La Quinta City Council
March 1, 2022

ADDENDUM TO AGREEMENT
Re: Scope of Services
If the Scope of Services include construction, alteration, demolition, installation, repair, or maintenance affecting real property or structures or improvements of any kind appurtenant to real property, the following apply:

1. Prevailing Wage Compliance. If Contracting Party is a contractor performing public works and maintenance projects, as described in this Section 1.3, Contracting Party shall comply with applicable Federal, State, and local laws. Contracting Party is aware of the requirements of California Labor Code Sections 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Sections 16000, et seq., (collectively, the “Prevailing Wage Laws”), and La Quinta Municipal Code Section 3.12.040, which require the payment of prevailing wage rates and the performance of other requirements on “Public works” and “Maintenance” projects. If the Services are being performed as part of an applicable “Public works” or “Maintenance” project, as defined by the Prevailing Wage Laws, and if construction work over twenty-five thousand dollars ($25,000.00) and/or alterations, demolition, repair or maintenance work over fifteen thousand dollars ($15,000.00) is entered into or extended on or after January 1, 2015 by this Agreement, Contracting Party agrees to fully comply with such Prevailing Wage Laws including, but not limited to, requirements related to the maintenance of payroll records and the employment of apprentices. Pursuant to California Labor Code Section 1725.5, no contractor or subcontractor may be awarded a contract for public work on a “Public works” project unless registered with the California Department of Industrial Relations (“DIR”) at the time the contract is awarded. If the Services are being performed as part of an applicable “Public works” or “Maintenance” project, as defined by the Prevailing Wage Laws, this project is subject to compliance monitoring and enforcement by the DIR. Contracting Party will maintain and will require all subcontractors to maintain valid and current DIR Public Works contractor registration during the term of this Agreement. Contracting Party shall notify City in writing immediately, and in no case more than twenty-four (24) hours, after receiving any information that Contracting Party’s or any of its subcontractor’s DIR registration status has been suspended, revoked, expired, or otherwise changed. It is understood that it is the responsibility of Contracting Party to determine the correct salary scale. Contracting Party shall make copies of the prevailing rates of per diem wages for each craft, classification, or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at Contracting Party’s principal place of business and at the project site, if any. The statutory penalties for failure to pay prevailing wage or to comply with State wage and hour laws will be enforced. Contracting Party must forfeit to City TWENTY129 Click Here to Return to Agenda Exhibit A

FIVE DOLLARS ($25.00) per day for each worker who works in excess of the minimum working hours when Contracting Party does not pay overtime. In accordance with the provisions of Labor Code Sections 1810 et seq., eight (8) hours is the legal working day. Contracting Party also shall comply with State law requirements to maintain payroll records and shall provide for certified records and inspection of records as required by California Labor Code Section 1770 et seq., including Section 1776. In addition to the other indemnities provided under this Agreement, Contracting Party shall defend (with counsel selected by City), indemnify, and hold City, its elected officials, officers, employees, and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It is agreed by the parties that, in connection with performance of the Services, including, without limitation, any and all “Public works” (as defined by the Prevailing Wage Laws), Contracting Party shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law. Contracting Party acknowledges and agrees that it shall be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with such laws. Contracting Party shall require the same of all subcontractors.

2. Retention. Payments shall be made in accordance with the provisions of Article 2.0 of the Agreement. In accordance with said Sections, City shall pay Contracting Party a sum based upon ninety-five percent (95%) of the Contract Sum apportionment of the labor and materials incorporated into the Services under this Agreement during the month covered by said invoice. The remaining five percent (5%) thereof shall be retained as performance security to be paid to Contracting Party within sixty (60) days after final acceptance of the Services by the City Council of City, after Contracting Party has furnished City with a full release of all undisputed payments under this Agreement, if required by City. In the event there are any claims specifically excluded by Contracting Party from the operation of the release, City may retain proceeds (per Public Contract Code § 7107) of up to one hundred fifty percent (150%) of the amount in dispute. City’s failure to deduct or withhold shall not affect Contracting Party’s obligations under the Agreement.

3. Utility Relocation. City is responsible for removal, relocation, or protection of existing main or trunk-line utilities to the extent such utilities were not identified in the invitation for bids or specifications. City shall reimburse Contracting Party for any costs incurred in locating, repairing damage not caused by Contracting Party, and removing or relocating such unidentified utility facilities. Contracting Party shall not be assessed liquidated 130 Click Here to Return to Agenda
Exhibit A

damages for delay arising from the removal or relocation of such unidentified utility facilities.

4. Trenches or Excavations. Pursuant to California Public Contract Code Section 7104, in the event the work included in this Agreement requires excavations more than four (4) feet in depth, the following shall apply:
(a) Contracting Party shall promptly, and before the following conditions are disturbed, notify City, in writing, of any: (1) material that Contracting Party believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; (2) subsurface or latent physical conditions at the site different from those indicated by information about the site made available to bidders prior to the deadline for submitting bids; or (3) unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the Agreement.
(b) City shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in Contracting Party’s cost of, or the time required for, performance of any part of the work shall issue a change order per Section 1.8 of the Agreement.
(c) in the event that a dispute arises between City and Contracting Party whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contracting Party’s cost of, or time required for, performance of any part of the work, Contracting Party shall not be excused from any scheduled completion date provided for by this Agreement, but shall proceed with all work to be performed under this Agreement. Contracting Party shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the contracting Parties.

5. Safety. Contracting Party shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out the Services, Contracting Party shall at all times be in compliance with all applicable local, state, and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, 131 Click Here to Return to Agenda
Exhibit A

bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

6. Liquidated Damages. Since the determination of actual damages for any delay in performance of the Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, Contracting Party shall be liable for and shall pay to City the sum of One Thousand dollars ($1,000.00) as liquidated damages for each working day of delay in the performance of any of the Services required hereunder, as specified in the Schedule of Performance. In addition, liquidated damages may be assessed for failure to comply with the emergency call out requirements, if any, described in the Scope of Services. City may withhold from any moneys payable on account of the Services performed by Contracting Party any accrued liquidated damages.
132 Click Here to Return to Agenda
Exhibit B

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 Four Hundred FiftySeven Thousand Three Hundred Dollars ($ 457,300.00) (“Contract Sum”).

The Contract Sum shall be paid to Contracting Party in installment payments made on a monthly basis and in an amount identified in Contracting Party’s schedule of compensation attached hereto for the work tasks performed and properly invoiced by Contracting Party in conformance with Section 2.2 of this Agreement.
133 Click Here to Return to Agenda
FEES
For the efforts described above, the fees proposed are as noted below, and have been calculated on a stipulated sum basis as follows:

PHASE 1 – Master Planning $ 172,300
PHASE 2 – Preliminary Design $ 275,000
TOTAL $ 447,300
(Four Hundred Forty-Seven Thousand, Three Hundred Dollars) Reimbursable Expenses $ 10,000 (NTE)
Reimbursable project-related expenses include design team travel for project meetings.

Sincerely,
cc: Christina Delgado, Project Manager - HGA
TOTAL $ 457,300
134 Click Here to Return to Agenda
La Quinta Cultural Campus
Design Fee Breakdown by Phase / Discipline
16 Weeks 18 Weeks
Design Discipline / Role Hours SubTotal Hours SubTotal TOTAL Architectural 116 $21,500 718 $132,750 $154,250
Planning 476 $87,500 12 $2,250 $89,750Landscape 55 $9,000 142 $23,500 $32,500Civil 38 $6,450 70 $12,000 $18,450Lighting 18 $2,900 32 $5,000 $7,900Electrical 33 $5,950 124 $22,250 $28,200Plumbing 22 $3,750 81 $14,000 $17,750 Mechanical 24 $4,250 112 $20,000 $24,250
Structural 14 $2,600 98 $18,000 $20,600Cost Estimating 45 $7,700 78 $13,250 $20,950Low Voltage 19 $3,200 56 $9,500 $12,700Tribal Liaison 109 $17,500 16 $2,500 $20,000 TOTAL 969 $172,300 1539 $275,000
Master Planning Preliminary Design
XHIBIT 3
135
Click Here to Return to Agenda
Exhibit C

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. 136 Click Here to Return to Agenda
ID Task Name Duration Start Finish
1 Phase 1 - Cultural Campus Master Plan 75 days Tue 2/1/22 Mon 5/16/22 2 Project Kick-Off / Visioning Session - All Groups 1 day Tue 2/1/22 Tue 2/1/22 3 Research / Investigation - Existing Conditions 10 days Wed 2/2/22 Tue 2/15/22 4 Planning Workshop #1 - All Groups (Separate Sessions) 2 days Wed 2/16/22 Thu 2/17/22 5 HGA Prepares Options / Variations 14 days Wed 2/16/22 Mon 3/7/22 6 Planning Workshop #2 - All Groups (Separate Sessions) 2 days Tue 3/8/22 Wed 3/9/22 7 HGA Prepares Options / Variations 15 days Thu 3/10/22 Wed 3/30/22 8 Planning Workshop #3 - All Groups (Separate Sessions) 2 days Thu 3/10/22 Fri 3/11/22 9 HGA Prepares Final Options / Variations 20 days Thu 3/17/22 Wed 4/13/22 10 Master Plan Final Presentation and Issue Report 2 days Fri 4/22/22 Mon 4/25/22 11 Owner Review of Report 10 days Tue 4/26/22 Mon 5/9/22 12 HGA Revise Report and Issue Final 5 days Tue 5/10/22 Mon 5/16/22 13 Phase 2 - Preliminary Design 84 days Tue 5/17/22 Fri 9/9/22 14 Project Kick-Off / Revisit Guiding Principles - All Groups 1 day Tue 5/17/22 Tue 5/17/22 15 HGA Initial Prep for Prelim Options / Considerations 10 days Wed 5/18/22 Tue 5/31/22 16 Design Workshop #1 - All Groups (Separate Sessions) 2 days Wed 6/1/22 Thu 6/2/22 17 HGA Prepares Options / Variations 14 days Wed 6/1/22 Mon 6/20/22 18 Maintenance and Operations Review 1 day Tue 6/21/22 Tue 6/21/22 19 Design Workshop #2 - All Groups (Separate Sessions) 2 days Wed 6/22/22 Thu 6/23/22 20 HGA Develops Selected Design Scheme 15 days Fri 6/24/22 Thu 7/14/22 21 Design Workshop #3 - All Groups (Separate Sessions) 2 days Fri 6/24/22 Mon 6/27/22 22 HGA Prepares Final Presentation and Deliverables 25 days Fri 7/1/22 Thu 8/4/22 23 HGA Issues Draft Prelim Design Drawing Set and Visualization 0 days Thu 8/4/22 Thu 8/4/22 24 Owner Review of Draft Deliverables / Provide Comments 10 days Fri 8/5/22 Thu 8/18/22 25 Preliminary Design Final Presentation to Stakeholders 2 days Mon 8/29/22 Tue 8/30/22 26 Presentation to Planning Commission 1 day Fri 9/9/22 Fri 9/9/22 27 Phase 3 - Working Drawings (TBD) 100 days Mon 9/26/22 Fri 2/10/23 Phase 1 - Cultural Campus Master Plan
Project Kick-Off / Visioning Session - All Groups
Research / Investigation - Existing Conditions
Planning Workshop #1 - All Groups (Separate Sessions)
HGA Prepares Options / Variations
Planning Workshop #2 - All Groups (Separate Sessions)
HGA Prepares Options / Variations
Planning Workshop #3 - All Groups (Separate Sessions)
HGA Prepares Final Options / Variations
Master Plan Final Presentation and Issue Report
Owner Review of Report
HGA Revise Report and Issue Final
Phase 2 - Preliminary Design
Project Kick-Off / Revisit Guiding Principles - All Groups HGA Initial Prep for Prelim Options / Considerations
Design Workshop #1 - All Groups (Separate Sessions)
HGA Prepares Options / Variations
Maintenance and Operations Review
Design Workshop #2 - All Groups (Separate Sessions)
HGA Develops Selected Design Scheme
Design Workshop #3 - All Groups (Separate Sessions)
HGA Prepares Final Presentation and Deliverables
HGA Issues Draft Prelim Design Drawing Set and Visualization Owner Review of Draft Deliverables / Provide Comments
Preliminary Design Final Presentation to Stakeholders
Presentation to Planning Commission
Phase 3 - Working Drawings (TBD)
212427302581114172023262914710131619222528369121518212427302581114172023262925811141720232629147101316192225281471013161922252831369121518212427302581114172023262925811141720232629147101316192225281471013161922252831369121518212427302581114172023261471013161922252831369121518212427303 December 2021 January 2022 February 2022 March 2022April 2022May 2022June 2022July 2022August 2022 September 2022 October 2022 November 2022 December 2022 January 2023 February 2023 March 2023April 2023M Qtr 1, 2022 Qtr 2, 2022 Qtr 3, 2022 Qtr 4, 2022 Qtr 1, 2023 Qtr 2, 202 La Quinta Cultural Campus
Project Schedule
137 Click Here to Return to Agenda
Exhibit D

Exhibit D
Special Requirements
None.
138 Click Here to Return to Agenda
Exhibit E

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 139 Click Here to Return to Agenda
Exhibit E

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.

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 140 Click Here to Return to Agenda
Exhibit E

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.

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.
141 Click Here to Return to Agenda
Exhibit E

4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.

5. No liability policy shall contain any provision or definition that would serve to eliminate so-called “third party action over” claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor.

6. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises.

Contracting Party shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City’s protection without City’s prior written consent.

7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all the coverages required and an additional insured endorsement to Contracting Party’s general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Contracting Party or deducted from sums due Contracting Party, at City option.

8. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Contracting Party or any subcontractor, is intended 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 selfinsured retentions or deductibles on any portion of the insurance required herein (with the exception of professional liability coverage, if required) and 142 Click Here to Return to Agenda
Exhibit E

further agrees that it will not allow any contractor, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self-insure its obligations to City. If Contracting Party’s existing coverage includes a deductible or self-insured retention, the deductible or self-insured retention must be declared to the City. At that time the City shall review options with the Contracting Party, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions.

11. The City reserves the right at any time during the term of this Agreement to change the amounts and types of insurance required by giving the Contracting Party ninety (90) days advance written notice of such change.

If such change results in substantial additional cost to the Contracting Party, the City will negotiate additional compensation proportional to the increased benefit to City.

12. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement.

13. Contracting Party acknowledges and agrees that any actual or alleged failure on the part of City to inform Contracting Party of noncompliance 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.
143 Click Here to Return to Agenda
Exhibit E

16. The provisions of any workers’ compensation or similar act will not limit the obligations of Contracting Party under this agreement. Contracting Party expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials, and agents.

17. Requirements of specific coverage features, or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be limiting or all-inclusive.

18. These insurance requirements are intended to be separate and distinct from any other provision in this Agreement and are intended by the parties here to be interpreted as such.

19. The requirements in this Exhibit supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Exhibit.

20. Contracting Party agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Contracting Party for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto.

21. Contracting Party agrees to provide immediate notice to City of any claim or loss against Contracting Party arising out of the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City.
144 Click Here to Return to Agenda
Exhibit F

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 145 Click Here to Return to Agenda
Exhibit F

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 146 Click Here to Return to Agenda
Exhibit F

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.
147 Click Here to Return to Agenda
ATTACHMENT 3
ATTACHMENT 3
149 Click Here to Return to Agenda
City of La Quinta
CITY COUNCIL MEETING: March 1, 2022

STAFF REPORT
AGENDA TITLE: DISCUSS SHORT-TERM VACATION RENTAL PROGRAM 2021 CHARACTERISTICS, COMPLIANCE AND ENFORCEMENT OVERVIEW; CURRENT AND FUTURE OBJECTIVES AND INITIATIVES; AND CITIZENS’ MEASURE INITIATIVE UPDATE

RECOMMENDATION
Discuss the Short-Term Vacation Rental program 2021 characteristics, compliance and enforcement overview; current and future objectives and initiatives; and citizens’ measure initiative update.

EXECUTIVE SUMMARY
 On May 20, 2021, Section 3.25.055 of the La Quinta Municipal Code (LQMC) established a permanent ban on the issuance of new short-term vacation rental (STVR) permits in residential areas (Permit Ban), unless the property is located within an “exempt” area depicted on the map in Attachment 1.  New permits have not been issued outside of exempt areas since August 4, 2020; existing permit-holders in Permit Ban areas may renew permits, but permits cannot be transferred.
 Throughout 2021, the number of permits and STVR density in Permit Ban areas declined by 19.38% due to the Permit Ban combined with attrition related to home sales and non-renewals.
 A citizens’ initiative petition is currently being circulated to phase-out and permanently ban non-hosted STVRs in non-exempt areas by January 1, 2025.

FISCAL IMPACT – None

BACKGROUND/ANALYSIS
The City imposed a moratorium on the issuance of new STVR permits on August 4, 2020 via Executive Order No. 10, and extended it in succeeding amendments.

Section 3.25.055 of the LQMC established a permanent Permit Ban on the issuance of new STVR permits in residential areas (Permit Ban areas) effective May 20, 2021. Permit-holders may renew existing permits, but permits cannot be transferred.

STUDY SESSION ITEM NO. 1
149 Click Here to Return to Agenda
The issuance of new STVR permits is banned in Permit Ban areas, and no new permits have been issued since August 4, 2020. New permits continue to be issued in a few select “Exempt Areas” zoned for tourist commercial, village commercial, and communities expressly developed to allow STVRs, as depicted on the map in Attachment 1.

In 2021, the City began reporting enhanced analytics related to the STVR program.

A summary report of the STVR program characteristics, STVR permits and density decline, and increased compliance was presented to Council on December 7, 2021, and encompassed the first three quarters of 2021.

STVR Program Characteristics – December 2021
The City’s STVR program consisted of 1,165 active permits as of December 2021.

Figure 1
Figure 2
22 63
1,080
0 200
400
600
800
1,000
1,200
Homeshares Primary Residence General Permits
December 2021 STVR Permits by Type
1,320
1,283
1,257
1,238 1,235
1,216
1,185 1,185 1,181
1,186 1,184 1,165
1,050
1,100
1,150
1,200
1,250
1,300
1,350
JAN‐21 FEB‐21 MAR‐21 APR‐21 MAY‐21 JUN‐21 JUL‐21 AUG‐21 SEP‐21 OCT‐21 NOV‐21 DEC‐21 2021 STVR Permits Citywide
150 Click Here to Return to Agenda
Table 1 below lists the number of STVR permits for each area along with the total number of approved parcels for 2021. The City’s total STVR permits have gradually declined each month due to the Permit Ban combined with attrition related to home sales and non-renewals.

Table 1
Within the residential Permit Ban areas, as of December 2021, active STVR permits have collectively declined 19.38% (from 1,037 to 836) since January 2021:

Permit Ban Area Permits Density % Change since Jan ‘21
North La Quinta 112 4.4% -18.25%
Mid La Quinta 118 11.5% -15.71%
The Cove 252 5.3% -13.70%
South La Quinta (PGA West) 354 11.6% -24.36%
Totals 836 7.4% -19.38%
Figure 3 below depicts the number of STVR permits within each area for 2021.

Figure 3
137 130 124 118 118 115 114 112 112 112 112 112
140 135 132 132 130 127 122 122 121 122 122 118
292 282 276 270 268 263 261 259 258 258 256 252
468 453 438 428 420 407 382 379 375 372 370 354
1,037 1,000 970 948 936 912 879 872 866 864 860 836
JAN‐21 FEB‐21 MAR‐21 APR‐21 MAY‐21 JUN‐21 JUL‐21 AUG‐21 SEP‐21 OCT‐21 NOV‐21 DEC‐21 STVR Permits in Banned Areas

19.4% Decline in 2021
North La Quinta Mid La Quinta The Cove South La Quinta (PGA West) 151 Click Here to Return to Agenda
STVR density is calculated as a percentage by dividing the number of STVR permits by the number of developed parcels within each area, as listed in Table 1 above.

Figure 4 below shows that density in residential Permit Ban areas collectively decreased in 2021 from 9.14% to 7.4%:

Figure 4
Figure 5 further depicts the gradual density changes for each residential Permit Ban area throughout 2021:

Figure 5
STVR Program Compliance Overview
The City’s STVR program consists of several interdependent activities such as permitting, licensing, tax collection, and compliance. This section of the Staff Report focuses on specific compliance functions, which include managing complaints, conducting investigations, and enforcement (violations, citations, and suspensions).

9.14% 8.81% 8.55% 8.36% 8.25% 8.04% 7.75% 7.69% 7.63% 7.62% 7.58% 7.4% JAN‐21 FEB‐21 MAR‐21 APRI‐21 MAY‐21 JUN‐21 JUL‐21 AUG‐21 SEP‐21 OCT‐21 NOV‐21 DEC‐21 Density in STVR Banned Areas
STVR Permit Ban Areas

5.3% 5.1% 4.8% 4.6% 4.6% 4.5% 4.4% 4.4% 4.4% 4.4% 4.4% 4.4%

13.7% 13.2% 12.9% 12.9% 12.7% 12.4% 11.9% 11.9% 11.8% 11.9% 11.9% 11.5%

6.2% 6.0% 5.9% 5.7% 5.7% 5.6% 5.5% 5.5% 5.5% 5.5% 5.4% 5.3%

15.4% 14.9% 14.4% 14.1% 13.8% 13.4%

12.6% 12.5% 12.3% 12.2% 12.2% 11.6%
JAN‐21 FEB‐21 MAR‐21 APRI‐21 MAY‐21 JUN‐21 JUL‐21 AUG‐21 SEP‐21 OCT‐21 NOV‐21 DEC‐21 Density in STVR Banned Areas
North La Quinta Mid La Quinta The Cove South La Quinta (PGA West) 152 Click Here to Return to Agenda
On January 15, 2021, the City implemented several code changes to enhance the STVR program’s compliance tools and increase fines. Subsequently overall compliance has increased while disturbance complaints have decreased.

STVR compliance activities are separated into one of two categories:
 Disturbance – the majority of disturbance compliance activities are due to noise, generally caused by large events or gatherings, children running/screaming/laughing, popping balloons, construction, slamming doors, etc. Other complaints include excessive parking; bright lights; trash; unsecured pool access; unmaintained yard, etc.
 Administrative – the overwhelming majority of administrative compliance matters are related to operating/advertising without a STVR permit or business license, or failure to display STVR permit on listings. Others include incorrect or missing occupancy limit advertised on listings; failure to report/remit transient occupancy tax, etc.

Figures 6 and 7 below, depict citywide STVR complaints throughout 2021. Of note:
 Complaints peaked at 348 in Q-2 (April-June) and steadily declined by 75.57% to a total of 85 complaints in Q-4 (October-December).
 Unpermitted complaints became a relative majority of complaints in the 2nd half of 2021:

Q-1 Q-2 Q-3 Q-4
Permitted STVRs 59.3% 53.4% 40.1% 44.7%
Unpermitted STVRs 40.7% 46.6% 59.9% 55.3%
o Throughout Q-1 and Q-2, 41% of complaints were for unpermitted properties.
o Throughout Q-3 and Q-4, 60% of complaints were for unpermitted properties.
 Citywide complaints declined significantly in the 2nd half of 2021:
o Between Q-2 and Q-3, excluding one-time submission of 145 vendor generated complaints in July, the remaining 149 community/City-generated complaints reflect a 57% decrease in complaints between the Q-2 and Q-3. o Using the same assumption (excluding the one-time July submission), complaints decreased an additional 42.9% between the Q-3 and Q-4. 153 Click Here to Return to Agenda
Figure 6 categorizes complaints by permitted and unpermitted STVR properties:

Figure 6
Figure 7 depicts citywide complaints for each area:

Figure 7
192 186
118 38
132 162 176
47 324 348
294
85 0
50 100
150
200
250
300
350
400
Q‐1Q‐2Q‐3Q‐4
2021 STVR Complaints Citywide
Permitted STVRs Unpermitted STVRs
7 13 21 5 9 9
26 8
92 107 69
13 120 81
68 19
19 23
29 9
77 115
81 31
324
348
294
85 Q‐1Q‐2Q‐3Q‐4
2021 STVR Complaints Citywide by
Area
North La Quinta
Mid La Quinta
The Cove
South La Quinta (PGA West)
STVR Exempt Areas
HOA Legacy
154 Click Here to Return to Agenda
Enforcement
Figures 8 and 9 below depict quarterly STVR-related citations for 2021. Of note:
 Similar to the complaints trendline, citations peaked at 86 in Q-2 (April-June) and steadily declined 82.55% to a total of 15 complaints by Q-4 (OctoberDecember).  Similar to the complaints trendline, the relative percentage of unpermitted citations increased throughout 2021:

Q-1 Q-2 Q-3 Q-4
Permitted Citations 39.0% 33.7% 33.3% 20.0%
Unpermitted Citations 61.0% 66.3% 66.7% 80.0%
o 65% of all 2021 citations were issued to unpermitted STVR properties, as depicted in Figure 8 below.
o 70% of all 2021 citations were issued for administrative matters, as depicted in Figure 9 below (as defined earlier in this report – primarily for operating/advertising without a STVR permit or business license, or failure to display STVR permit on listings).

Figure 8
30 29 20 3
47 57
40 12
77 86
60 15
Q‐1Q‐2Q‐3Q‐4
2021 Quarterly STVR Citations
Permitted & Unpermitted
Permitted Citations Unpermitted Citations
155 Click Here to Return to Agenda
Figure 9
Figure 10 includes unpermitted compliance activities for comparison with permitted STVR properties.

Figure 10
For the month of December, less than 0.8% of permitted STVR properties received complaints and were subject to any enforcement action, including zero suspensions, which both reflect the lowest levels for 2021:

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

7.05% 3.51% 4.30% 5.17% 6.88% 3.04% 5.82% 2.62% 1.52% 1.10% 1.35% 0.77% Figure 11: Monthly percentage of STVR Permitted Properties with complaints and/or enforcement action in 2021. 52 56 45
13 25 3015 2
77 86
60 15
Q‐1Q‐2Q‐3Q‐4
2021 Quarterly STVR Citations
Administrative Vs. Disturbance
Administrative Disturbance
78 50 50 39 48
34 58
24 22 16 16 10
48 25
52 61 55
42 120
52 73
36 20 11
1,320
1,283
1,257
1,238 1,235
1,216
1,185 1,185 1,181 1,186 1,184
1,165
1,050
1,100
1,150
1,200
1,250
1,300
1,350
0 20
40 60
80 100
120
140
JAN‐21 FEB‐21 MAR‐21 APR‐21 MAY‐21 JUN‐21 JUL‐21 AUG‐21 SEP‐21 OCT‐21 NOV‐21 DEC‐21 2021 STVR Permits Citywide
Permitted Properties w/Complaints, Notices, Citations, Suspensions Unpermitted Properties w/Complaints, Notices, Citations Permitted STRs
156 Click Here to Return to Agenda
Taxes, Fees, and STVR Program Costs
Table 2 provides an overview of annual STVR program revenues between 2019- 2021. Of note:
 Despite declining STVR permits, TOT revenues continued to increase in 2021.  Citation Fine collections spiked 2020-21 in correlation with enhanced enforcement tools but are expected to decrease in 2022 as overall compliance increases.
 Permit/licensing fees and fine collections were sufficient to cover STVR program operational costs in 2021 and are projected to be sufficient for 2022. * Citation Fine Collections revenue list collections current as of 1/25/2022 Table 2
Table 3 depicts TOT revenues for each area for the 2nd half of 2021:
 Permit Ban areas generated 82.65% of STVR TOT revenues ($2,341,271.09).

