARK (Does Not Include Ret. Basin) CIVIC CENTER CAMPUS DESERT PRIDE PARK EISENHOWER PARK FRED WOLFF NATURE PRESERVE FRITZ BURNS PARK LA QUINTA PARK LA QUINTA SPORTS COMPLEX MONTICELLO PARK SAGUARO PARK VELASCO PARK COLQCityLimits !(1 !(2 !(3 !(4 !(5 !(6 !(7 !(8 !(9 !(10 !(11 CA L L E R O N D O PA R K S T CALLE SINALOA DE S E R T CL U B D R SAGEBRUSH AVE CA L E O CALLE TECATE 53RD AVENUE EISENHOWER DR 47TH AVE SIMONDR SEELEYDR AUTOCTR DR WESTWARD HO DR BAY 223 224 2016/2017 LLD 89-1 Page 14 of 14 APPENDIX B – 2016/2017 COLLECTION ROLL Parcel identification, for each lot or parcel within the District, shall be the parcel as shown on the Riverside County Assessor Parcel Maps and/or the Riverside County Secured Tax Roll for the year in which this Report is prepared. Non-assessable lots or parcels may include government owned land, public utility owned property, land principally encumbered with public right-of-ways or easements and dedicated common areas. These parcels will not be assessed. A listing of parcels within the District, along with the proposed assessment amounts, has been submitted to the City Clerk and, by reference, is made part of this Report. Upon approval of the Report and confirmation of the assessments, the assessment information will be submitted to the County Auditor/Controller, and included on the property tax roll in Fiscal Year 2016/2017. If the parcels or APNs within the District and referenced in this Report, are re-numbered, re-apportioned or changed by the County Assessor’s Office after approval of the Report, the new parcel or APNs with the appropriate assessment amount will be submitted to the County Auditor/Controller. If the parcel change made by the County includes a parcel split, parcel merger or tax status change, the assessment amount submitted on the new parcels or APNs will be based on the method of apportionment and levy amount approved in this Report by the City Council. 225 226 City of La Quinta CITY COUNCIL MEETING DEPARTMENT REPORT TO: Madam Mayor and Members of the City Council FROM: William H. Ihrke, City Attorney DATE: June 7, 2016 SUBJECT: City Jurisdiction over Coachella Valley Water District’s Proposed Chromium-6 Treatment Facility Near PGA West Coachella Valley Water District (CVWD) plans to construct a Weak-base Anion Exchange (“WBA”) water treatment facility adjacent to the PGA West Greg Norman Golf Course on Airport Boulevard, between Madison Street and Monroe Street, to address new state mandates to reduce Chromium-6 in the water supply. The facility would be connected by pipes to several CVWD water wells in the vicinity of PGA West. Strong-base Anion water treatment facilities (“SBAs”) are proposed at five existing CVWD well locations in the City of La Quinta. Residents have voiced objections to CVWD’s proposed location for the WBA due to visual impacts. The height of WBA water treatment facilities is 28 feet. The height of SBAs is 17 feet. The City’s land use authority over the WBA and SBA facilities, however, is preempted by state law and thereby limited. 1. The City has no zoning jurisdiction over the project. Under state law, the City’s building ordinances do not apply to location/ construction of CVWD facilities for the production, treatment or transmission of water. Under state law, the City’s zoning ordinances do not apply to such projects. 2. CVWD can essentially ignore the City’s General Plan. Under state law, while CVWD’s capital projects are supposed to be consistent with the City’s General Plan, if the City makes a finding of inconsistency, CVWD has been given the right to “override” the finding. 3. CVWD can encroach on the City’s street right-of-way with water pipelines. DEPARTMENT REPORT ITEM NO. 227 Under state law, CVWD has a statutory right to use the City’s street for the pipes leading to and from the facility. 4. CVWD must still comply with CEQA. CVWD has prepared a single EIR for all of its Chromium-6 facilities. The comment period on that EIR closed May 31, 2016. City staff submitted comments to CVWD during the comment period, which included: o Aesthetic impacts would have significant environmental impacts and have not been properly analyzed; o Compatibility of WBA facilities with surrounding neighborhood has not been sufficiently analyzed; o Advocacy of less impactful alternative that would eliminate WBA treatment facility and 2 wells from La Quinta; and o Request that CVWD have meetings with residents in the area. Residents may object, but it may have little impact if objections were not raised during the comment period. CVWD plans to certify the EIR end of June, 2016. Judicial challenge must be filed 30 days after Notice of Determination (NOD) certifying EIR is posted, or 180 days if no NOD is posted. 