Loading...
2021 05 04 Council CITY COUNCIL AGENDA 1 MAY 4, 2021 CITY COUNCIL AGENDA CITY HALL COUNCIL CHAMBER 78495 Calle Tampico, La Quinta REGULAR MEETING ON TUESDAY, MAY 4, 2021 3:00 P.M. CLOSED SESSION | 4:00 P.M. OPEN SESSION ****************************** SPECIAL NOTICE Teleconferencing and Telephonic Accessibility In Effect Pursuant to Executive Orders N-25-20, N-29-20, N-33-20, N-35-20, and N-60- 20 executed by the Governor of California, in response to the state of emergency relating to novel coronavirus disease 2019 (COVID-19) and enabling teleconferencing accommodations by suspending or waiving specified provisions in the Ralph M. Brown Act (Government Code § 54950 et seq.), members of the City Council, the City Manager, City Attorney, City Staff, and City Consultants may participate in this regular meeting by teleconference. Members of the public wanting to listen to the open session of the meeting may do so by tuning-in live via http://laquinta.12milesout.com/video/live.   Members of the public wanting to address the City Council during the open session, either for public comment or for a specific agenda item, or both, are requested to send an email notification to the La Quinta City Clerk’s Office at CityClerkMail@LaQuintaCA.gov, and specify the following information: 1) Full Name 4) Public Comment or Agenda Item Number 2) City of Residence 5) Subject 3) Phone Number 6) Written or Telephonic Verbal Comments The email “subject line” must clearly state “Written Comments” or “Telephonic Verbal Comments.” City Council agendas and staff reports are available on the City’s web page: www.LaQuintaCA.gov CITY COUNCIL AGENDA 2 MAY 4, 2021 *** TELECONFERENCE PROCEDURES *** Verbal public comments via Teleconference – requests to speak must be emailed to the City Clerk no later than 3:00 p.m. on the day of the meeting; the City will facilitate the ability for a member of the public to be audible to the City Council, and general public for the item(s) by providing him/her with the teleconference information for the meeting and allowing him/her to be queued in to speak. Please note – members of the public must independently queue themselves into the meeting following the instructions provided by the City. Only one person at a time may speak by telephone and only after being recognized by the Mayor. Written public comments must be received by the City Clerk’s Office no later than 3:00 p.m. on the day of the meeting, and will be distributed to the City Council, incorporated into the agenda packet and public record of the meeting, and will not be read during the meeting unless, upon the request of the Mayor, a brief summary of any public comment is asked to be read, to the extent the City Clerk’s Office can accommodate such request. It would be appreciated that any email communications for public comments related to the items on the agenda, or for general public comment, are provided to the City Clerk’s Office at the email address listed above prior to the commencement of the meeting. If that is not possible, and to accommodate public comments on items that may be added to the agenda after its initial posting or items that are on the agenda, every effort will be made to attempt to review emails received by the City Clerk’s Office during the course of the meeting. The Mayor or Chairperson will endeavor to take a brief pause before action is taken on any agenda item to allow the City Clerk to review emails and share any public comments received during the meeting. All emails received by the City Clerk, at the email address above, until the adjournment of the meeting, will be included within the public record relating to the meeting. ****************************** CALL TO ORDER ROLL CALL: Councilmembers: Fitzpatrick, Peña, Radi, Sanchez, Mayor Evans PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA At this time, members of the public may address the City Council on any matter not listed on the agenda by emailing written public comments or requests to provide verbal telephonic public comments as indicated above. Members of the public attending the meeting in-person are requested to complete a "Request to Speak" form. Please limit your comments to three (3) minutes CITY COUNCIL AGENDA 3 MAY 4, 2021 (or approximately 350 words). The City Council values your comments; however, in accordance with State law, no action shall be taken on any item not appearing on the agenda unless it is an emergency item authorized by Government Code § 54954.2(b). CONFIRMATION OF AGENDA CLOSED SESSION 1. THREAT TO PUBLIC SERVICES OR FACILITIES, PURSUANT TO SUBDIVISION (a) OF GOVERNMENT CODE SECTION 54957. CONSULTATION WITH: ALEXANDER JOHNSTON, SENIOR EMERGENCY MANAGEMENT COORDINATOR; WILLIAM H. IHRKE, CITY ATTORNEY (Review Continued Need and Response to Proclaimed State and Local Emergencies Caused by COVID-19) 2. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION; SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO PARAGRAPH (2) OR (3) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9 (NUMBER OF POTENTIAL CASES: 1) 3. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (D) OF SECTION 54956.9 OF THE GOVERNMENT CODE. NAME OF CASE: CITY OF LA QUINTA, PETITIONER, V. LA QUINTA ARTS FOUNDATION, RESPONDENT, USPTO TRADEMARK TRIAL AND APPEAL BD., CANCELLATION CASE NO.: 92076446. NAME OF CASE: LA QUINTA ARTS FOUNDATION, PLAINTIFF, V. CITY OF LA QUINTA, DEFENDANT, US DIST. COURT, CENTRAL DISTRICT OF CAL., CASE NO. 5:21-CV-515 4. PUBLIC EMPLOYEE PERFORMANCE EVALUATION (QUARTERLY REVIEW) PURSUANT TO GOVERNMENT CODE SECTION 54957, COUNCIL APPOINTED POSITION – CITY MANAGER RECESS TO CLOSED SESSION RECONVENE AT 4:00 P.M. REPORT ON ACTION(S) TAKEN IN CLOSED SESSION PLEDGE OF ALLEGIANCE PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA CITY COUNCIL AGENDA 4 MAY 4, 2021 At this time, members of the public may address the City Council on any matter not listed on the agenda by emailing written public comments or requests to provide verbal telephonic public comments as indicated above. Members of the public attending the meeting in-person are requested to complete a "Request to Speak" form. Please limit your comments to three (3) minutes (or approximately 350 words). The City Council values your comments; however, in accordance with State law, no action shall be taken on any item not appearing on the agenda unless it is an emergency item authorized by Government Code § 54954.2(b). ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS 1. PROCLAMATION IN RECOGNITION OF ALYSSA TORRES FOR HER DEDICATED COMMUNITY SERVICE. CONSENT CALENDAR NOTE: Consent Calendar items are routine in nature and can be approved by one motion. PAGE 1. APPROVE MEETING MINUTES DATED MARCH 2, 2021 9 2. APPROVE MEETING MINUTES DATED FEBRUARY 25, 2021 23 3. APPROVE MEETING MINUTES DATED JANUARY 27, 2021 41 4. APPROVE MEETING MINUTES DATED OCTOBER 20, 2020 53 5. ADOPT ORDINANCE NO. 592 AMENDING SECTIONS 14.16.040 AND 14.16.110 OF THE LA QUINTA MUNICIPAL CODE RESPECTIVELY RELATED TO UNAUTHORIZED ENCROACHMENT IN THE PUBLIC RIGHT- OF-WAY AND LIABILITY FOR DAMAGES 69 6. ADOPT ORDINANCE NO. 593 AMENDING THE LA QUINTA MUNICIPAL CODE BY REMOVING REFERENCE TO A “DARK SKY ORDINANCE” FROM SECTION 5.80.060 77 7. ACCEPT OFF-SITE AND ON-SITE IMPROVEMENTS ASSOCIATED WITH PARCEL MAP NO. 37683, RESIDENCE INN BY MARRIOTT, LOCATED SOUTH OF HIGHWAY 111 AND NORTH OF VISTA CORALINA LANE 89 8. ADOPT RESOLUTION TO APPROVE TIME EXTENSION TO COMPLETE ON- SITE IMPROVEMENTS FOR PALO VERDE II RESIDENTIAL DEVELOPMENT (TRACT MAP NO. 33336) LOCATED ON THE NORTH SIDE OF AVENUE 58 AND WEST OF MADISON STREET [RESOLUTION NO. 2021-014] 93 CITY COUNCIL AGENDA 5 MAY 4, 2021 9. ADOPT RESOLUTION TO APPROVE FISCAL YEAR 2021/22 INVESTMENT POLICY [RESOLUTION NO. 2021-015] 101 10. ACCEPT CITYWIDE MISCELLANEOUS AMERICANS WITH DISABILITIES ACT IMPROVEMENTS PROJECT NO. 2020-02 (COMMUNITY DEVELOPMENT BLOCK GRANT PROJECT NO. 4.LQ.41.20) LOCATED ON THE EAST SIDE OF JEFFERSON STREET SOUTH OF AVENUE 50 AND SOUTHWEST CORNER OF WASHINGTON STREET AND AVENUE 47 165 11. APPROVE AGREEMENT FOR CONTRACT SERVICES WITH FISHER INTEGRATED, INC FOR VIDEO STREAMING AND WEBSITE HOSTING SERVICES RELATED TO PUBLIC MEETINGS 169 12. APPROVE AMENDED UTILITY AGREEMENT WITH THE CITY OF LA QUINTA AND THE IMPERIAL IRRIGATION DISTRICT FOR THE DUNE PALMS ROAD BRIDGE PROJECT 2011-05/111205 FOR RELOCATION AND THE UNDERGROUNDING OF EXISTING ELECTRICAL FACILITIES 207 13. APPROVE THIRD AMENDMENT TO MEMORANDUM OF UNDERSTANDING WITH THE COUNTY OF RIVERSIDE FOR A ONE-YEAR EXTENSION FOR LIBRARY, MUSEUM AND MAKERSPACE MANAGEMENT 225 14. APPROVE CHANGE ORDER NO. 1 TO CONTRACT WITH CONVERGINT TECHNOLOGIES FOR THE CITYWIDE PUBLIC SAFETY CAMERA SYSTEM PROJECT (PROJECT NO. 2020-03) FOR INSTALLATION OF 12 STRAND FIBER, NEW CIRCUITS, CABLE AND RADIO 231 15. APPROVE ADDENDUM NO. 2 TO THIRD AMENDMENT AND RESTATEMENT OF JOINT POWERS AGREEMENT OF THE COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS ADMITTING THE TWENTY- NINE PALMS BAND OF MISSION INDIANS TRIBE AS A MEMBER 237 16. APPROVE DEMAND REGISTERS DATED APRIL 16, AND 23, 2021 245 BUSINESS SESSION PAGE 1. APPROVE OUTSTANDING PENSION OBLIGATION FUNDING OPTIONS AND ASSOCIATED BUDGET ADJUSTMENT 259 STUDY SESSION PAGE 1. DISCUSS FISCAL YEAR 2021/22 PRELIMINARY PROPOSED BUDGET 283 CITY COUNCIL AGENDA 6 MAY 4, 2021 2. SILVERROCK RESORT DEVELOPMENT PROJECT UPDATE AND DEVELOPER PROGRESS TO CURE DEFAULT 371 PUBLIC HEARINGS – NONE DEPARTMENTAL REPORTS 1. CITY MANAGER 2. CITY ATTORNEY 3. CITY CLERK 4. COMMUNITY RESOURCES 5. DESIGN AND DEVELOPMENT 6. FINANCE 7. PUBLIC WORKS - QUARTERLY REPORT JANUARY – MARCH 2021 373 8. POLICE 9. FIRE MAYOR’S AND COUNCIL MEMBERS’ ITEMS REPORTS AND INFORMATIONAL ITEMS 1. CVAG CONSERVATION COMMISSION (Evans) 2. CVAG ENERGY AND ENVIRONMENTAL RESOURCES COMMITTEE (Evans) 3. CVAG EXECUTIVE COMMITTEE (Evans) 4. GREATER PALM SPRINGS CONVENTION AND VISITORS BUREAU (Evans) 5. LEAGUE OF CALIFORNIA CITIES DELEGATE (Evans) 6. COACHELLA VALLEY WATER DISTRICT JOINT POLICY COMMITTEE (Evans) 7. SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS (Evans) 8. ECONOMIC DEVELOPMENT SUBCOMMITTEE (Evans & Radi) 9. COACHELLA VALLEY MOUNTAINS CONSERVANCY (Fitzpatrick) 10. DESERT RECREATION DISTRICT COMMITTEE (Fitzpatrick & Radi) 11. COACHELLA VALLEY UNIFIED SCHOOL DISTRICT COMMITTEE (Fitzpatrick & Peña) 12. RIVERSIDE COUNTY TRANSPORTATION COMMISSION (Fitzpatrick) 13. SILVERROCK EVENT SITE AD HOC COMMITTEE (Fitzpatrick) 14. CANNABIS AD HOC COMMITTEE (Peña and Sanchez) 15. CVAG PUBLIC SAFETY COMMITTEE (Peña) 16. CVAG VALLEY-WIDE HOMELESSNESS COMMITTEE (Peña) 17. LEAGUE OF CALIFORNIA CITIES – PUBLIC SAFETY POLICY COMMITTEE (Peña) 18. IMPERIAL IRRIGATION DISTRICT – ENERGY CONSUMERS ADVISORY COMMITTEE (Peña) 19. COVID-19 SMALL BUSINESS EMERGENCY ECONOMIC RELIEF PROGRAM AD HOC COMMITTEE (Peña and Radi) 20. CVAG TRANSPORTATION COMMITTEE (Radi) 21. SUNLINE TRANSIT AGENCY (Radi) CITY COUNCIL AGENDA 7 MAY 4, 2021 22. CITYWIDE SECURITY CAMERAS AD HOC COMMITTEE (Radi) 23. DESERT SANDS UNIFIED SCHOOL DISTRICT COMMITTEE (Radi & Sanchez) 24. ANIMAL CAMPUS COMMISSION (Sanchez) 25. GREATER CV CHAMBER OF COMMERCE INFORMATION EXCHANGE COMMITTEE (Sanchez) 26. LEAGUE OF CALIFORNIA CITIES – TRANSPORTATION, COMMUNICATION AND PUBLIC WORKS POLICY COMMITTEE (Sanchez) 27. RIVERSIDE LOCAL AGENCY FORMATION COMMISSION (Sanchez) 28. PALM SPRINGS AIRPORT COMMISSION MINUTES DATED APRIL 21, 2021 377 ADJOURNMENT ********************************* The next regular meeting of the City Council will be held on May 18, 2021, at 4:00 p.m. at the City Hall Council Chambers, 78495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, Monika Radeva, City Clerk, of the City of La Quinta, do hereby declare that the foregoing Agenda for the La Quinta City Council meeting was posted on the City’s website, near the entrance to the Council Chambers at 78495 Calle Tampico, and the bulletin boards at the Stater Brothers Supermarket at 78630 Highway 111, and the La Quinta Cove Post Office at 51321 Avenida Bermudas, on April 30, 2021. DATED: April 30, 2021 MONIKA RADEVA, City Clerk City of La Quinta, California Public Notices  The La Quinta City Council Chamber is handicapped accessible. If special equipment is needed for the hearing impaired, please call the City Clerk’s office at (760) 777- 7092, twenty-four (24) hours in advance of the meeting and accommodations will be made.  If special electronic equipment is needed to make presentations to the City Council, arrangements should be made in advance by contacting the City Clerk’s office at (760) 777-7092. A one (1) week notice is required.  If background material is to be presented to the Councilmembers during a City Council meeting, please be advised that eight (8) copies of all documents, exhibits, CITY COUNCIL AGENDA 8 MAY 4, 2021 etc., must be supplied to the City Clerk for distribution. It is requested that this take place prior to the beginning of the meeting.  Any writings or documents provided to a majority of the City Council regarding any item(s) on this agenda will be made available for public inspection at the Community Development counter at City Hall located at 78495 Calle Tampico, La Quinta, California, 92253, during normal business hours. CITY COUNCIL MINUTES Page 1 of 14 MARCH 2, 2021   CITY COUNCIL MINUTES TUESDAY, MARCH 2, 2021 CALL TO ORDER A regular meeting of the La Quinta City Council was called to order at 3:02 p.m. by Mayor Evans. This meeting provided teleconferencing accessibility pursuant to Executive Orders N-25-20, N-29-20, N-33-20, N-35-20, and N-60-20 executed by the Governor of California, in response to the state of emergency relating to novel coronavirus disease 2019 (COVID-19) and enabling teleconferencing accommodations by suspending or waiving specified provisions in the Ralph M. Brown Act (Government Code § 54950 et seq.). PRESENT: Councilmembers Fitzpatrick, Peña, Radi, Sanchez, Mayor Evans ABSENT: None STAFF PRESENT: City Manager McMillen, City Attorney Ihrke, City Clerk Radeva, Community Resources Director Escobedo, Public Safety Manager Mendez, Riverside County Sheriff’s Department Lt. Buompensiero, Design and Development Director Castro, Code Compliance/Animal Control Supervisor Meredith, Senior Planner Flores, Public Works Director/City Engineer McKinney, Management Analyst Mignogna, and Financial Services Analyst Hallick. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None CONFIRMATION OF AGENDA City Manager McMillen requested that Consent Calendar Item No. 4 be pulled from consideration on tonight’s agenda. Councilmember Peña said he will recuse himself from discussion and vote on Consent Calendar Item No. 2 due to a potential conflict of interest stemming from the proximity of his real property to this project, and requested that it be pulled for a separate vote. Councilmember Peña said he will recuse himself from discussion and vote on Business Session Item No. 1 due to a potential conflict of interest stemming from the proximity of his real property to this project. Council concurred. CONSENT CALENDAR ITEM NO. 1 9 CITY COUNCIL MINUTES Page 2 of 14 MARCH 2, 2021   CLOSED SESSION 1. THREAT TO PUBLIC SERVICES OR FACILITIES, PURSUANT TO SUBDIVISION (a) OF GOVERNMENT CODE SECTION 54957. CONSULTATION WITH: ALEXANDER JOHNSTON, SENIOR EMERGENCY MANAGEMENT COORDINATOR; WILLIAM H. IHRKE, CITY ATTORNEY (Review Continued Need and Response to Proclaimed State and Local Emergencies Caused by COVID-19) 2. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION; SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO PARAGRAPH (2) OR (3) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9 (NUMBER OF POTENTIAL CASES: 1) COUNCIL RECESSED THE OPEN SESSION PORTION OF THE MEETING AND MOVED INTO CLOSED SESSION AT 3:03 P.M. MAYOR EVANS RECONVENED THE OPEN SESSION PORTION OF THE CITY COUNCIL MEETING AT 4:07 P.M. WITH ALL MEMBERS PRESENT REPORT ON ACTION(S) TAKEN IN CLOSED SESSION: City Attorney Ihrke reported no actions were taken in Closed Session that require reporting pursuant to Government Code Section 54950 et seq. (Brown Act). PLEDGE OF ALLEGIANCE Mayor Pro Tem Radi led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA PUBLIC SPEAKERS VIA TELEPHONIC ACCESSIBILITY listed in the order in which they spoke:  Hoesterey, Paul (La Quinta) – expressed concern that he never received responses to letters he submitted in February 2021 and in 2019; both letters explained his disappointment with Council for ignoring the concerns of citizens, and repeated unanimous votes of Council do not reflect citizens’ concerns.  Paul, Timothy (La Quinta) [from providing public comment at a later time in the meeting] – addressed his statements at a previous meeting to make it clear that he never insulted anyone but called certain statements foolish, not the person; asked that his passion not be construed as instability. 10 CITY COUNCIL MINUTES Page 3 of 14 MARCH 2, 2021   ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS Council called for a moment of silence in honor of Tommy Edwards, a long-time public servant and unique individual who served as the Chief Science Officer at SunLine Transit Agency, and served the Coachella Valley community he loved with vision and integrity and always for the greater good. CONSENT CALENDAR 1. APPROVE MEETING MINUTES DATED JANUARY 19, 2021 2. pulled by Councilmember Peña for a separate vote >>> ACCEPT LA QUINTA VILLAGE COMPLETE STREETS A ROAD DIET PROJECT NO. 2015-03/151603 3. APPROVE PLANS, SPECIFICATIONS, ENGINEER’S ESTIMATE, AND ADVERTISE FOR BID THE MONROE STREET PAVEMENT REHABILITATION PROJECT NO. 2020-01, LOCATED BETWEEN AVENUE 52 TO AVENUE 53, AND NEAR AVENUE 61 4. pulled from consideration from the agenda by staff >>> AUTHORIZE THE PUBLIC WORKS DEPARTMENT TO UTILIZE DESERT CONCEPTS CONSTRUCTION FOR UP TO $150,000 OF WORK FOR FISCAL YEAR 2020/21, WHEN DESERT CONCEPTS CONSTRUCTION IS THE QUALIFIED AND/OR LOWEST BIDDER 5. RECEIVE AND FILE SECOND QUARTER 2020/21 TREASURY REPORTS FOR OCTOBER, NOVEMBER, AND DECEMBER 2020 6. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED DECEMBER 31, 2020 7. ADOPT RESOLUTION TO REAFFIRM ADOPTION OF ANNUAL ASSESSMENT FOR COUNTY SERVICE AREA 152; AUTHORIZE RIVERSIDE COUNTY TO CONTINUE TO LEVY ASSESSMENTS; AND INDEMNIFY AND HOLD THE COUNTY HARMLESS FOR LEVYING ASSESSMENTS ON CITY PARCELS [RESOLUTION NO. 2021-003] 8. APPROVE DEMAND REGISTERS DATED FEBRUARY 12 AND 19, 2021 MOTION – A motion was made and seconded by Councilmembers Fitzpatrick/ Peña to approve Consent Calendar Item Nos. 1, 3, and 5-8 as recommended, with Item No. 7 adopting Resolution No. 2021-003. Motion passed unanimously. 11 CITY COUNCIL MINUTES Page 4 of 14 MARCH 2, 2021   CONSENT CALENDAR ITEM NO. 2 COUNCILMEMBER PEÑA RECUSED HIMSELF FROM THE VOTE ON CONSENT CALENDAR ITEM NO. 2 DUE TO A POTENTIAL CONFLICT OF INTEREST STEMMING FROM THE PROXIMITY OF HIS REAL PROPERTY TO THE PROJECT LOCATIONS MOTION – A motion was made and seconded by Councilmembers Radi/ Fitzpatrick to approve Consent Calendar Item No. 2 as recommended. Motion passed: ayes 4, noes 0, abstain 1 (Peña). BUSINESS SESSION COUNCILMEMBER PEÑA RECUSED HIMSELF FROM DISCUSSION AND VOTE ON BUSINESS SESSION ITEM NO. 1 DUE TO A POTENTIAL CONFLICT OF INTEREST STEMMING FROM THE PROXIMITY OF HIS REAL PROPERTY TO THE PROJECT LOCATIONS, AND LEFT THE MEETING 1. CONTINUED FROM FEBRUARY 16, 2021: INTRODUCE FOR FIRST READING AN ORDINANCE ADDING CHAPTER 11.100 TO THE LA QUINTA MUNICIPAL CODE RELATED TO A POLICY WITH OPERATIONAL PROCEDURES FOR A PUBLIC SAFETY CAMERA SYSTEM (PSCS); AND APPROVE POLICIES AND PROCEDURES FOR CITYWIDE PUBLIC SAFETY CAMERA SYSTEM [ORDINANCE NO. 589] Public Safety Manager Mendez and Community Resources Director Escobedo presented the staff report, which is on file in the Clerk’s Office. In response to Councilmember Sanchez, City Attorney Ihrke explained that as currently written, the ordinance does not require a four-fifth (4/5) majority vote of Council to amend the ordinance in the future. City Attorney Ihrke stated that because La Quinta is a Charter City, a section could be added to 11.100.020 of the ordinance to require future Councils to reach a four-fifths majority to pass any amendments to the ordinance. Mayor Pro-Tem Radi added that requiring a four-fifths vote to amend imposes a higher burden on future Councils which is appropriate for public safety cameras. WRITTEN PUBLIC COMMENTS were received from the following prior to the adjournment of the meeting at 9:50 p.m., including those received during the live meeting, and have been distributed to Council and incorporated into the agenda packet:  Anonymous – provided recommendations on the proposed language.  Paul, Timothy (La Quinta) – provided recommendations. 12 CITY COUNCIL MINUTES Page 5 of 14 MARCH 2, 2021   PUBLIC SPEAKER VIA TELEPHONIC ACCESSIBILITY:  Paul, Timothy (La Quinta) – expressed his disappointment that his recommendations have not been included on this matter; at a minimum, requests that the word “residential” be changed to “private” to protect both residences and private businesses from surveillance; change “will notify people at various locations that they are being surveilled” to “will notify all locations”; requests time to meet with Council or Staff to discuss; opposes using the 2019 survey as justification for this program as the survey question asked if residents supported or opposed the “public safety pilot program”, a phrase that primed responders to support – should have used phrase “public surveillance program”, and; supports a ballot measure on this program to gauge public support. City Attorney Ihrke explained that by law, there is no reasonable expectation of privacy for parking lots and business entryways. Sheriff Lt. Buompensiero stated that cameras will be placed on roadways and will pick up images of some parking lots which will be useful to law enforcement to deter retail crime, especially along Highway 111; although some businesses have their own cameras, the quality is often poor, and exterior coverage limited, and; does not recommend blacking out all businesses. City Attorney Ihrke proposed language to add to the ordinance should Council desire, allowing businesses to request that blackout masking be applied to their business premises. Council discussed the process leading to the proposed PSCS program which included (a) multiple surveys - first addressing the pilot program, then a comprehensive survey, (b) conducting a pilot program, (c) GEM articles, (d) online updates, (e) examination of the effectiveness of PSCS in other cities, (f) invitations to submit electronic input, and (g) multiple community sessions to display live videos for public input and understanding of the workings, purpose and images captured by the program; the intent and governing of the program being strictly fixed video only, focused on streets – no facial recognition, no audio, no two-way communication, no license plate reader, and no drones following people; the importance of augmenting security measures with cameras at a time when the cost of police services continually rises; a map of all camera locations is available on the City’s website; many signs alerting the public of cameras will be installed around camera locations but sign clutter will be avoided; adding the phrase “working cameras” to signs may be useful; replacing word “various” in the ordinance with “in order to notify the public”, and; safeguards against hacking into the system. MOTION – A motion was made and seconded by Councilmembers Radi/ Sanchez to take up Ordinance No. 589 by title and number only and waive further reading, with the following amendment: 13 CITY COUNCIL MINUTES Page 6 of 14 MARCH 2, 2021    Add Subsection C under Section 11.100.020 to read as follows: “C. Subsection B may not be amended to reduce the vote requirement to adopt an amendment to the policy with operational procedures, as set forth in Subsection B, except by no less than four-fifths (4/5) majority vote of the city council.” Motion passed: ayes 4, noes 0, abstain 0, absent 1 (Peña). City Clerk Radeva read the following title of Ordinance No. 589 into the record: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, ADDING CHAPTER 11.100 OF THE LA QUINTA MUNICIPAL CODE RELATED TO A POLICY WITH OPERATIONAL PROCEDURES FOR A PUBLIC SAFETY CAMERA SYSTEM MOTION – A motion was made and seconded by Councilmembers Radi/ Sanchez to introduce at first reading Ordinance No. 589 to add Chapter 11.100, as amended, to the La Quinta Municipal Code related to policy with operational procedures for a public safety camera system. Motion passed: ayes 4, noes 0, abstain 0, absent 1 (Peña). MOTION – A motion was made and seconded by Councilmembers Radi/ Sanchez to approve policies and procedures for a public safety camera system in La Quinta as recommended with the following amendments:  Add Subsection H to “Specific Policies” section of the policy to read as follows: “H. When a business property is clearly, and knowingly in alignment with the PSCS’s line of sight, a written request may be submitted by the business to the City Manager’s Office to apply black-out masking technology for privacy reasons to eliminate potential unintended intrusions.”  Add the word “masking” to Subsection F of “Specific Policies” section of the policy to state “black-out masking technology …”  Replace wording in “Camera Notification and Public Outreach” section of the policy to state “Signs will be placed in various locations order to notify the public that public safety camera system will be monitoring driving and pedestrian activities in public places.” Motion passed: ayes 4, noes 0, abstain 0, absent 1 (Peña). COUNCILMEMBER PEÑA RE-JOINED THE CITY COUNCIL MEETING AT 5:10 P.M. 2. CONTINUED FROM FEBRUARY 25, 2021: INTRODUCE FOR FIRST READING AN ORDINANCE AMENDING CHAPTER 3.25 OF THE LA QUINTA MUNICIPAL CODE RELATED TO SHORT-TERM VACATION RENTALS (STVR) [ORDINANCE NO. 590] 14 CITY COUNCIL MINUTES Page 7 of 14 MARCH 2, 2021   Design and Development Director Castro presented the staff report, which is on file in the Clerk’s Office. Council discussed Code Compliance Staff’s practice of considering the absence of a valid permit number and/or an accurate bedroom count in advertisements on STVR platforms a minor violation against the owner, and whether that should rise to a major violation after some grace period; and method by which STVR platforms will be able to verify that permit numbers inserted by operators are valid. City Manager McMillen clarified that the proposed ordinance would classify a one-time omission of a permit number or accurate bedroom count on an ad as minor, not to be counted as a strike, but all subsequent such offenses would count as a strike. WRITTEN PUBLIC COMMENTS were received from the citizens listed below in alphabetical order, prior to the adjournment of the meeting at 9:50 p.m., including those received during the live meeting, and have been distributed to Council and incorporated into the agenda packet: 1. Armendarez, Edward (La Quinta) – opposes STVRs (comments read into the public record by City Clerk Radeva at Mr. Armendarez’ request). 2. Bendokas, Heidi (La Quinta) – supports STVRs. 3. Bendokas, Tim (La Quinta) – support STVRs. 4. Cutchin, Marcia (La Quinta) – opposes STVRs. 5. Gallagher, Janet – recommending stricter STVR regulations. 6. Gallagher, Jim - recommending stricter STVR regulations. 7. Gotshalk, Arlene (La Quinta) – opposes STVRs. 8. Gray, Ricardo (La Quinta) – opposes STVRs. 9. Heredia, Joan (La Quinta) – supports indefinite moratorium. 10. Katuls, Tiffany (La Quinta) – supports responsible STVRs. 11. Miser, Grant (La Quinta) – supports STVRs. 12. Reyes, Laura – provided comments on STVR permit types and fees. 13. Rhodes, Jesse - supports STVRs. 14. Stoddard, Bob – supports a permanent moratorium. 15. Stoddard, Cindy – supports a permanent moratorium. 16. Sweeney, Michael – opposes a permanent moratorium. 17. Thompson, Craig – opposes STVRs. 18. Thompson, Marie – opposes STVRs. 19. Vano, Laura – supports a permanent moratorium. PUBLIC SPEAKERS VIA TELEPHONIC ACCESSIBILITY listed in the order in which they spoke: 1. Perry, Kristen (La Quinta) – owns one STVR and awaits a permit for a second; opposes conjoining STVR matters with affordable housing concerns; supports excluding PGA West from City deliberations; stated 15 CITY COUNCIL MINUTES Page 8 of 14 MARCH 2, 2021   the benefits of STVR to local employees; and supports re-opening the STVR program for new permits. 2. Heredia, Joan (La Quinta) – opposes STVRs in residential neighborhoods; encouraged Council to reconsider imposing a cap on bookings per year, suggests 24, because without a cap and with the freeze on new permits, existing permit holders’ bookings will increase in frequency causing continual disturbance to those neighbors; supports codifying the moratorium on new permits indefinitely; supports the two-strike regulation and the new fees; and is concerned that Council is relying on attrition, which could takes years to reduce STVR permits but understands Council is trying to reach a fair compromise between STVR owners and residents. 3. Church, Stella (La Quinta) – resident since 2017; opposes STVRs; unsuccessfully tried to communicate to the owner of a nearby STVR; and wants peace in her neighborhood again. Mayor Evans, City Manager McMillen and Code Compliance/Animal Control Supervisor Meredith, explained the City’s, procedures to address unpermitted STVR properties and encouraged residents to contact City Hall with the address of any STVR suspected of operating without a permit. PUBLIC SPEAKERS VIA TELEPHONIC ACCESSIBILITY continued: 4. Miser, Grant (Utah) – purchased a home days before the moratorium was enacted with intent to operate a STVR until a time when his family occupies it each winter; during the moratorium, he rented the house for 28+ days; and requested that the Council offer new owners such as himself 30-60 days to obtain a permit if the moratorium is made permanent. 5. Dinnel, David (La Quinta/Los Angeles) – owns a 5+ bedroom STVR; large increase in fee has reduced the value of his home; received no government financial assistance for business loss during moratorium; lives at his STVR 2-3 days per week; supports best practices; supports guests receiving violations; and supports owners and Code Enforcement working together on violations. 6. Gotshalk, Arlene (La Quinta) – supports the Council’s solutions discussed at the February 25, 2021 meeting; supports diversifying the tourism economy; suggests appointing a committee of residents to explore economic diversification; and supports a permanent moratorium on new STVRs in residential neighborhoods. 7. Wolff, Kay (Cove) – previously supported a complete ban on STVRs, now supports the compromise proposed; supports the features in the ordinances such as separating types of STVRs, the appropriate regulations for each, and the increased fees and fines; the forthcoming ordinance enacting a permanent moratorium on new permits proves the Council has listened to its constituents and STVR owners alike; hopes that the new regulation, better enforcement, efficient administration and the 16 CITY COUNCIL MINUTES Page 9 of 14 MARCH 2, 2021   permanent moratorium on new permits will win over skeptics, and; STVR owners now must prove their worthiness to operate in La Quinta. 8. de Sam Lazarro, Richard (Seattle) on behalf of Expedia Group/VRBO – supports the proposed ordinance; and supports continued cooperation with the City. 9. McCarroll, Eileen – recently purchased a home with expectation that could rent it as a STVR when not in residence; has no objection to a cap on bookings or increased fees, but objects to Council’s assumption that new permit holders are bad operators; and supports an exception for new homeowners caught in limbo due to the moratorium. Council discussed the reasoning for a continued moratorium on new permits being the current saturation exceeding the City’s capacity, not any determination or inference that new permitholders would be bad operators; the need to give new regulations time to take effect and be evaluated before considering an ease on the moratorium; the evolution of the STVR program; the massive input and research done to improve the program, and time spent to get it right; the numerous changes made over the years in response to residents; the difficulty of finding solutions when there are equal numbers for and against, and although not a primary factor, the Council’s responsibility to safeguard the City’s long-term financial health; the goal being consensus among stakeholders so it is prudent to take it slow and address issues bit by bit; and Council’s commitment to affordable housing and understanding that STVRs play some role. MOTION – A motion was made and seconded by Councilmembers Peña/ Fitzpatrick to take up Ordinance No. 590 by title and number only and waive further reading. Motion passed unanimously. City Clerk Radeva read the following title of Ordinance No. 590 into the record: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AMENDING CHAPTER 3.25 OF THE LA QUINTA MUNICIPAL CODE RELATED TO SHORT TERM VACATION RENTALS MOTION – A motion was made and seconded by Councilmembers Peña/Radi to introduce at first reading Ordinance No. 590 to amend Chapter 3.25 of the La Quinta Municipal Code relating to Short-Term Vacation Rentals. Motion passed unanimously. City Clerk Radeva announced that Ordinance 590 will go to Council for second reading and adoption at the regular meeting of March 16, 2021 and will be in effect 30 days following the March 16th meeting if it is adopted by Council. 17 CITY COUNCIL MINUTES Page 10 of 14 MARCH 2, 2021   PUBLIC HEARINGS 1. CONTINUED FROM FEBRUARY 25, 2021: ADOPT RESOLUTION TO AMEND THE CITY’S SHORT-TERM VACATION RENTAL PROGRAM PERMIT FEES [RESOLUTION NO. 2021-004] City Clerk Radeva introduced City Consultant Terry Madsen, President and CEO of ClearSource Financial Consulting who via Zoom presented the staff report, which is on file in the Clerk’s Office. MAYOR EVANS DECLARED THAT THIS PUBLIC HEARING IS A CONTINUATION OF THE PUBLIC HEARING LEFT OPEN AT THE FEBRUARY 25, 2021 MEETING WRITTEN PUBLIC COMMENTS were received from the following prior to the adjournment of the meeting at 9:50 p.m., including those received during the live meeting, and have been distributed to Council and incorporated into the agenda packet:  Reyes, Laura – provided comments on STVR fees. PUBLIC SPEAKER VIA TELEPHONIC ACCESSIBILITY:  Tamm, Jelena (La Quinta/Los Angeles) – supports a separate fee for the tourist commercial (TC) and village commercial (VC) districts which were built specifically for STVRs; the TC and VC zones are a non-issue for Code Compliance; TC zone owners in Legacy Villas for example already pay to the City a combined mitigation fee of $378,000; and believes the fees are excessive. City Attorney Ihrke clarified that the mitigation fee paid by Legacy Villas was built into the original development agreement to mitigate the loss of transient occupancy tax (TOT) or sales tax revenue the City would realize by granting permission for residential development rather than a hotel or commercial development planned for the site. City Consultant Madsen explained that the fee analysis differentiated between different types of permits but did not make distinctions between zones, e.g., residential versus TC. Code Compliance/Animal Control Supervisor Meredith informed Council that although Code Compliance has gotten few complaints from Legacy Villas, that is not the case for all communities in the TC zones. City Clerk Radeva explained that the new fees would apply to those whose renewal date is on or after the date the new fees take effect, not the date one submits the renewal application. 18 CITY COUNCIL MINUTES Page 11 of 14 MARCH 2, 2021   Council discussed setting the fee for STVRs with five bedrooms or more at $1,250 for both primary residences and general STVRs; lowering fees in TC zones as an incentive to STVR owners to purchase homes there rather than residential zones; and reminder that all fees are cost recovery only, and that TOT revenue is tax revenue meant to support general city operation such as police, roadways, lighting, etc., TOT is not meant to sustain the STVR program. MAYOR EVANS DECLARED THE PUBLIC HEARING CLOSED AT 7:15 P.M. MOTION – A motion was made and seconded by Councilmembers Fitzpatrick/ Radi to adopt Resolution No. 2021-004 to amend the City’s Short-Term Vacation Rental Program Permit Fees as recommended with the following amendments:  Permit fee for General STVR (five bedrooms or more) to be set at $1,250;  Add note [a] related to fees if special inspection is required, amount will be billed hourly in half-hour increments using the billing rate of the department providing the services; and  New fees to become effective May 1, 2021. Motion passed unanimously. MAYOR EVANS CALLED FOR A BRIEF RECESS AT 7:18 P.M. MAYOR EVANS RECONVENED THE COUNCIL MEETING AT 7:42 P.M. WITH ALL MEMBERS PRESENT 2. CONTINUED FROM DECEMBER 15, 2020: ADOPT RESOLUTIONS TO ADOPT MITIGATED NEGATIVE DECLARATION AND MITIGATION MONITORING AND REPORTING PROGRAM FOR ENVIRONMENTAL ASSESSMENT 2017-0006, AND APPROVE SPECIFIC PLAN 2017- 0002 AMENDMENT NO. 2, TENTATIVE PARCEL MAP 2017-0003, AND SITE DEVELOPMENT PERMIT 2017-0009 PROPOSING AN APPROXIMATE 125,000 SQUARE-FOOT SHOPPING CENTER WITH DRIVE-THROUGHS AND A 63,000 SQUARE-FOOT SUPERMARKET WITH ASSOCIATED VEHICLE FUEL CENTER; CEQA: THE DESIGN AND DEVELOPMENT DEPARTMENT HAS PREPARED A MITIGATED NEGATIVE DECLARATION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT; LOCATION: NORTHWEST CORNER OF AVENUE 50 AND JEFFERSON STREET; PROJECT: PAVILION PALMS SHOPPING CENTER [RESOLUTION NOS. 2021-005 AND 2021-006] Planning Manager Flores presented the staff report, which is on file in the City Clerk’s Office. Applicant Greg Bever, Mark Lenning of MSA Consulting, Inc and Page Winkler of MCG Architecture presented details of the project design. 19 CITY COUNCIL MINUTES Page 12 of 14 MARCH 2, 2021   Council discussed the project landscaping; the fueling station design; delivery times and routes of fuel and groceries to the project; landscaping on lots left vacant for future construction; adequate outside dining space for restaurants; locations of back-of-house facilities; and corner signage and sign program to be developed and approved by the Planning Commission. MAYOR EVANS DECLARED THAT THIS PUBLIC HEARING IS A CONTINUATION OF THE PUBLIC HEARING LEFT OPEN AT THE DECEMBER 15, 2020 MEETING. PUBLIC SPEAKER VIA TELECONFERENCE ACCESSIBILITY:  Cantarini, Gerald (La Quinta) – supports the improved design; suggests soundproofing the open area at Jefferson Street and Avenue 50 due to heavy traffic noise at that intersection; turn-around space not adequate for double tanker fuel trucks; asked what will be built as part of Phase 1; requested that a 6’-8’ high block wall replace the iron fence between building 1 and the residential community; and asked if Pavilions market building roof will be redesigned. WRITTEN PUBLIC COMMENTS were received from the following prior to the adjournment of the meeting at 9:50 p.m., including those received during the live meeting, and have been distributed to Council and incorporated into the agenda packet:  Mills, Richard – opposes the inclusion of a gas station. Council, the applicant, and applicant’s representatives discussed components of Phase 1 being everything except buildings 1, 2, 8, 9, and 10; confirmed that the placement of buildings has not changed since Council’s review on December 15, 2020; circulation and proper clearances for deliveries; and additional screening between building 1 and the residential community. MAYOR EVANS DECLARED THE PUBLIC HEARING CLOSED AT 8:40 P.M. Council discussed the exhaustive and difficult process and multiple design revisions and reviews for this strategic and iconic corner; thanked the Planning Commission, the applicant, and public who provided input; signage program approval process; Council’s inability to restrict uses permitted by the City’s Zoning Code and earlier Site Development Permits; potential that the development will be a community gathering spot; appreciation for the design; and continuing the landscaping and cozy atmosphere to the interior of the development. MOTION – A motion was made and seconded by Councilmembers Fitzpatrick/ Radi to adopt Resolution No. 2021-005 to adopt a Mitigated Negative Declaration for the Fairway Plaza Specific Plan Amendment No. 2, “Pavilion 20 CITY COUNCIL MINUTES Page 13 of 14 MARCH 2, 2021   Palms” Shopping Center and a Mitigation Monitoring and Reporting Program for Environmental Assessment 2017-0006: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, ADOPTING A MITIGATED NEGATIVE DECLARATION FOR THE PAVILION PALMS SHOPPING CENTER LOCATED AT THE NORTHWEST CORNER OF JEFFERSON STREET AND AVENUE 50; CASE NUMBER ENVIRONMENTAL ASSESSMENT 2017-0006; APPLICANT: LUNDIN DEVELOPMENT COMPANY Motion passed unanimously. MOTION – A motion was made and seconded by Councilmembers Fitzpatrick/ Radi to adopt Resolution No. 2021-006 to approve Specific Plan 2017-0002, Amendment No. 2 of the Fairway Plaza Specific Plan (SP 1998-034), Tentative Parcel Map 2017- 0003 (TPM 37370), and Site Development Permit 2017-0009, subject to the Findings and Conditions of Approval: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, FOR APPROVAL OF A SPECIFIC PLAN AMENDMENT, TENTATIVE PARCEL MAP, AND SITE DEVELOPMENT PERMIT FOR THE PAVILION PALMS SHOPPING CENTER LOCATED AT THE NORTHWEST CORNER OF JEFFERSON STREET AND AVENUE 50; CASE NUMBERS: SP 2017-0002, TPM 2017-0003 (TPM 37370), SDP 2017-0009; APPLICANT: LUNDIN DEVELOPMENT COMPANY Motion passed unanimously. STUDY SESSION 1. DISCUSS PROJECTS TO BE INCLUDED IN FISCAL YEARS 2021/22 THROUGH 2025/26 CAPITAL IMPROVEMENT PROGRAM Management Analyst Mignogna presented the staff report, which is on file in the Clerk’s Office. Public Works Director/City Engineer McKinney, City Consultant Nick Nickerson of NAI Consulting and Financial Services Analyst Hallick provided additional information in response to Council’s questions. Council discussed funding for the skate park; adding lighting and shade in parks; the purpose of Pavement Condition Index (PCI) ratings and how it relates to funding; funding sources; options to accelerate projects by increasing funding; support to increase Pavement Management Plan (PMP) funding by $1.5 million; the need for ongoing PMP projects to keep the City’s PCI rating above 80, especially as streets age; funding source instability and fluctuation; funding for CV Link stop-points and amenities; the need for more outdoor shaded areas; progress in paying off developer reimbursement agreements; restarting the median improvement project; establishing a committee to work with the City on the Village area design; and drainage projects in the queue. 21 CITY COUNCIL MINUTES Page 14 of 14 MARCH 2, 2021   Council reached a consensus and directed staff to increase CIP funding to $1.5 million and to work with the developer at Eisenhower Drive and Avenue 50 on drainage requirements. DEPARTMENTAL REPORTS All reports are on file in the City Clerk’s Office. MAYOR’S AND COUNCIL MEMBERS’ ITEMS Mayor Pro Tem Radi requested that the City explore the use of the Wellness Center as a vaccination site for seniors. Councilmember Peña noted that a company was mailing advertisements to residents offering to build Auxiliary Dwelling Units in back yards. Councilmember Fitzpatrick said that the Fritz Burns public pool reopening has produced positive community feedback. Mayor Evans reported on her presentation to the Women’s Council of Realtors. REPORTS AND INFORMATIONAL ITEMS La Quinta’s representative for 2020, Councilmember Peña reported on his participation in the following organization’s meeting:  IID ENERGY CONSUMERS’ ADVISORY COMMITTEE La Quinta’s representative for 2020, Councilmember Sanchez reported on his participation in the following organization’s meeting:  CALIFORNIA LEAGUE PUBLIC SAFETY TASK FORCE ADJOURNMENT There being no further business, a motion was made and seconded by Councilmembers Radi/Fitzpatrick to adjourn at 9:50 p.m. Motion passed unanimously. Respectfully submitted, MONIKA RADEVA, City Clerk City of La Quinta, California 22 CITY COUNCIL MINUTES Page 1 of 17 FEBRUARY 25, 2021 SPECIAL MEETING CITY COUNCIL SPECIAL MEETING MINUTES THURSDAY, FEBRUARY 25, 2021 CALL TO ORDER A special meeting of the La Quinta City Council was called to order at 5:00 p.m. by Mayor Evans. This meeting provided teleconferencing accessibility pursuant to Executive Orders N-25-20, N-29-20, N-33-20, N-35-20, and N-60-20 executed by the Governor of California, in response to the state of emergency relating to novel coronavirus disease 2019 (COVID-19) and enabling teleconferencing accommodations by suspending or waiving specified provisions in the Ralph M. Brown Act (Government Code § 54950 et seq.). PRESENT: Councilmembers Fitzpatrick, Peña, Radi, Sanchez, Mayor Evans ABSENT: None CITY STAFF PRESENT: City Manager McMillen, City Attorney Ihrke, City Clerk Radeva, Finance Director Romero, Design and Development Director Castro, Community Resources Director Escobedo, and Code Compliance/Animal Control Supervisor Meredith. PLEDGE OF ALLEGIANCE Mayor Evans led the audience in the Pledge of Allegiance. CONFIRMATION OF AGENDA – Confirmed PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None BUSINESS SESSION 1. INTRODUCE FOR FIRST READING AN ORDINANCE AMENDING CHAPTER 3.25 OF THE LA QUINTA MUNICIPAL CODE RELATED TO SHORT-TERM VACATION RENTALS; AND DISCUSS SHORT-TERM VACATION RENTAL (STVR) PROGRAM AD-HOC COMMITTEE RECOMMENDATIONS [ORDINANCE NO. 589] CONSENT CALEDNAR ITEM NO. 2 23 CITY COUNCIL MINUTES Page 2 of 17 FEBRUARY 25, 2021 SPECIAL MEETING   Design and Development Director Castro presented the staff report, which is on file in the Clerk’s Office. WRITTEN PUBLIC COMMENTS were received from those listed on Attachment 1 prior to the adjournment of the meeting at 11:04 p.m., including those received during the live meeting, and have been distributed to Council and incorporated into the agenda packet. PUBLIC SPEAKERS VIA TELEPHONIC ACCESSIBILITY listed in the order in which they spoke: 1. Estrada, Eddy (La Quinta) – provided a video of an incident that triggered a complaint call; supports consequences for false complaint calls. 2. Smith, John Justin – stated this is a property rights issue; complaints will die down after the COVID-19 pandemic; STVRs provide revenue to City and workers; supports two-strike rule but must also hold those making unwarranted complaints accountable; supports increasing the threshold to three-strikes for owners who have had no complaints for a year; supports notifying owners immediately when a violation is issued so they can retain the guests’ security deposit; supports requiring video cameras at all STVRs, and giving the City real-time access to the videos; supports installing noise monitors; supports STVR owners paying the small fee for extra trash pickup; stated that STVRs have increased home values in the Cove and noted other benefits STVRs provide to the City; if a cap is placed on bookings per year, supports granting bonus bookings to owners in good standing; and supports any regulations the Council enacts. 3. Lopez, Nilda – spoke via video (in Spanish – translated and read by City Clerk Radeva) – supports STVRs; she works as a cleaner for STVRs and relies on the income for her livelihood as do her co-workers. 4. Lopez, Aracely (Bakersfield, CA) – opposes the 32-bookings cap on rentals; owner of a cleaning company that employs eight people but employed more prior to the pandemic; and said she is speaking on behalf of the eight families supported by the cleaning services they provide to STVRs. 5. Storbo, Janis (La Quinta Cove) – supports phasing out to eventually banning non-hosted STVRs in residential zones; questioned why the City claims there are only a few bad owners when there is no data to support the claim; questioned why the Council decided that allowing STVRs in residential zones is more important than protecting the character of residential neighborhoods; questioned why the Council defends the rights of STVR owners, most of whom do not live in La Quinta, and dismisses the rights of residents; opposes additional regulations and enforcement as ineffectual; and opposes using Palm Springs program as a model. 6. Borders, Bill (La Quinta Cove) – resides in the Cove 5-6 months a year; issue boils down to money versus community – a house is either a 24 CITY COUNCIL MINUTES Page 3 of 17 FEBRUARY 25, 2021 SPECIAL MEETING   business or a family home; if a STVR opens near him, he will move; questioned if there were STVR supporters who did not profit off STVRs; and hoped that the new hotels coming to the City will provide the needed transient occupancy tax (TOT) revenues and allow the Council to end STVRs. 7. Zisking, Mike (Rancho Mirage) – opposes STVRs; explained that STVRs transformed his former Palm Springs neighborhood into a noisy, congested, motel row; STVRs turn neighbors into first responders, and threatens them and their children if they complain; the million dollar enforcement division in Palm Springs, touted as the solution to everything, did nothing to protect his former neighborhood – enforcement only takes place after the disturbance; long-term working class renters had to move away to find affordable housing; the Palm Springs model uses citizen tax dollars and City Staff and Police time to oversee unsupervised motels; selling his home near STVRs, which must be disclosed, was difficult; and Palm Springs is a failed model – look to Rancho Mirage, Cathedral City, Indian Wells and Palm Desert instead. 8. Hayes, Donald Lee (La Quinta, PGA West) – full time resident of PGA West for three years; purchased his second home in La Quinta after enjoying a STVR here; supports STVRs in PGA West – all buyers there knew at time of purchase STVRs were permissible; owners make as much noise as any renter; opposes the 32 bookings per year cap because it would force owners to rent for 10-15 days per booking which many families cannot afford; and supports placing a bookings per year cap only on owners who are cited. 9. Coronel, Vidal (La Quinta) – owns two STVRs and owns a STVR business with 10-12 employees and services 47 short-term and long-term rentals in La Quinta; opposes the 32 bookings per year cap because lost most of her business in Palm Springs after the limit was enacted, and she could not afford to keep her two STVR properties if there was a 32 bookings cap; stated most of the complaints are from STVRs managed by large management companies; and supports increasing the bookings per year cap. 10. Macris, Denise – STVR owner; opposes limiting or eliminating STVRs; business owners need to be held accountable for guests; supports taking into account not just residents but all La Quinta business owners and workers; stated that home buyers first discovered the City via STVRs, and property values will decrease if STVRs are banned; and supports strong regulations and enforcement rather than restricting STVRs. 11. Lambert, Jim (La Quinta, PGA West) – questioned the criteria in the proposed ordinance for “higher than average concentration;” stated HOAs cannot easily change CC&Rs due to the high threshold required; supports a Council that serves its voters and residents; and supports developing transient residential zones. 25 CITY COUNCIL MINUTES Page 4 of 17 FEBRUARY 25, 2021 SPECIAL MEETING   12. Browning, Toby (La Quinta) – initially a part-time resident, now full-time; as in engineering, believes simple designs are superior; STVR regulations are very complex and demanding on City Staff and resources and questions if the burden is worth it; noted that other Coachella Valley cities found STVRs were not worth the burden; and supports allowing STVR in tourist residential zones only. 13. Neid, Judith (La Quinta Cove) – full time resident; opposes STVRs; stated that full time residents contribute more economically by spending their entire pay check at City businesses, purchasing a wide range of items which is a greater benefit to the City’s sales tax revenue; STVR guests spend money only at restaurants and event venues; opposes the cost of the STVR program being borne by residents who don’t support it; unvetted guests are coming into neighborhoods; supports diversifying the City’s dependency on tourism; supports attracting tech workers to reside in the City but this will not happen under current conditions; supports a permanent moratorium on new unsupervised STVR permits; and supports limiting STVR permits to full-time residents only. 14. Moran, Mandi (La Quinta) – owns two STVRs in PGA West; Executive Order No. 9 regarding ambient noise has opened up the door to unreasonable serial complaint callers; opposes acceptance of anonymous complaints; supports adding a second contact person/ number for City to call when complaints are received; supports arranging for calls from the City to be identified on phones so calls are not ignored as spam; opposes caps on bookings per year as it will cause her to increase her rates and will have no effect on bad operators; and opposes complaints from residents who purchased in HOAs knowing STVRs were allowed. 15. Armendarez, Edward (La Quinta Cove) – stated that no owners can guarantee anything; when using common booking site, owners have no hand in vetting guests via AirBnB Quickbook; it’s a fallacy that banning STVRs will decrease property values because nearby STVRs have to be disclosed now; stated that residents need to hear what Council’s vision for the City is which should reflect the provisions of the existing zoning code, i.e., residential zone in the Cove prohibiting STVRs; Palm Springs is not a good model for La Quinta; and supports building more in tourist residential zones. 16. Chaine, Olivier, President of VRON-LQ – supports STVRs; read written comments from area business owners in support of STVRs and the income they provide; questioned restrictions on owning multiple STVRs, on STVRs with five or more bedrooms and caping bookings per year as it’s not clear what the City is solving for; opposes unwarranted complaints; supports a partnership among the City, STVR owners and residents; and supports fining guests, alerting owners of complaints, noise monitoring, and objective standards. 26 CITY COUNCIL MINUTES Page 5 of 17 FEBRUARY 25, 2021 SPECIAL MEETING   17. Duitruk, Anna – supports VRON-LQ President’s comments above; stated there is no party problem in the City, only about 3% of STVR operators are bad so need to eradicate them; opposes a cap on bookings per year, it does not address density issue or bad operators but will force STVR owners to rent to long term tenants who are not regulated and may be no better than short-term renters; and ordinance regulations are too numerous and too drastic and restricts La Quinta’s main business of tourism. 18. Vano, Laura (La Quinta) – opposes STVRs; disappointed that Council listened to four out of every five speakers at the last meeting objecting to STVRs then spent five hours discussing how to adjust the program; read from a report prepared by a PGA West resident previously given to the City stating that 66% of residents object to any STVRs in La Quinta; opposes urging residents to use the City’s complaint line, then agreeing that residents are making unwarranted complaints; opposes setting up unmanned businesses, conscripting residents as STVR monitors, then repeatedly admonishing residents for not doing so to City standards; opposes Council using residents to protect investors’ businesses; opposes the make-up of the City’s STVR Program Ad-Hoc Committee with nine members who benefit from STVRs and three who do not; supports a density cap and N4N recommendations; and supports a permanent moratorium on unmanned businesses in residential communities. 19. Gotshalk, Arlene (Cove) – full time resident; opposes STVRs; concerned that residents’ questions are never answered by Council; concerned that Council belittles residents’ complaints and read excerpts of Council’s discussion during a previous meeting; explained how each STVR affects surrounding residents; stated that 24 California cities have banned STVRs because they are corrosive to neighborhoods; density of bed and breakfast businesses is more regulated than STVR, i.e., two persons per room, and one operator per 300 foot radius; residents are not intolerant about the world, only about the sanctioning of unsupervised businesses in residential communities; and supports a permanent moratorium on new STVR business licenses in residential areas. 20. Wolff, Kay (La Quinta Cove) – opposes STVRs; asked why the City bothers with STVRs which are consuming 40% of City Staff’s time and resources and costing $1.4 million; questioned why the City hired an additional Code Compliance Officer for $81,000, hired a security company for $42,000, hired a firm to track unlicensed STVRs for $49,000, hired another vendor for $70,000, has internal service charges of $117,000 and uses 30% of the City Attorney’s time, all related to STVRs; stated that STVR revenue is not needed by the City; stated that STVRs are detrimental to existing and planned hotels; STVRs are hurting low and middle class families and retirees by pricing them out of the housing market and such home buyers will not want to live in transient 27 CITY COUNCIL MINUTES Page 6 of 17 FEBRUARY 25, 2021 SPECIAL MEETING   neighborhoods anyway; Council’s plan to increase STVR permit fees to cover the $1.4 million in City costs of the program is a never-ending solution; and asked what is in the STVR program for residents, is the City government now one that is by STVRs and for STVRs. 21. Dinnel, David (La Quinta / Los Angeles) – owns a five-bedroom STVR; stated that many do not understand the measures responsible owners take to screen and monitor guests; there is no right for zero noise at one’s home; stated he has noise monitors, security cameras, and a contract for trash which he will remove when his 32-bookings cap is reached each year; noted that many Cove residents park on the street regularly; supports removing the 3%-7% bad operators, and recognizing that good operators may occasionally have guests that get out-of-line; and stated that long-term renters result in long-term problems. 22. Little, Stephen – supports well-managed STVRs because they are good for the economy and local businesses; born in La Quinta but does not currently live in La Quinta; owns several service-based businesses employing over 130 people in the Valley; believes owners have the right to decide how they want to use their property; and supports considering the negative implications a ban would have on service-based businesses in the Valley. 23. Leach, LaRee (La Quinta) – resident and business owner of A&L Landscape Maintenance; stated her neighbors generate more noise than STVR guest around her; opposes caps on bookings per year because, like limits put on businesses due to COVID-19, limiting bookings will put STVR owners out of business; and need recourse and fines for false complaints. 24. Murray, Mary – real estate agent and owner of a STVR; tightly manages her property(s); supports removing property managers when a property gets multiple complaints, not a strike against the property; opposes caps on annual bookings because it penalizes good operators; opposes accepting anonymous complaint calls because believes it will reduce the number of false calls wasting City resources; stated that if she is able to operate her STVR without issue, others can also do so, and if not, those managing it should be changed; believes real estate values increase in areas where STVRs are permitted; and supports collecting accurate data for decision-making. 25. Sandstrom, Michael – stayed in a STVR, and just make an offer to purchase a house in PGA West; intends to rent it via the STVR property until moves in after retirement in a few years; may have to cancel the purchase if the moratorium is not lifted because counted on STVR income to cover the mortgage; and believes he and other STVR guest contribute to the community and will do so full time after retirement. 26. Dobrowolski, Lenard (La Quinta Cove) – owns two homes, one is a STVR; stated neighbors are intimidating others with their Neighborhoods for Neighbors signs; the N4N group is now beginning to complain about long- 28 CITY COUNCIL MINUTES Page 7 of 17 FEBRUARY 25, 2021 SPECIAL MEETING   term renters now – what next?; the Cove was dangerous 15 years ago with many vacant homes, now thriving due in part to STVRs; STVR revenue has filled City coffers; the Cove is growing – no longer dirt roads and quiet nights; and there are people and businesses working from homes all over the Cove. 27. Clark, Ajay – age 35, owns a second home in La Quinta which he rents as a STVR and hopes to retire in; new generation discovering La Quinta after being a STVR guest; Council must look to the future and not enact reactionary amendments addressing temporary problems during the pandemic; limiting bookings per year will limit tourism and business – it is anti-capitalism and anti-American; and supports increased fines if necessary. 28. McGuire, Rod (La Quinta Cove) – full time resident who chose to live in the Cove for its quaintness and quiet; stated that multiple studies conclude that STVRs are corrosive to neighborhoods; opposes Council considering investors interests in tandem to that of resident voters; non- residents are not entitled to representation; disastrous to follow the Palm Springs failed model; other Valley cities have listened to their constituents; supports a permanent moratorium on non-hosted STVRs; those who bought a second home they can’t afford without STVRs is not his problem, they took a business risk; and service workers are hired by full time residents every day, all year. MAYOR EVANS RECESSED THE CITY COUNCIL MEETING AT 7:28 P.M. FOR A SHORT BREAK MAYOR EVANS RECONVENED THE SPECIAL CITY COUNCIL MEETING AT 7:46 P.M. WITH ALL MEMBERS PRESENT Council discussed their response to residents’ concerns such as incorporating N4N comments and enacting the moratorium; STVRs is a complex issue with rapid growth and impacts that could not have been predicted; goal is for residents to enjoy their homes without being conscripted as STVR police; no one on the Council has a vested interest or a conflict of interest regarding STVRs as confirmed by the City Attorney at the last meeting; all campaign contributions to Councilmembers are a public record anyone can examine; the 2004 Council listened to the community by initiating regulations on STVRs, and current Council continues to listen; the STVR matter is neither a constitutional nor a property rights issue; the complexity of the issues requires Council to look to emerging practices rather than best practices; Council is addressing the complex multiple factors and tonight focusing on items that most agree on, but other matters require further discussion and input; City is doing its homework which includes examining other cities’ provisions; Council tries to represent all La Quinta residents but on this issue, any action will result in unhappy people; 29 CITY COUNCIL MINUTES Page 8 of 17 FEBRUARY 25, 2021 SPECIAL MEETING   and home occupancy permits of which there are about 500 in the City, are not comparable to STVRs primarily due to hours of operation and that such businesses are highly regulated. Council and Code Compliance/Animal Control Supervisor Meredith discussed the City’s tracking of complaints and violations; 33% of STVR properties have received at least one complaint in 2020, meaning 67% are good operators; noted the number of citations issued in 2020; explained the noise monitoring pilot program set to begin in March 2021 and the security company pilot program has been underway; explained the penalties for operating without a permit; Code Compliance tracking of the 43 problem properties it has identified to determine if their renewals should be denied; plans to begin tracking permanent residents who occasionally rent versus non-hosted second homes or investment homes that are offered for rent year round; complaints from tourist commercial zones remain very low; the 1,195 complaints initiating investigations received over the past six months, spiking during pandemic stay- at-home order periods and were primarily noise and parking disturbances; weeding out and fining the 165 unpermitted operators; working with security vendors on the use of text messages and one 800 number so owners can easily recognize calls they need to answer; very few anonymous complaints are received, but operators may be assuming there are many because the City won’t release complainers’ ID. Council discussed the importance of having different permit types for tracking purposes so that problem areas can be targeted, i.e., homeshares, primary residences rented occasionally, and properties used solely for non-hosted STVRs; the revelation that most STVRs bookings per year are below the cap of 32 under consideration, and that most – 96% of owners have only one property, meaning proposals to limit bookings or permits per owner would not address the problems; and the legality and practicality of fining guests for disturbances instead of permitholders. Council directed staff to develop a form contract between guests and operators acknowledging and agreeing to the City’s STVR regulations; to allow operators the option to require and collect a security deposit from guests; and to make the following revisions to the proposed ordinance:  Delete Section 3.25.070 paragraph A.1. relating to a cap on bookings per year;  Add definitions of permit types as discussed;  Amend Section 3.25.090 (D) from three-strikes to a two-strikes policy;  Add to Section 3.25.090 (D) definitions of “minor” and “material or major” violations; and 30 CITY COUNCIL MINUTES Page 9 of 17 FEBRUARY 25, 2021 SPECIAL MEETING    Add to Section 3.25.090 (D) language similar to that in Executive Order No. 9 granting City Code Enforcement personnel discretion in classifying violations as “minor” or “material/major”. MOTION – A motion was made and seconded by Councilmembers Peña/Radi to continue Business Item No. 1 to the regularly scheduled Council meeting of March 2, 2021. Motion passed unanimously. PUBLIC HEARINGS 1. ADOPT RESOLUTION TO AMEND THE CITY’S SHORT-TERM VACATION RENTAL PROGRAM PERMIT FEES [RESOLUTION NO. 2021-003] City Clerk Radeva introduced City Consultant Terry Madsen, President of ClearSource Financial Consulting who presented the staff report via Zoom, which is on file in the Clerk’s Office. WRITTEN PUBLIC COMMENTS – None MAYOR EVANS DECLARED THE PUBLIC HEARING OPEN AT 10:18 P.M. PUBLIC SPEAKERS – None Council discussed the reasoning for independent fee studies and the legal inability of a City to profit from fees it imposes – only cost recovery is permitted under State law; and continuing this public hearing so that the adoption of the resolution amending STVR fees coincides with the adoption of amendments to the STVR ordinance which is expected to be on the March 2, 2021 Council agenda. MOTION – A motion was made and seconded by Councilmembers Fitzpatrick/Radi to continue the Public Hearing to March 2, 2021 regular Council meeting. Motion passed unanimously. MAYOR’S AND COUNCIL MEMBERS’ ITEMS Councilmember Peña and Mayor Evans reported that they attended the art event at the La Quinta Museum. Mayor Pro Tem Radi stated that it is self-evident that non-hosted STVRs (i.e., general STVRs a.k.a. second home/investment properties rented under the STVR program) are at capacity, even over capacity, and he supports extending the moratorium on new non-hosted general STVRs indefinitely which will, by 31 CITY COUNCIL MINUTES Page 10 of 17 FEBRUARY 25, 2021 SPECIAL MEETING   attrition, reduce the density over time. He expressed preference for this action over a 300-foot radius limit due to the inability to fairly select which operator in any 300-foot radius would get to keep their permit. Mr. Radi stated that freezing non-hosted general STVR permits will stimulate the development of tourist commercial properties suitable for purchase by those wishing to invest in and operate non-hosted general STVRs. Councilmember Fitzpatrick concurred with Councilmember Radi on discontinuing new non-hosted general STVR permits in residential zones. She noted that the City has a desperate need for affordable housing and non-hosted general STVRs are contributing to the decline of housing availability and affordability. Mrs. Fitzpatrick stated that it will be important to the future economic growth of the City to give preference to developments that include tourist commercial properties. Mayor Evans requested an explanation from the City Manager and City Attorney regarding the use of Development Agreements to address STVR issues in future developments which they provided. Mayor Evans express concern over the City’s financial health if a permanent moratorium on non-hosted general STVRs is enacted, and if attrition occurs, but the number of tourist commercial properties does not increase to compensate. She stated that the current number of non-hosted general STVRs is acceptable but the bad operators must be eliminated. Councilmember Peña agreed with Mayor Evans and explained his concern that there will be unknown demands on City revenues in the future. Mayor Pro Tem Radi said that any revenue loss from a reduced number of non- hosted general STVRs would not be immediate, but over a five-year transition period and that as bad operators are eliminated, City costs for the program will decrease allowing the retention of more TOT revenue currently used for enforcement. He noted that developers will not build tourist commercial properties while every house in the City can operate as a STVR because it would not be financially viable. Mayor Evans noted that the community must embrace new tourist commercial housing for this to be workable and predicted complaints from neighbors in any area tourist commercial was proposed. Councilmember Sanchez stated his support for new tourist commercial developments, but opposed a permanent moratorium on new non-hosted general STVRs for two reasons: first, the changes Council is about to make to the ordinance and the fees should be given time to work, and second, STVRs 32 CITY COUNCIL MINUTES Page 11 of 17 FEBRUARY 25, 2021 SPECIAL MEETING   have increased home values and will soon reach a point where STVR investors will be priced out of the market – the market will correct itself. Mayor Evans expressed support for eventually lifting the moratorium on homeshares and STVRs of primary residences and extending “until further notice” the moratorium on new non-hosted general STVRs, as the moratorium has provided some relief to residents and will assist PGA West. She prefers not to use the term “indefinite” moratorium because it may not give the City flexibility should it have future need for STVR revenue. She stated support for allowing STVR owners in good standing to renew their permits. Councilmember Peña noted that as always, if a better solution is found, Council’s actions can be amended. Councilmember Sanchez reminded those in HOA communities that were relying on the City to resolve their issues that they may regret inviting government into their business and property issues. Council directed Staff to prepare a separate ordinance that prohibits the issuance of new non-hosted general STVR permits. ADJOURNMENT There being no further business, a motion was made and seconded by Councilmembers Peña/Sanchez to adjourn at 11:04 p.m. Motion passed unanimously. Respectfully submitted, MONIKA RADEVA, City Clerk City of La Quinta, California 33 CITY COUNCIL MINUTES Page 12 of 17 FEBRUARY 25, 2021 SPECIAL MEETING   ATTACHMENT 1 to CITY COUNCIL SPECIAL MEETING MINUTES THURSDAY, FEBRUARY 25, 2021 WRITTEN PUBLIC COMMENTS were received from the citizens below listed in alphabetical order, prior to the adjournment of the meeting at 11:04 p.m., including those received during the live meeting, and have been distributed to Council and incorporated into the agenda packet: 1. Aldous, Adrian – owns a STVR; opposes the 32 rentals per year cap; supports the two-strike regulation to eliminate “bad owners”. 2. Aleman, Michelle (La Quinta) – part-time STVR host; supports limiting owners with citations to 32 rentals per year; supports high fines for disturbances; supports fining guests; supports better monitoring of repeat offenders. 3. [no last name], Ally – supports minimum stays of one week. 4. Almassy, Mary (La Quinta) – supports extending the moratorium; supports a 3% cap on STVRs in residential neighborhoods; supports a gradual increase of minimum stays over three years from 3 nights to 28 nights. 5. Anonymous – STVR owner; opposes the 32 bookings per year cap. 6. Anonymous (La Quinta) – STVR owner; supports limiting stays to five or seven nights. 7. Armendarez, Edward (La Quinta) – opposes STVRs; supports a ban in residential neighborhoods. 8. Bakall, Ergun (PGA West) – opposes STVRs; supports minimum stays of 30 days. 9. Beebe, Bob (La Quinta) – opposes STVRs. 10. Beebe, Glenda (La Quinta) – opposes STVRs. 11. Bendokas, Tim – supports STVRs; opposes the 32 bookings per year cap. 12. Beron, Bette – supports the most stringent regulations on STVRs. 13. Bevans, Brian (PGA West) – supports the N4N recommendations at a minimum. 14. Bilsborough, Deanne (Seattle) – own a second home in La Quinta available for STVR; spends two months a year in La Quinta; supports STVRs. 15. Blanchard, Molly – opposes the 32 bookings per year cap. 16. Bloch, Kim – opposes the 32 bookings per year cap; supports weeding out violators. 17. Bloch, Richard – opposes the 32 bookings per year cap; supports penalizing violators, giving that time to work, and reevaluate. 34 CITY COUNCIL MINUTES Page 13 of 17 FEBRUARY 25, 2021 SPECIAL MEETING   18. Bloesser, Rex – supports downscaling, or prohibiting STVRs in residential neighborhoods; supports only allowing STVRs in areas specifically zoned for them. 19. Brown, Derrick – opposes STVRs. 20. Browning, Toby (Cove) – full time resident; opposes STVRs in R1 zones; opposes using City resources to enforce complex STVR regulations; supports permitting STVR in HOAs and areas zoned for tourist communities. 21. Buce, Robert (Pacific Palisades) – owns a STVR in La Quinta; opposes caps on the number of bookings per year; opposes restrictions on rentals with five or more bedrooms. 22. Buller, Jann (Palm Desert) – opposes STVRs in R1 neighborhoods. 23. Butler, Bill (PGA West) – opposes STVRs; supports N4N recommendations. 24. Butler, Terri (PGA West) – opposes STVRs. 25. Case, Kent (La Quinta) – opposes STVRs; at a minimum, need caps on rentals per year and increased minimum stays. 26. Chaine, Olivier – supports STVRs. 27. Church, David – opposes STVRs; supports ensuring that TOT is collected from all rentals; supports attracting hotels, resorts and businesses to La Quinta. 28. Clark, Ajay – supports STVRs; opposes a cap on bookings per year. 29. Condon, Cathy – opposes STVRs. 30. Cutchin, Marcia (La Quinta) – opposes STVRs; opposes expecting residents to be STVR watchdogs; supports Ad Hoc Committee’s, Coachella Valley Economic Partnership’s and N4N recommendations; opposes protecting outside investors’ interests over residents; opposes following Palm Springs failed model. 31. D’Altorio, Amalya – supports STVRs. 32. D’Altorio, Darren – supports STVRs. 33. David, Christine – supports STVRs; supports current regulations. 34. David, Michael – supports STVRs. 35. Eckman, Chuck (PGA West) – opposes STVRs; supports phasing all STVRs out. 36. Edwards, Steffanie – supports STVRs. 37. Elsenbach, Chris – owns a STVR; supports current regulations on STVRs. 38. Falduti, RaeAnne (Santee, CA) – supports STVRs; opposes $1,000 annual permits fee; opposes limiting the number of bookings per year; opposes limiting the number of STVR permits per owner; supports holding guests accountable for violations; opposes accepting anonymous complaints. 39. Farris, Sue – property manager and rental agent for STVRs; supports STVRs by responsible owners. 40. Gleason, David & Gonzalez, Erika (PGA West) – oppose STVRs; supports phasing out all STVRs. 35 CITY COUNCIL MINUTES Page 14 of 17 FEBRUARY 25, 2021 SPECIAL MEETING   41. Gotshalk, Arlene (Cove) – opposes STVRs; supports a permanent moratorium on new permits. 42. Granger, Cary (Cove) – resident in the Cove & owner of STVR; supports STVRs. 43. Granger, Olympia (Cove) – owns a STVR; supports STVRs. 44. Grant, Tom (PGA West) – occupies and rents his home for STVRs; supports STVRs; supports targeting violators. 45. Gravina, Robert (La Quinta) – occupies and rents his home for STVRs; supports punishing only violators. 46. Gray, Ricardo (La Quinta) – supports eliminating STVRs in R1 and R2 zones. 47. Griffey, Jay (La Quinta) – opposes STVRs; supports N4N recommendations. 48. Gulbranson, Corey – supports STVRs; opposes new regulations. 49. Hal, KJ (Cove) – rents two rooms as STVRs during events; supports STVRs. 50. Handy, Sarah – owns a STVR; supports STVRs. 51. Hardin, William (PGA West) – opposes STVRs; supports a minimum of 30-day stays. 52. Heredia, Joan – supports additional STVR restrictions. 53. Herpich, Debi (PGA West) – opposes STVRs; supports strict limits. 54. Herpich, Rick (PGA West) – opposes STVRs. 55. Hillebrand, Jeff (La Quinta) – opposes STVRs. 56. Hillebrand, Beth (La Quinta) – opposes STVRs. 57. Hulinger, Jeff (La Quinta) – full time resident; opposes STVRs; supports restrictions. 58. Hylton, Edie (Cove) – opposes STVRs in R1 neighborhoods; opposes the impact STVRs have on housing inventory for new residents. 59. Ingram, Roberta Jackson – supports STVRs; opposes limiting the number of bookings per year. 60. Jakobovits, Matthew – supports STVRs; opposes limiting the number of bookings per year; supports a minimum of 3-4 night stays. 61. Jaramillo, Salvador – supports stricter regulations on STVRs. 62. Justis, Larry (PGA West) – opposes STVRs; supports N4N recommendations and additional stricter regulations. 63. Justis, Nancy (PGA West) – opposes STVRs. 64. Kahn, Suzanne (La Quinta) – opposes STVRs; supports N4N recommendations. 65. Kaiser, Jeffrey (PGA West) - opposes STVRs; supports N4N recommendations. 66. Kane, Ellen (Palm Desert) – opposes STVRs. 67. Kiddoo, Steve (La Quinta) - opposes STVRs; supports N4N recommendations. 36 CITY COUNCIL MINUTES Page 15 of 17 FEBRUARY 25, 2021 SPECIAL MEETING   68. Knight, Jahanna (La Quinta) – opposes STVRs; supports a minimum of six-night stays. 69. Lai, Zhenke – owns a STVR; opposes a cap on bookings per year; supports eliminating irresponsible owners. 70. Lambert, Barbara (La Quinta) – opposes STVRs. 71. Lambert Jim (La Quinta) – opposes STVRs. 72. Langson, Sandy (La Quinta) – opposes STVRs. 73. Lombardelli, Jeanne (La Quinta) – opposes STVRs; long-term renter unable to find another affordable house to rent for her family due to STVRs. 74. MacRae, James (PGA West) – opposes STVRs; will move if not banned. 75. Martin, Betty Ann (La Quinta) – opposes STVRs. 76. Martin, Jim (La Quinta) – opposes STVRs; sold house in PGA West and moved to an HOA that prohibits STVRs due to the problems. 77. Martin, John (La Quinta) – opposes STVRs. 78. McCowan, Mary Jo – supports N4N recommendations. 79. McGrath, Sean (La Quinta) – supports STVRs; opposes the moratorium; supports some of the new regulations proposed. 80. McGuire, Rod (Cove) – full time resident; opposes STVRs; opposes protecting outside investors’ interests; opposes following Palm Springs’ failed model; supports a permanent moratorium on new permits. 81. Merchant, Kenneth (La Quinta) – opposes STVRs; complaints are underreported, not overstated; supports a permanent ban on new permits at a minimum. 82. Mikulenka, Christopher – provided several recommendations to modify the STVR program. 83. Miller, Celia – owns a second home in PGA West which she does not rent; opposes STVRs. 84. Montgomery, Douglas – owns a STVR; supports STVRs. 85. Murray, Mary – supports STVRs; opposes restrictions. 86. Murray, Matt – supports STVRs; opposes restrictions. 87. Nelson, Andrea – owns STVR; opposes additional restrictions; supports fining guests; opposes strikes against owners; opposes N4N urging neighbors to call in complaints “early and often”. 88. Nelson, Matthew (La Quinta) – full time resident; opposes STVRs. 89. Nimis, Donald (La Quinta) – opposes STVRs; supports phasing out the program. 90. Parker, Grant – supports STVRs; opposes cap on bookings per year; provided several recommendations. 91. Parker, Greg – supports STVRs; opposes cap on bookings per year; provided several recommendations. 92. Pinkstaff, Monique – supports STVRs; opposes caps on bookings per year; opposes accepting anonymous complaint calls; supports fining unfounded complaints. 37 CITY COUNCIL MINUTES Page 16 of 17 FEBRUARY 25, 2021 SPECIAL MEETING   93. Ploetz, Mary & Savageau, Joe – supports the N4N recommendations. 94. Poynter, Bruce – opposes STVRs in R1 zones. 95. Prokay, Christel (Palm Desert) – opposes STVRs due to the health problems they cause. 96. Quill, Paul (La Quinta) – opposes STVRs in R1 neighborhoods; supports N4N recommendations. 97. Rolston, Mary (PGA West) – opposes STVRs. 98. Rosen, Scott (PGA West) – opposes STVRs; supports N4N recommendations. 99. Rosiak, Agnes – supports STVRs. 100. Roy, Angele (PGA West) – permanent resident; opposes STVR. 101. Roy, Gilles (PGA West) – opposes STVRs. 102. Runnells, Carol – owns a STVR; opposes caps on bookings per year. 103. Runnells, Richard – owns a STVR; opposes caps on bookings per year. 104. Savery, Barbara (PGA West) – opposes STVRs; supports phasing out program. 105. Segal, Marvin & Stefanie (La Quinta) – opposes STVRs. 106. Shapiro, Jonathan & Chester, Annette – support N4N recommendation and provided additional suggestions. 107. Shaver, Todd – owns STVR; supports STVRs and better regulation. 108. Sheth, Nick (La Quinta) – owns a STVR in PGA West; lives in another home in LQ which he owns; supports STVRs. 109. Siegel, Neale (La Quinta) – opposes all STVRs; supports a ban. 110. Smith, Jeff (La Quinta) – opposes STVRs; supports a phase-out of all non- hosted STVRs in R1 and R2 zones. 111. Smith, Sloane - owns a STVR in PGA West; opposes accepting anonymous complaints; opposes caps on bookings per year. 112. Smith, Susie – owns a STVR; opposes any new regulations. 113. Storbo, Richard (La Quinta) – opposes STVRs; offered amendments to improve proposed ordinance. 114. Sweeney, Michael – PGA West STVR owner; supports STVRs. 115. Taylor, Megan – STVR owner; opposes caps on bookings per year. 116. Thompson, Craig (Cove) – opposes STVRs; supports a ban on new permits. 117. Thompson, Marie (Cove) – opposes STVRs; supports a permanent moratorium on new permits in R1 zones; supports a 300-foot radius density on existing permits. 118. Torrey, Dave (Santa Barbara, CA) – owns a STVR in Legacy Villas; supports STVRs. 119. Valutas, Charles – owns a STVR but not a permanent resident; supports a minimum stay of seven nights but not a ten-night minimum. 120. Vano, Laura (La Quinta) – opposes STVRs; supports strict regulations; supports a ban on STVRs in residential neighborhoods. 38 CITY COUNCIL MINUTES Page 17 of 17 FEBRUARY 25, 2021 SPECIAL MEETING   121. Vershure, Maureen (La Quinta) – opposes STVRs; supports eliminating STVRs in neighborhoods. 122. Vershure, Richard (La Quinta) – opposes STVRs; supports eliminating STVRs in neighborhoods. 123. VRON-LQ, Olivier Chaine, President – provided a draft STVR ordinance. 124. Wade, Craig (La Quinta) – opposes STVRs; supports a complete ban. 125. Weiss, Steve (PGA West) – provided several recommendations/ compromises to resolve the STVR disputes. 126. Wolff, Kay (Cove) – opposes STVRs; provided a list of items missing from the proposed ordinance. 