 Exempt areas generated 17.35% of STVR TOT revenues ($491,452.96). *TOT revenue list collections current as of February 2022 Table 3
157 Click Here to Return to Agenda
Citizens’ Initiative Petition
On January 12, 2022, a citizens’ intent to circulate a petition was filed with the City, proposing an ordinance to amend the La Quinta Municipal Code (Code) to phase-out and permanently ban non-hosted STVRs in non-exempt areas by January 1, 2025. To date, all filings have been timely submitted, and the proponents have 180 days from January 27, 2022, to obtain the requisite number of signatures (10% of the registered voters) to qualify the proposed measure initiative for the ballot.

Pursuant to California Elections Code § 9212, during the circulation of the petition, the City Council may refer the proposed measure initiative to a city agency or agencies to prepare a report evaluating its potential impacts.

Based on the nature of the measure initiative, Staff submits the following report areas for consideration:
 Fiscal impact: projected impact to TOT and STVR program management costs.  Projected economic impact:
 Visitor spending
 Personal income
 Employment
 Local tax revenues
 Survey of outcomes in jurisdictions in which STVRs have been banned, actively regulated, or remain unregulated:
 Property values
 Illicit or “black market” STVRs
 Residential development
 Housing availability and rents
 Survey(s) to understand the demographics and/or sentiment of impacted business owners, operators, and stakeholders.

Staff seeks directions if the report should be contemplated at this time, and if so, the scope of the report’s criteria and preferred timeline.

Prepared by: Monika Radeva, City Clerk
Approved by: Jon McMillen, City Manager
Attachment: 1. STVR Banned and Exempt Areas Map
158 Click Here to Return to Agenda
(6
(5
(3
(2
(8
(4
(10
(9
(1
(7
(11
SH-111

MADISON ST
54TH AVE

WASHINGTON ST
48TH AVE

EISENHOWER DR
52ND AVE

JEFFERSON ST

MILES AVE

AIRPORT BLV

AVENIDA CARRANZA
58TH AVE

FRED WARING DR
50TH AVE

AVENIDA BERMUDAS

MONROE ST

FRED WARING DR
50TH AVE

JEFFERSON ST JEFFERSON ST
58TH AVE

EISENHOWER DR
58TH AVE
¯
0 0.225 0.45 0.9 1.35 1.8Miles
STVR Exempt
STVR_exempt_zone
North La Quinta
Cove
Mid La Quinta
South La Quinta
City Boundary
Id name zoning
1 Homewood Suites (La Quinta Desert Villas - Center Pointe) Tourist Commercial (TC) District 2 Legacy Villas Tourist Commercial (TC) District & Development Agreement 3 La Quinta Resort including Spa & Tennis Villas Tourist Commercial (TC) District & Adjacent to TC District 4 Embassy Suites Village Commercial District
5 Village Commercial Village Commercial District
6 SilverRock Specific Plan Tourist Commercial (TC) District - Undeveloped 7 Codorniz Entitlement Approval
8 Signature at PGA West Tourist Commercial (TC) District 9 Puerta Azul Entitlement Approval
10 SW corner Ave 64 & Madison St Tourist Commercial (TC) District - Undeveloped 11 NW corner Ave 64 & Madison St Tourist Commercial (TC) District - Undeveloped ATTACHMENT 1 159 Click Here to Return to Agenda
160 Click Here to Return to Agenda
City of La Quinta
CITY COUNCIL MEETING: March 1, 2022

STAFF REPORT
AGENDA TITLE: ADOPT RESOLUTION TO VACATE 150-SQUARE-FOOT PORTION OF AVENIDA MORALES PUBLIC RIGHT-OF-WAY FRONTING 51780

AVENIDA MORALES IN THE SANTA CARMELITA AT VALE LA QUINTA SUBDIVISION, UNIT NO. 2

RECOMMENDATION
Adopt a resolution to vacate a 150-square-foot portion of Avenida Morales public right-of-way fronting 51780 Avenida Morales in the Santa Carmelita at Vale La Quinta Subdivision, Unit No. 2.

EXECUTIVE SUMMARY
• Patrick and Laura O’Connell (Owners) have filed a street vacation application to vacate a portion of Avenida Morales fronting 51780 Avenida Morales. A building permit to construct a pool and spa in front of the house at 51780 Avenida Morales has been put on-hold until this street vacation is approved and recorded.
• The right-of-way proposed to be vacated is not needed for street purposes. No utility agency has requested easements over the proposed street vacation area and no utility agency has objected to the street vacation proposal.
• On February 8, 2022, the Planning Commission made a finding that this proposed street vacation is consistent with the La Quinta General Plan.

FISCAL IMPACT – None.

BACKGROUND/ANALYSIS
The proposed street vacation area fronting 51780 Avenida Morales (Attachment 1) was dedicated for public use on the subdivision map for Santa Carmelita at Vale La Quinta, Unit No. 2 in 1934. When the City constructed Avenida Morales under Assessment District 92-01, an area was created that is not needed for street purposes. A building permit to construct a pool and spa in front of the PUBLIC HEARING ITEM NO. 1
161 Click Here to Return to Agenda
house at 51780 Avenida Morales has been put on-hold until this street vacation is approved and recorded.

No utility agency has requested easements over the proposed street vacation area and no utility agency has objected to the street vacation proposal.

Publishing and posting requirements for this public hearing were given in the time and manner pursuant to Sections 8322 and 8323 of the Streets and Highways Code.

AGENCY AND PUBLIC REVIEW
Public Notice
This vacation proceeding is conducted under Chapter 3, Part 3, Division 9 of the Streets and Highways Code. Three notices regarding the proposed public hearing for the street vacation were posted conspicuously along the line of the street proposed to be vacated on February 13, 2022 (Attachment 2). On February 11, 2022, the public hearing notice was mailed to the ten property owners in La Quinta who petitioned for this street vacation (Attachment 3). The public hearing notice was also advertised in The Desert Sun newspaper for two successive weeks on February 13 and 20, 2022 (Attachment 4). To date, no comments have been received from the public.

Environmental Review
The Design and Development Department has determined the proposed action is categorically exempt under California Environmental Quality Act (CEQA) Section 15301(c) – Class 1.

ALTERNATIVES
Council may choose to not approve the street vacation, or incorporate any adjustments deemed appropriate in order to approve the street vacation.

Prepared by: Amy Yu, Associate Engineer
Approved by: Bryan McKinney, P.E., Public Works Director /City Engineer Attachments: 1. Vicinity Map

2. Photos of Public Notice Posting Onsite

3. Mailing of Notice to the Ten Petitioners

4. Public Hearing Notice in The Desert Sun
162 Click Here to Return to Agenda
RESOLUTION NO. 2022 – xxx

A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF LA QUINTA, CALIFORNIA, VACATING A 150-

SQUARE-FOOT PORTION OF AVENIDA MORALES
PUBLIC RIGHT-OF-WAY FRONTING 51780 AVENIDA

MORALES IN THE SANTA CARMELITA AT VALE LA
QUINTA SUBDIVISION, UNIT NO. 2
WHEREAS, this action is exempt under the California Environmental Quality Act (CEQA) Guidelines, Section 15301(c) – Class 1; and
WHEREAS, pursuant to Sections 8322 and 8323 of the Streets and Highways Code, due notice of the Public Hearing was given by public posting in the time and manner prescribed by law; and
WHEREAS, the City Council of the City of La Quinta has conducted this vacation proceedings under Chapter 3, Part 3, Division 9 of the Streets and Highways Code of the Streets and Highways Code and, upon hearing and considering all testimony of all interested parties, make the following findings:

1. Vacation of the subject 150-square-foot portion of Avenida Morales will not adversely affect the City of La Quinta or adversely impact the Circulation Element of the City of La Quinta General Plan.

2. The affected 150-square-foot portion of Avenida Morales is unnecessary for either present or prospective public use or purposes, including use as a non-motorized transportation facility.

3. No local agency has submitted objections to the street vacation proposal.

4. Approval and adoption of the proposed public street vacation will not cause a significant negative impact upon the environment; and NOW THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows:

SECTION 1. The City Council, having elected to proceed under the provisions of Chapter 3, Part 3, Division 9 of the Streets and Highways Code of the Streets and Highways Code of the State of California, and having held a public hearing upon due notice as provided therein, hereby finds from all evidence submitted that the 150-square-foot portion of Avenida Morales, specifically described in Exhibits A and B, is unnecessary for either present or prospective public use or purposes, including use as non-motorized transportation facilities. 163 Click Here to Return to Agenda
Resolution No. 2022 – XXX
Street Vacation 51780 Avenida Morales LAD2021-0002
Adopted: March 1, 2022

SECTION 2. The City Council hereby orders the vacation of the portion of the 150-square-foot portion of Avenida Morales as shown in the attached Exhibits A and B.

SECTION 3. The City Council hereby determines that adoption of the vacation will cause no significant negative environmental impact. In addition to the Recitals, which the City Council adopts as part of its findings and expressly incorporates into the approval of this Resolution, the street vacation is categorically exempt under the California Environmental Quality Act (CEQA) as a Class 1 exemption pursuant to CEQA Guidelines Section 15301(c) (14 Cal. Code Regs. §15301(c).) Class 1 consists of, among other items, minor alterations of existing public or private facilities or topographical features, involving negligible or no expansion of existing or former use. The types of “existing facilities” itemized in Section 15301 are not intended to be all-inclusive of the types of projects which might fall within Class 1, but Subdivision (c) expressly includes existing highways, streets, bicycle and pedestrian trails, and similar facilities. The street vacation here is small in the amount of square footage, and that square footage is situated in a manner unnecessary for circulation of traffic or for any other present or prospective public use or purposes. The street vacation does not authorize any other use. Therefore, the street vacation involves no or negligible expansion of use and is categorically exempt pursuant to CEQA Guidelines Section 15301(c).

SECTION 4. The City Council hereby orders that the vacation shall not be effective until the City Clerk record a certified copy of this Resolution with attached Exhibits A and B with the Riverside County Recorder.

SECTION 5. The City Council hereby determines and orders that the City Clerk is hereby authorized and directed to record a certified copy of this Resolution in the Office of the County Recorder of Riverside County, California.

PASSED, APPROVED AND ADOPTED at a regular meeting of the La Quinta City Council held on this 1st day of March, 2022, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
164 Click Here to Return to Agenda
Resolution No. 2022 – XXX
Street Vacation 51780 Avenida Morales LAD2021-0002
Adopted: March 1, 2022

_______________________
LINDA EVANS, Mayor
City of La Quinta, California
ATTEST:
________________________
MONIKA RADEVA, City Clerk
City of La Quinta
APPROVED AS TO FORM:
__________________________
WILLIAM H. IHRKE, City Attorney
City of La Quinta
165 Click Here to Return to Agenda
166 Click Here to Return to Agenda
167 Click Here to Return to Agenda
168 Click Here to Return to Agenda

VICINITY MAP
51780
STREET

VACATION
AREA

AVENIDA MORALES
ATTACHMENT 1
E

AVENIDA MONTEZUMA
NTS

CALLE SINALOA
169 Click Here to Return to Agenda

DRIVEWAY
GARAGE

EXISTING

RESIDENCE
DN
BBQ
BAJA
1'-6"
5'-0"
12'-0" TO FACE OF WALL
15'-0" 7'-0"
12'-0" 5'-0" 15'-4"
4'-0"
20'-1"
14'-4"
17'-5"
9'-6"
7'-0"
7'-0"
5'-0"
3'-4"
4" 4"
2'-4"
1'-0"
7'-5"
10"10"
8'-3"
11'-7"
7'-6"
7'-0"
1'-10"
8'-0"
7'-1"
1'-0"
1'-6"
7'-2" 5'-3"
1'-0"1'-0"
12'-3"
1'-0"
3'-1" 7'-0" 2'-6"
0"
42'-5"
SPA
POOL
AVENIDA MORALES R.O.W
1'-0"
4"
3'-4" 4"
6'-3"
4"
3'-0"
4"
2'-11"
4"
3'-0"
4"
3'-0"
12'-3"
4"
3'-0"
3'-4" 14'-1"
4"
2'-0"
4"
7'-8"
12'-0" TO FACE OF PILASTER
12'-0" TO FACE OF PILASTER
15'-0" TO WATER LINE
15'-0" TO WATERLINE 12'-5"

AVENIDA

MORALES
NEW P.L.
3'-0" T0 WATER
NORTH

PROPOSED SITE PLAN
⅊40.97

9.03 ⅊
L=43.01
R=80.00
NEW PL

VACATEDPL

9.03 ⅊11.29
⅊100.00
⅊100.00
170 Click Here to Return to Agenda
171
Click Here to Return to Agenda
172
Click Here to Return to Agenda
173
Click Here to Return to Agenda
174
Click Here to Return to Agenda
175
Click Here to Return to Agenda
176
Click Here to Return to Agenda
177
Click Here to Return to Agenda
178 Click Here to Return to Agenda
Text of Ad: 02/09/2022
179 Click Here to Return to Agenda

CITYOFLAQUINTA

CITYCOUNCIL

NOTICEOFPUBLICHEARING
NOTICE ISHEREBY GIVEN thattheCityofLaQuinta City Council willholdaPUBLIC HEARING onMarch 1, 2022, at5:00p.m. intheLaQuinta CityHallCouncil Chamber, 78495 Calle Tampico, LaQuinta, California, onthefollowing item:

APPLICATION: STREET VACATION
LAD2021-0002
APPLICANT: PATRICK AND LAURA
O’CONNELL
LOCATION: PORTION OFAVENIDA
MORALES FRONTING 51780

AVENIDA MORALES
REQUEST: ADOPT ARESOLUTION TO

VACATE APORTION OF

AVENIDA MORALES PUBLIC

RIGHT-OF-WAY FRONTING
51780 AVENIDA MORALES

INSANTA CARMELITA AT
VALE LAQUINTA, UNIT NO. 2
LEGAL: PUBLIC RIGHT-OF-WAY
This vacation proceeding isconducted under Chapter 3, Part3, Division 9oftheStreets and Highways Code oftheStreets andHighways Code.

TheLaQuinta Design andDevelopment Department has determined theproposed action is categorically exempt under theCalifornia Environmental Quality ActGuidelines, Section 15301 c), Existing Facilities.

SPECIAL NOTICE: Teleconferencing andTelephonic Accessibility InEffect – Any person may participate inthispublic hearing andprovide verbal comments either in-person orbyteleconference ortelephonic accessibility viaZoom, pursuant to Executive Orders N-60-20 and N-08-21 executed bytheGovernor ofCalifornia, and subsequently Assembly Bill361 (Stats. 2021, Ch. 165), enacted inresponse tothestate of emergency relating tonovel coronavirus disease 2019 (COVID-19) andenabling teleconferencing accommodations bysuspending orwaiving specified provisions oftheRalph M. Brown Act (Government Code § 54950 etseq.). Any member may participate via teleconference byjoining thispublic hearing virtually at https:// us06web.zoom.us/j/82540879912 orviatelephonic accessibility bydialing (253) 215 8782 and entering Meeting ID8254087 9912.

Members ofthepublic wanting tolisten tothismeeting may dosobytuning-inlivevia https:// laquinta.12milesout.com/video/live
Any person may submit written comments onanyofthecontemplated actions listed above tothePublic Works Department at ayu@laquintaca. gov priortothePublic Hearings and/or may appear andbeheard insupport of, oropposition to, theproject atthetime ofthePublic Hearings. Ifyouchallenge thedecision ofanyoftheactions listed above incourt, youmay belimited toraising only those issues that youorsomeone else raised either atthePublic Hearings orinwritten correspondence delivered tothePublic Works Department at, orprior tothePublic Hearings. Foradditional information, please contact AmyYu, Associate Engineer atayu@laquintaca. gov.

IntheCity'sefforts tocomply with therequirements ofTitle IIoftheAmericans with Disabilities ActOf1990, thePublic Works Department requires thatanyperson inneed of any type ofspecial equipment, assistance oraccommodation( s) inorder tocommunicate at aCitypublic meeting, inform thePublic Works Department aminimum of72hours priorto thescheduled meeting.

PUBLISH ONFEBRUARY 13AND 20, 2022
180 Click Here to Return to Agenda
City of La Quinta
CITY COUNCIL MEETING: March 1, 2022

STAFF REPORT
AGENDA TITLE: CONTINUED FROM FEBRUARY 15, 2022:

INTRODUCE FOR FIRST READING AN ORDINANCE APPROVING A
DEVELOPMENT AGREEMENT FOR POLO VILLAS RESIDENCES. CEQA:

THE PROJECT IS CONSISTENT WITH PREVIOUSLY ADOPTED
ENVIRONMENTAL ASSESSMENTS 2005-537 AND 2010-608. LOCATION:

WEST OF MADISON STREET BETWEEN AVENUES 50 AND 52

RECOMMENDATION

1. Make a finding, included in Ordinance No. ___, that adopting this ordinance is consistent with the previously adopted Mitigated Negative Declarations, EA2005-537 and EA2010-608 for Tracts 33085 and 36279.

2. Move to take up Ordinance No.___ by title and number only and waive further reading.

3. Move to introduce at first reading, Ordinance No.___ to approve a development agreement for Polo Villas Residences.

EXECUTIVE SUMMARY
 Tract 33085 was approved by City Council December 5, 2017, for seven (7) units, south of Beth Circle, and Tract 36279 was approved by City Council March 17, 2015, for 11 units, north of Beth Circle (Attachment 1). Mitigated Negative Declarations (MND) were also adopted for each Tract.
 Tract 36279 was built in 2015/2016 and the 11 units each currently have active Short-Term Vacation Rental (STVR) permits since September 2016. Tract 33085 has not yet been built.
 The applicant is proposing a development agreement to continue the short-term rental of the existing 11 units and allow seven units (not yet built) to be rented short-term.

PUBLIC HEARING ITEM NO. 2
181 Click Here to Return to Agenda
 The Planning Commission at its regular meeting of January 25, 2022, voted to recommend City Council approve the development agreement.

FISCAL IMPACT
The project is estimated to generate revenue primarily through property taxes, development impact fees (DIF), property taxes in-lieu of vehicle license fees and transient occupancy tax (TOT). The following projections are included in the Fiscal Impact Study prepared by the applicant (Attachment 2).

Estimated Fiscal Impact at Build-out
Recurring Revenues
Property Tax $23,263
Property Tax in lieu of VLF $7,731
Transient Occupancy Tax $831,183
Off-site Sales Tax $43,849
Other revenues $36,140
Total Recurring Revenues $942,166
Recurring Expenditures
(i.e., Police, Fire, City staff)
$131,577
Net Fiscal Surplus $810,589
The additional costs incurred to the City as a result of the project are less than the additional revenues generated; therefore, resulting in a net positive fiscal impact.

BACKGROUND/ANALYSIS
The Polo Villas residential development is comprised of 18 units within two (2) tract maps numbered 33085 and 36279 (Attachment 1). The tentative tract map for Tract 33085 was approved and an MND was adopted for seven (7) units on December 6, 2005. The final tract map was approved and recorded in December 2017. The tentative tract map for Tract 36279 was approved and an MND was adopted for 11 units on August 2, 2011. The final tract map was approved in March 2015 and recorded in April 2015. Of the 18 units, 11 have been built and each currently have active STVR permits since 2016.

In May 2021, Council adopted an ordinance that places a permanent ban on issuance of new STVR permits, with the exception of units within the Village and Tourist Commercial zones and developments subject to a development agreement (DA) that stipulate short-term rental is allowed, among other specified exceptions. Those with current active STVR permits may continue to operate as STVRs, but a STVR permit is not transferable and expires when an owner sells their property to a new owner. In this case, the applicant 182 Click Here to Return to Agenda
(GTGF, LLC) has a purchase and sale agreement to buy the 18 properties from the current owner (Desert Polo Land Company, LLC) and wishes to enter into a DA with the City to allow STVRs to continue to operate. Government Code Section 65864 and the La Quinta Municipal Code (LQMC) Section 9.250.020 allow applicants to enter into DAs with the City.

Development Agreement Terms
The terms of the draft DA (Exhibit A) are summarized below:
 The project shall be constructed in accordance with project approvals and shall consist of a residential single-family development specifically developed and available for use as primary residences, secondary residences, and/or short-term vacation rental residences, with the following components:
o Annual permitting fees to be consistent with the City’s fee program;
o Any rental or occupancy of 30 nights or less to be subject to the City’s then-current transient occupancy tax for short-term vacation rentals;
o Rental or occupancy agreements, and material renter or occupant information, shall be retained for a minimum of three (3) years (or other retention period as may be approved by City policy or code) by the applicant or their authorized management company for the short-term vacation rentals at the site;
o Occupancy in any residence, including residences used as shortterm vacation rentals, shall be capped at two (2) persons per bedroom, plus no more than four (4) additional occupants; and o Each of the residences shall allow for transient occupancy, 30 days or less.
 A performance schedule for construction of the seven (7) units on the south side of the project.
 The term of the DA shall be for 50 years.
 The DA shall be reviewed on an annual basis.

Findings
Council is required to make the following findings on the DA per LQMC Section

9.250.020.
 Consistency with the objectives, policies, general land uses, and programs specified in the General Plan and any applicable specific plan as follows:
o Policy LU-6.3: Support and encourage the expansion of the resort industry as a key component of the City’s economic base. 183 Click Here to Return to Agenda
o Policy LU-3.1: Encourage the preservation of neighborhood character and assure a consistent and compatible land use pattern.
o Goal ED-1: A balanced and varied economic base serving both the City’s residents and the region.
o Goal ED-2: The continued growth of the tourism and resort industries in the City.
o The properties are available and must be used for residential purposes which is consistent with the land use pattern in the area.

The properties would also be able to be used for short-term vacation rental residences thus contributing to the economic base and tourism industry of the City.
 Compatibility with the uses authorized in and the regulations prescribed for the land use district in which the real property is located:
o The properties are available and must be used for residential purposes, and may be the residents’ primary residence or secondary residences, and/or may be used for short-term vacation rental residences, which residential use is consistent with the permissible uses of the land use district the property is located in. This is appropriate for the area given the proximity to surrounding residential areas and polo fields to the east of Madison Street.
 Conformity with the public necessity, public convenience, general welfare and good land use practices:
o The properties may be used as residences which is consistent with the surrounding area.
 Will not be detrimental to the health, safety and general welfare:
o The properties may be used as residences which is consistent with the surrounding area.
 Will not adversely affect the orderly development of property or the preservation of property values:
o The DA facilitates development of high-quality homes and extends residential development along Madison Street in the project area.  Will have a positive fiscal impact on the City:
o The fiscal study prepared for the DA shows a positive fiscal impact on the City from revenues gained through payment of certain development impact fees for undeveloped units, increased property taxes and transient occupancy taxes when units are rented on a short-term basis (Attachment 2).
184 Click Here to Return to Agenda

AGENCY AND PUBLIC REVIEW
Public Agency Review
This request was sent to all applicable City departments and all applicable comments have been adequately addressed.

Public Notice
This project was advertised in The Desert Sun newspaper on February 4, 2022, and on February 12, 2022. The hearing notice was also mailed on February 12, 2022, to residents and occupants within a 500 ft. radius of the project site. No written comments have been received as of the date of this writing.

Any written comments received will be handed out at the City Council meeting.

Planning Commission Review
At its regular meeting of January 25, 2022, the Planning Commission voted to recommend Council approve the proposed development agreement (Attachment 3 – Planning Commission Minutes of January 25, 2022). To view the video recording of the meeting, please follow the provided link: La Quinta, CA : Planning Commission Meeting - 1/25/2022 (12milesout.com)

ENVIRONMENTAL REVIEW
The Design and Development Department has determined that the proposed project is consistent with MND EA2005-537 adopted by City Council on December 6, 2005, by Resolution No. 2005-097 and MND EA2010-608 adopted on August 2, 2011, by Resolution No. 2011-073, in that the properties are available and must be used for residential purposes as primary or secondary residences or short-term rental residences.

Prepared by: Cheri Flores, Planning Manager
Approved by: Danny Castro, Design and Development Director Attachments: 1. Vicinity Map

2. Fiscal Impact Study

3. Planning Commission Minutes from January 25, 2022
185 Click Here to Return to Agenda
186 Click Here to Return to Agenda
ORDINANCE NO. XXX

AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF LA QUINTA, CALIFORNIA, APPROVING

A DEVELOPMENT AGREEMENT BY AND

BETWEEN THE CITY OF LA QUINTA AND GTGF,

LLC RELATING TO POLO VILLAS RESIDENCES

AND A FINDING THAT THE PROJECT IS

CONSISTENT WITH ENVIRONMENTAL
ASSESSMENTS 2005-537 AND 2010-608
CASE NUMBER:

DEVELOPMENT AGREEMENT 2021-0003
APPLICANT: GTGF, LLC
WHEREAS, California Government Code Section 65864 et seq. (the "Development Agreement Law") authorizes cities to enter into binding development agreements with persons having a legal or equitable interest in real property for the development of such property, all for the purpose of strengthening the public planning process, encouraging private participation and comprehensive planning, and identifying the economic costs of such development; and
WHEREAS, the Planning Commission of the City of La Quinta, California did, on January 25, 2022, hold a duly noticed Public Hearing and after review and consideration of this item, and hearing all public testimony, adopt Planning Commission Resolution 2022-004 and recommended approval of said Development Agreement for the Polo Villas residences, generally located west of Madison Street, south of Avenue 50 and north of Avenue 52; and
WHEREAS, the City Council of the City of La Quinta, California did, on February 15, 2022, hold a duly noticed Public Hearing to consider the request for a Development Agreement for the Polo Villas residences; and WHEREAS, the Design and Development Department published a public hearing notice in The Desert Sun newspaper on February 4, 2022, as prescribed by the Municipal Code; and
WHEREAS, Design and Development Department determined that the project is consistent with Mitigated Negative Declarations adopted December 6, 2005 (EA2005-537) and August 2, 2011 (EA2010-608) and no further environmental review is required under the California Environmental Quality Act. The Planning Commission considered this determination prior to their recommendation; and
187 Click Here to Return to Agenda
Ordinance No. XX
Polo Villas Residences
Adopted:

WHEREAS, at said Public Hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, the City Council did make the following mandatory findings to justify approval of said Development Agreement (Exhibit A):

1. The Development Agreement is consistent with the applicable objectives, policies, general land uses and programs of the La Quinta General Plan as follows:
a. Policy LU-6.3: Support and encourage the expansion of the resort industry as a key component of the City’s economic base. b. Policy LU-3.1: Encourage the preservation of neighborhood character and assure a consistent and compatible land use pattern.
c. Goal ED-1: A balanced and varied economic base serving both the City’s residents and the region.
d. Goal ED-2: The continued growth of the tourism and resort industries in the City.
e. The properties are available and must be used for residential purposes which is consistent with the land use pattern in the area. The properties would also be able to be rented as shortterm vacation rental residences thus contributing to the economic base and tourism industry of the City.