228 INVESTMENT ADVISORY MINUTES 1 February 11, 2016 INVESTMENT ADVISORY BOARD MINUTES Wednesday, February 11, 2016 CALL TO ORDER A regular meeting of the La Quinta Investment Advisory Board was called to order at 4:00 p.m. by Chairman Mortenson. PRESENT: Board Members Park, Mortenson, Donais and Batavick ABSENT: None STAFF PRESENT: Finance Director Rita Conrad, and Management Assistant, Vianka Orrantia PUBLIC COMMENT - None CONFIRMATION OF AGENDA - Confirmed APPROVAL OF MINUTES Approval of the Minutes of December 9, 2015 Motion A motion was made by Board Members Batavick/Park to approve the Minutes of December 9, 2015 as submitted with a correction to the spelling of Board Member Motion passed unanimously. CONSENT CALENDAR ITEMS 1. Receive and File the Second Quarter Fiscal Year 2015-2016 Treasury and Pooled Money Reports for October and November 2015 Motion A motion was made by Board Members Park/Batavick to receive and File the Second Quarter Fiscal Year 2015-2016 Treasury and Pooled Money Reports for October and November 2015. 229 INVESTMENT ADVISORY MINUTES 2 February 11, 2016 BUSINESS SESSION 1. Consideration of Fiscal Year 2016-2017 Investment Policy and Work Plan Items Mrs. Conrad advised the Board of the Auditors recommended change Appendix A (Table) within the Investment Policy, with inconsistencies to the LAIF deposits, State Maximum Allocations vs City Maximum Allocations. Currently the State has no limit maximum; therefore the recommendation is to remove the 30% maximum allocation. Board Member Mortenson recommended the following changes/deletions as follows: PAGE 8: Column of Permissible Deposits and Investments PAGE 10: $1 per share PAGE 11: Delete Negotiable Certificates of Deposit definition PAGE 12: market funds maintaining a par value of $1 per share. Motion - It was moved by Board Members Batavick/Park to continue the review of the 2016/2017 Investment Policy and Work Plan Items. Motion carried unanimously CORRESPONDENCE AND WRITTEN MATERIAL - None BOARD MEMBER ITEMS- None S ITEMS 1. Discussion of the Next Scheduled Meeting Mrs. Conrad advised the Board that the next scheduled meeting is May 11, 2016. Mrs. Conrad suggested that if Board required an additional review of the Investment Policy and Work Plan a meeting should be scheduled either in March or April. The Board at this time was advised of the upcoming joint meeting with all Boards and Commissions and the City Council. 230 INVESTMENT ADVISORY MINUTES 3 February 11, 2016 ADJOURNMENT There being no further business, it was moved by Board Members Park/Donais to adjourn this meeting at 4:48 p.m. Motion passed unanimously. Respectfully submitted, Vianka Orrantia, Management Assistant City of La Quinta, California 231 232 etut )4. A/4 'eat" 4 4 athfrad May 27, 2016 Mr. Jim Barrett General Manager Coachella Valley Water District P.O. Box 1058 Coachella, CA 92236 SUBJECT: PROPOSAL FOR CVWD CHROMIUM 6 TREATMENT FACILITIES Dear Mr. Barrett, Thank you for the opportunity to comment on the proposed Chromium 6 facilities. We understand that the Coachella Valley Water District (CVWD) is proposing the construction of the facilities for compliance with the Chromium 6 regulations passed by the State of California. Our key concern is the significant aesthetic impact of the design and placement of these facilities throughout the City of La Quinta. La Quinta residents have attended City Council meetings regularly, expressing their concern about the Chromium 6 facilities and the lack of communication regarding the project plans. The residents of PGA West Residential Association, Monticello, Regency Estates, Rancho La Quinta, La Quinta Fairway and Trilogy residential communities are directly impacted by the facilities proposed as tall as 28 feet. The greatest impact will be experienced by residents at the Norman Course where the 28 foot facility height and massing of the proposed WBA treatment facilities is substantial. I respectfully request CVWD engage in a dialogue with the residents of the City of La Quinta and pursue alternatives that do not have an impact on the economy and the quality of life of our community. Thank you again for the opportunity to comment. Should you have questions, please contact Frank Spevacek, City Manager at 760-777-7030 or Tim