Agenda packet — La Quinta City Council, June 20, 2023 (part 4 of 6)

Exhibit A
Scope of Services

1. Services to be Provided:

Plan Review
Consultant, upon request of the City, shall review plans submitted for residential and/or commercial developments, infrastructure improvements and special projects. The plans shall be reviewed for conformance with City and other applicable (County, State and Federal) ordinances and Codes with a strict attention to details. Plan Review services may include, but are not limited to the following:
 Building plans including architectural, structural, electrical, mechanical, plumbing, energy, and accessibility plans
 Grading plans including precise grading plans
 Structural calculations and reports
 Energy reports and forms
 Cal Green plans and reports including commissioning reports  Soils reports including geotechnical updates
 Building construction product testing reports
The tasks of the plan examiner include:
 To check for conformance to:
o California building standards codes
o City standards
o Other agency requirements such as Riverside County environmental health department and Coachella Valley Water District (CVWD)  To check general mathematics and design criteria
 Consultant shall input project data related to plan review information into the permitting software utilized by the City
 In writing, call for redesign of any portion of plans that:
o Does not conform to code requirements o Is not consistent with calculations
o Will be potentially unsafe to residents and the public Building Inspection
Consultant upon request of the City shall provide building inspection services of special projects during the course of the construction to enforce compliance with the conditions of approval, provisions of the City’s building codes and the code requirements set forth on the approved plans for which a permit was issued. Inspection services may include, but are not limited to the following:
• In the performance of such duties, Consultant shall observe each project at the completion of the various stages of construction for compliance with the appropriate City, State and Federal codes
• Shall document all field conversations connected to the project 375 Click Here to Return to Agenda
Exhibit A

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• Produce corrective measures of field conditions to conform to codes and approved plans
• Attend meetings connected with the inspection of the project • Consultant shall input project data related to inspection results, permit fees and construction information into the permitting software utilized by the City Orientation
Consultant shall meet with City staff to:
a) Acquaint themselves with the City development plan review and or inspection processes
b) Review consultant’s plan review boiler plate correction documents c) Acquire understanding of key issues that need attention during the plan check process
d) Establish ongoing operating procedures between City staff and the Consultant for the on-call services
On-Call Services
a) Report to City Hall to pick up project documents for review when notified by the City’s permitting software
b) Report to City Hall to receive inspection assignments c) Meet with City staff, upon request by the City, to be briefed on unique aspects of the proposed project(s)
d) Attend meetings, upon request by the City, connected to plan review and / or field inspection activities
e) Consultant, upon request by the City, shall perform electronic plan review on the platform as specified by the City

2. Performance Standards:

Plan Review Time Frames Schedule of Performance (City Mandated Maximum Time Frames):
1) One Day = 1 Working Day
2) One Week = 5 Working Days
3) Two Week = 10 Working Days
4) Three Week = 15 Working Days
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Exhibit B

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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 Two Hundred Ninety Thousand Dollars ($290,000.00) per year for the life of the Agreement, encompassing the Initial and any Extended Terms (the “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.

Initial Term:
“Not to Exceed” Year 1: $290,000.00
“Not to Exceed” Year 2: $290,000.00
“Not to Exceed” Year 3: $290,000.00
Possible Extended Term:
“Not to Exceed” Year 4: $290,000.00
“Not to Exceed” Year 5: $290,000.00
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Exhibit C

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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.
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Exhibit D

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Exhibit D
Special Requirements
NONE
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Exhibit E

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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)
Auto Liability Additional Insured
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 Cyber Liability
$1,000,000 (per occurrence)
$2,000,000 (general aggregate)
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. 382 Click Here to Return to Agenda
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Contracting Party shall carry automobile liability insurance of $1,000,000 per accident against all claims for injuries against persons or damages to property arising out of the use of any automobile by Contracting Party, its officers, any person directly or indirectly employed by Contracting Party, any subcontractor or agent, or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Contracting Party’s performance under this Agreement. If Contracting Party or Contracting Party’s employees will use personal autos in any way on this project, Contracting Party shall provide evidence of personal auto liability coverage for each such person. The term “automobile” includes, but is not limited to, a land motor vehicle, trailer or semi-trailer designed for travel on public roads. The automobile insurance policy shall contain a severability of interest clause providing that coverage shall be primary for losses arising out of Contracting Party’s performance hereunder and neither City nor its insurers shall be required to contribute to such loss.

Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Contracting Party and “Covered Professional Services” as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer’s duty to defend. The policy retroactive date shall be on or before the effective date of this agreement.

Contracting Party shall carry Workers’ Compensation Insurance in accordance with State Worker’s Compensation laws with employer’s liability limits no less than $1,000,000 per accident or disease.

Contracting Party shall procure and maintain Cyber Liability insurance with limits of $1,000,000 per occurrence/loss which shall include the following coverage:
a. Liability arising from the theft, dissemination and/or use of confidential or personally identifiable information; including credit monitoring and regulatory fines arising from such theft, dissemination or use of the confidential information.
b. Network security liability arising from the unauthorized use of, access to, or tampering with computer systems.
c. Liability arising from the failure of technology products (software) required under the contract for Consultant to properly perform the services intended.
d. Electronic Media Liability arising from personal injury, plagiarism or misappropriation of ideas, domain name infringement or improper deeplinking or framing, and infringement or violation of intellectual property rights.
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e. Liability arising from the failure to render professional services.

If coverage is maintained on a claims-made basis, Contracting Party shall maintain such coverage for an additional period of three (3) years following termination of the contract.

Contracting Party shall provide written notice to City within ten (10) working days if: (1) any of the required insurance policies is terminated; (2) the limits of any of the required polices are reduced; or (3) the deductible or self-insured retention is increased.

In the event any of said policies of insurance are cancelled, Contracting Party shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Exhibit to the Contract Officer. The procuring of such insurance or the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Contracting Party’s obligation to indemnify City, its officers, employees, contractors, subcontractors, or agents.

E.2 Remedies. In addition to any other remedies City may have if Contracting Party fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option:
a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. b. Order Contracting Party to stop work under this Agreement and/or withhold any payment(s) which become due to Contracting Party hereunder until Contracting Party demonstrates compliance with the requirements hereof. c. Terminate this Agreement.

Exercise any of the above remedies, however, is an alternative to any other remedies City may have. The above remedies are not the exclusive remedies for Contracting Party’s failure to maintain or secure appropriate policies or endorsements.

Nothing herein contained shall be construed as limiting in any way the extent to which Contracting Party may be held responsible for payments of damages to persons or property resulting from Contracting Party’s or its subcontractors’ performance of work under this Agreement.

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 384 Click Here to Return to Agenda
Exhibit E

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right of subrogation prior to a loss. Contracting Party agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise.

3. All insurance coverage and limits provided by Contracting Party and available or applicable to this Agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to City or its operations limits the application of such insurance coverage.

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

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

6. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Contracting Party shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City’s protection without City’s prior written consent.

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

8. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Contracting Party or any subcontractor, is intended to apply first and on a primary, non-contributing basis in relation to any other insurance or self-insurance available to City.

9. Contracting Party agrees to ensure that subcontractors, and any other party involved with the project that is brought onto or involved in the project by Contracting Party, provide the same minimum insurance coverage required of Contracting Party.

Contracting Party agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contracting Party agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review.

10. Contracting Party agrees not to self-insure or to use any self-insured retentions or deductibles on any portion of the insurance required herein (with the 385 Click Here to Return to Agenda
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exception of professional liability coverage, if required) and further agrees that it will not allow any contractor, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self-insure its obligations to City. If Contracting Party’s existing coverage includes a deductible or self-insured retention, the deductible or self-insured retention must be declared to the City. At that time the City shall review options with the Contracting Party, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions.

11. The City reserves the right at any time during the term of this Agreement to change the amounts and types of insurance required by giving the Contracting Party ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Contracting Party, the City will negotiate additional compensation proportional to the increased benefit to City.

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

13. Contracting Party acknowledges and agrees that any actual or alleged failure on the part of City to inform Contracting Party of non-compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard.

14. Contracting Party will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect.

15. Contracting Party shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Contracting Party’s insurance agent to this effect is acceptable. A certificate of insurance and an additional insured endorsement is required in these specifications applicable to the renewing or new coverage must be provided to City within five (5) days of the expiration of coverages.

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

17. Requirements of specific coverage features, or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a 386 Click Here to Return to Agenda
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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. 387 Click Here to Return to Agenda
Exhibit F

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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 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.
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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 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. 389 Click Here to Return to Agenda

AGREEMENT FOR CONTRACT SERVICES
THIS AGREEMENT FOR CONTRACT SERVICES (the “Agreement”) is made and entered into by and between the CITY OF LA QUINTA, (“City”), a California municipal corporation, and INTERWEST CONSULTING GROUP, a Colorado Corporation, with a place of business at 9320 Chesapeake Dr, Ste 208, San Diego, CA 92123 (“Contracting Party”). The parties hereto agree as follows:

1. SERVICES OF CONTRACTING PARTY.

1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Contracting Party shall provide those services related to On-Call Building Plan Review and Inspection Services as specified in the “Scope of Services” attached hereto as “Exhibit A” and incorporated herein by this reference (the “Services”).

Contracting Party represents and warrants that Contracting Party is a provider of firstclass work and/or services and Contracting Party is experienced in performing the Services contemplated herein and, in light of such status and experience, Contracting Party covenants that it shall follow industry standards in performing the Services required hereunder, and that all materials, if any, will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase “industry standards” shall mean those standards of practice recognized by one or more first-class firms performing similar services under similar circumstances.

1.2 Compliance with Law. All Services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations, and laws of the City and any Federal, State, or local governmental agency of competent jurisdiction.

1.3 Wage and Hour Compliance, Contracting Party shall comply with applicable Federal, State, and local wage and hour laws.

1.4 Licenses, Permits, Fees and Assessments. Except as otherwise specified herein, Contracting Party shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of the Services required by this Agreement, including a City of La Quinta business license. Contracting Party and its employees, agents, and subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required for the performance of the Services required by this Agreement.

Contracting Party shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the performance of the Services required by this Agreement, and shall indemnify, defend (with counsel selected by City), and hold City, its elected officials, officers, employees, and agents, free and harmless against any such fees, assessments, taxes, penalties, or interest levied, assessed, or imposed against City hereunder. Contracting Party shall be responsible for all subcontractors’ compliance with this Section.

ATTACHMENT 4
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1.5 Familiarity with Work. By executing this Agreement, Contracting Party warrants that (a) it has thoroughly investigated and considered the Services to be performed, (b) it has investigated the site where the Services are to be performed, if any, and fully acquainted itself with the conditions there existing, (c) it has carefully considered how the Services should be performed, and (d) it fully understands the facilities, difficulties, and restrictions attending performance of the Services under this Agreement.