127. Wulff, William – owns a STVR; opposes a cap on bookings per year. 39 40 CITY COUNCIL MINUTES Page 1 of 12 January 27, 2021 SPECIAL MEETING   CITY COUNCIL SPECIAL MEETING MINUTES WEDNESDAY, JANUARY 27, 2021 CALL TO ORDER A special meeting of the La Quinta City Council was called to order at 5:00 p.m. by Mayor Evans. This meeting provided teleconferencing accessibility pursuant to Executive Orders N-25-20, N-29-20, N-33-20, N-35-20, and N-60-20 executed by the Governor of California, and the directives under the “Regional Stay At Home Order” from the California Department of Public Health, in response to the state of emergency relating to novel coronavirus disease 2019 (COVID-19) and enabling teleconferencing accommodations by suspending or waiving specified provisions in the Ralph M. Brown Act (Government Code § 54950 et seq.). PRESENT: Councilmembers Fitzpatrick, Peña, Radi, Sanchez, Mayor Evans ABSENT: None CITY STAFF PRESENT: City Manager McMillen, City Attorney Ihrke, Deputy City Clerk Romane, Design and Development Director Castro, Hub Manager Sanchez, Community Resources Director Escobedo, and Code Compliance/Animal Control Supervisor Meredith. PLEDGE OF ALLEGIANCE City Attorney Ihrke led the audience in the Pledge of Allegiance. CONFIRMATION OF AGENDA – Confirmed PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None STUDY SESSION 1. DISCUSS SHORT-TERM VACATION RENTAL (STVR) PROGRAM AD-HOC COMMITTEE (Committee) RECOMMENDATIONS Design and Development Director Castro, City Attorney Ihrke, Hub Manager Sanchez, Community Resources Director Escobedo, and Code CONSENT CALENDAR ITEM NO. 3 41 CITY COUNCIL MINUTES Page 2 of 12 January 27, 2021 SPECIAL MEETING   Compliance/Animal Control Supervisor Meredith presented the staff report, which is on file in the Clerk’s Office. City Manager McMillen said Staff is reviewing and comparing the lists of unpermitted STVR properties identified by the City’s vendors to ensure accuracy and confirm violations; compliance measures will be initiated in phases; pursuant to the recent code amendments related to STVRs, which went into effect on January 15, 2021, operating STVRs illegally is subject to a $5,000 dollar fine and a permanent ban from the STVR program. Council discussed homeshare-type STVR activity which has required little to no Code Compliance Staff efforts because the property owner is present on- site during the renter(s) stay; the City’s options to enforce compliance from unpermitted STVR operators; and homeowners’ associations (HOAs) ability to adopt regulations as part of their covenants, conditions and restrictions (CC&Rs) imposing rules and mitigation measures for STVR activities to ensure compliance, fines for unpermitted activities by its residents, as well as imposing a fee to operate as a STVR. Council commended Staff for the detailed report presented tonight. Council discussed the ability to impose a limit on the number of STVRs per owner to only one and the related verification process for the City; such limitation would also apply to the members of a business entity and would not allow the same person to own a STVR as a private owner and/or as a member of a business entity; ability to impose a requirement that a STVR property owner must reside within a certain geographic area such as La Quinta, the Coachella Valley, or Riverside County, etc.; current statistics show the number of one-night stays is minimal, thus imposing a requirement for a minimal two- night stay may not reduce STVR activity; limiting the allowed number of bookings to 32 per permit/per year would be more effective in reducing STVR activity; a special event permit would be needed if occupancy exceeds the permit limit after 10 p.m; mismanagement of HOAs regarding STVRs and the responsibility of HOAs to enforce its own CC&R regulations regarding STVRs rather than relying on the City to do so, and the City’s willingness to assist HOA Boards to develop regulations to achieve self-governance; STVRs over four bedrooms are examined to determine if there are bedroom conversions and if those conversions meet Building Code standards; need for consistency in permitting large STVRs that due to the number of guests, may require an Event Permit; and permitting STVRs only for the number of bedrooms identified in the initial home building permit and subsequent expansions/ additions, including Accessory Dwelling Units, would not be included or considered for STVR permits. 42 CITY COUNCIL MINUTES Page 3 of 12 January 27, 2021 SPECIAL MEETING   MAYOR EVANS CALLED FOR A BRIEF RECESS AT 6:17 P.M. MAYOR EVANS RECONVENED THE CITY COUNCIL MEETING AT 6:22 P.M. WITH ALL MEMBERS PRESENT WRITTEN PUBLIC COMMENTS were received from those listed on Attachment 1 prior to the adjournment of the meeting at 12:01 a.m., including those received during the live meeting, and have been distributed to Council and incorporated into the agenda packet. PUBLIC SPEAKERS VIA TELEPHONIC ACCESSIBILITY listed in the order in which they spoke: 1. Waska, Robert (La Quinta, PGA West) – supports minimum one-week rentals; asks that the City assist PGA West with measures to control STVRs and improving their enforcement. 2. Zenz, Joanne (La Quinta, PGA West) - supports limiting STVRs due to its disruption to neighbors and diminished neighborhood quality; appreciates the City assisting PGA West, a HOA that the City isn’t obligated to assist with STVR matters. 3. Church, Gene (La Quinta Cove) – opposes STVRs; supports Committee’s recommendations; supports home-shares; and City makes more money from full-time residents than STVRs. 4. Mikulenka, Chris (North La Quinta) – questioned why citations were not issued during the recent lock-down period; 400 STVR permits exist for just 23 streets in North La Quinta and the Cove; and supports limiting permits within a 300’ radius. 5. Lambert, Jim (La Quinta, PGA West) – City’s Master Plan and Zoning Plan has no allowance for STVRs in residential zones; commended on the Committee’s recommendation; need accounting from City on its cost to administer the STVR program; any Councilmember involved in the business of real estate should recuse themselves on STVR matters. 6. Shoffstall, Don (La Quinta, PGA West) – poor audio connection – supports recommendations of N4N group such as cap on number of permits, minimum stays and extending the moratorium. 7. Hayes, Deonn E. (La Quinta) - poor audio connection - opposes a complete ban on STVRs; program must be fair and equitable to all. MAYOR EVANS CALLED FOR A BRIEF RECESS AT 7:10 P.M. TO GIVE CITY IT STAFF TIME TO IMPROVE THE AUDIO CONNECTION MAYOR EVANS RECONVENED THE CITY COUNCIL MEETING AT 7:20 P.M. WITH ALL MEMBERS PRESENT 43 CITY COUNCIL MINUTES Page 4 of 12 January 27, 2021 SPECIAL MEETING   8. Estrada, Eddy (La Quinta, PGA West) – coalition has $200,000 to donate to a worthy organization; and some PGA West HOA Boards are under recall; support making incremental changes so improvements can be identified. 9. Wolff, Kay (La Quinta Cove) – go slow to get it right; extend moratorium; need time to reach consensus; all was well with residents and City revenues before STVRs with snow birds and long-term rentals; and Council is being pressured by corporations and out-of-town investors. 10. Hayes, Donald (La Quinta, PGA West) – support STVRs; during pandemic recovery, City should increase visitors; eliminating STVRs is unfair to low- and moderate-income families; and N4N doesn’t speak for all residents. 11. Storbo, Dick (La Quinta Cove) – supports tourism but not at the expense of residential neighborhoods; and provided four recommendations including a phase-out of STVRs. 12. Zhang, Eric (Fullerton, CA, an STVR Property Manager in La Quinta) – has asked neighbors around his STVR to contact him directly if problems arise but they don’t, they continually call City Code Enforcement; and if only long-term rental are permitted, neighbors’ complaints would be handled by the Police. 13. Baak, Sandy (La Quinta, PGA West) – support the PGA West HOA Board; house next door is run like a motel; and supports enhanced enforcement of STVR. 14. Chaine, Olivier, President of VRON-LQ, a STVR advocacy group – supports responsible STVR ordinances; and submitted a document from VRON-LQ members recommending solutions with consistent rules and enforcement. 15. Smith, Jeff (La Quinta Cove) – STVR problems will not be solved with regulations; and supports no new permits and a phase-out of STVR program. 16. Owens, Steven (La Quinta Cove) – operates STVRs in La Quinta and northern California without problems or complaints from neighbors; and supports the STVR program. 17. Osborn, Terry (La Quinta Cove) – STVR has contributed to La Quinta property values and neighborhood revival; the current recommendations make sense; he rents his house via the STVR program and suggests neighbors call owners directly if there are problems; and believes STVRs will drop off once the pandemic is over. 18. Hylton, Edie (La Quinta Cove) – had a STVR permit but discontinued it due to affects on their house and neighbors; supports phasing out STVRs starting with a freeze on new permits; City revenue will come from hotels reopening, new hotels and new transient occupancy zones; voters 44 CITY COUNCIL MINUTES Page 5 of 12 January 27, 2021 SPECIAL MEETING   supported Measure G for an economically healthy City; and supports housing inventory for local workers and middle-income families. 19. Armendarez, Edward (La Quinta Cove) – STVR does not belong in residential neighbors. 20. Gotshalk, Arlene (La Quinta Cove) – opposes STVR; made recommendations to accommodate visitors in other ways; and highlighted legal cases re STVR. 21. McQuiggan, Timothy (La Quinta PGA West) – provided the reason for the recall of two PGA West HOA Boards; City is not treating the root cause of residents’ problems; more regulations are not the solutions; and STVRs is not in the long-term interest of a community. --- Young, Robert – withdrew his request to speak 22. Breeswine, Carrie (La Quinta, PGA West) – does not support a total ban on STVR; expects neighbors to respect her by controlling their STVRs; supports minimum stay requirements; and does not support multiple warnings or leeway to unpermitted STVRs. 23. Nasso, Austin - STVR owner of four-bedroom property; explained his oversight of each rental; City should not ban STVR now during the pandemic; and focus on few bad actors and re-evaluate after the pandemic. 24. Quill, Paul (La Quinta Cove) – generally opposes STVRs but does support the N4N recommendations; and explained the means for voters to get an anti-STVR Measure on the ballot. 25. Tamm, Jelena (La Quinta / Newport Beach) - owner of California Vacation Villas & a La Quinta property owner; asked if the list of violators of STVR rules will be made public; support lifting the moratorium; Code Compliance must contact the local manager of any STVR receiving a complaint and given 30 minutes to resolve the problem; and fines related to guest behavior should be issued to the guest, not the owner. 26. Parnell, Karen (La Quinta PGA West) – opposes extending the moratorium because the STVR bubble is over with the subsidence of the pandemic; opposes permitting day guests that exceed the maximum number of overnight guests; supports hiring contractors rather than increasing Code Compliance staff; and agrees that PGA West has mismanaged STVRs. 27. Williams, Linda (La Quinta) – supports phasing-out STVR in residential zones and increasing housing in transient occupancy zones; 70% of the City’s population is families and investor purchases of properties for STVR is decreasing housing opportunities for permanent residents; and opposes the issuance of new permits. 28. Gray, Richard (North La Quinta) – supports placing a STVR initiative on the ballot for residents to decide; STVR provide no benefit or compensation to residents; enforcement is not successful and cost for it will continue to rise; STVR is unfair competition to hotels which have 45 CITY COUNCIL MINUTES Page 6 of 12 January 27, 2021 SPECIAL MEETING   few complaints; STVR tax revenue is not worth neighborhood destruction; and illegal activity is easily done and difficult to detect in STVRs. 29. Segal, Stefanie (La Quinta PGA West) – opposes STVRs in PGA West unless owners manage their renters and negotiate with PGA West HOA Board to resolve all the problems the STVR owners have caused. 30. Vince, Barbara (North La Quinta) – opposes STVRs; her cul-de-sac was quiet until STVRs; and supports a ban on STVRs in her neighborhood. 31. Mitzev, Vasko (La Quinta Cove) – owns a LQ STVR, splits time between La Quinta and Orange County; has invested over $100,000 to maintain his La Quinta property; only 5% of housing stock in La Quinta are STVR, a small and beneficial number; illegal STVRs cause the problems and should be shut down; complaints should first be made to owners; and those making multiple non-valid complaints to the City should be penalized. --- Mitzey, Jill – withdrew her request to speak 32. Fraiser, Jennifer (La Quinta Cove & Victoria, Canada) – wishes to rent her Cove home for minimum 28-days but has not heard back from the City; concerned that if she is not permitted to rent out, she will lose her La Quinta house; problems in PGA West should be handled by PGA West; and intends to retire in LQ so supports the community and its opposition to STVRs. --- Adams, Deborah Lynn – unable to reach, City called multiple times. MAYOR EVANS CALLED A RECESS AT 9:10 P.M. MAYOR EVANS RECONVENED THE CITY COUNCIL MEETING AT 9:20 P.M. WITH ALL MEMBERS PRESENT Mayor Evans requested that Council start discussion with slide no. 19 of the staff report. Council discussed the timing of STVR problems which began prior to the onset of the COVID-19 pandemic, as early as 2018; Council’s intention is to fix the problem, rather than place blame and Council works for the community as a whole, not any one industry or interest group; the City has no jurisdiction with regard to HOA CC&Rs or HOA Board decisions however should the City adopt citywide STVR regulations that are stricter than those in any HOA’s CC&Rs, the City regulations would rule. In response to Councilmember Sanchez’ conflict question, City Attorney Ihrke stated that being a licensed real estate broker does not present a conflict of interest because Councilmember Sanchez has no financial interest in any STVR. Mayor Evans added that no Councilmember operates any STVRs. 46 CITY COUNCIL MINUTES Page 7 of 12 January 27, 2021 SPECIAL MEETING   Council discussed the reasons for the moratorium; the regulations enacted by the City of Palm Springs and the need for data on the effectiveness of those regulations; density options in residential zones such as limiting the number of permits within a certain radius, setting a minimum number of nights for stays, limiting occupants, limiting number of rental days per year, limiting the number of bookings per year, limiting the number of STVR properties per person; consensus was reached to table the 300’ radius limitation for now; consensus in support of hosted homeshares with no minimum stays and allowing owners to occupy auxiliary dwelling units during homeshares; consensus to continue the moratorium on homeshares due to the pandemic, and to avoid a flood of applications from those erroneously claiming to operate a homeshare; creating a lower fee permit, and accompanying regulations that apply to owners renting their primary residences a few times a year as opposed to absentee owners; data shows that 192 permits have been issued to those renting their primary residences for STVRs or homeshares; consensus that properties with five or more bedrooms would require a “special event” permit however, if only eight or less occupants rents such a house, an STVR permit would suffice. Council moved on to discuss noise complaints; requiring noise meters on all STVR properties or just those generating complaints; requiring noise meters both inside the house and at the property line; distinguishing types of noises for example loud pool play from children of STVRs versus the children of residents; requiring noise devices to meet certain specifications; consensus reached to direct staff to design a noise monitoring pilot program and; consensus to keep Executive Order No. 9 in place; consensus to keep “quiet time” to the 10 p.m. to 7 a.m. as stated in the Municipal Code. Regarding trash complaints, Council reached a consensus to include a requirement that STVR owners have a trash management plan so that trash bags and/or bins are not left at curbs for days. Council took up parking matters next with discussions on requiring a parking site plan for new and renewing STVR permits; consensus that existing STVR requirement of 4-persons to 1-vehicle ratio is satisfactory for all guests staying overnight on the property; consensus that parking for STVRs with five or more bedrooms will be addressed under the special event permit soon to be required. Council discussed the current two-strike regulation versus three-strikes i.e., number of citations “strikes” before the property’s permit is suspended and the consensus was to keep the two-strike regulation in place due to its effectiveness in reducing complaints. 47 CITY COUNCIL MINUTES Page 8 of 12 January 27, 2021 SPECIAL MEETING   Council discussed daytime and nighttime occupancy and reached a consensus to keep the existing ordinance in place which provides for a range rather than a fixed number of occupants. Council asked Staff to explore getting property owners/managers to sign a statement acknowledging City regulations, and to explore the possibility of getting all renters to also sign such a document. Additionally, Council wishes Staff to explore the legality and practicality of getting a deposit from renters to be held against STVR violations occurring during their stay. Mayor Evans provided a recap of items on which the Council reached a consensus as follows: 1. Radius limitation - tabled until Staff provides additional data. 2. Hosted homeshares in residential zones – continue program with no minimum stays; owners of hosted homeshares may occupy auxiliary dwelling units while renting the main dwelling unit; continue the moratorium on homeshares due to the pandemic, and to avoid a flood of applications from those erroneously claiming to operate a homeshare. 3. Properties with five or more bedrooms – require a “special event” permit unless it’s rented by eight or less occupants, then a STVR permit would suffice; parking plans are to be required for a special event permit. 4. Noise – staff directed to initiate a noise monitoring pilot program; “quiet time” to remain 10 p.m. to 7 a.m. as required by the Municipal Code. 5. Executive Order No. 9 – to remain in effect. 6. Trash – owners to be required to have a trash management plan. 7. Parking – existing requirement of 4-persons to 1-vehicle ratio to remain for overnight guests. 8. Suspension due to citations – the two-strike regulation to remain in place. 9. Occupancy – the existing ordinance allowing for a range is to remain in place. 10. Limiting permits per owner – tabled until Staff provides additional data. 11. Setting minimum nights per stay – tabled until Staff provides additional data. 12. Limiting rentals per year – tabled until Staff provides additional data. MAYOR’S AND COUNCIL MEMBERS’ ITEMS Mayor Evans reminded listeners of the “purple tier” status and urged residents to support local restaurants and businesses. 48 CITY COUNCIL MINUTES Page 9 of 12 January 27, 2021 SPECIAL MEETING   ADJOURNMENT There being no further business, a motion was made and seconded by Councilmembers Radi/Pena to adjourn at 12:01 a.m. Motion passed unanimously. Respectfully submitted, MONIKA RADEVA, City Clerk City of La Quinta, California 49 CITY COUNCIL MINUTES Page 10 of 12 January 27, 2021 SPECIAL MEETING   ATTACHMENT 1 to CITY COUNCIL SPECIAL MEETING MINUTES THURSDAY, JANUARY 27, 2021 WRITTEN PUBLIC COMMENTS were received from the citizens below listed in alphabetical order, prior to the adjournment of the meeting at 12:01 a.m., including those received during the live meeting, and have been distributed to Council and incorporated into the agenda packet: 1. Alejo, Irene – supports STVRs 2. Aleman, Michelle – supports STVRs with more restrictions 3. Anderson, Lee – supports STVRs with crack downs on party houses 4. Anonymous – supports STVRs; provided recommend provisions 5. Armendarez, Edward – opposes STVRs 6. Bakall, Ergun – opposes STVRs 7. Bernick, DeBora - supports STVRs 8. Bernick, Charles – supports of STVRs 9. Beron, Bette – opposes STVRs 10. Best, Lawrence – commented on Staff’s analysis of the Ad Hoc Committee’s report 11. Bonilla, Elena – supports STVRs 12. Brar, Tony – supports STVRs 13. Briesach, Mary – supports STVRs 14. Brown, Derrick – opposes STVRs 15. Butler, Marty – opposes STVRs 16. Calhoun, Tiffany – supports STVRs 17. Capobianco, Peter – moving out of La Quinta due to STVRs in PGA West 18. Chavez, Shannon – supports STVRs; commented on Ad Hoc Committee’s recommendations 19. Colby, Chuck – supports STVRs with beefed up enforcement 20. Cunnington, Karayn – opposes STVRs; supports Ad Hoc Committee’s recommendations 21. Cunnington, Ed – opposes STVRs; supports Ad Hoc Committee’s recommendations 22. Currie, Cindy – opposes STVRs 23. Cutchin, Marcia – opposes new licenses for non-hosted STVRs 24. Daniels, Lynne – supports STVRs 25. Daniels, Rob – supports STVRs 26. Ditter, Jill – opposes STVRs 27. Ehren, Melissa – opposes STVRs 28. Franco Dianne – supports keeping the moratorium 50 CITY COUNCIL MINUTES Page 11 of 12 January 27, 2021 SPECIAL MEETING   29. Futalan, Mark – supports STVRs 30. Futalan, Desiree – supports STVRs 31. Goldfinch, Greg – supports N4N in opposing STVRs 32. Gotshalk, Arlene – opposes STVR 33. Graves, Cathy – opposes STVRs 34. Graves, Dean – opposes STVRs 35. Grenier, Kylie – opposes STVRs; supports N4N’s recommendations 36. Hagerman, Allen – opposes STVR; supports a minimum two-week stay 37. Hefti, Denise – supports STVRs 38. Heitner, Jeff – supports limiting number of STVRs & minimum one-week stay 39. Howard, Angie – supports STVRs 40. Jelus, Carol – supports STVRs 41. Jelus, Paul – supports STVRs 42. Kaiser, Ambrosio – opposes STVRs 43. Kaiser, Jeffrey – opposes STVRs 44. Kaiser, Joanna – opposes STVRs 45. Khan, Anthony – supports STVRs and capping the number of permits issued 46. Khan, Suzanne – supports limiting STVRs to existing permits 47. Kraemer, Linda – opposes STVRs 48. Lambert, Jim – opposes STVRs; supports Ad Hoc Committee’s recommendations 49. Larson, Kim – opposes STVRs; supports extending the moratorium 50. Lloyd, Walt – opposes STVRs 51. Logan, John – supports STVRs 52. Long Jr., Russ – opposes STVRs; supports N4N 53. Madonado, Carol – supports STVRs 54. McDade, Jason – supports STVRs 55. McGrath, Elaina – supports STVRs 56. McGrath, Sean – supports STVRs and recall of the moratorium 57. Millar, Elaine – opposes STVRs 58. Montavon, Barb – opposes STVRs and illegal ads 59. Nagel, Joni – opposes STVRs 60. Neighbors for Neighborhoods, rep Daniel Villegas – opposes new STVRs 61. Neighbors for Neighborhoods, rep Don Shoffstall – opposes STVRs 62. Nelson, Matthew – opposes STVRs 63. Niederhauser, Steven – supports STVRs 64. Nimis, Connie – opposes STVRs 65. Nimis, Donald – opposes STVRs 66. Porter, Jennifer – supports STVRs 67. Potenza, Nick – opposes STVRs 68. Pracht, Patricia – opposes STVRs 69. Pracht, Terry – opposes STVRs 70. Quill, Paul – opposes STVRs 71. Reed, Diane – supports STVRs 51 CITY COUNCIL MINUTES Page 12 of 12 January 27, 2021 SPECIAL MEETING   72. Rolston, Bob – supports limiting STVRs 73. Santiago, Adam – commented on Ad Hoc Committee’s recommendations 74. Savageau, Joe – opposes STVRs 75. Servais, Mike – opposes STVRs 76. Siegel, Neale – opposes STVRs 77. Smith, Mike – supports STVRs 78. Smith, Susie – supports STVRs 79. Smith, Jeff – opposes STVRs 80. Smith, Val – opposes STVRs 81. Soliman, Janet – supports STVRs 82. Speidel, Paul – supports STVRs 83. Stearns, David – opposes STVRs 84. Storbo, Dick – opposes STVRs; supports Ad Hoc Committee’s recommendations 85. Storbo, Janis - opposes STVRs; supports Ad Hoc Committee’s recommendations 86. Struthers, George – supports 28-day minimum rentals 87. Struthers, Monica – supports 28-day minimum rentals 88. Sweeney, Michael – supports STVRs 89. Thompson, Marie – opposes STVRs 90. Vano, Jon – opposes STVRs; supports a permanent moratorium 91. Vano, Laura – opposes STVRs; supports a permanent moratorium 92. Venosa, Joe – supports STVRs 93. Vince, Barbara – opposes STVRs 94. VRON-LQ, rep Olivier Chaine – supports STVRs 95. Williams, Linda – opposes STVRs 96. Wilson, Rich – supports limiting STVRs 97. Wolff, Kay – supports extending the moratorium on non-hosted rentals 98. Yukich, Janet – opposes STVRs 99. Yukich, Jim – opposes STVRs 100. Zehnder, Susan – opposes STVRs 101. Zehnder, Werner – opposes STVRs 52 CITY COUNCIL MINUTES Page 1 of 16 October 20, 2020 SPECIAL JOINT STUDY SESSION – LA QUINTA CITY COUNCIL & PLANNING COMMISSION   CITY COUNCIL REGULAR MEETING AND SPECIAL JOINT STUDY SESSION MEETING OF THE CITY COUNCIL AND PLANNING COMMISSION MINUTES TUESDAY, OCTOBER 20, 2020 CALL TO ORDER A regular meeting of the La Quinta City Council was called to order at 3:00 p.m. by Mayor Evans. This meeting provided teleconference accessibility pursuant to Executive Orders N-25-20, N-29-20, N-33-20, and N-35-20, executed by the Governor of California in response to the state of emergency relating to novel coronavirus disease 2019 (COVID-19) and enabling teleconferencing accommodations by suspending or waiving specified provisions of the Ralph M. Brown Act (Government Code § 54950 et seq.). PRESENT: Councilmembers Fitzpatrick, Peña, Radi, Sanchez, Mayor Evans ABSENT: None CITY STAFF PRESENT: City Manager McMillen, City Attorney Ihrke, Deputy City Clerk Radeva, Deputy City Clerk Romane, Finance Director Romero, Human Resources Analyst Triplett, Management Specialist Kinley, Senior Planner Flores, Design and Development Director Castro, Community Resources Director Escobedo, and Public Works Director/City Engineer McKinney. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None CONFIRMATION OF AGENDA Councilmember Peña requested that Consent Calendar Item No. 3 be pulled for separate vote, and said he will recuse himself from discussion and voting on the item due to a potential conflict of interest stemming from the proximity of his real property to this project. Mayor Evans requested that Consent Calendar Item No. 6 be pulled from the Consent Calendar and considered as Business Item No. 3. Council concurred. CONSENT CALENDAR ITEM NO. 4 53 CITY COUNCIL MINUTES Page 2 of 16 October 20, 2020 SPECIAL JOINT STUDY SESSION – LA QUINTA CITY COUNCIL & PLANNING COMMISSION   CLOSED SESSION 1. THREAT TO PUBLIC SERVICES OR FACILITIES, PURSUANT TO SUBDIVISION (a) OF GOVERNMENT CODE SECTION 54957. CONSULTATION WITH: ALEXANDER JOHNSTON, SENIOR EMERGENCY MANAGEMENT COORDINATOR; WILLIAM H. IHRKE, CITY ATTORNEY (Review Continued Need and Response to Proclaimed State and Local Emergencies Caused by COVID-19.) 2. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION; SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO PARAGRAPH (2) OR (3) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9 (NUMBER OF POTENTIAL CASES: 1) COUNCIL RECESSED THE OPEN SESSION PORTION OF THE MEETING AND MOVED INTO CLOSED SESSION AT 3:02 P.M. MAYOR EVANS RECONVENED THE OPEN SESSION PORTION OF THE CITY COUNCIL MEETING AT 4:01 P.M. WITH ALL MEMBERS PRESENT REPORT ON ACTION(S) TAKEN IN CLOSED SESSION: City Attorney Ihrke reported the following pursuant to Government Code section 54950 et. seq. (Brown Act).  CLOSED SESSION ITEM NO. 1 – The City Council continued the discussion of the status of state and local emergencies caused by the threat of the spread of novel coronavirus 2019 (COVID-19); and discussed modifications to Round III COVID-19 Small Business Emergency Economic Relief Program, which Council will consider as Business Session Item No. 2 on tonight’s agenda.  CLOSED SESSION ITEM NO. 2 – no actions taken. PLEDGE OF ALLEGIANCE Councilmember Radi led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE City Clerk Radeva announced the WRITTEN PUBLIC COMMENTS received up until 4:00 p.m., which are listed under the relevant agenda items below; said staff will continue to monitor emails until the adjournment of the meeting; all comments received will be distributed to Council and will be incorporated into the agenda packet. 54 CITY COUNCIL MINUTES Page 3 of 16 October 20, 2020 SPECIAL JOINT STUDY SESSION – LA QUINTA CITY COUNCIL & PLANNING COMMISSION   PUBLIC SPEAKERS VIA TELEPHONIC ACCESSIBILITY listed in the order in which they spoke: 1. Anderson, Brad (Rancho Mirage) – recommends defunding the Coachella Valley Mosquito and Vector Control District and contracting with a private business who may do a better job. 2. Barbosa, Victor (La Quinta) – owns Toscano’s restaurant and a second home in La Quinta which he rents for STVRs; and supports STVRs. 3. Ruiz, Rema (La Quinta) – she and her sisters rent their late mother’s house for STVRs; supports guests being responsible for paying citations rather than owners; and supports STVRs. 4. Block, Rick (La Quinta) – owns two STVR properties in La Quinta and has never received complaints from neighbors; and supports STVRs. 5. Linares, Fernando (Los Angeles, CA) – owns a STVR property in the Cove; and supports STVRs. 6. Covely, Fred of VRON-LQ (Vacation Rental Owners & Neighbors of La Quinta) – owns a STVR in La Quinta; and supports STVRs. 7. Chavez, Shannon, VRON-LQ (Covina, CA) – supports holding hosts and guests accountable; recommends collecting and publishing detailed data on complaints; and supports STVRs. 8. Colela, Dr. Mark (La Quinta) – PGA West homeowner; rents his home via the STVR program without problems; and supports STVRs. 9. Parness, Karen (La Quinta) – holds a STVR permit; and supports lifting the STVR moratorium on HOA communities. 10. Nevels-Yanchar, Stephanie (Seattle, WA) – owns a STVR in PGA West; concerned about unwarranted complaints from neighbors; and supports fining guests not owners. 11. El Moussa, Dominique (La Quinta) – rents a home via STVR program when her family is not using it; believes hotels are lobbying the City to eliminate STVRs; and supports STVRs. 12. Loewen, Patricia (La Quinta) – owns a STVR in PGA West; recommends that only “bad apples” are penalized, and those making unwarranted complaints; and supports lifting the moratorium on STVRs in HOA communities. 13. Zelinsky, Carol (La Quinta) – only STVRs not in compliance should be penalized; and supports STVRs. 14. de Sam Lazaro, Richard, Expedia Group/VRBO (Seattle, WA) – supports the STVR Program Ad-Hoc Committee’s recommendations; provided additional recommendations that VRBO and similar platforms could enact to increase compliance; and supports STVRs. 15. Batista, Thomas (San Jose, CA) – owns a second home in PGA West rented since 2018 as a STVR; concerned about unfounded complaints; and supports STVRs. 16. Marsh, Kathy (Palo Alto, CA) – owns a second home in PGA West; supports lifting the moratorium on new permits in PGA West; and believes detailed data is needed to identify serial offenders and erroneous complaints. 55 CITY COUNCIL MINUTES Page 4 of 16 October 20, 2020 SPECIAL JOINT STUDY SESSION – LA QUINTA CITY COUNCIL & PLANNING COMMISSION   17. Breeswine, Carrie (La Quinta) – permanent resident of PGA West; believes accurate data is needed; and finds it miserable living near STVRs. 18. Slagter, Lisa (La Quinta) – Coachella Valley was built on vacation rentals and tourism, there is no other industry in La Quinta; STVR homes are better maintained than long-term rentals; supports STVRs; and supports eliminating mosquitos. 19. Zamora, Fred (La Quinta) – contractor; supports STVRs because they provide him with work and income; and recommends penalizing only violators. 20. Stauber, Matthew (La Quinta) – works in STVR property management and maintenance which provides many jobs for La Quinta families; supports lifting the moratorium; and supports focusing on problem properties. 21. Sheth, Nick (La Quinta) – owns a STVR in PGA West as well as a primary residence in La Quinta Estates; believes there is a lack of data on which to make responsible decisions; supports installing in-house monitors; and supports continuing the STVR program. IN-PERSON PUBLIC SPEAKERS listed in the order in which they spoke: 1. Estrada, Eddie (La Quinta) – owns a STVR in PGA West; belongs to a group of 150 PGA West STVR owners who are developing rules to improve the program and considering hiring their own private security; and said consistency is needed among all STVR owners. 2. Gray, Richard (La Quinta) – supports limiting STVRs in residential neighborhoods; opposes the “road diet” on Adams Street, recommends solar flashing lights instead and having a crosswalk only at the intersection; and recommends increasing and dispersing the number of voting centers around the City. 3. Stauber, Susan (La Quinta) – opposes over-regulating professional STVR owners; supports focusing on problem owners; supports lifting the moratorium; and questioned Council discussing the moratorium in Closed Session. City Attorney Ihrke and Mayor Evans clarified that the current moratorium applies to new STVR permits only, not renewals, and was originally duly issued as an Emergency Order of the City Manager to prevent STVR guests bringing the COVID-19 virus into the City. Extending the moratorium on new permits was discussed in Closed Session in accordance with State law as the increased number of complaints overwhelmed Code Enforcement posing a threat to public services making it necessary to halt the issuance of new permits until the City had the ability to manage existing STVR permits. IN-PERSON PUBLIC SPEAKERS (continued): 4. Tamm, Jalena (Newport Beach/La Quinta) – member of the STVR Program Ad-Hoc Committee; Committee recommendations to date are not based on 56 CITY COUNCIL MINUTES Page 5 of 16 October 20, 2020 SPECIAL JOINT STUDY SESSION – LA QUINTA CITY COUNCIL & PLANNING COMMISSION   data; and detailed data is needed from the City in order for the Committee to proceed. 5. Dinnel, David (Los Angeles/La Quinta) – opposed to a complete ban on STVRs; consequences to STVR owners if banned; and spoke of options owners would have if the City baned STVRs, which would be all negative to the City and the neighborhoods. 6. McCowan, Robert (La Quinta) – PGA West permanent resident; supports limiting the number of STVR permits; and questioned how Executive Order No. 9 is enforced. City Manager McMillen and Council explained the complaint process, how the City works with PGA West Security and what constitutes a strike against an owner; explained the process for the immediate 90-day suspension on a permitted STVR; and noted that there are areas of the City that are zoned specifically for STVR purposes. IN-PERSON PUBLIC SPEAKERS (continued): 7. Spears, Ron (La Quinta) – Chairman of the Salton Sea Restoration Committee; requested that Council adopt a resolution in support of the Desert Shores Channel Restoration Project at the Salton Sea. ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS 1. SUNLINE TRANSIT AGENCY – 5TH ANNUAL STUDENT ART CONTEST PRESENTATION BY SUNLINE TRANSIT AGENCY REPRESENTATIVE; AND THANK YOU TO THE CITY OF LA QUINTA FOR ITS SPONSORSHIP Nicholas Robles, Marketing and Events Manager for Sunline Transit Agency gave a brief presentation on the 5th Annual Student Art Contest; thanked the City Council for co-sponsoring; and showed a short video showcasing the artwork. 2. CERTIFICATE OF RECOGNITION COMMENDING STUDENTS FOR RAISING ENVIRONMENTAL AWARENESS BY KAYAKING ACROSS THE SALTON SEA Mayor Evans said WRITTEN PUBLIC COMMENTS were received from Chuck Parker (Desert Hot Springs). City Clerk Radeva read into the record submitted by Mr. Parker – thanking Council for issuing a Certificate of Recognition to the Three Coachella Valley high school students who kayaked across the Salton Sea to draw attention to the need for restoration to protect the economy and the health of Coachella Valley residents; requested Council adopt a Resolution of Support for a comprehensive analysis of ocean water importation to restore the Salton Sea; and recommended that Council appoint a La Quinta representative to the Salton Sea Management Plan’s Engagement Committee. 57 CITY COUNCIL MINUTES Page 6 of 16 October 20, 2020 SPECIAL JOINT STUDY SESSION – LA QUINTA CITY COUNCIL & PLANNING COMMISSION   Mayor Evans presented a Certificate of Recognition to Evelyn Garcia, Laten Jones and Clayton Jones for kayaking across the Salton Sea to raise environmental awareness. CONSENT CALENDAR 1. APPROVE DEMAND REGISTERS DATED OCTOBER 2 AND 9, 2020 2. ADOPT RESOLUTION TO APPROVE FINAL PARCEL MAP NO. 37823 LOCATED ON THE SOUTHEAST CORNER OF MILES AVENUE AND WASHINGTON STREET [RESOLUTION NO. 2020-035] 3. Item pulled for separate vote by Councilmember Peña >>> ACCEPT AVENIDA BERMUDAS AMERICANS WITH DISABILITIES ACT MISCELLANEOUS IMPROVEMENTS LOCATED ON AVENIDA BERMUDAS BETWEEN MAIN STREET AND CALLE CADIZ IN OLD TOWN (PROJECT NO. 2019-09/COMMUNITY DEVELOPMENT BLOCK GRANT PROJECT NO. 4.LQ.38-19) 4. APPROVE AMENDMENT NO. 3 TO AGREEMENT FOR CONTRACT SERVICES WITH HERMANN DESIGN GROUP, INC FOR ADDITIONAL DESIGN SERVICES FOR THE SILVERROCK EVENT SITE PROJECT NO. 2016-08 5. ADOPT RESOLUTION DESIGNATING SPEED LIMITS FOR EISENHOWER DRIVE: FROM CALLE SINALOA TO AVENIDA MONTEZUMA; FROM AVENIDA MONTEZUMA TO CALLE TAMPICO; AND FROM CALLE TAMPICO TO AVENUE 50 [RESOLUTION NO. 2020- 036] 6. Item pulled from the Consent Calendar by Mayor Evans and moved to Business Session Item No. 3 >>> APPROVE A CODE COMPLIANCE OFFICER I POSITION TO THE COMMUNITY RESOURCES DEPARTMENT, CODE COMPLIANCE DIVISION AND RELATED BUDGET ADJUSTMENT MOTION – A motion was made and seconded by Councilmembers Peña/ Fitzpatrick to approve Consent Calendar Item Nos. 1, 2, 4, and 5 as recommended, with Item Nos. 2 and 5 adopting Resolutions Nos. 2020-035 and 2020-036, respectively. Motion passed unanimously. MAYOR PRO TEM PEÑA RECUSED HIMSELF FROM DISCUSSION AND VOTE ON CONSENT CALENDAR ITEM NO. 3 DUE TO THE POTENTIAL CONFLICT OF INTEREST STEMMING FROM THE PROXIMITY OF REAL PROPERTY TO THE PROJECT SITE 58 CITY COUNCIL MINUTES Page 7 of 16 October 20, 2020 SPECIAL JOINT STUDY SESSION – LA QUINTA CITY COUNCIL & PLANNING COMMISSION   CONSENT CALENDAR ITEM NO. 3 MOTION – A motion was made and seconded by Councilmembers Radi/ Fitzpatrick to approve Consent Calendar Item No. 3 as recommended. Motion passed: 4 ayes, 0 noes, 1 abstain (Peña). BUSINESS SESSION 1. INTERVIEW AND APPOINT ONE RESIDENT TO THE FINANCIAL ADVISORY COMMISSION Council waived presentation of the staff report, which is on file in the Clerk’s Office. Mayor Evans thanked the applicants for their willingness to serve and explained the process Council follows in conducting the interviews and appointing members. The following applicants gave a brief presentation of their experience and qualifications:  Keith Dorsey  Ellen Way Results of the ballot vote: Councilmember Fitzpatrick – Keith Dorsey Councilmember Peña – Ellen Way Councilmember Radi – Keith Dorsey Councilmember Sanchez – Ellen Way Mayor Evans – Ellen Way MOTION – A motion was made and seconded by Councilmembers Radi/ Sanchez to appoint Ellen Way to serve on the Financial Advisory Commission for the unexpired term ending June 30, 2023. Motion passed unanimously. 2. APPROVE MODIFIED ROUND III COVID-19 SMALL BUSINESS EMERGENCY ECONOMIC RELIEF PROGRAM FOR LA QUINTA BUSINESSES IMPACTED BY COVID-19 Management Specialist Kinley presented the staff report, which is on file in the Clerk’s Office. Council discussed the program’s reimbursement process; the USA Today article noting La Quinta’s program and the growing popularity of the program and the communications with other cities to help them implement similar programs for their small businesses; the upfront cost of the program for business retention 59 CITY COUNCIL MINUTES Page 8 of 16 October 20, 2020 SPECIAL JOINT STUDY SESSION – LA QUINTA CITY COUNCIL & PLANNING COMMISSION   being more beneficial than trying to replace lost businesses; La Quinta business vacancy rates are relatively low despite the pandemic; the City’s efforts in lieu of State and County mandates; and the importance of reinvesting into the community. MOTION – A motion was made and seconded by Councilmembers Peña/ Sanchez to approve modified Round III COVID-19 Small Business Emergency Economic Relief Program as outlined below to provide mortgage/rent and utilities relief reimbursement opportunity to eligible businesses for the month of August 2020:  Offer one-time 75% one-month rent/mortgage and utility reimbursement for the month of August 2020 to La Quinta businesses consisting of nail salons, facial and esthetician services, shaving, waxing and threading, massage therapy, body art, tattoo and piercing, fitness centers, hair salons and barbershops, impacted by the California state mandate to cease indoor operation, for a total not to exceed amount of $10,000.  Offer one-time 50% one-month rent/mortgage and utility reimbursement for the month of August 2020 to La Quinta businesses consisting of restaurants and retail establishments experiencing severe financial hardships due to COVID-19 in an amount not to exceed $10,000. Motion passed unanimously. 3. Pulled from Consent Calendar by Mayor Evans and moved to Business Session Item No. 3 >>> APPROVE A CODE COMPLIANCE OFFICER I POSITION TO THE COMMUNITY RESOURCES DEPARTMENT, CODE COMPLIANCE DIVISION AND RELATED BUDGET ADJUSTMENT Human Resources Analyst Triplett presented the staff report, which is on file in the Clerk’s Office. Council discussed the importance of transparency when approving a new position and emphasized the need for another Code Compliance Officer; and the new position’s critical role in ensuring the City has the right resources available to enhance and improve the enforcement of the STVR Program. MOTION – A motion was made and seconded by Councilmembers Radi/Peña to approve the addition of one Code Compliance Officer I position to the Community Resources Department, Code Compliance Division, and related budget adjustment as recommended. Motion passed unanimously. PUBLIC HEARINGS – None MAYOR EVANS RECESSED THE REGULAR COUNCIL MEETING AT 7:12 P.M. FOR A SHORT BREAK BEFORE CONDUCTING THE SPECIAL JOINT STUDY SESSION MEETING BETWEEN THE LA QUINTA CITY COUNCIL AND LA QUINTA PLANNING COMMISSION 60 CITY COUNCIL MINUTES Page 9 of 16 October 20, 2020 SPECIAL JOINT STUDY SESSION – LA QUINTA CITY COUNCIL & PLANNING COMMISSION   SPECIAL JOINT STUDY SESSION BETWEEN THE LA QUINTA CITY COUNCIL AND LA QUINTA PLANNING COMMISSION CALL TO ORDER – Planning Commission The special Joint Study Session meeting between the La Quinta City Council and La Quinta Planning Commission was called to order at 7:51 p.m. by Mayor Evans and Chairperson Proctor with all Councilmembers present. PRESENT VIA ZOOM: Commissioners Bettencourt, Caldwell, Currie, Libolt Varner, McCune, Nieto, and Chairperson Proctor Chairperson Proctor asked Mayor Evans to act as presiding officer for the Planning Commission during the Special Joint Study Session meeting. JOINT STUDY SESSION – City Council and Planning Commission 1. DISCUSS PROPOSED AMENDMENTS TO TITLE 9 OF THE LA QUINTA MUNICIPAL CODE RELATED TO HOME OCCUPATIONS, COVE DEVELOPMENT STANDARDS, AND IMAGE CORRIDOR STANDARDS Senior Planner Flores presented the staff report, which is on file in the Clerk’s Office. General discussion followed about amending the City’s Home Occupation permit regulations; the state’s requirements of highly regulated service-based businesses such as nail and hair services, and concerns related to ensuring compliance within the City; current inspection process for Home Occupation permits; service-based businesses effects on neighborhood parking; concerns related to microenterprise kitchen operation businesses adhering to occupancy limits; the City’s legal obligation to adopt Assembly Bill 626 (AB 626) allowing microenterprise kitchen operations, and additional restrictions that the City can put in place; microenterprise kitchen restrictions on the number of meals, visitors, and yearly gross receipts; providing an opportunity for people to earn income who are unable to own a storefront; outdoor cooking being allowable and regulated under AB 626 and State law; the business license permitting process and requirements; coordination with staff to evaluate the capability of increasing inspections and ensuring home occupation businesses are not operating without a license and are adhering to all other City regulations; the City’s jurisdiction in limiting certain aspects of microenterprise kitchens that are not inconsistent with State and County law, such as time of operations, parking, and food pick-ups; defining what constitutes a service, and clarification on the intended use of a 61 CITY COUNCIL MINUTES Page 10 of 16 October 20, 2020 SPECIAL JOINT STUDY SESSION – LA QUINTA CITY COUNCIL & PLANNING COMMISSION   home occupation permit which must also comply to residential land uses; the incentive for those working from home to get a City business license; the differing state regulations that separate the ability for microenterprise kitchens to have visitors to dine-in versus food pick-up; the requirement for any business to have an Alcohol and Beverage Control License if alcohol will be consumed on the premises; the need to separate general home occupation permits from microenterprise kitchen permits; the La Quinta Municipal Code (Code) prohibits home occupation permits for any medical or dental business in residential zones; and potential for limiting certain service businesses that become too prevalent in the residential zones. General discussion followed about removing the Cove Residential (RC) District Development Standards in the La Quinta Cove (Cove) and changing it to the city-wide Residential Architectural Design Standards; ensuring that the smaller residential lot sizes in the Cove will not conflict with the proposed standards; the updates simplify navigation through the Code; and to consider allowing “tiny homes” and shipping container homes to be built on small lots would require amending the City’s minimum home size of 1,200 square feet. General discussion followed about amending height limit approvals near image corridors; the process of review and approvals for grand scale projects, and the purpose of adding a Minor Use Permit requirement for developers looking to exceed the 22-foot height limit; ensuring findings of a project are consistent with the La Quinta General Plan, Zoning Code, and allowable land uses; and proposed building heights may exceed 22-foot limit, but are still limited by the zone in which it’s located. Council and the Planning Commission spoke in general support to provide clarification on the allowable home occupation services in compliance with the City’s residential land uses; separate the process and regulations between home occupation permits and microenterprise kitchen operations; ensure that microenterprise kitchens are adhering to occupancy limits, and should have at least one off street parking space; staff to coordinate the capability of increasing home occupation inspections and monitoring compliance; move forward with the recommended change in the Cove from the RC District Development Standards to the city-wide Residential Architectural Design Standards; and to move forward with the recommended changes to allow developments to exceed the one story limit and 22 feet height limit, but still within the maximum height of the existing zone. ADJOURNMENT – Planning Commission A motion was made and seconded by Planning Commissioners Bettencourt/ Caldwell to adjourn the Special Joint Study Session meeting between the City Council and Planning Commission at 9:24 p.m. 62 CITY COUNCIL MINUTES Page 11 of 16 October 20, 2020 SPECIAL JOINT STUDY SESSION – LA QUINTA CITY COUNCIL & PLANNING COMMISSION   MAYOR EVANS RECESSED THE CITY COUNCIL MEETING AT 9:25 P.M. FOR A SHORT BREAK MAYOR EVANS RECONVENED THE REGULAR CITY COUNCIL MEETING AT 9:33 P.M. WITH ALL MEMBERS PRESENT STUDY SESSION (continued – City Council) 2. DISCUSS SHORT-TERM VACATION RENTAL PROGRAM AD-HOC COMMITTEE’S ENFORCEMENT RECOMMENDATIONS Design and Development Director Castro, Community Resources Director Escobedo, and STVR Program Ad-hoc Committee Vice Chair McDonough presented the staff report, which is on file in the Clerk’s Office. WRITTEN PUBLIC COMMENTS were received from the citizens listed below in alphabetical order, prior to the adjournment of the meeting at 12:04 a.m., including those received during the live meeting, and have been distributed to Council and incorporated into the agenda packet: 1. Airbnb comments provided by John Choi, Policy Manager (Los Angeles, CA) – providing recommendations on steps and tolls the City could implement to ensure STVR compliance. 2. Batista, Thomas (San Jose, CA) – supports STVRs. 3. Chavez, Shannon (Covina, CA) – provided data regarding complaints and citations for all STVRs in 2020 year-to-date for review and consideration. 4. Chernavsky, Damon (Los Angeles, CA) – supports STVRs. 5. Choi, John (Los Angeles, CA) - 6. Dal Poggetto, Jon (San Juan Capistrano, CA) – supports STVRs. 7. de Sam Lizaro, Richard on behalf of Expedia Group (Seattle, WA) – support STVRs. 8. El Moussa, Dominique (La Quinta) – supports STVRs. 9. Esmeralda, Nelda (La Quinta) – supports STVRs. 10. Fairchild, Jason (La Quinta) – supports STVRs. 11. Hastie, John (La Quinta) – adopt “wait and see” approach and act only when the data dictates it is necessary; and supports STVRs. 12. Hoffman, Micah (La Quinta) – supports STVRs and against a ban on STVRs. 13. Kahn, Anthony (La Quinta) – supports STVRs. 14. Lambert, Jim (La Quinta) – opposes STVRs. 15. Lin, Allen (La Quinta) – supports STVRs. 16. Lucas, Laura (La Quinta) – supports STVRs. 17. Lucas, Graham (La Quinta) – supports STVRs. 18. Machok, Daniel (La Quinta) – supports STVRs. 19. Machok, Julie (La Quinta) – supports STVRs. 63 CITY COUNCIL MINUTES Page 12 of 16 October 20, 2020 SPECIAL JOINT STUDY SESSION – LA QUINTA CITY COUNCIL & PLANNING COMMISSION   20. Maldonado, Carol (La Quinta) – supports STVRs. 21. Moran, Amanda (La Quinta) – supports STVRs. 22. Moran, William (La Quinta) – supports STVRs. 23. Pagano, John (La Quinta) – supports STVRs. 24. Parham, Sean (La Quinta) – supports STVRs. 25. Pelzel, Jeff (La Quinta) – supports STVRs. 26. Pinson, Adrian (La Quinta) – supports STVRs. 27. Reyes, Laura (La Quinta) – supports STVRs. 28. Reyes, Robert (La Quinta) – supports STVRs. 29. Ruiz, Rema (La Quinta) – supports STVRs. 30. Sanchez, Maria (La Quinta) – supports STVRs. 31. Smith, Jeffrey (La Quinta) – opposes STVRs. 32. West, Vanessa (La Quinta) – supports STVRs. 33. Wolff, Kay (La Quinta) – opposes STVRs. General discussion followed about the types of data shared with the STVR Ad- Hoc Committee (Committee) and its Subcommittees; the Committee having full disclosure of all the data in the City’s possession, and opportunities to improve the types of data tracked; the Committee receives all public comments submitted to Council related to STVR; the process for responding to complaints and how they are substantiated; emphasized the purpose of the Committee is to ensure the City can implement a sustainable STVR program; the importance of solving the critical issues and reviewing both the qualitative and statistical data; STVR owners’ response time to a complaint and Staff’s recommendation to decrease the required response time from 45 minutes to 30 minutes; number of STVR owners who do not comply within the 45 minute response time to cure a complaint; STVR hotline phone number amended to have a local area code in addition to a text message being sent to the STVR owner; current inspection process for discrepancies on the number of bedrooms; proposed recommendations for permanent fixture in the home listing STVR regulations and increased inspection requirements; the STVR permitting vendor, LodgingRevs, to ensure compliance of STVR advertisements; officers cross- trained in STVR, and the onboarding and training of the newly approved Code Enforcement Officer I position; the roles and training of the third-party security company the City hired; the City’s ability to recover software license costs for holding the proposed STVR workshops and training program; process for implementation of the modified regulations; notifying neighboring properties of STVR suspension by letter in the mail, and potential of cost recovery of staff time and postage; defining amplified noise and measuring sound decibels; quiet hours; increasing the consequences for STVR operating without a permit, and the City’s legal ability to do so; commended staff and the Committee’s hard work and dedication on the proposed recommendations; STVR permits are held by property owners, not the property, thus STVR permits do not run with the land; and the need to identify the individuals holding ownership of LLCs and other business entities holding STVR permits to prevent unwanted transfers. 64 CITY COUNCIL MINUTES Page 13 of 16 October 20, 2020 SPECIAL JOINT STUDY SESSION – LA QUINTA CITY COUNCIL & PLANNING COMMISSION   PUBLIC SPEAKERS VIA TELEPHONIC AND TELECONFERENCE ACCESSIBILITY listed in the order in which they spoke: 1. Parnell, Karen (La Quinta) – owns a STVR; concerned that the Committee’s recommendations were made without complete data; and requests more transparency and information from the Committee. Council discussion followed about the role of the Committee to provide guidance to Council, and Council’s discretion regarding acceptance/rejection of recommendations and the responsibility for making the legislative decisions regarding the STVR Program rests with the Council. 2. VIA Zoom: Michele McDonough (La Quinta), Committee Vice Chair - explained that the Committee’s Marketing Subcommittee proposes the creation of a survey for La Quinta residents; the Subcommittee will also be examining the check-in process for STVR; and the timeline for presentation of the other Subcommittees’ recommendations for Council consideration. 3. Bradley, Ryan (La Quinta) – owns a STVR property and manages STVRs for other owners; noted that only three of the 1,500 plus permit holders have been suspended for noncompliance within the 45-minute cure period; concerned that the Committee has presented recommendations not based on any data; and suggested delaying all decision until detailed data is analyzed to accurately identify the degree of the problem. General discussion followed about including the qualitative data, e.g. emotional data, into consideration when discussing recommendations; the purpose of the Committee, which was established prior to the pandemic and the purpose of selecting volunteers with diverse views as members; the history of the STVR Program and the need to make improvements as new issues arise; the goal of the STVR program is to have minimal impact on full time residents; the importance of reaching a consensus to achieve a balance in the program; the value of multiple points of view in policy making; the City Council’s inability to discuss issues amongst themselves outside of a public meeting in accordance with the Ralph M. Brown Act; the efforts being made to fine-tune the program; a request that Staff provide the Council with the same data Staff provided to the Committee; and direction to add another STVR Study Session item at the next meeting to examine the data. 3. RECEIVE AND FILE ANNUAL REPORT OF ACTIVE DEVELOPMENT AGREEMENTS Planning Manager Flores presented the staff report, which is on file in the Clerk’s Office. 65 CITY COUNCIL MINUTES Page 14 of 16 October 20, 2020 SPECIAL JOINT STUDY SESSION – LA QUINTA CITY COUNCIL & PLANNING COMMISSION   Council discussed the majority of the Development Agreements (DA) are compliant; clarified the Centre Pointe $546,131 Transient Occupancy Tax (TOT) threshold that the development would need to meet in order to have the HOA fees removed or reduced; Centre Pointe is non-compliant in their performance schedule and in default of the DA, and the Disposition and Development Agreement (DDA) with the former La Quinta Redevelopment Agency; potential for bringing a breach of contract action to Centre Pointe; alternative remedies are to issue a Notice of Default and give a period for the development to cure, or execute a modification consistent with the DA; tax revenue affected by the lack of performance by Centre Pointe; options are to buy back the parcels, issuing an order forcing Centre Pointe into compliance, or seeking damages; Centre Pointe is current on its mitigation fees but behind on construction; and importance of developers fulfilling their obligations and not delaying year after year. Council spoke in general support of bringing the Centre Pointe Development into compliance with their DA; and thanked staff for the update. 4. DISCUSS TRAFFIC STUDY FOR ADAMS STREET NEAR LA PALMA DRIVE Public Works Director/City Engineer McKinney and Traffic Engineer Consultant Libring presented the staff report, which is on file in the Clerk’s Office. WRITTEN PUBLIC COMMENTS were received from the citizens listed below in alphabetical order, prior to the adjournment of the meeting at 12:04 a.m., including those received during the live meeting, and have been distributed to Council and incorporated into the agenda packet: 1. Church, Daniel (La Quinta) – provided recommendations to achieve pedestrian safety when crossing Adams St. 2. Gray, Richard (La Quinta) – provided recommendations to achieve pedestrian safety when crossing Adams St. 3. Klempa, Stephen (La Quinta) – provided recommendations to achieve pedestrian safety when crossing Adams St. Council discussed safety concerns related to painting a crosswalk as opposed to the road diet; performance of an informal pedestrian count at the intersection; no pedestrian related accidents reported in the last five years; opposition towards installing the self-closing gate at Adams Park; lowering speed limits on certain segments of the street and conducting a speed survey; the use of Gas Tax funds to provide funding for the road diet; and the timing of construction. 66 CITY COUNCIL MINUTES Page 15 of 16 October 20, 2020 SPECIAL JOINT STUDY SESSION – LA QUINTA CITY COUNCIL & PLANNING COMMISSION   Council spoke in general support of implementing a road diet on Adams Street between Fred Waring Drive and Miles Avenue whereby one travel lane in each direction is eliminated; continuing to enforce the speed limit; removing the option to install self-closing gates at Adams Park; and conducting a speed survey after the road diet to reevaluate the speed limits at certain segments of Adams Street. DEPARTMENTAL REPORTS All reports are on file in the City Clerk’s Office. Council thanked the Riverside County Fire Department for revising their Departmental Report to separate the mutual aid section showing the number of incidents where La Quinta resources are responding to other jurisdictions. MAYOR’S AND COUNCIL MEMBERS’ ITEMS Councilmember Radi attended and spoke on a panel with California Senator Melissa Melendez and Palm Springs Councilmember Middleton at the Civic Engagement Perspectives from California Leaders event for students discussing the importance of voting. Mayor Evans and Councilmember Sanchez attended the President Volunteer Service Awards reception recognizing recording artist and philanthropist Laura Angelini for her efforts to raise awareness and provide support and assistance with some of the toughest humanitarian and environmental challenges facing our world. REPORTS AND INFORMATIONAL ITEMS La Quinta’s representative for 2020, Mayor Evans reported on her participation in the following organizations meeting:  CVAG EXECUTIVE COMMITTEE  GREATER PALM SPRINGS CONVENTION AND VISITORS BUREAU La Quinta’s representative for 2020, Councilmember Fitzpatrick reported on her participation in the following organization meeting:  RIVERSIDE COUNTY TRANSPORTATION COMMISSION (RCTC) La Quinta’s representative for 2020, Councilmember Radi reported on his participation in the following organization meeting:  CVAG TRANSPORTATION COMMITTEE 67 CITY COUNCIL MINUTES Page 16 of 16 October 20, 2020 SPECIAL JOINT STUDY SESSION – LA QUINTA CITY COUNCIL & PLANNING COMMISSION   ADJOURNMENT There being no further business, a motion was made and seconded by Councilmembers Radi/Fitzpatrick to adjourn at 12:04 a.m. Motion passed unanimously. Respectfully submitted, NICHOLE ROMANE, Deputy City Clerk City of La Quinta, California 68 City of La Quinta CITY COUNCIL MEETING: May 4, 2021 STAFF REPORT AGENDA TITLE: ADOPT ORDINANCE NO. 592 AMENDING SECTIONS 14.16.040 AND 14.16.110 OF THE LA QUINTA MUNICIPAL CODE RESPECTIVELY RELATED TO UNAUTHORIZED ENCROACHMENT IN THE PUBLIC RIGHT-OF-WAY AND LIABILITY FOR DAMAGES RECOMMENDATION Adopt Ordinance No. 592 on second reading. EXECUTIVE SUMMARY Periodic updates to the La Quinta Municipal Code (Code) are necessary to align the Code with current best practices and update terms. Based on recommendation from the California Joint Powers Insurance Authority (CJPIA), the proposed amendments add language to the Code to define unlawful encroachments in the public right-of-way and liability for damages stemming thereof. FISCAL IMPACT – None. BACKGROUND/ANALYSIS Periodic updates to the Code are necessary to align the Code with current best practices, consolidate provisions, remove unnecessary detail, provide for flexibility, and update terms. The City has the authority to regulate public rights-of-way within the City. Based on recommendation from the CJPIA, the proposed Code amendments are intended to clarify as follows: 1)Section 14.16.040 – unlawful encroachments on public right-of-way is a violation of law subject to remediation, and 2)Section 14.16.110 – liability for damages is likewise assigned by operation of law to the owner of an unauthorized encroachment in a right-of-way. CONSENT CALENDAR ITEM NO. 5 69 ALTERNATIVES As Council approved this ordinance at first reading, staff does not recommend an alternative. Prepared by: Monika Radeva, City Clerk Approved by: Jon McMillen, City Manager 70 ORDINANCE NO. 592 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AMENDING SECTIONS 14.16.040 AND 14.16.110 OF THE LA QUINTA MUNICIPAL CODE RELATING TO UNAUTHORIZED ENCROACHMENTS IN THE PUBLIC RIGHT-OF-WAY AND LIABILITY FOR DAMAGES THEREFORE WHEREAS, Sections 14.16.040 and 14.16.110 of the La Quinta Municipal Code (LQMC) relate to unauthorized use of a public right-of-way without a valid encroachment permit, and liability for damages assigned to a permittee of an encroachment permit on a right-of-way, within the City; and WHEREAS, the City has the authority to regulate public rights-of-way within the City; and WHEREAS, based on the recommendation from the California Joint Powers Insurance Authority (CJPIA), the proposed amendments are intended to clarify that (i) unlawful encroachments on a public right-of-way is a violation of law subject to remediation, and (ii) liability for damages is likewise assigned by operation of law to the owner of an unauthorized encroachment in a right-of-way, as more particularly set forth in this Ordinance. NOW, THEREFORE, the City Council of the City of La Quinta does ordain as follows: SECTION 1. Sections 14.16.040 and 14.16.110 shall be amended as written in "Exhibit A" attached hereto and incorporated herein by reference. SECTION 2. Corrective Amendments: The City Council does hereby grant the City Clerk the ability to make minor amendments and corrections of typographical or clerical errors to "Exhibit A" to ensure consistency of all approved text amendments prior to the publication in the La Quinta Municipal Code. SECTION 3. Posting: The City Clerk shall, within 15 days after passage of this Ordinance, cause it to be posted in at least three public places designated by resolution of the City Council, shall certify to the adoption and posting of this Ordinance, and shall cause this Ordinance and its certification, together with proof of posting to be entered into the Book of Ordinances of the City of La Quinta. 71 Ordinance No. 592 Amendments to Sections 14.16.040 and 14.16.110 Relating to Unauthorized Encroachments on Right-of-Way Adopted: May 4, 2021 Page 2 of 5 SECTION 4. Effective Date: This Ordinance shall be in full force and effect thirty (30) days after its adoption. SECTION 5. Severability: If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each and every section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more section, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared unconstitutional. PASSED, APPROVED and ADOPTED, at a regular meeting of the La Quinta City Council held this 4th day of May 2021 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ________________________ LINDA EVANS, Mayor City of La Quinta, California ATTEST: _______________________ MONIKA RADEVA, City Clerk City of La Quinta, California 72 Ordinance No. 592 Amendments to Sections 14.16.040 and 14.16.110 Relating to Unauthorized Encroachments on Right-of-Way Adopted: May 4, 2021 Page 3 of 5 (CITY SEAL) APPROVED AS TO FORM: ___________________________ WILLIAM H. IHRKE, City Attorney City of La Quinta, California 73 Ordinance No. 592 Amendments to Sections 14.16.040 and 14.16.110 Relating to Unauthorized Encroachments on Right-of-Way Adopted: May 4, 2021 Page 4 of 5 Chapter 14.16 ENCROACHMENTS 14.16.040 Acts requiring permit. A.No persons shall encroach or cause to be made any encroachment of any nature whatever within, upon, over or under the limits of any right-of-way, or make or cause to be made any alteration of any nature within, upon, over or under the limits of any right-of-way, or make or cause to be made any alteration of any nature within, upon, over or under such right-of-way, or construct, or put upon, maintain or leave thereon, or cause to be constructed, put on, maintained or left thereon, any obstruction or impediment of any nature whatever, or remove, cut or trim trees thereon, or set a fire thereon, or place on, over or under such right-of-way any pipeline, conduit or other fixtures, or move over or cause to be moved over the surface of any right-of-way or over any bridge, viaduct or other structure maintained by the city any vehicle or combination of vehicles or other object of dimension or weight prohibited by law or having other characteristics capable of damaging the right-of-way, or place any structure, wall, culvert or similar encroachment, or make any excavation or embankment in such a way as to endanger the normal usage of the right-of-way, without having first obtained a permit as required by this chapter. (Ord. 10 § 1, 1982) B. Encroachments placed, installed, constructed or maintained without authorization from the city are unlawful and the owner of the encroachment shall either remove it at their sole expense or obtain authorization under this chapter or other applicable provision of this code. The director shall have the authority to send written notice notifying the owner of the unlawful encroachment. If the owner does not remove the unlawful encroachment and restore the right-of-way, or apply for authorization to maintain the encroachment with a permit issued pursuant to this chapter or other applicable permit issued by the city or recorded agreement with the city, within thirty (30) days of the city’s notification, the city shall have the right to immediately remove the illegal encroachment and restore the right-of-way, and the owner shall be liable for all of the city's direct and indirect costs and expenses. This subsection B shall be in addition to any other rights and remedies available to the city under this code or applicable federal or state law. 14.16.110 Liability for damages. A. The permittee shall be responsible for all liability imposed by law for personal injury or property damage caused by work permitted and done by permittee under the permit, or proximately caused by failure on permittee's part to perform his or her obligations under such permit in respect to maintenance. If any claim of such liability is made against the city, its officers or employees, permittee shall defend, indemnify and hold them, and each of them, harmless from such claim insofar as permitted by law. (Ord. 10 § 1, 1982) B. The owner of an encroachment not authorized by permit shall be responsible for all liability for personal injury or property damage proximately caused by the owner relating to the placement, installation, construction, or maintenance of the unauthorized encroachment, or proximately caused by failure on the owner’s part to perform his or her obligations to maintain and repair such encroachment. If any claim of such liability is made against the city, its officers or employees, the owner shall defend, indemnify and hold them, and each of them, harmless from such claim insofar as permitted by law. EXHIBIT A 74 Ordinance No. 592 Amendments to Sections 14.16.040 and 14.16.110 Relating to Unauthorized Encroachments on Right-of-Way Adopted: May 4, 2021 Page 5 of 5 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LA QUINTA ) I, MONIKA RADEVA, City Clerk of the City of La Quinta, California, do hereby certify the foregoing to be a full, true, and correct copy of Ordinance No. 592 which was introduced at a regular meeting on the 20th day of April 2021, and was adopted at a regular meeting held on the ___ day of __________ 2021, not being less than 5 days after the date of introduction thereof. I further certify that the foregoing Ordinance was posted in three places within the City of La Quinta as specified in the Rules of Procedure adopted by City Council Resolution No. 2015-023. _______________________ MONIKA RADEVA, City Clerk City of La Quinta, California DECLARATION OF POSTING I, MONIKA RADEVA, City Clerk of the City of La Quinta, California, do hereby certify that the foregoing ordinance was posted on ______________, 2021, pursuant to Council Resolution. _______________________ MONIKA RADEVA, City Clerk City of La Quinta, California 75 76 City of La Quinta CITY COUNCIL MEETING: May 4, 2021 STAFF REPORT AGENDA TITLE: ADOPT ORDINANCE NO. 593 AMENDING THE LA QUINTA MUNICIPAL CODE BY REMOVING REFERENCE TO A “DARK SKY ORDINANCE” FROM SECTION 5.80.060 RECOMMENDATION Adopt Ordinance No. 593 on second reading. EXECUTIVE SUMMARY Periodic updates to the La Quinta Municipal Code (Code) are necessary to align the Code with current best practices and update terms. The proposed amendments remove reference in Section 5.80.060 of the Code to a “dark sky ordinance,” which is a colloquially used term, and not an official title of any City ordinance. FISCAL IMPACT – None. BACKGROUND/ANALYSIS Periodic updates to the Code are necessary to align the Code with current best practices, consolidate provisions, remove unnecessary detail, provide for flexibility, and update terms. The City has the authority to regulate businesses operating within the City; and Section 5.80.060 of the Code regulates sexually oriented businesses within the City, including parking lot lighting requirements. The proposed Code amendments remove reference to a “dark sky ordinance,” which is used colloquially for reference to the City’s limits on street and parking lot lighting to reduce ambient light and glare interfering with the desert sky at night, but it is not an official title of any City ordinance. ALTERNATIVES As Council approved this ordinance at first reading, staff does not recommend an alternative. Prepared by: Monika Radeva, City Clerk Approved by: Jon McMillen, City Manager CONSENT CALENDAR ITEM NO. 6 77 78 ORDINANCE NO. 593 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AMENDING SECTION 5.80.060 OF THE LA QUINTA MUNICIPAL CODE REMOVING REFERENCES TO A DARK SKY ORDINANCE WHEREAS, Section 5.80.060 of the La Quinta Municipal Code (LQMC) regulates sexually oriented businesses within the City, including parking lot lighting requirements; and WHEREAS, the City has the authority to regulate businesses operating within the City; and WHEREAS, the proposed amendments are to remove references in the LQMC to a “dark sky ordinance,” which is used colloquially for reference to the City’s limits on street and parking lot lighting so as to reduce ambient light and glare interfering with the desert sky at night, but is not an official title of any City ordinance. NOW, THEREFORE, the City Council of the City of La Quinta does ordain as follows: SECTION 1. Section 5.80.060 shall be amended as written in "Exhibit A" attached hereto and incorporated herein by reference. SECTION 2. Corrective Amendments: The City Council does hereby grant the City Clerk the ability to make minor amendments and corrections of typographical or clerical errors to "Exhibit A" to ensure consistency of all approved text amendments prior to the publication in the La Quinta Municipal Code. SECTION 3. Posting: The City Clerk shall, within 15 days after passage of this Ordinance, cause it to be posted in at least three public places designated by resolution of the City Council, shall certify to the adoption and posting of this Ordinance, and shall cause this Ordinance and its certification, together with proof of posting to be entered into the Book of Ordinances of the City of La Quinta. SECTION 4. Effective Date: This Ordinance shall be in full force and effect thirty (30) days after its adoption. 79 Ordinance No. 593 Amendments to Section 5.80.060 Removing Dark Sky Ordinance Reference Adopted: May 4, 2021 Page 2 of 9 SECTION 5. Severability: If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each and every section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more section, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared unconstitutional. PASSED, APPROVED and ADOPTED, at a regular meeting of the La Quinta City Council held this 4th day of May 2021 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ________________________ LINDA EVANS, Mayor City of La Quinta, California ATTEST: _______________________ MONIKA RADEVA, City Clerk City of La Quinta, California (CITY SEAL) 80 Ordinance No. 593 Amendments to Section 5.80.060 Removing Dark Sky Ordinance Reference Adopted: May 4, 2021 Page 3 of 9 APPROVED AS TO FORM: ___________________________ WILLIAM H. IHRKE, City Attorney City of La Quinta, California 81 Ordinance No. 593 Amendments to Section 5.80.060 Removing Dark Sky Ordinance Reference Adopted: May 4, 2021 Page 4 of 9 Chapter 5.80 SEXUALLY ORIENTED BUSINESSES 5.80.060 Findings—Requirements. The city shall issue a sexually oriented business permit within the later of forty days of receipt of a completed application or ten days from receipt of the complete investigation report in Section 5.80.050 if it finds that: A. The sexually oriented business shall be located in the city’s SOB overlay zone zoning districts.* * The distance of separation required by subsections B through F of this section shall be made by using a straight line, without regard to intervening structures or objects, from the nearest external structural wall of the proposed sexually oriented business to the nearest property line of the lot upon which is located a residential use, religious institution, park, recreation area, public building, family-oriented restaurant or school. The measurement taken when the proposed use is located on the same lot as an already existing sexually oriented business, shall be the distance between the two shall be measured in a straight line between the nearest external structural walls of each use without regard to intervening structures or objects. No request for subdivision, reparcelization or lot line adjustment shall be approved where the primary purpose is to avoid the intent of these distance requirements. B. The sexually oriented business shall not be located within seven hundred fifty feet of any residential zone. C. The sexually oriented business shall not be located within one thousand five hundred feet of a school. “School” means institutions for teaching or caring for minor children, e.g., child care facilities, preschool, day schools, elementary schools, secondary schools, high schools; and institutions of higher learning receiving approved graduates of preparatory school, and offering instructions in art, letters and science, leading to the bachelor’s degree or master’s degree (e.g., colleges and universities). D. The sexually oriented business shall not be located within one thousand five hundred feet of any lot upon which there is properly located a public park, recreation area or public building; nor within one thousand feet of any lot used by a religious institution for religious activities. E. The sexually oriented business shall not be located within seven hundred fifty feet of any other sexually oriented business including sexually oriented businesses located on the same parcel. In no event may more than one sexually oriented business be located in the same structure. F. The sexually oriented business shall not be located within seven hundred fifty feet of any business involving on-premises sale of liquor or alcoholic beverages, nor shall it be located within seven hundred fifty feet of a family-oriented restaurant. (A “family-oriented restaurant” means any restaurant which provides specific inducement to encourage attendance by children such as: play equipment, promotional toy items, child’s menu separate from regular menu.) G. The sexually oriented business shall not be located within any structure for which a part is within one hundred feet of the ultimate right-of-way of a major, primary or secondary thoroughfare EXHIBIT A 82 Ordinance No. 593 Amendments to Section 5.80.060 Removing Dark Sky Ordinance Reference Adopted: May 4, 2021 Page 5 of 9 as defined in the general plan of the city. For the purpose of this chapter, a property fronts on such a road if the property and any portion of the right-of-way for the road have a contiguous boundary. H. The parking requirements for sexually oriented businesses shall be as follows: 1. Bookstores and retail establishments: One parking space per three hundred square feet of gross floor area; 2. Theaters: One parking space per three seats, if seats are fixed, or one parking space per twenty- four square feet of gross floor area; 3. Cabarets: One parking space per three seats, if seats are fixed, or one parking space per thirty- five square feet of gross floor area; 4. Motion picture arcade: One parking space per individual viewing area plus one parking space per employee; 5. Motel/hotel: One parking space per guest room for first fifty rooms; three-quarters parking space per guest room thereafter. I. The sexually oriented business shall not be located completely or partially within any mobile structure or pushcart. J. The sexually oriented business shall not stage any special events, promotions, festivals, concerts or similar events which would increase the demand for parking beyond the approved number of spaces for the particular use. K. The sexually oriented business shall provide a security system that visually records and monitors all parking lot areas. All indoor areas of the sexually oriented business which are accessible to the public shall be open to public view at all times with the exception of restroom facilities. “Accessible to the public” shall include, but not be limited to, those areas which are only accessible to members of the public who pay a fee and/or join a private club or organization. L. The sexually oriented business complies with the city’s sign regulations. M. The sexually oriented business complies with the development and design requirements of the zone in which it is to be located. N. The sexually oriented business shall not display any sexually oriented material or sexually oriented merchandise which would be visible from any location other than from within the sexually oriented business. O. The sexually oriented business shall not allow admittance to any person under the age of eighteen if no liquor is served, or under the age of twenty-one if liquor is served. P. With the exclusion of sexually oriented hotels, the sexually oriented business shall not operate between the hours of one a.m. and nine a.m. 83 Ordinance No. 593 Amendments to Section 5.80.060 Removing Dark Sky Ordinance Reference Adopted: May 4, 2021 Page 6 of 9 Q. The applicant shall not have been convicted of a crime relating to a specified criminal act for which: 1. Less than two years have elapsed since the date of conviction or the date of release from confinement, whichever is the later date, if the conviction is of a misdemeanor offense for “specified criminal acts”; 2. Less than five years have elapsed since the date of conviction or the date of release from confinement, whichever is the later date, if the conviction is of a felony offense for “specified criminal acts”; 3. Less than five years have elapsed since the date of conviction or the date of release from confinement, whichever is the later date, if the convictions are of two or more misdemeanors for “specified criminal acts” occurring within any twenty-four-month period; 4. The fact that a conviction is being appealed shall have no effect on disqualification of the applicant; 5. An applicant who has been convicted of the above may qualify for a sexually oriented business permit only when the time period required above in this section has elapsed. R. The sexually oriented business shall provide separate restroom facilities for male and female patrons. The restrooms shall be free from sexually oriented materials and sexually oriented merchandise. Only one person shall be allowed in the restroom at any time, unless otherwise required by law, in which case the sexually oriented business shall employ a restroom attendant of the same sex as the restroom users who shall be present in the restroom during operating hours. The attendant shall prevent any person(s) from engaging in any specified sexual activities within the restroom and shall ensure that no person of the opposite sex is permitted in the restroom. S. The interior of the sexually oriented business which has individual viewing areas, shall be configured such that there is unobstructed view using the naked eye, unaided by any other devices, of every public area of the premises, including, but not limited to, the interior of all individual viewing areas, from a permanent security station physically demarked in the establishment which is no larger than thirty-two square feet of floor area with no single dimension being greater than eight feet in a public portion of the establishment. No public area, including, but not limited to, the interior of any individual viewing area, shall be obscured by any door, curtain, wall, two-way mirror or other device which would prohibit a person from seeing into the interior of the individual viewing area from the manager’s station. A security guard shall be stationed in the security station at all times the business is in operation or open to the public in order to enforce all rules and regulations. No individual viewing area shall be designed or operated to permit occupancy of more than one person at a time. “Individual viewing area” means any area designed for occupancy of one person for the purpose of viewing live performances, pictures, movies, videos or other presentations. 