2. The Development Agreement is compatible with the uses authorized and the regulations prescribed for the land use district in which the real property is located. The properties are available and must be used for residential purposes, and may be the residents’ primary residence or secondary residences, and/or may be used for short-term vacation rentals, which residential use is consistent with the permissible uses of the land use district the property is located in. This is appropriate for the area given the proximity to surrounding residential and polo fields to the east of Madison Street.

3. The Development Agreement is in conformity with the public necessity, public convenience, general welfare and good land use practices. The project may be used as residences, which is consistent with the surrounding area and extends residential development along Madison Street in the project area.

4. The Development Agreement will not be detrimental to the health, safety and general welfare. The project may be used as residences, which is consistent with the surrounding area.

5. The Development Agreement will not adversely affect the orderly development of property or the preservation of property values in that 188 Click Here to Return to Agenda
Ordinance No. XX
Polo Villas Residences
Adopted:

it facilitates development of high-quality homes and extends residential development along Madison Street in the project area.

6. The Development Agreement will have a positive fiscal impact on the City, in that implementation of the Development Agreement will produce revenues through payment of certain development impact fees, increased property taxes, and transient occupancy taxes, when units are rented on a short-term basis.

NOW, THEREFORE, the City Council of the City of La Quinta does ordain as follows:

SECTION 1. FINDINGS AND APPROVAL: That the above recitations are true and constitute the Findings of the City Council in this case.

SECTION 2. EFFECTIVE DATE: This Ordinance shall be in full force and effect thirty (30) days after its adoption.

SECTION 3. POSTING: The City Clerk shall, within 15 days after passage of this Ordinance, cause it to be posted in at least three public places designated by resolution of the City Council, shall certify to the adoption and posting of this Ordinance, and shall cause this Ordinance and its certification, together with proof of posting to be entered into the permanent record of Ordinances of the City of La Quinta.

SECTION 4. CORRECTIVE AMENDMENTS: the City Council does hereby grant the City Clerk the ability to make minor amendments and corrections of typographical or clerical errors to “Exhibit A” to ensure consistency of all approved text amendments prior to the publication in the La Quinta Municipal Code.

SECTION 5. SEVERABILITY: If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each and every section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more section, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared unconstitutional.

PASSED, APPROVED and ADOPTED, at a regular meeting of the La Quinta City Council held this 15th day of February, 2022, by the following vote:
189 Click Here to Return to Agenda
Ordinance No. XX
Polo Villas Residences
Adopted:

AYES:

NOES:

ABSENT:

ABSTAIN:
_______________________
LINDA EVANS, Mayor
City of La Quinta, California
ATTEST:
_______________________________
MONIKA RADEVA, City Clerk
City of La Quinta, California
APPROVED AS TO FORM:
__________________________________
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
190 Click Here to Return to Agenda
Ordinance No. XX
Polo Villas Residences
Adopted:

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF LA QUINTA )
I, MONIKA RADEVA, City Clerk of the City of La Quinta, California, do hereby certify the foregoing to be a full, true, and correct copy of Ordinance No. (enter number) which was introduced at a regular meeting on the ______ day of ______________, 2022, and was adopted at a regular meeting held on the _________ day of ________________, 2022, 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 , pursuant to Council Resolution.
_______________________
MONIKA RADEVA, City Clerk
City of La Quinta, California
191 Click Here to Return to Agenda
192 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22

RECORDING REQUESTED BY AND

WHEN RECORDED MAIL TO
City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
Attn: City Clerk
Space Above This Line for Recorder’s Use
(Exempt from Recording Fee per Gov’t Code §6103
and §27383)

DEVELOPMENT AGREEMENT BY AND BETWEEN
THE

CITY OF LA QUINTA
AND

GTGF, LLC
ORDINANCE NO. XXX

EXHIBIT A
ADOPTED: _________, 2022
193 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 -1-

DEVELOPMENT AGREEMENT
This Development Agreement (the “Agreement”) is entered into as of the day of ____________ ___, 2022 (“Reference Date”), by and between the CITY OF LA QUINTA, a California municipal corporation and charter city organized and existing under the Constitution of the State of the California (“City”), and GTGF, LLC, a Delaware limited liability company, (“Developer”), with reference to the following:

RECITALS:

A. Government Code Section 65864 et seq. (“Development Agreement Act”) authorizes City to enter into a binding development agreement for the development of real property within its jurisdiction with persons having legal or equitable interest in such real property.

B. Pursuant to Government Code Section 65865, City has adopted its Development Agreement Ordinance (La Quinta Municipal Code Section 9.250.020) establishing procedures and requirements for such development agreements (“Development Agreement Ordinance”).

C. Developer has an equitable interest pursuant to that certain Agreement of Purchase and Sale entered into on or about October 27, 2021, by and between Developer (as Buyer) and Desert Polo Land Company, LLC, a Delaware limited liability company (as Seller) (the “Purchase/Sale Agreement”), for the purchase to own certain improved real property consisting of 11 single-family residence (SFR) properties located on multiple parcels at the addresses 51005- 51205 Evangeline Way, La Quinta, CA 92553, and certain vacant real property consisting of 7 unimproved residential lots with Assessor Parcel Numbers (“APNs”) 777-500-016 thru -022 and 777-500-025, in the City of La Quinta, County of Riverside, State of California, as more particularly described in the legal descriptions in Exhibit A attached hereto and incorporated herein by this reference (collectively, the “Property” and each individual parcel (whether improved or vacant) may be referred to herein as “One of the Properties”), and more particularly depicted with corresponding APNs on the Site Map attached hereto as Exhibit B and incorporated herein by this reference (the “Site”).

D. Developer has duly submitted an application for a development agreement and environmental assessment for the development of the Property and/or improvements to previously improved portions of the Property, to use as a residential community that includes and would allow for the development, permitting, operation and use of eighteen (18) residences constructed or be constructed within the Site as short-term vacation rentals pursuant to Chapter 3.25 of the La Quinta Municipal Code (briefly summarized here as the “Project” and more fully defined below in this Agreement). (For reference purposes only, a copy of Chapter 3.25, as that chapter exists on the Effective Date, is attached to this Agreement as Exhibit E.) The Project is more fully described in, and subject to (i) this Agreement, (ii) the City’s General Plan,(iii) Final Tract Map Nos. 36279 and 33085, and any conditions of approval appurtenant thereto (iv) any applicable Specific Plan or Site Development Permit in effect as of the Effective Date, and any conditions of approval appurtenant thereto, (v) any future discretionary or ministerial approvals and/or permits issued for the Property, Site or Project (collectively, the “Project Site Development Permits”); and (vi) any future subdivision maps approved for the Property, Site, or Project, (collectively, the “Future Tract Maps”). The documents, permits, approvals, and conditions described in the foregoing clauses (i)- 194 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 -2-
(vi) are collectively referred to herein as the “Project Approvals,” and are, or when approved or issued shall be, on file with the City Clerk.

E. A condition for the closing of the escrow for the Property as set forth in the Purchase/Sale Agreement is the entering into a development agreement between Developer and City. This Agreement is in furtherance of satisfying said condition to closing. Therefore, pursuant to the terms and conditions of the Purchase/Sale Agreement and this Agreement, as of the recording date of this Agreement, Developer owns fee simple title to the Property, and by their execution of this Agreement, City and Developer consent to recordation of this Agreement against the Property, including, without limitation, each One of the Properties that comprise the Site.

F. Consistent with Section 9.250.020 of the La Quinta Municipal Code, City and Developer desire to enter into a binding agreement that shall be construed as a development agreement within the meaning of the Development Agreement Act. This Agreement will eliminate uncertainty in planning for and secure the orderly development of the Project, ensure a desirable and functional community environment, provide effective and efficient development of public facilities, infrastructure, and services appropriate for the development of the Project, and assure attainment of the maximum effective utilization of resources within the City, by achieving the goals and purposes of the Development Agreement Act. In exchange for these benefits to City, Developer desires to receive the assurance that it may proceed with development of the Project in accordance with the terms and conditions of this Agreement and the Project Approvals, all as more particularly set forth herein.

G. The Planning Commission and the City Council have determined that the Project and this Agreement are consistent with the City’s General Plan, including the goals and objectives thereof.

H. All actions taken by City have been duly taken in accordance with all applicable legal requirements, including the California Environmental Quality Act (“CEQA”), and all other requirements for notice, public hearings, findings, votes and other procedural matters.

I. On _________, 2022, the City Council adopted its Ordinance No. ___ approving this Agreement.

AGREEMENT:

NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein by this reference, the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and legal sufficiency of which is hereby acknowledged, the Parties do hereby agree as follows:

1. GENERAL

1.1 Definitions

1.1.1 “Affiliated Party” shall mean (i) any person or entity that directly or indirectly owns or has voting or management rights of Developer or its members or managers, (ii) any entity that is directly or indirectly owned, controlled or managed by Developer 195 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 -3-
or its members or managers, or such members’ or managers’ shareholders, or (iii) any entity that is a permitted assignee under the Purchase/Sale Agreement which meets the criteria in either clause (i) or (ii) of this Section 1.1.1.

1.1.2 “Agreement” means this Development Agreement and all amendments and modifications thereto.

1.1.3 “Applicable Rules” means the rules, regulations,
ordinances and officially adopted policies of the City of La Quinta in full force and effect as of the Effective Date of this Agreement, including, but not limited to, the City’s General Plan, Chapter

3.25 of the La Quinta Municipal Code, and any applicable zoning ordinance and specific plan.

Additionally, notwithstanding the language of this Section or any other language in this Agreement, all specifications, standards and policies regarding the design and construction of public works facilities required with respect to the Project, if any, shall be those that are in effect at the time any of said Project applications and plans are being processed for approval and/or under construction.

1.1.4 “Assignment and Assumption Agreement” shall have the meaning set forth in Section 1.8.1 of this Agreement.

1.1.5 “CEQA” means the California Environmental Quality Act (Cal. Public Resources Code Sections 21000 et seq.) and the State CEQA Guidelines (Cal. Code of Regs., Title 14, Sections 15000 et seq.).

1.1.6 “City” means the City of La Quinta, a charter city and municipal corporation, including each and every agency, department, board, commission, authority, employee, and/or official acting under the authority of the City, including without limitation the City Council and the Planning Commission.

1.1.7 “City Council” means the City Council of the City and the legislative body of the City pursuant to California Government Code Section 65867.

1.1.8 “Development Director” means the Director of the City’s Design and Development Department, or his or her designee.

1.1.9 “Developer” means the Developer identified in the preamble of this Agreement.

1.1.10 “Development Agreement Act” means Section 65864 et seq., of the California Government Code.

1.1.11 “Discretionary Action” means an action which requires the exercise of judgment, deliberation or a decision on the part of City, including any board, commission, committee, or department or any officer or employee thereof, in the process of approving or disapproving a particular activity, as distinguished from an activity which merely requires City, including any board, commission or department or any officer or employee thereof, to determine whether there has been compliance with statutes, ordinances, regulations, or other adopted policies.
196 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 -4-

1.1.12 “Effective Date” shall have the meaning set forth in Section

1.3 of this Agreement.

1.1.13 “Future Tract Maps” shall have the meaning set forth in Recital D.

1.1.14 “General Plan” means the General Plan of the City.

1.1.15 “Insubstantial Modification” shall have the meaning set forth in Section 1.6(a) of this Agreement.

1.1.16 “New Laws” means amendments or modifications to the Applicable Rules, and all ordinances, resolutions, initiatives, regulations, rules, laws, plans, policies, and guidelines of the City and its City Council, Planning Commission, and all other City boards, commissions, departments, agencies, and committees enacted or adopted after the Effective Date.

1.1.17 [reserved]

1.1.18 “Parties” means collectively Developer and City. Each shall be referred to in the singular as a “Party”.

1.1.19 “Performance Schedule” shall mean the performance schedule for the Project attached hereto as Exhibit D and incorporated herein by reference, and as further described in Section 3.3.

1.1.20 “Planning Commission” means the City Planning
Commission and the planning agency of the City pursuant to California Government Code Section 65867.

1.1.21 “Project” means the development, improvement, use and operation of the Site as set forth in more detail in Section 3.1.

1.1.22 “Project Approvals” shall have the meaning set forth in Recital D.

1.1.23 “Purchase/Sale Agreement” shall have the meaning set forth in Recital C.

1.1.24 “Reserved Powers” means the rights and authority excepted from this Agreement’s restrictions on City’s police powers and which are instead reserved to City, its City Council, Planning Commission, and all other City boards, commissions, departments, agencies, and committees. The Reserved Powers include the powers to enact or adopt New Laws or take future Discretionary Actions after the Effective Date of this Agreement that may be in conflict with the Applicable Rules and Project Approvals, except such New Laws which would prevent, or materially impair Developer’s ability to develop the Project and/or use the Property and Site in accordance with the Project Approvals and this Agreement; provided, however, that with respect to such New Laws which would conflict with this Agreement or 197 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 -5-
prevent, or materially impair Developer’s ability to develop or use the Project in accordance with the Project Approvals, such New Laws shall apply to the Project and the Site only if such New Laws are: (1) necessary to protect the public health and safety, and are generally applicable on a City-wide basis in furtherance of the identified public health and safety concern (except in the event of natural disasters as found by the City Council such as floods, earthquakes and similar acts of God, which shall apply even if not applicable on a City-wide basis); (2) amendments to Uniform Codes, as adopted by City, and/or the La Quinta Municipal Code, as applicable, regarding the construction, engineering and design standards for private and public improvements to be constructed on the Property or at the Site; (3) required by a non-City governmental entity to be adopted by or applied by the City (or, if adoption is optional, the failure to adopt or apply such non-City law or regulation would cause the City to sustain a material loss of funds or material loss of access to funding or other resources, with “material loss” in this clause (3) meaning Seventy Five Thousand Dollars ($75,000.00) or more, as such minimum threshold amount of $75,000 may be adjusted as of January 1 of each calendar year (the “Adjustment Date”) during the Term of this Agreement by any increases in the Consumer Price Index for All Urban Consumers for the Riverside-San Bernardino-Ontario, California areas (1982-84=100) from the Effective Date to the applicable Adjustment Date), (4) necessary to comply with state or federal laws and regulations (whether enacted previous or subsequent to the Effective Date of this Agreement), or (5) adopted by the City on a City wide basis and applied to the Property (and each One of the Properties) and the Site in a non-discriminatory manner that does not prevent or materially impair Developer’s ability to develop the Project and/or operate or use the Site and Project in accordance with the Project Approvals and this Agreement.

1.1.25 “Site” shall have the meaning set forth in Recital C.

1.1.26 [reserved]

1.1.27 “Site Map” means the map that shows the location of the Site and immediately adjacent properties, which is attached hereto as Exhibit B.

1.1.28 [reserved]

1.1.29 “Term” means the period of time for which the Agreement shall be effective in accordance with Section 1.2 herein.

1.1.30 “Transferee” means individually or collectively, Developer’s successors in interest, assignees or transferees of all or any portion of the Site.

1.1.31 “Uniform Codes” means those building, electrical, mechanical, plumbing, fire and other similar regulations of a City-wide scope which are based on recommendations of a multi-state professional organization and become applicable throughout the City, such as, but not limited to, the Uniform Building Code, the Uniform Electrical Code, the Uniform Mechanical Code, Uniform Plumbing Code, or the Uniform Fire Code (including those amendments to the promulgated uniform codes which reflect local modification to implement the published recommendations of the multi-state organization and which are applicable City-wide).

1.1.32 “Zoning Ordinance” means Title 9 of the La Quinta Municipal Code.
198 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 -6-

1.2 Term.

The term of this Agreement shall commence on the Effective Date and shall continue for fifty (50) years thereafter, unless said term is otherwise terminated, modified, or extended by circumstances set forth in this Agreement or by mutual consent of the Parties after the satisfaction of all applicable public hearing and related procedural requirements.

1.3 Effective Date.

This Agreement shall be effective, and the obligations of the Parties hereunder shall be effective, as of __________________ (“Effective Date”), which is the date that Ordinance No. _____ takes effect.

1.4 Statement of Benefits and Consideration.

The Parties have determined that a development agreement is appropriate for the construction and operation of the Project due to the substantial benefits to be derived therefrom.

City finds and determines that the Project is in the best interests of the health, safety and general welfare of City and its residents, and that entering into this Agreement constitutes a valid, present exercise of its police power. City has undertaken the necessary proceedings, has found and determined that this Agreement is consistent with the General Plan, and has adopted Ordinance No._____ approving this Agreement. As a result of the development of the Project in accordance with this Agreement, City will receive substantial benefits.

In consideration of the substantial benefits, commitments, and consideration to be provided by Developer pursuant to this Agreement, and in order to strengthen the public planning process and reduce the economic costs of development, City hereby provides Developer assurance that Developer can proceed with the construction and use of the Project at the Site for the Term of this Agreement pursuant to the Applicable Rules and this Agreement. Developer would not enter into this Agreement or agree to provide the public benefits, commitments and consideration described in this Agreement if it were not for the certainty provided by this Agreement that the Project and the Site can be constructed and used during the Term of this Agreement in accordance with the Applicable Rules and this Agreement.

1.5 City CEQA Findings.

City finds that review of the environmental impacts of this Agreement, and the Project as a whole, has been conducted in accordance with the provisions of CEQA and the state and local procedural review requirements adopted thereunder. City has given consideration to such environmental review prior to its approval of this Agreement and the Project, and has undertaken all actions necessary to comply with CEQA.

1.6 Modification or Amendment of this Agreement.

Except as expressly stated to the contrary herein, this Agreement may be modified or amended from time to time, in whole or in part, only by mutual written consent of the Parties or 199 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 -7-
their successors in interest, consistent with Government Code Sections 65867-65868, the City’s Development Agreement Ordinance, and the following terms:
(a) Insubstantial Modifications. The Parties acknowledge that refinements and further development of the Project may demonstrate that minor changes are appropriate with respect to the details of the Project development and the performance of the parties under this Agreement. The Parties desire to retain a certain degree of flexibility with respect to the details of the Project development and with respect to those items covered in general terms under this Agreement, and thus desire to provide a streamlined method of approving insubstantial modifications to this Agreement. Therefore, any minor modification to this Agreement which does not modify (i) the Term of this Agreement; (ii) permitted uses of the Site, (iii) maximum density or intensity of use, except as specifically allowed in the Project Approvals, (iv) provisions for the reservation or dedication of land, (v) conditions, terms, restrictions or requirements for subsequent discretionary actions, or (vi) monetary obligations of Developer (hereinafter an “Insubstantial Modification”), and that can be processed under CEQA either as not a “project” under CEQA or as exempt from CEQA shall not require a public hearing prior to the parties executing a modification to this Agreement. Either Party may propose an Insubstantial Modification, consent to which shall not be unreasonably withheld, conditioned, or delayed by the other Party. Upon the written request of Developer for a modification to this Agreement, the City Manager or his/her designee shall determine, in his/her sole discretion: (1) whether, in his/her reasonable judgment, the requested modification constitutes an “Insubstantial Modification,” as defined herein; (2) whether the requested modification is consistent with Applicable Rules (other than that portion of this Agreement sought to be modified); and (3) whether, in his/her reasonable judgment, the requested modification tends to promote the goals of this Agreement. If the City Manager or his/her designee determines that the requested modification is an “Insubstantial Modification” that is consistent with Applicable Rules and tends to promote the goals of this Agreement, the proposed modification will be approved by the City as an Insubstantial Modification, and a written modification will be executed by the Parties and attached to this Agreement. Any such Insubstantial Modification shall not be deemed an “amendment” to this Agreement under Government Code Section 65858.
(b) Substantial Amendments. Except as otherwise described in Section 1.6(a) of this Agreement, amendments to this Agreement shall be “Substantial Amendments” which require notice and a public hearing pursuant to California Government Code Section 65868. (d) Parties Required to Amend. Where a portion of Developer’s rights or obligations have been transferred, assigned, and assumed pursuant to Section 1.8 of this Agreement, the signature of the person or entity to whom such rights or obligations have been assigned shall not be required to amend this Agreement unless such amendment would materially alter the rights or obligations of such assignee/transferee hereunder.

1.6.1 Effect of Amendment. Any amendment to this Agreement shall be operative only as to those specific portions of this Agreement expressly subject to the amendment, and all other terms and conditions of this Agreement shall remain in full force and effect without interruption.
200 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 -8-

1.7 Termination; Applicable to All of the Property.

Unless terminated earlier, pursuant to the terms hereof, this Agreement shall automatically terminate and be of no further effect upon the expiration of the Term of this Agreement as set forth in Section 1.2. Termination of this Agreement, for any reason, shall not, by itself, affect any right or duty arising from entitlements or approvals set forth under the Project Approvals. Any termination of this Agreement shall affect each and every One of the Properties and the entire Property and the Site, and no owner of One of the Properties may apply for a termination or terminate this Agreement with respect to that owner’s One of the Properties unless all of the owners of the Property and each and every One of the Properties apply for and seek to terminate this Agreement for the entire Property and Site. In explanation of the foregoing, this Agreement shall apply to each One of the Properties for the entire duration of the Term, and no One of the Properties may be released from or excused for performance under this Agreement by way of terminating this Agreement for that One of the Properties, unless all of the Property and Site are released from this Agreement.

1.8 Assignment of Interests, Rights and Obligations.

Developer may transfer or assign all or any portion of its interests, rights or obligations under this Agreement to third parties acquiring an interest or estate in any One of the Properties, the Property and/or the Site, or any portion thereof, including, without limitation, purchasers or ground lessee(s) of lots, parcels or facilities, subject to the following:

1.8.1 Assignment and Assumption Agreements.
(a) In connection with the transfer or assignment by Developer of all or any portion of the Property and/or the Site (other than a transfer or assignment by Developer to a Mortgagee, defined below), Developer and the transferee shall enter into a written agreement (an “Assignment and Assumption Agreement”) regarding the respective interests, rights and obligations of Developer and the transferee in and under this Agreement. Such Assignment and Assumption Agreement may: (i) release Developer from obligations under this Agreement pertaining to that portion of the Property and/or Site being transferred, as described in the Assignment and Assumption Agreement, provided that the transferee expressly assumes such obligations; (ii) transfer to the transferee vested rights to develop and/or improve and use that portion of the Property and/or Site being transferred; and (iii) address any other matter deemed by Developer to be necessary or appropriate in connection with the transfer or assignment. (b) Developer shall obtain City’s prior written consent to any Assignment and Assumption Agreement (other than a transfer or assignment by Developer to an Affiliated Party or a Mortgagee), which consent shall not be unreasonably withheld, conditioned or delayed. Failure by City to respond within thirty (30) days to any request made by Developer for such consent shall be deemed to be City’s unconditional approval of the Assignment and Assumption Agreement in question. City may refuse to give its consent only if, in light of the proposed transferee’s reputation and financial resources, such transferee would not in City’s reasonable opinion be able to perform the obligations proposed to be assumed by such transferee.

Such determination shall be made by the City Manager in consultation with the City Attorney and is appealable by Developer directly to the City Council. 201 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 -9-
(c) An Assignment and Assumption Agreement shall be binding on Developer, City and the transferee provided (i) Developer is not then in default under this Agreement, (ii) Developer has provided notice to City of such transfer, and City has approved the transfer, and (iii) the transferee executes and delivers to City a written agreement in which (a) the name and address of the transferee is set forth and (b) the transferee expressly and unconditionally assumes each and every obligation of Developer under this Agreement with respect to the Property and/or Site, or portion thereof, being transferred (to the extent Developer has not retained a continuing obligation), (c) Developer no longer has any legal or equitable interest in the Property and/or Site or the portion thereof sold or transferred, as applicable, and (d) City has, in the exercise of its reasonable discretion, satisfied itself of transferee’s ability to assume those Developer obligations under this Agreement being assigned. Upon recordation of any Assignment and Assumption Agreement in the Official Records of Riverside County, Developer shall automatically be released from those obligations assumed by the transferee therein. (d) Developer shall be free from any and all liabilities accruing on or after the date of any assignment or transfer with respect to those obligations assumed by a transferee pursuant to an Assignment and Assumption Agreement. No breach or default hereunder by any person succeeding to any portion of Developer’s obligations under this Agreement shall be attributed to Developer, nor may Developer’s rights hereunder be canceled or diminished in any way by any breach or default by any such person following Developer’s release of obligations under the Project Approvals pursuant to an Assignment and Assumption Agreement assigning Developer’s obligations to that successor.
(e) The City may assign or transfer any of its rights or obligations under this Agreement with the approval of the Developer, which approval shall not be unreasonably withheld.

1.8.2 Transfers for Mortgages.

Any transfers or assignments for any Mortgagee shall be subject to the provisions in Article 7 of this Agreement.

1.8.3 Transfers to Affiliated Parties.

Developer, or any Affiliated Party of Developer, may at any time and without City’s prior consent, transfer all or any portion of its rights and obligations under this Agreement to any Affiliated Party of such Transferor and, in connection with the transfer of any such obligations, be released from such obligations. Developer shall deliver to City, no later than ten (10) days after such transfer an Assignment and Assumption Agreement memorializing the transfer of Developer’s rights and obligations under this Agreement to an Affiliated Party, along with that Affiliated Party’s contact information for notices to be delivered pursuant to this Agreement. 202 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 -10-

2. AGREEMENTS AND ASSURANCES

2.1 Agreement and Assurance on the Part of Developer.

In consideration for City entering into this Agreement, and as an inducement for City to obligate itself to carry out the covenants and conditions set forth in this Agreement, and in order to effectuate the purposes and intentions set forth in the Recitals of this Agreement, Developer hereby agrees that the terms and conditions of this Agreement, including the Project Approvals incorporated herein, shall govern development and operation of the Site for the Term of this Agreement.

2.2 Agreement and Assurances on the Part of the City.

In consideration for Developer entering into this Agreement, and as an inducement for Developer to obligate itself to carry out the covenants and conditions set forth in this Agreement, and in order to effectuate the purposes and intentions set forth in this Agreement, City hereby agrees as follows:

2.2.1 Vested Entitlement to Develop.

Developer has the vested right to develop, improve, operate and use the Property, Site, and Project subject to the terms and conditions of this Agreement, the Applicable Rules, Project Approvals and the Reserved Powers. It is the intent of City and Developer that the vesting of development rights of Developer shall include the permitted land uses, densities, and intensities of use of the Property and the Site, timing or phasing of development, zoning, provisions for the reservation or dedication of land for public purposes, and the location and size of public improvements, as well as those other terms and conditions of development of the Project as set forth in this Agreement and the other Project Approvals. Developer’s vested rights under this Agreement shall also include, without limitation, the right to remodel, renovate, rehabilitate, rebuild or replace all improvements on the Property and the Site within the Project (or any portion thereof) throughout the applicable Term for any reason, including, without limitation, in the event of damage, destruction or obsolescence of the existing development or the Project or any portion thereof, subject to the terms and conditions of this Agreement, the Applicable Rules, Project Approvals and the Reserved Powers. Such vesting shall expire upon the earlier of the following occurrences: (a) termination of this Agreement, or (b) expiration of the Term of this Agreement.