Jonasson, Director of Design and Development at 760-777-7125. Sincerely, Linda Evans Mayor City of La Quinta cc: Frank Spevacek, City Manager Tim Jonasson, Design and Development Department 78-495 Calle Tampico I La Quinta ( California 92253 I 760.777.7000 I www.La-Quinta.org TO: -4/tti 4aibilai MEMORANDUM Madam Mayor and Members of the City Council FROM: Ted Shove, Business Analyst Gil Villalpando, Management Assistant DATE: June 7, 2016 SUBJECT: Proposed Tax Measure Information Attached for your reference is a "Frequently Asked Questions (FAQ)" summary and informational packet regarding the proposed sales tax measure. Both the FAQ and informational packet have been reviewed by the City Manager and can be used for informational purposes. City staff is not permitted to advocate for the measure or use City resources for the purposes of advocacy, but are permitted to provide unbiased information. Please let us know if additional information is required. C: Frank J. Spevacek, City Manager HAIND OUTS Frequently Asked Questions Q: What is the La Quinta tax measure on the 2016 General Election Ballot A: The La Quinta tax measure, if approved by a majority of the La Quinta voters, would increase the sales and use tax by 1%. Q: How is the current 8% sales and tax divided? A: The City currently receives 1% of the 8% sales and use tax. The other 7% goes to: the State (6.25%) and Riverside County/Riverside County Transportation Commission (0.75%). Q: What will the La Quinta tax measure fund? A: The sales tax would be a "general tax" used to fund City services, including: public safety; street and landscape repairs and maintenance; flood mitigation projects; public facilities maintenance and investment; youth and senior services; parks and recreation programs; business attraction; and job creation. Q: Will anyone track how the money is spent? A: An oversite committee of La Quinta residents will be established to monitor and report how funds are being spent. Q: Can the State take these funds to balance their budget? A: No, a City -based sales tax is protected under the State Constitution from reallocation by the State to back -fill funding for State agencies or programs. Q: What is the average sales and use tax for counties and cities in California? A: The Legislative Analyst's Office states the average rate is 8.5% in California. Source: www.lao.ca.gov/reports/2015/finance/sales-tax/understanding-sales-tax Q: What is taxable under the sales and use tax? A: Retail sales of tangible personal property in California are generally subject to sales tax, such as furniture, giftware, toys, antiques, clothing, prepared food, liquor, automobiles, etc. In addition, sales tax rates are based upon point of delivery. Police Costs: Q: How much are Police costs expected to increase each year? A: Police costs are expected to increase 6.9% annually for at least the next 4-5 years (See page 9). Q: How much of the operations budget is Police and Fire? A: Police and Fire are 56% of the operating budget (see page 10). Q: How are Police costs compared to other cities in the Coachella Valley? A: Comparing other Coachella Valley City's police costs, La Quinta has a similar level of service to Palm Desert, but approximately 70% of the cost. In comparison Cathedral City, La Quinta has managed to maintain 1.49 sworn officers per thousand residents at a similar cost (-'$14M/yr) to Cathedral City's police services, who maintain 0.89 sworn officers per thousand (see page 11). Employee Reductions: Q: Did the City reduce its staffing costs? A: Yes, reductions were approved by Council in 2011/ 2012 Fiscal Year (see page 13). Q: What about reducing City staffs retirement? A: All employees now pay their contribution allowed by law for their retirement programs. New employees to the City are automatically placed on a more cost effective retirement plan (see page 13). Q: Why not change all employees to the new retirement plan? A: 41% of the staff is on the new retirement plan. The existing staff is `grandfathered' in to the previous plan (see page 13). Sales Tax: Q: How is the current 8% sales and tax divided? A: The City currently receives 1% sales and use tax of the 8%, with the remaining going to the State (6.25%) and Riverside County/Riverside County Transportation Commission (0.75%) (see page 21). Q: How much will the sales tax measure cost me each year? A: A household of $60,000 will increase approximately $58 per year/ $4.80 a month. A household of $95,000 will increase approximately $91 per year/ $7.60 a month (see page 23). City of LaQuinta Proposed Tax Measure Information 1 Sales Tax Measure Quick Facts What has changed over the years? • Great Recession • Significant revenue reductions • Elimination of redevelopment agency • Increasing police, fire and utility costs Loss of Redevelopment Agency: • $63M annual loss to City • Lost capital to attract private investment • No capital improvement, affordable housing, and economic development funding Steps taken to reduce expenses: • Reduced patrol hours to offset 7% annual increases • 28% decrease to city workforce • Employees pay 8% retirement (max allowed by law) • Cut other operating costs by $700,000 • Decreased expenditures by $2.8 million • Restructured organization • Fee Study Key sources of income: • Property tax o La Quinta is a low property tax city - $0.07 per $1.00 paid • Sales tax • Transient Occupancy Tax (TOT or Hotel Tax) • Fees & Charges 2 Table of Contents La Quinta 4 Sacred to Us 4 Vision 4 Cultural and Wellness 4 Loss of RDA 5 Our Financial Hurdles 6 Loss of Redevelopment Agency: 6 RDA Funded Improvements 7 Police Costs 8 Police Costs• 9 Police as a component of La Quinta's Operating Budget (Historical) 10 Employee Reductions 11 Reduction of workforce, employee pension 12 Reserves and Revenues 14 General Fund Reserves 15 REVENUES 16 Sales Tax 20 How is sales tax distributed? 21 Property Tax 24 Where does your Property Tax go? 24 EXPENDITURES 26 No Tax Plan 29 Facilities Division 30 Planning Division• 30 Community Resources Department: 30 Capital Improvement Projects: 31 3 La Quinta Home to the nationally acclaimed Arnold Palmer Classic Course at SilverRock Resort, La Quinta is a blend of beauty, charm, and opportunity. La Quinta's history is rich and its story a fascinating tale of success. Named by the Robb Report as the "Best Place to Live for Golf," La Quinta is home to over 20 exceptional golf courses, including the famous PGA West. The historic La Quinta Resort & Club is the largest resort in the Coachella Valley and is complemented by other recently -opened hospitality venues. The city embraces art and culture, offering the La Quinta Arts Festival and a variety of beautiful public art pieces. The bustling Highway 111 corridor and enchanting Old Town Village feature the best of shopping, dining, and personal services. La Quinta's growth over the last decade has been truly remarkable. Sacred to Us • Vibrant Community • Public safety • Beautiful City • Cultural Diversity • Health and Wellness • Transparency Vision • Public Safety - Superior safety and capacity to efficiently respond • Facilities & Landscape - Well maintained & managed public spaces • Human Resources - Employee growth & development at all levels • Community Services - Engage community in events & programs • Design & Development - High quality & streamlined development Cultural and Wellness • #1 arts festival in the nation since 2013 by Greg Lawler's Art Fair Sourcebook out of 4,500 major festivals. o La Quinta Arts Festival began in 1982 by the La Quinta Arts Foundation • Over 2,500 annual fitness center members • Hiking trails were ranked #5 of top 45 hiking locations in the West by Sunset Magazine. • Over 3,100 annual youth sports participants annually • 14 public parks; 3 dog parks; 6 public tennis courts; outdoor volleyball court; 2 skate parks; and public pool • Free open gym program for basketball and volleyball • Wellness Center averages 250 daily users 4 Loss of RDA Our Financial Hurdles Loss of Redevelopment Agency: In the City of La Quinta, many projects that contributed to its amazing quality of life were made possible by La Quinta's Redevelopment Agency (RDA). When La Quinta was a new City in the early 1980s, it was prone to severe and debilitating flooding in the Cove area. One of the first RDA projects undertaken by the City's leaders was to fix the flooding problem. It made La Quinta a safer place to live as well as a more attractive investment for developers. Along with alleviating blight, redevelopment has several other purposes such as providing affordable housing, creating jobs, and stimulating the local economy. Redevelopment has funded infrastructure improvements such as curbs, sidewalks, roads, landscaping, and much more. Major retailers, hotels, restaurants, and businesses have chosen to locate and invest in La Quinta. Below are key examples of the projects completed with the help of RDA funds and the City's economic development program: Public Safety: Flood