84 Ordinance No. 593 Amendments to Section 5.80.060 Removing Dark Sky Ordinance Reference Adopted: May 4, 2021 Page 7 of 9 T. All areas of the sexually oriented business shall be illuminated at a minimum of the following footcandles, minimally maintained and evenly distributed at ground level: Bookstores 20 footcandles Retail establishments 20 footcandles Theater 5 footcandles (except during performances, at which time the lighting shall be at least 1.25 footcandles) Cabaret 5 footcandles Motion picture arcade 10 footcandles in public areas Individual viewing booths 1.25 footcandles Motion picture theater 10 footcandles (except during performances at which time the lighting shall be at least 1.25 footcandles) Motel/hotel 20 footcandles in public areas U. At least one security guard in addition to the manager, is required for every fifty patrons at sexually oriented businesses providing live entertainment. The manager may act as the security guard where less than fifty patrons are present. V. The individual viewing areas of the sexually oriented business shall be operated and maintained with no holes, openings or other means of direct visual or physical access between the interior space of two or more individual viewing areas. W. A traffic study has been prepared for the sexually oriented business in conformance with industry standards. The applicant shall demonstrate that the project will not result in a reduction in any roadway level of service below that level of service designated on the general plan for that roadway. X. The sexually oriented business shall comply with the noise element of the general plan, interior and exterior noise standards and any mitigation measures necessary to reduce the project’s noise impacts to the city’s articulated noise standards. Y. The sexually oriented business shall comply with all building and construction standards of the Uniform Building Code, Chapter 24 hereof, Title 24 of the California Code of Regulations, and all other federal, state and city-adopted standards for the specific use. 85 Ordinance No. 593 Amendments to Section 5.80.060 Removing Dark Sky Ordinance Reference Adopted: May 4, 2021 Page 8 of 9 Z. Whenever live entertainment is provided, patrons shall be physically separated from sexually oriented entertainers by a floor to ceiling or, if appropriate, stage floor to ceiling, permanent, solid barrier and a buffer zone of at least three feet. “Live entertainment,” for the purposes of this requirement, means any existent display by a human being which is characterized by an emphasis on specified anatomical parts or specified sexual activities. The three-foot buffer zone provision shall not apply to an individual viewing area where the stage is completely separated from the individual viewing area by a floor to ceiling permanent, solid barrier. AA. No building, premises, structure, or other facility shall be permitted to contain more than one type of sexually oriented business as such types of sexually oriented business are defined in Section 5.80.020. For the purposes of this section, the catchall phrase “sexually oriented business” shall not be considered a single type of sexually oriented business. BB. No individual viewing area may be occupied by more than one person at any one time. CC. No patron shall come into direct or indirect physical contact with any sexually oriented entertainer. DD. All building openings, entries, windows, etc., shall be located, covered or screened in such a manner as to prevent a view into the interior from outside the building. EE. Lighting in Parking Lots. Lighting shall be required and designed to illuminate all off-street parking areas serving such use for the purpose of increasing the personal safety of store patrons and reducing the incidence of vandalism and theft. All such lighting shall comply with Section 9.100.150 and subsection J of Section 9.150.080 (or successor sections), as applicable. FF. Amplified Sound. No loudspeakers or sound equipment shall be used by a sexually oriented business for the amplification of sound to a level discernible by the public beyond the wall of the building in which such use is conducted. GG. The building entrance to the adult use shall be clearly and legibly posted by a notice indicating that minors are precluded from entering the premises. As used in this subsection, “minor” means an individual less than eighteen years of age. HH. Commercial businesses licensed or operating within the city shall not display or exhibit any material in a manner which exposes to public view photographs or illustrations of specified sexual activities or one or more naked adults in poses which emphasize or direct the viewer’s attention to the subject’s genitals. As used in this subsection, “exposes to public view” means exposes to the view of the person outside the building in which the commercial business is located. II. The permit required by this chapter shall be displayed in a prominent area. The city shall deny the requested permit in writing if the above findings have not been made and shall state reasons for the denial. (Ord. 526 § 15, 2015; Ord. 270 § 2, 1995) 86 Ordinance No. 593 Amendments to Section 5.80.060 Removing Dark Sky Ordinance Reference Adopted: May 4, 2021 Page 9 of 9 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LA QUINTA ) I, MONIKA RADEVA, City Clerk of the City of La Quinta, California, do hereby certify the foregoing to be a full, true, and correct copy of Ordinance No. 593 which was introduced at a regular meeting on the 20th day of April 2021, and was adopted at a regular meeting held on the ___ day of ______ 2021, not being less than 5 days after the date of introduction thereof. I further certify that the foregoing Ordinance was posted in three places within the City of La Quinta as specified in the Rules of Procedure adopted by City Council Resolution No. 2015-023. _______________________ MONIKA RADEVA, City Clerk City of La Quinta, California DECLARATION OF POSTING I, MONIKA RADEVA, City Clerk of the City of La Quinta, California, do hereby certify that the foregoing ordinance was posted on __________, 2021, pursuant to Council Resolution. _______________________ MONIKA RADEVA, City Clerk City of La Quinta, California 87 88 City of La Quinta CITY COUNCIL MEETING: May 4, 2021 STAFF REPORT AGENDA TITLE: ACCEPT OFF-SITE AND ON-SITE IMPROVEMENTS ASSOCIATED WITH PARCEL MAP NO. 37683, RESIDENCE INN BY MARRIOTT, LOCATED SOUTH OF HIGHWAY 111 AND NORTH OF VISTA CORALINA LANE RECOMMENDATION Accept the off-site and on-site improvements associated with Parcel Map No. 37683, Residence Inn by Marriott; authorize staff to release performance security upon recordation of an instrument approved by the City Manager to memorialize the reciprocal access to the Komar Desert Center; and direct staff, after recordation of the instrument to memorialize reciprocal access to the Komar Desert Center, to release the labor and materials security 90 days after City Council acceptance of the improvements.  EXECUTIVE SUMMARY Residence Inn by Marriott hotel is located south of Highway 111 and north of Vista Coralina Lane (Attachment 1). LQ Hospitality Group, LLC (Developer) has requested release of the performance, labor, and materials securities. Parcel Map No. 37683 (PM 37683) was subdivided into two parcels. The Developer has completed the required off-site and on-site improvements for Parcel 1 of PM 37683. The portion of the reciprocal access on the Komar Desert Center property will be completed by the future developer of Parcel 2 of PM 37683. Thus, staff recommends acceptance, and release of the performance, labor, and materials securities. FISCAL IMPACT – None. BACKGROUND/ANALYSIS The Developer has completed the off-site and on-site improvements required by Parcel 1 of PM 37683. The completed improvements include grading, pavement, curb and gutter, curb ramps, signing and striping, storm drains, catch basins, water and sewer improvements, landscaping, and survey monumentation. Staff inspected the completed improvements and verified they meet City-approved plans and standards. CONSENT CALENDAR ITEM NO. 7 MOTION WAS REVISED BY STAFF DURING CONFIRMATION OF AGENDA 89 PM 37683 was subdivided into two parcels. One parcel is occupied by the Residence Inn by Marriott hotel and the other parcel is retained by the City for future development. The potential future reciprocal access to the adjacent Komar Desert Center is identified in the Komar Specific Plan and the traffic impact analysis completed for the Dune Palms Specific Plan. The City Engineer has determined that the reciprocal access between the hotel and Komar Desert Center can be postponed as long as the City-owned parcel remains vacant and unimproved. However, a recorded instrument approved by the City is needed to memorialize the requirement for the future developer of the City- owned parcel to obtain approval from Komar Desert Center to complete the reciprocal access on their side prior to development of the City-owned parcel. ALTERNATIVES Accepting improvements is a ministerial action necessary for the release of the improvement securities. Since the improvements have been inspected and meet City standards, staff does not recommend an alternative action. Prepared by: Amy Yu, Associate Engineer Approved by: Bryan McKinney, P.E., Public Works Director/City Engineer Attachment: 1. Vicinity Map 90 V I C I N I T Y M A P NOT TO SCALE ATTACHMENT 1 PARCEL MAP NO. 37683 AVE 48 91 92 City of La Quinta CITY COUNCIL MEETING: May 4, 2021 STAFF REPORT AGENDA TITLE: ADOPT RESOLUTION TO APPROVE TIME EXTENSION TO COMPLETE ON-SITE IMPROVEMENTS FOR PALO VERDE II RESIDENTIAL DEVELOPMENT (TRACT MAP NO. 33336) LOCATED ON THE NORTH SIDE OF AVENUE 58 AND WEST OF MADISON STREET RECOMMENDATION Adopt a resolution to approve time extension to complete on-site improvements as specified in the Subdivision Improvement Ag reement for Tract Map No. 33336, Palo Verde II, to May 4, 2022. EXECUTIVE SUMMARY •Palo Verde II is a residential development located on the north side of Avenue 58 and west of Madison Street (Attachment 1). •Lennar Homes of California (Developer) has requested a time extension to the Subdivision Improvement Agreement to complete the on-site improvements. FISCAL IMPACT There is no fiscal impact to the City . The Developer posted sufficient bonds that guarantee construction of the improvements. BACKGROUND/ANALYSIS In 2009, Council approved the tract map and Subdivision Improvement Agreement for Palo Verde II residential development. The Developer has constructed the basin landscaping and graded the site, but the majority of the on-site improvements have not been completed. No homes have been constructed. In a letter dated April 6, 2021, Developer requested a time extension to complete remaining improvements (Attachment 2). No requests have been received to complete remaining on -site improvements, therefore Staff recommends approval of a one-year time extension. CONSENT CALENDAR ITEM NO. 8 NO. 93 ALTERNATIVES Council may elect not to approve this time extension. Prepared by: Amy Yu, Associate Engineer Approved by: Bryan McKinney, P.E., Public Works Director / City Engineer Attachments: 1. Vicinity Map 2. Letter from Lennar Homes of California dated April 6, 2021 94 RESOLUTION NO. 2021 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, GRANTING EXTENSION OF TIME TO MAY 4, 2022, FOR THE COMPLETION OF THE ON-SITE IMPROVEMENTS AS SPECIFIED IN THE SUBDIVISION IMPROVEMENT AGREEMENT FOR TRACT MAP NO. 33336, PALO VERDE II WHEREAS, the City Council approved the Subdivision Improvement Agreement (SIA) for Tract Map No. 33336, on January 20, 2009; and WHEREAS, Section 6. Completion of Improvements, of the approved SIA requires that the developer begin construction of the improvements within ninety days and complete the construction within twelve months after the approval of the Agreements; and WHEREAS, failure by the developer to complete construction of on- site improvements by October 7, 2015 shall constitute cause for the City, in its sole discretion and when it deems necessary, to declare the Subdivider in default of the approved agreement; and WHEREAS, Section 8. Time Extension, of the approved SIA allows for, at the City Council’s sole and absolute discretion, an extension of time for completion of the improvements with additions or revisions to the terms and conditions of the Agreement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: SECTION 1. The time for the completion of the on-site improvements as required by the approved SIA is extended to May 4, 2022. SECTION 2. The time extension for completing the on-site improvements shall expire when City offices close for regular business o n May 4, 2022 if the installation of the on-site improvements has not been completed. SECTION 3. The provided security amount as required in the approved SIA is satisfactory. No additional securities are required. 95 Resolution No. 2 021- Tract Map No. 33336 – Time Extension Adopted: May 4, 2021 Page 2 of 2 SECTION 4. All other terms, responsibilities, and conditions as listed in the approved SIA shall remain in full force and effect. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held on this 4th day of May 2021, by the following vote: AYES: NOES: ABSENT: ABSTAIN: _______________________ LINDA EVANS, Mayor City of La Quinta, California ATTEST: ________________________ MONIKA RADEVA, City Clerk City of La Quinta, California (CITY SEAL) APPROVED AS TO FORM: ___________________________ WILLIAM H. IHRKE, City Attorney City of La Quinta, California 96 ATTACHMENT 1 TM 33336 palo verde ii V I C I N I T Y M A P NOT TO SCALE 97 98 Lennar Homes of California, Inc. – Inland Division 980 Montecito Drive, Suite 206, Corona CA 92879 Phone: 951-736-5500 April 6th, 2021 Ms. Amy Yu Associate Engineer City of La Quinta 78495 Calle Tampico La Quinta, CA 92253 Re: Extension of Time – Palo Verde Tr. 33336 Subdivision Improvement Agreement Dear Amy, Lennar Homes of California Inc. would like to request an extension of time for the completion of subdivision improvements within the Palo Verde Tr. 33336. It is our understanding that the Subdivision Improvement Agreement for this tract has expired. At this time the projected schedule for the completion of the remaining improvements within Tr. 33336 is December 15th, 2022. Please respond in writing to confirm that the City of La Quinta has granted an extension of the Subdivision Improvement Agreement for Tr. 33336. Thank you for your assistance in this matter. Sincerely, William Sacriste Director of Forward Planning Lennar Homes of California, Inc. Inland Division william.sacriste@lennar.com (951) 757-0274 99 100 City of La Quinta CITY COUNCIL MEETING: May 4, 2021 STAFF REPORT AGENDA TITLE: ADOPT RESOLUTION TO APPROVE FISCAL YEAR 2021/22 INVESTMENT POLICY RECOMMENDATION Adopt a resolution to approve the Fiscal Year 2021/22 Investment Policy. EXECUTIVE SUMMARY •The La Quinta Municipal Code (Code) requires that the Financial Advisory Commission (FAC) annually review the City’s Investment Policy (Policy). •The FAC reviewed and approved the draft Policy for 2021/22 (Attachment 1) on April 7, 2021. FISCAL IMPACT - None. BACKGROUND For Fiscal Year (FY) 2020/21, the City submitted the Policy for certification by the Association of Public Treasurers of the United States and Canada (APT US&C) and was awarded their Investment Policy Certificate of Excellence (Attachment 1). This follows two years of certifications awarded from the California Municipal Treasurers Association (CMTA). There were no new regulatory changes in FY 2020/21 that affected the City’s policy. Therefore, staff recommends no changes to the current policy other than the following minor edits which are identified in the Draft Investment Policy for Fiscal Year 2020/21 (red lined) (Attachment 2) as follows: •Section III Scope: Removed reference to Sections XVI and XVII; the information found in those sections had already been moved under Section III in a previous policy revision, and the current sections numbered XVI and XVII do not relate to scope. •Section III Scope: Removed the word “new” in reference to arbitrage restrictions, as this has been part of the United States Tax Code for many years now. Also removed redundant wording regarding yield maximization. CONSENT CALENDAR ITEM NO. 9 101 •Section IX Authorized Financial Dealers: Added “or designee” to the review of documentation provided by broker/dealers, to match Appendix C Segregation of Major Investment Responsibilities. •Section IX Authorized Financial Dealers: Removed reference to SSAE 16, as this has been superseded by SSAE 18 (Statement on Standards for Attestation Engagements), and the reports that are issued under the standard are System and Organizational Control (SOC) reports. •Section X Permissible Deposits and Investments: Added a link to the California Government Code for easy reference. •Section X Permissible Deposits and Investments: Replaced specific amounts noted under Prime Commercial Paper Section with reference to the State Code, to eliminate confusion when amendments to 53601(h) sunset in 2026. ALTERNATIVES The policy has been recognized by APT US&C and CMTA as being comprehensive as written, and therefore no alternatives are recommended at this time. Prepared by: Rosemary Hallick, Financial Services Analyst Approved by: Claudia Martinez, Interim Finance Director Attachment: 1. Letter from APT US&C for policy certification 2.Draft Investment Policy for Fiscal Year 2021/22 (red-lined) 102 RESOLUTION NO. 2021 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA APPROVING AND ADOPTING FISCAL YEAR 2021/2022 INVESTMENT POLICY WHEREAS, the general purpose of the Investment Policy is to provide the rules and standards users must follow in investing funds of the City of La Quinta; and WHEREAS, the primary objectives, in order of priority, of the City of La Quinta’s investment activity shall be: Safety of principal is the foremost objective of the investment program. Investments of the City of La Quinta shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. The investment portfolio shall be designed with the objective of attaining a market rate of return or yield throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs; and WHEREAS, authority to manage the City of La Quinta’s investment portfolio is derived from the City’s municipal code, management responsibility for the investment program is delegated to the City Treasurer, who shall establish and implement written procedures for the operation of the City’s investment program consistent with the Investment Policy for each Fiscal Year; and WHEREAS, the Investment Policy will be adopted before the end of June of each year and amended as considered necessary. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta as follows: SECTION 1. This Resolution supersedes all prior Investment Policy resolutions adopted by the City Council. SECTION 2. The City Council hereby adopts the Fiscal Year 2021/2022 Investment Policy attached hereto as “Exhibit A” and incorporated herewith by this reference. 103 Resolution No. 2021- Investment Policy for Fiscal Year 2021/2022 Adopted: Page 2 of 2 SECTION 3. Severability – if any provisions of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The City Council hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof. SECTION 4. This Resolution shall become effective upon adoption. The Investment Policy adopted by this Resolution shall go into effect July 1, 2021. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council, held on this 4th day of May 2021 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ________________________ LINDA EVANS, Mayor City of La Quinta, California ATTEST: __________________________ Monika Radeva, City Clerk City of La Quinta, California (CITY SEAL) APPROVED AS TO FORM: ___________________________ WILLIAM H. IHRKE, City Attorney City of La Quinta, California 104 2021 22CITY OF LA QUINTA INVESTMENT POLICY RESOLUTION NO. 2021-XXX EXHIBIT A 105 Exhibit A Fiscal Year 2021/2022 Table of Contents Section Topic Page Executive Summary 1 I General Purpose 2 II Investment Policy 2 III Scope 2 IV Objectives 3 V Maximum Maturities 5 VI Prudence 5 VII Authority 5 VIII Ethics and Conflicts of Interest 6 IX Authorized Financial Dealers and Institutions 6 X Permissible Deposits and Investments 7 XI Investment Pools 10 XII Payment and Custody 10 XIII Interest Earning Distribution Policy 11 XIV Internal Controls and Independent Auditors 11 XV Reporting Standards 12 XVI Review of Investment Portfolio 13 XVII Financial Advisory Commission – City of La Quinta 13 XIII Investment Policy Adoption 13 Appendices Topic Page A Municipal Code Ordinance 2.70 – Financial Advisory Commission 14 B Municipal Code Ordinance 3.08 – Investment of Moneys and Funds 16 C Segregation of Major Investment Responsibilities 18 D Listing of Approved Financial Institutions 19 E Investment Management Process and Risk 20 F Glossary 22 106 Page 1 of 27 CITY OF LA QUINTA Investment Policy Fiscal Year 2021/2022 EXECUTIVE SUMMARY The general purpose of this Investment Policy is to provide the rules and standards that must be followed in administering the City of La Quinta's (the “City”) deposits and investments. The City's Investment Policy conforms to all state and local statutes and applies to all deposits and investments of the City, with the exception of bond proceeds and those noted in section III herein. It is the City's policy to deposit and invest public funds in a manner that shall provide safety of principal, liquidity to meet the City’s obligations and requirements that may be reasonably anticipated, and a risk-based market rate of return. Authority to manage the City's investment portfolio is derived from the City Municipal Code. Management responsibility for the investment program is delegated to the City Treasurer, who shall establish and implement written procedures for the operation of the City's investment program consistent with the Investment Policy. The City Manager, City Treasurer, and city employees involved in the City's banking and investment process shall conduct the City's business in an ethical manner and refrain from any activity or relationship that may be, or have the appearance of, a conflict of interest. The Investment Policy shall be adopted by resolution of the La Quinta City Council on an annual basis, before the end of each fiscal year (June). 107 Page 2 of 27 City of La Quinta Statement of Investment Policy July 1, 2021 through June 30, 2022 Adopted by the City Council on May 4, 2021 I. GENERAL PURPOSE The general purpose of this document is to provide the rules and standards that must be followed in administering the City of La Quinta's deposits and investments. II. INVESTMENT POLICY It is the policy of the City of La Quinta to deposit and invest public funds in a manner that shall conform to all State and local statutes governing the investment of public funds and set forth the permissible deposits and investments of the City's funds and the limitations thereon. III. SCOPE Except noted below, this Investment Policy applies to all deposits and investments of the City of La Quinta, the Successor Agency to the City of La Quinta Redevelopment Agency, and the City of La Quinta Financing and Housing Authorities. These funds are reported in the City's Comprehensive Annual Financial Report (CAFR) and include all funds within the following fund types:  General  Special Revenue  Capital Projects  Debt Service  Enterprise  Internal Service  Trust and Agency  Any new fund types and fund(s) that may be created. Financial assets and investment activity not subject to this policy The City's Investment Policy does not apply to the following:  Cash and Investments raised from Conduit Debt Financing;  Funds held in trust in the City's name in pension or other post-retirement benefit programs;  Cash and Investments held in lieu of retention by banks or other financial institutions for construction projects; and  Short or long-term loans made to other entities by the City or Agency,  Short term (Due to/from) or long term (Advances from/to) obligations made either between the City and its funds or between the City and Agency.  Investment of bond proceeds: The City's Investment Policy shall not govern bond proceeds and bond reserve fund investments. California Code Section 108 Page 3 of 27 5922(d) governs the investment of bond proceeds and reserve funds in accordance with bond indenture provisions. Arbitrage Requirement - The US Tax Reform Act of 1986 requires the City to perform arbitrage calculations and return excess earnings to the US Treasury from investments of proceeds of bond issues sold after the effective date of this law. These arbitrage calculations may be contracted with an outside source to provide the necessary technical assistance to comply with this regulation. Investable funds subject to the 1986 Tax Reform Act will be kept segregated from other funds and records will be kept in a fashion to facilitate the calculations. The City's investment position relative to the arbitrage restrictions is to continue pursuing the maximum yield on applicable investments while ensuring the safety of capital and liquidity, and to rebate excess earnings, if necessary. IV. OBJECTIVES The objectives of the City's investment activity, in order of priority and importance, are: A. Safety of Principal Safety of principal is the foremost objective of the City's investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of principal of the overall portfolio in accordance with the permissible deposits and investments. The City shall endeavor to preserve its investment principal by making only permissible deposits and investments, undertaken in a controlled manner to minimize the possibility of loss or misappropriation through malfeasance or otherwise. Investments not backed by the full faith and credit of the United States Government shall be diversified by allocating assets between different types of permissible investments, maturities, and issuers as a means to mitigate credit risk and interest rate risk. Investment in any single security type or single financial institution shall be limited to the maximum percentages and/or dollar amounts as noted in Section X. 1. Credit Risk is the risk of loss from the failure of the security issuer or backer. Credit risk may be mitigated by: • Limiting investments to investment grade securities as permitted in Section X; and • Diversifying the issuers of the securities in the investment portfolio so that potential losses due to issuer failure or individual securities downgrades may be minimized. 2. Interest Rate Risk is the risk that market values of securities in the portfolio will decline due to changes in general interest rates. Interest rate risk may be mitigated by: 109 Page 4 of 27 • Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity; and • Investing operating funds primarily in shorter-term securities. 3. Liquidity Risk is the risk that a security cannot be liquidated because of its unique features or structure or because it is thinly traded. Liquidity risk is not a material issue for the City's portfolio because of the permissible deposits and investments (see Section X). A discussion of the City's investment process and risk is presented in Appendix E. B. Provide Liquidity The investment portfolio shall remain sufficiently liquid to meet all of the City's cash needs that may be reasonably anticipated. This is accomplished by structuring the portfolio so that sufficient liquid funds are available to meet anticipated demands. Furthermore, since all possible cash needs cannot be anticipated the portfolio should be diversified and consist of securities with active secondary or resale markets. The City's policy is to generally hold securities and other investments to maturity. However, securities may be sold prior to maturity under certain circumstances as follow: • A security with declining credit quality can be sold early to minimize loss of principal. • Unanticipated liquidity needs of the portfolio require that one or more securities be sold. • When a sale/repurchase is fiscally advantageous based on market conditions and fits the needs of the portfolio C. Yield a Risk-Based Market Rate of Return The City's investment portfolio shall be structured with the objective of yielding a risk-based market rate of return throughout budgetary and economic cycles. Return on investment is less important than the safety and liquidity objectives described above. The City's Investment Policy does not specify a single benchmark as a goal or target yield for a rate of return on its investment portfolio. The portfolio's rates of return will be influenced by several factors, including actions by the Federal Reserve Board, the marketplace, and overall economic perceptions and conditions. Performance Standards: As a basis for comparison only, the Treasurer's quarterly reports will display the rates of return on the three-month Bill, six-month Bill, the one and two-year U.S. Treasury Note, and the yield for the State Treasurer's Local Agency Investment Fund (LAIF). The Treasurer may use these or any other published rates of return that the Treasurer deems appropriate for comparison to the return on the City's investment portfolio. 110 Page 5 of 27 The investment portfolio shall be designed with the objective of obtaining a market rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs. V. MAXIMUM MATURITIES It is the City's policy to generally hold securities and other investments until maturity. This buy-and-hold policy shall not prevent the sale of a security as listed in section IV.B The general buy-and-hold strategy requires that the City's investment portfolio be structured so that sufficient liquid funds are available from maturing investments and other sources to meet all reasonably anticipated cash needs. The City shall follow Title 5 of the California Government Code §53601 (the “State Code”) regarding maximum maturities, in that “no investment shall be made in any security…that at the time of the investment has a term remaining to maturity in excess of five years”. VI. PRUDENCE and FIDUCIARY DUTY The City shall follow the State Code §53600.3 regarding fiduciary duty and the Prudent Investor Standard as follows: Except as provided in subdivision (a) of §27000.3, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law. VII. AUTHORITY Authority to manage the City's investment portfolio is derived from Chapter 3.08 of the City's Municipal Code. Management responsibility for the investment program is delegated to the City Treasurer for a period of one year pursuant to the City Council's annual adoption of the Investment Policy. The City Treasurer shall establish written procedures for the operation of the investment program consistent with the Investment Policy. Procedures should include reference to safekeeping, wire transfer agreements, banking service contracts, and collateral/depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may 111 Page 6 of 27 engage in an investment transaction except as provided under the terms of this Investment Policy and the procedures established by the City Treasurer. The City Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. VIII. ETHICS AND CONFLICTS OF INTEREST The City Manager, City Treasurer and City employees involved in the City's banking and investment process shall conduct the City's business in an ethical manner and refrain from any activity or relationship that may be, or have the appearance of, a conflict of interest. The City will maintain compliance with the procedures set forth in the Conflicts of Interest and Acceptance of Gifts and other Gratuities section of the City of La Quinta Personnel Manual and the City’s Municipal Code Chapter 2.60 Conflicts of Interest. Any questionable activity or relationship shall be reported immediately; reporting must be made in accordance with the personnel policies of the City and, until resolved, the officer or employee shall refrain from participating in the City's business related to the matter. The City Manager, City Treasurer, and City employees may conduct personal business with banks, brokers, and other financial institutions that are authorized to conduct business with the City provided that the terms of the activity to the accountholder with the City are the same as those that are available to the public in general, or to all employees as a result of contract negotiations. IX. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The City Treasurer maintains a listing of financial institutions which are approved for direct investment purposes, as well as a list of approved broker/dealers. 1. Broker/Dealers who desire to become bidders for direct investment transactions must supply the City with the following: • Current audited financial statements; • Proof of Financial Industry Regulatory Authority (FINRA) Certification; • Proof of State of California registration; • Resume of financial broker; and • Completion of the City of La Quinta Broker/Dealer Questionnaire, which contains a certification of having read the City's Investment Policy. The City Treasurer or designee shall evaluate the documentation submitted by the broker/dealer and independently verify existing reports on file for any firm and/or individual(s) conducting investment related business. The City Treasurer or designee will also contact the following agencies during the verification process: • Financial Industry Regulatory Authority (FINRA) Public Disclosure Report File (1-800- 289-9999). • State of California Department of Corporations (1-916-445-3062). 112 Page 7 of 27 A professional investment manager or management firm, if engaged by the City pursuant to Section X of this policy, may utilize their own list of approved broker/dealers on the condition that any such list is provided to the City upon request. All Broker/Dealers and financial institutions that provide investment services will be subject to City Council approval. An annual review of the financial condition and registrations of approved broker/dealers will be conducted by the City Treasurer or designee. Current audited financial statements and/or System and Organizational Controls (SOC- 1 and/or SOC-2) internal control reports will be maintained on file for each financial institution and broker/dealer with which the City conducts business. Each mutual fund shall provide a prospectus and statement of additional information. 2. Financial Institutions will be required to meet the following criteria in order to receive City funds for deposit or investment (see Appendix D, "Listing of Approved Financial Institutions"): • Insurance - Public Funds shall be deposited only in financial institutions having accounts insured by the Federal Deposit Insurance Corporation (FDIC). • Disclosure - Each financial institution maintaining invested funds in excess of the FDIC insured amount shall furnish the City a copy of the most recent Call Report. The City shall not invest in excess of the FDIC insured amount in banking institutions which do not disclose to the city a current listing of securities pledged for collateralization in public monies. X. PERMISSIBLE DEPOSITS AND INVESTMENTS It is the City’s policy to follow Title 5 of the California Government Code (the “State Code”) in regard to allowable securities, and to be sufficiently diversified with regard to security type and issuer. Permissible deposits and investments, as allowed by Chapter 4, Part 1, Division 2, Title 5 (hereinafter cited by §), include, but are not limited to, the following list. The State Code can be directly referenced at https://leginfo.legislature.ca.gov/ Checking, Savings, and Sweep Accounts - The City will only maintain checking and savings, accounts with state or national banks, savings associations, federal associations, and/or credit unions in accordance with §53635.2. • Collateralization: The amount of the City's deposits or investments not insured by the FDIC shall be collateralized by securities in accordance with §53652. The Treasurer may invest in an interest-bearing active deposit 113 Page 8 of 27 account as approved in §53632. The deposit account must be collateralized with securities that are in accordance with §53632.5. In addition, the market value of the collateralized securities must be maintained in accordance with §53652 and be held by a custodian in accordance with the requirements of §53656. The proportion of the City's share of the deposit account shall be determined in accordance with §53658. Certificates of Deposit (Negotiable and Non-negotiable) – As authorized in §53601(i), the City may invest in Non- Negotiable and Negotiable Certificates of Deposits (CD) up to 30% of the overall portfolio. In no instance shall a CD or combined CD’s with a single issuer exceed the FDIC or NCUSIF insurance limit of $250,000. U.S. Treasury Bills, Notes, and Bonds – As authorized in §53601(b), the City may invest in U.S. Treasury bills, notes, and bonds directly issued and backed by the full faith and credit of the U.S. Government. The City's Investment Policy provides for investments in U.S. Treasury issues of 100% of the portfolio. U.S. Government Agency Securities and Federal Government Securities – As authorized in §53601(f), the City may invest in securities issued by U.S. Government instrumentalities and agencies (commonly referred to as government sponsored enterprises or GSE's). These securities may not be backed by the full faith and credit of the U.S. Government (with the exception of Government National Mortgage Association (GNMA) securities). Examples of GSE's include Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC) Federal Home Loan Bank (FHLB), Federal Farm Credit Bank (FFCB), Federal Land Bank (FLB), Federal Intermediate Credit Bank (FICB), and GNMA securities. The City's Investment Policy allows investment only in securities of GNMA, FNMA, FHLMC, FHLB, and FFCB. For Fiscal Year 2021-22, the maximum face amount per issuer is $20 million and the maximum face amount per purchase is $10 million. Prime Commercial Paper – As authorized in §53601(h), a portion of the City's portfolio may be invested in commercial paper of the highest rating as provided for by a nationally recognized statistical rating organization (NRSRO) such as Moody’s, Fitch, or Standard & Poor’s (S&P). There are a number of other qualifications regarding investments in commercial paper based on the financial strength and size of the corporation and the size of the investment. The City limits on prime commercial paper are as defined in the State Code. Local Agency Investment Fund (LAIF) – As authorized in §16429.1 and by LAIF policies, local government agencies are each authorized to invest up to the deposit limit as designated by the California State Treasurer. The City Treasurer may not invest more than the maximum amount per account as allowed by LAIF. Money Market Mutual Funds – As authorized in §53601(l), local agencies are authorized to invest in shares of beneficial interest issued by diversified 114 Page 9 of 27 management companies (mutual funds) in an amount not to exceed 20% of the agency's portfolio. There are a number of other qualifications and restrictions regarding allowable investments in corporate notes and shares of beneficial interest issued by mutual funds which include (1) attaining the highest ranking or the highest letter and numerical rating provided by not less than two of the three largest nationally recognized rating services, or (2) having an investment advisor registered with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations and with assets under management in excess of five hundred million dollars ($500,000,000). Corporate Notes – As authorized in §53601(k), local agencies may invest in corporate notes. The notes must be issued by corporations organized and operating in the United States or by depository institutions licensed by the United States or any other state and operating in the United States. The City's Investment Policy allows investment in corporate notes authorized by the Government Code with the following limitations: • Maximum 30% of the portfolio; • Maturities shall not exceed five years from date of purchase; • Eligible notes shall be regularly quoted and traded in the marketplace; • Eligible notes shall be in a rating category of "AA" or better by an NRSRO; • The maximum aggregate investment in each issuer shall not exceed $5 million (PAR value). Professionally Managed Account(s) – The City Treasurer may place up to 50% of the portfolio with a professional portfolio management/investment management firm (firm) The firm will be approved by the City Council based upon the City Treasurer's recommendation pursuant to completion of a public request for proposal (RFP). The firm shall have: • An established professional reputation for asset or investment management; • Knowledge and working familiarity with State and Federal laws governing and restricting the investment of public funds; • Substantial experience providing investment management services to local public agencies whose investment policies and portfolio size are similar to those of the City; • Professional liability (errors and omissions) insurance and fidelity bonding in such amounts as are required by the City; and • Registration with the Securities and Exchange Commission under the Investment Advisers Act of 1940 Before engagement by the City and except as may be specifically waived or revised, the firm shall commit to adhere to the provisions of the City's Investment Policy with the following exceptions: • The firm may be granted the discretion to purchase and sell investment securities in accordance with this Investment Policy; 115 Page 10 of 27 • The firm is not required to adhere to a buy-and-hold policy; and • The firm does not need City Manager or City Treasurer approval to make permissible investments. Local Agency Bonds and California Local Agency Obligations – As authorized in §53601(a) and §53601(e), the City may invest in California local agency obligations. §53601(a) pertains to investing in bonds issued by a local agency, or by the department, board, agency or authority of the local agency. §53601(e) pertains to investing in bonds and other defined indebtedness of any local agency, or department, board, agency or authority of the local agency within the State of California. The Agency obligations must be invested in the long-term rating category of A or better by an NRSRO. In the case of an initial public offering, including refinancings, the Treasurer may purchase directly from the Bond Underwriter. In the case of secondary issues, the Treasurer will rely on the approved Broker/Dealers. XI. INVESTMENT POOLS There are three (3) types of investment pools: • State-run pools (e.g., LAIF); • Pools that are operated by a political subdivision where allowed by law and the political subdivision is the trustee (e.g., County Pools, and Joint Powers Authorities such as the California Asset Management Program (CAMP)); and • Pools that are operated for profit by third parties (e.g. money market funds). The City's Investment Policy permits investment in pools and money market funds as authorized by State Code §16429.1, §53601(l) and §53601(p). XII. PAYMENT AND CUSTODY The City shall engage qualified third-party custodians to act in a fiduciary capacity to maintain appropriate evidence of the City's ownership of securities and other eligible investments. Such custodians shall disburse funds received from the City for a purchase, to the broker, dealer or seller only after receiving evidence that the City has legal, record ownership of the securities. Even though ownership is evidenced in book-entry form rather than by actual certificates, this procedure is commonly referred to as the delivery versus payment (DVP) method for the transfer of securities. XIII. INTEREST EARNING DISTRIBUTION POLICY Interest earnings are generated from pooled investments and specific investments. The following provisions apply to the calculation and distribution of interest earnings. 116 Page 11 of 27 1. Pooled Investments – It is the general policy of the City to pool all available operating cash of the City of La Quinta, Successor Agency to the City of La Quinta Redevelopment Agency, La Quinta Financing Authority, and La Quinta Housing Authority, and to allocate interest earnings as a payment to each fund of an amount based on the month-end cash balance included in the common portfolio for the earning period. 2. Specific Investments – Specific investments purchased by a fund shall incur all earnings and expenses to that particular fund. XIV. INTERNAL CONTROLS AND INDEPENDENT AUDITOR The City Treasurer shall establish a system of internal controls to accomplish the following objectives: • Safeguard assets; • The orderly and efficient conduct of its business, including adherence to management policies; • Prevention or detection of errors and fraud; • The accuracy and completeness of accounting records; and • Timely preparation of reliable financial information. While no internal control system, however elaborate, can guarantee absolute assurance that the City's assets are safeguarded, it is the intent of the City's internal control to provide a reasonable assurance that management of the investment function meets the City's objectives. The internal controls shall address the following: • Control of collusion. Collusion is a situation where two or more employees are working in conjunction to defraud their employer. • Separation of transaction authority from accounting and record keeping. By separating the person who authorizes or performs the transaction from the people who record or otherwise account for the transaction, a separation of duties is achieved. • Custodial safekeeping. Securities purchased from any bank or dealer including appropriate collateral (as defined by State Law) shall be placed with an independent third party for custodial safekeeping. • Avoidance of physical delivery securities. Book entry securities are much easier to transfer and account for since actual delivery of a document never takes place. Delivered securities must be properly safeguarded against loss or destruction. The potential for fraud and loss increases with physically delivered securities. • Clear delegation of authority to subordinate staff members. Subordinate staff members must have a clear understanding of their authority and responsibilities to avoid improper actions. Clear delegation of authority also preserves the internal control structure that is contingent on the various staff 117 Page 12 of 27 positions and their respective responsibilities as outlined in the Segregation of Major Investment Responsibilities appendices. • Written confirmation of telephone transactions for investments and wire transfers. Due to the potential for error and improprieties arising from telephone transactions, all telephone transactions shall be supported by written communications or electronic confirmations and approved by the appropriate person. Written communications may be via fax or email if on letterhead and the safekeeping institution has a list of authorized signatures. Fax correspondence must be supported by evidence of verbal or written follow- up. • Development of a wire transfer agreement with the City's bank and third-party custodian. This agreement should outline the various controls, security provisions, and delineate responsibilities of each party making and receiving wire transfers. The system of internal controls developed by the City shall be reviewed annually by the independent auditor in connection with the annual audit of the City's Financial Statements. The independent auditor's letter on internal control over financial reporting and compliance as it pertains to cash and investments, if any, shall be directed to the City Manager who will direct the City Treasurer to provide a written response to the independent auditor's letter. The auditor's letter, as it pertains, to cash and investment activities and the City Treasurer's response shall be provided to the City's Financial Advisory Commission for their consideration. Following the completion of each annual audit, the independent auditor shall meet with the Financial Advisory Commission and discuss the auditing procedures performed and the review of internal controls for cash and investment activities. See Appendix C, "Segregation of Major Investment Responsibilities." XV. REPORTING STANDARDS The City Treasurer shall submit a quarterly Treasurer’s Report to the City Council and the Financial Advisory Commission that includes all cash and investments under the authority of the Treasurer. In addition, the City Treasurer or designee shall ensure all investment transactions are reported on a monthly basis as they occur throughout the quarter. The Treasurer's Report shall summarize cash and investment activity and changes in balances and include the following: • A certification by the City Treasurer; • A listing of purchases and sales/maturities of investments; • Cash and Investments categorized by authorized investments; LAIF will also be provided quarterly and show yield and maturity; • Comparison of month end actual holdings to Investment Policy limitations; • A two-year list of historical interest rates. 118 Page 13 of 27 XVI. REVIEW OF INVESTMENT PORTFOLIO The securities held by the City must be in compliance with this Policy at the time of purchase. Due to market conditions, some securities may no longer comply subsequent to the date of purchase, therefore a quarterly review of the portfolio will be conducted to identify any securities which may have fallen out of compliance. Any major incidences of noncompliance identified during such review will be reported to the Financial Advisory Commission for confirmation of staff course of action. XVII. FINANCIAL ADVISORY COMMISSION - CITY OF LA QUINTA The Financial Advisory Commission (FAC) is composed of seven members from the public that are appointed by the City Council. The FAC’s membership, qualifications, and powers and duties are prescribed in Chapter 2.70 of the La Quinta Municipal Code and included in this policy as Appendix A. On an annual basis, in conjunction with the Political Reform Act disclosure statutes, or at any time if a change in circumstances warrants, each commissioner will provide the City Council with a disclosure statement which identifies any matters that have a bearing on the appropriateness of that member's service on the FAC. All commissioners shall report annually to the City Clerk on Form 700, Statement of Economic Interests, any activities, interests, or relationships that may be, or have the appearance of, a conflict of interest. XVIII. INVESTMENT POLICY ADOPTION The City's Investment Policy will be reviewed annually by the City's Financial Advisory Commission and the City Treasurer. The Financial Advisory Commission will forward the Investment Policy with any revisions to the City Manager and City Attorney for their review and comment. A joint meeting will be held with the Financial Advisory Commission, City Manager, City Attorney, and City Treasurer to review the Investment Policy and any comments prior to submission to the City Council for their consideration. The Investment Policy shall be adopted by resolution of the City Council annually before the end of June of each year. 119 Page 14 of 27 City of La Quinta Municipal Code Chapter 2.70 FINANCIAL ADVISORY COMMISSION 2.70.010 General rules regarding the financial advisory commission. Except as set out below, see Chapter 2.06 for general provisions. 2.70.020 Number of members. The financial advisory commission ("FAC") shall initially consist of seven members appointed by, and serving at the will of, the city council. The city council may increase or decrease the number of members from time to time but in no event shall the membership exceed nine members or be less than five members. 2.70.030 Qualifications of members. A. In addition to the qualification requirements set forth in Section 2.06.040 of this code, a minimum of three of the members shall be finance professionals and shall have a verifiable background in finance and/or securities, preferably with knowledge and/or experience in markets, financial controls and accounting for securities. B. For those applying for the professional position, background information will be requested, and potential candidates must agree to a background check and verification by the city manager or designee. 2.70.040 Powers and duties. A. The principal functions of the FAC are: 1. Review at least annually the city's investment policy and recommend appropriate changes; 2. Review at least quarterly the treasury report and note compliance with the investment policy and adequacy of cash and investments for anticipated obligations; 3. Receive and consider other reports provided by the city treasurer; 4. Meet with the independent auditor after completion of the annual audit of the city's financial statements, and receive and consider the auditor's comments on auditing procedures, internal controls, and findings for cash and investment activities; 5. Review at least annually the revenue derived from the one percent (1%) transactions and use tax instituted by voters in November 2016 to ensure these funds are used to provide services, programs and capital projects in the city of La Quinta. APPENDIX A 120 Page 15 of 27 6. Serve as a resource for the city treasurer on matters such as proposed investments, internal controls, use of or change of financial institutions, custodians, brokers and dealers. B. The FAC will report to the city council after each meeting either in person or through correspondence at a regular city council meeting. (Ord. 556 § 1, 2017) 2.70.050 References to the Investment Advisory Board. If any other chapter(s) or section(s) in this code refers to the Investment Advisory Board, that chapter(s) or section(s) shall be deemed to refer to the Financial Advisory Commission established by the ordinance amending chapter 2.70 of this code. 121 Page 16 of 27 City of La Quinta Municipal Code Chapter 3.08 INVESTMENT OF MONEYS AND FUNDS 3.08.010 Investment of city moneys and deposit of securities. Pursuant to, and in accordance with, and to the extent allowed by Sections 53607 and 53608 of the California Government Code, the authority to invest and reinvest moneys of the city, to sell or exchange securities, and to deposit them and provide for their safekeeping, is delegated to the city treasurer, which, for purposes of this chapter, is defined in Section 2.12.010 of this code. (Ord. 529 § 1, 2015; Ord. 2 § 1, 1982) 3.08.020 Authorized investments. Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized to purchase, at their original sale or after they have been issued, securities which are permissible investments under the city council adopted city investment policy and any provision of state law relating to the investing of general city funds, including, but not limited to, Sections 53601 and 53635 of the California Government Code, as said sections now read or may hereafter be amended, from moneys in the city treasurer's custody which are not required for the immediate necessities of the city and as he or she may deem wise and expedient, and to sell or exchange for other eligible securities and reinvest the proceeds of the securities so purchased. (Ord. 529 § 1, 2015; Ord. 2 § 1, 1982) 3.08.030 Sales of Securities. From time to time the city treasurer shall sell the securities in which city moneys have been invested pursuant to this chapter, so that the proceeds may, as appropriate, be applied to the purchase for which the original purchase money may have been designated or placed in the city treasury. (Ord.2 § 1 1982) 3.08.040 City bonds. Bonds issued by the city and purchased pursuant to this chapter may be cancelled either in satisfaction of sinking fund obligations or otherwise if proper and appropriate; provided, however, that the bonds may be held uncancelled and while so held may be resold. (Ord. 2 § 1 (part), 1982) 3.08.050 Reports. The city treasurer shall make a quarterly report to the city council of all investments made pursuant to the authority delegated in this chapter and as permitted by Section 53646(b)(1) of the Government Code. (Ord. 529 § 1, 2015; Ord. 2 § 1, 1982) APPENDIX B 122 Page 17 of 27 3.08.060 Deposits of securities. Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized to deposit for safekeeping, the securities in which city moneys have been invested pursuant to this chapter, in any institution or depository authorized by the city council adopted investment policy and terms of any state law, including, but not limited to, Section 53608 of the Government Code, as it now reads or may hereafter be amended. In accordance with said section, the city treasurer shall take from the institution or depository a receipt for the securities so deposited and shall not be responsible for the securities delivered to and receipted for by the institution or depository until they are withdrawn therefrom by the city treasurer. (Ord. 529 § 1, 2015; Ord. 2 § 1, 1982) 3.08.070 Trust fund administration. Any departmental trust fund established by the city council pursuant to Section 36523 of the Government Code shall be administered by the city treasurer in accordance with Section 36523 and 36524 of the Government Code and any other applicable provisions of law. (Ord. 2 § 1, 1982) 123 Page 18 of 27 Function Responsible Parties Develop and recommend modifications to the City's formal Investment Policy City Treasurer, Financial Services Analyst, and Financial Advisory Commission Review City's Investment Policy and recommend City Council action City Manager and City Attorney Adopt formal Investment Policy City Council Implement formal Investment Policy City Treasurer Review financial institutions and select investments City Treasurer or Financial Servies Analyst Acknowledge investment selections City Manager or his/her designee Execute investment transactions City Manager, City Treasurer, or Financial Services Analyst Confirm wires Accounting Manager, Accountant, or Management Assistant Record investment transactions in City's accounting records Accounting Manager or Accountant Investment cerification- match broker confirmation to City's investment records City Treasurer or Financial Services Analyst Reconcile investment records to accounting records and bank statements Financial Services Analyst Reconcile investment records to treasurer's report of investments City Treasurer, Accounting Manager, or Financial Services Analyst Security of investments at City Accounting Manager or Management Assistant Security of investments outside of City Third Party Custodian Review internal control procedures External Auditor SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES APPENDIX C 124 Page 19 of 27 Banking Services -Wells Fargo Bank, Government Services, Los Angeles, CA (Banking Services) -Bank of the West, San Francisco, CA (Banking Services) Custodian Services -The Bank of New York Mellon/Pershing LLC -Stifel Deferred Compensation -International City/County Management Association (ICCMA) Retirement Corporation Broker/Dealer Services -Stifel, Nicholaus, & Company, Inc. -Higgins Capital Management, Inc. -Great Pacific Securities Government/Joint Powers Authority Pools -State of California Local Agency Investment Fund (LAIF) -California Asset Management Program (CAMP) Trustee Services -US Bank (1) Other Post Employment Benefits (OPEB) Trust -California Employers' Retirement Benefits Trust (CERBT)/CalPERS Pension Trust - Administration -Public Agency Retirement Services (PARS) Listing of Approved Financial Institutions (1) US Bank is the fiscal agent for all of the following bonds: 2013 (refunded in 2021), 2014 (refunded in 2021), 2016, and 2021 Successor Agency to the La Quinta Redevelopment Agency (RDA) Bonds. US Bank is also the trustee and asset custodian for the PARS pension trust. APPENDIX D 125 Page 20 of 27 INVESTMENT MANAGEMENT PROCESS AND RISK Except as provided for in Section 27000.3, Government Code Section 53600.3 declares as a trustee each person, treasurer, or governing body authorized to make investment decisions on behalf of local agencies. Trustees are subject to the prudent investor standard. These persons shall act with care, skill, prudence, and diligence under the circumstances then prevailing when investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing funds. Section 53600.5 further stipulates that the primary objective of any person investing public funds is to safeguard principal; secondly, to meet liquidity needs of the depositor; and lastly, to achieve a return or yield on invested funds (Government Code Section 27000.5 specifies the same objectives for county treasurers and board of supervisors). Risk is inherent throughout the investment process. There is investment risk associated with any investment activity and opportunity risk related to inactivity. Market risk is derived from exposure to overall changes in the general level of interest rates while credit risk is the risk of loss due to the failure of the insurer of a security. The market value of a security varies inversely with the level of interest rates. If an investor is required to sell an investment with a five percent yield in a comparable seven percent rate environment, that security will be sold at a loss. The magnitude of that loss will depend on the amount of time until maturity. Purchasing certain allowable securities with a maturity of greater than five years requires approval of the governing board (see Government Code Section 53601). Part of that approval process involves assessing and disclosing the risk and possible volatility of longer-term investments Another element of risk is liquidity risk. Instruments with call features or special structures, or those issued by little known companies, are examples of "story bonds" and are often thinly traded. Their uniqueness often makes finding prospective buyers in a secondary market more difficult and, consequently, the securities' marketability and price are discounted. However, under certain market conditions, gains are also possible with these types of securities. Default risk represents the possibility that the borrower may be unable to repay the obligation as scheduled. Generally, securities issued by the federal government and its agencies are considered the most secure, while securities issued by private corporations or negotiable certificates of deposit issued by commercial banks have a greater degree of risk. Securities with additional credit enhancements, such as bankers acceptances, collateralized repurchase agreements and collateralized bank deposits are somewhere between the two on the risk spectrum. The vast majority of portfolios are managed within a buy and hold policy. Investments are purchased with the intent and capacity to hold that security until maturity. At times, market forces or operations may dictate swapping one security for another or APPENDIX E 126 Page 21 of 27 selling a security before maturity. Continuous analysis and fine tuning of the investment portfolio are considered prudent investment management. The Government Code contains specific provisions regarding the types of investments and practices permitted after considering the broad requirement of preserving principal and maintaining liquidity before seeking yield. These provisions are intended to promote the use of reliable, diverse, and safe investment instruments to better ensure a prudently managed portfolio worthy of public trust. Source: Chapter II. Fund Management from the Local Agency Investment Guidelines Issued by California Debt and Investment Advisory Commission 127 Page 22 of 27 GLOSSARY (Adopted from the Municipal Treasurers Association) The purpose of this glossary is to provide the reader of the City of La Quinta investment policies with a better understanding of financial terms used in municipal investing. AGENCIES: Federal agency securities and/or Government-sponsored enterprises. ASKED: The price at which securities are offered. BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer. BROKER: A broker brings buyers and sellers together for a commission. CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large- denomination CD's are typically negotiable. COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMMERCIAL PAPER: Short-term unsecured promissory notes issued by a corporation to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation, IBM, Bank America, etc. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the City of La Quinta. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section. CONDUIT FINANCING: A form of Financing in which a government or a government agency lends its name to a bond issue, although it is acting only as a conduit between a specific project and bond holders. The bond holders can look only to the revenues from the project being financed for repayment and not to the government or agency whose name appears on the bond. COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. APPENDIX F 128 Page 23 of 27 DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities). DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount. DISCOUNT SECURITIES: Non-interest-bearing money market instruments that are issued at discount and redeemed at maturity for full face value DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L's, small business firms, students, farmers, farm cooperatives, and exporters. FNMAs (Federal National Mortgage Association) - Like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. FHLBs (Federal Home Loan Bank Notes and Bonds) - Issued by the Federal Home Loan Bank System to help finance the housing industry. The notes and bonds provide liquidity and home mortgage credit to savings and loan associations, mutual savings banks, cooperative banks, insurance companies, and mortgage-lending institutions. They are issued irregularly for various maturities. The minimum denomination is $5,000. The notes are issued with maturities of less than one year and interest is paid at maturity. FLBs (Federal Land Bank Bonds) - Long-term mortgage credit provided to farmers by Federal Land Banks. These bonds are issued at irregular times for various maturities ranging from a few months to ten years. The minimum denomination is $1,000. They carry semi- annual coupons. Interest is calculated on a 360-day, 30-day month basis. FFCBs (Federal Farm Credit Bank) – Debt instruments used to finance the short and intermediate term needs of farmers and the national agricultural industry. They are 129 Page 24 of 27 issued monthly with three- and six-month maturities. The FFCB issues larger issues (one to ten year) on a periodic basis. These issues are highly liquid. FICBs (Federal Intermediate Credit Bank Debentures) - Loans to lending institutions used to finance the short-term and intermediate needs of farmers, such as seasonal production. They are usually issued monthly in minimum denominations of $3,000 with a nine-month maturity. Interest is payable at maturity and is calculated on a 360-day, 30-day month basis. FHLMCs (Federal Home Loan Mortgage Corporation) - a government sponsored entity established in 1970 to provide a secondary market for conventional home mortgages. Mortgages are purchased solely from the Federal Home Loan Bank System member lending institutions whose deposits are insured by agencies of the United States Government. They are issued for various maturities and in minimum denominations of $10,000. Principal and interest is paid monthly. Other federal agency issues are Small Business Administration notes (SBA's), Government National Mortgage Association notes (GNMA's), and Tennessee Valley Authority notes (TVA's). FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit per entity. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open- market operations. FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks (currently 12 regional banks) which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district Bank. FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 regional banks and about 3,000 commercial banks that are members of the system. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FMHM mortgages. The term "pass- throughs" is often used to describe Ginnie Maes. 130 Page 25 of 27 LAIF (Local Agency Investment Fund): - A special fund in the State Treasury which local agencies may use to deposit funds for investment. There is no minimum investment period, the minimum transaction is $5,000 and the City follows the state guidance for maximum total balance. The City is restricted to a maximum of ten transactions per month. It offers high liquidity because deposits can be converted to cash in 24 hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share basis determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly. The State retains an amount for reasonable costs of making the investments, not to exceed one-half of one percent of the earnings. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase--reverse repurchase agreements that establish each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer- lender to liquidate the underlying securities in the event of default by the seller-borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded. NRSRO (NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION): A credit rating agency recognized by the Securities and Exchange Commission (SEC). Examples include Fitch Ratings, Inc., Moody’s Investor’s Services, Inc., and S&P Global Ratings, among others. OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid. OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool. PORTFOLIO: Collection of all cash and securities under the direction of the City Treasurer, including Bond Proceeds. 131 Page 26 of 27 PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) registered securities broker- dealers, banks and a few unregulated firms. QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. REPURCHASE AGREEMENT (RP OR REPO) and REVERSE REPURCHASE AGREEMENTS (RRP or RevRepo): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is increasing bank reserves. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See Uniform Net Capital Rule. SSAE 16: The Statement on Standards for Attestation Engagements No. 16 (SSAE 16) is a set of auditing standards and guidance on using the standards, published by the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA) for redefining and updating how service companies report on compliance controls. The Service Organizational Control report (SOC-1) contains internal controls over financial reporting and is used by auditors and office controllers. STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, SLMA, etc.) and Corporations which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, and derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve. SURPLUS FUNDS: Section 53601 of the California Government Code defines surplus funds as any money not required for immediate necessities of the local agency. The City has defined immediate necessities to be payment due within one week. 132 Page 27 of 27 TREASURY BILLS: A non-interest- bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months or one year. TREASURY BONDS: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years. TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. UNIFORM PRUDENT INVESTOR ACT: The State of California has adopted this Act. The Act contains the following sections: duty of care, diversification, review of assets, costs, compliance determinations, delegation of investments, terms of prudent investor rule, and application. YIELD: The rate of annual return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. 133 134 Association of Public Treasurers of the United States and Canada www.aptusc.org Post Office Box 591 ∙ Tawas City, MI 48764-0591 ∙ info@aptusc.org ∙ (p) 989-820-5205 March 8, 2021 Ms. Rosemary Hallick, Financial Services Analyst City of La Quinta 78-495 Calle Tampico La Quinta, California 92253 Dear Mr. Hallick: The Association of Public Treasurers of the United States & Canada (APT US&C) is pleased to present the City of La Quinta, California with the Association’s Investment Policy Certificate of Excellence Award for your commitment in a establishing a comprehensive investment policy. Your plaque will be mailed to you in the coming weeks to proudly display in your office as a testament to your commitment to your profession and your community. We hope you display your award with great pride in knowing how hard you worked to earn the Investment Policy Certification. Once again, Congratulations! Sincerely, Roger Wisecup, CPA, CPFA, ACPFIM Investment Policy Certification Committee Chairperson ATTACHMENT 1 135 ATTACHMENT 2 Fiscal Year 2020/20212021/2022 Table of Contents Section Topic Page Executive Summary 1 I General Purpose 2 II Investment Policy 2 III Scope 2 IV Objectives 3 V Maximum Maturities 5 VI Prudence 5 VII Authority 5 VIII Ethics and Conflicts of Interest 6 IX Authorized Financial Dealers and Institutions 6 X Permissible Deposits and Investments 7 XI Investment Pools 10 XII Payment and Custody 10 XIII Interest Earning Distribution Policy 11 XIV Internal Controls and Independent Auditors 11 XV Reporting Standards 12 XVI Review of Investment Portfolio 13 XVII Financial Advisory Commission – City of La Quinta 13 XIII Investment Policy Adoption 13 Appendices Topic Page A Municipal Code Ordinance 2.70 – Financial Advisory Commission 14 B Municipal Code Ordinance 3.08 – Investment of Moneys and Funds 16 C Segregation of Major Investment Responsibilities 18 D Listing of Approved Financial Institutions 19 E Investment Management Process and Risk 20 F Glossary 22 136 Page 1 of 27 CITY OF LA QUINTA Investment Policy Fiscal Year 2020/20212021/2022 EXECUTIVE SUMMARY The general purpose of this Investment Policy is to provide the rules and standards that must be followed in administering the City of La Quinta's (the “City”) deposits and investments. The City's Investment Policy conforms to all state and local statutes and applies to all deposits and investments of the City, with the exception of bond proceeds and those noted in section III herein. It is the City's policy to deposit and invest public funds in a manner that shall provide safety of principal, liquidity to meet the City’s obligations and requirements that may be reasonably anticipated, and a risk-based market rate of return. Authority to manage the City's investment portfolio is derived from the City Municipal Code. Management responsibility for the investment program is delegated to the City Treasurer, who shall establish and implement written procedures for the operation of the City's investment program consistent with the Investment Policy. The City Manager, City Treasurer, and city employees involved in the City's banking and investment process shall conduct the City's business in an ethical manner and refrain from any activity or relationship that may be, or have the appearance of, a conflict of interest. The Investment Policy shall be adopted by resolution of the La Quinta City Council on an annual basis, before the end of each fiscal year (June). 137 Page 2 of 27 City of La Quinta Statement of Investment Policy July 1, 20201 through June 30, 20212 Adopted by the City Council on June May 164, 20201 I. GENERAL PURPOSE The general purpose of this document is to provide the rules and standards that must be followed in administering the City of La Quinta's deposits and investments. II. INVESTMENT POLICY It is the policy of the City of La Quinta to deposit and invest public funds in a manner that shall conform to all State and local statutes governing the investment of public funds and set forth the permissible deposits and investments of the City's funds and the limitations thereon. III. SCOPE Except as further detailed in Sections XVI and XVIInoted below, this Investment Policy applies to all deposits and investments of the City of La Quinta, the Successor Agency to the City of La Quinta Redevelopment Agency, and the City of La Quinta Financing and Housing Authorities. These funds are reported in the City's Comprehensive Annual Financial Report (CAFR) and include all funds within the following fund types:  General  Special Revenue  Capital Projects  Debt Service  Enterprise  Internal Service  Trust and Agency  Any new fund types and fund(s) that may be created. Financial assets and investment activity not subject to this policy The City's Investment Policy does not apply to the following:  Cash and Investments raised from Conduit Debt Financing;  Funds held in trust in the City's name in pension or other post-retirement benefit programs;  Cash and Investments held in lieu of retention by banks or other financial institutions for construction projects; and  Short or long-term loans made to other entities by the City or Agency,  Short term (Due to/from) or long term (Advances from/to) obligations made either between the City and its funds or between the City and Agency.  Investment of bond proceeds: The City's Investment Policy shall not govern bond proceeds and bond reserve fund investments. California Code Section Commented [RH1]: Old reference not previously removed. 138 Page 3 of 27 5922(d) governs the investment of bond proceeds and reserve funds in accordance with bond indenture provisions. Arbitrage Requirement - The US Tax Reform Act of 1986 requires the City to perform arbitrage calculations as required and return excess earnings to the US Treasury from investments of proceeds of bond issues sold after the effective date of this law. These arbitrage calculations may be contracted with an outside source to provide the necessary technical assistance to comply with this regulation. Investable funds subject to the 1986 Tax Reform Act will be kept segregated from other funds and records will be kept in a fashion to facilitate the calculations. The City's investment position relative to the new arbitrage restrictions is to continue pursuing the maximum yield on applicable investments while ensuring the safety of capital and liquidity,. It is the City's position to continue maximization of yield and to rebate excess earnings, if necessary. IV. OBJECTIVES The objectives of the City's investment activity, in order of priority and importance, are: A. Safety of Principal Safety of principal is the foremost objective of the City's investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of principal of the overall portfolio in accordance with the permissible deposits and investments. The City shall endeavor to preserve its investment principal by making only permissible deposits and investments, undertaken in a controlled manner to minimize the possibility of loss or misappropriation through malfeasance or otherwise. Investments not backed by the full faith and credit of the United States Government shall be diversified by allocating assets between different types of permissible investments, maturities, and issuers as a means to mitigate credit risk and interest rate risk. Investment in any single security type or single financial institution shall be limited to the maximum percentages and/or dollar amounts as noted in Section X. 1. Credit Risk is the risk of loss from the failure of the security issuer or backer. Credit risk may be mitigated by: • Limiting investments to investment grade securities as permitted in Section X; and • Diversifying the issuers of the securities in the investment portfolio so that potential losses due to issuer failure or individual securities downgrades may be minimized. 2. Interest Rate Risk is the risk that market values of securities in the portfolio will decline due to changes in general interest rates. Interest rate risk may be mitigated by: 139 Page 4 of 27 • Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity; and • Investing operating funds primarily in shorter-term securities. 3. Liquidity Risk is the risk that a security cannot be liquidated because of its unique features or structure or because it is thinly traded. Liquidity risk is not a material issue for the City's portfolio because of the permissible deposits and investments (see Section X). A discussion of the City's investment process and risk is presented in Appendix E. B. Provide Liquidity The investment portfolio shall remain sufficiently liquid to meet all of the City's cash needs that may be reasonably anticipated. This is accomplished by structuring the portfolio so that sufficient liquid funds are available to meet anticipated demands. Furthermore, since all possible cash needs cannot be anticipated the portfolio should be diversified and consist of securities with active secondary or resale markets. The City's policy is to generally hold securities and other investments to maturity. AccordinglyHowever, securities may be sold prior to maturity under certain circumstances as follow: • A security with declining credit quality can be sold early to minimize loss of principal. • Unanticipated liquidity needs of the portfolio require that one or more securities be sold. • When a sale/repurchase is fiscally advantageous based on market conditions and fits the needs of the portfolio C. Yield a Risk-Based Market Rate of Return The City's investment portfolio shall be structured with the objective of yielding a risk- based market rate of return throughout budgetary and economic cycles. Return on investment is less important than the safety and liquidity objectives described above. The City's Investment Policy does not specify a single benchmark as a goal or target yield for a rate of return on its investment portfolio. The portfolio's rates of return will be influenced by several factors, including actions by the Federal Reserve Board, the marketplace, and overall economic perceptions and conditions. Performance Standards: As a basis for comparison only, the Treasurer's quarterly reports will display the rates of return on the three-month Bill, six-month Bill, and the one and two-year U.S. Treasury Note, and the yield for the State Treasurer's Local Agency Investment Fund (LAIF). The Treasurer may use these or any other published rates of return that the Treasurer deems appropriate for comparison to the return on the City's investment portfolio. 140 Page 5 of 27 The investment portfolio shall be designed with the objective of obtaining a market rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs. V. MAXIMUM MATURITIES It is the City's policy to generally hold securities and other investments until maturity. This buy-and-hold policy shall not prevent the sale of a security as listed in section IV.B The general buy-and-hold strategy requires that the City's investment portfolio be structured so that sufficient liquid funds are available from maturing investments and other sources to meet all reasonably anticipated cash needs. The City shall follow Title 5 of the California Government Code §53601 (the “State Code”) regarding maximum maturities, in that “no investment shall be made in any security…that at the time of the investment has a term remaining to maturity in excess of five years”. VI. PRUDENCE and FIDUCIARY DUTY The City shall follow the State Code §53600.3 regarding fiduciary duty and the Prudent Investor Standard as follows: Except as provided in subdivision (a) of §27000.3, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law. VII. AUTHORITY Authority to manage the City's investment portfolio is derived from Chapter 3.08 of the City's Municipal Code. Management responsibility for the investment program is delegated to the City Treasurer for a period of one year pursuant to the City Council's annual adoption of the Investment Policy. The City Treasurer shall establish written procedures for the operation of the investment program consistent with the Investment Policy. Procedures should include reference to safekeeping, wire transfer agreements, banking service contracts, and collateral/depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may 141 Page 6 of 27 engage in an investment transaction except as provided under the terms of this Investment Policy and the procedures established by the City Treasurer. The City Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. VIII. ETHICS AND CONFLICTS OF INTEREST The City Manager, City Treasurer and Ccity employees involved in the City's banking and investment process shall conduct the City's business in an ethical manner and refrain from any activity or relationship that may be, or have the appearance of, a conflict of interest. The City will maintain compliance with the procedures set forth in the Conflicts of Interest and Acceptance of Gifts and other Gratuities section of the City of La Quinta Personnel Manual and the City’s Municipal Code Chapter 2.60 Conflicts of Interest. Any questionable activity or relationship shall be reported immediately; reporting must be made in accordance with the personnel policies of the City and, until resolved, the officer or employee shall refrain from participating in the City's business related to the matter. The City Manager, City Treasurer, and City employees may conduct personal business with banks, brokers, and other financial institutions that are authorized to conduct business with the City provided that the terms of the activity to the accountholder with the City are the same as those that are available to the public in general, or to all employees as a result of contract negotiations. IX. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The City Treasurer maintains a listing of financial institutions which are approved for direct investment purposes, as well as a list of approved broker/dealers. 1. Broker/Dealers who desire to become bidders for direct investment transactions must supply the City with the following: • Current audited financial statements; • Proof of Financial Industry Regulatory Authority (FINRA) Certification; • Proof of State of California registration; • Resume of fFinancial broker; and • Completion of the City of La Quinta Broker/Dealer Qquestionnaire, which contains a certification of having read the City's Investment Policy. The City Treasurer or designee shall evaluate the documentation submitted by the broker/dealer and independently verify existing reports on file for any firm and/or individual(s) conducting investment related business. The City Treasurer or designee will also contact the following agencies during the verification process: • Financial Industry Regulatory Authority (FINRA) Public Disclosure Report File (1-800- 289-9999). • State of California Department of Corporations (1-916-445-3062). 142 Page 7 of 27 A professional investment manager or management firm, if engaged by the City pursuant to Section X of this policy, may utilize their own list of approved broker/dealers on the condition that any such list is provided to the City upon request. All Broker/Dealers and financial institutions that provide investment services will be subject to City Council approval. An annual review of the financial condition and registrations of approved broker/dealers will be conducted by the City Treasurer or designee. Current audited financial statements and/or SSAE 16 System and Organizational Controls (SOC-1 and/or SOC-2) internal control (SOC-1) reports will be maintained on file for each financial institution and broker/dealer with which the City conducts business. Each mutual fund shall provide a prospectus and statement of additional information. 