Except for the expiration set forth in clause (b) of the preceding sentence, the expiration of the vesting right set forth in the preceding sentence shall not terminate any obligations of Developer under this Agreement that (x) have accrued prior to termination of this Agreement or (y) that expressly survive the termination of this Agreement, such as indemnification obligations.

Notwithstanding anything in this Agreement to the contrary, the Project shall remain subject to the following, to the same extent it would without this Agreement:
(i) all Applicable Rules, unless modified by or in conflict with the provisions of this Agreement;
(ii) the right to develop, improve, and use the Property (and each One of the Properties) and the Site for short-term vacation rentals; 203 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 -11-
(iii) all New Laws applied to Developer through the City’s Reserved Powers; (iv) all subsequent development approvals and the conditions of approval associated therewith, including but not limited to any further site development permits, tract maps, and building permits;
(v) the payment of all fees or exactions in the categories and in the amounts as required at the time such fees are due and payable, which may be at the time of issuance of building permits, or otherwise as specified by applicable law, as existing at the time such fees are due and payable; and (vi) the reservation or dedication of land for public purposes or payment of fees in lieu thereof as required at the time such reservations or dedications or payments in lieu are required under applicable law to be made or paid.

2.2.2 Changes in Applicable Rules.
(A) Nonapplication of Changes in Applicable Rules.

Any change in, or addition to, the Applicable Rules, including, without limitation, any change in the General Plan or Specific Plan, zoning or building regulation, adopted or becoming effective after the Effective Date, including, without limitation, any such change by means of ordinance, City Charter amendment, initiative, referendum, resolution, motion, policy, order or moratorium, initiated or instituted for any reason whatsoever and adopted by the City, City Council, Planning Commission or any other board, commission, department or agency of the City, or any officer or employee thereof, or by the electorate, as the case may be, which would, absent this Agreement, otherwise be applicable to the Property, Site, and/or to the Project and which would conflict in any way with the Applicable Rules, Project Approvals, or this Agreement, or in any way reduce the development rights or assurances provided by this Agreement, shall not be applied to the Property (or any One of the Properties), Site, or Project unless such changes represent an exercise of City’s Reserved Powers, or are otherwise agreed to in this Agreement. It is expressly understood and agreed that Developer has the right to develop, improve, and use the Property (and each One of the Properties) and the Site for short-term vacation rentals pursuant to Article 5 [SHORT TERM VACATION RENTALS/TRANSIENT OCCUPANCY TAXES] of this Agreement. The right to apply for a new or renewal permit, and the City’s ability to review and issue a new or renewal permit, for short-term vacation rentals on the Property (or any One of the Properties), Site, or Project, shall be allowed and authorized by this Agreement.

Notwithstanding the foregoing paragraph, Developer may, in its sole discretion, consent in writing to the application to the Property (which shall mean each One of the Properties), Site, and/or Project of any change in the Applicable Rules.
(B) Changes in Uniform Codes.

Notwithstanding any provision of this Agreement to the contrary, development and use of the Property, Site, and Project shall be subject to changes which may occur from time to time in the Uniform Codes, as such Codes are adopted by the City of La Quinta. 204 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 -12-
(C) Changes Mandated by Federal or State Law.

This Agreement shall not preclude the application to the Property, Site, and Project of changes in, or additions to, the Applicable Rules, including rules, regulations, ordinances and official policies, to the extent that such changes or additions are mandated to be applied to developments such as this Project by state or federal regulations, pursuant to the Reserved Powers.

In the event state or federal laws or regulations prevent or preclude compliance with one or more provisions of this Agreement, such provisions shall be modified or suspended only to the extent necessary to comply with such state or federal laws or regulations.

2.2.3 Subsequent Development Review.

Except as expressly reserved in this Agreement (including the right to apply for a new or renewal permit, and the City’s review and issuance of a new or renewal permit, for short-term vacation rentals), nothing shall impair or interfere with the right of City to require the processing of permits as required by law pursuant to the applicable provisions of the La Quinta Municipal Code and the provisions of Uniform Codes.

2.2.4 Effective Development Standards.

City agrees that it is bound to permit the uses, intensities of use, and densities of development on the Property (and each One of the Properties) and Site which are permitted by this Agreement and the Project Approvals, insofar as this Agreement and the Project Approvals so provide or as otherwise set forth in the Applicable Rules. City hereby agrees that it will not unreasonably withhold, delay or condition any approvals and/or permits which must be issued by City in order for the Project to proceed and for the Property and Site to be used for the authorized uses herein, provided that Developer reasonably and satisfactorily complies with all applicable procedures for processing applications for such approvals and/or permits.

3. DEVELOPER’S OBLIGATIONS

3.1 Development of the Project; Planned Development.

Developer shall construct the Project on the Site only in accordance with the Project Approvals. As depicted in the Project Approvals, as the same may be updated or amended from time to time consistent with the terms hereof, the Project shall consist of a residential single-family development specifically developed and available for residential purposes, and may be the residents’ primary residence or secondary residences, and/or may be used for short-term vacation rentals, with the following components:
(A) Annual permitting fees to be consistent with the City’s fee program; (B) Any rental or occupancy of 30 nights or less to be subject to the City’s then-current transient occupancy tax (“TOT”) for short-term vacation rentals; (C) Rental or occupancy agreements, and material renter or occupant information, shall be retained for a minimum of three (3) years (or other retention period as may 205 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 -13-
be approved by City policy or code) by the Developer or Developer’s authorized management company for the short-term vacation rentals at the Site; (D) Occupancy in any residence, including residences used as shortterm vacation rentals, shall be capped at two (2) persons per bedroom, plus no more than four (4) additional occupants; and
(E) All residences at the Site (and on each One of the Properties) shall allow for transient occupancy, which means occupancy for thirty (30) days or less.

3.2 Compliance with Government Code Section 66473.7
Developer shall comply with the provisions of Government Code Section 66473.7 with respect to any Tract Maps prepared for the Project.

3.3 Performance Schedule
Developer shall plan, design and construct the Project in a timely manner, generally in accordance with the Performance Schedule attached hereto as Exhibit D. The Parties acknowledge and agree that the Performance Schedule is a general sequencing of the phases of the Project, and such sequencing may be modified by Developer to effectuate construction and end-use efficiencies. If Developer, in its good faith discretion, anticipates or decides a phase of the Project may need to be removed or an additional phase of the Project should be added, or the timing for completion of phases should be revised, the Performance Schedule may be amended by mutual written agreement of the Parties. The City may approve or deny a requested amendment to the Performance Schedule in its reasonable discretion, provided that such approval shall not be unreasonably withheld or delayed. In evaluating a Developer request for an amendment to the Performance Schedule, the City shall give strong consideration and latitude to Developer in the Developer’s good faith exercise of business judgement based on market conditions and other factors Developer deems appropriate in connection with the requested amendment. The City Manager is individually authorized to sign such amendments on behalf of the City.

3.4 Funding, Fees, Permits, and Approvals.

3.4.1 No Funding. Developer acknowledges that the City is not providing any funding for the Project.

3.4.2 Fees, Permits, and Approvals Governed by Municipal Code. Except for any permitting or approval process for short-term vacation rentals that would be directly in conflict with Article 5 [SHORT TERM VACATION RENTALS/TRANSIENT OCCUPANCY TAXES] of this Agreement, all permitting and processing fees (including for the permitting and processing of short-term vacation rentals), and all permits and approvals for the Property, Site, and Project, shall be governed by the provisions of the La Quinta Municipal Code and shall be paid and performed in accordance therewith. All such fees and applications submitted to the City shall be processed in accordance with the then-current La Quinta Municipal Code, including the timing provisions therein, and shall not be accorded separate treatment pursuant to this Agreement except for any permitting or approval process for short-term vacation rentals that would be directly in conflict with Article 5 [SHORT TERM VACATION RENTALS/TRANSIENT OCCUPANCY 206 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 -14-
TAXES] of this Agreement. All City-imposed fees, including the fees for short-term vacation rental permitting, shall be in the amount prescribed by the La Quinta Municipal Code or duly adopted City Council Resolution, in effect at the time the fee is imposed.

3.4.3 Imposition of Existing and Future Fees. Nothing set forth in this Agreement is intended to or shall be construed to limit or restrict the City’s authority to impose its existing, or any new or increased, Citywide fees, charges, levies, or assessments for the development of the Property, Site, or Project, or to impose or increase, subject to the required procedure, any taxes applicable to the Property, Site, or Project, including but not limited to transient occupancy taxes.

Developer shall timely pay all applicable fees, charges, levies, assessments, and special and general taxes validly imposed in accordance with the Constitution and laws of the State of California, including without limitation school impact fees in accordance with Government Code §§ 65995 et seq.

3.5 Dedications and Improvements; Improvement Security.

In connection with the recordation of any final subdivision map for the Project, Developer shall, through the execution of a subdivision improvement agreement with the City, provide to the City, in a form reasonably acceptable to the City Attorney, improvement security as provided in the City Code to secure the faithful performance of Developer’s obligations under this Agreement to construct the on-site and off-site improvements identified on that map. The terms, amounts and provisions for release of the improvement security shall be as set forth in the City Code.

3.6 Indemnification.

Developer shall protect, defend, indemnify and hold harmless City and City’s officers, officials, members, employees, volunteers, agents, and representatives (any of the foregoing shall be known individually as “Indemnitee” and collectively as “Indemnitees”), and each of them, jointly and severally, against and from any and all claims, demands, causes of action, damages, costs, expenses, losses and liabilities, at law or in equity, of every kind or nature whatsoever, including reasonable attorneys’ fees and expert witness fees, arising out of or directly relating to construction and development-related activities on the Site by Developer, and including, without limitation, injury to or death of any person or persons and damage to or destruction of any property, threatened, brought or instituted (“Claims”), excluding those resulting from the negligence or willful misconduct of the City. In the event of any action, litigation, or other adversarial proceeding in any way involving the Claims specified in this section, City agrees, at no cost to City, to cooperate with Developer. Developer shall have the obligation to provide the defense of City in the action, litigation, or other adversarial proceeding, either by providing for legal counsel or, at City’s option, timely paying the legal costs incurred by City in the defense of litigation, even though negligence or gross negligence of Developer or its contractors, subcontractors, agents, employees or other persons acting on its behalf has not been established at the time that the defense is provided. In addition, Developer shall be obligated to promptly pay any final judgment or portion thereof rendered against the Indemnitee or Indemnitees. 207 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 -15-
In the event of any court action or proceeding challenging the validity of this Agreement or the Project Approvals, Developer shall indemnify, hold harmless, pay all costs and provide defense for City in said action or proceeding with counsel chosen by Developer and reasonably approved by City. City shall, at no cost to City, cooperate with Developer in any such defense as Developer may reasonably request. In the event Developer fails or refuses to provide such defense of any challenge to this Agreement or the Project Approvals, or any component thereof, City shall have the right not to defend such challenge, and to resolve such challenge in any manner it chooses in its sole discretion, including terminating this Agreement. In the event of such termination, Developer, upon written request of City, shall immediately execute a termination document or other document reasonably required by a reputable title company to remove this Agreement as a cloud on title.

3.7 Obligation to Close Escrow; Recording of Agreement.

This Agreement shall be valid and binding as of the Effective Date; provided, however, that the terms and conditions set forth in this Agreement affecting the vested rights and ability to develop and use the Property, Site, and Project as set forth herein, shall be contingent upon this Agreement being recorded in the Riverside County Recorder’s Office for Official Records, and this Agreement shall be recorded only if Developer closes escrow for the Property pursuant to the Purchase/Sale Agreement. Upon the close of escrow, this Agreement shall be recorded against the Property. If escrow is cancelled or fails to close pursuant to the Purchase/Sale Agreement, this Agreement shall automatically terminate and be of no further force and effect without the need of either Party hereto to take any additional action in furtherance of said termination.

4. CITY’S OBLIGATIONS

4.1 Scope of Subsequent Review/Confirmation of Compliance Process.

Nothing set forth herein shall impair or interfere with the right of City to require the processing of building permits as required by law pursuant to the applicable provisions of the La Quinta Municipal Code and the provisions of City’s Fire Codes and ordinances, Health and Safety Codes and ordinances, and Building, Electrical, Mechanical, and similar building codes.

Prior to each request for a building permit, Developer shall provide City with a Compliance Certificate (“Certificate”), in substantially the same form as that attached hereto as Exhibit C. The Certificate shall be distributed to the relevant City departments in order to check the representations made by Developer on the Certificate.

4.2 Project Approvals Independent.

All approvals required for the Project which may be or have been granted, and all land use entitlements or approvals generally which have been issued or will be issued by City with respect to the Project, constitute independent actions and approvals by City. If any provision of this Agreement or the application of any provision of this Agreement to a particular situation is held by a court of competent jurisdiction to be invalid or unenforceable, or if this Agreement terminates for any reason, then such invalidity, unenforceability or termination of this Agreement or any part hereof shall not affect the validity or effectiveness of any such Project approvals or other land use approvals and entitlements. In such cases, such approvals and entitlements will remain in effect 208 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 -16-
pursuant to their own terms, provisions. It is understood by the Parties that pursuant to existing law, if this Agreement terminates or is held invalid or unenforceable as described above, such approvals and entitlements shall not remain valid for the term of this Agreement, but shall remain valid for the term of such approvals and entitlements.

4.3 Review for Compliance.

City shall review this Developer’s compliance with the terms of Agreement at least once during every twelve (12) month period following the Effective Date of this Agreement, in accordance with City’s procedures and standards for such review. During such periodic review by City, Developer, upon written request from City, shall be required to demonstrate, and hereby agrees to furnish, evidence of good faith compliance with the terms hereof. The failure of City to conduct or complete the annual review as provided herein or in accordance with the Development Agreement Ordinance shall not impact the validity of this Agreement. If, at the conclusion of the annual review provided for herein, Developer has been found in compliance with this Agreement, City, through the Development Director, shall, at Developer’s written request, issue a Certificate of Compliance to Developer stating that (1) this Agreement remains in full force and effect and (2) Developer is in compliance with this Agreement. The Certificate shall be in recordable form and shall contain information necessary to communicate constructive record notice of the finding of compliance. Developer, at its option and sole cost, may record the Certificate.

5. SHORT TERM VACATION RENTALS/TRANSIENT OCCUPANCY TAXES.

5.1 Short Term Vacation Rental Use.

This Agreement expressly provides that short-term vacation rentals are a permitted use on the Property (and each One of the Properties) within the Project that allows residential uses, and the rights to such permitted use are hereby vested pursuant to the terms of this Agreement. Except as expressly provided in this Agreement, the City shall not impose on or apply to the Project or any part thereof (whether by action of the Council, or other legislative body, or by initiative, referendum, or other measure) any ordinance, resolution, standard, directive, condition, or other measure that would prevent, prohibit or materially impair the ability of Developer to apply for and obtain a permit and subsequently use and operate short-term vacation rentals in all residential units within the Project. Notwithstanding the foregoing, and except as expressly provided in this Agreement, short-term vacation rentals on the Property (and each One of the Properties) within the Project shall be subject to Short-Term Vacation Rental Regulations set forth in Chapter 3.25 (or successor provisions) of the La Quinta Municipal Code, including but not limited to violations and penalties for such violations for failing to comply with the City’s Short-Term Vacation Rental Regulations, as long as Developer has the ability to apply for and obtain a permit and subsequently use and operate short-term vacation rentals in all residential units within the Project that are not otherwise subject to a violation or penalty preventing issuance of such permit and allowing such use for failing to comply with the City’s Short-Term Vacation Rental Regulations. Pursuant to the expressed exceptions referenced in the preceding sentence, and due to the unique location, character and history of the Property, the following provisions shall apply to the use and operation of the Property (and each One of the Properties) within the Project:
209 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 -17-

5.1.1 Noise Compliance Provisions. Notwithstanding any provision in the La Quinta Municipal Code to the contrary, no radio receiver, musical instrument, phonograph, compact disk player, loudspeaker, karaoke machine, sound amplifier, or any machine, device or equipment that produces or reproduces any sound shall be used outside of any short-term vacation rental unit, or be audible at a level that violates the standards and regulations for permissible noise as set forth in Sections 9.100.210 and 11.08.040 (or successor provisions) of the La Quinta Municipal Code (as measured using standard noise measuring instruments) from the outside of any short-term vacation rental unit, between the hours of 10:00 p.m. and 7:00 a.m. Pacific Standard Time. Observations of noise-related violations shall be made by the City or its authorized designee from any location at which a City official or authorized designee may lawfully be, including but not limited to any public right-of-way, any City-owned public property, and any private property to which the City or its authorized designee has been granted access.

5.1.2 Major Violations. Notwithstanding any provision in the La Quinta Municipal Code to the contrary, City shall not modify, suspend, refuse to renew or revoke a shortterm residential permit with respect to any one residential dwelling in the Project except upon two (2) major violations of Chapter 3.25 of the La Quinta Municipal Code or other provisions of the La Quinta Municipal Code within one (1) year by an owner, owner’s agent, occupant or responsible person of such residential dwelling. For purposes of this subsection 5.1.2, a “major violation” shall mean a violation of a particular section of the La Quinta Municipal Code that (i) resulted in a substantial impact on the use and enjoyment of adjacent or nearby properties and that has not been cured or eliminated within thirty (30) minutes after the City has given notice of the violation to the owner or the owner’s authorized agent or representative, or (ii) constituted a clear and present threat to public health and safety.

5.2 Transient Occupancy Tax.

All short-term vacation rentals in the Project shall be subject to, and comply with, the City’s Transient Occupancy Ordinance as set forth in Chapter 3.24 of the La Quinta Municipal Code. To the extent the City revises its Transient Occupancy Ordinance after the Effective Date of this Agreement, all short-term vacation rentals in the Project will be subject to those revised or amended provisions unless doing so would violate the vested rights set forth in Section 5.1 of this Agreement. It is the intent of this provision to require, at all times, that all short-term vacation rentals in the Project comply with the City’s requirements and procedures for collecting, reporting and paying the applicable transient occupancy tax, including as those requirements and procedures may be modified during the term of this Agreement.

5.3 Capacity Limit for Short-Term Vacation Rentals
Notwithstanding anything to the contrary in the City’s Short-Term Vacation Rental Regulations, all short-term vacation rentals in the Project shall be subject to an occupancy cap of two (2) persons per bedroom, plus no more than four (4) additional occupants. 210 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 -18-

5.4 Recordkeeping
All short-term vacation rentals in the Project shall be subject to, and comply with, Chapter

3.25 of the La Quinta Municipal Code, including but not limited to the recordkeeping requirements in Section 3.25.070(F) (or successor provisions).

Prior to occupancy of a short-term vacation rental unit in the Project, the owner or the owner’s authorized agent or representative shall:

1. Obtain the contact information of the responsible person; and

2. Provide copies of all electronically distributed short-term vacation rental information from the City, including any good neighbor brochure to the responsible person and post in a conspicuous location within the short-term vacation rental unit, in a manner that allows for the information to be viewed in its entirety; and require such responsible person to execute a formal acknowledgement that he or she is legally responsible for compliance by all occupants of the short-term vacation rental unit and their guests with all applicable laws, rules and regulations pertaining to the use and occupancy of the short-term vacation rental unit. This information shall be maintained by the owner or the owner’s authorized agent or representative for a period of three (3) years and be made readily available upon request of any officer of the City responsible for the enforcement of any provision of this code or any other applicable law, rule or regulation pertaining to the use and occupancy of the short-term vacation rental unit.

5.5 Covenants, Conditions and Restrictions.

All CC&Rs recorded on any portion of the Project where residential uses are allowed shall expressly authorize short-term vacation rentals for all residential units, consistent with this Agreement and the requirements set forth in Chapter 3.25 of the La Quinta Municipal Code (or successor provisions) that are not in conflict with this Agreement. All such CC&Rs shall state:

1. The operational requirements and standard conditions applicable to short-term vacation rentals in the Project;

2. That all short-term vacation rentals in the Project are subject to the Transient Occupancy Tax pursuant to Chapter 3.24 of the La Quinta Municipal Code;

3. The occupancy limits for the residences, including residences used as shortterm vacation rentals;

4. That all short-term vacation rentals must be rented subject to a “rental agreement” as that term is defined in Section 3.25.030 of the La Quinta Municipal Code, as that section existed on the Effective Date of this Agreement. 211 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 -19-

6. DEFAULT; REMEDIES; DISPUTE RESOLUTION.

6.1 Notice of Default.

In the event of failure by either Party substantially to perform any material term or provision of this Agreement, the non-defaulting Party shall have those rights and remedies provided herein, provided that such non-defaulting Party has first provided to the defaulting Party a written notice of default in the manner required by Section 8.1 hereof identifying with specificity the nature of the alleged default and the manner in which said default may satisfactorily be cured.

6.2 Cure of Default.

Upon the receipt of the notice of default, the alleged defaulting Party shall promptly commence to cure, correct, or remedy the identified default at the earliest reasonable time after receipt of the notice of default and shall complete the cure, correction or remedy of such default not later than thirty (30) days after receipt of the notice of default, or, for such defaults that cannot reasonably be cured, corrected or remedied within thirty (30) days, such Party shall commence to cure, correct, or remedy such default within such thirty (30) day period, and shall continuously and diligently prosecute such cure, correction or remedy to completion.

6.3 City Remedies.

In the event of an uncured default by Developer of the terms of this Agreement, City, at its option, may institute legal action in law or in equity to cure, correct, or remedy such default, enjoin any threatened or attempted violation, or enforce the terms of this Agreement; provided, however, that in no event shall City be entitled to consequential, punitive or exemplary damages for any Developer default. For purposes of this Agreement the term “consequential damages” shall include, but not be limited to, potential loss of anticipated tax revenues from the Project or any portion thereof. Furthermore, City, in addition to or as an alternative to exercising the remedies set forth in this Section 6.3, in the event of a material uncured default by Developer, may give notice of its intent to terminate or modify this Agreement pursuant to City’s Development Agreement Ordinance and/or the Development Agreement Act, in which event the matter shall be scheduled for consideration and review by the City Council in the manner set forth in the City’s Development Agreement Ordinance or the Development Agreement Act.

6.4 Developer’s Excusive Remedies.

The Parties acknowledge that the City would not have entered into this Agreement if it were to be liable in damages under, or with respect to, this Agreement or any of the matters referred to herein including, but not limited to, the Project Approvals, the Applicable Rules or any future amendments or enactments thereto, or the Project. Accordingly, Developer covenants on behalf of itself and its successors and assigns, not to sue the City for damages or monetary relief (except for attorneys’ fees as provided for by Section 8.22) for any breach of this Agreement by City or arising out of or connected with any dispute, controversy, or issue between Developer and City regarding this Agreement or any of the matters referred to herein including but not limited to the application, interpretation, or effect of this Agreement, the Project Approvals, the Applicable Rules or any future amendments or enactments thereto, or the Project, or any land use permits or approvals sought in connection with the development of the Project or any component thereof, or 212 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 -20-
use of a parcel or any portion thereof, the parties agreeing that declaratory and injunctive relief, mandate, and specific performance shall be Developer’s sole and exclusive judicial remedies.

7. MORTGAGEE PROTECTION; CERTAIN RIGHTS OF CURE

7.1 Encumbrances on the Project Site.

This Agreement shall not prevent or limit Developer from encumbering the Site or any portion thereof or any improvements thereon with any mortgage, deed of trust, sale and leaseback arrangement, or any other form of conveyance in which the Site, or a portion thereof or interest therein, is pledged as security, and contracted for in good faith and fair value (a “Mortgage”) securing financing with respect to the construction, development, use or operation of the Project.

7.2 Mortgage Protection.

This Agreement shall be superior and senior to the lien of any Mortgage. Notwithstanding the foregoing, no breach of this Agreement shall defeat, render invalid, diminish, or impair the lien of any Mortgage made in good faith and for value, and any acquisition or acceptance of title or any right or interest in or with respect to the Site or any portion thereof by a holder of a beneficial interest under a Mortgage, or any successor or assignee to said holder (a “Mortgagee”) [whether pursuant to foreclosure, trustee’s sale, deed in lieu of foreclosure, lease termination or otherwise] shall be subject to all of the terms and conditions of this Agreement.

7.3 Mortgagee Not Obligated.

No Mortgagee will have any obligation or duty under this Agreement to perform the obligations of the Developer or other affirmative covenants of Developer hereunder, or to guarantee such performance, except that (i) the Mortgagee shall have no right to develop or operate the Site without the written consent of the City, and (ii) to the extent that any covenant to be performed by the Developer is a condition to the performance of a covenant by the City, the performance thereof by Mortgagee shall continue to be a condition precedent to the City’s performance hereunder.

7.4 Notice of Default to Mortgagee; Right of Mortgagee to Cure.

With respect to any mortgage or deed of trust granted by Developer, whenever City may deliver any notice or demand to Developer with respect to any breach or default by Developer in completion of construction of the Project or any component of the Project, City shall at the same time deliver a copy of such notice or demand to each holder of record of any mortgage or deed of trust which has previously requested such notice in writing. Each such holder shall (insofar as the rights granted by City are concerned) have the right, at its option, within sixty (60) days after the receipt of the notice, to cure or remedy or commence to cure or remedy and thereafter to pursue with due diligence the cure or remedy of any such default and to add the cost thereof to the mortgage debt and the lien of its mortgage. It is understood that a holder shall be deemed to have satisfied the sixty (60) daytime limit set forth above for commencing to cure or remedy a Developer default which requires title and/or possession of the Site (or portion thereof) if and to the extent any such holder has within such sixty (60) day period commenced proceedings to obtain title 213 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 -21-
and/or possession and thereafter the holder diligently pursues such proceedings to completion and cures or remedies the default.

8. MISCELLANEOUS

8.1 Notices, Demands and Communications Between the Parties.

Any approval, disapproval, demand, document or other notice (“Notice”) which either Party may desire to give to the other Party under this Agreement must be in writing and shall be sufficiently given if (i) delivered by hand, (ii) delivered by reputable same-day or overnight messenger service that provides a receipt showing date and time of delivery, or (iii) dispatched by registered or certified mail, postage prepaid, return receipt requested, to the principal offices of City and Developer at the addresses specified below, or at any other address as that Party may later designate by Notice.

To City: City of La Quinta
78-495 Calle Tampico
La Quinta, California 92253
Attn: Community Development Director
With a copy to: Rutan & Tucker, LLP
18575 Jamboree Road, 9th Floor
Irvine, California 92612
Attn: William H. Ihrke
To Developer: GTGF, LLC
800 W. Olympic Blvd Ste.305
Los Angeles, California 90015
Attn: Sean Breuner
With copies to: Nethery/Mueller/Olivier LLP
41750 Rancho Las Palmas Dr.

Suite H-1
Rancho Mirage, CA 92270
Attn: Daniel Olivier
Any written notice, demand or communication shall be deemed received immediately if personally delivered or delivered by delivery service and shall be deemed received on the third day from the date it is postmarked if delivered by registered or certified mail.

