LQ Chamber of Commerce 15THIS CONTRACT SERVICES AGREEMENT (the "Agreement") is made and entered
into by and between the CITY OF LA QUINTA, a California municipal corporation
("City"), and LA QUINTA CHAMBER OF COMMERCE ("Contractor").
WHEREAS, City desires to utilize the services of Contractor as an independent
contractor to promote the City by encouraging, representing, and retaining businesses
and business activities in the City, producing the monthly GEM Newsletter, creating
and producing special events, and operating the City's Visitor Center.
B. Contractor represents that it is fully qualified to perform such services by
virtue of its experience and the training, education and expertise of its principals and
employees.
C. City desires to retain Contractor, and Contractor desires to serve City to
perform these services subject to the terms contained herein and all applicable local,
state, and federal laws and regulations.
NOW, THEREFORE, based on the foregoing Recitals and in consideration of the
performance by the parties of the mutual promises, covenants, and conditions
contained herein, the parties agree as follows:
1.0 SERVICES OF CONTRACTOR
1.1 Scope of Services. In compliance with all terms and conditions of this
Agreement, Contractor shall promote the City by encouraging, representing, and
retaining businesses and business activities in the City, producing the monthly GEM
Newsletter, creating and producing special events, and operating the City's Visitor
Center as specified in the "Scope of Services" attached hereto as Exhibit "A" and
incorporated herein by this reference (the "Services"). Contractor represents and
warrants that Contractor is a provider of first-class work and services and Contractor is
experienced in performing the Services contemplated herein and, in light of such
status and experience, Contractor covenants that it shall follow the highest
professional standards in performing the Services required hereunder and that all
materials will be of good quality, fit for the purpose intended. For purposes of this
Agreement, the phrase "highest professional standards" shall mean those standards
of practice recognized by one or more first-class firms performing similar services
under similar circumstances.
1.2 Compliance with Law. All Services rendered hereunder shall be provided
in accordance with all ordinances, resolutions, statutes, rules, regulations, and laws of
City and any Federal, State, or local governmental agency of competent jurisdiction.
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1.3 Licenses, Permits, Fees and Assessments. Except as otherwise specified
herein, Contractor shall obtain at its sole cost and expense such licenses, permits, and
approvals as may be required by law for the performance of the Services required by
this Agreement, including a City of La Quinta business license. Contractor and its
employees, agents, and subcontractors shall, at their sole cost and expense, keep in
effect at all times during the term of this Agreement any licenses, permits, and
approvals that are legally required for the performance of the Services required by this
Agreement. Contractor shall have the sole obligation to pay for any fees,
assessments, and taxes, plus applicable penalties and interest, which may be imposed
by law and arise from or are necessary for the performance of the Services required by
this Agreement, and shall indemnify, defend (with counsel selected by City), and hold
City, its elected officials, officers, employees, and agents, free and harmless against
any such fees, assessments, taxes, penalties, or interest levied, assessed, or imposed
against City hereunder. Contractor shall be responsible for all subcontractors'
compliance with this Section.
1.4 Familiarity with Work. By executing this Agreement, Contractor warrants
that (a) it has thoroughly investigated and considered the Services to be performed,
(b) it has investigated the site where the Services are to be performed and fully
acquainted itself with the conditions there existing, (c) it has carefully considered how
the Services should be performed, and (d) it fully understands the facilities, difficulties,
and restrictions attending performance of the Services under this Agreement. Should
Contractor discover any latent or unknown conditions materially differing from those
inherent in the Services or as represented by City, Contractor shall immediately inform
City of such fact and shall not proceed except at Contractor's risk until written
instructions are received from the Contract Officer (as defined in Section 4.2 hereof).
1.5 $Aa—ndn—rd—QUa—re. Contractor acknowledges and understands that the
Services contracted for under this Agreement require specialized skills and abilities
and that, consistent with this understanding, Contractor's work will be held to a
heightened standard of quality and workmanship. Consistent with Section 1.4
hereinabove, Contractor represents to City that it holds the necessary skills and
abilities to satisfy the heightened standard of work as set forth in this Agreement.
Contractor shall adopt reasonable methods during the life of this Agreement to
furnish continuous protection to the Services performed by Contractor, and the
equipment, materials, papers, and other components thereof to prevent losses or
damages, and shall be responsible for all such damages, to persons or property, until
acceptance of the Services by City, except such losses or damages as may be caused
by City's own negligence. The performance of Services by Contractor shalt not relieve
Contractor from any obligation to correct any incomplete, inaccurate, or defective
work at no further cost to City, when such inaccuracies are due to the negligence of
Contractor.
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2:1 Contract_..Sum. For the Services rendered pursuant to this Agreement;
Contractor shall be compensated in accordance with Exhibit "B" (the "Schedule of
'Compensation") in a total amount not to exceed One Hundred Twenty -Seven
Thousand Five Hundred dollars and Zero cents ($127,500.00) (the "Contract Sum").
3.0_PERFORMANCE SCHED
3.1 Time of Essence. Time is of the essence in the performance of this
Agreement. If the work is not completed in accordance with the Schedule of
Performance; as set forth in Section 3.2 and Exhibit C, it is understood that City will
suffer damage.
3.2 Schedule ..of Performance: All Services rendered pursuant to- this
Agreement shall be performed diligently and within the time period established in
Exhibit "C" (the "Schedule of Performance"). Extensions to the. time period specified in
the Schedule of Performance may be approved in writing by the Contract Officer.
3.3 Force Majeure. The time period specified in the Schedule of Performance
for performance of the Services rendered pursuant to this Agreement shall be
extended because of any delays due to unforeseeable causes .beyond the control and
without the fault or negligence of Contractor, including, but not restricted to, acts of
God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine
restrictions, riots, strikes, freight embargoes, acts of any governmental agency other
than City, and unusually severe weather, if Contractor shall within ten (10) days of the
commencement of such delay notify the Contract Officer in writing of the causes of
the delay. The Contract Officer shall ascertain the facts and the extent of delay, and
extend the time for performing the Services for the period of the forced delay when
and if in his or her judgment such delay is justified, and the Contract Officer's
determination shall be final and conclusive upon the parties to this Agreement.
3.4 Term. Unless earlier terminated in accordance with Sections 8.8 or-9.9 of
this Agreement, the term of this agreement shall commence on July 1, 2015 and
terminate on June 30, 201� (the "Term").
4.0 COORDINATION OF WORK.
4.1 Representative of Contractor: The following priricipols of Contractor
("principals".) are hereby designated as being the principals and representatives of..