2. Financial Institutions will be required to meet the following criteria in order to receive City funds for deposit or investment (see Appendix D, "Listing of Approved Financial Institutions"): • Insurance - Public Funds shall be deposited only in financial institutions having accounts insured by the Federal Deposit Insurance Corporation (FDIC). • Disclosure - Each financial institution maintaining invested funds in excess of the FDIC insured amount shall furnish the City a copy of the most recent Call Report. The City shall not invest in excess of the FDIC insured amount in banking institutions which do not disclose to the city a current listing of securities pledged for collateralization in public monies. X. PERMISSIBLE DEPOSITS AND INVESTMENTS It is the City’s policy to follow Title 5 of the California Government Code (the “State Code”) in regard to allowable securities, and to be sufficiently diversified with regard to security type and issuer. Permissible deposits and investments, as allowed by Chapter 4, Part 1, Division 2, Title 5 (hereinafter cited by §), include, but are not limited to, the following list. The State Code can be directly referenced at https://leginfo.legislature.ca.gov/ Checking, Savings, and Sweep Accounts - The City will only maintain checking and savings, accounts with state or national banks, savings associations, federal associations, and/or credit unions in accordance with §53635.2. • Collateralization: The amount of the City's deposits or investments not insured by the FDIC shall be collateralized by securities in accordance with §53652. The Treasurer may invest in an interest-bearing active deposit 143 Page 8 of 27 account as approved in §53632. The deposit account must be collateralized with securities that are in accordance with §53632.5. In addition, the market value of the collateralized securities must be maintained in accordance with §53652 and be held by a custodian in accordance with the requirements of §53656. The proportion of the City's share of the deposit account shall be determined in accordance with §53658. Certificates of Deposit (Negotiable and Non-negotiable) – As authorized in §53601(i), the City may invest in Non- Negotiable and Negotiable Certificates of Deposits (CD) up to 30% of the overall portfolio. In no instance shall a CD or combined CD’s with a single issuer exceed the FDIC or NCUSIF insurance limit of $250,000. U.S. Treasury Bills, Notes, and Bonds – As authorized in §53601(b), the City may invest in U.S. Treasury bills, notes, and bonds directly issued and backed by the full faith and credit of the U.S. Government. The City's Investment Policy provides for investments in U.S. Treasury issues of 100% of the portfolio. U.S. Government Agency Securities and Federal Government Securities – As authorized in §53601(f), the City may invest in securities issued by U.S. Government instrumentalities and agencies (commonly referred to as government sponsored enterprises or GSE's). These securities may not be backed by the full faith and credit of the U.S. Government (with the exception of Government National Mortgage Association (GNMA) securities). Examples of GSE's include Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC) Federal Home Loan Bank (FHLB), Federal Farm Credit Bank (FFCB), Federal Land Bank (FLB), Federal Intermediate Credit Bank (FICB), and GNMA securities. The City's Investment Policy allows investment only in securities of GNMA, FNMA, FHLMC, FHLB, and FFCB. For Fiscal Year 2019-202021-22, the maximum face amount per issuer is $20 million and the maximum face amount per purchase is $10 million. Prime Commercial Paper – As authorized in §53601(h), a portion of the City's portfolio may be invested in commercial paper of the highest rating as provided for by a nationally recognized statistical rating organization (NRSRO) such as Moody’s, Fitch, or Standard & Poor’s (S&P). There are a number of other qualifications regarding investments in commercial paper based on the financial strength and size of the corporation and the size of the investment. Up to 25% of the portfolio may be invested, with no more than 10% of the outstanding paper of any single issuer. The City limits on prime commercial paper are as defined in the State Code. Local Agency Investment Fund (LAIF) – As authorized in §16429.1 and by LAIF policies, local government agencies are each authorized to invest up to the Commented [RH2]: Rather than define an amount, changed to follow code as written. Code was changed in 2021 to up to 40% if total portfolio over $100 million, but this sunsets in 2026. 144 Page 9 of 27 deposit limit as designated by the California State Treasurer. The City Treasurer may not invest more than the maximum amount per account as allowed by LAIF. Money Market Mutual Funds – As authorized in §53601(l), local agencies are authorized to invest in shares of beneficial interest issued by diversified management companies (mutual funds) in an amount not to exceed 20% of the agency's portfolio. There are a number of other qualifications and restrictions regarding allowable investments in corporate notes and shares of beneficial interest issued by mutual funds which include (1) attaining the highest ranking or the highest letter and numerical rating provided by not less than two of the three largest nationally recognized rating services, or (2) having an investment advisor registered with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations and with assets under management in excess of five hundred million dollars ($500,000,000). Corporate Notes – As authorized in §53601(k), local agencies may invest in corporate notes. The notes must be issued by corporations organized and operating in the United States or by depository institutions licensed by the United States or any other state and operating in the United States. The City's Investment Policy allows investment in corporate notes authorized by the Government Code with the following limitations: • Maximum 30% of the portfolio; • Maturities shall not exceed five years from date of purchase; • Eligible notes shall be regularly quoted and traded in the marketplace; • Eligible notes shall be in a rating category of "AA" or better by an NRSRO; • The maximum aggregate investment in each issuer shall not exceed $5 million (PAR value). Professionally Managed Account(s) – The City Treasurer may place up to 50% of the portfolio with a professional portfolio management/investment management firm (firm) The firm will be approved by the City Council based upon the City Treasurer's recommendation pursuant to completion of a public request for proposal (RFP). The firm shall have: • An established professional reputation for asset or investment management; • Knowledge and working familiarity with State and Federal laws governing and restricting the investment of public funds; • Substantial experience providing investment management services to local public agencies whose investment policies and portfolio size are similar to those of the City; • Professional liability (errors and omissions) insurance and fidelity bonding in such amounts as are required by the City; and • Registration with the Securities and Exchange Commission under the Investment Advisers Act of 1940 145 Page 10 of 27 Before engagement by the City and except as may be specifically waived or revised, the firm shall commit to adhere to the provisions of the City's Investment Policy with the following exceptions: • The firm may be granted the discretion to purchase and sell investment securities in accordance with this Investment Policy; • The firm is not required to adhere to a buy-and-hold policy; and • The firm does not need City Manager or City Treasurer approval to make permissible investments. Local Agency Bonds and California Local Agency Obligations – As authorized in §53601(a) and §53601(e), the City may invest in California local agency obligations. §53601(a) pertains to investing in bonds issued by a local agency, or by the department, board, agency or authority of the local agency. §53601(e) pertains to investing in bonds and other defined indebtedness of any local agency, or department, board, agency or authority of the local agency within the State of California. The Agency obligations must be invested in the long-term rating category of A or better by an NRSRO. In the case of an initial public offering, including refinancings, the Treasurer may purchase directly from the Bond Underwriter. In the case of secondary issues, the Treasurer will rely on the approved Broker/Dealers. XI. INVESTMENT POOLS There are three (3) types of investment pools: • State-run pools (e.g., LAIF); • Pools that are operated by a political subdivision where allowed by law and the political subdivision is the trustee (e.g., County Pools, and Joint Powers Authorities such as the California Asset Management Program (CAMP)); and • Pools that are operated for profit by third parties (e.g. money market funds). The City's Investment Policy permits investment in pools and money market funds as authorized by State Code §16429.1, §53601(l) and §53601(p). XII. PAYMENT AND CUSTODY The City shall engage qualified third-party custodians to act in a fiduciary capacity to maintain appropriate evidence of the City's ownership of securities and other eligible investments. Such custodians shall disburse funds received from the City for a purchase, to the broker, dealer or seller only after receiving evidence that the City has legal, record ownership of the securities. Even though ownership is evidenced in book-entry form rather than by actual certificates, this procedure is commonly referred to as the delivery versus payment (DVP) method for the transfer of securities. 146 Page 11 of 27 XIII. INTEREST EARNING DISTRIBUTION POLICY Interest earnings are generated from pooled investments and specific investments. The following provisions apply to the calculation and distribution of interest earnings. 1. Pooled Investments – It is the general policy of the City to pool all available operating cash of the City of La Quinta, Successor Agency to the City of La Quinta Redevelopment Agency, La Quinta Financing Authority, and La Quinta Housing Authority, and to allocate interest earnings as a payment to each fund of an amount based on the month-end cash balance included in the common portfolio for the earning period. 2. Specific Investments – Specific investments purchased by a fund shall incur all earnings and expenses to that particular fund. XIV. INTERNAL CONTROLS AND INDEPENDENT AUDITOR The City Treasurer shall establish a system of internal controls to accomplish the following objectives: • Safeguard assets; • The orderly and efficient conduct of its business, including adherence to management policies; • Prevention or detection of errors and fraud; • The accuracy and completeness of accounting records; and • Timely preparation of reliable financial information. While no internal control system, however elaborate, can guarantee absolute assurance that the City's assets are safeguarded, it is the intent of the City's internal control to provide a reasonable assurance that management of the investment function meets the City's objectives. The internal controls shall address the following: • Control of collusion. Collusion is a situation where two or more employees are working in conjunction to defraud their employer. • Separation of transaction authority from accounting and record keeping. By separating the person who authorizes or performs the transaction from the people who record or otherwise account for the transaction, a separation of duties is achieved. • Custodial safekeeping. Securities purchased from any bank or dealer including appropriate collateral (as defined by State Law) shall be placed with an independent third party for custodial safekeeping. • Avoidance of physical delivery securities. Book entry securities are much easier to transfer and account for since actual delivery of a document never takes place. Delivered securities must be properly safeguarded against loss or destruction. The potential for fraud and loss increases with physically delivered securities. 147 Page 12 of 27 • Clear delegation of authority to subordinate staff members. Subordinate staff members must have a clear understanding of their authority and responsibilities to avoid improper actions. Clear delegation of authority also preserves the internal control structure that is contingent on the various staff positions and their respective responsibilities as outlined in the Segregation of Major Investment Responsibilities appendices. • Written confirmation of telephone transactions for investments and wire transfers. Due to the potential for error and improprieties arising from telephone transactions, all telephone transactions shall be supported by written communications or electronic confirmations and approved by the appropriate person. Written communications may be via fax or email if on letterhead and the safekeeping institution has a list of authorized signatures. Fax correspondence must be supported by evidence of verbal or written follow- up. • Development of a wire transfer agreement with the City's bank and third-party custodian. This agreement should outline the various controls, security provisions, and delineate responsibilities of each party making and receiving wire transfers. The system of internal controls developed by the City shall be reviewed annually by the independent auditor in connection with the annual audit of the City's Financial Statements. The independent auditor's letter on internal control over financial reporting and compliance as it pertains to cash and investments, if any, shall be directed to the City Manager who will direct the City Treasurer to provide a written response to the independent auditor's letter. The auditor's letter, as it pertains, to cash and investment activities and the City Treasurer's response shall be provided to the City's Financial Advisory Commission for their consideration. Following the completion of each annual audit, the independent auditor shall meet with the Financial Advisory Commission and discuss the auditing procedures performed and the review of internal controls for cash and investment activities. See Appendix C, "Segregation of Major Investment Responsibilities." XV. REPORTING STANDARDS The City Treasurer shall submit a quarterly Treasurer’s Report to the City Council and the Financial Advisory Commission that includes all cash and investments under the authority of the Treasurer. In addition, the City Treasurer or designee shall ensure all investment transactions are reported on a monthly basis as they occur throughout the quarter. The Treasurer's Report shall summarize cash and investment activity and changes in balances and include the following: • A certification by the City Treasurer; • A listing of purchases and sales/maturities of investments; • Cash and Investments categorized by authorized investments; LAIF will also be provided quarterly and show yield and maturity; • Comparison of month end actual holdings to Investment Policy limitations; 148 Page 13 of 27 • A two-year list of historical interest rates. XVI. REVIEW OF INVESTMENT PORTFOLIO The securities held by the City must be in compliance with this Policy at the time of purchase. Due to market conditions, some securities may no longer comply subsequent to the date of purchase, therefore a quarterly review of the portfolio will be conducted to identify any securities which may have fallen out of compliance. Any major incidences of noncompliance identified during such review will be reported to the Financial Advisory Commission for confirmation of staff course of action. XVII. FINANCIAL ADVISORY COMMISSION - CITY OF LA QUINTA The Financial Advisory Commission (FAC) is composed of seven members from the public that are appointed by the City Council. The FAC’s membership, qualifications, and powers and duties are prescribed in Chapter 2.70 of the La Quinta Municipal Code and included in this policy as Appendix A. On an annual basis, in conjunction with the Political Reform Act disclosure statutes, or at any time if a change in circumstances warrants, each commissioner will provide the City Council with a disclosure statement which identifies any matters that have a bearing on the appropriateness of that member's service on the FAC. All commissioners shall report annually to the City Clerk on Form 700, Statement of Economic Interests, any activities, interests, or relationships that may be, or have the appearance of, a conflict of interest. XVIII. INVESTMENT POLICY ADOPTION The City's Investment Policy will be reviewed annually by the City's Financial Advisory Commission and the City Treasurer. The Financial Advisory Commission will forward the Investment Policy with any revisions to the City Manager and City Attorney for their review and comment. A joint meeting will be held with the Financial Advisory Commission, City Manager, City Attorney, and City Treasurer to review the Investment Policy and any comments prior to submission to the City Council for their consideration. The Investment Policy shall be adopted by resolution of the City Council annually before the end of June of each year. 149 Page 14 of 27 City of La Quinta Municipal Code Chapter 2.70 FINANCIAL ADVISORY COMMISSION 2.70.010 General rules regarding the financial advisory commission. Except as set out below, see Chapter 2.06 for general provisions. 2.70.020 Number of members. The financial advisory commission ("FAC") shall initially consist of seven members appointed by, and serving at the will of, the city council. The city council may increase or decrease the number of members from time to time but in no event shall the membership exceed nine members or be less than five members. 2.70.030 Qualifications of members. A. In addition to the qualification requirements set forth in Section 2.06.040 of this code, a minimum of three of the members shall be finance professionals and shall have a verifiable background in finance and/or securities, preferably with knowledge and/or experience in markets, financial controls and accounting for securities. B. For those applying for the professional position, background information will be requested, and potential candidates must agree to a background check and verification by the city manager or designee. 2.70.040 Powers and duties. A. The principal functions of the FAC are: 1. Review at least annually the city's investment policy and recommend appropriate changes; 2. Review at least quarterly the treasury report and note compliance with the investment policy and adequacy of cash and investments for anticipated obligations; 3. Receive and consider other reports provided by the city treasurer; 4. Meet with the independent auditor after completion of the annual audit of the city's financial statements, and receive and consider the auditor's comments on auditing procedures, internal controls, and findings for cash and investment activities; 5. Review at least annually the revenue derived from the one percent (1%) transactions and use tax instituted by voters in November 2016 to ensure these funds are used to provide services, programs and capital projects in the city of La Quinta. APPENDIX A 150 Page 15 of 27 6. Serve as a resource for the city treasurer on matters such as proposed investments, internal controls, use of or change of financial institutions, custodians, brokers and dealers. B. The FAC will report to the city council after each meeting either in person or through correspondence at a regular city council meeting. (Ord. 556 § 1, 2017) 2.70.050 References to the Investment Advisory Board. If any other chapter(s) or section(s) in this code refers to the Investment Advisory Board, that chapter(s) or section(s) shall be deemed to refer to the Financial Advisory Commission established by the ordinance amending chapter 2.70 of this code. 151 Page 16 of 27 City of La Quinta Municipal Code Chapter 3.08 INVESTMENT OF MONEYS AND FUNDS 3.08.010 Investment of city moneys and deposit of securities. Pursuant to, and in accordance with, and to the extent allowed by Sections 53607 and 53608 of the California Government Code, the authority to invest and reinvest moneys of the city, to sell or exchange securities, and to deposit them and provide for their safekeeping, is delegated to the city treasurer, which, for purposes of this chapter, is defined in Section 2.12.010 of this code. (Ord. 529 § 1, 2015; Ord. 2 § 1, 1982) 3.08.020 Authorized investments. Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized to purchase, at their original sale or after they have been issued, securities which are permissible investments under the city council adopted city investment policy and any provision of state law relating to the investing of general city funds, including, but not limited to, Sections 53601 and 53635 of the California Government Code, as said sections now read or may hereafter be amended, from moneys in the city treasurer's custody which are not required for the immediate necessities of the city and as he or she may deem wise and expedient, and to sell or exchange for other eligible securities and reinvest the proceeds of the securities so purchased. (Ord. 529 § 1, 2015; Ord. 2 § 1, 1982) 3.08.030 Sales of Securities. From time to time the city treasurer shall sell the securities in which city moneys have been invested pursuant to this chapter, so that the proceeds may, as appropriate, be applied to the purchase for which the original purchase money may have been designated or placed in the city treasury. (Ord.2 § 1 1982) 3.08.040 City bonds. Bonds issued by the city and purchased pursuant to this chapter may be cancelled either in satisfaction of sinking fund obligations or otherwise if proper and appropriate; provided, however, that the bonds may be held uncancelled and while so held may be resold. (Ord. 2 § 1 (part), 1982) 3.08.050 Reports. The city treasurer shall make a quarterly report to the city council of all investments made pursuant to the authority delegated in this chapter and as permitted by Section 53646(b)(1) of the Government Code. (Ord. 529 § 1, 2015; Ord. 2 § 1, 1982) APPENDIX B 152 Page 17 of 27 3.08.060 Deposits of securities. Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized to deposit for safekeeping, the securities in which city moneys have been invested pursuant to this chapter, in any institution or depository authorized by the city council adopted investment policy and terms of any state law, including, but not limited to, Section 53608 of the Government Code, as it now reads or may hereafter be amended. In accordance with said section, the city treasurer shall take from the institution or depository a receipt for the securities so deposited and shall not be responsible for the securities delivered to and receipted for by the institution or depository until they are withdrawn therefrom by the city treasurer. (Ord. 529 § 1, 2015; Ord. 2 § 1, 1982) 3.08.070 Trust fund administration. Any departmental trust fund established by the city council pursuant to Section 36523 of the Government Code shall be administered by the city treasurer in accordance with Section 36523 and 36524 of the Government Code and any other applicable provisions of law. (Ord. 2 § 1, 1982) 153 Page 18 of 27 Function Responsible Parties Develop and recommend modifications to the City's formal Investment Policy City Treasurer, Financial Services Analyst, and Financial Advisory Commission Review City's Investment Policy and recommend City Council action City Manager and City Attorney Adopt formal Investment Policy City Council Implement formal Investment Policy City Treasurer Review financial institutions and select investments City Treasurer or Financial Servies Analyst Acknowledge investment selections City Manager or his/her designee Execute investment transactions City Manager, City Treasurer, or Financial Services Analyst Confirm wires Accounting Manager, Accountant, or Management Assistant Record investment transactions in City's accounting records Accounting Manager or Accountant Investment cerification- match broker confirmation to City's investment records City Treasurer or Financial Services Analyst Reconcile investment records to accounting records and bank statements Financial Services Analyst Reconcile investment records to treasurer's report of investments City Treasurer, Accounting Manager, or Financial Services Analyst Security of investments at City Accounting Manager or Management Assistant Security of investments outside of City Third Party Custodian Review internal control procedures External Auditor SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES APPENDIX C 154 Page 19 of 27 INVESTMENT MANAGEMENT PROCESS AND RISK Except as provided for in Section 27000.3, Government Code Section 53600.3 declares as a trustee each person, treasurer, or governing body authorized to make Banking Services -Wells Fargo Bank, Government Services, Los Angeles, CA (Banking Services) -Bank of the West, San Francisco, CA (Banking Services) Custodian Services -The Bank of New York Mellon/Pershing LLC -Stifel Deferred Compensation -International City/County Management Association (ICCMA) Retirement Corporation Broker/Dealer Services -Stifel, Nicholaus, & Company, Inc. -Higgins Capital Management, Inc. -Great Pacific Securities Government/Joint Powers Authority Pools -State of California Local Agency Investment Fund (LAIF) -California Asset Management Program (CAMP) Trustee Services -US Bank (1) Other Post Employment Benefits (OPEB) Trust -California Employers' Retirement Benefits Trust (CERBT)/CalPERS Pension Trust - Administration -Public Agency Retirement Services (PARS) Listing of Approved Financial Institutions (1) US Bank is the fiscal agent for all of the following bonds: 2013 (refunded in 2021), 2014 (refunded in 2021), 2016, and 2021 Successor Agency to the La Quinta Redevelopment Agency (RDA) Bonds. US Bank is also the trustee and asset custodian for the PARS pension trust. APPENDIX D APPENDIX E 155 Page 20 of 27 investment decisions on behalf of local agencies. Trustees are subject to the prudent investor standard. These persons shall act with care, skill, prudence, and diligence under the circumstances then prevailing when investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing funds. Section 53600.5 further stipulates that the primary objective of any person investing public funds is to safeguard principal; secondly, to meet liquidity needs of the depositor; and lastly, to achieve a return or yield on invested funds (Government Code Section 27000.5 specifies the same objectives for county treasurers and board of supervisors). Risk is inherent throughout the investment process. There is investment risk associated with any investment activity and opportunity risk related to inactivity. Market risk is derived from exposure to overall changes in the general level of interest rates while credit risk is the risk of loss due to the failure of the insurer of a security. The market value of a security varies inversely with the level of interest rates. If an investor is required to sell an investment with a five percent yield in a comparable seven percent rate environment, that security will be sold at a loss. The magnitude of that loss will depend on the amount of time until maturity. Purchasing certain allowable securities with a maturity of greater than five years requires approval of the governing board (see Government Code Section 53601). Part of that approval process involves assessing and disclosing the risk and possible volatility of longer-term investments Another element of risk is liquidity risk. Instruments with call features or special structures, or those issued by little known companies, are examples of "story bonds" and are often thinly traded. Their uniqueness often makes finding prospective buyers in a secondary market more difficult and, consequently, the securities' marketability and price are discounted. However, under certain market conditions, gains are also possible with these types of securities. Default risk represents the possibility that the borrower may be unable to repay the obligation as scheduled. Generally, securities issued by the federal government and its agencies are considered the most secure, while securities issued by private corporations or negotiable certificates of deposit issued by commercial banks have a greater degree of risk. Securities with additional credit enhancements, such as bankers acceptances, collateralized repurchase agreements and collateralized bank deposits are somewhere between the two on the risk spectrum. The vast majority of portfolios are managed within a buy and hold policy. Investments are purchased with the intent and capacity to hold that security until maturity. At times, market forces or operations may dictate swapping one security for another or selling a security before maturity. Continuous analysis and fine tuning of the investment portfolio are considered prudent investment management. The Government Code contains specific provisions regarding the types of investments and practices permitted after considering the broad requirement of preserving principal and maintaining liquidity before seeking yield. These provisions are intended 156 Page 21 of 27 to promote the use of reliable, diverse, and safe investment instruments to better ensure a prudently managed portfolio worthy of public trust. Source: Chapter II. Fund Management from the Local Agency Investment Guidelines Issued by California Debt and Investment Advisory Commission GLOSSARY (Adopted from the Municipal Treasurers Association) APPENDIX F 157 Page 22 of 27 The purpose of this glossary is to provide the reader of the City of La Quinta investment policies with a better understanding of financial terms used in municipal investing. AGENCIES: Federal agency securities and/or Government-sponsored enterprises. ASKED: The price at which securities are offered. BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer. BROKER: A broker brings buyers and sellers together for a commission. CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large- denomination CD's are typically negotiable. COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMMERCIAL PAPER: Short-term unsecured promissory notes issued by a corporation to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation, IBM, Bank America, etc. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the City of La Quinta. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section. CONDUIT FINANCING: A form of Financing in which a government or a government agency lends its name to a bond issue, although it is acting only as a conduit between a specific project and bond holders. The bond holders can look only to the revenues from the project being financed for repayment and not to the government or agency whose name appears on the bond. COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery 158 Page 23 of 27 of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities). DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount. DISCOUNT SECURITIES: Non-interest-bearing money market instruments that are issued at discount and redeemed at maturity for full face value DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L's, small business firms, students, farmers, farm cooperatives, and exporters. FNMAs (Federal National Mortgage Association) - Like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. FHLBs (Federal Home Loan Bank Notes and Bonds) - Issued by the Federal Home Loan Bank System to help finance the housing industry. The notes and bonds provide liquidity and home mortgage credit to savings and loan associations, mutual savings banks, cooperative banks, insurance companies, and mortgage-lending institutions. They are issued irregularly for various maturities. The minimum denomination is $5,000. The notes are issued with maturities of less than one year and interest is paid at maturity. FLBs (Federal Land Bank Bonds) - Long-term mortgage credit provided to farmers by Federal Land Banks. These bonds are issued at irregular times for various maturities ranging from a few months to ten years. The minimum denomination is $1,000. They carry semi- annual coupons. Interest is calculated on a 360-day, 30-day month basis. FFCBs (Federal Farm Credit Bank) – Debt instruments used to finance the short and intermediate term needs of farmers and the national agricultural industry. They are issued monthly with three- and six-month maturities. The FFCB issues larger issues (one to ten year) on a periodic basis. These issues are highly liquid. 159 Page 24 of 27 FICBs (Federal Intermediate Credit Bank Debentures) - Loans to lending institutions used to finance the short-term and intermediate needs of farmers, such as seasonal production. They are usually issued monthly in minimum denominations of $3,000 with a nine-month maturity. Interest is payable at maturity and is calculated on a 360-day, 30-day month basis. FHLMCs (Federal Home Loan Mortgage Corporation) - a government sponsored entity established in 1970 to provide a secondary market for conventional home mortgages. Mortgages are purchased solely from the Federal Home Loan Bank System member lending institutions whose deposits are insured by agencies of the United States Government. They are issued for various maturities and in minimum denominations of $10,000. Principal and interest is paid monthly. Other federal agency issues are Small Business Administration notes (SBA's), Government National Mortgage Association notes (GNMA's), and Tennessee Valley Authority notes (TVA's). FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit per entity. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open- market operations. FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks (currently 12 regional banks) which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district Bank. FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 regional banks and about 3,000 commercial banks that are members of the system. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FMHM mortgages. The term "pass- throughs" is often used to describe Ginnie Maes. LAIF (Local Agency Investment Fund): - A special fund in the State Treasury which local agencies may use to deposit funds for investment. There is no minimum investment period, the minimum transaction is $5,000 and the City follows the state guidance for 160 Page 25 of 27 maximum total balance. The City is restricted to a maximum of ten transactions per month. It offers high liquidity because deposits can be converted to cash in 24 hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share basis determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly. The State retains an amount for reasonable costs of making the investments, not to exceed one-half of one percent of the earnings. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase--reverse repurchase agreements that establish each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer- lender to liquidate the underlying securities in the event of default by the seller-borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded. NRSRO (NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION): A credit rating agency recognized by the Securities and Exchange Commission (SEC). Examples include Fitch Ratings, Inc., Moody’s Investor’s Services, Inc., and S&P Global Ratings, among others. OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid. OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool. PORTFOLIO: Collection of all cash and securities under the direction of the City Treasurer, including Bond Proceeds. PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve 161 Page 26 of 27 Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) registered securities broker- dealers, banks and a few unregulated firms. QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. REPURCHASE AGREEMENT (RP OR REPO) and REVERSE REPURCHASE AGREEMENTS (RRP or RevRepo): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is increasing bank reserves. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See Uniform Net Capital Rule. SSAE 16: The Statement on Standards for Attestation Engagements No. 16 (SSAE 16) is a set of auditing standards and guidance on using the standards, published by the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA) for redefining and updating how service companies report on compliance controls. The Service Organizational Control report (SOC-1) contains internal controls over financial reporting and is used by auditors and office controllers. STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, SLMA, etc.) and Corporations which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, and derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve. SURPLUS FUNDS: Section 53601 of the California Government Code defines surplus funds as any money not required for immediate necessities of the local agency. The City has defined immediate necessities to be payment due within one week. 162 Page 27 of 27 TREASURY BILLS: A non-interest- bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months or one year. TREASURY BONDS: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years. TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. UNIFORM PRUDENT INVESTOR ACT: The State of California has adopted this Act. The Act contains the following sections: duty of care, diversification, review of assets, costs, compliance determinations, delegation of investments, terms of prudent investor rule, and application. YIELD: The rate of annual return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. 163 164 City of La Quinta CITY COUNCIL MEETING: May 4, 2021 STAFF REPORT AGENDA TITLE: ACCEPT CITYWIDE MISCELLANEOUS AMERICANS WITH DISABILITIES ACT IMPROVEMENTS PROJECT NO. 2020-02 (COMMUNITY DEVELOPMENT BLOCK GRANT PROJECT NO. 4.LQ.41.20) LOCATED ON THE EAST SIDE OF JEFFERSON STREET SOUTH OF AVENUE 50 AND SOUTHWEST CORNER OF WASHINGTON STREET AND AVENUE 47 RECOMMENDATION Accept the Citywide Miscellaneous Americans with Disabilities Act Improvements Project as complete; authorize the City Clerk to file a Notice of Completion with the Office of the County Recorder; and authorize staff to release retention in the amount of $5,619, thirty-five days after the Notice of Completion is recorded. EXECUTIVE SUMMARY •The Citywide Miscellaneous American with Disabilities Act (ADA) Improvements project included constructing curb ramps and sidewalk. •The work is complete and Council acceptance will close the contract and allow final payment. FISCAL IMPACT The following is the financial accounting for Project No. 2020-02: Original Contract Amount $ 107,998 Contract Change Order No. 1 $ 4,386 Final Contract Amount $ 112,384 City Project Budget CDBG Contribution Project Budget Total $ 56,538 $ 127,462 $ 184,000 Final Contract Amount ($ 112,384) Design, Professional, & Personnel Costs ($ 26,369) CONSENT CALENDAR ITEM NO. 10 165 Inspection, Survey, Plans, & Other Construction Costs ($ 3,852) Anticipated Funds Remaining* $ 41,395 * All costs to date have been accounted for and no further costs are anticipated . There are adequate funds to close this project; the final retention amount of $5,619 will be paid from account number 401-0000-20600. The anticipated savings ($41,395) will remain as available appropriations for this project until the completion of all phases. BACKGROUND/ANALYSIS On February 16, 2021, Council awarded a $107,998 contract to Universal Construction and Engineering. On March 4, 2021, a Notice to Proceed was issued with a 15-working day completion time starting on March 8, 2021 and ending on March 26, 2021. The project was deemed substantially complete on March 19, 2021. No liquidated damages or early completion incentives are recommended. Contract Change Order No. 1 was issued to allow for tree removal and fence repair due to wind. The project construction effort is complete and in compliance with the plans and specifications. Staff recommends acceptance and release of the retention thirty-five days after the Notice of Completion is recorded. ALTERNATIVES Staff does not recommend an alternative. Prepared by: Carley Escarrega, Management Assistant Approved by: Bryan McKinney, P.E., Public Works Director/City Engineer Attachment: 1. Vicinity Map 166 *IMPORTANT* Maps and data are to be used for reference purposes only. Map features are approximate, and are not necessarily accurate to surveying or engineering standards. The County of Riverside makes no warranty or guarantee as to the content (the source is often third party), accuracy, timeliness, or completeness of any of the data provided, and assumes no legal responsibility for the information contained on this map. Any use of this product with respect to accuracy and precision shall be the sole responsibility of the user. © Riverside County GIS Legend From Avenue 50 to Derek Alan Drive Notes REPORT PRINTED ON...2/7/2019 11:38:16 AM Vicinity Map 0 12,0376, 019 Feet Blueline Streams City Areas World Street Map ATTACHMENT 1 ATTACHMENT 1167 168 City of La Quinta CITY COUNCIL MEETING: May 4, 2021 STAFF REPORT AGENDA TITLE: APPROVE AGREEMENT FOR CONTRACT SERVICES WITH FISHER INTEGRATED, INC FOR VIDEO STREAMING AND WEBSITE HOSTING SERVICES RELATED TO PUBLIC MEETINGS RECOMMENDATION Approve Agreement for Contract Services with Fisher Integrated, Inc. for a total not to exceed amount of $24,000 per fiscal year; and authorize the City Manager to execute the agreement. EXECUTIVE SUMMARY In 2015, following a request for proposals, the City replaced the audio/visual (AV) control system in the Council Chamber, which was installed in 1993. The new system allowed for video recording and web streaming of public meetings, and the City contracted with Fisher Integrated, Inc. for these services. Staff recommends executing a new Agreement for Contract Services (Agreement) (Attachment 1) with Fisher Integrated, Inc. to continue to provide public meetings recording, livestreaming, equipment overhead maintenance, and archival storage and hosting services. FISCAL IMPACT Total compensation to be paid under this Agreement is not to exceed $24,000 per fiscal year; the Agreement’s initial term is for three years and allows for a one-time three-year term extension. Funds will be budgeted accordingly for each fiscal year in the Information Technology Account No. 502-0000-60104. CONSENT CALENDAR ITEM NO. 11 169 BACKGROUND/ANALYSIS In 2015, following a request for proposals, the City upgraded the AV control system in the Council Chamber, which was installed in 1993 when the building was constructed. Following the upgrade, in September 2015, the City contracted with Fisher Integrated, Inc. (formerly 12-Miles Out) to provide recording and livestreaming of Council meetings, equipment overhead maintenance, and archival storage and hosting services of video recordings (Services). In April 2020, the City executed Amendment 1 to the Agreement and expanded the scope of services to include recording and livestreaming of all public meetings, including City boards and commissions, to ensure transparency and facilitate virtual public participation. This was due to the imminent and proximate threat to public health from COVID-19, which triggered the declaration of statewide and local emergencies in March 2020 and resulted in the temporary closure of public facilities. Staff proposes to execute a three-year agreement with Fisher Integrated, Inc. to continue to provide the Services under the City’s select source provision of the Purchasing Policy due to the complexity of the Council Chamber AV system. This would ensure continuity of operations as the infrastructure is already in place, and there will be no additional costs associated with staff time and getting a new system installed and operational. As technology continues to evolve, the City will continue to monitor and evaluate the AV system capabilities and performance and if any necessary upgrades to the Chamber control systems are required, the City will solicit proposals and evaluate the services as well at that time. ALTERNATIVES Council may elect not to approve this Agreement or approve the Agreement only in part. Prepared by: Monika Radeva, City Clerk Approved by: Jon McMillen, City Manager Attachment: 1. Agreement for Contract Services with Fisher Integrated, Inc. 170 AGREEMENT FOR CONTRACT SERVICES THI S AGREEMENT FOR CONTRACT SERVICES (the “Agreement”) is made and entered into by and between the CITY OF LA QUINTA, (“City”), a California municipal corporation, and FISHER INTEGRATED, INC., a California S- Corporation (“Contracting Party”). The parties hereto agree as follows: 1.SERVICES OF CONTRACTING PARTY. 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Contracting Party shall provide those services related to video, recording, streaming and website hosting services for public meetings, as specified in the “Scope of Services” attached hereto as “Exhibit A” and incorporated herein by this reference (the “Services”). Contracting Party represents and warrants that Contracting Party is a provider of first-class work and/or services and Contracting Party is experienced in performing the Services contemplated herein and, in light of such status and experience, Contracting Party covenants that it shall follow industry standards in performing the Services required hereunder, and that all materials, if any, will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase “industry standards” shall mean those standards of practice recognized by one or more first-class firms performing similar services under similar circumstances. 1.2 Compliance with Law. All Services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations, and laws of the City and any Federal, State, or local governmental agency of competent jurisdiction. 1.3 Wage and Hour Compliance, Contracting Party shall comply with applicable Federal, State, and local wage and hour laws. 1.4 Licenses, Permits, Fees and Assessments. Except as otherwise specified herein, Contracting Party shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of the Services required by this Agreement, including a City of La Quinta business license. Contracting Party and its employees, agents, and subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required for the performance of the Services required by this Agreement. Contracting Party shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the performance of the Services required by this Agreement, and shall indemnify, defend (with counsel selected by City), and hold City, its elected officials, officers, ATTACHMENT 1 171 -2- employees, and agents, free and harmless against any such fees, assessments, taxes, penalties, or interest levied, assessed, or imposed against City hereunder. Contracting Party shall be responsible for all subcontractors’ compliance with this Section. 1.5 Familiarity with Work. By executing this Agreement, Contracting Party warrants that (a) it has thoroughly investigated and considered the Services to be performed, (b) it has investigated the site where the Services are to be performed, if any, and fully acquainted itself with the conditions there existing, (c) it has carefully considered how the Services should be performed, and (d) it fully understands the facilities, difficulties, and restrictions attending performance of the Services under this Agreement. Should Contracting Party discover any latent or unknown conditions materially differing from those inherent in the Services or as represented by City, Contracting Party shall immediately inform City of such fact and shall not proceed except at Contracting Party’s risk until written instructions are received from the Contract Officer, or assigned designee (as defined in Section 4.2 hereof). 1.6 Standard of Care. Contracting Party acknowledges and understands that the Services contracted for under this Agreement require specialized skills and abilities and that, consistent with this understanding, Contracting Party’s work will be held to an industry standard of quality and workmanship. Consistent with Section 1.5 hereinabove, Contracting Party represents to City that it holds the necessary skills and abilities to satisfy the industry standard of quality as set forth in this Agreement. Contracting Party shall adopt reasonable methods during the life of this Agreement to furnish continuous protection to the Services performed by Contracting Party, and the equipment, materials, papers, and other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the Services by City, except such losses or damages as may be caused by City’s own negligence. The performance of Services by Contracting Party shall not relieve Contracting Party from any obligation to correct any incomplete, inaccurate, or defective work at no further cost to City, when such inaccuracies are due to the negligence of Contracting Party. 1.7 Additional Services. In accordance with the terms and conditions of this Agreement, Contracting Party shall perform services in addition to those specified in the Scope of Services (“Additional Services”) only when directed to do so by the Contract Officer, or assigned designee, provided that Contracting Party shall not be required to perform any Additional Services without compensation. Contracting Party shall not perform any Additional Services until receiving prior written authorization (in the form of a written 172 -3- change order if Contracting Party is a contractor performing the Services) from the Contract Officer, or assigned designee, incorporating therein any adjustment in (i) the Contract Sum, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of Contracting Party. It is expressly understood by Contracting Party that the provisions of this Section shall not apply to the Services specifically set forth in the Scope of Services or reasonably contemplated therein. It is specifically understood and agreed that oral requests and/or approvals of Additional Services shall be barred and are unenforceable. Failure of Contracting Party to secure the Contract Officer’s, or assigned designee’s written authorization for Additional Services shall constitute a waiver of any and all right to adjustment of the Contract Sum or time to perform this Agreement, whether by way of compensation, restitution, quantum meruit, or the like, for Additional Services provided without the appropriate authorization from the Contract Officer, or assigned designee. Compensation for properly authorized Additional Services shall be made in accordance with Section 2.3 of this Agreement. 1.8 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in “Exhibit D” (the “Special Requirements”), which is incorporated herein by this reference and expressly made a part hereof. In the event of a conflict between the provisions of the Special Requirements and any other provisions of this Agreement, the provisions of the Special Requirements shall govern. 2.COMPENSATION. 2.1 Contract Sum. For the Services rendered pursuant to this Agreement, Contracting Party shall be compensated in accordance with “Exhibit B” (the “Schedule of Compensation”) in a total amount not to exceed Twenty Four Thousand Dollars ($24,000.00) per fiscal year for the life of the Agreement, encompassing the initial and any extended terms. (the “Contract Sum”), except as provided in Section 1.7. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment in accordance with the percentage of completion of the Services, payment for time and materials based upon Contracting Party’s rate schedule, but not exceeding the Contract Sum, or such other reasonable methods as may be specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Contracting Party at all project meetings reasonably deemed necessary by City; Contracting Party shall not be entitled to any additional compensation for attending said meetings. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses when and if specified in the Schedule of Compensation. 173 -4- Regardless of the method of compensation set forth in the Schedule of Compensation, Contracting Party’s overall compensation shall not exceed the Contract Sum, except as provided in Section 1.7 of this Agreement. 2.2 Method of Billing & Payment. Any month in which Contracting Party wishes to receive payment, Contracting Party shall submit to City no later than the tenth (10th) working day of such month, in the form approved by City’s Finance Director, an invoice for Services rendered prior to the date of the invoice. Such invoice shall (1) describe in detail the Services provided, including time and materials, and (2) specify each staff member who has provided Services and the number of hours assigned to each such staff member. Such invoice shall contain a certification by a principal member of Contracting Party specifying that the payment requested is for Services performed in accordance with the terms of this Agreement. Upon approval in writing by the Contract Officer, or assigned designee, and subject to retention pursuant to Section 8.3, City will pay Contracting Party for all items stated thereon which are approved by City pursuant to this Agreement no later than thirty (30) days after invoices are received by the City’s Finance Department. 2.3 Compensation for Additional Services. Additional Services approved in advance by the Contract Officer, or assigned designee, pursuant to Section 1.7 of this Agreement shall be paid for in an amount agreed to in writing by both City and Contracting Party in advance of the Additional Services being rendered by Contracting Party. Any compensation for Additional Services amounting to five percent (5%) or less of the Contract Sum may be approved by the Contract Officer, or assigned designee. Any greater amount of compensation for Additional Services must be approved by the La Quinta City Council, the City Manager, or Department Director, depending upon City laws, regulations, rules and procedures concerning public contracting. Under no circumstances shall Contracting Party receive compensation for any Additional Services unless prior written approval for the Additional Services is obtained from the Contract Officer, or assigned designee, pursuant to Section 1.7 of this Agreement. 3.PERFORMANCE SCHEDULE. 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. If the Services not completed in accordance with the Schedule of Performance, as set forth in Section 3.2 and “Exhibit C”, it is understood that the City will suffer damage. 3.2 Schedule of Performance. All Services rendered pursuant to this Agreement shall be performed diligently and within the time period established in “Exhibit C” (the “Schedule of Performance”). Extensions to the 174 -5- time period specified in the Schedule of Performance may be approved in writing by the Contract Officer, or assigned designee. 3.3 Force Majeure. The time period specified in the Schedule of Performance for performance of the Services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Contracting Party, including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than City, and unusually severe weather, if Contracting Party shall within ten (10) days of the commencement of such delay notify the Contract Officer, or assigned designee, in writing of the causes of the delay. The Contract Officer, or assigned designee, shall ascertain the facts and the extent of delay, and extend the time for performing the Services for the period of the forced delay when and if in the Contract Officer’s judgment such delay is justified, and the Contract Officer’s determination, or assigned designee, shall be final and conclusive upon the parties to this Agreement. Extensions to time period in the Schedule of Performance which are determined by the Contract Officer, or assigned designee, to be justified pursuant to this Section shall not entitle the Contracting Party to additional compensation in excess of the Contract Sum. 3.4 Term. Unless earlier terminated in accordance with the provisions in Article 8.0 of this Agreement, the term of this agreement shall commence on July 1, 2021, and terminate on June 30, 2024 (“Initial Term”). This Agreement may be extended for one (1) additional three (3) year term upon mutual agreement by both parties (“Extended Term”). 4.COORDINATION OF WORK. 4.1 Representative of Contracting Party. The following principals of Contracting Party (“Principals”) are hereby designated as being the principals and representatives of Contracting Party authorized to act in its behalf with respect to the Services specified herein and make all decisions in connection therewith: (a)Marlene Fisher, CEO - Tel No. (760) 390-7360 E-mail: marlene@fi-in.com (b)Ryan Fisher, President Tel No. (760) 613-4572 Email: ryan@fi-in.com 175 -6- It is expressly understood that the experience, knowledge, capability, and reputation of the foregoing Principals were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing Principals shall be responsible during the term of this Agreement for directing all activities of Contracting Party and devoting sufficient time to personally supervise the Services hereunder. For purposes of this Agreement, the foregoing Principals may not be changed by Contracting Party and no other personnel may be assigned to perform the Services required hereunder without the express written approval of City. 4.2 Contract Officer. The “Contract Officer”, otherwise known as Monika Radeva, City Clerk or assigned designee may be designated in writing by the City Manager of the City. It shall be Contracting Party’s responsibility to assure that the Contract Officer, or assigned designee, is kept informed of the progress of the performance of the Services, and Contracting Party shall refer any decisions, that must be made by City to the Contract Officer, or assigned designee. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer, or assigned designee. The Contract Officer, or assigned designee, shall have authority to sign all documents on behalf of City required hereunder to carry out the terms of this Agreement. 4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability, and reputation of Contracting Party, its principals, and its employees were a substantial inducement for City to enter into this Agreement. Except as set forth in this Agreement, Contracting Party shall not contract or subcontract with any other entity to perform in whole or in part the Services required hereunder without the express written approval of City. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated, or encumbered, voluntarily or by operation of law, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Contracting Party, taking all transfers into account on a cumulative basis. Any attempted or purported assignment or contracting or subcontracting by Contracting Party without City’s express written approval shall be null, void, and of no effect. No approved transfer shall release Contracting Party of any liability hereunder without the express consent of City. 4.4 Independent Contractor. Neither City nor any of its employees shall have any control over the manner, mode, or means by which Contracting Party, its agents, or its employees, perform the Services required herein, except as otherwise set forth herein. City shall have no voice in the selection, 176 -7- discharge, supervision, or control of Contracting Party’s employees, servants, representatives, or agents, or in fixing their number or hours of service. Contracting Party shall perform all Services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Contracting Party shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Contracting Party in its business or otherwise or a joint venture or a member of any joint enterprise with Contracting Party. Contracting Party shall have no power to incur any debt, obligation, or liability on behalf of City. Contracting Party shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. Except for the Contract Sum paid to Contracting Party as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Contracting Party for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Contracting Party for injury or sickness arising out of performing the Services hereunder. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Contracting Party and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits. Contracting Party agrees to pay all required taxes on amounts paid to Contracting Party under this Agreement, and to indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Contracting Party shall fully comply with the workers’ compensation laws regarding Contracting Party and Contracting Party’s employees. Contracting Party further agrees to indemnify and hold City harmless from any failure of Contracting Party to comply with applicable workers’ compensation laws. City shall have the right to offset against the amount of any payment due to Contracting Party under this Agreement any amount due to City from Contracting Party as a result of Contracting Party’s failure to promptly pay to City any reimbursement or indemnification arising under this Section. 4.5 Identity of Persons Performing Work. Contracting Party represents that it employs or will employ at its own expense all personnel required for the satisfactory performance of any and all of the Services set forth herein. Contracting Party represents that the Services required herein will be performed by Contracting Party or under its direct supervision, and 177 -8- that all personnel engaged in such work shall be fully qualified and shall be authorized and permitted under applicable State and local law to perform such tasks and services. 4.6 City Cooperation. City shall provide Contracting Party with any plans, publications, reports, statistics, records, or other data or information pertinent to the Services to be performed hereunder which are reasonably available to Contracting Party only from or through action by City. 5. INSURANCE. 5.1 Insurance. Prior to the beginning of any Services under this Agreement and throughout the duration of the term of this Agreement, Contracting Party shall procure and maintain, at its sole cost and expense, and submit concurrently with its execution of this Agreement, policies of insurance as set forth in “Exhibit E” (the “Insurance Requirements”) which is incorporated herein by this reference and expressly made a part hereof. 5.2 Proof of Insurance. Contracting Party shall provide Certificate of Insurance to Agency along with all required endorsements. Certificate of Insurance and endorsements must be approved by Agency’s Risk Manager prior to commencement of performance. 6. INDEMNIFICATION. 6.1 Indemnification. To the fullest extent permitted by law, Contracting Party shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officers, employees, agents, and volunteers as set forth in “Exhibit F” (“Indemnification”) which is incorporated herein by this reference and expressly made a part hereof. 7. RECORDS AND REPORTS. 7.1 Reports. Contracting Party shall periodically prepare and submit to the Contract Officer, or assigned designee, such reports concerning Contracting Party’s performance of the Services required by this Agreement as the Contract Officer, or assigned designee, shall require. Contracting Party hereby acknowledges that City is greatly concerned about the cost of the Services to be performed pursuant to this Agreement. For this reason, Contracting Party agrees that if Contracting Party becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Services contemplated herein or, if Contracting Party is providing design services, the cost of the project being designed, Contracting Party shall promptly notify the Contract Officer, or assigned designee, of said fact, circumstance, technique, or event and the estimated 178 -9- increased or decreased cost related thereto and, if Contracting Party is providing design services, the estimated increased or decreased cost estimate for the project being designed. 7.2 Records. Contracting Party shall keep, and require any subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports (including but not limited to payroll reports), studies, or other documents relating to the disbursements charged to City and the Services performed hereunder (the “Books and Records”), as shall be necessary to perform the Services required by this Agreement and enable the Contract Officer, or assigned designee, to evaluate the performance of such Services. Any and all such Books and Records shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer, or assigned designee, shall have full and free access to such Books and Records at all times during normal business hours of City, including the right to inspect, copy, audit, and make records and transcripts from such Books and Records. Such Books and Records shall be maintained for a period of three (3) years following completion of the Services hereunder, and City shall have access to such Books and Records in the event any audit is required. In the event of dissolution of Contracting Party’s business, custody of the Books and Records may be given to City, and access shall be provided by Contracting Party’s successor in interest. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds Ten Thousand Dollars ($10,000.00), this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of City, for a period of three (3) years after final payment under this Agreement. 7.3 Ownership of Documents. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents, and other materials plans, drawings, estimates, test data, survey results, models, renderings, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings, digital renderings, or data stored digitally, magnetically, or in any other medium prepared or caused to be prepared by Contracting Party, its employees, subcontractors, and agents in the performance of this Agreement (the “Documents and Materials”) shall be the property of City and shall be delivered to City upon request of the Contract Officer, or assigned designee, or upon the expiration or termination of this Agreement, and Contracting Party shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the Documents and Materials hereunder. Any use, reuse or assignment of such completed Documents and 179 -10- Materials for other projects and/or use of uncompleted documents without specific written authorization by Contracting Party will be at City’s sole risk and without liability to Contracting Party, and Contracting Party’s guarantee and warranties shall not extend to such use, revise, or assignment. Contracting Party may retain copies of such Documents and Materials for its own use. Contracting Party shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any Documents and Materials prepared by them, and in the event Contracting Party fails to secure such assignment, Contracting Party shall indemnify City for all damages resulting therefrom. 7.4 In the event City or any person, firm, or corporation authorized by City reuses said Documents and Materials without written verification or adaptation by Contracting Party for the specific purpose intended and causes to be made or makes any changes or alterations in said Documents and Materials, City hereby releases, discharges, and exonerates Contracting Party from liability resulting from said change. The provisions of this clause shall survive the termination or expiration of this Agreement and shall thereafter remain in full force and effect. 7.5 Licensing of Intellectual Property. This Agreement creates a non- exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, rights of reproduction, and other intellectual property embodied in the Documents and Materials. Contracting Party shall require all subcontractors, if any, to agree in writing that City is granted a non-exclusive and perpetual license for the Documents and Materials the subcontractor prepares under this Agreement. Contracting Party represents and warrants that Contracting Party has the legal right to license any and all of the Documents and Materials. Contracting Party makes no such representation and warranty in regard to the Documents and Materials which were prepared by design professionals other than Contracting Party or provided to Contracting Party by City. City shall not be limited in any way in its use of the Documents and Materials at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk. 7.6 Release of Documents. The Documents and Materials shall not be released publicly without the prior written approval of the Contract Officer, or assigned designee, or as required by law. Contracting Party shall not disclose to any other entity or person any information regarding the activities of City, except as required by law or as authorized by City. 7.7 Confidential or Personal Identifying Information. Contracting Party covenants that all City data, data lists, trade secrets, documents with personal identifying information, documents that are not public records, draft 180 -11- documents, discussion notes, or other information, if any, developed or received by Contracting Party or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Contracting Party to any person or entity without prior written authorization by City or unless required by law. City shall grant authorization for disclosure if required by any lawful administrative or legal proceeding, court order, or similar directive with the force of law. All City data, data lists, trade secrets, documents with personal identifying information, documents that are not public records, draft documents, discussions, or other information shall be returned to City upon the termination or expiration of this Agreement. Contracting Party’s covenant under this section shall survive the termination or expiration of this Agreement. 8. ENFORCEMENT OF AGREEMENT. 8.1 California Law. This Agreement shall be interpreted, construed, and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Contracting Party covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 8.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer, or assigned designee; provided that if the default is an immediate danger to the health, safety, or general welfare, City may take such immediate action as City deems warranted. Compliance with the provisions of this Section shall be a condition precedent to termination of this Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party’s right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City’s right to terminate this Agreement without cause pursuant to this Article 8.0. During the period of time that Contracting Party is in default, City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, City may, in its sole discretion, elect to pay some or all of the outstanding invoices during any period of default. 181 -12- 8.3 Retention of Funds. City may withhold from any monies payable to Contracting Party sufficient funds to compensate City for any losses, costs, liabilities, or damages it reasonably believes were suffered by City due to the default of Contracting Party in the performance of the Services required by this Agreement. 8.4 Waiver. No delay or omission in the exercise of any right or remedy of a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. City’s consent or approval of any act by Contracting Party requiring City’s consent or approval shall not be deemed to waive or render unnecessary City’s consent to or approval of any subsequent act of Contracting Party. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 8.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 8.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, at law or at equity, to cure, correct, or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. 8.7 Termination Prior To Expiration of Term. This Section shall govern any termination of this Agreement, except as specifically provided in the following Section for termination for cause. City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days’ written notice to Contracting Party. Upon receipt of any notice of termination, Contracting Party shall immediately cease all Services hereunder except such as may be specifically approved by the Contract Officer, or assigned designee. Contracting Party shall be entitled to compensation for all Services rendered prior to receipt of the notice of termination and for any Services authorized by the Contract Officer, or assigned designee, thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, or assigned designee, except amounts held as a retention pursuant to this Agreement. 8.8 Termination for Default of Contracting Party. If termination is due to the failure of Contracting Party to fulfill its obligations under this Agreement, Contracting Party shall vacate any City-owned property which Contracting 182 -13- Party is permitted to occupy hereunder and City may, after compliance with the provisions of Section 8.2, take over the Services and prosecute the same to completion by contract or otherwise, and Contracting Party shall be liable to the extent that the total cost for completion of the Services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Contracting Party for the purpose of setoff or partial payment of the amounts owed City. 8.9 Attorneys’ Fees. If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorneys’ fees; provided, however, that the attorneys’ fees awarded pursuant to this Section shall not exceed the hourly rate paid by City for legal services multiplied by the reasonable number of hours spent by the prevailing party in the conduct of the litigation. Attorneys’ fees shall include attorneys’ fees on any appeal, and in addition a party entitled to attorneys’ fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery, and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. The court may set such fees in the same action or in a separate action brought for that purpose. 9. CITY OFFICERS AND EMPLOYEES; NONDISCRIMINATION. 9.1 Non-liability of City Officers and Employees. No officer, official, employee, agent, representative, or volunteer of City shall be personally liable to Contracting Party, or any successor in interest, in the event or any default or breach by City or for any amount which may become due to Contracting Party or to its successor, or for breach of any obligation of the terms of this Agreement. 9.2 Conflict of Interest. Contracting Party covenants that neither it, nor any officer or principal of it, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Contracting Party’s performance of the Services under this Agreement. Contracting Party further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent, or subcontractor without the express written consent of the Contract Officer, or assigned designee. Contracting Party agrees to at all times avoid conflicts of interest or the 183 -14- appearance of any conflicts of interest with the interests of City in the performance of this Agreement. No officer or employee of City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to this Agreement which effects his financial interest or the financial interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. Contracting Party warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement. 9.3 Covenant against Discrimination. Contracting Party covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any impermissible classification including, but not limited to, race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry in the performance of this Agreement. Contracting Party shall take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry. 10. MISCELLANEOUS PROVISIONS. 10.1 Notice. Any notice, demand, request, consent, approval, or communication either party desires or is required to give the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this Section. To City: CITY OF LA QUINTA Attention: Monika Radeva, City Clerk 78495 Calle Tampico La Quinta, California 92253 To Contracting Party: FISHER INTEGRATED, INC. Attention: Marlene Fisher, CEO 1084 N El Camino Real #B359 Encinitas, CA 92024 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 184 -15- 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 Contracting Party and by the City Council of City. The parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void. 10.7 Severability. In the event that any one or more of the articles, phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable, such invalidity or unenforceability shall not affect any of the remaining articles, phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless. 10.8 Unfair Business Practices Claims. In entering into this Agreement, Contracting Party offers and agrees to assign to City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials related to this Agreement. This assignment shall be made and become effective at the time City renders final payment to Contracting Party without further acknowledgment of the parties. 185 -16- 10.9 No Third-Party Beneficiaries. With the exception of the specific provisions set forth in this Agreement, there are no intended third-party beneficiaries under this Agreement and no such other third parties shall have any rights or obligations hereunder. 10.10 Authority. The persons executing this Agreement on behalf of each of the parties hereto represent and warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors, and assigns of the parties. [SIGNATURES ON FOLLOWING PAGE] 186 -17- IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. CITY OF LA QUINTA, a California Municipal Corporation JON McMILLEN, City Manager City of La Quinta, California Dated: FISHER INTEGRATED, INC.: MARLENE FISHER, CEO Dated: ______________________ ATTEST: MONIKA RADEVA, City Clerk City of La Quinta, California APPROVED AS TO FORM: WILLIAM H. IHRKE, City Attorney City of La Quinta, California 187 Exhibit A Page 1 of 5 Last revised summer 2017 Exhibit A Scope of Services Contracting Party will provide services relating to video recording and livestreaming services for public meetings, equipment overhead maintenance, related technical infrastructure upgrades, and archival storage and hosting of public meeting recordings as described in the attached proposal. 188 Streaming Video Proposal CITY OF LA QUINTA 4/13/2021 Exhibit A Page 2 of 5 EXHIBIT A SCOPE OF SERVICES 189 INTRODUCTION Fisher Integrated, Inc. is a vendor of managed information technology services and custom software solutions targeting primarily the public sector. We have been providing our base of government and non-government customers with reliable and affordable service since 2001. We understand the complexities which surround the successful deployment and the day-to-day operation of an enterprise-level municipal video service. Our software and workflows are optimized to utilize your organization’s existing infrastructure and our service allows the public and municipal staff unrivaled access to your city’s video and meeting agenda content. As our product is fully automated and entirely managed by us, its operation has absolutely no impact on city staff. Thank you for considering Fisher Integrated, Inc. as your city’s streaming media vendor. OVERVIEW Several components are required to webcast and archive municipal video. Fisher Integrated, Inc. will provide and manage each one of them allowing your city to enjoy the benefits this technology has to offer without becoming mired in the complexities of operating it. The principal components are as follows (numbers correspond with those provided in the RFP): 1. Video Recordings Fisher Integrated, Inc. will provide the City with a suitable live video encoder computer at no additional cost. This computer system will encode live video in the H.264 format ensuring the City’s video is accessible by the largest possible audience. It will be outfitted with whatever capture card is required by the City’s choice of video production equipment and will be provided in the form-factor of the City’s choosing. It will be maintained by Fisher Integrated, Inc. for the life of the service contract. 2. Agenda Indexing Fisher Integrated, Inc. differs from other video vendor in that we manage the entire video encoding and distribution system end to end. This includes the indexing and posting video of City meetings. We will even start and stop the encoder, freeing staff from any interaction with the streaming video system. Exhibit A Page 3 of 5 190 At the conclusion of public meetings the resulting video is edited to length, indexed by us based on the meeting’s agenda, and posted to your video archive website the same evening without any action from City Staff. Videos are always published the same evening in which they were recorded. 3. On-Line Video On-Demand Fisher Integrated, Inc. will work with City Staff to develop a custom video archive website. This website will mirror the look and feel of the existing City site and will allow both mobile and desktop users complete access to the City’s entire video library. All video content can be both streamed and downloaded giving users the option to save content to their computers should they chose to. A search system can be configured to specifications supplied by the City. Here is an example local government website which has features similar to those outlined in the RFP: https://coronado.12milesout.com For optimal performance, all live video is pushed to an enterprise CDN such as Azure or Amazon. Fisher Integrated, Inc. currently utilizes both cloud-based providers for video and other services. Fisher Integrated, Inc. is constantly updating our video archive sites to ensure the broadest compatibility with new devices, browsers, and other popular internet services. When appropriate, we will update your site to take advantage of a new feature-set at no additional cost to the City. Additionally, if the City should request a feature or interoperability with a third-party device or website, we will most-likely be able to fulfill these requests as part of our service contract. City videos are archived for the duration of the service contract. 4. Additional Requirements All modern browsers are supported by our platform, including IE8 and above. IOS 5 and up will work as will Android 3 and better (depending on the device’s manufacturer and the updates installed). The primary storage location for the City’s video archive is on our servers. This is done to best serve public-facing users and to allow us to transcode and replicate the video content as required. Exhibit A Page 4 of 5 191 5. Training Fisher Integrated, Inc. will provide whatever training materials and services the City requires. Although, as this service is 100% managed, there is almost zero interaction between Staff and the streaming video workflow. 6. Warranty & SLA Fisher Integrated, Inc. will manage and service the on-site video encoder throughout the duration of the service-contract. Our service is available 99.99% of the time with scheduled maintenance windows announced a minimum of one-week in advance. 7. Cost Fisher Integrated, Inc. can provide the City of La Quinta with the services outlined above for a fixed rate of $800 per month with includes two city meetings, with additional meetings being billed at $300 each. The monthly fee includes archive maintenance and other overhead and will be billed regardless of whether the two included meetings occurred or not. There are no setup fees associated with the service outlined in this proposal. Additionally, there are no traffic, viewer, bandwidth, storage, or other limits on the use of this service. Thank you for considering our company’s services. Should you have any further questions please don’t hesitate to contact me. If awarded this contract, I will be directly handling your account. Ryan Fisher Fisher Integrated, Inc. Email: ryan@fi-in.com 1084 N. El Camino Real B-359 Encinitas, CA 92024 Exhibit A Page 5 of 5 192 Exhibit B Page 1 of 1 Exhibit B Schedule of Compensation With the exception of compensation for Additional Services, provided for in Section 2.3 of this Agreement, the maximum total compensation to be paid to Contracting Party under this Agreement is not to exceed Twenty Four Thousand Dollars ($ 24,000.00) (“Contract Sum”) per year for the life of the Agreement, encompassing the initial and any extended terms. Monthly flat service charge for overhead and technology maintenance, archival storage, and hosting of public meeting records; and recording, livestreaming, indexing, and posting services of two (2) public meetings – $800 (= $9,600 per fiscal year) Any additional meeting – $300 (estimated 48 meetings per year for all City Boards and Commissions = $14,400). 193 Exhibit C Page 1 of 1 Exhibit C Schedule of Performance Contracting Party shall complete all services identified in the Scope of Services, Exhibit A of this Agreement, in accordance with the Project Schedule, attached hereto and incorporated herein by this reference. 