8.2 Force Majeure.

In addition to specific provisions of this Agreement, performance by either Party hereunder shall not be deemed to be in default, and all performance and other dates specified in this 214 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 -22-
Agreement shall be extended, where delays or Defaults are due to causes beyond the control or without the fault of the Party claiming an extension of time to perform, which may include the following (each, a “Force Majeure”): war; insurrection; acts of terrorism; strikes; lockouts; riots; floods; earthquakes; fires; casualties; acts of God; acts of the public enemy; epidemics; quarantine restrictions; freight embargoes; lack of transportation; governmental restrictions or priority imposed or mandated by other governmental entities; unusually severe weather; inability to secure necessary labor, materials or tools; delays of any contractor, subcontractor or supplier; acts or omissions of the other Party; or acts or failures to act of any public or governmental agency or entity (other than the acts or failures to act of City which shall not excuse performance by City), or any other causes beyond the control or without the fault of the party claiming an extension of time to perform. Notwithstanding anything to the contrary in this Agreement, an extension of time for any such cause shall only be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause, if notice by the Party claiming such extension is sent to the other Party within thirty (30) days of the commencement of the cause. Times of performance under this Agreement may also be extended in writing by the mutual agreement of City and Developer.

Notwithstanding the paragraph above, Developer is not entitled pursuant to this Section

8.2 to an extension of time to perform because of past, present, or future difficulty in obtaining suitable construction or permanent financing for the development of the Site, or because of economic or market conditions.

8.3 Binding Effect.

This Agreement, and all of the terms and conditions hereof, shall be binding upon and inure to the benefit of the Parties, any subsequent owner of all or any portion of the Project or the Site, and their respective assigns, heirs or successors in interest, whether or not any reference to this Agreement is contained in the instrument by which such person acquired an interest in the Project or the Site.

8.4 Independent Entity.

The Parties acknowledge that, in entering into and performing this Agreement, each of Developer and City is acting as an independent entity and not as an agent of the other in any respect.

8.5 Agreement Not to Benefit Third Parties.

This Agreement is made for the sole benefit of the Parties, and no other person shall be deemed to have any privity of contract under this Agreement nor any right to rely on this Agreement to any extent for any purpose whatsoever, nor have any right of action of any kind on this Agreement nor be deemed to be a third-party beneficiary under this Agreement.

8.6 Covenants.

The provisions of this Agreement shall constitute mutual covenants which shall run with the land comprising the Site for the benefit thereof, and for the benefit of City, and the burdens 215 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 -23-
and benefits hereof shall bind and inure to the benefit of each of the Parties hereto and all successors in interest to the Parties hereto for the term of this Agreement.

8.7 Non-liability of City Officers and Employees.

No official, officer, employee, agent or representative of City, acting in his/her official capacity, shall be personally liable to Developer, or any successor or assign, for any loss, costs, damage, claim, liability, or judgment, arising out of or connection to this Agreement, or for any act or omission on the part of City.

8.8 Covenant Against Discrimination.

Developer and City covenant and agree, for themselves and their respective successors and assigns, that there shall be no discrimination against, or segregation of, any person or group or persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry, or any other impermissible classification, in the performance of this Agreement. Developer shall comply with the Americans with Disabilities Act of 1990, as amended (42 U.S.C. §§ 12101, et seq.).

8.9 No Waiver.

No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought and referring expressly to this Section. No delay or omission by either Party in exercising any right or power accruing upon non-compliance or failure to perform by the other Party under any of the provisions of this Agreement shall impair any such right or power or be construed to be a waiver thereof, except as expressly provided herein. No waiver by either Party of any of the covenants or conditions to be performed by the other Party shall be construed or deemed a waiver of any succeeding breach or nonperformance of the same or other covenants and conditions hereof.

8.10 Severability.

If any term, provision, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Agreement shall continue in full force and effect, to the extent that the invalidity or unenforceability does not impair the application of this Agreement as intended by the Parties.

8.11 Cooperation in Carrying Out Agreement.

Each Party shall take such actions and execute and deliver to the other all such further instruments and documents as may be reasonably necessary to carry out this Agreement in order to provide and secure to the other Party the full and complete enjoyment of its rights and privileges hereunder.

8.12 Estoppel Certificate.

Either Party may, at any time, deliver written notice to any other Party requesting such Party to certify in writing that, to the best knowledge of the certifying Party, (i) this Agreement is 216 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 -24-
in full force and effect and a binding obligation of the Parties, (ii) this Agreement has not been amended or modified either orally or in writing, or if so amended, identifying the amendments, (iii) the requesting Party is not in default in the performance of its obligations under this Agreement, or if in default, describing the nature and amount of any such defaults, and (iv) any other reasonable information requested. A Party receiving a written request hereunder shall execute and return such requested certificate within twenty (20) days following receipt of such request. The form of the requested estoppel certificate shall be reasonably approved by the receiving party. The City Manager is authorized to sign and deliver an estoppel certificate on behalf of City. City acknowledges that a certificate hereunder may be relied upon by transferees and Mortgagees.

8.13 Construction.

The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement or any other rule of construction that might otherwise apply. As used in this Agreement, and as the context may require, the singular includes the plural and vice versa, and the masculine gender includes the feminine and vice versa.

8.14 Recordation.

This Agreement shall be recorded with the County Recorder of Riverside County at Developer’s cost, if any, within the period required by Government Code Section 65868.5.

Amendments approved by the Parties, and any cancellation or termination of this Agreement, shall be similarly recorded.

8.15 Captions and References.

The captions of the paragraphs and subparagraphs of this Agreement are solely for convenience of reference, and shall be disregarded in the construction and interpretation of this Agreement. Reference herein to a paragraph or exhibit are the paragraphs, subparagraphs and exhibits of this Agreement.

8.16 Time.

Time is of the essence in the performance of this Agreement and of each and every term and condition hereof as to which time is an element.

8.17 Recitals & Exhibits Incorporated; Entire Agreement.

The Recitals to this Agreement and all of the exhibits and attachments to this Agreement are, by this reference, incorporated into this Agreement and made a part hereof. This Agreement, including all Exhibits attached hereto, constitutes the entire agreement between the Parties with respect to the subject matter of this Agreement, and this Agreement supersedes all previous negotiations, discussions and agreements between the Parties, and no parole evidence of any prior or other agreement shall be permitted to contradict or vary the terms hereof. 217 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 -25-

8.18 Exhibits.

Exhibits “A” -”E” to which reference is made in this Agreement are deemed incorporated herein in their entirety, whether or not such exhibits are attached hereto in full. Said exhibits are identified as follows:

A Legal Description of the Property and the Site
B Site Map
C. Compliance Certificate
D. Performance Schedule
E. Chapter 3.25 of LQMC

8.19 Counterpart Signature Pages.

For convenience the Parties may execute and acknowledge this agreement in counterparts and when the separate signature pages are attached hereto, shall constitute one and the same complete Agreement.

8.20 Authority to Execute; Representations and Warranties.

Developer warrants and represents that (i) it is duly organized and existing, (ii) it is duly authorized to execute and deliver this Agreement, (iii) by so executing this Agreement, Developer is formally bound to the provisions of this Agreement, and (iv) Developer’s entering into and performance of its obligations set forth in this Agreement do not violate any provision of any other agreement to which Developer is bound, and (v) there is no existing or threatened litigation or legal proceeding of which Developer is aware which could prevent Developer from entering into or performing its covenants and obligations set forth in this Agreement. City warrants and represents that the person or persons executing this Agreement on its behalf have been duly authorized to execute this Agreement and bind the City to all covenants and obligations set forth in this Agreement.

8.21 City Approvals and Actions.

Whenever a reference is made in this Agreement to an action or approval to be undertaken by the City, or for any amendment, interpretation, or implementing documents required under this Agreement, the City Manager or his or her authorized designee is authorized to act on behalf of the City unless specifically provided otherwise in this Agreement or the law otherwise requires.

8.22 Governing Law; Litigation Matters.

The internal laws of the State of California shall govern the interpretation and enforcement of this Agreement without regard to conflicts of law principles. Any action at law or in equity brought by either Party hereto for the purpose of enforcing, construing, or interpreting the validity of this Agreement or any provision hereof shall be brought in the Superior Court of the State of 218 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 -26-
California in and for the County of Riverside, or such other appropriate court in said county, and the Parties hereto waive all provisions of law providing for the filing, removal, or change of venue to any other court. Service of process on City shall be made in accordance with California law.

Service of process on Developer shall be made in any manner permitted by California law and shall be effective whether served inside or outside of California. In the event of any action between the Parties hereto seeking enforcement of any of the terms of this Agreement or otherwise arising out of this Agreement, the prevailing Party in such litigation shall be awarded, in addition to such relief to which such Party is entitled, its reasonable attorney’s fees, expert witness fees, and litigation costs and expenses.

8.23 No Brokers.

Each of the City and the Developer represents to the other party that it has not engaged the services of any finder or broker and that it is not liable for any real estate commissions, broker’s fees, or finder’s fees which may accrue by means of this Agreement and agrees to hold harmless the other party from such commissions or fees as are alleged to be due from the party making such representations.
219 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 -27-
IN WITNESS WHEREOF, Developer and City have executed this Agreement as of the Reference Date.
“DEVELOPER”

GTGF, LLC,
a Delaware limited liability company
By:

Its:
“CITY”
CITY OF LA QUINTA, a California municipal
corporation
By: ___________________________
Name: Jon McMillen
Title: City Manager
ATTEST:

Monika Radeva
City Clerk

APPROVED AS TO FORM

RUTAN & TUCKER, LLP

William H. Ihrke
City Attorney
220 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 EXHIBIT A
EXHIBIT “A”

LEGAL DESCRIPTION OF SITE
[attached]
221 Click Here to Return to Agenda
2905
/015610-0183
17230608.13 a02/10/22
EXHIBIT A -1-
222 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 EXHIBIT B
EXHIBIT “B”

SITE MAP
[attached]
223 Click Here to Return to Agenda
2905
/015610-0183
17230608.13 a02/10/22
EXHIBIT B -1-
224 Click Here to Return to Agenda
2905
/015610-0183
17230608.13 a02/10/22
EXHIBIT B -2-
225 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22

EXHIBIT C
-1-
EXHIBIT “C”

COMPLIANCE CERTIFICATE
(GTGF, LLC DEVELOPMENT AGREEMENT)
The undersigned, GTGF, LLC, a Delaware limited liability company (“Developer”), pursuant to that certain Development Agreement dated _______________, 2022, (the “Development Agreement”), by and among Developer and the City of La Quinta, a California municipal corporation and charter city (the “City”) by its signature below hereby certifies to the City, for the City’s reliance that:

1. Capitalized terms not defined herein shall have the same meaning as set forth in the Development Agreement;

2. The undersigned is familiar with the certifications and representations set forth in this Compliance Certificate;

3. Developer has performed and complied with its obligations under the Development Agreement to be performed or complied with by it on or prior to the date hereof.

4. [CITY MAY INSERT ANY ADDITIONAL CONDITIONS UNDER THE

DEVELOPMENT AGREEMENT TO BE SATISFIED PRIOR TO ISSUING BUILDING PERMIT].

IN WITNESS WHEREOF, this Compliance Certificate is executed effective the ______ day of _______________, ______, under penalty of perjury under the laws of California.

GTGF, LLC, a Delaware limited liability company
By:

Its:

By:

Its:
226 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22

EXHIBIT D
-1-
EXHIBIT “D”

PERFORMANCE SCHEDULE
Item of Performance Start Completion
TR 36279 (Improved Lots)
On-site and off-site improvements N/A Complete
TR 33085 (Vacant Lots)
Permitting
Grading and Engineering Permits April 2022 Within 6 months of application
Building Permits October 2022 Within 6 months of
application
Construction of Project Components
Construct off-site improvements N/A Complete
Construct all on-site improvements (rough grade, walls, street, storm drain, water, sewer, dry utilities, and
landscaping)
November 2022 May 2023
Place monuments December 2022 May 2023
Begin construction of 7 residential units April 2023 May 2023 Completion of construction of 7 residential units December 2023 March 2024 Obtain Certificate of Occupancy for 7 residential units March 2024 April 2024 227 Click Here to Return to Agenda
2905/015610-0183
17230608.13 a02/10/22 EXHIBIT E
EXHIBIT “E”
CHAPTER 3.25 OF LA QUINTA MUNICIPAL CODE AS OF EFFECTIVE DATE (for reference only)
[attached]
228 Click Here to Return to Agenda
Title 3 - REVENUE AND FINANCE
Chapter 3.25 SHORT-TERM VACATION RENTALS
La Quinta, California, Municipal Code Created: 2021-12-15 15:04:50 [EST] (Supp. No. 2, Update 2)

Chapter 3.25 SHORT-TERM VACATION RENTALS

3.25.010 Title.

This chapter shall be referred to as the "Short-Term Vacation Rental Regulations." (Ord. 590 § 1(Exh. A), 3-16-2021; Ord. 586 § 1(Exh. A), 12-15-2020; Ord. 572 § 1, 2018; Ord. 563 § 1, 2017; Ord. 501 § 2, 2012)

3.25.020 Purpose.

A. The purpose of this chapter is to establish regulations for the use of privately owned residential dwellings as short-term vacation rentals that ensure the collection and payment of transient occupancy taxes (TOT) as provided in Chapter 3.24 of this code, and minimize the negative secondary effects of such use on surrounding residential neighborhoods.

B. This chapter is not intended to provide any owner of residential property with the right or privilege to violate any private conditions, covenants and restrictions applicable to the owner's property that may prohibit the use of such owner's residential property for short-term vacation rental purposes as defined in this chapter.

C. The requirements of this chapter shall be presumed to apply to any residential dwelling that has received a short-term vacation rental permit. A rebuttable presumption arises that, whenever there is an occupant(s), paying rent or not, of a residential dwelling that has received a short-term vacation rental permit, the requirements of this chapter shall apply, including but not limited to any suspension or other modifications imposed on a short-term vacation rental permit as set forth in this chapter. The city manager or authorized designee shall have the authority to implement any necessary or appropriate policies and procedures to implement the rebuttable presumption set forth in this section. (Ord. 590 § 1(Exh. A), 3-16-2021; Ord. 586 § 1(Exh. A), 12-15-2020; Ord. 572 § 1, 2018; Ord. 563 § 1, 2017; Ord. 501 § 2, 2012)

3.25.030 Definitions.

For purposes of this chapter, the following words and phrases shall have the meaning respectively ascribed to them by this section:
"Advertise,""advertisement,""advertising,""publish," and "publication" mean any and all means, whether verbal or written, through any media whatsoever whether in use prior to, at the time of, or after the enactment of the ordinance amending this chapter, used for conveying to any member or members of the public the ability or availability to rent a short-term vacation rental unit as defined in this section, or used for conveying to any member or members of the public a notice of an intention to rent a short-term vacation rental unit as defined in this section. For purposes of this definition, the following media are listed as examples, which are not and shall not be construed as exhaustive: verbal or written announcements by proclamation or outcry, newspaper advertisement, magazine advertisement, handbill, written or printed notice, printed or poster display, billboard display, e-mail or other electronic/digital messaging platform, electronic commerce/commercial Internet websites, and any and all other electronic media, television, radio, satellite-based, or Internet website. "Applicable laws, rules and regulations" means any laws, rules, regulations and codes (whether local, state or federal) pertaining to the use and occupancy of a privately owned dwelling unit as a short-term vacation rental. 229 Click Here to Return to Agenda
Created: 2021-12-15 15:04:50 [EST]
(Supp. No. 2, Update 2)

"Applicant" means the owner of the short-term vacation rental unit. "Authorized agent or representative" means a designated agent or representative who is appointed by the owner and also is responsible for compliance with this chapter with respect to the short-term vacation rental unit. "Booking transaction" means any reservation or payment service provided by a person or entity who facilitates a home-sharing or vacation rental (including short-term vacation rental) transaction between a prospective occupant and an owner or owner's authorized agent or representative. "City manager" means that person acting in the capacity of the city manager of the city of La Quinta or authorized designee.
"Declaration of non-use" means the declaration described in Section 3.25.050. "Dwelling" has the same meaning as set forth in Section 9.280.030 (or successor provision, as may be amended from time to time) of this code; "dwelling" does not include any impermanent, transitory, or mobile means of temporary lodging, including but not limited to mobile homes, recreational vehicles (RVs), car trailers, and camping tents.
"Estate home" is defined as a single-family detached residence with five (5) or more bedrooms, subject to evaluation criteria and inspection of the property pursuant to Section 3.25.060(D)(1). An estate home is a sub-type of short-term vacation rental unit and shall be subject to a general short-term vacation rental permit, primary residence short-term vacation rental permit, or homeshare short-term vacation rental permit, as applicable, pursuant to this chapter.
"General short-term vacation rental permit" is a type of short-term vacation rental permit that is neither a homeshare short-term vacation rental permit nor a primary residence short-term vacation rental permit. "Good neighbor brochure" means a document prepared by the city that summarizes the general rules of conduct, consideration, and respect, including, without limitation, provisions of this code and other applicable laws, rules or regulations pertaining to the use and occupancy of short-term vacation rental units. "Homeshare short-term vacation rental permit" is a type of short-term vacation rental permit whereby the owner hosts visitors in the owner's dwelling, for compensation, for periods of thirty (30) consecutive calendar days or less, while the owner lives on-site and in the dwelling, throughout the visiting occupant's stay. "Hosting platform" means a person or entity who participates in the home-sharing or vacation rental (including short-term vacation rental) business by collecting or receiving a fee, directly or indirectly through an agent or intermediary, for conducting a booking transaction using any medium of facilitation, including but not limited to the Internet.
"Local contact person" means the person designated by the owner or the owner's authorized agent or representative who shall be available twenty-four (24) hours per day, seven (7) days per week with the ability to respond to the location within thirty (30) minutes for the purpose of: (1) taking remedial action to resolve any such complaints; and (2) responding to complaints regarding the condition, operation, or conduct of occupants of the short-term vacation rental unit. A designated local contact person must obtain a business license otherwise required by Sections 3.24.060 and 3.28.020 (or successor provisions, as may be amended from time to time) of this code.
"Notice of permit modification, suspension or revocation" means the notice the city may issue to an applicant, authorized agent or representative, local contact person, occupant, owner, responsible person, or any other person or entity authorized to be issued such notice under this code for a short-term vacation rental unit, upon a determination by the city of a violation of this chapter or other provisions of this code relating to authorized uses of property subject to this chapter.
"Occupant" means any person(s) occupying the dwelling at any time. 230 Click Here to Return to Agenda
Created: 2021-12-15 15:04:50 [EST]
(Supp. No. 2, Update 2)

"Owner" means the person(s) or entity(ies) that hold(s) legal and/or equitable title to the subject short-term vacation rental.
"Primary residence" means a dwelling where an owner spends the majority of the calendar year on the property used as a short-term vacation rental unit, and the property is identified in the Riverside County assessor's record as the owner's primary residence.
"Primary residence short-term vacation rental permit" is a type of short-term vacation rental permit whereby the short-term vacation rental unit is the owner's primary residence, as defined herein in this section. "Property" means a residential legal lot of record on which a short-term vacation rental unit is located. "Rent" has the same meaning as set forth in Section 3.24.020 (or successor provision, as may be amended from time to time) of this code.
"Rental agreement" means a written or verbal agreement for use and occupancy of a privately-owned residential dwelling that has been issued a short-term vacation rental permit, including a dwelling that may have a permit which has been or is under suspension.
"Responsible person" means the signatory of an agreement for the rental, use and occupancy of a short-term vacation rental unit, and/or any person(s) occupying the short-term vacation rental unit without a rental agreement, including the owner(s), owner's authorized agent(s) or representative(s), local contact(s), and their guests, who shall be an occupant of that short-term vacation rental unit, who is at least twenty-one (21) years of age, and who is legally responsible for ensuring that all occupants of the short-term vacation rental unit and/or their guests comply with all applicable laws, rules and regulations pertaining to the use and occupancy of the subject short-term vacation rental unit.
"Short-term vacation rental permit" means a permit that permits the use of a privately owned residential dwelling as a short-term vacation rental unit pursuant to the provisions of this chapter, and which incorporates by consolidation a transient occupancy permit and a business license otherwise required by Sections 3.24.060 and

3.28.020 (or successor provisions, as may be amended from time to time) of this code. A short-term vacation rental permit is one (1) of the following types: (1) general short-term vacation rental permit, (2) primary residence short-term vacation rental permit, or (3) homeshare short-term vacation rental permit, as defined in this section. "Short-term vacation rental unit" means a privately owned residential dwelling, such as, but not limited to, a single-family detached or multiple-family attached unit, apartment house, condominium, cooperative apartment, duplex, or any portion of such dwellings and/or property and/or yard features appurtenant thereto, rented for occupancy and/or occupied for dwelling, lodging, or any transient use, including but not limited to sleeping overnight purposes for a period of thirty (30) consecutive calendar days or less, counting portions of calendar days as full days, by any person(s) with or without a rental agreement. "STVR" may be used by city officials as an abbreviation for "short-term vacation rental." "Suspension" means that short-term vacation rental permit that is suspended pursuant to Section 3.25.090. "Tenant" or "transient," for purposes of this chapter, means any person who seeks to rent or who does rent, or who occupies or seeks to occupy, for thirty (30) consecutive calendar days or less, a short-term vacation rental unit.
(Ord. 595 § 1(Exh. A), 6-15-2021; Ord. 590 § 1(Exh. A), 3-16-2021; Ord. 586 § 1(Exh. A), 12-15-2020; Ord. 572 § 1, 2018; Ord. 563 § 1, 2017; Ord. 501 § 2, 2012)

3.25.040 Authorized agent or representative.

A. Except for the completion of an application for a short-term vacation rental permit and business license, the owner may designate an authorized agent or representative to ensure compliance with the requirements of 231 Click Here to Return to Agenda
Created: 2021-12-15 15:04:50 [EST]
(Supp. No. 2, Update 2)

this chapter with respect to the short-term vacation rental unit on his, her or their behalf. Nevertheless, the owner shall not be relieved from any personal responsibility and personal liability for noncompliance with any applicable law, rule or regulation pertaining to the use and occupancy of the subject short-term vacation rental unit, regardless of whether such noncompliance was committed by the owner's authorized agent or representative or the occupants of the owner's short-term vacation rental unit or their guests.

B. The owner must be the applicant for and holder of a short-term vacation rental permit and business license and shall not authorize an agent or a representative to apply for or hold a short-term vacation rental permit and business license on the owner's behalf. The owner's signature is required on all short-term vacation rental application forms, and the city may prescribe reasonable requirements to verify that an applicant or purported owner is the owner in fact.
(Ord. 590 § 1(Exh. A), 3-16-2021; Ord. 586 § 1(Exh. A), 12-15-2020; Ord. 572 § 1, 2018; Ord. 563 § 1, 2017; Ord. 501 § 2, 2012)

3.25.050 Short-term vacation rental permit—Required.

A. The owner is required to obtain a short-term vacation rental permit and a business license from the city before the owner or the owner's authorized agent or representative may rent or advertise a short-term vacation rental unit. No short-term vacation rental use may occur in the city except in compliance with this chapter. No property in the city may be issued a short-term vacation rental permit or used as a short-term vacation rental unit unless the property is a residential dwelling that complies with the requirements of this chapter.

B. A short-term vacation rental permit and business license shall be valid for one (1) year and renewed on an annual basis in order to remain valid.

1. A short-term vacation rental permit and business license renewal application shall be submitted no earlier than sixty (60) calendar days but no later than thirty (30) calendar days prior to the permit's expiration date. Failure to renew a short-term vacation rental permit as prescribed in this section may result in the short-term vacation rental permit being terminated.

2. A new owner of a property (or a new person and/or new entity that owns or controls a business or organization or other entity of any kind, such as a limited liability company, which is the owner of a property) previously operated as a short-term vacation rental unit by the former owner (or by a former person or entity that owned or controlled the business or organization or other entity of any kind that continues to be the owner of the property) may not renew the previous owner's short-term vacation rental permit and shall apply for a new short-term vacation rental permit, pursuant to this chapter, if the new owner (or new person and/or new entity that owns or controls a business or organization or other entity of any kind that continues to be the owner of a property) wants to continue to use the residential dwelling as a short-term vacation rental unit.

3. If an owner or an owner's authorized agent or representative, pursuant to all applicable laws, constructs additional bedrooms to an existing residential dwelling or converts non-bedroom spaces and areas in an existing residential dwelling into additional bedrooms, the owner or owner's authorized agent or representative shall notify the city and update the short-term vacation rental unit's online registration profile upon city approval of the addition or conversion so that the city may confirm that such conversion is consistent with this chapter and the code, including all applicable provisions in Title 8 of the code, and reissue the short-term vacation rental permit so that it accurately identifies the number of approved bedrooms, if the owner wants to continue to use the dwelling as a short-term vacation rental unit. The city may conduct an onsite inspection of the property to verify compliance with this chapter and the code.

Code compliance inspections may be billed for full cost recovery at one (1) hour for initial inspection and in thirty (30)-minute increments for each follow-up inspection pursuant to subsection D. For purposes of 232 Click Here to Return to Agenda
Created: 2021-12-15 15:04:50 [EST]
(Supp. No. 2, Update 2)

this chapter, "reissue" or "reissuance" of a short-term vacation rental permit means a permit that is reissued by the city, with corrected information, as applicable, to be valid for the balance of the existing one (1)-year permit and license period.

C. A short-term vacation rental permit and business license shall be valid only for the number of bedrooms in a residential dwelling equal to the number of bedrooms the city establishes as eligible for listing as a shortterm vacation rental unit and shall not exceed the number of bedrooms allowable for the number of occupants as set forth in Section 3.25.070. The allowable number of bedrooms shall meet all applicable requirements under federal, state and city codes, including, but not limited to, the provisions of Section

9.50.100 (or successor provision, as may be amended from time to time) governing "additional bedrooms" and all applicable building and construction codes in Title 8 of this code. A short-term vacation rental permit shall not issue for, or otherwise authorize the use of, additional bedrooms converted from non-bedroom spaces or areas in an existing residential dwelling except upon express city approval for the additional bedrooms in compliance with this code, including Section 9.50.100 (or successor provision, as may be amended from time to time), and upon approval of an application for a new or renewed short-term vacation rental permit as provided in subsection B.

D. A short-term vacation rental permit and business license shall not be issued, and may be suspended or permanently revoked, if the property, or any building, structure, or use or land use on the property is in violation of this code. The city may conduct an inspection of the property prior to the issuance or renewal of a short-term vacation rental permit and/or business license. Code compliance inspections may be billed for full cost recovery at one (1) hour for initial inspection and in thirty (30)-minute increments for each follow-up inspection. For purposes of this subsection, a code violation exists if, at the time of the submittal of an application for a new or renewed short-term vacation rental permit or business license, the city has commenced administrative proceedings by issuing written communication and/or official notice to the owner or owner's responsible agent or representative of one (1) or more code violations. For purposes of this chapter, "building," "structure," and "use or land use" have the same meanings as set forth in Section

9.280.030 (or successor provisions, as may be amended from time to time) of this code.

E. A short-term vacation rental permit and business license shall not be issued or renewed, and may be suspended or permanently revoked, if any portion of transient occupancy tax has not been reported and/or remitted to the city for the previous calendar year by the applicable deadline for the reporting and/or remittance of the transient occupancy tax.