control improvements in the Cove, Fire Station #93 Retail & Commercial Development: Eisenhower George and Julia Argyros Health Center, Hwy 111 Corridor, including: Walmart Super Center, Costco, Kohl's Lowe's, and Home Depot Tourism & Hospitality: Embassy Suites, Homewood Suites Parks, Trails & Bike Paths: Sports Complex, Civic Center Campus, Bear Creek Trail, La Quinta Park, and City bike trails Arts & Culture: La Quinta Public Library, La Quinta Museum, and Senior/Wellness Center The La Quinta RDA also provided 1,052 affordable housing units to nearly 2,600 residents. In addition, it involved purchasing blighted homes (in foreclosure); rehabilitation; and returning quality homes to the market (for rent and sale) for the workforce. This increased property values for the community. Over the past 20 years, the La Quinta RDA has collected $746 million in revenue. Over 50% was passed through to schools, the County, and other local agencies. Twenty percent of La Quinta's total was allocated for affordable housing and the balance funded infrastructure, parks, and economic development. Since 1986, the state received over $500 M in sales tax revenue as a result of La Quinta's economic development initiatives! 6 RDA Funded Improvements • Upper Cove storm water retention basins • Bear Creek Channel storm channel to Oleander reservoir • Cove Oasis park • Fred Wolfe and Bear Creek hiking trails • Curb, gutter, water and sewer improvements in the Cove and Village (in conjunction with assessment districts) • Eisenhower Drive median • Eisenhower Drive/La Quinta Evacuation Channel bridge • Avenue 52 realignment at Fritz Burns Park • Cove Fire Station on Avenue 52 (Station 32) • City public works yard • Village parking lot • La Quinta Museum • Library and library parking lot • Senior/Wellness Center and parking lot • Civic Center Campus Park • North La Quinta Park • North La Quinta Fire Station of Adams Street (Station 93) • White Water channel lining • Avenue 48 - Adams Street to Jefferson • Highway 111 widening, medians and traffic signals • Washington Street widening at Miles Avenue • Jefferson Street Parkway landscaping - Vista Grande to Westward Ho Drive • Pioneer Dog Park of Seeley Drive • SilverRock Golf course and associated property ■ 1,310 affordable housing units housing 3,200 residents o 667 units or 51% affordable to very low income senior and family households Police Costs Police Costs: Police costs are increasing by 6.9 percent in total compared to the 2015/16 Adopted Budget. This is primarily due to a 5.5 percent increase in labor costs for the Riverside County Sheriffs. As an example: the 2016/17 police rate schedule shows a sheriff's patrol deputy's hourly rate will rise from $149.09 to $160.22, a 7% increase. $11,522,687 FY 08/09 La Quinta Police Expenditures 2008-2017 $12,151,744 $12,030,307 $12,071 512 3 FY 09/10 FY 10/11 FY 11/12 FY 12/13 9 $14,080,981 $13,939,600 $13,639,205 FY 13/14 FY 14/15 $14,856,300 FY 15/16* FY 16/17x* Police as a component of LaQuinta's Operating Budget (Historical) Actual Total Operations without transfers Police/Fire Authorize Police/Fire % Police/Fire Total Operations Non Police/Fire d Full - Operations Increase/Decrease <less> Police/Fire Increase/Decrease Time Positions 2011/12 $ 33,403,317 5 32,045,043 $ 16,607,319 52% $ 15,437,724 89 2012/13 $ 32,819,687 5 32,118,803 $ 16,904,858 53% 1.8% $ 15,213,945 -1.5% 88 2013/14 $ 33,359,266 S 32,286,553 $ 18,336,938 57% 7.8% $ 13,949,616 -9.1% 70 2014/15 6 37,722,142 S 34,333,327 $ 19,184,878 56% 4.4% $ 15,148,449 7.9% 72 Revised Budget 2015/16 $ 44,088,190 $ 36,242,200 $ 20,159,000 56% 4.8% $ 16,083,200 5.8% 78 Proposed Budget 2016/17 $ 40,735,600 $ 37,811,300 $ 21,426,700 57% 5.9% $ 16,384,600 1.8% 24.7% 5.0% 78 Comparing other Coachella Valley City's police costs, La Quinta has managed to maintain 1.49 sworn officers per thousand residents at a similar cost to Cathedral City's police services, who maintain 0.89 sworn officers per thousand. Palm Desert's police costs are substantially more with fewer sworn officers per thousand. $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 5 - Comparable La Quinta Police Expenditure Trends 1 Rancho Mirage Cathedral City La Quinta Palm Desert Palm Springs Indio Population: 17,218 Population: 52,903 Population: 39,694 Population: 48,445 Population: 44,552 Population: 84,201 1.74 0.87 1.49 1 47 1.99 0 91 10 • FY 13/14 ✓ FY 14/15 FY 15/16 Employee Reductions Reduction of workforce, employee pension The City staffing levels peeked