Should Contracting Party discover any latent or unknown conditions materially differing from those inherent in the Services or as represented by City, Contracting Party shall immediately inform City of such fact and shall not proceed except at Contracting Party’s risk until written instructions are received from the Contract Officer, or assigned designee (as defined in Section 4.2 hereof).

1.6 Standard of Care. Contracting Party acknowledges and understands that the Services contracted for under this Agreement require specialized skills and abilities and that, consistent with this understanding, Contracting Party’s work will be held to an industry standard of quality and workmanship. Consistent with Section 1.5 hereinabove, Contracting Party represents to City that it holds the necessary skills and abilities to satisfy the industry standard of quality as set forth in this Agreement. Contracting Party shall adopt reasonable methods during the life of this Agreement to furnish continuous protection to the Services performed by Contracting Party, and the equipment, materials, papers, and other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the Services by City, except such losses or damages as may be caused by City’s own negligence.

The performance of Services by Contracting Party shall not relieve Contracting Party from any obligation to correct any incomplete, inaccurate, or defective work at no further cost to City, when such inaccuracies are due to the negligence of Contracting Party.

1.7 Additional Services. In accordance with the terms and conditions of this Agreement, Contracting Party shall perform services in addition to those specified in the Scope of Services (“Additional Services”) only when directed to do so by the Contract Officer, or assigned designee, provided that Contracting Party shall not be required to perform any Additional Services without compensation. Contracting Party shall not perform any Additional Services until receiving prior written authorization (in the form of a written change order if Contracting Party is a contractor performing the Services) from the Contract Officer, or assigned designee, incorporating therein any adjustment in (i) the Contract Sum, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of Contracting Party. It is expressly understood by Contracting Party that the provisions of this Section shall not apply to the Services specifically set forth in the Scope of Services or reasonably contemplated therein. It is specifically understood and agreed that oral requests and/or approvals of Additional Services shall be barred and are unenforceable. Failure of Contracting Party to secure the Contract Officer’s, or assigned designee’s written authorization for Additional Services shall constitute a waiver of any and all right to adjustment of the Contract Sum or time to perform this Agreement, whether by way of compensation, restitution, quantum meruit, or the like, for Additional Services provided without the appropriate authorization from the Contract Officer, or assigned designee. 391 Click Here to Return to Agenda
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Compensation for properly authorized Additional Services shall be made in accordance with Section 2.3 of this Agreement.

1.8 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in “Exhibit D” (the “Special Requirements”), which is incorporated herein by this reference and expressly made a part hereof. In the event of a conflict between the provisions of the Special Requirements and any other provisions of this Agreement, the provisions of the Special Requirements shall govern.

2. COMPENSATION.

2.1 Contract Sum. For the Services rendered pursuant to this Agreement, Contracting Party shall be compensated in accordance with “Exhibit B” (the “Schedule of Compensation”) in a total amount not to exceed Two Hundred Ninety Thousand Dollars ($290,000.00) per year for the life of the Agreement, encompassing the Initial and any Extended Terms (the “Contract Sum”), except as provided in Section 1.7. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment in accordance with the percentage of completion of the Services, payment for time and materials based upon Contracting Party’s rate schedule, but not exceeding the Contract Sum, or such other reasonable methods as may be specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Contracting Party at all project meetings reasonably deemed necessary by City; Contracting Party shall not be entitled to any additional compensation for attending said meetings. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses when and if specified in the Schedule of Compensation.

Regardless of the method of compensation set forth in the Schedule of Compensation, Contracting Party’s overall compensation shall not exceed the Contract Sum, except as provided in Section 1.7 of this Agreement.

2.2 Method of Billing & Payment. Any month in which Contracting Party wishes to receive payment, Contracting Party shall submit to City no later than the tenth (10th) working day of such month, in the form approved by City’s Finance Director, an invoice for Services rendered prior to the date of the invoice. Such invoice shall (1) describe in detail the Services provided, including time and materials, and (2) specify each staff member who has provided Services and the number of hours assigned to each such staff member. Such invoice shall contain a certification by a principal member of Contracting Party specifying that the payment requested is for Services performed in accordance with the terms of this Agreement. Upon approval in writing by the Contract Officer, or assigned designee, and subject to retention pursuant to Section 8.3, City will pay Contracting Party for all items stated thereon which are approved by City pursuant to this Agreement no later than thirty (30) days after invoices are received by the City’s Finance Department.

2.3 Compensation for Additional Services. Additional Services approved in advance by the Contract Officer, or assigned designee, pursuant to Section 1.7 of this 392 Click Here to Return to Agenda
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Agreement shall be paid for in an amount agreed to in writing by both City and Contracting Party in advance of the Additional Services being rendered by Contracting Party. Any compensation for Additional Services amounting to five percent (5%) or less of the Contract Sum may be approved by the Contract Officer, or assigned designee. Any greater amount of compensation for Additional Services must be approved by the La Quinta City Council, the City Manager, or Department Director, depending upon City laws, regulations, rules and procedures concerning public contracting. Under no circumstances shall Contracting Party receive compensation for any Additional Services unless prior written approval for the Additional Services is obtained from the Contract Officer, or assigned designee, pursuant to Section 1.7 of this Agreement.

3. PERFORMANCE SCHEDULE.

3.1 Time of Essence. Time is of the essence in the performance of this Agreement. If the Services not completed in accordance with the Schedule of Performance, as set forth in Section 3.2 and “Exhibit C”, it is understood that the City will suffer damage.

3.2 Schedule of Performance. All Services rendered pursuant to this Agreement shall be performed diligently and within the time period established in “Exhibit C” (the “Schedule of Performance”). Extensions to the time period specified in the Schedule of Performance may be approved in writing by the Contract Officer, or assigned designee.

3.3 Force Majeure. The time period specified in the Schedule of Performance for performance of the Services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Contracting Party, including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than City, and unusually severe weather, if Contracting Party shall within ten (10) days of the commencement of such delay notify the Contract Officer, or assigned designee, in writing of the causes of the delay. The Contract Officer, or assigned designee, shall ascertain the facts and the extent of delay, and extend the time for performing the Services for the period of the forced delay when and if in the Contract Officer’s judgment such delay is justified, and the Contract Officer’s determination, or assigned designee, shall be final and conclusive upon the parties to this Agreement. Extensions to time period in the Schedule of Performance which are determined by the Contract Officer, or assigned designee, to be justified pursuant to this Section shall not entitle the Contracting Party to additional compensation in excess of the Contract Sum.

3.4 Term. Unless earlier terminated in accordance with the provisions in Article 8.0 of this Agreement, the term of this agreement shall commence on July 1, 2023, and terminate on June 30, 2026 (“Initial Term”). This Agreement may be extended for one additional two (2) year term upon mutual agreement by both parties (“Extended Term”), and executed in writing.
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4. COORDINATION OF WORK.

4.1 Representative of Contracting Party. The following principals of Contracting Party (“Principals”) are hereby designated as being the principals and representatives of Contracting Party authorized to act in its behalf with respect to the Services specified herein and make all decisions in connection therewith:
(a) Paul Meschino, President
9300 W. Stockton Blvd., Suite 105
Elk Grove, CA 95758
Office (619) 372-9962
Email [email protected]
(b) David Kniff, Assistant Secretary
9320 Chesapeake Dr., Ste 208
San Diego, CA 92123
Office (858) 560-1468
Email [email protected]
(c) William Hayes, Project Manager
1500 S. Haven Ave., Suite 220
Ontario, CA 91761
Office (909) 568-9749
Email [email protected]
(d) Shelby Sieracki, Senior Account Manager
1500 S. Haven Ave., Suite 220
Ontario, CA 91761
Office (626) 224-2055
Email [email protected]
It is expressly understood that the experience, knowledge, capability, and reputation of the foregoing Principals were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing Principals shall be responsible during the term of this Agreement for directing all activities of Contracting Party and devoting sufficient time to personally supervise the Services hereunder. For purposes of this Agreement, the foregoing Principals may not be changed by Contracting Party and no other personnel may be assigned to perform the Services required hereunder without the express written approval of City.

4.2 Contract Officer. The “Contract Officer”, otherwise known as AJ Ortega, the City Building Official, or assigned designee may be designated in writing by the City Manager of the City. It shall be Contracting Party’s responsibility to assure that the Contract Officer, or assigned designee, is kept informed of the progress of the performance of the Services, and Contracting Party shall refer any decisions, that must be made by City to the Contract Officer, or assigned designee. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer, or assigned designee. The Contract Officer, or assigned designee, 394 Click Here to Return to Agenda
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shall have authority to sign all documents on behalf of City required hereunder to carry out the terms of this Agreement.

4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability, and reputation of Contracting Party, its principals, and its employees were a substantial inducement for City to enter into this Agreement. Except as set forth in this Agreement, Contracting Party shall not contract or subcontract with any other entity to perform in whole or in part the Services required hereunder without the express written approval of City. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated, or encumbered, voluntarily or by operation of law, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Contracting Party, taking all transfers into account on a cumulative basis. Any attempted or purported assignment or contracting or subcontracting by Contracting Party without City’s express written approval shall be null, void, and of no effect. No approved transfer shall release Contracting Party of any liability hereunder without the express consent of City.

4.4 Independent Contractor. Neither City nor any of its employees shall have any control over the manner, mode, or means by which Contracting Party, its agents, or its employees, perform the Services required herein, except as otherwise set forth herein.

City shall have no voice in the selection, discharge, supervision, or control of Contracting Party’s employees, servants, representatives, or agents, or in fixing their number or hours of service. Contracting Party shall perform all Services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Contracting Party shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Contracting Party in its business or otherwise or a joint venture or a member of any joint enterprise with Contracting Party. Contracting Party shall have no power to incur any debt, obligation, or liability on behalf of City. Contracting Party shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. Except for the Contract Sum paid to Contracting Party as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Contracting Party for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Contracting Party for injury or sickness arising out of performing the Services hereunder. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Contracting Party and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits. Contracting Party agrees to pay all required taxes on amounts paid to Contracting Party under this Agreement, and to indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason 395 Click Here to Return to Agenda
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of the independent contractor relationship created by this Agreement. Contracting Party shall fully comply with the workers’ compensation laws regarding Contracting Party and Contracting Party’s employees. Contracting Party further agrees to indemnify and hold City harmless from any failure of Contracting Party to comply with applicable workers’ compensation laws. City shall have the right to offset against the amount of any payment due to Contracting Party under this Agreement any amount due to City from Contracting Party as a result of Contracting Party’s failure to promptly pay to City any reimbursement or indemnification arising under this Section.

4.5 Identity of Persons Performing Work. Contracting Party represents that it employs or will employ at its own expense all personnel required for the satisfactory performance of any and all of the Services set forth herein. Contracting Party represents that the Services required herein will be performed by Contracting Party or under its direct supervision, and that all personnel engaged in such work shall be fully qualified and shall be authorized and permitted under applicable State and local law to perform such tasks and services.