F. A short-term vacation rental permit and business license shall not be issued or renewed, and may be suspended or permanently revoked, if the residential dwelling to be used as a short-term rental unit lacks adequate onsite parking. For purposes of this subsection, "adequate onsite parking" shall be determined by dividing the total number of occupants commensurate with the approved number of bedrooms as provided in the table under Section 3.25.070 by four (4), such that the ratio of the total number of occupants to onsite parking spots does not exceed four to one (4:1). For example, a residential dwelling with five (5) bedrooms may permissibly host a total number of ten occupants and therefore requires three (3) on-site parking spots.

Onsite parking shall be on an approved driveway, garage, and/or carport areas only in accordance with Section 3.25.070(R), and no more than two (2) street parking spots may count towards the number of on-site parking spots necessary to meet the "adequate onsite parking" requirement under this subsection.

G. An owner or owner's authorized agent or representative who claims not to be operating a short-term vacation rental unit or who has obtained a valid short-term vacation rental permit and business license pursuant to this chapter, may voluntarily opt-out of the requirements of this chapter, prior to the issuance or expiration of a short-term vacation rental permit and business license that are applicable to the short-term vacation rental unit, only upon the owner, the owner's authorized agent or representative and/or the owner's designated local contact person executing, under penalty of perjury, a declaration of non-use as a short-term vacation rental unit, in a form prescribed by the city (for purposes of this chapter, a "declaration of non-use"). Upon the receipt and filing by the city of a fully executed declaration of non-use, the owner or 233 Click Here to Return to Agenda
Created: 2021-12-15 15:04:50 [EST]
(Supp. No. 2, Update 2)

owner's authorized agent representative shall be released from complying with this chapter as long as the property is not used as a short-term vacation rental unit. Use of the property as a short-term vacation unit after the city's receipt and filing of a declaration of non-use, is a violation of this chapter. If, after a declaration of non-use has been received and filed by the city, the owner or owner's authorized agent or representative wants to use that property as a short-term vacation rental unit, the owner shall apply for a new short-term vacation rental permit and business license and fully comply with the requirements of this chapter and the code; provided, however, that if a short-term vacation rental permit is or will be suspended on the date an owner or owner's authorized agent or representative submits to the city a declaration of nonuse for the short-term vacation rental unit under suspension, then the owner may apply for a new shortterm vacation rental permit and business license only after twelve (12) consecutive months have elapsed from the date of the declaration of non-use, and the owner and owner's authorized agent or representative otherwise shall fully comply with the requirements of this chapter and the code. (Ord. 595 § 1(Exh. A), 6-15-2021; Ord. 590 § 1(Exh. A), 3-16-2021; Ord. 586 § 1(Exh. A), 12-15-2020; Ord. 577 § 1, 2019; Ord. 572 § 1, 2018; Ord. 563 § 1, 2017; Ord. 501 § 2, 2012)

3.25.055 Non-issuance of new short-term vacation rental permits; periodic council review.

A. Commencing May 20, 2021, which is the effective date of the ordinance adding this section, there shall be no processing of, or issuance for, any applications for a new short-term vacation rental permit, required by this chapter to use or operate a short-term vacation rental unit in the city, except applications for a new a shortterm vacation rental permit covering a short-term vacation rental unit that meets one (1) or more of the following:

1. A residential dwelling within a residential project located in the CT Tourist Commercial District zone, as defined in Section 9.70.070 (or successor section) of this code and depicted in the city's official zoning map.

2. A residential dwelling within a residential project located in the VC Village Commercial District zone, as defined in Section 9.70.100 (or successor section) of this code and depicted in the city's official zoning map.

3. A residential dwelling within a residential project subject to a development agreement with the city, or subject to a condition of approval(s) attached to any entitlement approved by the city (including but not limited to a specific plan, subdivision map, or site development permit), pursuant to which short-term vacation rentals are a permitted use, and the residential dwelling's use as a short-term vacation rental is authorized under a declaration of covenants, conditions, and restrictions (CC&Rs), for the residential project.

4. A residential dwelling within the area covered by the SilverRock Resort Specific Plan.

5. A residential dwelling is located adjacent to the CT Tourist Commercial District zone, as defined in Section

9.70.070 and depicted in the city's official zoning map, and within the following boundaries; west of Avenida Obregon, south of the Avenida Fernando, east of Calle Mazatlan, and north of the driveway access between Calle Mazatlan and Avenida Obregon that serves as a southern boundary for the La Quinta Tennis Villas/Tennis Condos area identified on page 25 of the La Quinta Resort Specific Plan, 121 E—Amendment 5 (as may be subsequently amended from time to time). For purposes of this subsection, "adjacent to" means across the street from or accessible by a driveway or service road designed to provide access to area(s) within the CT Tourist Commercial District zone.

B. The city manager or authorized designee shall have the authority to implement policies or procedures to review and verify whether an application for a new short-term vacation rental permit meets the criteria set forth in this section.
234 Click Here to Return to Agenda
Created: 2021-12-15 15:04:50 [EST]
(Supp. No. 2, Update 2)

C. This section shall not apply to applications for a renewal of an existing short-term vacation rental permit and business license, submitted in compliance with this chapter, including when the short-term vacation rental permit is under suspension during the time for processing the renewal application. Applications for renewals must be submitted as prescribed by this chapter. Any short-term vacation rental unit, covered by a permit that is subject to an application for renewal, which is under temporary suspension in violation of this chapter or any other provisions of this code, shall not become permitted to use the dwelling as a short-term vacation rental unit until all violations that led to the temporary suspension have been remedied and the suspension has expired. Any revoked short-term vacation rental permit shall not be eligible for renewal or new shortterm vacation rental permit.

D. The city council shall periodically review the impacts or effects, if any, caused by the non-issuance of new short-term vacation rental permits set forth in this section. The city manager or authorized designee shall prepare a report assessing impacts or effects, if any, for the council to review at a regular or special meeting. (Ord. 596 § 2, 2021; Ord. 595 § 1(Exh. A), 6-15-2021; Ord. 591 § 1(Exh. A), 4-20-2021)

3.25.060 Short-term vacation rental permit—Application requirements.

A. The owner or the owner's authorized agent or representative must submit the information required on the city's short-term vacation rental permit application form provided by the city, which may include any or all of the following:

1. The name, address, and telephone number of the owner of the subject short-term vacation rental unit;

2. The name, address, and telephone number of the owner's authorized agent or representative, if any;

3. The name, address, and twenty-four (24)-hour telephone number of the local contact person;

4. The address of the proposed short-term vacation rental unit, Internet listing site and listing number;

5. The number of bedrooms shall not exceed the number of bedrooms allowable for the number of occupants as set forth in Section 3.25.070. The allowable number of bedrooms shall meet all applicable building and construction requirements under federal, state and city codes, including, but not limited to, the provisions of Section 9.50.100 (or successor provision, as may be amended from time to time) governing "additional bedrooms" and all applicable building and construction codes in Title 8 of this code;

6. Acknowledgement of receipt of all electronically distributed short-term vacation rental information from the city, including any good neighbor brochure;

7. The owner or owner's authorized agent or representative who has applied for a short-term vacation rental permit shall provide the city with written authorization that issuance of a short-term vacation rental permit pursuant to this chapter is not inconsistent with any recorded or unrecorded restrictive covenant, document, or other policy of a homeowner association (HOA) or other person or entity which has governing authority over the property on which a short-term vacation rental unit will be operated; in furtherance of this requirement, there shall be a rebuttable presumption that an owner or owner's authorized agent or representative does not have written authorization for the issuance of a short-term vacation rental permit if a HOA or other person or entity which has governing authority over the property has submitted to the city a duly-authorized official writing, which informs the city that short-term vacation rentals of thirty (30) consecutive days or less are not permitted on the property applying for a short-term vacation rental permit; and

8. Such other information as the city manager or authorized designee deems reasonably necessary to administer this chapter.
235 Click Here to Return to Agenda
Created: 2021-12-15 15:04:50 [EST]
(Supp. No. 2, Update 2)

B. The short-term vacation rental permit application shall be accompanied by an application fee as set by resolution of the city council. A short-term vacation rental permit and business license shall not be issued or renewed while any check or other payment method cannot be processed for insufficient funds.

C. The city may determine the maximum number of bedrooms in a residential dwelling with multiple bedrooms eligible for use as a short-term vacation rental unit upon issuance of a short-term vacation rental permit.

When determining the maximum number of bedrooms eligible for use as short-term vacation rentals, the city shall consider the public health, safety, and welfare, shall comply with building and residential codes, and may rely on public records relating to planned and approved living space within the residential dwellings, including, but not limited to, title insurance reports, official county records, and tax assessor records. Owners of residential dwellings that exceed five thousand (5,000) square feet of developed space on a lot may apply for additional bedrooms. An owner and/or owner's authorized agent or representative may not advertise availability for occupancy of a short-term vacation rental unit for more than the approved number of bedrooms listed in the short-term vacation rental permit issued by the city pursuant to this chapter. In addition to any other rights and remedies available to the city under this chapter, the first violation for failing to advertise the approved number of bedrooms may be subject to a fine by an administrative citation, and a second or subsequent violation for failing to advertise the approved number of bedrooms may result in a revocation (which may include permanent revocation) of the short-term vacation rental permit and/or any affiliated licenses or permits pursuant to the provisions set forth in Section 3.25.100.

D. Short-term vacation rental permit applications shall comply with the following:

1. A short-term vacation rental permit application for the estate home shall be subject to evaluation and inspection of the property to ensure that the short-term vacation rental unit will not create conditions materially detrimental to the public health, safety and general welfare or injurious to or incompatible with other properties in the vicinity. Evaluation and inspection shall include, but not be limited to: verification of the number of bedrooms, adequate on-site parking spaces, availability of nearby street parking, physical distance of the estate home from adjacent properties, such as location and distance of outdoor gathering spaces, pools, and other living spaces from neighboring properties. The city manager, or designee, shall have the authority to impose additional conditions on the use of the estate home as a short-term vacation rental unit to ensure that any potential secondary effects unique to the subject shortterm vacation rental unit are avoided or adequately mitigated.

2. A short-term vacation rental permit application may be denied if the applicant has failed to comply with application requirements in this chapter, or has had a prior short-term vacation rental permit for the same unit revoked within the past twelve (12) calendar months. In addition, upon adoption of a resolution pursuant to subsection H, the city may limit the number of short-term vacation rental units in a given geographic area based on a high concentration of short-term vacation rental units. The city shall maintain a waiting list of short-term vacation rental permit applications for such geographic areas where the city determines, based on substantial evidence after a noticed public hearing and public hearing, there is a higher than average concentration of short-term vacation rental units that either affects the public health, safety, and welfare or significantly negatively impacts the character and standard of living in a neighborhood within that geographic area, or both.

E. Short-term vacation rental permit applications may take up to, and the city shall have, thirty (30) calendar days to process. An application for a renewal of a short-term vacation rental permit and business license should be submitted at least thirty (30) calendar days prior to the existing permit's expiration to allow sufficient time for the city to process the renewal application. Nothing in this subsection or chapter shall be construed as requiring the city to issue or deny a short-term vacation rental permit in less than thirty (30) calendar days, as no permit shall be issued until such time as application review is complete. No short-term vacation rental use may occur in the city without a valid short-term vacation rental permit is issued in accordance with this chapter.
236 Click Here to Return to Agenda
Created: 2021-12-15 15:04:50 [EST]
(Supp. No. 2, Update 2)

F. Upon a change of ownership of a property (or upon a new person and/or new entity owning or controlling a business or organization or other entity of any kind, such as a limited liability company, which is the owner of a property) licensed to operate as a short-term vacation rental unit, the owner or owner's authorized agent or representative shall notify the city of such change immediately. The existing short-term vacation rental permit shall be terminated and the property must cease operating as a short-term vacation rental immediately. Failure to comply may result in a fine of one thousand dollars ($1,000.00) per day for a continuing violation of this subsection F.

G. Immediately upon a change of an owner's authorized agent or representative, local contact, or any other change pertaining to the information contained in the short-term vacation rental application, the owner or owner's authorized agent or representative shall update the short-term vacation rental unit's online registration profile used by the city for the implementation of the short-term vacation rental regulations.

Failure to update immediately this information may result in a violation of this chapter, including but not limited to a suspension or revocation of a short-term vacation rental permit, until all information is updated.

H. The city manager or authorized designee shall prepare, for adoption by resolution by the city council, a review procedure and criteria to evaluate the limitation for issuance of STVR permits and/or STVR applications for geographic areas within the city as set forth in subsection D. (Ord. 590 § 1(Exh. A), 3-16-2021; Ord. 586 § 1(Exh. A), 12-15-2020; Ord. 572 § 1, 2018; Ord. 563 § 1, 2017; Ord. 501 § 2, 2012)

3.25.065 Short-term vacation rental permit—Grounds for denial.

A. In addition to any other grounds provided in this chapter, an application (including renewal application) for a short-term vacation rental permit may be denied if use of the short-term vacation rental unit has been, will be, or is apt to become any one (1) or more of the following.

1. Prohibited by any local ordinance or by any state or federal law, statute, rule or regulation;

2. A public nuisance;

3. In any way detrimental to the public interest;

4. Prohibited by zoning laws and ordinances.

B. An application (including renewal application) for a short-term vacation rental permit may also be denied on the grounds that the applicant has knowingly made a false statement in a material matter either in his/her/their application or in his/her/their testimony before the city manager or other body hearing such testimony.

C. This section is intended to be, and shall be construed as being, in alignment with the grounds for denial of a business license set forth in Section 3.28.080 (or successor section) of this code. (Ord. 591 § 1(Exh. A), 4-20-2021)

3.25.070 Operational requirements and standard conditions.

A. The owner and/or owner's authorized agent or representative shall use reasonably prudent business practices to ensure that the short-term vacation rental unit is used in a manner that complies with all applicable laws, rules and regulations pertaining to the use and occupancy of the subject short-term vacation rental unit.

1. An estate home may be established for short-term vacation rental use subject to evaluation and inspection of the property pursuant to Section 3.25.060(D)(1). 237 Click Here to Return to Agenda
Created: 2021-12-15 15:04:50 [EST]
(Supp. No. 2, Update 2)

2. An estate home established for short-term vacation rental use is required to be equipped with a noise monitoring device(s) that is operable at all times.

B. The responsible person(s) shall be an occupant(s) of the short-term vacation rental unit for which he, she or they signed a rental agreement for such rental, use and occupancy, and/or any person(s) occupying the short-term vacation rental unit without a rental agreement, including the owner, owner's authorized agent or representative, local contact(s) and their guests. No non-permanent improvements to the property, such as tents, trailers, or other mobile units, may be used as short-term vacation rentals. The total number of occupants, including the responsible person(s), allowed to occupy any given short-term vacation rental unit may be within the ranges set forth in the table below. By the issuance of a short-term vacation rental permit, the city or its authorized designees, including police, shall have the right to conduct a count of all persons occupying the short-term vacation rental unit in response to a complaint or any other legal grounds to conduct an inspection resulting from the use of the short-term vacation rental unit, and the failure to allow the city or its authorized designees the ability to conduct such a count may constitute a violation of this chapter. The city council may by resolution further restrict occupancy levels provided those restrictions are within the occupancy ranges set forth below.

Number of
Bedrooms
Total of
Overnight*
Occupants
Total Daytime** Occupants
(Including Number of
Overnight Occupants)
0—Studio 2 2—8
1 2—4 2—8
2 4—6 4—8
3 6—8 6—12
4 8—10 8—16
5 10—12 10—18
6 12—14 12—20
7 14 14—20
8 16 16—22
9 18 18—24
*Overnight (10:01 p.m.—6:59 a.m.)
**Daytime (7:00 a.m.—10:00 p.m.)
C. The person(s) listed as the local contact person in the short-term vacation rental unit's online registration profile shall be available twenty-four (24) hours per day, seven (7) days per week, with the ability to respond to the location within thirty (30) minutes to complaints regarding the condition, operation, or conduct of occupants of the short-term vacation rental unit or their guests. The person(s) listed as a local contact person shall be able to respond personally to the location, or to contact the owner or the owner's authorized agent or representative to respond personally to the location, within thirty (30) minutes of notification or attempted notification by the city or its authorized short-term vacation rental designated hotline service provider. No provision in this section shall obligate the city or its authorized short-term vacation rental designated hotline service provider to attempt to contact any person or entity other than the person(s) listed as the local contact person.

D. The owner, the owner's authorized agent or representative and/or the owner's designated local contact person shall use reasonably prudent business practices to ensure that the occupants and/or guests of the short-term vacation rental unit do not create unreasonable or unlawful noise or disturbances, engage in disorderly conduct, or violate any applicable law, rule or regulation pertaining to the use and occupancy of the subject short-term vacation rental unit.
238 Click Here to Return to Agenda
Created: 2021-12-15 15:04:50 [EST]
(Supp. No. 2, Update 2)

E. Occupants of the short-term vacation rental unit shall comply with the standards and regulations for allowable noise at the property in accordance with Sections 9.100.210 and 11.08.040 (or successor provision, as may be amended from time to time) of this code. No radio receiver, musical instrument, phonograph, compact disk player, loudspeaker, karaoke machine, sound amplifier, or any machine, device or equipment that produces or reproduces any sound shall be used outside or be audible from the outside of any shortterm vacation rental unit between the hours of 10:00 p.m. and 7:00 a.m. Pacific Standard Time. Observations of noise related violations shall be made by the city or its authorized designee from any location at which a city official or authorized designee may lawfully be, including but not limited to any public right-of-way, any city-owned public property, and any private property to which the city or its authorized designee has been granted access.

F. Prior to occupancy of a short-term vacation rental unit, the owner or the owner's authorized agent or representative shall:

1. Obtain the contact information of the responsible person;

2. Provide copies of all electronically distributed short-term vacation rental information from the city, including any good neighbor brochure to the responsible person and post in a conspicuous location within the short-term vacation rental unit, in a manner that allows for the information to be viewed in its entirety; and require such responsible person to execute a formal acknowledgement that he or she is legally responsible for compliance by all occupants of the short-term vacation rental unit and their guests with all applicable laws, rules and regulations pertaining to the use and occupancy of the short-term vacation rental unit. This information shall be maintained by the owner or the owner's authorized agent or representative for a period of three (3) years and be made readily available upon request of any officer of the city responsible for the enforcement of any provision of this code or any other applicable law, rule or regulation pertaining to the use and occupancy of the short-term vacation rental unit.

G. The owner, the owner's authorized agent or representative and/or the owner's designated local contact person shall, upon notification or attempted notification that the responsible person and/or any occupant and/or guest of the short-term vacation rental unit has created unreasonable or unlawful noise or disturbances, engaged in disorderly conduct, or committed violations of any applicable law, rule or regulation pertaining to the use and occupancy of the subject short-term vacation rental unit, promptly respond within thirty (30) minutes to immediately halt and prevent a recurrence of such conduct by the responsible person and/or any occupants and/or guests. Failure of the owner, the owner's authorized agent or representative and/or the owner's designated local contact person to respond to calls or complaints regarding the condition, operation, or conduct of occupants and/or guests of the short-term vacation rental unit within thirty (30) minutes, shall be subject to all administrative, legal and equitable remedies available to the city.

H. Reserved.

I. Trash and refuse shall not be left stored within public view, except in proper containers for the purpose of collection by the city's authorized waste hauler on scheduled trash collection days. The owner, the owner's authorized agent or representative shall use reasonably prudent business practices to ensure compliance with all the provisions of Chapter 6.04 (Solid Waste Collection and Disposal) (or successor provision, as may be amended from time to time) of this code.

J. Signs may be posted on the premises to advertise the availability of the short-term vacation rental unit as provided for in Chapter 9.160 (Signs) (or successor provision, as may be amended from time to time) of this code.

K. The owner, authorized agent or representative and/or the owner's designated local contact person shall post a copy of the short-term vacation rental permit and a copy of the good neighbor brochure in a conspicuous place within the short-term vacation rental unit, and a copy of the good neighbor brochure shall be provided to each occupant of the subject short-term vacation rental unit. 239 Click Here to Return to Agenda
Created: 2021-12-15 15:04:50 [EST]
(Supp. No. 2, Update 2)

L. Unless otherwise provided in this chapter, the owner and/or the owner's authorized agent or representative shall comply with all provisions of Chapter 3.24 concerning transient occupancy taxes, including, but not limited to, submission of a monthly return in accordance with Section 3.24.080 (or successor provisions, as may be amended from time to time) of this code, which shall be filed monthly even if the short-term vacation rental unit was not rented during each such month.

M. Guesthouses, detached from the primary residential dwelling on the property, or the primary residential dwelling on the property, may be rented pursuant to this chapter as long as the guesthouse and the primary residential dwelling are rented to one (1) party.

N. The owner and/or the owner's authorized agent or representative shall post the number of authorized bedrooms and the current short-term vacation rental permit number at the beginning or top of any advertisement that promotes the availability or existence of a short-term vacation rental unit. In the instance of audio-only advertising of the same, the short-term vacation rental permit number shall be read as part of the advertisement.

O. The owner and/or owner's authorized agent or representative shall operate a short-term vacation rental unit in compliance with any other permits or licenses that apply to the property, including, but not limited to, any permit or license needed to operate a special event pursuant to Section 9.60.170 (or successor provision, as may be amended from time to time) of this code. The city may limit the number of special event permits issued per year on residential dwellings pursuant to Section 9.60.170 (or successor provision, as may be amended from time to time).

P. The city manager, or designee, shall have the authority to impose additional conditions on the use of any given short-term vacation rental unit to ensure that any potential secondary effects unique to the subject short-term vacation rental unit are avoided or adequately mitigated, including, but not limited to, a mitigating condition that would require the installation of a noise monitoring device to keep time-stamped noise level data from the property that will be made available to the city upon city's reasonable request.

Q. The standard conditions set forth herein may be modified by the city manager, or designee, upon request of the owner or the owner's authorized agent or representative based on site-specific circumstances for the purpose of allowing reasonable accommodation of a short-term vacation rental. All requests must be in writing and shall identify how the strict application of the standard conditions creates an unreasonable hardship to a property such that, if the requirement is not modified, reasonable use of the property for a short-term vacation rental would not be allowed. Any hardships identified must relate to physical constraints to the subject site and shall not be self-induced or economic. Any modifications of the standard conditions shall not further exacerbate an already existing problem.

R. On-site parking shall be on an approved driveway, garage, and/or carport areas only; this section does not impose restrictions on public street parking regulations. Recreational vehicles may be parked in accordance with the provisions set forth in Section 9.60.130 (or successor provision, as may be amended from time to time) of this code.
(Ord. 590 § 1(Exh. A), 3-16-2021; Ord. 586 § 1(Exh. A), 12-15-2020; Ord. 577 § 1, 2019; Ord. 572 § 1, 2018; Ord. 563 § 1, 2017; Ord. 501 § 2, 2012)

3.25.080 Recordkeeping and hosting platform duties.

A. The owner or the owner's authorized agent or representative shall maintain for a period of three (3) years, records in such form as the tax administrator (as defined in Chapter 3.24) may require to determine the amount of transient occupancy tax owed to the city. The tax administrator shall have the right to inspect such records at all reasonable times, which may be subject to the subpoena by the tax administrator 240 Click Here to Return to Agenda
Created: 2021-12-15 15:04:50 [EST]
(Supp. No. 2, Update 2)

pursuant to Section 3.24.140 (Records) (Transient Occupancy Tax) (or successor provisions, as may be amended from time to time) of this code.

B. Hosting platforms shall not complete any booking transaction for any residential dwelling or other property purporting to be a short-term vacation rental unit in the city unless the dwelling or property has a current and valid short-term vacation rental permit issued pursuant to this chapter, which is not under suspension, for the dates and times proposed as part of the booking transaction.

1. The city shall maintain an online registry of active and suspended short-term vacation rental permits, which hosting platforms may reference and rely upon for purposes of complying with subsection B. If a residential dwelling or other property purporting to be a short-term vacation rental unit matches with an address, permit number, and/or current and valid permit dates (not under suspension) set forth in the city's online registry, the hosting platforms may presume that the dwelling or other property has a current and valid short-term vacation rental permit.

2. The provisions of this subsection B shall be interpreted in accordance with otherwise applicable state and federal law(s) and will not apply if determined by the city to be in violation of, or preempted by, any such law(s).
(Ord. 590 § 1(Exh. A), 3-16-2021; Ord. 586 § 1(Exh. A), 12-15-2020; Ord. 572 § 1, 2018; Ord. 563 § 1, 2017; Ord. 501 § 2, 2012)

3.25.090 Violations.

A. Additional Conditions. A violation of any provision of this chapter or this code by any applicant, occupant, responsible person, local contact person, owner, or owner's authorized agent or representative, shall authorize the city manager, or designee, to impose additional conditions on the use of any given short-term vacation rental unit to ensure that any potential additional violations are avoided.

B. Permit Modification, Suspension and Revocation. A violation of any provision of this chapter, this code, California Vehicle Code, or any other applicable federal, state, or local laws or codes, including, but not limited to, applicable fire codes and the building and construction codes as set forth in Title 8 of this code, by any applicant, occupant, responsible person, local contact person, owner, or owner's authorized agent or representative, shall constitute grounds for modification, suspension and/or revocation (which may include permanent revocation) of the short-term vacation rental permit and/or any affiliated licenses or permits pursuant to the provisions set forth in Section 3.25.100.

C. Notice of Violation. The city may issue a notice of violation to any applicant, occupant, responsible person, local contact person, owner, owner's authorized agent or representative, or hosting platform, pursuant to Section 1.01.300 (or successor provisions, as may be amended from time to time) of this code, if there is any violation of this chapter committed, caused or maintained by any of the above parties.

D. Two (2) Strikes Policy. Subject to a minor violation reprieve request, two (2) violations of any provision of this chapter or this code within one (1) year by any applicant, occupant, responsible person, local contact person, owner, or owner's authorized agent or representative, with respect to any one (1) residential dwelling shall result in an immediate suspension of the short-term vacation rental permit with subsequent ability to have a hearing before the city, pursuant to this chapter, to request a lifting of the suspension. For purposes of this subsection, a "minor violation reprieve request" means a written request submitted to the city's code enforcement officer for relief from counting one (1) or more violations within the one (1) year period as a minor violation, and "minor violation" means a violation of a particular section of this code that resulted in minimal impact on the use and enjoyment of the adjacent and nearby properties caused by any of the following:
241 Click Here to Return to Agenda
Created: 2021-12-15 15:04:50 [EST]
(Supp. No. 2, Update 2)

1. Minor debris or trash containers left in view as a first offense;

2. A short-term vacation rental permit number or bedroom count not posted on an advertisement as a first offense;

3. A short-term vacation rental permit number or bedroom count posted in the wrong location on an advertisement as a first offense; or

4. Over occupancy due to a minor child not associated with a disturbance.

A determination of whether a code violation is a minor violation shall be based on substantial evidence presented to the code enforcement officer relating to that violation.

E. Administrative and Misdemeanor Citations. The city may issue an administrative citation to any applicant, occupant, responsible person, local contact person, owner, owner's authorized agent or representative, or hosting platform, pursuant to Chapter 1.09 (Administrative Citations) (or successor provisions, as may be amended from time to time) of this code, if there is any violation of this chapter committed, caused or maintained by any of the above parties. Nothing in this section shall preclude the city from also issuing an infraction citation upon the occurrence of the same offense on a separate day. An administrative citation may impose a fine for one (1) or more violations of this chapter in the maximum amount allowed by state law or this code in which the latter amount shall be as follows:

1. General STVR Violations (Occupancy/Noise/Parking).
a. First violation: one thousand dollars ($1,000.00);
b. Second violation: two thousand dollars ($2,000.00);
c. Third violation: three thousand dollars ($3,000.00).