at 105 employees in 2008/09 fiscal Year. In 2011/12 major changes began with the loss of RDA, including: • City Manager's pay went from $504,794 to $218,929 including benefits; • 28% decrease in staffing levels; • Employees pay their full 8% portion of retirement allowed by law; • Pay for performance was established and step increases based on performance; • Eliminated cost of living pay increases (2013) • Implemented,Job Classification study results 90 80 70 60 50 40 30 20 10 0 Authorized Full -Time Positions ti°NNti°y�\y� ti°y3\�� ti°y�\y� �\�(0\N. � \ 12 Li Authorized Full -Time Positions As of 2015/16 the City has: • 78 full-time employees • All new hires (41%) are on a new retirement plan. • New hires begin below job rate Fiscal Year Authorized Full -Time Positions Increase/ (Decrease) City of La Quinta Population # of Residents per Employee Cost per Resident 2011/12 89 (10.00) 37,836 425 $ 281.16 2012/13 88 (1.00) 38,075 433 $ 258.03 2013/14 70 (18.00) 38,401 549 $ 204.56 2014/15 72 2.00 39,032 542 $ 208.16 2015/16 74 2.00 39,694 536 $ 220.66 2016/17 78 4.00 39,977 513 $ 233.49 13 Reserves and Revenues General Fund Reserves Assuming that $750,000 of the $1.8 million loan repayment is used to fund North La Quinta Parkway Improvements, General Fund reserves at June 30, 2017 are estimated at (below): 2% 3% Estimated General Fund Balance (6/30/2016) oil Non -Spendable ® Emergency Reserves Carryovers u Designated for Specific Use Available - Undesignated Cash Flow Reserve GENERAL FUND RESERVE CATEGORIES NON -SPENDABLE $46,742,600 DESIGNATED FOR SPECIFIC USE (OPEB) $1,523,400 EMERGENCY RESERVES 40% $15,673,400 CASH FLOW CONTINGENCY 10% $3,918,400 AVAILABLE FOR APPROPRIATION $13,537,000 TOTAL ESTIMATED RESERVES $81,394,800 Key Terms Explained Non -Spendable: Funds that are not liquid or are legally required to be maintained intact (i.e. real property) Designated for Specific Use: Funds required for retiree/retirement obligations Emergency Reserves: Policy to maintain 40% of operating reserves Available for Appropriation: Cash in liquid form that made be spent without restrictions. 15 11. REVENUES Although 2016/17 revenues are projected to be approximately 1.2% higher ($484,100) than 2015/16 mid -year estimates, when the Fire Service Tax is factored out (tied to corresponding expenditure increases), revenue growth is flat at 0.4%. 45000000 40000000 35000000 30000000 25000000 20000000 15000000 10000000 5000000 0 Revenue Comparison by Year $40,408,600 $39,892,249 $39,734,100 $36,794,412 $38,611,700 $33,511,431 Actual Actual Actual Actual Original Revised Proposed Revenue Revenue Revenue Revenue Budget Budget Budget FY 11/12 FY 12/13 FV 13/14 FY 14/15 FY 15/16 FY 15/16 FY 16/17 3 Revenues RPTTF Pass Thru (One-time) What is RPTTF? Funds that formerly would have been distributed to the RDA as tax increment are deposited into a redevelopment trust fund, known as the (RPTTF). 16 Charges for Services 3.14% License & Permits 3.15% 2016/17 Projected Revenue by Category Use of Money & Property 1.28% Fines & Assessments 0.53% Transfers In 0.47% Miscellaneous Revenue 0.33% Intergovernmenta I Revenue 26.16% ■ Taxes 1 License & Permits 1 Use of Money & Property • Transfers In Taxes 64.94% r Intergovernmental Revenue Charges for Services Fines & Assessments II Miscellaneous Revenue Taxes $26,241,600 Intergovernmental Revenue $10,572,200 License & Permits . $1,272,400 Charges for Services $1,270,400 Use of Money & Property $516,600 Fines & Assessments $212,400 Transfers I n $190,400 Miscellaneous Revenue $132,600 $40,408,600 17 Revenue FY 15/16 Other Revenue 2% Fines & Assessments t% Charges for Services 3% Licenses & Permits 3% 9000000 -''" 8000000 7000000 6000000 5000000 4000000 3000000 2000000 1000000 Tax Revenue Comparison 0 - - Actual Actual Actual Actual Original Revised Proposed Revenue Revenue Revenue Revenue Budget Budget Budget FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY15/16 FY15/16 FY 16/17 Property Tax Transient Occupancy Tax Sales Tax 18 Tax Revenue -at -a -glance Franchise Fees 6% Transient Occupancy Tax 27% Doc Transfer Tax \ 2% 19 Sade 20 SALES TAX Sales Tax - compared to the 2015/16 mid -year estimate, sales tax revenue is projected to decrease by 1.2 percent ($104,000). In May, after the mid -year report was completed, the City's sales tax consultant revised 2015/16 sales tax estimate downward by $178,000; comparatively the revised estimate for 2016/17 sales tax growth is flat. The driving force for the reduction in 2015/16 sales tax estimate is the wind down of "Triple Flip." The "Triple Flip," refers to actions the State took in 2013/14 to balance its budget. At that time, the State issued bonds to balance its budget and used 0.25% of the 1% sales tax cities received to secure the bonds. The State backfilled this 0.25% to cities with property tax from the Education Revenue Augmentation Fund (ERAF). The State has since retired the bonds and Triple Flip is winding down, but resulted in a one time "true -up" from the State in 2015/16. How is sales tax distributed? RC Measure A 0.5% Local-CTF 0.25% State-LRF2011 1.06% State-LHSSP 0.50/0 Legend State-LPSF 0.5% State - General Fund I r,( S()t. t.'