4.6 City Cooperation. City shall provide Contracting Party with any plans, publications, reports, statistics, records, or other data or information pertinent to the Services to be performed hereunder which are reasonably available to Contracting Party only from or through action by City.

5. INSURANCE.

5.1 Insurance. Prior to the beginning of any Services under this Agreement and throughout the duration of the term of this Agreement, Contracting Party shall procure and maintain, at its sole cost and expense, and submit concurrently with its execution of this Agreement, policies of insurance as set forth in “Exhibit E” (the “Insurance Requirements”) which is incorporated herein by this reference and expressly made a part hereof.

5.2 Proof of Insurance. Contracting Party shall provide Certificate of Insurance to Agency along with all required endorsements. Certificate of Insurance and endorsements must be approved by Agency’s Risk Manager prior to commencement of performance.

6. INDEMNIFICATION.

6.1 Indemnification. To the fullest extent permitted by law, Contracting Party shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officers, employees, agents, and volunteers as set forth in “Exhibit F” (“Indemnification”) which is incorporated herein by this reference and expressly made a part hereof.

7. RECORDS AND REPORTS.

7.1 Reports. Contracting Party shall periodically prepare and submit to the Contract Officer, or assigned designee, such reports concerning Contracting Party’s 396 Click Here to Return to Agenda
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performance of the Services required by this Agreement as the Contract Officer, or assigned designee, shall require. Contracting Party hereby acknowledges that City is greatly concerned about the cost of the Services to be performed pursuant to this Agreement. For this reason, Contracting Party agrees that if Contracting Party becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Services contemplated herein or, if Contracting Party is providing design services, the cost of the project being designed, Contracting Party shall promptly notify the Contract Officer, or assigned designee, of said fact, circumstance, technique, or event and the estimated increased or decreased cost related thereto and, if Contracting Party is providing design services, the estimated increased or decreased cost estimate for the project being designed.

7.2 Records. Contracting Party shall keep, and require any subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports (including but not limited to payroll reports), studies, or other documents relating to the disbursements charged to City and the Services performed hereunder (the “Books and Records”), as shall be necessary to perform the Services required by this Agreement and enable the Contract Officer, or assigned designee, to evaluate the performance of such Services. Any and all such Books and Records shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer, or assigned designee, shall have full and free access to such Books and Records at all times during normal business hours of City, including the right to inspect, copy, audit, and make records and transcripts from such Books and Records.

Such Books and Records shall be maintained for a period of three (3) years following completion of the Services hereunder, and City shall have access to such Books and Records in the event any audit is required. In the event of dissolution of Contracting Party’s business, custody of the Books and Records may be given to City, and access shall be provided by Contracting Party’s successor in interest. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds Ten Thousand Dollars ($10,000.00), this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of City, for a period of three (3) years after final payment under this Agreement.

7.3 Ownership of Documents. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents, and other materials plans, drawings, estimates, test data, survey results, models, renderings, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings, digital renderings, or data stored digitally, magnetically, or in any other medium prepared or caused to be prepared by Contracting Party, its employees, subcontractors, and agents in the performance of this Agreement (the “Documents and Materials”) shall be the property of City and shall be delivered to City upon request of the Contract Officer, or assigned designee, or upon the expiration or termination of this Agreement, and Contracting Party shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the Documents and Materials hereunder. Any use, reuse or assignment of such completed Documents and Materials for other projects and/or use of uncompleted documents without specific written 397 Click Here to Return to Agenda
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authorization by Contracting Party will be at City’s sole risk and without liability to Contracting Party, and Contracting Party’s guarantee and warranties shall not extend to such use, revise, or assignment. Contracting Party may retain copies of such Documents and Materials for its own use. Contracting Party shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any Documents and Materials prepared by them, and in the event Contracting Party fails to secure such assignment, Contracting Party shall indemnify City for all damages resulting therefrom.

7.4 In the event City or any person, firm, or corporation authorized by City reuses said Documents and Materials without written verification or adaptation by Contracting Party for the specific purpose intended and causes to be made or makes any changes or alterations in said Documents and Materials, City hereby releases, discharges, and exonerates Contracting Party from liability resulting from said change.

The provisions of this clause shall survive the termination or expiration of this Agreement and shall thereafter remain in full force and effect.

7.5 Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, rights of reproduction, and other intellectual property embodied in the Documents and Materials. Contracting Party shall require all subcontractors, if any, to agree in writing that City is granted a non-exclusive and perpetual license for the Documents and Materials the subcontractor prepares under this Agreement. Contracting Party represents and warrants that Contracting Party has the legal right to license any and all of the Documents and Materials. Contracting Party makes no such representation and warranty in regard to the Documents and Materials which were prepared by design professionals other than Contracting Party or provided to Contracting Party by City. City shall not be limited in any way in its use of the Documents and Materials at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk.

7.6 Release of Documents. The Documents and Materials shall not be released publicly without the prior written approval of the Contract Officer, or assigned designee, or as required by law. Contracting Party shall not disclose to any other entity or person any information regarding the activities of City, except as required by law or as authorized by City.

7.7 Confidential or Personal Identifying Information. Contracting Party covenants that all City data, data lists, trade secrets, documents with personal identifying information, documents that are not public records, draft documents, discussion notes, or other information, if any, developed or received by Contracting Party or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Contracting Party to any person or entity without prior written authorization by City or unless required by law. City shall grant authorization for disclosure if required by any lawful administrative or legal proceeding, court order, or similar directive with the force of law. All City data, data lists, trade secrets, documents with personal identifying information, documents that are not public records, draft documents, discussions, or other 398 Click Here to Return to Agenda
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information shall be returned to City upon the termination or expiration of this Agreement.

Contracting Party’s covenant under this section shall survive the termination or expiration of this Agreement.

8. ENFORCEMENT OF AGREEMENT.

8.1 California Law. This Agreement shall be interpreted, construed, and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Contracting Party covenants and agrees to submit to the personal jurisdiction of such court in the event of such action.

8.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer, or assigned designee; provided that if the default is an immediate danger to the health, safety, or general welfare, City may take such immediate action as City deems warranted.

Compliance with the provisions of this Section shall be a condition precedent to termination of this Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party’s right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City’s right to terminate this Agreement without cause pursuant to this Article 8.0. During the period of time that Contracting Party is in default, City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, City may, in its sole discretion, elect to pay some or all of the outstanding invoices during any period of default.

8.3 Retention of Funds. City may withhold from any monies payable to Contracting Party sufficient funds to compensate City for any losses, costs, liabilities, or damages it reasonably believes were suffered by City due to the default of Contracting Party in the performance of the Services required by this Agreement.

8.4 Waiver. No delay or omission in the exercise of any right or remedy of a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. City’s consent or approval of any act by Contracting Party requiring City’s consent or approval shall not be deemed to waive or render unnecessary City’s consent to or approval of any subsequent act of Contracting Party. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.

8.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights 399 Click Here to Return to Agenda
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or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party.

8.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, at law or at equity, to cure, correct, or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement.

8.7 Termination Prior To Expiration of Term. This Section shall govern any termination of this Agreement, except as specifically provided in the following Section for termination for cause. City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days’ written notice to Contracting Party. Upon receipt of any notice of termination, Contracting Party shall immediately cease all Services hereunder except such as may be specifically approved by the Contract Officer, or assigned designee. Contracting Party shall be entitled to compensation for all Services rendered prior to receipt of the notice of termination and for any Services authorized by the Contract Officer, or assigned designee, thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, or assigned designee, except amounts held as a retention pursuant to this Agreement.

8.8 Termination for Default of Contracting Party. If termination is due to the failure of Contracting Party to fulfill its obligations under this Agreement, Contracting Party shall vacate any City-owned property which Contracting Party is permitted to occupy hereunder and City may, after compliance with the provisions of Section 8.2, take over the Services and prosecute the same to completion by contract or otherwise, and Contracting Party shall be liable to the extent that the total cost for completion of the Services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Contracting Party for the purpose of setoff or partial payment of the amounts owed City.

8.9 Attorneys’ Fees. If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorneys’ fees; provided, however, that the attorneys’ fees awarded pursuant to this Section shall not exceed the hourly rate paid by City for legal services multiplied by the reasonable number of hours spent by the prevailing party in the conduct of the litigation.

Attorneys’ fees shall include attorneys’ fees on any appeal, and in addition a party entitled to attorneys’ fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery, and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. The court may set such fees in the same action or in a separate action brought for that purpose.
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9. CITY OFFICERS AND EMPLOYEES; NONDISCRIMINATION.

9.1 Non-liability of City Officers and Employees. No officer, official, employee, agent, representative, or volunteer of City shall be personally liable to Contracting Party, or any successor in interest, in the event or any default or breach by City or for any amount which may become due to Contracting Party or to its successor, or for breach of any obligation of the terms of this Agreement.

9.2 Conflict of Interest. Contracting Party covenants that neither it, nor any officer or principal of it, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Contracting Party’s performance of the Services under this Agreement. Contracting Party further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent, or subcontractor without the express written consent of the Contract Officer, or assigned designee. Contracting Party agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement.

No officer or employee of City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to this Agreement which effects his financial interest or the financial interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. Contracting Party warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.

9.3 Covenant against Discrimination. Contracting Party covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any impermissible classification including, but not limited to, race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry in the performance of this Agreement. Contracting Party shall take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry.

10. MISCELLANEOUS PROVISIONS.

10.1 Notice. Any notice, demand, request, consent, approval, or communication either party desires or is required to give the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this Section.

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To City:

CITY OF LA QUINTA
Attention: AJ Ortega,
Building Official
78495 Calle Tampico
La Quinta, CA 92253
To Contracting Party:

INTERWEST CONSULTING GROUP
Paul Meschino, President
9300 W. Stockton Blvd., Suite 105
Elk Grove, CA 95758

10.2 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.

10.3 Section Headings and Subheadings. The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement.

10.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument.

10.5 Integrated Agreement. This Agreement including the exhibits hereto is the entire, complete, and exclusive expression of the understanding of the parties. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements, and understandings, if any, between the parties, and none shall be used to interpret this Agreement.

10.6 Amendment. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by Contracting Party and by the City Council of City. The parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void.

10.7 Severability. In the event that any one or more of the articles, phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable, such invalidity or unenforceability shall not affect any of the remaining articles, phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless.

10.8 Unfair Business Practices Claims. In entering into this Agreement, Contracting Party offers and agrees to assign to City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, 402 Click Here to Return to Agenda
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services, or materials related to this Agreement. This assignment shall be made and become effective at the time City renders final payment to Contracting Party without further acknowledgment of the parties.

10.9 No Third-Party Beneficiaries. With the exception of the specific provisions set forth in this Agreement, there are no intended third-party beneficiaries under this Agreement and no such other third parties shall have any rights or obligations hereunder.