'Contractor authorized to act in its behalf with respect to the Services specified herein
and make all decisions in connection therewith:
a.Jason Schneider, Chairman
c. Mike Williams, Secretary
a. E-mail: DaLke@capitisreatestate.com
d.d. David Archer, President/CEO
a. Email: vi@lchaer m
It is expressly understood that the experience, knowledge, capability,
and reputation of the foregoing principals were a substantial inducement for City to
enter into this Agreement. Therefore, the foregoing Principals shall be responsible
during the term of this Agreement for directing all activities of Contractor and
devoting sufficient time to personally supervise the Services hereunder. For purposes
of this Agreement, the Principals may not be replaced nor may their responsibilities be
substantially reduced by Contractor without the express written approval of City.
4.2 Contract Officer. The "Contract Officer" shall be Frank J. Spevacek, City
Manager or such other person as may be designated in writing by the City Manager of
City. It shall be Contractor's responsibility to assure that the Contract Officer is kept
informed of the progress of the performance of the Services, and Contractor shall refer
any decisions which must be made by City to the Contract Officer. Unless otherwise
specified herein, any approval of City required hereunder shall mean the approval of
the Contract Officer. The Contract Officer shall have authority to sign all documents
on behalf of City required hereunder to carry out the terms of this Agreement.
4.3 Prohibition Against Subcontracting or Assignment. The experience,
knowledge, capability, and reputation of Contractor, its principals, and employees
were a substantial inducement for City to enter into this Agreement. Except as set
forth in this Agreement, Contractor shall not subcontract with any other entity to
perform in whole or in part the Services required hereunder without the express
written approval of City. In addition, neither this Agreement nor any interest herein
may be transferred, assigned, conveyed, hypothecated, or encumbered, voluntarily or
by operation of law, without the prior written approval of City. Transfers restricted
hereunder shall include the transfer to any person or group of persons acting in
concert of more than twenty five percent (25%) of the present ownership and/or
control of Contractor, taking all transfers into account on a cumulative basis. Any
attempted or purported assignment or subcontracting by Contractor without City's
express written approval shall be null, void, and of no effect. No approved transfer
shall release Contractor of any liability hereunder without the express consent of City.
4.4 Independent Contractor. Neither City nor any of its employees shall
have any control over the manner, mode, or means by which Contractor, its agents, or
employees, perform the Services required herein, except as otherwise set forth herein.
City shall have no voice in the selection, discharge, supervision, or control of
Contractor's employees, servants, representatives, or agents, or in fixing their number
or hours of service. Contractor shall perform all Services required herein as an
independent contractor of City and shall remain at all times as to City a wholly
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independent contractor with only such obligations as are consistent with that role.
Contractor shall have no power to incur any debt, obligation, or liability on behalf of
City. Contractor shall not at any time or in any manner represent that it or any of its
agents or employees are agents or employees of City. Contractor agrees to pay all
required taxes on amounts paid to Contractor under this Agreement, and to indemnify
and hold City harmless from any and all taxes, assessments, penalties, and interest
asserted against City by reason of the independent contractor relationship created by
this Agreement. Contractor shall fully comply with the workers' compensation laws
regarding Contractor and Contractor's employees. Contractor further agrees to
indemnify and hold City harmless from any failure of Contractor to comply with
applicable workers' compensation laws. City shall have the right to offset against the
amount of any payment due to Contractor under this Agreement any amount due to
City from Contractor as a result of Contractor's failure to promptly pay to City any
reimbursement or indemnification arising under this Section.
4.5 Identity of Persons Performing Work. Contractor represents that it
employs or will employ at its own expense all personnel required for the satisfactory
performance of any and all of the Services set forth herein. Contractor represents that
the Services required herein will be performed by Contractor or under its direct
supervision, and that all personnel engaged in such work shall be fully qualified and
shall be authorized and permitted under applicable State and local law to perform
such tasks and services.
4.6 City Cooperation. City shall provide Contractor with any plans,
publications, reports, statistics, records, or other data or information pertinent to
Services to be performed hereunder which are reasonably available to Contractor only
from or through action by City.
5.0 INSUR_ANCE.
5.1 Insurance. Prior to the beginning of any Services under this Agreement
and throughout the duration of the term of this Agreement, Contractor shall procure
and maintain, at its sole cost and expense, and submit concurrently with its execution
of this Agreement, policies of insurance as set forth in Exhibit "E" (the "Insurance
Requirements") which is incorporated herein by this reference and expressly made a
part hereof.
6.0 INDEMNIFICATION.
6.1 Indemnification. To the fullest extent permitted by law, Contractor shall
indemnify, protect, defend and hold harmless City and any and all of its officers,
employees, agents, and volunteers as set forth in Exhibit "F" ("Indemnificatic
is incorporated herein by this reference and expressly made a part hereof.
7.0 RECORDS AND REPORTS.
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7.1 Reports. Contractor shall prepare and submit to the Contract Officer
such reports concerning the performance of the Services as set forth in Exhibit "C" (the
"Schedule of Performance").
7.2 Reco-r-d-s. Contractor shall keep such Book and Records as shall be
necessary to perform the Services required by this Agreement and enable the Contract
Officer to evaluate the performance of such Services. Any and all such Books and
Records shall be maintained in accordance with generally accepted accounting
principles and shall be complete and detailed. The Contract Officer shall have full and
free access to such Books and Records at all times during normal business hours of
City, including the right to inspect, copy, audit, and make records and transcripts from
such Books and Records. Such Books and Records shall be maintained for a period of
three (3) years following completion of the Services hereunder, and City shall have
access to such Books and Records in the event any audit is required.
7.3 Confidentiality. Contractor covenants that all data, documents,
discussion, or other information, if any, developed or received by Contractor or
provided for performance of this Agreement are deemed confidential and shall not be
disclosed by Contractor to any person or entity without prior written authorization by
City. City shall grant such authorization if disclosure is required by law. All City data,
documents, discussion, or other information shall be returned to City upon the
termination or expiration of this Agreement. Contractor's covenant under this section
shall survive the termination or expiration of this Agreement.
8.0 ENFORCEMENT OE AQREEMENT.
8.1 California La,. This Agreement shall be interpreted, construed, and
governed both as to validity and to performance of the Parties in accordance with the
laws of the State of California. Legal actions concerning any dispute, claim, or matter
arising out of or in relation to this Agreement shall be instituted in the Superior Court
of the County of Riverside, State of California, or any other appropriate court in such
county, and Contractor covenants and agrees to submit to the personal jurisdiction of
such court in the event of such action.