2. Operating a STVR Without a Valid Short-Term Vacation Rental Permit. a. First violation: three thousand dollars ($3,000.00); b. Second or more violations: five thousand dollars ($5,000.00); c. In addition to the fine set forth above, the first violation of operating a STVR without a valid shortterm vacation rental permit shall be cause for an owner (or person and/or entity that owns or controls a business or organization or other entity of any kind, such as a limited liability company, which is the owner of a property) to be prohibited for all time from being eligible to be issued a shortterm vacation rental permit and/or business license for use of a property as a short-term vacation rental unit.

3. Hosting a Special Event at a STVR Without a Special Event Permit as Required by Section 9.60.170 (or Successor Provision, as May Be Amended From Time to Time) of This Code. a. First violation: five thousand dollars ($5,000.00);
b. Second violation: five thousand dollars ($500.00).

F. Public Nuisance. In addition to any and all rights and remedies available to the city, it shall be a public nuisance for any person or entity to commit, cause or maintain a violation of this chapter, which shall be subject to the provisions of Section 1.01.250 (Violations public nuisances) (or successor provisions, as may be amended from time to time) of this code.
(Ord. 590 § 1(Exh. A), 3-16-2021; Ord. 586 § 1(Exh. A), 12-15-2020; Ord. 578 § 1, 2019; Ord. 572 § 1, 2018; Ord. 563 § 1, 2017; Ord. 501 § 2, 2012)
242 Click Here to Return to Agenda
Created: 2021-12-15 15:04:50 [EST]
(Supp. No. 2, Update 2)

3.25.100 Appeals.

A. Any person aggrieved by any decision of a city officer made pursuant to this chapter may request a hearing before the city manager in accordance with Chapter 2.08 (or successor provisions, as may be amended from time to time) of this code.

B. Notwithstanding any provisions in Section 2.08.230 or otherwise in the code, the decision by the city manager of an appeal brought under this chapter shall be the final decision by the city for any violation of a short-term vacation rental permit issued under this order, except for any administrative citation imposing a fine, which shall be processed and subject to an administrative appeal pursuant to Chapter 1.09 of the code. (Ord. 590 § 1(Exh. A), 3-16-2021; Ord. 586 § 1(Exh. A), 12-15-2020; Ord. 572 § 1, 2018; Ord. 563 § 1, 2017) 243 Click Here to Return to Agenda
244 Click Here to Return to Agenda
TR 36279
TR 33085
Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community
AVENUE 52

VISTA BONITA
TRAIL

BETH CR MADISON STREET
City of Indio
City of La Quinta
City of La Quinta
Design and Development Department
Polo Villas
Residences
January 2022
®
Planning Division
Legend
City Boundary
Project Site
ATTACHMENT 1 ATTACHMENT 1 245 Click Here to Return to Agenda 246 Click Here to Return to Agenda

FISCAL IMPACT ANALYSIS
FOR

POLO VILLAS
January 2022
Prepared By:

ATTACHMENT 2681 247 Click Here to Return to Agenda
Fiscal Impact Analysis
January 2022 Polo Villas
- 2 -
Table of Contents
Page
Contents

1.0 Purpose of Fiscal Impact Analysis................................................................................ 3

2.0 Project Description........................................................................................................ 3

3.0 FIA Limiting Conditions............................................................................................... 3

4.0 General Sources of Information and Methodology Used in FIA.................................. 4

5.0 FIA Summary and Conclusions.................................................................................... 5

6.0 FIA Recurring Revenues............................................................................................... 6

6.1 Property Tax .............................................................................................................. 6

6.2 Property Transfer Tax................................................................................................ 7

6.3 Property Tax In-Lieu of Vehicle License Fees (“VLF”)........................................... 7

6.4 Transient Occupancy Tax (TOT) .............................................................................. 7

6.5 Offsite Sales Tax ....................................................................................................... 7

6.6 Other Revenues.......................................................................................................... 8

7.0 FIA Recurring Costs..................................................................................................... 8

7.1 General Administration ............................................................................................. 8

7.2 Police ......................................................................................................................... 9

7.3 Fire............................................................................................................................. 9

7.4 Community Resources............................................................................................... 9

7.5 Public Works ............................................................................................................. 9

7.6 Design & Development ............................................................................................. 9

7.7 Fiscal Services........................................................................................................... 9

8.0 Impact Fees................................................................................................................. 10

9.0 Glossary of Defined Terms and Acronyms ................................................................ 10 Appendices:

Appendix A – Project Aerial
Appendix B – Fiscal Impact Analysis Tables
248 Click Here to Return to Agenda
Fiscal Impact Analysis
January 2022 Polo Villas
- 3 -

1.0 Purpose of Fiscal Impact Analysis
This Fiscal Impact Analysis (“FIA”) has been prepared to determine the estimated fiscal impacts on the City of La Quinta (“City”) in connection with the proposed development of the Polo Villas project (“Project”), an 18 single family unit, short-term rental, development with 11 existing dwelling units and an additional 7 lots proposed for development of single family units similar to the existing 11 dwelling units. The reader should be aware that the FIA contains estimates or projections of the Project’s future revenue and cost impacts on the City and actual fiscal results may vary from estimates because events and circumstances may occur in a manner that is different than projected in the FIA. The primary purpose of this FIA is to estimate the Project’s net fiscal impact on the City’s General Fund upon build-out.

2.0 Project Description
Polo Villas is a short-term rental development consisting of 18 homes, generating an estimated population equivalent of 140 visitors. Development has already been completed on 11 of the single family dwelling units with an additional 7 units proposed for development. The lots on the site total approximately 10.28 acres of land. The project is located at the corner of Madison Street and Vista Bonita Trail within the City of La Quinta.

3.0 FIA Limiting Conditions
The FIA is subject to the following limiting conditions:
▪ The FIA contains an analysis of recurring revenues and costs to the City from development of the Project. The FIA is based on estimates, assumptions, and other information developed from DPFG’s research and experience. ▪ The sources of information and basis of the estimates are stated herein. While we believe the sources of information are reliable, DPFG does not express an opinion or any other form of assurance on the accuracy of such information. ▪ The analysis of recurring revenues and cost impacts to the City contained in the FIA is not considered to be a “financial forecast” or a “financial projection” as technically defined by the American Institute of Certified Public Accountants. The word “projection” used within this report relates to broad expectations of future events or market conditions.
▪ Since the analyses contained herein are based on estimates and assumptions which are inherently subject to uncertainty and variation depending on evolving events, DPFG cannot represent that results will definitely be achieved. Some assumptions inevitably will not materialize and unanticipated events and circumstances may occur; therefore, the actual results achieved may vary from the projections. 249 Click Here to Return to Agenda
Fiscal Impact Analysis
January 2022 Polo Villas
- 4 -

4.0 General Sources of Information and Methodology Used in FIA The FIA was prepared to estimate the allocable revenue and cost impacts to the City’s general fund (“General Fund”) as a result of the Project’s development and operation as short-term rental units. The FIA uses a combination of case study methods and multiplier methods to estimate Project impacts.

When projecting fiscal impacts using a multiplier method, the FIA determines per capita/employee impacts by applying the appropriate multiplier to the Project’s land use assumptions. The Per Capita-and-Employee-Multiplier Method involves dividing a cost or revenue figure by the number of residents and 50% of all employees working in the City, and then multiplying that number by the number of residents projected for the Project at buildout. This method assumes that recurring costs and revenues will result from the Project at the same rates that currently prevail within the City, with each employee counted as one-half of a resident to reflect the relative significance of employees (i.e. nonresidential land uses) in generating City public services costs or City revenues. The multipliers were calculated using data from the City of La Quinta Approved Operating Budget for Fiscal Year 2020-2021 (“Budget”). Where appropriate, City Budget data is adjusted to account for expected marginal increases when the nature of the cost or revenue item contains a fixed component that is not anticipated to change based on population growth from the Project. All cost and revenue factors are projected in 2021 dollars, and are not adjusted for inflation, based on the assumption that the relative impacts of inflation in future years will be offsetting.

Information used in preparing the FIA was obtained from the following sources: (1) City of La Quinta Adopted Budget for Fiscal Year 2021-2022; (2) Avantstay (“Client”); (3) California Employment Development Department (employment information); (4) Riverside Auditor-Controller’s Office (Fiscal Year 2021-2022 share of the basic tax information and assessments); (5) U.S. Census Bureau (population data); (6) U.S. Bureau of Labor Statistics (household expenditure data and persons per household); and (7) Riverside Market View published by CBRE (Market Data).

The FIA Appendix is organized as follows:

Appendix Table Description
B 1 Fiscal Impact Analysis Summaries
B 2 Population and Employment Data
B 3 Land Use and Assessed Value Assumptions
B 4 Post-ERAF Share of the Basic Tax Calculation
B 5 Property Taxes In-Lieu of VLF
B 6 Transient Occupancy Taxes
B 7 Off-Site Sales Tax Revenue
B 8 Other Recurring Revenues
B 9 Property Taxes In-Lieu of VLF
250 Click Here to Return to Agenda
Fiscal Impact Analysis
January 2022 Polo Villas
- 5 -
The following table shows the key demographic and property tax assumptions for both scenarios used in the FIA:

Demographic Summary

5.0 FIA Summary and Conclusions
The FIA examines the financial impact the Project will have at buildout on the General Fund. The Project will generate additional revenue for the General Fund primarily through increased property taxes, property taxes in-lieu of vehicle license fees, and transient occupancy taxes. The additional costs incurred to the General Fund as a result of the Project are less than the additional revenues generated, and consist primarily of police and fire services. The Project’s direct impact to the General Fund at buildout is summarized in the following chart:

Average Beds per Unit 5.2 (a)
Average Persons per Bed 2 (b)
Total Anticipated Guests per Unit 10.4
Total Units at Buildout 18
Total Anticipated Guests 187
Average Annual Occupancy Rate 65% (b)
Total Anticipated Average Annual Persons Generated 122
(Persons Per Household Equivalent)
Population / Visitors (c) 37,558 122
Employees (d) - 19,400
Residents + 50% Employees 47,258 122
Footnotes:
(c) Per the United States 2020 Census Total Population for the City of La Quinta. (d) Based upon the California Employment Development Department total employment values for the City of La Quinta dated 11/19/2021. (b) Average of 2 persons per bed and 65% occupancy rate per Client and existing development data estimates.
(a) Estimate of 5.2 beds per unit per anticipated land use.

Estimated Project Residents
City Project
251 Click Here to Return to Agenda
Fiscal Impact Analysis
January 2022 Polo Villas
- 6 -
As seen in the chart, the Project is anticipated to generate a $810,589 surplus to the City on an annual basis, once the Project is fully developed.

6.0 FIA Recurring Revenues

6.1 Property Tax
In addition to other ad valorem charges imposed by various local agencies, land owners in the State of California (“State”) are required to pay annual property taxes of 1% on the assessed value of their property pursuant to Proposition 13. Each City in California is divided into tax rate areas (“TRA”). After the basic 1% property tax is collected by the County, the tax is allocated to various local agencies based on each agency’s share of the basic tax within the property’s applicable TRA. The Project is subject to TRA’s 020-056 and 020-160. Per the Riverside County Auditor-Controller, the City will receive a weighted average of 6.4620% of the base 1% ad-valorem tax. The breakdown of lots and estimated assessed value by TRA is detailed in Appendix B, Table 4. In total, the Project is anticipated to generate the following per year in property taxes for each scenario.

Total
Total Assessed Value from Table 2 $ 36,000,000
Base 1% Ad-Valorem Tax 1.00% 360,000 $
Cityy Share 6.4620% 23,263 $
252 Click Here to Return to Agenda
Fiscal Impact Analysis
January 2022 Polo Villas
- 7 -

6.2 Property Transfer Tax
The City receives property transfer tax revenue as new or existing property is sold and ownership is transferred. In accordance with California Revenue and Taxation Code Section 11911, a City may levy a transfer tax at the rate of $0.55 for each $1,000 of assessed value. The FIA assumes a residential turnover rate of 10.00% of total assessed value per year (i.e., properties change ownership every 10 years on average) and a commercial turnover rate of 5.00% of the total assessed value per year (i.e. properties change ownership every 20 years on average). To be conservative, this analysis does not assume that the property will be sold in the near future.

6.3 Property Tax In-Lieu of Vehicle License Fees (“VLF”) In May 2004, Governor Schwarzenegger proposed a swap of City and City VLF revenue for additional property tax share as part of a budget agreement between the State and local governments. The swap was included in the 2004 budget package. Under this legislation, property tax in-lieu of VLF is allocated to Cities and Counties pursuant to a complex formula involving each agencies relative share of assessed value. The property tax in-lieu of VLF revenue that will be generated by the Project can be estimated by determining the (i) percentage growth in the total assessed value of the City attributable to the Project, and multiplying by (ii) the property tax in-lieu of VLF revenue of $4,615,000 expected to be received by the City in fiscal year 2021/22 per the City Budget. Based on these calculations, the Project is anticipated to generate an additional $7,731 annually in property tax in-lieu of VLF revenue (reference Appendix B, Table 5).

6.4 Transient Occupancy Tax (TOT)
The transient occupancy tax (hotel, motel, campground or bed tax) is authorized under State Revenue and Taxation Code Section 7280, as an additional source of non-property tax revenue to local government. Per City of La Quinta, the City levies a transient occupancy tax at a rate of 10.00% of hotel or other lodging stays of less than 30 days.

Based on information provided by the client regarding the actual gross rental revenue generated by the existing development, we’ve estimated the average yearly gross rental revenue increase based on the additional proposed lots. Based on the forgoing, we have projected transient occupancy tax. Accordingly, the FIA projects annual transient occupancy tax revenue of $831,183, as calculated in Appendix B, Table 8.

6.5 Offsite Sales Tax
Under the California Sales and Use Tax Law, the sale of tangible personal property is subject to sales or use tax unless exempt or otherwise excluded. When the sales tax applies, the use tax does not apply and the opposite is also true. The sales tax is imposed on all retailers for the privilege of selling tangible personal property in the State and is measured by the retailer’s gross receipts.

Currently, there is a 7.25% statewide sales and use tax base rate that is collected by the State Board of Equalization. The State government receives 6.25% of the 7.25% and local governments receive the remaining 1.00% which is transferred to the local government’s 253 Click Here to Return to Agenda
Fiscal Impact Analysis
January 2022 Polo Villas
- 8 -
general fund. The City has also approved Measure G in 2016 which was approved by voters and results in an additional 1.00% sales tax.

The City will receive sales tax revenue from taxable purchases made within the City limits by the Project’s visitors. Applying the methodology outlined in Appendix B Table 7 the Project is anticipated to generate $43,849 in residential off-site sales tax.

Total
Estimated Spending per Week per Person (a) $ 2,100 $ 255,528 Estimated Annual Spending $ 13,287,456
Less: Vacancy (b) 20% (2,657,491)
Less: Estimated Annual spending on Lodging and Non Taxable Sales (c) 47% (6,245,104) Total Anticipated Annual taxable spending $ 4,384,860
Total Spending anticipated outside City (d) 50% $ (2,192,430) Total Taxable Spending within City of La Quinta $ 2,192,430 Annual Sales Taxes to City 1.00% $ 21,924
Annual Measure G Sales Taxes to City 1.00% $ 21,924
Total Annual Sales Tax to City 2.00% $ 43,849
Footnotes:
(d) Represents anticipated taxable spending outside the City. (b) Estiamted vacancy represents DPFG's estimate based on location relative to other establishments in the market Spending by Residents: Single Family Short Term Rental
(a) Estimate based on average anticipated spending of $300 per person per day ($2,100 per week) based on data from Visit California and the 2017 Report on the Economic Impact of Tourism in the Greater Palm Springs Area.

Total estimated spending represents spending for all 140 anticipated guests per week at buildout. (c) Per data from Visit California and the 2017 Report on the Economic Impact of Tourism in the Greater Palm Springs Area average visitor spending.

6.6 Other Revenues
The City receives various other revenues analyzed under the FIA. These include (i) franchise fees, (ii) charges for services, and (iii) Franchise Fees, among other recurring revenues. These revenues have been estimated using the appropriate multiplier against the City budgeted revenues for each respective revenue category. Accordingly, total annual “other” revenues are anticipated to be $36,140 at buildout, as seen in Appendix B, Table

8. 7.0 FIA Recurring Costs

7.1 General Administration
General Government Administration services cost includes City Council, City Manager, City Attorney, City Clerk, and Human Resources. The FIA assumes an estimated 50% marginal increase for these costs as they do not have a 1:1 relationship with population growth (i.e., majority of costs are fixed, not variable). Accordingly, using a Per Capita & 254 Click Here to Return to Agenda
Fiscal Impact Analysis
January 2022 Polo Villas
- 9 -
50% Employee Multiplier, General Administration costs are anticipated to be approximately $5,666 at buildout, as shown in Appendix B, Table 9.

7.2 Police
The Police department will be responsible for providing protection services to the Project.

To estimate the Project’s impact on police service costs, the FIA uses a Per Capita & 50% Employee Multiplier of approximately $350.51. Based on this multiplier, total annual police service costs for the Project are estimated to be approximately $45,973 at buildout, as shown in Appendix B, Table 9.

7.3 Fire
The La Quinta Fire Department provides fire protection and emergency medical services to the City of La Quinta. To estimate the Project’s impact on fire service costs the FIA uses a Per Capita & 50% Employee Multiplier of approximately $150.39. Based on this multiplier, total annual fire service costs are estimated to be approximately $19,725 at buildout, as shown in Table 9.

7.4 Community Resources
The Community Services cost category includes services related to Community Resources Administration, Wellness Center Operations, Recreation Programs/Special Events, as well as Code Compliance/Animal Control. Using a Per Capita Multiplier, total Community Services costs are anticipated to be approximately $6,556 at buildout, as shown in Appendix B, Table 9.

7.5 Public Works
The Public Works cost category include services related to Parks Maintenance, Public Buildings, Public Works Administration, Development Services, Streets, as well as Engineering Services. Using a Per Capita Multiplier, total Public Works costs are anticipated to be approximately $14,666 at buildout, as shown in Appendix B, Table 9.

7.6 Design & Development
The Design & Development cost category include services related to Design & Development Administration, Planning, Building, and The Hub. Using a Per Capita Multiplier, total Public Works costs are anticipated to be approximately $8,344 at buildout, as shown in Appendix B, Table 9.

7.7 Fiscal Services
The Fiscal Services cost category includes services related to the collection and investment of City monies, accounting, budgeting, and financial reporting. Using a Per Capita Multiplier, total Public Works costs are anticipated to be approximately $30,646 at buildout, as shown in Appendix B, Table 9.
255 Click Here to Return to Agenda
Fiscal Impact Analysis
January 2022 Polo Villas
- 10 -

8.0 Impact Fees
The additional 7 lots proposed for dwelling units within the Project will be subject to development impact fees collected by the City and are a one-time revenue event. The City fees are collected to fund park and recreation, community and cultural center, library, civic center, maintenance facilities, fire protection and transportation improvements. The City will also collect fees for TUMF and MSHCP which will be passed through to Coachella Valley Association of Governments and Coachella Valley Conservation Commission, respectively. The total development impact fees to be paid to the City are anticipated to be approximately $91,966 at buildout, as shown in Appendix B, Table 10.

9.0 Glossary of Defined Terms and Acronyms
Budget City of La Quinta Adopted FY 2021/2022 Budget
City City of La Quinta
Client Avantstay
DPFG Development Planning & Financing Group
FIA Fiscal Impact Analysis
General Fund City of La Quinta General Fund
Project Polo Villas
State State of California
TRA Tax Rate Area
VLF Vehicle License Fees
256 Click Here to Return to Agenda
Fiscal Impact Analysis
January 2022 Polo Villas
- 11 -
Appendix A
257 Click Here to Return to Agenda
AVENUE 50
AVENUE 51

MADISON ST
AVENUE 52
258 Click Here to Return to Agenda

VISTA BONITA TRAIL

MADISON ST
777-500-007 777-500-006
777-500-005
777-500-004
777-500-003
777-500-002
777-500-001
777-500-022
777-500-018 777-500-019 777-500-020
777-500-017
777-500-016
777-500-021
777-500-025
777-500-008
777-500-009
777-500-010
777-500-011
777-500-015
259 Click Here to Return to Agenda
Fiscal Impact Analysis
January 2022 Polo Villas
- 12 -
Appendix B
260 Click Here to Return to Agenda
Table 1 - Polo Villa
Fiscal Impact Analysis Summary
Recurring Revenues:

Property Tax $ 23,263 Table 4
Property Tax in-lieu of VLF 7,731 Table 5
Transient Occupancy Tax 831,183 Table 6
Off-site Sales Tax 43,849 Table 7
Other Revenues 36,140 Table 8
Total Recurring Revenue $ 942,166
Recurring Expenditures:

City Council $ 389 Table 9
City Manager 1,385 Table 9
Marketing & Community Relations 1,707 Table 9
City Attorney 896 Table 9
City Clerk 805 Table 9
Human Resources 484 Table 9
Police 45,973 Table 9
Fire 19,725 Table 9
Community Resources Adminsitration Totals 1,310 Table 9 Wellness Center Operations 969 Table 9
Recreation Programs & Special Events Table 2,339 Table 9 Code Compliance/Animal Control Totals 1,939 Table 9
Parks Maintenance 6,517 Table 9
Public Buildings 3,402 Table 9
Public Works Administration 953 Table 9
Public Works Development Services 555 Table 9
Streets 1,279 Table 9
Engineering Services 1,961 Table 9
Design & Development Adminsitration Totals 1,690 Table 9 Planning 1,747 Table 9
Building 2,368 Table 9
The Hub 2,539 Table 9
Finance 3,718 Table 9
Central Services 26,928 Table 9
Total Recurring Expenditures $ 131,577
Net Fiscal Surplus (Deficit) $ 810,589

FISCAL IMPACT
261 Click Here to Return to Agenda
Table 2 - Polo Villas
Population and Employment Data
Average Beds per Unit 5.2 (a)
Average Persons per Bed 2 (b)
Total Anticipated Guests per Unit 10.4
Total Units at Buildout 18
Total Anticipated Guests 187
Average Annual Occupancy Rate 65% (b)
Total Anticipated Average Annual Persons Generated 122
(Persons Per Household Equivalent)
Population / Visitors 37,558 (c) 122
Employees 19,400 (d) -
Residents + 50% Employees 47,258 122
Footnotes:
(c) Per the United States 2020 Census Total Population for the City of La Quinta. (d) Based upon the California Employment Development Department total employment values for the City of La Quinta dated 11/19/2021. (b) Average of 2 persons per bed and 65% occupancy rate per Client and existing development data estimates.
(a) Estimate of 5.2 beds per unit per anticipated land use.

Estimated Project Residents
City Project
262 Click Here to Return to Agenda
Table 3 - Polo Villas
Land Use and Assessed Value Assumptions
Lot 1 - APN 777-500-001 $ 2,000,000
Lot 2 - APN 777-500-002 2,000,000
Lot 3 - APN 777-500-003 2,000,000
Lot 4 - APN 777-500-004 2,000,000
Lot 5 - APN 777-500-005 2,000,000
Lot 6 - APN 777-500-006 2,000,000
Lot 7 - APN 777-500-007 2,000,000
Lot 8 - APN 777-500-008 2,000,000
Lot 9 - APN 777-500-009 2,000,000
Lot 10 - APN 777-500-010 2,000,000
Lot 11 - APN 777-500-011 2,000,000
Residential Subtotal/Avg. $ 22,000,000
Average of Assessed Value of Developed Lots $ 2,000,000 Residential Subtotal for Remaining 7 Lots $ 14,000,000
Total Project Assessed Value $ 36,000,000
Footnotes:
(b) Remaining 7 lots to be developed are estimated to have an assessed value equal to the average assessed value of the existing lots.
(a) Assessed value per anticipated purchase price of $22,000,000 for existing lots.

Residential Developed Lots
Lot Total Residential
Assessed Value (a)
Residential Undeveloped Lots (b)
263 Click Here to Return to Agenda
Agency 020-056 020-160
General Fund 9.78120003% 9.78214642% 9.781837094%
County Free Library 1.33136960% 1.33136960% 1.331369600% County Structure Fire Protection 5.44245812% 5.44245812% 5.442458120% City of La Quinta 6.46308231% 6.46147051% 6.461997324%
Coachella Valley Unified School District 43.22091200% 43.22091200% 43.220912000% Desert Community College 6.97569300% 6.97569300% 6.975693000% Riv. Co. Office of Education 3.79513600% 3.79513600% 3.795136000% Riv. Co. County Regional Park and Open Sp 0.32203427% 0.32203427% 0.322034270% Coachella Valley Public Cemetary 0.21306183% 0.21306183% 0.213061830% CV Mosquito and Vector Control 0.90593538% 0.90593538% 0.905935380% Coachella Valley Rec and Park 1.09680918% 1.09680918% 1.096809180% CV Water District State WTR Proj 2.53626300% 2.53626300% 2.536263000% Coachella Valley Resource Conser 0.03251600% 0.03251600% 0.032516000% CVWD Imp Dist 1 DS 1.18350300% 1.18350300% 1.183503000% CVWD Storm Water Unit 3.21070500% 3.21070500% 3.210705000% ERAF Fund 13.48932128% 13.48998669% 13.489769202%
Total 100.000000% 100.000000% 100.0000%
Project Acres (c) 3.36 6.92 10.28
% of Total 32.68% 67.32% 100.00%
Total City General Fund 6.4620%
Total
Total Assessed Value from Table 2 $ 36,000,000
Base 1% Ad-Valorem Tax 1.00% $ 360,000
City Share 6.4620% $ 23,263
(a)
(b)
(c)
Table 4 - Polo Villas
Post-ERAF Share of the Basic Tax Calculation
Wtd. Avg. of
TRAs (a), (b)
Footnotes:

Source: Fiscal Year 2020-21 Share of the Basic Tax per Riverside County Auditor-Controller's Office, Property Tax Division.

The weighted average of TRAs was calculated by the distribution of acreage among the TRAs within the Project.

Shares of the basic tax that are received by the City for each TRA are highlighted in bold print.