10.10 Authority. The persons executing this Agreement on behalf of each of the parties hereto represent and warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors, and assigns of the parties. [SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below.

CITY OF LA QUINTA,
a California Municipal Corporation

JON McMILLEN, City Manager
City of La Quinta, California
Dated:

CONTRACTING PARTY:

By:

Name:

Title:

ATTEST:

MONIKA RADEVA, City Clerk
City of La Quinta, California
By:

Name:

Title:

APPROVED AS TO FORM:

WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
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Exhibit A

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Exhibit A
Scope of Services

1. Services to be Provided:

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2. Performance Standards:

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Initial Term:
“Not to Exceed” Year 1: $290,000.00
“Not to Exceed” Year 2: $290,000.00
“Not to Exceed” Year 3: $290,000.00
Possible Extended Term:
“Not to Exceed” Year 4: $290,000.00
“Not to Exceed” Year 5: $290,000.00
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Exhibit C

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Exhibit D
Special Requirements
NONE
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Exhibit E

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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:

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e. Liability arising from the failure to render professional services.

If coverage is maintained on a claims-made basis, Contracting Party shall maintain such coverage for an additional period of three (3) years following termination of the contract.

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:

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 415 Click Here to Return to Agenda
Exhibit E

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10. Contracting Party agrees not to self-insure or to use any self-insured retentions or deductibles on any portion of the insurance required herein (with the 416 Click Here to Return to Agenda
Exhibit E

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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.

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. 418 Click Here to Return to Agenda
Exhibit F

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d. Indemnification Provision for Design Professionals.

STAFF REPORT
AGENDA TITLE: APPROVE AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT

SERVICES WITH VINTAGE ELECTRIC FOR ON-CALL ELECTRICAL SERVICES TO EXTEND THE TERM THROUGH FISCAL YEAR 2024/25 AND INCREASE THE CONTRACT AUTHORITY UP TO $150,000 OF WORK PER FISCAL YEAR EFFECTIVE FISCAL YEAR 2022/23

RECOMMENDATION
Approve Amendment No. 2 to Agreement for Contract Services with Vintage Electric for oncall electrical services, to extend the term two additional years through fiscal year 2024/25 and increase the contract authority up to $150,000 of work per fiscal year effective fiscal year 2022/23; and authorize the City Manager to execute the amendment.

EXECUTIVE SUMMARY
• Public Works projects, as well as Building, Landscape and Street Maintenance activities often require electrical services, which necessitate certified electricians.

The City contracts with Vintage Electric to provide these specialized services. • Several public works maintenance and capital improvement projects have required electrical services and have utilized most of the existing $100,000 contract authority for fiscal year (FY) 2022/23.
• The current lamp post replacement project requires additional funds for the installation of new energy efficient lamp posts throughout the City. • Proposed Amendment No. 2 to the agreement would increase the annual spending authority effective FY 2022/23 and extend the term two additional years through FY 2024/25.

FISCAL IMPACT
Funds are available in the Maintenance Services accounts: 215-7004-60691; and 101- 3005-60691, Public Works Administration Consultants account (101-7001-60104), the Capital Improvement Project (CIP) technical account for these services (401-0000-60108).

If approved, the revised total amount that can be paid to Vintage Electric for FY 2022-23 would increase from $100,000 to not to exceed $150,000 for electrical services.

CONSENT CALENDAR ITEM NO. 12
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The following is the proposed contract amount for the remaining contract term:

Initial Term:
“Not to exceed” Year 3 (FY2022/23): $150,000.00
Extended Term:
“Not to exceed” Year 4 (FY2023/24): $150,000.00
“Not to exceed” Year 5 (FY2024/25): $150,000.00

BACKGROUND/ANALYSIS
The City contracts with Vintage Electric to provide on-call electrical services for projects that necessitate this specialty; the contractor was selected through the competitive Request for Proposals process completed in March 2020, and Council approved the current agreement in June 2020, which expires on June 30, 2023.

In March 2021, Council approved Amendment No. 1 to the agreement which increased the spending authority for FY 2020/21 from $100,000 to $200,000 due to an increase in the number of projects.

Construction of several public works and capital improvement projects have utilized most of the existing contract authority for FY 2022/23. Additional funding is needed for the current lamp post replacement project. The City has purchased 97 lamp posts, 68 single lamp posts and 29 double lamp posts. The Landscape and Lighting (L&L) District has 42 single and 25 double; and Civic Center Campus has 26 single, and four double posts are for La Quinta Park. Total installation costs are estimated to be $59,000. Additional contract authority in the amount of $50,000 is needed for a total “not to exceed” budget of $150,000 for FYs 2022/23 to complete ongoing projects.

If approved, proposed Amendment No. 2 (Attachment 1) would allow staff to utilize Vintage Electric for on-call electrical services for a “not to exceed” amount of $150,000 per fiscal year effective FYs 2022/23 through 2024/25.

ALTERNATIVES
Council may elect not to approve the amendment.

Prepared by: Julie Mignogna, Management Analyst
Approved by: Bryan McKinney, Public Works Director/City Engineer Attachment: 1. Amendment No. 2 to Agreement for On-Call Electrical Services with Vintage Electric

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AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES

WITH VINTAGE ELECTRIC
This Amendment No. 2 ("Amendment No. 2") to Agreement for Contract Services (“Agreement”) with Vintage Electric is made and entered into as of the 20th day of June, 2023 ("Effective Date") by and between the CITY OF LA QUINTA ("City"), a California municipal corporation and Vintage Electric, (“Contracting Party”).

RECITALS
WHEREAS, on or about July 1, 2020, the City and Contracting Party entered into an Agreement to provide On-Call Electrical Services. The term of the Agreement expires on June 30, 2023 (Initial Term); and
WHEREAS, on or about July 27, 2021, the City and Contracting Party executed Amendment No. 1 amending Section 2.1 Contract Sum of the Agreement to increase compensation for fiscal year (FY) 2020/21 by $100,000, for a total not to exceed amount of $200,000 to complete several public works and capital improvement projects; and WHEREAS, the City and Contracting Party mutually agree to execute Amendment No. 2 to:
• Amend Section 2.1 Contract Sum of the Agreement by increasing compensation by $50,000, for a total not to exceed amount of $150,000 per FY, effective FY 2022/23, as identified in Exhibit B, attached hereto and made a part hereof; and
• Amend Section 3.4 Term of the Agreement to extend the term for two additional years through June 30, 2025 (Extended Term).

NOW THEREFORE, in consideration of the mutual covenant herein contained, the parties agree as follows:

AMENDMENT
In consideration of the foregoing Recitals and the covenants and promises hereinafter contained, and for good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree as follows:

1. Section 2.1 Contract Sum is amended to read:

2.1 Contract Sum. For the Services rendered pursuant to this Agreement, Contracting Party shall be compensated in accordance with “Exhibit B” (the “Schedule of Compensation”) in a total amount not to exceed Two Hundred Thousand Dollars ($200,000) for fiscal year (FY) 2020/21; One Hundred Thousand Dollars ($100,000) for FY 2021/22; and One Hundred and Fifty Thousand Dollars ($150,000) per year effective FY 2022/23, for the life of the Agreement, encompassing any extended terms (the “Contract Sum”), except as provided in Section 1.7.

ATTACHMENT 1
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“Exhibit B” – Schedule of Compensation is amended as listed in “Exhibit B”, attached hereto and incorporated by this reference.

2. Section 3.4 Term is amended to read as follows:

Unless earlier terminated in accordance with the provisions in Article 8.0 of this Agreement, the term of this agreement shall commence on July 1, 2020, and terminate on June 30, 2023 (“Initial Term”). Notwithstanding any provisions to the contrary in effect prior to the date of this Amendment No. 2, this Agreement is extended for two additional years and shall remain in full force and effect until June 30, 2025 (“Extended Term”).

In all other respects, the Original Agreement shall remain in effect.

IN WITNESS WHEREOF, the City and Consultant have executed this Amendment No. 2 to the Agreement for Contract Services on the respective dates set forth below.

CITY OF LA QUINTA, VINTAGE ELECTRIC
A California municipal corporation, a California Corporation and charter city
__________________________ __________________________
Jon McMillen, City Manager James Tourje, President
Date: _________________ Date: __________________
ATTEST:
__________________________
Monika Radeva, City Clerk
APPROVED AS TO FORM:
_________________________
William H. Ihrke, City Attorney
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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 Two Hundred Thousand Dollars ($200,000) for fiscal year (FY) 2020/21; One Hundred Thousand Dollars ($100,000) for FY 2021/22; and One Hundred and Fifty Thousand Dollars ($150,000) per year effective FY 2022/23, for the life of the Agreement, encompassing any extended terms (“Contract Sum”). The Contract Sum shall be paid to Contracting Party 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.

Initial Term:
“Not to exceed” Year 1 (FY2020/21): $200,000.00
“Not to exceed” Year 2 (FY2021/22): $100,000.00
“Not to exceed” Year 3 (FY2022/23): $150,000.00
Extended Term:
“Not to exceed” Year 4 (FY2023/24): $150,000.00
“Not to exceed” Year 5 (FY2024/25): $150,000.00
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City of La Quinta
CITY COUNCIL MEETING: June 20, 2023

STAFF REPORT
AGENDA TITLE: APPROVE ADDITIONAL FUNDS FOR FISCAL YEAR 2023/24

MEMORANDUM OF UNDERSTANDING WITH THE GREATER COACHELLA VALLEY

CHAMBER OF COMMERCE

RECOMMENDATION
Approve additional funds for Fiscal Year 2023/24 Memorandum of Understanding with the Greater Coachella Valley Chamber of Commerce; and authorize the City Manager to execute the document.

EXECUTIVE SUMMARY
• On June 6, 2023, Council approved the Fiscal Year (FY) 2023/24 Memorandum of Understanding (MOU) with the Greater Coachella Valley Chamber of Commerce (Chamber) on June 6, 2023, for $166,089.
• Staff did not include the cost for the proposed digital version of The Gem priced at $7,500 and seeks Council approval to increase FY 2023/24 not to exceed amount of the MOU from $166,085 to $173,589.

FISCAL IMPACT
FY 2023/24 Budget would allocate funds for Chamber services in the Marketing & Tourism account (101-3007-60461) and from AB 939 Recycling Solutions account (221- 0000-60127). If the digital version of The Gem is approved, the printing and distribution options will be as follows, for a total not to exceed amount of $173,589 for FY 2023/24:.