8.2 Disputes. In the event of any dispute arising under this Agreement, the
injured party shall notify the injuring party in writing of its contentions by submitting a
claim therefore. The injured party shall continue performing its obligations hereunder
so long as the injuring party commences to cure such default within ten (10) days of
service of such notice and completes the cure of such default within forty-five (45)
days after service of the notice, or such longer period as may be permitted by the
Contract Officer; provided that if the default is an immediate danger to the health,
safety, and general welfare, City may take such immediate action as City deems
warranted. Compliance with the provisions of this Section shall be a condition
precedent to termination of this Agreement for cause and to any legal action, and
such compliance shall not be a waiver of any party's right to take legal action in the
event that the dispute is not cured, provided that nothing herein shall limit City's right
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to terminate this Agreement without cause pursuant to Section 8.8. During the period
of time that Contractor is in default, City shall hold all invoices and shall, when the
default is cured, proceed with payment on the invoices. In the alternative, City may, in
its sole discretion, elect to pay some or all of the outstanding invoices during any
period of default.
8.3 Waiver. No delay or omission in the exercise of any right or remedy of a
non -defaulting party on any default shall impair such right or remedy or be construed
as a waiver. City's consent or approval of any act by Contractor requiring City's
consent or approval shall not be deemed to waive or render unnecessary City's
consent to or approval of any subsequent act of Contractor. Any waiver by either
party of any default must be in writing and shall not be a waiver of any other default
concerning the same or any other provision of this Agreement.
8.4 Rights and Remedies are Cumulative. Except with respect to rights and
remedies expressly declared to be exclusive in this Agreement, the rights and
remedies of the parties are cumulative and the exercise by either party of one or more
of such rights or remedies shall not preclude the exercise by it, at the same or
different times, of any other rights or remedies for the same default or any other
default by the other party.
8.5 Legal Action. In addition to any other rights or remedies, either party
may take legal action, at law or at equity, to cure, correct, or remedy any default, to
recover damages for any default, to compel specific performance of this Agreement,
to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with
the purposes of this Agreement.
8.6 Termination Prior to Expiration of Term. This Section shall govern any
termination of this Agreement, except as specifically provided in the following
Section 8.9 for termination for cause. City reserves the right to terminate this
Agreement at any time, with or without cause, upon thirty (30) days' written notice to
Contractor. Upon receipt of any notice of termination, Contractor shall immediately
cease all Services hereunder except such as may be specifically approved by the
Contract Officer. Contractor shall be entitled to compensation for all Services
rendered prior to receipt of the notice of termination and for any Services authorized
by the Contract Officer thereafter in accordance with the Schedule of Compensation or
such as may be approved by the Contract Officer, except as provided in Section 8.3.
8.7 Attorneys' Fees. If either Party to this Agreement is required to initiate or
defend or made a Party to any action or proceeding in any way connected with this
Agreement, the prevailing Party in such action or proceeding, in addition to any other
relief which may be granted, whether legal or equitable, shall be entitled to
reasonable attorneys' fees; provided, however, that the attorneys' fees awarded
pursuant to this Section shall not exceed the hourly rate paid by City for legal services
multiplied by the reasonable number of hours spent by the prevailing Party in the
conduct of the litigation. Attorneys' fees shall include attorneys' fees on any appeal,
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and in addition a Party entitled to attorneys' fees shall be entitled to all other
reasonable costs for investigating such action, taking depositions and discovery, and
all other necessary costs the court allows which are incurred in such litigation. All
such fees shall be deemed to have accrued on commencement of such action and
shall be enforceable whether or not such action is prosecuted to judgment. The court
may set such fees in the same action or in a separate action brought for that purpose.
9.0 CITY OFFICER —A.ND_.EMPLOYEES; NONDISCRIMINATION.
9.1 Non-iabilit of Citv Officers and Employees. No officer, official,
employee, agent, representative, or volunteer of City shall be personally liable to
Contractor, or any successor in interest, in the event of any default or breach by City or
for any amount which may become due to Contractor or to its successor, or for breach
of any obligation of the terms of this Agreement.
9.2 Conflict -of Interest.. Contractor covenants that neither it, nor any officer
or principal of it, has or shall acquire any interest, directly or indirectly, which would
conflict in any manner with the interests of City or which would in any way hinder
Contractor's performance of the Services under this Agreement. Contractor further
covenants that in the performance of this Agreement, no person having any such
interest shall be employed by it as an officer, employee, agent, or subcontractor
without the express written consent of the Contract Officer. Contractor agrees to at
all times avoid conflicts of interest or the appearance of any conflicts of interest with
the interests of City in the performance of this Agreement.
No officer or employee of City shall have any financial interest, direct or
indirect, in this Agreement nor shall any such officer or employee participate in any
decision relating to this Agreement which effects his financial interest or the financial
interest of any corporation, partnership or association in which he is, directly or
indirectly, interested, in violation of any State statute or regulation. Contractor
warrants that it has not paid or given and will not pay or give any third party any
money or other consideration for obtaining this Agreement.
9.3 Covenant Against Discrimination. Contractor covenants that, by and for
itself, its heirs, executors, assigns, and all persons claiming under or through them,
that there shall be no discrimination against or segregation of, any person or group of
persons on account of any impermissible classification including, but not limited to,
race, color, creed, religion, sex, marital status, sexual orientation, national origin, or
ancestry in the performance of this Agreement. Contractor shall take affirmative
action to insure that applicants are employed and that employees are treated during
employment without regard to their race, color, creed, religion, sex, marital status,
sexual orientation, national origin, or ancestry.
10.0 MISCELLANEOUS PR VISI N
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10.1 Notice. Any notice, demand, request, consent, approval, communication
either party desires or is required to give the other party or any other person shall be
in writing and either served personally or sent by prepaid, first-class mail to the
address set forth below. Either party may change its address by notifying the other
party of the change of address in writing. Notice shall be deemed communicated
forty-eight (48) hours from the time of mailing if mailed as provided in this Section.
To City:
CITY OF LA QUINTA
Attention: Frank J. Spevacek
City Manager
78-495 Calle Tampico
La Quinta, CA 92253
To Contractor:
LA QUINTA CHAMBER OF COMMERCE
Attention: David Archer
President / CEO
78-495 Calle Tampico
La Quinta, CA 92253
10.2 Interpretation. The terms of this Agreement shall be construed in
accordance with the meaning of the language used and shall not be construed for or
against either Party by reason of the authorship of this Agreement or any other rule of
construction which might otherwise apply.
10.3 Section Headings and Subheadings. The section headings and
subheadings contained in this Agreement are included for convenience only and shall
not limit or otherwise affect the terms of this Agreement.
10.4 Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed to be an original, and such counterparts shall constitute one
and the same instrument.