(I HI icl bunt State Local Revenue Fund Health/Social Services State - Local Revenue Fund 2011 Local - County Transportation Fund f ,City_FtlM Riverside County - Measure A 21 Where Does Sales Tax Come From in La Quinta? Prepared Foods/Over-the- Counter Drugs 4% Building Materials Autos/Transportation 9% Who spends money in La Quinta? 64% of sales tax revenue comes from non-residents. Full-time La Quinta residents spend 36%. 22 La Quinta Sales Tax Revenue Full-time Resident/ Non-resident Sales Tax Comparison? 1 Non-resident 64% Source: ESRI Business Analyst, City Budget The table below shows the cost of increase from an increase in sales tax based on the statistical analysis. The analysis assumes 24% of a household's annual income is expended on housing expenses, and 40% of a household's annual income (after housing expenses) is spent on taxable transactions that would occur in the City. Disposable income is the amount of money that households have available for spending and/or saving after income taxes have been deducted. Annual Sales Tax Paid Based Upon Household Income Sales Tax Factors 1% 2% Household Income Current Sales Tax Rate Potential Sales Tax Rate 60,000 $ 95,000 $ 140,000 $ 200.000 $ Changes in Sales Tax 8% 9% Paid Annually 58 $ 115 $ 91 $ 182 $ 134 $ 269 $ 192 $ 384 $ 58 $ 91 $ 134 $ 192 $ Changes in Sales Tax Paid Monthly 4.80 7.60 11.20 16.00 23 Property Tax - property tax (both regular and the "no/low" allocation) is estimated to increase by 2 percent ($124,000) to $6.5 million. Variances continue in Redevelopment Property Tax Trust Fund (RPTTF) residual distributions, thus accurate projections are not reliable. City staff has met with the County Auditor/Controller's Office, and based on information culled from that meeting; the RPTTF distribution for 2016/17 is projected to be $709,000 higher than 2015/16 estimates. Major factors influencing this distribution are the City's annual Recognized Obligation Payment Schedule (ROPS) and the County's ROPS. Once the County and City both have completed last and final ROPS, estimating this distribution will become more consistent. As more information becomes available staff will update the City Manager and Council. Where does your Property Tax go? 1' 'Id iS 011-..3-.70 .1 C)11 . -444171. L 11180916 'I 12 Property Tax District % of General Levy Other t50% CV Rec and Park 2.00% CVWD 7.00% La Quinta 7.00% Library _ 2.50% Fire 6.00% County General Levy 24.00% College/ School Districts 50.00% Total 100% Typical ANNUAL property tax income • $200,000 home value - $175.00 • $500,000 home value - $438.00 • $1,000,000 home value - $875.00 24 Transient Occupancy Tax (TOT) - hotel TOT revenue, at $5.3 million, is projected to be flat compared to 2015/16 estimates. Staff continues to communicate with local hotel operators to develop projections. One possible factor, the U.S./Canadian exchange rate may have had a cooling effect on tourism. Short term vacation rental TOT, however, is projected to increase by $126,900 (10 percent) to $1.4 million as compliance efforts grow. Fire Tax Credit - revenue budgeted in Fire Tax Fund (property tax assessment) is estimated to be 5.2% higher ($322,600) than current year estimates. However, this increase equally corresponds to an increase in Fire and Emergency Operations expenditures; therefore, no net gain/loss to the General Fund is estimated. Charges for Services, and Licenses & Permits - combined these categories are expected to increase by 13% ($284,700) due to SilverRock development ramping up (there are also corresponding expenditure increases). Otherwise, this category remains flat from 2015/16 estimates. This type of revenue is heavily based upon development projects. Wellness Center - compared to 2015/16 mid -year estimates, Wellness Center revenues (memberships and facility rentals) have increased by 15 percent ($15,000). Other Revenues - in 2015/16 the city received a one-time insurance reimbursement (related to flood damage) of $525,000 and a one-time TOT mitigation payment of $335,000 that will not occur in 2016/17 or beyond. 