194 Exhibit D Page 1 of 1 Exhibit D Special Requirements “None” 195 Exhibit E Page 1 of 7 Exhibit E Insurance Requirements E.1 Insurance. Prior to the beginning of and throughout the duration of this Agreement, the following policies shall be maintained and kept in full force and effect providing insurance with minimum limits as indicated below and issued by insurers with A.M. Best ratings of no less than A-VI: Commercial General Liability (at least as broad as ISO CG 0001) $1,000,000 (per occurrence) $2,000,000 (general aggregate) Must include the following endorsements: General Liability Additional Insured General Liability Primary and Non-contributory Commercial Auto Liability (at least as broad as ISO CA 0001) $1,000,000 (per accident) Personal Auto Declaration Page if applicable Errors and Omissions Liability $1,000,000 (per claim and aggregate) Workers’ Compensation (per statutory requirements) Must include the following endorsements: Workers Compensation with Waiver of Subrogation Workers Compensation Declaration of Sole Proprietor if applicable Contracting Party shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, Commercial General Liability insurance against all claims for injuries against persons or damages to property resulting from Contracting Party’s acts or omissions rising out of or related to Contracting Party’s performance under this Agreement. The insurance policy shall contain a severability of interest clause providing that the coverage shall be primary for losses arising out of Contracting Party’s performance hereunder and neither City nor its insurers shall be required to contribute to any such loss. An endorsement evidencing the foregoing and naming the City and its officers and employees as additional insured (on the Commercial General Liability policy only) must be submitted concurrently with the execution of this Agreement and approved by City prior to commencement of the services hereunder. Contracting Party shall carry automobile liability insurance of $1,000,000 per accident against all claims for injuries against persons or 196 Exhibit E Page 2 of 7 damages to property arising out of the use of any automobile by Contracting Party, its officers, any person directly or indirectly employed by Contracting Party, any subcontractor or agent, or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Contracting Party’s performance under this Agreement. If Contracting Party or Contracting Party’s employees will use personal autos in any way on this project, Contracting Party shall provide evidence of personal auto liability coverage for each such person. The term “automobile” includes, but is not limited to, a land motor vehicle, trailer or semi-trailer designed for travel on public roads. The automobile insurance policy shall contain a severability of interest clause providing that coverage shall be primary for losses arising out of Contracting Party’s performance hereunder and neither City nor its insurers shall be required to contribute to such loss. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Contracting Party and “Covered Professional Services” as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer’s duty to defend. The policy retroactive date shall be on or before the effective date of this agreement. Contracting Party shall 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. Contracting Party shall procure and maintain Cyber Liability insurance with limits of $1,000,000 per occurrence/loss which shall include the following coverage: a. Liability arising from the theft, dissemination and/or use of confidential or personally identifiable information; including credit monitoring and regulatory fines arising from such theft, dissemination or use of the confidential information. b. Network security liability arising from the unauthorized use of, access to, or tampering with computer systems. c. Liability arising from the failure of technology products (software) required under the contract for Consultant to properly perform the services intended. 197 Exhibit E Page 3 of 7 d. Electronic Media Liability arising from personal injury, plagiarism or misappropriation of ideas, domain name infringement or improper deep-linking or framing, and infringement or violation of intellectual property rights. e. Liability arising from the failure to render professional services. If coverage is maintained on a claims-made basis, Contracting Party shall maintain such coverage for an additional period of three (3) years following termination of the contract. Contracting Party shall provide written notice to City within ten (10) working days if: (1) any of the required insurance policies is terminated; (2) the limits of any of the required polices are reduced; or (3) the deductible or self-insured retention is increased. In the event any of said policies of insurance are cancelled, Contracting Party shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Exhibit to the Contract Officer. The procuring of such insurance or the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Contracting Party’s obligation to indemnify City, its officers, employees, contractors, subcontractors, or agents. E.2 Remedies. In addition to any other remedies City may have if Contracting Party fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option: a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. b. Order Contracting Party to stop work under this Agreement and/or withhold any payment(s) which become due to Contracting Party hereunder until Contracting Party demonstrates compliance with the requirements hereof. c. Terminate this Agreement. Exercise any of the above remedies, however, is an alternative to any other remedies City may have. The above remedies are not the exclusive remedies for Contracting Party’s failure to maintain or secure appropriate policies or endorsements. Nothing herein contained shall be construed as limiting in any way the extent to which Contracting Party may be held responsible for payments of damages to persons or property resulting from Contracting Party’s or its subcontractors’ performance of work under this Agreement. 198 Exhibit E Page 4 of 7 E.3 General Conditions Pertaining to Provisions of Insurance Coverage by Contracting Party. Contracting Party and City agree to the following with respect to insurance provided by Contracting Party: 1. Contracting Party agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials, employees, and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Contracting Party also agrees to require all contractors, and subcontractors to do likewise. 2. No liability insurance coverage provided to comply with this Agreement shall prohibit Contracting Party, or Contracting Party’s employees, or agents, from waiving the right of subrogation prior to a loss. Contracting Party agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise. 3. All insurance coverage and limits provided by Contracting Party and available or applicable to this Agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to City or its operations limits the application of such insurance coverage. 4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 5. No liability policy shall contain any provision or definition that would serve to eliminate so-called “third party action over” claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor. 6. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Contracting Party shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City’s protection without City’s prior written consent. 7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all the coverages required and an additional insured endorsement to Contracting Party’s general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems 199 Exhibit E Page 5 of 7 necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Contracting Party or deducted from sums due Contracting Party, at City option. 8. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Contracting Party or any subcontractor, is intended to apply first and on a primary, non-contributing basis in relation to any other insurance or self-insurance available to City. 9. Contracting Party agrees to ensure that subcontractors, and any other party involved with the project that is brought onto or involved in the project by Contracting Party, provide the same minimum insurance coverage required of Contracting Party. Contracting Party agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contracting Party agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review. 10. Contracting Party agrees not to self-insure or to use any self- insured retentions or deductibles on any portion of the insurance required herein (with the exception of professional liability coverage, if required) and further agrees that it will not allow any contractor, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self-insure its obligations to City. If Contracting Party’s existing coverage includes a deductible or self-insured retention, the deductible or self-insured retention must be declared to the City. At that time the City shall review options with the Contracting Party, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions. 11. The City reserves the right at any time during the term of this Agreement to change the amounts and types of insurance required by giving the Contracting Party ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Contracting Party, the City will negotiate additional compensation proportional to the increased benefit to City. 12. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 200 Exhibit E Page 6 of 7 13. Contracting Party acknowledges and agrees that any actual or alleged failure on the part of City to inform Contracting Party of non- compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard. 14. Contracting Party will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect. 15. Contracting Party shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Contracting Party’s insurance agent to this effect is acceptable. A certificate of insurance and an additional insured endorsement is required in these specifications applicable to the renewing or new coverage must be provided to City within five (5) days of the expiration of coverages. 16. The provisions of any workers’ compensation or similar act will not limit the obligations of Contracting Party under this agreement. Contracting Party expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials, and agents. 17. Requirements of specific coverage features, or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be limiting or all-inclusive. 18. These insurance requirements are intended to be separate and distinct from any other provision in this Agreement and are intended by the parties here to be interpreted as such. 19. The requirements in this Exhibit supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Exhibit. 20. Contracting Party agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Contracting Party for the cost of additional insurance 201 Exhibit E Page 7 of 7 coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto. 21. Contracting Party agrees to provide immediate notice to City of any claim or loss against Contracting Party arising out of the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. 202 Exhibit F Page 1 of 3 Exhibit F Indemnification F.1 Indemnity for the Benefit of City. a. Indemnification for Professional Liability. When the law establishes a professional standard of care for Contracting Party’s Services, to the fullest extent permitted by law, Contracting Party shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officials, employees, and agents (“Indemnified Parties”) from and against any and all claims, losses, liabilities of every kind, nature, and description, damages, injury (including, without limitation, injury to or death of an employee of Contracting Party or of any subcontractor), costs and expenses of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation, to the extent same are caused in whole or in part by any negligent or wrongful act, error or omission of Contracting Party, its officers, agents, employees or subcontractors (or any entity or individual that Contracting Party shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Contracting Party shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A without the written consent of the Contracting Party. b. Indemnification for Other Than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Contracting Party shall indemnify, defend (with counsel selected by City), and hold harmless the Indemnified Parties from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses) incurred in connection therewith and costs of investigation, where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Contracting Party or by any individual or entity for which Contracting Party is legally liable, including but not limited to officers, agents, employees, or subcontractors of Contracting Party. c. Indemnity Provisions for Contracts Related to Construction (Limitation on Indemnity). Without affecting the rights of City under any 203 Exhibit F Page 2 of 3 provision of this agreement, Contracting Party shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City’s active negligence accounts for only a percentage of the liability involved, the obligation of Contracting Party will be for that entire portion or percentage of liability not attributable to the active negligence of City. d. Indemnification Provision for Design Professionals. 1. Applicability of this Section F.1(d). Notwithstanding Section F.1(a) hereinabove, the following indemnification provision shall apply to a Contracting Party who constitutes a “design professional” as the term is defined in paragraph 3 below. 2. Scope of Indemnification. When the law establishes a professional standard of care for Contracting Party’s Services, to the fullest extent permitted by law, Contracting Party shall indemnify and hold harmless City and any and all of its officials, employees, and agents (“Indemnified Parties”) from and against any and all losses, liabilities of every kind, nature, and description, damages, injury (including, without limitation, injury to or death of an employee of Contracting Party or of any subcontractor), costs and expenses, including, without limitation, incidental and consequential damages, court costs, reimbursement of attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation, to the extent same are caused by any negligent or wrongful act, error or omission of Contracting Party, its officers, agents, employees or subcontractors (or any entity or individual that Contracting Party shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Contracting Party shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A without the written consent of the Contracting Party. 3. Design Professional Defined. As used in this Section F.1(d), the term “design professional” shall be limited to licensed architects, registered professional engineers, licensed professional land surveyors and landscape architects, all as defined under current law, and as may be amended from time to time by Civil Code § 2782.8. F.2 Obligation to Secure Indemnification Provisions. Contracting Party agrees to obtain executed indemnity agreements with provisions 204 Exhibit F Page 3 of 3 identical to those set forth herein this Exhibit F, as applicable to the Contracting Party, from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Contracting Party in the performance of this Agreement. In the event Contracting Party fails to obtain such indemnity obligations from others as required herein, Contracting Party agrees to be fully responsible according to the terms of this Exhibit. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth in this Agreement are binding on the successors, assigns or heirs of Contracting Party and shall survive the termination of this Agreement. 205 206 City of La Quinta CITY COUNCIL MEETING: May 4, 2021 STAFF REPORT AGENDA TITLE: APPROVE AMENDED UTILITY AGREEMENT WITH THE CITY OF LA QUINTA AND THE IMPERIAL IRRIGATION DISTRICT FOR THE DUNE PALMS ROAD BRIDGE PROJECT 2011-05/111205 FOR RELOCATION AND THE UNDERGROUNDING OF EXISTING ELECTRICAL FACILITIES RECOMMENDATION Approve Amended Utility Agreement with the City of La Quinta and the Imperial Irrigation District for the Dune Palms Road Bridge Project to address relocation and undergrounding of existing electrical facilities; and authorize the City Manager to execute the agreement. EXECUTIVE SUMMARY •City Council approved the utility agreement with Imperial Irrigation District (IID) on January 19, 2021. •Estimated costs for the proposed work have increased due to rising construction costs and revising the scope of work to underground poles south of the bridge to Highway 111. FISCAL IMPACT The following represents the cost share breakdown of estimated costs: Agency Cost Share La Quinta $551,292 IID $535,250 Total Estimated Cost $1,086,551 BACKGROUND/ANALYSIS The Project will construct an all-weather access bridge on Dune Palms Road at the Coachella Valley Stormwater Chanel (CVSC) that requires relocation of electrical facilities. City Council approved the utility agreement to underground the IID facilities at its January 19, 2021 meeting. Subsequent refining of cost by IID and CONSENT CALENDAR ITEM NO. 12 207 additional poles being undergrounded has increased the total project cost and cost share for each participant. The project development process is underway. The environmental document is complete, and the plans, specifications and estimates are approximately 99% complete. The right of way acquisition and utility clearance phase is approximately 95% complete. ALTERNATIVES As the Utility Agreement is required to certify right-of-way, no alternative is recommended. Prepared by: Bryan McKinney, Public Works Director/City Engineer Attachments: 1. Vicinity Map 2. IID Utility Agreement 208 Dune Palms Bridge PROJECT LOCATION HIGHWAY 111 Vicinity Map AVENUE 48 ATTACHMENT 1 209 210 ATTACHMENT 2 211 212 213 214 215 216 217 218 219 220 Monika Radeva, City Clerk William H. Ihrke, City Attorney Jon McMillen, City Manager 221 222 223 224 City of La Quinta CITY COUNCIL MEETING: May 4, 2021 STAFF REPORT AGENDA TITLE: APPROVE THIRD AMENDMENT TO MEMORANDUM OF UNDERSTANDING WITH THE COUNTY OF RIVERSIDE FOR A ONE-YEAR EXTENSION FOR LIBRARY, MUSEUM AND MAKERSPACE MANAGEMENT RECOMMENDATION Approve the Third Amendment to the Memorandum of Understanding with the County of Riverside for a one-year extension for the Library, Museum and Makerspace management; authorize the City Manager to execute the amendment. EXECUTIVE SUMMARY •The City has a Memorandum of Understanding (MOU) with the County of Riverside (County) to manage the La Quinta Library, Museum, and Makerspace. •All programs and services continue to be assessed, and new processes implemented due to the COVID-19 pandemic. •The MOU will expire on June 30, 2021 and this Third Amendment to the MOU (Amendment) (Attachment 1) will extend the agreement to June 30, 2022. FISCAL IMPACT The 2021/22 Library and Museum Fund budget incorporates funding for contract services in the amount of $1,360,190. BACKGROUND/ANALYSIS The County collects $2.7 million annually in library tax credits for the Library, Museum, and the Makerspace. Since 2004, the City has contracted with the County to manage the La Quinta Library. The MOU was amended and extended in previous years to include the management of the Museum and Makerspace. This MOU provides for the County to contract these services to LS&S. The total cost for these services is $1,360,190 and the breakdown is as follows: •Library management of $700,000; •Books and purchase of materials of $100,000; •Museum management of $195,000; •Makerspace management of $165,190; and •County technical and administration services of $200,000 a year. CONSENT CALENDAR ITEM NO. 13 225 The current MOU is set to expire on June 30, 2021. This extension will continue to allow the City to work with the County on current and post COVID-19 guidelines, compliance processes, facility improvements, and implement new service delivery as services fully reopen. The City will also work with the County on a multi-year agreement to begin fiscal year 2022-23. The Amendment is scheduled for the Riverside County Board of Supervisors review on June 8, 2021. Due to the specialized services and experience required for the Library, Museum, and Makerspace staff recommends extending the agreement with the County to continue providing these services to the community. ALTERNATIVES Council may modify and/or deny the extension of the MOU with the County. Prepared by: Approved by: Attachment: Christina Calderon, Community Resources Manager Chris Escobedo, Director of Community Resources 1. Third Amendment to the Memorandum of Understanding 226 Page 1 of 3 1 2 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 THIRD AMENDMENT TO THE MEMORANDUM OF UNDERSTANDING (MOU) TERMS AND CONDITIONS TO PROVIDE MANAGEMENT OF THE LA QUINTA BRANCH LIBRARY AND THE LA QUINTA MUSEUM This Third Amendment to the Memorandum of Understanding (“Third Amendment”) is made and entered into this ____day of _____________, 2021 (“Effective Date”) by and between the COUNTY OF RIVERSIDE (“COUNTY”), a political subdivision of the State of California, and the CITY OF LA QUINTA (“CITY”), a California municipal corporation. WHEREAS, the COUNTY and CITY entered into that certain Memorandum of Understanding (“MOU”) dated August 18, 2015 setting forth the terms and conditions for the COUNTY to provide management of the La Quinta Library and La Quinta Museum; and WHEREAS, the COUNTY and CITY entered into that certain First Amendment to the Memorandum of Understanding dated May 8, 2018 setting forth the terms and conditions for the COUNTY to provide management of the La Quinta Makerspace; and WHEREAS, the COUTY and CITY entered into that certain Second Amendment to the Memorandum of Understanding dated June 30, 2020 setting for the terms and conditions to extend the MOU for one (1) year; and WHEREAS, both parties have reached an agreement that they wish to extend the MOU for one (1) year as set forth in writing in the form of this Third Amendment. NOW THEREFORE, for good and valuable consideration the receipt and adequacy of which is hereby acknowledged, the parties agree as follows: 1.TERM. Section 1 of the MOU is hereby amended by the following: The term of the MOU shall be extended for one (1) year, commencing on July 1, 2021 and expiring on June 30, 2022 (“Extension Term”). The terms and conditions related to Makerspace Management shall remain in effect through and including June 30, 2022. CITY shall have one (1) option to extend the term of the MOU for one (1) year by written amendment to the MOU (“Extension Option”). In order to exercise the Extension Option, CITY must provide written ATTACHMENT 1 227 Page 2 of 3 1 2 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 notice to COUNTY of its desire to exercise said option at least thirty (30) days prior to the end of the Extension Term. 2. CAPITALIZED TERMS/THIRD AMENDMENT TO PREVAIL. Unless defined herein or the context requires otherwise, all capitalized terms herein shall have the meaning defined in the MOU, as heretofore amended. The provisions of this Third Amendment shall prevail over any inconsistency or conflicting provisions of the MOU, as heretofore amended, and shall supplement the remaining provisions thereof. 3. MISCELLANEOUS. Except as amended or modified herein, all the terms of the MOU shall remain in full force and effect and shall apply with the same force and effect. Time is of the essence in this Third Amendment and the MOU and each and all of their respective provisions. Subject to the provisions of the MOU as to assignment, the agreements, conditions and provisions herein contained shall apply to and bind the heirs, executors, administrators, successors and assigns of the parties hereto. If any provisions of this Third Amendment or the MOU shall be determined to be illegal or unenforceable, such determination shall not affect any other provision of the MOU and all such other provisions shall remain in full force and effect. The language in all parts of the MOU shall be construed according to its normal and usual meaning and not strictly for or against either COUNTY or CITY. 4. EFFECTIVE DATE. This Third Amendment shall not be binding or consummated until its approval by the Riverside County Board of Supervisors and fully executed by the Parties. [Signatures on following page] 228 Page 3 of 3 1 2 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 IN WITNESS WHEREOF, COUNTY and CITY have caused this Third Amendment to be duly executed this ____ day of ________________, 2021. COUNTY OF RIVERSIDE, a political CITY OF LA QUINTA, a California municipal subdivision of the State of California corporation By: ____________________________ By: ___________________________ Karen Spiegel, Chairman Jon McMillen, City Manager Board of Supervisors ATTEST: ATTEST: Kecia R. Harper Monika Radeva Clerk of the Board City Clerk By: ____________________________ By: Deputy Clerk APPROVED AS TO FORM: APPROVED AS TO FORM: Gregory P. Priamos, County Counsel By: _______________________________ By: _______________________________ Ryan Yabko Deputy County Counsel SH:AJ:DM:KC MT:TBD g:\library\contracts\city of la quinta - mou\mou_2021-2022\third amendment_year extension_2021- 2022.docx 229 230 City of La Quinta CITY COUNCIL MEETING: May 4, 2021 STAFF REPORT AGENDA TITLE: APPROVE CHANGE ORDER NO. 1 TO CONTRACT WITH CONVERGINT TECHNOLOGIES FOR THE CITYWIDE PUBLIC SAFETY CAMERA SYSTEM PROJECT (PROJECT NO. 2020-03) FOR INSTALLATION OF 12 STRAND FIBER, NEW CIRCUITS, CABLE AND RADIO RECOMMENDATION Approve Change Order No. 1 in the amount of $70,710 to Contract with Convergint Technologies for the Citywide Public Safety Camera System Project 2020-03 for installation of 12 strand fiber, new circuits, cable and radio; and authorize the City Manager to execute the change order. EXECUTIVE SUMMARY •On February 16, 2021, a contract was awarded to Convergint Technologies (Contractor) for the construction of the Citywide Public Safety Camera System (Project) at the locations identified in the Vicinity Map (Attachment 1) and construction began in March 2021. •Change Order No. 1 (Attachment 2) includes five (5) additional work requests: o Install one 12 strand fiber from City Hall to Library through existing conduit ($12,858.00) o Install one 12 strand fiber from City Hall to Wellness Center through existing conduit ($20,588.00) o Install new circuit at two locations requiring power for radio devices ($16,688.00) o Install one 12 strand fiber at Wellness Center Kitchen ($8,288.00) o Install cable and radio at Washington Street and Avenue 50 intersection ($12,288.00) FISCAL IMPACT There are sufficient funds in the project budget (Account No. 401-0000-60103, Project No. 2020-03) for change order in the amount of $70,710: Budget Public Safety Fund $ 1,372,296 Total Budget: $ 1,372,296 CONSENT CALENDAR ITEM NO. 14 231 The following is a list of all change orders to date: Total Contract Original Contract Amount: $ 1,211,296 This Contract Change Order No. 1: $ 70,710 Revised Contract Amount: $ 1,282,006 BACKGROUND/ANALYSIS At the January 15, 2019 meeting, the Council directed Staff to proceed with a pilot program of the public safety camera system. At the June 18, 2019 Council meeting Staff presented the findings of the pilot program. On December 3, 2019 Council directed Staff to retain Convergint Technologies to prepare design exhibits and scope specifications. On February 16, 2021, a contract was awarded to Convergint Technologies. Proposed Change Order No. 1 is recommended for approval in the amount of $70,710 for five (5) additional work requests. The working days will also be increased five (5) days. Apart from adding the radio to Washington Street and Av enue 50, the additional work requests are required to replace damaged or stolen wiring. During work, it was discovered that existing fiber at the Library and Wellness Center was damaged and would not be able to support the came ras at the Wellness Center, Library, Museum, and Lumber Yard. It was also discovered that the power sources on the light poles at the La Quinta Park were unusable because the power cable was stolen. The radio and cabling at Washington Street and Avenue 50 are required to allow for camera installation at Avenue 50 and Park Avenue. ALTERNATIVES Council may elect to not approve the change order. Prepared by: Carley Escarrega, Management Assistant Approved by: Bryan McKinney, Public Works Director/ City Engineer Attachment: 1. Vicinity Map 2. Change Order No. 1 232 332040910542141141535361832295217305428271913326768313725241212533823474849505111424645341644224339AVENIDA BERMUDASCALLE TECATEAVENIDA MONTEZUMA CALLE SINALOACALLE TAMPICOJEFFERSON STREET JEFFERSON STREET AVENUE 54MADISON STREET AIRPORT BOULEVARDEISENHOWER DRIVEAVENUE 52PARK AVENUE WASHINGTON STREET AVENUE 48AVENUE 49WASHINGTON STREETAVENUE 47BLACKHAWK WAYADAMS STREET MILES AVENUEFRED WARING DRIVEHIGHWAY 111AVENUE 50DUNE PALMS ROADSILVERROCK WAYDESERT CLUB DRIVE 555657P1P2F1-3F4F5NOTE: IMAGES NOTDRAWN TO SCALEEXISTING INTERSECTIONPROPOSED CAMERA LOCATIONAT INTERSECTIONPARK/FACILITYTOTAL CAMERAS:BASE BID - 80ADDITIVE ALTERNATE - 25OVERALL - 105ATTACHMENT 1ATTACHMENT 1233 234 Sheet 1 of 2 CONTRACT: Citywide Public Safety Camera System PROJECT #: 2020-03 CONTRACTOR: Convergint Technologies 1667 N. Batavia St Orange, CA 92867 CONTRACT CHANGE ORDER NO. 1 Pursuant to the terms of the original Contract Agreement, you are hereby directed to make the herein described changes or do the following described work not included in the plans and specifications for this Contract. Unless otherwise stated all work shall conform to the terms, general conditions, and special provisions of the original Contract. DESCRIPTION OF CHANGE This Contract Change Order allows for one 12 strand fiber from City Hall to Library Total $12,858.00 This Contract Change Order allows for one 12 strand fiber from City Hall to Wellness Center Total $20,588.00 This Contract Change Order allows for new circuit at two locations Total $16,688.00 This Contract Change Order allows for one 12 strand fiber at Wellness Center Kitchen Total $8,288.00 This Contract Change Order allows for cable and radio at Washington Street and Ave 50 Total $12,288.00 By reason of this contract change order the time of completion is adjusted as follows: - 0 - days added to contract time. The contract completion date shall be: 06/14/2021 Submitted By: Date: Approved By: Date: We, the undersigned Contractor, have given careful consideration to the change proposed and hereby agree , if this proposal is approved, that we will provide all equipment, furnish all materials, perform all labor, except as may be noted above, and perform all services necessary to complete the above specified work, and hereby accept as full payment the amount shown above, which includes all direct and indirect overhead expenses for any delays. Accepted By: Title: Contractor: Date: Original Contract Amount $1,211,295.79 Add This Change Order No. 1 $ 70,710.00 Revised Contract Total $1,282,005.79 ATTACHMENT 2 235 236 City of La Quinta CITY COUNCIL MEETING: May 4, 2020 STAFF REPORT AGENDA TITLE: APPROVE ADDENDUM NO. 2 TO THIRD AMENDMENT AND RESTATEMENT OF JOINT POWERS AGREEMENT OF THE COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS ADMITTING THE TWENTY-NINE PALMS BAND OF MISSION INDIANS TRIBE AS A MEMBER RECOMMENDATION Approve Addendum No. 2 to the Third Amendment and Restatement of the Joint Powers Agreement of the Coachella Valley Association of Governments admitting the Twenty-Nine Palms Band of Mission Indians Tribe as a member; and authorize the City Manager to execute Addendum No. 2. EXECUTIVE SUMMARY The City of La Quinta has been a member of the Coachella Valley Association of Governments (CVAG) Joint Powers Authority (JPA) since 1989. Through CVAG, the City has participated in regional-oriented transportation, air quality, homeless shelter, and environmental planning, funding and project implementation activities. In February 2021, the Twenty-Nine Palms Band of Mission Indians Tribe (Tribe) submitted a request to become a member of CVAG’s JPA (Attachment 1). On April 21, 2021, the CVAG Executive Committee considered the request and voted unanimously to allow the Tribe to join CVAG via the enclosed Addendum No. 2 to the Third Amendment and Restatement of the CVAG JPA (Attachment 2). FISCAL IMPACT – None. CONSENT CALENDAR ITEM NO. 15 237 BACKGROUND/ANALYSIS CVAG was created in 1973 with the approval of the first JPA. The City has been a member of CVAG JPA since 1989, after voters passed Measure A, which resulted in amending and restating CVAG’s JPA to specify its role as the regional transportation authority. The JPA requires each member jurisdiction to approve changes to the JPA. This Addendum No. 2 was reviewed and approved by CVAG’s Executive Committee on April 26, 2021 (Attachment 3). CVAG is circulating Addendum No. 2 for members’ approval. ALTERNATIVES Council may elect not to approve this Addendum No. 2; or provide alternative direction to staff. Prepared by: Monika Radeva, City Clerk Approved by: Jon McMillen, City Manager Attachments: 1. Twenty-Nine Palms Band of Mission Indians request to join CVAG dated February 10, 2021 2. Addendum No. 2 to Third Amendment and Restatement of the Joint Powers Agreement of the CVAG Admitting the Twenty-Nine Palms Band of Mission Indians Tribe as a Member of CVAG 3. CVAG staff report dated April 26, 2021 238 ATTACHMENT 1 239 ADDENDUM NO. 2 TO THIRD AMENDMENT AND RESTATEMENT OF THE JOINT POWERS AGREEMENT OF THE COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS ADMITTING THE TWENTY-NINE PALMS BAND OF MISSION INDIANS TRIBE AS A MEMBER OF THE COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS This Addendum to the Third Amendment and Restatement of the Joint Powers Agreement of the Coachella Valley Association of Governments (“Addendum”) is entered into as of the date of the last signature appended to this Addendum, by and between the Twenty-Nine Palms Tribe (“Admittee”), on the one hand, and the County of Riverside, City of Coachella, City of Indio, City of La Quinta, City if Indian Wells, City of Palm Desert, City of Rancho Mirage, City of Cathedral City, City of Palm Springs, City of Desert Hot Springs, City of Blythe, Agua Caliente Band of Cahuilla Indians, Cabazon Band of Mission Indians, and the Torres Martinez Desert Cahuilla Indians (“Current Parties”), on the other hand. RECITALS A. Current Parties constitute the total membership of the Coachella Valley Association of Governments (“CVAG”) and are parties to the Third Amendment and Restatement of the Joint Powers Agreement of the Coachella Valley Association of Governments (“Third Restatement”). B. Admittee is a federally recognized tribe and public agency, as that term is defined in Government Code section 6500, and formerly a member of CVAG. C. Admittee desires to join CVAG as a member and Current Parties are willing to admit Admittee as a member under the terms and conditions set forth in this Addendum. D. Section 6.1 of the Third Restatement allows for the admission of additional public agencies to membership in CVAG subject to consent of two -thirds of the Current Parties and execution of an addendum to the Third R estatement signed by all Current Parties and Admittee. NOW, THEREFORE, in consideration of the foregoing and of the mutual promises and covenants herein contained, Current Parties and Admittee agree as follows: Admission of Admittee Admittee is hereby admitted as a member of CVAG, subject to all of the rights , obligations and responsibilities set forth in the Third Restatement. Execution of this ATTACHMENT 2 240 Addendum by Admittee shall be the legal equivalent of Admittee’s execution of the Third Restatement as a party thereto. The parties to this Addendum have caused it to be executed on their behalf as of the date specified below, respectively, as follows: City of Blythe City of Cathedral City By: _____________________________ By: _____________________________ Date: ____________ Date: ____________ City of Coachella City of Desert Hot Springs By: _____________________________ By: _____________________________ Date: ____________ Date: ____________ City of Indian Wells City of Indio By: _____________________________ By: _____________________________ Date: ____________ Date: ____________ City of La Quinta City of Palm Desert By: _____________________________ By: _____________________________ Date: ____________ Date: ____________ City of Palm Springs City of Rancho Mirage By: _____________________________ By: _____________________________ Date: ____________ Date: ____________ County of Riverside Agua Caliente Band of Cahuilla Indians By: _____________________________ By: _____________________________ Date: ____________ Date: ____________ 241 Cabazon Band of Mission Indians Torres Martinez Desert Cahuilla Indians By: _____________________________ By: _____________________________ Date: ____________ Date: ____________ Twenty-Nine Palms Band of Mission Indians By: _____________________________ Date: ____________ 242 ITEM 7A Staff Report Subject: CVAG Membership for Twenty-Nine Palms Band of Mission Indians Contact: Tom Kirk, Executive Director (tkirk@cvag.org) Recommendation: Approve Addendum No. 2 to the Third Amendment and Restatement of the CVAG Joint Powers Agreement, which establishes the Twenty-Nine Palms Band of Mission Indians as a formal member and direct the Executive Director to distribute to member jurisdictions for approval Administrative/ Personnel Committee: CONCURS (Meeting of April 19th) Background: CVAG was formed in November 1973 with the approval of the first Joint Powers Agreement (JPA). In 1989 – after voters passed Measure A – CVAG amended and restated the JPA to specify its role as the regional transportation authority. In 1998, the JPA was amended again to include the City of Blythe as a member. CVAG’s members have since authorized separate JPA agreements for the Coachella Valley Conservation Commission and for Desert Community Energy. In April 2018, the Executive Committee approved the Third Amendment to the Joint Powers Authority, which better reflected CVAG’s mission and organizational structure and included the Agua Caliente Band of Cahuilla Indians and the Cabazon Band of Mission Indians. Most recently, in December 2019, the Torres Martinez Desert Cahuilla Indians re-joined CVAG through an addendum approved by each CVAG jurisdiction. As mentioned at the February 23, 2021 Executive Committee meeting, CVAG staff was approached by the Chairman of the Twenty-Nine Palms Band of Mission Indians, and the tribe is requesting to join CVAG. The letter is attached for member information. CVAG Legal Counsel has reviewed Addendum No. 2 to the JPA to add this membership. Once approved by the Executive Committee, CVAG staff will re-circulate the JPA Addendum No. 2 to all its member jurisdictions for their approval and signature. Given the addition of two member jurisdictions, CVAG’s By-Laws will need to be updated to include both the Torres Martinez Desert Cahuilla Indians and the Twenty-Nine Palms Band of Mission Indians in the officer rotation, which has a specified rotation order. CVAG staff will present the updated By-Laws at a future Executive Committee agenda for approval. Fiscal Analysis: There is no fiscal impact to the JPA addendum. The costs involved in recirculating the JPA will be covered under existing staff time. Upon membership, representatives of the Twenty- Nine Palms Tribe will receive per diems/stipend for attending meetings. ATTACHMENT 3 243 The Twenty-Nine Palms Band of Mission Indians will also be required to pay dues. These assessments are based on the lowest dues paid by jurisdictions. In fiscal year 2020/21, the assessment was $8,698 for CVAG’s tribal members. Attachments: Letter from Twenty-Nine Palms Band of Mission Indians Draft Addendum No. 2 to the CVAG JPA 244 City of La Quinta CITY COUNCIL MEETING: May 4, 2021 STAFF REPORT AGENDA TITLE: APPROVE DEMAND REGISTERS DATED APRIL 16, AND 23, 2021 RECOMMENDATION Approve demand registers dated April 16, and 23, 2021. EXECUTIVE SUMMARY – None FISCAL IMPACT Demand of Cash: City 2,029,472.27$ Succe ssor Agency of RDA 3,005.00$ Housing Authority 312,597.49$ 2,345,074.76$ BACKGROUND/ANALYSIS Routine bills and payroll must be paid between Council meetings. Attachment 1 details the weekly demand registers for April 16, and 23, 2021. Warrants Issued: 204546-204610 1,161,047.08$ 204611-204659 727,183.64$ EFT 113 68.94$ VOIDS (10,747.81)$ Wire Transfers 209,058.24$ Payroll Tax Transfers 49,744.36$ Payroll Direct Deposit 208,720.31$ 2,345,074.76$ In the amounts listed above, three checks were voids and re-issued. Two were for vendor non-receipt, and the other void was due to the vendor revising the original invoice. CONSENT CALENDAR ITEM NO. 16 245 The most significant expenditures on the demand registers are: Account Name Amount Onyx Paving Company Construction 528,895.38$ Jan-Feb Washington St Triple Left Project Granite Construction Construction 435,710.44$ Village Complete St Retention Payment Convergint Techologies Construction 164,498.97$ Citywide Public Safety Camera System GHD Inc Construction 111,385.00$ Hwy 111 Corridor Form Base Design Coachella Valley Assoc of Government Homelessness Assistance 100,000.00$ FY 20-21 Homeless Prevention Services Coachella Valley Rescue Mission Homelessness Assistance 100,000.00$ FY 20-21 Homeless Prevention Services Martha's Village Kitchen Homelessness Assistance 100,000.00$ FY 20-21 Homeless Prevention Services PurposeVendor Wire Transfers: Seven transfers totaled $209,058. Of this amount, $164,293 was to Landmark, and $39,451 was to CalPERS. (See Attachment 2 for a complete listing). Investment Transactions: Full details of investment transactions as well as total holdings are reported quarterly in the Treasurer’s Report. Transaction Issuer Type Par Value Settle Date Coupon Rate Purchase Green State Credit Union CD 249,000$ 4/16/21 0.950% Maturity American Express Centurion CD 240,000$ 4/19/21 2.250% Call Fed Home Loan Mortgage Corp Agency 1,000,000$ 4/21/21 0.700% Purchase Toyota Financial Savings CD 245,000$ 4/22/21 0.900% Purchase United States Government Treasury 500,000$ 4/22/21 0.375% ALTERNATIVES Council may approve, partially approve, or reject the demand registers. Prepared by: Jesse Batres, Account Technician Approved by: Rosemary Hallick, Financial Services Analyst Attachments:1. Demand Registers 2.Wire Transfers 246 4/26/2021 12:04:56 PM Page 1 of 6 City of La Quinta Packet: APPKT02756 - JB 04/16/2021 AmountVendor Name Payment Number Description (Item)Account Name Account Number Fund: 101 - GENERAL FUND 955.42Advertising02/12-02/19/21 - STVR FEES UPDATE204564DESERT SUN PUBLISHING, LLC 101-1005-60450 441.00Advertising02/17/21 - PUBLIC HEARING204564DESERT SUN PUBLISHING, LLC 101-6002-60450 441.00Advertising02/05/21 - PUBLIC HEARING NOTICE204564DESERT SUN PUBLISHING, LLC 101-6002-60450 562.12Operating Supplies04/12/2021 - POLO STAFF SHIRTS204590PALMS TO PINES PRINTING 101-3003-60420 18.00Instructors03/25/21 - REC INSTRUCTOR FINGERPRINT…204546111 NOTARY SERVICES 101-3002-60107 327.60Instructors04/08/21 - LINE DANCING204595SHIRY, TERESA 101-3002-60107 470.00Instructors04/08/21 - STRETCH & RESTORE204580JOHNSON, KAREN T. PAYNE 101-3002-60107 168.00Instructors04/08/21 - ESSENTIAL FITNESS204594RUDY, LORI A 101-3002-60107 8.40Instructors04/08/21 - ESSENTIAL FITNESS DI204594RUDY, LORI A 101-3002-60107 157.50Instructors04/09/21 - TAI CHI CHUAN OUTDOORS204584MEDEIROS, JOYCELEEN 101-3002-60107 55.80Postage04/09/21 - REIMBURSEMENT FOR POSTA…204583MCGINLEY, LAURIE 101-1007-60470 114.32Cable - Utilities03/24-04/23/21 - FS #93 CABLE (2415)204603TIME WARNER CABLE 101-2002-61400 89.99Cable - Utilities04/03-05/02/21 - FS #93 INTERNET (3514)204603TIME WARNER CABLE 101-2002-61400 89.99Cable - Utilities03/29-04/28/21 - FS #32 INTERNET (6491)204603TIME WARNER CABLE 101-2002-61400 58.65Operating Supplies04/07/21 - PAINT SPRAYER TIP & PAINTIN…204602THE SHERWIN-WILLIAMS CO.101-7003-60420 500.00Grants & Economic Developm…10/08/20 - CS GRANT FUNDING FY 20/21 …204562COACHELLA VALLEY WATERKE…101-3001-60510 25.00Travel & Training11/17-11/18/20- FEDERAL TRAINING COU…204556CALIFORNIA STATE UNIVERSITY…101-7006-60320 95.00Recruiting/Pre-Employment03/22/21 - PRE-EMPLOYMENT PHYSICAL204568EISENHOWER OCCUPATIONAL…101-1004-60129 62.50Community Experiences02/26/21- REISSUE PILLARS OF COMMUNI…204591POWERS AWARDS INC 101-3003-60149 598.00Community Experiences01/01/21-01/01/22 - SPECIAL EVENT INSU…204547ALLIANT INSURANCE SERVICES …101-3003-60149 42.35Recruiting/Pre-Employment03/01-04/01/2021 - PRE-EMPLOYMENT B…204578IRC CORPORATION 101-1004-60129 449.04Operating Supplies03/31/21 - DECALS 2022204601THE PRINTING PLACE 101-6006-60420 131.31PM 10 - Dust Control03/15-04/11/21 - PM 10 ANSWERING SVC204549ANSAFONE CONTACT CENTERS 101-7006-60146 6,600.00Maintenance/Services04/05/21 - PALM TREE REMOVAL (4)204608VINTAGE ASSOCIATES 101-3005-60691 600.00Maintenance/Services04/06/21 - MAIN LINE LEAK REPAIRS204608VINTAGE ASSOCIATES 101-3005-60691 90.00Membership Dues05/05/21-05/05/22 - MMASC MEMBERSH…204586MMASC 101-1002-60351 700.00Community Experiences04/17/21 - SERVING ITALIAN ICE CUPS204566E & E PELS ENTERPRISE, INC 101-3003-60149 247.91Fire Station03/30/21 - POS PAPER FOR FS204597STAPLES ADVANTAGE 101-2002-60670 75.21Fire Station03/30/21 - FINISH JETDRY LIQUID FOR FS …204597STAPLES ADVANTAGE 101-2002-60670 690.14Uniforms04/02/21 - UNIFORMS204585MISSION LINEN SUPPLY 101-3005-60690 500.00Uniforms04/02/21 - UNIFORMS204585MISSION LINEN SUPPLY 101-3008-60690 4,120.00Professional Services04/2021 - STVR CONTRACT SERVICES204587MUNIREVS INC 101-6006-60103 1,155.84Temporary Agency Services03/26/21 - TEMP AGENCY SVCS M.GONZA…204593ROBERT HALF TECHNOLOGY 101-6006-60125 1,155.84Temporary Agency Services04/02/21 - TEMP AGENCY SVCS M.GONZA…204593ROBERT HALF TECHNOLOGY 101-6006-60125 1,200.00Maintenance/Services03/24/21 - C.H SAIL REPAIR204589PALMS TO PINES CANVAS 101-3008-60691 26.23Postage03/26/21 - OVERNIGHT MAIL204570FEDEX 101-1007-60470 330.00Blood/Alcohol Testing02/08-02/18/21 - BLOOD/ALCOHOL ANAL…204548AMERICAN FORENSIC NURSES …101-2001-60174 9,670.55Marketing & Tourism Promoti…04/06/21 - PHOTOGRAPHY AND VIDEO SV…204559CITYGIRL MARKETING 101-3007-60461 21,618.86Marketing & Tourism Promoti…02/2021-04/2021 INVOICES & 04/2021 RE…204579JNS MEDIA SPECIALISTS 101-3007-60461 1,253.56Materials/Supplies03/31/21 - CONSTRUCTION ROCK & SAND204605TRI-STATE MATERIALS INC 101-3005-60431 1,256.44Materials/Supplies04/01/21 - CONSTRUCTION ROCK & SAND204605TRI-STATE MATERIALS INC 101-3005-60431 880.52Materials/Supplies04/02/21 - LANDSCAPE DG204605TRI-STATE MATERIALS INC 101-3005-60431 877.33Telephone - Utilities02/26-03/25/21 - LQPD CELL (6852)204606VERIZON WIRELESS 101-2001-61300 48.57Telephone - Utilities04/2021 - LQ PARK PHONE204572FRONTIER COMMUNICATIONS…101-3005-61300 38.25Telephone - Utilities03/28-04/27/21 - SPORT COMPLEX PHONE204572FRONTIER COMMUNICATIONS…101-3005-61300 86.62Gas - Utilities03/01-03/30/21 - FS #93 GAS SVC204599THE GAS COMPANY 101-2002-61100 405.00Credit Card Fees03/31/2021 - ANNUAL MEMBERSHIP FEE204550BANK OF THE WEST 101-1006-60122 19.75Materials/Supplies02/25/21 - SUPPLIES FOR COUNCIL CHAM…204550BANK OF THE WEST 101-3008-60431 79.00Materials/Supplies03/02/21 - SUPPLIES FOR COUNCIL CHAM…204550BANK OF THE WEST 101-3008-60431 8.15Office Supplies03/01/21 - WALL CALENDAR 2021204550BANK OF THE WEST 101-1006-60400 10.86Office Supplies03/01/21 - LAPTOP STAND J.DELGADO204550BANK OF THE WEST 101-1006-60400 28.06Community Experiences03/15/21 - BACK DROP FOR EASTER EVENT204550BANK OF THE WEST 101-3003-60149 87.99Membership Dues03/05/21 - MAILCHIMP204550BANK OF THE WEST 101-3007-60351 ATTACHMENT 1 Demand Register 247 Demand Register Packet: APPKT02756 - JB 04/16/2021 4/26/2021 12:04:56 PM Page 2 of 6 AmountVendor Name Payment Number Description (Item)Account Name Account Number 14.99Marketing & Tourism Promoti…03/10/21 - APPLE MUSIC M.GRAHAM204550BANK OF THE WEST 101-3007-60461 88.26Marketing & Tourism Promoti…03/31/21 - FB BOOST ADS204550BANK OF THE WEST 101-3007-60461 44.34Marketing & Tourism Promoti…03/31/21 - FB BOOST ADS204550BANK OF THE WEST 101-3007-60461 216.90Marketing & Tourism Promoti…03/31/21 - FB BOOST ADS204550BANK OF THE WEST 101-3007-60461 26.09Marketing & Tourism Promoti…03/31/21 - FB BOOST ADS204550BANK OF THE WEST 101-3007-60461 0.99Marketing & Tourism Promoti…03/22/21 - ICLOUD STORAGE K.CAMARENA204550BANK OF THE WEST 101-3007-60461 300.24Materials/Supplies03/16/21 - ADHESIVE GLUE SPRAY204550BANK OF THE WEST 101-3008-60431 -645.19Materials/Supplies03/04/21 - EQUIPMENT DEPOSIT REFUND204550BANK OF THE WEST 101-3005-60431 -3.50Sales Taxes Payable03/04/21 - 2021 UNIFORM GRANTS GUID…204550BANK OF THE WEST 101-0000-20304 -22.74Sales Taxes Payable03/11/21 - BATTERY & CHARGER (2)204550BANK OF THE WEST 101-0000-20304 150.00Recruiting/Pre-Employment03/15/21 - ONLINE JOB AD204550BANK OF THE WEST 101-1004-60129 1,035.00Membership Dues03/15/21 - WORLD AT WORK MEMBERSHI…204550BANK OF THE WEST 101-1004-60351 130.00Membership Dues03/02/21 - CAPPO MEMBERSHIP D.ARME…204550BANK OF THE WEST 101-1006-60351 45.48Subscriptions & Publications03/04/21 - 2021 UNIFORM GRANTS GUID…204550BANK OF THE WEST 101-1006-60352 302.78Special Enforcement Funds03/11/21 - BATTERY & CHARGER (2)204550BANK OF THE WEST 101-2001-60175 151.18Special Enforcement Funds03/15/21 - DRONE PROPELLER GUARDS &…204550BANK OF THE WEST 101-2001-60175 160.00Travel & Training03/23/21 - DRONE PILOT EXAM - VANGORP204550BANK OF THE WEST 101-2001-60320 160.00Travel & Training03/23/21 - DRONE PILOT EXAM - DEPUTY …204550BANK OF THE WEST 101-2001-60320 160.00Travel & Training03/23/21 - DRONE PILOT EXAM - DEPUTY …204550BANK OF THE WEST 101-2001-60320 160.00Travel & Training03/23/21 - DRONE PILOT EXAM - DEPUTY…204550BANK OF THE WEST 101-2001-60320 160.00Travel & Training03/23/21 - DRONE PILOT TEST204550BANK OF THE WEST 101-3001-60320 160.00Travel & Training03/23/21 - DRONE PILOT EXAM - E.ESCOB…204550BANK OF THE WEST 101-3001-60320 175.00Travel & Training03/09-03/10/21 - JPIA PARKS & REC ACAD…204550BANK OF THE WEST 101-3002-60320 340.00Community Experiences02/25/21 - GOLF TOUR WEBSITE UPDATE …204550BANK OF THE WEST 101-3003-60149 14.55Community Experiences02/25/21 - CELLOPHANE WRAP204550BANK OF THE WEST 101-3003-60149 98.85Community Experiences03/15/21 - BASKETS FOR EVENT204550BANK OF THE WEST 101-3003-60149 121.63Community Experiences03/10/21 - GIFT BASKET BAGS204550BANK OF THE WEST 101-3003-60149 63.59Community Experiences03/15/21 - EASTER EVENT SUPPLIES204550BANK OF THE WEST 101-3003-60149 75.96Community Experiences03/17/21 - EASTER EVENT SUPPLIES204550BANK OF THE WEST 101-3003-60149 83.30Community Experiences03/25/21 - EASTER EVENT SUPPLIES204550BANK OF THE WEST 101-3003-60149 1,750.00Travel & Training03/11/21 - PC ACADEMY REGISTRATION204550BANK OF THE WEST 101-6002-60320 40.83Travel & Training03/02/21 - DINNER FOR CC MEETING204550BANK OF THE WEST 101-1001-60320 26.43Travel & Training03/24/21 - LUNCH MEETING WITH PAYDAR204550BANK OF THE WEST 101-1001-60320 26.22Travel & Training03/29/21 - LUNCH MEETING WITH R.GRE…204550BANK OF THE WEST 101-1001-60320 40.40Travel & Training02/25/21 - DINNER FOR SPECIAL CC MEET…204550BANK OF THE WEST 101-1001-60320 31.18Operating Supplies03/08/21 - BLACKBOARD PENS204550BANK OF THE WEST 101-1002-60420 11.63Office Supplies03/11/21 - CLEANING WIPES204550BANK OF THE WEST 101-1002-60400 11.96Office Supplies03/11/21 - WINDEX WINDOW CLEANER (4)204550BANK OF THE WEST 101-1002-60400 15.21Community Experiences02/25/21 - SHRINK WRAP BAGS204550BANK OF THE WEST 101-3003-60149 19.56Community Experiences03/10/21 - EASTER EVENT SUPPLIES204550BANK OF THE WEST 101-3003-60149 79.84Marketing & Tourism Promoti…02/28/21 - FB BOOST ADS204550BANK OF THE WEST 101-3007-60461 13.91Marketing & Tourism Promoti…02/28/21 - FB BOOST ADS204550BANK OF THE WEST 101-3007-60461 30.32Marketing & Tourism Promoti…02/28/21 - FB BOOST ADS204550BANK OF THE WEST 101-3007-60461 195.87Marketing & Tourism Promoti…02/28/21 - FB BOOST ADS204550BANK OF THE WEST 101-3007-60461 21.20Operating Supplies03/15/21 - WRITING PENS204550BANK OF THE WEST 101-6006-60420 153.94Office Supplies03/11/21 - OFFICE SHELF204550BANK OF THE WEST 101-1005-60400 185.00Fritz Burns Pool Maintenance03/17/2021 - FB POOL EMERGENCY CLEAN…204588OCEAN SPRINGS TECH INC 101-3005-60184 250.00Fritz Burns Pool Maintenance04/06/21 - CAT 5000 PREVENTIVE MAINT…204588OCEAN SPRINGS TECH INC 101-3005-60184 1,641.68Fritz Burns Pool Maintenance04/07/21 - WADING CHEMICAL SYSTEM I…204588OCEAN SPRINGS TECH INC 101-3005-60184 546.00Professional Services04/08/21 - SCANNING SERVICES CITYWIDE204607VIATRON SYSTEMS INC 101-1005-60103 394.91Materials/Supplies04/05/21 - PLANTS204608VINTAGE ASSOCIATES 101-3005-60431 121.22Materials/Supplies04/05/21 - PLANTS204608VINTAGE ASSOCIATES 101-3005-60431 447.16Materials/Supplies04/07/21 - PLANTS204608VINTAGE ASSOCIATES 101-3005-60431 2,327.75ConsultantsQ3/2020 - CONTRACT/AUDIT SVCS TRANS …204576HINDERLITER DE LLAMAS & AS…101-1006-60104 3,948.75Developer Deposits03/2021 - TRAVERTINE EIR CONTINUED R…204598TERRA NOVA PLANNING & RE…101-0000-22810 Fund 101 - GENERAL FUND Total:75,820.34 Fund: 201 - GAS TAX FUND 938.69Traffic Control Signs04/02/21 - TRAFFIC CONTROL SIGNS204604TOPS' N BARRICADES INC 201-7003-60429 181.50Traffic Control Signs04/06/21 - TRAFFIC CONTROLS SIGNS204604TOPS' N BARRICADES INC 201-7003-60429 455.93Traffic Control Signs04/08/21 - TRAFFIC CONTROL SIGNS204604TOPS' N BARRICADES INC 201-7003-60429 248 Demand Register Packet: APPKT02756 - JB 04/16/2021 4/26/2021 12:04:56 PM Page 3 of 6 AmountVendor Name Payment Number Description (Item)Account Name Account Number 1,278.23Asphalt03/25/21 - ASPHALT204554CALIFORNIA COMMERCIAL AS…201-7003-60430 428.81Asphalt03/30/21 - ASPHALT204554CALIFORNIA COMMERCIAL AS…201-7003-60430 1,148.53Equipment Rental03/16-03/25/21 - EQUIPMENT RENTAL204550BANK OF THE WEST 201-7003-61701 Fund 201 - GAS TAX FUND Total:4,431.69 Fund: 202 - LIBRARY & MUSEUM FUND 204.68Maintenance/Services04/05/21 - PAINT & PAINT SUPPLIES204602THE SHERWIN-WILLIAMS CO.202-3006-60691 344.00Maintenance/Services04/06/21 - PAINT & PAINTING SUPPLIES204602THE SHERWIN-WILLIAMS CO.202-3006-60691 3,398.74Maintenance/Services04/01/2021 - LIBRARY ENTRY DOOR REPAI…204565DOOR TECH, LLC 202-3004-60691 295.92Operating Supplies03/11/21 - APR & MAY GOOD READ PROG204550BANK OF THE WEST 202-3006-60420 Fund 202 - LIBRARY & MUSEUM FUND Total:4,243.34 Fund: 215 - LIGHTING & LANDSCAPING FUND 5,528.00SilverRock Way Landscape03/2021 - SRR PERIMETER LS MAINT204581LANDMARK GOLF MANAGEM…215-7004-60143 1,580.68Materials/Supplies04/08/2021 - PLANTS204553C.V CACTUS NURSERY 215-7004-60431 4,110.75Materials/Supplies04/12/2021 - PLANTS204553C.V CACTUS NURSERY 215-7004-60431 2,004.26Materials/Supplies04/13/21 - PLANTS204553C.V CACTUS NURSERY 215-7004-60431 5,950.00Palm Trees04/05/21 - PALM TREE REMOVAL EISENH…204608VINTAGE ASSOCIATES 215-7004-60673 3,472.04Materials/Supplies04/06/21 - IRRIGATION SUPPLIES204596SMITH PIPE & SUPPLY CO 215-7004-60431 406.93Materials/Supplies04/06/21 - IRRIGATION SUPPLIES204596SMITH PIPE & SUPPLY CO 215-7004-60431 361.56Materials/Supplies04/06/21 - TAN VALVE BOXES204596SMITH PIPE & SUPPLY CO 215-7004-60431 1,848.75Materials/Supplies03/17/21 - PALM TREES204609W.D. YOUNG & SONS 215-7004-60431 465.48Materials/Supplies04/08/21 - PLANTS204555CALIFORNIA DESERT NURSERY,…215-7004-60431 1,850.00Maintenance/Services04/02/21 - TREE & STUMP REMOVAL AVE …204592PWLC II, INC 215-7004-60691 114.11Electric - Utilities04/07-05/06/21 - PHONE SVC204572FRONTIER COMMUNICATIONS…215-7004-61116 Fund 215 - LIGHTING & LANDSCAPING FUND Total:27,692.56 Fund: 237 - SUCCESSOR AGCY PA 1 ADMIN 3,005.00ConsultantsFY 19/20 CONTINUING BOND DISCLOSURE204610WILLDAN FINANCIAL SERVICES 237-9001-60104 Fund 237 - SUCCESSOR AGCY PA 1 ADMIN Total:3,005.00 Fund: 243 - RDA LOW-MOD HOUSING FUND 100,000.00Homelessness AssistanceHOMELESS PREVENTION PROGRAM FUND…204561COACHELLA VALLEY RESCUE M…243-0000-60532 100,000.00Homelessness AssistanceFY 20/21 HOMELESS PREVENTION & ASSIS…204560COACHELLA VALLEY ASSOC OF…243-0000-60532 100,000.00Homelessness AssistanceFY20/21 - HOMELESS PREVENTION & ASSI…204582MARTHA'S VILLAGE KITCHEN 243-0000-60532 -83,333.00Homelessness Assistance07/09/20 - RECLASS FROM FY 20/21 to 19…204561COACHELLA VALLEY RESCUE M…243-0000-60532 83,333.00Homelessness Assistance06/30/20 - FY 19/20 HOMELESS SERVICES …204561COACHELLA VALLEY RESCUE M…243-0000-60532 Fund 243 - RDA LOW-MOD HOUSING FUND Total:300,000.00 Fund: 247 - ECONOMIC DEVELOPMENT FUND 10,000.00Small Bus.Emer. Econ. Relief P…02/04/21 - REISSUE COVID 19 REBATE PR…204569ESPINOZA, VICTORIA RANGEL 247-0000-60510 2,750.00Marketing & Tourism Promoti…03/31-04/27/21 - COVID-19 DIGITAL BILL…204600THE LAMAR COMPANIES 247-0000-60461 Fund 247 - ECONOMIC DEVELOPMENT FUND Total:12,750.00 Fund: 401 - CAPITAL IMPROVEMENT PROGRAMS 1,511.40Construction02/17-02/19/21 - BID AD204564DESERT SUN PUBLISHING, LLC 401-0000-60188 32,923.75Design12/2020 - HWY 111 PLANNING/ ENGINEER…204574GHD INC.401-0000-60185 78,461.25Design02/2021 - HWY 111 PLANNING/ ENGINEER…204574GHD INC.401-0000-60185 435,710.44Retention Payable02/28/21 - 2015-03 RETENTION PAYMENT204575GRANITE CONSTRUCTION CO…401-0000-20600 -8,657.84Retention Payable03/23/21 - 2020-03 RETENTION PAYMENT…204563CONVERGINT TECHNOLOGIES …401-0000-20600 173,156.81Construction03/23/2021 - 2020-03 PROGRESS PAYME…204563CONVERGINT TECHNOLOGIES …401-0000-60188 2,220.25Technical02/16-02/26/21 - 2015-09 ONCALL MATER…204567EARTH SYSTEMS PACIFIC 401-0000-60108 Fund 401 - CAPITAL IMPROVEMENT PROGRAMS Total:715,326.06 Fund: 501 - FACILITY & FLEET REPLACEMENT 27.72Street Sweeper03/2021 - SWEEPER FUEL204599THE GAS COMPANY 501-0000-60678 1,551.07City Bldg Repl/Repair03/08/21 - FABRIC FOR COUNCIL CHAMBER204550BANK OF THE WEST 501-0000-71103 Fund 501 - FACILITY & FLEET REPLACEMENT Total:1,578.79 Fund: 502 - INFORMATION TECHNOLOGY 171.62Cable - Utilities04/2021 - C.H CABLE (4625)204603TIME WARNER CABLE 502-0000-61400 250.38Cable - Utilities03/24-04/23/21 - WC CABLE (4601)204603TIME WARNER CABLE 502-0000-61400 1,200.00Consultants02/2021 - CITY COUNCIL VIDEO STREAMI…204571FISHER INTEGRATED INC 502-0000-60104 1,200.00Consultants03/2021 - CITY COUNCIL VIDEO STREAMI…204571FISHER INTEGRATED INC 502-0000-60104 800.00Consultants11/2020 - MONTHLY FLAT FEE FOR CC VID…204571FISHER INTEGRATED INC 502-0000-60104 800.00Consultants01/2021 - MONTHLY FLAT FEE FOR CC VID…204571FISHER INTEGRATED INC 502-0000-60104 249 Demand Register Packet: APPKT02756 - JB 04/16/2021 4/26/2021 12:04:56 PM Page 4 of 6 AmountVendor Name Payment Number Description (Item)Account Name Account Number 800.00Consultants02/2021 - MONTHLY FLAT FEE FOR CC VID…204571FISHER INTEGRATED INC 502-0000-60104 800.00Consultants03/2021 - MONTHLY FLAT FEE FOR CC VID…204571FISHER INTEGRATED INC 502-0000-60104 823.88Copiers01/01-03/31/21 - COPIER CONTRACT OVE…204577INNOVATIVE DOCUMENT SOL…502-0000-60662 736.30Copiers04/20-05/19/21 - CITY CLERKS COPIER204557CANON FINANCIAL SERVICES, …502-0000-60662 65.77Cable - Utilities03/02-04/01/21 - BACKUP SERVER204606VERIZON WIRELESS 502-0000-61400 1,153.40Cell/Mobile Phones03/02-04/01/21 - CITY IPADS204606VERIZON WIRELESS 502-0000-61301 2,027.43Cell/Mobile Phones03/02-04/01/21 - CITY CELL SVC204606VERIZON WIRELESS 502-0000-61301 75.98Cable - Utilities03/27-04/26/21 - BLACKHAWK/LQ PARK D…204572FRONTIER COMMUNICATIONS…502-0000-61400 91.86Cable - Utilities03/26-04/25/21 - C.H DSL204572FRONTIER COMMUNICATIONS…502-0000-61400 217.34Cable - Utilities04/04-05/03/21 - DSL SVC204572FRONTIER COMMUNICATIONS…502-0000-61400 292.58Software Licenses03/31/21 - WINDOWS 10 PRO LIC FOR CH…204558CDW GOVERNMENT INC 502-0000-60301 3,699.50Software Licenses04/07/21 - DRUVA INSYNC CLOUD ENTER…204558CDW GOVERNMENT INC 502-0000-60301 50.00Software Licenses03/13-04/13/21 - BASECAMP M.GRAHAM204550BANK OF THE WEST 502-0000-60301 109.97Software Licenses03/2021 - DOMAIN CHANGES204550BANK OF THE WEST 502-0000-60301 0.99Software Licenses03/14/21 -ICLOUD STORAGE M.GRAHAM204550BANK OF THE WEST 502-0000-60301 34.25Machinery & Equipment03/02/21 - WEBCAM J.BATRES204550BANK OF THE WEST 502-0000-80100 35.88Machinery & Equipment03/19/21 - COMPUTER HEADSET D.BATUTA204550BANK OF THE WEST 502-0000-80100 38.05Machinery & Equipment03/22/21 - WEBCAM D.BATUTA204550BANK OF THE WEST 502-0000-80100 60.48Software Licenses03/21-04/24/21 - UBIQ BI SUBSCRIPTION204550BANK OF THE WEST 502-0000-60301 14.99Software Licenses03/07/21 - HOME BASE ADOBE J DELGADO204550BANK OF THE WEST 502-0000-60301 Fund 502 - INFORMATION TECHNOLOGY Total:15,550.65 Fund: 601 - SILVERROCK RESORT 648.65Bank Fees04/2021 - SRR ARMORED SVC204573GARDAWORLD 601-0000-60455 Fund 601 - SILVERROCK RESORT Total:648.65 Grand Total:1,161,047.08 250 Demand Register Packet: APPKT02756 - JB 04/16/2021 4/26/2021 12:04:56 PM Page 5 of 6 Fund Summary Fund Expense Amount 101 - GENERAL FUND 75,820.34 201 - GAS TAX FUND 4,431.69 202 - LIBRARY & MUSEUM FUND 4,243.34 215 - LIGHTING & LANDSCAPING FUND 27,692.56 237 - SUCCESSOR AGCY PA 1 ADMIN 3,005.00 243 - RDA LOW-MOD HOUSING FUND 300,000.00 247 - ECONOMIC DEVELOPMENT FUND 12,750.00 401 - CAPITAL IMPROVEMENT PROGRAMS 715,326.06 501 - FACILITY & FLEET REPLACEMENT 1,578.79 502 - INFORMATION TECHNOLOGY 15,550.65 601 - SILVERROCK RESORT 648.65 Grand Total:1,161,047.08 Account Summary Account Number Account Name Expense Amount 101-0000-20304 Sales Taxes Payable -26.24 101-0000-22810 Developer Deposits 3,948.75 101-1001-60320 Travel & Training 133.88 101-1002-60351 Membership Dues 90.00 101-1002-60400 Office Supplies 23.59 101-1002-60420 Operating Supplies 31.18 101-1004-60129 Recruiting/Pre-Employme…287.35 101-1004-60351 Membership Dues 1,035.00 101-1005-60103 Professional Services 546.00 101-1005-60400 Office Supplies 153.94 101-1005-60450 Advertising 955.42 101-1006-60104 Consultants 2,327.75 101-1006-60122 Credit Card Fees 405.00 101-1006-60351 Membership Dues 130.00 101-1006-60352 Subscriptions & Publicati…45.48 101-1006-60400 Office Supplies 19.01 101-1007-60470 Postage 82.03 101-2001-60174 Blood/Alcohol Testing 330.00 101-2001-60175 Special Enforcement Funds 453.96 101-2001-60320 Travel & Training 640.00 101-2001-61300 Telephone - Utilities 877.33 101-2002-60670 Fire Station 323.12 101-2002-61100 Gas - Utilities 86.62 101-2002-61400 Cable - Utilities 294.30 101-3001-60320 Travel & Training 320.00 101-3001-60510 Grants & Economic Devel…500.00 101-3002-60107 Instructors 1,149.50 101-3002-60320 Travel & Training 175.00 101-3003-60149 Community Experiences 2,221.21 101-3003-60420 Operating Supplies 562.12 101-3005-60184 Fritz Burns Pool Maintena…2,076.68 101-3005-60431 Materials/Supplies 3,708.62 101-3005-60690 Uniforms 690.14 101-3005-60691 Maintenance/Services 7,200.00 101-3005-61300 Telephone - Utilities 86.82 101-3007-60351 Membership Dues 87.99 101-3007-60461 Marketing & Tourism Pro…32,000.92 101-3008-60431 Materials/Supplies 398.99 101-3008-60690 Uniforms 500.00 101-3008-60691 Maintenance/Services 1,200.00 101-6002-60320 Travel & Training 1,750.00 101-6002-60450 Advertising 882.00 101-6006-60103 Professional Services 4,120.00 101-6006-60125 Temporary Agency Servic…2,311.68 251 Demand Register Packet: APPKT02756 - JB 04/16/2021 4/26/2021 12:04:56 PM Page 6 of 6 Account Summary Account Number Account Name Expense Amount 101-6006-60420 Operating Supplies 470.24 101-7003-60420 Operating Supplies 58.65 101-7006-60146 PM 10 - Dust Control 131.31 101-7006-60320 Travel & Training 25.00 201-7003-60429 Traffic Control Signs 1,576.12 201-7003-60430 Asphalt 1,707.04 201-7003-61701 Equipment Rental 1,148.53 202-3004-60691 Maintenance/Services 3,398.74 202-3006-60420 Operating Supplies 295.92 202-3006-60691 Maintenance/Services 548.68 215-7004-60143 SilverRock Way Landscape 5,528.00 215-7004-60431 Materials/Supplies 14,250.45 215-7004-60673 Palm Trees 5,950.00 215-7004-60691 Maintenance/Services 1,850.00 215-7004-61116 Electric - Utilities 114.11 237-9001-60104 Consultants 3,005.00 243-0000-60532 Homelessness Assistance 300,000.00 247-0000-60461 Marketing & Tourism Pro…2,750.00 247-0000-60510 Small Bus.Emer. Econ. Rel…10,000.00 401-0000-20600 Retention Payable 427,052.60 401-0000-60108 Technical 2,220.25 401-0000-60185 Design 111,385.00 401-0000-60188 Construction 174,668.21 501-0000-60678 Street Sweeper 27.72 501-0000-71103 City Bldg Repl/Repair 1,551.07 502-0000-60104 Consultants 5,600.00 502-0000-60301 Software Licenses 4,228.51 502-0000-60662 Copiers 1,560.18 502-0000-61301 Cell/Mobile Phones 3,180.83 502-0000-61400 Cable - Utilities 872.95 502-0000-80100 Machinery & Equipment 108.18 601-0000-60455 Bank Fees 648.65 Grand Total:1,161,047.08 Project Account Summary Project Account Key Expense AmountProject Account Name Project Name **None**419,571.98**None****None** 151603RP 435,710.44Retention Payable La Quinta Village Complete St-ATPSBIL-5433(020) 151609T 2,220.25Technical Expense La Quinta X Park 18-002E 3,948.75TRAVERTINE CORPORATION EXP TRAVERTINE CORPORATION 201804E 13,603.18Landscape & Lighting Median Island …Landscape & Lighting Median Island Improvements 201905D 111,385.00Design Expense Highway 111 Corridor Area Plan Implementation 201907CT 1,511.40Construction Expense Fire Station 70 Revitalization 202003CT 173,156.81Construction Expense Citywide Public Safety Camera System 202003RP -8,657.84Retention Payable Citywide Public Safety Camera System CORONAMISC 2,750.00MiscellaneousCorona Virus Emergency Response CORONANR 2,642.76Corona Non Reimbursable Corona Virus Emergency Response CSA152E 27.72CSA 152 Expenses CSA 152 Project Tracking EGGE 520.71La Quinta Egg Hunt Expense La Quinta Egg Hunt GOLFE 340.00Golf Tour Expense Golf Tour PILQE 62.50Pillars of the Community Expense Pillars of the Community SRRE 1,298.00SilverRock Events Expense SilverRock Events STVRE 955.42Short Term Vacation Rental Expense Short Term Vacation Rental Tracking Grand Total:1,161,047.08 252 4/26/2021 11:58:35 AM Page 1 of 5 Demand Register City of La Quinta Packet: APPKT02766 - JB 04/23/2021 AmountVendor Name Payment Number Description (Item)Account Name Account Number Fund: 101 - GENERAL FUND 72.00United Way DeductionsCONTRIBUTION204654UNITED WAY OF THE DESERT 101-0000-20981 2,000.00Administrative Citations04/07/21 - CITATION DISMISSAL REFUND …204621DAMIAN JUDE REILLY AND JAN…101-0000-42700 280.00Instructors04/08/21 - YOGA204620CORTEZ, ELISABETH 101-3002-60107 2,500.00Travel & Training2021 GALA SPONSORSHIP/VETERANS204640PALM SPRINGS AIR MUSEUM …101-1001-60320 115.00Membership Dues04/13/21 - IIMC ANNUAL MEMBERSHIP D…204630INTERNATIONAL INSTITUTE OF 101-1005-60351 5,000.00Grants & Economic Developm…04/14/21 CHILDCARE RELOCATION/REST…204625FAMILY YMCA OF THE DESERT 101-3001-60510 1,644.35Vision Insurance Pay03/2021 - VSP VIA STANDARD204649STANDARD INSURANCE COMP…101-0000-20945 68.94Community Experiences04/16/21 - REIMBURSEMENT BOTTLED W…113DORAN, CAROLINE 101-3003-60149 250.00Lot Cleaning/Gravel Program03/08/21 - WEED ABATEMENT CASE #20-…204612BALDWINS MANY HATS 101-6004-60120 250.00Lot Cleaning/Gravel Program03/08/2021 - WEED ABATEMENT CASE #2…204612BALDWINS MANY HATS 101-6004-60120 1,442.89Professional Services12/2020 - SECURITY SERVICES204611ALLIED UNIVERSAL SECURITY S…101-6004-60103 105.83Operating Supplies03/24/21 & 04/07/21 - DRINKING WATER204648SPARKLETTS 101-7003-60420 3,150.00Contract Services - Administrat…05/2021 - LOBBYIST SERVICES204631JOE A GONSALVES & SON 101-1002-60101 3,135.00ConsultantsCAPITAL IMPROVEMENT PLAN204632NAI CONSULTING INC 101-7006-60104 630.75Special Enforcement Funds03/25/21 - POLICE FIELD SUPPLIES204613BPS TACTICAL INC 101-2001-60175 300.00Marketing & Tourism Promoti…04/15/21 - SRR EVENT SITE PHOTOS204627GREEN, LAURA R.101-3007-60461 1,280.00Maintenance/Services04/15/21 - PLANT INSTALLATION AT VELA…204657VINTAGE ASSOCIATES 101-3005-60691 4,060.00Maintenance/Services04/15/21 - INSTALL NEW PLANTS AT FB P…204657VINTAGE ASSOCIATES 101-3005-60691 2,500.00Maintenance/Services04/15/21 - COBBLE ROCK INSTALLATION A…204657VINTAGE ASSOCIATES 101-3005-60691 2,400.00Materials/Supplies04/15/21 - PALM TREES INSTALLATION AT…204657VINTAGE ASSOCIATES 101-3005-60431 2,560.00Maintenance/Services04/15/21 - SHRUBS DEMOLITION AT CIVIC…204657VINTAGE ASSOCIATES 101-3005-60691 7,806.41Dental Insurance Pay03/2021 - DENTAL INSURANCE204616CIGNA HEALTH CARE 101-0000-20943 439.45Operating Supplies03/01/20-02/28/21 - ANNUAL SVC ON UN…204655US FLEET TRACKING LLC 101-2001-60420 -37.53Sales Taxes Payable03/04/20 - PRO TRACKING DEVICE UNIT 7…204655US FLEET TRACKING LLC 101-0000-20304 499.38Operating Supplies03/04/20 - PRO TRACKING DEVICE UNIT 7…204655US FLEET TRACKING LLC 101-2001-60420 506.00Operating Supplies04/01/20-03/31/21 - ANNUAL SVC UNIT 7…204655US FLEET TRACKING LLC 101-2001-60420 408.95Materials/Supplies04/08/21 - IRRIGATION SUPPLIES204647SMITH PIPE & SUPPLY CO 101-3005-60431 356.54Materials/Supplies04/13/21 - IRRIGATION SUPPLIES204647SMITH PIPE & SUPPLY CO 101-3005-60431 475.00Map/Plan Checking04/12/21 - LLA 2020-0018 ONCALL MAP C…204645RASA/ERIC NELSON 101-7002-60183 210.00Map/Plan Checking04/12/21 - LLA 2021-0002 ONCALL MAP C…204645RASA/ERIC NELSON 101-7002-60183 240.00Map/Plan Checking04/12/21 - LLA 2021-0004 ONCALL MAP C…204645RASA/ERIC NELSON 101-7002-60183 210.00Map/Plan Checking04/12/21 - LLA 2021-0005 ONCALL MAP C…204645RASA/ERIC NELSON 101-7002-60183 343.00Map/Plan Checking04/14/21 - FTM 2018-0005 ONCALL MAP …204645RASA/ERIC NELSON 101-7002-60183 771.42Temporary Agency Services04/09/21 - TEMP AGENCY SERVICES T.SU…204634OFFICE TEAM 101-6006-60125 1,155.84Temporary Agency Services04/09/21 - TEMP AGENCY SERVICES M.G…204646ROBERT HALF TECHNOLOGY 101-6006-60125 187.50Maintenance/Services04/07/21 - FS #32 DOOR REPAIR204642PATTON DOOR & GATE 101-2002-60691 6.71Postage03/03/21 - OVERNIGHT MAIL SERVICE204636ONTRAC 101-1007-60470 564.14Materials/Supplies04/08/21 - LANDSCAPE ROCK204653TRI-STATE MATERIALS INC 101-3005-60431 338.48Materials/Supplies04/08/21 - LANDSCAPE ROCK204653TRI-STATE MATERIALS INC 101-3005-60431 451.04Materials/Supplies04/09/21 - LANDSCAPE ROCK204653TRI-STATE MATERIALS INC 101-3005-60431 676.57Materials/Supplies04/09/21 - LANDSCAPE ROCK204653TRI-STATE MATERIALS INC 101-3005-60431 564.14Materials/Supplies04/12/21 - LANDSCAPE ROCK204653TRI-STATE MATERIALS INC 101-3005-60431 564.14Materials/Supplies04/12/21 - LANDSCAPE ROCK204653TRI-STATE MATERIALS INC 101-3005-60431 564.14Materials/Supplies04/12/21 - LANDSCAPE ROCK204653TRI-STATE MATERIALS INC 101-3005-60431 281.90Materials/Supplies04/12/21 - LANDSCAPE ROCK204653TRI-STATE MATERIALS INC 101-3005-60431 102.58Materials/Supplies04/19/21 - DUPLICATE KEYS204651THE LOCK SHOP, INC 101-3005-60431 125.00HVAC12/2020 - C.H WATER TREATMENT204639PACIFIC WEST AIR CONDITION…101-3008-60667 125.00HVAC02/2021 - C.H WATER TREATMENT204639PACIFIC WEST AIR CONDITION…101-3008-60667 561.74Special Enforcement Funds03/09/2021 - LQPD SET TEAM SUPPLIES T…204629HOME DEPOT CREDIT SERVICES 101-2001-60175 41.26Fritz Burns Pool Maintenance03/01/21 - CLEANING SUPPLIES FOR FB P…204629HOME DEPOT CREDIT SERVICES 101-3005-60184 97.62Supplies-Graffiti and Vandalism03/25/21 - GRAFFITI SUPPLES FOR MONT…204629HOME DEPOT CREDIT SERVICES 101-3005-60423 163.39Materials/Supplies03/05/21 - NAILS,SCREWS, AND SUPPLIES204629HOME DEPOT CREDIT SERVICES 101-3005-60431 89.16Materials/Supplies03/15/21 - LIGHT BULBS204629HOME DEPOT CREDIT SERVICES 101-3005-60431 253 Demand Register Packet: APPKT02766 - JB 04/23/2021 4/26/2021 11:58:35 AM Page 2 of 5 AmountVendor Name Payment Number Description (Item)Account Name Account Number 23.11Materials/Supplies03/02/21 - LOCK WASHERS FOR COUNCIL …204629HOME DEPOT CREDIT SERVICES 101-3008-60431 32.53Materials/Supplies03/03/21 - LIGHT BULBS FOR LQ PARK204629HOME DEPOT CREDIT SERVICES 101-3008-60431 48.70Materials/Supplies03/03/21 - DESK FAN FOR COUNCIL CHA…204629HOME DEPOT CREDIT SERVICES 101-3008-60431 20.40Materials/Supplies03/04/21 - SCREWS FOR C.H204629HOME DEPOT CREDIT SERVICES 101-3008-60431 13.03Materials/Supplies03/08/21 - BOLTS FOR SPORT COMPLEX204629HOME DEPOT CREDIT SERVICES 101-3008-60431 72.20Materials/Supplies03/08/21 - DRILL TAP AND SCREW EXTRA…204629HOME DEPOT CREDIT SERVICES 101-3008-60431 55.28Materials/Supplies03/24/21 - PADLOCK & TOWELS204629HOME DEPOT CREDIT SERVICES 101-3008-60431 22.54Materials/Supplies03/17/21 - GROUT AND TILE CAULK204629HOME DEPOT CREDIT SERVICES 101-3008-60431 84.61Materials/Supplies03/15/21 - BATTERIES & LIGHT BULBS204629HOME DEPOT CREDIT SERVICES 101-3008-60431 289.64Materials/Supplies03/01/21 - FOLDING TABLES/SUPPLIES204629HOME DEPOT CREDIT SERVICES 101-3008-60431 13.00Materials/Supplies03/09/21 - PADLOCKS FOR SPORTS COMP…204629HOME DEPOT CREDIT SERVICES 101-3008-60431 1,313.89Fritz Burns Pool Maintenance12/30/20 - REPAIRS TO FB POOL204633OCEAN SPRINGS TECH INC 101-3005-60184 1,641.68Fritz Burns Pool Maintenance12/30/20 - HAYWARD CAT 5500 SYSTEM I…204633OCEAN SPRINGS TECH INC 101-3005-60184 1,950.00Fritz Burns Pool Maintenance03/2021 - FB POOL MONTHLY MAINTENA…204633OCEAN SPRINGS TECH INC 101-3005-60184 225.00Fritz Burns Pool Maintenance04/12/21 - FB POOL DECK/FLOOR CLEANI…204633OCEAN SPRINGS TECH INC 101-3005-60184 3,000.00Professional Services04/10/21 - STVR FEE UPDATE BP 3204617CLEARSOURCE FINANCIAL CO…101-1005-60103 Fund 101 - GENERAL FUND Total:61,439.34 Fund: 201 - GAS TAX FUND 16.80Traffic Control Signs04/20/21 - TRAFFIC CONTROL SIGNS204652TOPS' N BARRICADES INC 201-7003-60429 84.00Traffic Control Signs04/20/21 - TRAFFIC CONTROLS SIGNS204652TOPS' N BARRICADES INC 201-7003-60429 586.00Traffic Control Signs04/20/21 - TRAFFIC CONTROL SIGNS204652TOPS' N BARRICADES INC 201-7003-60429 417.60Traffic Control Signs04/20/21 - TRAFFIC CONTROLS SIGNS204652TOPS' N BARRICADES INC 201-7003-60429 465.00Street StripingADAMS STREET RESTRIPPING204632NAI CONSULTING INC 201-7003-60141 Fund 201 - GAS TAX FUND Total:1,569.40 Fund: 202 - LIBRARY & MUSEUM FUND 125.00HVAC12/2020 - LIBRARY WATER TREATMENT204639PACIFIC WEST AIR CONDITION…202-3004-60667 125.00HVAC02/2021 - LIBRARY WATER TREATMENT204639PACIFIC WEST AIR CONDITION…202-3004-60667 Fund 202 - LIBRARY & MUSEUM FUND Total:250.00 Fund: 215 - LIGHTING & LANDSCAPING FUND 1,392.00Materials/Supplies04/19/2021 - PLANTS204614C.V CACTUS NURSERY 215-7004-60431 198.48Operating Supplies04/13/21 - PPE SUPPLIES204650STAPLES ADVANTAGE 215-7004-60420 45.66Operating Supplies04/13/21 - HAND SANITIZER204650STAPLES ADVANTAGE 215-7004-60420 244.34Materials/Supplies03/17/21 - PVC DRAIN CAP204647SMITH PIPE & SUPPLY CO 215-7004-60431 1,985.98Maintenance/Services03/18-03/19/21 - AVE 52 MEDIAN ELECTR…204658VINTAGE E & S INC 215-7004-60691 5,300.00Maintenance/Services04/09/21 - PLANT REPLACEMENT ON AVE …204644PWLC II, INC 215-7004-60691 4,000.00Maintenance/Services04/19/21 - PLANT REPLACEMENT ON JEFF…204644PWLC II, INC 215-7004-60691 777.95Materials/Supplies04/09/21 - LANDSCAPE DG204653TRI-STATE MATERIALS INC 215-7004-60431 533.56Materials/Supplies04/13/21 - LANDSCAPE ROCK204653TRI-STATE MATERIALS INC 215-7004-60431 587.94Materials/Supplies04/13/21 - LANDSCAPE ROCK204653TRI-STATE MATERIALS INC 215-7004-60431 426.84Materials/Supplies04/13/21 - LANDSCAPE ROCK204653TRI-STATE MATERIALS INC 215-7004-60431 705.52Materials/Supplies04/13/21 -LANDSCAPE ROCK204653TRI-STATE MATERIALS INC 215-7004-60431 426.84Materials/Supplies04/13/21 - LANDSCAPE ROCK204653TRI-STATE MATERIALS INC 215-7004-60431 587.94Materials/Supplies04/13/21 - LANDSCAPE ROCK204653TRI-STATE MATERIALS INC 215-7004-60431 360.18Materials/Supplies04/14/21 - LED LAMPS204659WALTERS WHOLESALE ELECTR…215-7004-60431 Fund 215 - LIGHTING & LANDSCAPING FUND Total:17,573.23 Fund: 221 - AB 939 - CALRECYCLE FUND 3,153.59AB 939 Recycling Solutions04/12/21 - LAMINATED REUSABLE TOTE B…204641PALMS TO PINES PRINTING 221-0000-60127 Fund 221 - AB 939 - CALRECYCLE FUND Total:3,153.59 Fund: 235 - SO COAST AIR QUALITY FUND 9,293.38CVAG10/01-12/31/20 - VEHICLE REGISTRATION…204618COACHELLA VALLEY ASSOC OF…235-0000-60186 Fund 235 - SO COAST AIR QUALITY FUND Total:9,293.38 Fund: 247 - ECONOMIC DEVELOPMENT FUND 8,192.24Small Bus.Emer. Econ. Relief P…04/15/21 - COVID-19 GRANT/AL FRESCO P…204635OLD TOWN LA QUINTA, LLC 247-0000-60510 Fund 247 - ECONOMIC DEVELOPMENT FUND Total:8,192.24 Fund: 401 - CAPITAL IMPROVEMENT PROGRAMS 16.54Construction04/14/21 - KEYS MADE FOR ALONGI BUILD…204656VALLEY LOCK & SAFE 401-0000-60188 7,642.50Technical01/30-02/26/21 - 2014-13 ONCALL MATER…204619CONVERSE CONSULTANTS 401-0000-60108 8,330.00Technical01/30-02/26/21 - 2017-01 ONCALL MATER…204619CONVERSE CONSULTANTS 401-0000-60108 254 Demand Register Packet: APPKT02766 - JB 04/23/2021 4/26/2021 11:58:35 AM Page 3 of 5 AmountVendor Name Payment Number Description (Item)Account Name Account Number 2,885.00Professional ServicesEISENHOWER RETENTION BASIN LANDSC…204632NAI CONSULTING INC 401-0000-60103 2,147.50Professional ServicesMONROE STREET PAVEMENT REHABILITAT…204632NAI CONSULTING INC 401-0000-60103 3,492.50Professional ServicesWASHINGTON STREET AT FRED WARING …204632NAI CONSULTING INC 401-0000-60103 502.50Professional ServicesSILVERROCK RETENTION BASIN SOIL STABI…204632NAI CONSULTING INC 401-0000-60103 3,132.50Professional ServicesDUNE PALMS BRIDGE IMPROVEMENT204632NAI CONSULTING INC 401-0000-60103 3,360.00Professional ServicesFIRE STATION 70 REVITALIZATION204632NAI CONSULTING INC 401-0000-60103 2,072.50Professional ServicesHIGHWAY 111 CORRIDOR204632NAI CONSULTING INC 401-0000-60103 1,692.50Professional ServicesLA QUINTA X PARK204632NAI CONSULTING INC 401-0000-60103 6,927.50Professional ServicesLA QUINTA LANDSCAPE RENOVATION IM…204632NAI CONSULTING INC 401-0000-60103 930.00Professional ServicesCITYWIDE MISC. ADA IMPROVEMENTS204632NAI CONSULTING INC 401-0000-60103 5,112.50Professional ServicesWASHINGTON ST AT AVE 50/CALLE TAMP…204632NAI CONSULTING INC 401-0000-60103 775.00Professional ServicesWASHINGTON STREET PAVEMENT REHABI…204632NAI CONSULTING INC 401-0000-60103 2,542.50Professional ServicesLA QUINTA VILLAGE COMPLETE STREETS204632NAI CONSULTING INC 401-0000-60103 6,052.50Professional ServicesSILVERROCK RESORT INFRASTRUCTURE204632NAI CONSULTING INC 401-0000-60103 2,257.50Professional ServicesJEFFERSON STREET AT AVENUE 53 ROUN…204632NAI CONSULTING INC 401-0000-60103 815.00Professional ServicesPAVEMENT MANAGEMENT PLAN (PMP)204632NAI CONSULTING INC 401-0000-60103 1,732.50Professional ServicesFY 2021 CITYWIDE SIDEWALK IMPROVEM…204632NAI CONSULTING INC 401-0000-60103 2,325.00Professional ServicesSILVERROCK EVENT SPACE204632NAI CONSULTING INC 401-0000-60103 3,037.50Professional ServicesCITYWIDE PUBLIC SAFETY CAMERA SYSTEM204632NAI CONSULTING INC 401-0000-60103 -27,836.60Retention Payable01/2021-02/2021- 2017-01 RETENTION P…204637ONYX PAVING COMPANY INC.401-0000-20600 556,731.98Construction01/2021-02/2021- 2017-01 PROGRESS PA…204637ONYX PAVING COMPANY INC.401-0000-60188 577.50Design02/2021 - SRR VENUE LANDSCAPE ARCH S…204628HERMANN DESIGN GROUP INC 401-0000-60185 1,265.00Design03/2021 - SRR VENUE LANDSCAPE ARCH S…204628HERMANN DESIGN GROUP INC 401-0000-60185 632.50Design03/2021 RANCHO OCOTILLO LANDSCAPE …204628HERMANN DESIGN GROUP INC 401-0000-60185 19,373.16Design03/2021 - TOPAZ STREETSCAPE DESIGN 2…204622DAVID EVANS AND ASSOCIATE…401-0000-60185 322.07Construction03/18/21 - 2020-03 CONSTRUCTION SET204643PLANIT REPROGRAPHICS SYST…401-0000-60188 178.14Construction03/31/2021 - ELECTRICAL OUTLETS FOR C…204623ECONOLITE CONTROL PRODU…401-0000-60188 Fund 401 - CAPITAL IMPROVEMENT PROGRAMS Total:619,025.29 Fund: 501 - FACILITY & FLEET REPLACEMENT 960.00City Bldg Repl/Repair04/09/2021 - REUPHOLSTER WALL PANELS204624F AND J BARAJAS UPHOLSTERY 501-0000-71103 8.42Vehicle Repair & Maintenance04/14/21 - CONNECTOR FOR WATER TRU…204626FRANKLIN TRUCK PARTS, INC 501-0000-60676 3,088.51Building Leases05/2021 - PW TRAILER RENTAL204638PACIFIC MOBILE STRUCTURES, …501-0000-71032 Fund 501 - FACILITY & FLEET REPLACEMENT Total:4,056.93 Fund: 502 - INFORMATION TECHNOLOGY 2,474.87Copiers04/2021 CITY PRINTERS & 03/2021 METER…204615CANON FINANCIAL SERVICES, …502-0000-60662 Fund 502 - INFORMATION TECHNOLOGY Total:2,474.87 Fund: 601 - SILVERROCK RESORT 36.20Repair & Maintenance04/16/21 - SRR KEYS204651THE LOCK SHOP, INC 601-0000-60660 68.43Repair & Maintenance03/11/2021 - DRILL BITS & SCREWS204629HOME DEPOT CREDIT SERVICES 601-0000-60660 38.74Repair & Maintenance03/12/2021 - HOSE CLAMPS & SCREWS204629HOME DEPOT CREDIT SERVICES 601-0000-60660 80.94Repair & Maintenance03/11/2021 - SCREWS FOR SRR204629HOME DEPOT CREDIT SERVICES 601-0000-60660 Fund 601 - SILVERROCK RESORT Total:224.31 Grand Total:727,252.58 255 Demand Register Packet: APPKT02766 - JB 04/23/2021 4/26/2021 11:58:35 AM Page 4 of 5 Fund Summary Fund Expense Amount 101 - GENERAL FUND 61,439.34 201 - GAS TAX FUND 1,569.40 202 - LIBRARY & MUSEUM FUND 250.00 215 - LIGHTING & LANDSCAPING FUND 17,573.23 221 - AB 939 - CALRECYCLE FUND 3,153.59 235 - SO COAST AIR QUALITY FUND 9,293.38 247 - ECONOMIC DEVELOPMENT FUND 8,192.24 401 - CAPITAL IMPROVEMENT PROGRAMS 619,025.29 501 - FACILITY & FLEET REPLACEMENT 4,056.93 502 - INFORMATION TECHNOLOGY 2,474.87 601 - SILVERROCK RESORT 224.31 Grand Total:727,252.58 Account Summary Account Number Account Name Expense Amount 101-0000-20304 Sales Taxes Payable -37.53 101-0000-20943 Dental Insurance Pay 7,806.41 101-0000-20945 Vision Insurance Pay 1,644.35 101-0000-20981 United Way Deductions 72.00 101-0000-42700 Administrative Citations 2,000.00 101-1001-60320 Travel & Training 2,500.00 101-1002-60101 Contract Services - Admini…3,150.00 101-1005-60103 Professional Services 3,000.00 101-1005-60351 Membership Dues 115.00 101-1007-60470 Postage 6.71 101-2001-60175 Special Enforcement Funds 1,192.49 101-2001-60420 Operating Supplies 1,444.83 101-2002-60691 Maintenance/Services 187.50 101-3001-60510 Grants & Economic Devel…5,000.00 101-3002-60107 Instructors 280.00 101-3003-60149 Community Experiences 68.94 101-3005-60184 Fritz Burns Pool Maintena…5,171.83 101-3005-60423 Supplies-Graffiti and Van…97.62 101-3005-60431 Materials/Supplies 7,525.17 101-3005-60691 Maintenance/Services 10,400.00 101-3007-60461 Marketing & Tourism Pro…300.00 101-3008-60431 Materials/Supplies 675.04 101-3008-60667 HVAC 250.00 101-6004-60103 Professional Services 1,442.89 101-6004-60120 Lot Cleaning/Gravel Progr…500.00 101-6006-60125 Temporary Agency Servic…1,927.26 101-7002-60183 Map/Plan Checking 1,478.00 101-7003-60420 Operating Supplies 105.83 101-7006-60104 Consultants 3,135.00 201-7003-60141 Street Striping 465.00 201-7003-60429 Traffic Control Signs 1,104.40 202-3004-60667 HVAC 250.00 215-7004-60420 Operating Supplies 244.14 215-7004-60431 Materials/Supplies 6,043.11 215-7004-60691 Maintenance/Services 11,285.98 221-0000-60127 AB 939 Recycling Solutions 3,153.59 235-0000-60186 CVAG 9,293.38 247-0000-60510 Small Bus.Emer. Econ. Rel…8,192.24 401-0000-20600 Retention Payable -27,836.60 401-0000-60103 Professional Services 51,792.50 401-0000-60108 Technical 15,972.50 401-0000-60185 Design 21,848.16 401-0000-60188 Construction 557,248.73 501-0000-60676 Vehicle Repair & Mainte…8.42 256 Demand Register Packet: APPKT02766 - JB 04/23/2021 4/26/2021 11:58:35 AM Page 5 of 5 Account Summary Account Number Account Name Expense Amount 501-0000-71032 Building Leases 3,088.51 501-0000-71103 City Bldg Repl/Repair 960.00 502-0000-60662 Copiers 2,474.87 601-0000-60660 Repair & Maintenance 224.31 Grand Total:727,252.58 Project Account Summary Project Account Key Expense AmountProject Account Name Project Name **None**85,698.93**None****None** 111205P 3,132.50Professional Expense Dune Palms Bridge Imp/BRLKS-5433(014) 141513P 6,052.50Professional Expense SilverRock Way Infra/Street Improvements 141513T 7,642.50Technical Expense SilverRock Way Infra/Street Improvements 151603P 2,542.50Professional Expense La Quinta Village Complete St-ATPSBIL-5433(020) 151609P 1,692.50Professional Expense La Quinta X Park 201603D 20,005.66Design Expense La Quinta Landscape Renovation Improvement 201603P 6,927.50Professional Expense La Quinta Landscape Renovation Improvement 201608CT 16.54Construction Expense SilverRock Event Space 201608D 1,842.50Design Expense SilverRock Event Space 201608P 2,325.00Professional Expense SilverRock Event Space 201701CT 556,731.98Construction Expense Washington Street at Fred Waring Drive 201701P 3,492.50Professional Expense Washington Street at Fred Waring Drive 201701RP -27,836.60Retentions Payable Washington Street at Fred Waring Drive 201701T 8,330.00Technical Expense Washington Street at Fred Waring Drive 201704P 2,885.00Professional Expense Eisenhower Retention Basin Landscape Improvements 201709P 2,257.50Professional Expense Ave 53 Jefferson St.Roundabout 201804E 17,307.39Landscape & Lighting Median Island …Landscape & Lighting Median Island Improvements 201905P 2,072.50Professional Expense Highway 111 Corridor Area Plan Implementation 201907P 3,360.00Professional Expense Fire Station 70 Revitalization 201923P 5,112.50Professional Expense Washington St at Ave 50/Calle Tampico ADA 201924P 815.00Professional Expense 5 Year Pavement Management Update 202001P 2,147.50Professional Expense Monroe Street Pavement Rehab (Ave 52, Ave 53) 202002P 930.00Professional Expense Citywide Miscellaneous ADA Improvements 202003CT 322.07Construction Expense Citywide Public Safety Camera System 202003P 3,037.50Professional Expense Citywide Public Safety Camera System 202004P 775.00Professional Expense Washington Street Pavement Rehabilitation 202006P 465.00Professional Expense Adams Street Restriping Project 202007P 502.50Professional Expense SilverRock Retention Basin Soil Stabilization 2021STIP 1,732.50Professional Expense FY20/21 Citywide Sidewalk Improvements 2021TMICT 178.14Construction Expense FY20/21 Traffic Maintenance Improvements CORONANR 244.14Corona Non Reimbursable Corona Virus Emergency Response SRRE 68.94SilverRock Events Expense SilverRock Events STVRE 4,442.89Short Term Vacation Rental Expense Short Term Vacation Rental Tracking Grand Total:727,252.58 257 City of La Quinta Bank Transactions 04/12 – 04/23/2021 Wire Transaction Listed below are the wire transfers from 04/12 – 04/23/2021. Wire Transfers: 04/16/2021 - WIRE TRANSFER - CALPERS 19,811.17$ 04/16/2021 - WIRE TRANSFER - CALPERS 13,736.21$ 04/16/2021 - WIRE TRANSFER - CALPERS 5,310.90$ 04/16/2021 - WIRE TRANSFER - ICMA 4,900.29$ 04/16/2021 - WIRE TRANSFER - LQCEA 414.00$ 04/22/2021 - WIRE TRANSFER - LANDMARK 164,293.29$ 04/23/2021 - WIRE TRANSFER - CALPERS 592.38$ TOTAL WIRE TRANSFERS OUT 209,058.24$ ATTACHMENT 2 258 City of La Quinta CITY COUNCIL MEETING: May 4, 2021 STAFF REPORT AGENDA TITLE: APPROVE OUTSTANDING PENSION OBLIGATION FUNDING OPTIONS AND ASSOCIATED BUDGET ADJUSTMENT RECOMMENDATION Approve outstanding pension obligation funding options and associated budget adjustment. EXECUTIVE SUMMARY •As of June 30, 2020, the City’s financial statements reported outstanding pension obligations of $13,458,200 and a balance of $10,249,738 in the pension trust. •Financial Advisory Commission (FAC) created a subcommittee to review the City’s outstanding pension obligations and formulate recommendations. •The FAC and City Council have reviewed the subcommittee’s findings that Additional Discretionary Payments (ADPs) be made to the California Public Employees’ Retirement System (CalPERS) to fund the City’s outstanding pension obligations when fiscally possible. FISCAL IMPACT Making an ADP in fiscal year 2020/21 requires a budget adjustment to account 101-1007-50117 in the amount approved by Council and would reduce the current surplus. Any payments for fiscal year 2021/22 would be included in the proposed budget. BACKGROUND/ANALYSIS FAC SUBCOMMITTEE On December 2, 2020, the FAC appointed Commissioners Twohey and Way to review the City’s outstanding pension obligations. The Committee met three times to review and discuss the following items: BUSINESS SESSION ITEM NO. 1 259 •CalPERS Actuarial Reports for the City’s three pension tiers. •CalPERS asset liability management cycle (ALM). •Viewed an interview on the historical performance of CalPERS and its impact on agencies. •Financial statement note disclosure pertaining to pension obligations. •How the pension trust is reported in the financial statements. •How the assets in the pension trust can be applied to outstanding pension obligations. •When pension trust assets decrease the reportable pension obligation. •How extra payments to CalPERS are applied to outstanding pension obligations. •Reviewed pension obligations and accelerated payments with the City’s actuarial consulting firm. FAC STUDY SESSION •During the February 24, 2021 FAC meeting the subcommittee findings and recommendations were discussed. •It was requested that calculations confirming that savings resulted in favorable present values for the City be brought back for consideration. Staff reviewed one scenario as an example for present value calculations. Using the CalPERS online Pension Outlook Tool, staff tested savings for a one-time ADP of $1.0 million. This would result in a savings for the City of $2.37 million over the life of the amortization schedule. In the near term, over the next 5 years the City would save $350,000 in the form of lower required unfunded liability payments. This has a present value of $341,000 based on the 5-year United States Treasury rate of 0.85%. The same $1.0 million invested in a treasury would only yield $37,500 in interest payments to the City. FAC BUSINESS SESSION •A business item was considered during the April 7, 2021 FAC meeting, with subcommittee recommendations and additional staff research discussed. •Commissioners were in favor of ADPs which could result in savings for the City. •Commissioners unanimously voted to recommend Council review. CITY COUNCIL STUDY SESSION •During the April 20, 2021 Council meeting the FAC recommendations were discussed. •Council directed staff to return with a business item with funding options to make ADPs to CalPERS. 