10.5 Integrated Agreement. This Agreement including the exhibits hereto is
the entire, complete, and exclusive expression of the understanding of the parties. It
is understood that there are no oral agreements between the parties hereto affecting
this Agreement and this Agreement supersedes and cancels any and all previous
negotiations, arrangements, agreements, and understandings, if any, between the
parties, and none shall be used to interpret this Agreement.
10.6 Amendment. No amendment to or modification of this Agreement shall
be valid unless made in writing and approved by Contractor and by the City Council of
City. The parties agree that this requirement for written modifications cannot be
waived and that any attempted waiver shall be void.
10.7 Severability. In the event that any one or more of the articles, phrases,
sentences, clauses, paragraphs, or sections contained in this Agreement shall be
declared invalid or unenforceable, such invalidity or unenforceability shall not affect
any of the remaining articles, phrases, sentences, clauses, paragraphs, or sections of
this Agreement which are hereby declared as severable and shall be interpreted to
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carry out the intent of the parties hereunder unless the invalid provision is so material
that its invalidity deprives either party of the basic benefit of their bargain or renders
this Agreement meaningless.
10.8 Unfair Busines-s Practices- --Claims. In entering into this Agreement,
Contractor offers and agrees to assign to City all rights, title, and interest in and to all
causes of action it may have under Section 4 of the Clayton Act
under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of
Division 7 of the Business and Professions Code), arising from purchases of goods,
cervices, or materials related to this Agreement. This assignment shall be made and
become effective at the time City renders final payment to Contractor without further
-icknowledgment of the parties.
10.9 No Third Party Beneficiaries. With the exception of the specific provisions
set forth in this Agreement, there are no intended third -party beneficiaries under this
Agreement and no such other third parties shall have any rights or obligations
hereunder.
10.10 Authorit . The persons executing this Agreement on behalf of each of
Lhe parties hereto represent and warrant that (i) such party is duly organized and
zxisting, (ii) they are duly authorized to execute and deliver this Agreement on behalf
if said party, (iii) by so executing this Agreement, such party is formally bound to the
provisions of this Agreement, and (iv) that entering into this Agreement does not
violate any provision of any other Agreement to which said party is bound. This
,rLssigns of the parties.
[SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the
dates stated below.
CITY OF •
i California municipal corporation
Frank J . Digitally signed by FrankJ. Spevacek
DN serial Number= 1 n615nh01202cvmj,
c=US, st=California, I=La Quinta, o=Frank
Speva ce k Date: 2015.0722Frank09: 926pOT00'k
FRANK J. SPEVACEK, City Manager
Dated:
r-IMMU
Digitally signed by City of La Quinta
DN: serialNumber=6fmhzhdhvfjz93cr,
c=US, st=California, I=La Quinta, o=City
of La Quinta, cn City of La Quinta
Date: 2015.07.22 11:16:26-07'00'
SUSAN MAYSELS, City Clerk, La Quinta,
California
Quinta,City of La
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By:
Name: V,
Title: �
By
Name:
Title:
1. Services to be Provided:
Scope of Services
111111il;IlI11111111ir mmr .7. So . mr•
a. Chamber staff will coordinate with City's Economic Development sta
within first quarter to develop a questionnaire to use when meeting with
businesses. The questionnaire should ask a range of multiple choice and
open ended questions. Results will be tracked and discussed monthly
with City Staff and reported quarterly to City Council.
b. Utilizing the "New" Business License List from the City the Chamber will
visit 100% of the "New" "Retail and Restaurant" businesses within the
City Limits, 45 days from receipt of the "List" for the Fiscal Year 2015 -
2016. The Chamber will meet with the business Owner/Manager, discuss
how their business is progressing and administer the questionnaire.
c. Utilizing the "Current" Business List from the City of approxi a el�
m t'
xi.
sti
retail and restaurants, the Chamber will visit 50% of the e I
business, which are approximately 38 businesses quarterly for the ter
r
•
of the agreement. The Chamber will meet with the busine
Owner/Manager, discuss how their business is doing and provide •
online survey to gather specific information. The Chamber will meet wl
the business Owner/Manager, discuss how their business is progressi
and administer the questionnaire.
f. Semi Annual CEO Forum - Implement and facilitate a Semi Annual CEO
Forum inviting key individuals such as General Managers' and Property
Owners. The leaders of growing small and mid -sized companies confront
the constant challenge of constrained resources in the face of increasing
competition. The CEO Forum is formed to address these strategic issues
in a peer group setting. The objective of the Forums is to improve the
performance of their businesses through shared experiences and
knowledge. Each CEO Forum group is comprised of 5 - 8 executives from
non -competing businesses who will meet regularly as an ongoing team
as deemed appropriate by the team members. Results will be tracked
and discussed as appropriate with City Staff and reported quarterly to
City Council.
e. Shop Local Campaign - Continue the "Shop Local" Campaign to be
implemented in Fiscal Year 2015 - 2016
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B. Continue existing events and develop new events during fiscal year 2015 -
2016. These may include:
a. Hot Rod & Custom Car Show
b. "Mayor's Cup" golf event
c. Breakfast event for CareerBuilder Challenge
d. "Best Happy Hour" event
e. Quarterly or Semi -Annual "Taste of La Quinta" type event.
f. Food Truck event
C. The GEM Community Newsletter
a. Ten months/issues out of the year (with City funding)
b. Ten months/issues out of the year inclusion of City Pages
c. Chamber opting to fund two additional months/issues of The GEM
(Chamber portion only; not City Pages)
D. The Visitor's Center
a. Chamber will operate the La Quinta Visitor's Center for the duration of
this term. In addition; Chamber will continue to coordinate with City staff
to improve the aesthetics of the Visitor's Center. These improvements
would include improved methods to display promotional materials and
other collateral, and s self -serve informational kiosk.
E. Annual Financial Review/Audit
The La Quinta Chamber of Commerce shall provide a full audit every three years and
an annual financial review report in non -audit years. A full audit is required for fiscal
year ending June 30, 2016.
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maximumThe i •compensationbe ii • to Contractorunder
Agreement One • r"r Twenty -Seven ThousandFive Hundred Dollars01
("Contract i • be r• • toContractor•
payments per Payment • •iinan amount identifiedin Contractor's
schedule ofcompensationattached hereto for • rtasksperformed.
• ' • • • ! • M.
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Consultant shall complete all services identified in the Scope o Services,
Exhibit"A" of this Agreement, in accordance with the Project Schedule, attached
hereto and incorporated herein by this reference.
A. Business Retention/Promotion & Economic Development upport
a. Ongoing (throughout fiscal year)
B. The GEM Community Newsletter
a. Monthly (City Pages; 10 issues per year)
C. The Visitor's Center
a. Ongoing (Throughout fiscal year)
D. Annual Financial Review & Full Audit
a. Non -Audit Years / Every Three Years (Full Audit due June 2016)
The La Quinto Chamber of Commerce shall provide the City with three (3) written
reports and present to City Council on its activities as required by this Agreement.