Chamber Design, Print
and Postage Cost
City Pages Cost
o 36 pages for 9 months
o Qty: 21,000
o 32 pages for 3 months
o Qty: 16,000
o Digital Gem
o Total per issue: $12,232
(General: $10,232 & AB 939: $ 2,000)
o Total Cost for 9 months: $110,088
(General: $92,088 & AB 939: $18,000)
o Total: $7,667 per issue
(General: $5,667 & AB 939: $2,000)
o Total Cost for 3 months: $23,001
(General: $17,001 & AB 939: $ 6,000)
Total: $7,500 one-time cost in FY 2023/24
CONSENT CALENDAR ITEM NO. 13
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o Events & Business
Engagement (State of the
City, Hot Rod Car Show,
Monthly Business Outreach)
(Annual Maintenance at $1,000 will apply starting
FY 2024/25)
o Total Annual Cost: $33,000
o Total Annual Cost for MOU: $173,589

BACKGROUND/ANALYSIS
On June 6, 2023, Council approved the MOU with the Chamber for FY 2023/24 for a total not to exceed amount of $166,089.

Staff is also proposing to create a digital formatted version of The Gem that can include unlimited City content and stories that would be posted to both the City website as well as the Chamber website. The addition of the digital version would also allow the City and Chamber to include content throughout the month. A QR Code or URL would be included in each printed issue of The Gem directing readers to the digital version. • One time cost: $7,500 in FY 2023/24
• Annual Maintenance: $1,000 beginning with next fiscal year The MOU would be managed by the City Manager’s office. The scope of work as currently approved includes:

1. The Gem Newsletter
a. Monthly Community newsletter circulated by mail to residences and businesses within La Quinta and includes digital format and distribution (i.e., email blasts, social media)
b. Monthly digital version of The Gem available online on the City’s website as well as the Greater Coachella Valley Chamber of Commerce’s website.

2. State of the City
a. Presentation by Mayor and Council of city progress and on-going development efforts
b. Mayor and Council present business awards as determined by a process agreed to by both parties.
c. GCVCC would stage this annual event; City staff would design and approve format and content

3. 15th Annual Hot Rod & Custom Car Show Sponsorship
a. Community Event: annual car show at La Quinta Community Park. i. Projected event parameters include:
1) 80-150 vehicle entries;
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2) 8-25 food/retail vendors and alcohol sales;
3) Live entertainment during the event; and
4) La Quinta auto dealership inclusion.
b. City Title Sponsorship, which includes: event materials branding (both print and digital), press release inclusion, and drive market promotion (in San Diego and Orange Counties)

4. Business Engagement
a. Business Outreach/Services
i. Ombudsman-like Services
ii. Strategic Advertising/Public Relations
iii. Regional Investment
iv. Workforce and Business Development
v. Data Collection of City’s Businesses
Per Council’s direction on June 6, 2023, the following metrics requirements have been included in the MOU terms:
o Business Engagement will consist of at least (10) in-person business connects per month between the Chamber and a La Quinta Business that will consist of Chamber meeting with owner/manager/employee and confirming contact information for that business, as well as providing resources based on the business needs.
o The Chamber will hold at least (2) workshops for businesses in La Quinta per year that will provide education and information for business support.

ALTERNATIVES
Council may choose to make modifications to the scope and/or funding levels.

Prepared by: Marcie Graham, Marketing Manager
Approved by: Gil Villalpando, Director
Attachment: 1. Memorandum of Understanding with the Greater Coachella Valley Chamber of Commerce
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MEMORANDUM OF UNDERSTANDING BETWEEN

THE CITY OF LA QUINTA AND

GREATER COACHELLA VALLEY CHAMBER OF COMMERCE
This Memorandum of Understanding (“MOU”) is made by and between the CITY OF LA QUINTA, a California municipal corporation (“CITY”), and GREATER COACHELLA VALLEY CHAMBER OF COMMERCE (“CHAMBER” and, along with CITY, sometimes referred to as the “parties”), with respect to the following:

RECITALS
WHEREAS, the CITY, in strategically advancing its interests, requires certain professional promotional services rendered in coordination with the local business community and
WHEREAS, the CHAMBER is qualified by virtue of experience, training, education, product offering, and expertise to provide these services, and has agreed to provide same as reflected herein;
NOW, THEREFORE, CITY and CHAMBER agree to the following:

1.0 TERM OF MEMORANDUM.

1.1 All Recitals set out above are true and correct.

1.2 This MOU is to remain in effect for 1 (one) year following its execution by the parties.

This MOU may be terminated at any time by any of the parties to the MOU with a 30 (thirty) day written notice to the remaining party.

2.0 OBLIGATIONS OF THE CHAMBER.

2.1 The CHAMBER will provide the services listed on Exhibit A attached and incorporated
(“CHAMBER obligations”).

2.2. Notwithstanding any other provisions in this MOU, the CHAMBER shall not use, nor may the CHAMBER authorize the use of, any funds or other subsidy (of whatever kind) provided by the CITY pursuant to this MOU or any other agreement with the CITY, including but not limited to any funds or other subsidies provided by the CITY for the “CHAMBER obligations” listed in Exhibits A and “CITY obligations” listed in Exhibit B, to advocate to any person or entity (of whatever organization whatsoever, including butnot limited to, sole proprietors, unincorporated associations, limited liability companies, corporations, businesses and public agencies) a position or vote either in favor of or against any measure placed on the ballot for the November 8, 2020 General Election, including but not limited to the measure placed on the ballot by the LaQuinta City Council asking the City’s electorate to vote on a proposed 1% transactions and use (“sales”) tax rate increase. It is expressly ATTACHMENT 1 430 Click Here to Return to Agenda
understood and agreed by the CHAMBER that, pursuant to California law, public resources may not be used to advocate or “mount a campaign” in favor of or against any ballot measure.

2.3 If the CHAMBER uses or is alleged to have used, or authorizes the use of or allegedly authorizes the use of,anyfundsoranyother subsidy (of whatever kind) provided bytheCITYin violation of Section 2.2 above, the CHAMBER shall: (a) Immediately cease and desist from continuing the violation or alleged violation of Section 2.2 above, (b) Immediately use other funds or subsidies that are not provided by the CITY to pay for or otherwise subsidize the services rendered that are, were, or alleged to have been in violation of Section 2.2 above, (c) Immediately, without reservation or rights or delay, return to the CITYany and all funds andother subsidies provided bytheCITYforthe services rendered that are, were, or alleged to have been in violation of Section 2.2 above, and (d) Refrain from performing under this MOU, including but not limited to refraining from performing the “CHAMBER obligations” listed in Exhibits A, unless and until the CHAMBER complies with this Section 2.3 and the CITY authorizes in writing the continuance of performance under this MOU. The CITY shall have no obligation to provide any funds or other subsidies (of whatever kind) under this MOU or any other agreement with the CITY unless and until any violation or alleged violation of Section 2.2 above has been cured as determined by the CITY in its reasonable discretion. The CITY shall have all rights and remedies available at law orin equity, including but not limited to declaratory and injunctive relief, as well as the rights available under this MOU, including but not limited to the indemnity provided in Section 4.0 below, to enforce the provisions herein. In addition to the other provisions in this MOU, this Section and Section 2.2 shall survive the termination or expiration of this MOU.

3.0 OBLIGATIONS OF CITY. CITY will provide the services listed on Exhibit B attached and incorporated (“CITY obligations”).

4.0 MUTUAL INDEMNITY AND RELEASE. The CITY and CHAMBER each hereby agree to indemnify, defend, and hold harmless the other party and its officers, employees, agents, and authorized volunteers (collectively, “Indemnitees”) from and against any and all claims, causes of action, obligations, losses, liabilities, judgments, or damages, including reasonable attorneys’ fees and costs of litigation (collectively “Claims”) arising out of and/or in any way relating to the indemnifying party’s activities in the performance of this MOU, or to the indemnifying party’s acts and/or omissions in providing or administering the same, excepting only those Claims arising out of the sole negligence or willful misconduct of the Indemnitees. This MOU is not intended to and specifically does not create joint and several liability.

5.0 INSURANCE. The parties agree to provide insurance in accordance with the provisions of this Section.

5.1 CITY’S Insurance Obligation. Without limiting the indemnification provisions provided herein, CITY, atits sole expense, shall obtainand keep in force during the term ofthis MOU and any extensions thereof, a policy or policies of general liability insurance, or equivalent thereof, covering all injuries to persons and damage to property resulting from any actions or omissions of the CITY in accordance with the terms of this MOU. Such policy or policies shall be issued by an insurance company licensed to do business in the State of California and be 431 Click Here to Return to Agenda
rated A-/VIII or better by ambest.com. At the CITY’s option, CITY shall be allowed to selfinsure the insurance coverage as required above.

5.2 CHAMBER’S Insurance Obligation. Without limiting the indemnification provisions provided herein, CHAMBER, at its sole expense, shall obtain and keep in force during the term ofthis MOU and any extensions thereof, a policy or policies of general liability insurance covering all injuries to persons and damage to property resulting from any actions or omissions of CHAMBER in accordance with the terms of this MOU. The policy or policies evidencing such insurance shall be endorsed to name the CITY, its officials, officers, employees, and agents as additional insured, shall provide that same may not be cancelled or amended without thirty (30) days prior notice to CITY, and shall provide for a combined single limit coverage of bodily injury and property damage in the amount of not less thanOne Million Dollars ($1,000,000). Such policy or policies shall be issued by an insurance company licensed to do business in the State of California and be rated A-/VIII or better by ambest.com. Prior to the Commencement Date of this MOU, and upon renewal of such policies, CHAMBER shall submit to CITY certificates of insurance and any applicable endorsements evidencing that the foregoing policy or policies are in effect. a.0 ADDITIONAL PROVISIONS.
a.1 In all cases, the language in all parts of this MOU shall be construed according to its fair meaning and not strictly for or against either party, if being agreed that the parties or their agents have all participated in the preparation of this MOU. a.2 This MOU contains the entire agreement of the parties with respect to the subject matters identified in this MOU and supersedes any prior oral or written statements or agreements between the parties with respect to the subject matters identified in this MOU. a.3 No termination or expiration of this MOU shall release either party from any liability or obligation hereunder resulting from any acts, omissions or events happening prior to the termination or expiration of this MOU.
a.4 In the event either party brings any suit or other proceeding with respect to the subject matter or enforcement of this MOU, the prevailing party (as determined by California law) shall, in addition to such other relief as may be awarded, be entitled to recover reasonable attorneys’ fees, expenses and costs of suit or investigation as actually incurred (including, without limitation, reasonable attorneys’ fees, expenses, and costs incurred in establishing the right to indemnification).
a.5 No waiver of any term or condition of this MOU shall be a continuing waiver thereof. a.6 This MOU is not intended to and does not create any partnership or joint venture between the parties, and each party remains an independent contractor as to the other. Each party shall bear its own liability and there is no joint and several liability as a result of this MOU.
[signature on following page]
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IN WITNESS WHEREOF, CITY and CHAMBER have executed this MOU as evidenced by the signatures contained below:

CITY OF LA QUINTA: GREATER

COACHELLA VALLEY

CHAMBER OF
COMMERCE:

By: By:

Jon McMillen Brandon Marley
City Manager President
Dated: Dated:

ATTEST: ATTEST:

By: By:

