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1998 12 01 CCpi v S y OF TNt City Council Agenda CITY COUNCIL CHAMBER 78-495 Calle Tampico La Quinta, California 92253 Regular Meeting December 1. 1998 - 2:00 P.M. CALL TO ORDER a. Pledge of Allegiance b. Roll Call Beginning Res. No. 98-138 Ord. No.328 This is the time set aside for public comment on any matter not scheduled for public hearing. Please complete a "request to speak" form and limit your comments to three minutes. Please watch the timing device on the podium. NOTE: TIME PERMITTING, THE CITY COUNCIL MAY CONDUCT CLOSED SESSION DISCUSSIONS DURING THE DINNER RECESS. ADDITIONALLY, PERSONS IDENTIFIED AS NEGOTIATING PARTIES WHERE THE CITY IS CONSIDERING ACQUISITION OF THEIR PROPERTY ARE NOT INVITED INTO THE CLOSED SESSION MEETING. CONFERENCE WITH CITY'S REAL PROPERTY NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING THE POTENTIAL TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF REAL PROPERTY LOCATED AT THE SOUTHEAST CORNER OF HIGHWAY 111 AND ADAMS STREET. PROPERTY OWNER/NEGOTIATOR: CHRIS CLARKE. 2. CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a) REGARDING EXISTING LITIGATION: A. HANOVER, CASE NO. 085167 B. WESTERN EMPIRE, CASE NO. 30278 PUBLIC COMMENT - 3:00 pm This is the time set aside for public comment on any matter not scheduled for public hearing. Please complete a "request to speak" form and limit your comments to three minutes. Please watch the timing device on the podium. CONFIRMATION OF AGENDA APPROVAL OF MINUTES a. Approval of Minutes of November 17, 1998 ANNOUNCEMENTS PRESENTATIONS WRITTEN CORRESPONDENCE LETTER FROM COACHELLA VALLEY ECONOMIC PARTNERSHIP REGARDING MEMBERSHIP. Page -2- CONSENT CALENDAR Note: Consent Calendar Items are considered to be routine in nature and will be approved by one motion. APPROVAL OF DEMAND REGISTER DATED DECEMBER 1, 1998. 2. APPROVAL OF AN IMPROVEMENT AGREEMENT REGARDING PHASING OF CERTAIN IMPROVEMENTS ASSOCIATED WITH SDP 97-608, KSL LAND CORPORATION. 3. ADOPTION OF RESOLUTION ACCEPTING DONATIONS BY CALIFORNIA ASSOCIATION OF HEALTH FACILITIES RIVERSIDE/SAN BERNARDINO CHAPTER OF $250 AND NINETEEN HARDCOVER BOOKS VALUED AT $75 TO THE SENIOR CENTER'S LIBRARY. 4. AUTHORIZATION OF DISTRIBUTION OF A REQUEST FOR PROPOSALS TO COMPLETE THE GENERAL PLAN UPDATE AND NEGOTIATION OF A CONTRACT FOR CITY COUNCIL APPROVAL. 5. ADOPTION OF RESOLUTION APPROVING AMENDMENT TO CONDITIONS OF APPROVAL FOR SPECIFIC PLAN 87-011 AMENDMENT #2, DELETING CONDITION #14. 6. ADOPTION OF RESOLUTION ENCOURAGING THE COOPERATION OF UNION PACIFIC RAILROAD IN ORDER TO PERMIT A DEMONSTRATION AMTRAK "TALGO" TRAIN TO VISIT THE COACHELLA VALLEY. BUSINESS SESSION CONSIDERATION OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 1998. A) MINUTE ORDER ACTION. 2. CONSIDERATION OF ADOPTION OF RESOLUTION APPROVING THE REVISED POLICY AND APPLICATION PROCESS FOR FORMATION OF LAND BASED FINANCING DISTRICTS. A) RESOLUTION ACTION. 3. CONSIDERATION OF FISCAL YEAR 1998-99 MARKETING PLAN. A) MINUTE ORDER ACTION. 4. CONSIDERATION OF CONTRACT FOR SERVICES WITH KINER/GOODSELL ADVERTISING FOR MARKETING SERVICES. A) MINUTE ORDER ACTION. 5. CONSIDERATION OF APPROPRIATION OF FUNDS FOR LIBRARY PURCHASES. A) MINUTE ORDER ACTION. Page -3- STUDY SESSION -None REPORTS AND INFORMATIONAL ITEMS A. CULTURAL ARTS COMMISSION MINUTES OF OCTOBER 8, 1998 B, CVAG COMMITTEE REPORTS C. CHAMBER OF COMMERCE WORKSHOP/INFORMATION EXCHANGE COMMITTEE (PERKINS) D. C. V. MOSQUITO AND VECTOR CONTROL DISTRICT (PERKINS) E. C. V. MOUNTAINS CONSERVANCY (SNIFF) F. C. V. REGIONAL AIRPORT AUTHORITY (HENDERSON) G. LEAGUE OF CALIFORNIA CITIES COMMITTEES H. PALM SPRINGS DESERT RESORTS CONVENTION & VISITORS BUREAU (HENDERSON) I. PALM SPRINGS DESERT RESORTS AIRLINE SERVICES COMMITTEE (HENDERSON) J. PALM SPRINGS REGIONAL AIRPORT COMMISSION K. RIVERSIDE COUNTY FREE LIBRARY ADVISORY COMMITTEE (HENDERSON) L. RIVERSIDE COUNTY LIBRARY ADVISORY BOARD M. SUNLINE TRANSIT AGENCY/SUNLINE SERVICES GROUP (PENA) DEPARTMENT REPORTS A. CITY MANAGER 1. RESPONSE TO PUBLIC COMMENT B. CITY ATTORNEY C. CITY CLERK 1. REPORT ON UP -COMING EVENTS D. BUILDING AND SAFETY DIRECTOR - NONE E. COMMUNITY DEVELOPMENT DIRECTOR - NONE F. COMMUNITY SERVICES DIRECTOR - NONE G. FINANCE DIRECTOR - NONE H. PUBLIC WORKS DIRECTOR - NONE I. POLICE CHIEF - NONE J. BATTALION CHIEF - NONE MAYOR AND COUNCIL MEMBERS' ITEMS DISCUSSION REGARDING INCREASE IN COMPENSATION FOR PLANNING COMMISSIONERS. (PERKINS) RECESS TO REDEVELOPMENT AGENCY MEETING RECESS UNTIL 7:00 P.M. Page -4- PUBLIC COMMENT This is the time set aside for public comment on any matter not scheduled for a public hearing. Please complete a "request to speak" form and limit your comments to three minutes. Please watch the timing device on the podium. PRESENTATIONS PRESENTATION OF ART WALL CERTIFICATES TO LA QUINTA MIDDLE SCHOOL STUDENTS. PUBLIC HEARINGS TENTATIVE TRACT 29004 TO RESUBDIVIDE 3.75 ACRES WITHIN TRACT 28149 INTO 11 SINGLE-FAMILY LOTS AND THREE COMMON LOTS, LOCATED AROUND THE EAST SIDE OF SOUTHERN HILLS AT OAKMONT, WITHIN PGA WEST. APPLICANT: KSL LAND CORP. A) RESOLUTION ACTION. 2. SPECIFIC PLAN 90-015, AMENDMENT #1 FOR SPECIFIC PLAN REVIEW AND AMENDMENT TO ADD 20 ACRES TO THE PROJECT SITE, REDUCE THE NUMBER OF DWELLING UNITS FROM 1,060 TO 365, REVISE THE LAYOUT AND CIRCULATION AND AMEND MISCELLANEOUS DEVELOPMENT STANDARDS ON THE NORTH SIDE OF AIRPORT BOULEVARD, BETWEEN MADISON STREET AND MONROE STREET. APPLICANT: KSL LAND CORP. A) RESOLUTION ACTION. 3. CONTINUED PUBLIC HEARING FOR THE CENTRE AT LA QUINTA DEVELOPMENT AGREEMENT AMENDMENT #1. A) RESOLUTION ACTION. ADJOURNMENT Page -5- a IMLIRIGIML8131 I,. LCI I, Saundra L. Juhola, City Clerk of the City of La Quinta, California, do hereby declare that the foregoing agenda for the City Council meeting of December 1, 1998 was posted on the outside entry to the Council Chamber, 78-495 Calle Tampico and on the bulletin board at the La Quinta Chamber of Commerce and at Albertson's, 78-630 Highway 111, on Wednesday, November 25, 1998. DATED: November 25, 19988 SAUNDRA L. JUH A, City Clerk City of La Quinta, California PUBLIC NOTICE 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 777-7025, 24-hours in advance of the meeting and accommodations will be made. a,a. t Page - 6 - Coachella Valley Economic Partnership WRITTEN CORRESPONDENCE ITEM: 73-710 Fred Waring Drive, Suite 205 • Palm Desert, CA 92260 • 760/340-1575 or 1-800-596-1007 • Fax 760/340-9212 November 13, 1998 Tom Genovese, City Manager City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 RE: COACHELLA VALLEY ECONOMIC PARTNERSHIP Dear Mr. Genovese: The purpose of this letter is to request consideration by the La Quinta City Council of an Executive Membership in the Coachella Valley Economic: Partnership. CVEP was formed in 1994 as an effort to leverage public and private funding for the purposes of regional economic development through core industry business recruitment, regional "Red Teams" and long-term project advocacy. As you and I have discussed previously, the success of CVEP is directly tied to the involvement of both private and public sector organizations both financially and with respect to specific recruitment activities. At this time, CVEP has identified core industries that are being targeted for lead generation. These include sporting equipment manufacturers (golf and tennis), medical supply manufacturing firms, and small "clean -industry" manufacturers where site location decisions are based more on quality of life then any other factor. In my discussions with members of the City Council, it appears that there interest warrants placing consideration of an Executive Membership ($5,000 annually) on their agenda for December 1, 1998. Please advise me as to your interest in accommodating this request. I can be contacted directly at (760) 340-1575. Sincerely, Michael J. Bracken Executive Director as � 0 007 � T oz 1��{tiIN W U S FC�M OF COUNCIL/RDA MEETING DATE: DECEMBER 1, 1998 ITEM TITLE: Demand Register Dated December 1, 1998 RECOMMENDATION: Approve Demand Register Dated December 1, 1998 BACKGROUND: Prepaid Warrants: AGENDA CATEGORY: BUSINESS SESSION CONSENT CALENDAR STUDY SESSION PUBLIC HEARING 35129 - 35133) 9,044.92 35134 - 35144) 64,911.92 35145 - 35147} 2,683.54 Wire Transfers) 21,701.13 PIR 2063 - 2133) 80,090.73 P/R Tax Transfers} 23,151.77 CITY DEMANDS $377,266.59 Payable Warrants: 35148 - 35247 } 217,066.14 RDA DEMANDS 41,383.56 $418,650.15 $418,650.15 FISCAL IMPLICATIONS: Demand of Cash -City $377,266.59 Vr o l tCAIUIL��_ Falconer, Finance Director ZZ CITY OF LA QUINTA BANK TRANSACTIONS 11/11/98 - 11/19/98 11/13/98 WIRE TRANSFER - DEFERRED COMP $5,050.16 11/13/98 WIRE TRANSFER - PERS $16,650.97 TOTAL WIRE TRANSFERS OUT $21,701.13 -�- ZLl z CITY OF LA QUINTA BANK ID: DEF PAGE 1 CHECK CHECK VENDOR PAYMENT NUMBER DATE NO. NAME AMOUNT ***NO CHECKS WERE USED FOR PRINT ALIGNMENT.*** 35148 11/19/98 &00691 ELWOOD CORNELL 45.00 35149 11/19/98 ARRO10 ARROW PRINTING COMPANY 1371.30 35150 11/19/98 ASC001 A & S COFFEE SERVICE 268.00 35151 ** AP CHECK RUN VOID ** 35152 11/19/98 BER150 BERRYMAN & HENIGAR INC 6902.00 35153 11/19/98 BIGO10 BIG A AUTO PARTS 172.07 35154 11/19/98 BLU011 BLUEPRINTER 12.67 35155 11/19/98 BNA050 BNA COMMUNICATIONS INC 1608.75 35156 11/19/98 CADO10 CADET UNIFORM SUPPLY 243.96_ 35157 11/19/98 CALO10 CAL WEST ENGINEERING 3678.00 35158 11/19/98 CAL031 CALIF PARKS & RECREATION 627.00 35159 11/19/98 CAL150 CA CODE ENFORCEMENT CORP 20.00 35160 11/19/98 CDW050 CDW GOVERNMENT INC 3739.60 35161 11/19/98 COA030 COACHELLA VALLEY INSURANC 2502.00 35162 11/19/98 COA080 COACHELLA VALLEY WATER 12183.01 35163 11/19/98 COM015 COMPUTER U LEARNING CENTR 360.00 35164 11/19/98 COM030 COMSERCO 7.11 35165 11/19/98 DEMO10 DEMO UNLIMITED INC 4650.00 35166 11/19/98 DES018 DESERT ELECTRIC SUPPLY 101.02 35167 11/19/98 DES040 DESERT JANITOR SERVICE 3878.00 35168 11/19/98 DES050 DESERT SANDS UNIFIED 12.00 35169 11/19/98 DES051 DESERT SANDS UNIFIED SCHL 285.00 35170 11/19/98 DES060 DESERT SUN PUBLISHING CO 3690.15 35171 11/19/98 DES061 DESERT SUN COMMUNITY 2660.67 35172 11/19/98 DES065 DESERT TEMPS INC 1213.60 35173 11/19/98 DIE020 DAGOBERTO HERNANDEZ 175.00 35174 11/19/98 DOU010 DOUBLE PRINTS 1 HR PHOTO 9.21 35175 11/19/98 DRU100 DRUMMOND AMERICAN CORP 536.67 35176 11/19/98 EAG100 EAGLE/BENEFICIAL NATL BNK 242.77 35177 11/19/98 FIS050 FISHER BUSINESS SYSTEMS 197.18 35178 11/19/98 GASO10 GASCARD INC 714.01 35179 11/19/98 GER050 GERALDINES COSTUMES 107.75 35180 11/19/98 GRA010 GRANITE CONSTRUCTION CO 53.17 35181 11/19/98 GTE010 GTE CALIFORNIA -362.30 35182 11/19/98 HEG050 JIM HEGGE 1316.00 35183 11/19/98 HOA010 HUGH HOARD INC 309.88 35184 11/19/98 HOL030 HOLMES & NARVER INC 34246.88 35185 11/19/98 HOM030 HOME DEPOT 125.01 35186 ** AP CHECK RUN VOID ** 35187 11/19/98 HON050 DAWN C HONEYWELL 17033.01 35188 11/19/98 H00050 FAYE HOOPER 125.00 35189 11/19/98 IDE050 IDEA ART 181.45 35190 11/19/98 IMPO10 IMPERIAL IRRIGATION DIST 9779.20 35191 11/19/98 IND030 INDIO SHOE STORE INC 143.31 35192 11/19/98 INF030 INFORMATION RESOURCES 125.00 35193 11/19/98 JOB020 JOBS AVAILABLE INC 331.20 35194 11/19/98 JUDO10 JUDICIAL DATA SYSTEMS COR 100.00 2 Z- 5 010 3 hl.l.-U U[41J Yhniml LL - ter Dui- -, I -.-.I •,----.----, CITY OF LA QUINTA BANK ID: DEF PAGE 2 CHECK CHECK VENDOR PAYMENT NUMBER DATE NO. NAME AMOUNT 35195 11/19/98 KELO10 KELLY TEMPORARY SERVICES 1671.69 35196 11/19/98 KUN100 MARNI KUNSMAN 71.04 35197 11/19/98 LAQ030 LA QUINTA CAR WASH 150.85 35198 11/19/98 LIN050 JAMES LINDSEY 126.08 35199 11/19/98 LOCO10 LOCK SHOP INC 44.36 35200 11/19/98 LOS050 LOS ANGELES TIMES 33.12 35201 11/19/98 LUB050 LUBE SHOP 25.77 35202 11/19/98 LUC060 LUCENT TECHNOLOGIES 241.51 35203 11/19/98 MAZ050 MAZDA SUPERSTORE 93.02 35204 11/19/98 MCC050 MC CAIN TRAFFIC SUPPLY 6083.57 35205 11/19/98 MCDO10 MC DOWELL AWARDS 54.41 35206 11/19/98 MCKO10 McKESSON WATER PRODUCTS 99.93 35207 11/19/98 MIRO10 MIRASOFT INC 543.75 35208 11/19/98 MUNO10 MUNI FINANCIAL SERV INC -430.00 35209 11/19/98 NAWO10 RON NAWROCKI 750.00 35210 11/19/98 NEG050 DEBBIE NEGRINELLI 6.46 35211 11/19/98 NEPO10 NEPTUNE ELECTRIC 1770.00 35212 11/19/98 NEXO10 NEXTEL COMMUNICATIONS 533.90 35213 11/19/98 NIC100 NICKERSON, DIERCKS & ASSC 4044.00 35214 11/19/98 NPG100 NPG CORPORATION 3256.00 35215 11/19/98 PAR030 PARKHOUSE TIRE INC 448.45 35216 11/19/98 POS030 POSTAL CONNECTION OF 52.04 35217 11/19/98 POW100 POWERS AWARDS 86.20 35218 11/19/98 RAS020 RASA - ERIC NELSON 5565.00 35219 11/19/98 RIV101 RIV COUNTY SHERIFF/INDIO 1152.90 35220 11/19/98 SAF100 SAFETY DATA SERVICES INC 230.55 35221 11/19/98 SCE100 SCESA 50.00- 35222 11/19/98 SED100 SEDWAY GROUP 18676.27 35223 11/19/98 SIM030 JOE SIMONDS 392.00 35224 11/19/98 SMA010 SMART & FINAL 106.86 35225 11/19/98 SMI010 MARILYN SMITH 24.03 35226 11/19/98 SOCO10 THE SOCO GROUP INC 168.88 35227 11/19/98 SOU007 SOUTHWEST NETWORKS, INC 4147.32 35228 11/19/98 SPI010 CRISTAL SPIDELL 82.56 35229 11/19/98 SPRO10 SPRINT 867.64 35230 11/19/98 STA045 STAN'S AUTO TECH 1471-.99 35231 ** AP CHECK RUN VOID ** 35232 11/19/98 STA050 STAPLES 1244.07 35233 ** AP CHECK RUN VOID ** 35234 11/19/98 STE020 STEVE'S OFFICE SUPPLY 1138.64 35235 11/19/98 SUN050 SUN BADGE CO 142.28 35236 11/19/98 TER100 TERRA NOVA PLANNING & 1582.89 35237 11/19/98 TKDO10 T.K.D. ASSOCIATES INC 9133.24 35238 11/19/98 TOPO10 TOPS'N BARRICADES INC 108.78 35239 11/19/98 TRI010 TRI LAKE CONSULTANTS INC 29347.50 35240 11/19/98 TRU010 TRULY NOLEN INC 70.00 35241 11/19/98 USI100 USI INC 1054.48 35242 11/19/98 VIKO10 VIKING OFFICE PRODUCTS 273.56 35243 11/19/98 VONO10 VON'S C/O SAFEWAY INC 13.87 2. Z (o Olt jq AC(-,01N`1'J eAlAnLL - A-t .DuvD CITY OF LA QUINTA BANK ID: DEF PAGE 3 CHECK CHECK VENDOR PAYMENT NUMBER DATE NO. NAME AMOUNT 35244 11/19/98 WAL010 WAL MART STORES INC 14.05 35245 11/19/98 WAL050 WALL STREET JOURNAL 188.56 35246 11/19/98 WES020 WEST GROUP 124.45 35247 11/19/98 XER010 XEROX CORPORATION 2632.71 CHECK TOTAL 217,066.14 ZZ� 01" 2 rl N M M H H H H H M H H N N m P P M .a v9 w S m ^1 to '1 to H m rl m ry m rl m M m M m rl m M m M m 'i m 'I m '1 m '1 m rl m M m M m rl m '1 m rl m rl m e4 m rl m M z c P E F E E F F H H N F F F F F N F F F E E F F E E F H [r F o O m r m N b N o O O O O O o O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O IO Ol S � tL � d Yf N r 1p t'1 .y 1D N n V) P M m N r m d P N Y1 N N 1p r U1 m N P M m m N Y1 P m N d N d N d Y1 m O ❑ d O yga M O N (/1 a ypi 4i 4 yq� � u � MN R, a ^ IpY� phi F1 Li O M m U W VPl IND 0> 4N0 M Vi l�l > H o � H K ry ry N F O w m d w e .1. 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E .. E. .. .� H .+ H ., F a .. F W .. E m .. H .. H m p m .. E. m .. E H I u+ Q Q N m rn a �c in n m in o �o m v+ Q ,n. •• N r r N n ma d m d N rl N H NN a 4 Z N .. fwV� F O Z M .1 pH rz W u m N m a a zz a wu zz O a w g a s u z m� a .u. g a N w E w U w S w c'o a w zz M 0 M W Q n N O .. O N N N m W b m m ilf Q m N d 10 rt �Ll d m 1 r-i i4 a � w w w a p� o W F a O O 0 O O 0 O O O O O O O O N O N O Q O d O 0 N O 0 d O O 0 N O N O j. a N o ti 0 N 0 N 0 rl 0 '1 0 rl 0 rl 0 �'1 0 11 0 O 0 t'1 0 r1 0 o vi m H � a a m F a s s u H a U m rah u O Z 0 H Op Z 0 F Z 0 F Z 0 E O Z 0 E m 0 F O Z 0 H � pIq 7 N U N ra/J O\ F m H U pO V QO O 8 p U 8 pO U a N a z > f0! z > vp > 3 3 W E- w R X WW X &&W 7i WW i5 W2W ii W2W iS WRW X Z O o F 4 u > 0 O pc >> 0 O Y 0 0 O z 0 O 0 .� 0 1f1 O r0.j 0 N O m 0 0 0 aW 0 N 0 0 0 0 as 0 0 0 Waµ7 0 0 0 papl7 0 H 0 Wa 0 0 a WaW 19 2� Z CITY OF LA QUINTA BANK ID: DEF CHECK CHECK VENDOR NUMBER DATE NO. NAME ***NO CHECKS WERE USED FOR PRINT ALIGNMENT.*** 35145 11/17/98 PAL003 PALM DESERT CHAMBER OF 35146 11/17/98 TRA002 TRADEWINDS BODY & PAINT 35147 11/17/98 TRA030 TRANSAMERICA INSURANCE CHECK TOTAL PAGE 1 PAYMENT AMOUNT 315.00 2315.66 52.88 2,683.54 027 26 ZLl `Z 5.1 W O a w 1 21 O 0 t!.L.UU U1�iJ Yt11t1bLL - Ptr JvvJ .. i:u .... i�..:_.. �.... CITY OF LA QUINTA BANK ID: DEF CHECK CHECK VENDOR NUMBER DATE NO. NAME ***NO CHECKS WERE USED FOR PRINT ALIGNMENT.*** 35134 11/13/98 ALL020 ALL AMERICAN SOAP BOX 35135 11/13/98 AME200 AMERIPRIDE UNIFORM SVCS 35136 11/13/98 ARC050 ARCHAEOLOGICAL ADVISORY 35137 11/13/98 CAL020 CAL DEPT OF CONSERVATION 35138 11/13/98 CAL031 CALIF PARKS & RECREATION 35139 11/13/98 CAL040 CALIFORNIA VISION SERVICE 35140 11/13/98 CAN050 CANADA LIFE ASSURANCE CO 35141 11/13/98 EMP040 EMPLOYMENT DEVELOPMENT 35142 11/13/98 PRI050 PRINCIPAL MUTUAL 35143 11/13/98 TRA030 TRANSAMERICA INSURANCE 35144 11/13/98 WEL025 WELLS FARGO BANKCARD CHECK TOTAL PAGE 1 PAYMENT AMOUNT 1600.00 134.06 9500.00 4888.15 55.00 1134.00 511.13 1533.00 44361.01 516.93 678.64 64,911.92 ralmr2w .-I N n d 'I N t0 N O m Yl ID r m n m OI u a a a a a a s a a a a a s a a .+ w sFI� .a pap.. paI pNp�I WNpI pNp�� WNW pN� WNW WaW yay ya ysy WapI pap,I E 4 RI F E F F E F F F E E F F F F F a a N n F F O O T O O d N O O d n d O d Ill Ill n '1 n N d � Yl Vl '1 N � N Ill O n Yl a d Io 'i $ m rn m e ti u' ti a n a ❑ 0 �+ a .ul a a m a w w a Z a z a m a a z z a z a m ° "a Z µ 8t W8 W 8 w w 8w 8 8 z 8 Z 8 s 8 x 8 c 8 IlFzrr z w> F Ea4 QEQ > Y> w m H O m G u S E m m m u > a 7 x 0 4 n a In I o to r n n m m o or 0r Ian m Z n n n O m m m O d N Z Z O d H X q Z w q w m w a I o Ix 0 d d e o o N O o 0 0 0 0 0 0 w 0 n n n o o r o 0 0 0 0 0 0 0 o Io Io to 0 o n o 0 0 0 0 0 0 0 n m 0 y l0 0 0 0 m d o v n n o n n n n [� ID ID 1p 1p 10 N d 10 N N Ill N N N to 0 0 a in vi O v� O O O in O O O O O O O N n N n 01 O O N O O N O O O Ve1 4 N '1 m e1 e1 �1 'I N r'1 eI '1 ed •'1 q o 0 0 0 d o 0 0 0 0 0 0 0 0 0 w oo m m m N O D ° •,. U w u E 2 � ac77 8 8 ra Cy 3 °° lq-I rai 5 a w a a a a R g �d p a s [m y p > 0 0 0 0 0 0 0 N O O O V1 N N n d d Ill I[1 1�1 N N O N N N pOGG O.� O..� IOI.C� .O� 0 yy pOpII O O IOa� IpO�7 C U K u u u u u W w a F 3 23 ��_ Zvi t� e �z m I G F a a N O V HH N a a z e 0 w H a a z v W w w D ❑ w � w w v H ❑ H � ❑ O w w w x a o w o og o 2 n 'y N � O U U q H O O V wO 4 i O 4 ipw-gl 2 w 4 7 r a a -C o h a Oo N E c V 4, I, 24 2HI ei �U1vT� eAllimiL - rir DuuJ III � . , •I-----`•• CITY OF LA QUINTA BANK ID: DEF PAGE 1 CHECK CHECK VENDOR PAYMENT NUMBER DATE NO. NAME AMOUNT ***NO CHECKS WERE USED FOR PRINT ALIGNMENT.*** 35129 11/10/98 CLE010 CLERK OF SUPERIOR COURT 150.00 35130 11/10/98 LAQ050 LA QUINTA CITY EMPLOYEES 330.00 35131 11/10/98 RIV040 RIV CNTY DISTRICT ATTORNY 361.50 35132 11/10/98 RIV070 RIVERSIDE COUNTY EMPLOYEE 8063.92 35133 11/10/98 UNI005 UNITED WAY OF THE DESERT 139.50 CHECK TOTAL 9,044.92 25 -2-H 9� rl N m V I[1 o Z m P 0 a a e O O O N O m F O O vi N n T�Zq• ((yy O N m N O � am 0 0 o ry o 0 o vi m �n N a w a a a a w a �gg c a N � N .. z Ti a w x o 0 0 0 0 w o 0 0 0 y N N N v N y O O O O 0 O O O O 0 U q o O o O o N W VI 2 W W U r.7 H O w tl Wo y a O C =N o [u� �y C O O ~ y uy� R qN W m(r g a It p 0 0 0 o u y m a > > E a c u a a a 'e.i= - nru� -,.- -..- _- __ • - ---- CITY OF LA QUINTA BANK ID: DEF PAGE 1 CHECK BK INVOICE VENDOR VENDOR NUMBER ID DATE AMT. PAID NUMBER NAME 34922 DEF 09/02/98 TOTAL VOIDED 3782.95 PER020 PERMA 3,782.95 INVOICE DESCRIPTION DE LA CRUZ V CITY OF LA QUIT 27 2S O CITY OF LA QUINTA BANK ID: DEF CHECK BK INVOICE VENDOR VENDOR INVOICE NUMBER ID DATE AMT. PAID NUMBER NAME DESCRIPTION 33909 DEF 07/23/98 49.04 AME200 AMERIPRIDE UNIFORM SVCS MATS 33909 DEF 07/09/98 35.98 AME200 AMERIPRIDE UNIFORM SVCS MATS 33909 DEF 07/09/98 49.04 AME200 AMERIPRIDE UNIFORM SVCS MATS TOTAL VOIDED 134.06 PAGE 1 m -?_ S 1 ' I* r, — lirouuz CITY OF LA QUINTA CHECK BK INVOICE NUMBER ID DATE 34892 DEF 10/26/98 TOTAL VOIDED BANK ID: DEF PAGE 1 VENDOR VENDOR INVOICE AMT. PAID NUMBER NAME DESCRIPTION 1600.00 GRE021 GREATER COACHELLA VALLEY COMMUNITY SVC GRANT 1,600.00 b36 29 �Slo AiP - AP6002 CITY OF LA QUINTA CHECK BK INVOICE NUMBER ID DATE 35143 DEF 11/13/98 TOTAL VOIDED BANK ID: DEF PAGE 1 VENDOR VENDOR INVOICE AMT. PAID NUMBER NAME DESCRIPTION 516.93 TRA030 TRANSAMERICA INSURANCE AD & D INS NOV 98 516.93 30 25� T,d4t 4 4Q" COUNCIL/RDA MEETING DATE: November 17, 1998 ITEM TITLE: Approval of an Improvement Agreement Regarding Phasing of Certain Improvements Associated with SDP 97-608, KSL Land Corporation AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: Z STUDY SESSION: PUBLIC HEARING: Approve an Improvement Agreement regarding phasing certain improvements associated with SDP 97-608, KSL Land Corporation. None. Site Development Permit (SDP) 97-608, originally approved by the Council at its September 16, 1997, meeting, required construction of an employee parking lot on 2.4 acres located approximately 220 feet south of Avenue 50 and 240 feet east of Eisenhower Drive. This parking facility was proposed by the applicant, KSL Desert Recreation Corporation (KSL), in response to the provisions of Specific Plan (SP) 121 E, Amendment #4, and the requirements specified in Environmental Assessment (EA) 97-343. Those provisions require a total of 272 parking spaces to accommodate the applicant's employees throughout the La Quinta Hotel and Resort complex. KSL originally proposed its central maintenance and employee parking facility within the same property, adjacent to Avenue 50. However, due to public criticism and concern over the impacts that site would generate on adjacent properties, the proposal was abandoned by KSL, and SDP 97-608 was proposed in lieu of the original proposal to allow KSL to proceed with other development applications while meeting the parking requirements of EA 97-343. KSL has advised city staff that it desires to find an alternative parking lot location that meets the requirement of EA 97-343 and convert the current location for a higher and better use in the future. Therefore, KSL desires to construct the current approved parking lot in phases so if in the event KSL is able to find an alternate site that is suitable for Council approval, the improvements at the current site can be disposed. A phased approach to the construction of the current parking lot allows KSL to keep F:TW DEPT\COUNCIL119981981201 a.wod its investment to a minimum at the current location while alternative locations are sought. KSL has designed a parking facility that when fully constructed will comply with the City's off-street parking ordinance. If the proposed Improvement Agreement is approved, the parking lot (with first phase improvements only) will provide all of the required parking to comply with EA 97-343 and to satisfy all of the CEQA requirements, but will not comply with the City's off-street parking ordinance until the second phase improvements are installed two years after approval of this agreement. Proposed and existing landscaping will adequately screen the parking lot from adjacent uses in both improvement phases. Staff has prepared an Improvement Agreement (Attachment 1) which outlines KSL's proposal. The agreement will secure the cost of the permanent improvements, and require installation within 2 years of Council's approval of the agreement. The applicant has executed the agreement and provided security for the cost of the permanent improvements meeting the requirements of the Municipal Code. The developer has executed the proposed Improvement Agreement and submitted security associated with the agreement meeting the requirements of the Municipal Code. City Council alternatives are: 1. Approve an Improvement Agreement regarding deferred improvements associated with SDP 97-608, KSL Land Corporation. 2. Deny approval of an Improvement Agreement regarding deferred improvements associated with SDP 97-608, KSL Land Corporation, and require construction of improvements meeting the requirements of the City's off-street parking ordinance in one phase. 3. Provide staff with alternative direction. Chris A V/ Public Works Director/City Engineer Attachment 1 : Improvement Agreement -ys�j CITY OF LA QUINTA IMPROVEMENT AGREEMENT THIS IMPROVEMENT AGREEMENT (the "Agreement") is made and entered into this day of November 3 , 19 gg_, by and between KSL Land Corporation, a Delaware Corporation, hereinafter referred to as "Developer," and the City of La Quinta, a municipal corporation of the State of California, hereinafter referred to as "City." RECITALS: A. Developer is the owner of the property subject to the provisions of Site Development Permit 97-608 ("SDP 97-6081, which is proposed for use as a parking lot facility, and which lies near the southeast comer of Eisenhower Drive and Avenue 50 in the City of La Quinta. B. SDP 97-608 obligates the Developer to install permanent improvements (the "Improvements") associated with the proposed parking lot facility within the Developer's property meeting the requirements of the City of La Quinta and to the satisfaction of the City Engineer. C. The Developer proposes to install the Improvements associated with the proposed parking lot facility in two phases. D. The Developer proposes that the first phase improvements be installed and beneficially used for a period not to exceed two (2) years following the approval of this Agreement. The Developer will install the second phase improvements as required by SDP 97-608 sometime before the two-year authorization expires. NOW, THEREFORE, it is agreed by and between the parties hereto as follows: 1. Improvement Plans. Developer shall furnish original improvement plans meeting the requirements of the City Engineer which show installation of the Improvements. 2. Improvements. Developer shall construct the Improvements required to be constructed or agreed to be constructed under this Agreement as listed in Exhibit "A", and shall bear the full cost thereof. The methods, standards, specifications, sequence, and scheduling of construction shall be as approved by the City Engineer. 3. Improvement Securitv. A. One class of security to be provided by Developer, hereinafter referred to as the "security," shall assure the faithful performance of this Agreement including construction of the Improvements and payment of plan check and permit fees. As part of the obligation secured by the security and in addition to the face amount thereof, the security shall include and assure the payment of costs and reasonable expenses and fees, including reasonable attorneys fees, incurred by City in successfully enforcing the obligations thereby secured. B. Improvement security shall conform with Section 66499 of the California Government Code and one or more of the following: 1) A cash deposit with City or a responsible escrow agent or trust company, at City's option. 2) Surety bonds, of the form specified in subsection 66499.2 of the California Government Code, issued by a surety or sureties listed in the U.S. Department of Treasury Circular 570 (latest version). 3) Certificates of deposit, in City's name, from one or more financial institutions subject to regulation by the state or federal government and having a financial quality rating of "A" or better and a commitment reliability rating of "R-2" or better on the Investment Data Exchange (of the Los Angeles County Treasurer's office). 4) Irrevocable letters of credit, issued by one or more financial institutions meeting the requirements of Paragraph (3), pledging that the funds necessary to carry out the completion of the Improvements are on deposit, guaranteed for payment, and constitute a trust fund which is not subject to levy or attachment by any creditor of the depositor until released by City. Letters of credit shall guarantee that all or any portion of the funds available pursuant to the letters of credit will be paid upon the written demand of City and that such written demand need not KSL Land Corporation - SDP 97-608 1 i n 4 tj present documentation of any type as a condition of payment, including proof of loss. The duration of any such letter of credit shall be for a period of not less than one year from the execution of the agreement with which it is provided and shall state, on its face, that the letter of credit will be automatically renewed until such time that City authorizes its expiration or until sixty (60) days after City receives notice from the financial institution of intent to allow expiration of the letter of credit. C. All securities shall be furnished in accordance with the provisions of Exhibit A. The amount of the performance security shall equal One Hundred Percent (100%) of the estimated cost of constructing the Improvements, including payment of plan check and permit fees, as estimated by the City Engineer or a duly authorized representative of the City Engineer. D. Security shall not expire, be reduced or become wholly or partially invalid for any reason, including non-payment of premiums, modifications of this Agreement and/or expiration of the time for performance stated in this Agreement, without express authorization from City unless the surety provides City with sixty (60) days written notice by registered or certified mail, return receipt requested. E. Security shall be released in the following manner: 1) Performance security shall be released upon the final completion and acceptance or approval, by the City Council of the Improvements subject to the provisions of paragraph B. 2) The City Engineer may authorize partial reduction of performance security as work progresses, upon application by Developer. However, no such reduction shall be for an amount less than Ten Percent (10%) of the total performance security provided for the faithful performance of the act or work. In no event shall security be reduced below that required to guarantee the completion of the act or work or obligation secured, plus Ten Percent (10%). The City Engineer shall not allow more than two partial reductions of security furnished for any improvement agreement. 4. A lernate Location. Developer has the right to obtain approval from the City Council for an alternate parking facility at a different location that satisfies and supplants the parking requirements for Specific Plan 121 E, Amendment #4. In the event the Developer secures alternate development rights, the Developer agrees to remove the first phase improvements to the satisfaction of the City Engineer, at which time this Agreement shall become null and void, and associated securities shall be returned to Developer. 5. Permits Required. Prior to commencing any phase of work, Developer shall obtain all permits required for that phase of work and pay all required fees. Work performed under a permit or permits shall comply with all provisions of the required permits. 6. Completion of Improvements. Developer shall cause construction of second phase improvements to begin prior to two (2) years and shall complete construction of second phase improvements no later than two (2) years after the approval of this Agreement, unless this provision is nullified as specified in Paragraph 4, hereinabove. Portions of the Improvements may be completed at a later date, as determined by the City Engineer or as set forth in Exhibit A. Failure by Developer to begin or complete construction of the Improvements within the specified time period shall constitute cause for City, in its sole discretion and when it deems necessary, to declare Developer in default of this Agreement, to revise improvement security requirements as necessary to ensure completion of the Improvements, and/or to require modifications in the standards or sequencing of the Improvements in response to changes in standards or conditions affecting or affected by the Improvements. Said failure shall not otherwise affect the validity of this Agreement or Developer's obligations hereunder. 7. Force Majeure. In the event that Developer is unable to perform within the time limits herein due to strikes, act of God, or other events beyond Developer's control, the time limits for obligations affected by such events will be extended by the period of such events. 8. Time Extension. Developer may make application in writing to the City Council for an extension of time for completion of the Improvements. The City Council, in its sole and absolute discretion, may approve or deny the request or conditionally approve the extension with additions or revisions to the terms and conditions of this Agreement. As a condition of the time extension, Developer shall furnish securities, similar in form and substance to those required in SECTION 3 hereinabove, to cover the period of extension. The value of the securities shall be suff ^ipnf KSL Land Corporation . SDP 97-608 / I - Page 2 of 4 `p ` & 4 i to ensure the performance of and payment for Improvements that remain incomplete at the time of the extension, and to provide warranty security on completed Improvements. 9. Final Acceptance of Improvements. At the completion of construction and prior to acceptance of the Improvements by City, Developer shall submit a request for final approval by City. The request shall be accompanied by any required certifications from Developer's engineers or surveyors, approval letters from other agencies having jurisdiction over and approval authority for improvements required by this Agreement or the Conditions of Approval, and any required construction quality documentation not previously submitted. Upon receipt of said request, the City Engineer or a duly -authorized representative will review the required documentation and will inspect the Improvements. If the Improvements are determined to be in accordance with applicable City standards and specifications, and as provided herein, obligations required by the Conditions of Approval and this Agreement have been satisfied, and Developer has provided revised plans as required in Paragraph 10, hereinafter, the City Engineer shall recommend acceptance of the Improvements by the City Council. 10. Revisions to Plans. When the Improvements have been inspected and approved by the City Engineer, Developer shall make any necessary revisions to the original plans held by City so the plans depict the actual Improvements constructed. When necessary revisions have been made, each separate sheet of the plans shall be dearly marked with the words "As -Built," "As -Constructed," or "Record Drawing," the marking shall be stamped by an engineer or surveyor, as appropriate for the improvements thereon, who is licensed to practice in California, and the plans shall be resubmitted to the City Engineer. 11. Release of Security. City shall retain and release securities in accordance with the provisions of Section 3 of this agreement. 12. City Right to Cure. If Developer fails to perform any obligation hereunder and such obligation has not been performed within sixty (60) days after written notice of default from City, then City may perform the obligation, and Developer shall pay the entire cost of such performance by City including costs of suit and reasonable attorneys fees incurred by City in enforcing such obligation. In cases of emergency or compelling public interest, as determined by the City Engineer, the requirement for written notice of default and/or the passage of sixty (60) days shall be deemed waived and all other provisions of this Article shall remain in effect. 13. Indemnification. Developer hereby binds itself, its officers, employees, agents, representatives, executors, administrators, guarantors, heirs, and assigns, and agrees to indemnify, defend and hold City and its officers, employees, agents, representatives, and assigns harmless from and against any losses, claims, demands, actions, or causes of action of any nature whatsoever, arising out of or in any way connected with Developers performance herein under, including costs of suit and reasonable attorneys' fees. 14. No Modification of Conditions. This Agreement shall in no respect act to modify or amend any provision of the Conditions of Approval. In the event that any requirement or condition of this Agreement is inconsistent with or fails to include one or more provisions of the Conditions of Approval, which document(s) is (are) incorporated herein by reference, the provisions in the Conditions of Approval shall remain in effect and shall control. 15. Severability. In the event that any provision or provisions of this Agreement are held unenforceable, all provisions not so held shall remain in full force and effect. 16, General Provisions A. All notices pursuant to this Agreement shall be in writing and shall be personally delivered or sent by registered or certified mail, return receipt requested, to the parties at their respective addresses indicated hereon. Notices personally delivered shall be effective upon delivery. Notices mailed as provided herein and sent postage prepaid shall be effective upon the date of delivery or refusal indicated on the return receipt. Either party may change its address for notices hereunder by notice to the other given in the manner provided in this subparagraph. B. The terms, conditions, covenants, and agreements set forth herein shall apply to and bind the heirs, executors, administrators, assigns, and successors of the parties hereto. C. Neither party to this Agreement relies upon. any warranty or representation not contained in this Agreement. KSL Land Corporation - SDP 97-608 Page 3 of 4 42 D. This Agreement shall be governed by and interpreted with respect to the laws of the State of California. E. In the event of any dispute between the parties with respect to this Agreement, the prevailing party shall be entitled to prompt payment of its reasonable attomeys' fees from the non -prevailing party. F. Any failure or delay by either parry in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any such rights or remedies provided for hereunder. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above. CITY: Thomas P. Genovese, City Manager ATTEST: City Clerk DEVELOPER By Tit By: Title: Reviewed and Approved; City Engineer Approved as to Form: City Attorney City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 (760) 777-7075 Date KSL Land Corporation 56-140 PGA Blvd. La Quinta, CA 92253 (760) 564-1088 // Date Date Date KSL Land Corporation - SDP 97-608 Page 4 of 4 Exhibit A SECURITY - SITE DEVELOPMENT PERMIT 97-608 As elements of the work are completed, Developer may request a maximum of two partial releases of performance security. Partial releases shall be for not less than ten percent (10%) of the total performance security for the tract and shall not reduce total performance security below the amount necessary to complete the second phase improvements plus ten percent (10%) of the original amount. Partial releases of performance security will be evaluated and may be granted, in whole or in part, by the City Engineer. Requests for partial releases, setting forth in detail the amount of work completed and the value thereof, shall be made in writing to the City Engineer. Improvement Description Performance Security First Phase (Interim) Improvements - Construction of initial lift of asphalt concrete, concrete curbs and gutters, concrete driveway approaches, concrete sidewalks, $0 concrete down drains and storm drain improvements, concrete cart paths, and traffic striping and signing to provide a total of 272 parking spaces. Second Phase (Ultimate) Improvements - Construction of final lift of asphalt concrete, concrete curbs, and permanent landscaping. $98.000 Totals: $98,000 2(ay 44 STATE OF CALIFORNIA ) 1 COUNTY OF I J F r`. l P� ss.) On before me,C� it / I ame, ale, e.g., -Jane oe,; Notary Public' personally appeared f� I Y Y y k 1 0- k � I �-r r ] personally known to me -- OR A. MC NALLY COMM.+i105.'16F6 '� � � Notary Publc — Cottati0 - RINE)2SiDE C4UMY My Comm. Et�ihs+ APR l i. HM ame s) of Signer(s) ❑ proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. .. � i i c OPTIONAL Though the data below are not required by law, the information may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER: ❑ Individual ❑ Corporate Officer: ❑ Partner(s): ❑ Limited ❑ General ❑ Attorney -in -Fact ❑ Trustee(s) ❑ Guardian/Conservator ❑ Other: SIGNER IS REPRESENTING Name of Person(s) or Entity(iesl DESCRIPTION OF ATTACHED DOCUMENT rt e or Type of Document Number of Pagis-- Date Ot UOCUMent SIGNERS (Other than named above) a1i Exhibit A SECURITY - SITE DEVELOPMENT PERMIT 97-608 As elements of the work are completed, Developer may request a maximum of two partial releases of performance security. Partial releases shall be for not less than ten percent (10%) of the total performance security for the tract and shall not reduce total performance security below the amount necessary to complete the Improvements plus ten percent (10%) of the original amount. Partial releases of performance security will be evaluated and may be granted, in whole or in part, by the City Engineer. Requests for partial releases, setting forth in detail the amount of work completed and the value thereof, shall be made in writing to the City Engineer. Improvement Description Performance Second Phase (Ultimate) Improvements $98,000 Totals: $98,000 3 w n T,itlt 4 4 " AGENDA CATEGORY: BUSINESS SESSION: COUNCIL/RDA MEETING DATE: December 1, 1998 CONSENT CALENDAR: ITEM TITLE: STUDY SESSION: Adoption of Resolution Accepting Donations by PUBLIC HEARING: California Association of Health Facilities Riverside/San Bernardino Chapter of $250 and nineteen (19) hardcover books anonymously donated to the Senior Center's library valued at $75 RECOMMENDATION: Adopt a Resolution accepting the donation of $250 and nineteen (19) hardcover books. FISCAL IMPLICATIONS: None BACKGROUND AND OVERVIEW: The La Quinta Senior Center, sponsored by Mul-Care Skilled Nursing Center in Indio was selected as a recipient of a $250 grant by the California Association of Health Facilities Riverside/San Bernardino Chapter (Attachment 1). The check was presented at the Annual Awards Dinner on November 3, 1998. The nineteen (19) hard cover books were donated anonymously to the Senior Center on November 5, 1998. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council are: 1. Adopt a Resolution accepting the donation of $250 and nineteen 0 9) hardcover books; 2. Do not adopt a Resolution accepting the donations. L I, (:k Dodie Horvitz, Services Director Attachment 1 - Copy of Check from California Association of Health Facilities Riverside/San Bernardino C:\MyData\CRISTAL\CC\CC.041.wpd Z VI 41 RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA ACCEPTING A GIFT WHEREAS, on November 3, 1998, the California Association of Health Facilities Riverside/San Bernardino Chapter generously donated to the La Quinta Senior Center a gift of funds and on November 5, 1998, nineteen (19) new hardcover books were anonymously donated to the La Quinta Senior Center's Library; and WHEREAS, the gifts were offered for donation to the City of La Quinta and were not given to or limited to the use of any particular employee or official; and WHEREAS, it is in the best interest of the City of La Quinta to accept the donations. NOW THEREFORE, the City Council of the City of La Quinta does hereby RESOLVE as follows: The City of La Quinta hereby accepts the donation of funds and books. PASSED, APPROVED, and ADOPTED this 1st day of December, 1998 by the following vote: AYES: NOES: ABSENT: ABSTAIN: JOHN J. PENA, Mayor City of La Quinta, California ATTEST: SAUNDRA L. JUHOLA, City Clerk City of La Quinta, California APPROVED AS TO FORM: DAWN C. HONEYWELL, City Attorney City of La Quinta, California C:\MyData\CRISTAL\CC\CC.041.wpd 2 (t, 6 4 ATTACHMENT 1 18-M/ 1220 CALIFORNIA ASSOC. OF HEALTH FACIL SAN BERNARDINO-RIVERSIDE CHAPTER 394 PAY TO ORDER OF E '^`�J�1�\��'A\(X l'P \��y' $ aso-Up uH Bank of America \ East Lome lxda &arch 1113 25710 Banco Road Lame U^rd�\a\CA (90B) 381.2494 MEMO yM� ,� DOLLARS ®� e.. TWO SIGNATURES REQUIRED 1: 12 200066 11:0 394111 1 1 13 2lo104 7 29115 4- buy' 4 4Q" AGENDA CATEGORY: BUSINESS SESSION: COUNCIL/RDA MEETING DATE: December 1, 1998 CONSENT CALENDAR: ITEM TITLE: STUDY SESSION: Authorize the distribution of a Request for Proposals (RFP) to fifteen firms to complete the General Plan PUBLIC HEARING: Update and negotiation of a contract for City Council approval with the selected firm RECOMMENDATIONS: Authorize the distribution of a Request for Proposals (Attachment 1) to complete the General Plan Update and negotiation of a contract for City Council approval with the selected firm. FISCAL IMPLICATIONS: There is $303,700 budgeted in the Community Development Department's Contract Services account for Fiscal Year 1998/99 of which $167,166 is available for this work. BACKGROUND AND OVERVIEW: Adopted in 1992, the City's General Plan is outdated as a result of the City's growth and expansion, changes in State law, and City Council goals. Some portions of the plan have been updated periodically, but no comprehensive update has been undertaken since 1992. The selected consultant will be required to pick up this project from the work of a previous consultant and complete the project by December, 1999. The firms selected to receive an RFP are in the City's Professional Registry and have experience in General Plan programs in California. It is anticipated that a contract will be brought to the City Council for review and approval on February 16, 1999, with work beginning the last week in February. FINDINGS AND ALTERNATIVES: Alternatives available to the City Council are: 1. Authorize the City Manager to distribute the Request for Proposals to complete the General Plan Update and to negotiate a contract for City Council approval with the selected firm. CCrpt.GPupdate12-1-98 177V 50 2. Reject the recommendation. Furnish staff with direction. CJrJey Hermammunity Development Director Attachments: Request for Proposals CCrpt.GPupdate12-1-98 2,11 51 ATTACHMENT #1 REQUEST FOR PROPOSALS TO UPDATE LA QUINTA'S GENERAL PLAN ISSUED BY: The City of La Quinta Community Development Department 78-495 Calle Tampico La Quinta, California 92253 760-777-7125 Iggp.00 I Z 7a- 52 TABLE OF CONTENTS I. Project Overview ................................. 3 II. Scope of Services Required .......................... 4 III. Meetings ....................................... 6 IV. Products ....................................... 6 V. Format ........................................ 7 VI. Role of The Consultant ........................... 7 VII. Available Budget/Contract ........................... 8 VIII. Evaluation of Proposals/Selection Process ................ 8 IX. Submittal Requirements For Proposals .................. 9 X. Contacts ...................................... 10 XI. List of available Planning Documents .................. 10 14gP.001 2 2i 3 53 PROJECT OVERVIEW The City of La Quinta is seeking planning and environmental consulting services to update and revise its General Plan and to update and prepare a Master Environmental Assessment, and Master Environmental Impact Report. Adopted in 1992, the City's General Plan is outdated as a result of the City's growth and expansion, changes in State law, and City Council direction. Some portions of the plan have been updated periodically since 1992, but no comprehensive update has been undertaken until now. The Zoning Code was recently updated based on current conditions and the General Plan. This General Plan update and revision must be comprehensive, consistent, and long- term. This update will contain all required elements plus a Historic and Archaeological Element. The City has a State certified Housing Element requiring no modifications. The update will be prepared in a manner consistent with California General Plan Law (Government Code Section 65300 et seq.), and the California Environmental Quality Act, CEQA (Public Resources Code 21000 et. seq.), and other applicable laws and regulations. The selected consultant will need to pick up this project from the work of a previous consultant. That consultant partially completed a draft Master Environmental Assessment (MEA). The MEA will provide a comprehensive inventory of existing conditions and available resources and constraints to development. This document is approximately 55% complete. Two joint City Council and Planning Commission General Plan Study Sessions, covering Goals & Objectives and Land Use Policies have been completed. Staff has sufficient direction from these sessions for the consultant to complete the required draft documents: General Plan, Master Environmental Assessment, and Master Environmental Impact Report for public hearings. The selected consultant/project team members will need to have knowledge and experience in growth oriented resort communities (La Quinta has an equal mix of full time and part time residents), environmental and design characteristics of desert communities, economic development, citizen participation, California General Planning Law and CEQA, as well as an excellent working relationship with clients. It is anticipated that the consultant will be the primary liaison with a City Project Management Team, initiate contacts with other affected agencies, and present materials to City staff, City Commissions, and City Council. iggp 001 3 2-1� Sa The City Project Management Team will consist of: Community Development Director Planning Manager Principal Planner (Project Director) Engineering Representative City Manager, Assistant City Manager & City Attorney (as needed basis) And other City personnel as needed The City of La Quinta, surrounded on the west and south by the rugged and dramatic slopes of the Santa Rosa Mountains, was incorporated in 1982 as a General Law City in Riverside County and is now a Charter City. With approximately 31 .2 square miles and a current population estimate of approximately 20, 450, the City has maintained a healthy annual growth rate over the last five years. It is anticipated that the City will continue to be a prime growth area in the desert, while preserving the natural open space of the Santa Rosa Mountains. The growing population of La Quinta and the surrounding Coachella Valley provides ample potential for commercial development. High quality residential and resort developments offering golf, tennis, and other amenities will continue to establish La Quinta as the "Gem of the Desert". II. SCOPE OF SERVICES REQUIRED The scope of the project will address the entire City and a wide range of issues; however, the planning area will include all lands within the existing Sphere of Influence and properties that may be annexed during the course of this project. In addition, the update shall include planning areas with the potential for annexation to the north and southeast areas outside of the City's Sphere of Influence. The purpose of this project is to update all existing elements of the General Plan (except Housing); to draft a new Historical and Archaeological Element and to prepare the environmental documentation necessary to process the General Plan Amendment. The City is anticipating the preparation of a Master Environmental Impact Report in order to streamline and limit the review of subsequent projects. All individual General Plan Elements should contain clearly defined goals and policies which provide a vision of what the City desires to be over the next 5-10 years. The City is particularly interested in developing a workable and meaningful update which will be an effective guide to the City's future. The City is not interested in generating a mere compliance document which will gather dust on a shelf. Consultants preparing proposals should not be constrained by the discussion in this Request for Proposals from suggesting different and innovative approaches to this project. The City desires to have a user friendly computerized data base and General Plan Land Use Map and other relevant maps. lgpp.00 1 4 Z -zl 5 5 5' The consultant will complete all the following work tasks by December 21, 1999: 1 2. 2. 3 0 5 0 7 lggp.001 Review the previously identified Issues, Opportunities and Constraints. Evaluate existing goals, policies, plans and programs to identify current deficiencies in the General Plan. Complete the data collection and analysis/update the Master Environmental Assessment. • Complete the data base documentation that will be drawn from in the preparation of the General Plan Update and the Master Environmental Assessment and Master Environmental Impact Report. Review and modify Goals and Objectives for each Element; deleting applicable goals and objectives. Prepare alternatives of a preliminary Land Use Plan and a preliminary Circulation Plan for staff review. Prepare the Draft General Plan in two work phases containing: Phase One Elements: Land Use Circulation Open Space Environmental Conservation Environmental Hazards Infrastructure and Public Services Phase Two Elements: Parks and Recreation Air Quality Historical and Archaeological Conduct one Joint City Council and Planning Commission Study Session to review all draft documents. Prepare Master Environmental Impact Report (PRC 21156 et. al.): Preparation and distribution of the Initial Study and Notice of Preparation per CEQA. Preparation of the Administrative Draft MEIR for staff review. Preparation of Response to Comments received on the Draft MEIR with revisions as necessary. Preparation and distribution of Final MEIR. 5 Zl � 5 6 Preparation of proposed CEQA findings. 8. Obtain Planning Commission and related Commission approvals (Cultural Commission and Historic Preservation Commission). 9. Obtain City Council approval and adoption. 10. Prepare a General Plan Summary The City anticipates final adoption of the General Plan Update within 10 months of written notice to proceed with the project. III. MEETINGS • Conduct project meetings with City Staff as needed • Present/attend one meeting with the Cultural Commission, Historic Preservation Commission • Conduct/attend one Joint Study Session for the review of the General Plan by the Planning Commission and City Council. • Conduct/attend up to six (6) Public Hearings for the approval of the General Plan by the Planning Commission (3), and City Council (3). IV. PRODUCTS • La Quinta General Plan (maps & text). • Master Environmental Assessment • Master Environmental Impact Report (maps & text). • General Plan Summary • 50 copies of the General Plan document and 50 copies of the MEA, and 25 copies of the MEIR upon final adoption. • 5 copies, one camera ready reproducible, and one digitally formatted copy of the General Plan Summary lggp.001 6 NOTE: All written material will be in WordPerfect 7.0 . Diskette copies of the final and approved General Plan and MEA and Master EIR are required. All maps will be in Auto Cad 13. All data, information, materials and work produced including final camera-ready text, maps and graphics will become the sole property of the City of La Quinta. V. FORMAT The format of the General Plan shall be done in such a manner as to easily incorporate updates and amendments unless the proposing consultant recommends otherwise and the City agrees, the format of the General Plan Update shall follow the current General Plan written and graphic format. The use of WordPerfect 7.0 currently is required so that future changes to the document can be completed in-house. VI. ROLE OF THE CONSULTANT The role of the consultant is expected to be an extension of City staff. The consultant is expected to keep an open dialogue with staff and to work closely with the City Project Management Team to ensure the updated General Plan reflects, to the greatest degree possible, the sentiment and opinion of the citizens of La Quinta. It is anticipated that, at a minimum, there will be one project meeting per month with the City Project Management Team to review progress and resolve problems. The consultant will be responsible for preparing the agenda and conducting these meetings. In addition, the consultant should be prepared to attend several meetings with the Planning staff at the La Quinta Community Development Department. The consultant will conduct the Study Session and Public Hearings with the Planning Commission and City Council The consultant will be responsible for the production of all graphics, hand outs, and other material necessary for successful Study Session and Public Hearings. As an extension of City staff, the consultant will be expected to function in the following roles: • Professional Planner • Consensus builder (mediator) • Organizer • Provider of technical information • Educator In order to establish and maintain project continuity throughout the duration of the project, the consultant will identify one individual (Project Manager) that the City can contact for all project related needs. The City will identify one individual (Project 1ggp.001 7 Director) that the consultant's Project Manager will contact for project related needs. This primary contact should not preclude other necessary City/consultant lines of communication. VII. AVAILABLE BUDGET/CONTRACT The City wishes to negotiate a fixed price contract with a not to exceed dollar total based on a clearly defined scope of work. This project will involve identifiable phases of work, and consultant proposals shall be prepared in phases documenting and itemizing all costs separately. It should be noted that the selected consultant will be required to carry both Workmen's Compensation and General Liability Insurance. Vill. EVALUATION OF PROPOSALS/SELECTION PROCESS A Consultant Selection Team will review the proposals and select three to five consultant team members for an interview with the City of La Quinta. Composition of the City interview team will be determined later. The interview team will make a recommendation to the City Council which will make the final decision on the selection of a consultant. The City intends to focus the interview on those project team members who will be working most closely with staff and who will be responsible for conducting/leading public meetings. The consultant team will be evaluated based on the following criteria; • Responsiveness to requirements of the project • Creativity and innovation • Project Management approach • Technical and methodological approach • Communication skills of project personnel • Qualifications The tentative selection schedule is as follows: Issue Request for Proposals December 2, 1998 Proposal Due Date December 23, 1998 Oral presentations/interviews Week of January 11th, 1999 Contract Negotiations January 18-22, 1999 Recommendation to City Council February 16, 1999 Start Project February 22,1999 14gp.001 8 ' ,I R 59 IX. SUBMITTAL REQUIREMENTS FOR PROPOSALS Submit five (5) copies of your proposal including proposed work schedule and hours. In a separate SEALED ENVELOPE submit one copy of your priced proposal. Send to: Fred Baker, AICP Principal Planner Community Development Department City of La Quinta 78-495 Calle Tampico La Quinta, California 92253 Written proposals are due by 5:00 PM on Friday, December 23, 1998. The minimum project proposal must include the following information: Lggp.001 • A detailed work program explaining your firms approach to accomplishing each facet of this project including a Scope of Work detailing the sequence and timing (project schedule) of the tasks to be performed and the anticipated products from each task. Identify all products to be prepared for presentation to the public. Identify all products to be prepared in each phase of the work program and attendant production costs. • An overall itemized project budget. Each phase of work should have an itemized budget including labor costs and expenses for each piece of work and each person working on this project in a spread sheet format. • A project team organization chart with identification of one Project Manager. • Resumes of each individual working on the project. • A schedule of your availability for staff and public meetings. • An enumeration of your requirements of City staff and resources. E (�0 pin X. CONTACTS All questions regarding this project should be directed to Fred Baker, Principal Planner, Community Development Department, City of La Quinta at 760-777-7125 . All questions must be submitted in writing by December 11, 1998. This will allow the City to provide a thoughtful response to all questions (if needed) benefitting all potential proposers on December 16,1998. XI. LIST OF AVAILABLE PLANNING DOCUMENTS: 1ggp.001 La Quinta General Plan 1992 Housing Element 1995 General Plan Master Environmental Assessment General Plan Environmental Impact Report Zoning and Subdivision Ordinance Zoning Map Village Zoning Ordinance and Village Design Guide Highway 111 Architectural & Landscape Design Guidelines 10 T4ht 4 4 Q" AGENDA CATEGORY: BUSINESS SESSION: COUNCIL/RDA MEETING DATE: December 1, 1998 CONSENT CALENDAR: ITEM TITLE: STUDY SESSION: Adoption of a Resolution approving amendment to Conditions of Approval for Specific Plan 87-011 PUBLIC HEARING: Amendment #2, deleting Condition #14 RECOMMENDATION: Adopt City Council Resolution deleting Condition #14 from Specific Plan 87-011, Amendment #2. FISCAL IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Pursuant to Settlement Agreement with Western Empire Industries, the attached Resolution amending Specific Plan 87-011 Amendment #2 is being transmitted to the City Council for adoption. A copy of the Settlement Agreement, when received from the City Attorney, will be distributed to Council. FINDINGS AND ALTERNATIVES: The alternatives to the City Council are: 1. Adopt City Council Resolution deleting Condition #14 from Specific Plan 87-011 Amendment #2, as drafted by the City Attorney. 2. Provide staff with direction. rry He an immu ity Development Director CCJH.010 62 RESOLUTION 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING AN AMENDMENT TO THE CONDITIONS OF APPROVAL FOR SPECIFIC PLAN 87-011, AMENDMENT #2, DELETING CONDITION #14 WHEREAS, the City Council has approved a Settlement Agreement in the action of Western Empire Industries vs. City of La Quinta, Riverside County Case No. INC R302768, which is conditioned upon the deletion of Condition #14 of Specific Plan 87-011, Amendment #2; and, WHEREAS, the City Council believes that entering into the Settlement Agreement is in the best interest of the City. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of La Quinta as follows: Condition #14 of Specific Plan 87-011, Amendment #2, which stated: "All billboards, and other advertising devices along Highway 111 shall be removed prior to issuance of first building permit for the project," is hereby deleted. PASSED, APPROVED, AND ADOPTED at a regular meeting of the La Quinta City Council, held on this 1st day of December, 1998, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: JOHN J PENA, Mayor City of La Quinta, California ATTEST: SAUNDRA L. JUHOLA, City Clerk City of La Quinta, California APPROVED AS TO FORM: z83 DAWN HONEYWELL, City Attorney City of La Quinta, California CAMy Documents\WPDOCS\resocc-sp87-01 Lwpd 63 COUNCIL/RDA MEETING DATE: December 1, 1998 ITEM TITLE: Adoption of a Resolution of the City Council of the City of La Quinta, California Encouraging the Cooperation of Union Pacific Railroad in Order to Permit a Demonstration Amtrak "Talgo" Train to Visit the Coachella Valley RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Adopt the Resolution of the City Council of the City of La Quinta, California encouraging the cooperation of Union Pacific Railroad in order to permit a demonstration Amtrak "Talgo" train to visit the Coachella Valley. FISCAL IMPLICATIONS: None. AMTRAK has a new type of passenger train called the "Talgo" train. AMTRAK is showcasing this new train across the country and is scheduled to bring it to the Riverside area in January 1999. As part of that visit, AMTRAK has offered to bring the Talgo train at no cost to the Coachella Valley for a demonstration. The Passenger Rail/Intercity Rail Sub -committee of the Coachella Valley Association of Governments (CVAG) recently considered the offer by AMTRAK to bring the Talgo train to the Coachella Valley and is recommending adoption of a resolution to encourage Union Pacific Railroad to allow this event to happen. Staff contacted Mr. Allyn Waggle, Associate Director, of CVAG for background information on this item. Mr. Waggle reported that the Talgo train uses a pendulum - type suspension system which is designed for a smoother and more level ride. According to Mr. Waggle, Union Pacific Railroad's cooperation is necessary in order to facilitate the Talgo train visit to the Coachella Valley. The purpose of the resolution is to request the assistance of Senators Feinstein and Boxer, and Congresswoman Bono in encouraging the cooperation of Union Pacific Railroad in order to permit a demonstration of the Talgo train in the Coachella Valley. At this 2 BH 64 writing, Mr. Waggle reported that specific details of the proposed visit are not fully formulated; however, it is anticipated that the Talgo train will stop at the Palm Springs and Indio stations and the demonstration may involve free rides. A copy of the sample resolution and suggested cover and sample letters are attached for the Council's use (Attachment No. 1). Council Member Perkins is a member of the Passenger Rail/Intercity RailroadSub- committee and may provide additional information concerning this proposal at the December Vt Council meeting as appropriate. [111011lonvT&M,U' 1 The Passenger Rail/Intercity Railroad Sub -committee of CVAG is requesting that member cities adopt a resolution encouraging the cooperation of Union Pacific Railroad in order to permit a demonstration of AMTRAK's Talgo train. There are three options available to the City Council as follows: Approve the resolution encouraging the cooperation of Union Pacific Railroad in order to permit a demonstration of the AMTRAK's Talgo train and direct the City Clerk to forward copies of the resolution and sample support letters to Senators Feinstein and Boxer, and Congresswoman Mary Bono; or, 2. Do not approve the resolution; or, 3. Provide alternative direction to staff. 4 d_4�_X� - Britt W. Wilson, Management Analyst City Manager's Office Attachment: 1. CVAG Correspondence (sample resolution and letters) CCSTFFTALGOTRAINRESO 12-01-98-wpd 2 RESOLUTION NO.98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA REQUESTING THE ASSISTANCE OF SENATOR DIANNE FEINSTEIN, SENATOR BARBARA BOXER AND CONGRESSWOMAN MARY BONO IN ENCOURAGING THE COOPERATION OF UNION PACIFIC RAILROAD IN ORDER TO PERMIT A DEMONSTRATION AMTRAK "TALGO" TRAIN TO VISIT THE COACHELLA VALLEY IN JANUARY 1999 WHEREAS, the Coachella Valley Association of Governments is comprised of ten member cities, the County of Riverside, and two sovereign Native American Tribes for the purpose of coordinating transportation activities in the Coachella Valley; and WHEREAS, one of the major transportation activities currently under review by the Coachella Valley Association of Governments is that of passenger rail service; and WHEREAS, Amtrak has advised of the availability of its "Talgo" train for a demonstration visit from Los Angeles to the Coachella Valley in January 1999; and WHEREAS, the cooperation of Union Pacific Railroad would be required in order for such a demonstration to occur. NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF LA QUINTA, a member of the Coachella Valley Association of Governments, requesting the assistance of Senator Dianne Feinstein, Senator Barbara Boxer and Congresswoman Mary Bono in encouraging the Union Pacific Railroad to cooperate and facilitate the Amtrak "Talgo" demonstration train to visit the Coachella Valley in January 1999. PASSED, APPROVED AND ADOPTED by the City Council of the City of La Quinta, California this 1 s` day of December 1998 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Resolution No. 98- Page 2 ATTEST: SAUNDRA L. JUHOLA, City Clerk City of La Quinta, California APPROVED AS TO FORM: DAWN C. HONEYWELL, City Attorney City of La Quinta, California C AMyOata\ WPOocs\RESOLUTIO NS\CVAGTALGOTRAI N 12-01-98.wpd JOHN J. PENA, Mayor City of La Quinta, California 67 =1 ATTACHMENT 1 RESOLUTION NO. OF THE CITY COUNCIL OF THE , CALIFORNIA, REQUESTING THE ASSISTANCE OF SENATOR DIANNE FEINSTEIN, SENATOR BARBARA BOXER AND CONGRESSWOMAN MARY BONO IN ENCOURAGING THE COOPERATION OF UNION PACIFIC RAILROAD IN ORDER TO PERMIT A DEMONSTRATION AMTRAK "TALGO" TRAIN TO VISIT THE COACHELLA VALLEY ON JANUARY 19, 1999. WHEREAS the Coachella Valley Association of Governments is comprised of ten member cities, the County of Riverside, and two sovereign Native American Tribes for the purpose of coordinating transportation activities in the Coachella Valley; and WHEREAS one of the major transportation activities currently under review by the Coachella Valley Association of Governments is that of passenger rail service; and WHEREAS Amtrak has advised of the availability of its "Talgo" train for a demonstration visit from Los Angeles to the Coachella Valley on January 19, 1999; and WHEREAS the cooperation of Union Pacific Railroad would be required in order for such a demonstration to occur. NOW THEREFORE BE IT RESOLVED by , a member of the Coachella Valley Association of Governments, requesting the assistance of Senator Dianne Feinstein, Senator Barbara Boxer and Congresswoman Mary Bono in encouraging the Union Pacific Railroad to cooperate and facilitate the Amtrak "Talgo" demonstration train to visit the Coachella Valley on January 19, 1999. ADOPTED this day of , 1998. AYES: NOES: ABSENT: ATTEST: By City Clerk REVIEWED & APPROVED AS TO FORM City Manager November 13, 1998 The Honorable Dianne Feinstein 331 Hart Building Washington, D.C. 20510 The Honorable Barbara Boxer 112 Hart Building Washington, D.C. 20510 The Honorable Mary Bono 324 Cannon House Washington, D.C. 20515 Dear Senators Feinstein and Boxer and Congresswoman Bono: We would appreciate your assistance in forwarding the attached draft letter to Mr. Mike Rock, the Union Pacific Legislative Advisor. With your assistance, this demonstration train can become a reality. Sincerely, ()6 November 13, 1998 Mr. Mike Rock Legislative Advisor Union Pacific Railroad 555 13th Street, N.W., Suite 450 West Washington, D.C. 20004 Dear Mr. Rock: Please be advised of my strong interest in encouraging Union Pacific to cooperate with the Coachella Valley Association of Governments in permitting Amtrak to provide a demonstration of the "Talgo" train on January 19, 1999. It's my understanding that this demonstration train would run from Los Angeles to the Coachella Valley. Passenger Rail Transportation, as I'm sure you know, is something I consider to be an important form of alternative transportation for the benefit of the citizens of the United States, and certainly for the residents of the State of California. Your encouragement to the appropriate individuals with Union Pacific Railroad would be very much appreciated. Sincerely, Congresswoman Mary Bono 70 emu!44Qulxfw AGENDA CATEGORY: BUSINESS SESSION: COUNCIL/RDA MEETING DATE: December 1, 1998 CONSENT CALENDAR: ITEM TITLE: STUDY SESSION: Consideration of the Comprehensive Annual PUBLIC HEARING: Financial Report for the year ended June 30, 1998 RECOMMENDATION: Receive and File FISCAL IMPLICATIONS: None BACKGROUND AND OVERVIEW: At the end of every fiscal year, the City prepares an audited financial report. This year the City prepared a Comprehensive Annual Financial Report for the year ended June 30, 1998. Mr. Ken Ali-Iman, CPA and Auditing Partner of Conrad and Associates, is prepared to make a brief presentation of the report's highlights and answer any questions. FINDINGS AND ALTERNATIVES: None /I 44�� in M. Falconer, Finance Director D-,� 1 71 CITY OF LA QUINTA La Quinta, California Comprehensive Annual Financial Report Year ended June 30, 1998 Prepared by FINANCE DEPARTMENT JOHN M.FALCONER Director of Finance (This page intentionally left blank) CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 1998 TABLE OF CONTENTS INTRODUCTORY SECTION: Letter of Transmittal List of Principal Officials Organizational Chart Certificate of Award for Outstanding Financial Reporting (CSMFO) Certificate of Achievement for Excellence in Financial Reporting (GFOA) FINANCIAL SECTION: Independent Auditors' Report General Purpose Financial Statements: Combined Balance Sheet - All Fund Types and Account Groups Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Governmental Fund Types Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types Combined Statement of Cash Flows - All Proprietary Fund Types Notes to the Financial Statements Supplemental Data: General Fund: Statement of Expenditures - Budget and Actual Special Revenue Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances 8 9 10 42 m EM 11 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 1998 TABLE OF CONTENTS, (CONTINUED) State Gas Tax Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Community Service Projects Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Federal Assistance Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual ISTEA Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Lighting and Landscape Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual State Law Enforcement Block Grant (SLEBG): Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Quimby Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Village Parking Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Page 51 52 53 54 55 57 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 1998 TABLE OF CONTENTS. (CONTINUED) South Coast Air Quality Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Local Law Enforcement Block Grant (LLEBG): Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Urban Forestry Grant Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Low/Moderate Income Housing Project Area No. 1 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Low/Moderate Income Housing Project Area No. 2 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Low/Moderate Bond - Project Area No. 1 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Low/Moderate Bond - Project Area No. 2 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Debt Service Funds: ® Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances 1 Page 58 W9 61 62 63 64 67 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 1998 TABLE OF CONTENTS. (CONTINUED) Page Financing Authority Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 68 Redevelopment Agency Project Area No. 1 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 69 Redevelopment Agency Project Area No. 2 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 70 Capital Projects Funds: Combining Balance Sheet 72 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 74 Infrastructure Fund: Statement of Revenues, Expenditures and Changes 76 Capital Improvement Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 77 Financing Authority Capital Projects Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 78 Redevelopment Agency Project Area No. 1 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 79 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 1998 TABLE OF CONTENTS. (CONTINUED) Page Redevelopment Agency Project Area No. 2 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 80 Agency Funds: Combining Balance Sheet - All Agency Funds 82 Combining Statement of Changes in Assets and Liabilities - All Agency Funds 84 General Fixed Assets Account Group: Comparative Schedule of General Fixed Assets - By Source 88 Schedule of General Fixed Assets - By Function and Activity 89 Schedule of Changes in General Fixed Assets - by Function and Activity 90 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 1998 TABLE OF CONTENTS, (CONTINUED) Table No. Page STATISTICAL SECTION: General Fund Expenditures by Function 1 92 General Fund Revenue by Source 2 93 Property Tax Levies and Collections 3 94 Schedule of Net Taxable Value 4 95 Property Tax Rates - Direct and Overlapping Governments 5 96 Special Assessment Billings and Collections 6 97 Schedule of Direct and Overlapping Bonded Debt 7 98 Computation of Legal Debt Margin 8 99 Revenue Bond Coverage 9 100 Demographic Statistics 10 101 Property Value, Construction Activity, and Bank Deposits 11 102 Principal Taxpayers 12 103 Major Employers 13 104 Schedule of Insurance in Force 14 105 Miscellaneous Statistical Data 15 106 (This page intentionally left blank) 1 (This page intentionally left blank) 78-495 CALLE TAMPICO — LA QUINTA, CALIFORNIA 92253 — (760) 777-7000 FAX (760) 777-7101 TOD (760) 777-1227 December 1, 1998 Honorable Mayor, City Council, and City Manager City of La Quinta La Quinta, California FY 1997-98 COMPREHENSIVE ANNUAL FINANCIAL REPORT LETTER OF TRANSMITTAL We are pleased to present the 1998 Comprehensive Annual Financial Report ( CAFR) of the City of La Quinta to the City Council and the City Manager. This report includes financial statements of the: • City of La Quinta; • La Quinta Redevelopment Agency; and, • La Quinta Financing Authority. Our independent auditors, Conrad & Associates have expressed their opinion as to the fairness of these financial statements. The completion of the independent audit is an important part of the total financial management program for the City of La Quinta. The information found in this report is provided by management to the Council and the public to assist those interested in understanding the fiscal condition of the City as of June 30, 1998. Responsibility for both the accuracy of the data, its completeness and its fairness of presentation, including all disclosures rests with the City. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds and account groups of the City of La Quinta. All disclosures necessary to enable this reader to gain an understanding of the government's financial activities have been included. Document Structure The CAFR is presented in three sections: Introductory; Financial; and, Statistical. MAILING ADDRESS - P.O. BOX 1504 - LA QUINTA, CALIFORNIA 92253 �0 Honorable Mayor, City Council, and City Manager The introductory section includes this transmittal letter, the City's organizational chart, and a list of principal officials. The financial section consists of the general purpose financial statements, including the audit opinion and footnotes, and the combining and individual fund and account group financial statements and schedules. The statistical section includes selected financial and demographic information, generally on a multi -year basis. The following governmental agencies that provide services to the citizens of the City of La Quinta have been excluded from this report because the City does not have financial accountability over these agencies: State of California and its departments, County of Riverside and its departments, Coachella Valley Association of Governments, Riverside County Transportation Commission, Riverside County Waste Management District, Desert Sands Unified School District, County Superintendent of Schools, Coachella Valley Unified School District, Desert Community College District, Mosquito Abatement District, and Coachella Valley Water District. The City of La Quinta is located 120 miles east of Los Angeles in the eastern portion of Riverside County known as the Coachella Valley. The City motto is "The Gem of the Desert". The City is governed by a five member City Council under the CouncitNanager form of government. The Mayor is directly elected by the citizens. The City was originally incorporated in 1982 as a general law City and it became a charter City in November 1996. Significant 10-year demographic data is as follows: • Population as of December 1997 was 20,444 an increase of 120% from 1987; • Retail Sales of $115 million a 344% increase from 1987; • Taxable Sales of $160 million a 275% increase from 1987; • Assessed Valuation over $2 billion a 210% increase from 1987; and, • Hotel Room sales over $28.8 million a 210% increase from 1987. The City area includes the beautiful La Quinta Hotel, world class golf resorts, numerous single family and multi- dwelling units and light commercial industries. The City has a beautiful 10,000 sq ft Senior Center for City residents. The Desert Sands Unified School District has recently opened the Adams Elementary School. The City has been experiencing rapid growth in population making it one of the fastest growing Cities in California. For the second quarter ending June 30, 1998, of all the cities in Riverside County, the City of La Quinta posted the highest single gain in sales tax revenue, with a 75% increase over the same quarter the previous year. With this growth comes a demand on local government to meet the needs of its citizens. The total number of full time authorized positions for 1997-98 is 70. In addition to the 20,444 permanent residents approximately 10,600 seasonal residents spend three to six months in the City. Honorable Mayor, City Council, and City Manager Services Provided by the City City services can be divided into those services provided directly by City staff and those services contracted out to other government agencies and organizations. Direct services provided by City staff in the following areas include: General Government - Legislative - City Manager - Economic Development Finance - Fiscal Services - Central Services Building and Safety_ - Administration - Code Compliance - Animal Control - Building - Emergency Services - Fire - Civic Center Building Public Works - Administration - Development/Traffic - Street & Landscape Maintenance - Capital Projects City Cierk - City Clerk Community Services - Administration - Recreation - Senior Center Community Development - Administration - Planning - South Coast Air Quality - Redevelopment Contracted services provided to the City and its citizens include police and fire protection through the County of Riverside, library services through the County of Riverside, visitor & tourist information through Palm Springs Desert Resorts Convention Visitors Bureau, economic development through the La Quinta Chamber of Commerce, water service through the Coachella Valley Water District, electricity service through the Imperial Irrigation District, refuse collection through Waste Management Company, public transit through Sunline Transit Agency, and cable service through Media One. iii Honorable Mayor, City Council,. and City Manager Significant Events and Accomplishments During 1997-98 the City experienced many significant events and accomplishments that may not be readily evident from a review of the financial statements. Some of the more important of these items are: Single family construction accounted for $76.6 million in building permits while commercial construction accounted for $14.8 million. A Home Depot hardware outlet was constructed, taking up almost 130,000 square feet of the retail center at the intersection of Highway I I I and Jefferson Street. An Eagle Hardware store was also constructed during 1997-98, adding 212,000 square feet of commercial space at the corner of Highway I I I and Simon Drive. A 4,700 square foot International House of Pancakes has been approved for the Home Depot retail center. The development of numerous residential communities has increased the assessed valuation in the City. As mentioned earlier, the City s assessed valuation has increased 210% from 1987 to over $2 billion, with an increase of $138 million during the latest year. La Quinta has housing that ranges from the affordable to luxury estates. The median home prices in La Quinta have been relatively stable and are significantly lower than other areas of the Coachella Valley mostly due to the reasonably priced land values. The U.S. Census has established the median home price at $117,400 which is lower than Riverside, San Diego, Los Angeles Counties and the State of California. There were 435 housing units built during 1997 which brings to 10,392 the number of total units within the City. The 10,392 units consist of 9,448 single family residences, 697 multi family residences, and 247 mobile homes. La Quinta is home to several of the world's highest rated golf courses. During FY 1997-98, major golf tournaments hosted in La Quinta included the prestigious Bob Hope Chrysler Classic, the Skins Game, and the Raymond Floyd hosted charity golf event. The nationally recognized La Quinta Arts Festival attracts many visitors from around the country each year to the City of La Quinta and the Coachella Valley. iv Honorable Mayor, City Council, and City Manager The La Quinta Hotel, the second largest destination resort in the Coachella Valley, recorded dramatic growth in hotel revenues during 1997. The City increased funding for the Palm Springs Desert Resort Convention Bureau for tourism promotion and provided funding for the Airline Services Council to bring a low cost carrier to the Coachella Valley. Capital Improvements The City completed over $7,500,000 in capital improvements during 1997-98. Among the completed projects were the Dune Palm White Water Channel Crossing, Avenue 48 Improvements, City -Wide Landscaping Improvements (including the Eisenhower median), and the PM10 Improvements behind City Hall. Design work was completed on projects under the five-year plan to retrofit various ADA ramps and sidewalk improvements. Design was also completed for the Washington Street and Miles Avenue Widening projects. A five-year Capital Improvement Program (CIP) was completed in-house. Next year, the City's five-year (CIP) will be increased by over $12 million, bringing the total 1998-99 fiscal year CIP budget to $17 million. This major investment of CIP funds will provide the City with the infrastructure needed to sustain the current and planned future growth anticipated in the City. ® Community Facilities The City completed the Fritz Burns and Adams Street Parks, Sports Complex Lighting, Traffic Improvements at various intersections, Bear Creek Channel Bike Path, Landscaping, and Highway I I I/Washington Street widening while maintaining 20 acres of medians, 15 acres of parks and 105 miles of streets. City Operations The following is a partial listing of the accomplishments made by City staff to the citizens of La Quinta for 1997- 98: Implementation of an Economic Development Strategy Plan; Received several grant awards for public safety, tire recycling and bicycle lanes. 1 Received awards in excellence for financial and budget reports; Started the General Plan Updates; Completed and adopted Prop 218 compliance analysis with the City Council; Completed first phase of scanning City maps. v Honorable Mayor, City Council, 1 and City Manager Future developments include, continued commercial development along the Highway 111 corridor, redevelopment financed property development on Avenue 48 and completion of residential projects in the northern part of the City. Financial Information 1 Management of the City of La Quinta is responsible for establishing and maintaining a framework of internal 1 controls designed to ensure that assets of the City are protected from loss, theft, or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The framework of internal controls is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. Single Audit - As a recipient of federal, state and county financial assistance, the City also is responsible for ensuring that an adequate framework of internal controls is in place to ensure compliance with applicable laws and regulations related to those programs. The framework of internal controls is subject to periodic evaluation :by management. As a part of the City's single audit, tests are made to determine the adequacy of the framework of internal controls, including that portion relating to Federal assistance programs, as well as to determine that the government has complied with applicable laws and regulations. The results of the government's single audit for the fiscal year ended June 30, 1998 provided no instances of material weaknesses in the framework of internal controls or significant violations of applicable laws and regulations. ' Accounting Controls - The City of La Quinta's accounting system is designed upon the following principles: In the public sector, a city government maintains a variety of "funds" that provide the basis for separately recording the financial data related to a specific activity. A fund is an accounting entity with a complete set of self -balancing accounting records. Each fund has been established because of some restriction on the use of the resources received by that fund. In the private sector, a corporation may have many subsidiaries which make up the parent corporation. Likewise in the public sector, all of the funds make up the complete financial resources of the City of La Quinta. This report includes the transactions of all entities over which the City Council of the City of La Quinta has authority (as defined by the Governmental Accounting Standards Board). The City s accounting system operates on a modified accrual basis of accounting for all governmental and agency type funds. Governmental funds include the General, Special Revenue, Debt Service, and Capital Projects Funds. Under the modified accrual basis of accounting, revenues are recorded when received in cash or accrued when they are both measurable and collectible within the accounting period or soon enough after the end of the period to pay liabilities of the period. Expenditures, other than interest or long term debt, are recorded when liabilities vi Honorable Mayor, City Council, and City Manager are incurred. The City maintains one Internal Service Fund and no Enterprise Funds. These types of funds use the accrual basis of accounting. Revenues are recorded when earned and expenses when incurred. In addition to maintaining funds to record accounting transactions, internal controls exist within the accounting system to ensure the safety of assets from misappropriation, unauthorized use or disposition, and to maintain the accuracy of financial record keeping. These internal controls must be established consistent with sound management practices based upon the cost/benefit of the controls imposed. The cost of a control should not be excessive to its derived benefit as viewed by City management. The internal controls in existence at the City of La Quinta are sufficient to ensure, in all material respects, both the safety of the City's assets and the accuracy of the financial record keeping system. Budsetary Contr The City Manager submits a preliminary budget to the City Council before each fiscal year. Public hearings are then held prior to July 1 to receive public comment. A budget is required to be adopted before the beginning of the fiscal year. Amendments to the budget or budget transfers between funds require Council approval. Budget transfers within funds require City Manager approval. The City also maintains an encumbrance system as one budget technique. All fiscal year end appropriations and encumbrances lapse at year end unless specifically approved by the Council for inclusion in the following years' appropriations. Each Department receives a monthly budget -to -actual expenditure report. In addition, each department can access on-line budgetary data from the financial information system available throughout the City-wide computer network. The City Council is also given an Executive level Summary of Revenues and Expenditures on a monthly basis. Gann Limit - Aoorooriations Subiect to the Limit In 1979, Proposition 4, the "Gann" initiative, was passed by the voters of California. The purpose of this law was to limit government spending by putting a cap on the total proceeds of taxes that may be appropriated each year. This limit is increased each year through a formula that takes into consideration changes in the Consumer Price Index and state per -capita income. If a city reaches this limit, excess tax revenue must be returned to the State or citizens through a process of refunds, rebates, or other means that may be defined at that time. The Gann Limit for the City of La Quinta has increased steadily since 1979 and still provides the City with a comfortable operating margin. In 1991-92 state law allowed the recalculation of the City's limit with new inflation factors. Using population growth in the City and growth in State per capita income, the Gann spending limit was increased to $25.3 million for fiscal year 1997-98. Appropriations of "proceeds of taxes" was $8.6 million for a margin of $16.7 million. vii Honorable Mayor, City Council, and City Manager 1 Revenue and Expenses from All Fund Types The following schedules present a summary of the general fund, special revenue funds, debt service funds, capital project funds, Internal Service fund revenues and expenditures for 1997-98 and the amount and percentage of. increases and decreases in relation to prior year revenues. Revenue from All Fund Types 97-98 over Fund Type 1997-98 1996-97 . (under) 96-97 Change General Fund • $11,808,235 $9,790,719 $2,017,516 20.6% 1 Special Revenue Funds 6,543,379 8,905,876 -2,362,497 -26.5% Debt Service Funds 13,860,628 12,641,814 1,218,814 9.6% Capital Project Funds 4,670,155 2,844,354 1,825,801 64.2% Internal Services Fund 199,731 135,913 63,818 47.0% Total $37,082,128 $34,318,676 $2,763,452 8.0% Expenditures All Fund Types 97-98 over % Fund Type 1997-98 1996-97 (under) 96-97 Change General Fund $ 8,327,740 $7,803,358 524,382 6.7% Special Revenue Funds 3,951,583 3,377,437 574,146 17.0% Debt Service Funds 16,458,977 14,009,893 2,449,084 17.5% Capital Project Funds 8,240,765 6,523,530 1,717,235 26.3% Internal Service Fund 160,051 - 130,151 29,900 23.0% Total $37,139,116 $31,844,369 5,294,747 16.6% 1 For all fund types, the increased revenue is reflective of retail sales growth and increases in permit fees in the General Fund, increased Capital Project Fund activity, and increased operational revenue for the Equipment Replacement Internal Service Fund. Expenditures in all areas of the General Fund increased by a combined amount of 16.6%, with Capital Project fund expenditures increasing by the highest margin of 26.3%. viii 1 Honorable Mayor, City Council, and City Manager General Fund The City's General Fund is used to record all revenue and expenditures not specifically restricted by law or Council policy. Major sources of revenue include property tax, sales tax, transient occupancy tax, licenses and permits, and interest. Categories of expenditures include police services, public works, planning, parks and recreation, and administrative functions. The following two tables summarize General Fund revenues and expenditures for 1997-98 and 1996- 97: General Fund - Revenue Source 1997-98 1996-97 Taxes $ 6,764,355 $5,942,698 Licenses and permits 1,144,564 793,689 Charges for services 1,228,269 976,897 1 Intergovernmental 1,110,553 1,072,803 Interest 1,164,145 941,327 Litigated Settlements 281,382 40,593 1 Miscellaneous 114,969 22,712 Total $11,808,237 $9,790,719 1 ix 97-98 over % (under)96-97 Change $ 821,657 13.8% 350,875 44.2% 251,372 25.7% 37,750 3.5% 222,818 23.7% 240,789 593.2% 92,257 406.2% $2,017,518 20.6% Honorable Mayor, City Council, and City Manager The total 1997-98 General Fund revenue increase of 20.6% reflects a steady increase in tourism and population growth. The 44.2% increase in License and Permit revenue was greater than anticipated for 1997-98. Although fiscal year 1996-97 showed signs of slowing construction activity, the strong rebound in 1997-98 has boosted optimism among both builders and home buyers in La Quinta. The City expects an upward shift in equilibrium market prices for both new and resale residential units. The Charges for Services increase of 25.71/o reflects a change in engineering fees which were handled as a deposit trust system in 1996-97 and prior years and in 1997-98 were changed to a straight revenue fee system. The 593.2% increase in Litigated Settlements is primarily due to payments received from an investments -related lawsuit. The Intergovernmental increase of 3.5% reflects a relatively flat revenue trend for this income source for 1997-98. Interest revenues increased by 23.7% primarily due to earnings on loans to the La Quinta Redevelopment Agency, and to a lesser degree on more aggressive investment of idle cash. The large increase of 406.2% in Miscellaneous revenue is primarily due to the one time dividends received from the City's proportionate share of Excess Disability and Worker's Compensation deposits with the Coachella Valley Joint Powers Insurance Authority. The City is no longer a member of this insurance authority and :is now a member of the California Joint Powers Insurance Authority. Expenditure Type General Government Public Safety Community Services Planning & Development Public Works Total General Fund Expenditures 1997-98 1996-97 $2,229,389 $2,376,935 4,099,523 3,442,056 494,402 469,110 345,054 455,563 1,159,372 993,518 $8,327,740 $7,737,182 97-98 over % i (under) 96-97 Change -147,546 -6.2% 657,467 19.1% 25,292 5.4% -110,509 -24.3% 165,854 16.7% 590,558 7.6% Honorable Mayor, City Council, and City Manager The 1997-98 General Fund net expenditure increase of 7.6% reflects the net changes in the five functional areas of the General Fund. Most noteworthy is the 19.1% increase in public safety expenditures. The General Government decrease of 6.2% was due to across-the-board expenditure decreases in all General Government departments, with the exception of economic development activities. The 5.4% increase in Community Services expenditures is a result of the Council's on -going commitment to offer more services to the public. Public Works expenditures increased by 16.7% largely as the result of increases in Traffic Maintenance and Lighting and Landscape Maintenance. In fiscal year 1996-97, the Public Works expenditures were shown as $889,694. This figure is being restated above as $993,518 to reflect the actual amount. Special Revenue Funds The City's Special Revenue Funds, which account for the collection and use of special or restricted revenues, received $6.5 million in total revenue in 1997-98. This as a decrease of 26.5%. The Special Revenue Fund expenditures were $3.9 million, an increase of 17% The following two tables summarize Special Revenue Funds revenues and expenditures for 1997-98 and 1996-97: Special Revenue Funds - Revenue 97-98 over % Source 1997-98 1996-97 (under) 96-97 Change Taxes $3,253,847 $2,971,135 $ 282,712 9.5% Developer fees 178,713 2,137,288 -1,958,575 -91.6% Intergovernmental 1,200,519 707,627 492,892 69.7% Interest 728,523 1,325,902 -597,379 -45.1% Special assessments 809,041 994,110 -185,069 -18.6% Rental Income 395,414 715,203 -319,789 -44.7% Miscellaneous 0 54,611 -54,611 n/a Land Sale -22,678 0 -22,678 n/a Total $6,543,379 $8,905,876 -$2.362,497 -26.5% xi Honorable Mayor, City Council, and City Manager Intergovernmental revenue increase of 69.7% is a result of federal grants for transportation and additional law enforcement in the City. The large decrease of 91.6% in Develo en r Fees reflects the one-time developer contribution of $2,112,000 in the Redevelopment Agency received in fiscal year 1996-97. The 45.1% decrease in Interest revenue reflects earrings on lower cash balances. The Rental Income decrease of 44.7% is reflective of rental income recorded from the sale of rental property received during the 1997- 98 fiscal year. Expenditure Type Public Safety Planning & Development Public Works Total 97-98 over % 1997-98 1996-97 (under) 96-97 Change $ 33,388 $ 41,219 -$ 7,831 -19.0% 2,729,873 2,128,288 601,585 28.3% 1,188,322 1,207,930 -19,608 -1.6% $3,951,583 $3,377,437 $574,146 17.0% The $33,388 of Public Safety expenditures in 1997-98 reflects the continuing grant funding for additional law enforcement personnel from the State Law Enforcement Block Grant (COPS) program. The Planning & Development increase of 28.3% is primarily a result of expanding the silent second home rehabilitation program in the Redevelopment Agency. The Capital Outlays remained relatively unchanged when compared to fiscal year 1996-97. xii Honorable Mayor, City Council, and City Manager Debt Service Funds The City's Debt Service Funds are used to record the payment of interest and principal on the current portion of outstanding debt. The following two tables summarize Debt Service Funds revenues and expenditures for 1997-98 and 1996-97: Debt Service Funds - Revenue 97-98 over % Source 1997-98 1996-97 (under)96-97 Change Taxes $13,015,387 $11,884,541 $ 1,130,846 9.5% Intergovernmental 0 4,614 -4,614 n/a Interest 110,618 168,191 -57,573 -34.2% Rental Income 734,623 584,468 150,155 25.7% Total $13,860,628 $12,641,814 $1,218,814 9.6% The Taxes revenues increase of 9.5% reflects increased building activities and lower than expected property value reassessment appeals. The Interest revenue's large decrease of 34.2% is a result of lower cash balances in the debt service funds. The Financing Authority's debt service fund receives revenue from the General Fund in the form of rental income to pay for lease payments. The lease payments in 1997-98 increased, resulting in a corresponding increase in Rental Income of 25.7%. Expenditure Type Planning & Development Debt Service Total Debt Service Funds- Expenditures 1997-98 $ 209,588 16,249,389 $16,458,977 1996-97 $151,741 13,858,152 $14,009,893 97-98 over % (under) 96-97 Change $ 57,847 38.1% 2,391,237 17.3% $2,449,084 17.5% The increase of 38.1% in Planning & Development is a result of higher contract administrative service fees in the Redevelopment Agency debt service fund. The Debt Service expenditure increase of 17.3% reflects higher scheduled tax increment pass through payments in the Redevelopment Agency. Honorable Mayor, City Council, and City Manager Capital Project Funds are used to record the receipt and disbursement of monies that are restricted for the acquisition and construction of capital facilities. The following two tables summarize Capital Project Funds revenues and expenditures for 1997-98 and 1996-97: Capital Project Funds - Revenue Source Developer fees Intergovernmental Interest Litigated Settlements Total 1997-98 $2,961,792 1,167,522 540,637 204 $4,670,155 1996-97 $1,752,975 656,237 405,151 29.991 $2,844,354 97-98 over (under) 96-97 $1,208,817 511,285 135,486 -29.787 $1,825,801 Change 69.0% 77.9% 33.4% -99.3% 64.2% Developer fees increased 69.0% due to increased building activities resulting from infrastructure fees and specific projects funded by developer fees. Intergovernmental revenue's large increase of 77.9% is a result of state and local partnership grants for transportation -related capital improvements. No significant Litigated Settlements revenue was received in 1997-98 in the Capital Projects funds. Expenditure Type Planning & Development Capital Outlay Debt Service Total . � m . rz41TWT13z MI t 1997-98 $ 651,832 7,588,933 0 $8,240,765 1996-97 $1,171,440 5,318,680 33,410 $6,523,530 97-98 over % (under) 96-97 Change -$ 519,608 -44.4% 2,270,253 42.7% -33,410 n/a $1,717,235 26.3% The 44.4% decrease in Planning & Development expenditures reflects a reduction in contract consultant fees in ' the Redevelopment Agency - Capital Improvement Funds. The vital Outlav increase of 42.7% is a result of increased scheduled Capital Improvement Projects in 1997-98. xiv Honorable Mayor, City Council, and City Manager Internal Service Fund The City's Internal Service Fund (Equipment Replacement Fund) is used to report the operational cost of maintaining and replacing City vehicles and equipment. Cost allocation charges are recorded as expenditures in General Fund departmental budgets accounts and as revenues in the Equipment Replacement Fund. Charges are based on a schedule that recovers maintenance and depreciation costs. The fund was established in 1996-97 with seed money from the General Fund and it had no operating activity that year. 1997-98 is the first full year of operation for this fund. New vehicles and equipment are purchased in the respective General Fund department and then transferred out as contributed capital to the Equipment Replacement Fund at the end of the year. Source Operating Revenue Charges for Services Operating Expense: Cost of Services Administration Depreciation Total Operating Expense Operating Income (Loss) Non -Operating Revenues (Expenses) Interest Total Non -Operating Revenue (Expenses) Net Income (Loss Before Transfers Operating Transfers: Operating Transfers In Total Operating Transfers Net Income (Loss) Retained Earnings at Beginning of Year Retained Earnings at End of Year Equipment Replacement Fund 1997-98 1996-97 $199,731 $135,913 97-98 over % (under) 96-97 Change $ 63.818 47.0% $ 60,585 $ 92,114 $ 31,529 -34.2% 4,626 3,845 781 20.3% 94,840 34,192 60,648 177.4% . $160,051 $130,151 $ 29,900 23.0% $ 39,680 $ 5,762 $ 33,918 588.7% $ 25,491 $ 25,382 $ 25,491 $ 25,382 $ 65,171 $ 0 $ 0 $ 65,171 31.144 $225,000 $225,000 $256,144 $ 109 109 $ 34,027 -$225,000 -$225,000 -$ 190,973 0.4% 0.4% 109.3% n/a n/a -74.6% $508,730 $252,586 $ 256,144 101.4% $573,901 $508,730 r9 $ 65,171 12.8% Honorable Mayor, City Council, and City Manager The California Joint Powers Insurance Authority (CJPIA) was formed in 1997 under a joint exercise of powers agreement between local governments for the purpose of jointly funding programs of insurance under Section 990 of the California Government Code. The Authority is governed by a Board of Directors, which is composed of one director from each member organization which maintains membership in the Liability program. The City of La Quintajoined the CJPIA in order to achieve long-term premium stability. Each member city must remain in the pool for three years. Each year, the self -insured pool undergoes a retrospective deposit computation based on current incurred loss valuations. Appropriate adjustments are then made over a three-year period. The likelihood of the need for excess premiums is remote given the claims history of the cities involved and the length of time necessary to settle large claims. Generally, individual claims in excess of the self -insured amount for worker's compensation and general liability fall under the insurance policies purchased by the City. The CJPIA provides for liability insurance coverage with a maximum of $50,000,000 per claim. All reserves are invested and earnings are credited to members in proportion to their equity. At present, the CJPIA has invested reserves in excess of $100,000,000. Based on historical experience, as of June 30, 1998, the City's year-end deposit with CJPIA is expected to exceed its liability for claims payable, including incurred but not reported losses, and therefore no liability for claims payable has been recorded in the general long-term debt account group. City Retirement Costs Note 21 in the Notes to the Financial Statements explains in detail the financing of the City's retirement program. Significant financial information has been disclosed in the notes in order to comply with GASB Statement Number 5. Based upon the latest information, the total over funded benefit obligation applicable to the employees of the City at June 30, 1996 was $340,242 up $267,332 from an over funded pension benefit obligation of $72,910 as of June 30, 1995. Employer contribution rates are reviewed and adjusted annually to achieve full fimding for retirement benefits by the year 2011. The City Council annually adopts an investment policy that is intended to provide the highest investment return with the maximum security while meeting the daily cash flow demands of the City and conforming to all state and local statutes governing the investment of public funds. During the 1997-98 fiscal year, idle funds were deposited in accordance with this policy in demand deposits, medium -tern notes, treasury and agency notes, treasury money market funds, and a pooled investment administered by the State of California. At all times there was compliance with the City's investment policy, and safety and liquidity objectives were placed above rates of return considerations in making deposits and investments. All deposits during the year were insured by the Federal Deposit Insurance Corporation or were collateralized. xvi tHonorable Mayor, City Council, and City Manager The City Treasurer is charged with the responsibility of safeguarding the City's assets, receiving all payments due the City and investing all inactive funds. During the year the City Treasurer earned about $2.8 million in interest 1 on investments in all fund types with annualized earnings on pooled cash investments of 5.51% , compared to earnings of $3.0 million and annualized earnings on pooled cash investments of 5.65% during 1996-97. Funds are invested in various types of instruments as shown below. The earnings on pooled cash investments reflects 1 the downward trend in interest rates during the last twelve months. At June 30, 1998, the Treasurer had 100% of all available funds invested. The City's total portfolio at year end was $ 47,345,765. Below is a summary of cash and investments outstanding as of June 30, 1998 e Form of Cash and Investments June 30, 1998 Demand Deposits 238,404 U.S. TreasuryBills/Notes 16,503,681 1 U.S. Government Agency Securities 12,904,264 Mutual Funds -First American Treasury 5,183,870 Local Agency Investment Fund 12.515 546 Total 47.345.765 As required by State law, the City Council has adopted a comprehensive investment policy specifying the type and term of City investments. The policy allows the City Treasurer flexibility without endangering the safety, liquidity or yield of the total portfolio. Certificate of Award for Outstanding Financial Reporting The California Society of Municipal Finance Officers (CSMFO) and the Government Financial Officers Association (GFOA) both present an annual Certificate of Award for Outstanding Financial Reporting. We believe that our current report conforms to their program requirements and we are submitting this report to their organizations for consideration. If received, the Certificates are valid for one year only. The City received the GFOA award for the first year in 1997-98 and the CSMFO award for the previous three years. xvii Honorable Mayor, City Council, and City Manager This report could not have been accomplished without the dedicated services of the Finance Department staff. Recognition is given to Juan Herrera, Accounting Manager for his efforts in preparing the introductory and financial sections, Geniene Croft, Financial Services Assistant for her efforts in preparing the statistical section, Debbie De Renard, Secretary for her report preparation skills and Sharon Christensen, Pam Li Calsi, Misaela Mendoza, and Pat Parker for their diligence in processing most of the transactions reported upon in the financial section of this report. We also appreciate the City Manager and City Council for providing the resources to prepare this report and for their role in preserving the City's framework of internal controls. We further appreciate the efforts of the Conrad & Associates, CPA's audit team for their professionalism in conducting the annual audit for the City of La Quinta. Respectfully subriitted, bJ dX4,� John M. Falconer Finance Director and Treasurer xviii CITY OF LA QUINTA Directory of Officials June 30, 1998 CITY COUNCIL John Pena Mayor Terry Henderson Mayor Pro Tern Stanley Sniff Council Member Don Adolph Council Member Ronald Perkins Council Member Thomas P. Genovese City Manager Mark Weiss Assistant City Manger John M. Falconer Finance Director Tom Hartung Building and Safety Director Jerry Herman Community Development Director Dawn Honeywell City Attorney Dodie Horvitz Community Services Director Saundra L. Juhola City Clerk Chris Vogt Public Works Director/City Engineer xix yya E a �d E�SfiQQ y CF Um`geC Fy 9 Q m ii �b '� dt' mill U y ^ai g Fb—H— A 44p 0 NN N § g CH Ibg LD y V m��b�F � _ ¢y $ CC$58 pE��s� I � � a�f xx XXl Certificate of Achievement for Excellence in Financial Reporting Presented to City of La Quinta, California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 1997 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. i 3 tn � g President amp 0� YO(7 Executive Director k,"l N OVA" T�i C CERTIFIED PUBLIC ACCOUNTANTS 1��A CZSOCIA ES, L.L.P. IRVI MAIN CALIFORUITE C NIA IRVINE, CALIF 49) 47 -2024 A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (949) 474-2020 Fax (949) 263-5520 The Honorable Mayor and City Council City of La Quinta La Quinta, California Independent Auditors' Report We have audited the accompanying general purpose financial statements of the City of ® La Quinta, California as of and for the year ended June 30, 1998, as listed in the table of ® contents. These general purpose financial statements are the responsibility of the management of the City of La Quinta, California. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the aforementioned general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of La Quinta, California as of June 30, 1998, and the results of its operations and the cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. During the year ended June 30, 1998, the City implemented GAS13 Statement No. 31 which changed the manner in which the City accounts for investments, as discussed further in note 30 to the financial statements. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual funds financial statements and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of La Quinta, California. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements, and in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. The scope of our audit did not include the supplemental statistical schedules listed in the table of contents and we do not express an opinion on them. In accordance with Government Auditing Standards, we have also issued a report dated August 19, 1998 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. August 19, 1998 t MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION CITY OF LA QUINTA Combined Balance Sheet - All Fund Types and Account Groups June 30, 1998 Governmental Fund Types Special Debt Capital Assets and Other Debits General Revenue Service Proiects Assets: Cash and investments (note 2) $ 9,083,175 5,962,772 5,272,572 7,854,997 Cash with fiscal agent (note 2) - 8,129,831 74,235 8,479,943 Accounts receivable 277,517 23,301 11 81,258 Prepaid items 3,491 - - - Interest receivable 131,324 34,626 - 142,956 Notes receivable (note 27) - 2,420,750 - 108,217 Due from other funds (note 26) 59,314 62,192 - 306,361 Due from other governments 352,808 5,450 - - Advances to other funds (note 14) 8,910,076 551,038 - Deposits 2,175 - - Property, plant and equipment (note 4) Property held for resale Other debits: Amount available in debt service funds Amount to be provided for retirement of general long-term debt Total assets and other credits $18,819,880 17,189,960 5346,818 16973.732 Liabilities, Equity and Other Credits Liabilities: Accounts payable $ 772,237 54,988 4,340 379,160 Accrued expenses 107,944 504,731 - Compensated absences payable (note 5) - - Deferred revenue 14,230 - - Deposits payable 342,581 49,266 373,635 Deferred compensation payable - - Contracts payable - Retentions payable - - 259,532 Due to other funds (note 26) 99,129 224,894 103,844 Due to bondholders - - - - Advances from other funds (note 14) 551,038 Long-term debt (note 5 through 15) Total liabilities 1,336,121 32%148 1,060,109 1,116,171 Equity and other credits: Investment in general fixed assets - - - - Contributed capital (note 19) Retained earnings (note 18): Unreserved - - Fund balances (note 17): Reserved 8,915,742 11,101,619 4,286,709 8,588,160 Unreserved 8,568,017 5,759,193 ft 7,269,401 Total equity and other credits 17,483,759 16,860,812 4,286,709 15,857,561 Total liabilities, equity and other credits $18,819,880 17,189,960 5,346,818 16973.732 See accompanying notes to the financial statements. 2 Proprietary Fund Types Internal Service 709,295 571,994 1,281,289 6,362 6,362 701,026 573,901 1,274,927 1,281,289 Fiduciary Fund Types Account Groups General General Agency Fixed Assets Lone -Term Debt 1,778,945 266 1,779,211 2,500 395,202 1,381,509 1,779,211 1,779,211 26,447,453 26,447,453 26,447,453 26,447,453 26,447,453 3 4,286,709 107,040,025 111,326,734 313,620 8,910,076 102,103,038 111,326,734 111,326,734 Totals (Memorandum Only) 1998 1997 30,661,756 25,977,430 16, 684, 009 12, 801,440 382,353 929,488 3,491 339,305 308,906 244,500 2,528,967 2,552,074 427,867 18,957 358,258 187,170 9,461,114 8,651,108 2,175 39,812 27,019,447 27,045,073 - 86,320 4,286,709 4,019,994 107,040,025 98,161,203 199.165,077 181.053,874 1,219,587 1,025,489 612,675 993,983 313,620 350,653 14,230 - 1,160,684 862,195 - 751,836 - 30,008 259,532 17,390 427,867 18,957 1,381,509 1,393,032 9,461,114 8,651,108 102,103,038 93,730,474 116,953,856 107,825,125 26,447,453 26,450,545 701,026 628,720 573,901 508,730 32,892,230 24,457,677 21.596.611 21.183.077 81211.221 73.228.749 199,165,077 181,053,874 (This page intentionally left blank) CITY OF LA QUINTA Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types aYear ended June 30, 1998 Totals Special Debt Capital (Memorandum Only) General Revenue Service Projects 1998 1997 Revenues: Taxes $ 6,764,355 3,253,847 13,015,387 23,03-0,589 20,798,374 Licenses and permits 1,144,562 1,144,562 793,689 Charges for services 1,228,269 - - 1,228,269 976,897 Developer fees - 178,713 2,961,792 3,140,505 3,890,263 Intergovernmental 1,110,553 1,200,519 - 1,167,522 3,478,594 2,441,281 Investment income 1,164,145 728,523 110,618 540,637 2,543,923 2,840,571 Special assessments - 809,041 - - 809,041 994,110 Rental income 395,414 734,623 1,130,037 1,299,671 Loss on sale of land (22,678) (22,678) Litigation settlement proceeds 281,382 204 281,586 70,584 Miscellaneous 114,969 114,969 77,323 Total revenues 11,808,235 6,543,379 13,860,628 4,670,155 36,882,397 34,182,763 Expenditures: ' Current: General government 1 2,229,389 2,229,389 2,404,473 Public safety 4,099,523 33,388 4,132,911 3,511,402 Community services 494,402 - - - 494,402 479,621 Planning and development 345,054 2,729,873 209,588 651,832 3,936,347 3,907,032 Public works 1,159,372 1,188,322 2,347,694 2,201,447 Capital projects - - 7,588,933 7,588,933 5,318,680 Debt service: Principal 1 1,960,000 1,960,000 1,465,000 Interest 5,034,169 5,034,169 4,921,500 Payments under pass -through obligations 9,255,220 9,255,220 7,505,062 Total expenditures 8,327,740 3,951,583 16,458,977 8,240,765 36,979,065 31,714,217 Excess (deficiency) of revenues over (under) expenditures 3,480,495 2,591,796 (2,598,349) (3,570,610) (96,668 2,468,546 Other financing sources (uses) Operating transfers in 68,902 3,280,377 2,965,779 6,579,703 12,894,761 8,483,908 Operating transfers out (204,870) (9,412,442) (910,721) (2,366,728) (12,894,761) (8,708,908) Proceeds of bonds (net of issuance costs) - 21,565,688 21,565,688 8,500,101 Payments to refunded bond escrow agent - (13,430,939) (13,430,939) (8,488,199) Proceeds of advances from City 810,006 810,006 1,446,215 Total other financing sources (uses) (135,968)(6,132,065 2,865,064 12,347,724 8,944,755 1,233,117 1 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 3,344,527 (3,540,269) Fund balances at beginning of year 14,139,232 20,401,081 Fund balances at end of year $17,483,759 16,860.812 266,715 8,777,114 8,848,087 3,701,663 4,019,994 7,080,447 45,640,754 41,939,091 4,286, 709 15, 857, 561 54,488, 841 45.640,754 See accompanying notes to the financial statements. 5 CITY OF LA QUINTA Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - AII Governmental Fund Types Year ended June 30, 1998 General Fund Variance - Favorable Budget Actual (Unfavorable) Revenues: Taxes $ 6,043,400 6,764,355 720,955 Licenses and permits 724,500 1,144,562 420,062 Charges for services 748,529 1,228,269 479,740 Developer fees - - Intergovernmental 951150 1,110,553 159,403 Investment income 850:900 1,164,145 313,245 Special assessments - Rental income - Loss on sale of land - Litigation settlement proceeds - 281,382 281,382 Miscellaneous 37,050 114,969 77,919 Total revenues 9355,529 11,808,235 2,452,706 Expenditures: Current: General government 2,599,819 2,229,389 370,430 Public safety 4,296,548 4,099,523 197,025 Community services 605,274 494,402 110,872 Planning and development 676,484 345,054 331,430 Public works 1,143,027 1,159,372 (16,345) Capital projects - - Debt service: Principal Interest Payments under pass -through obligations Total expenditures 9,321,152 8,327,740 993,412 Excess (deficiency) of revenues over(under)expenditures 34,377 3,480,495 3,446,118 Other financing sources (uses): Operating transfers in 3,800 68,902 65,102 Operating transfers out (449,038) (204,870) 244,168 Proceeds of bonds (net of issuance costs) _ Payments to refunded bond escrow agent Proceeds of advances from City Total other financing sources (uses) (445,238) 1( 35,968) 309,270 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (410,861) 3,344,527 3,755,388 Fund balances at beginning of year 14,139,232 14,139,232 Fund balances at end of year $13328371 17,483,759 3355,388 See accompanying notes to the financial statements. 6 Special Revenue Funds Debt Service Funds Capital Proiects Funds Variance- Variance- Variance - Favorable Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) 3,227,037 3,253,847 26,810 12,908,147 13,015,387 107,240 20,000 178,713 158,713 2,252,314 2,961,792 709,478 739,814 1,200,519 460,705 - - - 1,996,213 1,167,522 (828,691) 628,350 728,523 100,173 30,000 110,618 80,618 245,208 540,637 295,429 766,330 809,041 42,711 - - - - _ - 341,000 395,414 54,414 697,600 734,623 37,023 - (22,678) (22,678) - - - - 204 204 5,600 (5.600) 5,722,531 6,543,379 820,848 13,641,347 13,860,628 219281 4,493,735 4,670,155 176,420 43,000 33,388 9,612 7,382,180 2,729,873 4,652,307 254,105 209,588 44,517 2,374,637 651,832 1,722,805 1,244,407 1,188,322 56,085 - - - - _ - - 13,624,842 7,588,933 6,035,909 1,960,000 1,960,000 - - - - 5,034,169 5,034,169 - 8,436,663 9,255,220 (818,557 8,669,587 3,951,583 4,718,004 15,684,937 16,458,977 (774,040 15,999,479 8,240,765 7,758,714 (2,947,056) 2,591,796 5,538,852 (2,043,590) (2,598,349) 554759 (11,505,744) _(3,570,610) 7,935,134 2,822,336 3,280,377 458,041 2,956,049 (10,527,916) (9,412,442) 1,115,474 (1,810,595) 810,006 (7,705,580) (6,132,065) 1,573,515 1,955,460 2,965,779 9,730 12,466,530 6,579,703 (5,886,827) (910,721) 899,874 (5,053,166) (2,366,728) 2,686,438 - 21,565,688 21,565,688 - - - (13,430,939) (13,430,939) 810,006 2,865,064 909,604 15,548,113 12,347,724 3 200 389 (10,652,636) (3,540,269) 7,112,367 (88,130) 266,715 354,845 4,042,369 8,777,114 4,734,745 20,401,081 20,401,081 4,019,994 4,019,994 7,080,447 7,080,447 9,748,445 16.860,812 7,1I2,367 3,931,864 4,286,709 354,845 11.122,816 15,857,561 4,734,745 E CITY OF LA QUINTA Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types Year ended June 30, 1998 Totals (Memorandum Only) Internal Service 1998 1997 Operating revenues: Charges for services $199,731 199,731 135,913 Operating expenses: Fuel and oil 27,189 27,189 22,732 Maintenance and parts 33,396 33,396 49,474 Vehicle and insurance - - 19,908 Administration 4,626 4,626 3,845 Depreciation 94,840 94,840 34,192 Total operating expenses 160,051 160,051 130,151 Operating income (loss) 39,680 39,680 5,762 Non -operating revenues (expenses): Investment income 25,491 25,491 25382 Total non -operating revenues (expenses) 25,491 25,491 25,382 Net income (loss) before operating transfers 65,171 65,171 31,144 Operating transfers: Operating transfers in - - 225,000 Total operating transfers 225,000 Net income (loss) 65,171 65,171 256,144 Retained earnings at beginning of year 508,730 508,730 252,586 Retained earnings at end of year 573 901 573,901 508,730 See accompanying notes to the financial statements. 