2ME
0207M Mi
2671/015610-0002 EXHIBIT C
8290895.1 a06/19/15
Last Revised April 2015 Page 1 of 1
Exhibit
Special Requirements
fm
Last revised April 2O15 EXHIBIT
-41,11
Insurance Requirements
E.1 Insurance. Prior to the beginning of and throughout the duration of this
Agreement, the following policies shalt be maintained and kept in full force and effect
providing insurance with minimum limits as indicated below and issued by insurers
with A.M. Best ratings of no less than
Commercial General Liability (at least as broad as ISO CG 0001)
$1,000,000 (per occurrence)
$2,000,000 (general aggregate)
Commercial Auto Liability (at least as broad as ISO CA 0001)
$1,000,000 (per accident)
Workers' Compensation
(per statutory requirements)
Contractor shall procure and maintain, at its cost, and submit concurrently with
its execution of this Agreement, Commercial General Liability insurance against all
claims for injuries against persons or damages to property resulting from Contractor's
acts or omissions rising out of or related to Contractor's performance under this
Agreement. The insurance policy shall contain a severability of interest clause
providing that the coverage shall be primary for losses arising out of Contractor's
performance hereunder and neither City nor its insurers shall be required to contribute
to any such loss. A certificate evidencing the foregoing and naming City and its
officers and employees as additional insured (on the Commercial General Liability
policy only) shall be delivered to and approved by City prior to commencement of the
services hereunder.
Contractor shall carry automobile liability insurance of $1,000,000 per accident
against all claims for injuries against persons or damages to property arising out of
the use of any automobile by Contractor, its officers, any person directly or indirectly
employed by Contractor, any subcontractor or agent, or anyone for whose acts any of
them may be liable, arising directly or indirectly out of or related to Contractor's
performance under this Agreement. If Contractor or Contractor's employees will use
personal autos in any way on this project, Contractor shall provide evidence of
personal auto liability coverage for each such person. The term "automobile"
includes, but is not limited to, a [and motor vehicle, trailer or semi -trailer designed for
travel on public roads. The automobile insurance policy shall contain a severability of
interest clause providing that coverage shall be primary for losses arising out of
Contractor's performance hereunder and neither City nor its insurers shall be required
to contribute to such loss.
Last revised April 2015 EXHIBIT E
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Professional Liability or Errors and Omissions Insurance as appropriate shall be
written on a policy form coverage specifically designed to protect against acts, errors
or omissions of the contractor and "Covered Professional Services" as designated in
the policy must specifically include work performed under this agreement. The policy
limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must
66pay on behalf of the insured and must include a provision establishing the insurer's
duty to defend. The policy retroactive date shall be on or before the effective date of
this agreement.
Contractor shall carry Workers' Compensation Insurance in accordance with
State Worker's Compensation laws with employer's liability limits no less than
$1,000,000 per accident or disease.
Contractor shall provide written notice to City within ten (10) working days if:
(1) any of the required insurance policies is terminated; (2) the limits of any of the
required polices are reduced; or (3) the deductible or self -insured retention is
increased. In the event any of said policies of insurance are cancelled, Contractor
shall, prior to the cancellation date, submit new evidence of insurance in conformance
with this Exhibit to the Contract Officer. The procuring of such insurance or the
delivery of policies or certificates evidencing the same shall not be construed as a
limitation of Contractor's obligation to indemnify City, its officers, employees,
contractors, subcontractors, or agents.
E.2 Remedies. In addition to any other remedies City may have if Contractor fails
to provide or maintain any insurance policies or policy endorsements to the extent
and within the time herein required, City may, at its sole option:
a. Obtain such insurance and deduct and retain the amount of the
premiums for such insurance from any sums due under this Agreement.
b. Order Contractor to stop work under this Agreement and/or withhold any
payment(s) which become due to Contractor hereunder until Contractor demonstrates
compliance with the requirements hereof.
C. Terminate this Agreement.
Exercise of any of the above remedies, however, is an alternative to any other
remedies City may have. The above remedies are not the exclusive remedies for
Contractor's failure to maintain or secure appropriate policies or endorsements.
Nothing herein contained shall be construed as limiting in any way the extent to
which Contractor may be held responsible for payments of damages to persons or
property resulting from Contractor's or its subcontractors' performance of work under
this Agreement.
Last revised April 2015 EXHIBIT E
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E.3 !Qeneral Conditions Pertgining to Provisions of insurance Coverage by Contractor.
Contractor and City agree to the following with respect to insurance provided by
Contractor:
1. Contractor agrees to have its insurer endorse the third party general
liabty coverage required herein to include as additional insureds City, its officials,
employees, and agents, using standard ISO endorsement No. CG 2010 with an edition
prior to 1992. Contractor also agrees to require all contractors, and subcontractors to
do likewise.
2. No liability insurance coverage provided to comply with this Agreement
shall prohibit Contractor, or Contractor's employees, or agents, from waiving the right
of subrogation prior to a loss. Contractor agrees to waive subrogation rights against
City regardless of the applicability of any insurance proceeds, and to require all
contractors and subcontractors to do likewise.
3. All insurance coverage and limits provided by Contractor and available or
applicable to this Agreement are intended to apply to the full extent of the policies.
Nothing contained in this Agreement or any other agreement relating to City or its
operations limits the application of such insurance coverage.
4. None of the coverages required herein will be in compliance with these
requirements if they include any limiting endorsement of any kind that has not been
first submitted to City and approved of in writing.
5. No liability policy shall contain any provision or definition that Would
serve to eliminate so-called "third party action over" claims, including any exclusion
for bodily injury to an employee of the insured or of any contractor or subcontractor.
6. All coverage types and limits required are subject to approval,
modification and additional requirements by City, as the need arises. Contractor shall
not make any reductions in scope of coverage (e.g. elimination of contractual liability
or reduction of discovery period) that may affect City's protection without City's prior
written consent.
7. Proof of compliance with these insurance requirements, consisting of
certificates of insurance evidencing all of the coverages required and an additional
insured endorsement to Contractor's general liability policy, shall be delivered to City
at or prior to the execution of this Agreement. In the event such proof of any
insurance is not delivered as required, or in the event such insurance is canceled at
any time and no replacement coverage is provided, City has the right, but not the
duty, to obtain any insurance it deems necessary to protect its interests under this or
any other agreement and to pay the premium. Any premium so paid by City shall be
charged to and promptly paid by Contractor or deducted from sums due Contractor, at
City option.