260 RECOMMENDATIONS Staff recommends appropriating money from the current budget surplus in fiscal 2020/21. A base amount could be sent to CalPERS to pay down the unfunded liability for the classic tier only or could be divided among the three tiers as demonstrated below: Classic Tier Tier 2 PEPRA Tier Total ADP Unfunded Accrued Liability $14,460,335 $27,310 $86,510 Additional Discretionary Payment - Opt. 1 $1,000,000 $1,000,000 Additional Discretionary Payment - Opt. 2 $886,180 $27,310 $86,510 $1,000,000 Additional Discretionary Payment - Opt. 3 $1,000,000 $27,310 $86,510 $1,113,820 In the example above, an amount of $1.0 million was used. Below are the projected savings the City would realize for a $0.5, $1.0, or $2.0 million one- time ADP to CalPERS. The full calculations can be viewed in Exhibit D of the Fiscal Year 2020/21 Pension Study Findings (Attachment 1). Options First 5 Years Total Additional Discretionary Payment of $500K (180,000)$ (1,190,000)$ Additional Discretionary Payment of $1.0 mil (350,000)$ (2,370,000)$ Additional Discretionary Payment of $2.0 mil (690,000)$ (4,540,000)$ Savings Council may elect to send additional money to the City’s pension trust account, however, doing so would not impact future required UAL payments to CalPERS and therefore the City would not see a savings in that area. The City’s pension trust is fully funded to the recommended target in the Reserves Policy. Return rates as of June 30, 2020 for both CalPERS and the trust are included in the attached findings. ALTERNATIVES Council may modify the recommendations or choose not to pre-fund the pension liability at this time. Prepared by: Rosemary Hallick, Financial Services Analyst Reviewed by: Claudia Martinez, Interim Finance Director Attachment: 1.Fiscal Year 2020/21 Pension Study Findings 261 262 ATTACHMENT 1 Fiscal Year 2020/21 Pension Study Findings Summary of Financial Advisory Commission (FAC) Subcommittee On December 2, 2020 the FAC appointed Commissioners Twohey and Way to review the City’s outstanding pension obligations with the City’s Financial Services Analyst and the Finance Director. This report summarizes key findings of the subcommittee. The Committee reviewed and discussed the following items: •CalPERS Actuarial Reports for the City’s three pension tiers •CalPERS Asset Liability Management cycle (ALM) •Viewed an interview on the historical performance of CalPERS and its impact on agencies •Financial statement note disclosure pertaining to pension obligations •How the pension trust is reported in the financial statements •How the assets in the pension trust can be applied to outstanding pension obligations •When pension trust assets decrease the reportable pension obligation •How extra payments to CalPERS are applied to outstanding pension obligations •Reviewed pension obligations and accelerated payments with the City’s actuarial consulting firm (GovInvest). The work of the subcommittee was reviewed by the full FAC during a study Session at the February 24, 2021 meeting. At the request of Commissioners, Staff conducted further financial analysis of pre-funding options and the item was reviewed again as a Business Item at the April 7, 2021 FAC meeting. The FAC voted unanimously to advance the recommendations to the City Council. CalPERS Actuarial Reports Actuarial reports are provided by CalPERS to each member agency, and are generally available by August of each year. The reports lag by one year, so for example the most recent report dated July 2020 is the actuarial valuation as of June 30, 2019. The City receives three reports, one for each pension plan tier. CalPERS actuarial reports include the following information: •Employer unfunded accrued liability payment projections for five years •Employer normal cost rates for bi-weekly payroll calculations •Employee bi-weekly payroll contribution rate for the next two years •Funded ratio of each pension tier •Summarized amortization schedule for each tier’s unfunded liability •Amortization schedule alternatives when applicable 263 • Funding history • Discount rate sensitivity analysis • Hypothetical plan termination liability calculations Key findings are summarized below: This chart shows the sensitivity of City’s net pension liability when changes to the discount rate are applied. Classic Tier Tier 2 PEPRA Tier Hire Date On and after 12/16/1983 On and after 12/17/2012 On and after 1/1/2013 Benefit Formula 2.5% at age 55 2% at age 60 2% at age 62 Benefit Vesting Schedule 5 years of service 5 years of service 5 years of service Benefit Payments monthly for life monthly for life monthly for life Retirement Age 50 and up 50 and up 52 and up Required employee contribution rate 8.000%7.000%6.750% Required employer contribution rate 11.432%8.081%6.985% Number of Active Members*37 8 53 Number of Retired Members*35 1 0 * As of June 30, 2019 from CalPERS valuation reports. Classic Tier Tier 2 PEPRA Tier Entry Age Normal Accrued Liability 50,417,881$ 532,890$ 1,340,430$ Plan's Market Value of Assets 35,957,546$ 505,580$ 1,253,920$ Unfunded Accrued Liability 14,460,335$ 27,310$ 86,510$ Funded Ratio 71.3%94.9%93.5% Unfunded Liability Payments Fiscal Year 2016/17 471,501$ -$ 20$ Fiscal Year 2017/18 564,145$ 201$ 150$ Fiscal Year 2018/19 698,026$ 5,197$ 8,591$ Fiscal Year 2019/20 842,026$ 4,955$ 11,921$ Fiscal Year 2020/21 952,096$ 5,590$ 19,433$ Fiscal Year 2021/22 1,108,426$ 1,962$ 17,529$ Fiscal Year 2022/23 1,224,000$ 2,000$ 18,000$ Fiscal Year 2023/24 1,295,000$ 2,000$ 18,000$ Fiscal Year 2024/25 1,371,000$ 2,000$ 18,000$ Fiscal Year 2025/26 1,412,000$ 2,000$ 18,000$ Fiscal Year 2026/27 1,449,000$ -$ -$ 264 Asset Liability Management (ALM) Cycle The CalPERS ALM cycle is currently underway. The ALM includes a review of CalPERS investment portfolio’s anticipated returns and retirement plan liabilities, which are based on demographic and economic factors and trends, including future salary and payroll growth, retirement ages, inflation, and life expectancy. The goal of the ALM process is to balance the expected cost of future pension payments with the expected future investment returns. During the last ALM cycle the discount rate (anticipated investment rate of return and inflation rate) was lowered from 7.5% to 7% over a three-year period, which resulted in increased unfunded liability contributions from member agencies including the City of La Quinta. The City’s required unfunded accrued liability (UAL) payments have increased by $563,421 over the past four years, from $564,496 in 2017/18 to $1,127,917 in 2020/21. The current ALM cycle findings are anticipated to be completed by November 2021 with recommended changes effective July 2022. Financial Statements Pension Disclosures The Annual Comprehensive Financial Statement (ACFR) includes a summary of the City’s outstanding pension obligation in Note 8 – Defined Benefit Pension Plan. The ACFR’s Note 8 includes the following information: • A description of the plan • Benefits provided • Contributions made during the fiscal year • Pension liabilities, pension expenses and deferred outflows and deferred inflows of resources related to pensions • Actuarial methods and assumptions used to determine total pension liability • Discount rate • Sensitivity of the proportionate share of the net pension liability to changes in the discount rate • Pension plan fiduciary net position CalPERS Investment and Pension Funding CalPERS investment and pension funding facts at-a-glance for fiscal year 2019/20 are included as Exhibit A. Annual investment returns from 2011 to 2020 have been as high as 21.7% or as low as 0.1%. Annualized investment returns for 20 and 30 years have been 5.5% and 8.0% respectively. 265 Every dollar paid to CalPERS retirees comes from three sources: investment earnings, employer (agency) contributions, and member (employee) contributions. CalPERS’s investment portfolio contains over $440 billion in assets (as of 3/29/2021), which are strategically allocated in a variety of investment options, some of which are not available to other public agencies. Pension Trust Performance and Uses The City established a pension trust in August 2019 with an initial contribution of $6,540,000. An additional contribution of $3,640,000 was made in fiscal year 2019/20. The pension trust balance reported in the 2019/20 ACFR was $10,249,738. The pension trust balance as of February 28, 2021 was $10,997,147. Investments are in a moderately conservative investment strategy which has dual goals of current income and capital appreciation. A major portion of the assets are committed to income producing securities; therefore, market fluctuations are expected. The February 2021 pension trust statement indicates the City’s pension trust performance is as follows: For comparison purposes, the historical fund performance as of June 30, 2020 is included as Exhibit B. The Section 115 Trust was established to set aside money to fund the City’s pension obligation. Contributions to the Section 115 Trust are irrevocable, the assets are dedicated to providing benefits to plan members, and the assets are protected from creditors of the City. The section 115 Trust addresses the City’s pension obligations by accumulating assets to reduce the net pension liability. However, in accordance with generally accepted accounting principles, the assets in the Section 115 Trust are not considered to have 266 present service capacity as plan assets and are therefore considered restricted assets of the City in the General Fund rather than pension plan assets. The assets held in trust will be considered pension plan assets at the time they are transferred out of the Trust into the pension plan with CalPERS. Accelerated Payments to CalPERS Additional contributions made directly to CalPERS, known as Additional Discretionary Payments (ADPs), can be applied to specific tiers and amortization bases within tiers. The greatest interest rate savings are derived by choosing to apply additional payments to the highest balance with the longest amortization period. The classic tier’s Schedule of Plan’s Amortization Bases is included as an example in Exhibit C. When agencies pay the unfunded liability in a lump sum each July rather than making monthly payments, the liability payment is slightly reduced. The City budgets the full monthly amount each year and at mid-year if revenues are on target, the City sends the savings directly to CalPERS as an additional contribution to the unfunded liability. For the past three years the City has been sending additional payments from savings directly to CalPERS as follows: Since the Classic Tier has the greatest liability with the longest amortization, accelerated payments are recommended for this tier when fiscally feasible. If the City were to follow the 10-year amortization payment schedule in the Classic Tier, the liability would be paid in 10 years and $5,967,437 in interest savings would be realized. Additional payments could be included in the General Fund budget for consideration each fiscal year. The additional payments and savings based on a 15-year and 10-year amortizations are summarized on the next page. CalPERS Pension Outlook Tool CalPERS has an online tool which allows member agencies to calculate savings based on ADPs. Any number of scenarios can be entered, such as one-time payments or multi-year payments. The tool is based on total liability for all three of the City’s plans (Classic, Tier 2 and PEPRA). Using a scenario of a one-time payment of $1.0 million to CalPERS, the City would save $2.37 Fiscal Year Classic Tier Tier 2 PEPRA Tier Total 2018/19 -$ 15,353$ 22,060$ 37,413$ 2019/20 -$ 20,000$ 10,000$ 30,000$ 2020/21 33,000$ -$ -$ 33,000$ TOTAL 33,000$ 35,353$ 32,060$ 100,413$ 267 million over the next 24 years as compared to the current amortization schedule. The savings come in the form of reduced required annual UAL payments, starting with a $60,000 savings in 2021/22. A copy of this scenario, as well as scenarios for one-time payments of $500K and $2.0 million, are attached as Exhibit D. 268 Every effort has been made to verify the accuracy of the information, which is intended for general use only. 01-2021-1 Facts at a Glance for Fiscal Year 2019–20Investment & Pension Funding Investments (PERF *) Total Fund Market Value & Fund Returns by Fiscal Year** (for FY end 6/30) (in billions) (% ) 2020 $392.5 4.7% 2019 $372.6 6.7% 2018 $354.0 8.6% 2017 $326.4 11.2% 2016 $302.0 0.6% 2015 $301.9 2.4% 2014 $300.3 18.4% 2013 $257.9 13.2% 2012 $233.4 0.1% 2011 $237.5 21.7% * Public Employees' Retirement Fund (PERF) ** Time-weighted rate of return net of investment expenses Annualized Investment Returns* (for FY end 6/30) 1 year 4.7% 3 years 6.6% 5 years 6.3% 10 years 8.5% 20 years 5.5% 30 years 8.0% * Time-weighted rate of return net of investment expenses Discount Rate Changes 2017-18* (State) 7.5% Ž 7.375% 2018-19* (School/PA) 7.5% Ž 7.375% 2018-19* (State) 7.375% Ž 7.25% 2019-20* (School/PA) 7.375% Ž 7.25% 2019-20* (State) 7.25% Ž 7.0% 2020-21* (School/PA) 7.25% Ž 7.0% 2012 7.75% Ž 7.5% 2004 8.25% Ž 7.75% * FY required contribution Total Fund Market Value 1988–2020 (for FY end 6/30) $45.4 bil $301.8 bil $172.3 bil $76.6 bil $392.5 bil $247.7 bil $0 $50 $100 $150 $200 $250 $300 $350 $400 '20'19'18'17'16'15'14'13'12'11'10'09'08'07'06'05'04'03'02'01'00'99'98'97'96'95'94'93'92'91'90'89'88 EXHIBIT A 269 Investments (cont'd) Facts at a Glance for Fiscal Year 2019–20 Investment & Pension Funding » 2 Current Asset Allocation 28+11+6+2+53+H53.1% Public Equity 28.2% Global Fixed Income 11.3% Real Assets 6.3% Private Equity 1.1% Other: 0.9% Liquidity 0.2% Trust Level* Asset Allocation Strategic Current Asset Allocation Allocation Public Equity 53.1% 50.0% Global Fixed Income 28.2% 28.0% Real Assets 11.3% 13.0% Private Equity 6.3% 8.0% Liquidity 0.9%1.0% Trust Level* 0.2% — * The Trust Level includes Multi Asset Class, Completion Overlay, Risk Mitigation, Absolute Return Strategies (Direct Investments only), Plan Level Transition and other Total Fund level portfolios. California Investments 89+11+H11.1% California investments as percentage of the total fund $43.6 billion Fair Value (in millions) Total California Investments $43,646 Public Equity* $22,418 Global Fixed Income** $7,911 Real Assets*** $12,526 Private Equity*** $791 * Includes listed public equities corporate bonds. ** Fixed income also includes a portion of MBS & ABS, which have significant geographical exposure to CA & MHLP. *** As of March 31, 2020 Sustainable Investing CalPERS actively engages with the companies we own to protect the long-term sustainability of our investment. From issues regarding environmental responsibility to safe labor practices, we keep an open dialog with company leaders and vote our proxies. 14,000+Number of companies where CalPERS cast proxy votes in 2020 worldwide (calendar year) * The Trust Level includes Multi Asset Class, Completion Overlay, Risk Mitigation, Absolute Return Strategies (Direct Investments only), Plan Level Transition and other Total Fund level portfolios. 270 Facts at a Glance for Fiscal Year 2019–20 Investment & Pension Funding » 3Pension Funding Funded Status of Retirement Plans by Member Category State School PA Total 2018–19 70.0%  * 68.5% * 70.8% * 70.2%* 2017–18 69.5%  * 68.6% * 70.4% * 69.8%* 2016–17 65.8% * 68.7% * 69.5% * 68.0%* 2015–16 62.3% 67.8% 66.2% 68.3% 2014–15 69.4% 77.5% 74.5% 73.1% 2013–14 72.1% 82.0% 77.9% 76.3% 2012–13 66.1% 76.2% 70.5% 69.8% 2011–12 66.1% 75.4% 70.1% 69.6% * Based on a 7.0% discount rate and includes the terminated agency pool and 1959 survivor benefit plan. Contributions, 10-Year Review (in thousands) Employer Member Investment Contributions Contributions & Other Income 2019–20 $22,039,561 $4,901,000 $18,516,994 2018–19 $15,612,678 $4,664,618 $22,969,664 2017–18 $19,917,796 * $4,415,129 $27,448,098 2016–17 $12,329,837 $4,214,578 $32,977,020 2015–16 10,892,489 4,015,754 1,548,442 2014–15 9,997,705 3,826,072 6,702,997 2013–14 8,777,602 3,775,038 45,598,044 2012–13 8,123,833 3,897,078 30,291,983 2011–12 7,772,913 3,598,437 (196,014) 2010–11 7,465,397 3,600,089 43,907,436 * Amount includes an additional $6 billion dollar contribution by the state. Funded Status Total PERF 30+70+H70.2% 2018–19*30+70+H70.6% 2019–20** * The PERF is the Public Employees' Retirement Fund. This percentage includes the terminated agency pool and the 1959 survivor benefit plan. Percentage based on a 7.0% discount rate. ** This estimate percentage does not include the terminated agency pool and the 1959 survivor benefit plan. Percetange based on a 7.0% discount rate. Total Employer Contributions 44+43+13+H$22 bil School districts and Charter Schools $2.9 billion / 13% State of California $9.8 billion  / 44% Public agencies $9.3 billion / 43% Shared Responsibility Every dollar paid to CalPERS retirees comes from three sources*: 32+13+55+H$1 Investment earnings 55¢ CalPERS employers 32¢ CalPERS members 13¢ * Income over the last 20 years.271 272 PARS DIVERSIFIED PORTFOLIOS MODERATELY CONSERVATIVE INVESTMENT OBJECTIVE ANNUAL RETURNS ASSET ALLOCATION — MODERATELY CONSERVATIVE PORTFOLIO Comprehensive Investment Solution HighMark® Capital Management, Inc.’s (HighMark) diversified investment portfolios are designed to balance return expectations with risk tolerance. Key features include: sophisticated asset allocation and optimization techniques, four layers of diversification (asset class, style, manager, and security), access to rigorously screened, top tier money managers, flexible investment options, and experienced investment management. Rigorous Manager Due Diligence Our manager review committee utilizes a rigorous screening process that searches for investment managers and styles that have not only produced above-average returns within acceptable risk parameters, but have the resources and commitment to continue to deliver these results. We have set high standards for our investment managers and funds. This is a highly specialized, time consuming approach dedicated to one goal: competitive and consistent performance. Flexible Investment Options In order to meet the unique needs of our clients, we offer access to flexible implementation strategies: HighMark Plus utilizes actively managed mutual funds while Index Plus utilizes index-based securities, including exchange-traded funds. Both investment options leverage HighMark’s active asset allocation approach. Risk Management The portfolio is constructed to control risk through four layers of diversification – asset classes (cash, fixed income, equity), investment styles (large cap, small cap, international, value, growth), managers and securities. Disciplined mutual fund selection and monitoring process helps to drive return potential while reducing portfolio risk. WHY THE PARS DIVERSIFIED MODERATELY CONSERVATIVE PORTFOLIO? Q2 2020 * Returns less than one year are not annualized. **Breakdown for Blended Benchmark: From 10/1/2012 - Present: 15.5% S&P500, 3% Russell Mid Cap, 4.5% Russell 2000, 2% MSCI EM (net), 4% MSCI EAFE (net), 49.25% BBG Barclays US Agg, 14% ICE BofA 1-3 Yr US Corp/Gov’t, 1.75% ICE BofA US High Yield Master II, 1% Wilshire REIT, and 5% FTSE 1 Mth T-Bill. From 4/1/2007 - 9/30/2012: the blended benchmark was 25% S&P 500; 1.5% Russell 2000, 3.5% MSCI EAFE (net), 25% ICE BofA 1-3 Year Corp./Govt, 40% BBG Barclays US Agg, 5% FTSE 1 Mth T-Bill. Prior to April 2007, the blended benchmark was 30% S&P 500, 25% ICE BofA 1-3Yr Corp/Gov, 40% BBG Barclays US Agg, and 5% FTSE 1 Mth T-Bill. To provide current income, with capital appreciation as a secondary objective. The major portion of the assets is committed to income-producing securities. Market fluctuations should be expected. Strategic Range Policy Tactical Equity 20 - 40%30%29% Fixed Income 50 - 80%65%67% Cash 0 - 20%5%4% ANNUALIZED TOTAL RETURNS (Gross of Investment Management Fees, but Net of Embedded Fund Fees) HighMark Plus Composite (Active) Current Quarter* 9.68% Blended Benchmark*,** 7.73% Year To Date* 0.85% Blended Benchmark*,** 1.56% 1 Year 4.87% Blended Benchmark** 5.87% 3 Year 5.22% Blended Benchmark** 5.52% 5 Year 4.90% Blended Benchmark** 5.07% 10 Year 5.97% Blended Benchmark** 5.79% Index Plus Composite (Passive) Current Quarter* 7.78% Blended Benchmark*,** 7.73% Year To Date* 1.80% Blended Benchmark*,** 1.56% 1 Year 6.05% Blended Benchmark** 5.87% 3 Year 5.41% Blended Benchmark** 5.52% 5 Year 4.98% Blended Benchmark** 5.07% 10 Year 5.80% Blended Benchmark** 5.79% PORTFOLIO FACTS HighMark Plus (Active) Composite Inception Date 08/2004 No of Holdings in Portfolio 19 Index Plus (Passive) Composite Inception Date 05/2005 No of Holdings in Portfolio 12 Efficient Frontier Risk (Standard Deviation)Reward (Rate of Return)Conservative Moderately Conservative Moderate Capital Appreciation Balanced HighMark Plus Composite (Active) 2008 -15.37% 2009 18.71% 2010 10.46% 2011 1.75% 2012 10.88% 2013 7.30% 2014 4.41% 2015 0.32% 2016 4.94% 2017 9.56% 2018 -2.60% 2019 13.73% Index Plus Composite (Passive) 2008 -12.40% 2009 11.92% 2010 9.72% 2011 3.24% 2012 8.24% 2013 6.78% 2014 5.40% 2015 -0.18% 2016 5.42% 2017 8.08% 2018 -2.33% 2019 13.53% (Gross of Investment Management Fees, but Net of Embedded Fund Fees) EXHIBIT B 273 HIGHMARK CAPITAL MANAGEMENT 350 California Street Suite 1600 San Francisco, CA 94104 800-582-4734 ABOUT THE ADVISER HighMark®Capital Management, Inc. (HighMark) has 100 years (including predecessor organizations) of institutional money management experience with $8.6 billion in assets under management and $8.1 billion in assets under advisement*. HighMark has a long term disciplined approach to money management and currently manages assets for a wide array of clients. ABOUT THE PORTFOLIO MANAGEMENT TEAM Andrew Brown, CFA® Senior Portfolio Manager Investment Experience: since 1994 HighMark Tenure: since 1997 Education: MBA, University of Southern California; BA, University of Southern California Salvatore “Tory” Milazzo III, CFA® Senior Portfolio Manager Investment Experience: since 2004 HighMark Tenure: since 2014 Education: BA, Colgate University J. Keith Stribling, CFA ® Senior Portfolio Manager Investment Experience: since 1985 HighMark Tenure: since 1995 Education: BA, Stetson University Christiane Tsuda Senior Portfolio Manager Investment Experience: since 1987 HighMark Tenure: since 2010 Education: BA, International Christian University, Tokyo Anne Wimmer, CFA® Senior Portfolio Manager Investment Experience: since 1987 HighMark Tenure: since 2007 Education: BA, University of California, Santa Barbara Randy Yurchak, CFA® Senior Portfolio Manager Investment Experience: since 2002 HighMark Tenure: since 2017 Education: MBA, Arizona State University; BS, University of Washington Asset Allocation Committee Number of Members: 17 Average Years of Experience: 26 Average Tenure (Years): 14 Manager Review Group Number of Members: 7 Average Years of Experience: 17 Average Tenure (Years): 8 *Assets under management (“AUM”) include assets for which HighMark provides continuous and regular supervisory and management services. Assets under advisement (“AUA”) include assets for which HighMark provides certain investment advisory services (including, but not limited to, investment research and strategies) for client assets of its parent company, MUFG Union Bank, N.A. The performance records shown represent a size-weighted composite of tax exempt accounts that meet the following criteria: Accounts are managed by HighMark Capital Advisors (HCA) with full investment authority according to the PARS Moderately Conservative active and passive objectives. The adviser to the PARS portfolios is US Bank, and HighMark serves as sub-adviser to US Bank to manage these portfolios. US Bank may charge clients as much as 0.60% annual management fee based on a sliding scale. US Bank pays HighMark 60% of the annual management fee for assets sub-advised by HighMark under its sub-advisory agreement with US Bank. The 0.36% paid to HighMark, as well as other expenses that may be incurred in the management of the portfolio, will reduce the portfolio’s returns. Assuming an investment for five years, a 5% annual total return, and an annual sub-advisory fee rate of 0.36% deducted from the assets at market at the end of each year, a $10 million initial value would grow to $12.53 million after fees (Net-of-Fees) and $12.76 million before fees (Gross-of-Fees). Gross returns are presented before management and custodial fees but after all trading expenses and reflect the reinvestment of dividends and other income. A client's return will be reduced by the advisory fees and other expenses it may incur as a client. Additional information regarding the firm’s policies and procedures for calculating and reporting performance results is available upon request. Performance results are calculated and presented in U.S. dollars and do not reflect the deduction of investment advisory fees, custody fees, or taxes but do reflect the deduction of trading expenses. Returns are calculated based on trade-date accounting. Blended benchmarks represent HighMark’s strategic allocations between equity, fixed income, and cash and are rebalanced monthly. Benchmark returns do not reflect the deduction of advisory fees or other expenses of investing but assumes the reinvestment of dividends and other earnings. An investor cannot invest directly in an index. The unmanaged S&P 500 Index is representative of the performance of large companies in the U.S. stock market. The MSCI EAFE Index is a free float- adjusted market capitalization index designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The Russell Midcap Index measures the performance of the mid- cap segment of the U.S. equity universe. The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The ICE BofA US High Yield Master II Index tracks the performance of below investment grade U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market. Wilshire REIT index measures U.S. publicly traded Real Estate Investment Trusts. The unmanaged Bloomberg Barclays U.S. Aggregate Bond Index is generally representative of the U.S. taxable bond market as a whole. The ICE BofA 1-3 Year U.S. Corporate & Government Index tracks the bond performance of the ICE BofA U.S. Corporate & Government Index, with a remaining term to final maturity less than 3 years. The unmanaged FTSE 1-Month Treasury Bill Index tracks the yield of the 1-month U.S. Treasury Bill. HighMark Capital Management, Inc. (HighMark), an SEC-registered investment adviser, is a wholly owned subsidiary of MUFG Union Bank, N.A. (MUB). HighMark manages institutional separate account portfolios for a wide variety of for-profit and nonprofit organizations, public agencies, and public and private retirement plans. MUB, a subsidiary of MUFG Americas Holdings Corporation, provides certain services to HighMark and is compensated for these services. Past performance does not guarantee future results. Individual account management and construction will vary depending on each client’s investment needs and objectives. Investments employing HighMark strategies are NOT insured by the FDIC or by any other Federal Government Agency, are NOT Bank deposits, are NOT guaranteed by the Bank or any Bank affiliate, and MAY lose value, including possible loss of principal. 350 California Street Suite 1600 San Francisco, CA 94104 800.582.4734 www.highmarkcapital.com HOLDINGS STYLE Small Cap 2.8% Interm-Term Bond 54.7% Short-Term Bond 12.2% Large Cap Core 10.6% Large Cap Growth 3.5% Mid Cap 2.0% Intl Stocks 6.0% Cash 4.1% Large Cap Value 3.5% Real Estate 0.6% Holdings are subject to change at the discretion of the investment manager. HighMark Plus (Active)Index Plus (Passive) Columbia Contrarian Core I3 iShares Core S&P 500 ETF Vanguard Growth & Income Adm iShares S&P 500 Value ETF Dodge & Cox Stock Fund iShares S&P 500 Growth ETF iShares S&P 500 Value ETF iShares Russell Mid-Cap ETF Harbor Capital Appreciation - Retirement Vanguard Real Estate ETF T. Rowe Price Growth Stock - I iShares Russell 2000 Value ETF iShares Russell Mid-Cap ETF iShares Russell 2000 Growth ETF Vanguard Real Estate ETF iShares MSCI EAFE ETF Undiscovered Managers Behavioral Value-R6 Vanguard FTSE Emerging Markets ETF Victory RS Small Cap Growth - R6 Vanguard Short-Term Invest-Grade Adm DFA Large Cap International Portfolio iShares Core U.S. Aggregate Dodge & Cox International Stock First American Government Obligations Z MFS International Growth - R6 Hartford Schroders Emerging Markets Eq Vanguard Short-Term Invest-Grade Adm PIMCO Total Return Fund - Inst PGIM Total Return Bond - R6 DoubleLine Core Fixed Income - I First American Government Obligations Z 274 CALPERS ACTUARIAL VALUATION - June 30, 2019 Miscellaneous Plan of the City of La Quinta CalPERS ID: 2186535078 Rate Plan belonging to the Miscellaneous Risk Pool Page 11 Schedule of Plan’s Amortization Bases Note that there is a two-year lag between the valuation date and the start of the contribution fiscal year. •The assets, liabilities, and funded status of the plan are measured as of the valuation date: June 30, 2019. •The required employer contributions determined by the valuation are for the fiscal year beginning two years after the valuation date: fiscal year 2021-22. This two-year lag is necessary due to the amount of time needed to extract and test the membership and financial data, a nd the need to provide public agencies with their required employer contribution well in advance of the start of the fiscal year. The Unfunded Accrued Liability (UAL) is used to determine the employer contribution and therefore must be rolled forward two years from the valuation date to the first day of the fiscal year for which the contribution is being determined. The UAL is rolled forward each year by subtracting the expected payment on the UAL for the fiscal year and adjusting for interest. The expected payment on the UAL for a fiscal year is equal to the Expected Employer Contribution for the fiscal year minus the Expected Normal Cost for the year. The Employer Contribution for the first fiscal year is determined by the actuarial valuation two ye ars ago and the contribution for the second year is from the actuarial valuation one year ago. Additional discretionary payments are reflected in the Expected Payments column in the fiscal year they were made by the agency. Reason for Base Date Est. Ramp Level 2021-22 Ramp Shape Escala- tion Rate Amort. Period Balance 6/30/19 Expected Payment 2019-20 Balance 6/30/20 Expected Payment 2020-21 Balance 6/30/21 Minimum Required Payment 2021-22 Share of Pre-2013 Pool UAL 6/30/13 No Ramp 2.75% 15 4,668,054 389,618 4,591,794 395,381 4,504,234 406,254 Non-Investment (Gain)/Loss 6/30/13 100% Up/Down 2.75% 24 (42,644) (2,860) (42,671) (2,895) (42,663) (2,974) Investment (Gain)/Loss 6/30/13 100% Up/Down 2.75% 24 4,623,390 310,123 4,626,234 313,830 4,625,442 322,460 Non-Investment (Gain)/Loss 6/30/14 100% Up/Down 2.75% 25 3,896 207 3,955 262 3,961 269 Investment (Gain)/Loss 6/30/14 100% Up/Down 2.75% 25 (3,430,258) (182,085) (3,482,026) (230,256) (3,487,589) (236,588) Assumption Change 6/30/14 100% Up/Down 2.75% 15 2,184,693 162,485 2,169,546 206,300 2,108,016 211,974 Non-Investment (Gain)/Loss 6/30/15 100% Up/Down 2.75% 26 (176,354) (7,038) (181,419) (9,489) (184,303) (12,187) Investment (Gain)/Loss 6/30/15 100% Up/Down 2.75% 26 2,084,746 83,199 2,144,617 112,172 2,178,709 144,071 Non-Investment (Gain)/Loss 6/30/16 80% Up/Down 2.75% 27 (329,390) (8,898) (343,243) (13,489) (353,317) (18,480) Investment (Gain)/Loss 6/30/16 80% Up/Down 2.75% 27 2,580,570 69,714 2,689,097 105,678 2,768,020 144,779 Assumption Change 6/30/16 80% Up/Down 2.75% 17 811,167 29,941 836,977 45,569 848,428 62,430 Non-Investment (Gain)/Loss 6/30/17 60% Up/Down 2.75% 28 (69,068) (960)(72,910)(1,938) (76,009) (2,987) Investment (Gain)/Loss 6/30/17 60% Up/Down 2.75% 28 (1,298,061) (18,034) (1,370,271) (36,424) (1,428,513) (56,139) Assumption Change 6/30/17 60% Up/Down 2.75% 18 899,515 16,991 944,905 34,456 975,407 53,106 Non-Investment (Gain)/Loss 6/30/18 40% Up/Down 2.75% 29 198,381 0 212,268 2,899 224,128 5,958 Investment (Gain)/Loss 6/30/18 40% Up/Down 2.75% 29 (387,128) 0 (414,227) (5,657) (437,371) (11,626) Assumption Change 6/30/18 40% Up/Down 2.75% 19 1,380,003 (21,113) 1,498,443 27,938 1,574,435 57,412 EXHIBIT C 275 CALPERS ACTUARIAL VALUATION - June 30, 2019 Miscellaneous Plan of the City of La Quinta CalPERS ID: 2186535078 Rate Plan belonging to the Miscellaneous Risk Pool Page 12 Schedule of Plan’s Amortization Bases (continued) Reason for Base Date Est. Ramp Level 2021-22 Ramp Shape Escala- tion Rate Amort. Period Balance 6/30/19 Expected Payment 2019-20 Balance 6/30/20 Expected Payment 2020-21 Balance 6/30/21 Minimum Required Payment 2021-22 Method Change 6/30/18 40% Up/Down 2.75% 19 387,543 (1,397) 416,116 7,758 437,219 15,943 Non-Investment (Gain)/Loss 6/30/19 No Ramp 0.00% 20 194,568 0 208,188 0 222,761 20,328 Investment (Gain)/Loss 6/30/19 20% Up Only 0.00% 20 176,712 0 189,082 0 202,318 4,423 Total 14,460,335 819,893 14,624,455 952,095 14,663,313 1,108,426 The (gain)/loss bases are the plan’s allocated share of the risk pool’s (gain)/loss for the fiscal year as disclosed in “Allocation of Plan’s Share of Pool’s Experience/Assumption Change” earlier in this section. These (gain)/loss bases will be amortized in accordance with the CalPERS amortization policy in effect at the time the base was established. 276 Fiscal Year Cost - One Time ADP $500,000 Miscellaneous Pool 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 Payroll 7,160,000$ 7,360,000$ 7,560,000$ 7,770,000$ 7,980,000$ 8,200,000$ 8,430,000$ 8,660,000$ 8,900,000$ 9,140,000$ 9,390,000$ 9,650,000$ 9,920,000$ 10,190,000$ Baseline Normal Cost 720,000$ 720,000$ 730,000$ 730,000$ 740,000$ 750,000$ 760,000$ 770,000$ 780,000$ 790,000$ 790,000$ 800,000$ 810,000$ 820,000$ UAL Payment 980,000$ 1,130,000$ 1,240,000$ 1,310,000$ 1,390,000$ 1,430,000$ 1,450,000$ 1,490,000$ 1,530,000$ 1,570,000$ 1,610,000$ 1,650,000$ 1,640,000$ 1,630,000$ Total Employer Cost 1,700,000$ 1,840,000$ 1,970,000$ 2,050,000$ 2,130,000$ 2,180,000$ 2,210,000$ 2,260,000$ 2,310,000$ 2,350,000$ 2,400,000$ 2,460,000$ 2,450,000$ 2,440,000$ Total Employer Rate 23.77%25.07%26.04%26.37%26.73%26.62%26.22%26.07%25.91%25.75%25.60%25.44%24.71%23.98% Scenario Normal Cost 720,000$ 720,000$ 730,000$ 730,000$ 740,000$ 750,000$ 760,000$ 770,000$ 780,000$ 790,000$ 790,000$ 800,000$ 810,000$ 820,000$ UAL Payment 980,000$ 1,100,000$ 1,210,000$ 1,280,000$ 1,350,000$ 1,390,000$ 1,410,000$ 1,450,000$ 1,490,000$ 1,530,000$ 1,570,000$ 1,610,000$ 1,600,000$ 1,580,000$ Total Employer Cost 1,700,000$ 1,820,000$ 1,930,000$ 2,010,000$ 2,100,000$ 2,150,000$ 2,170,000$ 2,220,000$ 2,260,000$ 2,310,000$ 2,360,000$ 2,410,000$ 2,400,000$ 2,400,000$ Total Employer Rate 23.77%24.70%25.58%25.91%26.27%26.16%25.76%25.61%25.45%25.29%25.14%24.98%24.25%23.52% Impact on Cost Employer Cost Savings -$ (30,000)$ (30,000)$ (40,000)$ (40,000)$ (40,000)$ (40,000)$ (40,000)$ (40,000)$ (40,000)$ (40,000)$ (40,000)$ (50,000)$ (50,000)$ Total Employer Rate 0.00%-0.37%-0.46%-0.46%-0.46%-0.46%-0.46%-0.46%-0.46%-0.46%-0.46%-0.46%-0.46%-0.46% 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024 6/30/2025 6/30/2026 6/30/2027 6/30/2028 6/30/2029 6/30/2030 6/30/2031 6/30/2032 6/30/2033 Baseline Accrued Liability 54,810,000$ 57,470,000$ 60,280,000$ 63,240,000$ 66,360,000$ 69,660,000$ 73,150,000$ 76,830,000$ 80,720,000$ 84,840,000$ 89,190,000$ 93,790,000$ 98,650,000$ 103,810,000$ Market Value of Assets 40,090,000$ 42,730,000$ 45,670,000$ 48,890,000$ 52,370,000$ 56,130,000$ 60,150,000$ 64,420,000$ 68,980,000$ 73,850,000$ 79,060,000$ 84,610,000$ 90,550,000$ 96,830,000$ UAL - Baseline 14,720,000$ 14,750,000$ 14,610,000$ 14,350,000$ 13,990,000$ 13,530,000$ 13,000,000$ 12,410,000$ 11,740,000$ 10,980,000$ 10,130,000$ 9,170,000$ 8,110,000$ 6,980,000$ Funded Ratio 73.14%74.34%75.76%77.31%78.91%80.57%82.23%83.84%85.45%87.05%88.64%90.22%91.78%93.28% Scenario Accrued Liability 54,810,000$ 57,470,000$ 60,280,000$ 63,240,000$ 66,360,000$ 69,660,000$ 73,150,000$ 76,830,000$ 80,720,000$ 84,840,000$ 89,190,000$ 93,790,000$ 98,650,000$ 103,810,000$ Market Value of Assets 40,090,000$ 43,240,000$ 46,190,000$ 49,420,000$ 52,900,000$ 56,660,000$ 60,670,000$ 64,940,000$ 69,500,000$ 74,360,000$ 79,560,000$ 85,100,000$ 91,030,000$ 97,300,000$ UAL - Scenario 14,720,000$ 14,230,000$ 14,090,000$ 13,820,000$ 13,470,000$ 13,010,000$ 12,480,000$ 11,890,000$ 11,230,000$ 10,480,000$ 9,630,000$ 8,680,000$ 7,630,000$ 6,510,000$ Funded Ratio 73.14%75.24%76.63%78.14%79.71%81.33%82.94%84.52%86.09%87.65%89.20%90.74%92.27%93.73% EXHIBIT D 277 Fiscal Year Cost - One Ti Miscellaneous Pool Payroll Baseline Normal Cost UAL Payment Total Employer Cost Total Employer Rate Scenario Normal Cost UAL Payment Total Employer Cost Total Employer Rate Impact on Cost Employer Cost Savings Total Employer Rate Baseline Accrued Liability Market Value of Assets UAL - Baseline Funded Ratio Scenario Accrued Liability Market Value of Assets UAL - Scenario Funded Ratio 2034-35 2035-36 2036-37 2037-38 2038-39 2039-40 2040-41 2041-42 2042-43 2043-44 2044-45 10,470,000$ 10,760,000$ 11,050,000$ 11,360,000$ 11,670,000$ 11,990,000$ 12,320,000$ 12,660,000$ 13,010,000$ 13,370,000$ 13,730,000$ 820,000$ 830,000$ 840,000$ 860,000$ 890,000$ 910,000$ 940,000$ 960,000$ 990,000$ 1,010,000$ 1,040,000$ 1,590,000$ 1,520,000$ 780,000$ 690,000$ 600,000$ 530,000$ 480,000$ 340,000$ 320,000$ 250,000$ 120,000$ 2,410,000$ 2,350,000$ 1,620,000$ 1,550,000$ 1,490,000$ 1,440,000$ 1,410,000$ 1,300,000$ 1,300,000$ 1,260,000$ 1,160,000$ 23.04%21.85%14.65%13.69%12.73%11.98%11.47%10.26%10.03%9.45%8.43% 820,000$ 830,000$ 840,000$ 860,000$ 890,000$ 910,000$ 940,000$ 960,000$ 990,000$ 1,010,000$ 1,040,000$ 1,540,000$ 1,470,000$ 730,000$ 640,000$ 550,000$ 470,000$ 420,000$ 280,000$ 260,000$ 190,000$ -$ 2,360,000$ 2,300,000$ 1,570,000$ 1,500,000$ 1,430,000$ 1,380,000$ 1,360,000$ 1,240,000$ 1,250,000$ 1,200,000$ 1,040,000$ 22.58%21.39%14.19%13.23%12.27%11.52%11.01%9.80%9.57%8.99%7.59% (50,000)$ (50,000)$ (50,000)$ (50,000)$ (50,000)$ (60,000)$ (60,000)$ (60,000)$ (60,000)$ (60,000)$ (120,000)$ -0.46%-0.46%-0.46%-0.46%-0.46%-0.46%-0.46%-0.46%-0.46%-0.46%-0.84% 6/30/2034 6/30/2035 6/30/2036 6/30/2037 6/30/2038 6/30/2039 6/30/2040 6/30/2041 6/30/2042 6/30/2043 6/30/2044 109,260,000$ 115,030,000$ 121,160,000$ 127,680,000$ 134,610,000$ 141,980,000$ 149,820,000$ 158,160,000$ 167,030,000$ 176,480,000$ 186,530,000$ 103,480,000$ 110,490,000$ 117,870,000$ 124,970,000$ 132,420,000$ 140,260,000$ 148,520,000$ 157,270,000$ 166,430,000$ 176,160,000$ 186,450,000$ 5,780,000$ 4,540,000$ 3,290,000$ 2,720,000$ 2,190,000$ 1,720,000$ 1,300,000$ 890,000$ 610,000$ 320,000$ 90,000$ 94.71%96.05%97.28%97.87%98.37%98.79%99.13%99.43%99.64%99.82%99.95% 109,260,000$ 115,030,000$ 121,160,000$ 127,680,000$ 134,610,000$ 141,980,000$ 149,820,000$ 158,160,000$ 167,030,000$ 176,480,000$ 186,530,000$ 103,930,000$ 110,920,000$ 118,280,000$ 125,350,000$ 132,780,000$ 140,590,000$ 148,820,000$ 157,520,000$ 166,640,000$ 176,330,000$ 186,560,000$ 5,330,000$ 4,110,000$ 2,880,000$ 2,330,000$ 1,830,000$ 1,390,000$ 1,000,000$ 640,000$ 390,000$ 150,000$ (30,000)$ 95.12%96.42%97.62%98.18%98.64%99.02%99.33%99.60%99.77%99.91%100.02% First 5 Years Savings (180,000)$ Total Cost Savings (1,190,000)$ 278 Fiscal Year Cost Miscellaneous Pool 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 Payroll 7,160,000$ 7,360,000$ 7,560,000$ 7,770,000$ 7,980,000$ 8,200,000$ 8,430,000$ 8,660,000$ 8,900,000$ 9,140,000$ 9,390,000$ 9,650,000$ 9,920,000$ 10,190,000$ Baseline Normal Cost 720,000$ 720,000$ 730,000$ 730,000$ 740,000$ 750,000$ 760,000$ 770,000$ 780,000$ 790,000$ 790,000$ 800,000$ 810,000$ 820,000$ UAL Payment 980,000$ 1,130,000$ 1,240,000$ 1,310,000$ 1,390,000$ 1,430,000$ 1,450,000$ 1,490,000$ 1,530,000$ 1,570,000$ 1,610,000$ 1,650,000$ 1,640,000$ 1,630,000$ Total Employer Cost 1,700,000$ 1,850,000$ 1,970,000$ 2,050,000$ 2,130,000$ 2,180,000$ 2,210,000$ 2,260,000$ 2,310,000$ 2,350,000$ 2,400,000$ 2,460,000$ 2,450,000$ 2,440,000$ Total Employer Rate 23.77%25.07%26.04%26.37%26.73%26.62%26.22%26.07%25.91%25.75%25.60%25.44%24.71%23.98% Scenario Normal Cost 720,000$ 720,000$ 730,000$ 730,000$ 740,000$ 750,000$ 760,000$ 770,000$ 780,000$ 790,000$ 790,000$ 800,000$ 810,000$ 820,000$ UAL Payment 980,000$ 1,070,000$ 1,170,000$ 1,240,000$ 1,320,000$ 1,360,000$ 1,370,000$ 1,410,000$ 1,450,000$ 1,480,000$ 1,520,000$ 1,560,000$ 1,550,000$ 1,530,000$ Total Employer Cost 1,700,000$ 1,790,000$ 1,900,000$ 1,980,000$ 2,060,000$ 2,110,000$ 2,130,000$ 2,180,000$ 2,220,000$ 2,270,000$ 2,320,000$ 2,370,000$ 2,360,000$ 2,350,000$ Total Employer Rate 23.77%24.33%25.12%25.45%25.81%25.70%25.30%25.15%24.99%24.83%24.68%24.52%23.79%23.06% Impact on Cost Employer Cost Savings -$ (60,000)$ (70,000)$ (70,000)$ (70,000)$ (80,000)$ (80,000)$ (80,000)$ (80,000)$ (80,000)$ (90,000)$ (90,000)$ (90,000)$ (90,000)$ Total Employer Rate 0.00%-0.74%-0.92%-0.92%-0.92%-0.92%-0.92%-0.92%-0.92%-0.92%-0.92%-0.92%-0.92%-0.92% 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024 6/30/2025 6/30/2026 6/30/2027 6/30/2028 6/30/2029 6/30/2030 6/30/2031 6/30/2032 6/30/2033 Baseline Accrued Liability 54,810,000$ 57,470,000$ 60,280,000$ 63,240,000$ 66,360,000$ 69,660,000$ 73,150,000$ 76,830,000$ 80,720,000$ 84,840,000$ 89,190,000$ 93,790,000$ 98,650,000$ 103,810,000$ Market Value of Assets 40,090,000$ 42,730,000$ 45,670,000$ 48,890,000$ 52,370,000$ 56,130,000$ 60,150,000$ 64,420,000$ 68,980,000$ 73,850,000$ 79,060,000$ 84,610,000$ 90,550,000$ 96,830,000$ UAL - Baseline 14,720,000$ 14,750,000$ 14,610,000$ 14,350,000$ 13,990,000$ 13,530,000$ 13,000,000$ 12,410,000$ 11,740,000$ 10,980,000$ 10,130,000$ 9,170,000$ 8,110,000$ 6,980,000$ Funded Ratio 73.14%74.34%75.76%77.31%78.91%80.57%82.23%83.84%85.45%87.05%88.64%90.22%91.78%93.28% Scenario Accrued Liability 54,810,000$ 57,470,000$ 60,280,000$ 63,240,000$ 66,360,000$ 69,660,000$ 73,150,000$ 76,830,000$ 80,720,000$ 84,840,000$ 89,190,000$ 93,790,000$ 98,650,000$ 103,810,000$ Market Value of Assets 40,090,000$ 43,760,000$ 46,720,000$ 49,940,000$ 53,420,000$ 57,180,000$ 61,190,000$ 65,460,000$ 70,010,000$ 74,870,000$ 80,060,000$ 85,600,000$ 91,510,000$ 97,760,000$ UAL - Scenario 14,720,000$ 13,710,000$ 13,560,000$ 13,300,000$ 12,940,000$ 12,480,000$ 11,960,000$ 11,370,000$ 10,710,000$ 9,970,000$ 9,130,000$ 8,190,000$ 7,150,000$ 6,040,000$ Funded Ratio 73.14%76.14%77.50%78.98%80.50%82.08%83.66%85.20%86.73%88.25%89.76%91.27%92.76%94.18% One-time ADP of $1,000,000 279 Fiscal Year Cost Miscellaneous Pool Payroll Baseline Normal Cost UAL Payment Total Employer Cost Total Employer Rate Scenario Normal Cost UAL Payment Total Employer Cost Total Employer Rate Impact on Cost Employer Cost Savings Total Employer Rate Baseline Accrued Liability Market Value of Assets UAL - Baseline Funded Ratio Scenario Accrued Liability Market Value of Assets UAL - Scenario Funded Ratio 2034-35 2035-36 2036-37 2037-38 2038-39 2039-40 2040-41 2041-42 2042-43 2043-44 2044-45 10,470,000$ 10,760,000$ 11,050,000$ 11,360,000$ 11,670,000$ 11,990,000$ 12,320,000$ 12,660,000$ 13,010,000$ 13,370,000$ 13,730,000$ 820,000$ 830,000$ 840,000$ 860,000$ 890,000$ 910,000$ 940,000$ 960,000$ 990,000$ 1,010,000$ 1,040,000$ 1,590,000$ 1,520,000$ 780,000$ 690,000$ 600,000$ 530,000$ 480,000$ 340,000$ 320,000$ 250,000$ 120,000$ 2,410,000$ 2,350,000$ 1,620,000$ 1,550,000$ 1,490,000$ 1,440,000$ 1,410,000$ 1,300,000$ 1,300,000$ 1,260,000$ 1,160,000$ 23.04%21.85%14.65%13.69%12.73%11.98%11.47%10.26%10.03%9.45%8.43% 820,000$ 830,000$ 840,000$ 860,000$ 890,000$ 910,000$ 940,000$ 960,000$ 990,000$ 1,010,000$ 1,040,000$ 1,490,000$ 1,420,000$ 680,000$ 590,000$ 490,000$ 420,000$ 360,000$ 220,000$ 200,000$ -$ -$ 2,320,000$ 2,250,000$ 1,520,000$ 1,450,000$ 1,380,000$ 1,330,000$ 1,300,000$ 1,180,000$ 1,190,000$ 1,010,000$ 1,040,000$ 22.12%20.93%13.73%12.77%11.81%11.06%10.55%9.34%9.11%7.59%7.59% (100,000)$ (100,000)$ (100,000)$ (100,000)$ (110,000)$ (110,000)$ (110,000)$ (120,000)$ (120,000)$ (250,000)$ (120,000)$ -0.92%-0.92%-0.92%-0.92%-0.92%-0.92%-0.92%-0.92%-0.92%-1.86%-0.84% 6/30/2034 6/30/2035 6/30/2036 6/30/2037 6/30/2038 6/30/2039 6/30/2040 6/30/2041 6/30/2042 6/30/2043 6/30/2044 109,260,000$ 115,030,000$ 121,160,000$ 127,680,000$ 134,610,000$ 141,980,000$ 149,820,000$ 158,160,000$ 167,030,000$ 176,480,000$ 186,530,000$ 103,480,000$ 110,490,000$ 117,870,000$ 124,970,000$ 132,420,000$ 140,260,000$ 148,520,000$ 157,270,000$ 166,430,000$ 176,160,000$ 186,450,000$ 5,780,000$ 4,540,000$ 3,290,000$ 2,720,000$ 2,190,000$ 1,720,000$ 1,300,000$ 890,000$ 610,000$ 320,000$ 90,000$ 94.71%96.05%97.28%97.87%98.37%98.79%99.13%99.43%99.64%99.82%99.95% 109,260,000$ 115,030,000$ 121,160,000$ 127,680,000$ 134,610,000$ 141,980,000$ 149,820,000$ 158,160,000$ 167,030,000$ 176,480,000$ 186,530,000$ 104,380,000$ 111,350,000$ 118,690,000$ 125,740,000$ 133,140,000$ 140,920,000$ 149,120,000$ 157,780,000$ 166,860,000$ 176,500,000$ 186,680,000$ 4,880,000$ 3,680,000$ 2,470,000$ 1,940,000$ 1,470,000$ 1,060,000$ 710,000$ 380,000$ 180,000$ (20,000)$ (150,000)$ 95.53%96.80%97.96%98.48%98.91%99.25%99.53%99.76%99.89%100.01%100.08% First 5 Years Savings (350,000)$ Total Employer Cost Savings (2,370,000)$ 280 Fiscal Year Cost - One Time ADP of $2,000,000 Miscellaneous Pool 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 Payroll 7,160,000$ 7,360,000$ 7,560,000$ 7,770,000$ 7,980,000$ 8,200,000$ 8,430,000$ 8,660,000$ 8,900,000$ 9,140,000$ 9,390,000$ 9,650,000$ 9,920,000$ Baseline Normal Cost 720,000$ 720,000$ 730,000$ 730,000$ 740,000$ 750,000$ 760,000$ 770,000$ 780,000$ 790,000$ 790,000$ 800,000$ 810,000$ UAL Payment 980,000$ 1,130,000$ 1,240,000$ 1,310,000$ 1,390,000$ 1,430,000$ 1,450,000$ 1,490,000$ 1,530,000$ 1,570,000$ 1,610,000$ 1,650,000$ 1,640,000$ Total Employer Cost 1,700,000$ 1,840,000$ 1,970,000$ 2,050,000$ 2,130,000$ 2,180,000$ 2,210,000$ 2,260,000$ 2,310,000$ 2,350,000$ 2,400,000$ 2,460,000$ 2,450,000$ Total Employer Rate 23.77%25.07%26.04%26.37%26.73%26.62%26.22%26.07%25.91%25.75%25.60%25.44%24.71% Scenario Normal Cost 720,000$ 720,000$ 730,000$ 730,000$ 740,000$ 750,000$ 760,000$ 770,000$ 780,000$ 790,000$ 790,000$ 800,000$ 810,000$ UAL Payment 980,000$ 1,020,000$ 1,100,000$ 1,170,000$ 1,240,000$ 1,280,000$ 1,290,000$ 1,330,000$ 1,360,000$ 1,400,000$ 1,440,000$ 1,480,000$ 1,460,000$ Total Employer Cost 1,700,000$ 1,740,000$ 1,830,000$ 1,910,000$ 1,990,000$ 2,030,000$ 2,050,000$ 2,100,000$ 2,140,000$ 2,190,000$ 2,230,000$ 2,280,000$ 2,270,000$ Total Employer Rate 23.77%23.60%24.20%24.53%24.89%24.78%24.38%24.23%24.07%23.91%23.76%23.60%22.87% Impact on Cost Total Employer Cost -$ (110,000)$ (140,000)$ (140,000)$ (150,000)$ (150,000)$ (150,000)$ (160,000)$ (160,000)$ (170,000)$ (170,000)$ (180,000)$ (180,000)$ Total Employer Rate 0.00%-1.47%-1.84%-1.84%-1.84%-1.84%-1.84%-1.84%-1.84%-1.84%-1.84%-1.84%-1.84% 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024 6/30/2025 6/30/2026 6/30/2027 6/30/2028 6/30/2029 6/30/2030 6/30/2031 6/30/2032 Baseline Accrued Liability 54,810,000$ 57,470,000$ 60,280,000$ 63,240,000$ 66,360,000$ 69,660,000$ 73,150,000$ 76,830,000$ 80,720,000$ 84,840,000$ 89,190,000$ 93,790,000$ 98,650,000$ Market Value of Assets 40,090,000$ 42,730,000$ 45,670,000$ 48,890,000$ 52,370,000$ 56,130,000$ 60,150,000$ 64,420,000$ 68,980,000$ 73,850,000$ 79,060,000$ 84,610,000$ 90,550,000$ UAL - Baseline 14,720,000$ 14,750,000$ 14,610,000$ 14,350,000$ 13,990,000$ 13,530,000$ 13,000,000$ 12,410,000$ 11,740,000$ 10,980,000$ 10,130,000$ 9,170,000$ 8,110,000$ Funded Ratio 73.14%74.34%75.76%77.31%78.91%80.57%82.23%83.84%85.45%87.05%88.64%90.22%91.78% Scenario Accrued Liability 54,810,000$ 57,470,000$ 60,280,000$ 63,240,000$ 66,360,000$ 69,660,000$ 73,150,000$ 76,830,000$ 80,720,000$ 84,840,000$ 89,190,000$ 93,790,000$ 98,650,000$ Market Value of Assets 40,090,000$ 44,800,000$ 47,770,000$ 51,000,000$ 54,480,000$ 58,230,000$ 62,240,000$ 66,500,000$ 71,040,000$ 75,890,000$ 81,060,000$ 86,580,000$ 92,470,000$ UAL - Scenario 14,720,000$ 12,680,000$ 12,510,000$ 12,240,000$ 11,890,000$ 11,430,000$ 10,910,000$ 10,340,000$ 9,680,000$ 8,950,000$ 8,130,000$ 7,210,000$ 6,190,000$ Funded Ratio 73.14%77.94%79.25%80.64%82.09%83.59%85.08%86.55%88.00%89.45%90.89%92.31%93.73% 281 Fiscal Year Cost - One Tim Miscellaneous Pool Payroll Baseline Normal Cost UAL Payment Total Employer Cost Total Employer Rate Scenario Normal Cost UAL Payment Total Employer Cost Total Employer Rate Impact on Cost Total Employer Cost Total Employer Rate Baseline Accrued Liability Market Value of Assets UAL - Baseline Funded Ratio Scenario Accrued Liability Market Value of Assets UAL - Scenario Funded Ratio 2033-34 2034-35 2035-36 2036-37 2037-38 2038-39 2039-40 2040-41 2041-42 2042-43 2043-44 2044-45 10,190,000$ 10,470,000$ 10,760,000$ 11,050,000$ 11,360,000$ 11,670,000$ 11,990,000$ 12,320,000$ 12,660,000$ 13,010,000$ 13,370,000$ 13,730,000$ 820,000$ 820,000$ 830,000$ 840,000$ 860,000$ 890,000$ 910,000$ 940,000$ 960,000$ 990,000$ 1,010,000$ 1,040,000$ 1,630,000$ 1,590,000$ 1,520,000$ 780,000$ 690,000$ 600,000$ 530,000$ 480,000$ 340,000$ 320,000$ 250,000$ 120,000$ 2,440,000$ 2,410,000$ 2,350,000$ 1,620,000$ 1,550,000$ 1,490,000$ 1,440,000$ 1,410,000$ 1,300,000$ 1,300,000$ 1,260,000$ 1,160,000$ 23.98%23.04%21.85%14.65%13.69%12.73%11.98%11.47%10.26%10.03%9.45%8.43% 820,000$ 820,000$ 830,000$ 840,000$ 860,000$ 890,000$ 910,000$ 940,000$ 960,000$ 990,000$ 1,010,000$ 1,040,000$ 1,440,000$ 1,390,000$ 1,320,000$ 580,000$ 480,000$ 390,000$ 310,000$ 250,000$ -$ -$ -$ -$ 2,260,000$ 2,220,000$ 2,150,000$ 1,420,000$ 1,350,000$ 1,270,000$ 1,220,000$ 1,190,000$ 960,000$ 990,000$ 1,010,000$ 1,040,000$ 22.14%21.20%20.01%12.81%11.85%10.89%10.14%9.63%7.59%7.59%7.59%7.59% (190,000)$ (190,000)$ (200,000)$ (200,000)$ (210,000)$ (210,000)$ (220,000)$ (230,000)$ (340,000)$ (320,000)$ (250,000)$ (120,000)$ -1.84%-1.84%-1.84%-1.84%-1.84%-1.84%-1.84%-1.84%-2.67%-2.44%-1.86%-0.84% 6/30/2033 6/30/2034 6/30/2035 6/30/2036 6/30/2037 6/30/2038 6/30/2039 6/30/2040 6/30/2041 6/30/2042 6/30/2043 6/30/2044 103,810,000$ 109,260,000$ 115,030,000$ 121,160,000$ 127,680,000$ 134,610,000$ 141,980,000$ 149,820,000$ 158,160,000$ 167,030,000$ 176,480,000$ 186,530,000$ 96,830,000$ 103,480,000$ 110,490,000$ 117,870,000$ 124,970,000$ 132,420,000$ 140,260,000$ 148,520,000$ 157,270,000$ 166,430,000$ 176,160,000$ 186,450,000$ 6,980,000$ 5,780,000$ 4,540,000$ 3,290,000$ 2,720,000$ 2,190,000$ 1,720,000$ 1,300,000$ 890,000$ 610,000$ 320,000$ 90,000$ 93.28%94.71%96.05%97.28%97.87%98.37%98.79%99.13%99.43%99.64%99.82%99.95% 103,810,000$ 109,260,000$ 115,030,000$ 121,160,000$ 127,680,000$ 134,610,000$ 141,980,000$ 149,820,000$ 158,160,000$ 167,030,000$ 176,480,000$ 186,530,000$ 98,690,000$ 105,270,000$ 112,210,000$ 119,510,000$ 126,520,000$ 133,860,000$ 141,580,000$ 149,710,000$ 158,300,000$ 167,290,000$ 176,830,000$ 186,920,000$ 5,110,000$ 3,980,000$ 2,820,000$ 1,650,000$ 1,170,000$ 750,000$ 400,000$ 120,000$ (140,000)$ (260,000)$ (350,000)$ (380,000)$ 95.07%96.35%97.55%98.64%99.09%99.44%99.72%99.92%100.09%100.15%100.20%100.20% First 5 Years Savings (690,000)$ Total Cost Savings (4,540,000)$ 282 City of La Quinta CITY COUNCIL MEETING: May 4, 2021 STAFF REPORT AGENDA TITLE: DISCUSS FISCAL YEAR 2021/22 PRELIMINARY PROPOSED BUDGET RECOMMENDATION Discuss fiscal year 2021/22 preliminary proposed budget. EXECUTIVE SUMMARY •This first budget study session focuses on the General Fund and Internal Service Funds. A second budget study session on May 18, 2021 will cover Special Revenue Funds, Capital Funds, and Enterprise Funds of the City. •All departments evaluated budget needs based on the City’s priorities and COVID-19 operational impacts when preparing their 2021/22 budgets. •Final budget adoption is scheduled for June 15, 2021. FISCAL IMPACT The preliminary General Fund budget anticipates a surplus of $567,940 with projected General Fund revenues of $59,099,210 (including Measure G sales tax) and proposed operational and capital expenditures of $54,952,626. Unappropriated Measure G sales tax revenue of $3,578,644 shall remain in reserves. BACKGROUND/ANALYSIS The goal of this first study session is to provide an overview and allow time to meet with interested parties to address details that may not be easily conveyed in a study session format. Each department section contains extensive notes to explain changes in 2020/21, and projections for 2021/22. The budget is a puzzle put together to deliver city services to residents and visitors alike. Community input is greatly appreciated and necessary to ensure a vibrant and inclusive budget. It is our goal to use citizen input and feedback to develop the annual budget. The Financial Advisory Commission provides oversight of Measure G funds and had two active sub-committees that reviewed the 2021/22 operating and capital improvement budgets. STUDY SESSION ITEM NO. 1 283 To encourage citizen participation in public meetings the 2021/22 budget schedule is available online at https://www.laquintaca.gov/our-city/city- departments/finance/budget/proposed-budget-2021-22-timeline and noted below. 5/4/2021 City Council Meeting - Budget Study Session #1 - (General Fund and Internal Service Funds focus) 5/5/2021 Housing Commission Meeting - Budget Study Session 5/12/2021 Financial Advisory Commission Meeting - Proposed General Fund and Capital Improvement Program Budgets 5/18/2021 City Council Meeting - Budget Study Session #2 - (General Fund, Enterprise, and Special Revenue Funds) 6/1/2021 City Council Meeting - Budget Study Session #3 - (All Appropriations) 6/1/2021 Housing Authority Board Meeting - Budget Study Session #1 (Housing Funds Only) 6/2/2021 Financial Advisory Commission Meeting - Final review of proposed Measure G sales tax uses 6/9/2021 Housing Commission Meeting - Final Review of proposed Housing Authority Budget 6/15/2021 City Council Meeting - Adopt Operating and CIP budget 6/15/2021 Housing Authority - Adopt Budget PUBLIC MEETING DATES FISCAL YEAR 2021/22 BUDGET Attachment 1 provides a narrative of General Fund revenues and expenses, Internal Service Funds, and Redevelopment Agency loan repayment to the City. Line item details for these revenues and expenses are located in Exhibit A of the Attachment. ALTERNATIVES The City Council may wish to request further information regarding specific items and then provide direction regarding the next steps in the overall budget process, which will include a second and third study session prior to budget adoption. Prepared by: Claudia Martinez, Interim Finance Director Approved by: Jon McMillen, City Manager Attachment: 1. Fiscal Year 2021/22 Proposed Budget Overview 284 ATTACHMENT 1 2021/22 PROPOSED BUDGET STUDY SESSION #1 The first budget study session is designed to provide an overview of the General Fund and four Internal Service Funds (ISF’s). Special Revenue, Capital, and Enterprise Funds will be presented on May 18, 2021. Exhibit A includes proposed revenue and expenditure details for all General Fund and Internal Service Funds. As the City of La Quinta begins to emerge from the COVID-19 pandemic, with more residents becoming vaccinated and the State of California and County of Riverside further loosening restrictions on local business operations and tourism, we look forward to the transition to post-pandemic life and City business. While the city still faces financial challenges caused by the ongoing pandemic, we remain cautiously optimistic about an impending economic recovery. This budget is designed to keep the City of La Quinta thriving and address the needs and expectations of our community while taking the steps necessary to ensure our long-term fiscal health. In formulating budget proposals, departments were directed to evaluate all current expenditures including COVID-19 response and recovery as well as key operational needs for City departments to improve their functions and move forward efficiently. The proposed General Fund budget has a projected surplus of $567,940 as a result of cautious increases to revenue estimates along with expenditure projections that meet departmental needs for daily operations and reopening expenditures. The budget provides resources for public safety, daily operations and capital improvements for the upcoming fiscal year. Projections are anticipated to change before budget adoption. The final proposed budget will be structurally balanced. Revenues 59,099,210$ Less Operating/CIP Expenses (54,952,626) Preliminary Budget Surplus 4,146,584 Less Measure G Reserves (3,578,644) BUDGET SURPLUS 567,940$ GENERAL FUND FY 2021/22 PROPOSED BUDGET SUMMARY 285 REVENUES The City’s top three revenue sources for the General Fund total $38,767,000 (or 65% of the total $59,099,210) and continue to be: •Sales Taxes $21,500,000 •Property Taxes $8,927,000 •Transient Occupancy Taxes (TOT) $8,340,000 All revenue categories experienced increases with the exception of Intergovernmental which included reductions in use of fire service reserves and federal and state government revenue that is unknown at this time and Other/Miscellaneous which included a decrease in allocated interest due to current capital market conditions. Revenues by category are summarized below: While we are optimistic about the upcoming fiscal year, there are still many uncertainties when transitioning to the post-pandemic phase. A summary of the key highlights include: •Revenues are coming in higher than originally projected, although several key revenue streams remain below pre-pandemic levels •Employment trends are not expected to return to pre-COVID levels until 2022 and information technology trends have accelerated as a result of COVID in areas such as remote work, online e-commerce, education, and healthcare •New construction is expected to remain strong as interest rates remain low and demand for housing remains strong, however building materials costs have escalated which could affect these projections •Gradual reopening of city facilities and resuming outdoor sporting events and live performances with limitations based on state guidance •Tourism recovery is expected to begin in late 2021 and is dependent on vaccine distribution, concerns about variants, and potential new surges General Fund Revenues 2020/21 Original 2020/21 Current 2021/22 Proposed Taxes 38,596,000 44,878,000 45,957,000 License & Permits 1,136,800 1,186,800 2,252,000 Intergovernmental 8,479,700 9,343,634 8,546,100 Charges for Services 785,500 575,000 876,010 Fines & Assessment 290,000 264,000 294,000 Other/Misc. 1,438,100 1,438,100 1,174,100 Total Revenues 50,726,100 57,685,534 59,099,210 286 •American Rescue Plan presents the opportunity for economic recovery from the pandemic. Staff is closely monitoring Treasury guidance regarding allowed uses of these funds and will present options at a future meeting. EXPENSES Throughout the past year, we have seen our community unite to support each other. City staff worked tirelessly to innovate and keep all City service lines operational, both in-person and remotely, and have learned to connect in new ways, while staying socially distant. The City of La Quinta must now bring back services and events that were postponed, support recovery of the economy and continue to address the needs of the City such as affordable housing, infrastructure improvements, and capital improvement projects. Police and fire contract expenses are incorporated using estimates from the County of Riverside. These combined budgets total $26,650,000 and represent 48% of the proposed General Fund budget. A summary of expenses by department is provided below, assumptions regarding labor negotiations have been incorporated into the proposed budget: General Fund Expenditures 2020/21 Original 2020/21 Current 2021/22 Proposed Change Current V.Proposed City Council 292,000 292,900 302,200 9,300 City Manager 707,000 767,000 1,076,000 309,000 Marketing & Community Relations 1,110,300 1,228,800 1,325,900 97,100 City Attorney 565,000 565,000 696,000 131,000 City Clerk 593,400 639,100 625,200 (13,900) Human Resources 264,400 304,400 376,000 71,600 Police 17,506,700 17,204,700 18,439,100 1,234,400 Fire 8,021,700 9,165,422 8,210,900 (954,522) Community Resources Admin. 700,600 790,600 808,500 17,900 Wellness Center Operations 543,800 558,800 597,900 39,100 Recreational Programs & Events 438,700 478,700 823,300 344,600 Code Compliance/Animal Control 1,196,800 1,310,700 1,473,320 162,620 Parks Maintenance 1,670,800 1,814,400 2,380,900 566,500 Public Buildings 1,140,700 1,190,700 1,321,200 130,500 Public Works Administration 719,200 719,200 739,900 20,700 Public Works Dev. Services 390,200 390,200 431,000 40,800 Streets 484,300 494,300 496,600 2,300 Engineering Services 999,000 1,062,300 761,800 (300,500) Design & Development Admin.519,300 649,300 656,200 6,900 Planning 513,900 613,900 678,600 64,700 Building 777,100 787,100 919,800 132,700 The Hub 908,300 965,300 986,000 20,700 Finance 1,393,400 1,423,400 1,443,100 19,700 Centralized Services 6,454,100 22,867,375 9,383,206 (13,484,169) Total Expenditures 47,910,700 66,283,597 54,952,626 (11,330,971) 287 City Manager: Increase is due to new account Contingency for Operations, which will allow the City Manager’s office to react quickly to changing operational needs. City Attorney: This department had an increase to budget for potential litigation. Police: Numbers were calculated based on original 2020/21 budget and contract negotiations for 2021/22. Final numbers will be reflective of rates in recently approved contract. Fire: Decrease is due to one-time expenditures that occurred in 2020/21 that will not be repeated in 2021/22 including the $674K transfer out to Capital Projects for the Fire Station 70 revitalization and $350K in Machinery and Equipment for the new ladder truck MOU. Recreational Programs and Events: The 2020/21 budget was significantly reduced as a result of all in-person events being cancelled due to COVID-19, and staff anticipates events will begin to resume in 2021/22. Additionally, Fritz Burns pool (had been closed) and X-Park (new) programming are budgeted here. Code Compliance: This reflects increases to professional services to account for additional security patrols for STVR compliance, the animal control contract with the County of Riverside, and internal service fund contributions for IT and vehicle allocations. Parks Maintenance: Increase is due to landscape maintenance contract, utilities, and ongoing maintenance costs for two new parks, SilverRock and the X-Park. Public Buildings: Increases for anticipated HVAC maintenance/repairs and internal service fund contributions for vehicle allocations. Engineering Services: Decrease is due to a one-time contribution to other agencies expense in 2020/21 for the Music Line. Building: Increase to plan checks and temporary services due to anticipated activity, temporary services, and internal service fund contributions for vehicle allocations. INTERNAL SERVICE FUNDS (ISF) ISF are used to account for activities involved in rendering services to departments within the City. Costs of materials and services used are accumulated in these funds and charged to departments based on personnel and large equipment assigned to each. The following is a summary of expenses by ISF: 288 The increase in the Equipment Replacement Fund is due to the purchase of additional machinery and equipment to increase efficiency and in the Insurance Fund due to an anticipated increase in insurance premiums. The Information Technology Fund indicates a reduction due to a slight decrease in Utilities based on usage history and reduced software enhancements. Decrease in the Park equipment Fund is based on decreased playground enhancements as a majority of this work was completed in FY 2020/21. MEASURE G SALES TAX Measure G sales tax revenue is anticipated to be $11,500,000 and is allocated as presented below in the proposed budget. Anticipated Measure G sales tax reserves available 2021/22 year-end are $15,810,113. REDEVELOPMENT LOAN REPAYMENT The City’s Last and Final Recognized Obligation Payment Schedule (ROPS) for the Successor Agency (former Redevelopment Agency) includes an annual loan repayment. For 2021/22 the total loan repayment is $3,303,610, which is allocated 80% to the General Fund ($2,642,888) and 20% ($660,722) to the Housing Authority Fund. These revenues will be recognized in unassigned reserves in each fund and are not allocated to current expenses. The final loan repayment is scheduled for fiscal year 2029/30. Remaining outstanding loan repayments after 2021/22 total $28,486,493. Fund FY 20/21 Current FY 21/22 Proposed Variance Equipment Replacement 1,144,464 1,222,750 78,286 Information Technology 1,924,200 1,786,700 (137,500) Park Equipment 682,986 105,000 (577,986) Insurance Fund 904,500 970,100 65,600 4,656,150 4,084,550 (571,600) Measure G Sales Tax Revenue 11,500,000$ Police Services (5,163,000) Capital Improvements (2,758,356) Available for Appropriation 3,578,644$ MEASURE G SALES TAX SUMMARY 289 PUBLIC PARTICIPATION The budget is a puzzle put together to deliver city services to residents and visitors alike. Community input is greatly appreciated and necessary to ensure a vibrant and inclusive budget. It is our goal to use citizen input and feedback to develop the annual budget. The Financial Advisory Commission provides oversight of Measure G funds and had two active sub-committees that reviewed the 2021/22 operating and capital improvement budgets. To encourage citizen participation in public meetings the 2021/22 budget schedule is available online at https://www.laquintaca.gov/our-city/city- departments/finance/budget/proposed-budget-2021-22-timeline and noted below: FUTURE OUTLOOK The Fiscal Year 2021/22 Proposed Budget continues to focus on the City’s goals while meeting the budgetary challenges and demands for the upcoming year. While it is important to continue to be fiscally conservative to ensure long-term fiscal health, the City recognizes the importance of rebuilding our community and addressing the immediate and long-term needs of our citizens. 5/4/2021 City Council Meeting - Budget Study Session #1 - (General Fund and Internal Service Funds focus) 5/5/2021 Housing Commission Meeting - Budget Study Session 5/12/2021 Financial Advisory Commission Meeting - Proposed General Fund and Capital Improvement Program Budgets 5/18/2021 City Council Meeting - Budget Study Session #2 - (General Fund, Enterprise, and Special Revenue Funds) 6/1/2021 City Council Meeting - Budget Study Session #3 - (All Appropriations) 6/1/2021 Housing Authority Board Meeting - Budget Study Session #1 (Housing Funds Only) 6/2/2021 Financial Advisory Commission Meeting - Final review of proposed Measure G sales tax uses 6/9/2021 Housing Commission Meeting - Final Review of proposed Housing Authority Budget 6/15/2021 City Council Meeting - Adopt Operating and CIP budget 6/15/2021 Housing Authority - Adopt Budget PUBLIC MEETING DATES FISCAL YEAR 2021/22 BUDGET 290 2021 22CITY OF LA QUINTA EXHIBIT A 291 The annual budget process coordinates the allocation of city revenues for essential services such as police and fire, community programs and events, and capital improvement projects. The City of La Quinta invites you to participate and/or track public meetings regarding the fiscal year 2021/22 budget. Proposed public meeting dates are summarized below and as meetings occur budget information presented will be available online on a dedicated City webpage within the Finance Department. https://www.laquintaca.gov/our-city/city-departments/finance/budget/proposed- budget-2021-22-timeline Questions regarding the fiscal year 2021/22 budget may be directed to finance@laquintaca.gov or by calling 760-777-7055. 5/4/2021 City Council Meeting - Budget Study Session #1 - (General Fund and Internal Service Funds focus) 5/5/2021 Housing Commission Meeting - Budget Study Session 5/12/2021 Financial Advisory Commission Meeting - Proposed General Fund and Capital Improvement Program Budgets 5/18/2021 City Council Meeting - Budget Study Session #2 - (General Fund, Enterprise, and Special Revenue Funds) 6/1/2021 City Council Meeting - Budget Study Session #3 - (All Appropriations) 6/1/2021 Housing Authority Board Meeting - Budget Study Session #1 (Housing Funds Only) 6/2/2021 Financial Advisory Commission Meeting - Final review of proposed Measure G sales tax uses 6/9/2021 Housing Commission Meeting - Final Review of proposed Housing Authority Budget 6/15/2021 City Council Meeting - Adopt Operating and CIP budget 6/15/2021 Housing Authority - Adopt Budget PUBLIC MEETING DATES FISCAL YEAR 2021/22 BUDGET CITY OF LA QUINTA FY 2021/22 PROPOSED BUDGET 1 292 ESTIMATED CURRENT RESOURCES: REVENUES: TAXES 45,957,000$ LICENSES & PERMITS 2,252,000 INTERGOVERNMENTAL 8,546,100 CHARGES FOR SERVICES 876,010 FINES & ASSESSMENTS 294,000 OTHER/MISCELLANEOUS 1,174,100 TOTAL ESTIMATED CURRENT RESOURCES 59,099,210$ ESTIMATED CURRENT REQUIREMENTS: EXPENDITURES: CITY COUNCIL 302,200$ CITY MANAGER CITY MANAGER 1,076,000 MARKETING/COMMUNITY RELATIONS 1,325,900 CITY ATTORNEY 696,000 CITY CLERK 625,200 COMMUNITY RESOURCES (CR) HUMAN RESOURCES 376,000 POLICE 18,439,100 FIRE 8,210,900 CR ADMIN 808,500 WELLNESS CENTER 597,900 RECREATION PROGRAMS 823,300 CODE COMPLIANCE 1,473,320 PUBLIC WORKS PARKS MAINTENANCE 2,380,900 PUBLIC BUILDINGS 1,321,200 PUBLIC WORKS ADMINISTRATION 739,900 DEVELOPMENT SERVICES 431,000 STREETS 496,600 ENGINEERING SERVICES 761,800 DESIGN & DEVELOPMENT D&D ADMIN 656,200 PLANNING 678,600 BUILDING 919,800 THE HUB 986,000 FISCAL SERVICES FINANCE 1,443,100 CENTRAL SERVICES (Includes CIP)9,383,206$ TOTAL ESTIMATED CURRENT REQUIREMENTS 54,952,626$ PRELIMINARY BUDGET SURPLUS 4,146,584$ LESS MEASURE G SALES TAX RESERVES (3,578,644) BUDGET SURPLUS/(DEFICIT)567,940$ CITY OF LA QUINTA GENERAL FUND REVENUES AND EXPENDITURES BY DEPARTMENT/DIVISION FISCAL YEAR 2021/22 PROPOSED BUDGET CITY OF LA QUINTA FY 2021/22 PROPOSED BUDGET 2 293 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed 21/22 vs. Current 20/21 % Change in Budget 310 - Tax Revenues 2,517,000 2,579,000 1,490,375 2,605,000 26,000 1 %101-0000-40310 Property Tax Revenue 4,700,000 4,700,000 2,762,887 4,706,000 6,000 0 %101-0000-40311 No-Low City Property Tax 2,400,000 1,600,000 923,122 1,616,000 16,000 1 %101-0000-40315 RPTTF Pass Through 7,628,700 9,428,700 5,723,143 10,000,000 571,300 6 %101-0000-41320 State Sales Tax 8,197,200 10,617,200 6,882,684 11,500,000 882,800 8 %101-0000-41326 Measure G Sales Tax 500,000 850,000 1,009,772 750,000 (100,000)-12 %101-0000-41327 Document Transfer Tax 4,031,300 4,031,300 2,035,007 5,000,000 968,700 24 %101-0000-41400 TOT - Hotels 2,093,800 4,393,800 3,895,567 3,000,000 (1,393,800)-32 %101-0000-41401 TOT - Short Term Vac. Rentals 80,000 80,000 40,266 90,000 10,000 13 %101-0000-41402 TOT - Bed and Breakfast 250,000 250,000 115,594 250,000 0 0 %101-0000-41416 TOT - Resort Fees 770,000 770,000 509,164 785,000 15,000 2 %101-0000-41505 Franchise Taxes - Burrtec 130,000 130,000 0 140,000 10,000 8 %101-0000-41508 Southern California Gas Franchise Fee 600,000 600,000 324,201 650,000 50,000 8 %101-0000-41509 Cable Television Franchise Fee 305,000 305,000 117,138 250,000 (55,000)-18 %101-0000-41510 Communications Franchise Fees 4,393,000 4,543,000 2,203,138 4,615,000 72,000 2 %101-0000-41800 Property Tax in Lieu of VLF 310 - Tax Revenues Totals:38,596,000 44,878,000 28,032,058 45,957,000 1,079,000 2 % 320 - Licenses & Permits 9,000 9,000 5,200 9,000 0 0 %101-0000-41411 STVR Inspection Fee 117,600 167,600 235,090 894,000 726,400 433 %101-0000-41415 STVR Registration Fee 276,000 276,000 261,283 350,000 74,000 27 %101-0000-41600 Business Licenses 400 400 2,000 1,000 600 150 %101-0000-41610 Film Permits 135,000 135,000 265,093 210,000 75,000 56 %101-0000-42400 Building Permits 49,500 49,500 46,840 90,000 40,500 82 %101-0000-42401 Plumbing Permits 67,500 67,500 59,883 100,000 32,500 48 %101-0000-42402 Mechanical Permits 45,000 45,000 41,323 80,000 35,000 78 %101-0000-42403 Electrical Permits 135,000 135,000 149,467 180,000 45,000 33 %101-0000-42404 Miscellaneous Permits 8,800 8,800 2,160 5,000 (3,800)-43 %101-0000-42405 Garage Sale Permits 200 200 250 0 (200)-100 %101-0000-42406 Golf Cart Permits 9,900 9,900 9,244 10,000 100 1 %101-0000-42408 Grading Permits 2,800 2,800 0 1,000 (1,800)-64 %101-0000-42410 Driveway Permits 45,000 45,000 40,982 60,000 15,000 33 %101-0000-42420 Fire Plan Review Fee 27,000 27,000 37,362 40,000 13,000 48 %101-0000-42421 Fire Inspection Fee 1,800 1,800 2,196 2,000 200 11 %101-0000-42430 Transportation Permits 10,400 10,400 2,415 10,000 (400)-4 %101-0000-42431 Conditional Use Permits 2,500 2,500 4,400 5,000 2,500 100 %101-0000-42433 Minor Use Permit 12,900 12,900 8,520 15,000 2,100 16 %101-0000-42434 Sign Permit 38,900 38,900 25,960 40,000 1,100 3 %101-0000-42435 Site Development Permit 10,900 10,900 3,542 12,000 1,100 10 %101-0000-42436 Final Landscaping Plans 0 0 6,154 0 0 0 %101-0000-42437 Development Agreement 5,700 5,700 800 10,000 4,300 75 %101-0000-42439 Temporary Use Permit 120,000 120,000 102,617 120,000 0 0 %101-0000-43632 Public Works Permits 5,000 5,000 7,232 8,000 3,000 60 %101-0000-43638 NPDES Inspections 320 - Licenses & Permits Totals:1,136,800 1,186,800 1,320,014 2,252,000 1,065,200 90 % 330 - Intergovernmental 0 98,900 0 0 (98,900)-100 %101-0000-41700 Federal Government Revenue 2,517,000 2,579,000 1,490,375 2,605,000 26,000 4,700,000 4,700,000 2,762,887 4,706,000 6,000 2,400,000 1,600,000 923,122 1,616,000 16,000 7,628,700 9,428,700 5,723,143 10,000,000 571,300 8,197,200 10,617,200 6,882,684 11,500,000 882,800 500,000 850,000 1,009,772 750,000 (100,000) 4,031,300 4,031,300 2,035,007 5,000,000 968,700 2,093,800 4,393,800 3,895,567 3,000,000 (1,393,800) 80,000 80,000 40,266 90,000 10,000 250,000 250,000 115,594 250,000 0 770,000 770,000 509,164 785,000 15,000 130,000 130,000 0 140,000 10,000 600,000 600,000 324,201 650,000 50,000 305,000 305,000 117,138 250,000 (55,000) 4,393,000 4,543,000 2,203,138 4,615,000 72,000 38,596,000 44,878,000 28,032,058 45,957,000 1,079,000 9,000 9,000 5,200 9,000 0 117,600 167,600 235,090 894,000 726,400 276,000 276,000 261,283 350,000 74,000 400 400 2,000 1,000 600 135,000 135,000 265,093 210,000 75,000 49,500 49,500 46,840 90,000 40,500 67,500 67,500 59,883 100,000 32,500 45,000 45,000 41,323 80,000 35,000 135,000 135,000 149,467 180,000 45,000 8,800 8,800 2,160 5,000 (3,800) 200 200 250 0 (200) 9,900 9,900 9,244 10,000 100 2,800 2,800 0 1,000 (1,800) 45,000 45,000 40,982 60,000 15,000 27,000 27,000 37,362 40,000 13,000 1,800 1,800 2,196 2,000 200 10,400 10,400 2,415 10,000 (400) 2,500 2,500 4,400 5,000 2,500 12,900 12,900 8,520 15,000 2,100 38,900 38,900 25,960 40,000 1,100 10,900 10,900 3,542 12,000 1,100 0 0 6,154 0 0 5,700 5,700 800 10,000 4,300 120,000 120,000 102,617 120,000 0 5,000 5,000 7,232 8,000 3,000 1,136,800 1,186,800 1,320,014 2,252,000 1,065,200 0 98,900 0 0 (98,900) CITY OF LA QUINTA GENERAL FUND REVENUE DETAILS FY 2021/22 PROPOSED BUDGET 3 294 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed 21/22 vs. Current 20/21 % Change in Budget 0 502,034 502,034 0 (502,034)-100 %101-0000-41710 State Gov't Revenue 7,270,200 7,270,200 1,985,267 7,342,900 72,700 1 %101-0000-42500 Fire Service Credit 751,500 1,101,500 70,110 800,200 (301,300)-27 %101-0000-42501 Fire Service Reserves 455,000 368,000 367,882 400,000 32,000 9 %101-0000-43633 CSA 152 Assessments 3,000 3,000 1,500 3,000 0 0 %101-0000-43650 Contributions from Other Agencies 330 - Intergovernmental Totals:8,479,700 9,343,634 2,926,793 8,546,100 (797,534) -9 % 340 - Charges for Services 27,000 1,000 231 16,200 15,200 1,520 %101-0000-42200 Leisure Enrichment 3,600 600 84 0 (600)-100 %101-0000-42202 Gift Shop 27,000 0 0 16,200 16,200 0 %101-0000-42210 Youth Sports 3,600 0 0 2,160 2,160 0 %101-0000-42211 Adult Sports 21,000 1,000 (50)12,600 11,600 1,160 %101-0000-42212 Facility Rentals 12,000 0 0 7,200 7,200 0 %101-0000-42213 Special Events 33,000 3,000 4,635 19,800 16,800 560 %101-0000-42214 Wellness Center Leisure Enrichment 900 0 0 550 550 0 %101-0000-42216 Wellness Center Special Events 90,000 2,000 2,450 54,000 52,000 2,600 %101-0000-42218 Wellness Center Memberships 0 0 1,965 0 0 0 %101-0000-42300 Cash Over/Short 200 200 70 200 0 0 %101-0000-42303 NSF Charges 2,300 2,300 36,400 3,000 700 30 %101-0000-42412 Minor Adjustment, Plan Checks 13,500 13,500 38,613 25,000 11,500 85 %101-0000-42415 Tentative Tract Map 13,500 13,500 19,864 20,000 6,500 48 %101-0000-42416 Digitization/Records Management 1,200 1,200 3,200 2,000 800 67 %101-0000-42417 Modification by Applicant 1,300 1,300 7,750 6,000 4,700 362 %101-0000-42440 Appeals - Permits, Licenses, Projects, Bids 7,600 7,600 1,052 10,000 2,400 32 %101-0000-42443 Zone Change 4,000 4,000 10,787 5,000 1,000 25 %101-0000-42445 Environmental Assessment 4,500 4,500 0 10,000 5,500 122 %101-0000-42446 General Plan Amendment 4,500 4,500 6,900 8,000 3,500 78 %101-0000-42447 Home Occupations 9,000 9,000 3,005 15,000 6,000 67 %101-0000-42448 Tenative Parcel Map 0 0 14,329 10,000 10,000 0 %101-0000-42451 Specific Plan 0 0 9,016 5,000 5,000 0 %101-0000-42460 Pre-Application Review 405,000 405,000 348,812 475,000 70,000 17 %101-0000-42600 Building Plan Check Fees 300 300 232 600 300 100 %101-0000-42610 SMIP Fees 300 300 192 500 200 67 %101-0000-42615 CBSC Administrative Fees 99,000 99,000 168,267 150,000 51,000 52 %101-0000-42810 Public Works Dev. Plan Check Fee 1,200 1,200 728 2,000 800 67 %101-0000-43631 CVMSHCP Admin Fee 340 - Charges for Services Totals:785,500 575,000 678,532 876,010 301,010 52 % 350 - Fines, Forfeitures & Abatements 40,000 40,000 354,525 60,000 20,000 50 %101-0000-42700 Administrative Citations 3,000 3,000 9,000 5,000 2,000 67 %101-0000-42701 Lot Abatement 20,000 20,000 20,298 30,000 10,000 50 %101-0000-42702 Vehicle Abatement 70,000 70,000 49,104 50,000 (20,000)-29 %101-0000-42703 Vehicle Impound Fee 105,000 105,000 18,196 110,000 5,000 5 %101-0000-42705 Motor Vehicle Code Fines 20,000 20,000 31,419 20,000 0 0 %101-0000-42706 Parking Violations 1,000 1,000 46,791 1,000 0 0 %101-0000-42707 Misc Fines 5,000 5,000 0 5,000 0 0 %101-0000-42708 Graffiti Removal 0 502,034 502,034 0 (502,034) 7,270,200 7,270,200 1,985,267 7,342,900 72,700 751,500 1,101,500 70,110 800,200 (301,300) 455,000 368,000 367,882 400,000 32,000 3,000 3,000 1,500 3,000 0 8,479,700 9,343,634 2,926,793 8,546,100 (797,534) 27,000 1,000 231 16,200 15,200 3,600 600 84 0 (600) 27,000 0 0 16,200 16,200 3,600 0 0 2,160 2,160 21,000 1,000 (50)12,600 11,600 12,000 0 0 7,200 7,200 33,000 3,000 4,635 19,800 16,800 900 0 0 550 550 90,000 2,000 2,450 54,000 52,000 0 0 1,965 0 0 200 200 70 200 0 2,300 2,300 36,400 3,000 700 13,500 13,500 38,613 25,000 11,500 13,500 13,500 19,864 20,000 6,500 1,200 1,200 3,200 2,000 800 1,300 1,300 7,750 6,000 4,700 7,600 7,600 1,052 10,000 2,400 4,000 4,000 10,787 5,000 1,000 4,500 4,500 0 10,000 5,500 4,500 4,500 6,900 8,000 3,500 9,000 9,000 3,005 15,000 6,000 0 0 14,329 10,000 10,000 0 0 9,016 5,000 5,000 405,000 405,000 348,812 475,000 70,000 300 300 232 600 300 300 300 192 500 200 99,000 99,000 168,267 150,000 51,000 1,200 1,200 728 2,000 800 785,500 575,000 678,532 876,010 301,010 40,000 40,000 354,525 60,000 20,000 3,000 3,000 9,000 5,000 2,000 20,000 20,000 20,298 30,000 10,000 70,000 70,000 49,104 50,000 (20,000) 105,000 105,000 18,196 110,000 5,000 20,000 20,000 31,419 20,000 0 1,000 1,000 46,791 1,000 0 5,000 5,000 0 5,000 0 CITY OF LA QUINTA GENERAL FUND REVENUE DETAILS FY 2021/22 PROPOSED BUDGET 4 295 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed 21/22 vs. Current 20/21 % Change in Budget 20,000 0 0 10,000 10,000 0 %101-0000-42709 False Alarm Fees - Police 6,000 0 (600)3,000 3,000 0 %101-0000-42710 False Alarm Fees - Fire 350 - Fines, Forfeitures & Abatements Totals:290,000 264,000 528,733 294,000 30,000 11 % 360 - Use of Money & Property 700,000 700,000 151,970 400,000 (300,000)-43 %101-0000-41900 Allocated Interest 145,000 145,000 106,355 145,000 0 0 %101-0000-42120 Lease Revenue - Cell Towers 360 - Use of Money & Property Totals:845,000 845,000 258,325 545,000 (300,000) -36 % 370 - Miscellaneous 400,000 400,000 416,997 400,000 0 0 %101-0000-41410 Zoning Change Mitigation Fees 17,000 17,000 0 20,000 3,000 18 %101-0000-41504 AMR Compliance 111,000 111,000 113,041 114,000 3,000 3 %101-0000-41507 Burrtec Admin Cost Reimbursement 10,000 10,000 1,683 5,000 (5,000)-50 %101-0000-42000 Insurance Recoveries 100 100 15 100 0 0 %101-0000-42140 Sales of Publications & Materials 15,000 15,000 215 40,000 25,000 167 %101-0000-42301 Miscellaneous Revenue 40,000 40,000 90,740 50,000 10,000 25 %101-0000-42305 Miscellaneous Reimbursements 370 - Miscellaneous Totals:593,100 593,100 622,692 629,100 36,000 6 % 50,726,100 57,685,534 34,367,146 59,099,210 1,413,676 2 % 20,000 0 0 10,000 10,000 6,000 0 (600)3,000 3,000 290,000 264,000 528,733 294,000 30,000 700,000 700,000 151,970 400,000 (300,000) 145,000 145,000 106,355 145,000 0 845,000 845,000 258,325 545,000 (300,000) 400,000 400,000 416,997 400,000 0 17,000 17,000 0 20,000 3,000 111,000 111,000 113,041 114,000 3,000 10,000 10,000 1,683 5,000 (5,000) 100 100 15 100 0 15,000 15,000 215 40,000 25,000 