8 CITY OF LA QUINTA Combined Statement of Cash Flows - All Proprietary Fund Types Year ended June 30, 1998 Totals (Memorandum Only) Internal Service 1998 1997 Cash flows from operating activities: Cash received from other customers $199,731 199,731 135,913 Cash payments to suppliers for goods and services (66,366 1 6( 6,366) (88,442 ) Net cash provided by (used for) operating activities 133,365 133,365 47,471 Cash flows from non -capital financing activities: Cash received from other funds 225,000 Net cash provided by (used for) non -capital financing activities 225,000 Cash flows from investing activities: Interest received on investments 25,491 25,491 28,087 Net cash provided by (used for) investing activities 25,491 25,491 28,087 Net increase (decrease) in cash and cash equivalents 158,856 158,856 300,558 Cash and cash equivalents at beginning of year 550,439 550,439 249,881 Cash and cash equivalents at end of year $709,295 709,295 550 439 Reconciliation of operating income to net cash provided by operating activities: Operating income (loss) $ 39,680 39,680 5,762 Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation 94,840 94,840 34,192 Increase (decrease) in accounts payable (1,155) (1,155 7,517 Net cash provided by (used for) operating activities $133,365 133,365 47,471 Non -Cash Investing, Capital, and Financing Activities During the year ended June 30, 1998, fixed assets with a net book value of $72,306 were transferred to the internal service fund from the general fixed assets account group. See accompanying notes to the financial statements. CITY OF LA QUINTA Notes to the Financial Statements Year ended June 30, 1998 (1) Summary of Significant Accounting Policies (a) Reporting Entity The City of La Quinta ("the City") was incorporated May 1, 1982 under the general laws of the State of California. The City operates under the Council - Manager form of government. The City provides many community services including public safety, highway and street maintenance, health and social services, cultural and leisure services, public improvements, planning and zoning services, and community development services. Approximately 30% of General Fund revenues are derived from the transient occupancy tax generated by the La Quinta Hotel, a prominent resort in the region. The accounting policies of the City conform to generally accepted accounting principles as applicable to governments. As required by generally accepted accounting principles, these financial statements present the government and its ' component units, which are entities for which the govemment is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization's governing body and the City is able to impose its will on that organization or there is a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable if an organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City's financial statements to be misleading or incomplete. All of the City's component units are considered to be blended component units. t Blended component units, although legally separate entities, are, in substance, part of the government's operations and so data from these units are reported with the interfund data of the primary govemment. The following organizations are considered to be component units of the City: 10 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) La Ouinta Redevelopment Avenc The La Quinta Redevelopment Agency ("the Agency") has established two redevelopment project areas pursuant to the State of California Health & Safety Code, Section 33000 entitled "Community Redevelopment Law". On November 29, 1983 and May 16, 1989, the City Council approved and adopted the Redevelopment Plans for the La Quinta Redevelopment Project Areas No. 1 and No. 2, respectively. These plans provide for the elimination of blight and deterioration which was found to exist in the project areas. Even though it is legally separate, it is reported as if it were part of the City because the City Council also serves as the governing board of the Agency. Upon completion, separate financial statements of the Agency can be obtained at City Hall. City of La Quinta Public Financing Authority The La Quinta Public Financing Authority (Authority) was established pursuant to a Joint Exercise of Powers Agreement dated November 19, 1991, between the City of La Quinta and the La Quinta Redevelopment Agency. The purpose of the Authority is to provide financing necessary for the construction of various public improvements through the issuance of debt. Although it is legally separate, it is reported as if it were part of the City because the City Council also serves as the governing board of the Authority. Upon completion, separate financial statements of the Authority can be obtained at City Hall. (b) Fund Accounting The basic accounting and reporting entity is a "fund". A fund is defined as an independent fiscal and accounting entity with a self -balancing set of accounts, recording resources, related liabilities, obligations, reserves and equities segregated for the purpose of carrying out specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations. The accounting records of the City are organized on the basis of funds and account groups classified for reporting purposes as follows: 11 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (1) Summary of Significant Accounting Policies. (Continued) GOVERNMENTAL FUNDS General Fund ' The primary fund of the City is used to account for all revenue and expenditures ' of the City not legally restricted as to use. A broad range of municipal activities are provided through this fund including City Manager, City Attorney, Finance, City Clerk, Community Development, Police Services, Public Works, Building and Safety, and Community Services. ' Special Revenue Funds The Special Revenue Funds are used to account for proceeds of specific revenue ' sources that are restricted by law or administrative action for specific purposes. Debt Service Funds ' The Debt Service Funds are used to account for resources, set aside for repayment of general long-term debt. ' Capital Projects Funds Capital Projects Funds are used to account for financial resources to be used for ' the acquisition or construction of major capital facilities. PROPRIETARY FUNDS ' Internal Service Fund ' The Internal Service Fund is used to finance and account for activities involved in rendering services to departments within the City. Costs of materials and services ' used are accumulated in this fund and charged to the user departments as such goods are delivered or services rendered. The Equipment Replacement Fund is the only internal service fund in the City. It ' is used to account for the ultimate replacement of City owned and operated vehicles and equipment. 12 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) FIDUCIARY FUNDS Agency Funds The Agency Funds are used to account for assets held by the City in an agency capacity for individuals, private businesses and other governmental agencies. ACCOUNT GROUPS General Fixed Assets Account Grou The General Fixed Assets Account Group is used to account for the costs of fixed assets acquired to perform general government functions. Assets purchased are recorded as expenditures in the governmental funds and capitalized at cost in the general fixed assets account group. Fixed asset records include estimates of original historical cost as determined by knowledgeable individuals in the City. Contributed fixed assets are recorded in general fixed assets at fair market value when received. Fixed assets acquired under a capital lease are recorded at the net present value of future lease payments. Fixed assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems, have not been capitalized. Such assets normally are immovable and of value only to the City. Therefore, the purpose of stewardship for capital expenditures is satisfied without recording these assets. No depreciation has been provided on general fixed assets. General Long -Term Debt Account Group The General Long -Term Debt Account Group is used to account for all long-term debt of the City. (c) Measurement Focus and Basis of Accounting Governmental (general, special revenue, debt service and capital projects) fund types are accounted for on a "spending" measurement focus. Accordingly, only current assets and current liabilities are included on their balance sheets. The reported fund balance provides an indication of available, spendable resources. Operating statements for governmental fund types report increases (revenues) and decreases (expenditures) in available spendable resources. 13 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (1) Summary of Significant Accounting Policies. (Continued) (c) Measurement Focus and Basis of Accounting, (Continued) Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. The modified accrual basis of accounting is followed by the governmental and agency funds. Under the modified accrual basis of accounting, revenues are susceptible to accrual when they become both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures, other than interest on long -tern debt, are recorded when a current liability is incurred. Liabilities are considered current when they are normally expected to be liquidated with expendable available financial resources. Taxes, subventions, and entitlements held at year-end by an intermediary collecting government are recognized as revenue under the modified accrual basis of accounting. Reimbursement grant revenues are recognized when the related expenditures are incurred. Revenues from interest and rents are recorded when earned. Material delinquent and total uncollected current year property taxes (net of estimated uncollectibles) are recorded as current year receivables. Property taxes ' (net of estimated uncollectibles) that are levied and measureable in the current year, but not available to finance current period expenditures, are recorded as a receivable and as deferred revenues. The deferred revenues are recognized as revenue in the fiscal year in which they become available. ' Licenses, permits, fines, forfeitures, charges for services, and miscellaneous revenues are recorded as governmental fund revenues when received in cash because they are generally not measurable until actually received. The proprietary (internal service) fund types are accounted for on an "income ' determination" or "cost of services" measurement focus. Accordingly, all assets and liabilities are included on the balance sheet, and the reported fund equity provides an indication of the economic net worth of the fund. Operating statements for proprietary fund types report increases (revenues) and decreases t (expenses) in total economic net worth. The accrual basis of accounting is utilized by the proprietary funds. Revenues are ' recognized when they are earned and expenses are recorded when the related liability is incurred. Unbilled service receivables, if material, have been recorded in the financial statements as an accrued revenue. t 14 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (d) Budgetary Data The City adopts an annual budget prepared on the modified accrual basis of accounting for its governmental funds and on the accrual basis of accounting for its proprietary funds. The City Manager or his designee is authorized to transfer budgeted amounts between the accounts of any department. Revisions that alter the total appropriations of any department or fund are approved by City Council. Additional appropriations in the amount of $9,974,319 were made during the year. Prior year appropriations lapse unless they are approved for carryover into the following fiscal year. Expenditures may not legally exceed appropriations at the department level. Reserves for encumbrances are not recorded by the City of La Quinta. (e) Interfund Transfers Nonrecurring transfers of equity between funds are reported as an adjustment to beginning fund balance. Operating transfers are reported as other sources and uses of funds in the statement of revenues, expenditures, and changes in fund balances. (f) Advances to Other Funds Long-term interfund advances are recorded as a receivable and in the long-term debt account group. (g) Investments Investments are reported in the accompanying balance sheet at fair value, except for certain certificates of deposit and investment contracts that are reported at cost because they are not transferable and they have terms that are not affected by changes in market interest rates. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments. The City pools cash and investments of all funds, except for assets held by fiscal agents. Each fund's share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various funds based on each fund's average cash and investment balance. 15 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (1) Summary of Significant Accounting Policies (Continued) (h) Due from Other Governments The amounts recorded as a receivable due from other governments include sales taxes, property taxes, and grant revenues, collected or provided by Federal, State, County and City Governments and unremitted to the City as of June 30, 1998. The County of Riverside assesses, bills, and collects property taxes for the City. (i) Property. Plant and Equipment Property, plant and equipment used in governmental fund type operations are not capitalized in the funds used to acquire or construct them. Instead, capital acquisition and construction are reflected as expenditures in the governmental fund, and the related assets are carried in the General Fixed Assets Account Group. Property, plant and equipment are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated fixed assets are valued at their estimated fair market value at the date of the donation. Public domain ("infrastructure") general fixed assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems are not capitalized, as these assets are immovable and of value only to the government. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related fixed assets, as applicable. Assets in the general fixed assets account group are not depreciated. Depreciation of building improvements, equipment, and vehicles in the proprietary fund is computed over the estimated useful lives using the straight-line method. The following schedule summarizes proprietary fund type fixed asset useful lives: Building improvements 15 years Equipment and furniture 3-20 years Vehicles 5 years 16 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (1) Summary of Si¢nificant Accounting Policies. (Continued) (j) Property Held for Resale Land held for resale represents property acquired by the Agency for resale. The property is recorded at original cost. No write -down for a lower market value has been reflected in the accompanying financial statements. (k) . Employee Leave Benefits Sick time is vested on a percentage based on number of years employed at the City. Maximum accumulation of sick and vacation is 30 and 40 days, respectively. Upon termination or retirement, permanent employees are entitled to receive compensation at their current base salary for all unused vacation leave. If an employee terminates with a minimum of two years service, the employee is entitled to receive 25% of the value of his unused sick leave. The percentage increases by 25% for each five year period until the employee is entitled to 75% of the value of his unused sick leave. This will occur upon the completion of ten years of continuous employment. (1) Capitalization of Leases Capitalized leases have been treated in accordance with Financing Accounting Standards Board Statement No. 13 (Accounting for Leases) (see note 6). (m) Claims and Judgments The City records a liability for material litigation, judgments, and claims (including incurred but not reported losses) when it is probable that an asset has been impaired or a material liability has been incurred prior to year end and the probable amount of loss (net of any insurance coverage or available funds on deposit) can be reasonably estimated. (n) Postemplovment Benefits The City does not provide postemployment benefits (other than pension benefits) to its employees. (o) Capital Projects Capital projects expenditures include public domain or infrastructure projects which are not capitalized as additions to general fixed assets. 17 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (1) Summary of Sienificant Accounting Policies. (Continued) (p) Cash Equivalents for Statement of Cash Flows For purpose of the statement of cash flows, cash equivalents are defined as short- term, highly -liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of change in value because of changes in interest rates. Investments purchased within three months of original maturity are considered to be cash equivalents. Cash and cash equivalents in the accompanying statements include the proprietary funds' share of the cash and investment pool of the City of La Quinta. (q) Applicability of FASB Pronouncements to Proorietary Funds The City applies all applicable Governmental Accounting Standards Board (GASB) pronouncements in accounting and reporting for its proprietary operations as well as the following pronouncements issued on or before November 30, 1989, unless these pronouncements conflict with or contradict GASB pronouncements: Financial Accounting Standards Board (FASB) Statements and Interpretations; Accounting Principles Board (APB) Opinions; and Accounting Research Bulletins (ARBs) of the Committee on Accounting Procedures. (r) Memorandum Only Totals Columns in the accompanying financial statements captioned "Totals (Memorandum Only)" are not necessary for a fair presentation of the financial statements in accordance with generally accepted accounting principles, but are presented as additional analytical data. Interfund balances and transactions have not been eliminated and the columns do not present consolidated financial information. (2) Cash and Investments Cash and investments are reported as follows on the combined balance sheet: Cash and investments Cash with fiscal agent Total $30,661,756 16,684,009 47 345 765 is CITY OF LA QUINTA 1 Notes to the Financial Statements (Continued) (2) Cash and Investments, (Continued) Cash and investments held by the City at June 30, 1998 consisted of the following: Demand deposits $ 238,404 Investments 47,107,361 Total $47,345,765 The City and its component units are authorized by its investment policy to invest in the following types of investments: Investment Tvne Maximum % d Savings/operating accounts 85% Government pools 35% U.S. government and agency securities 75% Bankers' Acceptances 30% Commercial Paper 30% Mutual Funds 20% Certificates of Deposit 1 60% e Under the California Government Code, a financial institution is required to secure deposits made by state or local governmental units by pledging securities held in the form of an undivided collateral pool. The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public 1 deposits. Deposits of cities and other state or local governments are classified in three categories to 1 give an indication of the level of credit risk assumed by the City, as follows: Category 1 - includes deposits that are insured or collateralized with securities held by the City or its agent in the City's name. Category 2 - includes deposits collateralized with securities held by the pledging financial institution's trust department or agent in the City's name. Category 2 also includes deposits collateralized by an interest in an undivided collateral pool held by an authorized Agent or Depository and subject to certain regulatory requirements under State law. 1 19 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (2) Cash and Investments. (Continued) Category 3 - includes deposits collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the City's name. Category 3 also includes any uncollateralized deposits. Category Bank Book Form of Deposit 1 2 3 Balance Balance Deposits held by the City: Demand deposits $100,000 263,185 162,881 526,066 238,404 100 000 263.185 162.881 526,066 238.404 Investments of cities in securities are classified in three categories to give an indication of the level of custodial risk assumed by the entity.. Category I - includes investments that are insured or registered or for which the securities are held by the City or the City's custodial agent (which must be a different institution other than the party through which the City purchased the securities) in the City's name. Investments held "in the City's name" include securities held in a separate custodial or fiduciary account and identified as owned by the City in the custodian's internal accounting records. Category 2 - includes uninsured and unregistered investments for which the securities are held in the City's name by the dealer's agent (or by the trust department of the dealer if the dealer was a financial institution and another department of the institution purchased the securities for the City). Category 3 - includes uninsured and unregistered investments for which the securities are held by the dealer's trust department or agent, but not in the City's name. Category 3 also includes all securities held by the broker -dealer agent of the City (the party that purchased the securities for the City) regardless of whether or not the securities are being held in the City's name. 20 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (2) Cash and Investments, (Continued) Cateso 1 2 3 Carrying Amount Investments held by the City: U.S. Treasury Notes $ 8,002,399 - - 8,002,399 Federal Home Loan Bank 5,000,000 5,000,000 FNMA 4,984,187 4,984,187 Investments held by fiscal agent: U.S. Treasury Notes - 8,013,696 8,013,696 U.S. Treasury Bill - 487,586 487,586 Federal Home Loan Bank - 973,554 973,554 FNMA 1,946,523 1,946,523 117,986,586 11,421,359 29,407,945 Investments held by the City not subject to categorization: Investment in State of California Local Agency Investment Fund 12,515,546 Investments held by fiscal agent not subject to categorization: Investment in mutual funds: First American Treasury Obligation Fund 5,183,870 $47,107,361 The carrying amounts of the above investments do not differ materially from their fair value. The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro- rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). This was not materially different from the reported value of the portfolio, which is at amortized cost. The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Included in LAIF's investment portfolio are collateralized mortgage obligations, mortgage -backed securities, other asset -backed securities, loans to certain state funds, and floating rate securities issued by federal agencies, government - sponsored enterprises, and corporations. 21 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (3) Property Taxes Under California law, property taxes are assessed and collected by the counties up to 1% of assessed value, plus other increases approved by the voters. The property taxes are recorded initially in a pool, and are then allocated to the cities based on complex formulas. Accordingly, the City of La Quinta accrues only those taxes which are received from the County within sixty days after year end. Lien date Levy date Due dates Collection dates March 1 June 30 November 1 and February 1 ' December 10 and April 10 The La Quinta Redevelopment Agency's primary sources of revenue comes from 1 property taxes. Property taxes allocated to the Agency are computed in the following manner: (a) The assessed valuation of all property within the project area is determined on the ' date of adoption of the Redevelopment Plan. (b) Property taxes related to the incremental increase in assessed values after the adoption of the Redevelopment Plan are allocated to the Agency; all taxes on the "frozen" assessed valuation of the property are allocated to the City and other districts. The Agency has no power to levy and collect taxes and any legislative property tax shift might reduce the amount of tax revenues that would otherwise be available to pay the principal of, and interest on, debt. Broadened property tax exemptions could have a similar effect. Conversely, any increase in the tax rate or assessed valuation, or any reduction or elimination of present exemptions would increase the amount of tax revenues that would be available to pay principal and interest on debt. 22 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (4) Fixed Assets A summary of changes in general fixed assets for the year ended June 30, 1998 are as follows: Transfers Balance at to Proprietary Balance at IJune 30, 1997 Additions Retirements Funds June 30, 1998 Land $13,280,910 - 13,280,910 Equipment and furniture 954,079 172,095 (102,881) (9,001) 1,014,292 Vehicles 224,357 (63,305) 161,052 Leasehold improvements 201,070 201,070 Buildings 11,790,129 11,790,129 Total $26,450,545 172,095 (102,881 (72,306 ) 26,447,453 The following is a summary of proprietary fund type fixed assets for the City at June 30, 1998: Building improvements Equipment Vehicles Less accumulated depreciation ITotal Internal Service Fund $613,890 107,340 377,635 (526,871) 571 994 23 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (5) General Long -Term Debt Changes in general long-term debt for the year ended June 30, 1998 were as follows: Balance at Balance at July 1. 1997 Additions Deletions June 30, 1998 City: Compensated absences payable $ 350,653 - (37,033) 313,620 Capital leases payable - 30,709 (8,570) 22,139 Due to the Coachella Valley Association of Governments 778,311 (50,000) 728,311 Developer Agreements Payable - 880,000 (99,129) 780,871 RDA Project Area No. 1: Tax allocation bonds 32,820,000 15,760,000 (8,695,000) 39,885,000 Housing tax allocation bonds 17,677,385 - (247,979) 17,429,406 Pass -through agreements payable: Due to County of Riverside 10,517,138 - (195,086) 10,322,052 Desert Sands Unified School District 569,010 - (569,010) - Coachella Valley Unified School District 11,270,808 - (580,683) 10,690,125 Advances from other funds* 3,649,852 364,985 4,014,837 RDA Project Area No. 2: Tax allocation bonds 5,505,000 6,750,000 (5,505,000) 6,750,000 Housing tax allocation bonds 4,777,615 (67,021) 4,710,594 Due to County of Riverside 1,803,518 476,022 2,279,540 Advances from other funds* 4,450,218 445,021 - 4,895,239 Financing Authority: Revenue bonds 8,790,000 (285,000) 8,505,000 Total 102.181,197 25,485,048 (16,339,511) 111326,734 * Advances from other funds are money owed by the La Quinta Redevelopment Agency to the City of La Quinta, which also include interest accrued on the advances. (61 Capital Leases Payable The City entered into two capital leases in July 1997 to acquire copiers. Per lease agreements, monthly payments are $752 and $397, respectively, with the final payment due in July 2000. 24 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (7) Due to the Coachella Valley Association of Governments The City of La Quinta entered into an Interchange Reimbursement Agreement with the Coachella Valley Association of Governments (CVAG) to finance capital improvements at the Washington Street I-10 interchange. The City will reimburse CVAG $828,311 over a period of seventeen years beginning July 31, 1996. The annual payments to CVAG range from $28,311 to $50,000. At June 30, 1998, the balance was $728,311. (8) Developer Agreements Payable A developer lease agreement was entered into in December 1996 between the City of La Quinta and Home Depot U.S.A., Inc. for $880,000. As stipulated by the agreement, Home Depot conveyed the title to certain property to the City, the City then leased the same property to Home Depot for one dollar. Home Depot then subleased the same property back to the City. The City's lease payment to Home Depot each year are equal to 48% of sales tax revenues generated by the store up to a maximum of $128,680 per year. The payments will continue for 12 years after the date that the City first receives sales tax revenues from the store or until total principal and interest due has been paid to Home Depot. Interest due on the outstanding principal is eight percent (8%) per annum. Home Depot is required by the agreement to pay for certain street improvements in the vicinity of the store. The balance at June 30, 1998 was $780,871. (9) Tax Allocation Bonds As of June 30, 1998, the following issuances of Tax Allocation Bonds were outstanding: Series 1994 Tax Allocation Refunding Bonds, Series 1994, were issued by the Agency on May 5, 1994, in the amount of $26,665,000 to refund the outstanding aggregate principal amount of the Agency's Tax Allocation Bonds, Series 1989 and 1990. The remaining proceeds were used to finance certain capital improvements within the La Quinta Redevelopment Project Area No. 1. Interest rates on the bonds range from 3.80% to 8% and are payable semi-annually on March 1 and September 1 of each year until maturity. The interest on and principal of the bonds are payable solely from pledged tax increment revenues. The bonds are not subject to redemption prior to maturity. A portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of outstanding bonds at June 30, 1997 is $24,125,000. 25 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (9) Tax Allocation Bonds. (Continued) Series 1994, (Continued) A portion of the bond proceeds, in the amount of $27,922,526, was deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the 1989 and 1990 Tax Allocation Bonds. As a result, the bonds are considered to be defeased and the liability for those bonds has been removed from the general long-term debt account group. As of June 30, 1998, $6,280,000 and $15,875,000 of the 1989 and 1990 defeased bonds are outstanding, respectively. Series 1998, Project Area No. 1 Tax allocation refunding bonds, Series 1998, in the amount of $15,760,000 were issued by the Agency to refund the outstanding aggregate principal amount of the Agency's Tax Allocation Bonds, Series 1991. The remaining proceeds were used to finance certain capital improvements within the La Quinta Redevelopment Project Area No. 1. Interest rates on the bonds range from 5.20% to 5.25% and are payable semi-annually on March 1 and September 1 of each year until maturity. The interest and principal of the bonds are payable from pledged tax increment revenues on a parity with the Agency's previously issued Tax Allocation Refunding Bonds, Series 1994. Term Bonds maturing September 1, 2028 are subject to mandatory sinking fund redemption, in part by lot, on September 1, 2013 and on each September 1 thereafter, through September 1, 2028, at a price equal to the principal amount thereof plus accrued interest. A portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of outstanding bonds at June 30, 1998 is $15,760,000. A portion of the bond proceeds, in the amount of $7,822,592, was deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the 1991 Tax Allocation Bonds. As a result, the bonds are considered to be defeased and the liability for those bonds has been removed from the general long-term debt account Voup. The total debt service payments on the new debt (refunding portion) are 022,599 greater than the total debt service payments on the old debt, primarily as a result of extending the period over which the new debt service will be paid. However, this was almost entirely offset by the interest savings associated with the reduction in interest rates, thereby resulting in a small economic loss of only $111,737. As of June 30, 1998, $7,460,000 of the defeased bonds are outstanding. 26 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (9) Tax Allocation Bonds. (Continued) Series 1998. Proiect Area No. 2 Tax allocation refunding bonds, Series 1998, in the amount of $6,750,000 were issued by the Agency to refund the outstanding aggregate principal amount of the Agency's Tax Allocation Bonds, Series 1992. The remaining proceeds were used to finance certain capital improvements within the La Quinta Redevelopment Project Area No. 2. Interest rates on the bonds range from 3.75% to 5.28% and are payable semi-annually on March 1 and September 1 of each year until maturity. The interest and principal of the bonds are payable solely from pledged tax increment revenues of Project Area No. 2. Term Bonds maturing September 1, 2028 and September 1, 2033 are subject to mandatory sinking fund redemption, in part by lot, on September 1, 2009 and September 1, 2019, respectively, and on each September 1 thereafter at a price equal to the principal amount thereof plus accrued interest. A portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of outstanding bonds at June 30, 1998 is $6,750,000. A portion of the bond proceeds, in the amount of $5,608,347, was deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the 1992 Tax Allocation Bonds. As a result, the bonds are considered to be defeased and the liability for those bonds has been removed from the general long-term debt account group. The total debt service payments on the new debt (refunding portion) are $1,561,149 greater than the total debt service payments on the old debt, primarily as a result of extending the period over which the new debt service will be paid. However, the present value of the difference between the old debt service and the new debt service resulted in an economic gain of $1,026,531 after taking into account the time value of money. This reflects the savings associated with the reduction of interest rates that resulted from the refunding. As of June 30, 1998, $5,380,000 of the defeased bonds are outstanding. (10) 1995 Housing Tax Allocation Bonds (TABS) La Quinta Redevelopment Project Areas No. 1 and 2 1995 Housing Tax Allocation Bonds were issued by the Agency on July 1, 1995, in the amount of $22,455,000 to increase, improve and/or preserve the supply of low and moderate income housing in the City. Interest is payable semi-annually on March 1 and September 1 of each year commencing March 1, 1996. Interest payments range from 4% to 6% per annum. 27 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (10) 1995 Housing Tax Allocation Bonds (TABS), (Continued) Term Bonds maturing on September 1, 2025 are subject to mandatory sinking fund redemption, in part by lot, on September 1, 2011 and on each September 1 thereafter, through September 1, 2025, at a price equal to the principal amount plus accrued interest. A portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of outstanding bonds at June 30, 1998 is $22,140,000. (11) 1996 Lease Revenue Refunding Bonds On November 15, 1996, the Authority issued $8,790,000 of 1996 Lease Revenue Refunding Bonds to defease the remaining 1991 Local Agency Revenue Bonds in the amount of $8,200,000 and to provide funds for construction of remaining improvements to the La Quinta Civic Center site. The bonds consist of $3,630,000 of serial bonds and $5,160,000 of term bonds. The serial bonds will accrue interest at rates between 3.70% and 5.30% and principal amounts mature between October 1, 1997 to October 1, 2008 in amounts ranging from $285,000 to $380,000. The term bonds accrue interest at a rate of 5.55% and mature on October 1, 2018. A surety agreement has been purchased to satisfy the bond reserve requirement. The amount of principal outstanding on the 1996 Lease Revenue Refunding Bonds at June 30, 1998 was $8,505,000.. A portion of the $8,790,000 bond proceeds, along with the remaining reserve from the 1991 Local Agency Revenue Bonds, was used to purchase state and local government securities that were deposited in an irrevocable trust with an escrow bank to provide for all future debt service payments of the outstanding 1991 Local Agency Revenue Bonds of $8,200,000. As a result, these certain bonds are considered to be defeased and the liability has been removed from the general long-term debt account group of the Authority. At June 30, 1998, the amount of defeased bonds outstanding is $7,460,000. 28 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (12) Due to County of Riverside Project Area No. 1 Based on an agreement amended December 21, 1993 between the Agency, the City of La Quinta, and the County of Riverside (County), the Agency will pay to the County $10,517,138 from tax increment revenue relating to Project Area No. 1. This agreement is in consideration of the tax revenues lost by the County as a result of the formation of Project Area No. 1. The tax increment is to be paid to the County over a payment schedule through June 30, 2006 in annual amounts ranging from $386,764 to $2,190,473. Unpaid balances accrue interest at 5.5% per annum. The balance at June 30, 1998 was $10,322,052. Project Area No. 2 Based on an agreement dated July 5, 1989 between the Agency and the County, until the tax increment reaches $5,000,000 annually in Project Area No. 2, the Agency will pay to the County 50% of the County portion of tax increment. At the County's option, the County's pass -through portion can be retained by the Agency to finance new County facilities or land costs that benefit the County and serve the La Quints population. Per the agreement, the Agency must repay all amounts withheld from the County. The Agency is required to begin repayment in the year in which tax increment reaches $5,000,000 in ten equal annual installments. Interest does not accrue on this obligation. The balance at June 30, 1998 was $2,279,540. (13) Notes Payable to Coachella Valley Unified School District An agreement was entered into in 1991 between the Agency, the City of La Quints and the Coachella Valley Unified School District (District) which provides for the payment to the District of a portion of tax increment revenue associated with properties within District confines. Such payments are subordinate to other indebtedness of the Agency incurred in furtherance of the Redevelopment Plan for Project Area No. 1. This tax increment is paid to the District over a payment schedule through August 1, 2012, in amounts ranging from $474,517 to $834,076, for a total amount of $15,284,042. Tax increment payments outstanding at June 30, 1998 totaled $10,690,125. The District agrees to use such funds to provide classroom and other construction costs, site acquisition, school busses, and expansion or rehabilitation of current facilities. 29 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (14) Advances To and From Other Funds The following represents a summary of the various transactions between the City of La Quinta and the La Quinta Redevelopment Agency, which are accounted for as advances from the City: Balances at Balances at July 1, 1997 Proceeds Repayments June 30, 1998 Agency expenditures incurred by the City: Project Area No. 1 $3,649,852 364,985 - 4,014,837 Project Area No. 2 4,450,218 445,021 - 4,895,239 Total W 100,070 810,006 - 8,910,076 There is no stipulated repayment date established for the City advances. Interest is paid at 10% per year. In addition, the Agency elected to borrow $511,903, and $39,135 from Project Area No. 1 and Project Area No. 2, respectively, of the Low/Moderate Income Housing Funds to make the ERAF payment in fiscal year ended June 30, 1994. The Redevelopment Agency Project Area No. 1 and Project Area No. 2 Debt Service Funds will repay the Low/Moderate Income Housing Special Revenue Funds. The Agency has ten years to repay this loan. The Agency has elected to make repayment in the tenth year (2003-04). (15) Debt Service Requirements to Maturity The minimum annual requirements (including sinking fund requirements) to amortize the long-term debt of the City as of June 30, 1998 are as follows (advances payable to the City, the pass -through obligation owed by Project Area No. 2 to the County, and the Developer Agreements payable have been excluded since minimum annual debt service payments have not been established): 30 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (15) Debt Service Requirements to Maturity, (Continued) 1996 Pass -through Agreements Lease 1995 1998 1998 Revenue Coachella County Ending Capital Housing 1994 TABS TABS Refunding Valley of June 30 Leases CVAG TABS TABS P.A. No. 1 P.A. No. 2 Bonds USD Riverside Total 1998-99 $13,781 50,000 1,591,790 2,625,330 614,640 256,506 684,573 621,976 773,528 7,232,124 1999-00 13,781 50,000 1,592,570 2,624,696 819,520 420,507 679,670 649,927 773,528 7,624,199 2000-01 1,148 50,000 1,592,187 2,624,885 819,520 417,467 678,955 670,817 1,803,705 8,658,684 2001-02 - 50,000 1,590,690 2,620,315 819,520 419,249 682,178 684,233 1,803,705 8,669,890 2002-03 - 50,000 1,592,820 2,620,855 819,520 420,747 679,435 697,918 1,803,705 8,685,000 2003-04 - 50,000 1,588,538 2,599,465 819,520 417,080 680,830 711,877 2,190,473 9,057,783 2004-05 - 50,000 1,587,990 2,612,140 819,520 418,264 681,220 726,114 2,190,473 9,085,721 2005-06 - 50,000 1,590,890 2,597,700 819,520 419,167 680,575 740,636 2,190,473 9,088,961 2006-07 - 50,000 1,645,502 2,593,456 819,520 419,785 678,865 755,449 - 6,962,577 2007-08 50,000 1,646,470 2,590,816 819,520 420,135 675,880 770,558 - 6,973,379 2008-09 - 50,000 1,645,125 2,584,232 819,520 420,184 676,450 785,968 - 6,981,479 2009-10 50,000 1,641,540 2,578,160 819,520 419,550 675,280 801,688 - 6,985,738 2010-11 50,000 1,640,840 2,571,868 819,520 418,272 672,525 817,722 - 6,990,747 2011-12 - 50,000 1,641,650 2,569,442 819,520 416,738 673,521 834,076 - 7,004,947 2012-13 - 28,311 1,638,750 2,560,155. 819,520 419,819 673,130 421,166 - 6,560,851 2013-14 - - 1,638,300 - 1,457,490 417,516 671,351 - - 4,184,657 2014-15 - - 1,635,150 - 1,457,520 414,956 673,046 - - 4,180,672 2015-16 - - 1,634,150 - 1,455,730 417,012 673,076 - - 4,179,968 2016-17 - - 1,630,150 - 1,456,990 418,556 671,441 - - 4,177,137 2017-18 - - 1,632,850 - 1,451,300 414,716 668,141 - - 4,167,007 2018-19 - - 1,627,100 - 1,453,530 415,491 668,038 - - 4,164,159 2019-20 - - 1,627,750 - 1,453,420 415,631 - - - 3,496,801 2020-21 1,624,500 - 1,450,970 415,131 - - - 3,490,601 2021-22 1,622,200 - 1,451,050 414,106 - - - 3,487,356 2022-23 - - 1,620,550 - 1,448,530 417,425 - - - 3,486,505 2023-24 - - 1,619,250 - 1,448,280 415,088 - - - 3,482,618 2024-25 - - 1,613,150 - 1,445,170 417,094 - - - 3,475,414 2025-26 - - 1,611,950 - 1,444,070 413,444 - - - 3,469,464 2026-27 - - - - 1,439,850 414,137 - - - 1,853,987 2027-28 - - - - 1,437,380 414,044 - - - 1,851,424 2028-29 - - - - 1,436,400 413,162 - - - 1,849,562 2029-30 - - - - - 411,494 - - - 411,494 2030-31 - 413,906 - - 413,906 2031-32 - 410,400 - - 410,400 2032-33 - - - - - 410,975 - - - 410,975 2033-34 _ 410,500 410,500 Principal and interest 28,710 728,311 45,364,402 38,973,515 35,275,600 14,828,254 14,198,180 10,690,125 13,529,590 173,616,687 Less: Interest (6,571)=(23,224,402)(14,848,515) (19,515,600) (8,078,254 78,254) 5 693 180 - 3 207 538 (74,574,060) *Total principal $22,139 728.311 22,140,000 24,125,000 15,760,000 6,750,000 8,505.000 10690125 10,322,052 99,042,627 • Net present value of future lease payments for capital leases. 31 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (16) Debt Without Governmental Commitment The City of La Quinta sold Improvement Bonds issued pursuant to the California State Improvement Act of 1915. The Bonds are payable from the annual installments collected on the regular property tax bills sent to owners of property having unpaid assessments levied against land benefited by the projects. The Bonds are neither general obligations of the City nor any other political subdivision and the full faith and credit of the City is not pledged for repayment thereof. The City is not liable for repayment of the debt, but is only acting as agent for the property owners in collecting the assessments and forwarding the collections to bondholders. The Bonds do not constitute an obligation of the City; therefore, they are not included in the general long-term debt account group in the accompanying financial statements. The following is a summary of Improvement Bonds outstanding at June 30, 1998: Assessment District No.88-1 Assessment Assessment District No.89-2 District No.90-1 Assessment District No. 91-1 Assessment District No.92-1 Proceeds $855,984 1,153,974 1,227,155 2,240,866 1,880,891 Maturity Date 9/2104 9/2/04 9/2/05 9/2/06 9/2/08 Interest Rate 5.50%7.25% 6.650/4-6.75% 6.50-7.00% 6.70%-6.800/o 5.00%5.40% Amount outstanding at June 30, 1998 $365,000 570,000 680,000 1,455,000 1,455,000 (17) Reserves and Designations of Fund Balances The City establishes "reserves" of fund equity to segregate amounts representing noncurrent assets which are not considered expendable available financial resources, and amounts legally restricted by parties external to the City. Fund "designations" also may be established by the City to indicate plans for the use of financial resources. Fund balances at June 30, 1998 consisted of the following reserves and designations: Reserved for: Debt service requirements Bond projects Advances to other funds Prepaid items Deposits Notes receivable Subtotal Totals General Special Debt Capital (Memorandum Fund Revenue Service Projects Oniv) > 4,286,709 8,129,831 - 8,479,943 8,910,076 551,038 3,491 - 2,175 - - 2,420,750 108,217 8,915,742 11,101,619 4,286,709 8,588,160 4,286,709 t 16,609,774 9,461,114 3,491 ' 2,175 2,528,967 32,892,230 ' OPA CITY OF LA QUINTA Notes to the Financial Statements (Continued) (17) Reserves and Designations of Fund Balances (Continued) Totals General Special Debt Capital (Memorandum Fund Revenue Service Proiects Only) Unreserved: Designated for: Emergency reserve $ 4,192,290 4,192,290 Cash flows 1,300,000 - - 1,300,000 Operations/projects/transfers 3,075,727 5,839,915 7,281,216 16,196,858 Undesignated (80,722 (11,8151 (92,5371 Subtotal 8,568,017 5,759,193 7,269,401 21,596,611 Total fund balances $17,483,759 16,860,812 4,286,709 15,857,561 54,488,841 (18) Retained Earnings As of June 30, 1998, all of the retained earnings in the proprietary fund were unreserved. As provided under generally accepted accounting principles, reserves are only established in proprietary funds for equity legally restricted by parties external to the governmental unit. (19) Contributed Capital A summary of changes in contributed capital for the year ended June 30, 1998 are as follows: Balance at June 30, 1997 $ 628,720 Fixed Assets contributed by developers - Fixed Assets contributed by other funds 72,306 Balance at June 30, 1998 jjU 026 33 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (20) Deferred Compensation The City has made available to its employees a deferred compensation plan, which was created in accordance with Internal Revenue Code Section 457, whereby employees authorize the City to defer a portion of their salary and deposit it in individual investment accounts. Funds may be withdrawn by participants upon termination of employment or retirement. The City makes no contribution under the plan. During the year ended June 30, 1998, the City placed these assets in a trust as prescribed by Internal Revenue Code Section 457(g). Consequently, these assets have been removed from the City's financial statements. (21) Defined Benefit Pension Plan Plan Description The City of La Quinta contributes to the California Public Employees Retirement System (PERS), an agent multiple -employer public employee defined benefit pension plan. PERS provides retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. PERS acts as a common investment ' and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and city ordinance. Copies of PERS' annual financial report may be obtained from their executive ' office: 400 P Street, Sacramento, California 95814. Fundina Polic Participants are required to contribute 7% of their annual covered salary. The City makes the contributions required of City employees on their behalf and for their account. The City is required to contribute at an actuarially determined rate; the current rate is 5.476% for non -safety employees of annual covered payroll. The contribution requirements of plan members and the City are established and may be amended by PERS. Annual Pension Cost For 1998, the City's annual pension cost of $427,611 for PERS was equal to the City's required and actual contributions. The required contribution was determined as part of the June 30, 1996, actuarial valuation using the entry age normal actuarial cost method. The actuarial assumptions included (a) 8.5% investment rate of return (net of administrative expenses), (b) projected annual salary increases that vary by duration of service, and (c) 2% per year cost -of -living adjustments. Both (a) and (b) included an inflation component of 4.5%. The actuarial value of PERS assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a four-year period (smoothed market value). PERS unfunded actuarial 34 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (21) Defined Benefit Pension Plan, (Continued) Annual Pension Cost, (Continued) accrued liability is being amortized as a level percentage of projected payroll on a closed basis. PERS has combined the prior service unfunded liability and the current service unfunded liability into a single initial unfunded liability. The single funding horizon for this initial unfunded liability is June 30, 2011. Miscellaneous Employees Three -Year Trend Information Annual Pension Percentage of Net Pension Fiscal Year Cost (APC) APC Contributed Obligation 6/30/96 $219,522 100% -0- 6/30/97 239,356 100% -0- 6/30/98 218,983 100% -0- Required Supplementary Information ($ amount in thousands) Entry Age Normal Actuarial Unfunded Annual UAAL Accrued Value Liability/ Covered Asa % of Valuation Date Liability of Assets (Excess Assets) Funded Status Payroll Payroll 06/30/94 $2,282,875 2,290,827 (7,952) 100.3% 2,556,263 (0.311%) 06/30/95 2,763,799 2,836,709 (72,910) 102.6% 2,599,639 (2.805%) 06/30/96 3,296,923 3,637,165 (340,242) 110.3% 2,717,286 (12.521%) (22) Claims Payable/Self Insurance The California Joint Powers Insurance Authority (CJPIA) was formed under a joint exercise of powers agreement between local governments for the purpose of jointly funding programs of insurance under Section 990 of the California Government Code. The Authority is governed by a Board of Directors, which is composed of one director from each member organization which maintains membership in the Liability program. The City of La Quinta joined the CJPIA in order to achieve long term premium stability. Each member city must remain in the pool for three years. Each year, the self -insured pool undergoes a retrospective deposit computation based on current incurred loss valuations. Appropriate adjustments are then made over a three year period. The likelihood of the need for excess premiums is remote given the claims history of the cities involved and the length of time necessary to settle large claims. Generally, individual 35 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (22) Claims Payable/Self Insurance. (Continued) claims in excess of the self -insured amount for workers' compensation and general liability fall under the insurance policies purchased by the City. The CJPIA provides for liability insurance coverage with a maximum of $50,000,000 per claim. All reserves are invested and earnings are credited to members in proportion to their equity. At present, the CJPIA has invested reserves in excess of $100,000,000. Based on historical experience, as of June 30, 1998, the City's year end deposit with CJPIA is expected to exceed its liability for claims payable (including incurred but not reported losses) and therefore no liability for claims payable has been recorded in the general long-term debt account group. (23) Expenditures in Excess of Appropriations Expenditures for the year ended June 30, 1998 exceeded the appropriations of the following funds/departments: Budget Actual Variance General funds: City manager $129,851 150,146 (20,295) Fiscal services 155,440 201,152 (45,712) Public works administration 112,112 125,126 (13,014) Development and traffic 413,045 497,549 (84,504) Interfund reimbursements 246,609 255,682 (9,073) Capital projects administration (70,393) 51,134 (121,527) Special revenue funds: Low/Moderate Bond Project Area No. 2 210,812 231,095 (20,283) Debt Service funds: Financing Authority 740,223 741,050 (827) Capital projects funds: Redevelopment Agency Project Area No. 1 362,700 370,024 (7,324) (24) Contingencies Various claims and suits have been filed against the City in the normal course of operations. Although the outcome of these lawsuits is not presently determinable, in the opinion of management, the resolution of these matters will not have a material adverse effect on the financial position of the City. 36 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (25) Year 2000 Project The City of La Quinta is in the process of evaluating its computer systems to ascertain which of its systems might be impacted by a failure of the computer hardware or programming code to properly recognize and process transactions dated on or after the year 2000. The systems under evaluation include: Air Conditioning/Heating Systems Phone Systems (G3iV1) Phone Systems (Audix 2.1.1) Phone System (Homisco) Mobile Phones (Nextel) Street Lights Traffic Signals User Software (Various Applications) Accounting Software (ForFUND by Mirasoft, Inc.) Irrigation Systems Stadium Lights Drainage Pumps Computer Operating System Software Generally, the City is in the Assessment Stage of completion for all systems listed above. The City has incurred (or will incur) the following estimated costs associated with its Year 2000 project: Evaluation of Y2K Compliance • Money spent before June 30, 1998 on Y2K evaluation $ - • Money expected to be spent to complete Y2K evaluation in 1998-99 5,000 • Money to be spent in the future correcting Y2K problems To be determined Hardware and Software Upgrades • Money spent before June 30, 1998 on Y2K upgrades $ - • Money expected to be spent on Y2K upgrades during 1998-99 25,000 • Money to be spent in 1999-2000 to correct Y2K problems Depends on final assessment The scope of the financial statement audit does not include an evaluation of the adequacy of management's plans with respect to this issue. Action taken or planned by the City for each stage relating to this project is as follows: 37 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (25) Year 2000 Project. (Continued) Awareness Stage - The City of La Quinta has conducted a thorough inventory of its computer systems, software and related systems, which may be affected by the year 2000 date. It has completed this initial identification and has identified 95% of the items as either compliant or non -compliant. The City of La Quinta has also sent out a vendor survey to gain information from vendors as to their Y2K awareness and the steps they are taking to ensure compliance. Assessment Stage - The City of La Quinta is just starting the assessment stage. Review of the audit finding will identify compliant and non -compliant systems. Responses to outside vendor surveys will be received and potential problems will need to be identified. Some of the non -compliant issues may not affect City operations. Each case of non- compliance will be evaluated on an individual basis. Contingency plans should also be worked up for each department, in case of system failure due for whatever reason (i.e., streetlights, payroll systems, delivery of electricity, etc.). Completion of assessment to be completed January 1999. Remediation Stage - Once non-compliance has been identified, and this non-compliance has been found to impact negatively on City operations, the City of La Quinta will review options for replacing this system or switching vendors. At this time, the City of La Quinta is requiring all purchases of systems and related items be Y2K compliant. Remediation stage to be completed February 1999. Validation/Testing - Validation and testing will be started in Spring of 1999. The nature of the testing for the data processing system will be to change the dates on the hardware and process batches to identify potential problems. This testing will be done after hours or weekends. Implementation Stage - The implementation of Year 2000 compliance will depend largely on the cost of items identified and the amount of time required to correct the problem. The work done thus far indicates that implementation will occur during the 1999-00 fiscal year. 38 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (26) Due From and To Other Funds Current interfund receivables and payables balances at June 30, 1998 are as follows: General Fund Special Revenue Funds: Low/Moderate Income Housing PA No. 1 Low/Moderate Bond - PA No. 1 Low/Moderate Bond - PA No. 2 Capital Projects Funds: Infrastructure Capital improvement Financing Authority Total (27) Notes Receivable Current Current Interfund Interfund Receivables Payables $ 59,314 99,129 62,192 - - 109,691 115,203 - 92,029 306,361 - 11,815 $427,867 427,867 In September 1994, the Agency sold certain real property to E.G. Williams Development Corporation for $2,112,847. The property was used to construct single-family homes and rental units to increase the City's supply of low and moderate income housing. The note bears interest at 6% per annum and is due in full on June 15, 2029. At June 30, 1998, the outstanding balance plus accrued interest is $2,420,750. At June 30, 1998, the total outstanding balance of all notes receivable (including other notes aggregating $108,217) is $2,528,967. (28) Proposition 218 Recent developments, including the voters' enactment of Proposition 218 in November 1996, have affected the manner in which local governments may impose, extend or increase certain taxes, assessments and property -related fees. The more significant changes which may affect local government revenue streams are as follows: 1. If there is a majority protest against an assessment, the assessment cannot be imposed. This means that increasing an assessment requires majority voter approval. 39 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (28) Proposition 218, (Continued) 2. Certain fees are defined as property -related. Some property -related fees require voter approval at an election; others allow for a majority protest but do not require an election. Property -related fees must comply with certain substantive provisions of Proposition 218, which generally limit the amount of fees. Any local tax, assessment, fee or charge is subject to reduction or repeal by initiative. Uncertainty exists as to the scope and impact of these developments on local government revenue streams. Future legislation and litigation may resolve some of these uncertainties. (29) Construction Commitments The following material construction commitments existed at June 30, 1998: Expenditures as of Remaining Project Name June 30, 1998 Commitments Utility Underground $ 27 306,972 4 Signal Project 503,343 301,397 Washington Storm Drain 23,760 397,690 Civic Center Campus 8,442 700,982 Miles/Washington St Widening 14,039 2,165,678 (30) Change in Accounting Principle During the year ended June 30, 1998, the City implemented GASB Statement No. 31 which requires that the City use fair values (instead of amortized cost) for financial reporting purposes, as described more fully in note 1 to the financial statements. The cumulative effect of applying this statement upon the beginning fund balances (or retained earnings) of each fund was not material, and accordingly, those balances have not been restated. 40 IDESCRIPTION OF FUNDS FUND TYPE - GENERAL FUND ■ GENERAL FUND - The primary fund of the City used to account for all revenue and expenditures of the City not legally restricted as to use. A broad range of municipal activities are provided through this fund including City Manager, City Attorney, Finance, City Clerk, Community Development, Police Services, Public Works, Building and Safety, and Community Services. 