Last revised April 2015 EXHIBIT E
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8. It is acknowledged by the parties of this Agreement that all insurance
coverage required to be provided by Contractor or any subcontractor, is intended to
apply first and on a primary, non-contributing basis in relation to any other insurance
or self-insurance available to City.
9. Contractor agrees to ensure that subcontractors, and any other party
involved with the project that is brought onto or involved in the project by Contractor,
provide the some minimum insurance coverage required of Contractor. Contractor
agrees to monitor and review all such coverage and assumes all responsibility for
ensuring that such coverage is provided in conformity with the requirements of this
section. Contractor agrees that upon request, all agreements with subcontractors and
others engaged in the project will be submitted to City for review.
10. Contractor agrees not to self -insure or to use any self -insured retentions
or deductibles on any portion of the insurance required herein (with the exception of
professional liability coverage, if required) and further agrees that it will not allow any
contractor, subcontractor, Architect, Engineer or other entity or person in any way
involved in the performance of work on the project contemplated by this agreement
to self -insure its obligations to City. If Contractor's existing coverage includes a
deductible or self -insured retention, the deductible or self -insured retention must be
declared to City. At that time, City shall review options with Contractor, which may
include reduction or elimination of the deductible or self -insured retention,
substitution of other coverage, or other solutions.
11. City reserves the right at any time during the term of this Agreement to
change the amounts and types of insurance required by giving Contractor ninety (90)
days advance written notice of such change. If such change results in substantial
additional cost to Contractor, City will negotiate additional compensation proportional
to the increased benefit to City.
12. For purposes of applying insurance coverage only, this Agreement will be
deemed to have been executed immediately upon any party hereto taking any steps
that can be deemed to be in furtherance of or towards performance of this
Agreement.
13. Contractor acknowledges and agrees that any actual or alleged failure
on the part of City to inform Contractor of non-compliance with any insurance
requirement in no way imposes any additional obligations on City nor does it waive
any rights hereunder in this or any other regard.
14. Contractor will renew the required coverage annually as long as City, or
its employees or agents face an exposure from operations of any type pursuant to this
Agreement. This obligation applies whether or not this Agreement is canceled or
terminated for any reason. Termination of this obligation is not effective until City
executes a written statement to that effect.
Last revised April 2015 EXHIBIT E
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15. Contractor shall provide proof that policies of insurance required herein
expiring during the term of this Agreement have been renewed or replaced with other
policies providing at least the same coverage. Proof that such coverage has been
ordered shall be submitted prior to expiration. A coverage binder or letter from
Contractor's insurance agent to this effect is acceptable. A certificate of insurance
and/or additional insured endorsement as required in these specifications applicable
to the renewing or new coverage must be provided to City within five (5) days of the
expiration of coverages.
16. The provisions of any workers' compensation or similar act will not limit
the obligations of Contractor under this agreement. Contractor expressly agrees not
to use any statutory immunity defenses under such laws with respect to City, its
employees, officials, and agents.
17. Requirements of specific coverage features or limits contained in this
section are not intended as limitations on coverage, limits or other requirements nor
as a waiver of any coverage normally provided by any given policy. Specific reference
to a given coverage feature is for purposes of clarification only as it pertains to a given
issue, and is not intended by any party or insured to be limiting or all-inclusive.
18. These insurance requirements are intended to be separate and distinct
from any other provision in this Agreement and are intended by the parties here to be
interpreted as such.
19. The requirements in this Exhibit supersede all other sections and provisions
of this Agreement to the extent that any other section or provision conflicts with or
impairs the provisions of this Exhibit.
20. Contractor agrees to be responsible for ensuring that no contract used
by any party involved in any way with the project reserves the right to charge City or
Contractor for the cost of additional insurance coverage required by this Agreement.
Any such provisions are to be deleted with reference to City. It is not the intent of City
to reimburse any third party for the cost of complying with these requirements. There
shall be no recourse against City for payment of premiums or other amounts with
respect thereto.
21. Contractor agrees to provide immediate notice to City of any claim or loss
against Contractor arising out of the work performed under this agreement. City
assumes no obligation or liability by such notice, but has the right (but not the duty) to
monitor the handling of any such claim or claims if they are likely to involve City.
Last revised April 2015 EXHIBIT E
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Indemnification
a. Indemnification for ,Professional Liability. When the law
establishes a professional standard of care for Contractor's Services, to the fullest
extent permitted by taw, Contractor shall indemnify, protect, defend (with counsel
selected by City), and hold harmless City and any and all of its officials, employees,
and agents ("Indemnified Parties") from and against any and all claims, losses,
liabilities of every kind, nature, and description, damages, injury (including, without
limitation, injury to or death of an employee of Contractor or of any subcontractor),
costs and expenses of any kind, whether actual, alleged or threatened, including,
without limitation, incidental and consequential damages, court costs, attorneys'fees,
litigation expenses, and fees of expert consultants or expert witnesses incurred in
connection therewith and costs of investigation, to the extent same are cause in
whole or in part by any negligent or wrongful act, error or omission of Contractor, its
officers, agents, employees or subcontractors (or any entity or individual that
Contractor shall bear the legal liability thereof) in the performance of professional
services under this agreement. With respect to the design of public improvements,
Contractor shall not be liable for any injuries or property damage resulting from the
reuse of the design at a location other than that specified in Exhibit A without the
written consent of Contractor.
b. Indemnification for Other Than Professional Liabilfty. Other than in the
performance of professional services and to the full extent permitted by law,
Contractor shall indemnify, defend (with counsel selected by City), and hold harmless
the Indemned Parties from and against any liabty (including liability for claims,
suits, actions, arbitration proceedings, administrative proceedings, regulatory
proceedings, losses, expenses or costs of any kind, whether actual, alleged or
threatened, including, without limitation, incidental and consequential damages,
court costs, attorneys' fees, litigation expenses, and fees of expert consultants or
expert witnesses) incurred in connection therewith and costs of investigation, where
the same arise out of, are a consequence of, or are in any way attributable to, in whole
or in part, the performance of this Agreement by Contractor or by any individual or
entity for which Contractor is legally liable, including but not limited to officers,
agents, employees, or subcontractors of Contractor.