Monika Radeva
City Clerk
Print Name & Title:

APPROVED AS TO FORM: APPROVED AS TO
FORM AND CONTENT:

By: By:

WilliamH. Ihrke Print Name & Title:

City Attorney
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EXHIBIT “A”
Obligations of CHAMBER

1. The GemNewsletter
a. Community Newsletter with circulation by mail to residences and businesses within La Quinta with a monthly frequency and includes digital format and distribution (i.e. email blasts, social media) b. Cityreserves theoptiontopurchase adspace withexclusive pricing that includes:
• (9) Months at : $110,088
• 36 Pages
• 12 Months
• Qty. 21,000 & Bulk Mail/Addressing
• (3) Months at: $23,001
• 32 Pages
• 12 Months
• Qty. 16,000 & EDDM Postage
• Digital Version: $7,500

2. State of the City - $15,000
a. Presentation by Mayor and Council of city progress and on-going development efforts.
b. Mayor and Council will also present business awards as determined by a process agreed to by both parties.
c. GCVCC would stage this annual event; city staff would design and approve format and content

3. 15th Annual Hot Rod & Custom CarShow Sponsorship - $10,000 a. Community Event: annual car show at La Quinta Community Park. i. Projected event parameters include:
a. 80-150 vehicle entries;
b. 8-25 food/retail vendors andalcohol sales;
c. Live entertainment during the event; and
d. LaQuinta autodealership inclusion.
b. CityTitleSponsorship, which includes: event materials branding (both print and digital), pressreleaseinclusion,anddrivemarketpromotion(inSanDiegoand OrangeCounties)

4. Business Development - $8,000
a. Business Outreach/Services
i. Ombudsman-like Services
ii. Strategic Advertising/PR
iii. Regional Investment
iv. Workforce and Business Development
v. Data Collection of City’s Businesses
vi. Minimum of (10) in-person business connect type meetings per month vii.(2) Business education workshops per year for businesses 434 Click Here to Return to Agenda
Grand Total: $173,589
CHAMBER shall submit monthly invoices to CITY. Such invoices shall be reviewed by a principal member of CHAMBER specifying that the payment requested is for work performed in accordance with the terms of this MOU. CITY will pay CHAMBER for all expenses stated thereon which are approved by CITY and in accordance with this MOU no later than thirty (30) days after invoices are received by the CITY. 435 Click Here to Return to Agenda
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City of La Quinta
CITY COUNCIL MEETING: June 20, 2023

STAFF REPORT
AGENDA TITLE: ACCEPT SILVERROCK PARK VENUE WI-FI AND CAMERA BACKBONE PROJECT NO. 2022-18 LOCATED AT SILVERROCK PARK

RECOMMENDATION
Accept the SilverRock Park Venue Wi-Fi and Camera Backbone Project No. 2022-18 as complete; authorize the City Clerk to file a Notice of Completion with the Office of the County Recorder; and authorize staff to release retention in the amount of $3,569, thirtyfive days after the Notice of Completion is recorded.

EXECUTIVE SUMMARY
• The project placed 24-strands of fiber from the intersection of SilverRock (Talus) Way and Avenue 52 to the on-site modular event building at SilverRock Park Venue to allow for the future expansion of the City’s Wi-Fi Network and installation of cameras.
• The work is complete and Council acceptance will close the contract and allow final payment.

FISCAL IMPACT
The following is the financial accounting for Project No. 2022-18:

Original Contract Amount $ 61,942
Contract Change Orders No. 1 - 5 $ 9,431
Final Contract Amount $ 71,373
Project Budget $ 104,000
Final Contract Amount ($ 71,373)
Design & Professional Costs ($ 19,650)
Inspection, Survey, Plans, & Other Construction Costs ($ 1,564) Anticipated Funds Remaining* $ 11,413
* All costs to date have been accounted for and no further costs are anticipated.

CONSENT CALENDAR ITEM NO. 14
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There are adequate funds to close this project; the final retention amount of $3,569 will be paid from account number 401-0000-20600.

BACKGROUND/ANALYSIS
On August 2, 2022, Council awarded a $61,942 contract to Elecnor Belco Electric, Inc.

On August 29, 2022, a Notice to Proceed was issued with a 15-working day completion time starting on September 19, 2022, and ending on October 7, 2022. The project was deemed substantially complete on October 12, 2022. No liquidated damages or early completion incentives are recommended.

Contract Change Order No. 1 was issued on October 13, 2022, to allow for furnish and installation of approximately 110 ft. of 1.5-inch conduit and extended the contract completion date to October 10, 2022.

Contract Change Order No. 2 was issued on October 26, 2022, to allow for an upgrade of one Small Form-Factor Pluggable (SFP) module from 1 GB to 10 GB.

Contract Change Order No. 3 was issued on October 26, 2022, to allow for a fiber splicing change and extended the contract completion date to October 11, 2022.

Contract Change Order No. 4 was issued on October 26, 2022, to allow for fiber splicing at the X-Park and extended the contract completion date to October 13, 2022.

Contract Change Order No. 5 was issued on June 12, 2023, to allow for final quantity adjustments.

Due to supply chain demand, the contractor was waiting for a part to come in which resulted in a later acceptance date.

The project construction effort is complete and in compliance with the plans and specifications. Staff recommends acceptance and release of the retention thirty-five days after the Notice of Completion is recorded.

ALTERNATIVES
Staff does not recommend an alternative.

Prepared by: Carley Escarrega, Management Assistant
Approved by: Bryan McKinney, P.E., Public Works Director/City Engineer Attachment: 1. Vicinity Map

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*IMPORTANT* Maps and data are to be used for reference purposes only. Map features are approximate, and are not necessarily accurate to surveying or engineering standards. The County of Riverside makes no warranty or guarantee as to the content (the source is often third party), accuracy, timeliness, or completeness of any of the data provided, and assumes no legal responsibility for the information contained on this map. Any use of this product with respect to accuracy and precision shall be the sole responsibility of the user.
© Riverside County GIS
Feet
Legend
From SilverRock Way to Jefferson Street
Notes
0 REPORT PRINTED ON... 2/21/2019 2:50:13 PM
SilverRock Venue
Vicinity Map
3,009 6,019
Blueline Streams
City Areas
World Street Map
ATTACHMENT 1
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City of La Quinta
CITY COUNCIL MEETING: June 20, 2023

STAFF REPORT
AGENDA TITLE: ACCEPT X-PARK PROJECT NO. 2015-09, LOCATED ON

BLACKHAWK WAY

RECOMMENDATION
Accept the X-Park Project No. 2015-09 as complete; authorize the City Clerk to file a Notice of Completion with the Office of the County Recorder; and authorize staff to release retention in the amount of $188,625, thirty-five days after the Notice of Completion is recorded.

EXECUTIVE SUMMARY
• The project constructed 31,000 square-feet of skating and bicycling area with bowls and features for all age ranges and abilities: including a parking lot, a 1,400 squarefoot pro-shop, pump track, and retention basins. • The work is complete and Council acceptance will close the contract and allow final payment.

FISCAL IMPACT
The following is the financial accounting for Project No. 2015-09:

Original Contract Amount $ 2,800,000
Amendments no. 1 – 5 $ 957,710
Contract Change Orders no. 1 – 2 $ 14,785
Final Contract Amount $ 3,772,495
Project Budget $ 4,686,639
Final Contract Amount ($ 3,772,495)
Pre-Design Contract Amount ($ 45,000)
Professional, & Personnel Costs ($ 64,798)
Land Acquisition ($634,682)
Inspection, Survey, Plans, & Other Construction Costs ($123,264) Anticipated Funds Remaining* $ 46,400
* All costs to date have been accounted for and no further costs are anticipated.

There are adequate funds to close this project; the final retention amount of $188,625 will be paid from account number 401-0000-20600.

CONSENT CALENDAR ITEM NO. 15
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BACKGROUND/ANALYSIS
On June 5, 2018, Council awarded a $2,800,000 design-build contract to Spohn Ranch.

Amendment No. 1 was approved by Council on March 19, 2019, amending the contract sum by $817,000, for a total not to exceed amount of $3,617,000 and extended the term to February 29, 2020.

Amendment No. 2 was approved by Council on May 21, 2019, to remove irrigation and landscaping services for the X-Park, amending the contract sum by $106,000 for a revised not to exceed amount of $3,511,000.

Amendment No. 3 was executed on February 25, 2020, and extended the contract term to June 30, 2021.

Amendment No. 4 was approved by Council on September 15, 2020, to amend the contract sum for a total not to exceed amount of $3,714,126 due to an amendment to the Scope of Services and extension of term to December 31, 2021.

On December 1, 2020, a Notice to Proceed was issued with a 250-working day completion time starting on December 1, 2020, and ending on December 1, 2021. The project was deemed substantially complete on March 23, 2022. Liquidated damages are recommended in the amount of $34,000. The recommended liquidated damages have been factored into Contract Change Order No. 2.

Contract Change Order No. 1 was issued to allow for standard power outlets with ground fault circuit interrupter (GFI) protection on light poles, 1” conduit receptacles and wiring, additional administrative time, and additional bonding.

Contract Change Order No. 2 was issued to allow for credit for change or vert ramp location, removal and disposal of 4 trees, installation of 4” conduit under parking lot and sidewalk, additional 6’ fence, additional 4’ fence, wiring and conduit for four (4) 5G poles, credit for wiring that wasn’t installed, credit for guard rails not installed, credit for turn down wall not installed, and 68 days of liquidated damages at $500/day.

ALTERNATIVES
Staff does not recommend an alternative.

Prepared by: Carley Escarrega, Management Assistant
Approved by: Bryan McKinney, P.E., Public Works Director/City Engineer Attachment: 1. Vicinity Map
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ATTACHMENT 1
N
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City of La Quinta
CITY COUNCIL MEETING: June 20, 2023

STAFF REPORT
AGENDA TITLE: ADOPT RESOLUTION TO APPROVE THE CITY’S PROJECT LIST FOR FISCAL YEAR 2023/24 FOR SENATE BILL 1 - ROAD REPAIR AND ACCOUNTABILITY ACT 2017 FUNDING

RECOMMENDATION
Adopt a resolution to approve the City’s project list for fiscal year 2023/24 to receive estimated funds from Senate Bill 1, Road Repair and Accountability Act of 2017; and supersede existing resolution 2023-009.

EXECUTIVE SUMMARY
• On April 4, 2023, Council provided direction on Senate Bill 1 (SB-1) funding through the Capital Improvement Program (CIP) study session discussion. • To receive the SB-1 funds, the City must comply with the following requirements:
o Demonstrate an annual Maintenance of Effort (MOE) expenditure from the City’s General Fund in the amount of $1,786,109; and
o Submit a Council resolution which lists the projects to be funded in the following fiscal year with SB-1 funds, including a project description, location, schedule of completion, and estimated useful life of the improvements. • On April 18, 2023, the City Council adopted Resolution No. 2023-009 to approve the City’s project list for fiscal year (FY) 2023/24 to receive estimated funds from SB-1, Road Repair and Accountability Act of 2017.
• The City’s estimated funds apportionment for FY 2023/24 was revised by the state in late May from $949,613 to $917,400, and Staff has revised the project list for FY 2023/24 to the $917,400 estimate.