1 41 CITY OF LA QUINTA General Fund Schedule of Expenditures - Budget and Actual Year ended June 30, 1998 Variance - Favorable Bud et Actual (Unfavorable) General government: Legislative $ 948,688 659,854 288,834 City manager 129,851 150,146 (20,295) Economic development 679,350 663,730 15,620 Fiscal services 155,440 201,152 (45,712) Central services 500,461 389,251 111,210 City clerk 186,029 165,256 20,773 Total general government 2,599,819 2,229,389 370,430 Public safety: Police 2,714,377 2,605,741 108,636 Building and safety administration 139,378 128,932 10,446 Code compliance 307,043 262,141 44,902 Animal control 134,315 129,189 5,126 Building 240,403 237,598 2,805 Emergency services 13,800 7,343 6,457 Fire 19,000 8,931 10,069 Civic center building 728,232 719,648 8,584 Total public safety 4,296,548 4,099,523 197,025 Community services: Senior center 214,650 189,591 25,059 Parks and recreation administration 328,324 250,935 77,389 Parks and recreation programs 62,300 53,876 8,424 Total community services 605,274 494,402 110,872 Planning and development: Community development administration 198,674 122,063 76,611 Current planning 477,810 222,991 254,819 Total planning and development 676,484 345,054 331,430 Public works: Public works administration 112,112 125,126 (13,014) Development and traffic 413,045 497,549 (84,504) Maintenance/operations - St. 441,654 229,881 211,773 Interfund reimbursements 246,609 255,682 (9,073) Capital projects administration (70393) 51,134 121 527 Total public works 1,143,027 1,159,372 1( 6,345) Total expenditures 121LI 152 8,327,740 993,412 EA (This page intentionally left blank) 43 (This page intentionally left blank) 44 SPECIAL REVENUE FUNDS Special revenue funds are used to account for specific revenues (other than expendable trusts and major capital projects) and the related expenditures which are legally required to be accounted for in a separate fund. The City of La Quinta has the following twelve Special Revenue Funds: State Gas Tax Fund - To account for gasoline allocations made by the State of California. These revenues are restricted by the State to expenditures for street -related purposes only. Community Service Projects Fund - To account for the accumulation of resources for parks and other community services projects. Capital projects to be funded from this source will be budgeted and expended in a separate capital project fund. Federal Assistance Fund - To account for revenues from the Community Development Block 1 Grants received from the Federal Government and the expenditures of those resources. Intermodal Surface Transportation Efficiency Act (ISTEA) Fund - To account for revenues from AISTEA grants received from the Federal Government and the expenditures of those resources. Lighting and Landscape Special Assessment District 89-1 Fund - To account for special assessments levied on real property and the expenditure thereof from City-wide lighting and landscape maintenance and improvements. State Law Enforcement Block Grant (SLEBG) Fund - To account for state funded "Citizens for Public Safety" (COPS) program activities, as per Assembly Bill 3229, which supplements frontline police services such as anti -gang community crime prevention. Quimby Fund - To account for the accumulation of developer fees received under the provisions of the Quimby Act for park development and improvements. Capital projects to be funded from this source will be budgeted and expended in a separate capital projects fund. 1 Village Parking Fund - To account for the accumulation of resources provided through developer fees to facilitate parking and traffic flow in that area of the City known as "The Village". Capital projects funded from this source will be budgeted in a separate capital projects fund. South Coast Air Ouality Fund - To account for contributions from the South Coast Air Quality Management District. Use of such contributions is limited to reduction and control of airborne pollutants. Local Law Enforcement Block Grant (LLEBG) Fund - To account for Federal Bureau of Justice Block Grant program which may be used for the purpose of reducing crime and improving public safety. Urban Forestry Grant Fund - To account for State funds. Uses of such funds from the State Department of Forestry are limited to projects approved by the Grantor. Redevelopment Agency. Low and Moderate Income Housing P.A. No. 1 and No. 2 Funds - To account for the required 20% set aside of property tax increments that is legally restricted for increasing or improving housing for low and moderate income households. Redevelopment Agency. Low and Moderate Bond Fund P.A. No. 1 and No. 2 Funds - To account for bond proceeds and expenditures of bond -financed low and moderate income housing programs. 1 45 CITY OF LA QUINTA Special Revenue Funds Combining Balance Sheet June 30, 1998 Community Lighting State Service Federal and Village Gas Tax Projects Assistance ISTEA Landscape SLEBG Ouiraby Parkin¢ Assets Cash and investments $86,697 5,810 Cash with fiscal agent - - Accounts receivable Interest receivable - Notes receivable - Due from other funds - - Due from other governments - - Advances to other funds - - Property held for resale Total assets $86,697 55 810 Liabilities and Fund Balances Liabilities: Accounts payable $ - - Accrued expenses - - Deposits payable - - Contracts payable - - Due to other funds Total liabilities Fund balances: Reserved for: Bond projects Advances to other funds - Notes receivable - Property held for resale - - Unreserved: Designated for operations/ projects/transfers 86,697 5,810 Undesignated _ Total fund balances 86,697 55.810 Total liabilities and fund balances $86,697 5,810 270,128 12,810 182,436 27,115 270,128 12,810 182A36 27115 34,840 34,840 235,288 12,810 182,436 27,115 _ 235,288 12,810 182,436 27,115 270128 12,810 182,436 27,115 A[: Low/ Low/ Moderate Moderate Low/ Low/ Urban Income Income Moderate Moderate South Coast Forestry Housing- Housing- Bond- Bond- Totals Air Ouality LLEBG Grant PA No. 1 PA No. 2 PA No. 1 PA No. 2 1998 1997 62,919 10,218 3,029,624 1,703,827 - 571,188 5,962,772 6,363,933 - - - - 5,375,024 2,754,807 8,129,831 10,809,165 23,301 - - - 23,301 237,189 - - 34,626 - 34,626 24,091 2,420,750 - - - 2,420,750 2,452,283 - 62,192 - - - 62,192 - 5,450 - - - - 5,450 1,237 - 511,903 39,135 - - 551,038 551,038 _ 86,320 68,369 10,218 6,047,770 L742,962 5.409.650 3,325,995 17.189.960 20.525,256 15,106 4,185 5,657 30,040 54,988 10,929 - - - - - 34,000 14,426 49,266 49,238 - - - - 30,008 109,691 115,203 224,894 _ 29,532 4,185 115,348 145,243 329,148 124,175 - - 5,375,024 2,754,807 8,129,831 10,809,165 511,903 39,135 - - 551,038 551,038 2,420,750 - 2,420,750 2,452,283 - - 86,320 68,369 10,218 3,085,585 1,699,642 - 425,945 5,839,915 6,502,275 (80,722 (80,722) 68,369 10,218 6,018,238 1,738,777 5,294,302 3,180,752 16,860,812 20,401,081 68,369 10,218 6,047,770 1.742,962 5,409,650 3.325,995 17.189,960 20,525,256 47 CITY OF LA QUINTA Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30,1998 Community Lighting State Service Federal and Village Gas Tax Projects Assistance ISTEA Landscape SLEBG Quimby Parkins Revenues: Taxes $ - - Developer fees 167,586 Intergovernmental 354,644 - 334,732 410,034 43,636 - Investment income 3,080 25,100 - 5,501 6,370 610 3,352 1,098 Special assessments - - 809,041 - - Rental income - Loss on sale of land Miscellaneous Total revenues 357,724 25,100 334,732 415,535 815AII 44.246 170,938 1,098 Expenditures: Current: Public safety 33,388 Planning and development _ _ Public works 336,100 852,222 Total expenditures 336,100 852,222 33,388 Excess (deficiency) of revenues over (under) expenditures 21,624 25,100 334,732 415,535 (36,811 jqM 170,938 1,098 Other financing sources (uses): O f perating trans ers in Operating transfers out (563,383 (334,732 (415,535 Total other financing sources (uses) (563,383 (334,732 (415,535 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 21,624 (538,283) Fund balances at beginning of year 65,073 544,093 Fund balances at end of year 86,697 5,810 (36,811) 10,858 170,938 1,098 272,099 1.952 1IA98 26oW 235 288 12,810 182.436 27�115 48 Low/ Low/ Moderate Moderate Low/ Low/ Urban Income Income Moderate Moderate South Coast Forestry Housing- Housing- Bond- Bond- Totals Air Ouali LLEBG Grant PA No. 1 PA No. 2 PA No. 1 PA No. 2 1998 1997 - - - 2,432,379 821,468 3,253,847 2,971,135 11,127 - 178,713 2,137,288 25,055 28,474 3,944 - - - - 1,200,519 707,627 2,206 1,230 105,590 55,851 416,525 102,010 728,523 1,325,902 - - - - - - - 809,041 994,110 - 395,414 395,414 715,203 (22,678) _ (22,678) - 54,611 27,261 29,704 3,944 2,921,832 877,319 416,525 102,010 6,543,379 8,905,876 - - - - 33,388 41,219 1,795,539 247,158 456,081 231,095 2,729,873 2,128,288 1,188,322 1,207,930 1,795,539 247158 456,081 231,095 3,951,583 3,377,437 ' 27,261 29,704 3,,944 1,126,293 630,161 39556 129085 2,591,796 5,528,439 212,193 265,517 2,802,667 3,280,377 1,587,792 ' (39,020 (3,944 )(1,742,501) (339,341 3 016 305 2 957 681 (9,412,442) (4,267,568) e(39,020 (2,244) 1 530 308 (73,824 ) (3,016,305 16.305) 15_ ( 5.014) (6,132,065) 2 679 776 1 ' 27,261 (9,316) (404,015) 556,337 (3,055,861) (284,099) (3,540,269) 2,848,663 41,108 19,534 6,422,253 1,182,440 8,350,163 3,464,851 20,401,081 17,552,418 68,369 10,218 6,018,238 1,738.777 5.294,302 3,180,752 16,860.812 20,401,081 49 CITY OF LA QUINTA Special Revenue Funds State Gas Tax Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1998 Revenues: Intergovernmental Investment income Total revenues Expenditures: Current: Public works Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balances at beginning of year Fund balances at end of year Variance - Favorable 1997 Budget Actual (Unfavorable) Actual $334,200 354,644 20,444 334,527 1,900 3,080 1,180 3,358 336,100 357,724 21,624 337,885 336,100 336,100 336,100 336,100 - 21,624 65,073 65,073 65 073 86,697 306,942 306,942 21,624 30,943 34,130 21624 65,073 CITY OF LA QUINTA Special Revenue Funds Community Service Projects Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1998 ' Variance - Favorable 1997 Budget Actual (Unfavorable) Actual Revenues: Investment income 20,500 25,100 4,600 33,254 1 Total revenues 20,500 25,100 4,600 33,254 Excess (deficiency) of revenues over (under) expenditures 20,500 25,100 4,600 33,254 Other financing sources (uses): ' Operating transfers out 56( 9,192) 56( 3,383) 5,809 (90,690 ) Total other financing sources (uses) (569,192) 56( 3,383) 5,809 (90,690 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (548,692) (538,283) 10,409 (57,436) Fund balances (deficit) at beginning of year 544,093 544,093 - 60L529 Fund balances (deficit) at end of year (4,599 5,810 10,409 544,093 51 CITY OF LA QUINTA Special Revenue Funds Federal Assistance Fund , Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual ' Year ended June 30, 1998 Variance - Favorable 1997 Budget Actual (Unfavorable) Actual Revenues: ' Intergovernmental $338,532 334,732 (3,800) 30,000 Investment income - - - 212 Total revenues 338,532 334,732 3( ,800) 30,212 Excess (deficiency) of revenues , over (under) expenditures 338,532 334,732 (3,800 30,212 Other financing sources (uses): Operating transfers out (338,532 334 732 1800 (95,188 ) Total other financing sources (uses) 33( 8,532) (124,732) 3.800 ' 95 188 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses - - - (64,976) Fund balances at beginning of year - 64,976 ' Fund balances at end of year L- 1 52 1 CITY OF LA QUINTA Special Revenue Funds ISTEA Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1998 Revenues: Intergovernmental Investment income Total revenues Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year Variance - Favorable 1997 Budget Actual (Unfavorable) Actual $410,000 410,034 34 5,501 5,501 410,000 415,535 5,535 410,000 415,535 5,535 41( 0,000) (112,535) (5,535) 41( 0,000) 41f 5,535) 5( ,535) 53 CITY OF LA QUINTA Special Revenue Funds Lighting and Landscape Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1998 Revenues: Investment income Special assessments Total revenues Variance - Favorable 1997 Budget Actual (Unfavorable) Actual $ - 6,370 6,370 4,486 766,330 809,041 42,711 994,110 766,330 815,411 49,081 998,596 Expenditures: Current: Public works 908,307 852,222 Total expenditures 908,307 852,222 Excess (deficiency) of revenues over (under) expenditures (141,977 3( 6.811) Other financing sources (uses): Operating transfers out 149 001 - Total other financing sources (uses) 14( 9,001) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (290,978) (36,811) Fund balances (deficit) at beginning of year 272,099 272,099 Fund balances (deficit) at end of year SALa,879 235.288 54 56,085 900,988 56,085 900,988 105,166 9708 149,001 (533) 149,001 (533) 254,167 97,075 175,024 254,167 272.099 CITY OF LA QUINTA Special Revenue Funds SLEBG Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1998 Variance - Favorable 1997 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental $43,000 43,636 636 41,992 Investment income 610 610 1,179 Total revenues 43,000 44,246 1,246 43,171 Expenditures: Current: Public safety 43,000 33,388 9,612 41,219 Total expenditures 43,000 33,388 9,612 41,219 Excess (deficiency) of revenues over (under) expenditures - 10,858 10,858 1,952 Fund balances at beginning of year 1,952 1,952 - Fund balances at end of year $ 1,952 12,810 10,858 1952 55 CITY OF LA QUINTA ' Special Revenue Funds Quimby Fund ' Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1998 Variance- ' Favorable 1997 Budget Actual (Unfavorable) Actual Revenues: ' Developer fees $20,000 167,586 147,586 17,941 Investment income 4,300 3,352 (9481 2,673 Total revenues 24,300 170,938 146,638 20,614 Excess (deficiency) of revenues over (under) expenditures 24,300 170,938 146,638 20,614 Other financing sources (uses): Operating transfers out - ' (3.779) Total other financing sources (uses) - (3,779) t Excess (deficiency) of revenues and other financing sources ' over (under) expenditures and other financing uses 24,300 170,938 146,638 16,835 Fund balances at beginning of year 11,498 11,498 (5.337) ' Fund balances at end of year 35 798 182,436 146,638 11.498 ' 56 ' CITY OF LA QUINTA Special Revenue Funds Village Parking Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1998 Revenues: Investment income Total revenues Excess (deficiency) of revenues over (under) expenditures Fund balances at beginning of year Fund balances at end of year Variance - Favorable 1997 Budget Actual (Unfavorable) Actual 800 1,098 298 1,574 800 1098 298 1,574 800 1,098 298 1,574 26,017 26,017 - 24,443 26 817 27,115 298 26,017 57 CITY OF LA QUINTA Special Revenue Funds South Coast Air Quality Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1998 Revenues: Intergovernmental Investment income Total revenues Expenditures: Current: Planning and development Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balances at beginning of year Fund balances at end of year Variance - Favorable 1997 Budget Actual (Unfavorable) Actual $18,900 25,055 6,155 18,998 1.100 2,206 1,106 2,404 20,000 27,261 77.261 21,402 4,892 4,892 20,000 27,261 7,261 16,510 41,108 41,108 w 24,598 $61,108 68,369 7,261 41.108 58 CITY OF LA QUINTA Special Revenue Funds LLEBG Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1998 Variance - Favorable 1997 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental $ - 28,474 28,474 26,411 Investment income 1,230 1,230 1,172 Total revenues - 29,704 29,704 27,583 Excess (deficiency) of revenues over (under) expenditures 29,704 29,704 27,583 Other financing sources (uses): Operating transfers out (39,020 ) 3( 9,020) (8,049 Total other financing sources (uses) - (22,020) 39 020 (8,049) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses - (9,316) (9,316) 19,534 Fund balances at beginning of year 19,534 19,534 - Fund balances at end of year 119,534 10,218 (9,316) 19.534 59 CITY OF LA QUINTA Special Revenue Funds Urban Forestry Grant Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1998 Revenues: Intergovernmental Total revenues Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing (uses) Fund balances at beginning of year Fund balances at end of year Variance - Favorable 1997 Budget Actual (Unfavorable) Actual 5 182 3,944 1( •238) 255,699 5.182 3.944 1( .238) 255,699 5.182 3,944 1(, .238) 255,699 (5,182 3( .944) (5,182 3(, .9441 1238 25( 5.699) 1238 25( 5,699) 60 CITY OF LA QUINTA Special Revenue Funds Low/Moderate Income Housing Project Area No. 1 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1998 Variance - Favorable 1997 Budget Actual (Unfavorable) Actual Revenues: Taxes $2,417,637 2,432,379 14,742 2,268,971 Developer Fees - 11,127 11,127 2,119,347 Investment income 352,400 105,590 (246,810) 573,896 Rental income 341,000 395,414 54,414 436,436 Loss on sale of land 2( 2,78) (22,678 ) _ Total revenues 3,111,037 2,921,832 189 205 5,398,650 Expenditures: Current: Planning and development 1,897388 1,795,539 101,849 962,900 Total expenditures 1,897,388 1,795,539 101,849 962,900 Excess (deficiency) of revenues over (under) expenditures 1,213,649 1,126,293 (87,356 ) 4,435,750 Other financing sources (uses): Operating transfers in - 212,193 212,193 102,052 Operating transfers out (1,742,501) 1 742 501 1 567 542 Total other financing sources (uses) (1,742,501) 1 5( 30,308) 212,193 1 465 490 Excess (deficiency) of revenues ' and other financing sources over (under) expenditures and other financing uses (528,852) (404,015) 124,837 2,970,260 ' Fund balances at beginning of year 6,422,253 6,422,253 - 3,451,993 ' Fund balances at end of year ILE3 401 6,018,238 124,837 6,422,253 61 CITY OF LA QUINTA Special Revenue Funds Low/Moderate Income Housing Project Area No. 2 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1998 Variance - Favorable 1997 Budget Actual (Unfavorable) Actual Revenues: Taxes $ 809,400 821,468 12,068 702,164 Investment income 25,150 55,851 30,701 68,802 Total revenues 834,550 877,319 42,769 770,966 Expenditures: Current: Planning and development 542,440 247,158 295,282 312,702 Total expenditures 542,440 247,158 295,282 312,702 Excess (deficiency) of revenues over (under) expenditures 292,110 630,161 338,051 458,264 Other financing sources (uses): Operating transfers in - 265,517 265,517 - Operating transfers out (339,340 ) 33( 9,341) (11 27( 3.700) Total other financing sources (uses) (339,340 ) 7( 3,824) 265,516 27( 3,700) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (47,230) 556,337 603,567 184,564 Fund balances at beginning of year 1,182,440 1,182,440 997,876 Fund balances at end of year 1 135 210 1,738,777 603,567 1,182,440 62 CITY OF LA QUINTA Special Revenue Funds Low/Moderate Bond - Project Area No. 1 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1998 Revenues: Investment income Rental income Miscellaneous Total revenues Expenditures: Current: Planning and development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year Variance - Favorable 1997 Budget Actual (Unfavorable) Actual $ 180,000 416,525 236,525 506,845 - - - 278,767 54,611 180,000 416,525 236,525 840,223 4,731,540 456,081 4,275,459 676,251 4,731,540 456,081 4,275,459 676,251 (4,551,5401 (39,556 4,511,984 163,972 - 43,313 (2,822,336) 3 016 305 (193,969 (1,544,4791 (2,822336) 3 016 305) (193,969 1 Sf 01,166) (7,373,876) (3,055,861) 4,318,015 (1,337,194) 8,350,163 8,350,163 9,687,357 $ 976,287 5,294,302 4318,015 8,350,163 63 CITY OF LA QUINTA Special Revenue Funds Low/Moderate Bond - Project Area No. 2 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1998 Revenues: Investment income Total revenues Expenditures: Current: Planning and development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing (uses) Fund balances at beginning of year Fund balances at end of year Variance - Favorable Budget Actual (Unfavorable) 42,200 102,010 59,810 42,200 102,010 59,810 210,812 231,095 2( 0,283) 210,812 231,095 (20,283 1997 Actual 126,047 126,047 171,543 171,543 (168,612) (129,085 39,527 (45,496 ) 1 2,822,336 2,802,667 (19,669) (4,561,832) 2 957 681 1,604,151 (1,739,496) 15( 5,0141 1,584,482 (1,908,108) (284,099) 1,624,009 3,464,851 3,464,851 1 556 743 3,180,752 1,624,009 1,442,427 42( 7,909) 1,014,518 969,022 2,495,829 3,464,851 M DEBT SERVICE FUNDS 1 Debt Service Funds are used to account for the accumulation of resources for, and the payment 1 of, general long-term debt principal and interest. The City of La Quinta has three Debt Service Funds: 1 La Ouinta Financing Authority Fund - To account for rental activity for the Civic Center and rental income used to pay the Financing Authority Civic Center debt obligation. Redevelopment Agency, P.A. No. 1 and No. 2 - To account for the accumulation of resources for the payment of debt service for bond principal interest and trustee fees. 65 CITY OF LA QUINTA Debt Service Funds Combining Balance Sheet June 30, 1998 Financing Redevelopment Redevelopment Totals ■ Authori Agency -PA No. 1 Agency -PA No. 2 1998 1997 Assets Cash and investments $ - 3,389,702 1,882,870 5,272,572 4,680,466 Cash with fiscal agent - 52,385 21,850 74,235 ' 524,613 Accounts receivable - I I - 11 - Prepaid expenses - - _ 276,546 Due from other governments - 4,950 ' Total assets $ 3,442,098 1,904,720 5,346.818 5,486,575 Liabilities and Fund Balance ' Liabilities: , Accounts payable $ 4,340 - 4,340 - Accrued expenses 149,224 355,507 504,731 914,073 Due to other funds - - 1,470 Advances from other funds 511,903 39,135 551,038 ' 551,038 Total liabilities 665,467 394,642 1,060,109 1,466,581 Fund balances: ' Reserved for: Bond reserve requirement ' 512,231 Prepaid expenses - - - 276,546 Designated for debt service 2,776,631 1,510,078 4,286,709 3,232,687 Unreserved: Undesignated 1470 Total fund balances 2,776,631 1,510,078 4,286,709 ' 4,019,994 Total liabilities and fund balances 3,442,098 1,904,720 5,346.818 5,486.575 , 66 ' CITY OF LA QUINTA Debt Service Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 1998 Financing Redevelopment Redevelopment Totals Authori Agency -PA No. 1 Agency -PA No. 2 1998 1997 Revenues: Taxes $ _ 9,729,515 3,285,872 13,015,387 11,884,541 Intergovernmental 4,614 Investment income - 29,829 80,789 110,618 168,191 Rental income 734,623 734,623 584,468 Total revenues 734,623 9,759,344 3,366,661 13,860,628 12,641,814 Expenditures: Current: Planning and development 6,427 152,565 50,596 209,588 151,741 Debt service: Principal 285,000 1,482,979 192,021 1,960,000 1,465,000 Interest 449,623 3,496,109 1,088,437 5,034,169 4,888,090 Payments under pass - through obligations - 6,251,259 3,003,961 9,255,220 7,505,062 Total expenditures 741,050 11,382,912 4,335,015 16,458,977 14,009,893 Excess (deficiency) of revenues over (under) expenditures 6427 (1,623,568) 968354 (2,598,349) (1,368,079) Other financing sources (uses): Operating transfers in 7,897 1,796,304 1,161,578 2,965,779 1,772,776 Operating transfers out (368,565) (542,156) (910,721) (739,704) Proceeds of refunding bonds (net of issuance costs) 8,500,101 Payments to refunded bond escrow agent - - - (8,488,199) Proceeds of advances from City 364,985 445,021 810,006 604,895 1 Total other financing sources (uses) 7,897 1,792,724 1,064,443 2,865,064 1,649,869 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 1,470 169,156 96,089 266,715 281,790 Fund balances at beginning of year (1,470) 2,607,475 1,413,989 4,019,994 3,738,204 B Fund balances at end of year $ 2,776.631 1,510,078 4,286,709 4,019,994 67 CITY OF LA QUINTA Debt Service Funds Financing Authority Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1998 Variance - Favorable 1997 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental $ - - - 4,614 Investment income 30,000 - (30,000) 36,209 Rental income 697,600 734,623 37,023 584,468 Miscellaneous 5,600 (5.60 - Total revenues 37 3,200 734,623 1,423 625,291 Expenditures: Current: Planning and development 5,600 6,427 (827) 4,615 Debt service: Principal 285,000 285,000 - 170,000 Interest 449,623 449,623 437,950 Total expenditures 740,223 741.050 (827) 612,565 Excess (deficiency) of revenues over expenditures (7.023) (6.427) 596 12,726 Other financing sources (uses): Operating transfers in - 7,897 7,897 - Operating transfers out - - - (739,704) Proceeds of refunding bonds (net of discount and issuance costs) - - - 8,500,101 Payments to refunded bond escrow agent - - (8,488.199) Total other financing sources (uses) 7,897 7_,897 (727,802 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other uses (7,023) 1,470 8,493 (715,076) Fund balances (deficit) at beginning of year (1.47 (1,470) - 713,606 Fund balances (deficit) at end of year 8 493 8,493 1 470 68 CITY OF LA QUINTA Debt Service Funds Redevelopment Agency Project Area No. 1 Fund Statement of Revenues, Expenditures and Changes 1 in Fund Balances - Budget and Actual Year ended June 30, 1998 Variance - Favorable 1997 Budget Actual (Unfavorable) Actual Revenues: Taxes $ 9,670,547 9,729,515 58,968 9,075,885 Investment income 29,829 29,829 54,389 Total revenues 9,670,547 9,759,344 88,797 9,130,274 Expenditures: Current: Planning and development 189,717 152,565 37,152 109,725 Debt service: Principal 1,482,979 1,482,979 - 1,175,000 Interest 3,493,608 3,496,109 (2,501) 3,427,787 Payments under pass -through obligations 6,202,921 6,251,259 (48,338 ) 5,641,121 Total expenditures 11,369,225 11,382,912 (13,687 10,353,633 Excess (deficiency) of revenues over (under) expenditures (1,698,678) _(1,623,568) 75,110 (1,223,359) Other financing sources (uses): Operating transfers in Operating transfers out Proceeds of advances from City Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year 2,607,475 2,607,475 - Fund balances at end of year $ 2,803,271 2,776,631 26.640 1,794,859 1,796,304 1,445 1,499,076 (265,370) (368,565) (103,195) - 364,985 364,985 234,044 1,894,474 1,792,724 101 750 1,733,120 195,796 169,156 26,640 509,761 2,097,714 2,607,475 69 CITY OF LA QUINTA Debt Service Funds Redevelopment Agency Project Area No. 2 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1998 Revenues: Taxes Investment income Total revenues Expenditures: Current: Planning and development Debt service: Principal Interest Payments under pass -through obligations Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Proceeds of advances from City Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year Variance - Favorable Budget Actual (Unfavorable) 1997 , Actual $3,237,600 3,285,872 48,272 2,808,656 80389 80,789 77,593 ' 3,237,600 3,366,661 129,061 2,886,249 58,788 50,596 8,192 37,401 192,021 192,021 - 120,000 1,090,938 1,088,437 2,501 1,022,353 2,233,742 3,003,961 770 219 1,863,941 ' 3,575,489 4335,015 75( 9,526) 3,043,695 (337,889 (968,35 41 630 465 (157,446 1,161,190 1,161,578 388 273,700 (1,545,225) (542,156) 1,003,069 - 445,021 445,021 - 370,851 60,986 1,064,443 1,003,457 644,551 (276,903) 96,089 372,992 487,105 1,413,989 1,413,989 - 926,884 1 137 086 1,510,078 372.992 1,413.989 70 CAPITAL PROJECTS FUNDS Capital projects funds account for the financial resources to be used for the acquisition, 1 construction or improvements of major capital facilities and infrastructure. The City of La Quinta has five Capital Projects Funds: Infrastructure Fund - To account for the accumulation of resources provided through developer fees for the acquisition, construction or improvement of the City's infrastructure as defined in Resolution 98-39. Capital projects to be funded from this source will be budgeted and expended in a separate capital projects fund. Capital Improvement Fund - To account for the planning, design and construction of various ecapital projects throughout the City of La Quinta and the Redevelopment Agency. Financing Authority Capital Projects Fund - To account for the Public Financing Authority bond proceeds that will be used for specific projects and programs of the City. Redevelopment Agency, Capital Projects Funds Area 1 and 2 - To account for the bond proceeds, interest and other funding that will be used for development, planning, construction and land acquisition. 71 CITY OF LA QUINTA Capital Projects Funds Combining Balance Sheet June 30, 1998 Assets Cash and investments Cash with fiscal agent Accounts receivable Interest receivable Notes receivable Due from other funds Total assets Liabilities and Fund Balances Liabilities: Accounts payable Deposits payable Retentions payable Due to other funds Total liabilities Fund balances: Reserved for: Bond projects Notes receivable Unreserved: Designated for operations/projects Undesignated Total fund balances Total liabilities and fund balances Financing Capital Authority Infrastructure Improvement Projects $5,732,771 677,400 - - 601,119 306,361 5 732 771 983 761 601.119 $ - 350,594 - - 373,635 - - 259,532 - 92 029 11,815 92,029 983,761 11,815 - 601,119 5,640,742 - - 5,640,742 - 589,304 5 732 771 983.761 601.119 72 Redevelopment Redevelopment Totals Agency -PA No. 1 Agency -PA No. 2 1998 1997 8,045 1,436,781 7,854,997 5,527,892 7,1.70,042 708,782 8,479,943 1,467,662 - 81,258 81,258 498,468 142,956 - 142,956 8,426 - 108,217 108,217 99,791 - 306,361 1,470 7,321,043 2.335.038 16,973,732 7,603,709 15,367 13,199 379,160 351,459 - - 373,635 136,926 259,532 17,390 103,844 17.487 15,367 13,199 1,116,171 523,262 7,170,042 708,782 8,479,943 1,467,662 - 108,217 108,217 99,791 135,634 1,504,840 7,281,216 5,512,994 (11,815)- 7,305,676 2,321,839 15,857,561 7,080,447 7,321,043 2,335,038 16,973,732 7,603,709 VAI CITY OF LA QUINTA Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 1998 ' Capital Financing , Infrastructure Improvement Authority Revenues: Developer fees $2,429,742 532,050 ' - Intergovernmental - 1,167,522 - Investment income 224,923 - 27,277 Litigation settlement proceeds - -' Total revenues 2,654,665 1,699,572 27,277 Expenditures: Current: Planning and development - Capital projects 220,379 7,368,554 - Debt service: Interest Total expenditures 220,379 7,368,554 - Excess (deficiency) of revenues over (under) expenditures 2,434,286 5 668 982 ' 27,277 Other financing sources (uses): Operating transfers in - 5,668,982 - Operating transfers out (1,341,883) - (176,207) Proceeds of bonds (net of issuance costs) Payments to refunded bond escrow agent Proceeds of advances from City - - ' Total other financing sources (uses) (1,341,8831 5,668,982 17( 6,207) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 1,092,403 - (148,930) Fund balances at beginning of year 4,548,339 - 738,234 Fund balances at end of year 116LO 742 589.304 ' 1 74 ' Redevelopment Redevelopment Totals Agency -PA No. 1 Agency -PA No. 2 1998 1997 - 2,961,792 1,752,975 - 1,167,522 656,237 42,161 246,276 540,637 405,151 204 204 29,991 42,365 246,276 4,670,155 2,844,354 370,024 281,808 651,832 1,171,440 7,588,933 5,318,680 - 33,410 370,024 281,808 8,240,765 6,523,530 (327,659) (35,532 l3,570.610) 3 67(, 9,176) 368,565 542,156 6,579,703 5,059,925 (52,358) (796,280) (2,366,728) (3,424,016) 1 15,134,466 6,431,222 21,565,688 - (7,822,592) (5,608,347) (13,430,939) - ' - - 841,320 7,628,081 568,751 12,347,724 2,477,229 7,300,422 533,219 8,777,114 (1,201,947) 5,254 1,788,620 7,080,447 8,282,394 ' 7,305.676 2,321,839 15.857.561 7.080.447 75 CITY OF LA QUINTA Capital Projects Funds Infrastructure Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1998 Revenues: Developer fees Investment income Total revenues Expenditures: Capital projects Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year Variance - Favorable Budget Actual (Unfavorable) $1,500,000 2,429,742 929,742 144,000 224,923 80,923 1,644,000 2,654,665 1,010,665 1997 Actual 1,552,373 253,164 1,805,537 220,380 220379 1 305,713 220,380 220379 1 305,713 1,423,620 2,434,286 1,010,666 1,499,824 - 64,975 (3,231,069) 1 3(, 41,883) 1,889,186 1 222 678 (3,231,069) 1 3(, 41,8831 1,889,186 1 157 703 (1,807,449) 1,092,403 4,548,339 4,548,339 2 740 890 5,640,742 2,899,852 342,121 4,206,218 2,899.852 4 ,548 339 76 CITY OF LA QUINTA Capital Projects Funds Capital Improvement Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1998 Revenues: Developer fees Intergovernmental Total revenues Expenditures: Capital projects Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year Variance - Favorable 1997 Budget Actual (Unfavorable) Actual $ 752,314 532,050 (220,264) 100,874 1,996,213 1,167,522 82( 8,691) 655,377 2,748,527 1,699,572 1 0(, 48,9551 756,251 13,404,462 7,368,554 13,404,462 7,368,554 6,035,908 5,012,967 6,035,908 5,012,967 -C10,655935) 5 668 982 4,986,953 (4256,716) 10,655,935 5,668,982 10,655,935 5,668,982 77 4 9( 8_ 6,953) 4,256,716 (41M,953) 4,256,716 CITY OF LA QUINTA Capital Project Funds Financing Authority Capital Projects Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1998 Variance - Favorable 1997 Budget Actual (Unfavorable) Actual Revenues: Investment income $ 27,277 27,277 Total revenues 27,277 27,277 Excess (deficiency) of revenues over (under) expenditures - 27,277 27,277 Other financing sources (uses): Operating transfers in - - - 738,234 Operating transfers out (745.20 17( 6.2071 569,002 - Total other financing sources (uses) (745,209 (176,207 569,002 738,234 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (745,209) (148,930) 596,279 738,234 Fund balances (deficit) at beginning of year 738,234 738,234 - - Fund balances (deficit) at end of year 6 975 589,304 596,279 738.234 78 CITY OF LA QUINTA Capital Projects Funds Redevelopment Agency Project Area No. I Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1998 Variance - Favorable 1997 Budget Actual (Unfavorable) Actual Revenues: Investment income $ 52,808 42,161 (10,647) - Litigation settlement proceeds 204 204 29,991 Total revenues 52,808 42,365 (10,443 ) 29,991 Expenditures: Current: Planning and development 362,700 370,024 (7,324) 812,121 Debt service: Interest 33,410 Total expenditures 362,700 370,024 7 324 845,531 Excess (deficiency) of revenues over (under) expenditures (309,892) 327 659 1( 7.7671 815 540 Other financing sources (uses): Operating transfers in 265,370 368,565 103,195 - Operating transfers out (126,068) (52,358) 73,710 - Proceeds of bonds (net of issuance costs) 15,134,466 15,134,466 - Payments to refunded bond escrow agent (7,822,592) (7,822,592) - - Proceeds of advances from City - 841,320 Total other financing sources (uses) 7,451,176 7,628,081 176,905 841320 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 7,141,284 7,300,422 159,138 25,780 Fund balances (deficit) at beginning of year 5,254 5,254 - (20,526 Fund balances at end of year $ 7,146,538 7305,676 159,138 5.254 79 CITY OF LA QUINTA Capital Projects Funds Redevelopment Agency Project Area No. 2 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1998 Revenues: Developer fees Intergovernmental Investment income Total revenues Expenditures: Current: Planning and development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Proceeds of bonds (net of issuance cost) Payments to refunded bond escrow agent Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year Variance - Favorable 1997 Budget Actual (Unfavorable) Actual $ - - - 99,728 - - - 860 48,400 246,276 197,876 151,987 48,400 246,276 197,876 252,575 2,011,937 281,808 1,730,129 359.31.9 2,011,937 281,808 1,730,129 359,319 (1,963,5371 3( 5.532) 1,928,005 (106,744) 1,545,225 542,156 (1,003,069) - (950,820) (796,280) 154,540 (2,201,338) 6,431,222 6,431,222 - - (5,608,3471 5 608 347 1,417,280 568,751 848 529 2 201 338) (546,257) 533,219 1,079,476 (2,308,082) 1,788,620 1,788,620 - 4,096,702 1 242 363 2,321,839 1,079,476 1.788,620 80 AGENCYFUNDS Agency funds are used to account for assets held by the City as an agent for an individual, private organizations and other governmental units. The agency funds and their purposes are as follows: The City of La Quints. has the following agency funds: Arts in Public Places Fund - To account for development fees paid in lieu of acquisition and installation of approved art works in a development with expenditures restricted to acquisition, installation, maintenance and repair of art works at approved sites. The development fees are refundable if not expended within two years. La Ouinta Public Safety Officer Fund - To account for contributions to be distributed to public safety officers disabled or killed in the line of duty. Deferred Compensation Fund - To account for deposits held by the City and monies held on behalf of employees under the City's deferred compensation plan. Service Assessment District No. 88-1, 89-2, 90-1. 91-1, 92-1 - To account for assessments to the City for debt service payments on bond issues used to finance sewer improvements. Bond Reserve Assessment District No. 88-1, 89-2, 90-I 91-1 92-1 - To account for the bond reserves for each bond issue on these assessment districts. 81 CITY OF LA QUINTA Agency Funds Combining Balance Sheet June 30, 1998 Public Assessment Arts in Safety Deferred District Public Places Officer Compensation No. 88-1 Assets Cash and investments $393,534 4,168 - 171,523 Accounts receivable Total assets $393,534 4,168 171,523 Liabilities Liabilities: Accounts payable $ 2,500 - - - Deferred compensation payable - - - - Deposits payable 391,034 4,168 - - Due to bondholders 171,523 Total liabilities $393,534 4,168 171,523 82 Assessment Assessment Assessment Assessment District District District District Totals No.89-2 No.90-1 No.91-1 No.92-1 1998 1997 201,485 _ 232,727 438,151 337,357 1,778,945 2,434,724 266 266 201,751 232,727 438,151 337,357 1,779,211 2,434,724 - - - - 2,500 - - - - - 751,836 - - - 395,202 289,856 201,751 232,727 438,151 337357 1,381,509 1,393,032 201,751 232,727 438,151 337357 1,779,211 2,434,724 1391 CITY OF LA QUINTA Agency Funds Combining Statement of Changes in Assets and Liabilities Year ended June 30, 1998 Balance at Balance at July 1, 1997 Additions Deletions June 30, 1998 ARTS IN PUBLIC PLACES Assets Cash and investments 129Z 786 139318 33,570 393,534 Total assets JZR 786 139,318 33,570 393.534 Liabilities Accounts payable $ - 24,706 22,206 2,500 Deposits payable 287,786 164,914 61,666 391,034 287 786 189,620 83,872 393.534 PUBLIC SAFETY OFFICER Assets Cash and investments 2 070 2,098 - 4.168 Liabilities Deposits payable 2 070 2,098 4.168 DEFERRED COMPENSATION Assets Cash and investments 12a 836 - 751,836 Liabilities Deferred compensation payable 751 836 751,836 84 CITY OF LA QUINTA Agency Funds Combining Statement of Changes in Assets and Liabilities (Continued) ASSESSMENT DISTRICT NO.88-1 Assets Cash and investments Total assets Liabilities Due to bondholders ASSESSMENT DISTRICT NO.89-2 Assets Cash and investments Accounts receivable Total assets Liabilities Due to bondholders ASSESSMENT DISTRICT NO.90-1 Assets Cash and investments Total assets Liabilities Due to bondholders Balance at Balance at July 1, 1997 Additions Deletions June 30, 1998 171 083 129,261 128,821 171.523 JjZL&83 129,261 128,821 171,523 171 083 129,261 128,821 171,523 $222,561 170,956 192,032 201,485 266 266 222 561 171,222 192,032 201.751 222 561 171,222 192,032 201,751 239 467 168.175 174,915 232,727 1219,467 168.175 174,915 232,727 239467 168,175 174,915 232,727 85 (Continued) CITY OF LA QUINTA Agency Funds Combining Statement of Changes in Assets and Liabilities (Continued) ASSESSMENT DISTRICT NO. 91-1 Assets Cash and investments Total assets Liabilities Due to bondholders ASSESSMENT DISTRICT NO.92-1 Assets Cash and investments Total assets Liabilities Due to bondholders TOTALS -ALL AGENCY FUNDS Assets Cash and investments Accounts receivable Total assets Liabilities Accounts payable Deposits payable Deferred compensation payable Due to bondholders Total liabilities Balance at Balance at July 1, 1997 Additions Deletions June 30, 1998 423 629 327.622 313.100 438.151 423 629 327.622 313.100 438.151 423,629 327.622 313.100 438.151 336 292 229.478 228.413 337,357 336 292 229.478 228.413 337,357 336 292 229,478 228.413 337.357 $2,434,724 1,166,908 1,822,687 1,778,945 266 266 2 434 724 1.167,174 1,822,687 1.779,211 $ - 24,706 22,206 2,500 289,856 167,012 61,666 395,202 751,836 - 751,836 - 1,393,032 1 025,758 1.037.281 1.381.509 2 434 724 1,217.476 1,872,989 1.779,211 86 IGENERAL FIXED ASSETS ACCOUNT GROUP 1 87 CITY OF LA QUINTA Comparative Schedule of General Fixed Assets - By Source June 30, 1998 1998 1997 General fixed assets: Land $13,280,910 13,280,910 Buildings 11,790,129 11,795,694 Leasehold improvements 201,070 201,070 Furniture and fixtures 1,014,292 948,514 Vehicles . 161,052 224357 Total general fixed assets $26,447,453 26,450,545 Investments in general fixed assets from: General Fund $15,008,708 15,011,800 Redevelopment Agency 11,438,745 11,438,745 126,447,453 26 450,545 88 CITY OF LA QUINTA Schedule of General Fixed Assets - By Function and Activity June 30, 1998 Function and Activity General Government Legislative City Manager Finance City Clerk Community Services Building and Safety Community Development Public Works Total Furniture Leasehold and Land Buildings Improvements Fixtures $13,280,910 11,790,129 - - 20 484 $13,280,910 11,790,129 147,896 108,351 - 187,183 201,070 91,204 - 127,979 106,567 224,628 201,070 1,014,292 Vehicles Total - 25,071,039 - 20,484 - 147,896 - 108,351 - 187,183 - 292,274 161,052 289,031 - 106,567 224,628 161,052 26 447,453 89 CITY OF LA QUINTA Schedule of Changes in General Fixed Assets - By Function and Activity June 30, 1998 Beginning Function and Activity Balance Additions Retirements General Government $25,071,039 - - Legislative 17,057 3,427 City Manager 139,407 40,181 (31,692) Finance 114,692 14,996 (21,337) City Clerk 190,262 3,971 (7,050) Community Services 293,150 8,891 (9,767) Building and Safety 284,701 4,330 Community Development 97,258 40,968 (31,659) Public Works 242,979 55331 (1,376 Totals $26,450,545 172,095 (102,881 Transfer to Proprietary Ending Funds Balance - 25,071,039 - 20,484 - 147,896 - 108,351 - 187,183 - 292,274 - 289,031 - 106,567 (72,306 1 224,628 7( 2,3061 26,447.453 90 STATISTICAL SECTION 91 CITY OF LA QUINTA TABLE I General Fund Expenditures by Function Last Ten Fiscal Years Fiscal Year Ending General Public Public Community Planning & Capital June 30 Government Safety Works Service Development Projects Total 1989 1,040,895 1,491,594 (1) 701,175 (1) 3,233,663 1990 1,514,110 1,883,105 (1) 928,798 (1) 4,326,012 1991 1,968,275 2,501,105 (1) 777,366 (1) - 5,246,745 1992 1,921,155 2,155,813 618,612 157,897 904,171 11,813 5,769,461 1993 1,807,205 2,393,202 600,253 146,686 884,537 - 5,831,883 1994 2,359,673 2,786,575 673,144 119,265 511,416 - 6,450,073 1995 1,565,265 3,143,697 576,304 199,115 538,610 282,113 6,305,104 1996 1,793,301 3,227,438 813,352 413,142 453,656 201,475 6,902,364 1997 2,376,935 3,442,056 889,694 469,110 455,563 170,000 7,803,358 1998 $2,229,389 4,099,523 1,159,372 494,402 345,054 - $8,327,740 (1) Prior to fiscal year 1992 Public Works and Planning & Development expenditures were included with Community Service. Source: City of La Quints, Audited Financial Statements 92 CITY OF LA QUINTA General Fund Revenue by Source Last Ten Fiscal Years TABLE 2 Fiscal Year Licenses Charges Litigation Ending and Inter- for Settlement June 30 Taxes Permits Governmental Services Proceeds Interest Miscellaneous Total 1989 2,306,887 3,656,307 496,621 (1) (2) 368,136 336,445 7,164,396 1990 3,154,942 3,286,872 630,791 (1) (2) 155,530 114,686 7,342,821 1991 3,288,565 785,381 790,880 602,600 (2) 642,813 101,411 6,211,650 1992 3,135,044 576,293 930,503 488,015 (2) 261,390 120,867 5,512,102 1993 3,581,830 622,107 1,157,587 384,000 (2) 238,321 219,641 6,203,486 1994 4,212,604 777,241 1,600,032 469,695 (2) 585,264 1,042,872 8,687,708 1995 4,946,304 902,914 747,794 551,727 477,872 718,310 137,028 8,481,939 1996 5,393,456 998,030 815,980 610,873 12,386 905,420 230,705 8,966,850 1997 $5,942,698 793,689 1,072,803 976,897 40,593 941,327 22,712 9,790,719 1998 6,764,355 1,144,562 1,110,553 1,228,269 281,382 1,164,145 114,969 511,808,235 (1) Previously included in Licenses and Permits (2) 1995 was the first year Litigation Settlement Proceeds was identified as a revenue source Source: City of La Quinta Audited Financial Statements 93 CITY OF LA QUINTA TABLE 3 Property Tax Levies and Collections Last Eight Fiscal Years Percent of Fiscal Year Total Current Percent Delinquent Total Ending Tax Tax of Levy Tax Collections June 30 Levy Collection Collected Collections to Tax Levy 1991 $280,339 256,297 91.4% 21,921 99.2% 1992 282,201 260,365 92.3% 25,703 101.4% 1993 282,630 244,731 86.6% 14,824 91.8% 1994 288,407 275,752 95.6% 900 95.9% 1995 549,273 487,043 88.7% 786 88.8% 1996 670,398 643,309 96.0% 2,312 96.3% 1997 824,073 760,350 92.3% 0 92.3% 1998 $886,175 980,838 110.7% 0 110.7% Note: 1. Proposition 13 limits cities to levying a tax rate for bonded indebtedness only after 1978. 2. Levies and collections are for General Fund only excluding supplemental property taxes. 3. Detail prior to fiscal year 1991 not available. Source: City of La Quints and County of Riverside 94 CITY OF LA QUINTA TABLE 4 Schedule of Net Taxable Value Last Eight Fiscal Years Fiscal Year Assessed Less Less Net Ending Secured Unsecured Property Property Homeowner's Taxable June 30 Property Property Value Exemptions Exemptions Value 1991 $1,278,307,230 7,156,844 1,285,464,074 3,474,595 (1) 1,281,989,479 1992 1,594,767,374 6,396,816 1,601,164,190 3,605,829 (1) 1,597,558,361 1993 1,773,323,102 6,943,559 1,780,266,661 3,814,434 (1) 1,776,452,227 1994 1,872,768,156 8,119,527 1,880,887,683 3,946,378 18,901,202 1,858,040,103 1995 1,927,834,908 22,822,285 1,950,657,193 4,357,954 20,518,400 1,925,780,839 1996 2,043,276,054 23,801,872 2,067,077,926 6,936,774 22,399,068 2,037,742,084 1997 2,164,204,951 22,511,720 2,186,716,671 6,919,376 22,407,418 2,157,389,877 1998 $2,305,593,987 18,844,880 2,324,438,867 9,676,787 24,877,018 2,289,885,062 Note: Detail prior to fiscal year 1991 not available (1) Homeowner's exemption not available Source: County of Riverside 95 General Desert Saads Unified College of the Desert Coachella Valley Water District Total Tax Rate Source: County of Riverside CITY OF LA QUINTA Property Tax Rates - Direct and Overlapping Goverameats Last Five Fiscal Years (per $100 of Assessed Value) 1997/98 1996/97 1995/96 1994/95 1993/94 1.00000 1.00000 1.00000 1.00000 1.00000 0.09750 0.09750 0.09750 0.09750 0.09750 0.00000 0.00000 0.00000 0.00000 0.00000 0.02080 0.02080 0.02080 0.02080 0.02080 1.11830 1.11830 1.11830 1.11830 1.11830 TABLE 5 96 CITY OF LA QUINTA Special Assessment Billings and Collections Last Eight Fiscal Years Year Special Special Ratio of Ended Assessment Assessment Collections June 30 Billings Collections (1) to Billings 1991 $355,924 335,177 94.1 1992 557,574 552,249 99.0 1993 559,029 548,291 98.1 1994 766,011 734,560 95.9 1995 836,502 737,700 88.2 1996 729,647 699,351 95.9 1997 791,012 757,256 - 95.7 1998 $791,012 761,109 96.2 (1) Includes Prepayments and Foreclosures Source: Muni Financial Services TABLE 6 97 Source: CITY OF LA QUINTA Schedule of Direct and Overlapping Bonded Debt June30, 1998 Direct and Overlapping Bonded Debt Riverside County General Fund Obligations Riverside County Board of Education Certificates of Participation Desert Community College District Certificates of Participation Desert Sands Unified School District Certificates of Participation Desert Sands Unified School District Lease Tax Obligation Coachella Valley County Water District, I.D. #71 Storm Water Unit Certificates of Participation Coachella Valley County Water District, I.D. #55 Coachella Valley County Water District, I.D. #58 Coachella Valley Unified School District City of La Quints, Certificates of Participation City of La Quinta 1915 Act Bonds Total Direct and Overlapping Bonded Debt TABLE 7 Percent June 30, 1998 Applicable (1) Bonded Debt 1.022 $5,901,318 1.022 202,633 3.866 93,403 9.176 2,478,983 9.176 7,995,457 6.410 990,025 69.767 8,281,343 1.939 175,867 4.827 482,700 100.000 8,505,000 (2) 100.000 4.525.000 $39,631,729 (3) Based on 1996-97 ratios. Excludes tax allocation bonds to be sold. Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and nonbonded capital lease obligations. California Municipal Statistics, Inc. 98 CITY OF LA QUINTA Computation of Legal Debt Margin June 30, 1998 Assessed Valuation Debt Limit - 15 % of Assessed Valuation Amount of Debt Applicable to Debt Limit Legal Debt Margin $2324.438.867 348,665,830 $348,665,830 Notes: Section 43605 of the Government Code of the State of California limits the amount of indebtedness for public improvements to 15% of the assessed valuation of all real and personal property of the City. The City of La Quints has no general bonded indebtedness. Source: City of La Quints TABLE 8 99 CITY OF LA QUINTA Revenue Bond Coverage Local Agency Revenue Bonds (City Hall Project) Last Seven Fiscal Years Fiscal Year Debt Service Requirements Ending Revenue Available June 30 for Debt Service Principal Interest Total Coverage 1992 $182,784 0 182,784 182,784 1.00 1993 548,352 0 548,352 548,352 1.00 1994 548,352 0 548,352 548,352 1.00 1995 699,477 155,000 544,477 699,477 1.00 1996 696,402 160,000 536,402 696,402 1.00 1997 607,950 170,000 437,950 607,950 1.00 1998 $734,623 285,000 449,623 734,623 1.00 Note: Revenue available consists of lease payments made by the City of La Quinta to the La Quinta Financing Authority. Source: City of La Quinta I 100 CITY OF LA QUINTA TABLE 10 Demographic Statistics Last Ten Fiscal Years Total City Fiscal Year Population Riverside Population Ending Square Percent County Percent June 30 Miles (1) Population (2) Change Population (2) Of County 1989- 23.2 10,267 10.7% 1,057,200 1.0% 1990 23.3 10,587 3.1% 1,144,400 0.9% 1991 23.8 13,070 23.5% 1,225,800 1.1% 1992 28.0 14,727 12.7% 1,281,000 1.1% 1993 28.2 15,589 5.9% 1,323,500 1.2% 1994 28.2 16,680 7.0% 1,357,400 1.2% 1995 31.2 17,591 5.5% 1,393,500 1.3% 1996 31.2 18,050 2.6% 1,381,879 1.3% 1997 31.2 18,931 4.9% 1,379,956 1.4% 1998 31.2 20,444 8.0% 1,441,237 1.4% Source: (1) City of La Quinta (2) State of California Department of Finance 1031 CITY OF LA QUINTA TABLE 11 Property Value, Construction Activity and Bank Deposits Last Eight Fiscal Years, Fiscal Year Commercial Residential Ending Property Construction Construction Bank June30 Value(1) Units Value Units Value Deposits(2) 1991 $1,278,307,230 3 7,299,000 304 38,320,527 54,645,000 1992 1,594,767,374 12 7,334,871 320 35,744,443 54,871,000 1993 1,773,323,102 7 2,441,392 324 39,145,539 55,332,000 1994 1,872,768,156 13 6,081,796 531 79,318,969 57,282,000 1995 1,927,834,908 4 1,100,119 238 29,163,494 62,692,000 1996 2,043,276,054 8 1,018,940 336 53,973,239 63,453,000 1997 2,164,204,951 11 1,876,747 322 36,971,047 73,638,000 1998 $2,305,593,987 14 2,689,642 461 70,403,691 Na NOTE: Detail prior to fiscal year 1991 not available. Bank deposit data not available for fiscal year 1998, Sources: (1) City of La Quints, Schedule of Net Taxable Value (2) Findley Reports on California Financial Institutions 102 Source: Taxpayer KSL La Quints Hotel Corporation KSL PGA West Corporation Sunrise Desert Partners KSL Landmark Corporation KSL Land Corporation KSL La Quints Corporation TD Desert Development La Quints Golf Properties Corporation M & H Realty Partnership Washington Adams Partnership. City of La Quints CITY OF LA QUINTA Principal Taxpayers June 30, 1998 Type of Activitv Hotel Residences Condominium Vacant Land Residential Land Golf Courses Residential/Vacant Land Golf Course Shopping Centers Commercial TABLE 12 103 Source: CITY OF LA QUINTA TABLE 13 Major Employers June 30, 1998 Employer Employees Activity La Quints Hotel and Golf Resort 1,500 Resort Hotel PGA West 1,100 Golf Resort Wal-Mart 250 Retailer Albertson's 126 Groceries Vons 103 Groceries Ralph's 100 Groceries City of La Quinta 70 Municipal Government Simon Motors 65 Auto Dealer Cliff House 65 Restaurant Red Robin 50 Restaurant City of La Quints, 104 CITY OF LA QUINTA Schedule of Insurance in Force June 30, 1998 Company Name Policy Number Coverage Hartford PEBAO7068 Employee Dishonesty, Forgery, Computer Fraud Reliance Insurance NZB1500917 All Risk Property Insurance Company Including Auto Physical Damage (Excluding Quake & Flood) Reliance Insurance IMF 016349 Earthquake & Flood Company Real & Personal Property Including Contigent Tax Interruption California Certificate #5 Comprehensive General Joint Powers Liability Insurace Authority TABLE 14 Limits Term Premium $1,000,000 07/01/98 -99 $2,500 $25,459,250 07/O1/98 - 99 $14,486 $5,000,000 07/01/98 - 99 $23,700 $0 Deductible Retention 07/O1/98 - 99 $60,630 $50 Million California Certificate Worker's Compensation $250,000 07/O1/98 - 99 $37,637 Joint Powers #5009-056 Insurance Authority - - American National DAP9880468 Earthquake & Flood $2,500,000 07/O1/98 - 99 $5,000 Real & Personal Property Including Contigent Tax Interruption Source: City of La Quinta 105 CITY OF LA QUINfA Miscellaneous Statistical Data June 30,1998 Dateof Incorporation ....................................... Typeof City ....................................... Form of Government ....................................... CityEmployees ................ I...................... City Land Area (square miles) ....................................... Population ....................................... Numberof Parka ....................................... TotalAcreage ....................................... Miles of Streets ....................................... Miles of Bike Paths ....................................... Number of Major Intersections ..................................... . Number of Tragic Signals and Safety Lighting ......................... Number of Traffic Signs ....................................... Number of Street Lights ....................................... Public Schools ....................................... Private Schools ....................................... Churches-....................................... Banks/Savings and Loan ....................................... Number of Single Family Units ...................................... Number of Multiple Family Units .................................... Number of Mobile Homes ....................................... Source: City of La Quinta May 2, 1982 Charter City Council. / Manager 70 31.2 20,444 5 26 144.0 3.0 32 32 2530 7 4 1 3 3 9,448 697 247 TABLE 15 106 T4'!t 4 4 Q" AGENDA CATEGORY: BUSINESS SESSION: COUNCIL/RDA MEETING DATE: December 1, 1998 CONSENT CALENDAR: ITEM TITLE: STUDY SESSION: Consideration of a Resolution Approving the Revised Policy, and Application PUBLIC HEARING: Process for Formation of Land Based Financing Districts RECOMMENDATION: Adoption of the Resolution approving the revised policy, and application process for Formation of Land Based Financing Districts (Mello -Roos Community Facilities Act of 1982 Improvement Act of 1911 or the Municipal Improvement Act of 1913, and the Improvement Bond Act of 1915) which will supercede Resolution No. 96-75. FISCAL IMPLICATIONS: None (No current costs for the formation will be incurred by the City). No change in the $15,000 application process fee is proposed. BACKGROUND & OVERVIEW: The purpose of Land Based Financing Districts is to allow developers to construct public facilities or amenities of a residential development that provide a public benefit. The Policy, includes a step by step process for the formation of Land Based Financing Districts (Attachment No. 1). The Policy clearly identifies what information must be provided by the applicant to the City, which duties each party must adhere to, and what are the expenses associated with the formation of the District. These policies will provide the City with a better mechanism to evaluate requests for Land Based Financing Districts, which will include not only Mello -Roos Districts but Assessment Districts as well. t The following changes are identified in the Attached formation policies as they relate to developer driven districts: ► 100% concurrence of other property owners included in the proposed district ► Minimum amount of requested financing to be two million (2,000,000) dollars net bond proceeds ► Minimum of 50% of the public improvements must be dedicated to the City Developers, residential and commercial alike, may pursue such financing vehicles as a means to keep direct capital costs down. For example, the sale of tax exempt bonds for certain improvements may provide a less expensive financing vehicle for those improvements that traditional mortgage financing. These savings, however, can be off -set or eliminated by overhead, cost and risk associated with district formation and maintenance. As the Council may be aware, bonds sold on behalf of such districts ultimately affect the City's bond rating. Accordingly, the City has a vested interest in assuring that such districts are sound and consistent with City objectives. Recent experience with proposed land based financing districts has given cause for City staff to consider possible revisions to the City's policies for such districts' creation. Specific issues giving cause to these revisions include: Possible controversy and opposition to proposed districts by minority property owners (addressed by requirement for 100% concurrence of property owners on developer initiated districts; the City would still have the option to initiate districts when in the public interest); Disproportionate overhead to improvement ratio (addressed by an increase in minimum financing amount of $2,000,000); Justification for Municipal participation (addressed by requirement that at least 50% of the financed improvements being dedicated to the City). The Policy and Application Process has been reviewed by the bond counsel. FINDING & ALTERNATIVES The alternatives available to the City Council are: 1. Adopt the Revised Policy for Formation of Land Based Financing Districts and adopt the Resolution; 2. Amend the Revised Policy for Formation of Land Based Financing Districts and adopt the Resolution as considered appropriate; or 3. Prove S�t�afpf with alternative direction. *� v ohn M. Falc ner, Finance Director RESOLUTION NO. 98 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA APPROVING THE REVISED POLICY, AND APPLICATION PROCESS FOR THE FORMATION OF LAND BASED FINANCING DISTRICTS AND RELATED FEE WHEREAS, the City of La Quinta on October 1, 1996 adopted Resolution No. 96-75 establishing an administrative processing fee; and WHEREAS, the Mello -Roos Community Facilities Act of 1982, Improvement Act of 1911, Municipal Improvement Act of 1913, and the Improvement Bond Act of 1915 allows the payment of a fee to accompany a written request or petition requesting the creation of a Land Based Financing District to compensate the legislative body for all costs incurred in conducting proceedings to create such a District. NOW, THEREFORE, BE IT RESOLVED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF LA QUINTA, THAT: SECTION 1: This Resolution hereby revokes Resolution No. 96-75 adopted October 1, 1996. SECTION 2: A fee of fifteen thousand dollars ($15,000) non-refundable deposit. SECTION 3: That the Policy for Formation of Land Based Financing Districts and Application Process attached as Attachment No. 1 be adopted. PASSED, APPROVED AND ADOPTED at a regular meeting of the La Quinta City Council, held on this day of December, 1998 by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: JOHN J. PENA, Mayor City of La Quinta, California ATTEST: SAUNDRA L. JUHOLA, City Clerk City of La Quinta, California APPROVED AS TO FORM: DAWN HONEYWELL, City Attorney City of La Quinta, California 74 03 any ATTACHMENT NO. 1 POLICY FOR FORMATION OF LAND BASED FINANCING DISTRICTS INTRODUCTION The City of La Quinta will consider developer or property owner initiated applications requesting the formation of community facilities or assessment Districts and the insurance of bonds to finance eligible public facilities necessary to serve newly developing commercial, industrial and/or residential projects. Generally, only regional or community serving public facilities such as major streets and arterials, highway improvements and freeways, flood or drainage improvements, sewers, telephone ducts, electrical conduits, water improvements, libraries, fire stations and transit improvements (including public parking facilities) may be eligible for this financing program. Facilities will be financed in accordance with the provisions of the Municipal Improvement Act of 1913 and the Improvement Bond Act of 1915, or the Mello -Roos Community Facilities Act of 1982. Existing neighborhoods may apply to the City for the use of the assessment financing to fund local or neighborhood serving facilities, such as streets, alleys and sidewalk improvements, in accordance with the Improvement Act of 1911 or the Municipal Improvement Act of 1913 and the Improvement Bond Act of 1915. The City shall make the determination as to whether a proposed District shall proceed under the provisions of the Assessment Acts or the Mello -Roos Community Facilities Act. The City may confer with other District consultants and the applicant to learn of any unique District requirements such as regional serving facilities or long-term development phasing, prior to making any final determination. All City and consultant costs incurred in the evaluation of new development, District applications and the establishment of Districts will be paid by the applicant(s) by advance deposits in those instances where a proposed District has been initiated by a party or parties other than the City. The City may incur expenses for analyzing proposed assessment or community facilities districts where the City is the principal proponent of the formation or financing of the District. Expenses not legally reimbursable by the District shall be borne by the applicant. 753 05 a�5 OVERVIEW OF APPLICATION PROCESS Early communication with the City is encouraged to assist applicants in evaluating the feasibility of available financing programs and to discuss program procedures. The following details a typical District application review and approval process. Pre -application Conference: Applicant meets with the Assistant City Manager and Finance Director for Commercial Development; or, the Community Development Director and Finance Director for residential development to discuss the proposed project and application procedures. 2. Pre -application Submission: Applicant submits a pre -application. 3. Project Review: The City Staff will meet to discuss the pre -application, including any issues raised and further information that might be required. If necessary, applicant submits revised pre -application. Once the District's application is accepted by City Staff, it will be reviewed by a City assessment and Mello -Roos financing team consisting of, but not limited to, the City Manager, Assistant City Manager, Community Development Director, Finance Director, and City Attorney, based on the needs of the project. If the project is denied, a letter will be sent advising the applicant of the denial. If the project is to be considered, an application packet will be sent to the applicant. When the application is returned for processing, it must include a $15,000.00 Deposit for expenditures to be incurred. 4. Application Processing: Upon City Staff's determination that the application package is complete, City Staff prepares a report to the City Manager, or the Manager's designee, who will then forward the application for district formation and project financing, along with the City Manager's recommendation of additional financing team members or consultants, to the City Council for further action. If the City Manager determines that the project does not meet the community's needs, the deposit, less accrued expenses, will be refunded to the applicant. 5. City Council Consideration: The City Council grants or denies the application. If approval is granted, the City Council directs the City Manager, or the designee, to engage additional consultants, which may include, but not be limited to; a certified appraiser, financial advisor, underwriter, bond counsel, and assessment engineer. This includes negotiation of necessary contracts, and the collection of additional developer deposits, as necessary. "i's 2 6. Project Initiation: City Staff submits contracts, reimbursement agreements, bond documents and other pertinent items for consideration to the City Council, as required. 