F.2 Standard Indemnificatio-g ProVisions, Contractor agrees to obtain executed
indemnity agreements with provisions identical to those set forth herein this section
from each and every subcontractor or any other person or entity involved by, for, with
or on behalf of Contractor in the performance of this Agreement. In the everO
Contractor fails to obtain such indemnity obligations from others as required herein,
Lost revised April 2015 EXHIBIT F
Page 1of2
Contractor agrees to be fully responsible according to the terms of this Exhibit. Failure
of City to monitor compliance with these requirements imposes no additional
obligations on City and will in no way act as a waiver of any rights hereunder. This
obligation to indemnify and defend City as set forth herein is binding on the
successors, assigns or heirs of Contractor and shall survive the termination of this
agreement or this section.
a. Limitation on Indemnity. Without affecting the rights of City under any
provision of this agreement, Contractor shall not be required to indemnify and hold
harmless City for liability attributable to the active negligence of City, provided such
active negligence is determined by agreement between the parties or by the findings
of a court of competent jurisdiction. In instances where City is shown to have been
actively negligent and where City's active negligence accounts for only a percentage
of the liability involved, the obligation of Contractor will be for that entire portion or
percentage of liability not attributable to the active negligence of City.
b. Indemnification Provision for Design Professionals.
1. Applicability of Section F.2(b). Notwithstanding Section F.2(a)
hereinabove, the following indemnification provision shall apply to Contractors who
constitute "design professionals" as the term is defined in paragraph 3 below.
2. Scope of Indemnification. To the fullest extent permitted by law,
Contractor shall indemnify, defend (with counsel selected by City), and hold harmless
the Indemnified Parties from and against any and all claims, losses, liabilities of every
kind, nature and description, damages, injury (including, without limitation, injury to or
death of an employee of Contractor or of any subcontractor), costs and expenses of
any kind, whether actual, alleged or threatened, including, without limitation, court
costs, attorneys' fees, litigation expenses, and fees of expert consultants or expert
witnesses incurred in connection therewith and costs of investigation, that arise out
of, pertain to, or relate to, directly or indirectly, in whole or in part, the negligence,
recklessness, or willful misconduct of Contractor, any subcontractor, anyone directly
or indirectly employed by them or anyone that they control.
3. Design Professional Defined. As used in this Section F.2(b), the
term "design professional" shall be limited to licensed architects, registered
professional engineers, licensed professional land surveyors and landscape architects,
all as defined under current law, and as may be amended from time to time by Civil
Code § 2782.8.
Last revised April 2015 EXHIBIT F
Page 2 of 2
.� N
MEMORANDUM
TO: Frank J. Spevacek, City Manager
FROM: Tustin K. Larson, Marketing & Events Supervisor
DATE: July 8, 2015
RE: Agreement for Chamber of Commerce
Attached for your signature are two (2) original agreements.
Please sign both originals and return them to the City Clerk for processing and
distribution.
LA QUINTA CHAMBER OF COMMERCE
78-275 Calle Tampico #B
La Quinta, CA 92253
FINANCIAL STATEMENTS
AND
SUPPLEMENTARY FINANCIAL INFORMATION
Years Ended June 30, 2014 and 2013
LA QUINTA CHAMBER OF COMMERCE
TABLE OF CONTENTS
JUNE 30, 2014 AND 2013
Pa4e
Independent Accountant's Review Report
1
FINANCIAL STATEMENTS
Statements of Financial Position
2
Statements of Activities
3
Statements of Cash Flows
4
Notes to Financial Statements
5-8
OGA
OSCAit G. ARMIJO
Certified Public Accountant
41-990 COOK ST., STE. 501- PALM DESERT, CALIFORNbA 92211 - (760) 773-4078 - FAX (760) 773-4079
INDEPENDENT ACCOUNTANT'S REVIEW REPORT
Board of Directors
La Quinta Chamber of Commerce
La Quinta, California 92253
We have reviewed the accompanying statements of financial position of La Quinta Chamber of
Commerce (a nonprofit organization), as of June 30, 2014 and 2013, and the related statements
of activities and cash flows for the years then ended. A review includes primarily applying
analytical procedures to management's financial data and making inquiries of La Quinta Chamber
of Commerce management. A review is substantially less in scope than an audit, the objective
of which is the expression of an opinion regarding the financial statements as a whole.
Accordingly, we do not express such an opinion.
Management is responsible for the preparation and fair presentation of the financial statements
in accordance with accounting principles generally accepted in the United States of America and
for designing, implementing, and maintaining internal control relevant to the preparation and fair
presentation of the financial statements.
Our responsibility is to conduct the review in accordance with Statements on Standards for
Accounting and Review Services issued by the American Institute of Certified Public Accountants.
Those standards require us to perform procedures to obtain limited assurance that there are no
material modifications that should be made to the financial statements. We believe that the results
of our procedures provide a reasonable basis for our report.
Based on our reviews, we are not aware of any material modifications that should be made to the
accompanying financial statements in order for them to be in conformity with accounting principles
generally accepted in the United States of America.
Our review was made for the purpose of expressing limited assurance that there are no material
modifications that should be made to the financial statements in order for them to be in conformity
with generally accepted accounting principles. The information included in the accompanying
Schedule I through III is presented only for supplementary analysis purposes. Such information
has been subjected to the inquiry and analytical procedures applied in the review of the basic
financial statements, and we are not aware of any material modifications that should be made
there to.
January 13, 2015
MEMBER MEMBER
California Society of American Institute of
Certified Public Accountants 1 Certified Public Accountants
FINANCIAL STATEMENTS
LA QUINTA CHAMBER OF COMMERCE
STATEMENTS OF FINANCIAL POSITION
For the Years Ended June 30, 2014 and 2013
ASSETS 2014 2013
Current Assets
Cash (Note 2) $ 10,745 $ 2,106
Investment - Board Designated 2,375 2,375
Accounts receivable 36,520 34,162
49,640 38,643
Property and Equipment (Note 3) 5,229 6,737
TOTAL ASSETS . $ 54,869 $ 45,380
LIABILITIES AND NET ASSETS
Current Liabilities
Accounts payable
$ 35,068
$ 43,626
Short-term note
0
27
Other liabilities (Note 4)
4,084
3,951
39,152
47,604
TOTAL LIABILITIES
$ 39,152
$ 47,604
NET ASSETS
Unrestricted Net Assets
Board Designated
2,375
2,375
General
13,342
(4,599)
TOTAL NET ASSETS
15,717
(2,224)
TOTAL LIABILITIES AND NET ASSETS
$ 54,869
$ 45,380
See accompanying notes and independent accountant's review report.
2
LA QUINTA CHAMBER OF COMMERCE
STATEMENTS OF ACTIVITIES
For the Years Ended June 30, 2014 and 2013
UNRESTRICTED REVENUE
2014
2013
Membership Dues
$ 77,772
$ 75,323
Publication Revenue
178,766
170,795
Contract - City of La Quinta
127,500
127,500
Program Events
153,767
208,242
Other Income
3,734
327
541,539
582,187
EXPENSES
Program Services
Publications 91,081 136,810
Program Events 29,919 29,522
Supporting Services
Administrative & General 408,589 424,696
529,589 591,028
IN CREASE/(DECREASE) IN UNRESTRICTED
NET ASSETS 11,950 (8,841)
NET ASSETS AT BEGINNING OF PERIOD AS
RESTATED 3,767 6,617
NET ASSETS AT END OF PERIOD $ 15,717 $ 2,224
See accompanying notes and independent accountant's review report.