25 EXPENDITURES 2016/17 Proposed Expense by Category Internal Service Charges 4.58% Maintenance & Operations 5.62% Transfers Out 7.18% Salaries & Benefits 19.91% Utilities 1.02% Capital Expenses 0.27% 1 Contract Services Transfers Out Internal Service Charges 26 Contract Services 61.40% -I Salaries & Benefits Maintenance & Operations ■ Utilities 2016/17 Proposed Contract Services Summary a Police a Engineering Services A City Attorney • Code Compliance • City Manager • Finance • Public Buildings a Planning • Human Resources a The Hub a Fire Parks Maintenance • Building • Public Works Development Services Less than 1% ■ Marketing & Community Relations ■ Design & Development Admin • City Clerk ■ Wellness Center Operations a Community Resources Admin Contract Expenditures Police $14,856,300 59.39% Fire $6,340,900 25.35% Engineering Services $766,700 3.07% Parks Maintenance $441A00 1.76% City Attorney $416,000 1.66% Building $391,000 1.56% Code Compliance $290,000 1.16% Public Works Development Services $255,000 1.02% City Manager $227,500 0.91 % Marketing & Community Relations $212,500 0.85% Finance $127,700 0.51% Design & Development Admin $113,200 0.45% Public Buildings $108,600 0.43% City Clerk $105,100 0.42% Planning $90,000 0.36% Wellness Center Operations $87,300 0.35% Human Resources $76,000 0.30% Community Resources Admin $60,000 0.24% The Hub $48,200 0.19% $25,013,400 27 Previous funds _paid to outside organizations Organization/ Expense General Fund Amount Boys and Girls Club $60,000 Community Grants $60,000 Arts Foundation $103,100 CV Rescue Mission $50,000 Chamber of Commerce $127,500 Temp Agency $10,000 Promotional $12,000 Rent expense CMP $9,800 Marketing $395,000 Total $827,400 $44,000,000 $42,000,000 $40,000,000 $38,000,000 $36,000,000 $34,000,000 © Estimated Revenue • Estimated Expense FY15/16 Expense does Revenue and Expense Summary Actual FY 14/15 Original FY Revised FY 15/16 15/16 Proposed FY 16/17 $38,892,249 $38,611,700 $39,734,100 $40,408,600 $37,722,142 $38,431,500 $44,088,190 $40,735,600 not include additional CIP projects from General Fund 28 No Tax Plan Steps to take if Tax Measure does not pass Facilities Division: • Renegotiate Janitorial contract (reduction of service). • Hire 4 in-house parks maintenance staff for landscaping due to prevailing wage requirements, a potential cost savings regardless of tax measure. • Review building expenses and deploy a lower cost approach to maintenance. • Return maintenance of school sports fields to school district. Youth sports teams would rent space from school district, anticipated increased cost to sports programming. Planning Division: • The new housing market in the Coachella Valley (data) is vulnerable to spikes in development costs. A full cost recovery fee structure may impact existing home builders in the City and discourage new home construction . The addition of new housing has an impact on the creation of new businesses, especially retail. • Existing commercial centers may continue to defer facade updates due to increases in required Permitting if City elects full cost recovery. This may affect business retention and attraction. • New construction in the La Quinta Village would remain stagnant due to increased permitting costs. • Small business development will struggle with a fee increase for sign permits. • Residents and community organizations who typically propose special events in the City subject to a temporary use permit may find increased fees cost prohibitive. These events attract visitors to the City, encourage community engagement, and increases business activity. Community Resources Department: • Return to reactive code enforcement • Reduce police patrol services • Eliminate School Resource Officers • Eliminate participation in regional police task force 30 • Reduce/eliminate employee training & development • Reduce marketing and tourism investment • Reduce/eliminate agreements with contract partners (I.e. Chamber of Commerce) • Reduce/eliminate community grants • Increase rates to full cost recovery at Wellness Center • Reduce programming at Wellness Center Capital Improvement Projects: • Deferred road maintenance past useful life will increase pavement repair costs from $1 to $4 per square foot after 3 years 31