7. Project Implementation: Applicant, City Staff and consultants meet to determine preliminary project schedule and begin work necessary to complete District formation and financing. GENERAL REQUIREMENTS District Cost Deposits and Reimbursements All City and consultant costs incurred in the evaluation of District applications and the establishment of Districts shall be paid by the applicant through advance deposits. The City shall not incur any expenses for processing and administering Assessment Districts or CFDs. Expenses not chargeable to the District shall be directly borne by the applicant. Each application for the formation of an Assessment District or CFD shall be accompanied by a $15,000.00 initial deposit to fund consultant and staff costs associated with district review and implementation. If additional funds are needed to off -set costs and expenses incurred by the District, the City shall make written demand upon the applicant for such funds and the applicant shall comply with demand within fourteen (14) calendar days of receipt of such notice. If the applicant fails to make any deposit of additional funds for the proceedings, the City may, as its sole option, suspend all proceedings until receipt of such additional deposit. The deposits shall be used by the City to pay costs and expenses incurred by the City incident to the proceedings, including, but not limited to, legal, engineering, appraisal, special tax consultant and financial advisory fees and expenses; administrative costs and expenses; required notifications; and printing and publication of legal matters. The District shall refund any unexpended portion of the deposits upon the following conditions: 1. The District is not formed; 2. The proceedings for formation of the District or issuance of Bonds is disapproved by the City; or 3. The proceedings for formation of the District or issuance of Bonds is abandoned in writing by the applicant. Pursuant to this adoption of a reimbursement resolution, the applicant shall be entitled 77 3 ; to reimbursement from Bond proceeds for all reasonable costs and expenses incident to the proceedings and construction of the Public Facilities as provided under the Mello -Roos Act, the 1911 Act, or the 1913 Act. All such costs and expenses will be limited to those District -related consultants hired by the City and invoices shall be verified by the City as a condition of reimbursement. The applicant or property owner shall not be entitled to reimbursement from Bond proceeds for any of the expenses specified as follows: 1 . In-house administrative and overhead expenses incurred by the applicant; 2. Interest expense incurred by the applicant on moneys advanced or expended during the proceedings and construction of public facilities; and 3. Any other costs and expenses incurred by the applicant which are not otherwise authorized for reimbursement under the Mello -Roos Act, the 1911 Act or the 1913 Act. Under no circumstances shall the City accrue or pay any interest on any portion of the deposit. Neither the City nor the District shall be required to reimburse the applicant or property owner from any funds other than the proceeds of Bonds issued by the District. Use of Consultants The City shall either select or have the right of refusal over all consultants necessary for the formation of the District and the issuance of Bonds, including the underwriter(s), bond counsel, financial advisor, assessment engineer, appraiser, market absorption study consultant, and the special tax consultant. City Staff may confer with the applicant, but consent of the applicant is not required in the determination by the City of the consulting and financing team. The need for district consultants and the scope of their services shall be determined by City Staff on a case -by -case basis with consideration given to market conditions and the nature of the District and financing(s). Eligible Public Facilities Facilities to be financed must be Public Facilities for which the City, or a public agency as determined appropriate by the City, will be the owner or will have normal operating and maintenance responsibility. The types of public facilities eligible to be financed are: 1 . Streets and Roads 78 IN 2. Utilities and Drainage Facilities. 3. Regional Public Facilities (as permitted under the Mello -Roos Act). Parks and library facilities may be financed on a case -by -case basis. The City has final determination as to any facility's eligibility for financing, as well as the prioritization of Public Facilities to be included within a District financing. Use of Bond proceeds for grading and right-of-way acquisition will be reviewed by the City and bond counsel on a case -by -case basis. Developer Support In the instance of multiple owners the applicant shall be required to produce letters evidencing support by the other property owners for the scope and establishment of the district as an attachment to the District application. Formation of the district will require concurrence of 100% of the other property owners to be included in the proposed district, unless there is an over riding need for the Public Facilities, or the applicant is willing to separately fund the Public Facilities on the non -participating property(s). The minimum amount of requested financing that will be considered by the City is two million ($2,000,000.)dollars net bond proceeds. A minimum of 50% of the public improvements must be dedicated to the City. Property Owner Support - Existing Neighborhoods In the instance of multiple property owners, the applicant shall be required to produce letters evidencing support by the other property owners for the scope and establishment of the District as an attachment to the District application. Formation of the District will require proof of overwhelming support of the other property owners to be included in the proposed District, unless there is an overriding need for the Public facilities, or the applicant is willing to separately fund the Public Facilities on the non- participating property(s). Land Use Approvals The City will accept applications for the formation of Assessment Districts and/or CFDs only when properties to be included within a proposed district have City site plan and other applicable zoning approval. 5 Value -To -Lien Ratio The District (or improvement areal property value -to -lien ratio should be at least 4.0 to 1 after including in an appraisal the value of the financed Public Facilities to be installed and including as part of the lien any prior or pending special taxes or improvement liens. Individual properties within the boundaries of the proposed District must also meet a minimum value -to -lien test of 3.0 to 1 on a parcel -by -parcel basis. The value -to -lien ratio shall be determined based upon an independent certified appraisal of the proposed District. The appraisal shall be coordinated by and under the direction of the City. All costs associated with the preparation of the appraisal report shall be paid by the applicant through the advance deposit mechanism. The appraisal shall be conducted in accordance with criteria established by the City. In every case, the appraisal shall employ either a discounted cash flow analysis or use bulk sale comparables. Upon receiving an appraisal and determining the value -to -lien ratio, the City shall apply the following criteria: If the value -to -lien ratio is 4.0 to 1 or greater, the City will not require a letter of credit or other security to secure payment of the special taxes or assessments to be levied annually on properties within the District. However, letters of credit or other security may be required for individual parcels within the District that have a value -to -lien of less than 3.0 to 1. 2. If the value -to -lien ratio is less than 4.0 to 1, the City shall require letters of credit or other security to secure payment of the special taxes or assessments on properties within the District or may elect to abandon the District. Security For new development, the applicant or property owner must demonstrate its financial plan and ability to pay all assessments and/or special taxes before full build -out has taken place. Additional security such as credit enhancement may be required by the City in certain instances. If the City requires letters of credit or other security, the credit enhancement shall be insured by an institution in a form and upon terms and conditions satisfactory to the City. All fees payable on the letter of credit or other security shall be the sole responsibility of the applicant or developer, not the City or the District. Any security required to be provided by the applicant shall be discharged by the City upon the opinion of a certified appraiser retained by the City, that a value -to -lien ration of 4.0 to 1 has been attained. nt # 6 Soo Prior to the City Council's approval of District formation, any property owner that will be responsible for more than 10 percent of the aggregate special taxes or assessment installments within the district will, at City Staff's request, provide detailed information regarding the following: Legal structure of the title -holding entity, and the legal structure of the owners or partners thereof; 2. Detailed, externally prepared financial statements of the property -owning entity and, if the owning entity is a subsidiary or affiliate of another entity, detailed audited financial statements of such parent or affiliate. Three years' statements are required; 3. A list of bank, credit or investment references who the City may contact; 4. A list of other cities or agencies in which the developer or its parent or affiliate company have participated in financing district formation and bond sales; and 5. A comprehensive property development financial pro forma detailing development costs and funding sources, whether from equity, bank, investor or bond proceeds sources. The pro forma must clearly identify timing and amount of private funds required to develop the project and pay the installments or taxes pending project completion and sale. The developer will be expected to demonstrate the level of certainty of obtaining and the sources of such private funds. The City will use the above information in assessing whether or not to proceed with formations of the District. Disclosure The City shall determine, in its sole judgment after consultation with attorneys and experts, what financial and development information provided by the developer will be disclosed in the Official Statement for the bonds. The City intends to generally follow the procedures and recommendations set forth in the California Debt Advisory Commission's publication Disclosure Guidelines for Land -Based Securities. The developer will be required to review such disclosure, and to sign a certificate that the disclosure is complete and accurate, and that it does not fail to include material facts. The City will also determine, in its sole judgement, after consultation with attorneys and experts, what financial and development information provided by the developer will be included in annual secondary market disclosure materials required by Securities and Exchange Commission Rule 15c2-12. The developer will execute an agreement FA `' 6 -°-81 301 with the City pledging to provide the required data according to a given schedule. Generally, the developer's obligation to provide continuing disclosure data will terminate when the developer's share of total debt service revenues falls below a threshold of 10-25%. The City will make its best efforts not to disclose any information in the initial offering not reviewed and approved by the developer(s). Applicants should be aware that, absent such review and approval, the City may not issue any bonds. Terms and Conditions of Bonds All terms and conditions of the bonds shall be established by the City. The City will control, manage and invest all District insured Bond proceeds. Unless otherwise authorized by the City, the following shall serve as Bond requirements: 1. A reserve fund equal to approximately 10 percent of the issue's par value will be established. 2. The special taxes or annual assessments shall be levied for the first fiscal year following sale of the Bonds for which they may be levied. Interest shall not be funded (capitalized) beyond the earliest interest payment date for which sufficient special tax revenues or annual assessment will be available for payment of interest. 3. The repayment of principal shall begin on the earliest date for which sufficient special tax revenues or annual assessments can be made available. 4. Beginning with commencement of the repayment of principal, annual debt service shall be level. 5. The maximum special tax shall be established to assure that the annual revenue produced by levy of the maximum special tax shall be equal to at least 1 10% of the average annual debt service. 6. In instances where multiple series of Bonds are to be issued, the City shall make a final determination as to which Public Facilities are of the highest priority and those Public Facilities will be financed first and will be subject to the earliest or most senior lien. 7. The City may require that each new District bond financing refund any prior liens, if they exist on properties included in the District in order to avoid subordinated liens. Instances where prior liens may not require funding are: (1) where refunding prior liens will result in higher interest cost, (2) where there can 8 �� be assurance that prior liens may pose no marketing problems for the new District Bonds, or (3) where refunding prior liens may present future administrative difficulties to the City or other affected public entities. Disclosure to Purchasers The applicant or property owner will be required to disclose this and any other special tax, assessment or other liens on individual parcels to existing and future property owners. In addition to all requirements of law, the City shall require the applicant to provide disclosure of such information to the purchasers of property within the District and the terms and conditions of Bonds issued on behalf of the District. Such disclosure requirement shall include notifications to potential property purchasers, as well as methods to notify subsequent property purchasers. Acquisition Provisions The City generally will provide for acquisition Districts. The City shall have final determination as to whether and to what extent it will allow the financing of Public Facilities through acquisition. In the event the acquisition provisions of the 1913 Act or the Mello -Roos Act are used, the City and the applicant or property owner shall mutually agree upon Public Facilities to be acquired and the method of determining reasonable acquisition cost. A funding and acquisition agreement shall be required and approved by the City Council on or prior to the adoption of the resolution of intention to form the District. Exceptions to these Policies The City may find in limited and exceptional instances that a waiver to any of the above stated policies is warranted given identified special City benefits to be derived from such waiver. Such waivers are granted only by action of the City Council and based upon specific public purpose, economic and/or health and safety findings. 9 83 3�3 I_ yOFTHt CITY OF LA QUINTA PRE -APPLICATION FOR LAND BASED FINANCING DISTRICTS Official Company Name: Any DBA's: Official Mailing Address: Telephone: Fax: Project Location: (must be within City limits) Types of Public Improvement(s): Type of Financing: Assessment District ❑ or Mello Roos District ❑ Amount of Financing Requested: Requested Date Funds Available For Construction: Will 3 Years of Financial Statements Be Provided ❑ Yes ❑ No Contact Person: Title: Telephone: Fax: 3b4 La�T' C-f b OF THt Within the constraints of these provisions, the City of La Quinta has developed the following fee schedule to be used in the program: 1. At the time an application is submitted, a filing fee in the amount of $15,000.00 will be required. CITY OF LA QUINTA LAND BASED FINANCING PROJECT ELIGIBILITY REVIEW ❑ ASSESSMENT DISTRICT FOR OFFICE USE ONLY Application No. Date Received ❑ MELLO ROOS The information requested on this form is necessary to process or a request for financial assistance from the City of La Quinta Assessment District and Mello Roos Program. Fill in all the blanks using "NONE" or "NOT APPLICABLE" where necessary. If the figure given is an estimate, put "EST." after the figure. If more space is needed for any specific answer to a question, use a separate sheet. The information submitted in this form will not be made public without prior notice to the applicant. Please enclose the last three (3) fiscal year-end financial statements plus any interim statements available. Return two signed copies of this application to: City of La Quinta, Finance Department PO Box 1504 78-495 Calle Tampico La Quinta, California 92253 Signature Title 1 Date 618') 85 35 r_1 PETITION/PROPOSED OWNER OF THE PROJECT Official Company Name: Any DBA's: Official Mailing Address: Telephone:( Fax:( Company Headquarters and address of each operating location in California: B. Business Organization: Corporatio Partnership Sole Proprietorship Other (describe) Is the proposed owner a subsidiary or affiliated directly or indirectly with any other organization? If so, indicate relationship and name of related organization: If corporation, indicate state of incorporation: and date qualified to do business in California (if incorporated elsewhere): C. Officers President 2 35( 86 �6 Vice President (Finance) Secretary Directors D. List name and.home address of equity owners of 10% or more. If publicly held, indicate stock exchange traded on. If partnership, list General and Limited Partners and interest owned by each. If trust, list beneficiaries. $ of Equity ►-m- Home Address InterestOwned E. Name, business address, and phone number of officer to whom all notices and communications concerning the project should be sent: 3 01 F. Counsel to Applicant: Name: Address: G. Bond Counsel on proposed project (if known):* Name: Address: H. Principal Bank(s) of Account with name and phone of contact person: Name: Contact: Address: Name: Contact& Address: I. Investment Banker for proposed project (if known):* Name: Contacts Address: *NOTE: Bond counsel and investment banker are subject to the approval of City of La Quinta 4 88 J. Company History. 1 . Description of Development Projects completed. 2. List all tax exempt financing projects Have any of these projects ever been in default? -Yes -No If yes, please provide project name and location K. A description, if applicable, of the statewide size and location of the development projects of the Applicant (including related person and principal users). L. Attach copies of the year-end Financial Statements for each of the last three (3) years, or for as many years as are available. 1. For public corporations, Form 1OK's plus most recent form 10Q. 5 30T II. PROPOSED PROJECT: A. Development concept: (Narrative Description, including renderings if available). B. Proposed Facilities (off -site) to be'constructed with Bond Proceeds (describe). C. Off -site Cost Breakdown. D. Does applicant now own the site of the proposed facility? If not, has applicant entered into an option or commitment or other agreement to purchase the land? If so, please attach a copy of such agreement. E. If project is located within the City, please identify prior contact with City officials regarding the facility (certification of prior contact required). F. Estimated useful life of buildings, equipment or off -site improvements. G. Give brief narrative explaining why project is being undertaken. H. Does the proposed project involve, in whole or in part; any of the following: residential real property; sports facilities; commercial property or industrial land development activities? Yes No If yes, please explain. I. Proposed commencement date of acquisition or construction of the public facilities: J. Estimated date on which facilities will: Start construction: Completion date: K. Attach an initial study for purposes of environmental impact. Will the facilities meet zoning requirements at the proposed location? Has Specific Plan or Tract Map received approval by the City Council? 6 s?,tii 90 3 la 20 L. Please list the date, purpose and amount of any of the costs proposed to be financed in connection with the proposed project which have been incurred prior to the date of this application: Date Purpose Amount M. Please summarize any capital expenditures paid or incurred in La Quinta within the last three (3) years. III. COST OF THE PROJECT State the costs reasonably necessary to the acquisition of the site and/or construction of the propsed project together with any machinery and equipment necessary or convenient in connection therewith, and including any utilities, access roads or apportionment facilities; A. Land and Facilities 1. Contract Price 5 2. Legal, Filing, Misc. 5 3. Fees, Permits, and/or Taxes S Subtotal S B. Architectural and Engineering $ C. Construction Costs: 1. Site Preparation S 2. Materials 5 3. Construction Contracts S 4. Labor $ 5. Utilities Connection $ Subtotal $ 7 jP) 91 31I D. Interest during construction $ E. Financing, legal, Miscellaneous (From _To_) $ (Please specify) F. Contingency (if appropriate) $ TOTAL $ NOTE: Project costs may not include working capital, other than construction loans. Generally, only costs paid or incurred after application is accepted can be reimbursed out of bond proceeds. IV. PLEASE OUTLINE YOUR DETERMINATION OF VALUE OF THE pgopnSFn PROJECT TO BE FINANCED (Attach recent appraisals). V. PUBLIC BENEFITS OF PROJECT A description of the public benefits which would occur from undertaking the project. (If applicable, information in this section is to be given for both the applicant and all other entities that will be principal users of the facilities). A. Resource Conservation 1. Explanation and documentation of estimated conservation of energy, mineral or natural, cultivated resources arising out of the project. 2. Explanation and documentation of the reduction of waste, improvement of recovery or intensification of utilization of resources that otherwise would be less intensively utilized, wasted or not recovered. B. Other Benefits Will project contribute to the improvement of detrimental environmental factors? 2. Will project contribute to the revitalization of a deteriorated area, or will it increase economic usefulness of an area? ' 8 "J ZY " 92 3�2� 3. Estimate of increased local and state taxes, fees and other revenues due to the completion of the project. (Attach proposed Special Tax Spread, if available). 4. Estimate of decreases of public service costs by virtue of completion of the project (such as decreased welfare or unemployment costs). VI. PUBLIC DETRIMENT A description of any public detriment from issuance of bonds in the maximum amount proposed in the application. A. Employment displacement - will the completion of the project contribute to job displacements. B. Energy, mineral or natural or cultivated resource conservation - will the completion of the project lead to increased utilization of resources? 1. Estimate of increased utilization of resources. 2. Estimate of increases in cost to the public due to increased utilization. C. Does construction of the project, or completion of the project, have any adverse environmental impacts, including additional waste disposal? 1. Estimate of the environmental impacts. 2. Include copies of any required Environmental Impact Reports. Copies of the annual report to stockholders for each of the last three (3) years. If applicable, include copies of any registration statements, prospectuses and 10-K's filed with the Securities and Exchange Commission within each of the last three (3) years, and copies of the applicant's last 10-Q and most recent 8-K. J '.:i J J 93 IMPORTANT NOTICE TO APPLICANT Approval for financial assistance by City of La O.uinta is determined by the information presented in this application. Any changes in the status of the proposed project from the facts presented herein and the Exhibits attached hereto, could disqualify the project and cause it to be ineligible for financial assistance. In general, commencement of construction or any award of contract for the final acquisition of the proposed project, prior to formal approval by the City where such construction or acquisition is to be financed by a tax-exempt issue, is likely to result in the application being considered ineligible for approval. The following information and schedule must be attached as Exhibits to the application: SCHEDULE A Housing Classification SCHEDULE B Debt Service by Housing Types SCHEDULE C Types of Public Facilities to be Constructed SCHEDULE D Housing Characteristics SCHEDULE E Appraisal/Market Value SCHEDULE F Proposed Debt Service Schedule 10 094 94 /40 �s-0ek CENTURY HOMES Century Crowell Communities December 1, 1998 VIA FACSIMILE (760) 777-7107 Mayor John Pena City Council City of La Quinta 78-495 Calle Tampico La Quinta, CA 92553 RE: City Council Regular Meeting — December 1, 1998, Business Session Item #2 Dear Honorable Mayor Pena and Members of the Council, We have reviewed the proposed "Revised Policy and Application Process for Formation of Land Based Financing Districts." Our comments, objections, and recommendations are attached. Sincerely, CENTURY CROWELL COMMUNITEIS, LP CENTURY HOMES COMMUNITIES ,�_4 ?� Ernest 0. Vincent Vice President, Corporate Legal EOV:mr Attachment Up°,L''°'»''°° 1535 South "D" Street, Suite 200 • San Bernardino, CA 92408 CIS 95 (909) 381-6007 • FAX (909) 381-0041 CENTURY CROWELL COMMUNITIES COMMENTS TO THE CITY OF LA QUINTA PROPOSED ASSESSMENT DISTRICT POLICY POLICY PROPOSAL With respect to the type of improvements that can be financed, the new policy, as stated in the Introduction, is as follows: "Generally only regional or community serving public facilities such as major streets and arterials, highway improvements and freeways, flood or drainage improvements, sewers, telephone ducts, electrical conduits, water improvements, libraries, fire stations and transit improvements (including public parking facilities) may be eligible for this financing program." (Emphasis added.)" In general, we oppose the proposed policy for the following reasons: THE PROPOSED POLICY IS INCONSISTENT WITH THE GENERAL USE OF 1913-1915 ACT ASSESSMENT DISTRICTS In a 100-lot development, for example, located at the intersection of major streets, the developer would be required to install an attractive perimeter wall, landscaping and street improvements. Under current and proposed policy, a developer can finance the construction through a 1913-1915 Assessment District, because City Staff sees this kind of improvement as benefiting the City as a whole. Yet the burden of paying -off the assessment bonds can be equally allocated among each of the 100 lots. If, on the other hand, the developer is required to install a small public park located in the interior of the development, the application for a 1913-1915 Assessment District could be denied on the ground that the benefit is not regional or community (i.e., benefiting the City as a whole). The same is true for public street improvements located within the tract. POLICY FURTHER LIMITS THE KIND OF IMPROVEMENTS TO THOSE BENEFITING THE CITY AS AN AGENCY, EVEN WHERE THEY OTHERWISE SERVE COMMUNITY INTERESTS Century Crowell Communities recently submitted a pre -application for a 1913-1915 Assessment District in the amount of $1,991,591, covering 273 lots in the City of La Quinta. In its denial of the application on November 10, 96 WJ ,l 1998, Staff noted that "the improvements qualify under the City adopted policy." However, the application was denied because 87% of the improvements to be financed were CVWD sewer and water improvements. Among these improvements was lining of the Whitewater Flood Control Channel, at a cost of $350,000. Clearly, this improvement has local and regional benefit. Since, however, responsibility for the Channel is under the control of a non -City agency, the proposed policy either does not allow for it, or would only allow 50% of the improvements to be of the type which are not dedicated to the City. UNDER THE PROPOSED POLICY MINIMUM OF $2,000,000, VERY FEW, IF ANY, NEW 1913-1915 ASSESSMENT DISTRICTS WILL EVER BE IMPLEMENTED In the case of our recent pre -application, only about $400,000 worth of improvements would qualify for 1913-1915 Assessment District Financing under the proposed policy. This is about $1,500 per lot for the 273 lots. Taking this as an average, we would need over 1,300 lots to qualify. We submit that a 100 or 200 lot Assessment District is far less likely to result in default than one covering 1,300 lots for the simple reason that the smaller the subdivision, the more likely it is that the builder can complete the homes and sell them to qualified buyers, within a reasonable time. The larger the subdivision, the more likely it is that the project will fail prior to the sale of substantial numbers of homes, with the likelihood of default being increased. THE PROPOSED POLICY HAS NOT BEEN THE SUBJECT OF DEVELOPER OR BUSINESS COMMUNITY INPUT To our knowledge, there has been no public workshop or community task force which has had any input on the new policy. Accordingly, we recommend that the Council delay approval and direct Staff to develop a forum for such input. Alternatively, we recommend that Council consider lowering the threshold to $1,000,000 gross, including interior tract improvements that are dedicated to the City, and/or a combination of the above. " 97 31-1 U\P\KENT\AD98. WK4 EXHIBIT A PROPOSED LA QUINTA AD LVIPROVENIENT COST SUNLli IARY TRACT NO. 23995 (150 LOTS) ADAMS STREET IMPROVEMENTS OFF -SITE SEWER OFF -SITE WATER SEWER FEES WATER FEES CHANNEL LINING TOTALIMPROVEMENTS LESS DEVELOPER CONTRIBUTION SUBTOTAL TRACT NO. 27519 (70 LOTS) DUNE PALMS STREET IMPROVEMENTS SEWER FEES WATER FEES TOTAL IMPROVEMENTS LESS DEVELOPER CONTRIBUTION SUBTOTAL TRACT NO. 23995 (53 LOTS) SEWER FEES WATER FEES PARK TOTAL IMPROVEMENTS LESS DEVELOPER CONTRIBUTION SUBTOTAL TOTAL REL 1BURSABLE Ev[PROV. COSTS $168,888 $219,675 $355,000 $288,750 $360,000 $351.300 $1,743,613 $922,897 $820,716 $80,241 $134,750 $168.000 $382,991 NA $382,991 $102,025 $127,200 $64,109 $293,334 $3.348 $289,986 $1,493,693 31lf� U\P\KENT\AD983.WK4 EXHIBIT B PROPOSED LA QUINTA AD UvTROVEMENT COST SUMMARY TRACT NO. 23995 (150 LOTS) ADAMS STREET IMPROVEMENTS $168,888 INTERIOR STREET IMPROVEMENTS $248,550 INTERIOR CURB AND GUTTER $249,300 ON AND OFF -SITE DRAINAGE $77,800 CHANNEL LINING $351,300 TOTAL IMPROVEMENTS $1,095,838 LESS DEVELOPER CONTRIBUTION $275,122 SUBTOTAL $820,716 TRACT NO. 27519 (70 LOTS) DUNE PALMS STREET IMPROVEMENTS $80,241 SEWER FEES $134,750 WATER FEES $168,000 TOTAL IMPROVEMENTS $382,991 LESS DEVELOPER CONTRIBUTION NA SUBTOTAL $382,991 TRACT NO. 23995 (53 LOTS) INTERIOR STREET IMPROVEMENTS $87,821 INTERIOR CURB AND GUTTER $88,086 SEWER FEES $102,025 PARK $64,109 _ TOTAL IMPROVEMENTS $342,041 LESS DEVELOPER CONTRIBUTION $52,055 SUBTOTAL $289,986 TOTAL REIMBURSABLE INIPROV. COSTS $1,493,693 �1q COUNCIL/RDA MEETING DATE: December 1, 1998 Consideration of Fiscal Year 1998-99 Marketing Plan As deemed appropriate by City Council. FISCAL IMPLICATIONS: AGENDA CATEGORY: BUSINESS SESSION: S CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: None for this action. The budget estimate for full Plan implementation is estimated at $170,350. Plan implementation would require budgetary transfers and, pending Council action on specific Plan components, possible new budget allocations. The City Council authorized Kiner/Goodsell Advertising to prepare a Marketing Plan for the City of La Quinta at its regular meeting of November 3, 1998. Kiner/Goodsell has met with Council Members, staff and community leaders and prepared the enclosed Marketing Plan for Council consideration (Attachment 1). As drafted, the Plan proposed to focus on three "facets": • Attract more shoppers/diners • Attract more businesses • Attract more residents The budget for this Plan is estimated at $170,350. This exceeds the City's remaining budget for similar services (see Attachment 2) and would require supplemental allocations and budget transfers to accomplish stated objectives. Staff is working with Kiner/Goodsell to develop alternative service levels that would be within existing budget parameters. Staff will endeavor to suggest appropriate budget accommodations to implement the level of service sought by the Council as represented in the Marketing Plan's adoption. 100 Options available to the City Council include: 1 . Approve the Marketing Plan as submitted by Kiner/Goodsell Advertising and authorize staff to prepare appropriate budget accommodations (i.e., budget transfers, re -allocations or supplemental allocations for Council consideration, etc.); or 2. Approve the Marketing Plan with amendments; or 3. Do not approve the Marketing Plan; or 4. Provide staff with alternative direction. Respectfully submitted, Mark Weiss Assistant City Manager 101 ATTACHMENT 2 FY 1998-99 "Promotional" Budget Category Budget Committed/ Expended Proposed Kiner/Goodsell Economic Development: Promotional Services $10,000 $1,391 Travel/Training/Mtgs 8,550 169 Advertising: Business Journal 20,000 0 Date Festival 5,000 5,000 Bob Hope Ad 4,300 3,638 Promotional Materials 2,500 1,238 TV/Radio 40,000 22,385* Kiosk 15,000 1,200 Redevelopment: Property Profiles 50,000 0 Travel/Training/Mtgs 15,000 450 Totals $1709350 $359471 $1709350 *Includes $20,000 for Skins Game promotional spot. 102 T4ht 4 4 Q" COUNCIL/RDA MEETING DATE: December 1, 1998 ITEM TITLE: Consideration of Contract for Services with Kiner/Goodsell Advertising for Marketing Services As deemed appropriate by the City Council. AGENDA CATEGORY: BUSINESS SESSION: q CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Kiner/Goodsell proposes a retainer agreement at $3,750.00/month beginning December 1, 1998, and proposes a graphic design and production rate of $85/hour for services outside the retainer agreement for a total of $26,250 plus services. The Council allocated $30,000 from "salary savings" on November 3, 1998. Of this amount, $5,000 has been committed towards preparation of the Marketing Plan, leaving $25,000 from the prior allocation. A supplemental allocation of $10,000 from Salary Savings (Account 101-102-501-000) to Account 101-102-605-635 at this time would provide adequate funding for the retainer and provide up to $8,750 for additional marketing services pursuant to the proposal. Kiner/Goodsell Advertising has prepared a Marketing Plan for the City of La Quinta that, if adopted, would propose a significant and accelerated marketing effort geared towards: Attracting more shoppers/diners Attracting more businesses Attracting more residents The Marketing Plan includes numerous tasks that will require significant oversight and management effort. These tasks include, but are not limited to, preparing promotional materials, direct mailings, and press releases; coordinating seminars; implementing a "Dining Dollars" program; conducting resident surveys; implementing a media plan; and coordinating a Builders Showcase event. 103 Kiner/Goodsell has submitted a retainer agreement proposal for purposes of "marketing, advertising and public relations" and, in effect, coordinating the Marketing Plan implementation effort. The Kiner/Goodsell proposal, as submitted, is a limited one -page proposal. Staff would suggest that, if this concept and budget proposal is acceptable to the City Council, that the proposal be incorporated into a more standardized City agreement format (i.e., with appropriate insurance, termination, reporting, ownership of work, confidentiality and conflict of interest clauses) to the satisfaction of the City Attorney. Other substantive issues, such as compensation/service rates, application of mark-ups or commissions, etc. could be addressed by staff with Kiner/Goodsell at the Council's direction. Options available to the City Council include: 1. Authorize the City Manager to enter into the Agency Agreement as submitted by Kiner/Goodsell Advertising, subject to review and approval by the City Attorney and appropriate $10,000 from salary savings for contract service; or 2. Authorize the City Manager to negotiate alternative terms with Kiner/Goodsell for marketing services as deemed appropriate by the City Council (i.e., specific to services, rates, commissions or contract structure ---retainer vs. time/materials, etc.); or 3. Authorize staff to implement provisions of the Marketing Plan, if adopted, as deemed appropriate by the City Council without the assistance of Kiner/Goodsell; or 4. Provide staff with alternative direction. Respectfully submitted, Mark Weiss Assistant City Manager 1 IJ 4 KINER / G:�sELL A D V E S I N G rP - y Agreement This document will serve as an agreement between Kiner/Goodsell and The City of La Quinta for the purposes of marketing, advertising and public relations beginning December 1, 1998 and continuing through June 30, 1999. Terms: We estimate the number of account service hours on this account to be in excess of 50 hours per month, based on the amount of work 'that is necessary to create positive awareness about shopping, living and opening a business in the City of La Quinta. The retainer will cover, those hours associated with basic account service including, but not limited to, client meetings (in person, by phone, fax or e-mail), strategic planning, budgeting, investigating PR opportunities, maintaining and updating information on the City's web site, media relations, media placement (as needed), and promotional networking with other K/G clients/contacts. This also includes the writing and distribution of an average of 4 local press releases/month. Graphic design and multi -media projects are not included within the scope of this agreement. - If a project falls outside the scope of the retainer, an estimate will be submitted. The basic rate for account service is $85/hour. Your retainer will be $3,750/month. Retainers are due in advance. This agreement will be executed upon payment of the initial retainer. Graphic design and production will be billed at the rate of $85/hour. Any production that falls in this category will be estimated and approved in advance of work commencing. Any products or services sub -contracted for production purposes will be marked up 20%. Vendor invoices will be available upon request. Expenses such as travel, postage and long distance will be billed with no markup. Kiner/Goodsell will collect a standard 15% agency commission all media placed through the agency. This contract can be terminated by either party with 30 days written notice. If this proposal is acceptable to you, please sign below. We look forward to a long and mutually beneficial relationship. l , ISSUED BY: �--� /-Ge�/Q'7�'�. r.�r.-- DATE: ACCEPTED BY: DATE: 10J 73-101 Hwy. 111, Suite 4 Palm Deseft, California 92260 760.773-0290 fox760-773-1750 C&ti' 44Q" COUNCIL/RDA MEETING DATE: December 1, 1998 Consideration of Appropriation of Funds for Library Purchases RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: 1- CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Appropriate $77,275 in the Capital Equipment account for library improvements (101- 102-855-000). FISCAL IMPLICATIONS: The contractor providing the shelving, furniture, and other fixtures for the library has provided a quotation of $42,099.22 to equip the La Quinta Library. The quotation also contains two options for book moving/removal and electrification of the circulation desk totaling $1,640. The total quotation is, therefore, $43,750. In addition, there are two additional expenses for which explicit figures are not available at this time. Those items and their estimated costs are: book theft security system ($25,000), and partition wall for work area ($1,500). Staff is recommending a 10% contingency amount bringing the total allocation request for this action to $77,275. Appropriated funds will be offset by a matching payment by the County to the City thereby resulting in no new cost to the City. The County recently sent two letters to the City requesting that the City administer the purchasing for furnishings and fixtures to expedite the library expansion (Attachment No. 1). It is believed by staff that the City can move more expeditiously than the County in ordering the recommended items. As pointed out in the letter and consistent with the spirit and intent of the Memorandum of Understanding (MOU) between the City and County, the County will pay the City, and the City will contract with Burt Gentle Company for fixtures and furnishings. In order to facilitate this, the City will need to appropriate funds within the Fiscal Year 1998-99 budget. A copy of Burt Gentle Company's quotation is attached (Attachment No. 2). 106 The basic request totals $43,750; however, the Council may wish to consider appropriating additional sums as follows: 1. Book theft security system estimated at $25,000 2. Partition walls for work area estimated at $1 _500 TOTAL ESTIMATED APPROPRIATION $70,250 3. 10% contingency amount of $7 025 TOTAL WITH CONTINGENCY $77,275 The appropriation of these additional amounts will allow the City to respond in a quicker fashion to future, potential equipment/furnishings needs. The MOU reserves $363,500 in County money to pay for these one time costs, with any remaining balance of funds being shifted to the City in August 1999. The MOU also provides that any money expended on the library for furnishings, books, equipment and the like are the property of the City of La Quinta if and when the City decides to withdraw from the County Library System. The tenant improvements associated with the expansion are a function of the business negotiations/lease agreement between the County and the landlord of the library building. Staff met with County representatives and the landlord on November 24, 1998 to ensure that the project is moving forward as quickly as possible. Following the City -County -Landlord meeting, County staff met separately with the landlord to further delineate details of the tenant improvement work. Staff will continue to monitor the County's progress in completing the tenant improvement portion of the expansion. FINDINGS AND ALTERNATIVES: The following options are available to the City Council: Appropriate $77,275 in the Capital Equipment account for library improvements; or, 2. Appropriate some alternative amount for specified furnishings at the expanded library; or, 3. Do not appropriate funds for this request; or 4. Provide alternative direction to staff. Britt W. Wilson, Management Analyst City Manager's Office r� 107 Attachments: 1 . Letters from County regarding library purchases 2. Quotation from Burt Gentle Company for library furnishings and fixtures f) L-Lq_ CCSTFFII BRARY$12-01-98.wpd ATTACHMENT 1 Riverside County Executive Office November 20, 1998 Mr. Thomas P. Genovese City Manager City of La Quinta �.. P. O. Box 1504 %0µ La Quinta, CA 9225a� Dear 1�4y enovese: Larry Parrish County Executive Officer As we complete the planning process for the remodel of the La Quinta Library, we are nearly ready to begin ordering the interior library furnishings and equipment and preparing for installation. As we discussed by telephone, I believe that the City's continued involvement in all phases of this project remain critical to its success. Along those lines, I hope that the City will consider managing the overall purchasing process for items related to this remodel. I believe that this approach will foster continued direct involvement by your staff, and ensure that the project is completed within the agreed upon timeline. This arrangement would also be consistent with the cooperative spirit outlined in the Memorandum of Understanding between the City and County (which also gives the City approval over expenditures). The County, under the terms of our MOU, will, of course, be responsible for all costs associated with purchasing the equipment and furnishings. I am confident that by working closely together, we'll complete this important project in a timely and effective manner. Thank you for considering this proposal. Although I will be out of the office next week, please contact Gary Christmas, our County Librarian, regarding this matter. Cordially, 7 THOMAS M. DeSANTIS Deputy County Executive Officer Robert T. Andersen Administrative Center .1-0+ 4090 Lemon Street 0 12th Floor 0 Riverside, California 92501 9 (909) 955-1100 0 FAX (909) 955-1105 Riverside County Executive Office November 20, 1998 Mr. Tom Genovese City Manager City of La Quinta P. O. Box 1504 78-495 Calle Tampico La Quinta, CA 92253 Dear Mr, Genovese: Larry Parrish County Executive Officer I am writing concerning the purchase of library equipment and furnishings for the La Quinta Library. Burt C. Gentle, Company is a library furnishings and design company. The City approved plans (including furniture, shelving, and installation) for the La Quinta Library were developed by Burt C. Gentle Company. As such, they are the sole source for the furnishings and installation for the approved design of the La Quinta Library. The proposed 3M Detection System for library materials for the La Quinta Library is an exclusive patented process of the 3M Corporation. Therefore, 3M is the sole source for the purchase of the 3M Detection System. If I can be of any further assistance, please contact me directly. Sincerely, Gary M. Christmas County Librarian Robert T. Andersen Administrative Center 4080 Lemon Street 0 12th Floor 0 Riverside, California 92501 0 (909) 955-1100 0 FAX (909) 955-1105 Quotation To: INGENE I QUOTATION COUNTY OF RIVERSIDE 4080 Lemon Street 12'h Floor Riverside, CA 92501 Burt C. Gentle Co., Inc. Quote No.: Q-12081-CY Date: 11-12-98 Protect "AtUr: Gary Christmas La Quinla B.L. SCOPE OF WORK ATTACHMENT 2 A. REMOVAL & REINSTALLATION OF EXISTING SHELVING AS FOLLOWS: 20 DF 84" x 36"x 10"/20" 17 SF 84" x 36" x 12" 6 SF 84" x 36" x 12" 8 SF 66" x 36" x 12" 4 DF 42" x 36" x 12"/24" 7 DF 42" x 36" X 12"/24" 62 Sections Standard Standard Hinged Periodical Standard Standard Divider TOTAL-5 Days Installation: $ 4,250.00 Book removal only: Add $850.00 B. CIRCULATION DESK 8 Units Custom Desk per Dwg. Q-12081 C-5 to include: 2 pencil drawers 2 drawer pedestals 2 CPU boxes 1 depressible book truck (@ book return unit) Desk to have wood veneers at vertical panels, HPL @ horizontal surfaces and solid wood edge band at exposed edges. TOTAL, Delivered, Installed, Inc[. Sales Tax: $12,950.00 Electrification of Desk: Add $790.00 C. FURNISHINGS -CUSTOM BUILT 1. I 6-Position Hex Shaped Computer Workstation Sitting, 3,200.00 3,200.00 Standing or ADA accessible. Wood veneer vertical panels HPL horizontal surface and solid oak or maple wood edge band. 2. 3 Computer Workstation C<u'rels 520.00 1,560.00 Full panel style; Shelf above or below worksurface. 36" W x 30"D x 29"/48"H TERMS & CONDITIONS Shipment: 6 to 12 Weeks A.R.O. Installation: Added t t 1 Payment: 30%Deposit/Balauce Net Design Standutd. M:ilch Exisling Tax: Added Material Finish: Mfgr's Standards Freight: Added Color: Mfgrs. Standards Pg 1 Of 3 3002 Dow Avenue, Suite 408, Tustin, CA 92780-7236 (714) 730-3650 FAX (714) 730-3931 —' Quotation To: QUOTATION COUNTY OF RIVERSIDE 4080 Lemon Street 12a' Floor Riverside, CA 92501 Burt C. Gentle Co., Inc. Quote No.: Q-12081-CY Date: 11-12-98 Protect La Quinla B.L. Alin: Gary Clu•istmas SCOPE OF WORK 3. 4 Shelving Range Ends -PAC Stations 495.00 1,980.00 21"W x 24"D x39"/80"H Side panels and wire management from shelf to floor. Wood venccer or vertical panels, HPL @ horizontal surface and wood edge band on exposed edges. 4. 1 Rectangular Table to tnalch existing style. 510.00 510.00 36"W x 72"L x 29"H 5. 9 Side Chairs -Leg or Sled base 120.00 1,080.00 Upholstered seat and back. Gr 1. Adult or Juvenile licigkts. Style No: Jasper 173-USB 6. 1 Lot HPL Ends, Tops, and fillers @ shelving 4,810.00 4,810.00 4 84" x 21" HPL End Panels 7 42" x 25" HPL End Panels 8 84" x l 1" HPL End Parcels 2 84" x 13" HPL End Panels 2 66" x 13" HPL End Panels 2 84"xII"/13" Corner Fillers 1 66" x 13" Corner Fillers 1 66" x 25" Int. Filler 1 84" x 120"L Back Panel-Slatwall or fabric backed 3 108" x 25" Canopy Top 1 144" x 25" Canopy Top 1 73" x 14" Canopy Top 1 288" x 14" Canopy Top 1 252" x 14" Canopy Top 27 pr. Wood Canopy Top Brackets TERMS & CONDITIONS Shipment: 6 to 12 Weeks A.R.O. Installation: Added 1 Payment. 30%DcpusillBalattcc Net Doalyii Glnttdwd. WIL11 LxlSliug Tax: Added Material Finish: Mfgr's Slaudards Freight: Added Color: Mf rs. Standards Oi Pg 2 3 3002 Dow Avenue, Suite 408, Tustin, CA 92780-7236 (714) 730-3650 FAX (714) 730-3931 Q !� I Quotation To: QUOTATION COUNTY OF RIVERSIDE NPVMF'Mi 4080 Lemon Street m Burt C. Gentle Quote No.: Q-12081-CY Date: 11-12-98 12 Floor Riverside, CA 92501 CO., Inc. Project Attu: Gary Christmas La Quinta B.L. SCOPE OF WORK 7. New Shelving to consist of the following: 3,775.00 3,775.00 8 Sections DF Shelving -Standard 84"H x 36"W x 10"/20"D Six openings. 7 Sections SF Shelving -Divider Type 42"H x 36"W x 12"D Three openings. $16,915.00 Material -PART C: 7.75% Sales Tax: 1,310.91 Freight: 1,100.00 Installation: 650.00 PART C -- TOTAL: $19,975.00 D. REFINISHING OF EXISTING 1, 4 Lounge Chairs -Reupholster and touch-up wood. Upholstery = Gr 1 2. 26 Side chairs -Reupholster and touch-up wood. Upholstery Gr 1 3. 3 Rectangular Tables 30"/36"W x 60"L 4. 2 Round Tables 42" Dia. x 27"H 5. 1 Rectangular Table 36"W x 90" 160.00 640.00 60.00 1,560.00 275.00 825.00 275.00 550.00 300.00 300.00 Material: $ 3.875.00 7.75% Sales Tax: 300.31 Transporting: 749.00 PART D-TOTAL: $ 4,923.31 GRAND TOTAL: $42,099.22 6 to 12 Weeks A.R.O. TERMS & CONDITIONS Added Shipment: 30% Deposit/Balancc Net Installation: Dosign Stondnnf Match Existing Mfl,r's tihlnd,uds 112 Payment: Added Added Material Finish: Mfgrs. Standards Tax: Freight: Color: Pg 01 3 3002 Dow Avenue, Suite 408, Tustin, CA 92780-7236 (714) 730-3650 FAX (714) 730-3931 (-1'1,Q REPORT/INFORMATIONAL ITEM: .A CULTURAL ARTS COMMISSION MINUTES October 8, 1998 I. CALL TO ORDER A regular meeting of the Cultural Arts Commission was called to order at 7:02 p.m. in the Study Session Room of the La Quinta Civic Center. Chairperson Hull presided over the meeting. Commissioner Benay led the Pledge of Allegiance. MEMBERS PRESENT: Commissioner Susan Benay Commissioner Charrie Chappie Commissioner Kathryn Hull (Chairperson) Commissioner Elaine Reynolds Commissioner Rosita Shamis (Vice Chairperson) Commissioner Judy Vossler Commissioner Patrick Welch STAFF PRESENT: Dodie Horvitz, Community Services Director Cristal Spidell, Secretary II. PUBLIC COMMENT - None III. CONFIRMATION OF AGENDA IV. CONSENT CALENDAR A. Approval of Minutes of September 10, 1998 The spelling of Alber DeMatteis's name was corrected. It was moved by Commissioner Reynolds/Benay to accept the Minutes of September 10, 1998 as corrected. Unanimous. B. Financial Report - A break down of the Financial Report will be discussed in detail next month. V. PUBLIC HEARING - None VI. BUSINESS ITEMS A. Artist Participation Day The date and time set for Artist Participation Day at La Quinta High School is Wednesday, October 28"' from 9:49 to 11:49 a.m. The La Quinta Middle School will be on Thursday, October 29"' from 9:40 to 11:30 a.m. Commissioner Shamis indicated that a letter needs to be sent to each of the artists to thank them for participating, reminding them of the dates and times, and to invite them to lunch after the program. After a brief discussion it was decided that lunch will be at the La Quinta Resort. Commissioner Shamis suggested inviting the City Council members to Artist Participation Day. Ms. Horvitz will put an article in the La Quinta Post and the Chamber Newsletter regarding the event. It was moved by Commissioner Reynolds/Shamis to take the artists to lunch at the La Quinta Resort after the program to thank them for participating. 113 C:\MyData\CRISTAL\CAC\CACMINIO-8.wpd B. City Council Action on Work Plan Staff reviewed City Council's action on the Work Plan. The City Council made a number of changes, and scaled down the plan in some areas. The Council then sent the Work Plan back to staff to make the changes. The Commission reviewed the Work Plan in its entirety and staff will add the amount of staff time involved for each task. After various changes were made to the Work Plan it was moved by Commissioner Vossler/Reynolds to accept the Work Plan with the changes discussed, and directed staff to forward it to the City Council for consideration and approval. Unanimous. C. Software Update Commissioner Chappie told the Commission that she had spoken with John Nagus from Palm Desert regarding a software program for the City of La Quinta's Artist Bank. Mr. Nagus recommended Microsoft Access for the art bank. Commissioner Chappie said that Mr. Nagus has offered to share his artist information with us, and that she will speak with Victoria from San Diego regarding her art bank information. It was moved by Commissioner Benay/Welch to use Microsoft Access as the software for the artist bank. Unanimous. It was moved by Commissioner Chappie/Reynolds to purchase Microsoft Access software using Art in Public Places funds in the amount of $549 for software, plus tax. Unanimous. VII. CORRESPONDENCE AND WRITTEN MATERIALS A. Coachella Valley Public Arts Advocates Meeting Summary Report - Hull B. Letter from Jeannie Jaros "A Delighted Fan" C. Update on City Monuments D. Process for Developer and Commission in Artwork Purchase E. La Quinta Historical Society Request The above items were received and filed. Vill. COMMISSIONER ITEMS Chairperson Hull congratulated Commissioner Vossler on her article in the Desert Sun on September 27, 1998. She also announced that the art at Washington & Highway 111 is being redone. Commissioner Welch stated that he would like the Commission to be included in the process. Chairperson Hull read the Proclamation signed by Mayor Pena in honor of National Arts and Humanities Month. Commissioner Benay shared with the Commission a brochure she had received from San Diego. Commissioner Vossler left at this time (8:40 PM) 4 C:\MyData\CRISTAL\CAC\CACMINIO-8.wpd 2 Chairperson Hull asked about the bus stops in La Quinta and the Commission's involvement. Staff will address this at the next meeting. Chairperson Hull noted that there are only two parts in the La Quinta General Plan that discusses culture, and she added that the Community Development Department is not incorporating culture in the General Plan. Commissioner Shamis asked about getting Planning Commission Minutes. The Commissioners were informed that if they wish to receive Planning Commission Minutes they would need to supply the Community Development Department with 9x12 self addressed envelopes with .52 cents postage on each envelope, and they would be mailed to them. Ms. Horvitz informed the Commission that the subscription to Arts Wire is $100 per year. Ms. Horvitz showed the Commission the Cultural District book that was purchased for $32. The Commission decided not to order a second one. IX. ADJOURNMENT It was moved by Commissioner Benay/Welch to adjourn the Cultural Arts Commission meeting. Motion carried unanimously. Meeting adjourned at 8:51 p.m.. NEXT MEETING INFORMATION November 12, 1998 7:00 PM La Quinta Civic Center Study Session Room • Break down of Financial Statement • Art Placement • Temporary Art Contract • Governor's Art Conference • Bus Stops • La Quinta Arts Foundation New Project • La Quinta Arts Foundation Bear Creek Trail Art Piece 115 C:\MyData\CRISTAL\CAC\CACMINIO-8.wpd 3 DEPARTMENT REPORT: A -I c&t,, 4 F Ox �IIiH►K�V V � FP yOFTN� TO: The Honorable Mayor and Members of the City Council FROM: Thomas P. Genovese, City Manager DATE: December 1, 1998 RE: Department Report-Response(s) to Public Comment The following is a response to a public comment made at the November 17, 1998 City Council meeting: Mr. Ernest Vincent representing Century Crowell Communities spoke regarding the denial of his company's pre -application for an assessment district. • No response necessary; the item has been scheduled for consideration by the City Council on December 1, 1998. 116 PUBLIC 12-01-98.wpd DEPARTMENT REPORT: C , r CITY COUNCILS UP-COMTNG EVENTS NOVEMBER 28-29 SKINS GAME NOVEMBER 30 BIA PUBLIC OFFICIALS LUNCH AT LA PINATA DECEMBER 1 CITY COUNCIL MEETING DECEMBER 2 HISTORICAL SOCIETY HOLIDAY TEA AT MONTANAS DECEMBER 4 MAINSTREET MARKETPLACE DECEMBER 6 LA QUINTA HISTORICAL SOCIETY TOUR - 1 1:00 AM DECEMBER 7 CHAMBER'S TOYS FOR TOTS AT THE CLIFFHOUSE DECEMBER 8 CVB HOLIDAY BUSINESS RECEPTION DECEMBER 10 CITY'S HOLIDAY OPEN HOUSE DECEMBER 10 LA QUINTA ARTS FOUNDATION HOLIDAY MIXER DECEMBER 15 CITY COUNCIL MEETING DECEMBER 16 CHAMBER MIXER AT PGA WEST DECEMBER 16-19 LEXUS CHALLENGE 117 JANUARY 5 CITY COUNCIL MEETING JANUARY 7 MAYOR'S LUNCHEON JANUARY 10 LA QUINTA HISTORICAL SOCIETY TOUR JANUARY 18-24 BOB HOPE CHRYSLER CLASSIC FEBRUARY 5 MAINSTREET MARKETPLACE FEBRUARY 20 HISTORICAL SOCIETY'S ANNIVERSARY GALA FEBRUARY 20 SOROPTIMIST CLUB HEALTH WALK MARCH 4 MAYOR'S LUNCHEON MARCH 5 MAINSTREET MARKETPLACE MARCH 6 BOYS & GIRLS CLUB AUCTION AT HYATT GRAND CHAMPIONS MARCH 18-21 LA QUINTA ARTS FESTIVAL APRIL 10-1 1 GREATER COACHELLA VALLEY SOAP BOX DERBY Updated: November 25, 1998 118 DECEMBER 1998 CITY EVENTS CALENDAR .. ... .. .. .. .. .. .. 