FISCAL IMPACT
The following table lists the total amount to be expended per fiscal year based on the currently identified SB-1 funded CIP projects:
2023/24 2024/25 2025/26 2026/27 2027/28 TOTAL
$917,400 $959,109 $950,000 $997,088 $988,171 $4,811,768 CONSENT CALENDAR ITEM NO. 16
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BACKGROUND/ANALYSIS
SB-1 created new permanent funding for road maintenance and rehabilitation projects.

Each city and county must submit a project list to the California Transportation Commission by July 1, 2023, to be eligible for SB-1 funding for the following FY.

On April 18, 2023, the City Council adopted Resolution No. 2023-009 which approved the City’s SB-1 project list for FY 2023/24. In late May the City’s estimated funds apportionment for FY 2023/24 was revised by the state from $949,613 to $917,400, and Staff has revised the project list for FY 2023/24 to the $917,400 estimate by reducing the proposed SB-1 funding for the Avenue 50 Widening Improvements (Jefferson Street to Madison Street) from $471,613 to $439,400.

The revised draft FY 2023/24 through 2027/28 CIP proposes using SB-1 funding for the following transportation improvements:

Project Description 2023/24 2024/25 2025/26 2026/27 2027/28 Total Washington Street Sidewalk
Improvements (Avenue 50 to
Calle Tampico) $478,000 $478,000
Avenue 50 Widening
Improvements (Jefferson
Street to Madison Street) $439,400 $579,109 $1,018,509
Frances Hack Lane (Avenida
Bermudas to Cul-de-sac) $380,000 $380,000
Cove Area Slurry Seal
Improvements Phase 2 $950,000 $950,000
Citywide Arterial Slurry Seal
Improvements $997,088 $997,088
Washington Street
Pavement Rehabilitation
Project (Sagebrush Lane to
Fred Waring Drive)
$988,171 $988,171
TOTAL: $917,400 $959,109 $950,000 $997,088 $988,171 $4,811,768 The Washington Street Sidewalk Improvements (Avenue 50 to Calle Tampico) and Avenue 50 Widening Improvements (Jefferson Street to Madison Street) are proposed to receive SB-1 funds in FY 2023/24. The improvements on Washington Street include construction of a 6-foot sidewalk from Avenue 50 to Calle Tampico. The improvements on Avenue 50 include widening Avenue 50 from Jefferson Street to Madison Street to the general plan roadway conditions, including a multi-use trail along the north side.

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ALTERNATIVES
Council may elect not to approve the revised SB-1 Resolution and decline SB-1 funds.

Prepared by: Julie Mignogna, Management Analyst
Approved by: Bryan McKinney, P.E., Public Works Director/City Engineer 447 Click Here to Return to Agenda
RESOLUTION NO. 2023 – XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LA QUINTA, CALIFORNIA, ADOPTING A LIST OF
PROJECTS FOR FISCAL YEAR 2023-24 FUNDED BY SB
1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF
2017
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of the City of La Quinta (City) are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and
WHEREAS, the City, will receive an estimated $917,400 in RMRA funding in Fiscal Year 2023-24 from SB 1; and
WHEREAS, this is the seventh year in which the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and
WHEREAS, the City has undergone a robust public process to ensure public input into our community’s transportation priorities/the project list through three (3) public meeting opportunities; and
WHEREAS, the City used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the community’s priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate one street/road project in the City this year and other similar projects into the future; and WHEREAS, the City’s current Pavement Management Plan found that the City’s streets and roads are in a “very good” condition and are currently ranked with an overall 448 Click Here to Return to Agenda
Resolution No. 2023 - xxx
The Road Repair and Accountability Act of 2017 – Fiscal Year 2023-24 (SB-1) Adopted: June 20, 2023

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80 Pavement Condition Index (PCI). This revenue will assist the City in maintaining the very good roadway system condition over the next decade and beyond; and WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co-benefits statewide.

WHEREAS, on June 20, 2023, by a majority vote of the City Council of the City of La Quinta, California, the following projects were selected:

Project Name Fiscal Year Amount

1. Washington Street Sidewalk Improvements 2023/24 $478,000

2. Avenue 50 Widening Improvements 2023/24 $439,400
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows:

SECTION 1. The foregoing recitals are true and correct.

SECTION 2. The following list of proposed projects will be funded in-part or solely with fiscal year 2023-24 Road Maintenance and Rehabilitation Account revenues:

Project Name Fiscal Year Amount

1. Washington Street Sidewalk Improvements 2023/24 $478,000 Title: Washington Street Sidewalk Improvements (Avenue 50 to Calle Tampico) Description: The proposed improvements along The improvements on Washington Street include construction of a 6 ft. sidewalk from Avenue 50 to Calle Tampico.

Estimated Useful Life: 20 Years.

Project Name Fiscal Year Amount

2. Avenue 50 Widening Improvements 2023/24 $439,400
Title: Avenue 50 Widening Improvements (from Jefferson Street to Madison Street) Description: The proposed improvements on Avenue 50 include widening Avenue 50 from Jefferson Street to Madison Street to the general plan roadway conditions, including construction of a multi-use trail along the north side.

Estimated Useful Life: 20 Years.
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Resolution No. 2023 - xxx
The Road Repair and Accountability Act of 2017 – Fiscal Year 2023-24 (SB-1) Adopted: June 20, 2023

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SECTION 3. This resolution shall go into effect upon adoption and shall supersede Resolution No. 2023-009 adopted on April 18, 2023.

PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City Council held on this day of , , by the following
vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________
LINDA EVANS, Mayor
City of La Quinta, California
ATTEST:
_________________________
MONIKA RADEVA, City Clerk
City of La Quinta, California
APPROVED AS TO FORM:
___________________________
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
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City of La Quinta
CITY COUNCIL MEETING: June 20, 2023

STAFF REPORT
AGENDA TITLE: ADOPT RESOLUTION TO APPROVE FISCAL YEAR 2023/24

INVESTMENT POLICY

RECOMMENDATION
Adopt a resolution to approve fiscal year 2023/24 Investment Policy.

EXECUTIVE SUMMARY
• The California Government Code requires the City Treasurer to submit an annual statement of investment policy.
• As part of their work plan, and as stated in Section XVIII of the City’s Investment Policy (Policy), The Financial Advisory Commission (FAC) is asked to review the Policy annually.
• The FAC reviewed and approved the draft Policy for fiscal year (FY) 2023/24 on May 10, 2023.

FISCAL IMPACT - None.

BACKGROUND
The City has been awarded the Investment Policy Certificate of Excellence from the Association of Public Treasurers of the United States and Canada (APT US&C), and has been certified by the California Municipal Treasurers Association (CMTA). In addition, there were no new regulatory changes in FY 2022/23 that affected the City’s policy.

Therefore, staff recommends no significant changes to the current policy. The following minor edits, along with punctuation or format changes and updates to the dates, are identified as red-lined in Attachment 1:
• Section IX Authorized Financial Dealers: In the last paragraph, added “or deposit” so that the sentence reads “The City shall not invest or deposit in excess of the FDIC insured amount in banking institutions which do not disclose to the City a current listing of securities pledged for collateralization in public monies.” • Edits to Appendix C – Segregation of Major Job Responsibilities: Reflects updated job titles.

CONSENT CALENDAR ITEM NO. 17
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• Edit to Appendix D-Approved Financial Institutions: Bank of the West was acquired by BMO and banking accounts are expected to transition to the new name in the Fall of 2023, therefore BMO Commercial Bank is being added to the list.

ALTERNATIVES
The policy has been recognized by APT US&C and CMTA as being comprehensive as written and is in compliance with California Government Code, therefore no alternatives are recommended at this time.

Prepared by: Rosemary Hallick, Financial Services Analyst Approved by: Claudia Martinez, Finance Director
Attachment: 1. Draft Investment Policy for Fiscal Year 2023/24 (red-lined)

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RESOLUTION NO. 2023 – XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF LA QUINTA, CALIFORNIA APPROVING AND
ADOPTING FISCAL YEAR 2023/2024 INVESTMENT
POLICY
WHEREAS, the general purpose of the Investment Policy is to provide the rules and standards users must follow in investing funds of the City of La Quinta; and WHEREAS, the primary objectives, in order of priority, of the City of La Quinta’s investment activity shall be:

Safety of principal is the foremost objective of the investment program.

Investments of the City of La Quinta shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio.

The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated.

The investment portfolio shall be designed with the objective of attaining a market rate of return or yield throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs; and WHEREAS, authority to manage the City of La Quinta’s investment portfolio is derived from the City’s municipal code, management responsibility for the investment program is delegated to the City Treasurer, who shall establish and implement written procedures for the operation of the City’s investment program consistent with the Investment Policy for each Fiscal Year; and
WHEREAS, the Investment Policy will be adopted before the end of June of each year and amended as considered necessary.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta as follows:

SECTION 1. This Resolution supersedes all prior Investment Policy resolutions adopted by the City Council.

SECTION 2. The City Council hereby adopts the Fiscal Year 2023/2024 Investment Policy attached hereto as “Exhibit A” and incorporated herewith by this reference.

SECTION 3. Severability – if any provisions of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other 453 Click Here to Return to Agenda
Resolution No. 2023-XXX
Investment Policy for Fiscal Year 2023/2024
Adopted: June 20, 2023

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provisions or applications of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable.

The City Council hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof.

SECTION 4. This Resolution shall become effective upon adoption. The Investment Policy adopted by this Resolution shall go into effect July 1, 2023.

PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council, held on this 20th day of June, 2023, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
________________________
LINDA EVANS, Mayor
City of La Quinta, California
ATTEST:
_________________________
MONIKA RADEVA, City Clerk
City of La Quinta, California
APPROVED AS TO FORM:
___________________________
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
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INVESTMENT POLICY

EXHIBIT A
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Fiscal Year 2023-2024 Table
of Contents
Section Topic Page
Executive Summary 1
I General Purpose 2
II Investment Policy 2
III Scope 2
IV Objectives 3
V Maximum Maturities 5
VI Prudence 5
VII Authority 5
VIII Ethics and Conflicts of Interest 6
IX Authorized Financial Dealers and Institutions 6
X Permissible Deposits and Investments 7
XI Investment Pools 10
XII Payment and Custody 10
XIII Interest Earning Distribution Policy 11
XIV Internal Controls and Independent Auditors 11
XV Reporting Standards 12
XVI Review of Investment Portfolio 13
XVII Financial Advisory Commission – City of La Quinta 13 XIII Investment Policy Adoption 13
Appendices Topic Page
A Municipal Code Ordinance 2.70 – Financial Advisory Commission 14 B Municipal Code Ordinance 3.08 – Investment of Moneys and Funds 16 C Segregation of Major Investment Responsibilities 18
D Listing of Approved Financial Institutions 19
E Investment Management Process and Risk 20
F Glossary 22
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CITY OF LA QUINTA
Investment Policy Fiscal
Year 2023/2024

EXECUTIVE SUMMARY
The general purpose of this Investment Policy is to provide the rules and standards that must be followed in administering the City of La Quinta's (the “City”) deposits and investments.