40,000 40,000 90,740 50,000 10,000 593,100 593,100 622,692 629,100 36,000 50,726,100 57,685,534 34,367,146 59,099,210 1,413,676 CITY OF LA QUINTA GENERAL FUND REVENUE DETAILS FY 2021/22 PROPOSED BUDGET 5 296 Fund: 101 - GENERAL FUND Property Tax Revenue 2,605,000.00101-0000-40310 Property tax estimates are provided by HdL consulting services. The State approved consumer price index adjustment for FY 2020/21 is 1.036%. Actual value increases due to the transfer of ownership is included. Proposition 8 reductions are considered temporary and have continued to decrease since 2010. Completed new construction is not included and is not represented unless the property was completed and sold in 2020. The City participates in the Teeter program, therefore no delinquencies are assumed. State Sales Tax 10,000,000.00101-0000-41320 Bradley Burns state sales tax is 1% of the current sales tax rate (8.75%). HdL consulting services budget estimates are factored into projections along with reviews of industry and economic reports, local trends, and a continued recovery from the ongoing Covid-19 pandemic. Measure G Sales Tax 11,500,000.00101-0000-41326 Transaction and use sales tax is 1% of the current sales tax rate (8.75%) and is also known as Measure G. The convenience and demand for online sales is anticipated to continue accelerating. TOT - Hotels 5,000,000.00101-0000-41400 11% Transient cccupancy tax for Hotels. Leisure and hospitality make up 28% of the employment sector in the Coachella Valley and will continue to slowly recover in 2021. Social distancing, mask wearing, and large event restrictions are anticipated to remain the norm. Tourism recovery is expected to begin until late 2021 and dependent on vaccine distribution. TOT - Short Term Vac. Rentals 3,000,000.00101-0000-41401 10% Transient occupancy tax for short-term vacation rentals CITY OF LA QUINTA GENERAL FUND REVENUE BUDGET NOTES FY 2021/22 PROPOSED BUDGET 6 297 TOT - Bed and Breakfast 90,000.00101-0000-41402 10% Transient occupancy tax for hotels Zoning Change Mitigation Fees 400,000.00101-0000-41410 Fees are charged based on development agreements, whereby former commercial property was converted to housing developments and mitigation fees cover lost revenue from the change in development. STVR Registration Fee 894,000.00101-0000-41415 Short-term vacation rental registration fees were updated in the Spring of 2021. TOT - Resort Fees 250,000.00101-0000-41416 10% of resort fees charged by hotels. The City provides an annual incentive rebate program for hotels collecting a resort fee. Rebate programs are budgeted in Centralized Services. Due to COVID-19 impacts, FY 2020/21 projections will remain the same until reopening effects are realized. Franchise Taxes - Burrtec 785,000.00101-0000-41505 Burrtec Franchise Fee is based on an agreement with the City whereby an administrative fee is recovered by the City and is adjusted annually on January 1st per a consumer price index. The current agreement expires on 6/30/2026. Burrtec Admin Cost Reimbursem…114,000.00101-0000-41507 Base amount of $101,675 adjusted annually on January 1 by the change in the Consumer Price Index starting in June 2016 and ending on 6/30/2026. Property Tax in Lieu of VLF 4,615,000.00101-0000-41800 CITY OF LA QUINTA GENERAL FUND REVENUE BUDGET NOTES FY 2021/22 PROPOSED BUDGET 7 298 Property tax in lieu of vehicle license fee (VLF) is derived from the 2004 property tax swap whereby cities receive property tax allocation in lieu of VLF's. Allocated Interest 400,000.00101-0000-41900 Interest rates are anticipated to remain low in FY 2021/22, however, General Fund reserves are fully funded and many major construction projects completed; therefore, less volatility in cashflow is anticipated. Leisure Enrichment 16,200.00101-0000-42200 In FY 2020/21, various leisure enrichment activity revenues were reduced as a result of COVID-19 impacts to programming and operations. In FY 2021/22, some activities are anticipated to resume but with limitations. Wellness Center Memberships 54,000.00101-0000-42218 The Wellness Center was closed during FY 2020/21 for health and wellness activities and memberships are anticipated to be extended for the time the facility has been closed. Membership fees are limited to new members. Fire Plan Review Fee 60,000.00101-0000-42420 Fire Plan Reviews are conducted in-house by a Riverside County Fire Inspector. Fire Inspection Fee 40,000.00101-0000-42421 Fire Inspection fees are a flat fee of $161 collected in-house. Appeals - Permits, Licenses, Pro…6,000.00101-0000-42440 Appeals for permits, licenses, and violations are captured in this revenue line item. Fire Service Credit 7,342,900.00101-0000-42500 CITY OF LA QUINTA GENERAL FUND REVENUE BUDGET NOTES FY 2021/22 PROPOSED BUDGET 8 299 Property tax revenue restricted for fire services. Fire Service Reserves 800,200.00101-0000-42501 County fire service property tax revenue is held in trust with the County until services are rendered or reimbursements are requested by the City. At 6/30/2020 the Fire Trust fund balance was $10,491,653. False Alarm Fees - Police 10,000.00101-0000-42709 False alarm fees have been suspended during the pandemic. Staff has focused their efforts on education and sending notifications about false alarms. Overall, there has been a decrease in false alarms when compared to last year, indicating efforts keep generating positive results. Fees are anticipated to resume by 2022. CSA 152 Assessments 400,000.00101-0000-43633 The annual tax assessment is $9.99 per unit. Annual revenue of approximately $300,000, funds are held by the County until reimbursements are submitted by the City. Reimbursements are restricted to retention basin and storm drain maintenance and equipment. Contributions from Other Agenci…3,000.00101-0000-43650 The approved Last and Final Recognized Obligation Payment Schedule (ROPS) includes an annual administrative fee reimbursement for the City to perform the winddown activities associated with the former Redevelopment Agency. CITY OF LA QUINTA GENERAL FUND REVENUE BUDGET NOTES FY 2021/22 PROPOSED BUDGET 9 300 THIS PAGE INTENTIONALLY LEFT BLANK 301 2019/20 Actual Expense 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed Budget 21/22 vs. Current 20/2 % Change in Budget 1001 - City Council 50 - Salaries and Benefits 144,776 144,000 144,000 111,988 144,000 0 0 %101-1001-50108 Salaries - Council Members 2,414 2,400 2,400 1,922 2,400 0 0 %101-1001-50150 Other Compensation 8,885 9,700 9,700 7,496 9,600 (100)-1 %101-1001-50200 PERS-City Portion 56,715 102,600 102,600 41,065 104,600 2,000 2 %101-1001-50221 Medical Insurance 769 0 0 490 0 0 0 %101-1001-50222 Vision Insurance 4,492 0 0 2,898 0 0 0 %101-1001-50223 Dental Insurance 434 0 0 347 0 0 0 %101-1001-50224 Life Insurance 9,200 10,100 10,100 7,575 10,500 400 4 %101-1001-50230 Workers Comp Insurance 2,101 5,600 5,600 1,624 5,600 0 0 %101-1001-50240 Social Security-Medicare 3,452 0 0 2,662 0 0 0 %101-1001-50241 Social Security-FICA 50 - Salaries and Benefits Totals:233,237 274,400 274,400 178,065 276,700 2,300 1 % 62 - Maintenance & Operations 2,348 8,000 8,000 0 10,000 2,000 25 %101-1001-60137 Community Special Events 13,900 10,000 10,000 3,765 15,000 5,000 50 %101-1001-60320 Travel & Training 659 500 500 391 500 0 0 %101-1001-60420 Operating Supplies 62 - Maintenance & Operations Totals:16,907 18,500 18,500 4,157 25,500 7,000 38 % 1001 - City Council Totals:250,144 292,900 292,900 182,222 302,200 9,300 3 % 144,776 144,000 144,000 111,988 144,000 0 2,414 2,400 2,400 1,922 2,400 0 8,885 9,700 9,700 7,496 9,600 (100) 56,715 102,600 102,600 41,065 104,600 2,000 769 0 0 490 0 0 4,492 0 0 2,898 0 0 434 0 0 347 0 0 9,200 10,100 10,100 7,575 10,500 400 2,101 5,600 5,600 1,624 5,600 0 3,452 0 0 2,662 0 0 233,237 274,400 274,400 178,065 276,700 2,300 2,348 8,000 8,000 0 10,000 2,000 13,900 10,000 10,000 3,765 15,000 5,000 659 500 500 391 500 0 16,907 18,500 18,500 4,157 25,500 7,000 250,144 292,900 292,900 182,222 302,200 9,300 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 10 302 Department : 1001 - City Council Community Special Events 10,000.00101-1001-60137 Annual City open house State of the City address Travel & Training 15,000.00101-1001-60320 League of CA Cities- Annual conference and legislative action days Mayor's Cup Council meeting expenses Public safety awards ceremony CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 11 303 2019/20 Actual Expense 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed Budget 21/22 vs. Current 20/2 % Change in Budget 1002 - City Manager 50 - Salaries and Benefits 409,883 339,700 339,700 286,024 375,700 36,000 11 %101-1002-50101 Permanent Full Time 1,002 0 0 257 0 0 0 %101-1002-50105 Salaries - Overtime 1,086 1,200 1,200 692 900 (300)-25 %101-1002-50150 Other Compensation 30,780 29,900 29,900 19,570 32,300 2,400 8 %101-1002-50200 PERS-City Portion 0 0 10,000 16,000 10,000 0 0 %101-1002-50215 Other Fringe Benefits 54,174 61,600 61,600 33,822 62,800 1,200 2 %101-1002-50221 Medical Insurance 732 0 0 423 0 0 0 %101-1002-50222 Vision Insurance 3,631 0 0 2,176 0 0 0 %101-1002-50223 Dental Insurance 175 0 0 117 0 0 0 %101-1002-50224 Life Insurance 1,561 1,700 1,700 997 1,800 100 6 %101-1002-50225 Long Term Disability 8,700 6,900 6,900 5,175 7,100 200 3 %101-1002-50230 Workers Comp Insurance 6,016 5,300 5,300 4,267 5,500 200 4 %101-1002-50240 Social Security-Medicare 248 0 0 0 0 0 0 %101-1002-50241 Social Security-FICA 50 - Salaries and Benefits Totals:517,987 446,300 456,300 369,520 496,100 39,800 9 % 60 - Contract Services 44,442 80,000 130,000 38,535 80,000 (50,000)-38 %101-1002-60101 Contract Services - Administrative 18,660 7,000 7,000 2,344 20,000 13,000 186 %101-1002-60103 Professional Services 60 - Contract Services Totals:63,102 87,000 137,000 40,879 100,000 (37,000) -27 % 62 - Maintenance & Operations 4,775 4,000 4,000 183 6,000 2,000 50 %101-1002-60320 Travel & Training 100,149 102,000 102,000 91,955 105,000 3,000 3 %101-1002-60351 Membership Dues 3,042 2,000 2,000 0 2,000 0 0 %101-1002-60352 Subscriptions & Publications 940 1,000 1,000 348 1,000 0 0 %101-1002-60400 Office Supplies 610 1,000 1,000 31 1,000 0 0 %101-1002-60420 Operating Supplies 62 - Maintenance & Operations Totals:109,516 110,000 110,000 92,518 115,000 5,000 5 % 64 - Other Expenses 0 0 0 0 300,000 300,000 0 %101-1002-60510 Contingency for Operations 64 - Other Expenses Totals:0 0 0 0 300,000 300,000 0 % 69 - Internal Service Charges 60,600 63,700 63,700 47,775 64,900 1,200 2 %101-1002-98110 Information Tech Charges 69 - Internal Service Charges Totals:60,600 63,700 63,700 47,775 64,900 1,200 2 % 1002 - City Manager Totals:751,206 707,000 767,000 550,692 1,076,000 309,000 40 % 409,883 339,700 339,700 286,024 375,700 36,000 1,002 0 0 257 0 0 1,086 1,200 1,200 692 900 (300) 30,780 29,900 29,900 19,570 32,300 2,400 0 0 10,000 16,000 10,000 0 54,174 61,600 61,600 33,822 62,800 1,200 732 0 0 423 0 0 3,631 0 0 2,176 0 0 175 0 0 117 0 0 1,561 1,700 1,700 997 1,800 100 8,700 6,900 6,900 5,175 7,100 200 6,016 5,300 5,300 4,267 5,500 200 248 0 0 0 0 0 517,987 446,300 456,300 369,520 496,100 39,800 44,442 80,000 130,000 38,535 80,000 (50,000) 18,660 7,000 7,000 2,344 20,000 13,000 63,102 87,000 137,000 40,879 100,000 (37,000) 4,775 4,000 4,000 183 6,000 2,000 100,149 102,000 102,000 91,955 105,000 3,000 3,042 2,000 2,000 0 2,000 0 940 1,000 1,000 348 1,000 0 610 1,000 1,000 31 1,000 0 109,516 110,000 110,000 92,518 115,000 5,000 0 0 0 0 300,000 300,000 0 0 0 0 300,000 300,000 60,600 63,700 63,700 47,775 64,900 1,200 60,600 63,700 63,700 47,775 64,900 1,200 751,206 707,000 767,000 550,692 1,076,000 309,000 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 12 304 Department : 1002 - City Manager Permanent Full Time 375,700.00101-1002-50101 80% - City Manager (20% Housing Fund) 60% - Assistant to City Manager (40% Housing Fund) 100% - Management Specialist 40% - Management Specialist (60% Housing Fund) 20% - Management Assistant (80% Housing Fund) In FY 2021/22, the voluntary furlough of the Management Specialist position ended. Contract Services - Administrati…80,000.00101-1002-60101 Legislative lobbying services Economic development services Professional Services 20,000.00101-1002-60103 Title and appraisal services Waste management for special events Travel & Training 6,000.00101-1002-60320 League of California Cities (LCC) Regional meetings & miscellaneous training such as: Coachella Valley Association of Governments (CVAG), California Cities/Counties Mgmt Foundation (CCMF), and Southern CA Association of Governments (SCAG). Membership Dues 105,000.00101-1002-60351 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 13 305 International City/County Mgmt Association (ICMA) League of CA Cities (LCC) - Riverside California Cities/Counties Mgmt Foundation (CCMF) Coachella Valley Association of Governments (CVAG) National League of Cities (NLC) Southern CA Association of Governments (SCAG) Subscriptions & Publications 2,000.00101-1002-60352 Property analysis and grant solutions Contingency for Operations 300,000.00101-1002-60510 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 14 306 2019/20 Actual Expense 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed Budget 21/22 vs. Current 20/2 % Change in Budget 3007 - Marketing & Community Relations 50 - Salaries and Benefits 169,629 149,600 149,600 126,621 180,200 30,600 20 %101-3007-50101 Permanent Full Time 207 0 0 183 0 0 0 %101-3007-50105 Salaries - Overtime 1,500 0 0 0 0 0 0 %101-3007-50111 Internships 80 0 0 0 0 0 0 %101-3007-50150 Other Compensation 11,635 12,800 12,800 9,516 14,000 1,200 9 %101-3007-50200 PERS-City Portion 38,281 41,100 41,100 30,514 41,900 800 2 %101-3007-50221 Medical Insurance 480 0 0 382 0 0 0 %101-3007-50222 Vision Insurance 2,281 0 0 1,816 0 0 0 %101-3007-50223 Dental Insurance 70 0 0 56 0 0 0 %101-3007-50224 Life Insurance 842 1,000 1,000 579 1,000 0 0 %101-3007-50225 Long Term Disability 3,800 4,100 4,100 3,075 4,200 100 2 %101-3007-50230 Workers Comp Insurance 2,484 2,400 2,400 1,839 2,700 300 13 %101-3007-50240 Social Security-Medicare 93 0 0 0 0 0 0 %101-3007-50241 Social Security-FICA 50 - Salaries and Benefits Totals:231,383 211,000 211,000 174,581 244,000 33,000 16 % 60 - Contract Services 0 10,000 10,000 0 10,000 0 0 %101-3007-60134 Promotional Items 0 10,700 10,700 0 10,700 0 0 %101-3007-60137 Community Engagement 228,232 169,000 197,500 199,963 213,400 15,900 8 %101-3007-60151 GPSCVB 60 - Contract Services Totals:228,232 189,700 218,200 199,963 234,100 15,900 7 % 62 - Maintenance & Operations 7,180 8,000 8,000 2,115 8,000 0 0 %101-3007-60320 Travel & Training 4,530 25,000 25,000 1,968 10,000 (15,000)-60 %101-3007-60351 Membership Dues 15,920 17,500 17,500 3,121 15,000 (2,500)-14 %101-3007-60410 Printing 480 1,600 1,600 1,089 1,600 0 0 %101-3007-60420 Operating Supplies 18,459 20,000 20,000 8,000 25,000 5,000 25 %101-3007-60450 Advertising 519,173 600,000 690,000 380,389 750,000 60,000 9 %101-3007-60461 Marketing & Tourism Promotions 62 - Maintenance & Operations Totals:565,741 672,100 762,100 396,681 809,600 47,500 6 % 69 - Internal Service Charges 27,600 37,500 37,500 28,125 38,200 700 2 %101-3007-98110 Information Tech Charges 69 - Internal Service Charges Totals:27,600 37,500 37,500 28,125 38,200 700 2 % 3007 - Marketing & Community Relations Totals:1,052,957 1,110,300 1,228,800 799,350 1,325,900 97,100 8 % 169,629 149,600 149,600 126,621 180,200 30,600 207 0 0 183 0 0 1,500 0 0 0 0 0 80 0 0 0 0 0 11,635 12,800 12,800 9,516 14,000 1,200 38,281 41,100 41,100 30,514 41,900 800 480 0 0 382 0 0 2,281 0 0 1,816 0 0 70 0 0 56 0 0 842 1,000 1,000 579 1,000 0 3,800 4,100 4,100 3,075 4,200 100 2,484 2,400 2,400 1,839 2,700 300 93 0 0 0 0 0 231,383 211,000 211,000 174,581 244,000 33,000 0 10,000 10,000 0 10,000 0 0 10,700 10,700 0 10,700 0 228,232 169,000 197,500 199,963 213,400 15,900 228,232 189,700 218,200 199,963 234,100 15,900 7,180 8,000 8,000 2,115 8,000 0 4,530 25,000 25,000 1,968 10,000 (15,000) 15,920 17,500 17,500 3,121 15,000 (2,500) 480 1,600 1,600 1,089 1,600 0 18,459 20,000 20,000 8,000 25,000 5,000 519,173 600,000 690,000 380,389 750,000 60,000 565,741 672,100 762,100 396,681 809,600 47,500 27,600 37,500 37,500 28,125 38,200 700 27,600 37,500 37,500 28,125 38,200 700 1,052,957 1,110,300 1,228,800 799,350 1,325,900 97,100 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 15 307 Department : 3007 - Marketing & Community Relations Permanent Full Time 180,200.00101-3007-50101 100% - Marketing Manager 100% - Management Specialist In FY 2021/22, the voluntary furlough of the Management Specialist position ended. Promotional Items 10,000.00101-3007-60134 For Community Resources special events Community Engagement 10,700.00101-3007-60137 Community workshop and City events GPSCVB 213,400.00101-3007-60151 Payment of transient occupancy tax (TOT) to the Greater Palm Springs Convention Visitors Bureau (GPSCVB) for a percentage all TOT revenue collected. To jointly encourage, promote, and attract visitors to the Coachella Valley. .0015 of gross rental revenue for non-convention TOT .0035 of gross rental revenue for convention TOT Travel & Training 8,000.00101-3007-60320 Visit CA - travel destination conference CalTravel - travel destination conference Membership Dues 10,000.00101-3007-60351 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 16 308 Coachella Valley Economic Partnership, CA Association of Public Information Officers, Cal Travel, Public Relations Society of America, Mail Chimp, and Ragan Communications Printing 15,000.00101-3007-60410 Citywide business cards, event signs and banners Advertising 25,000.00101-3007-60450 Amount National Date Festival 5,000 Sponsorships - CVEP Summit, Modernism Week, etc.20,000 The City's 40th Anniversary will be held in 2022. Marketing & Tourism Promotions 750,000.00101-3007-60461 Photography, Chamber of Commerce Contract, Video, Commercials, Marketing Contracts, Marketing Efforts, Music Licensing, Palm Springs Life Vision, and State of the City CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 17 309 2019/20 Actual Expense 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed Budget 21/22 vs. Current 20/2 % Change in Budget 1003 - City Attorney 60 - Contract Services 505,700 520,000 520,000 234,699 546,000 26,000 5 %101-1003-60153 Attorney 44,847 45,000 45,000 8,048 150,000 105,000 233 %101-1003-60154 Attorney/Litigation 60 - Contract Services Totals:550,548 565,000 565,000 242,747 696,000 131,000 23 % 1003 - City Attorney Totals:550,548 565,000 565,000 242,747 696,000 131,000 23 % 505,700 520,000 520,000 234,699 546,000 26,000 44,847 45,000 45,000 8,048 150,000 105,000 550,548 565,000 565,000 242,747 696,000 131,000 550,548 565,000 565,000 242,747 696,000 131,000 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 18 310 THIS PAGE INTENTIONALLY LEFT BLANK 311 2019/20 Actual Expense 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed Budget 21/22 vs. Current 20/2 % Change in Budget 1005 - City Clerk 50 - Salaries and Benefits 267,997 259,800 259,800 179,607 281,700 21,900 8 %101-1005-50101 Permanent Full Time 13,384 0 0 0 0 0 0 %101-1005-50102 Salaries - Part Time 358 0 0 464 0 0 0 %101-1005-50105 Salaries - Overtime 403 500 500 550 500 0 0 %101-1005-50150 Other Compensation 24,347 24,700 24,700 17,719 26,800 2,100 9 %101-1005-50200 PERS-City Portion 65,948 80,000 80,000 47,076 81,600 1,600 2 %101-1005-50221 Medical Insurance 900 0 0 651 0 0 0 %101-1005-50222 Vision Insurance 3,259 0 0 2,526 0 0 0 %101-1005-50223 Dental Insurance 133 0 0 88 0 0 0 %101-1005-50224 Life Insurance 1,341 1,500 1,500 820 1,600 100 7 %101-1005-50225 Long Term Disability 7,300 7,900 7,900 5,925 8,200 300 4 %101-1005-50230 Workers Comp Insurance 4,267 3,800 3,800 2,732 4,200 400 11 %101-1005-50240 Social Security-Medicare 802 0 0 39 0 0 0 %101-1005-50241 Social Security-FICA 12,217 0 20,000 8,360 40,000 20,000 100 %101-1005-50251 Temporary 4,000 0 0 0 0 0 0 %101-1005-50300 Employee Recognition 50 - Salaries and Benefits Totals:406,655 378,200 398,200 266,558 444,600 46,400 12 % 60 - Contract Services 25,393 129,000 153,200 9,102 90,000 (63,200)-41 %101-1005-60103 Professional Services (875)0 0 0 0 0 0 %101-1005-60125 Temporary Agency Services 60 - Contract Services Totals:24,518 129,000 153,200 9,102 90,000 (63,200) -41 % 62 - Maintenance & Operations 11,174 5,000 5,000 1,837 7,000 2,000 40 %101-1005-60320 Travel & Training 1,553 1,500 1,500 1,191 1,500 0 0 %101-1005-60351 Membership Dues 2,391 2,500 2,500 471 2,500 0 0 %101-1005-60400 Office Supplies 1,177 1,200 1,200 336 1,200 0 0 %101-1005-60420 Operating Supplies 1,116 3,000 4,500 3,535 4,000 (500)-11 %101-1005-60450 Advertising 62 - Maintenance & Operations Totals:17,410 13,200 14,700 7,370 16,200 1,500 10 % 69 - Internal Service Charges 53,700 73,000 73,000 54,750 74,400 1,400 2 %101-1005-98110 Information Tech Charges 69 - Internal Service Charges Totals:53,700 73,000 73,000 54,750 74,400 1,400 2 % 1005 - City Clerk Totals:502,284 593,400 639,100 337,780 625,200 (13,900) -2 % 267,997 259,800 259,800 179,607 281,700 21,900 13,384 0 0 0 0 0 358 0 0 464 0 0 403 500 500 550 500 0 24,347 24,700 24,700 17,719 26,800 2,100 65,948 80,000 80,000 47,076 81,600 1,600 900 0 0 651 0 0 3,259 0 0 2,526 0 0 133 0 0 88 0 0 1,341 1,500 1,500 820 1,600 100 7,300 7,900 7,900 5,925 8,200 300 4,267 3,800 3,800 2,732 4,200 400 802 0 0 39 0 0 12,217 0 20,000 8,360 40,000 20,000 4,000 0 0 0 0 0 406,655 378,200 398,200 266,558 444,600 46,400 25,393 129,000 153,200 9,102 90,000 (63,200) (875)0 0 0 0 0 24,518 129,000 153,200 9,102 90,000 (63,200) 11,174 5,000 5,000 1,837 7,000 2,000 1,553 1,500 1,500 1,191 1,500 0 2,391 2,500 2,500 471 2,500 0 1,177 1,200 1,200 336 1,200 0 1,116 3,000 4,500 3,535 4,000 (500) 17,410 13,200 14,700 7,370 16,200 1,500 53,700 73,000 73,000 54,750 74,400 1,400 53,700 73,000 73,000 54,750 74,400 1,400 502,284 593,400 639,100 337,780 625,200 (13,900) CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 19 312 Department : 1005 - City Clerk Permanent Full Time 281,700.00101-1005-50101 90% - City Clerk (10% Housing) 100% - Deputy City Clerk 100% - Management Assistant 100% - Administrative Assistant Professional Services 90,000.00101-1005-60103 Municipal Code text and online updates Imaging scanning services For The Record tech support (DSS Corp) DigiCert electronic signatures Ctiywide fee study updates Records legislation, requirements, minute writing services, and retention updates Travel & Training 7,000.00101-1005-60320 CA City Clerks Association annual conference & seminars Municipal Clerks certifications and training Membership Dues 1,500.00101-1005-60351 California City Clerks Association (CCAC)- 4 employees National Notary Association Errors and Omission insurance (E&O)- 3 employees International Institute of Municipal Clerks (IIMC) membership Advertising 4,000.00101-1005-60450 Public hearing notices, Commission and Board vacancies CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 20 313 2019/20 Actual Expense 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed Budget 21/22 vs. Current 20/2 % Change in Budget 1004 - Human Resources 50 - Salaries and Benefits 301,531 89,600 89,600 72,250 96,400 6,800 8 %101-1004-50101 Permanent Full Time 39,419 17,400 27,400 26,918 36,300 8,900 32 %101-1004-50102 Salaries - Part Time 100 0 0 180 0 0 0 %101-1004-50150 Other Compensation 26,582 7,000 7,000 7,468 7,500 500 7 %101-1004-50200 PERS-City Portion 28,677 20,600 20,600 4,727 21,000 400 2 %101-1004-50221 Medical Insurance 659 0 0 229 0 0 0 %101-1004-50222 Vision Insurance 4,009 0 0 1,302 0 0 0 %101-1004-50223 Dental Insurance 86 0 0 28 0 0 0 %101-1004-50224 Life Insurance 1,161 600 600 329 600 0 0 %101-1004-50225 Long Term Disability 5,600 2,100 2,100 1,575 2,100 0 0 %101-1004-50230 Workers Comp Insurance 5,104 1,300 1,300 1,473 1,500 200 15 %101-1004-50240 Social Security-Medicare 495 0 0 0 0 0 0 %101-1004-50241 Social Security-FICA 7,988 0 0 0 0 0 0 %101-1004-50251 Temporary 750 3,500 3,500 0 17,600 14,100 403 %101-1004-50252 Fitness Membership Reimbursement 50 - Salaries and Benefits Totals:422,160 142,100 152,100 116,479 183,000 30,900 20 % 60 - Contract Services 7,323 10,000 40,000 0 70,000 30,000 75 %101-1004-60103 Professional Services 10,578 16,500 16,500 7,037 20,000 3,500 21 %101-1004-60104 Consultants/Employee Services (993)0 0 0 0 0 0 %101-1004-60125 Temporary Agency Services 60 - Contract Services Totals:16,908 26,500 56,500 7,037 90,000 33,500 59 % 62 - Maintenance & Operations 5,177 10,000 10,000 2,451 10,000 0 0 %101-1004-60129 Recruiting/Pre-Employment 3,432 2,000 2,000 0 4,000 2,000 100 %101-1004-60320 Travel & Training 13,514 52,000 52,000 6,098 52,000 0 0 %101-1004-60322 Training & Education/MOU 10,386 5,000 5,000 6,410 9,000 4,000 80 %101-1004-60340 Employee Recognition Events 5,995 6,000 6,000 6,785 6,500 500 8 %101-1004-60351 Membership Dues 239 300 300 239 900 600 200 %101-1004-60352 Subscriptions & Publications 1,179 500 500 112 500 0 0 %101-1004-60400 Office Supplies 0 200 200 0 0 (200)-100 %101-1004-60410 Printing 788 1,000 1,000 0 1,000 0 0 %101-1004-60420 Operating Supplies 62 - Maintenance & Operations Totals:40,710 77,000 77,000 22,095 83,900 6,900 9 % 69 - Internal Service Charges 41,300 18,800 18,800 14,100 19,100 300 2 %101-1004-98110 Information Tech Charges 69 - Internal Service Charges Totals:41,300 18,800 18,800 14,100 19,100 300 2 % 1004 - Human Resources Totals:521,077 264,400 304,400 159,710 376,000 71,600 24 % 301,531 89,600 89,600 72,250 96,400 6,800 39,419 17,400 27,400 26,918 36,300 8,900 100 0 0 180 0 0 26,582 7,000 7,000 7,468 7,500 500 28,677 20,600 20,600 4,727 21,000 400 659 0 0 229 0 0 4,009 0 0 1,302 0 0 86 0 0 28 0 0 1,161 600 600 329 600 0 5,600 2,100 2,100 1,575 2,100 0 5,104 1,300 1,300 1,473 1,500 200 495 0 0 0 0 0 7,988 0 0 0 0 0 750 3,500 3,500 0 17,600 14,100 422,160 142,100 152,100 116,479 183,000 30,900 7,323 10,000 40,000 0 70,000 30,000 10,578 16,500 16,500 7,037 20,000 3,500 (993)0 0 0 0 0 16,908 26,500 56,500 7,037 90,000 33,500 5,177 10,000 10,000 2,451 10,000 0 3,432 2,000 2,000 0 4,000 2,000 13,514 52,000 52,000 6,098 52,000 0 10,386 5,000 5,000 6,410 9,000 4,000 5,995 6,000 6,000 6,785 6,500 500 239 300 300 239 900 600 1,179 500 500 112 500 0 0 200 200 0 0 (200) 788 1,000 1,000 0 1,000 0 40,710 77,000 77,000 22,095 83,900 6,900 41,300 18,800 18,800 14,100 19,100 300 41,300 18,800 18,800 14,100 19,100 300 521,077 264,400 304,400 159,710 376,000 71,600 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 21 314 Department : 1004 - Human Resources Permanent Full Time 96,400.00101-1004-50101 100% - Human Resources Analyst Salaries - Part Time 36,300.00101-1004-50102 100% - Administrative Technician Part Time Professional Services 70,000.00101-1004-60103 Citywide employee development programs Class and compensation study Consultants/Employee Services 20,000.00101-1004-60104 Employee Assistance Program (EAP)- Wellness Works Administration fee for American Fidelity CalPERS- Monthly medical premium and administration fees TAG/AMS DOT random screenings DMV medical exams (Class B) Recruiting/Pre-Employment 10,000.00101-1004-60129 Interview panel costs Fingerprinting Physicals and drug screenings Background checks Travel & Training 4,000.00101-1004-60320 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 22 315 Bilingual testing Liebert Cassidy Whitmore (LCW)- law & labor relations Educational forums and miscellaneous training Membership Dues 6,500.00101-1004-60351 Society of HR Management (SHRM) Professionals in HR Association (PIHRA) International Public Management Association for HR (IPMA-HR), World at Work (WOW) CV Employment Relations Consortium (LCW) CA Public Employers Labor Relations Assoc. (CalPELRA) Subscriptions & Publications 900.00101-1004-60352 Labor law compliance posters CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 23 316 2019/20 Actual Expense 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed Budget 21/22 vs. Current 20/2 % Change in Budget 2001 - Police 60 - Contract Services 14,940 30,000 60,000 22,244 40,000 (20,000)-33 %101-2001-60103 Professional Services 8,687 10,000 10,000 4,236 10,000 0 0 %101-2001-60109 LQ Police Volunteers 9,244,258 9,822,600 9,627,600 5,639,262 10,326,000 698,400 7 %101-2001-60161 Sheriff Patrol 335,834 349,200 342,200 175,137 367,000 24,800 7 %101-2001-60162 Police Overtime 2,676,065 2,050,700 2,010,700 1,009,680 2,155,800 145,100 7 %101-2001-60163 Target Team 766,815 872,600 855,100 459,237 917,400 62,300 7 %101-2001-60164 Community Services Officer 63,449 106,000 104,000 23,457 111,500 7,500 7 %101-2001-60165 Special Enforcement/City Special Events 179,365 202,800 198,800 113,701 213,200 14,400 7 %101-2001-60166 Gang Task Force 149,015 202,800 198,800 113,701 213,300 14,500 7 %101-2001-60167 Narcotics Task Force 117,847 194,800 103,800 0 204,700 100,900 97 %101-2001-60168 School Officer 667,407 1,505,000 1,475,000 972,159 1,582,000 107,000 7 %101-2001-60169 Motor Officer 518,745 568,800 556,800 314,739 597,900 41,100 7 %101-2001-60170 Dedicated Sargeants 290,930 318,000 311,500 178,746 334,200 22,700 7 %101-2001-60171 Dedicated Lieutenant 479,370 490,000 480,000 287,665 515,000 35,000 7 %101-2001-60172 Sheriff - Mileage 0 18,000 18,000 0 18,000 0 0 %101-2001-60173 Booking Fees 28,170 30,000 30,000 20,013 30,000 0 0 %101-2001-60174 Blood/Alcohol Testing 70,608 95,000 95,000 21,044 95,000 0 0 %101-2001-60175 Special Enforcement Funds 509,317 540,000 557,000 47,531 557,000 0 0 %101-2001-60176 Sheriff - Other 9,193 8,000 8,000 2,922 8,000 0 0 %101-2001-60193 Sexual Assault Exam Fees 60 - Contract Services Totals:16,130,014 17,414,300 17,042,300 9,405,474 18,296,000 1,253,700 7 % 62 - Maintenance & Operations 7,917 5,000 5,000 5,640 5,000 0 0 %101-2001-60320 Travel & Training 10,987 13,000 33,000 6,828 13,000 (20,000)-61 %101-2001-60420 Operating Supplies 62 - Maintenance & Operations Totals:18,904 18,000 38,000 12,468 18,000 (20,000) -53 % 66 - Utilities 12,733 14,000 14,000 10,575 14,000 0 0 %101-2001-61300 Telephone - Utilities 66 - Utilities Totals:12,733 14,000 14,000 10,575 14,000 0 0 % 68 - Capital Expenses 65,072 6,000 56,000 0 50,000 (6,000)-11 %101-2001-71031 Vehicles 68 - Capital Expenses Totals:65,072 6,000 56,000 0 50,000 (6,000)-11 % 69 - Internal Service Charges 7,400 10,000 10,000 7,500 10,000 0 0 %101-2001-98110 Information Tech Charges 44,200 44,400 44,400 33,300 51,100 6,700 15 %101-2001-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:51,600 54,400 54,400 40,800 61,100 6,700 12 % 2001 - Police Totals:16,278,322 17,506,700 17,204,700 9,469,317 18,439,100 1,234,400 7 % 14,940 30,000 60,000 22,244 40,000 (20,000) 8,687 10,000 10,000 4,236 10,000 0 9,244,258 9,822,600 9,627,600 5,639,262 10,326,000 698,400 335,834 349,200 342,200 175,137 367,000 24,800 2,676,065 2,050,700 2,010,700 1,009,680 2,155,800 145,100 766,815 872,600 855,100 459,237 917,400 62,300 63,449 106,000 104,000 23,457 111,500 7,500 179,365 202,800 198,800 113,701 213,200 14,400 149,015 202,800 198,800 113,701 213,300 14,500 117,847 194,800 103,800 0 204,700 100,900 667,407 1,505,000 1,475,000 972,159 1,582,000 107,000 518,745 568,800 556,800 314,739 597,900 41,100 290,930 318,000 311,500 178,746 334,200 22,700 479,370 490,000 480,000 287,665 515,000 35,000 0 18,000 18,000 0 18,000 0 28,170 30,000 30,000 20,013 30,000 0 70,608 95,000 95,000 21,044 95,000 0 509,317 540,000 557,000 47,531 557,000 0 9,193 8,000 8,000 2,922 8,000 0 16,130,014 17,414,300 17,042,300 9,405,474 18,296,000 1,253,700 7,917 5,000 5,000 5,640 5,000 0 10,987 13,000 33,000 6,828 13,000 (20,000) 18,904 18,000 38,000 12,468 18,000 (20,000) 12,733 14,000 14,000 10,575 14,000 0 12,733 14,000 14,000 10,575 14,000 0 65,072 6,000 56,000 0 50,000 (6,000) 65,072 6,000 56,000 0 50,000 (6,000) 7,400 10,000 10,000 7,500 10,000 0 44,200 44,400 44,400 33,300 51,100 6,700 51,600 54,400 54,400 40,800 61,100 6,700 16,278,322 17,506,700 17,204,700 9,469,317 18,439,100 1,234,400 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 24 317 Department : 2001 - Police Professional Services 40,000.00101-2001-60103 Annual Police Matrix Study Sheriff Patrol 10,326,000.00101-2001-60161 Increases for Police services in FY 2021/22 are attributed to rising labor and pension costs. Daily patrol hours (130) or service levels are incorporated. The contract funds the following positions: 1 Lieutenant, 2 Sergeants, 2 Motor Traffic Officers, 3 Traffic Officers, 5 Special Enforcement Team Officers, 2 Deputy Sheriff Officers, and 6 Community Service Officers. Travel & Training 5,000.00101-2001-60320 Crime prevention officers will provide training to the Citizens on Patrol. Vehicles 50,000.00101-2001-71031 Citizens on Patrol vehicle replacement needed for a Durango. CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 25 318 2019/20 Actual Expense 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed Budget 21/22 vs. Current 20/2 % Change in Budget 2002 - Fire 50 - Salaries and Benefits 133,268 189,500 189,500 150,910 204,500 15,000 8 %101-2002-50101 Permanent Full Time 919 4,000 4,000 0 4,000 0 0 %101-2002-50105 Salaries - Overtime 63 100 100 77 100 0 0 %101-2002-50150 Other Compensation 9,326 15,000 15,000 11,588 16,100 1,100 7 %101-2002-50200 PERS-City Portion 36,553 52,300 52,300 38,283 53,400 1,100 2 %101-2002-50221 Medical Insurance 485 0 0 508 0 0 0 %101-2002-50222 Vision Insurance 2,297 0 0 2,217 0 0 0 %101-2002-50223 Dental Insurance 71 0 0 77 0 0 0 %101-2002-50224 Life Insurance 690 2,000 2,000 668 2,000 0 0 %101-2002-50225 Long Term Disability 3,700 5,200 5,200 3,900 5,400 200 4 %101-2002-50230 Workers Comp Insurance 1,946 2,800 2,800 2,188 3,100 300 11 %101-2002-50240 Social Security-Medicare 50 - Salaries and Benefits Totals:189,319 270,900 270,900 210,417 288,600 17,700 7 % 60 - Contract Services 33,554 26,000 26,000 11,400 15,000 (11,000)-42 %101-2002-60103 Professional Services 3,023 3,500 3,500 0 3,000 (500)-14 %101-2002-60110 Volunteers - Fire 16,071 15,000 15,000 11,182 15,800 800 5 %101-2002-60112 Landscape Contract 2,269 2,600 2,600 2,889 2,500 (100)-4 %101-2002-60116 Pest Control 0 2,500 2,500 0 1,500 (1,000)-40 %101-2002-60123 Security & Alarm 6,065,984 6,828,900 6,828,900 1,391,082 7,170,300 341,400 5 %101-2002-60139 Fire Service Costs 225,345 250,000 250,000 48,590 250,000 0 0 %101-2002-60140 MOU - Ladder Truck 98 80,000 80,000 9,525 80,000 0 0 %101-2002-60525 Golf Tournament 60 - Contract Services Totals:6,346,342 7,208,500 7,208,500 1,474,668 7,538,100 329,600 5 % 62 - Maintenance & Operations 2,798 3,000 3,000 0 3,000 0 0 %101-2002-60320 Travel & Training 82 500 500 0 100 (400)-80 %101-2002-60351 Membership Dues 768 1,200 1,200 55 1,000 (200)-17 %101-2002-60400 Office Supplies 1,336 7,200 7,200 1,219 6,000 (1,200)-17 %101-2002-60406 Disaster Prep Supplies 283 500 500 187 500 0 0 %101-2002-60410 Printing 19,221 29,200 29,200 6,522 20,000 (9,200)-32 %101-2002-60445 Non-Reimbursable Misc 1,165 2,500 2,500 1,003 2,500 0 0 %101-2002-60545 Small Tools & Equipment 20,705 50,000 50,000 3,303 50,000 0 0 %101-2002-60670 Fire Station 1,726 10,000 10,000 1,750 5,000 (5,000)-50 %101-2002-60671 Repair & Maintenance - EOC 50,709 100,000 100,000 17,399 60,000 (40,000)-40 %101-2002-60691 Maintenance/Services 62 - Maintenance & Operations Totals:98,793 204,100 204,100 31,438 148,100 (56,000) -27 % 66 - Utilities 1,444 2,000 2,000 988 1,500 (500)-25 %101-2002-61100 Gas - Utilities 24,882 35,000 35,000 21,275 26,000 (9,000)-26 %101-2002-61101 Electricity - Utilities 10,657 16,000 16,000 9,122 15,000 (1,000)-6 %101-2002-61200 Water - Utilities 15,945 16,000 16,000 13,692 16,000 0 0 %101-2002-61300 Telephone - Utilities 3,945 7,000 7,000 3,375 7,000 0 0 %101-2002-61304 Mobile/Cell Phones/Satellites 5,986 7,000 7,000 5,132 6,000 (1,000)-14 %101-2002-61400 Cable - Utilities 66 - Utilities Totals:62,858 83,000 83,000 53,585 71,500 (11,500) -14 % 133,268 189,500 189,500 150,910 204,500 15,000 919 4,000 4,000 0 4,000 0 63 100 100 77 100 0 9,326 15,000 15,000 11,588 16,100 1,100 36,553 52,300 52,300 38,283 53,400 1,100 485 0 0 508 0 0 2,297 0 0 2,217 0 0 71 0 0 77 0 0 690 2,000 2,000 668 2,000 0 3,700 5,200 5,200 3,900 5,400 200 1,946 2,800 2,800 2,188 3,100 300 189,319 270,900 270,900 210,417 288,600 17,700 33,554 26,000 26,000 11,400 15,000 (11,000) 3,023 3,500 3,500 0 3,000 (500) 16,071 15,000 15,000 11,182 15,800 800 2,269 2,600 2,600 2,889 2,500 (100) 0 2,500 2,500 0 1,500 (1,000) 6,065,984 6,828,900 6,828,900 1,391,082 7,170,300 341,400 225,345 250,000 250,000 48,590 250,000 0 98 80,000 80,000 9,525 80,000 0 6,346,342 7,208,500 7,208,500 1,474,668 7,538,100 329,600 2,798 3,000 3,000 0 3,000 0 82 500 500 0 100 (400) 768 1,200 1,200 55 1,000 (200) 1,336 7,200 7,200 1,219 6,000 (1,200) 283 500 500 187 500 0 19,221 29,200 29,200 6,522 20,000 (9,200) 1,165 2,500 2,500 1,003 2,500 0 20,705 50,000 50,000 3,303 50,000 0 1,726 10,000 10,000 1,750 5,000 (5,000) 50,709 100,000 100,000 17,399 60,000 (40,000) 98,793 204,100 204,100 31,438 148,100 (56,000) 1,444 2,000 2,000 988 1,500 (500) 24,882 35,000 35,000 21,275 26,000 (9,000) 10,657 16,000 16,000 9,122 15,000 (1,000) 15,945 16,000 16,000 13,692 16,000 0 3,945 7,000 7,000 3,375 7,000 0 5,986 7,000 7,000 5,132 6,000 (1,000) 62,858 83,000 83,000 53,585 71,500 (11,500) CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 26 319 2019/20 Actual Expense 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed Budget 21/22 vs. Current 20/2 % Change in Budget 68 - Capital Expenses 0 35,000 35,000 0 5,000 (30,000)-86 %101-2002-71021 Furniture 0 30,000 60,000 0 0 (60,000)-100 %101-2002-71031 Vehicles 0 10,000 45,000 0 10,000 (35,000)-78 %101-2002-72110 Building Improvements 16,010 70,000 474,000 5,242 30,000 (444,000)-94 %101-2002-80101 Machinery & Equipment 68 - Capital Expenses Totals:16,010 145,000 614,000 5,242 45,000 (569,000) -93 % 69 - Internal Service Charges 4,000 5,000 5,000 3,750 5,800 800 16 %101-2002-91843 Property & Crime Insurance 12,000 13,000 13,000 9,750 14,000 1,000 8 %101-2002-91844 Earthquake Insurance 22,000 47,800 47,800 35,850 48,700 900 2 %101-2002-98110 Information Tech Charges 44,200 44,400 44,400 33,300 51,100 6,700 15 %101-2002-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:82,200 110,200 110,200 82,650 119,600 9,400 9 % 99 - Transfers Out 8,782 0 674,722 20,352 0 (674,722)-100 %101-2002-99900 Transfers Out 99 - Transfers Out Totals:8,782 0 674,722 20,352 0 (674,722) -100 % 2002 - Fire Totals:6,804,305 8,021,700 9,165,422 1,878,352 8,210,900 (954,522) -10 % 0 35,000 35,000 0 5,000 (30,000) 0 30,000 60,000 0 0 (60,000) 0 10,000 45,000 0 10,000 (35,000) 16,010 70,000 474,000 5,242 30,000 (444,000) 16,010 145,000 614,000 5,242 45,000 (569,000) 4,000 5,000 5,000 3,750 5,800 800 12,000 13,000 13,000 9,750 14,000 1,000 22,000 47,800 47,800 35,850 48,700 900 44,200 44,400 44,400 33,300 51,100 6,700 82,200 110,200 110,200 82,650 119,600 9,400 8,782 0 674,722 20,352 0 (674,722) 8,782 0 674,722 20,352 0 (674,722) 6,804,305 8,021,700 9,165,422 1,878,352 8,210,900 (954,522) CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 27 320 Department : 2002 - Fire Permanent Full Time 204,500.00101-2002-50101 100% - Senior Emergency Management Coordinator 100% - Administrative Assistant 15% - Community Resources Director (70% Community Resources Admin, 15% Library & Museum Fund) 20% - Public Safety Manager (80% Community Resources Admin) 20% - Administrative Technician (80% Code Compliance) Professional Services 15,000.00101-2002-60103 Public safety announcements and Nixle contract Landscape Contract 15,800.00101-2002-60112 Landscaping maintenance services for all three fire stations Fire Service Costs 7,170,300.00101-2002-60139 Fire Services are contracted with Riverside County and include the following: Captain, Medic Engineers, Engineers, Fire Fighter II - Medics, Fire Fighter II, Fire Safety Specialist, Overhead/Administration & Direct Operating Expenses, Medic Unit Operating Costs and Fire Engine Replacement Charges Travel & Training 3,000.00101-2002-60320 Emergency preparedness citywide training National Emergency Management Academy Membership Dues 100.00101-2002-60351 Journal of Emergency Management (JEM) subscription International Association of Emergency Managers (IAEM) Printing 500.00101-2002-60410 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 28 321 Update Emergency Operations Center forms Maintenance/Services 60,000.00101-2002-60691 Painting plus regular annual maintenance for each station Furniture 5,000.00101-2002-71021 Emergency Operations Center tables, chairs, and desks Machinery & Equipment 30,000.00101-2002-80101 Emergency Operations Center equipment and fire station generator upgrades CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 29 322 2019/20 Actual Expense 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed Budget 21/22 vs. Current 20/2 % Change in Budget 3001 - Community Resources Administration 50 - Salaries and Benefits 483,339 367,000 367,000 295,456 393,500 26,500 7 %101-3001-50101 Permanent Full Time 616 0 0 0 0 0 0 %101-3001-50105 Salaries - Overtime 2,952 3,600 3,600 1,500 4,500 900 25 %101-3001-50110 Commissions & Boards 1,509 0 0 0 0 0 0 %101-3001-50111 Internships 806 700 700 407 400 (300)-43 %101-3001-50150 Other Compensation 37,781 31,700 31,700 24,611 34,000 2,300 7 %101-3001-50200 PERS-City Portion 71,408 71,800 71,800 44,855 73,200 1,400 2 %101-3001-50221 Medical Insurance 1,010 0 0 625 0 0 0 %101-3001-50222 Vision Insurance 4,439 0 0 2,719 0 0 0 %101-3001-50223 Dental Insurance 209 0 0 127 0 0 0 %101-3001-50224 Life Insurance 2,059 2,000 2,000 1,202 2,100 100 5 %101-3001-50225 Long Term Disability 8,400 7,100 7,100 5,325 7,400 300 4 %101-3001-50230 Workers Comp Insurance 7,140 5,400 5,400 4,306 5,800 400 7 %101-3001-50240 Social Security-Medicare 277 0 0 93 0 0 0 %101-3001-50241 Social Security-FICA 4,000 0 0 0 0 0 0 %101-3001-50300 Employee Recognition 50 - Salaries and Benefits Totals:625,944 489,300 489,300 381,227 520,900 31,600 6 % 60 - Contract Services 25,000 0 10,000 10,000 25,000 15,000 150 %101-3001-60101 Contract Services 5,482 7,000 7,000 671 7,000 0 0 %101-3001-60122 Credit Card Fees 30,000 60,000 60,000 1,275 40,000 (20,000)-33 %101-3001-60135 Boys & Girls Club 60 - Contract Services Totals:60,482 67,000 77,000 11,946 72,000 (5,000)-6 % 62 - Maintenance & Operations 0 5,000 5,000 0 3,000 (2,000)-40 %101-3001-60157 Rent Expense 2,679 2,500 2,500 3,930 4,000 1,500 60 %101-3001-60320 Travel & Training 265 300 300 0 300 0 0 %101-3001-60351 Membership Dues 731 2,000 2,000 80 1,500 (500)-25 %101-3001-60400 Office Supplies 1,685 0 0 0 0 0 0 %101-3001-60420 Operating Supplies 68,400 60,000 140,000 37,800 135,000 (5,000)-4 %101-3001-60510 Grants & Economic Development/Marketing 1,218 6,000 6,000 0 2,000 (4,000)-67 %101-3001-60527 2-1-1 Hotline 0 3,000 3,000 0 3,000 0 0 %101-3001-60531 Homeless Bus Passes 62 - Maintenance & Operations Totals:74,978 78,800 158,800 41,810 148,800 (10,000) -6 % 69 - Internal Service Charges 62,000 65,500 65,500 49,125 66,800 1,300 2 %101-3001-98110 Information Tech Charges 69 - Internal Service Charges Totals:62,000 65,500 65,500 49,125 66,800 1,300 2 % 3001 - Community Resources Administration Totals:823,403 700,600 790,600 484,107 808,500 17,900 2 % 483,339 367,000 367,000 295,456 393,500 26,500 616 0 0 0 0 0 2,952 3,600 3,600 1,500 4,500 900 1,509 0 0 0 0 0 806 700 700 407 400 (300) 37,781 31,700 31,700 24,611 34,000 2,300 71,408 71,800 71,800 44,855 73,200 1,400 1,010 0 0 625 0 0 4,439 0 0 2,719 0 0 209 0 0 127 0 0 2,059 2,000 2,000 1,202 2,100 100 8,400 7,100 7,100 5,325 7,400 300 7,140 5,400 5,400 4,306 5,800 400 277 0 0 93 0 0 4,000 0 0 0 0 0 625,944 489,300 489,300 381,227 520,900 31,600 25,000 0 10,000 10,000 25,000 15,000 5,482 7,000 7,000 671 7,000 0 30,000 60,000 60,000 1,275 40,000 (20,000) 60,482 67,000 77,000 11,946 72,000 (5,000) 0 5,000 5,000 0 3,000 (2,000) 2,679 2,500 2,500 3,930 4,000 1,500 265 300 300 0 300 0 731 2,000 2,000 80 1,500 (500) 1,685 0 0 0 0 0 68,400 60,000 140,000 37,800 135,000 (5,000) 1,218 6,000 6,000 0 2,000 (4,000) 0 3,000 3,000 0 3,000 0 74,978 78,800 158,800 41,810 148,800 (10,000) 62,000 65,500 65,500 49,125 66,800 1,300 62,000 65,500 65,500 49,125 66,800 1,300 823,403 700,600 790,600 484,107 808,500 17,900 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 30 323 Department : 3001 - Community Resources Administration Permanent Full Time 393,500.00101-3001-50101 70% - Community Resources Director (15% Fire, 15% Library & Museum Fund) 80% - Public Safety Manager (20% Fire) 40% - Community Resources Manager (40% Wellness Center Operations, 20% Library & Museum Fund) 80% - Community Resources Analyst (20% Library & Museum Fund) 80% - Administrative Technician (20% Library & Museum Fund) Contract Services 25,000.00101-3001-60101 Full restoration of Old Towne Artisan Studio wellness west partnership to be restored. Rent Expense 3,000.00101-3001-60157 YMCA lease Travel & Training 4,000.00101-3001-60320 Leadership training and State of the City Membership Dues 300.00101-3001-60351 Engaging Local Government Leaders (ELGL) International City/County Management Association (ICMA) Grants & Economic Developmen…135,000.00101-3001-60510 $60,000 for Community Services Grants are administered per City Policy and selected via a Grant Ad Hoc Commitee. $75,000 for food distribution and other social service programs. CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 31 324 2019/20 Actual Expense 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed Budget 21/22 vs. Current 20/2 % Change in Budget 3002 - Wellness Center Operations 50 - Salaries and Benefits 338,562 215,400 215,400 169,942 233,900 18,500 9 %101-3002-50101 Permanent Full Time 64,376 64,800 64,800 37,376 69,400 4,600 7 %101-3002-50102 Salaries - Part Time 1,642 1,200 1,200 1,033 1,000 (200)-17 %101-3002-50150 Other Compensation 33,520 21,900 21,900 19,142 23,800 1,900 9 %101-3002-50200 PERS-City Portion 65,756 69,800 69,800 40,079 71,100 1,300 2 %101-3002-50221 Medical Insurance 1,191 0 0 719 0 0 0 %101-3002-50222 Vision Insurance 4,850 0 0 3,316 0 0 0 %101-3002-50223 Dental Insurance 156 0 0 95 0 0 0 %101-3002-50224 Life Insurance 1,593 1,300 1,300 783 1,400 100 8 %101-3002-50225 Long Term Disability 6,600 6,900 6,900 5,175 7,100 200 3 %101-3002-50230 Workers Comp Insurance 5,887 3,200 3,200 3,041 3,500 300 9 %101-3002-50240 Social Security-Medicare 1,475 0 0 445 0 0 0 %101-3002-50241 Social Security-FICA 50 - Salaries and Benefits Totals:525,609 384,500 384,500 281,147 411,200 26,700 7 % 60 - Contract Services 2,500 4,300 4,300 0 5,000 700 16 %101-3002-60103 Professional Services 41,077 30,000 30,000 7,833 40,000 10,000 33 %101-3002-60107 Instructors 3,000 3,000 13,000 0 3,000 (10,000)-77 %101-3002-60108 Technical 60 - Contract Services Totals:46,577 37,300 47,300 7,833 48,000 700 1 % 62 - Maintenance & Operations 2,900 3,000 3,000 0 3,000 0 0 %101-3002-60157 Rental Expense 259 1,000 1,000 256 1,000 0 0 %101-3002-60320 Travel & Training 1,571 3,000 3,000 1,315 3,000 0 0 %101-3002-60351 Membership Dues 601 500 500 350 700 200 40 %101-3002-60352 Subscriptions & Publications 1,825 2,500 2,500 18 3,000 500 20 %101-3002-60400 Office Supplies 28,633 32,500 37,500 22,687 45,000 7,500 20 %101-3002-60420 Operating Supplies 0 1,000 1,000 0 1,000 0 0 %101-3002-60432 Tools/Equipment 62 - Maintenance & Operations Totals:35,789 43,500 48,500 24,626 56,700 8,200 17 % 69 - Internal Service Charges 48,200 63,700 63,700 47,775 64,900 1,200 2 %101-3002-98110 Information Tech Charges 14,800 14,800 14,800 11,100 17,100 2,300 16 %101-3002-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:63,000 78,500 78,500 58,875 82,000 3,500 4 % 3002 - Wellness Center Operations Totals:670,974 543,800 558,800 372,481 597,900 39,100 7 % 338,562 215,400 215,400 169,942 233,900 18,500 64,376 64,800 64,800 37,376 69,400 4,600 1,642 1,200 1,200 1,033 1,000 (200) 33,520 21,900 21,900 19,142 23,800 1,900 65,756 69,800 69,800 40,079 71,100 1,300 1,191 0 0 719 0 0 4,850 0 0 3,316 0 0 156 0 0 95 0 0 1,593 1,300 1,300 783 1,400 100 6,600 6,900 6,900 5,175 7,100 200 5,887 3,200 3,200 3,041 3,500 300 1,475 0 0 445 0 0 525,609 384,500 384,500 281,147 411,200 26,700 2,500 4,300 4,300 0 5,000 700 41,077 30,000 30,000 7,833 40,000 10,000 3,000 3,000 13,000 0 3,000 (10,000) 46,577 37,300 47,300 7,833 48,000 700 2,900 3,000 3,000 0 3,000 0 259 1,000 1,000 256 1,000 0 1,571 3,000 3,000 1,315 3,000 0 601 500 500 350 700 200 1,825 2,500 2,500 18 3,000 500 28,633 32,500 37,500 22,687 45,000 7,500 0 1,000 1,000 0 1,000 0 35,789 43,500 48,500 24,626 56,700 8,200 48,200 63,700 63,700 47,775 64,900 1,200 14,800 14,800 14,800 11,100 17,100 2,300 63,000 78,500 78,500 58,875 82,000 3,500 670,974 543,800 558,800 372,481 597,900 39,100 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 32 325 Department : 3002 - Wellness Center Operations Permanent Full Time 233,900.00101-3002-50101 40% - Community Resources Manager (40% Community Resources Administration, 15% Library & Museum Fund) 100% - Community Resources Specialist 100% - Community Resources Coordinator 100% - Administrative Assistant Salaries - Part Time 69,400.00101-3002-50102 100% - Recreation Leader (8) Professional Services 5,000.00101-3002-60103 Retired senior volunteer program, annual volunteer sponsorships to Watercolors of La Quinta, Boys & Girls Club of La Quinta, and the California Highway Patrol Instructors 40,000.00101-3002-60107 Instructors for fitness classes, programming will be evaluated using COVID-19 guidance. Technical 3,000.00101-3002-60108 Annual sponsorship for the Riverside County Senior Inspiration Awards Rental Expense 3,000.00101-3002-60157 General insurances and security guards for facility rentals Travel & Training 1,000.00101-3002-60320 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 33 326 Park and Recreational activity program training and certifications Membership Dues 3,000.00101-3002-60351 Amount Motion Picture Licensing Corporation (MPLC)500 National Council on Aging (NCOA)100 TechnoGym apps 2,400 Subscriptions & Publications 700.00101-3002-60352 Amount Desert Sun newspaper 300 Wellness publications 400 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 34 327 2019/20 Actual Expense 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed Budget 21/22 vs. Current 20/2 % Change in Budget 3003 - Recreation Programs & Special Events 50 - Salaries and Benefits 53,882 53,000 53,000 43,974 56,700 3,700 7 %101-3003-50101 Permanent Full Time 61,877 64,800 64,800 7,548 69,400 4,600 7 %101-3003-50102 Salaries - Part Time 20 0 0 0 0 0 0 %101-3003-50150 Other Compensation 5,391 10,000 10,000 3,215 10,500 500 5 %101-3003-50200 PERS-City Portion 7,760 20,600 20,600 5,964 21,000 400 2 %101-3003-50221 Medical Insurance 104 0 0 74 0 0 0 %101-3003-50222 Vision Insurance 246 0 0 175 0 0 0 %101-3003-50223 Dental Insurance 35 0 0 25 0 0 0 %101-3003-50224 Life Insurance 287 1,200 1,200 177 1,300 100 8 %101-3003-50225 Long Term Disability 1,900 2,100 2,100 1,575 2,100 0 0 %101-3003-50230 Workers Comp Insurance 1,678 6,600 6,600 747 6,600 0 0 %101-3003-50240 Social Security-Medicare 2,350 0 0 163 0 0 0 %101-3003-50241 Social Security-FICA 50 - Salaries and Benefits Totals:135,528 158,300 158,300 63,637 167,600 9,300 6 % 60 - Contract Services 0 0 0 (2,311)0 0 0 %101-3003-60107 Instructors 0 30,000 30,000 0 125,000 95,000 317 %101-3003-60184 Fritz Burns Pool Programming 0 0 0 0 150,000 150,000 0 %101-3003-60190 X-Park Programming 60 - Contract Services Totals:0 30,000 30,000 (2,311)275,000 245,000 817 % 62 - Maintenance & Operations 245,076 150,000 190,000 51,814 275,000 85,000 45 %101-3003-60149 Community Experiences 853 1,000 1,000 0 1,000 0 0 %101-3003-60157 Rental Expense 29 1,000 1,000 199 1,000 0 0 %101-3003-60320 Travel & Training 200 1,000 1,000 200 500 (500)-50 %101-3003-60351 Membership Dues 5,675 4,000 4,000 866 5,000 1,000 25 %101-3003-60420 Operating Supplies 26,053 45,000 45,000 87 45,000 0 0 %101-3003-60512 LQ Art Event 62 - Maintenance & Operations Totals:277,885 202,000 242,000 53,166 327,500 85,500 35 % 69 - Internal Service Charges 13,800 18,800 18,800 14,100 19,100 300 2 %101-3003-98110 Information Tech Charges 29,200 29,600 29,600 22,200 34,100 4,500 15 %101-3003-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:43,000 48,400 48,400 36,300 53,200 4,800 10 % 3003 - Recreation Programs & Special Events Totals:456,413 438,700 478,700 150,792 823,300 344,600 72 % 53,882 53,000 53,000 43,974 56,700 3,700 61,877 64,800 64,800 7,548 69,400 4,600 20 0 0 0 0 0 5,391 10,000 10,000 3,215 10,500 500 7,760 20,600 20,600 5,964 21,000 400 104 0 0 74 0 0 246 0 0 175 0 0 35 0 0 25 0 0 287 1,200 1,200 177 1,300 100 1,900 2,100 2,100 1,575 2,100 0 1,678 6,600 6,600 747 6,600 0 2,350 0 0 163 0 0 135,528 158,300 158,300 63,637 167,600 9,300 0 0 0 (2,311)0 0 0 30,000 30,000 0 125,000 95,000 0 0 0 0 150,000 150,000 0 30,000 30,000 (2,311)275,000 245,000 245,076 150,000 190,000 51,814 275,000 85,000 853 1,000 1,000 0 1,000 0 29 1,000 1,000 199 1,000 0 200 1,000 1,000 200 500 (500) 5,675 4,000 4,000 866 5,000 1,000 26,053 45,000 45,000 87 45,000 0 277,885 202,000 242,000 53,166 327,500 85,500 13,800 18,800 18,800 14,100 19,100 300 29,200 29,600 29,600 22,200 34,100 4,500 43,000 48,400 48,400 36,300 53,200 4,800 456,413 438,700 478,700 150,792 823,300 344,600 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 35 328 Department : 3003 - Recreation Programs & Special Events Permanent Full Time 56,700.00101-3003-50101 100% - Management Assistant Salaries - Part Time 69,400.00101-3003-50102 100% - Senior Recreation Leader (2) 100% - Recreation Leader (3) Community Experiences 275,000.00101-3003-60149 Programming for special events will be determined by COVID-19 guidance. Anticipated events include 9/11 Vigil, Veteran's Day Celebration, Tree Lighting, Ironman, City Picnic, Art on Main, Summer Golf, Mission LQ Rocket Launch, Pillars of the Community, and Soaring Over LQ Kite Experience. Rental Expense 1,000.00101-3003-60157 Special event insurances and security guards for events Fritz Burns Pool Programming 125,000.00101-3003-60184 Pool operating contract services Travel & Training 1,000.00101-3003-60320 Park and Recreation program training and certifications Membership Dues 500.00101-3003-60351 Americans for Art California Parks and Recreation Society (CPRS) CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 36 329 2019/20 Actual Expense 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed Budget 21/22 vs. Current 20/2 % Change in Budget 6004 - Code Compliance/Animal Control 50 - Salaries and Benefits 509,542 474,200 509,000 352,749 553,000 44,000 9 %101-6004-50101 Permanent Full Time 7,632 10,000 20,000 13,439 15,000 (5,000)-25 %101-6004-50105 Salaries - Overtime 250 100 100 0 100 0 0 %101-6004-50106 Standby 284 0 0 0 0 0 0 %101-6004-50107 Standby Overtime 487 500 500 0 20 (480)-96 %101-6004-50150 Other Compensation 49,823 51,600 54,300 34,482 55,500 1,200 2 %101-6004-50200 PERS-City Portion 110,516 139,500 151,500 90,984 163,100 11,600 8 %101-6004-50221 Medical Insurance 1,714 0 0 1,195 0 0 0 %101-6004-50222 Vision Insurance 7,383 0 0 5,174 0 0 0 %101-6004-50223 Dental Insurance 256 0 0 192 0 0 0 %101-6004-50224 Life Insurance 2,589 2,900 2,900 1,564 3,400 500 17 %101-6004-50225 Long Term Disability 13,100 13,700 13,700 10,275 16,300 2,600 19 %101-6004-50230 Workers Comp Insurance 8,161 6,900 7,300 5,374 8,200 900 12 %101-6004-50240 Social Security-Medicare 1,151 0 0 0 0 0 0 %101-6004-50241 Social Security- FICA 15,517 0 0 0 0 0 0 %101-6004-50251 Temporary 4,000 0 0 0 0 0 0 %101-6004-50300 Employee Recognition 50 - Salaries and Benefits Totals:732,405 699,400 759,300 515,429 814,620 55,320 7 % 60 - Contract Services 11,961 5,000 62,000 26,879 80,000 18,000 29 %101-6004-60103 Professional Services 948 2,000 1,000 120 1,000 0 0 %101-6004-60108 Technical 14,555 15,000 15,000 5,281 15,000 0 0 %101-6004-60111 Administrative Citation Services 0 1,000 1,000 0 500 (500)-50 %101-6004-60119 Vehicle Abatement 11,401 1,000 5,000 6,450 10,000 5,000 100 %101-6004-60120 Lot Cleaning/Gravel Program 659 500 500 360 2,000 1,500 300 %101-6004-60122 Credit Card Fees 4,586 0 0 0 0 0 0 %101-6004-60125 Temporary Agency Services 10,150 15,000 12,000 6,000 12,000 0 0 %101-6004-60194 Veterinary Service 166,214 225,000 225,000 113,451 255,000 30,000 13 %101-6004-60197 Animal Shelter Contract Service 60 - Contract Services Totals:220,475 264,500 321,500 158,541 375,500 54,000 17 % 62 - Maintenance & Operations 0 5,000 1,000 0 1,000 0 0 %101-6004-60121 Low-Income Housing Grants 1,271 1,000 1,000 (540)1,200 200 20 %101-6004-60320 Travel & Training 570 700 700 190 600 (100)-14 %101-6004-60351 Membership Dues 1,810 2,200 2,200 1,162 2,000 (200)-9 %101-6004-60400 Office Supplies 0 5,000 5,000 3,739 6,000 1,000 20 %101-6004-60410 Printing 1,078 1,000 1,000 115 1,500 500 50 %101-6004-60425 Supplies - Field 1,877 2,000 3,000 1,057 3,000 0 0 %101-6004-60690 Uniforms 62 - Maintenance & Operations Totals:6,607 16,900 13,900 5,722 15,300 1,400 10 % 69 - Internal Service Charges 96,400 127,300 127,300 95,475 148,700 21,400 17 %101-6004-98110 Information Tech Charges 88,400 88,700 88,700 66,525 119,200 30,500 34 %101-6004-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:184,800 216,000 216,000 162,000 267,900 51,900 24 % 6004 - Code Compliance/Animal Control Totals:1,144,286 1,196,800 1,310,700 841,692 1,473,320 162,620 12 % 509,542 474,200 509,000 352,749 553,000 44,000 7,632 10,000 20,000 13,439 15,000 (5,000) 250 100 100 0 100 0 284 0 0 0 0 0 487 500 500 0 20 (480) 49,823 51,600 54,300 34,482 55,500 1,200 110,516 139,500 151,500 90,984 163,100 11,600 1,714 0 0 1,195 0 0 7,383 0 0 5,174 0 0 256 0 0 192 0 0 2,589 2,900 2,900 1,564 3,400 500 13,100 13,700 13,700 10,275 16,300 2,600 8,161 6,900 7,300 5,374 8,200 900 1,151 0 0 0 0 0 15,517 0 0 0 0 0 4,000 0 0 0 0 0 732,405 699,400 759,300 515,429 814,620 55,320 11,961 5,000 62,000 26,879 80,000 18,000 948 2,000 1,000 120 1,000 0 14,555 15,000 15,000 5,281 15,000 0 0 1,000 1,000 0 500 (500) 11,401 1,000 5,000 6,450 10,000 5,000 659 500 500 360 2,000 1,500 4,586 0 0 0 0 0 10,150 15,000 12,000 6,000 12,000 0 166,214 225,000 225,000 113,451 255,000 30,000 220,475 264,500 321,500 158,541 375,500 54,000 0 5,000 1,000 0 1,000 0 1,271 1,000 1,000 (540)1,200 200 570 700 700 190 600 (100) 1,810 2,200 2,200 1,162 2,000 (200) 0 5,000 5,000 3,739 6,000 1,000 1,078 1,000 1,000 115 1,500 500 1,877 2,000 3,000 1,057 3,000 0 6,607 16,900 13,900 5,722 15,300 1,400 96,400 127,300 127,300 95,475 148,700 21,400 88,400 88,700 88,700 66,525 119,200 30,500 184,800 216,000 216,000 162,000 267,900 51,900 1,144,286 1,196,800 1,310,700 841,692 1,473,320 162,620 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 37 330 Department : 6004 - Code Compliance/Animal Control Permanent Full Time 553,000.00101-6004-50101 100% - Animal Control/Code Compliance Supervisor 100% - Code Compliance Officer II (4) 100% - Code Compliance Officer I (2, New position in 2021/22) 80% - Administrative Technician (20% Fire) In FY 2021/22, an additional Code Compliance Officer I position was added. Professional Services 80,000.00101-6004-60103 Short-term vacation rental hotline and vacation rental compliance Technical 1,000.00101-6004-60108 Riverside County recording fees for liens Administrative Citation Services 15,000.00101-6004-60111 Data ticket processing of code compliance and police citations; some processing is now being conducted by City staff. Travel & Training 1,200.00101-6004-60320 Code Enforcement officer training events Membership Dues 600.00101-6004-60351 Annual memberships for Code Officers to CA Association of Code Enforcement Officers (CACEO) Printing 6,000.00101-6004-60410 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET Community educational outreach, new citation books being ordered in FY 2021/22 38 331 2019/20 Actual Expense 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed Budget 21/22 vs. Current 20/2 % Change in Budget 3005 - Parks Maintenance 50 - Salaries and Benefits 241,841 222,400 222,400 176,167 240,800 18,400 8 %101-3005-50101 Permanent Full Time 359 600 600 725 700 100 17 %101-3005-50105 Salaries - Overtime 3,280 3,500 3,500 5,148 3,500 0 0 %101-3005-50106 Standby 4,909 4,000 4,000 15,094 4,000 0 0 %101-3005-50107 Standby Overtime 140 0 0 0 0 0 0 %101-3005-50150 Other Compensation 20,022 17,100 17,100 15,189 21,200 4,100 24 %101-3005-50200 PERS-City Portion 55,873 71,800 71,800 45,669 73,200 1,400 2 %101-3005-50221 Medical Insurance 822 0 0 646 0 0 0 %101-3005-50222 Vision Insurance 4,655 0 0 3,926 0 0 0 %101-3005-50223 Dental Insurance 111 0 0 98 0 0 0 %101-3005-50224 Life Insurance 1,107 1,300 1,300 818 1,500 200 15 %101-3005-50225 Long Term Disability 7,700 7,100 7,100 5,325 7,400 300 4 %101-3005-50230 Workers Comp Insurance 3,764 3,300 3,300 2,859 3,600 300 9 %101-3005-50240 Social Security-Medicare 50 - Salaries and Benefits Totals:344,583 331,100 331,100 271,664 355,900 24,800 7 % 60 - Contract Services 502,680 430,000 458,000 321,883 603,600 145,600 32 %101-3005-60112 Landscape Contract 60 - Contract Services Totals:502,680 430,000 458,000 321,883 603,600 145,600 32 % 62 - Maintenance & Operations 18,896 30,000 30,000 12,150 31,500 1,500 5 %101-3005-60117 Civic Center Lake Maintenance 475 1,000 1,000 425 1,000 0 0 %101-3005-60136 Lighting Service 134,676 40,000 75,000 71,040 60,000 (15,000)-20 %101-3005-60184 Fritz Burns Pool Maintenance 0 0 0 0 30,000 30,000 0 %101-3005-60189 SilverRock Lake Maintenance 4,950 3,000 3,000 1,139 3,000 0 0 %101-3005-60320 Travel & Training 735 1,000 1,000 730 1,000 0 0 %101-3005-60351 Membership Dues 1,038 1,000 1,000 484 1,000 0 0 %101-3005-60400 Office Supplies 23,652 10,000 10,000 13,303 15,000 5,000 50 %101-3005-60423 Supplies-Graffiti and Vandalism 375 1,000 1,000 538 1,000 0 0 %101-3005-60427 Safety Gear 74,391 60,000 115,000 50,191 140,000 25,000 22 %101-3005-60431 Materials/Supplies 3,598 3,000 3,000 1,671 3,000 0 0 %101-3005-60432 Tools/Equipment 42,983 31,000 31,000 9,273 35,000 4,000 13 %101-3005-60554 LQ Park Water Feature 900 10,000 10,000 0 10,000 0 0 %101-3005-60557 Tree Maintenance 948 2,500 2,500 1,706 2,500 0 0 %101-3005-60690 Uniforms 87,801 70,000 104,000 70,511 300,000 196,000 188 %101-3005-60691 Maintenance/Services 62 - Maintenance & Operations Totals:395,417 263,500 387,500 233,160 634,000 246,500 64 % 66 - Utilities 3,447 0 8,000 2,750 15,000 7,000 88 %101-3005-61100 Gas-Utilities FB Pool 157 300 300 119 300 0 0 %101-3005-61102 Electric - Monticello Park - Utilities 28,558 30,000 30,000 23,793 30,000 0 0 %101-3005-61103 Electric - Civic Center Park - Utilities 28 120 120 0 100 (20)-17 %101-3005-61104 Electric - Pioneer Park - Utilities 12,033 16,800 16,800 8,337 15,000 (1,800)-11 %101-3005-61105 Electric - Fritz Burns Park - Utilities 28,951 36,000 6,000 0 40,000 34,000 567 %101-3005-61106 Electric - Sports Complex - Utilities 2,960 4,800 4,800 99 5,000 200 4 %101-3005-61108 Electric - Colonel Paige - Utilities 32,370 42,000 42,000 39,727 42,000 0 0 %101-3005-61109 Electric - Community Park - Utilities 241,841 222,400 222,400 176,167 240,800 18,400 359 600 600 725 700 100 3,280 3,500 3,500 5,148 3,500 0 4,909 4,000 4,000 15,094 4,000 0 140 0 0 0 0 0 20,022 17,100 17,100 15,189 21,200 4,100 55,873 71,800 71,800 45,669 73,200 1,400 822 0 0 646 0 0 4,655 0 0 3,926 0 0 111 0 0 98 0 0 1,107 1,300 1,300 818 1,500 200 7,700 7,100 7,100 5,325 7,400 300 3,764 3,300 3,300 2,859 3,600 300 344,583 331,100 331,100 271,664 355,900 24,800 502,680 430,000 458,000 321,883 603,600 145,600 502,680 430,000 458,000 321,883 603,600 145,600 18,896 30,000 30,000 12,150 31,500 1,500 475 1,000 1,000 425 1,000 0 134,676 40,000 75,000 71,040 60,000 (15,000) 0 0 0 0 30,000 30,000 4,950 3,000 3,000 1,139 3,000 0 735 1,000 1,000 730 1,000 0 1,038 1,000 1,000 484 1,000 0 23,652 10,000 10,000 13,303 15,000 5,000 375 1,000 1,000 538 1,000 0 74,391 60,000 115,000 50,191 140,000 25,000 3,598 3,000 3,000 1,671 3,000 0 42,983 31,000 31,000 9,273 35,000 4,000 900 10,000 10,000 0 10,000 0 948 2,500 2,500 1,706 2,500 0 87,801 70,000 104,000 70,511 300,000 196,000 395,417 263,500 387,500 233,160 634,000 246,500 3,447 0 8,000 2,750 15,000 7,000 157 300 300 119 300 0 28,558 30,000 30,000 23,793 30,000 0 28 120 120 0 100 (20) 12,033 16,800 16,800 8,337 15,000 (1,800) 28,951 36,000 6,000 0 40,000 34,000 2,960 4,800 4,800 99 5,000 200 32,370 42,000 42,000 39,727 42,000 0 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 39 332 2019/20 Actual Expense 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed Budget 21/22 vs. Current 20/2 % Change in Budget 485 840 840 373 700 (140)-17 %101-3005-61110 Electric - Adams Park - Utilities 162 240 240 122 200 (40)-17 %101-3005-61111 Electric - Velasco Park - Utilities 283 360 360 209 350 (10)-3 %101-3005-61113 Electric - Eisenhower Park - Utilities 157 240 240 118 250 10 4 %101-3005-61114 Electric - Desert Pride - Utilities 0 0 7,600 0 25,000 17,400 229 %101-3005-61115 Electric - SilverRock Event Site - Utilities 0 0 0 0 30,000 30,000 0 %101-3005-61116 Electric - XPark Complex 23,800 30,000 30,000 16,239 25,000 (5,000)-17 %101-3005-61201 Water -Monticello Park - Utilities 27,559 38,000 38,000 24,452 38,000 0 0 %101-3005-61202 Water - Civic Center Park - Utilities 2,074 2,000 2,000 1,161 2,000 0 0 %101-3005-61203 Water -Eisenhower Park - Utilities 25,328 25,000 25,000 20,100 26,000 1,000 4 %101-3005-61204 Water -Fritz Burns Park - Utilities 1,168 1,000 1,000 1,269 1,300 300 30 %101-3005-61205 Water -Velasco Park - Utilities 7,313 5,000 5,000 9,469 7,000 2,000 40 %101-3005-61206 Water -Desert Pride - Utilities 11,492 15,000 15,000 8,454 13,000 (2,000)-13 %101-3005-61207 Water -Pioneer Park - Utilities 214 300 300 169 300 0 0 %101-3005-61208 Water -Seasons Park - Utilities 68,123 86,000 86,000 57,066 75,000 (11,000)-13 %101-3005-61209 Water -Community Park - Utilities 0 2,000 2,000 0 0 (2,000)-100 %101-3005-61210 Water - Adams Park - Utilities 0 0 6,000 0 50,000 44,000 733 %101-3005-61211 Water - SilverRock Event Site 0 0 0 0 10,000 10,000 0 %101-3005-61212 Water - XPark Complex 1,056 1,000 1,000 873 1,000 0 0 %101-3005-61300 Telephone - Utilities 66 - Utilities Totals:277,719 337,000 328,600 214,899 452,500 123,900 38 % 69 - Internal Service Charges 56,500 65,500 65,500 49,125 66,800 1,300 2 %101-3005-98110 Information Tech Charges 337,000 200,000 200,000 150,000 200,000 0 0 %101-3005-98130 Park Equipment Maintenance 44,200 43,700 43,700 32,775 68,100 24,400 56 %101-3005-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:437,700 309,200 309,200 231,900 334,900 25,700 8 % 3005 - Parks Maintenance Totals:1,958,099 1,670,800 1,814,400 1,273,506 2,380,900 566,500 31 % 485 840 840 373 700 (140) 162 240 240 122 200 (40) 283 360 360 209 350 (10) 157 240 240 118 250 10 0 0 7,600 0 25,000 17,400 0 0 0 0 30,000 30,000 23,800 30,000 30,000 16,239 25,000 (5,000) 27,559 38,000 38,000 24,452 38,000 0 2,074 2,000 2,000 1,161 2,000 0 25,328 25,000 25,000 20,100 26,000 1,000 1,168 1,000 1,000 1,269 1,300 300 7,313 5,000 5,000 9,469 7,000 2,000 11,492 15,000 15,000 8,454 13,000 (2,000) 214 300 300 169 300 0 68,123 86,000 86,000 57,066 75,000 (11,000) 0 2,000 2,000 0 0 (2,000) 0 0 6,000 0 50,000 44,000 0 0 0 0 10,000 10,000 1,056 1,000 1,000 873 1,000 0 277,719 337,000 328,600 214,899 452,500 123,900 56,500 65,500 65,500 49,125 66,800 1,300 337,000 200,000 200,000 150,000 200,000 0 44,200 43,700 43,700 32,775 68,100 24,400 437,700 309,200 309,200 231,900 334,900 25,700 1,958,099 1,670,800 1,814,400 1,273,506 2,380,900 566,500 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 40 333 Department : 3005 - Parks Maintenance Permanent Full Time 240,800.00101-3005-50101 50% - Facilities Deputy Director (50% Public Buildings) 50% - Parks/L&L Foreman (50% Lighting & Landscape Fund) 50% - Maintenance Worker II (50% Lighting & Landscape Fund) 50% - Maintenance Worker I (3 total, 50% Lighting & Landscape Fund) 50% - Management Analyst (50% Lighting & Landscape Fund) Landscape Contract 603,600.00101-3005-60112 SilverRock Event Site and X-Park were added in FY 2021/22. The budget also includes overseeding at Adams Park and retention basin. Fritz Burns Pool Maintenance 60,000.00101-3005-60184 Pool maintenance services Travel & Training 3,000.00101-3005-60320 Aquatic facility operator course Maintenance agreement school Playground certifications Membership Dues 1,000.00101-3005-60351 Amount CA Parks & Recreation Association (CPRS)500 National Park & Recreation Association (NPRA)500 Maintenance/Services 300,000.00101-3005-60691 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 41 334 SilverRock Event Site and X-Park were added in FY 2021/22. Budget also includes: Sports Complex laser leveling/infield mix, Civic Center Campos light posts painted/DG/plant replacement, tree and plant replacements at La Quinta Park, landscaping at Pioneer Park, and playground safety fill at all parks. Park Equipment Maintenance 200,000.00101-3005-98130 Funds are transferred to the Park Equipment & Facility Internal Service Fund for park equipment replacements CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 42 335 2019/20 Actual Expense 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed Budget 21/22 vs. Current 20/2 % Change in Budget 3008 - Public Buildings 50 - Salaries and Benefits 264,897 319,800 319,800 251,756 346,800 27,000 8 %101-3008-50101 Permanent Full Time 0 0 0 213 0 0 0 %101-3008-50105 Salaries - Overtime 6,142 6,000 6,000 7,337 6,000 0 0 %101-3008-50106 Standby 3,590 4,000 4,000 6,801 4,400 400 10 %101-3008-50107 Standby Overtime 643 500 500 384 500 0 0 %101-3008-50150 Other Compensation 18,317 26,100 26,100 22,203 31,100 5,000 19 %101-3008-50200 PERS-City Portion 49,214 92,300 92,300 56,670 94,100 1,800 2 %101-3008-50221 Medical Insurance 916 0 0 1,029 0 0 0 %101-3008-50222 Vision Insurance 3,052 0 0 3,660 0 0 0 %101-3008-50223 Dental Insurance 119 0 0 125 0 0 0 %101-3008-50224 Life Insurance 1,225 1,900 1,900 1,179 2,100 200 11 %101-3008-50225 Long Term Disability 14,800 9,100 9,100 6,825 9,400 300 3 %101-3008-50230 Workers Comp Insurance 4,279 4,700 4,700 3,908 5,200 500 11 %101-3008-50240 Social Security-Medicare 8,000 0 0 0 0 0 0 %101-3008-50300 Employee Recognition 50 - Salaries and Benefits Totals:375,193 464,400 464,400 362,090 499,600 35,200 8 % 60 - Contract Services 127,991 133,300 183,300 94,420 192,500 9,200 5 %101-3008-60115 Janitorial 8,669 7,000 7,000 6,511 9,000 2,000 29 %101-3008-60116 Pest Control 7,750 11,000 11,000 2,460 8,000 (3,000)-27 %101-3008-60123 Security & Alarm 6,294 4,500 4,500 2,317 6,000 1,500 33 %101-3008-60196 Annual Permits/Inspections 60 - Contract Services Totals:150,704 155,800 205,800 105,708 215,500 9,700 5 % 61 - Office Supplies 16 0 0 0 0 0 0 %101-3008-60400 Office Supplies 61 - Office Supplies Totals:16 0 0 0 0 0 0 % 62 - Maintenance & Operations 678 1,000 1,000 325 1,000 0 0 %101-3008-60320 Travel & Training 756 1,000 1,000 857 1,000 0 0 %101-3008-60427 Safety Gear 38,648 27,000 27,000 21,744 35,000 8,000 30 %101-3008-60431 Materials/Supplies 7,636 8,000 8,000 2,003 8,000 0 0 %101-3008-60432 Tools/Equipment 360 500 500 0 500 0 0 %101-3008-60481 Office Supplies 883 0 0 647 0 0 0 %101-3008-60664 Fire Extinguisher 38,186 40,000 40,000 24,564 70,000 30,000 75 %101-3008-60667 HVAC 929 1,000 1,000 989 1,500 500 50 %101-3008-60690 Uniforms 46,264 50,000 50,000 22,511 60,000 10,000 20 %101-3008-60691 Maintenance/Services 1,100 1,000 1,000 0 1,100 100 10 %101-3008-61702 Facility Rent 62 - Maintenance & Operations Totals:135,439 129,500 129,500 73,640 178,100 48,600 38 % 66 - Utilities 6,162 7,000 7,000 4,345 7,000 0 0 %101-3008-61100 Gas - Utilities 114,798 140,000 140,000 95,096 140,000 0 0 %101-3008-61101 Electricity - Utilities 8,620 9,000 9,000 6,227 9,000 0 0 %101-3008-61200 Water - Utilities 66 - Utilities Totals:129,580 156,000 156,000 105,668 156,000 0 0 % 264,897 319,800 319,800 251,756 346,800 27,000 0 0 0 213 0 0 6,142 6,000 6,000 7,337 6,000 0 3,590 4,000 4,000 6,801 4,400 400 643 500 500 384 500 0 18,317 26,100 26,100 22,203 31,100 5,000 49,214 92,300 92,300 56,670 94,100 1,800 916 0 0 1,029 0 0 3,052 0 0 3,660 0 0 119 0 0 125 0 0 1,225 1,900 1,900 1,179 2,100 200 14,800 9,100 9,100 6,825 9,400 300 4,279 4,700 4,700 3,908 5,200 500 8,000 0 0 0 0 0 375,193 464,400 464,400 362,090 499,600 35,200 127,991 133,300 183,300 94,420 192,500 9,200 8,669 7,000 7,000 6,511 9,000 2,000 7,750 11,000 11,000 2,460 8,000 (3,000) 6,294 4,500 4,500 2,317 6,000 1,500 150,704 155,800 205,800 105,708 215,500 9,700 16 0 0 0 0 0 16 0 0 0 0 0 678 1,000 1,000 325 1,000 0 756 1,000 1,000 857 1,000 0 38,648 27,000 27,000 21,744 35,000 8,000 7,636 8,000 8,000 2,003 8,000 0 360 500 500 0 500 0 883 0 0 647 0 0 38,186 40,000 40,000 24,564 70,000 30,000 929 1,000 1,000 989 1,500 500 46,264 50,000 50,000 22,511 60,000 10,000 1,100 1,000 1,000 0 1,100 100 135,439 129,500 129,500 73,640 178,100 48,600 6,162 7,000 7,000 4,345 7,000 0 114,798 140,000 140,000 95,096 140,000 0 8,620 9,000 9,000 6,227 9,000 0 129,580 156,000 156,000 105,668 156,000 0 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 43 336 2019/20 Actual Expense 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed Budget 21/22 vs. Current 20/2 % Change in Budget 69 - Internal Service Charges 81,000 62,000 62,000 46,500 67,000 5,000 8 %101-3008-91842 Liability Insurance & Claims 108,800 84,300 84,300 63,225 85,800 1,500 2 %101-3008-98110 Information Tech Charges 88,400 88,700 88,700 66,525 119,200 30,500 34 %101-3008-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:278,200 235,000 235,000 176,250 272,000 37,000 16 % 3008 - Public Buildings Totals:1,069,132 1,140,700 1,190,700 823,355 1,321,200 130,500 11 % 81,000 62,000 62,000 46,500 67,000 5,000 108,800 84,300 84,300 63,225 85,800 1,500 88,400 88,700 88,700 66,525 119,200 30,500 278,200 235,000 235,000 176,250 272,000 37,000 1,069,132 1,140,700 1,190,700 823,355 1,321,200 130,500 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 44 337 Department : 3008 - Public Buildings Permanent Full Time 346,800.00101-3008-50101 50% - Facilities Deputy Director (50% Parks Maintenance) 100% - Management Analyst 100% - Maintenance and Operations Technician 100% - Maintenance and Operations Coordinator 100% - Maintenance Worker I Janitorial 192,500.00101-3008-60115 Janitorial services for all public buildings including parks Services include additional cleaning to combat COVID-19 and a minimum wage increase Travel & Training 1,000.00101-3008-60320 HVAC training HVAC 70,000.00101-3008-60667 For all public buildings including City Hall, Fritz Burns Pool, La Quinta Park, Maintenance Yard, Public Works Office, Sports Complex, and Wellness Center. Replacements anticipated at the Wellness Center and City Hall in FY 2021/22. Maintenance/Services 60,000.00101-3008-60691 Public building repairs and maintenance Facility Rent 1,100.00101-3008-61702 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET Finance Authority requires an annual State Controller's Report. The 1996 Civic Center Bond was paid off in October 2018. 