1 2 3 4 S ovem er 2:00 PM City S MT W T F S Council 1 s 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 6 7 8 9 10 I1 12 7:00 PM CV Mos- 5:30 PM Invest- 12:00 PM CVAG Employee Recog- quito Abate. ment Advisory Energy/Env. - nition Dinner -Perkins Board - Sniff 7:00 PM Planning Canceled 12:00 PM Holidi- Commission ay Open House 7:00 PM Cultural Arts Commission 13 14 15 16 17 18 19 2:00 PM City 4:00 PM Desert 3:30 PM Historic Council Resorts Region- Preservation CVB - Henderson al. Airpt. - Commission Henderson 20 21 22 23 24 25 26 10:00 AM CVAG - Public Safety - 7:00 PM Planning Commission CHRIST- CITY HOLIDAY Perkins MAS DAY 12:00 PM CVAG - Transp. - Perkins 27 28 29 30 31 6:00 PM CVAG - Exec. Com. Pena anuary S M T W T F S - T3 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Printed by Calendar Creator Plus on 11/25/98 M BUSINESS SESSION: COUNCIL/RDA MEETING DATE: December 1, 1998 CONSENT CALENDAR: ITEM TITLE: STUDY SESSION: Public Hearing on Tentative Tract Map 29004 to re - subdivide 3.75 acres within Tract 28149 into 11 PUBLIC HEARING: single family lots and 3 common lots, located along the east side of Southern Hills at Oakmont, within PGA West. Applicant: KSL Land Corporation RECOMMENDATION: Adopt City Council Resolution approving Tentative Tract Map 29004, subject to findings and Conditions of Approval. FISCAL IMPLICATIONS: None. BACKGROUND: Proposed Tentative Tract Map 29004 is within PGA West- Specific Plan 83-002. The Specific Plan allows for a total residential unit count of 5,000. There are approximately 1,750 existing residential units within the Specific Plan area. The site area was previously graded as part of improvement work for Tract 28149. The location of the proposed project is shown at Attachment 1. Project Request Tentative Tract Map 29004, as depicted in Attachment 2, proposes to subdivide nine recorded residential lots (Lots 58-67) within Tract 28149 into 11 residential lots and two "green belt" Lots B and C. The total acreage involved in this request is 3.75 acres. The proposed lots range in size from approximately 9,104 square feet (residential Lot 7) to 20,606 (green belt Lot B) square feet, with the average being 10,558 square feet. Minimum lot widths would be 60 feet and are proposed to accommodate the Ryder unit design. The Ryder units (2,065 s.f. to 2,380 s.f.) were approved in 1995 under the compatibility review process. The lots front onto Big Spring, which is a short loop street, and Southern Hills, both of which are private streets. All lots back onto an existing golf course fairway/lake hazard (8`h hole, Nicklaus Resort Course). P:\CC29004\ccrptTT29004.wpd Southern Hills is an existing improved private street, while Big Spring is currently a recorded but unimproved street segment. Neither Lot B or C is designated as a community pool lot on the proposed tentative map. In reviewing Tracts 28149 and 28776, of which this application is a portion, pool lots have been provided for to the north of the subject tract. KSL has indicated that Lots B and C will be landscaped common areas. Public Notice This proposal was advertised in the Desert Sun newspaper on October 29, 1998. All property owners within the PGA West Specific Plan area were mailed a copy of the public hearing notice, which exceeds the requirements under the Subdivision Ordinance of the La Quinta Municipal Code. At time of this report's preparation, no written comments had been received. Any correspondence received before the meeting will be given to the City Council. Public Agency Review Staff mailed a copy of the applicant's request to responsible public agencies on September 18, 1998. All written comments received are on file with the Community Development Department. All agency comments received have been made part of the Conditions of Approval for this case, to the extent they are applicable. Planning Commission Action At the November 10, 1998 Planning Commission meeting, there were no questions or concerns expressed by the Commissioners, and there was no opposition expressed on the requested subdivision during the public hearing. On a 5 - 0 vote, the Planning Commission adopted Resolution 98-76, recommending approval of the proposed tentative tract map based upon the findings in the attached resolution and subject to conditions. The draft minutes of the November 10, 1998 Planning Commission meeting are included as Attachment 3. FINDINGS AND ALTERNATIVES: Statement of Issues Based on the provisions of the La Quinta General Plan, PGA West Specific Plan (SP 83- 002; Amended #3), and the La Quinta Zoning and Subdivision Ordinances, the following overview of the project is provided: 1 f 1, P:\CC29004\ccrptTT29004.wpd Issue 1 - General Plan and Specific Plan Consistency The General Plan designates the site as Low Density Residential (2-4 units per acre) which allows single family uses (e.g., attached or detached housing units). Tentative Tract 29004 would increase the lot count by three residential lots previously approved with Tract 28776. The lots proposed meet or exceed the minimum standards set forth in the SPR provisions of the PGA West Specific Plan. As proposed, development of Tentative Tract Map 29004 is consistent with the General Plan, Specific Plan 83-002, as amended, and the applicable RL Zoning District development standards. Issue 2 - Tract Design/Improvements The design of private interior streets and the proposed residential and lettered lots are essentially the same as provided for in the previous tract approvals referred to. The overall tract design is consistent with standards of the General Plan, Specific Plan 83- 002 as amended, and the Subdivision Ordinance. Street and other infrastructure improvements will be installed to service the proposed subdivision. Impacts associated with development of the project shall be mitigated through adherence to the recommended conditions. Issue 3 - Health and Safety Necessary infrastructure improvements for this project have been partially installed within the Tentative Tract Map 29004 project area. These include water, sewer, streets, and other necessary improvements. The health, safety and welfare of current and future residents can be assured based on the recommended conditions, which serve to address the previous assessment of these issues in the Environmental Impact Report certified for Specific Plan 83-002, as amended. Issue 4- Environmental Impacts Proposed Tentative Tract Map 29004 will create 11 total residential lots over an area previously mapped for eight residential lots. This incremental increase in the number of lots will not have any measurable impact when considered on a cumulative basis with the overall PGA West development, as it is approved for 5,000 units with only about 1,750 developed to date. Mitigation measures adopted with the Environmental Impact Report prepared for Specific Plan 83-002 have been incorporated as conditions of approval where appropriate. P:\CC29004\ccrptTT29004.wpd Options available to the Council are: 1 . Approve Tentative Tract Map 29004, subject to the findings and Conditions of Approval; 2. Deny Tentative Tract Map 29004, subject to findings; or, 3. Provide alternate direction to staff. Hermn munity Development Director Attachments: 1 . Location Map 2. TT 29004, reduced Exhibit 3. Draft Planning Commission Minutes; November 10, 1998 i123 P:\CC29004\ccrptTT29004.wpd RESOLUTION 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING TENTATIVE TRACT MAP 29004 TO SUBDIVIDE 3.75 ACRES INTO 11 SINGLE FAMILY LOTS AND THREE COMMON LOTS, LOCATED ALONG THE EAST SIDE SOUTHERN HILLS AT ITS INTERSECTION WITH OAKMONT, WITHIN PGA WEST CASE NO: TENTATIVE TRACT MAP 29004 KSL LAND CORPORATION WHEREAS, The City Council of the City of La Quinta, California, did on the 1" day of December, 1998, hold a duly noticed Public Hearing to consider a request by KSL Land Corporation to create 11 single-family lots and three common lots on 3.75 acres, along the east side of Southern Hills and Big Spring, within PGA West; more particularly described as: Lots D, F, and 58 through 67 of Tract 28149, Book 257/008 of Maps WHEREAS, the Planning Commission of the City of La Quinta, California did, on the 10th day of November, 1998, hold a duly -noticed Public Hearing to consider Tentative Tract 29004, and did unanimously recommend, by Resolution 98- 76, conditional approval by the City Council; and, WHEREAS, said Tentative Tract Map is exempt from the California Environmental Quality Act (CEQA) per Public Resources Government Code Section 65457(a) and 15182, as an Environmental Impact Report (SCH# 83062922), prepared for Specific Plan 83-002, was certified by the City Council in 1984, and no changed circumstances or conditions exist which would trigger the preparation of a subsequent environmental analysis pursuant to Public Resources Code Section 21 166; and, WHEREAS, at the Public Hearing upon hearing and considering all testimony and arguments of all interested persons desiring to be heard, said City Council did make the following mandatory findings to justify approval of said Tentative Tract Map: The proposed Tentative Tract Map 29004 is consistent with the La Quinta General Plan and the PGA West Specific Plan, in that the subdivision will result in the development of single family residences, within a gated community, and will not affect overall density provisions as established. Overall, the proposed subdivision will only add 11 lots to the existing 1,750 units, well below the approved total of 5,000 units. Tentative Tract Map 29004 is consistent with current standards of the Municipal Zoning Code, RL Zoning District, and PGA West Specific Plan. This subdivision proposes lot sizes greater than the 7,200 square -foot minimum required by the RL Zoning District, and larger than the Specific Plan's SPR minimum requirement of 6,500 square feet. 124 P: \CC29004\ccresTT29004. wpd Resolution 98 - _ Tentative Tract Map 29004 2. The design and improvements for Tentative Tract Map 29004 is consistent with the La Quinta General Plan and the PGA West Specific Plan, in that all proposed lots meet the required dimensions, with the smallest lot size being 9,104 square feet. The design of the private interior streets and the proposed residential and lettered lots are consistent with those approved and existing within the Specific Plan area. 3. The design of Tentative Tract Map 29004, and the proposed improvements, are not likely to cause substantial environmental damage, or substantially, and unavoidably injure fish or wildlife, or their habitat, in that Environmental Impact Report (SCH# 83062922) was certified in May, 1984 by the City Council for the PGA West Specific Plan (Specific Plan 83-002), in which Tentative Tract Map 29004 is located, and there are no changed circumstances or conditions proposed with Tentative Tract Map 29004 which would trigger the preparation of any subsequent environmental analysis. Tentative Tract Map 29004 has also been determined to be exempt from CEQA under Public Resources Government Code Section 65457(a). 4. The design of Tentative Tract Map 29004 and related improvements are not likely to cause serious public health problems, in that the Fire Department and the City's Building & Safety Department have reviewed the project for these issues with no significant concerns identified. Necessary infrastructure improvements for this project have been partially installed within PGA West, in and around the Tentative Tract Map 29004 project area. The health, safety and welfare of current and future residents can be assured based on the recommended conditions, which serve to address the previous assessment of these issues in the Environmental Impact Report certified for Specific Plan 83- 002, as amended. 5. There is no evidence to show that State -mandated school fees will not be adequate to address impacts to school facilities, in that Tentative Tract Map 29004 as proposed will be required to pay these fees for each unit, whether or not school -age children ultimately reside within those units. 6. The design of, and type of improvements for, Tentative Tract Map 29004 will not conflict with easements, acquired by the public at large, for access through, or use of, property within the subdivision, as the proposed subdivision has been reviewed for these issues with no concerns identified. The map design includes provisions for access, utility and other public easements as determined necessary during review of the proposal. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California as follows: P:\CC29004\ccresTT29004. wpd Resolution 98 - _ Tentative Tract Map 29004 1. That the above recitations are true and correct and constitute the findings of the City Council in this case; 2. That it does hereby approve the above -described Tentative Tract Map 29004, for the reasons set forth in this Resolution, subject to the attached Conditions of Approval. PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City Council, held on this 1" day of December, 1998, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: JOHN J. PENA, Mayor City of La Quinta, California ATTEST: SAUNDRA L. JUHOLA, City Clerk City of La Quinta, California APPROVED AS TO FORM: DAWN C. HONEYWELL, City Attorney City of La Quinta, California P:\CC29004\ccresTT29004.wpd s. CITY COUNCIL RESOLUTION 98 - CONDITIONS OF APPROVAL - RECOMMENDED TENTATIVE TRACT MAP 29004 - KSL LAND CORPORATION DECEMBER 1, 1998 GENERAL CONDITIONS OF APPROVAL Upon their approval by the City Council, the City Clerk is directed to file these Conditions of Approval with the Riverside County Recorder for recordation against the properties to which they apply. 2. Subdivider agrees to indemnify, defend and hold harmless the City of La Quinta in the event of any legal claim or litigation arising out of the City's approval of this project. The City of La Quinta shall have sole discretion in selecting its defense counsel. The City shall promptly notify the subdivider of any claim, action or proceeding and shall cooperate fully in the defense. 3. Tentative Tract Map 29004 shall comply with the requirements and standards of § § 66410-66499.58 of the California Government Code (the Subdivision Map Act) and Title 13 (Subdivision Ordinance) of the La Quinta Municipal Code (LQMC) unless otherwise modified by the following conditions. This map approval shall remain valid in accordance with the requirements of Section 13.12.150 of the Subdivision Ordinance. 4. Prior to the issuance of a grading permit or building permit for construction of any building or use contemplated by this approval, the applicant shall obtain permits and/or clearances from the following public agencies: • Fire Marshal • Public Works Department (Grading Permits, Improvement Permits) • Community Development Department • Riverside Co. Environmental Health Department • Coachella Valley Unified School District • Coachella Valley Water District • Imperial Irrigation District • California Regional Water Quality Control Board (NPDES Permit) The applicant is responsible for any requirements of the permits or clearances from those jurisdictions. If the requirements include approval of improvement plans, applicant shall furnish proof of said approvals prior to obtaining City approval of the plans. P:\CC29004\cccoaTT29004.wpd �' Resolution 98 - Conditions of Approval - Recommended Tentative Tract Map 29004 - KSL Land Corporation December 1, 1998 The applicant shall comply with applicable provisions of the City's NPDES stormwater discharge permit. For projects requiring project -specific NPDES construction permits, the applicant shall submit a copy of the Notice of Intent received from the CRWQCB prior to issuance of a grading or site construction permit. The applicant shall ensure that the required Storm Water Pollution Protection Plan is available for inspection at the project site. PROPERTY RIGHTS 5. All easements, rights of way and other property rights required of the tentative map or otherwise necessary to facilitate the ultimate use of the development and functioning of improvements shall be dedicated, granted or otherwise conferred, prior to approval of a final map or parcel map or a waiver of parcel map. Conferrals shall include irrevocable offers to dedicate or grant easements to the City for emergency vehicles and for access to and maintenance, construction, and reconstruction of essential improvements located on street, drainage or common lots or within utility and drainage easements. 6. If the applicant proposes vacation or abandonment of any existing rights of way or access easements which will diminish access rights to any properties owned by others, the applicant shall provide approved alternate rights of way or access easements to those properties or notarized letters of consent from the property owners. 7. The applicant shall maintain all existing easements and street lots unless otherwise approved by the City Engineer. 8. The applicant shall cause no easements to be granted or recorded over any portion of this property between the date of approval by the City Council and the date of recording of any final map(s) covering the same portion of the property unless such easements are approved by the City Engineer. FINAL MAPS) AND PARCEL MAPS) 9. Prior to approval of a final map, the applicant shall furnish accurate AutoCad files of the complete map, as approved by the City's map checker, on storage media and in a program format acceptable to the City Engineer. The files shall utilize standard AutoCad menu items so they may be fully retrieved into a basic AutoCad program. 1' P:\CC29004\cccoaTT29004.wpd Resolution 98 - Conditions of Approval - Recommended Tentative Tract Map 29004 - KSL Land Corporation December 1, 1998 If the map was not produced in AutoCad or a file format which can be converted to AutoCad, the City Engineer may. accept raster -image files of the map. IMPROVEMENT PLANS 10. Improvement plans submitted to the City for plan checking shall be submitted on 24" x 36" media in the categories of "Rough Grading," "Precise Grading," "Streets & Drainage," and "Landscaping." All plans except precise grading plans shall have signature blocks for the City Engineer. Precise grading plans shall have signature blocks for Community Development Director and the Building Official. Plans are not approved for construction until they are signed. "Streets and Drainage" plans shall normally include signals, sidewalks, bike paths, gates and entryways, and parking lots. "Landscaping" plans shall normally include landscape improvements, irrigation, lighting, and perimeter walls. Plans for improvements not listed above shall be in formats approved by the City Engineer. 11. The City may maintain standard plans, details and/or construction notes for elements of construction. For a fee established by City resolution, the applicant may acquire standard plan and/or detail sheets from the City. 12. When final plans are approved by the City, the applicant shall furnish accurate AutoCad files of the complete, approved plans on storage media acceptable to the City Engineer. The files shall utilize standard AutoCad menu items so they may be fully retrieved into a basic AutoCad program. At the completion of construction and prior to final acceptance of improvements, the applicant shall update the files to reflect as -constructed conditions. If the plans were not produced in AutoCad or a file format which can be converted to AutoCad, the City Engineer may accept raster -image files of the plans. IMPROVEMENT AGREEMENT 13. The applicant shall construct improvements and/or satisfy obligations, or furnish an executed, secured agreement to construct improvements and/or satisfy obligations required by the City prior to approval of a final map or parcel map or issuance of a certificate of compliance for a waived parcel map. For secured agreements, security provided, and the release thereof, shall conform with Title 13, LQMC. P:\CC29004\cccoaTT29004.wpd 4- Resolution 98 - Conditions of Approval - Recommended Tentative Tract Map 29004 - KSL Land Corporation December 1, 1998 Improvements to be made or agreed to shall include removal of any existing structures or obstructions which are not part of the proposed improvements. 14. If improvements are secured, the applicant shall provide estimates of improvement costs for checking and approval by the City Engineer. Estimates shall comply with the schedule of unit costs adopted by City resolution or ordinance. For items not listed in the City's schedule, estimates shall meet the approval of the City Engineer. Estimates for utilities and other improvements under the jurisdiction of other agencies shall be approved by those agencies. Security is not required for telephone, gas, or T.V. cable improvements. However, tract improvements shall not be agendized for final acceptance until the City receives confirmation from the telephone authority that the applicant has met all requirements for telephone service to lots within the development. 15. If improvements are phased with multiple final maps or other administrative approvals (plot plans, conditional use permits, etc.), off -site improvements and common improvements (e.g., retention basins, perimeter walls & landscaping, gates) shall be constructed or secured prior to approval of the first phase unless otherwise approved by the City Engineer. Improvements and obligations required of each phase shall be completed and satisfied prior to completion of homes or occupancy of permanent buildings within the phase and subsequent phases unless a construction phasing plan is approved by the City Engineer. 16. If the applicant fails to construct improvements or satisfy obligations in a timely manner or as specified in an approved phasing plan, the City shall have the right to halt issuance of building permits or final building inspections or otherwise withhold approvals related to the development of the project until the applicant makes satisfactory progress on the improvements or obligations or has made other arrangements satisfactory to the City. GRADING 17. Graded, undeveloped land shall be maintained to prevent dust and blowsand nuisances. The land shall be planted with interim landscaping or provided with other wind and water erosion control measures approved by the Community Development and Public Works Departments. 130 P:\CC29004\cccoaTT29004.wpd Resolution 98 - Conditions of Approval - Recommended Tentative Tract Map 29004 - KSL Land Corporation December 1, 1998 18. Prior to occupation of the project site for construction purposes, the Applicant shall submit and receive approval of a fugitive dust control plan prepared in accordance with Chapter 6.16, LQMC. The Applicant shall furnish security, in a form acceptable to the city, in an amount sufficient to guarantee compliance with the provisions of the permit. 19. The applicant shall furnish a preliminary geotechnical ("soils") report with the grading plan. 20. The grading plan shall be prepared by a registered civil engineer and must be approved by the City Engineer prior to issuance of a grading permit. The grading plan shall conform with the recommendations of the soils report and shall be certified as adequate by a soils engineer or an engineering geologist. A statement shall appear on final maps (if any are required of this development) that a soils report has been prepared pursuant to Section 17953 of the Health and Safety Code. 21. The applicant shall endeavor to minimize differences in elevation at abutting properties and between separate tracts and lots within this development. Building pad elevations on contiguous lots shall not differ by more than three feet except for lots within a tract, but not sharing common street frontage, where the differential shall not exceed five feet. If compliance with this requirement is impractical, the City will consider and may approve alternatives which minimize safety concerns, maintenance difficulties and neighboring -owner dissatisfaction with the grade differential. 22. Prior to issuance of building permits, the applicant shall provide building pad certifications, stamped and signed by a California registered civil engineer or surveyor. The certifications shall list approved pad elevations, actual elevations, and the difference between the two, if any. The data shall be organized by lot number and shall be listed cumulatively if submitted at different times. DRAINAGE 23. Stormwater and nuisance water handling shall conform with the approved hydrology and drainage plan for the Specific Plan 83-002 area. UTILITIES 25. The applicant shall furnish a plan for utility lateral abandonment and construction and provide approved estimates for the work. P:\CC29004\cccoaTT29004.wpd Resolution 98 - Conditions of Approval - Recommended Tentative Tract Map 29004 - KSL Land Corporation December 1, 1998 26. Where hardscape improvements are planned, underground utility abandonment and construction shall be installed prior to the hardscape. The applicant shall provide certified reports of trench compaction for approval of the City Engineer. STREET AND TRAFFIC IMPROVEMENTS 27. The City is contemplating adoption of a major thoroughfare improvement program. Any property within this development which has not been subdivided in accordance with this tentative map 60 days after the program is in effect shall be subject to the program. 28. The applicant shall install the following street improvements to conform with the General Plan street type noted in parentheses: A. Lot A - 36-foot travel width. Width may be reduced to 32 feet with parking restricted to one side and 28 feet with on -street parking is prohibited if there is adequate off-street parking for residents and visitors and the applicant provides for perpetual enforcement of the restrictions by the homeowners association. Features contained in the approved construction plans may warrant additional street widths as determined by the City Engineer. 29. Improvements shall include appurtenances such as traffic control signs, markings and other devices, and street name signs. 30. Improvements shall be designed and constructed in accordance with the LQMC, adopted standards, supplemental drawings and specifications, and as approved by the City Engineer. Street improvement plans shall be stamped and signed by a California -registered professional engineer. 31. Street right of way geometry for cul-de-sacs, knuckle turns and corner cut -backs shall conform with Riverside County Standard Drawings #800, #801, and #805 respectively unless otherwise approved by the City Engineer. 32. Streets shall have vertical curbs or other approved curb configurations which convey water without ponding and provide lateral containment of dust and residue for street sweeping. Unused curb cuts on any lot shall be restored to normal curbing prior to final inspection of permanent building(s) on the lot. 132 P:\C C29004\cccoaTT29004. wpd Resolution 98 - Conditions of Approval - Recommended Tentative Tract Map 29004 - KSL Land Corporation December 1. 1998 33. The applicant shall design street pavement sections using Caltrans' design procedure (20-year life) and site -specific data for soil strength and anticipated traffic loading (including construction traffic). The minimum structural section (residential) shall be 3.0" a.c./4.50" a.b. 34. The applicant shall submit current mix designs (less than two years old at the time of construction) for base, paving and curb/gutter materials. Submittals shall include test results for all specimens used in the mix design procedure. For mix designs over six months old, the submittal shall include recent (less than six months old at the time of construction) aggregate gradation test results confirming that design gradations can be achieved in current production. The applicant shall not schedule construction operations until mix designs are approved. 35. The City will conduct final inspections of homes and other habitable buildings only when the buildings have improved street and sidewalk access to publicly - maintained streets. The improvements shall include required traffic control devices, pavement markings and street name signs. If on -site streets are initially constructed with partial pavement thickness, the applicant shall complete the pavement prior to final inspections of the last ten percent of homes within the tract or when directed by the City, whichever comes first. LANDSCAPING 36. The applicant shall provide landscaping in common lots. 37. Landscape and irrigation plans shall be signed and stamped by a licensed landscape architect. The applicant shall submit plans for approval by the Community Development Department prior to plan checking by the Public Works Department. When plan checking is complete, the applicant shall obtain the signatures of CVWD and the Riverside County Agricultural Commissioner prior to submitting for signature by the City Engineer. Plans are not approved for construction until signed by the City Engineer. 38. Slopes shall not exceed 5:1 within public rights of way and 3:1 in landscape areas outside the right of way unless otherwise approved by the City Engineer. i a i P:\CC29004\cccoaTT29004.wpd Resolution 98 - Conditions of Approval - Recommended Tentative Tract Map 29004 - KSL Land Corporation December 1, 1998 39. Landscape areas shall have permanent irrigation improvements meeting the requirements of the City Engineer. Use of lawn shall be minimized with no lawn or spray irrigation within 5-feet of curbs along public streets. 40. The applicant shall ensure that landscaping plans and utility plans are coordinated to provide visual screening of above -ground utility structures. QUALITY ASSURANCE 41. The applicant shall employ construction quality -assurance measures which meet the approval of the City Engineer. 42. The applicant shall employ or retain California registered civil engineers, geotechnical engineers, surveyors, or other licensed professionals, as appropriate, to provide sufficient construction supervision to be able to furnish and sign accurate record drawings. 43. The applicant shall arrange and bear the cost of measurement, sampling and testing procedures not included in the City's inspection program but required by the City as evidence that construction materials and methods comply with plans and specifications. Where retention basins are installed, testing shall include a sand filter percolation test, as approved by the City Engineer, after required tract improvements are complete and soils have been permanently stabilized. 44. Upon completion of construction, the applicant shall furnish the City reproducible record drawings of all plans which were signed by the City Engineer. Each sheet shall be clearly marked "Record Drawings," "As -Built" or "As -Constructed" stamped and signed by the engineer or surveyor certifying to the accuracy of the drawings. The applicant shall revise the CAD or raster -image files previously submitted to the City to reflect as -constructed conditions. MAINTENANCE 45. The applicant shall make provisions for continuous, perpetual maintenance of all required improvements. FEES AND DEPOSITS 46. The applicant shall comply with the terms and requirements of the Infrastructure Fee program in effect at the time of issuance of building permits. 13 P:1CC290041cccoaTT29004.wpd Resolution 98 - Conditions of Approval - Recommended Tentative Tract Map 29004 - KSL Land Corporation December 1, 1998 47. The applicant shall pay the City's established fees for plan checking and construction inspection. Fee amounts shall be those in effect when the applicant makes application for plan checking and permits. 48. Prior to approval of a final map or completion of any approval process for modification of boundaries of the property or lots subject to these conditions, the applicant shall process a reapportionment of any bonded assessment(s) against the property and pay the cost of the reapportionment. 49. Plan checking fees shall be paid to the Riverside County Fire Department when plans are submitted for review and approval. FIRE DEPARTMENT CONDITIONS 50. Fire hydrants in accordance with CVWD Standard W-33 shall be located at each street intersection spaced not more than 330 feet apart in any direction with no portion of any lot frontage more than 165 feet from a fire hydrant. Minimum fire flow shall be 1500 gpm for a 2 hour duration at 20 psi. Blue dot reflectors shall be mounted in the middle of streets directly in line with fire hydrants. 51. Applicant/developer will provide written certification from the appropriate water company that the required fire hydrant(s) are either existing or that financial arrangements have been made to provide them. 52. Prior to recordation of the final map, applicant/developer will furnish one blueline copy of the water system plans to the Fire Department for review/approval. Plans will conform to the fire hydrant types, location and spacing, and the system will meet the fire flow requirements. Plans will be signed/approved by a registered civil engineer and the local water company with the following certification: "I certify that the design of the water system is in accordance with the requirements prescribed by the Riverside County Fire Department." 53. The required water system, including fire hydrants, will be installed and accepted by the appropriate water agency prior to any combustible building material being placed on an individual lot. MISCELLANEOUS 54. All public agency letters received for this case are made part of the case file documents and will be referred to for plan checking purposes. 13 P:1CC290041cccoaTT29004.wpd Resolution 98 - Conditions of Approval - Recommended Tentative Tract Map 29004 - KSL Land Corporation December 1. 1998 55. Applicable conditions of Specific Plan 83-002, as amended, shall be met prior to grading and/or building permit issuance. 56. Any on -site signs shall comply with Chapter 9.160 of the City Zoning Code. 57. All temporary on -site facilities are subject to the requirements of Chapter 9.60 of the Zoning Code. 58. Prior to building permit issuance, recreational amenity and landscaping/irrigation plans for Lots B and C shall be submitted for review and approval by the Community Development Department. The final map shall include a statement that these lots are reserved for the intended use of PGA West homeowners as common interest lots. 59. The proposed Ryder house plans have been previously approved for use in PGA West. Any modification, or proposal for use of any unapproved unit type(s) for the tract shall be reviewed by the Planning Commission pursuant to Sections 9.210.010 (Site Development Permits) and/or 9.60-300 (Compatibility Review) of the Zoning Code. lit P:\CC29004\cccoaTT29004.wpd TENTATIVE TRACT NO. 29004 PGA WEST ATTACHMENT 2 I / "t •. rr x: J A A - 1 - '� r y„O , � Low • A[m eaisea m •00 a las e and lmf Ib wop -fun s 1 ' r i !' �✓� ns mrw[w AllO®MlIAA f® nmre�m�® bI11.F IYOOfYIC YA Ow .� AwQAwI V 1Ff L MY i dAR. i lOh4[rOCVMCT 1n i�Y iMl M4 f 1/F. YI Ow00 lOdl LC AM LJ R M Aummm IOn l IIOYI 11 - 10111{ Ipf IMDIIR ->.O! flWnf Nf -\1M! [/YIA 1p _ lyyy f I L1ffmN[ -'� �- mm W-MOWO YWf@011w° _ 4 _ iU1Pl HIIO[w F[ IOwMR IO01Y. - mOt RMY[ ZZ ,Aumm10Of 4 DEfflam ` ® LAND Co.roRkTiox e[�F� 3 V 1 fFw v ww[ a u swA n •mf 6111-1-11"Ir ----------- I;lr-() °° MDS= ATTACHMENT #3 Planning Commission Meeting November 10, 1998 V. PUBLIC HEARINGS: A. Tentative Tract Map 29004; a request of KSL Land Corporation for approval and recommendation to the City Council for an 11 lot single family residential subdivision on 3.75 acres within the PGA West Jack Nicklaus Resort Course area, along the east side of Southern Hills at its intersection with Oakmo 1. Chairman Tyler opened the public hearing an Principal Planner Stan Sawa presente infor; report, a copy of which is on : n the Department. 2. Chairman Tyler asked if the appli Mr. Chris Berg, MDS Consulting, stated he had no objections to the by staff. staff report. i in the staff to address representing'f�ie applicant, ns/conditions as presented 3. There being no furthe it wa d and seconded by Commissioners Abel PI Commission Resolution 98-076 recommend' to the oval of Tentative Tract Map 29004, subject to Findi and s of Approval as submitted. ROLL CALL: AY7NOE'Sm V6foot Butler, Kirk, Robbins, and Chairman Ty NT: None. ABSTAIN: None. B. ite Deve erHall and Foreman, Inc., for Wa1Mart appro foot ansion to Wa1Mart's outside Garden pened the public hearing and requested the staff report. Stan Sawa presented the information contained in the staff of which is on file in the Community Development 2. mmissioner Butler asked if the landscaping issues had not been resolved e d if not, could they be addressed at this time. Planning Manager Christine di Iorio noted the issues had been corrected to staff s satisfaction. 3. There being no further public comment, the public participation portion of the hearing was closed and open for Commission discussion. 4. Chairman Tyler asked if the series of pillars that along the Garden Center would remain. Staff stated it was unknown whether they would be moved or 131 C:\My Documents\WPDOCS\pc11-10-98.wpd 3 c&t,, 4409Arw COUNCIL/RDA MEETING DATE: December 1, 1998 ITEM TITLE: Approval of a specific plan review and amendment to add 20 acres to the project site, reduce the number of dwelling units from 1,060 to 365, revise the layout and circulation, and amend miscellaneous development standards on the north side of Airport Boulevard, between Madison Avenue And Monroe Street. Applicant: KSL Development Corp. RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Adopt City Council Resolution approving Specific Plan 90-015, Amendment #1, subject to findings and conditions; FISCAL IMPLICATIONS: None. BACKGROUND AND OVERVIEW: SITE INFORMATION This Specific Plan is north and east of PGA West (Attachment 1). Presently, the site is partially vacant, and used for plant storage and growing turf. There are two older residences and several miscellaneous structures on the site. The 20 acre site that is being added to the project site was previously approved for a 21 lot subdivision (TT 26768) with access to Monroe Street for Dietrich and Ingrid Werner. That map since expired without being recorded. PROJECT REQUEST This Specific Plan Amendment request is to review the plan and amend it to add 20 acres to the project site, reduce the number of dwelling units from 1,060 to 365, revise the project layout and circulation, and amend miscellaneous development standards. 140 p:\stan\cc rpt sp 90-015 am #1 .wpd The applicants have purchased the 20 acre site on the west side of Monroe Street, approximately 1200 feet north of Airport Boulevard at the northeast corner of the plan area, for inclusion into the project. This site will become part of a golf course in the project. The original Specific Plan allowed 1,060 dwelling units for the original 265 gross acre site (4 dwelling units per gross acre). The amended plan provides for a maximum of 365 dwelling units on 285 gross acres. Of this acreage, approximately 91 acres of the land is designated for residential development, with the balance being golf course and open area. The overall density will be 1.3 dwelling units per acre. Based on the above information, the average lot size will be 10,860 square feet. Other uses proposed in the project site include a clubhouse facility, driving range, maintenance facility, and corporate area, which is intended to be developed with residential uses. Due to the additional land and reduction of dwelling units, the conceptual site design and circulation system has been revised. The vehicular access point on Madison Street and on Airport Boulevard remain, with no access to Monroe Street. The two street entries connect on site as a collector street, with either a loop street or culs-de-sac connecting to it. The clubhouse, driving range, and corporate area are located on the westerly half of the site. The residential areas are spread out and surrounded by the golf course. The revised Specific Plan provides for estate lots, zero lot line lots, and cluster housing lots. The development standards for these lots mimic those in the PGA West Specific Plan (83-002, Amendment #3). For example, all lots are required to be a minimum of 6,500 square feet, with a minimum of 50 feet frontage if on the golf course. Under the original Specific Plan, the minimum lot size required is 7,200 square feet for estate and cluster housing lots, and 5,000 square feet for zero lot line lots. Building height was originally permitted at 2'/2 stories or 35 feet, whichever is greater. The revised height is two stories within 28 feet throughout the project. The Specific plan has a requirement to annually review the plan to ensure that the applicant is demonstrating good faith compliance with the terms of the Specific Plan. The applicant, in amending this plan, shows they are proceeding and showing good faith compliance with the terms of this Specific plan. PUBLIC NOTICE This case was advertised in the Desert Sun on November 5, 1998. All property owners within 500 feet of the boundaries of the project were mailed a copy of the public hearing notice. To date, no correspondence has been received. ENVIRONMENTAL REVIEW The Community Development Department has completed an Environmental Assessment Addendum to the previously certified Environmental Impact Report pursuant to the Guidelines for Implementation of the California Environmental Quality p:\stan\cc rpt sp 90-015 am #1.wpd 141 Act, Section 15304. The Addendum has determined that the amended project will not increase the environmental impacts created by implementation of the amended project (Attachment 2). DISCUSSION OF ISSUES The amendment to the Specific Plan is acceptable with minor revisions as contained in the recommended conditions. The Conditions of Approval have been updated to current requirements and standards. Staff is recommending the "corporate area" be used for residential uses in conformance with the provisions of the Specific Plan. PLANNING COMMISSION REVIEW The Planning Commission reviewed this request at its meeting of October 27, 1998, with some discussion regarding the proposed conditions. The discussion pertained to allowable on -site street widths, the "corporate" area, use of canal water for the golf course and landscape irrigation, and updating of the original specific plan conditions. The Commission on a 4-0 vote, with Commissioner Abels absent, adopted Resolution 98-075, recommending approval subject to amended conditions (Attachment 3). FINDINGS AND ALTERNATIVES: Findings necessary to approve this request can be made and are contained in the attached Resolution. Alternatives available to the City Council are: Approve the request as recommended by the Planning Commission by adoption of the attached resolution; or 2. Continue the request to allow further review and study; 3. Deny the request. RRYkIERMAN, Community Development Director Attachments: 1. Location Map 2. Addendum to the EIR 3. Planning Commission minutes for the meeting of October 27, 1998 14^ p:\stan\cc rpt sp 90-015 am #1 .wpd RESOLUTION 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING AMENDMENT #1 TO SPECIFIC PLAN 90-015 ON THE NORTH SIDE OF AIRPORT BOULEVARD, BETWEEN MADISON AVENUE AND MONROE STREET. SPECIFIC PLAN 90-015, AMENDMENT #1 KSL DEVELOPMENT CORP. WHEREAS, the City Council of the City of La Quinta, California, did on the 1" day of December , 1998, hold a duly noticed Public Hearing to consider the request of KSL DEVELOPMENT CORP., to review and amend the Specific Plan to add 20 acres to the project site, reduce the number of dwelling units from 1,060 to 365, revise the layout and circulation, and amend miscellaneous development standards on the north side of Airport Boulevard, between Madison Avenue and Monroe Street, more particularly described as: A portion of Section 15, T6S, R7E, SBBM WHEREAS, the Planning Commission of the City of La Quinta did on the 27th day of October, 1998, hold a duly noticed public hearing to consider the request to amend the aforementioned Specific Plan; and, WHEREAS, said Specific Plan Amendment has complied with the requirements of "The Rules to Implement the California Environmental Quality Act of 1970" as amended (Resolution 83-68), in that the La Quinta Community Development Department has completed an Environmental Assessment Addendum to the previously certified Environmental Impact Report pursuant to the Guidelines for Implementation of the California Environmental Quality Act, Section 15304. The Addendum has determined that the amended project will not increase the environmental impacts created by implementation of the amended project; and, WHEREAS, at said Public Hearing upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, said City Council did find the following facts and reasons to justify approval of the Specific Plan Amendment: 1 . The proposed Specific Plan Amendment is consistent with the goals and policies of the La Quinta General Plan in that the residential and related uses proposed are consistent with use of the site stipulated in the General Plan. 143 P:\STAN\cc res sp 90-015 am#1.wpd Resolution 98- December 1, 1998 2. The Specific Plan Amendment will not create conditions materially detrimental to the public health, safety, and general welfare in that development allowed under the Specific Plan Amendment is compatible with future surrounding and existing uses. 3. The Specific Plan Amendment will provide land use compatibility with zoning on adjacent properties in that the residential uses are compatible with the adjacent zoning, and the changes proposed will require that uses be reviewed to ensure they are compatible with the surrounding properties. WHEREAS, the Planning Commission does recommend approval of Specific Plan 90-01 5, Amendment #1, by adoption of Resolution 98-075; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of La Quinta, California as follows: 1. That the above recitations are true and correct and constitute the findings of the City Council in this case. 2. That it does hereby confirm the conclusion of the La Quinta Community Development Department that the project needs no further assessment because an Environmental Assessment Addendum has been completed for the previously certified Environmental Impact Report pursuant to the Guidelines for Implementation of the California Environmental Quality Act, Section 15304. The Addendum has determined that the amended project will not increase the environmental impacts created by implementation of the amended project. 3. That it does hereby approve the above -described Amendment request for the reasons set forth in this Resolution. PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City Council held on this 15t day of December, 1998, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: 14.E P:\STAN\cc res sp 90-015 am#1.wpd Resolution 98- December 1, 1998 JOHN J. PENA, Mayor City of La Quinta, California ATTEST: SAUNDRA L. JUHOLA, City Clerk City of La Quinta, California APPROVED AS TO FORM: DAWN C. HONEYWELL, City Attorney City of La Quinta, California P:ISTAN1cc res sp 90-015 am#1.wpd RESOLUTION 98- CONDITIONS OF APPROVAL -RECOMMENDED SPECIFIC PLAN 90-015, AMENDMENT #1 DECEMBER 1, 1998 * Mitigation Measure of Final EIR for SP 90-015 + Condition modified by Planning Commission on 9/10/91 o Condition modified by City Council on 12/3/91 GENERAL CONDITIONS The development shall comply with Specific Plan 90-015, Amendment #1, the Final EIR and the following conditions, which shall take precedence in the event of any conflicts with the provisions of the Specific Plan. 2. Exterior lighting for the project shall comply with the "Dark Sky" Lighting Ordinance. Plans shall be approved by the Community Development Department prior to issuance of a building permit. 3. Prior to issuance of a building permit for construction of any building or use contemplated by this approval, the applicant shall obtain permits and/or clearances from the following agencies: City Fire Marshal - City of La Quinta Public Works Department - Community Development Department - Building and Safety Department - Coachella Valley Water District - Coachella Valley Unified School District - Imperial Irrigation District - Riverside County Road Department of Transportation - California Water Quality Control Board (CWQCB) Evidence of said permits or clearances from the above mentioned agencies shall be presented to the Building and Safety Department at the time of the application for a building permit for the use contemplated herewith. The applicant shall comply with applicable provisions of the City's NPDES Stormwater Discharge Permit. For projects requiring project -specific NPDES construction permits, the applicant shall submit a copy of the Notice of Intent received from the CWQCB prior to issuance of a grading or site construction permit. The applicant shall ensure that the required Storm Water Pollution Protection Plan is available for inspection at the project site. 146 P:\STAN\cc coa sp 90-015 am #1.WPD 1 Planning Commission Resolution 98- Conditions of Approval - Recommended Specific Plan 90-015, Amendment #1 December 1, 1998 4. Provisions shall be made to comply with the terms and requirements of the City's adopted Infrastructure Fee program in effect at the time of issuance of building permits. 5 . Construction shall comply with all local and State building code requirements as determined by the Building and Safety Director. +6. Prior to any initial final tract map approval, the applicant/developer shall prepare an overall plan or program for the provision of comfort station locations for all maintenance employees. This plan/program shall set forth requirements for on - site maintenance employee restroom facilities and how they will be provided for by the homeowner associations' subcontractors, for all contracted landscaping and other maintenance workers. Said plan/program shall indicate methods of providing such facilities, the parties responsible for so doing, and means for enforcement of procedures set forth in the plan/ program. 7. The Planning Commission shall conduct bi-annual reviews of this Specific Plan. During each review by the Commission, the developer/applicant shall be required to demonstrate good faith compliance with the terms of the Specific Plan. The applicant/developer of this project hereby agrees to furnish such evidence of compliance as the City, in the exercise of its reasonable discretion, may require. Evidence of good faith compliance may include, but shall not necessarily be limited to, good faith progress towards implementation of and compliance with the requirements of the Specific Plan. Upon conclusion of the annual review, the Commission may determine that the applicant has made good faith compliance/progress and may set a future review date at their discretion. 8. The applicant/developer shall submit an off -site improvements and on -site buildout phasing schedule and map at time of the first request to approve a final tract or parcel map. This schedule and map shall be subject to review and acceptance by the Public Works Department. 9. Applicant shall have recorded the Street Vacation 91-016 prior to proceeding with any development activity such as grading or subdivision map recordation. ENVIRONMENTAL * 10. All adopted mitigation measures, as recommended in the Draft/Final EIR, shall be incorporated into all future project approvals relating to SP 90-015 where applicable and/or feasible. It is understood that certain measures will not be 14'7 P:\STAN\cc coa sp 90-015 am #1.WPD 2 Planning Commission Resolution 98- Conditions of Approval - Recommended Specific Plan 90-015, Amendment #1 December 1, 1998 applicable to certain site specific proposals, however, all development within the Specific Plan area shall be verified as in conformance with said Specific Plan and the mitigation adopted within the Draft/Final EIR. The Specific Plan Draft and Final EIR shall be used in the review of all project proposals in the SP 90015 area. Said mitigation measures are hereby incorporated into these conditions by reference. +*II. Prior to any site disturbance, the applicant/developer shall initiate a lakebed delineation study, to be based upon the paleontological survey contained in the DEIR as Appendix "G". The study shall determine the extent of the ancient lakebed for purposes of implementing a pre -development data recovery program within the limits of the delineated lakebed. This delineation study shall be submitted to the City for monitoring approved and future area projects. If the developer of this project initiates development activity, then the predevelopment data recovery program shall be undertaken prior to any site disturbance. The applicant/developer may be reimbursed by other area developers within the area defined by the lakebed study. The applicant/developer shall propose a method of reimbursement (such as cost per impacted acre in the lakebed area, etc.) to the City for review/acceptance. Conversely, if other area developer(s) initiate development activity, and are similarly conditioned, this project will be required to reimburse said developers) in accordance with the provisions of a reimbursement program. If the program is undertaken by this project, then paleontological monitoring of grading shall be required for cuts made during construction activity. Full time monitoring shall be required, given the ubiquitous distribution of paleobiological remains on the project site. The mitigating shall be done under the supervision of a qualified vertebrate paleontologist knowledgeable in both paleontological and archaeological sampling techniques. This program shall include a report identifying contact personnel who will be working on -site, the proposed time schedule for grading monitoring, the qualifications of the persons assigned to do such monitoring and the method to be used in reporting on compliance to the City. This report shall be approved by the City prior to the developer authorizing any work on the program itself. * 12. Applicant/Developer shall work with Waste Management of the Desert to implement provisions of AB 939 and AB 1462. The applicant/developer is required to work with Waste Management in setting up the following programs for this project, A. Developer shall prepare a plan to provide enlarged trash enclosures for 148 P:\STAN\cc coa sp 90-015 am #1.WPD 3 Planning Commission Resolution 98- Conditions of Approval - Recommended Specific Plan 90-015, Amendment #1 December 1, 1998 inclusion of separate facilities for storage of recyclables such as glass, plastics, newsprint and aluminum cans. B. Developer shall provide proper on -site storage facilities within the project for green wastes associated with golf course and common area maintenance. Compostable materials shall be stored for pick-up by Waste Management, or an authorized hauler for transport to an appropriate facility. C. Curbside recycling service shall be provided in areas where no centralized trash/recycling bins are provided or utilized. FIRE MARSHAL 13. All water mains and fire hydrants providing the required fire flows shall be constructed in accordance with the appropriate sections of CVWD Std. W33, subject to the approval by the Riverside County Fire Department. 14. All buildings shall be constructed with fire retardant roofing material as described in Section 3203 of the Uniform Building Code. Any wood shingles or shakes shall have a Class "B" rating and shall be approved by the Fire Department prior to installation. 15. The Homeowner's Association or appropriate community service district shall be responsible for the maintenance of the open space areas. Prior to approval of any development plan for lands adjacent to open space areas, a fire protection/vegetation management plan shall be submitted to the Fire Department for approval. 16. Specific access plans shall be submitted to the Fire Department for approval prior to approval of any development plans. COACHELLA VALLEY WATER DISTRICT 17. Specific Plan 90-015 is within Improvement District No. 1 of the Coachella Valley Water District (CVWD) for irrigation water service. Water from the Coachella Canal is available to the area. The developer shall primarily use this water for golf course and landscape irrigation. ELECTRIC UTILITIES 149 P:\STAN\cc coa sp 90-015 am #1.WPD 4 Planning Commission Resolution 98- Conditions of Approval - Recommended Specific Plan 90-015, Amendment #1 December 1, 1998 18. All existing and proposed electric power lines with 12,500 volts or less, which are adjacent to the proposed site or on -site, shall be installed in underground facilities as required by the City and Imperial Irrigation System. Schools * 19. Impacts shall be mitigated in accordance with the provisions of AB 1600, Section 53080 and 65995 of the Government Code or the then existing legislation and/or local ordinances adopted pursuant thereto or any applicable Mitigation Agreement entered into by the developer and the District. RECREATION *20. Applicant/Developer shall pay a parkland mitigation fee based upon a requirement of 3.10 acres, as determined based upon the La Quinta General Plan standards and the analysis in the Staff report for SP 90-015. Determination of this fee shall be accomplished as set forth in Chapter 13.40 of the La Quinta Subdivision Ordinance. TRAFFIC/CIRCULATION IMPROVEMENTS *21. Applicant shall dedicate public street right of way and utility easements in conformance with the City's General Plan, Municipal Code, and as required by the City Engineer, as follows: A. Madison Street - Primary Arterial, 55-foot half width; B. Monroe Street - Primary Arterial, 55-foot half width; C. Airport Boulevard - Primary Arterial, 55-foot half width; The public right of way shall be dedicated by grant deed within 180 days following City Council approval of the Specific Plan. 22. The on -site private streets shall be constructed in 37-foot wide access easements granted to the homeowner's association. 23. Improved landscaped setback lots of noted width adjacent to the following street right of ways shall be constructed with the adjacent street improvements as follows: A. Madison Street, 20-feet wide; 150 P:ISTAN1cc coa so 90-015 am #1.WPD 5 Planning Commission Resolution 98- Conditions of Approval - Recommended Specific Plan 90-015, Amendment #1 December 1, 1998 B. Monroe Street, 25-feet wide. C. Airport Boulevard, 20-feet wide. The Madison Street setback lot shall include provision for an equestrian trail. Design of this trail shall be subject to review and acceptance of the Community Development Department and approval of the Architecture and Landscape Review Committee. 24. Vehicle access rights to Madison Street, Airport Boulevard and Monroe Street shall be vacated except for the two residential access streets on the Circulation Plan in the Specific Plan. 25. Turning movements of traffic accessing the residential Specific Plan areas from adjoining public streets shall be as follows: A. Madison Street Residential Area Main Gate - Full turning movement permitted. B. Airport Boulevard Residential Secondary Gate - Full turning movement permitted. 26. The City is contemplating adoption of a major thoroughfare improvement ordinance which is intended to distribute the improvement cost of major thoroughfare construction evenly and fairly on undeveloped land. If the ordinance is adopted, all land division maps prepared pursuant to this Specific Plan shall be subject to payment of fees, or construction of improvements in lieu of, as setforth in the ordinance, provided the ordinance is adopted 60 (days prior to recordation of the map. The fees shall be paid, or agreed to be paid, prior to recordation of the map.. If in the event, the major thoroughfare improvement ordinance is not adopted, the cost of designing and installing traffic signals on off -site streets shall be as follows: A. Airport Boulevard/Madison Street: 25% fair share responsibility; B. Airport Boulevard/Monroe Street: 25% fair share responsibility; C. Airport Boulevard/Secondary Gate: 100% fair share responsibility; 151 P:4STAN1cc coa so 90-015 am #1.WPD 6 Planning Commission Resolution 98- Conditions of Approval - Recommended Specific Plan 90-015, Amendment #1 December 1, 1998 D. Madison Street/Main Gate: 100% responsibility, unless cost is shared with development across the street to the west. 27. The access location into the residential area on Madison Street shall be not less than 1200 feet from the Airport Boulevard centerline and no less than 1200 feet from the centerline of the existing approved northerly entry into PGA West from Madison Street. The access location into the residential secondary gate on Airport Boulevard shall be not less than 1200 feet from the Madison Street centerline. *28. Bus turnouts and bus waiting shelters shall be provided on Madison Street, Monroe Street, and Airport Boulevard as requested by SunLine Transit when street improvements are installed. Street improvement plans shall be reviewed by SunLine Transit Agency prior to final City approval. + * 29.All street improvements shall be installed in accordance with the General Plan, the La Quinta Municipal Code, adopted Standard Drawings, City Engineer's requirements and shall include all appurtenant components required by same. Miscellaneous incidental improvements and enhancements to existing improvements where joined by the new improvements shall be designed and constructed as required by the City Engineer to assure the new and existing improvements are appropriately integrated to provide a finished product that conforms with City standards and practices. This includes. tapered off -site street transitions that extend beyond specific plan area boundaries and join the widened and existing street sections. The on- and off -site street improvements shall be phased as follows: A. East side of Madison Street north of Airport Boulevard and west half of Airport Boulevard - Secure street and perimeter improvements with first development approval or permit (golf, residential or other use) in the western half of the Specific Plan area. Construct prior to the opening of any permanent access drive in the western half of the S.P. area. The developer may seek City Council approval to defer construction of all or a portion of the improvements on either street until the improvements are warranted or until a permanent access drive is constructed on the street, at the City's discretion. 15? P:ISTAN1cc coa so 90-015 am #1.WPD 7 Planning Commission Resolution 98- Conditions of Approval - Recommended Specific Plan 90-015, Amendment #1 December 1, 1998 B. East half of Airport Boulevard and Monroe Street - Secure street and perimeter improvements with first development approval or permit (golf, residential or other use) in the eastern half of the Specific Plan area. Construct street and perimeter improvements prior to the opening of any permanent non -emergency access drive in the eastern half of the S.P. area or when directed by the City, whichever comes first. The developer may seek City Council approval to defer construction of all or a portion of the improvements on either street until the improvements are warranted or until a permanent access drive is constructed on the street, at the City's discretion. C. Perimeter walls/fences not fronting public streets - Secure each half (west and east) with first development approval or permit (golf, residential or other use) in that half of the specific plan area. Construct with adjacent tracts or as directed by the City, whichever comes first. 30. The following specific street widths shall be constructed to conform with the General Plan street type noted therewith: A. ON -SITE STREETS The minimum street width shall be 36 feet as measured between curb faces or flow lines except as follows: 1. Single -loaded residential streets - 32-feet minimum. 2. Streets may be constructed to minimum widths of 32 feet with parking restricted to one side, and 28 feet if on -street parking is prohibited, if there is adequate off-street parking for residents and visitors and the applicant provides for enforcement of the restrictions by the homeowners association. 3. Entry streets (divided) - 20-foot width between curb faces or flow lines for each section. B. OFF -SITE STREETS - The City is contemplating adoption of a major thoroughfare improvement ordinance which is intended to distribute the improvement cost of major thoroughfare construction evenly and fairly 153 P:\STAN\cc coa sp 90-015 am #1.WPD 8 Planning Commission Resolution 98- Conditions of Approval - Recommended Specific Plan 90-015, Amendment #1 December 1, 1998 on undeveloped land at the time the land is subdivided or otherwise developed for beneficial use. If the ordinance is adopted, all land division maps within this project shall be subject to exaction by said ordinance, provided the ordinance is adopted 60 days prior to recordation of the map. If in the event, the major thoroughfare improvement ordinance is not adopted, the off -site street improvements for this project shall be as follows: 1. Madison Street (portion contiguous to specific plan boundary) - Half width Primary Arterial street improvements, 1 10-foot option. 2. Monroe Street (portion contiguous to specific plan boundary) - Half width Primary Arterial street improvements, 1 10-foot right of way option. 3. Airport Boulevard (portion contiguous to specific plan boundary) - Half -width Primary Arterial street improvements, 110-foot right of way option. 