3
9
LA QUINTA CHAMBER OF COMMERCE
STATEMENTS OF CASH FLOWS
For the Years Ended June 30, 2014 and 2013
CASH FLOWS FROM OPERATING ACTIVITIES 2014 2013
Increase (decrease) in net assets $ 11,950 $ (8,841)
Restatement of net assets 5,992 0
Adjustment to reconcile change in net assets to net cash provided by
operating activities:
Depreciation 1,507 10,750
(INCREASE) DECREASE IN OPERATING ASSETS
Accounts Receivable (2,358) (13,985)
Prepaids 0 800
INCREASE (DECREASE) IN OPERATING LIABILITIES
Accounts payable (8,558) 30,926
Other liabilities 133 (3,878)
Short-term note (27) (3,536)
NET CASH USED BY OPERATING ACTIVITIES 8,639 12,236
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 8,639 12,236
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 2,106 (10,130)
CASH AND CASH EQUIVALENTS AT END OF YEAR $ 10,745 $ 2,106
See accompanying notes and independent accountant's review report.
4
NOTES TO FINANCIAL STATEMENTS
LA QUINTA CHAMBER OF COMMERCE
NOTES TO FINANCIAL STATEMENTS
June 30, 2014 and 2013
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Business
La Quinta Chamber of Commerce (the Chamber) is a non-profit business
association. The mission of the Chamber is to promote the economy and business
community of the City of La Quinta. The Chamber's support comes primarily from
membership fees, contributions, contract fees for service, revenue from
organizations and revenues from special events.
Basis of Accountinq
The Chamber prepares its financial statements in accordance with generally
accepted accounting principles, which involves the application of accrual
accounting; consequently, revenue and gains are recognized when earned, and
expenses and losses are recognized when incurred.
Basis of Presentation
The Chamber is required to report information regarding its financial position and
activities according to three classes of net assets; unrestricted net assets,
temporarily restricted net assets, and permanently restricted net assets.
Contributions
Contributions received are recorded as unrestricted, temporarily restricted, or
permanently restricted support, depending on the existence or nature or any donor
restrictions.
Support that is restricted by the grantor is reported as an increase in unrestricted
net assets if the restriction expires in the reporting period in which the support is
recognized. All other grantor -restricted support is reported as an increase in
temporarily or permanently restricted net assets, depending on the nature of the
restriction. When a restriction expires (that is, when a stipulated time restriction
ends or purpose restriction is accomplished), temporarily restricted net assets are
reclassified to unrestricted net assets and reported in the Statement of Activities
as net assets released from restrictions.
5
LA QUINTA CHAMBER OF COMMERCE
NOTES TO FINANCIAL STATEMENTS
June 30, 2014 and 2013
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Cash and Cash Equivalents
For purposes of the statement of cash flows, cash equivalents, include time
deposits, certificate of deposits, and all highly liquid debt instruments with original
maturities of three months or less.
Accounts Receivable
Accounts receivable are stated at the amount the Chamber expects to collect from
outstanding balances. The Chamber provides for probable uncollectible amounts
through a provision for bad debt expense and an adjustment to a valuation
allowance based on its assessment of the current status of individual accounts.
Balances that are still outstanding after the Chamber has used reasonable
collection efforts are written off through a charge to the valuation allowance and a
credit to accounts receivable.
Donated Services
A portion of the Chamber's functions is conducted by unpaid volunteers. The value
of the contributed time is not reflected in the accompanying financial statements
since the volunteer's time does not meet the criteria for recognition under FASB
ASC 958-605-25-16.
Membership Dues
Membership dues are recognized as revenue in the applicable membership
period.
Property and Equipment
Acquisitions of property and equipment in excess of $500 are capitalized and
recorded at cost. Depreciation of property and equipment is providedover the
estimated useful lives of the respective assets on a straight-line basis.
Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect certain reported amounts and disclosures. Accordingly, actual results
could differ from these estimates.
NOTE 1:
NOTE 2:
NOTE 3:
LA QUINTA CHAMBER OF COMMERCE
NOTES TO FINANCIAL STATEMENTS
June 30, 2014 and 2013
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Non -Profit Status
The Chamber is a private, Non -Profit Corporation organized under the laws of the
State of California. The Chamber is exempt from income taxes under Section 501
(c) (6) of the Internal Revenue Code and Section 23701 (e) of the State of
California Revenue and Taxation Code. Accordingly, no provisions for income
taxes are included in the accompanying financial statements.
Fair Value of Financial Instruments
The fair value of financial instruments have been determined through noted market
prices, present value techniques and other methodologies to approximate the
amounts recorded in the statement of financial position.
CASH AND CASH EQUIVALENTS
Cash consists of the following at June 30, 2014 and 2013:
Cash On Hand
Checking Accounts
PROPERTY AND EQUIPMENT
2014 2013
$ 894 $ 5,234
9,851 (3,128)
The following is a summary of property and equipment, less accumulated
depreciation at June 30, 2014 and 2013:
2014
2013
Leasehold Improvements
$ 15,516
$ 15,516
Computer & Office Equipment
21,504
21,504
Signage
1,967
1,967
Furniture & Fixtures
31.731
31.731
70,718
70,718
Accumulated Depreciation
(65,489)
(63,981)
7
LA QUINTA CHAMBER OF COMMERCE
NOTES TO FINANCIAL STATEMENTS
June 30, 2014 and 2013
NOTE 4: OTHER LIABILITIES
Other liabilities at June 30, 2014, were comprised of:
2014 2013
Accrued payroll $ 0 $ 0
Accrued vacation time payable 2,453 3,951
Payroll taxes payable 1.631 0
NOTE 5: LEASES
The chamber has an operating lease related to the rental of its office space. Lease
is an annual basis, with monthly payments of $1,000, which total $12,000 annually.
NOTE 6: FUNCTIONAL ALLOCATION OF EXPENSES
The costs of providing the various programs and activities have been summarized
on a functional basis in the statement of activities. Accordingly, certain costs have
been allocated among the programs and supporting services generated.
NOTE 7: EVALUATION OF SUBSEQUENT EVENTS
For the year ended June 30, 2014, the chamber has evaluated subsequent events
for potential recognition and disclosure through July 13, 2015 the date of financial
statement issuance.
10