45 338 2019/20 Actual Expense 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed Budget 21/22 vs. Current 20/2 % Change in Budget 7001 - Public Works Administration 50 - Salaries and Benefits 9,940 342,200 342,200 260,078 368,800 26,600 8 %101-7001-50101 Permanent Full Time 62 500 500 1,498 500 0 0 %101-7001-50150 Other Compensation 987 33,800 33,800 25,481 36,400 2,600 8 %101-7001-50200 PERS-City Portion 1,864 82,100 82,100 42,481 83,700 1,600 2 %101-7001-50221 Medical Insurance 28 0 0 809 0 0 0 %101-7001-50222 Vision Insurance 211 0 0 4,788 0 0 0 %101-7001-50223 Dental Insurance 7 0 0 181 0 0 0 %101-7001-50224 Life Insurance 42 1,700 1,700 1,070 1,800 100 6 %101-7001-50225 Long Term Disability 0 8,100 8,100 6,075 8,400 300 4 %101-7001-50230 Workers Comp Insurance 146 5,000 5,000 3,806 5,500 500 10 %101-7001-50240 Social Security-Medicare 50 - Salaries and Benefits Totals:13,288 473,400 473,400 346,266 505,100 31,700 7 % 60 - Contract Services 0 150,000 150,000 699 150,000 0 0 %101-7001-60104 Consultants 60 - Contract Services Totals:0 150,000 150,000 699 150,000 0 0 % 62 - Maintenance & Operations 0 6,000 6,000 0 5,000 (1,000)-17 %101-7001-60320 Travel & Training 0 2,400 2,400 0 500 (1,900)-79 %101-7001-60351 Membership Dues 0 10,000 10,000 534 2,000 (8,000)-80 %101-7001-60400 Office Supplies 0 2,500 2,500 41 1,000 (1,500)-60 %101-7001-60420 Operating Supplies 62 - Maintenance & Operations Totals:0 20,900 20,900 575 8,500 (12,400) -59 % 69 - Internal Service Charges 0 74,900 74,900 56,175 76,300 1,400 2 %101-7001-98110 Information Tech Charges 69 - Internal Service Charges Totals:0 74,900 74,900 56,175 76,300 1,400 2 % 7001 - Public Works Administration Totals:13,288 719,200 719,200 403,715 739,900 20,700 3 % 9,940 342,200 342,200 260,078 368,800 26,600 62 500 500 1,498 500 0 987 33,800 33,800 25,481 36,400 2,600 1,864 82,100 82,100 42,481 83,700 1,600 28 0 0 809 0 0 211 0 0 4,788 0 0 7 0 0 181 0 0 42 1,700 1,700 1,070 1,800 100 0 8,100 8,100 6,075 8,400 300 146 5,000 5,000 3,806 5,500 500 13,288 473,400 473,400 346,266 505,100 31,700 0 150,000 150,000 699 150,000 0 0 150,000 150,000 699 150,000 0 0 6,000 6,000 0 5,000 (1,000) 0 2,400 2,400 0 500 (1,900) 0 10,000 10,000 534 2,000 (8,000) 0 2,500 2,500 41 1,000 (1,500) 0 20,900 20,900 575 8,500 (12,400) 0 74,900 74,900 56,175 76,300 1,400 0 74,900 74,900 56,175 76,300 1,400 13,288 719,200 719,200 403,715 739,900 20,700 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 46 339 Department : 7001 - Public Works Administration Permanent Full Time 368,800.00101-7001-50101 100% - Public Works Director/City Engineer 100% - Management Analyst 100% - Management Assistant 100% - Administrative Assistant Consultants 150,000.00101-7001-60104 Professional services and on-call electrical services Travel & Training 5,000.00101-7001-60320 Certification trainings Membership Dues 500.00101-7001-60351 American Public Works Association (APWA) American Traffic Safety Services Association (ATSSA) CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 47 340 2019/20 Actual Expense 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed Budget 21/22 vs. Current 20/2 % Change in Budget 7002 - Public Works Development Services 50 - Salaries and Benefits 258,463 111,000 111,000 86,292 118,100 7,100 6 %101-7002-50101 Permanent Full Time 603 0 0 384 0 0 0 %101-7002-50150 Other Compensation 29,473 13,800 13,800 10,667 14,700 900 7 %101-7002-50200 PERS-City Portion 28,050 20,600 20,600 9,473 21,000 400 2 %101-7002-50221 Medical Insurance 290 0 0 82 0 0 0 %101-7002-50222 Vision Insurance 2,204 0 0 495 0 0 0 %101-7002-50223 Dental Insurance 118 0 0 28 0 0 0 %101-7002-50224 Life Insurance 1,032 600 600 394 600 0 0 %101-7002-50225 Long Term Disability 5,600 2,100 2,100 1,575 2,100 0 0 %101-7002-50230 Workers Comp Insurance 3,758 1,700 1,700 1,251 1,800 100 6 %101-7002-50240 Social Security-Medicare 736 0 0 0 0 0 0 %101-7002-50250 Vehicle Reimbursement 50 - Salaries and Benefits Totals:330,328 149,800 149,800 110,641 158,300 8,500 6 % 60 - Contract Services 64,112 85,000 85,000 11,238 85,000 0 0 %101-7002-60103 Professional Services 3,500 5,000 5,000 3,500 5,000 0 0 %101-7002-60104 Consultants 86,818 100,000 100,000 67,117 110,000 10,000 10 %101-7002-60183 Map/Plan Checking 60 - Contract Services Totals:154,430 190,000 190,000 81,855 200,000 10,000 5 % 62 - Maintenance & Operations 430 500 500 0 1,000 500 100 %101-7002-60320 Travel & Training 0 500 500 0 500 0 0 %101-7002-60351 Membership Dues 143 0 0 0 0 0 0 %101-7002-60410 Printing 242 500 500 0 500 0 0 %101-7002-60420 Operating Supplies 420 500 500 262 500 0 0 %101-7002-60450 Advertising 62 - Maintenance & Operations Totals:1,235 2,000 2,000 262 2,500 500 25 % 69 - Internal Service Charges 41,300 18,800 18,800 14,100 19,100 300 2 %101-7002-98110 Information Tech Charges 29,500 29,600 29,600 22,200 51,100 21,500 73 %101-7002-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:70,800 48,400 48,400 36,300 70,200 21,800 45 % 7002 - Public Works Development Services Totals:556,793 390,200 390,200 229,058 431,000 40,800 10 % 258,463 111,000 111,000 86,292 118,100 7,100 603 0 0 384 0 0 29,473 13,800 13,800 10,667 14,700 900 28,050 20,600 20,600 9,473 21,000 400 290 0 0 82 0 0 2,204 0 0 495 0 0 118 0 0 28 0 0 1,032 600 600 394 600 0 5,600 2,100 2,100 1,575 2,100 0 3,758 1,700 1,700 1,251 1,800 100 736 0 0 0 0 0 330,328 149,800 149,800 110,641 158,300 8,500 64,112 85,000 85,000 11,238 85,000 0 3,500 5,000 5,000 3,500 5,000 0 86,818 100,000 100,000 67,117 110,000 10,000 154,430 190,000 190,000 81,855 200,000 10,000 430 500 500 0 1,000 500 0 500 500 0 500 0 143 0 0 0 0 0 242 500 500 0 500 0 420 500 500 262 500 0 1,235 2,000 2,000 262 2,500 500 41,300 18,800 18,800 14,100 19,100 300 29,500 29,600 29,600 22,200 51,100 21,500 70,800 48,400 48,400 36,300 70,200 21,800 556,793 390,200 390,200 229,058 431,000 40,800 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 48 341 Department : 7002 - Public Works Development Services Permanent Full Time 118,100.00101-7002-50101 100% - Associate Engineer Professional Services 85,000.00101-7002-60103 Amount National Pollution Discharge Elimination Systems 60,000 Stormwater Commercial/Restaurant State Mandate 25,000 Consultants 5,000.00101-7002-60104 Amount Project consulting services 5,000 Map/Plan Checking 110,000.00101-7002-60183 On-call map checking and engineering civil plan check services Travel & Training 1,000.00101-7002-60320 For various training events including: Desert Valley Builders Association meetings, American Public Works Association, professional engineering review courses, and water quality/ flood seminars Membership Dues 500.00101-7002-60351 Amount Board of Civil Engineers license 300 Other professional organizations 200 Advertising 500.00101-7002-60450 Public hearing notices CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 49 342 2019/20 Actual Expense 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed Budget 21/22 vs. Current 20/2 % Change in Budget 7003 - Streets 50 - Salaries and Benefits 6,206 206,900 206,900 164,250 223,200 16,300 8 %101-7003-50101 Permanent Full Time 78 7,000 7,000 6,617 7,000 0 0 %101-7003-50106 Standby 0 2,500 2,500 90 2,700 200 8 %101-7003-50107 Standby Overtime 31 1,000 1,000 769 1,000 0 0 %101-7003-50150 Other Compensation 613 20,500 20,500 15,894 22,100 1,600 8 %101-7003-50200 PERS-City Portion 1,502 61,600 61,600 37,278 62,800 1,200 2 %101-7003-50221 Medical Insurance 19 0 0 465 0 0 0 %101-7003-50222 Vision Insurance 82 0 0 2,012 0 0 0 %101-7003-50223 Dental Insurance 3 0 0 84 0 0 0 %101-7003-50224 Life Insurance 30 1,200 1,200 764 1,300 100 8 %101-7003-50225 Long Term Disability 0 6,100 6,100 4,575 6,300 200 3 %101-7003-50230 Workers Comp Insurance 91 2,000 2,000 2,479 2,000 0 0 %101-7003-50240 Social Security-Medicare 50 - Salaries and Benefits Totals:8,655 308,800 308,800 235,275 328,400 19,600 6 % 60 - Contract Services 0 75,000 75,000 45,650 70,000 (5,000)-7 %101-7003-60103 Professional Services 0 0 20,000 6,448 10,000 (10,000)-50 %101-7003-60120 Street Cleaning/Accidents 60 - Contract Services Totals:0 75,000 95,000 52,098 80,000 (15,000) -16 % 62 - Maintenance & Operations 1,804 4,000 3,500 710 4,000 500 14 %101-7003-60320 Travel & Training 388 800 800 400 500 (300)-38 %101-7003-60351 Membership Dues 906 0 500 186 500 0 0 %101-7003-60400 Office Supplies 7,224 5,500 5,500 4,818 6,000 500 9 %101-7003-60420 Operating Supplies 7,168 19,000 8,600 5,232 15,000 6,400 74 %101-7003-60432 Tools/Equipment 62 - Maintenance & Operations Totals:17,490 29,300 18,900 11,346 26,000 7,100 38 % 64 - Other Expenses 0 15,000 5,000 0 5,000 0 0 %101-7003-60510 Signal Knockdowns, Contingency 64 - Other Expenses Totals:0 15,000 5,000 0 5,000 0 0 % 68 - Capital Expenses 97,035 0 10,400 11,257 0 (10,400)-100 %101-7003-80100 Machinery & Equipment 68 - Capital Expenses Totals:97,035 0 10,400 11,257 0 (10,400) -100 % 69 - Internal Service Charges 0 56,200 56,200 42,150 57,200 1,000 2 %101-7003-98110 Information Tech Charges 69 - Internal Service Charges Totals:0 56,200 56,200 42,150 57,200 1,000 2 % 7003 - Streets Totals:123,180 484,300 494,300 352,127 496,600 2,300 0 % 6,206 206,900 206,900 164,250 223,200 16,300 78 7,000 7,000 6,617 7,000 0 0 2,500 2,500 90 2,700 200 31 1,000 1,000 769 1,000 0 613 20,500 20,500 15,894 22,100 1,600 1,502 61,600 61,600 37,278 62,800 1,200 19 0 0 465 0 0 82 0 0 2,012 0 0 3 0 0 84 0 0 30 1,200 1,200 764 1,300 100 0 6,100 6,100 4,575 6,300 200 91 2,000 2,000 2,479 2,000 0 8,655 308,800 308,800 235,275 328,400 19,600 0 75,000 75,000 45,650 70,000 (5,000) 0 0 20,000 6,448 10,000 (10,000) 0 75,000 95,000 52,098 80,000 (15,000) 1,804 4,000 3,500 710 4,000 500 388 800 800 400 500 (300) 906 0 500 186 500 0 7,224 5,500 5,500 4,818 6,000 500 7,168 19,000 8,600 5,232 15,000 6,400 17,490 29,300 18,900 11,346 26,000 7,100 0 15,000 5,000 0 5,000 0 0 15,000 5,000 0 5,000 0 97,035 0 10,400 11,257 0 (10,400) 97,035 0 10,400 11,257 0 (10,400) 0 56,200 56,200 42,150 57,200 1,000 0 56,200 56,200 42,150 57,200 1,000 123,180 484,300 494,300 352,127 496,600 2,300 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 50 343 Department : 7003 - Streets Permanent Full Time 223,200.00101-7003-50101 100% - Traffic Operations Analyst 100% - Traffic Signal Technician (2) Professional Services 70,000.00101-7003-60103 Street division support services and unanticipated repairs such as sidewalks, sinkholes, asphalt, and drainage channels. Travel & Training 4,000.00101-7003-60320 Onsite hearing tests and American Traffic Safety Services Association Membership Dues 500.00101-7003-60351 CA Park and Recreations American Traffic Safety Services Association (ATSSA) Signal Knockdowns, Contingency 5,000.00101-7003-60510 For traffic signal repairs due to accidents CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 51 344 2019/20 Actual Expense 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed Budget 21/22 vs. Current 20/2 % Change in Budget 7006 - Engineering Services 50 - Salaries and Benefits 495,556 215,100 215,100 171,665 232,800 17,700 8 %101-7006-50101 Permanent Full Time 53 0 0 663 0 0 0 %101-7006-50105 Salaries - Overtime 15,910 9,000 9,000 6,997 9,000 0 0 %101-7006-50106 Standby 82 1,000 1,000 0 1,000 0 0 %101-7006-50107 Standby Overtime 1,477 500 500 384 500 0 0 %101-7006-50150 Other Compensation 39,584 16,600 16,600 12,871 18,000 1,400 8 %101-7006-50200 PERS-City Portion 90,909 61,600 61,600 30,092 62,800 1,200 2 %101-7006-50221 Medical Insurance 1,215 0 0 465 0 0 0 %101-7006-50222 Vision Insurance 6,930 0 0 3,099 0 0 0 %101-7006-50223 Dental Insurance 216 0 0 84 0 0 0 %101-7006-50224 Life Insurance 2,376 1,300 1,300 796 1,400 100 8 %101-7006-50225 Long Term Disability 13,100 6,100 6,100 4,575 6,300 200 3 %101-7006-50230 Workers Comp Insurance 7,409 3,200 3,200 2,635 3,500 300 9 %101-7006-50240 Social Security-Medicare 50 - Salaries and Benefits Totals:674,816 314,400 314,400 234,327 335,300 20,900 7 % 60 - Contract Services 59,376 0 20,000 10,000 10,000 (10,000)-50 %101-7006-60103 Professional Services 48,138 60,000 40,000 14,818 60,000 20,000 50 %101-7006-60104 Consultants 217,781 180,000 180,000 84,624 200,000 20,000 11 %101-7006-60144 Contract Traffic Engineer 400 30,000 30,000 0 20,000 (10,000)-33 %101-7006-60145 Traffic Counts/Studies 62,784 25,000 85,000 2,970 70,000 (15,000)-18 %101-7006-60146 PM 10 - Dust Control 60 - Contract Services Totals:388,478 295,000 355,000 112,412 360,000 5,000 1 % 62 - Maintenance & Operations 7,236 5,100 5,100 4,288 5,000 (100)-2 %101-7006-60320 Travel & Training 95 1,100 1,100 0 1,100 0 0 %101-7006-60351 Membership Dues 244 100 100 0 200 100 100 %101-7006-60352 Subscriptions & Publications 570 1,000 1,000 0 1,000 0 0 %101-7006-60420 Operating Supplies 855 1,500 3,500 409 1,000 (2,500)-71 %101-7006-60427 Safety Gear 191 500 1,800 1,739 1,000 (800)-44 %101-7006-60690 Uniforms 62 - Maintenance & Operations Totals:9,190 9,300 12,600 6,437 9,300 (3,300)-26 % 64 - Other Expenses 0 324,100 324,100 0 0 (324,100)-100 %101-7006-60480 Contributions to Other Agencies 64 - Other Expenses Totals:0 324,100 324,100 0 0 (324,100) -100 % 69 - Internal Service Charges 96,400 56,200 56,200 42,150 57,200 1,000 2 %101-7006-98110 Information Tech Charges 69 - Internal Service Charges Totals:96,400 56,200 56,200 42,150 57,200 1,000 2 % 7006 - Engineering Services Totals:1,168,884 999,000 1,062,300 395,326 761,800 (300,500) -28 % 495,556 215,100 215,100 171,665 232,800 17,700 53 0 0 663 0 0 15,910 9,000 9,000 6,997 9,000 0 82 1,000 1,000 0 1,000 0 1,477 500 500 384 500 0 39,584 16,600 16,600 12,871 18,000 1,400 90,909 61,600 61,600 30,092 62,800 1,200 1,215 0 0 465 0 0 6,930 0 0 3,099 0 0 216 0 0 84 0 0 2,376 1,300 1,300 796 1,400 100 13,100 6,100 6,100 4,575 6,300 200 7,409 3,200 3,200 2,635 3,500 300 674,816 314,400 314,400 234,327 335,300 20,900 59,376 0 20,000 10,000 10,000 (10,000) 48,138 60,000 40,000 14,818 60,000 20,000 217,781 180,000 180,000 84,624 200,000 20,000 400 30,000 30,000 0 20,000 (10,000) 62,784 25,000 85,000 2,970 70,000 (15,000) 388,478 295,000 355,000 112,412 360,000 5,000 7,236 5,100 5,100 4,288 5,000 (100) 95 1,100 1,100 0 1,100 0 244 100 100 0 200 100 570 1,000 1,000 0 1,000 0 855 1,500 3,500 409 1,000 (2,500) 191 500 1,800 1,739 1,000 (800) 9,190 9,300 12,600 6,437 9,300 (3,300) 0 324,100 324,100 0 0 (324,100) 0 324,100 324,100 0 0 (324,100) 96,400 56,200 56,200 42,150 57,200 1,000 96,400 56,200 56,200 42,150 57,200 1,000 1,168,884 999,000 1,062,300 395,326 761,800 (300,500) CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 52 345 Department : 7006 - Engineering Services Permanent Full Time 232,800.00101-7006-50101 100% - Assistant Construction Manager 100% - Construction Inspector (2) Professional Services 10,000.00101-7006-60103 Consultants 60,000.00101-7006-60104 Amount Project design services 60,000 PM 10 - Dust Control 70,000.00101-7006-60146 Vacant city land dust control - near SilverRock and on Highway 111 next to the Marriott Hotel. Travel & Training 5,000.00101-7006-60320 Amount Coachella Valley APWA meetings 300 Geographic Information Systems training 2,000 International Signal Association cert training 1,000 National Pollutant Discharge Elimination System 1,700 Membership Dues 1,100.00101-7006-60351 Amount American Public Works Association (APWA)500 American Society of Civil Engineers (ASCE)300 Institute of Transportation Engineers (ITE)300 Subscriptions & Publications 200.00101-7006-60352 Subdivision map act books CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 53 346 THIS PAGE INTENTIONALLY LEFT BLANK 347 2019/20 Actual Expense 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed Budget 21/22 vs. Current 20/2 % Change in Budget 6001 - Design & Development Administration 50 - Salaries and Benefits 480,935 250,400 300,400 230,313 274,400 (26,000)-9 %101-6001-50101 Permanent Full Time 0 0 0 34 0 0 0 %101-6001-50105 Salaries - Overtime 1,351 0 0 0 0 0 0 %101-6001-50106 Standby 7,200 8,400 8,400 5,400 8,400 0 0 %101-6001-50110 Commissions & Boards 978 500 500 589 500 0 0 %101-6001-50150 Other Compensation 40,453 25,000 25,000 17,440 25,500 500 2 %101-6001-50200 PERS-City Portion 86,974 61,600 61,600 38,379 62,800 1,200 2 %101-6001-50221 Medical Insurance 1,267 0 0 416 0 0 0 %101-6001-50222 Vision Insurance 9,842 0 0 2,450 0 0 0 %101-6001-50223 Dental Insurance 270 0 0 111 0 0 0 %101-6001-50224 Life Insurance 2,231 1,200 1,200 700 1,300 100 8 %101-6001-50225 Long Term Disability 13,100 6,100 6,100 4,575 6,300 200 3 %101-6001-50230 Workers Comp Insurance 7,140 3,900 3,900 3,418 4,300 400 10 %101-6001-50240 Social Security-Medicare 384 0 0 322 0 0 0 %101-6001-50241 Social Security-FICA 50 - Salaries and Benefits Totals:652,125 357,100 407,100 304,148 383,500 (23,600) -6 % 60 - Contract Services 6,087 15,000 15,000 0 10,000 (5,000)-33 %101-6001-60104 Consultants 44,091 20,000 100,000 89,529 110,000 10,000 10 %101-6001-60122 Credit Card Fees 60 - Contract Services Totals:50,178 35,000 115,000 89,529 120,000 5,000 4 % 62 - Maintenance & Operations 4,925 4,000 4,000 0 4,000 0 0 %101-6001-60320 Travel & Training 0 400 400 0 200 (200)-50 %101-6001-60351 Membership Dues 704 500 500 569 700 200 40 %101-6001-60352 Subscriptions & Publications 2,990 3,000 3,000 316 3,000 0 0 %101-6001-60400 Office Supplies 245 500 500 0 400 (100)-20 %101-6001-60410 Printing 964 1,000 1,000 0 1,000 0 0 %101-6001-60420 Operating Supplies 1,836 2,500 2,500 0 1,000 (1,500)-60 %101-6001-60450 Advertising 62 - Maintenance & Operations Totals:11,664 11,900 11,900 884 10,300 (1,600)-13 % 69 - Internal Service Charges 96,400 56,200 56,200 42,150 57,200 1,000 2 %101-6001-98110 Information Tech Charges 59,000 59,100 59,100 44,325 85,200 26,100 44 %101-6001-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:155,400 115,300 115,300 86,475 142,400 27,100 24 % 6001 - Design & Development Administration Totals:869,367 519,300 649,300 481,036 656,200 6,900 1 % 480,935 250,400 300,400 230,313 274,400 (26,000) 0 0 0 34 0 0 1,351 0 0 0 0 0 7,200 8,400 8,400 5,400 8,400 0 978 500 500 589 500 0 40,453 25,000 25,000 17,440 25,500 500 86,974 61,600 61,600 38,379 62,800 1,200 1,267 0 0 416 0 0 9,842 0 0 2,450 0 0 270 0 0 111 0 0 2,231 1,200 1,200 700 1,300 100 13,100 6,100 6,100 4,575 6,300 200 7,140 3,900 3,900 3,418 4,300 400 384 0 0 322 0 0 652,125 357,100 407,100 304,148 383,500 (23,600) 6,087 15,000 15,000 0 10,000 (5,000) 44,091 20,000 100,000 89,529 110,000 10,000 50,178 35,000 115,000 89,529 120,000 5,000 4,925 4,000 4,000 0 4,000 0 0 400 400 0 200 (200) 704 500 500 569 700 200 2,990 3,000 3,000 316 3,000 0 245 500 500 0 400 (100) 964 1,000 1,000 0 1,000 0 1,836 2,500 2,500 0 1,000 (1,500) 11,664 11,900 11,900 884 10,300 (1,600) 96,400 56,200 56,200 42,150 57,200 1,000 59,000 59,100 59,100 44,325 85,200 26,100 155,400 115,300 115,300 86,475 142,400 27,100 869,367 519,300 649,300 481,036 656,200 6,900 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 54 348 Department : 6001 - Design & Development Administration Permanent Full Time 274,400.00101-6001-50101 100% - Design & Development Director 100% - Administrative Assistant 100% - Administrative Technician (New in FY 21/22) In FY 2021/22, the Executive Assistant title was changed to Administrative Technician. Consultants 10,000.00101-6001-60104 Amount Disadvantaged Business Enterprise Program 5,000 Studies and predesign for projects 5,000 Travel & Training 4,000.00101-6001-60320 Amount Bureau of Indian Affairs (BIA) meetings 500 Coachella Valley APWA meetings 500 League of CA Cities PW Officers Institute 2,000 Staff professional development 1,000 Membership Dues 200.00101-6001-60351 Amount American Public Works Association (APWA)200 Subscriptions & Publications 700.00101-6001-60352 The Desert Sun Printing 400.00101-6001-60410 Materials for community events Advertising 1,000.00101-6001-60450 Public noticing requirements CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 55 349 2019/20 Actual Expense 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed Budget 21/22 vs. Current 20/2 % Change in Budget 6002 - Planning 50 - Salaries and Benefits 267,382 272,200 272,200 213,063 294,800 22,600 8 %101-6002-50101 Permanent Full Time 1,500 0 0 0 0 0 0 %101-6002-50111 Internships 407 0 0 1,153 0 0 0 %101-6002-50150 Other Compensation 18,653 21,100 21,100 16,366 22,800 1,700 8 %101-6002-50200 PERS-City Portion 40,565 61,600 61,600 34,889 62,800 1,200 2 %101-6002-50221 Medical Insurance 551 0 0 465 0 0 0 %101-6002-50222 Vision Insurance 2,475 0 0 2,311 0 0 0 %101-6002-50223 Dental Insurance 102 0 0 84 0 0 0 %101-6002-50224 Life Insurance 1,343 1,600 1,600 996 1,700 100 6 %101-6002-50225 Long Term Disability 5,600 6,100 6,100 4,575 6,300 200 3 %101-6002-50230 Workers Comp Insurance 3,899 4,000 4,000 3,089 4,400 400 10 %101-6002-50240 Social Security-Medicare 93 0 0 0 0 0 0 %101-6002-50241 Social Security-FICA 50 - Salaries and Benefits Totals:342,570 366,600 366,600 276,991 392,800 26,200 7 % 60 - Contract Services 113,758 80,000 180,000 38,525 210,000 30,000 17 %101-6002-60103 Professional Services 60 - Contract Services Totals:113,758 80,000 180,000 38,525 210,000 30,000 17 % 62 - Maintenance & Operations 3,851 4,000 4,000 2,537 8,000 4,000 100 %101-6002-60320 Travel & Training 350 1,000 1,000 375 500 (500)-50 %101-6002-60351 Membership Dues 357 100 100 0 100 0 0 %101-6002-60352 Subscriptions & Publications 5,037 6,000 6,000 8,188 10,000 4,000 67 %101-6002-60450 Advertising 62 - Maintenance & Operations Totals:9,596 11,100 11,100 11,099 18,600 7,500 68 % 69 - Internal Service Charges 41,300 56,200 56,200 42,150 57,200 1,000 2 %101-6002-98110 Information Tech Charges 69 - Internal Service Charges Totals:41,300 56,200 56,200 42,150 57,200 1,000 2 % 6002 - Planning Totals:507,224 513,900 613,900 368,765 678,600 64,700 11 % 267,382 272,200 272,200 213,063 294,800 22,600 1,500 0 0 0 0 0 407 0 0 1,153 0 0 18,653 21,100 21,100 16,366 22,800 1,700 40,565 61,600 61,600 34,889 62,800 1,200 551 0 0 465 0 0 2,475 0 0 2,311 0 0 102 0 0 84 0 0 1,343 1,600 1,600 996 1,700 100 5,600 6,100 6,100 4,575 6,300 200 3,899 4,000 4,000 3,089 4,400 400 93 0 0 0 0 0 342,570 366,600 366,600 276,991 392,800 26,200 113,758 80,000 180,000 38,525 210,000 30,000 113,758 80,000 180,000 38,525 210,000 30,000 3,851 4,000 4,000 2,537 8,000 4,000 350 1,000 1,000 375 500 (500) 357 100 100 0 100 0 5,037 6,000 6,000 8,188 10,000 4,000 9,596 11,100 11,100 11,099 18,600 7,500 41,300 56,200 56,200 42,150 57,200 1,000 41,300 56,200 56,200 42,150 57,200 1,000 507,224 513,900 613,900 368,765 678,600 64,700 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 56 350 Department : 6002 - Planning Permanent Full Time 294,800.00101-6002-50101 100% - Planning Manager 100% - Senior Planner 100% - Associate Planner Professional Services 210,000.00101-6002-60103 Professional planning Environmental services Specific plan amendments GIS consulting services Historical Survey Travel & Training 8,000.00101-6002-60320 Amount APA Conference - Planning Manager 1,500 APA Conference - Senior Planner 1,500 Other Training Events 1,000 Planning Commissioners Academy - League of Cities 4,000 Membership Dues 500.00101-6002-60351 Amount American Planning Association (APA)500 Subscriptions & Publications 100.00101-6002-60352 International Cost Engineering Council - CEQA books Advertising 10,000.00101-6002-60450 Planning hearing notices Outreach workshops CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 57 351 2019/20 Actual Expense 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed Budget 21/22 vs. Current 20/2 % Change in Budget 6003 - Building 50 - Salaries and Benefits 354,010 361,800 361,800 246,507 388,500 26,700 7 %101-6003-50101 Permanent Full Time 11,218 13,000 13,000 1,966 10,000 (3,000)-23 %101-6003-50105 Salaries - Overtime 2,018 2,000 2,000 1,538 2,000 0 0 %101-6003-50150 Other Compensation 28,874 32,600 32,600 22,133 35,000 2,400 7 %101-6003-50200 PERS-City Portion 84,252 102,600 102,600 59,585 104,600 2,000 2 %101-6003-50221 Medical Insurance 1,239 0 0 878 0 0 0 %101-6003-50222 Vision Insurance 4,442 0 0 3,341 0 0 0 %101-6003-50223 Dental Insurance 163 0 0 116 0 0 0 %101-6003-50224 Life Insurance 1,799 2,200 2,200 1,145 2,400 200 9 %101-6003-50225 Long Term Disability 11,200 10,100 10,100 7,575 10,500 400 4 %101-6003-50230 Workers Comp Insurance 5,467 5,300 5,300 3,985 5,800 500 9 %101-6003-50240 Social Security-Medicare 704 0 0 1,634 0 0 0 %101-6003-50241 Social Security-FICA 11,358 0 0 26,359 50,000 50,000 0 %101-6003-50251 Temporary 50 - Salaries and Benefits Totals:516,746 529,600 529,600 376,762 608,800 79,200 15 % 60 - Contract Services 136,314 100,000 110,000 50,427 140,000 30,000 27 %101-6003-60118 Plan Checks 60 - Contract Services Totals:136,314 100,000 110,000 50,427 140,000 30,000 27 % 62 - Maintenance & Operations 2,912 2,000 2,000 70 3,000 1,000 50 %101-6003-60320 Travel & Training 735 500 500 215 700 200 40 %101-6003-60351 Membership Dues 2,569 3,000 3,000 100 200 (2,800)-93 %101-6003-60352 Subscriptions & Publications 591 1,000 1,000 0 600 (400)-40 %101-6003-60420 Operating Supplies 851 1,000 1,000 37 1,000 0 0 %101-6003-60425 Supplies - Field 2,189 2,000 2,000 0 2,000 0 0 %101-6003-60690 Uniforms 62 - Maintenance & Operations Totals:9,847 9,500 9,500 422 7,500 (2,000)-21 % 69 - Internal Service Charges 82,600 93,600 93,600 70,200 95,400 1,800 2 %101-6003-98110 Information Tech Charges 44,200 44,400 44,400 33,300 68,100 23,700 53 %101-6003-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:126,800 138,000 138,000 103,500 163,500 25,500 18 % 6003 - Building Totals:789,707 777,100 787,100 531,110 919,800 132,700 17 % 354,010 361,800 361,800 246,507 388,500 26,700 11,218 13,000 13,000 1,966 10,000 (3,000) 2,018 2,000 2,000 1,538 2,000 0 28,874 32,600 32,600 22,133 35,000 2,400 84,252 102,600 102,600 59,585 104,600 2,000 1,239 0 0 878 0 0 4,442 0 0 3,341 0 0 163 0 0 116 0 0 1,799 2,200 2,200 1,145 2,400 200 11,200 10,100 10,100 7,575 10,500 400 5,467 5,300 5,300 3,985 5,800 500 704 0 0 1,634 0 0 11,358 0 0 26,359 50,000 50,000 516,746 529,600 529,600 376,762 608,800 79,200 136,314 100,000 110,000 50,427 140,000 30,000 136,314 100,000 110,000 50,427 140,000 30,000 2,912 2,000 2,000 70 3,000 1,000 735 500 500 215 700 200 2,569 3,000 3,000 100 200 (2,800) 591 1,000 1,000 0 600 (400) 851 1,000 1,000 37 1,000 0 2,189 2,000 2,000 0 2,000 0 9,847 9,500 9,500 422 7,500 (2,000) 82,600 93,600 93,600 70,200 95,400 1,800 44,200 44,400 44,400 33,300 68,100 23,700 126,800 138,000 138,000 103,500 163,500 25,500 789,707 777,100 787,100 531,110 919,800 132,700 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 58 352 Department : 6003 - Building Permanent Full Time 388,500.00101-6003-50101 100% - Building Official 100% - Building Inspector II (2) 100% - Building Inspector I 100% - Plans Examiner Plan Checks 140,000.00101-6003-60118 Consulting services as needed to support plan check review services Travel & Training 3,000.00101-6003-60320 CA Building Officials (CALBO) International Code Council certifications Membership Dues 700.00101-6003-60351 CA Building Officials (CALBO) International Association of Plumbing and Mechanical Officials (IAPMO) Subscriptions & Publications 200.00101-6003-60352 Updated California Building Code books and other professional subscriptions CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 59 353 2019/20 Actual Expense 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed Budget 21/22 vs. Current 20/2 % Change in Budget 6006 - The Hub 50 - Salaries and Benefits 528,392 455,300 455,300 318,979 477,700 22,400 5 %101-6006-50101 Permanent Full Time 2,804 0 0 53 0 0 0 %101-6006-50105 Salaries - Overtime 934 0 0 2,266 0 0 0 %101-6006-50150 Other Compensation 44,798 43,900 43,900 29,020 42,800 (1,100)-3 %101-6006-50200 PERS-City Portion 117,768 143,600 143,600 81,006 146,400 2,800 2 %101-6006-50221 Medical Insurance 1,561 0 0 1,169 0 0 0 %101-6006-50222 Vision Insurance 8,813 0 0 5,280 0 0 0 %101-6006-50223 Dental Insurance 277 0 0 170 0 0 0 %101-6006-50224 Life Insurance 2,567 2,600 2,600 1,492 2,700 100 4 %101-6006-50225 Long Term Disability 15,000 14,100 14,100 10,575 14,700 600 4 %101-6006-50230 Workers Comp Insurance 7,702 6,600 6,600 4,626 7,000 400 6 %101-6006-50240 Social Security-Medicare 50 - Salaries and Benefits Totals:730,616 666,100 666,100 454,637 691,300 25,200 4 % 60 - Contract Services 55,209 100,000 125,000 41,200 100,000 (25,000)-20 %101-6006-60103 Professional Services 72,958 0 32,000 33,007 50,000 18,000 56 %101-6006-60125 Temporary Agency Services 60 - Contract Services Totals:128,167 100,000 157,000 74,207 150,000 (7,000)-4 % 62 - Maintenance & Operations 0 1,000 1,000 0 1,000 0 0 %101-6006-60137 Community Special Events 835 1,500 1,500 25 2,000 500 33 %101-6006-60320 Travel & Training 100 200 200 125 200 0 0 %101-6006-60351 Membership Dues 3,604 4,500 4,500 943 4,000 (500)-11 %101-6006-60420 Operating Supplies 2,024 4,000 4,000 3,252 4,000 0 0 %101-6006-60450 Advertising 62 - Maintenance & Operations Totals:6,563 11,200 11,200 4,345 11,200 0 0 % 69 - Internal Service Charges 110,200 131,000 131,000 98,250 133,500 2,500 2 %101-6006-98110 Information Tech Charges 69 - Internal Service Charges Totals:110,200 131,000 131,000 98,250 133,500 2,500 2 % 6006 - The Hub Totals:975,546 908,300 965,300 631,440 986,000 20,700 2 % 528,392 455,300 455,300 318,979 477,700 22,400 2,804 0 0 53 0 0 934 0 0 2,266 0 0 44,798 43,900 43,900 29,020 42,800 (1,100) 117,768 143,600 143,600 81,006 146,400 2,800 1,561 0 0 1,169 0 0 8,813 0 0 5,280 0 0 277 0 0 170 0 0 2,567 2,600 2,600 1,492 2,700 100 15,000 14,100 14,100 10,575 14,700 600 7,702 6,600 6,600 4,626 7,000 400 730,616 666,100 666,100 454,637 691,300 25,200 55,209 100,000 125,000 41,200 100,000 (25,000) 72,958 0 32,000 33,007 50,000 18,000 128,167 100,000 157,000 74,207 150,000 (7,000) 0 1,000 1,000 0 1,000 0 835 1,500 1,500 25 2,000 500 100 200 200 125 200 0 3,604 4,500 4,500 943 4,000 (500) 2,024 4,000 4,000 3,252 4,000 0 6,563 11,200 11,200 4,345 11,200 0 110,200 131,000 131,000 98,250 133,500 2,500 110,200 131,000 131,000 98,250 133,500 2,500 975,546 908,300 965,300 631,440 986,000 20,700 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 60 354 Department : 6006 - The Hub Permanent Full Time 477,700.00101-6006-50101 100% - Hub Manager 100% - Permit Technician (5) 100% - Administrative Assistant Professional Services 100,000.00101-6006-60103 Short-term vacation rental compliance vendor Temporary Agency Services 50,000.00101-6006-60125 Temporary sequel report writer to assist with configuration of software system and assistance with business licenses. Community Special Events 1,000.00101-6006-60137 Short-term vacation rental community meetings Travel & Training 2,000.00101-6006-60320 Amount Permit Technician training 2,000 Membership Dues 200.00101-6006-60351 Amount TRAKiT membership 200 Advertising 4,000.00101-6006-60450 For short-term vacation mailers CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 61 355 2019/20 Actual Expense 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed Budget 21/22 vs. Current 20/2 % Change in Budget 1006 - Finance 50 - Salaries and Benefits 682,275 742,800 742,800 594,493 764,900 22,100 3 %101-1006-50101 Permanent Full Time 323 0 0 252 0 0 0 %101-1006-50105 Salaries - Overtime 1,600 3,600 3,600 1,850 2,700 (900)-25 %101-1006-50110 Commissions & Boards 1,500 0 0 0 0 0 0 %101-1006-50111 Internships 1,384 500 500 2,915 500 0 0 %101-1006-50150 Other Compensation 56,698 71,700 71,700 50,700 69,600 (2,100)-3 %101-1006-50200 PERS-City Portion 2,354 2,400 2,400 1,874 2,400 0 0 %101-1006-50215 Other Fringe Benefits 130,977 182,600 182,600 111,016 186,100 3,500 2 %101-1006-50221 Medical Insurance 1,825 0 0 1,492 0 0 0 %101-1006-50222 Vision Insurance 7,050 0 0 6,246 0 0 0 %101-1006-50223 Dental Insurance 292 0 0 246 0 0 0 %101-1006-50224 Life Insurance 3,096 4,000 4,000 2,475 4,300 300 8 %101-1006-50225 Long Term Disability 14,800 16,400 16,400 12,300 17,600 1,200 7 %101-1006-50230 Workers Comp Insurance 10,205 10,800 10,800 8,676 11,300 500 5 %101-1006-50240 Social Security-Medicare 192 0 0 115 0 0 0 %101-1006-50241 Social Security-FICA 16,000 0 0 0 0 0 0 %101-1006-50300 Employee Recognition 50 - Salaries and Benefits Totals:930,571 1,034,800 1,034,800 794,648 1,059,400 24,600 2 % 60 - Contract Services 1,021 20,000 20,000 4,938 20,000 0 0 %101-1006-60102 Administration 32,961 49,000 79,000 14,050 62,000 (17,000)-22 %101-1006-60103 Professional Services 33,176 40,000 40,000 36,474 40,000 0 0 %101-1006-60104 Consultants 55,925 65,000 65,000 21,500 65,000 0 0 %101-1006-60106 Auditors 600 500 500 4,441 3,000 2,500 500 %101-1006-60122 Credit Card Fees 1,741 0 0 0 0 0 0 %101-1006-60125 Temporary Agency Services 60 - Contract Services Totals:125,424 174,500 204,500 81,403 190,000 (14,500) -7 % 62 - Maintenance & Operations 1,758 1,500 500 0 1,500 1,000 200 %101-1006-60137 Community Engagement 14,532 5,000 6,000 3,131 10,000 4,000 67 %101-1006-60320 Travel & Training 2,920 2,000 2,000 2,630 3,000 1,000 50 %101-1006-60351 Membership Dues 2,050 1,500 1,500 2,150 2,200 700 47 %101-1006-60352 Subscriptions & Publications 3,159 2,500 2,500 854 2,500 0 0 %101-1006-60400 Office Supplies 4,962 4,000 4,000 2,285 5,000 1,000 25 %101-1006-60410 Printing 0 0 0 120 0 0 0 %101-1006-60420 Operating Supplies 1,067 1,000 1,000 0 1,000 0 0 %101-1006-60450 Advertising 62 - Maintenance & Operations Totals:30,448 17,500 17,500 11,170 25,200 7,700 44 % 69 - Internal Service Charges 107,900 166,600 166,600 124,950 168,500 1,900 1 %101-1006-98110 Information Tech Charges 69 - Internal Service Charges Totals:107,900 166,600 166,600 124,950 168,500 1,900 1 % 1006 - Finance Totals:1,194,343 1,393,400 1,423,400 1,012,172 1,443,100 19,700 1 % 682,275 742,800 742,800 594,493 764,900 22,100 323 0 0 252 0 0 1,600 3,600 3,600 1,850 2,700 (900) 1,500 0 0 0 0 0 1,384 500 500 2,915 500 0 56,698 71,700 71,700 50,700 69,600 (2,100) 2,354 2,400 2,400 1,874 2,400 0 130,977 182,600 182,600 111,016 186,100 3,500 1,825 0 0 1,492 0 0 7,050 0 0 6,246 0 0 292 0 0 246 0 0 3,096 4,000 4,000 2,475 4,300 300 14,800 16,400 16,400 12,300 17,600 1,200 10,205 10,800 10,800 8,676 11,300 500 192 0 0 115 0 0 16,000 0 0 0 0 0 930,571 1,034,800 1,034,800 794,648 1,059,400 24,600 1,021 20,000 20,000 4,938 20,000 0 32,961 49,000 79,000 14,050 62,000 (17,000) 33,176 40,000 40,000 36,474 40,000 0 55,925 65,000 65,000 21,500 65,000 0 600 500 500 4,441 3,000 2,500 1,741 0 0 0 0 0 125,424 174,500 204,500 81,403 190,000 (14,500) 1,758 1,500 500 0 1,500 1,000 14,532 5,000 6,000 3,131 10,000 4,000 2,920 2,000 2,000 2,630 3,000 1,000 2,050 1,500 1,500 2,150 2,200 700 3,159 2,500 2,500 854 2,500 0 4,962 4,000 4,000 2,285 5,000 1,000 0 0 0 120 0 0 1,067 1,000 1,000 0 1,000 0 30,448 17,500 17,500 11,170 25,200 7,700 107,900 166,600 166,600 124,950 168,500 1,900 107,900 166,600 166,600 124,950 168,500 1,900 1,194,343 1,393,400 1,423,400 1,012,172 1,443,100 19,700 CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 62 356 Department : 1006 - Finance Permanent Full Time 764,900.00101-1006-50101 90% - Finance Director (10% Housing Fund) 100% - Financial Services Analyst 100% - Accounting Manager 100% - Accountant 100% - Junior Accountant 100% - Account Technician (3) 100% - Management Assistant Administration 20,000.00101-1006-60102 Bank service fees Fiscal custodian fees (added in FY 20/21) Professional Services 62,000.00101-1006-60103 Amount Annual Budget-at-a-Glance 4,000 Armored Car Services 3,000 Financial Advisory Commission Subcommittee Support 5,000 OPEB annual third-party valuation, retiree health 6,000 Pension Plan Review Consulting Services 10,000 Professional accounting support 20,000 State Controller's Report - Citywide 4,000 Third party audits & policy verifications 10,000 Consultants 40,000.00101-1006-60104 Amount Property tax revenue analysis 22,000 Sales tax revenue analysis 18,000 Community Engagement 1,500.00101-1006-60137 Community workshop Travel & Training 10,000.00101-1006-60320 Amount 1,200 2,500 Annual GASB update training (4 employees) CSMFO annual conference Incode Training - Financial Software 3,300 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 63 357 Various half-day classes: CSMFO, GFOA, CAPPO 3,000 Membership Dues 3,000.00101-1006-60351 CA Municipal Finance Officers Association (CSMFO) CA Municipal Treasurer Association (CMTA) Government Finance Officers Association (GFOA) CA Assoc. of Public Procurement Officials (CAPPO) UCLA Economic Forecast Subscriptions & Publications 2,200.00101-1006-60352 Annual Comprehensive Financial Report (ACFR) statistical data reports Printing 5,000.00101-1006-60410 Accounts Payable and Payroll checks Budget and financial reports - covers and tabs Financial Advisory Commission reports Advertising 1,000.00101-1006-60450 Newspaper advertisements for surplus sales and Request for Proposals CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 64 358 2019/20 Actual Expense 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed Budget 21/22 vs. Current 20/2 % Change in Budget 1007 - Central Services 50 - Salaries and Benefits 95,988 150,000 190,000 104,946 150,000 (40,000)-21 %101-1007-50109 Vacation & Sick Leave Buy Back 0 400,000 578,100 0 400,000 (178,100)-31 %101-1007-50115 Contingency for Stafffing 864,125 977,100 977,100 944,158 977,100 0 0 %101-1007-50117 PERS - Unfunded Pension Liability 3,460,000 0 0 0 0 0 0 %101-1007-50118 Pension Trust Contribution 0 0 0 270 0 0 0 %101-1007-50180 Natural Disaster - FEMA 1,392 0 0 1,522 0 0 0 %101-1007-50240 Social Security-Medicare 34,925 36,000 36,000 28,231 36,000 0 0 %101-1007-50243 Employer Contrib Retiree Med PERS 38,401 30,000 30,000 60,323 100,000 70,000 233 %101-1007-50244 State Unemployment Insurance 50 - Salaries and Benefits Totals:4,494,831 1,593,100 1,811,200 1,139,449 1,663,100 (148,100) -8 % 62 - Maintenance & Operations 120 200 200 120 200 0 0 %101-1007-60351 Membership Dues 375 1,000 1,000 121 1,000 0 0 %101-1007-60401 Operating Supplies 5,683 10,000 10,000 2,395 5,000 (5,000)-50 %101-1007-60402 Forms, Copier Paper 11,368 12,000 8,000 2,161 8,000 0 0 %101-1007-60403 Citywide Conf Room Supplies 363 2,000 2,000 0 1,000 (1,000)-50 %101-1007-60405 Miscellaneous Supplies 21,533 27,000 27,000 14,159 25,000 (2,000)-7 %101-1007-60470 Postage 52,944 40,000 40,000 48,229 55,000 15,000 38 %101-1007-60535 Sales Tax Reimbursements 0 100,000 200,000 50,000 100,000 (100,000)-50 %101-1007-60536 TOT Resort Rebate Program 10,633 9,000 13,000 5,997 13,000 0 0 %101-1007-60661 Postage Machine 379 0 0 379 0 0 0 %101-1007-60663 Typewriters 62 - Maintenance & Operations Totals:103,397 201,200 301,200 123,559 208,200 (93,000) -31 % 64 - Other Expenses 87,769 0 75,000 40,291 0 (75,000)-100 %101-1007-60195 Coronavirus Expenses 64 - Other Expenses Totals:87,769 0 75,000 40,291 0 (75,000) -100 % 68 - Capital Expenses 327,338 0 0 0 0 0 0 %101-1007-60500 Loss on Disposal 463,166 0 636,800 362,632 0 (636,800)-100 %101-1007-71050 Buildings 2,980 5,000 165,000 0 10,000 (155,000)-94 %101-1007-74010 Land Acquisition 68 - Capital Expenses Totals:793,484 5,000 801,800 362,632 10,000 (791,800) -99 % 69 - Internal Service Charges 440,000 460,000 460,000 345,000 529,000 69,000 15 %101-1007-91842 Liability Insurance & Claims 28,000 22,200 22,200 16,650 25,500 3,300 15 %101-1007-91843 Property & Crime Insurance 86,000 82,800 82,800 62,100 67,000 (15,800)-19 %101-1007-91844 Earthquake Insurance 68,900 93,600 93,600 70,200 95,400 1,800 2 %101-1007-98110 Information Tech Charges 44,200 44,300 44,300 33,225 67,650 23,350 53 %101-1007-98140 Facility & Fleet Maintenance 69 - Internal Service Charges Totals:667,100 702,900 702,900 527,175 784,550 81,650 12 % 99 - Transfers Out 10,925,087 3,951,900 19,175,275 3,505,579 6,717,356 (12,457,919)-65 %101-1007-99900 Transfers Out 99 - Transfers Out Totals:10,925,087 3,951,900 19,175,275 3,505,579 6,717,356 (12,457,919) -65 % 1007 - Central Services Totals:17,071,668 6,454,100 22,867,375 5,698,685 9,383,206 (13,484,169) -59 % 95,988 150,000 190,000 104,946 150,000 (40,000) 0 400,000 578,100 0 400,000 (178,100) 864,125 977,100 977,100 944,158 977,100 0 3,460,000 0 0 0 0 0 0 0 0 270 0 0 1,392 0 0 1,522 0 0 34,925 36,000 36,000 28,231 36,000 0 38,401 30,000 30,000 60,323 100,000 70,000 4,494,831 1,593,100 1,811,200 1,139,449 1,663,100 (148,100) 120 200 200 120 200 0 375 1,000 1,000 121 1,000 0 5,683 10,000 10,000 2,395 5,000 (5,000) 11,368 12,000 8,000 2,161 8,000 0 363 2,000 2,000 0 1,000 (1,000) 21,533 27,000 27,000 14,159 25,000 (2,000) 52,944 40,000 40,000 48,229 55,000 15,000 0 100,000 200,000 50,000 100,000 (100,000) 10,633 9,000 13,000 5,997 13,000 0 379 0 0 379 0 0 103,397 201,200 301,200 123,559 208,200 (93,000) 87,769 0 75,000 40,291 0 (75,000) 87,769 0 75,000 40,291 0 (75,000) 327,338 0 0 0 0 0 463,166 0 636,800 362,632 0 (636,800) 2,980 5,000 165,000 0 10,000 (155,000) 793,484 5,000 801,800 362,632 10,000 (791,800) 440,000 460,000 460,000 345,000 529,000 69,000 28,000 22,200 22,200 16,650 25,500 3,300 86,000 82,800 82,800 62,100 67,000 (15,800) 68,900 93,600 93,600 70,200 95,400 1,800 44,200 44,300 44,300 33,225 67,650 23,350 667,100 702,900 702,900 527,175 784,550 81,650 10,925,087 3,951,900 19,175,275 3,505,579 6,717,356 (12,457,919) 10,925,087 3,951,900 19,175,275 3,505,579 6,717,356 (12,457,919) 17,071,668 6,454,100 22,867,375 5,698,685 9,383,206 (13,484,169) CITY OF LA QUINTA GENERAL FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 65 359 Department : 1007 - Central Services Contingency for Stafffing 400,000.00101-1007-50115 - Workforce flexibility - Work within Class and Compensation structure - Manage CalPERS increases - Ensure job rates reflect market rates PERS - Unfunded Pension Liabili…977,100.00101-1007-50117 Annual minimum CalPERS requirement to long-term pension liability. Based on valuation reports - inflation assumed at 2.5% with discount rate of 7%. Contribution per pension tier is as follows: Tier 1 - Classic $952,100 Tier 2 - $5,600 PEPRA Tier - $19,400 State Unemployment Insurance 100,000.00101-1007-50244 Expense moved from Human Resources budget to Centralized Services in 2019/20. Increase anticipated in 2021/22 as furloughs from COVID-19 impacts continue to impact staffing levels. Membership Dues 200.00101-1007-60351 Costco membership Sales Tax Reimbursements 55,000.00101-1007-60535 Eight year sales tax sharing agreement approved on 9/9/2014 with One Eleven La Quinta LLC (Hobby Lobby). Quarterly payments of 50% of any sales tax generated by Hobby Lobby, not to exceed $400,000 or 12/31/2022. TOT Resort Rebate Program 100,000.00101-1007-60536 To promote new tourism activities within the City and encourage citywide participation and innovation proposals; rebate for hotels collecting resort fees up to $50,000 per proposal. Land Acquisition 10,000.00101-1007-74010 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 66 360 Engineering maps, property survey & title search services Transfers Out 6,717,356.00101-1007-99900 Amount Art in Public Places - Maintenance/Installation 50,000 CIP GF - Citywide Drainage Enhancements 477,000 CIP GF - Citywide PMP Street Improvements 1,500,000 CIP GF - LLD Median Improvements 500,000 CIP GF - Sidewalk & ADA Ramp Improvements 75,000 Gas Tax Fund - Supplement Operations 90,000 Law Enforcement Fund - Deceased LQ Officers 2,000 LLD Fund - Supplement Maint. Operations 785,000 Measure G - Fritz Burns Park Improvements 350,000 Measure G - Hwy 111 Corridor Implementation 1,000,000 Measure G - Landscape Renovations 1,408,356 PARS Supplemental Pension Plan 5,000 SilverRock Resort 475,000 CITY OF LA QUINTA GENERAL FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 67 361 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed 21/22 vs. Current 20/21 % Change in Budget 501 - FACILITY & FLEET REPLACEMENT 0000 - Undesignated 62 - Maintenance & Operations 60,000 60,000 50,294 70,000 10,000 17 %501-0000-60674 Fuel & Oil 10,000 10,000 5,551 10,000 0 0 %501-0000-60675 Parts & Maintenance Supplies 40,000 40,000 8,442 35,000 (5,000)-13 %501-0000-60676 Vehicle Repair & Maintenance 5,000 5,000 564 5,000 0 0 %501-0000-60678 Street Sweeper 10,000 10,000 4,392 10,000 0 0 %501-0000-60679 Motorcycle Repair & Maintenance 62 - Maintenance & Operations Totals:125,000 125,000 69,244 130,000 5,000 4 % 63 - Insurance 12,500 12,500 9,375 13,750 1,250 10 %501-0000-91843 Property & Crime Insurance 63 - Insurance Totals:12,500 12,500 9,375 13,750 1,250 10 % 68 - Capital Expenses 25,000 25,000 0 5,000 (20,000)-80 %501-0000-71020 Furniture 240,000 240,000 179,370 100,000 (140,000)-58 %501-0000-71030 Vehicles, Rentals & Leases 0 60,000 0 600,000 540,000 900 %501-0000-71031 Vehicles, Purchased 40,000 40,000 33,974 40,000 0 0 %501-0000-71032 Building Leases 150,000 300,000 53,858 50,000 (250,000)-83 %501-0000-71103 City Bldg Repl/Repair 45,000 45,000 0 50,000 5,000 11 %501-0000-71111 Deprec Exp - Mach & Equip 40,000 40,000 0 25,000 (15,000)-38 %501-0000-71112 Depreciation Expense - Buildings & Improvements 70,000 70,000 0 100,000 30,000 43 %501-0000-71113 Depreciation Expense - Vehicles 5,000 5,000 0 5,000 0 0 %501-0000-71114 Depreciation Expense - Motorcycle 100,000 100,000 6,474 54,000 (46,000)-46 %501-0000-80100 Machinery & Equipment 68 - Capital Expenses Totals:715,000 925,000 273,675 1,029,000 104,000 11 % 99 - Transfers Out 50,000 81,964 0 50,000 (31,964)-39 %501-0000-99900 Transfers Out 99 - Transfers Out Totals:50,000 81,964 0 50,000 (31,964)-39 % 0000 - Undesignated Totals:902,500 1,144,464 352,294 1,222,750 78,286 7 % 501 - FACILITY & FLEET REPLACEMENT Totals:902,500 1,144,464 352,294 1,222,750 78,286 7 % 60,000 60,000 50,294 70,000 10,000 10,000 10,000 5,551 10,000 0 40,000 40,000 8,442 35,000 (5,000) 5,000 5,000 564 5,000 0 10,000 10,000 4,392 10,000 0 125,000 125,000 69,244 130,000 5,000 12,500 12,500 9,375 13,750 1,250 12,500 12,500 9,375 13,750 1,250 25,000 25,000 0 5,000 (20,000) 240,000 240,000 179,370 100,000 (140,000) 0 60,000 0 600,000 540,000 40,000 40,000 33,974 40,000 0 150,000 300,000 53,858 50,000 (250,000) 45,000 45,000 0 50,000 5,000 40,000 40,000 0 25,000 (15,000) 70,000 70,000 0 100,000 30,000 5,000 5,000 0 5,000 0 100,000 100,000 6,474 54,000 (46,000) 715,000 925,000 273,675 1,029,000 104,000 50,000 81,964 0 50,000 (31,964) 50,000 81,964 0 50,000 (31,964) 902,500 1,144,464 352,294 1,222,750 78,286 902,500 1,144,464 352,294 1,222,750 78,286 CITY OF LA QUINTA INTERNAL SERVICE FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 68 362 Fund: 501 - FACILITY & FLEET REPLACEMENT Vehicles, Rentals & Leases 100,000.00501-0000-71030 The majority of City vehicles are leased through Enterprise. City Bldg Repl/Repair 50,000.00501-0000-71103 Amount Building Repairs 50,000 Machinery & Equipment 54,000.00501-0000-80100 39" Smooth roller $40,000 Warn winch $6,000 Trencher attachment $8,000 CITY OF LA QUINTA INTERNAL SERVICE FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 69 363 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed 21/22 vs. Current 20/21 % Change in Budget 502 - INFORMATION TECHNOLOGY 0000 - Undesignated 50 - Salaries and Benefits 33,300 33,300 31,056 33,300 0 0 %502-0000-50101 Permanent Full Time 1,200 1,200 2,275 2,900 1,700 142 %502-0000-50200 PERS-City Portion 8,300 8,300 5,946 8,300 0 0 %502-0000-50221 Medical Insurance 0 0 91 0 0 0 %502-0000-50222 Vision Insurance 0 0 521 0 0 0 %502-0000-50223 Dental Insurance 0 0 11 0 0 0 %502-0000-50224 Life Insurance 200 200 123 200 0 0 %502-0000-50225 Long Term Disability 500 500 450 500 0 0 %502-0000-50240 Social Security-Medicare 50 - Salaries and Benefits Totals:43,500 43,500 40,474 45,200 1,700 4 % 60 - Contract Services 450,000 450,000 264,295 450,000 0 0 %502-0000-60104 Consultants 37,000 67,000 55,257 65,000 (2,000)-3 %502-0000-60108 Technical 5,000 5,000 4,244 6,000 1,000 20 %502-0000-60300 Maintenance Agreements 465,000 565,000 342,529 600,000 35,000 6 %502-0000-60301 Software Licenses 60 - Contract Services Totals:957,000 1,087,000 666,324 1,121,000 34,000 3 % 62 - Maintenance & Operations 500 500 0 500 0 0 %502-0000-60320 Travel & Training 200 200 0 0 (200)-100 %502-0000-60351 Membership Dues 10,000 10,000 1,251 5,000 (5,000)-50 %502-0000-60420 Operating Supplies 80,000 80,000 35,495 80,000 0 0 %502-0000-60662 Copiers 62 - Maintenance & Operations Totals:90,700 90,700 36,746 85,500 (5,200)-6 % 66 - Utilities 100,000 100,000 25,400 30,000 (70,000)-70 %502-0000-61300 Telephone - Utilities 65,000 65,000 33,425 50,000 (15,000)-23 %502-0000-61301 Cell/Mobile Phones 40,000 40,000 31,647 40,000 0 0 %502-0000-61400 Cable - Utilities 66 - Utilities Totals:205,000 205,000 90,471 120,000 (85,000)-41 % 68 - Capital Expenses 30,000 60,000 7,459 20,000 (40,000)-67 %502-0000-71042 D & D, Software Enhancements 11,000 11,000 7,948 10,000 (1,000)-9 %502-0000-71043 Comm. Resources, Software Enhancements 5,000 5,000 0 5,000 0 0 %502-0000-71045 Finance, Software Enhancements 15,000 15,000 14,121 5,000 (10,000)-67 %502-0000-71047 City Clerk, Software Enhancements 100,000 100,000 13,443 10,000 (90,000)-90 %502-0000-71048 Public Works, Software Enhancements 20,000 20,000 0 5,000 (15,000)-75 %502-0000-71110 Depreciation Expense 65,000 65,000 0 60,000 (5,000)-8 %502-0000-71111 Deprec Exp - Mach & Equip 57,000 57,000 0 70,000 13,000 23 %502-0000-71115 Depreciation Expense - Software 25,000 105,000 17,469 150,000 45,000 43 %502-0000-80100 Machinery & Equipment 60,000 60,000 45,080 80,000 20,000 33 %502-0000-80103 Computers 68 - Capital Expenses Totals:388,000 498,000 105,520 415,000 (83,000)-17 % 0000 - Undesignated Totals:1,684,200 1,924,200 939,536 1,786,700 (137,500)-7 % 502 - INFORMATION TECHNOLOGY Totals:1,684,200 1,924,200 939,536 1,786,700 (137,500)-7 % 33,300 33,300 31,056 33,300 0 1,200 1,200 2,275 2,900 1,700 8,300 8,300 5,946 8,300 0 0 0 91 0 0 0 0 521 0 0 0 0 11 0 0 200 200 123 200 0 500 500 450 500 0 43,500 43,500 40,474 45,200 1,700 450,000 450,000 264,295 450,000 0 37,000 67,000 55,257 65,000 (2,000) 5,000 5,000 4,244 6,000 1,000 465,000 565,000 342,529 600,000 35,000 957,000 1,087,000 666,324 1,121,000 34,000 500 500 0 500 0 200 200 0 0 (200) 10,000 10,000 1,251 5,000 (5,000) 80,000 80,000 35,495 80,000 0 90,700 90,700 36,746 85,500 (5,200) 100,000 100,000 25,400 30,000 (70,000) 65,000 65,000 33,425 50,000 (15,000) 40,000 40,000 31,647 40,000 0 205,000 205,000 90,471 120,000 (85,000) 30,000 60,000 7,459 20,000 (40,000) 11,000 11,000 7,948 10,000 (1,000) 5,000 5,000 0 5,000 0 15,000 15,000 14,121 5,000 (10,000) 100,000 100,000 13,443 10,000 (90,000) 20,000 20,000 0 5,000 (15,000) 65,000 65,000 0 60,000 (5,000) 57,000 57,000 0 70,000 13,000 25,000 105,000 17,469 150,000 45,000 60,000 60,000 45,080 80,000 20,000 388,000 498,000 105,520 415,000 (83,000) 1,684,200 1,924,200 939,536 1,786,700 (137,500) 1,684,200 1,924,200 939,536 1,786,700 (137,500) CITY OF LA QUINTA INTERNAL SERVICE FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 70 364 Fund: 502 - INFORMATION TECHNOLOGY Permanent Full Time 34,100.00502-0000-50101 40% - Management Analyst (60% Housing Fund) Consultants 450,000.00502-0000-60104 Contracted information technology services Technical 65,000.00502-0000-60108 Cable services, wireless access points, modems, and virtual servers Travel & Training 500.00502-0000-60320 Fraud prevention, firewall, encryption, coding, and other IT-related trainings Operating Supplies 5,000.00502-0000-60420 Small equipment such as keyboards, computer mouses, cables, conference room TV's, speakers, docking stations, etc. D & D, Software Enhancements 20,000.00502-0000-71042 Amount AutoCad licenses 5,000 Permit software upgrades 15,000 Comm. Resources, Software Enh…10,000.00502-0000-71043 Amount Software enhancements 10,000 Finance, Software Enhancements 5,000.00502-0000-71045 Amount Scanner for Tyler 1,000 Tyler upgrades for Payroll processing 4,000 City Clerk, Software Enhanceme…5,000.00502-0000-71047 CITY OF LA QUINTA INTERNAL SERVICE FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 71 365 Amount LaserFiche system upgrades 5,000 Machinery & Equipment 150,000.00502-0000-80100 Upgrades to City Council chambers recording and audio visual equipment and other miscellaneous upgrades for phones and work stations CITY OF LA QUINTA INTERNAL SERVICE FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 72 366 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed 21/22 vs. Current 20/21 % Change in Budget 503 - PARK EQUIP & FACILITY FUND 0000 - Undesignated 68 - Capital Expenses 65,000 65,000 49,298 105,000 40,000 62 %503-0000-71060 Parks 530,000 530,000 0 0 (530,000)-100 %503-0000-71122 Depreciation Expense - Community Services 68 - Capital Expenses Totals:595,000 595,000 49,298 105,000 (490,000)-82 % 99 - Transfers Out 0 87,986 83,339 0 (87,986)-100 %503-0000-99900 Transfers Out 99 - Transfers Out Totals:0 87,986 83,339 0 (87,986)-100 % 0000 - Undesignated Totals:595,000 682,986 132,636 105,000 (577,986)-85 % 503 - PARK EQUIP & FACILITY FUND Totals:595,000 682,986 132,636 105,000 (577,986)-85 % 65,000 65,000 49,298 105,000 40,000 530,000 530,000 0 0 (530,000) 595,000 595,000 49,298 105,000 (490,000) 0 87,986 83,339 0 (87,986) 0 87,986 83,339 0 (87,986) 595,000 682,986 132,636 105,000 (577,986) 595,000 682,986 132,636 105,000 (577,986) CITY OF LA QUINTA INTERNAL SERVICE FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 73 367 Fund: 503 - PARK EQUIP & FACILITY FUND Parks 105,000.00503-0000-71060 Amount Playground equipment, benches, picnic tables 40,000 Shade canopy replacements 65,000 CITY OF LA QUINTA INTERNAL SERVICE FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 74 368 2020/21 Original Budget 2020/21 Current Budget 2020/21 YTD Activity* 2021/22 Proposed 21/22 vs. Current 20/21 % Change in Budget 504 - INSURANCE FUND 1010 - Insurance 50 - Salaries and Benefits 0 0 996 0 0 0 %504-1010-50221 Medical Insurance 50 - Salaries and Benefits Totals:0 0 996 0 0 0 % 60 - Contract Services 500 500 0 500 0 0 %504-1010-60320 Travel & Training 200 200 0 200 0 0 %504-1010-60351 Membership Dues 60 - Contract Services Totals:700 700 0 700 0 0 % 62 - Maintenance & Operations 300 300 202 0 (300)-100 %504-1010-60400 Office Supplies 12,500 12,500 1,296 5,000 (7,500)-60 %504-1010-60420 Operating Supplies 62 - Maintenance & Operations Totals:12,800 12,800 1,498 5,000 (7,800)-61 % 63 - Insurance 402,400 402,400 402,044 443,800 41,400 10 %504-1010-60441 Liability Insurance 2,500 2,500 0 2,500 0 0 %504-1010-60442 Claims 122,400 122,400 120,255 139,000 16,600 14 %504-1010-60443 Property Insurance 3,700 3,700 3,693 3,700 0 0 %504-1010-60446 Crime Insurance 102,000 179,000 179,698 180,000 1,000 1 %504-1010-60447 Earthquake Insurance 181,000 181,000 161,549 195,400 14,400 8 %504-1010-60452 Workers Comp Premium 63 - Insurance Totals:814,000 891,000 867,239 964,400 73,400 8 % 1010 - Insurance Totals:827,500 904,500 869,733 970,100 65,600 7 % 504 - INSURANCE FUND Totals:827,500 904,500 869,733 970,100 65,600 7 % 0 0 996 0 0 0 0 996 0 0 500 500 0 500 0 200 200 0 200 0 700 700 0 700 0 300 300 202 0 (300) 12,500 12,500 1,296 5,000 (7,500) 12,800 12,800 1,498 5,000 (7,800) 402,400 402,400 402,044 443,800 41,400 2,500 2,500 0 2,500 0 122,400 122,400 120,255 139,000 16,600 3,700 3,700 3,693 3,700 0 102,000 179,000 179,698 180,000 1,000 181,000 181,000 161,549 195,400 14,400 814,000 891,000 867,239 964,400 73,400 827,500 904,500 869,733 970,100 65,600 827,500 904,500 869,733 970,100 65,600 CITY OF LA QUINTA INTERNAL SERVICE FUND EXPENSE DETAILS FY 2021/22 PROPOSED BUDGET 75 369 Fund: 504 - INSURANCE FUND Travel & Training 500.00504-1010-60320 California Joint Powers Insurance Authority (CJPIA) Public Agency Risk Management Association (PARMA) Membership Dues 200.00504-1010-60351 Public Agency Risk Management Association (PARMA) membership Operating Supplies 5,000.00504-1010-60420 Ergonomic assessments and first aid kit supplies/maintenance CITY OF LA QUINTA INTERNAL SERVICE FUND EXPENSE NOTES FY 2021/22 PROPOSED BUDGET 76 370 City of La Quinta CITY COUNCIL MEETING: May 4, 2021 STAFF REPORT AGENDA TITLE: SILVERROCK RESORT DEVELOPMENT PROJECT UPDATE AND DEVELOPER PROGRESS TO CURE DEFAULT RECOMMENDATION Discuss development project update and developer process to cure default. EXECUTIVE SUMMARY •In November 2014, Council approved a Purchase, Sale and Development Agreement (Agreement) with SilverRock Development Company (SDC). •In May 2017, SDC initiated the work to realign golf course holes to accommodate the luxury hotel and improve the golf experience; this work was completed in November 2017. •This Agreement was amended in November 2018 primarily to update schedule and project phasing to enable closing of the $212 million construction financing with Mosaic Real Estate (Mosaic). •In April 2019, SDC commenced mass grading of the site in preparation for vertical development; this work was completed in November 2019. •In March 2020 just after the COVID-19 pandemic started, SDC provided the first of several updates to Council including notification that they would be delaying the start of vertical construction as a result of the pandemic but that both SDC and their financing partner Mosaic are committed to the successful completion of SilverRock Resort. •On April 15, 2020 SDC provided the City with a Force Majeure notice relating to impacts to the development schedule associated with the Covid-19 pandemic. •In April 2021, the City issued a notice of default to the SDC, per the terms of the agreement. The agreement identified completion of the two hotels, spa, conference facility, and permanent golf clubhouse by December 31, 2020. STUDY SESSION ITEM NO. 2 371 BACKGROUND/ANALYSIS SilverRock Development Company (SDC) has been accelerating their efforts in recent months to have final maps, precise grading and construction plans ready for permit issuance on the two hotels, spa, shared conference facility, clubhouse and Montage/Pendry branded residential. This effort is considerable and is performed in good faith to diligently move the project forward and into vertical construction. However, cost escalation as a result of material and supply shortages, increased demand, and rising labor costs has created the need for an additional $80 million of financing in order to capitalize the project. On April 7, 2021 the City issued a notice of default to SDC outlining that Council would need to approve revised financing, schedule and an amendment to the Purchase, Sale, and Development Agreement as amended (PSDA) in order for the default to be cured. To date, SDC has provided a commitment letter for additional financing along with a letter from Mosaic investors, the projects primary lender expressing their commitment to the project and ongoing coordination with SDC to support revisions to the capital structure of the project. Additionally, SDC has proposed schedule revisions that include project milestones and updated start and completion dates of project components as well as new and revised terms and conditions for consideration in an amended PSDA. Staff is currently negotiating with SDC on all of the aforementioned items in preparation for amending the PSDA. SDC will provide project updates at future council meetings that will include recent milestones achieved and progress on the project as well as items required to cure default. These updates will occur at every meeting until the default is cured. Prepared by: Jon McMillen, City Manager 372 energized pumps to DEPARTMENTAL REPORT ITEM NO. 7 373 project construction has begun 374 installation of wall panels,painted conducted I R 375 for 376 REPORTS AND INFORMATIONAL ITEM NO. 28 377 378 Palm Springs Airport Commission Report – April 21,2021 Teleconference Meeting Budget and Finance Report – The primary focus of the April meeting was the presentation of the first draft of the budget for 2021/22 which will be presented to Palm Springs City Council. The committee comprised of airport staff, Rolf Hoehn and other commissioners on the budget committee elected to forecast the future budget by averaging 2019 revenues with 2,563,955 passengers with 2020 that had 1,252,094 passengers. (this low passenger number actually correlates to the airport traffic all the way back to 2003 level.) The 2021/22 forecast is not as lofty as 2018/19 levels but certainly an improvement over 2020/21. Having Southwest Airlines onboard is a tremendous asset and instills confidence in the PSP airport. Our biggest question is the Canadian market with its quarantine for passengers and also the fact that this country is behind in vaccinations. I believe that the 2021/22 budget draft is so detailed and thorough in these challenging times that I have attached a copy of the draft to this report for all La Quinta council members to read. It is no surprise that it has been unanimously approved by the airport commission to present scenario F and is now in the hands of the Palm Springs City Council. Airport traffic was strong in late March 2021 and was at 85% of budget and traffic projected for April – June 2021 is 55% of 2019. Discussion and Action Report: •Committee Chairman Report – Chairman Alison Jones announced that 6 of the 13 marketing RFP’s were selected for interviews and will be presented to City Council this week. The quality of the proposals was impressive and were reviewed in a rigorous process. In addition, the current airport marketing budget for 20/21 is $100,000 and is proposed to increase to $600,000 subject to the City of Palm Springs and City Council approval. He also wanted everyone to be aware of COVID rules by state of Hawaii requires a COVID test within 72 hours of landing in this state at a testing site only approved by Hawaii. For example, PSP airport COVID testing doesn’t qualify and one must read their website carefully. Walgreens and CVS pharmacy are approved. In addition, one must have proof of vaccination. •City Manager report – Justin Clifton attended his first airport commission meeting and was prepared to only observe. He has never operated in a city that had an airport before so he admits there will be a learning curve. •Executive Director Report – Ulises Aguirre noted that although there was a noticeable increase in airport travel in late March and even as high as 90% of 2019 that travel is anticipated to drop to our historic summer profile. Baggage Claim project is right on schedule. •PSP Marketing Plan to Engage Enplanement - PSP Marketing Director Daniel Meier announced the Google Paid Search is up 18% and Desert Sun eblast had 18.81% opened and 2% click- throughs. Website is up 43% and our message will continue to strongly stage that PSP has non- stop flights to 27 destinations. Next Airport Commission meeting is scheduled for May 19 at 5:30 pm by Teleconference. Sincerely, Kathleen Hughes 379 Preliminary Budget 2021-2022 April 20, 2021 DRAFTPalm Springs International Airport Preliminary Budget 2021-2022 Page 1 of 8380 FY 2019-20 FY 2019-20 FY 2020-21 FY 2020-21 FY 2021-22 Category Budget Actual Revised Budget Projected Budget Beginning Fund Balance 7,873,206 7,371,071 7,984,515 5,107,458 7,626,353 Revenues Maintenance & Operations 26,633,800 23,000,489 14,522,300 19,613,404 22,500,000 Expenditures *Maintenance & Operations (23,944,300) (23,777,989) (24,674,715) (20,600,104) (24,208,600) PERS set-aside (500,000) - (750,000) (750,000) (750,000) Transfer to Fund 416 - Special Projects (3,112,969) (3,112,969) (830,000) (2,110,000) Operating Surplus / (Deficit)(923,469) (3,890,470) (10,902,415) (2,566,700) (4,568,600) Additional Staffing - Mid-Year 2021 0 (430,366) Proposed Additional Staffing (491,092) Adjusted Operating Surplus / (Deficit)(923,469) (3,890,470) (10,902,415) (2,566,700) (5,490,058) TEMPORARY - Non-Operating Items: Grants - Revenue CARES Act - 1,626,857 11,067,877 5,085,595 4,355,425 CRRSA - Airport 1,000,000 CRRSA - Concessions American Rescue Plan Act - Airport American Rescue Plan Act - Concessions Projected Fund Balance 6,949,737 5,107,458 8,149,977 7,626,353 7,491,720 *Expenditures less PERS set-aside Airport Summary of Maintenance & Operations Fund 415 General Airport Enterprise Funds DRAFTPalm Springs International Airport Preliminary Budget 2021-2022 Page 2 of 8381 Fund Category # 405 CFC (Customer Facility Charge - Rental Cars) Beginning Balance 21,500,000$ 22,162,992$ 23,869,671$ 24,345,581$ 25,347,581$ Revenues 2,185,000.00 2,282,430$ 1,450,000$ 1,202,000$ 1,750,000$ Expenditures (800,000)$ (99,841)$ (2,900,000)$ (200,000)$ (150,000)$ Ending Cash 22,885,000$ 24,345,581$ 22,419,671$ 25,347,581$ 26,947,581$ # 410 PFC (Passenger Facility Charge) Beginning Balance 1,845,631$ 1,478,800$ 1,807,720$ 21,260,982$ 6,102,004$ Revenues 4,450,000$ 4,450,071$ 2,600,000$ 2,460,000$ 4,275,000$ PFC Bond Proceed 22,500,000$ 22,270,000$ Project Costs -$ (5,217,933)$ (14,591,478)$ (3,477,028)$ Bond Expenditures (6,356,900)$ (1,719,956)$ (2,507,500)$ (3,027,500)$ (3,023,000)$ Ending Cash 22,438,731$ 21,260,982$ 1,900,220$ 6,102,004$ 3,876,976$ # 415 Maintenance and Operations Beginning Balance 7,873,206$ 7,371,071$ 7,984,515$ 5,107,458$ 7,626,353$ Grants Revenue 26,633,800 23,000,489$ 14,522,300$ 19,613,404$ 22,500,000$ CARES Act 1,626,857$ 11,067,877$ 5,085,595$ 4,355,425$ CRRSA - Airport 1,000,000$ CRRSA - Concessions -$ American Rescue Plan Act - Airport -$ American Rescue Plan Act - Concessions Expenditures (23,944,300) (23,777,989)$ (24,674,715)$ (20,600,104)$ (24,208,600)$ Additional & Proposed Staffing (921,458)$ PERS set-aside (500,000) -$ (750,000)$ (750,000)$ (750,000)$ Other - Transfer to 416 (3,112,969) (3,112,969) (830,000)$ (2,110,000)$ Annual Sub - Total 6,949,737$ 5,107,458$ 8,149,977$ 7,626,353$ 7,491,720$ # 416 Capital Projects Federal Grants 9,624,572$ 9,700,000$ Cash Balance 8,281,423$ 9,442,803$ 9,812,595$ 9,904,552$ 9,814,320$ Measure "J" & "D" airport fuel tax 200,000 -$ -$ -$ 500,000$ Local Capital Projects (2,935,000) (2,651,220) (1,752,385)$ (830,000)$ (2,110,000)$ Local AIP Grant Match (991,545) -$ (880,000)$ -$ -$ Expenses Fund 416-6700 Ticket Wing Fit Out Ticket Wing Project Local (2,275,000) (90,233)$ Ticket Wing Airline Move Local Funds PFC Bond Proceeds Other - Transfer from 415 3,112,969 3,112,969 830,000$ 2,110,000$ Ending Cash 5,392,847$ 9,904,552$ 7,180,210$ 9,814,320$ 10,314,320$ Airport Summary of Accounts FY 2020-21 Revised Budget FY 2020-21 Projected FY 2021-22 Budget FY 2019-20 Actual FY 2019-20 Budget DRAFTPalm Springs International Airport Preliminary Budget 2021-2022 Page 3 of 8382 FY 2021-22 CAPITAL Department 6501 56xxx Unscheduled Capital Projects 250,000$ 56xxx Fire Sprinkler Heads Replacement Main 50,000$ 56xxx Refurbish ARFF Truck 600,000$ 56xxx IT - Shared Use Equipment 250,000$ 56xxx IT - AVI System 300,000$ 56xxx Replace Micro Light System 120,000$ 56xxx Terminal - 150 Ton Chiller 300,000$ 56xxx Terminal - Replace Main Boiler 80,000$ 56xxx Truck Mounted Pressure Washer 160,000$ Total Capital 2,110,000$ Airport Capital Outlay Budget not Funded by Grants FUND 416 - SPECIAL CAPITAL PROJECTS DRAFTPalm Springs International Airport Preliminary Budget 2021-2022 Page 4 of 8383 Airport Capital Outlay Budget FY 2021-22 Airport Development FUND 416 - FEDERAL GRANTS CAPITAL - Local Grant Match (10%)BUDGET 2021-22 No Local Grant Match Proposed For FY 2021-22 Airport Improvement Grant Funding *Passenger Boarding Bridges 7,042,945$ *Runway Sweeper 700,000$ **Aircraft Rescue and Firefighting (ARFF) Trucks 1,590,000$ Total 9,332,945$ *Funds awarded in FY20-21 **Funds awarded in FY20-19 DRAFTPalm Springs International Airport Preliminary Budget 2021-2022 Page 5 of 8384 FY 2019-20 FY 2019-20 FY 2020-21 FY 2020-21 FY 2021-22 Category Budget Actual Revised Budget Projected Budget % Change Scheduled Landing Fees 1,998,000 2,069,780 993,300 1,749,863 2,130,000 114.4% Land Rental 1,250,000 1,235,590 1,250,000 1,504,898 1,250,000 0.0% Advertising 430,000 400,539 250,000 219,861 250,000 0.0% Parking 3,250,700 3,267,861 2,197,800 2,327,776 2,500,000 13.8% Airline Leased Space & Hold Room 865,215 869,250 777,250 803,695 892,000 14.8% On-Airport Rental Car 5,057,570 6,480,246 3,250,000 3,919,971 3,900,000 20.0% Term Non-Air Comm Rent 1,215,400 1,457,435 966,800 800,322 1,000,000 3.4% TSA LEO Grant 116,800 116,800 116,800 119,840 120,000 2.7% Concessions 25,000 9,858 135,000 7,520 10,000 -92.6% Customs Fees 250,310 259,145 240,000 198,083 240,000 0.0% All Other General Rev.12,174,805 6,833,984 4,345,350 7,961,575 10,208,000 134.9% TOTAL 26,633,800 23,000,489 14,522,300 19,613,404 22,500,000 54.9% General Airport Revenue Fund 415 General Airport Scheduled Landing Fees 10% Land Rental 6% Advertising 1% Parking 11% Airline Leased Space & Hold Room 4% On-Airport Rental Car 17% Term Non-Air Comm Rent 4% TSA LEO Grant 1% Concessions 0% Customs Fees 1% All Other General Rev. 45% Airport Revenue Fund 415 DRAFTPalm Springs International Airport Preliminary Budget 2021-2022 Page 6 of 8385 FY 2019-20 FY 2019-20 FY 2020-21 FY 2020-21 FY 2021-22 Category Budget Actual Revised Budget Projected * Budget % Change Airport Admin.4,249,800 4,693,872 4,262,915 4,313,995 4,477,000 5.0% Airport Security 2,635,700 2,776,294 2,726,500 2,684,472 2,976,100 9.2% Airside Ops 989,000 1,844,219 1,025,800 546,477 1,054,500 2.8% Air Rescue-Fire 3,516,600 3,497,785 3,685,000 3,688,511 3,629,000 -1.5% Landside Ops 1,529,600 1,320,747 1,593,000 998,312 1,551,000 -2.6% Grounds Main.755,300 539,687 773,100 306,941 722,000 -6.6% Terminal Bldg Ops 6,212,200 6,902,349 6,394,000 4,571,763 5,758,000 -9.9% Control Ctr. Ops 3,855,200 3,737,818 4,008,400 3,245,997 3,824,000 -4.6% Customs 200,900 203,876 206,000 243,636 217,000 5.3% PERS Cost 500,000 - 750,000 750,000 750,000 0.0% TOTAL $24,444,300 $23,777,989 $25,424,715 $21,350,104 $24,958,600 -1.8% *Note: FY 2021-22 Budget does not include the proposed & additional staffing General Airport Expenditures Fund 415 - Airport Operations Airport Admin. 18% Airport Security 12% Airside Ops 4% Air Rescue-Fire 15%Landside Ops 6% Grounds Main. 3% Terminal Bldg Ops 23% Control Ctr. Ops 15% Customs 1%PERS Cost 3% Airport Departments by Percentage DRAFTPalm Springs International Airport Preliminary Budget 2021-2022 Page 7 of 8386 FAA GRANTS Grant Type Beginning Balance Estimated Use as of 6/30/21 FY 2021-22 Projected Estimated Balance as of 6/30/22 CARES Act - Apr 2020 11,067,877 6,712,452 4,355,425 (0) CRRSA - Airport - Dec 2020 4,783,916 - 1,000,000 3,783,916 CRRSA - Concessions - Dec 2020 280,390 - - 280,390 *American Rescue Plan Act - Airport - Feb 2021 10,000,000 - - 10,000,000 *American Rescue Plan Act - Concession - Feb 2021 1,000,000 - - 1,000,000 Total Grants 27,132,183 6,712,452 5,355,425 15,064,306 *Approximate values Airport Grant Summary FAA GRANTS DRAFTPalm Springs International Airport Preliminary Budget 2021-2022 Page 8 of 8387 388 POWER POINTS CITY COUNCIL MEETING MAY 4, 2021 05/04/2021 1 City Council May 4, 2021 City Council May 4, 2021 Closed Session In Progress 1 2 05/04/2021 2 Pledge of Allegiance 3 4 05/04/2021 3 City Council Meeting May 4, 2021 B1 – Pension Funding FAC Study 2 Dec. 2020 Commissioners Way  and Twohey were   named to the  subcommittee on  December 2, 2020 Jan. 2021 and Feb.  2021 The subcommittee  met three times, on  1/15/2021,  1/26/2021, and  2/11/2021 24 Feb. 2021 Findings were  presented to the  entire FAC  during a  study session on  February 24, 2021 7 Apr. 2021 The FAC  voted on April  7, 2021 to recommend  Council review  findings  20 Apr. 2021 Findings were  presented to the City  Council during a study  session April 20, 2021 5 6 05/04/2021 4 Pension  Tier Overview Classic Tier Tier 2 PEPRA Tier Hire Date On and after 12/16/1983 On and after 12/17/2012 On and after 1/1/2013 Benefit Formula 2.5% at age 55 2% at age 60 2% at age 62 Benefit Vesting Schedule 5 years of service 5 years of service 5 years of service Benefit Payments monthly for life monthly for life monthly for life Retirement Age 50 and up 50 and up 52 and up Required employee contribution rate 8.000% 7.000% 6.750% Required employer contribution rate 11.432% 8.081% 6.985% Number of Active Members* 37 8 53 Number of Retired Members* 35 1 0 Entry Age Normal Accrued Liability $50,417,881 $532,890 $1,340,430 Plan's Market Value of Assets $35,957,546 $505,580 $1,253,920 Unfunded Accrued Liability $14,460,335 $27,310 $86,510 Funded Ratio 71.3% 94.9% 93.5% * As of June 30, 2019 from CalPERS valuation reports. Required Unfunded Liability Payments Unfunded Liability Payments Classic Tier Tier 2 PEPRA Tier Fiscal Year 2016/17 $471,501 $0 $20 Fiscal Year 2017/18 $564,145 $201 $150 Fiscal Year 2018/19 $698,026 $5,197 $8,591 Fiscal Year 2019/20 $842,026 $4,955 $11,921 Fiscal Year 2020/21 $952,096 $5,590 $19,433 Fiscal Year 2021/22 $1,108,426 $1,962 $17,529 Fiscal Year 2022/23 $1,224,000 $2,000 $18,000 Fiscal Year 2023/24 $1,295,000 $2,000 $18,000 Fiscal Year 2024/25 $1,371,000 $2,000 $18,000 Fiscal Year 2025/26 $1,412,000 $2,000 $18,000 Fiscal Year 2026/27 $1,449,000 $0 $0 7 8 05/04/2021 5 CalPERS Amortization  Schedules •15‐year and 10‐year  savings are presented  –15‐year  amortization  saves $2,804,240 –10‐year  amortization  saves $5,967,437 CalPERS Pension  Outlook Tool •Example of one‐time $1.0 additional payment •Saves $350,000 in UAL payments over just the first five years •Saves $2,370,000 over the full amortization period 9 10 05/04/2021 6 CalPERS and HighMark Capital Returns HighMark Capital is the Investment Manager for the City’s PARS  Pension Trust.  Figures shown are for the Moderately  Conservative investment strategy.   Variance  in annual returns may be attributed to timing‐CalPERS year ends on June  30th,  whereas HighMark is using a calendar year.   Options •Rounded,  lump‐sum  contribution  (i.e. $1.0 mil)   to Classic Tier •Contributions  to  pay off Tier  2 and PEPRA,  with remaining  going to Classic •Savings shown  for three  contribution  levels Classic Tier Tier 2 PEPRA Tier Total ADP Unfunded Accrued Liability $14,460,335 $27,310 $86,510 Additional Discretionary Payment - Opt. 1 $1,000,000 $1,000,000 Additional Discretionary Payment - Opt. 2 $886,180 $27,310 $86,510 $1,000,000 Additional Discretionary Payment - Opt. 3 $1,000,000 $27,310 $86,510 $1,113,820 Options First 5 Years Total Additional Discretionary Payment of $500K (180,000)$ (1,190,000)$ Additional Discretionary Payment of $1.0 mil (350,000)$ (2,370,000)$ Additional Discretionary Payment of $2.0 mil (690,000)$ (4,540,000)$ Savings 11 12 05/04/2021 7 City Council Meeting May 4, 2021 S1 – Discuss Fiscal Year 2021/22 Preliminary Proposed Budget 13 14 05/04/2021 8 BUDGET HIGHLIGHTS Revenue Projections •Conservative growth rates were applied to major revenue accounts •Confirmed & leveraged grant sources •Expert consultants - property & sales taxes •Gradual recovery for TOT dependent on vaccine distribution •Increase in STVR fees based on impacts from newly adopted fee schedule 15 16 05/04/2021 9 General Fund Revenues Increase of 14% from 2020/21 Original Budget Top 3 Revenue Sources: Sales Tax revenue $21.5 million Property Tax revenue $8.9 million Transient Occupancy Tax (TOT) $8.3 million General Fund Revenues 2020/21 Original 2020/21 Current 2021/22 Proposed Change Current V. Proposed Taxes 38,596,000 44,878,000 45,957,000 1,079,000 License & Permits 1,136,800 1,186,800 2,252,000 1,065,200 Intergovernmental 8,479,700 9,343,634 8,546,100 (797,534) Charges for Services 785,500 575,000 876,010 301,010 Fines & Assessment 290,000 264,000 294,000 30,000 Other/Misc. 1,438,100 1,438,100 1,174,100 (264,000) Total Revenues 50,726,100 57,685,534 59,099,210 1,413,676 Expense Projections •Assist City and community with recovery and restoration efforts related to COVID-19 •Monitor expenses related to reopening of facilities, programs and increased operations •Continue to address infrastructure improvements and capital improvement projects 17 18 05/04/2021 10 General Fund Expenses General Fund Expenditures 2020/21 Original 2020/21 Current 2021/22 Proposed Change Current V. Proposed City Council 292,000 292,900 302,200 9,300 City Manager 707,000 767,000 1,076,000 309,000 Marketing & Community Relations 1,110,300 1,228,800 1,325,900 97,100 City Attorney 565,000 565,000 696,000 131,000 City Clerk 593,400 639,100 625,200 (13,900) Human Resources 264,400 304,400 376,000 71,600 Police 17,506,700 17,204,700 18,439,100 1,234,400 Fire 8,021,700 9,165,422 8,210,900 (954,522) Community Resources Admin. 700,600 790,600 808,500 17,900 Wellness Center Operations 543,800 558,800 597,900 39,100 Recreational Programs & Events 438,700 478,700 823,300 344,600 Code Compliance/Animal Control 1,196,800 1,310,700 1,473,320 162,620 Parks Maintenance 1,670,800 1,814,400 2,380,900 566,500 Public Buildings 1,140,700 1,190,700 1,321,200 130,500 Public Works Administration 719,200 719,200 739,900 20,700 Public Works Dev. Services 390,200 390,200 431,000 40,800 Streets 484,300 494,300 496,600 2,300 Engineering Services 999,000 1,062,300 761,800 (300,500) Design & Development Admin. 519,300 649,300 656,200 6,900 Planning 513,900 613,900 678,600 64,700 Building 777,100 787,100 919,800 132,700 The Hub 908,300 965,300 986,000 20,700 Finance 1,393,400 1,423,400 1,443,100 19,700 Centralized Services 6,454,100 22,867,375 9,383,206 (13,484,169) Total Expenditures 47,910,700 66,283,597 54,952,626 (11,330,971) Internal Service Funds •Support the City’s internal operations •Majority of revenues derived from the General Fund based on employee & equipment allocations Fund FY 20/21 Current FY 21/22 Proposed Variance Equipment Replacement 1,144,464 1,222,750 78,286 Information Technology 1,924,200 1,786,700 (137,500) Park Equipment 682,986 105,000 (577,986) Insurance Fund 904,500 970,100 65,600 4,656,150 4,084,550 (571,600) 19 20 05/04/2021 11 General Fund Summary Measure G Sales Tax Revenue 11,500,000$ Police Services (5,163,000) Capital Improvements (2,758,356) Available for Appropriation 3,578,644$ MEASURE G SALES TAX SUMMARY Revenues 59,099,210$ Less Operating/CIP Expenses (54,952,626) Preliminary Budget Surplus 4,146,584 Less Measure G Reserves (3,578,644) BUDGET SURPLUS 567,940$ GENERAL FUND FY 2021/22 PROPOSED BUDGET SUMMARY Optimistic but still Uncertain Outlook •Monitor additional needs related to COVID-19 •Economic recovery depends on the end of the pandemic •Future congressional actions to provide additional federal stimulus funding or spending flexibility 21 22 05/04/2021 12 FY 2021/22 Budget Schedule •January 16 – Community Workshop •March 2 - CIP – City Council •May 4 – City Council •May 5 – Housing Commission •May 12 – Financial Commission •May 18 – City Council •June 1 – City Council •June 2 – Financial Commission •June 9 – Housing Commission •June 15 – City Council, Adoption For the latest budget information visit: www.laquintaca.gov/business/finance/budget 23 24 05/04/2021 13 City Council Meeting May 4, 2021 S2 – SilverRock Development Project Update SilverRock Development Company LLC  City of La Quinta – Update May 4, 2021 25 26 05/04/2021 14 Project  Update •Capitalization Update  •PSDA Amendment #4 •Sequence of Site  Activities Onsite  ~Q&A~ Sequence of  Activities on  Site 27 28 05/04/2021 15 29 WRITTEN PUBLIC COMMENT CITY COUNCIL MEETING MAY 4, 2021 From: Nancy Dunn   Date: May 3, 2021 at 4:45:21 PM PDT  To: Linda Evans <Levans@laquintaca.gov>, John Pena <jpena@laquintaca.gov>  Subject: Re: Moratorium on Short‐Term Vacation Rentals   EXTERNAL: This message originated outside of the City of La Quinta. Please use proper judgement and caution  when opening attachments, clicking links or responding to requests for information.   On Monday, May 3, 2021, 03:13:08 PM PDT, Nancy Dunn wrote: Dear Council Members: I continue to be disturbed by your most recent extension of the STVR moratorium and am composing this email to express my frustration and concerns about your decision to prolong the pause on offering licenses for STVRs in the city of La Quinta. As a homeowner in north La Quinta for nearly eighteen years, I understand residents' desires to maintain the peace and serenity of their neighborhoods. When many of us bought our homes, Airbnb, VRBO, and similar services were nonexistent or in their infancy. From my understanding, the hundreds of complaints from residents in certain gated and non-gated communities in regards to noise, traffic, trash, and parking congestion have only increased, despite the clear and stringent ordinances that have been instituted by the city in the past several years. Enforcement of laws and ordinances is, in my opinion, one of the jobs of city government. If a person is caught speeding on a city street, a ticket is given to the offender. If the offender continues to speed, the driver's license is suspended or revoked. I can't quite grasp why these actions don't apply to people who irresponsibly rent their homes. If they cannot control the noise et cetera of their guests, their license to host can easily be revoked by the city officials. Am I missing something? I understand, too, that some areas are exempt from non-issuance. I'm wondering what determined these exemptions. For example, Signature of PGA West appears on the list despite the fact that there have been a myriad of complaints from homeowners of PGA West. My neighborhood has been the source of very few, if any, complaints in the past five years. Yet it is not exempt. What difference does it make whether it's in a tourist commercial or village commercial zone? My guests take advantage of restaurants, shops, and commercial businesses, just like guests at the high-end La Quinta Resort and SilverRock. Furthermore, I feel that your moratorium is extremely unfair to hosts who rent out just a room or two in their homes. I have been hosting guests from all corners of the world since the spring of 2016. I have never received a single complaint from either a neighbor or the city powers-that-be concerning noise, traffic, parking, or trash buildup. I am living in my home while my guests stay in a bedroom, so I have complete control over the behavior of my guests. Why should I be punished for the lack of vigilance of people renting out a house with an absentee homeowner? I am a retired school teacher and the income I receive from my STVR is quite small, but has allowed me in the past to travel to visit my family in the San Francisco Bay Area. Because of the continued moratorium imposed by the city council, I no longer have the funds to travel north. Yesterday was my son's thirty-ninth birthday and I couldn't afford to help him celebrate his birthday in the Bay Area because I have been denied a STVR license. I hope that, during your next meeting, you might consider the plight of the La Quinta homeowners who are just providing rooms for visitors, not an entire house. I know I speak for many other such hosts when I express my disapproval of the moratorium decision by all but one council member. (Mr. Sanchez, I thank you for your care and foresight in regards to this issue.) Sincerely, Nancy Dunn  CITY COUNCIL MEETING - MAY 4, 2021 - WRITTEN PUBLIC COMMENTS BY NANCY DUNN PUBLIC COMMENTS ON MATTERS NOT ON THE AGENDA - SUPPORTS STVRS & LIFTING THE MORATORIUM ON NEW STVR PERMITS 1 From:Annie Freedman Sent:Monday, May 3, 2021 9:15 AM To:Linda Evans; Kathleen Fitzpatrick; Robert Radi; John Pena; Steve Sanchez; Jon McMillen; City Clerk Mail Subject:REMOVE THE ORRIDANCE TO ALLOW NEW STVR PERMITS  EXTERNAL: This message originated outside of the City of La Quinta. Please use proper judgement and caution when opening  attachments, clicking links or responding to requests for information.   Dear Mayor & Council Members, I am strongly in favor of a vibrant and thriving tourism program for the City of La Quinta, including well-regulated and positive short term vacation rental options for travelers of all means. Please do not let the efforts of the city council, the working groups and community go to waste. Everyone worked so hard to pass reasonable regulations and ordinances to reduce the noise complaints, the problem houses, and bring balance. Let these take effect before over-regulating. I believe all homeowners should have the right to apply for a STVR permit unless otherwise preceded by the HOA. This includes those who purchased a home prior to these regulations taking effect, those that aren't actively renting today, those who stopped renting during covid, those that might need to rent tomorrow. Placing a ban on STVR, will not only drive the city property values down but directly discourages a second home buyer from purchasing here. To allow this ban to continue would treat second home owners, like my husband and myself, who contribute many tax dollars and place minimal pressure on your infrastructure, as nothing short of second class citizens. Furthermore, the impact this will have on tourism will be detrimental to a post pandemic economy. Travelers are vacationing in La Quinta because of the availability in short term vacation rental homes. Today's traveler is more comfortable staying in a private home away from strangers and the associated Covid-19 risks a hotel stay would include. We urge you to remove ordinances further restricting the issuance of new permits, or at minimum allow the HOA's to govern their communities as they wish and ensure that all current hosts have an opportunity to apply for a permit and come into compliance with the new rules. Sincerely, Annie Freedman La Quinta, CA 92253 CITY COUNCIL MEETING – MAY 4, 2021 - WRITTEN PUBLIC COMMENTS BY RESIDENT ANNIE FREEDMAN PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA - SUPPORTS STVRS & LIFTING THE MORATORIUM ON NEW STVR PERMITS From: Mindy   Date: April 26, 2021 at 1:47:18 PM PDT  Subject: STVR Permits  ** EXTERNAL: This message originated outside of the City of La Quinta. Please use proper judgement  and caution when opening attachments, clicking links or responding to requests for information. **  Hello Mayor & Council Members,  My name is Mindy Brar. We appreciate all you do for our beautiful city of La Quinta.  My family and I stayed at two STVR last summer in PGA West. We absolutely loved it in La Quinta. We  have never stayed in a STVR in this area ever before because we would always stay at the Omni Rancho  Mirage, Ritz Carlton, Marriott Villas or Westin Villas in Palm Desert. However, because of Covid, we  preferred our kids to be safe and decided to rent a home instead. That’s the case more now than ever.  The city needs to take advantage of this tourism because it will slowly go down when airline travel starts  to boom again and Covid numbers go further down. Due to the lovely experience we had in the rental,  we decided to purchase in La Quinta as well and make it our home. If we never stayed in those STVR, we  would not have a house here right now. My husband is an ER physician in LA we want a place to use as  much as we can with our kids and we also want to be able to rent it to help offset the costs of this  second mortgage with us having one kid going to college in 5 years and 2 more shortly after. When that  time comes, we want to be able to retire in La Quinta. We want to be able to make others be able to  visit this tourist city and support the local businesses and enjoy it as much as we have over the last year.  We could have purchased in any of the surrounding area but La Quinta was where our heart was when  looking at homes.  We put an offer in for our home end of August in Desert Club Estates. I called the city and was assured if  we were to purchase the current restriction on licenses would be lifted by November 4. It was never  mentioned it maybe extended or it was due for reasons other than the covid surge. We thought of  course no problem when covid numbers come down we will be able to help the financial burden of this  home and get a license to rent at least 1‐2 weekends a month. We put $150k of furnishings, pool repair,  paint, lighting, etc to get the home up to the standards needed by November 4. However, the  moratorium kept getting pushed further and further. Now we are in this dilemma.  Council members, I ask that you please consider and discuss at the next meeting to lift the moratorium  ban to at least those who purchased last year with the idea of everything would be lifted on Nov 4. We  never were told it can or will be extended. I ask that you consider La Quinta being the tourist city that it  is and allow families like mine to come in and enjoy the city and local businesses. The businesses have  suffered enough over the past year with Covid‐19 restrictions and they need all the tourism they can get  to help them get back on their feet. It may take years but they can get there or otherwise like many will  have to close their doors unfortunately. STVR the owners who take pride in their property do so on a  more consistent basis than even the long term rental owners or some regular property owners. You get  more local carpet cleaning, window cleaning, pest control, cleaning services, local furniture, painting,  etc. being used by STVR owners to help support local businesses. My husband’s coworker a fellow ER  physician was looking to buy in La Quinta for his family as well but in PGA West, however, due to this  current situation he is holding off. We don’t want these valuable families to end up purchasing in Indio  or Palm Springs where they welcome tourism and STVR in areas with open arms.  CITY COUNCIL MEETING – MAY 4, 2021 - WRITTEN PUBLIC COMMENTS BY RESIDENT MINDY (NO LAST NAME) PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA - SUPPORTS STVRS; AND REQUESTS COUNCIL CONSIDER LIFTING THE MORATORIUM ON NEW STVRS PERMITS FOR HOMEOWNERS WHO PURCHASED DURING THE TEMP MORATORIUM Please reconsider allowing the owners who purchased PRIOR to Nov. 4 to obtain a STVR license. All the  new restrictions and fees are in place. Let’s see it out. We had plenty of time off where no licenses were  issued. Let’s follow these rules and regulations. Let’s make La Quinta boom with tourism again. Let’s  support the village restaurants and golf courses. Let’s allow families to come into the city to enjoy the  hiking trails, golf courses, shopping and dining. These families maybe wouldn't have experienced La  Quinta prior to Covid‐19 because like us they would have choose to stay at large hotel/resorts instead.  Covid is not fully going away anytime soon and even when it does families like mine will still prefer to  choose a STVR over a hotel/resort now as they will be more hesitant.  Thank you so much for your time. Again, we appreciate all your hard work for this beautiful tourist city  of La Quinta.  Mindy  Sent from my iPhone  CITY COUNCIL MEETING – MAY 4, 2021 - WRITTEN PUBLIC COMMENTS BY RESIDENT MINDY (NO LAST NAME) PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA - SUPPORTS STVRS; AND REQUESTS COUNCIL CONSIDER LIFTING THE MORATORIUM ON NEW STVRS PERMITS FOR HOMEOWNERS WHO PURCHASED DURING THE TEMP MORATORIUM 1 From:Marie Thompson Sent:Monday, May 3, 2021 4:12 PM To:City Clerk Mail; John Pena; Jon McMillen; Monika Radeva; Linda Evans; Robert Radi; Steve Sanchez Subject:Written comment, permanent stop to all new STVRs in residential neighborhoods. DENSITY needs to be addressed  EXTERNAL: This message originated outside of the City of La Quinta. Please use proper judgement and caution when opening  attachments, clicking links or responding to requests for information.   City Manager, City Council, Mayor;   The city is failing to understand the density issue. Your failure to address and understand this issue is truly changing  neighborhoods.   We have 3 permitted STVRs  on  our block with 2 more waiting for the moratorium to be lifted and 1 directly behind us  waiting. How is this addressing density?  How is this equitable?  This really does change a neighborhood, whether they have citations (garbage, noise, parking) is not the main issue. This  situation has changed the character of our neighborhood. When we moved here 8 years ago I was working with Sally  Sheldon on the Neighborhood Watch, which is laughable now as we have no idea who belongs in these 5 properties on  our block at any given time.   Please seriously look into Density and stop any new permits in residential neighborhoods.   Sincerely,  Marie Thompson   La Quinta resident    ‐‐   Marie Thompson  CITY COUNCIL MEETING – MAY 4, 2021 - WRITTEN PUBLIC COMMENTS BY RESIDENT MARIE THOMPSON PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA - OPPOSES STVRS IN RESIDENTIAL NEIGHBORHOODS; AND REQUESTS PERMANENT MORATORIUM ON NEW STVR PERMITS & STVR DENSITY REGULATIONS 1 From:Marie Thompson Sent:Tuesday, April 27, 2021 6:37 AM To:City Clerk Mail; John Pena; Jon McMillen; Kathleen Fitzpatrick; Monika Radeva; Linda Evans; Robert Radi; Steve Sanchez Subject:Written comment, permanent stop to new STVR permits. Residential neighborhood  EXTERNAL: This message originated outside of the City of La Quinta. Please use proper judgement and caution when opening  attachments, clicking links or responding to requests for information.   City Manager, City Council, Mayor:   Please put in place a permanent stop to new STVRs in residential neighborhoods like the Cove.   The city has not addressed density in the neighborhood. Even a percentage in place would not address the equity of  having 3‐5 STVRS on one block.   These properties are not residences they are a business.  If these STVRS are not a primary residence, they are  investment platforms for individuals or  businesses.   People who bought during this moratorium should not be given any special consideration (there are no laws or  provisions saying STVRs are guaranteed ).  People in this situation have the opportunity to use their investment for long  term rentals 31 days or more.   Thank you for your time and I know you will help support your constituents and are listening to our request for help in  this matter.   Sincerely,  Marie Thompson   La Quinta resident    ‐‐   Marie Thompson  CITY COUNCIL MEETING – MAY 4, 2021 - WRITTEN PUBLIC COMMENTS BY RESIDENT MARIE THOMPSON PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA - OPPOSES STVRS IN RESIDENTIAL NEIGHBORHOODS; AND REQUESTS PERMANENT MORATORIUM ON NEW STVR PERMITS & STVR DENSITY REGULATIONS 1 From:Monica Victorino Sent:Wednesday, April 28, 2021 5:00 PM To:City Clerk Mail Subject:Short Term Rental Ordinance Attachments:FAX_20210428_1619654231_400.pdf Importance:High Follow Up Flag:Follow up Flag Status:Completed  EXTERNAL: This message originated outside of the City of La Quinta. Please use proper judgement and caution when opening  attachments, clicking links or responding to requests for information.   Hello,  I’d like to submit a written public comment to City Council. Please see attached letter.  Regards,  Monica Victorino  Broker      www.myflexnow.com  NMLS 351409 BRE 01377966  The information contained in this email is intended only for the named recipient(s).  The email may contain important or  time‐sensitive information.  It may also include sensitive, confidential, proprietary, non‐public, private, or otherwise  protected information, privileges as to which are not waived by virtue of this electronic transmission.  If you have  received this communication in error, please return the information by reply e‐mail, and kindly delete the email and any  attachments from your computer or mobile device.  The misuse or misappropriation of the information contained herein  may result in legal action including action for damages or other remedies, criminal prosecution, fines and  imprisonment.  Your cooperation is appreciated. CITY COUNCIL MEETING – MAY 4, 2021 - WRITTEN PUBLIC COMMENTS BY RESIDENT MONICA VICTORINO PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA - REQUESTS RECONSIDERATION OF MORATORIUM ON NEW STVR PERMITS, WHICH WERE PREVIOUSLY PERMITTED, BUT HAVE CHANGED OWNERSHIP