31. An encroachment permit for work in any abutting local jurisdiction shall be secured prior to constructing or joining improvements. * +32.The applicant shall provide an overall plan illustrating or describing provisions to allow multiple modes of non -motor vehicle travel throughout the entire specific plan area. This plan may utilize combinations of golf cart paths and tunnels, pedestrian walks, bikeways, etc., to achieve this. These systems shall be designed to provide overall project access. This plan shall be submitted at the time of the initial tract map submittal, for review by the Planning Commission. HYDROLOGY/GRADING/DUST CONTROL 33. All project grading shall be done in a manner that permits storm flow in excess of the retention basin capacity to flow out of the project through designated emergency overflow outlets and into the historic drainage relief route. Similarly, the project shall be graded in a manner that anticipates receiving storm flow from adjoining property at locations that has historically received flow. 154 P:ISTAN1cc coa sp 90-015 am #1.WPD 9 Planning Commission Resolution 98- Conditions of Approval - Recommended Specific Plan 90-015, Amendment #1 December 1, 1998 *34. Storm water run-off produced in 24 hours by a 100-year storm shall be retained on site in landscaped retention basins or other approved retention areas on the golf course. The maximum water depth for any retention area shall not exceed six feet; basin slopes shall not exceed 3:1. The percolation rate shall be considered to be zero inches per hour unless applicant provides site -specific data that indicates otherwise. Other requirements include, but are not limited to permanent irrigation improvements, landscape plants and materials, and appurtenant structural drainage amenities all of which shall be designed and constructed in accordance with requirements deemed necessary by the City Engineer. The tributary drainage area for which the applicant is responsible shall extend to the centerline of any public street contiguous to the site. *35. A thorough preliminary engineering, geological, and soils engineering investigation shall be conducted with a report submitted for review along with any rough grading plan in the specific plan area. The report recommendations shall be incorporated into the grading plan design prior to grading plan approval. The soils engineer and/or the engineering geologist must certify to the adequacy of the grading plan. *36. Graded, undeveloped land shall be maintained to prevent dust and blowsand nuisances. The land shall be planted with interim landscaping or provided with other wind and water erosion control measures approved by the Community Development and Public Works Departments. Prior to occupation of the project site for construction purposes, the Applicant shall submit and receive approval of a fugitive dust control plan prepared in accordance with Chapter 6.16, LQMC. In accordance with said Chapter, the Applicant shall furnish security, in a form acceptable to the city, in an amount sufficient to guarantee compliance with the provisions of the permit. *37. Applicant is encouraged to maintain all land within the project boundaries in agricultural status until such land is graded for development, provided that such agricultural production is economically feasible. In the event said undeveloped land is not continued or placed in agricultural production, applicant shall plan and maintain said land in appropriate ground cover to prevent dust and erosion and to provide an aesthetically pleasing environment. QUALITY ASSURANCE 38. The applicant shall employ construction quality -assurance measures which meet the approval of the City Engineer. 100 P:\STAN\cc coa sr) 90-015 am #1.WPD 10 Planning Commission Resolution 98- Conditions of Approval - Recommended Specific Plan 90-015, Amendment #1 December 1, 1998 39. The subdivider shall arrange and bear the cost of measurement, sampling and testing not included in the City's permit inspection program but, which are required by the City to provide evidence that materials and their placement comply with plans and specifications. Testing shall include a retention basin sand filter percolation test, as approved by the City Engineer, after required tract improvements are complete and soils have been permanently stabilized. 40. The applicant shall employ or retain California registered civil engineers, geotechnical engineers, or surveyors, as appropriate, who will provide, or have their agents provide, sufficient supervision and verification of the construction to be able to furnish and sign accurate record drawings. 41. Upon completion of construction, the applicant shall furnish the City reproducible record drawings of all plans which were signed by the City Engineer. Each sheet of the drawings shall have the words "Record Drawings," "As -Built" or "As -Constructed" clearly marked on each sheet and be stamped and signed by the engineer or surveyor certifying to the accuracy of the drawings. The applicant shall revise the plan computer files previously submitted to the City to reflect the as -constructed condition. LAND USE 42. Street dedications, bikeways, easements, improvements, landscaping with permanent irrigation system and screening, etc., to satisfaction of City, shall be provided by applicant/developer for any site(s) where dedication of land for public utilities and/or facilities is required. 43. Any proposed entry gates shall be subject to separate reviews to insure adequate stacking/queuing space, fire access, etc. Plans including guard houses or similar structures will also be subject to Architecture and Landscape Review Committee and Planning Commission approval. 44. Separate Site Development Permit review of any maintenance facility site(s) and clubhouse facilities shall be required before the Architecture and Landscape Review Committee and Planning Commission. o + 45. Building heights for residential uses shall be subject to height limits specified in the Specific Plan, except that no building or structure, regardless of use, exceeding one story (28 feet in height), shall be allowed within 200 feet of any perimeter public street frontage. All building heights shall be measured from 156 P:\STAN\cc coa sp 90-015 am #1,WPD 11 Planning Commission Resolution 98- Conditions of Approval - Recommended Specific Plan 90-015, Amendment #1 December 1, 1998 finished grade elevation. All other residential structures shall be limited to two stories, not to exceed 28 feet. 46. Perimeter security walls shall be subject to the following standards: +A. Setback from right-of-way lines along Madison Street, Monroe Street and Airport Boulevard shall be 20 feet. oB. All wall designs, including location and materials, shall be subject to review by the Community Development Department. Wall design(s) along Madison Street shall include any necessary provisions /allowances for equestrian trail areas as required in Condition #23. *C. Perimeter wall designs shall incorporate noise abatement requirements as set forth in the Final EIR for SP 90-015. o47. A six foot wide meandering sidewalk shall be constructed in the northerly, easterly, and westerly parkways and landscape setback lots of Airport Boulevard, Madison Street, and Monroe Street, respectively. Sidewalk design along Madison Street shall take into account the required equestrian trail. o48. Applicant shall provide a blanket easement that covers the entire landscaped setback lots for the purpose of a meandering public sidewalk on all streets and equestrian trail along Madison Street. LANDSCAPING REQUIREMENTS 49. Landscape and irrigation plans shall be prepared by a licensed landscape architect for the landscaped lots. The plans and proposed landscaping improvements shall be in conformance with requirements of the Community Development Director, City Engineer, and Coachella Valley Water District and the plans shall be signed these officials prior to construction. 50. The applicant/developer shall prepare detailed irrigation and landscaping plans for required perimeter landscaped setbacks along arterial roadways. These plans shall be coordinated with the street improvement plans for the corresponding arterials, and shall be subject to review by the Community Development Department, Public Works Department, Architecture and 157 P:\STAN\cc coa sp 90-015 am #1.WPD 12 Planning Commission Resolution 98- Conditions of Approval - Recommended Specific Plan 90-015, Amendment #1 December 1, 1998 Landscape Review Committee , and Planning Commission prior to review by Coachella Valley Water District. 51. The plants used shall follow those specified in the plant pallette for SP 83-002. * 52. Prior to the approval of building permits, the applicant shall prepare a water conservation plan which shall include consideration of: A. Methods to minimize the consumption of water, including water saving features incorporated into the design of the structures, the use of drought tolerant and low-water usage landscaping materials, and programs to increase the effectiveness of landscape and golf course irrigation, as recommended by Coachella Valley Water District and the State Department of Water Resources. MAINTENANCE 53. Applicant shall provide an Executive Summary Maintenance Booklet for the street, landscape irrigation, perimeter wall, and drainage facilities installed in the Specific Plan area. The booklet should include drawings of the facilities, recommended maintenance procedures and frequency, and a costing algorithm with fixed and variable factors to assist the homeowner's association in planning for routine and long term maintenance. MISCELLANEOUS 54. The area labeled "corporate area" shall be used for residential uses in conformance with the provisions of the Specific Plan. 55. Five Copies of the final Specific Plan, incorporating all conditions of approval, as approved by the City Council, shall be submitted to the Community Development Department within 60 days of approval. 56. Developer agrees to indemnify, defend, and hold harmless the City of La Quinta in the event of any legal claim or litigation arising out of the City's approval of this project. The City of La Quinta shall have the right to select its defense counsel in its sole discretion. 158 ATTACHMENT 2 ADDENDUM TO EIR FOR PGA WEST SPECIFIC PLAN 90-015 AMENDMENT #1 Prepared by: City of La Quinta 78-495 Calle Tampico La Quinta, California 92253 Contact: Principal Planner Stan Sawa (760)777-7125 Prepared for: KSL Land Development 56-140 PGA West Boulevard La Quinta, California 92253 Contact: Chevis Hosea (760) 564-1088 or Forrest Haag (949)719-0554 October 27, 1998 P:\STAN\sp 90-015 amd#1-EAadd.wpd ZUQ INTRODUCTION This Addendum to the previously certified Environmental Impact Report (EA 90-159) State Clearing House No. 90020731, for the PGA West Specific Plan 90-015 amendment has been completed pursuant to the California Environmental Quality Act (CEQA) in order to evaluate the environmental impacts associated with minor changes. PREVIOUS,ENVIRONMENTAL DOCLIMENTATION Proposed changes to the 1990 Specific Plan now require further environmental evaluation. This evaluation need not take the form of another EIR, as explained below, but can take place in an Addendum to the EIR for Specific Plan 90-01 5. EIR ADDENDUM CRITERIA According to CEQA Guidelines § 15164, if a project does not fulfill any of the criteria enumerated in CEQA Guidelines § 15162(a)(1)-(3) then an Addendum, rather that a subsequent or Supplemental EIR is appropriate. The determination that none of the criteria outlined in CEQA Guidelines § 15162(a)(1)-(3) are fulfilled must be supported by substantial evidence. As stated in CEQA Guidelines § 15162: a. When an EIR has been certified... no subsequent EIR shall be prepared for that project unless the lead agency determines, on the basis of substantial evidence in the light of the whole record, one or more of the following: (1) Substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous EIR ... due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; (2) Substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous EIR ... due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or, 161 P:\STAN\sp 90-015 amd# 1 -EAadd.wpd 2 (3) New information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR was certified as complete... shows any of the following: (A) The project will have one or more significant effects not discussed in the previous EIR or Negative Declaration; (B) Significant effects previously examined will be substantially more severe than shown in the previous EIR; (C) Mitigation measures or alternatives previously found not to be feasible would in fact be feasible and would substantially reduce one or more significant effects of the project, but the project proponents decline to adopt the mitigation measure or alternative; or (D) Mitigation measures or alternatives which are considerably different from those analyzed in the previous EIR would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measure or alternative. A detailed description of the initially proposed project and the currently proposed project is provided in Section (Project Site Characteristics) of this document. Using the information provided in Section 2, a brief refutation of the criteria set forth in CEQA Guidelines § 15162 is provided as follows. Subsection (a)(2) does not apply to the proposed changes to the Project because the revision, in effect, amount to a reduction in the ProjectIsscale and a commensurate reduction in overall environmental impacts from those initially anticipated and disclosed in the EIR. No new significant environmental effects or a substantial increase in the severity of previously identified significant effects would occur as a result of construction of the currently proposed project. Subsection (a)(2) does not apply because there are no substantial changes to he existing environmental conditions such that new and significant environmental impacts or a substantial increase in the severity of the environmental impacts would occur. As previously stated, the proposed Project has been reduced in overall scale and intensity, with the reduction in maximum dwelling units despite the addition of 20 acres to the project, which generally indicates a commensurate reduction in environmental impacts. In summary, the environmental circumstances under which the Project is undertaken are substantially similar to, or in some cases are, improved over the conditions in 1990. 1G92 P:\STAN\sp 90-015 amd# I -EAadd.wpd 3 Lastly, Subsection (a)(3) does not apply because the environmental analysis did not identify any significant environmental effects that were not previously disclosed in the EIR, nor did this analysis find that any significant environmental effects previously examined in the EIR will be substantially more severe with the revised plan. In fact, most effects were determined to be less severe as a result of the reduced scope of development. Further, this analysis did not reveal that there are any new mitigation measures that would substantially reduce one or more significant effects. In summary, CEQA Guidelines § 15164 (a) states that: "The lead agency or responsibility agency shall prepare an Addendum to a previously certified EIR is some changes or additions are necessary, but none of the conditions described in Section 15162... have occurred." Given that none of the conditions outlined in CEQA Guidelines § 15162 have occurred, an Addendum to the EIR is the appropriate document for evaluating environmental impacts resulting from the revised Specific Plan. PROJECT SITE CHARACTERISTICS GENERAL The original project consisted of 265 gross areas, with a maximum of 1,060 dwelling units allowed at a density of 4 dwelling units per acre. These units were approved to be developed around a 18 hole golf course on the north side of Airport Drive, between Madison Street and Monroe Street. Vehicular access to this project was on an entry to Madison Street and on Airport Drive. Golf course tunnel access was designed for Madison Street to the west and Airport Drive to the south. The amendment to this Specific Plan adds 20 acres of land zoned Very Low Density Residential dwelling units to the project site, increasing the total acreage to. 285 acres. This additional land is located on the west side of Monroe Street, at the north end of the original project site. This proposed additional acreage will be part of the golf course. The maximum number of dwelling units to be developed in this project is proposed to be reduced from 1,060 to 365, a 65 + % decrease. The original 4 dwelling units per gross acre drops to 1.28 dwelling units per gross acre. Vehicular access remains the same as under the original plan. No golf cart tunnels are shown on the revised plan. The equestrian trail along the east side of Madison Street is indicated, as required by the General Plan. 163 P:\STAN\sp 90-015 amd#1-EAadd.wpd 4 REVISED IMPACTS The addition of 20 acres for golf course use and reduction from 1,060 to 365 dwelling units in the project site will decrease the environmental impacts. Reductions in impacts will result in the areas of air quality, noise, population generation, use of natural and energy resources, traffic, public facility and services demand, and cumulative impacts. CONCLUSION The La Quinta Community Development Department has determined that based on this addendum to the previously certified Environmental Impact Report, no further environmental review is deemed necessary, pursuant to the Guidelines for Implementation of the California Environmental Quality Act, Section 15304. 164 P:\STAN\sp 90-015 amd#1-EAadd.wpd 5 ATTACHMENT #3 Planning Commission Meeting October 27, 1998 8. There being_ nn fii,-thP,• and seconded by Commissioner Robbins/Butler to adopt Planning Commission solution 98- 074, approving Site Development Permit 98-634, subject to e conditions as modified. a. Condition #1.A., Removal of Plan - 2,314 square feet. b. Condition #5: shall includ residence shall match the stucco or decorative concrete b to match or be compatible with the walls currently used ' e project." ROLL CALL: AYES: q9trImissioners Butler, Kirk, Robbins, and Chairman Tyler. NOES; No ABSENT: Commissioner Abels. ABSTAIN: None. F. Specific Plan 90-015. Amendment #1; a request of KSL Land Development Company for approval and recommendation to the City Council of a review and amendment to add 20 acres to the project site, reduce the number of dwelling units from 1,060 to 365, revise the layout and circulation and amend miscellaneous development standards. Chairman Tyler opened the public hearing and asked for the staff report. Principal Planner Stan Sawa presented the information contained in the staff report, a copy of which is on file in the Community Development Department. Staff asked that the following changes be made to the Conditions of Approval: Condition 416, be deleted; add Condition number 31 to the paragraph following Condition 430.C. as it is a new condition and renumber accordingly. 2. Commissioner Kirk asked staff to identify the corporate area. Staff stated the applicant would need to address this as staff was assuming it was residential, but they are stating it is something else that is being requested by individuals interested in developing the property. It needs to be better defined in the specific plan and could be a condition. Staff also indicated that the applicant needs to identify the area that was delineated as a maintenance building that is adjacent to the Airport Boulevard entrance that needs to be shown during the modification of the specific plan. 3. Chairman Tyler asked if the applicant would like to address the Commission. Mr. Chevis Hosea, representing KSL, stated they would like to address some of the Conditions of Approval. First, they would like to request a 28-foot wide private street. Also, in regard to the location of the maintenance facility he had with him a routing plan that shows its location to be just left of the Airport Boulevard entrance. This facility would jointly service the course to 163 CAMy Documents\WPD0CS\PC10-27-98.wpd 10 Planning Commission Meeting October 27, 1998 the south as well as the Norman Course. Presently, those courses are being serviced from the Avenue 58`h facility. They are looking to rezone the corporate area to allow Tourist Commercial sometime in the future. They continue to have a demand for corporate golf facilities that allows a company to have a home for their clients, executives, and employees to have a membership that would run with the club and have access to the facilities. Until they define the use, they will not be able to apply for the zone change Condition #9 requires that they vacate the streets before grading. These streets, even thought they may exist legally, are turn rows for the turf farm. They are not improved. They would like to modify this condition to allow them to proceed with the grading while they proceed with the street vacation process. Staff stated it is probably a conditional street vacation that has been approved and only needs the paper work completed and have it recorded. 4. Commissioner Kirk asked the applicant to clarify what he was requesting. Mr. Hosea stated they are trying to get to a cul-de-sac community with no more than 40-50 units on each street. They would like to have quiet narrow streets. They intend to sell the tracts with the developer having the ability to design his own community. Planning Manager Christine di Iorio clarified that Condition 931 does allow the streets to be reduced to 28 feet with adequate off-street parking and no on -street parking. 5. Chairman Tyler asked why the data and dimensions for all the lots was the same. Mr. Hosea stated they were wanting as much flexibility in the plans as possible. Some of the market demands they want to explore is for very expensive structures on half to two-thirds acre that are very well attended. 6. Chairman Tyler asked about the use of well water for watering of the golf course. Mr. Hosea stated this was a hold over from the previous plan. The golf course will be watered with canal water with the use of one well being used for salt tolerant plant species. They are being encouraged to do a minimum turf environment with natural landscaping. Staff suggested adding a condition that would require Page 15, Section 9 Public Services, Utilities Element, the water section that on -site wells be changed to canal water. Mr. Hosea asked if this would limit their ability to have one well that would be used for bent grass, etc. Commissioner Robbins suggested using the wording, "their primary source of irrigation shall be canal water." This would leave some flexibility. 7. There being no further public comment, the public participation portion of the hearing was closed and open for Commission discussion. 166 CAMy Documents\WPD0CS\PC10-27-98.wpd I I Planning Commission Meeting October 27, 1998 8. Commissioner Robbins questioned Condition #18, stating the last sentence should be deleted. It was suggested this condition be modified to include "their primary source of irrigation shall be canal water". Condition #38 should be modified as it also is a carry-over. Senior Engineer Steve Speer stated this condition should have been changed to the current conditions used for Quality Assurance. Condition #49.13. should be deleted and any reference to reclaimed water be deleted from Item C. 9. There being no further discussion, it was moved and seconded by Commissioner Kirk/Butler to adopt Planning Commission Resolution 98- 075, approving Specific Plan 90-015, Amendment #1, subject to the conditions as modified. a. Condition #16 be deleted. b. Condition #18 the last sentence shall be deleted. Add the following wording, "their primary source of irrigation shall be canal water." C. Condition #31 be added following Condition #30.C. and all following conditions renumbered accordingly. d. Condition #38: be deleted and replaced with Quality Assurance conditions. C. Condition #49.13. shall be deleted and delete any reference to reclaimed water in "C" be deleted. ROLL CALL: AYES: Commissioners Butler, Kirk, Robbins, and Chairman Tyler. NOES; None. ABSENT: Commissioner Abels. ABSTAIN: None. AND WRITTEN MA VIII. COMMISSIONER ITEMS: A. Chairman Tyler suggested the Commissioners read the' mutes for the City Council meeting of October 20, 1998, B. Chairman Tyler asked staff to addr zoning changes that had been mentioned during the meeting and agendize em for a future meeting along with the following: 1. Clarify what a g copy means. 2. Cart corral ith additional signage. 3. Two qdlthree car garages 4. P mg in the Village 16? CAMyDocuments\WPDOCS\PC10-27-98.wpd 12 AGENDA CATEGORY: BUSINESS SESSION: COUNCIL/RDA MEETING DATE: December 1, 1998 CONSENT CALENDAR: ITEM TITLE: STUDY SESSION: Continued Public Hearing on Development Agreement PUBLIC HEARING: 3 87-002 Amendment #1. Applicant: Stamko Development Company RECOMMENDATION: As deemed appropriate by the City Council. FISCAL IMPLICATIONS: Financial assistance in the amount of up to $2.3 million will be provided for public improvements along Highway 111 and Adams Street. Of this amount, $1 million is from the General Fund Reserves and the remainder of the financial assistance will be from tax dollars generated by the project based upon generation of certain sales tax dollars. BACKGROUND AND OVERVIEW: The City Council continued this from November 17, 1998, for purposes of allowing staff time to complete the final changes to the Agreement. The Development Agreement process is provided by the La Quinta Municipal Zoning Code and State statues. A Development Agreement is a binding agreement between both parties for the purpose of establishing zoning criteria that will remain constant and to give incentives to the developer to construct certain public infrastructures. Both parties desire to enter this Development Agreement to construct and dedicate certain public facilities, and infrastructure improvements, all in the promotion of the health, safety, and general welfare of the City. The developer/owner wishes to develop the project and public improvements in exchange from assurances from the City that the developer will be permitted to implement the development in accordance with the terms and conditions as set forth in the Agreement. The City and developer wish to enter into the Agreement to assure that the public improvements (cost reimbursed to the developer by the City) will be construction and maintained to achieve a design theme along Highway 111 and Adams Street. 16S CCJH.0L2 The Development Agreement complies with the State statues and zoning regulation for the formation of a Development Agreement. The Development Agreement further provides for development requirements that are in excess of City standards, such as restrictions to development density and intensity, than that permitted under the applicable General Plan and Zoning Code provision. The Development Agreement requires annual reviews which also is in compliance with State and local requirements. The City Attorney has in conjunction with Stamko Development Company, prepared the Development Agreement. The Development Agreement provides the following: 1. Stamko develops approximately 87 acres between Adams Street and Jefferson Street on Highway 111 as auto and commercial uses, including three auto dealership fronting Highway 111 east of Adams Street. 2. Stamko to construct on and off -site improvements, including street improvements to Adams Street and Highway 111. 3. Stamko to contribute up to $800,000 towards off -site improvements, with said amount reimbursable from sales tax proceeds form the project over ten years at 8.5% interest. 4. City contributes up to $1,000,000 towards off -site improvements. 5. City to contribute an additional $76,411 annually to Stamko for each year over ten years that the project generates $530,000 in sales tax revenue adjusted per CPI (i.e., equates to $500,000 principal at 8.5% interest over ten years). 6. City waives $29,879.37 in fees associates with processing of previous project upon successful processing of new project applications and issuance of building permits for auto project. FINDINGS AND ALTERNATIVES: 1. Move to take up Ordinance No. By title and number only and waive further reading. Motion to introduce Ordinance No. _ on first reading. 2. Deny the Development Agreement; or 3. Continue the Public Hearing. 169 J6fry Herms n C mmunity Development Director 0000U2, COH.012 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING DEVELOPMENT AGREEMENT, AMENDMENT #1 BY AND AMONG THE CITY OF LA QUINTA AND STAMKO DEVELOPMENT COMPANY CASE NO.: DEVELOPMENT AGREEMENT 97-002, AMENDMENT #1 APPLICANT: STAMKO DEVELOPMENT COMPANY WHEREAS, the City Council of the City of La Quinta, California, did on the 171h day of November, 1998, hold a duly noticed Public Hearing to consider an amendment to the Development Agreement; and, WHEREAS, the Planning Commission of the City of La Quinta, California, did on the 131h of October, 1998, and 10th day of November hold a duly noticed Public Hearings to consider an amendment to the Development Agreement; and, WHEREAS, the City Council of the City of La Quinta, California, did on the 151h day of July, 1997, approve and adopted under Ordinance 306 the Development Agreement; and, WHEREAS, at said Public Hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons wanting to be heard, said City Council did make the following Mandatory Findings of approval to justify approving said Development Agreement, Amendment #1: The proposed amended Development Agreement is consistent with the objectives, policies, general land uses and programs of the City of La Quinta General Plan and Specific Plan 97-029, Amendment #1. The property is within the Mixed/Regional Commercial (M/RC) District per the provisions of the 1992 General Plan Update which permits the proposed use and is consistent with the goals, policies and intent of the La Quinta General Plan Land Use Element (Chapter 2) provided conditions are met. 2. The land uses authorized and regulations prescribed for the amended Development Agreement are compatible with the zoning and its related regulations now applicable to the property. The site is zoned Regional Commercial (CR) which permits the proposed uses provided conditions are met. 3. The proposed amended Development Agreement conforms with public convenience and the general welfare by providing for extensive public improvements and conforms to good land use practice by encouraging a long-range, comprehensive approach to the development of a major automobile sales/services an�r�ixed 063 commercial complex. U UU P:\CHRISTI\CCResoDevAgmt97-002.wpd City Council Resolution 98- Development Agreement 97-002, Amendment #1 The amended Agreement provides for development requirements that are in excess of City standards, such as the development density, intensity and potential adverse environmental impacts that are significantly more restrictive than those currently permitted under the applicable General Plan and Zoning Code provisions. In addition, entire landscape medians will be constructed on both Highway 111 and Adams Street. 4. Approval of this amended Development Agreement will not be detrimental to the health, safety, and general welfare since adequate provision has been made in previous City approvals to provide for necessary and desirable improvements and since these approvals are incorporated herein. 5. Approval of this amended Development Agreement will not adversely affect the orderly development of the subject or surrounding property nor the preservation of area -wide property values, but rather will enhance them by encouraging planned, phased growth. 6. Approval of the amended Development Agreement will provide a positive fiscal impact on the City by providing new revenue to the General Fund for services. 7. Consideration of the amended Development Agreement has been accomplished pursuant to California Government Code Section 65864 et seq. And the City of La Quinta Municipal Code Section 9.250.030, which governs Development Agreements. 8. Said amended Development Agreement has complied with the requirements of "The Rules to Implement the California Environmental Quality Act of 1970" as amended (Resolution 83-63). The Community Development Department completed Environmental Assessment 97-337 for the original project. An Environmental Impact Report, State Clearinghouse No. 97011055 was certified by the City Council in 1996 for this project. A Supplemental EIR has been prepared for the proposed amended Specific Plan, Site Development Permit and Development Agreement. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of La Quinta, California, as follows: SECTION 1. The City Council hereby approves the Amended Development Agreement and authorizes the Mayor to execute and the City Manager to follow through in all acts necessary to implement the Amended Development Agreement. 1 "1 l_ SECTION 2. ENVIRONMENTAL. The City Council of the City of La Quinta approved and adopted Resolution 97-62 Certifying the adequacy and completeness of the EIR (State Clearinghouse Number 97011055) and adopted findings and a Statement of Overriding Consideration for the original project. The City prepared a Supplemental EIR 000004 P:\CHRISTI\CCResoDevAgmt97-002.wpd City Council Resolution 98- Development Agreement 97-002, Amendment #1 to update the original EIR to analyze the potential environmental impacts of the amended project and adopted resolution 98-135 Certifying the adequacy and completeness of the SEIR and adopted findings and a Statement of Overriding Considerations for the amended project. SECTION 3. EFFECTIVE DATE. This Ordinance shall be in full force and effect thirty (30) days after its adoption. SECTION 4: POSTING. The City Clerk shall certify to the passage and adoption of this Ordinance, and shall cause the same to be posted in at least three public places designated by resolution of the City Council, and shall cause this Ordinance and its certification, together with proof of posting, to be entered into the Book of Ordinances of this City. The foregoing Ordinance was approved and adopted at a meeting of the City Council held on this day of 1998, by the following vote: AYES: NOES: ABSENT: ABSTAIN: JOHN J. PENA, Mayor City of La Quinta, California ATTEST: SAUNDRA L. JUHOLA, City Clerk City of La Quinta, California APPROVED AS TO FORM: DAWN C. HONEYWELL, City Attorney City of La Quinta, California P: \CHRISTI\CCRe soDevAg mt97-002. wpd 0000,s FIRST AMENDMENT TO DEVELOPMENT AGREEMENT This First Amendment to Development Agreement ("Amended Agreement") is made and entered into this _ day of , 1998, by and between the CITY OF LA QUINTA, a charter city ("City"), STAMKO DEVELOPMENT COMPANY, a California limited partnership ("Developer") and THE TRUSTEE OF THE JUVONEN LIVING TRUST, a California Trust ("Partial Owner"). The City and Developer are hereinafter sometimes referred to individually as a "Party" and collectively as the "Parties". RECITALS This Amended Agreement is predicated upon the following facts: A. The City, Developer and Partial Owner originally entered into that certain Development Agreement dated July 15, 1997 ("Original Agreement") authorized by City Council Ordinance No. 306 dated July 21, 1997, and effective August 20, 1997, and recorded on September 3, 1997. B. Due to certain economic restraints beyond the control of any party to the Original Agreement, the Developer is unable to perform according to the original unamended Specific Plan and Developer Lease conditions and, therefore, has requested certain modifications to the site planning conditions, the Development Agreement, and the Developer Lease to allow the Project to proceed. C. The City believes that all of the findings made in the Original Agreement remain true, that the requested modifications by the Developer as set out in this Amended Agreement with attachments are consistent with the General Plan , and all other applicable plans, rules, regulations and official policies of the City of La Quinta and the approval of this Amended Agreement shall promote the health, safety and general welfare of the City. D. It is the intent of the Parties that on execution of this Amended Agreement, Developer shall be obligated to complete the Public Improvements in the manner set forth herein and that Developer will be entitled to proceed with the Project subject to the Amended Specific Plan 97-029, and Conditional Use Permit 97-034 attached hereto and incorporated herein as Exhibits "D" and "E" respectively, in accordance with this Agreement. and with City's rules, regulations and official policies governing permitted uses, density, design, improvement and construction standards and specifications in force on the date of this Amended Agreement. E. Regarding Recital "H" to the Original Agreement: the Project will encompass three planning areas ("Planning Areas"). F. On November 10, 1998, the Planning Commission of the City of La Quinta (the "Planning Commission"), after giving -notice pursuant to Government Code Sections 65854, 65854.5 and 65866, held a public hearing on Developer's application for this Amended Agreement. On 1r� CAMy Documents\WPDOCS\DARestAgmt.wpd I O O 'JOG " November 17, 1998, the City Council of the City of La Quinta ("City Council"), after providing public notice as required by law, similarly held a public hearing to consider Developer's application for this Agreement. G. The Planning Commission and the City Council have found that the Amended Agreement is consistent with the General Plan and all other applicable plans, rules, regulations and official policies of the City. H. In accordance with the requirements of the California Environmental Quality Act (Public Resources Code Sections 21000, et: seq., ("CEQA")) , appropriate studies, analysis, reports or documents were prepared and considered by the Planning Commission and the City Council. The City Council, after making appropriate findings, certified, by Resolution 98-135, adopted on November 17, 1998, a Supplemental Environmental Impact Report for the Project in compliance with CEQA. I. On , 1998, the City Council adopted Ordinance No. Amended Agreement with Developer. The Ordinance takes effect on approving this The parties hereto agree to amend the Original Agreement according to the following specified revisions: 1. Definitions: In this Amended Agreement, the defined terms will have the same meaning as in the Original Agreement except as may be otherwise noted in this Amended Agreement: 1.1. Authorizing Ordinance: "'Authorizing Ordinance" means Ordinance No. approving this Amended Agreement. 1.2 Effective Date: (Defined in Section 1.8 of the Original Agreement) . "Effective Date" means the date that the Authorizing Ordinance as defined in this Amended Agreement becomes effective. 1.3 Project: (Defined in Section 1.17 of the Original Agreement) "'Project" means a regional commercial project designed around two main uses: an auto mall and/or a mixed regional commercial development. The Project has three Planning Areas. Planning Area I will contain three (3) new car dealerships or a mixed regional commercial development. Planning Area II will contain either two (2) or six (6) new car dealerships and/or auto related commercial pads and/or a mixed regional commercial development. Planning Area III will be a mixed commercial center. The three Planning Areas are delineated in Exhibits "2" through "2-2" to Amendment No. I to the Specific Plan. The development of the Project shall include all mitigation measures (on -site and off -site) imposed as part of the CEQA review process, and as conditions to the issuance of Development Approvals, including, but not limited to, the Specific Plan, and Conditional Use Permit consistent with this Amended Agreement. 1.4 Specific Plan: The Specific Plan approved by the City Council on July 15, 1997 as amended by Amendment No. 1 approved by the City Council on November 17, 1998. A reference to "Amendment to Specific Plan refers only to Amendment No. 1 to Specific Plan. i C:\My Documents\WPDOCS\DARestAgmt.wpd 2 000OG7 2. Change to Section 3.1.: The second and third sentences of Section 3.1 are changed to read as follows: "Developer will endeavor to develop the Property in accordance with the three Planning Areas specified on the Project Site (Exhibits "A-1, "A-2" and "A-3" ). Planning Area I has approximately 13.2 acres; Planning Area I has approximately 29.14 acres; and Planning Area III has approximately 36.73 acres. Developer will endeavor to develop the three Planning Areas in accordance with the four scenarios set out in the Amended Specific Plan." 3. Change to Section 3.2: The first sentence of Section 3.2 is amended to read in full as follows: "The term of this Amended Agreement shall be approximately twelve (12) years, commencing upon the Effective Date of Ordinance No. _ approving this Agreement and authorizing its execution and shall expire on unless otherwise terminated, modified or extended by written mutual agreement pursuant to the terms of this Agreement." 4. Section 3.3: Add the words, "...or Section 3.3.3" after "Section 3.3.2" in: (a) The first sentence of the first paragraph. (b) The first and second sentences of the second paragraph. 5. Section 3.3.3: The following assignments of the rights of the assignor under this Amended Agreement shall be made without the consent of City, but upon giving notice to the City concurrently with any transfer of any part of the Property; (a) From Developer to any member of Desert City Dealers, or to any other auto dealer purchasing Property from Developer. (b) From Developer to any person or entity using a portion of Planning Area II for auto related uses. (c) From Desert City Dealers to any member of Desert City Dealers. (d) From Desert City Dealers to Developer pursuant to Developer's exercise of its right to purchase any portion of the Property pursuant to the Option and Purchase Agreement as amended between Developer and Desert City Dealers. (e) From a member of Desert City Dealers who acquires title to a portion of the Property to Developer pursuant to Developer's exercise of its right to purchase any portion of the Property pursuant to the Option and Purchase Agreement as amended between Developer and Desert City Dealers. (f) In connection with the transfer of any portion of the Property located in Planning Area 111. CAMy Documents\WPDOCS\DARestAgmt.wpd 3 6. Section 4.3.1.: The first sentence is amended to read in full as follows: "City and Developer agree that the EIR which is designated EA No. 97-337 as supplement by the Supplemental EIR designated and the obligations of Developer under this Agreement to incorporate mitigation measures as part of the Project constitute full and complete mitigation of any identified adverse environmental impacts generated by the Project." 7. Section 5.2: Is amended to read as follows: "5_2 Planning Areas: Planning Area 1: Planning Area I will contain three (3) new car dealerships. Planning Area II: Planning Area II will contain up to six (6) new car dealerships and/or auto related commercial pads and/or a mixed regional commercial development containing structures of up to 306,000 square feet. Planning Area III: Planning Area III will be a mixed commercial center containing structures of up to 400,000 square feet." 8. Section 5.3: The second sentence of Section 5.3 is amended to read in full as follows. "The buildings in Planning Areas I, 11 and III shall be constructed on the Property as specified in the Development Scenarios described in the Amendment to Specific Plan." 9. Section 5.3. 1: The maximum F.A.R. for all Planning Areas under all Development Scenarios is .25. 10. Section 5.4: Is amended to read in full as follows: "5.4 Phasing of Construction: Scenarios as follows: 5.4.1. Phasing: of Construction: The Project shall be developed in four (a) Development Scenario #1: (1) Three (3)new car dealership pads; (ii) Six (6) new car dealerships and/or auto -related commercial pads; and (iii) 400,000 square feet of mixed regional commercial. C:\Mv Documents\WPDOCS\DARestAgmt.wpd 4 0000 �/ (b) Development Scenario #2: (i) Three (3) new car dealership pads; (ii) Two (2) new car dealerships and/or auto -related commercial pads; and (iii) 610,000 square feet of mixed regional commercial. (c) Development Scenario 43: (i) Three new car dealership pads; and (ii) 695,000 square feet of mixed regional commercial. (d) Development Scenario #4: (i) 850,000 square feet of mixed regional commercial development. Developer shall construct or contribute to the construction of the Public Improvements connected with Planning Area I, Planning Area 11 and Planning Area III as set forth in the Developer Lease Agreement (Exhibit "C"), Specific Plan (Exhibit "D") and the terms of this Amended Agreement." "5.4.2. Developer: Developer agrees to exercise due diligence and submit to City applications for all such necessary permits and approvals in accordance with applicable City procedures and Existing Rules." "5.4.3. City: City hereby agrees that it will accept from Developer for processing and review all applications for Development Approvals for the use of the Property in accordance with this Amended Agreement, providing that said applications are submitted in accordance with this Agreement and the Existing Rules." "5.4.4 Completion of Project: Developer agrees to diligently prosecute to completion the construction of the Project and to complete construction of Planning Area I within the term of this Amended Agreement subject to any such extensions as may hereafter become applicable in accordance with the provisions of this Amended Agreement. Improvements, scheduling, dates, or times of performance by either Party hereto may be subject to revision from time to time due to factors which cannot be predicted and which are within the control of the Parties, such as economic market conditions and demand interest rates and competition. Any such revision must be mutually agreed to by the Parties in writing referencing this Section 5.4.4 and in recordable form. Such revisions are deemed to be within the framework of this Amended Agreement as presently drafted and executed and do not constitute amendments requiring new notice and hearing under local law." 11. Section 6.1. The second paragraph of Section 6.1 is amended to read in full as follows: "The Developer shall provide the Public Improvements and pay all fees and other amounts the payment of which is provided for pursuant to this Amended Agreement in conformity C:\My Documents\WPDOCS\DARestAgmt.wpd 5 ` A o 0 0 0 1, 1 with the timing of the development of the Public improvements set forth in this Amended Agreement, and the Developer Lease Agreement; such performance shall be required so long as this Amended Agreement remains in effect without regard to whether the Developer is timely implementing the development of Project pursuant to this Amended Agreement. Where this Amended Agreement sets forth a specific time for the provision of Public Improvements or the payment of fees or other amounts, the Developer shall strictly comply with such requirements. Where a Public Improvement fee, or other amount is required pursuant to Existing Rules and the terms of this Amended Agreement to be paid at the time of issuance of building permits and a specific date is not set forth in this Amended Agreement for the provision of such Public Improvements or payment of such fees or amounts, the Public Improvement, fee, or other amount shall be required to be provided at the time building permits are issued for the structure." 12. Amendment of Exhibits. The Site Plans, the Developer Lease Agreement and Specific Plan, which were Exhibits "A", "C", and "D" to the Original Agreement shall be completely restated and amended in the forms attached hereto and/or supplemented as indicated in this Amended Agreement or the attached Exhibits. 13. Section 13.3: Section 13.3 is amended to read in full as follows: "The Developer shall provide funds for payment of all expenses associated with the Project entitlement review including the environmental review by legal counsel and preparation by consultant as well as the drafting of all documents for the project prepared by the City's legal counsel. A Sixty -Eight Thousand Five Hundred Dollar ($68,500) advance deposit towards this payment has to be provided to the City. In addition to the foregoing all application fees shall be paid by Developer at the time of submittal for the revised specific plan and any other required planning submittals." 14. No Other Change: All sections of the original Agreement which have not been specifically amended by this Amended Agreement shall remain intact and enforceable in their entirety. IN WITNESS WHEREOF, this Amended Agreement has been executed by the Parties and Partial Owner on the day and year first above written, as authorized by Ordinance No. of the City Council of the City of La Quinta. Un ATTEST: CITY OF LA QUINTA, a charter city JOHN J. PENA, Mayor SAUNDRA L. JUHOLA, City Clerk City of La Quinta, California C:\My Documents\WPDOCS\DARestAgmt.wpd 6 178 000011 APPROVED AS TO FORM: DAWN C. HONEYWELL, City Attorney City of La Quinta, California STAMKO DEVELOPMENT COMPANY, A California Limited Partnership By: Its: The Juvonen Living Trust IN IN CAMy Documents\WPDOCS\DARestAgmt.wpd 7 1179 000012 EXHIBIT "C" RECORDING REQUESTED BY ) AND WHEN RECORDED MAIL TO ) AND MAIL TAX STATEMENTS TO: ) City of La Quinta ) 78-495 Calle Tampico ) La Quinta, California 92253 ) Attn: City Clerk ) (Space above for Recorder's Use) RESTATED AND AMENDED DEVELOPER LEASE AGREEMENT THIS DEVELOPER LEASE AGREEMENT ("Agreement") is entered into as of the day of 1998, by and among the City of La Quinta, a charter city ("City") and Stamko Development Co., a California limited partnership ("Developer") with reference to the following: RECITALS A. WHEREAS, Developer is the fee owner of certain property located in the City ("Project Site"), which Project Site is legally described on Exhibit "A" attached hereto and as further described in the Specific Plan for the three development scenarios which include three car dealerships in Planning Area 1; and B. WHEREAS, in connection with the development of the Project, Developer intends to dedicate and convey certain real property adjacent to Adams Street to the City and certain property adjacent to Highway I I I to the State for public facilities ("Dedicated Property"), which Dedicated Property is described on Exhibits "B-1" and "B-2" attached hereto and depicted on Exhibits "C-l" and "C-2" attached hereto; and C. WHEREAS, the City and State currently own certain rights -of -way adjacent to the Project Site along Adams Street and Highway I I I ("Existing Rights -of -Way"), which Existing Rights -of -Way are described on Exhibit "D-1" and "D-2" attached hereto and depicted on Exhibits "E-1" and "E-2"; and D. WHEREAS, the City desires, subsequent to acquiring the Dedicated Property from Developer, to lease the Dedicated Property and the Existing Right -of -Way, to Developer, for purposes of having Developer construct thereon certain public facilities ("Public Facilities"), which Public Facilities are described on Exhibit "F" attached hereto; and 100 C:\My Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 13 E. WHEREAS, Developer has agreed to construct the Public Facilities on the Dedicated and Existing Right -of -Way Property, and then to sublease the Public Facilities to the City pursuant to this Agreement for the benefit of the public and in furtherance of public purposes of the City; and F. WHEREAS, Developer and City first approved a form of this Agreement on July 21, 1997; and G. WHEREAS, due to economic conditions beyond the control of Developer, the original form of this Agreement has become impractical and infeasible to perform; and H. WHEREAS, the City believes that a revision to the original terms of the form of this Agreement is in the best interest of the City and its general health, safety and welfare; NOW, THEREFORE, for and in consideration of the mutual covenants and agreement herein contained, and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, it is agreed as follows: Section 1. Definitions. Unless the context otherwise requires, the terms defined in this Section 1 shall, for all purposes of this Agreement, have the meanings herein specified. (a) "Agreement" shall mean this Developer Lease Agreement. (b) "Base Rental Payments" shall mean the rental payments payable by the City to Developer pursuant to the Sublease, as described herein. (c) "City" shall mean the City of La Quinta, California, a charter city duly organized and existing under the laws of the State of California, and its successors and assigns. (d) "Dedicated Property" shall mean that certain real property as described on Exhibits "B-l" and `B-2" and depicted on Exhibits "C-1" and "C-2", which real property shall be conveyed by Developer to the City and to the State pursuant to the terms of this Agreement. (e) "Developer" shall mean Stamko Development Co., a California limited partnership. (f) "Existing Right -of -Way" shall mean the existing right-of-way currently owned by the City, as described in recital paragraph C hereof. (g) "Interest Component" shall have the meaning set forth in Section 7 hereof (h) "Lease" shall mean the portion of this Agreement which constitutes the lease of the Dedicated Property and the Existing Right -of -Way by City, as lessor, to Developer, as lessee (see Section 3 below). 101 0002014 C:\My Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd (i) "Lease Commencement Date" shall mean that date upon which the City accepts Developer's dedication of the Dedicated Property. 0) "Leasehold Value" shall have the meaning set forth in Section 7 hereof. (k) "Principal Components" shall have the meaning set forth in Section 7 hereof. (1) "Project" shall mean the commercial facility, including three car dealerships, and related improvements described in recital paragraph A above. (m) "Project Site" shall mean the real property described on Exhibit "A". (n) "Public Facilities" shall mean the public facilities to be constructed on the Dedicated Property and the Existing Right -of -Way by Developer described on Exhibit "F" attached hereto. (o) "Rental Period" shall have the meaning set forth in Section 7(b)(3) hereof. (p) "Sales and Use Tax" shall mean the 1% sales and use tax imposed and received by the City under authority granted to the City pursuant to Section 7201 of the California Revenue and Taxation Code. (q) "Sales and Use Tax Revenues" shall mean any revenues collected by the City pursuant to Sales and Use Tax as described above as a result of commercial activity generated by this Project on this Project Site. (r) "Specific Plan" shall mean the Specific Plan approved by the City Council on , 1998. (s) "Sublease" shall mean the portion of this Agreement which constitutes the sublease of the Dedicated Property and the Existing Right -of -Way by Developer, as sublessor, to City, as sublessee (see Section 5 below). (t) "Sublease Commencement Date" shall mean that date upon which the City accepts the Public Facilities as being complete. (u) "Term of this Agreement" shall mean that period of time commencing as of the date of the transfer of the property in the Planning Area I to the three car dealership owners for purposes of developing a minimum of three new car dealerships and terminating as of the date of termination of the Sublease. Section 2. Conveyance of Dedicated Property. Developer shall convey or cause to be conveyed to the City or its designee, and the City or its designee shall accept conveyance of, the Dedicated Property, for public purposes, prior to Developer's seeking building permits for the construction of any portion of the Project. Developer C:\My Documents\WPDOCS\DALeaseAmd-Stamko-tinal.wpd l a~ O O O 15 covenants that prior to conveying the Dedicated Property to the City or its designee, and provided that the City performs its obligations as set forth in Section 7 of this Agreement, Developer shall own fee title to all of the Dedicated Property, and that such Property shall be conveyed to the City or its designee free and clear of all liens and encumbrances, except those approved in writing by the City. Such conveyance of the Dedicated Property from Developer to the City or its designee shall be deemed to be and is a condition precedent to the rights and obligations of the parties under the terms of this Agreement, provided however, that such conveyance shall not be a condition precedent to those obligations of the City under Section 7(b)(2) of this Agreement. Upon the Developer's conveyance of the Dedicated Property to the City or its designee, this Agreement shall be recorded in the Official Records of the County of Riverside, California. Section 3. Lease Terms. Effective upon the conveyance of the Dedicated Property to the City, or its designee, as described above, the City (or its designee) hereby leases the Dedicated Property and Existing Right - of -Way to Developer and Developer leases the Dedicated Property and Existing Right -of -Way from the City, or its designee, on the terms and conditions set forth in this Agreement. Rent for the entire term of the Lease shall be an advance payment by Developer to the City of the sum of $1.00. The tern of the Lease shall commence on the date that the City or its designee accepts conveyance of the Dedicated Property and continue until the termination of the Sublease, as described in Section 5 herein, and, upon termination of the Sublease, the Lease shall likewise terminate. Section 4. Construction of Public Facilities. (a) Developer's Obligations. Developer shall finance and construct all of the Public Facilities described on Exhibit "F" attached hereto. In general, the Public Facilities shall consist of: Highway 111 from Adams Street to La Quinta Drive; Adams Street/Highway 111 intersection; Adams Street from Highway 111 to 47' Street, including center median; La Quinta Drive/Highway 111 intersection. The Public Facilities shall be constructed concurrently with the Planning Area I of the Project which includes a minimum of three auto dealerships. In connection with the Public Facilities, Developer shall do the following: (1) prepare plans and specifications for the Public Facilities in accordance with City and/or State standards, and submit such plans and specifications to the appropriate City and/or State departments for review and approval; (2) provide the City with twenty (20) days written notice prior to the commencement of construction; (3) secure all necessary licenses, permits, rights of way, and rights of entry as may be reasonably necessary for construction; CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 4 (4) prior to commencement of construction, Developer shall provide the City with faithful performance and material payment bonds or other security as approved by City, each in the amount of 110% of the estimated cost of construction, as determined by the City; the survey, amount and form of such bonds shall be subject to the approval of City Attorney; and such bonds shall remain in full force and effect until the Public Facilities are accepted by the City, at which time such bonds may be reduced to 10% of the cost of construction for a period of one (1) year to guarantee against any defective work, labor or materials; (5) provide workers' compensation insurance for all Developer employees working on construction, in amounts as required by California law; (6) provide and maintain comprehensive liability insurance which shall name both Developer and the City as insureds, and which shall provide coverage from personal injury claims, including accidental and/or wrongful death, and claims for property damage which may arise directly or indirectly from Developer's construction work, or the performance of Developer's obligations hereunder, whether such construction and performance is done by Developer, or any constructor, subcontractor or other party employed directly or indirectly by any of them; such insurance shall provide for limits of not less than $2,000,000 per occurrence and shall further provide that the issuing company may not cancel, modify or terminate coverage unless it shall have given the City thirty (30) days' prior written notice of such cancellation, termination or modification; Developer shall assure that the insurance required by this section shall remain in full force and effect throughout the construction of the Public Facilities, and Developer's failure to do so shall be deemed a material breach of this Agreement; and (7) upon completion of construction, convey to the City, in form and substance acceptable to City Attorney, all rights of way and easements deemed necessary by the City Engineer, in its reasonable discretion, for the operation and maintenance of the Public Facilities, including ingress and egress easements as may be reasonably need for storm drain operation and maintenance. (b) Cites Obligations. In connection with Developer's construction of the Public Facilities, the City shall do the following: (1) review and either approve or provide comments for necessary revisions for the plans and specifications for the Public Facilities prepared by Developer in a timely manner prior to the commencement of construction of said Public Facilities; (2) inspect the construction of the Public Facilities as required; and (3) upon completion and acceptance by the City of the Public Facilities and conveyance of all required rights of way and easements, accept full responsibility for operation and maintenance of the Public Facilities, except as to parkway maintenance responsibilities adjacent to Highway I I I and Adams Street as outlined within the Specific Plan and Covenants, Conditions and Restrictions which shall remain the responsibility of the Developer or its successors and assigns (i.e., Property Owner Association). Section 5. Sublease. 