Data per LandVision.
264 Click Here to Return to Agenda
Table 5 - Polo Villas
Property Taxes In-Lieu of VLF
FY 2021/22 In-Lieu VLF Allocation to City (a) $ 4,615,000 2020/21 City Assessed Value (b) 14,364,884,152
Total Project Assessed Value per Table 3 36,000,000
Less: Existing Assessed Value (c) (11,936,724)
Net (New) Assessed Value $ 24,063,276
AV Growth from Project 0.168%
Annual City Property Taxes In Lieu of VLF $ 7,731
Footnotes:
(a) Per City of La Quinta Fiscal Year 2021/22 Adopted Budget. (b) Per Riverside County Assessor's Office 2020/21 Assessment Roll. (c) Current assessed value based on APN's 777-500-001, 777-500-002, 777-500- 003, 777-500-004, 777-500-005, 777-500-006, 777-500-007, 777-500-008, 777- 500-009, 777-500-010, 777-500-011, 777-500-016, 777-500-017, 777-500-018, 777-500-019, 777-500-020, 777-500-021, 777-500-022.
265 Click Here to Return to Agenda
Table 6 - Polo Villas
Transient Occupancy Taxes
Plan Type No. of Units Annual Rent Annual Rent Per Unit 5-Bed Units 6 $ 2,635,163 $ 439,194
6-Bed Units 5 2,444,289 488,858
Total 11 $ 5,079,452 $ 461,768
Plan Type No. of Units Anticipated Annual Rent Annual Rent Per Unit To be Determined 7 $ 3,232,379 $ 461,768
Total 7 $ 3,232,379 $ 461,768
Total Anticipated Annual Rental Revenues $ 8,311,831 $ 461,768 Annual City Short-term Rental TOT (c) 10.00% $ 831,183 $ 46,177 Footnotes:
(c) Transient occupancy tax rate per City of La Quinta Adopted Budget. (a) Existing Residential Development plan type, number of units, and anticipated gross rental revenue per Client.

Existing Residential Development (a)
Proposed Residential Development (b)
(b) Proposed residential development for remaining 7 lots is anticipated to be the weighted average of the existing lots annual rent per unit.
266 Click Here to Return to Agenda
Table 7 - Polo Villas
Off-Site Sales Tax Revenue
Total
Estimated Spending per Week per Person (a) $ 2,100 $ 255,528 Estimated Annual Spending $ 13,287,456
Less: Vacancy (b) 20% (2,657,491)
Less: Estimated Annual spending on Lodging and Non Taxable Sales (c) 47% (6,245,104) Total Anticipated Annual taxable spending $ 4,384,860
Total Spending anticipated outside City (d) 50% $ (2,192,430) Total Taxable Spending within City of La Quinta $ 2,192,430 Annual Sales Taxes to City 1.00% $ 21,924
Annual Measure G Sales Taxes to City 1.00% $ 21,924
Total Annual Sales Tax to City 2.00% $ 43,849
Footnotes:
(d) Represents anticipated taxable spending outside the City. (b) Estiamted vacancy represents DPFG's estimate based on location relative to other establishments in the market Spending by Residents: Single Family Short Term Rental
(a) Estimate based on average anticipated spending of $300 per person per day ($2,100 per week) based on data from Visit California and the 2017 Report on the Economic Impact of Tourism in the Greater Palm Springs Area. Total estimated spending represents spending for all 140 anticipated guests per week at buildout. (c) Per data from Visit California and the 2017 Report on the Economic Impact of Tourism in the Greater Palm Springs Area average visitor spending.
267 Click Here to Return to Agenda
Table 8 - Polo Villas
Other Recurring Revenues
Revenue Category
City FY 2021/2022
Adopted Budget (a) Adjustment Adjusted Budget Multiplier Factor Project
Equivalent
Persons
Project
Revenues
Tax Revenues
Property Tax Revenue $ 2,605,000 100% $ 2,605,000 Case Study - - $ - No-Low City Property Tax 4,706,000 100% 4,706,000 Case Study - - - RPTTF Pass Through 1,616,000 100% 1,616,000 Per Capita & 50% Employee 34 122 4,161 State Sales Tax 10,000,000 100% 10,000,000 Case Study - - - Measure G Sales Tax 11,500,000 100% 11,500,000 Case Study - - - Document Transfer Tax 750,000 100% 750,000 Case Study - - - TOT - Hotels 5,000,000 100% 5,000,000 Case Study - - -
TOT - Short Term Vac. Rentals 3,000,000 100% 3,000,000 Case Study - - - TOT - Bed and Breakfast 90,000 100% 90,000 Case Study - - - TOT - Resort Fees 250,000 100% 250,000 Case Study - - - Franchise Taxes - Burrtec 785,000 100% 785,000 Per Capita & 50% Employee 17 122 2,021 SoCal Gas Franchise 140,000 100% 140,000 Per Capita & 50% Employee 3 122 360 Cable Television Franchise Fee 650,000 100% 650,000 Per Capita & 50% Employee 14 122 1,674 Communications Franchise Fees 250,000 100% 250,000 Per Capita & 50% Employee 5 122 644 Property Tax In Lieu of VLF 4,615,000 100% 4,615,000 Case Study - - - Total Tax Revenues $ 45,957,000 $ 45,957,000 $ 8,860
Licenses & Permits $ 2,252,000 $ 2,252,000 N/A - - $ -
Intergovernmental 8,251,100 8,251,100 Per Capita & 50% Employee 175 122 $ 21,245 Charges for Services 876,010 876,010 Per Capita & 50% Employee 19 122 $ 2,256 Fines, Forfeitures & Abatements 294,000 294,000 Per Capita & 50% Employee 6 122 $ 757 Use of Money & Property 545,000 545,000 Per Capita & 50% Employee 12 122 $ 1,403 Miscellaenous 629,100 629,100 Per Capita & 50% Employee 13 122 $ 1,620 Transfers In - - Per Capita & 50% Employee - 122 $ -
Total $ 58,804,210 $ 58,804,210 36,140$
Footnotes:
(a) Based on revenue allocations per the City of La Quinta Fiscal Year 2021-22 Adopted Budget pages 33-35. 268 Click Here to Return to Agenda
Table 9 - Polo Villas
Recurring Expenditures
Expenditure Category
City FY 2021/2022
Adopted Budget (a) Adjustment
Adjusted
Budget Multiplier Factor
Project
Equivalent
Persons Project Cost
City Council $ 302,200 50% $ 151,100 Per Capita & 50% Employee $ 3.20 122 $ 389 City Manager 1,076,000 50% 538,000 Per Capita & 50% Employee 11.38 122 1,385 Marketing & Community Relations 1,325,900 50% 662,950 Per Capita & 50% Employee 14.03 122 1,707 City Attorney 696,000 50% 348,000 Per Capita & 50% Employee 7.36 122 896 City Clerk 625,200 50% 312,600 Per Capita & 50% Employee 6.61 122 805 Human Resources 376,000 50% 188,000 Per Capita & 50% Employee 3.98 122 484 Police 17,855,100 100% 17,855,100 Per Capita & 50% Employee 377.82 122 45,973 Fire 7,660,800 100% 7,660,800 Per Capita & 50% Employee 162.11 122 19,725 Community Resources Adminsitration Totals 808,500 50% 404,250 Per Capita 10.76 122 1,310 Wellness Center Operations 597,900 50% 298,950 Per Capita 7.96 122 969 Recreation Programs & Special Events Table 908,300 100% 908,300 Per Capita & 50% Employee 19.22 122 2,339 Code Compliance/Animal Control Totals 1,506,320 50% 753,160 Per Capita & 50% Employee 15.94 122 1,939 Parks Maintenance 2,530,900 100% 2,530,900 Per Capita & 50% Employee 53.55 122 6,517 Public Buildings 1,321,200 100% 1,321,200 Per Capita & 50% Employee 27.96 122 3,402 Public Works Administration 739,900 50% 369,950 Per Capita & 50% Employee 7.83 122 953 Public Works Development Services 431,200 50% 215,600 Per Capita & 50% Employee 4.56 122 555 Streets 496,600 100% 496,600 Per Capita & 50% Employee 10.51 122 1,279 Engineering Services 761,800 100% 761,800 Per Capita & 50% Employee 16.12 122 1,961 Design & Development Adminsitration Totals 656,200 100% 656,200 Per Capita & 50% Employee 13.89 122 1,690 Planning 678,600 100% 678,600 Per Capita & 50% Employee 14.36 122 1,747 Building 919,800 100% 919,800 Per Capita & 50% Employee 19.46 122 2,368 The Hub 986,000 100% 986,000 Per Capita & 50% Employee 20.86 122 2,539 Finance 1,444,100 100% 1,444,100 Per Capita & 50% Employee 30.56 122 3,718 Central Services 10,458,206 100% 10,458,206 Per Capita & 50% Employee 221.30 122 26,928 Total $ 55,162,726 $ 50,920,166 131,577$
Footnotes:
(a) Based on expenditure allocations by department per the City of La Quinta Fiscal Year 2021-22 Adopted Budget page 24. 269 Click Here to Return to Agenda
Table 10 - Polo Villa
Unit of Measure Fee Quantity Total Fees
City of La Quinta
Park Improvements (a) Per Unit $ 2,106 7 $ 14,742
Community/Culture (a) Per Unit 956 7 6,692
Library (a) Per Unit 397 7 2,779
Civic Center (a) Per Unit 1,230 7 8,610
Maintenance Facilities (a) Per Unit 313 7 2,191
Fire (a) Per Unit 369 7 2,583
Transportation (a) Per Unit 4,009 7 28,063
CVAG TUMF (b) Per Meter 2,358 7 16,506
Multi Species Plan Fees (c) Per Meter 1,400 7 9,800
Total Estimated Development Impact Fees: $ 91,966
Per Unit: $ 13,138
Footnotes:
(a)
(b)
(c)
Represents the currently collected Coachella Valley Association of Governments ("CVAG") TUMF rate per unit, effective January 1, 2022. Typically the TUMF rate is adjusted every July, however, this year the increase was in effect in January and the next increase is anticipated in July 2022.

Represents the currently collected Multi Species Plan Fees "MSHCP") by the Coachella Valley Conservation Commission effective July 1, 2021. The MSHCP fee increases annually with the next increase anticipated for July 2022.

Development Impact Fee Budget
Represents the impact fees applicable to the proposed project per the City of La Quinta ("City") Development Impact Fee Study dated September 23, 2019 effective for permit applications received on or after July 1, 2020.

Estimate of Total Project Development Impact Fees
270 Click Here to Return to Agenda
Planning Commission Meeting - January 22, 2022
Public Hearing Item No. 2
Development Agreement DA2021-0003 – Polo Villas
PLANNING COMMISSION MINUTES Page 1 of 3 January 11, 2022 PUBLIC HEARING ITEM NO. 2

2. ADOPT A RESOLUTION RECOMMENDING APPROVAL OF A
DEVELOPMENT AGREEMENT FOR POLO VILLAS. CEQA: THE

PROJECT IS CONSISTENT WITH PREVIOUSLY ADOPTED
ENVIRONMENTAL ASSESSMENTS 2005-537 AND 2010-608.

LOCATION: WEST OF MADISON STREET BETWEEN AVENUES 50
AND 52
DECLARATIONS REGARDING COMMISSION PUBLIC CONTACT – None.

Planning Manager Flores presented the staff report which is on file in the Design and Development Department.

Staff answered questions regarding the principal uses of the current and proposed homes; current guidelines for approving Development Agreements (DA) that allow for exemptions to the Municipal Code that prohibits new ShortTerm Vacation Rental (STVR) permit issuance and DA provisions for such issuance; Code compliance and violation history of the development’s existing STVRs; noticing procedures and efficacy for this Public Hearing; public feedback or comment received to date; number of permanent or long-term residents within the noticing area; the transferability of STVR permits if DA is approved; the Polo Estates policies on STVR permits; current and prospective ownership of the units within the development.

CHAIRPERSON NIETO DECLARED THE PUBLIC HEARING OPEN AT 6:19 P.M.

PUBLIC SPEAKER: Alena Callimanis, La Quinta – opposed the project due to language of the Public Hearing Notice; DA’s inconsistency with the City’s current code which restricts issuance of STVR permits.

PUBLIC SPEAKER: Applicant, Fiona Quinn, Vice President of Legal Affairs for Avantstay - answered questions regarding Avantstay’s primary interest in the property for STVR use; Code compliance and violation history of the properties existing units and the Applicant’s existing STVR properties outside of the development; primary use of residential properties surrounding the development; internal and third party on-site security and property rental management; the ability to rent the units as long-term rentals. Co-Applicant Sean Breuner, CEO of Avantstay, provided a brief overview of the current development’s primary uses; the positive fiscal impact this community will have on the City due to projected Transient Occupancy Tax receipts; the company’s history of successful management of STVR properties with minimal code violations; the intent of the company to provide a high-end, luxury experience with value added services to include private chef services and fully stocked amenities offered at a premium price; the added on-site 24 security; ATTACHMENT 3
271 Click Here to Return to Agenda
Planning Commission Meeting - January 22, 2022
Public Hearing Item No. 2
Development Agreement DA2021-0003 – Polo Villas
PLANNING COMMISSION MINUTES Page 2 of 3 January 11, 2022 PUBLIC HEARING ITEM NO. 2
the consistency with the existing property uses and proximity to the site of the festivals; the property’s ability to insulate STVR issues from outside residences due to the layout of the development as well as internally controlled trash and noise levels; traffic and festival access agreements with Golden Voice to minimize STVR tenant impact on public access in the festival areas.

CHAIRPERSON NIETO DECLARED THE PUBLIC HEARING CLOSED AT 6:31 P.M.

The Commission discussion followed regarding noticing language and procedures; consistency with existing units and inconsistency with the City’s Municipal Code as it relates to STVR permits; history of Code compliance and violations within the existing community and of the prospective owners; possibility of approval setting a precedence for other developers; DA negating the work of the STVR Ad-Hoc Committee and City Council to limit STVR permits; standard 50-year Development Agreement terms; the importance of Transient Occupancy Tax and the benefits to the City; appropriateness of STVR for this particular area and for clusters of STVR limiting exposure to long-term residences; the Commission’s ability to evaluate Agreements that include STVR provisions on a case-by-case basis; DA provisions requiring specific compliance measures be met; the intent of the original development of the Polo Villas and other possible uses given its proximity to the festivals site.

Due to technical difficulties, Commissioner Proctor left the meeting during his comments at 6:44 P.M. and returned at 6:45 P.M. for the duration of the meeting. This did not result in the loss of a quorum during this time, and he was allowed the floor to complete his comments prior to a motion being made.

MOTION – A motion was made and seconded by Chairperson
Nieto/Commissioner Currie to adopt Planning Commission Resolution 2022- 004 recommending City Council approval of Development Agreement (DA2021-0003) and find the project consistent with the previously adopted Mitigated Negative Declarations EA2005-537 and EA2010-608, as recommended:

A RESOLUTION OF THE PLANNING COMMISSION OF THE

CITY OF LA QUINTA, CALIFORNIA, RECOMMENDING

APPROVAL TO THE CITY COUNCIL OF A DEVELOPMENT

AGREEMENT BY AND BETWEEN THE CITY OF LA QUINTA

AND GTGF, LLC RELATING TO POLO VILLAS RESIDENCES

AND A FINDING THAT THE PROJECT IS CONSISTENT WITH
ENVIRONMENTAL ASSESSMENTS 2005-537 AND 2010-608
CASE NUMBERS: DEVELOPMENT AGREEMENT 2021-0003
APPLICANT: GTGF, LLC
272 Click Here to Return to Agenda
Planning Commission Meeting - January 22, 2022
Public Hearing Item No. 2
Development Agreement DA2021-0003 – Polo Villas
PLANNING COMMISSION MINUTES Page 3 of 3 January 11, 2022 PUBLIC HEARING ITEM NO. 2
AYES: Commissioners Currie, Hassett, McCune, and Chairperson Nieto NOES:

Commissioners Caldwell, Proctor, and Tyerman ABSENT: None. ABSTAIN:

None. Motion passed by majority vote.
273 Click Here to Return to Agenda
274 Click Here to Return to Agenda
FINANCIAL ADVISORY COMMISSION MINUTES Page 1 of 4 NOVEMBER 10, 2021

REGULAR QUARTERLY MEETING

FINANCIAL ADVISORY COMMISSION

MINUTES
WEDNESDAY, NOVEMBER 10, 2021

CALL TO ORDER
A regular quarterly meeting of the Financial Advisory Commission (Commission) was called to order at 4:00 p.m. by Chairperson Batavick.

This meeting provided teleconferencing accessibility pursuant to Executive Orders N-60-20 and N-08-21 executed by the Governor of California, and subsequently Assembly Bill 361 (AB 361, 2021), enacted 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: Commissioners Anderson, Campbell, Dorsey, Mast, Mills Way, and Chairperson Batavick
ABSENT: None
STAFF PRESENT: Interim Finance Director Martinez, Financial Services Analyst Hallick, and Management Assistant Delgado.

PLEDGE OF ALLEGIANCE
Commissioner Anderson led the audience in the Pledge of Allegiance.

PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA None
CONFIRMATION OF AGENDA Confirmed

ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS

1. WELCOME COMMISSIONER MAST
The Commission welcomed Commissioner Mast, and all Commissioners shared a brief introduction of their experiences and qualifications.

CONSENT CALENDAR ITEMS

1. APPROVE MEETING MINUTES DATED AUGUST 4, 2021
REPORTS AND INFORMATIONAL ITEM NO. 30 275 Click Here to Return to Agenda FINANCIAL ADVISORY COMMISSION MINUTES Page 2 of 4 NOVEMBER 10, 2021

REGULAR QUARTERLY MEETING

2. APPROVE SPECIAL MEETING MINUTES DATED OCTOBER 6,
2021

3. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT
DATED JUNE 30, 2021

4. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT
DATED JULY 31, 2021
Commissioner Mills
3 of the August 4,
Motion A motion was made and seconded by Commissioners Way/Dorsey to approve the Consent Calendar as amended, incorporating the language revision as noted above by Commissioner Mills on the August 4, 2021 minutes.

Motion passed: ayes 7, noes 0.

BUSINESS SESSION None
STUDY SESSION None

DEPARTMENTAL REPORTS
All reports are on file in the finance department.

1. SECOND QUARTER 2021 (APRIL-JUNE) SALES TAX UPDATE FOR

THE CITY OF LA QUINTA

2. INVESTMENT PORTFOLIO REVIEW
Financial Services Analyst Hallick provided an overview of relevant sections of the California Government C
related to
Chair Batavick requested a verbal update on Commissioner tems numbered 1 through 7 below:

1. Measure G Annual Report (Report)
Financial Services Analyst Hallick said that the Report subcommittee was provided revenues information for review, a draft Report and expenditures would be sent to the subcommittee the week of November 276 Click Here to Return to Agenda
FINANCIAL ADVISORY COMMISSION MINUTES Page 3 of 4 NOVEMBER 10, 2021

REGULAR QUARTERLY MEETING
15, and a meeting will be scheduled the week of November 30 to review all information, obtain input, and make any additional requested edits.

She said a special meeting for the Commission would be needed in December e
it is tabled for Council deration.

2. Fiscal End of Year 2020/21 Audit (Audit)
Interim Finance Director Martinez said that the Audit began on November 8 and is currently ongoing.

3. 10-Year Projections Subcommittee
Interim Finance Director Martinez said staff will send available meeting dates to the subcommittee to discuss ideas and recommendations on reformatting the 10-year projections report. Financial Services Analyst Hallick Community Workshop is scheduled for
January 29, 2022.

4. Reserve Study (Study)
Staff said the Study review is anticipated to take place in Spring of 2022.

5. .

Interim Finance Director Martinez said the recruitment is still pending and possibly by December a selection will be made.

6. Point Happy Land Acquisition
Interim Finance Director Martinez said that the available funds in the Land Acquisition account for the purchase was approved in the adopted 2021/22 budget and that additional information on the purchase and use of this property would need to be obtained
Office.

7. High Inflation and Supply
Chain Issues
Chair Batavick inquired if staff has looked into a strategy for any impacts high inflation and supply chain issues,
which may cause a rise in operating expenses. Interim Finance Director Martinez said that will be a priority to review during the start of the Commissioner Mills inquired if the Reserve Study Report had been distributed amongst the new Commissioners. Staff said the report can be found in the Commissions meeting archive documents found on th
277 Click Here to Return to Agenda
FINANCIAL ADVISORY COMMISSION MINUTES Page 4 of 4 NOVEMBER 10, 2021

REGULAR QUARTERLY MEETING
The Commission discussed the process for adding items on the agenda for public meetings; and inquired if the City Clerk could make a brief presentation Office
will be presenting an overview on the recently updated and distributed Handbook at a future meeting, and that Section 2.9 under Rules of Procedure (Resolution No. 2021-034) included in the Commissioner Handbook as Attachment 2 provides guidance on the process for requesting the addition of items to the agenda for a future meeting.

Commissioner Way asked the Commission to reconsider the start time for Commission meetings.

The Commission inquired about in person meetings for the Commission. Staff said they will provide the update to the Commission as soon as it is available.

The Commission and staff discussed when fiscal year 2022/23 budget review would commence. Staff said a timeline with tentative dates would be added

ADJOURNMENT
There being no further business, it was moved and seconded by Commissioners Mills/Dorsey to adjourn this meeting at 5:05 p.m. Motion passed: ayes 7, noes 0.

Respectfully submitted,
Jessica Delgado, Management Assistant
City of La Quinta, California
278 Click Here to Return to Agenda
FINANCIAL ADVISORY COMMISSION MINUTES Page 1 of 4 DECEMBER 14, 2021

SPECIAL MEETING

FINANCIAL ADVISORY COMMISSION

SPECIAL MEETING

MINUTES
TUESDAY, DECEMBER 14, 2021

CALL TO ORDER
A special meeting of the La Quinta Financial Advisory Commission (Commission) was called to order at 4:00 p.m. by Chair Batavick.

This meeting was held by teleconference pursuant to Executive Orders N-60- 20 and N-08-21 executed by the Governor of California, and subsequently Assembly Bill 361 (AB 361, 2021), enacted 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 public, the Financial Advisory Commission, the City Manager, City Attorney, City Staff, and City Consultants may participate in this special meeting by teleconference.

PRESENT: Commissioners Anderson, Campbell, Dorsey, Mast, Mills, Way, and Chair Batavick
ABSENT: None
STAFF PRESENT: Interim Finance Director Martinez, Financial Services Analyst Hallick, City Clerk Radeva, Management Assistant Delgado, Management Analyst Mignogna, and Public Works Director/City Engineer McKinney

PLEDGE OF ALLEGIANCE
Commissioner Anderson led the audience in the Pledge of Allegiance.

PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA None
CONFIRMATION OF AGENDA Confirmed

ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS

1. City Clerk Radeva provided a brief overview of Section 2.9 - Requesting the Addition
REPORTS AND INFORMATIONAL ITEM NO. 31
279 Click Here to Return to Agenda
FINANCIAL ADVISORY COMMISSION MINUTES Page 2 of 4 DECEMBER 14, 2021

SPECIAL MEETING
of Items to a Future Agenda, under Rules of Procedure (Resolution No. 2021- 034) included in the Attachment 2 provided to all
City established Boards and Commissions. Ms. Radeva also provided an overview on general updates on departmental structure within the City; provisions of the Ralph M. Brown Act (Government Code Section 54950 et seq.); process for general inquiries not under the scope and purview of the Commission; examples of serial meetings; and requirements necessary for inperson commission meetings and provided an update on this process.

The Commission and staff congratulated Claudia Martinez on her promotion to Finance Director for the City.

CONSENT CALENDAR ITEMS

1. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED AUGUST 30, 2021

2. RECEIVE AND FILE FIRST QUARTER FISCAL YEAR 2021/22
TREASURY REPORTS FOR JULY, AUGUST, SEPTEMBER 2021
Motion A motion was made and seconded by Commissioners Anderson/Mills to approve the Consent Calendar. Motion passed unanimously.

BUSINESS SESSION

1. APPROVE RECOMMENDATION OF HIGHWAY BRIDGE PROGRAM

ADVANCED CONSTRUCTION FUNDING FOR THE DUNE PALMS
ROAD BRIDGE PROJECT NO. 2011-05 (Project)
Management Analyst Mignogna presented the staff report, which is on file in the Finance Department.

The Commission, staff, and City Consultant/Project Manager Nickerson with NAI Consulting, inc. discussed how expenses are disclosed and reflected for the Project ; timeline process for Project
reimbursement; funding allocation options; other agency funding shares; and Measure G and Unassigned reserve projections. The Commission requested Comprehensive Financial Report.

Motion A motion was made and seconded by Commissioners Mills/Dorsey to approve recommendation of using a combination of both unassigned and Measure G funds for Highway Bridge Program Advanced Construction Funding for the Dune Palms Road Bridge Project No. 2011-05. Motion passed unanimously.
280 Click Here to Return to Agenda
FINANCIAL ADVISORY COMMISSION MINUTES Page 3 of 4 DECEMBER 14, 2021

SPECIAL MEETING

2. RECEIVE AND FILE FISCAL YEAR 2020/21 MEASURE G SALES TAX

COMPLIANCE REPORT
Financial Services Analyst Hallick presented the staff report, which is on file in the Finance Department.

Ms. Hallick thanked the subcommittee for their dedication and hard work in auditing and formulating the fiscal year 2020/21 annual Measure G compliance report (Report).

Commissioner Mills suggested some minor changes to the Report such as changing the word recap to summary on page one, in last sentence in first paragraph under Overview; adding 23% in front of Measure G funds in second bullet point under Report Highlights on page one; replacing the word stronger with greater in first sentence under Fiscal Year 2020/21 Revenues on page one; and replacing the word concludes to confirms in last paragraph under Measure G Background and Compliance Summary on last page of Report.

Discussion followed that the Report is published on website and possibly in the La Quinta Gem newspaper, a local publication in La Quinta.

Motion A motion was made and seconded by Commissioners
Anderson/Batavick to receive and file the fiscal year 2020/21 annual Measure G compliance report as amended by Commissioner Mills. Motion passed unanimously.

3. APPOINT TWO FINANCIAL ADVISORY COMMISSIONERS TO
SERVE ON THE FISCAL YEAR 2022/23 GENERAL FUND

OPERATING BUDGET SUBCOMMITTEE
Interim Finance Director Martinez presented the staff report, which is on file in the Finance Department.

Commissioner Anderson, Dorsey, and Mast expressed their willingness to serve on the fiscal year 2022/23 general fund operating budget subcommittee.

Motion A motion was made and seconded by Commissioners Batavick/Mills to appoint Commissioners Anderson, Dorsey, and Mast to serve on the fiscal year 2022/23 general fund operating budget subcommittee. Motion passed unanimously.

STUDY SESSION None
281 Click Here to Return to Agenda
FINANCIAL ADVISORY COMMISSION MINUTES Page 4 of 4 DECEMBER 14, 2021

SPECIAL MEETING

DEPARTMENTAL REPORTS
All reports are on file in the finance department.

1. COMMUNITY WORKSHOP IN JANUARY
Chair Batavick shared his experience from past community workshops and encouraged other commissioners to attend.

2. FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES
Chair Batavick inquired about the review of capital improvement budget and if the this year by the
Commission. Staff said the capital improvement budget is included in the fiscal year 2022/23 operating budget subcommittee review and that the unfunded pension liability reviewed last year would be reviewed again in fiscal year 2022/23.

CO
Chair Batavick
December 7, 2021, which Commissioner Anderson also attended.

Chair Batavick said that he would recommend to the group who reviews the the future to consider steps to fully fund the
selected to review the fiscal year 2022/23 operating budget to pay close attention to the high inflation currently taking place. unfunded pension liability.

ADJOURNMENT
There being no further business, it was moved by Chair Batavick to adjourn this meeting at 5:45 p.m. Motion passed unanimously.

Respectfully submitted,
Jessica Delgado, Management Assistant
City of La Quinta, California
282 Click Here to Return to Agenda