104 000017 CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 5 Effective upon the completion of the Public Facilities, Developer hereby subleases the Public Facilities constructed on Adams Street (Exhibits `B-1" and "C-1") to the City and the City hereby subleases the Public Facilities construction on Adams Street (Exhibits "D-l" and "E-1") from Developer on the terms and conditions set forth in this Agreement. The Public Facilities shall be deemed to be "complete" upon final inspection and acceptance by the City. Concurrently, the Public Facilities constructed on Highway II I (Exhibit "B-2", "C-2" and "D-2" and "E-2") shall be transferred to the State of California. Section 6. Term of the Sublease. The Sublease shall begin as of the Sublease Commencement Date as defined in Section 1(t) hereof. The Sublease shall end on the earlier of (1) December 31, 2011; (2) the time at which the prepayment option is exercised under Section 7(a)(4); or (3) in the event of termination pursuant to Section 20. Section 7. City's Obligation under Sublease. Under the terms of the Sublease, the City shall perform the following obligations: (a) Prepayment of Certain Sublease Pam. (1) Initial Prepayment. Agency shall receive notification of intent to close escrow two weeks in advance. Within 24 hours of confirmation of close of escrow of the transfer of property to the three auto dealers in Planning Area 1 of the Project, the City shall provide a prepayment of a portion of the Sublease rent, to Wells Fargo Bank as a third party administrator ("Administrator"), in an amount equal to One Million Dollars ($1,000,000)(the "Prepayment Amount"), Within twenty-four (24) hours of City providing the Prepayment Amount to Administrator, Developer shall provide an amount equal to Eight Hundred Thousand Dollars ($800,000) to the Administrator. The combined amount of $1.8 million shall be used to reimburse Developer for the cost of constructing the Public Facilities specified on Exhibit "F". Reimbursement draws shall be provided in accordance with Section 7(a)(3). Reimbursed amounts shall be funded in accordance with Section 7(a)(3) below. Any amounts not necessary for the construction of the Public Facilities shall be refunded back to City and Developer on a pro rata basis. In the event that the $1.8 million is not sufficient to complete the Public Facilities, the Developer shall be solely responsible for any additional amounts. (i) As used in this Agreement, the term "Professional Services" means civil engineering and construction staking (and all of their components) but does not include landscaping. Developer shall bid the project (except Professional Services) to three to five qualified firms to render services in the geographic area of the City. Developer hopes to solicit bids from at least five firms. However, if five (5) qualified firms who render services in the geographic area of the City cannot be found, then a less number, but not less than three (3) shall be sent bids. Professional Services shall be bid to a minimum of three (3) qualified firms who render services in the geographic area of the City. CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd (ii) The bid forms and specifications shall be prepared by Developer and reviewed by the City for its approval. City shall review the draft bid forms and specifications within twenty (20) business days following delivery of the draft forms and specifications to the City by Developer and shall review the final bid forms and specifications within five (5) business days following delivery of the final forms and specifications to the City by Developer. Developer and City shall work closely to develop final bid forms and specifications. The bid forms and specifications shall separate public and private improvements. The City and Developer shall jointly review all bids received. Developer shall select the bid winners, subject to the reasonable approval of the City. In the event of any disagreement between Developer and the City the parties shall meet and confer regarding resolution of the issue. Both parties shall negotiate reasonably and in good faith. (iii) The development and construction of the project may be bid as a unit but it is contemplated that the individual work components of the project may bid separately if elected by Developer. It is the intent of the City and the Develop that the Developer will obtain the best quality for the best price in all aspects of the project. (2) When the bids are received, Developer may or may not negotiate with individual bid respondents to improve the price and/or quality of the bid response. In the event that bid that is selected by the Developer contains aggregate costs for either the Professional Services (including, in this instance, landscaping) or the "hard costs" of the project which exceed 50% of the aggregate amount of each category of costs estimated on attached Exhibit F, then Developer and the City shall meet and confer regarding the overages. The 50% measure referred to the preceding sentence shall include amounts which Developer has expended and for which Developer will receive reimbursement. In the event that Developer and the City, negotiating reasonably and in good faith, are unable to arrive at a compromise regarding the excess, then either party shall have the right to terminate this Lease in written notice to the other. During the course of construction, the City shall have the right to approve of any change orders for any contract which exceed $25,000 as an increase in cost. City will review any change order request within five (5) business days following the submission of the request to the City. If Developer and City disagree on the change order, then Developer and the City shall meet and confer regarding the change order and shall negotiate reasonably and in good faith. (3) Reimbursement Procedure. Reimbursement draws shall be made upon proof of actual expenses as provided in this Subsection (3) and shall be verified by the City and a consultant ("Consultant") retained by the City. The expenses of the Consultant, which shall be no more than five percent (5%) of the hard costs of construction of the Public Facilities, shall be a part of the costs of the Public Facilities as specified on attached Exhibit "F" and shall be disbursed to the Consultant upon the joint invoice approval of City and Developer. Developer shall have ten (10) business days to review the invoice of Consultant following submission of the request to Developer. (i) An initial disbursement shall be made to the Developer for previously incurred pre -development costs and fees upon verification of such costs and fees by the City and Consultant in accordance with the provisions of this Subsection (3). 106 000019 C:\My Documents\WPDOCS\DALeaseAmd-Stamko-ftnal.wpd 7 (ii) Prior to each and every disbursement under this Agreement, the conditions specified in Subsection (iii) though (v) shall be satisfied. (iii) At least ten (10) business days prior to a requested disbursement, Developer shall deliver to Consultant and City a request ("Request") for the amount of the Disbursement. The Developer shall certify in the Request that it is accurate and complete. The Request shall specifically identify the nature of each expense, including, but not limited to, by reference to the line items set forth in attached Exhibit F, and shall specify the status of completion of the construction. (iv) City shall review the Request and the accompanying documentation and determine that the work is within the scope of Public Facilities. This review shall occur within ten (10) business days of receipt of Developer's request. For all items approved, payment shall be authorized within fifteen (15) days of the receipt of the request. The City shall advise the Developer of any issues with respect to the amounts requested by the Developer within twenty (20) days of the receipt of the request from Developer. (v) The City shall have received appropriate waivers of mechanics' and materialmen's lien rights and stop notice rights executed by all contractors and other persons rendering service or delivering materials covered by the Request. (vi) Developer shall deliver to City within five (5) business days following the first day of each month: a monthly report which shall set forth the following for the prior calendar month; any force mageure delay; an update of the construction schedule; and any other material matters relating to the completion of the Public Facilities. (vii) Checks shall be issued by Wells Fargo Bank to Developer upon the written request jointly signed by Developer and City. (viii) In the event there is a dispute between the City and Developer regarding any Request, then within five (5) business days following the twenty (20) days specified in Subsection (iv) above, the City, Consultant, and Developer shall meet and confer regarding the disputed amount. If the disputed amount is in excess of $50,000 or when the total of all unresolved disputed amounts equals $50,000, or more, or when construction of the Public Facilities has been completed without regard to the unresolved amount in dispute, then either Developer or the City may request alternative dispute resolution ("ADR") before a retired judge appointed by JAMS, or similar organization. The ADR hearing: 1. Shall be before a judge with experience in construction cost cases; 2. Shall be heard within forty-five (45) days following the date of the request for the ADR; 3. The City and Developer shall divide initially the cost of the ADR, but the judge shall have the right to apportion the costs between the parties in a manner deemed reasonable by the judge and consistent with the decision of the judge in ADR. (4) Subsequent Prepay. The City has the right but not the obligation to prepay either the Base Rental Payments or the Supplemental Rental Payments. In the event of a determination to prepay, the schedule attached hereto as "Exhibit G" and incorporated by this 167 00opfln C:AMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd reference shall be used to determine prepayment amounts. In the event that the City elects to prepay the entire payment, the Sublease would be terminated. (b) Rental Pam. The City agrees to pay to Developer, on a quarterly basis, rental payments ("Rental Payments") for the applicable rental period or portion thereof throughout the term of the Sublease. All Rental Payments shall be allocated as set forth in this Section 7. Rental Payments shall potentially include Base Rental Payments and Supplemental Rental Payments. (1) Amount of Base Rental Payments. Base Rental Payments shall be calculated as follows: From the Sublease Commencement Date and continuing through the term of the Sublease, Base Rental Payments shall be thirty-three percent (33%) of the Sales and Use Tax Revenues generated by businesses or activities located on the Project Site up to a maximum amount of One Hundred Twenty -Two Thousand Two Hundred and Fifty Dollars ($122,250) in any twelve (12) month period of the Sublease. In any twelve (12) month period where the Base Rental Payment is less than $122,250, the amount which is the difference between the amount paid and the $122,250 shall be forgiven and shall be deducted from the First Principal Component, as if paid in full. (2) Amount of Supplemental Rental Payments. Supplemental Rental Payments shall be contingent upon a minimum annual Sales and Use Tax Revenue payment to the City of Five Hundred Thirty Thousand Dollars ($530,000), adjusted annually by the CPI index for Riverside and San Bernardino counties for that year. If the threshold is met, a payment of Seventy - Six Thousand Four Hundred Eleven Dollars ($76,411) shall be made for that year. There shall be ten (10) annual payments of Supplemental Rental Payments. Each Payment shall be due no earlier than: 1) forty-five (45) days after the receipt of the revenue reconciliation report; and 2) the first anniversary date of the first twelve (12) months following the first full calendar quarter in which Sales and Use Tax Revenues are generated by businesses or activities located on the Project Site. If in any year (the same four calendar quarters used to calculate the first annual payment) the minimum annual sales and use tax fails to meet $530,000 this payment including interest shall be forgiven. (3) Time for Payment. The City's obligation to pay Base Rental Payments shall begin on the Sublease Commencement Date. The City shall make quarterly Base Rental Payments to Developer for each rental period ("Rental Period") or portion thereof, which Rental Period shall consist of each calendar quarter. Each Base Rental Payment for a Rental Period shall be due to Developer Forty -Five (45) days after the City receives its Sales and Use Tax Revenue Reconciliation Report for the Rental Period. (4) Form of Rental Payments. Each Base Rental Payment and/or Supplemental Rental Payment shall be paid in lawful money of the United States of America, by warrant or check drawn against funds of the City, and mailed or delivered to the address provided for Developer in Section 17 of this Agreement. (5) Records Required. If requested by the City, Developer shall provide, or cause each business or activity located on the Project Site to provide, to the City, all Sales and Use Tax information. Generally, the City shall rely on the Sales and Use Tax information supplied by the State and the City's accountant consultants. CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 188 000041 9 The City shall maintain sufficient records and accounts to separately identify all Sales and Use Tax Revenues paid to it from businesses and activities located on the Project Site, and shall provide to Developer, at the time of making each Rental Payment, a written accounting with respect to each Payment. (6) Certain Definitions. As used in this Agreement, the following will have the indicated meanings: (i) "First Principal Component" means the amount of $800,000. (ii) "Second Principal Component" means the amount of 500,000. (iii) "Principal Components" means the total of both First Principal Component and Second Principal Component. (iv) "Interest Component": Simple interest on the Principal Components which shall accrue at the rate equal to eight and one-half percent (8.5%) per annum payable as provided in this "Agreement until the Principal Components are paid or forgiven in full. (v) "Leasehold Value" means the total of the Principal Components and the Interest Component. Section 8. Limit on Total PUments. Notwithstanding anything to the contrary herein, the Rental Payments payable by the City to Developer during the term of the Sublease shall not exceed the full amount of the Leasehold Value and are specifically limited to Sales and Use Tax Revenues as described in Section 8 herein. In the event that the Rental Payments over the term of this Agreement do not equal the Leasehold Value due to the fact that certain amounts have been forgiven as set out in `B(1)" and "B(2)", the Developer agrees that no further payments are due and all obligations of the City are satisfied. The Interest Component shall commence to accrue on the date of the Sublease Commencement Date and shall accrue until the Principal Components are paid or forgiven in full or, if the Sublease is terminated validly before such payment as provided in the Agreement then the Interest Component shall cease accruing upon the payment by City to Developer of all amounts which become due to Developer as a result of the termination of this Agreement. Section 9. Source of City's Payment Obligations. The obligation of the City to Developer to pay the Base Rental Payments and/or the Supplemental Rental Payments shall be a special and not a general obligation of the City, and shall be payable solely from the Sales and Use Tax Revenues received by the City from businesses and activities conducted on the Project Site. Prior to the time that the full amount of the Leasehold Value under this Agreement is fully paid to Developer as provided herein, the City shall not pledge or encumber the Sales and Use Tax Revenues derived or to be derived from businesses or activities operating on the Project Site so as to impair Developer's rights hereunder. During the term of this Agreement, any subsequent pledge of the Sale and Use Tax Revenues generated from the businesses C:\My Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd to 189 000022 and activities conducted on the Project Site shall be subject and subordinate to Developer's rights hereunder. Notwithstanding any provision herein to the contrary, in the event that the State of California's allocation of Sales and Use Tax Revenues to the City is changed, revised or otherwise amended after the date of this Agreement, the City and Developer each agree to meet in good faith to revise this Agreement to reflect as closely as possible the original intent of the parties in entering into this Agreement with respect to the allocation of Sales and Use Tax Revenues. Section 10. Rieht of First Refusal. As additional consideration, the City shall have a right of first refusal to purchase lots 4 and 5 in Planning Area II (as such lots are shown in Exhibit 2 to the Specific Plan) for $5.57 per square foot plus 8.5% annual interest until July 1, 2000 and lots 6, 7, 8, and 9 in Planning Area II (as such lots are shown in Exhibit 2 to the Specific Plan) for $4.75 per square foot plus 8.5% interest until December 31, 1999. Section 11. Maintenance Repair. Additions and Improvements to Public Facilities. (a) Operating and Maintenance Expense. Throughout the term of the Sublease, the City shall, at its sole expense, operate, maintain, repair and/or replace as necessary, the Public Facilities (subject to the Sublease related to Adams Street and not including any Public Facilities dedicated to another public entity) and insure that said Public Facilities remain in good order, condition and repair at a level of service consistent with that maintained for similar types of public improvements located elsewhere throughout the City. The parties hereto acknowledge and agree that Developer shall have no obligation to incur any expense of any kind or character in connection with the management, operation, repair, replacement or maintenance of the Public Facilities during the term of the Sublease. Throughout the term of the Sublease, the City shall keep the Public Facilities free and clear of all liens, charges, and encumbrances. Notwithstanding any damage to the Public Facilities from whatever source, the City shall, throughout the term of the Sublease, repair the Public Facilities consistent with this Section without any interruption or abatement of its rental obligations as set forth hereunder. (b) Additions and Improvements to the Public Facilities. The City shall have the right throughout the term of this Agreement, to make any additions or improvements to the Public Facilities, to attach fixtures, structures or signs, and to affix any personal property thereto, provided the use of the Public Facilities for the purposes contemplated in this Agreement is not impaired in any way. Title to all personal property placed in or on any of the Public Facilities shall remain with the City, provided however, that any modifications or improvements which constitute fixtures will automatically become subject to this Agreement. Subject to the foregoing, the title to any personal property, improvements or fixtures which may be placed on the Property by any sublessee or licensee of the City shall be controlled by the terms of the sublease or license contract entered into by the City with such sublessee or licensee. Upon Developer's completion of construction of the Public Facilities and their acceptance by the City, Developer shall have no further obligation of any kind to make any additions, improvements, repairs or other changes to the Public Facilities. In the event that Developer elects to make additions, improvements or other changes to the Public Facilities it shall do so only with the prior written consent of the City. Any such additions, improvements or other changes shall comply 490 00010^3 C:\My Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd �. with the encroachment permit rules of the City and all other applicable City building requirements. Notwithstanding the foregoing, should Developer make application for additional on site improvements beyond those contemplated by the Project, Developer may, at that time, be conditioned to make further improvements to the Public Facilities as part of the approval for such additional on site developments. Section 12. Indemnification. (a) Indemnification by the City. The City agrees for the term of the Sublease, it shall indemnify, defend and hold harmless Developer, its officers, agents, employees, directors and representatives from any loss, claim, expense, and/or penalties arising directly or indirectly from the Public Facilities and the City's operation, maintenance and repair thereof, save and except those losses, claims, expenses and/or penalties arising from the gross negligence or willful misconduct of Developer. Such indemnification shall include, without limitation, indemnification for damage or claims for personal injury, including death, and claims for property damage, and including any costs incurred by Developer in defending against same, including without limitation, actual attorneys' fees. The City represents that it is self -insured as a member of a joint powers insurance authority (the "Authority") as to public liability insurance against claims for bodily injury or death or damage to property occurring upon, or about the improvements. In the event that the City elects to purchase liability insurance in the future rather than remaining self -insured with the Authority, such liability insurance shall, during the term of this Sublease, name Developer as an additional insured to the extent appropriate to comply with the provisions of this Section 12. (b) Indemnification by Developer. The Developer agrees that throughout the term of the Lease, it shall indemnify, defend and hold harmless the City, its officers, agents, employees and representatives from any loss, claim, expense and/or penalties arising directly or indirectly from Developer's construction of the Public Facilities, committed in connection with Developer's performance of or failure to perform its obligations under the terms of the Lease. Developer agrees that throughout the term of the Sublease, it shall indemnify and hold harmless the City, its officers, agents, employees and representatives from any loss, claim, expense and/or penalties arising directly or indirectly from Developer's gross negligence or willful misconduct committed in connection with Developer's performance of or failure to perform its obligations under the terms of the Sublease. Such indemnification, above identified, shall include, without limitation, indemnification for damages or claims for personal injury, including death, and claims for property damage, and including any costs incurred by City in defending against same, including without limitation, actual attorneys' fees. Section 13. Sale, Transfer or Assi nment. The City shall have the right to permit the nonexclusive use of all or any portion of the Public Facilities by any third parry as may be necessary to serve the public purposes of the City, provided however, that no sale, transfer or assignment of all or any portion of the City's rights under the terms of this Agreement shall be construed as relieving the City from any or all of its obligations as set forth in this Agreement. Specifically, it is contemplated that all or portions of those Public Facilities to be constructed adjacent to Highway I I I shall be transferred to the State of California and removed from both the Lease and the Sublease and shall no longer be subject to any part of this Agreement relating to such Lease and Sublease after completion, however, such transfer shall not affect the obligation of the City to pay the full 191 UUQU�4 CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 1 Leasehold Value to Developer according to the terms and limitations of this Agreement. Except as otherwise provided in this Agreement, the Developer shall not assign all or any portion of its rights and obligations hereunder to any successors -in -interest to the Project Site or portion thereof, except with the prior written consent of the City, which consent shall not be unreasonably withheld. Any such assignment shall not relieve Developer of its obligations under the terms of this Agreement, except upon express written consent of the City. Notwithstanding anything contained herein to the contrary, the Developer may, without the prior written consent of the City, assign any or all of its rights and obligations hereunder to any Affiliated Entity. For purposes of this Agreement, an "Affiliated Entity" shall mean any corporation, partnership, limited liability company or other form of business entity in which Developer has not less than a fifty percent (50%) ownership interest and not less than fifty percent (50%) management control. Any sale, transfer or assignment of the rights and obligations of either party under the terms of this Agreement shall require thirty (30) days prior written notice to the other party of such assignment, provided however, that no such prior written notice shall be required in connection with any of the following: (1) An assignment by Developer which consists of the conveyance for the purpose of securing loans to be used solely for the financing of the direct and indirect costs of the Public Facilities, including without limitation, financing costs, interest and commissions, planning, design, construction, development and leasing of the Public Facilities to be constructed by Developer, provided that the assignee of any such assignment shall receive only the right to collect Base Rental Payments due under the terms of this Agreement. (2) Transfers resulting from a sale of Developer's interest in the Public Facilities, or the Dedicated Property, or Existing Right of Way, or any portion thereof at foreclosure (or a conveyance thereof in lieu of a foreclosure) pursuant to a foreclosure thereof by a lender. (3) Subject to the terms contained in Section II(a) of this Agreement, the conveyance or dedications of any portion of the Public Facilities, or the Dedicated Property, or the Existing Right of Way, to the City or other appropriate governmental agency, or the granting of easements or permits to facilitate the development of the Project. Section 14. Eminent Domain. If the whole of the Public Facilities shall be taken under the power of eminent domain, then this Agreement shall terminate as of the date possession shall be so taken. If less than the whole of the Public Facilities shall be taken under the power of eminent domain, then this Agreement shall continue in full force and effect and shall not be terminated by virtue of such taking, and the parties hereto waive the benefit of any law to the contrary, and in such event there shall be a partial abatement of the Base Rental Payments due under the terms of this Agreement. Any award made in eminent domain proceedings for the taking or damaging of the Public Facilities, in whole or in part, shall be paid to Developer to the extent of the then remaining balance of the Principal Component of the Leasehold Value, plus any portion of the Interest Component which is then accrued but not yet paid. The amount of the award which is in excess of the sum needed to pay Developer the then remaining balance of the Principal Component, plus any accrued but then unpaid portion of the Interest Component, shall be paid to the City. C:\My Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd Section 15. Liens. The City shall pay or cause to be paid when due, all sums of money that may become due for, or purporting to be for, any labor, services, materials, supplies or equipment alleged to have been furnished or to be furnished to or for the Public Facilities throughout the term of the Sublease and which may be secured by any mechanics', materialmen's or other lien against the Public Facilities and/or Developer's interest therein, and the City shall further cause each such lien to be fully discharged and released, provided however, that if the City and/or Developer desires to contest any such lien, that party may do so upon posting security in a form and amount acceptable to the other party sufficient to pay said sums in the event that said liens are reduced to final judgment. Developer shall cooperate with the City in its efforts to discharge and release any liens pursuant to this Section 15 and shall further discharge and release or cause to be discharged and released any liens created directly or indirectly by Developer on or against the Public Facilities. Section 16. Quiet Enjoyment. The parties hereto mutually covenant and agree that the City, by keeping and performing the covenants contained herein, shall at all times during the term of this Agreement peaceably and quietly, have, hold and enjoy the Public Facilities without hindrance or molestation by Developer or anyone whose rights arise through Developer. Section 17. Notices. All notices, demands, offers, and correspondence and other communications required or permitted under this Agreement shall be in writing and shall be personally delivered or sent by registered or certified mail, postage prepaid. Any notices sent shall be deemed received upon the earlier of: (a) If personally delivered, the date of delivery to the address of the person receiving such notice; or (b) If mailed, three (3) business days after the date of posting by the United States Post Office, in the form of and at the address set forth below: If to the City: City of La Quinta Attention: City Manager 78-495 Calle Tampico La Quinta, California 92253 If to Developer and/or Owner: Stamko Development Co. 10100 Santa Monica Boulevard, Suite 400 Los Angeles, California 90067 Attention: Christine F. Clarke C:\My Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 103 OOOU12O 14 A Party may change its address by giving notice and other writing to the other Party in accordance with the notice provisions of this Section. Thereafter, notices, demands, correspondence and other communications shall be delivered to the new address. Section 18. Taxes. During the term of this Agreement, the City shall be responsible for and pay when due any ad valorem taxes, or special assessments, if any, levied upon the Dedicated Property, and/or Existing Right of Way, and/or the Public Facilities or upon any parties' interest therein. The parties hereto agree to cooperate with each other in any effort to apply for exemption from any such tax or assessment. Throughout the term of this Agreement, Developer shall pay any gross receipt taxes, income taxes or any other form of tax whatsoever which may be levied upon Developer's rental income derived from this Agreement. Section 19. Waiver. The waiver by either party of any breach by the other party of any term, covenant or condition hereof shall not operate as a waiver of any subsequent breach of the same or any other term, covenant or condition hereof. To be effective, any waiver must be in writing and signed by an authorized representative of the party bound by said waiver. Section 20. Default by the City. If the City fails to pay any Base Rental Payments and/or Supplemental Rental Payments due hereunder within ten (10) days from the date that such Base Rental Payment and/or Supplemental Rental Payments is due and payable, or if the City fails to keep any other terms, covenants or conditions herein for a period of thirty (30) days after written notice thereof from Developer to the City, or if the City shall abandon or vacate the Public Facilities, or if the City's interest in this Agreement or any part thereof shall be assigned or transferred in violation of the terms of this Agreement, either voluntarily or by operation of law, then in such event the City shall be deemed to be in default under the terms of this Agreement. If the Developer sends a written notice of default as provided in the preceding paragraph, and the City fails to remedy any default described in the notice then following thirty (30) days, Developer has the right, at its option, and without further notice or demand, to do any one or more of the following (and in connection with obtaining any equitable relief, City hereby acknowledges that Developer may seek such equitable relief): (1) Take any action or legal proceeding to recover Base Rental Payments and/or Supplemental Rental Payments as they come due pursuant to Section 7 of this Agreement. (2) To terminate this Agreement and all rights of City under this Agreement by giving to City a written notice of termination. Upon termination, Developer may recover the worth at the time of award of any unpaid Base Rental Payments and/or Supplemental Rental Payments earned at the time of such termination. The "worth at the time of award" is computed by allowing interest from the date of termination until the time of award at the rate of eight and one-half percent (8.5%). The maximum amount recoverable shall be the amount of Base Rental Payments and/or Supplemental Rental Payments plus interest due at the time of termination. 0000147 194 C:\My Documents\WPDOCS\DALeaseAmd-Stamko-tinal.wpd 15 (3) If permitted under applicable law, to continue this Agreement in effect and obtain a judgment and recover the amounts set forth in Subsection (2) above. (4) Obtain a preliminary and permanent injunction from a court of competent jurisdiction directing the City to make Base Rental Payments and/or Supplemental Rental Payments under this Agreement as they become due pursuant to the terms and conditions of this Agreement. (5) Obtain a preliminary and permanent injunction from a court of competent jurisdiction directing the City to perform any other terms and conditions of this Agreement. (6) Recover from the City all costs and fees incurred by it (including attorneys' fees and court costs) in enforcing its rights under this Agreement, including, but not limited to collecting amounts due under this Agreement. Without limiting the generality of the foregoing, Developer shall have the remedy described in California Civil Code Section 1951.4, providing that Developer may elect to continue this Agreement in effect, after the City's breach and abandonment, and recover rent as it becomes due, if the City has the right to sublet or assign, subject only to reasonable limitations. Section 21. Default by Developer. If Developer shall fail to keep any terms, conditions or covenants contained in this Agreement for a period of thirty (30) days after written notice thereof from the City to Developer, or if Developer shall file any petition or institute any proceedings wherein Developer asks or seeks to be adjudicated a bankrupt, or to be discharged from any or all of its debts or obligations, or offers to its creditors to effect a composition or extension of time to pay Developer's debts, or Developer seeks a reorganization or seeks to effect a plan of reorganization or readjustment of Developer's debts, or if any such petition or proceeding of a same or similar nature shall be filed, or instituted against Developer, and Developer shall fail to have such petition or proceeding dismissed within sixty (60) days of its filing, then and in such event Developer shall be deemed to be in default hereunder. If Developer should, after receiving written notice from the City, fail to remedy any such default within sixty (60) days of delivery of said notice (sixty-five (65) days if the notice is sent by mail), then the City shall have the right, at its option, to terminate this Agreement by delivering written notice of such intent to terminate to Developer not less than sixty (60) days prior to the effective date of such termination, and after the effective date of such termination, the City shall be relieved of all obligations hereunder, provided however, in the event that the termination occurs after the completion of the Public Facilities construction and their acceptance as complete by the City, the City shall continue to make the Base Rental Payments and Supplemental Rental Payments pursuant to Section 7 hereof for the thirteen -year term that the Agreement would have been in effect if not terminated, to Developer or its successor in interest, as long as the City continues to use the Public Facilities, C:\My Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 195 0000128 16 Section 22. Hazardous Materials. (a) Developer's Representations. Developer hereby represents that, to the best of its knowledge, the Dedicated Property is not in violation of any currently existing federal, state or local hazardous materials laws. Developer further agrees that it shall indemnify, protect, defend and hold harmless the City from and against any and all claims, liabilities, suits, losses, costs, expenses and damages arising from any breach of the above representation, including but not limited to attorneys' fees arising from any claim for loss or damage to property, including the Dedicated Property, and the improvements thereon; for personal injury or death of persons; or for the cost of remediation necessitated by the presence of hazardous materials which existed on the Dedicated Property prior to the Commencement Date of the Sublease and not otherwise resulting from the City's use or possession of the Dedicated Property. (b) Citespresentation. City hereby represents that, to the best of its knowledge, the property constituting the Existing Right -of -Way is not in violation of any currently existing federal, state or local hazardous materials laws. City further agrees that it shall indemnify, protect, defend and hold harmless the Developer from and against any and all claims, liabilities, suits, losses, costs, expenses and damages arising from any breach of the above representation, including but not limited to attorneys' fees arising from any claim for loss or damage to property, including the Existing Right -of -Way, and the improvements thereon; for personal injury or death of persons; or for the cost of remediation necessitated by the presence of hazardous materials which existed on the Existing Right -of -Way prior to the commencement date of the Lease and not otherwise resulting from the Developer's use or possession of the Existing Right -of -Way. Section 23. Attorneys' Fees In any action or arbitration arising directly or indirectly out of the terms of this Agreement, the prevailing party shall be entitled to all costs and expenses, including without limitation, actual attorneys' fees and costs of suit whether in equity or in an action at law, as may be necessary to enforce the terms and conditions of this Agreement. Section 24. Option to Purchase. The City at any time during the term of this Agreement, shall have the option to purchase the Public Facilities in the manner provided in this Section. The City may exercise its option to purchase the Public Facilities by giving Developer not less than sixty (60) days' prior written notice of its intent to exercise such option. The City's notice of intent to exercise its option shall specify the date upon which the purchase shall occur ("Purchase Date"), which Purchase Date must coincide with the due date for the City's payment to Developer of a Base Rental Payment as such dates are defined in Section 7 of this Agreement. Upon exercising its option to purchase the Public Facilities, the purchase price ("Purchase Price") to be paid by the City to Developer shall be equal to the outstanding balance, as of the Purchase Date, of the Principal Components of the Leasehold Value attached hereto, plus any portion of the Interest Component which is accrued and unpaid on the Purchase Date. On the Purchase Date, the City shall pay the full amount of the Purchase Price to Developer in immediately available funds, and the City shall also pay at that time, in cash or other immediately available funds, the amount of any Base Rental Payments which have accrued prior to CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 196 OOOU129 17 the Purchase Date, but which Base Rental Payments have not yet been paid to Developer. Upon the City's exercise of its option and upon the City's payment to Developer of the Purchase Price and Base Rental Payments as provided under the terms of this Section 24, all right, title and interest of Developer in and to the Dedicated Property, Existing Right of Way, and the Public Facilities shall be transferred to the City "as is" and without warranty. This option to purchase shall not effect the payments, if any, due under the Supplemental Rental Payments Section 7(b)(2). Section 25. Recordation and Filing. Upon full execution of this Agreement, Developer shall record this Agreement in the Official Records of the County Recorder for the County of Riverside, California. Section 26. Entire Agreement. This Agreement contains the entire Agreement of the parties hereto with reference to the subject matter hereof, and supersedes all negotiations or previous agreements between the parties with respect to all or any portion of the subject matter hereof. Section 27. Validity and Severability. If any one or more of the terms, provisions, promises, covenants or conditions contained in this Agreement shall to any extent be adjudged invalid, unenforceable, void or voidable for any reason whatsoever by a final decision of a court of competent jurisdiction, then each of the remaining terms, provisions, promises, covenants and conditions contained herein shall remain unaffected thereby and shall be valid and enforceable to the fullest extent permitted by law. If for any reason this Agreement shall be held by a court of competent jurisdiction to be void, voidable, or unenforceable by Developer or by the City, or if for any reason it is held by such a court that the covenants and conditions of the City or Developer hereunder, including covenants to pay rents as set forth in this Agreement, are unenforceable for the full term hereunder, then and in such event for and in consideration of the right of the City to possess, occupy and use the Public Facilities and the right of Developer to occupy the Project, which rights in such event are hereby granted, this Agreement shall thereupon become and shall thereafter be deemed to be a lease from year to year under which the annual rentals herein specified will be paid by the City and Developer respectively. Section 28. HeadinEiS. Any headings contained in this Agreement are solely for the purposes of convenience of reference and shall not constitute a part hereof nor shall they be utilized to interpret any term or condition contained in this Agreement. Section 29. Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original, and all of which when taken together shall be deemed a single original. 197 CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 000430 Section 30. Governing Law. This Agreement shall be construed and governed by the laws of the State of California. Section 31. Time of the Essence. Time is of the essence with respect to this Agreement. Section 32. Amendments. This Agreement may be amended at any time, and from time to time provided, however, that no amendment of this Agreement shall be effective unless such amendment is in writing and signed by all parties hereto. Section 33. Other Documents. The parties hereto agree that each shall, concurrently herewith or at any time hereafter, upon reasonable demand by the other, execute any other documents or instruments and do or cause to be done any other acts as may be necessary or convenient to carry out the intent and purposes of this Agreement. Section 34. Successors. Subject to the provisions contained herein, this Agreement shall be binding upon and inure to the benefit of the successors and assigns of the respective parties hereto. Section 35. Authori . The persons executing this Agreement on behalf of the parties hereto warrant that (a) the party is duly organized and existing; (b) they are duly authorized to execute and deliver this Agreement on behalf of said party; (c) by so executing this Agreement, such party is formally bound to the provisions contained herein; (d) the entering into of this Agreement does not violate any provision of any other agreement to which that party is bound; and (e) there is no litigation nor legal proceeding or other legal impediment which would prevent the parties from entering into this Agreement. Section 36. Exhibits and Recitals. The Recitals contained in this Agreement, and each and every one of the Exhibits referenced in this Agreement shall be deemed to be incorporated herein by this reference. The Exhibits attached hereto are as follows: Exhibit Description "A" Legal Description of Project Site `B-1" Legal Description of Right -of -Way Dedication (Adams) "B-2" Legal Description of Right -of -Way Dedication (Highway 111) 193 000P31 C:\My Documents\WPDOCS\DALeaseAmd-Stamko-tinal.wpd 9 "C-1" Depiction of Right -of -Way Dedication (Adams) "C-2" Depiction of Right -of -Way Dedication (Highway 111) "D-1" Legal Description of Existing Right -of -Way (Adams) "D-2" Legal Description of Existing Highway I I I Right -of -Way "E-1" Depiction of Existing Right -of -Way (Adams) "E-2" Depiction of Existing Highway I I I Right-of-way "F" Public Facilities "G" Prepayment Schedules IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and attested to by the proper officers for each of the parties and the official seals of the parties to be hereto affixed, all as of the day and year first above written. Date: ATTEST: SAUNDRA L. JUHOLA, City Clerk City of La Quinta, California APPROVED AS TO FORM: DAWN HONEYWELL, City Attorney City of La Quinta, California so Date: By: Its: CITY OF LA QUINTA, a municipal charter city THOMAS P. GENOVESE, City Manager STAMKO DEVELOPMENT CO., a California limited partnership 199 000032 CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 20 EXHIBIT "A" TO EXHIBIT "C" OF THE DEVELOPMENT AGREEMENT LEGAL DESCRIPTION OF PROJECT SITE PROJECT SITE IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, THAT PORTION OF THE NORTHWEST ONE -QUARTER LYING SOUTHERLY -OF STATE HIGHWAY I I I AND THE SOUTHWEST ONE -QUARTER OF SECTION 29, TOWNSHIP 5 SOUTH, RANGE 7 EAST, S.B.M., DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST CORNER OF SAID SOUTHWEST ONE -QUARTER OF SECTION 29; THENCE NORTH 00 20'28" WEST ALONG THE WESTERLY LINE OF SAID SOUTHWEST ONE -QUARTER A DISTANCE OF 1087.25 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING ALONG SAID WESTERLY LINE NORTH 00 20'08" WEST A DISTANCE OF 1565.71 FEET TO THE NORTHWEST CORNER OF SAID SOUTHWEST ONE - QUARTER OF SECTION 29; THENCE NORTH 00 20'08" WEST, ALONG THE WESTERLY LINE OF THE NORTHWEST ONE -QUARTER OF SECTION 29, A DISTANCE OF 318.50 FEET TO THE BEGINNING OF A NONTANGENT CURVE, CONCAVE NORTHERLY, HAVING A RADIUS OF 2555.00 FEET, A RADIAL LINE PASSING THROUGH SAID POINT BEARS SOUTH 19 32'07" WEST, SAID POINT BEING ON THE SOUTH LINE OF THE STATE HIGHWAY CONVEYED TO THE STATE OF CALIFORNIA BY DEED RECORDED AUGUST 23, 1968 AS INSTRUMENT NO. 82038, OFFICIAL RECORDS; THENCE EASTERLY ALONG SAID SOUTHERLY LINE AND ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 11 53'09", AN ARC DISTANCE OF 530.03 FEET; THENCE CONTINUING ALONG SAID SOUTHERLY LINE AND TANGENT TO LAST MENTIONED CURVE, SOUTH 82 21'02" EAST A DISTANCE OF 1287.12 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE NORTHERLY, HAVING A RADIUS OF 5055.00 FEET; THENCE CONTINUING ALONG SAID SOUTHERLY LINE AND EASTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 06 03' 12", AN ARC DISTANCE OF 534.06 FEET TO A POINT, A RADIAL LINE PASSING THROUGH SAID POINT BEARS SOUTH 01 35' 46" WEST, SAID POINT BEING ON THE WESTERLY LINE OF THE EASTERLY 330.00 FEET OF THE NORTHEAST ONE -QUARTER OF THE SOUTHWEST ONE -QUARTER OF SAID SECTION 29; CAMv Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd �� 0 000033 PROJECT SITE LEGAL DESCRIPTION CONTINUED THENCE PARALLEL WITH THE EASTERLY LINE OF THE SOUTHWEST ONE -QUARTER OF SAID SECTION 29 AND NONTANGENT TO LAST MENTIONED CURVE, SOUTH 00 13'55" EAST A DISTANCE OF 1311.87 FEET TO A POINT ON THE SOUTHERLY LINE OF THE NORTHEAST ONE -QUARTER OF THE SOUTHWEST ONE -QUARTER OF SAID SECTION 29; THENCE NORTH 89 51'46" WEST ALONG SAID SOUTHERLY LINE A DISTANCE OF 330.01 FEET TO THE NORTHWEST CORNER OF THE- EASTERLY 660.00 FEET OF THE SOUTHEAST ONE -QUARTER OF THE SOUTHWEST ONE -QUARTER OF SAID SECTION 29; THENCE SOUTH 00 13' 55" EAST ALONG SAID WESTERLY LINE A DISTANCE OF 239.25 FEET; THENCE NORTH 89 51' 38" WEST A DISTANCE OF 1987.25 FEET TO THE TRUE POINT OF BEGINNING. SUBJECT TO EXISTING EASEMENTS OF RECORD. COMPRISING 87.72 ACRES, MORE OR LESS. 201. CAMy Documents\WPDOCS\DALeaseAmd-Stamko-final.wpd 0,00034 EXHIBIT "B-1" OF EXHIBIT "C" LEGAL DESCRIPTION RIGHT OF WAY DEDICATION — ADAM STREET A PORTION OF THE EASTERLY 25.00 FEET OF THE WESTERLY 55.00 FEET OF THE SOUTHWEST ONE QUARTER OF SECTION 29, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN, IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWESTERLY CORNER OF SAID SECTION 29, THENCE ALONG THE WESTERLY LINE OF SAID SECTION 29 NORTH 00020'08" WEST A DISTANCE OF 1087.25 FEET; THENCE ALONG THE WESTERLY PROLONGATION OF THE SOUTHERLY LINE OF THAT PARCEL OF LAND DESCRIBED IN DEED RECORDED AUGUST 2, 1995 AS INSTRUMENT NO. 251766, RECORDS OF SAID RIVERSIDE COUNTY, SOUTH 89051'43" EAST A DISTANCE OF 30.00 FEET; THENCE NORTHERLY ALONG A LINE PARALLEL WITH AND 30.00 FEET EASTERLY OF THE WESTERLY LINE OF SAID SECTION 29 NORTH 00020'08" WEST A DISTANCE OF 1110.16 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING ALONG SAID PARALLEL LINE NORTH 00020'08" WEST A DISTANCE OF 225.79 FEET; THENCE NORTH 89039'52" EAST A DISTANCE OF 25.00 FEET TO A POINT ON A LINE PARALLEL WITH AND 55.00 FEET EASTERLY OF THE WESTERLY LINE OF SAID SECTION 29; THENCE SOUTHERLY ALONG SAID LINE SOUTH 00020'08" EAST A DISTANCE OF 225.79 FEET; THENCE NORTH 89039' 52" WEST A DISTANCE OF 25.00 FEET TO THE POINT OF BEGINNING. SAID PORTION CONTAINS 5,645 SQUARE FEET, MORE OR LESS. THE ABOVE DESCRIPTION BEING SHOWN ON THE ATTACHEDIV No. EXHIBIT "C-1" AND HEREBY BEING MADE APART HEREOF. v No. 6687 O 4403821SURVEYWAP\RWADAMS.d0C KII 0 40382.000 Exp. D6/30/00 P ARED ljN E SUPERVISION OF LEH DATE KEITH I TERNATIONAL. - PALM DESERT 760-346-9844 760.346936& r�.U�� EXHIBIT "B-2" OF EXHIBIT "C" LEGAL DESCRIPTION RIGHT OF WAY DEDICATION - HIGHWAY 111 A PORTION OF THE NORTHWEST ONE QUARTER AND THE SOUTHWEST ONE QUARTER OF SECTION 29, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN, IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE WEST ONE QUARTER CORNER OF SAID SECTION 29; THENCE NORTH 89039'42" EAST A DISTANCE OF 55.00 FEET; THENCE ALONG A LINE PARALLEL AND 55.00 FEET EASTERLY OF THE WESTERLY LINE OF SAID SECTION 29 NORTH 00020' 18" WEST A DISTANCE OF 251.83 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING NORTH 00°20' 18" WEST A DISTANCE OF 3.29 FEET TO A POINT ON THE SOUTHERLY RIGHT OF WAY OF HIGHWAY 111; THENCE NORTH 51031'44" EAST A DISTANCE OF 50.59 FEET TO A POINT ON A CURVE HAVING A RADIAL BEARING OF NORTH 17024'49" EAST; THENCE ALONG THE ARC OF SAID CURVE CONCAVE NORTHERLY HAVING A RADIUS OF 2555.00 FEET THROUGH A CENTRAL ANGLE OF 09038'32" A DISTANCE OF 429.98 FEET; THENCE CONTINUING ALONG THE SOUTHERLY RIGHT OF WAY LINE OF SAID HIGHWAY 111 SOUTH 82021'04" EAST A DISTANCE OF 992.56 FEET; THENCE SOUTH 07038'56" WEST A DISTANCE OF 15.00 FEET TO A POINT ON A LINE PARALLEL WITH AND 15.00 FEET SOUTHERLY OF THE SOUTHERLY RIGHT OF WAY OF HIGHWAY 111; THENCE ALONG A LINE PARALLEL WITH AND 15.00 FEET SOUTHERLY OF THE SOUTHERLY RIGHT OF WAY OF HIGHWAY 111 NORTH 82021'04" WEST A DISTANCE OF 992.56 FEET TO A POINT OF CURVATURE; THENCE CONTINUING ALONG A LINE PARALLEL WITH AND 15.00 FEET SOUTHERLY OF. THE SOUTHERLY RIGHT OF WAY OF HIGHWAY 111 ALONG THE ARC OF A CURVE CONCAVE NORTHERLY HAVING A RADIUS OF 2570.00 FEET THROUGH A CENTRAL ANGLE OF 09045'53" A DISTANCE OF 438.00 FEET; THENCE SOUTH 53032' 16" WEST A DISTANCE OF 37.16 FEET TO THE TRUE POINT OF BEGINNING. SAID PORTION CONTAINS 33,991 SQUARE FEET, MORE OR LESS. THE ABOVE DESCRIPTION BEING SHOWN ON THE ATTACHED EXHIBIT "C_2" AND HEREBY BEING MADE A PART HEREOF. 1 ° No. 6687 0:140382\SURVEYWIAPIRW-111.doc KII # 40382.000 Exp. 06/30/00 P PAR D//T_N/DE E SUPERVISION OF / /G1 /November 12- 1998 �-DALrKVLLERER DATE KEITH INTERNATIONAL. - PALM DESERT 760-346-9644 2 U 37s0-346-93e� o 3 6 EXHIBIT "C-1" OF EXHIBIT "C" W 1/4 COR SEC 29 T5S, R7E, SBM NBT39'5f E I 25.00' N N T.P.O.B. NW39'5f E I 25.00' H W g PARCEL OF LAND is SHOWN IN DEED RECORDED 0 AUGUST 2, 1995 c AS INST. 251766. G N ; 0 i bN iCW Z L O N NBT51'43'W 1987.24' —� AVENUE_48 _ P.O.B. SW CDR SEC 29 SCALE 1n=300' T5S, RX, SBAI 0 150 300 600 900 RIGHT OF WAY DEDICATION — ADAMS STREET —Planning PREPARED UNDER THE SUPERVISION OF: cml6p LAND SU KEITH Engineering VF�S�F KE((Fy�`F� —Archituture INTERNATIONAL -Architecture ° No. 6687 � P _Land INC. Cory:,mtan �� y Exp. 06/�/ao PALM DESERT DIVISION Management 41-855 DDAROWALK SUI1E 101 s PALM DESERT, CA 92211 DALE K LEHER ATE: (760) 346-9644 . FAx (760) 346-9368 LS U V. 6-30-00 t 1 e=09'38'3T R=2555.00' L=429.98' T=215.49' U \ ,= W c, K m N d N H EXHIBIT "C-2" OF EXHIBIT "C" HIG�_111 ys2.56� R=2570.00' 2101 11 �— 992.56, L=438.00' NW 1/4 SEC 29 _ _ _ _ _ _ _ — — — — ��1�53' SW 1%4 SEC 29 � SEE DETAIL BELOW w LaJ Qf Ln H Lil W LINE TABLE LINE BEARING LENGTH Tt N8739'4TE 55.00' T2 N00'20'1erW 251.83' T3 NO720'11rW 3.29' T4 N51'31'44'E 50.59' T5 N07*38'56"E 15.00' 76 145732'16'E 37.16' \ \HI GHwAY 1 / ";24' 1 T3 T.P.O.B. �F% 0 0 N U �Cr L-J r SCALE 1" =400' 0 200 400 800 1200 DETAIL SCALE 1" =100' 0 50 100 200 300 RIGHT OF WAY DEDICATION - HIGHWAY 111 _� PREPARED UNDER THE SUPERVISION OF: �SEo `A KEITHKEQ acu9re F'Sf� lQ� INTERNATIONAL -; ch ��e No. 6687 -per" !2�1, /xvoos/00INC. 5�^e,^�9. ar� E,,. �i�i� ion PALM PALM DESERT DIVISION Monegement 41-865 80 MA1x 0 SlA1E 101 r PALM DESERT. G 0 92211 DALE KE EHER DATE: (760) 346-9844 s FAX (760) 346-9368 LS 6687 EXP. 6-30-00 EXHIBIT "D-1" OF EXHIBIT "C" EXISTING RIGHT OF WAY ADAMS STREET A PORTION OF THE NORTHWEST ONE QUARTER AND THE SOUTHWEST ONE QUARTER OF SECTION 29, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN, IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE WEST ONE QUARTER CORNER OF SAID SECTION 29, THENCE ALONG THE WESTERLY LINE OF THE NORTHWEST QUARTER OF SAID SECTION 29 NORTH 00020' 18" WEST A DISTANCE OF 255.12 FEET; THENCE NORTH 89039'42" EAST A DISTANCE OF 55.00 FEET; THENCE SOUTH.00020' 18" EAST A DISTANCE OF 255.12 FEET; THENCE SOUTH 00020'08" EAST A DISTANCE OF 200.00 FEET; THENCE SOUTH 89039'52" WEST A DISTANCE OF 25.00 FEET; THENCE SOUTH 00020'08" EAST A DISTANCE OF 255.79 FEET; THENCE SOUTH 89039'52" WEST A DISTANCE OF 30.00 FEET; THENCE NORTH 00020'08" WEST A DISTANCE OF 455.75 FEET TO THE POINT OF BEGINNING. SAID PARCEL CONTAINS 32,703 SQUARE FEET, MORE OR LESS. THE ABOVE DESCRIPTION BEING SHOWN ON THE ATTACHED EXHIBIT "E-1" AND HEREBY BEING MADE A PART HEREOF. 0:\403821S U RVEYIMAPIR W ADAMEX.doe KII 0 40382.000 E( No. 6687 Exp. 06/30/00 z REZUR SUPERVISION OF DX694m,fLDATE KEITH INTERNATIONAL - PALM DESERT 760-346-9844 760-346-9368 EXHIBIT "D-2" OF EXHIBIT "C" EXISTING RIGHT OF WAY HIGHWAY 111 A PORTION OF THE NORTHWEST ONE QUARTER OF SECTION 29, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN, IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE WEST ONE QUARTER CORNER OF SAID SECTION 29, THENCE ALONG THE WESTERLY LINE OF THE NORTHWEST QUARTER OF SAID SECTION 29 NORTH 00020' 18" WEST A DISTANCE OF 255.12 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING ALONG THE SAID WESTERLY LINE NORTH 00020' 18" WEST A DISTANCE OF 121.99 FEET TO A POINT ON THE CENTERLINE OF HIGHWAY 111, SAID POINT BEING ON A NON -TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIAL BEARING OF NORTH 19059'33" EAST; THENCE ALONG THE ARC OF SAID CURVE HAVING A RADIUS OF 2500.00 FEET THROUGH A CENTRAL ANGLE OF 12020'36" A DISTANCE OF 538.59 FEET; THENCE SOUTH 82021'04" EAST A DISTANCE OF 992.56; THENCE SOUTH 07038'56" WEST A DISTANCE OF 55.00 FEET; THENCE NORTH 82021'04" WEST A DISTANCE OF 992.56 FEET TO A POINT OF CURVATURE; THENCE ALONG THE ARC OF SAID CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 2555.00 FEET THROUGH A CENTRAL ANGLE OF 09038'32" A DISTANCE OF 429.98 FEET; THENCE SOUTH 51031'44" WEST A DISTANCE OF 50.59 FEET; THENCE SOUTH 89039'42" WEST A DISTANCE OF 55.00 FEET TO THE TRUE POINT OF BEGINNING. SAID PARCEL CONTAINS 87,812 SQUARE FEET, MORE OR LESS. THE ABOVE DESCRIPTION BEING SHOWN ON THE ATTACHED E)GHBTT "E-2" AND HEREBY BEING MADE A PART HEREOF. G�,SE No. 6687 Exp. 06/30/00 PRSRARED UNDERSHE SUPERVISION OF -DACE MLEHER - - —`- DATE 0:4W382\SURVEYIMAPIRW-111 EX.doc KEITH INTERNATIONAL. - PALM DESERT KI 18 40382.000 76"46-98" 760-346-9368 EXHIBIT "E-1" OF EXHIBIT "C" N89'39'4f E 55.00' H/GHWdv _ W 1/4 CDR SEC 29 T5S, R7E. SBM WI Wi 3 1n s 0 z N8T39'5TE 25.00' NST39'5f E 30.00, PARCEL OF LAND SHOWN IN DEED RECORDED AUGUST 2, 1995 AS INST. 251766. SCALE 1" =300' 0 150 300 600 900 I EXISTING RIGHT OF WAY - ADAMS STREET I -Pbnninq KEITH E gi neering INTERNATIONAL -Architecture -° re INC. -_LOW Surveying PALL[ DESERT DIVISION tion Mar gementent 41-865 OWMALK a SURE 101 . PALM DEW, CA 0 92211 (760) 346-9044 • FAX (760) 346-9368 PREPARED UNDER THE SUPERVISION OF: Eo LAND S KEZZ v O No. 6687 C�. Exp. 06/30/00 DALE K HER DATE: srq LS 6687 EXP. 6-30-00 A �2 A-1720.36' R-2500.00' L=538.59' T-270.34" T.P.O.B. 'N- �I EXHIBIT "E- 2" OF EXHIBIT "C" HIGH 11 l a0g3s 3z' :S�EC 82.21'o4'W 56, R=2555.00' 992. L=429.98' NW i/4 29 -------sw11Tz9— h —12, — — J L►J LLJ LINE TABLE Of I•— LINE BEARING LENGTH Cn T1 N00'20'18'W 255.12' T2 N00'20'ITW 121.99' T3 N0738'56'E 55.00' Q T4 N51'31'447E 50.59' Q T5 N8739'4iE 55.00' SCALE 1" =400' 0 200 400 800 1200 I EXISTING RIGHT OF WAY - HIGHWAY 111 I _Pi�v PREPARED UNDER THE SUPERVISION OF: SEo LANo s� KEITH E"�t"nn ��oP�� KE``LJ_ 4 — INTERNATIONAL - M`^n. No. 6687 INC. -Conriri�t� « / 2 ¢� Up. 06/30/00 Lond PAVE DESERT DIVISION tb,,,y.,,,.,,t 6 41-M 80MALK • M 101 . PALM OEM, CA o 92211 DALE KE EHER DATE: sry (760) 346-9844 6 FAX (760) 346-9368 LS 6687 EXP. 6-30-00 I 1 EXHIBIT ' F" TO EXHU3IT "C" OF THE DEVELOPMENT AGREEMENT PUBLIC FACILITIES FOR PLANNING AREA I 1. ADAMS STREET IMPROVEMENTS (From Highway 111 to 47th Avenue) 41jANTITY UNIT UNIT COST TOTAL COAT Rough Grading 1 LS $ 4,013.00 $ 4,013 Existing Pavement Saw Cut 11570 LF 0.40 628 Existing Pavement Removal 400 SF 0.60 240 1 120 LF 4.00 480 Existing Curb Remova Pavement (including Westside.Pavement Widening) 22,150 SF 6" Type 'D' Curb 650 LF Type A-6 Curb 455 LF 10' Wide Cross Cutter 11830 SF Access Ramps/Corner Cutbacks 2 EA 6' Sidewalk 2,710 SF Redwood Header 360 LF Unclassified Excavation/ Removal 1 LS Water/Dust Control 1 LS Traffic Control 1 LS Signing and Striping 1 LS Mobilization 1 LS Parkway Landscaping 1 LS 1.92 42,528 8.00 5,200 10.00 41550 3.50 6,405 750.00 1,500 2.50 6,775 2.00 720 15,000.00 15,000 8,000.00 81000 8,000.00 8,000 10,000.00 10,000 10,000.00 10,000 22,740.00 22,740 f) 41 2 0 Exhibit F To Exhibit C Public Facilities Page Two Landscaped Median 1 LS 32,700.00 32,700 Dry Utilities 41950 LF 286,548.00 286,,E ADAMS STREET IMPROVEMENT ESTIMATED HARD COSTS $ 466,027 2. HIGHWAY 111 IMPROVEMENTS (West of La Quinta Drive To Adains Street) UNIT TOTAL �TF.id Q1jANTITY UNIT COST COST R h Grading 1 LS $ 4,013.00 $ 4,013 oug Existing Pavement Removal To Subgrade Pavement 8' Meandering Sidewalk loll Wide Cross Gutter Type Al-8 Curb and Gutter Access Two Ramps/Corner Cutbacks Unclassified Excavation/ Removal Water/Dust Control Traffic Control Signing and Striping Mobilization Signal Modification - Adams and 111 New Signal - ill Project Entrance 14,050 SF $ 0.60 $ 8,430 32,400 SF 2.26 73,224 9,037 SF 2.50 22,593 3,330 SF 3.50 11,655 1,160 LF 11.00 12,760 5 EA 750.00 3,750 1 LS 15,000.00 15,000 1 LS 8,000.00 8,000 1 LS 10,000.00 10,000 1 LS 10,000.00 10,000 1 LS 10,000.00 101000 1 LS 50,000.00 50,000 1 LS 100,000.00 100,000 211 0P01-044 Exhibit F To Exhibit C Public Facilities Page Three Parkway Landscaping 1 LS 156,070.00 156,070 Dry Utilities 120 LF 26,508.00 26,508 18" D.I.P. Water Main 2,804 LF 68.72 192,695 HIGHWAY 111 IMPROVEMENT ESTIMATED HARD COSTS $ 7141698 3. FEES FOR ADAMS STREET AND HIGHWAY 111 IMPROVEMENTS UNIT TOTAL ITEM QUANTITY UNIT COST COST City 5% Agency Fee 1 LS 49,402.00 49,402 CVWD 5% Agency Fee 1 LS 9,265.00 91635 Civil Engineering 10% Fee 1 LS Construction Staking 7% Fee 1 LS Landscape Architect 1 LS City Consultant 5% Fee 1 LS ESTIMATED FEES FOR ADAMS STREET AND HIGHWAY ill IMPROVEMENT 4. CONTINGENCY 118,073.00 118,073 82,651.00 82,651 30,000.00 30,000 59,036.00 59,036 UNIT TOTAL ITEM QIIBILTIT�C UNIT COST COST Contingency 15% 1 LS 229,429.00 229,429 ESTIMATED CONTINGENCY $ 229.429 PLANNING AREA I TOTAL ESTIMATED COSTS FOR ADAMS STREET AND HIGHWAY ill IMPROVEMENTS $11,758,951 212 00()1�45 EXHIBIT "I" TO EXHIBIT "C" OF THE DEVELOPMENT AGREEMENT PUBLIC FACILITIES Off -site Improvements Phase I Hwy 111 - La Quints Drive (on -site road) west to Adams Street Hwy 111/Adams intersection - full intersection improvements.per EIR requirements Adams Street - east side improvements along entire site frontage including center median to 47th Street Phase II Adams Street from 47th to 48th Street Phase III Hwy I I I - La Quints Drive (on -site road) east to east property line Hwy I I I median - Adams Street to east property line CAMy Documents\WPDOCS\DA-Lease-Amd-Stamko.wpd 213 �rt'1�'46 EXHIBIT "G" TO EXHIBIT "C" OF THE DEVELOPMENT AGREEMENT PREPAYMENT SCHEDULES C 4 t 1- Q mm S gO � SSxj N o 8O N Y C N &o= §9 w aR U a Y 8N � 8 a O O 9 r � C N N N CS C �Ea$, € W is 'E u g iIL t V a y: O � 0 vE dot IL a e a €g� W m a c? 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