The City's Investment Policy conforms to all state and local statutes and applies to all deposits and investments of the City, with the exception of bond proceeds and those noted in section III herein.

It is the City's policy to deposit and invest public funds in a manner that shall provide safety of principal, liquidity to meet the City’s obligations and requirements that may be reasonably anticipated, and a risk-based market rate of return.

Authority to manage the City's investment portfolio is derived from the City Municipal Code.

Management responsibility for the investment program is delegated to the City Treasurer, who shall establish and implement written procedures for the operation of the City's investment program consistent with the Investment Policy.

The City Manager, City Treasurer, and City employees involved in the City's banking and investment process shall conduct the City's business in an ethical manner and refrain from any activity or relationship that may be, or have the appearance of, a conflict of interest.

The Investment Policy shall be adopted by resolution of the La Quinta City Council on an annual basis, before the end of each fiscal year (June).
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City of La Quinta
Statement of Investment Policy July 1, 2023 through June 30, 2024 Adopted by the City Council on June 206, 2023
I. GENERAL PURPOSE
The general purpose of this document is to provide the rules and standards that must be followed in administering the City of La Quinta's deposits and investments.

II. INVESTMENT POLICY
It is the policy of the City of La Quinta to deposit and invest public funds in a manner that shall conform to all State and local statutes governing the investment of public funds and set forth the permissible deposits and investments of the City's funds and the limitations thereon.

III. SCOPE
Except noted below, this Investment Policy applies to all deposits and investments of the City of La Quinta, the Successor Agency to the City of La Quinta Redevelopment Agency, and the City of La Quinta Financing and Housing Authorities. These funds are reported in the City's Annual Comprehensive Financial Report (ACFR) and include all funds within the following fund types:
 General
 Special Revenue
 Capital Projects
 Debt Service
 Enterprise
 Internal Service
 Trust and Agency
 Any new fund types and fund(s) that may be created.

Financial assets and investment activity not subject to this policy The City's Investment Policy does not apply to the following:
 Cash and Investments raised from Conduit Debt Financing;  Funds held in trust in the City's name in pension or other post-retirement benefit programs;
 Cash and Investments held in lieu of retention by banks or other financial institutions for construction projects;
 Short or long-term loans made to other entities by the City or Agency;  Short term (Due to/from) or long term (Advances from/to) obligations made either between the City and its funds or between the City and Agency; and  Investment of bond proceeds. The City's Investment Policy shall not govern bond proceeds and bond reserve fund investments. California Code Section 458 Click Here to Return to Agenda

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5922(d) governs the investment of bond proceeds and reserve funds in accordance with bond indenture provisions.

Arbitrage Requirement - The US Tax Reform Act of 1986 requires the City to perform arbitrage calculations and return excess earnings to the US Treasury from investments of proceeds of bond issues sold after the effective date of this law. These arbitrage calculations may be contracted with an outside source to provide the necessary technical assistance to comply with this regulation. Investable funds subject to the 1986 Tax Reform Act will be kept segregated from other funds and records will be kept in a fashion to facilitate the calculations.

The City's investment position relative to the arbitrage restrictions is to continue pursuing the maximum yield on applicable investments while ensuring the safety of capital and liquidity, and to rebate excess earnings, if necessary.

IV. OBJECTIVES
The objectives of the City's investment activity, in order of priority and importance, are:

A. Safety of Principal
Safety of principal is the foremost objective of the City's investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of principal of the overall portfolio in accordance with the permissible deposits and investments.

The City shall endeavor to preserve its investment principal by making only permissible deposits and investments, undertaken in a controlled manner to minimize the possibility of loss or misappropriation through malfeasance or otherwise. Investments not backed by the full faith and credit of the United States Government shall be diversified by allocating assets between different types of permissible investments, maturities, and issuers as a means to mitigate credit risk and interest rate risk. Investment in any single security type or single financial institution shall be limited to the maximum percentages and/or dollar amounts as noted in Section X.

1. Credit Risk is the risk of loss from the failure of the security issuer or backer. Credit risk may be mitigated by:
• Limiting investments to investment grade securities as permitted in Section X; and
• Diversification- reducing concentration risk by limiting the total amount invested in individual issuers of securities in the investment portfolio so that potential losses due to issuer failure or securities downgrades may be minimized.

2. Interest Rate Risk is the risk that market values of securities in the portfolio will decline due to changes in general interest rates. Interest rate risk may be mitigated by:
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• Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity; and
• Investing operating funds primarily in shorter-term securities.

3. Liquidity Risk is the risk that a security cannot be liquidated because of its unique features or structure or because it is thinly traded. Liquidity risk is not a material issue for the City's portfolio because of the permissible deposits and investments (see Section X). A discussion of the City's investment process and risk is presented in Appendix E.

B. Provide Liquidity
The investment portfolio shall remain sufficiently liquid to meet all of the City's cash needs that may be reasonably anticipated. This is accomplished by structuring the portfolio so that sufficient liquid funds are available to meet anticipated demands. Furthermore, since all possible cash needs cannot be anticipated the portfolio should be diversified and consist of securities with active secondary or resale markets.

The City's policy is to generally hold securities and other investments to maturity. However, securities may be sold prior to maturity under certain circumstances as follows:
• A security with declining credit quality can be sold early to minimize loss of principal. • Unanticipated liquidity needs of the portfolio require that one or more securities be sold. • When a sale/repurchase is fiscally advantageous based on market conditions and fits the needs of the portfolio
C. Yield a Risk-Based Market Rate of Return
The City's investment portfolio shall be structured with the objective of yielding a risk-based market rate of return throughout budgetary and economic cycles. Return on investment is less important than the safety and liquidity objectives described above.

The City's Investment Policy does not specify a single benchmark as a goal or target yield for a rate of return on its investment portfolio. The portfolio's rates of return will be influenced by several factors, including actions by the Federal Reserve Board, the marketplace, and overall economic perceptions and conditions.

Performance Standards: As a basis for comparison only, the Treasurer's quarterly reports will display the rates of return on the three-month Bill, six-month Bill, the one and two-year U.S.

Treasury Note, and the yield for the State Treasurer's Local Agency Investment Fund (LAIF).

The Treasurer may use these or any other published rates of return that the Treasurer deems appropriate for comparison to the return on the City's investment portfolio. 460 Click Here to Return to Agenda

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The investment portfolio shall be designed with the objective of obtaining a market rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs.

V. MAXIMUM MATURITIES
It is the City's policy to generally hold securities and other investments until maturity. This buy-andhold policy shall not prevent the sale of a security as listed in section IV.B The general buy-and-hold strategy requires that the City's investment portfolio be structured so that sufficient liquid funds are available from maturing investments and other sources to meet all reasonably anticipated cash needs.

The City shall follow Title 5 of the California Government Code §53601 (the “State Code”) regarding maximum maturities, in that “no investment shall be made in any security…that at the time of the investment has a term remaining to maturity in excess of five years”.

VI. PRUDENCE and FIDUCIARY DUTY
The City shall follow the State Code §53600.3 regarding fiduciary duty and the Prudent Investor Standard as follows:

Except as provided in subdivision (a) of §27000.3, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.

VII. AUTHORITY
Authority to manage the City's investment portfolio is derived from Chapter 3.08 of the City's Municipal Code. Management responsibility for the investment program is delegated to the City Treasurer for a period of one year pursuant to the City Council's annual adoption of the Investment Policy.

The City Treasurer shall establish written procedures for the operation of the investment program consistent with the Investment Policy. Procedures should include reference to safekeeping, wire transfer agreements, banking service contracts, and collateral/depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may
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engage in an investment transaction except as provided under the terms of this Investment Policy (see Appendix C) and the procedures established by the City Treasurer. The City Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinateofficials.

VIII. ETHICS AND CONFLICTS OF INTEREST
The City Manager, City Treasurer, and City employees involved in the City's banking and investment process shall conduct the City's business in an ethical manner and refrain from any activity or relationship that may be, or have the appearance of, a conflict of interest. The City will maintain compliance with the procedures set forth in the Conflicts of Interest and Acceptance of Gifts and other Gratuities section of the City of La Quinta Personnel Manual and the City’s Municipal Code Chapter 2.60 Conflicts of Interest. Any questionable activity or relationship shall be reported immediately; reporting must be made in accordance with the personnel policies of the City and, until resolved, the officer or employee shall refrain from participating in the City's business related to the matter.

The City Manager, City Treasurer, and City employees may conduct personal business with banks, brokers, and other financial institutions that are authorized to conduct business with the City provided that the terms of the activity to the accountholder with the City are the same as those that are available to the public in general, or to all employees as a result of contract negotiations.

IX. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The City Treasurer maintains a listing of financial institutions which are approved for direct investment purposes, as well as a list of approved broker/dealers.

1. Broker/Dealers who desire to become bidders for direct investment transactions must supply the City with the following:
• Current audited financial statements;
• Proof of Financial Industry Regulatory Authority (FINRA) Certification; • Proof of State of California registration;
• Resume of financial broker; and
• Completion of the City of La Quinta Broker/Dealer Questionnaire,which contains a certification of having read the City's Investment Policy.

The City Treasurer or designee shall evaluate the documentation submitted by the broker/dealer and independently verify existing reports on file for any firm and/or individual(s) conducting investment related business.

The City Treasurer or designee may also contact the following agencies during the verification process:
• Financial Industry Regulatory Authority (FINRA) Public Disclosure Report File (1- 800-289-9999).
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• State of California Department of Financial Protection and Innovation (1- 866-275- 2677).

A professional investment manager or management firm, if engaged by the City pursuant to Section X of this policy, may utilize their own list of approved broker/dealers on the condition that any such list is provided to the City upon request.

All Broker/Dealers and financial institutions that provide investment services will be subject to City Council approval.

An annual review of the financial condition and registrations of approved broker/dealers will be conducted by the City Treasurer or designee. Current audited financial statements and/or System and Organizational Controls (SOC- 1 and/or SOC-2) internal control reports may be maintained on file for each financial institution and broker/dealer with which the City conducts business. Each mutual fund shall provide a prospectus and statement of additional information.

2. Financial Institutions will be required to meet the following criteria in order to receive City funds for deposit or investment (see Appendix D, "Listing of Approved Financial Institutions"):
• Insurance - Public Funds shall be deposited only in financial institutions having accounts insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Share Insurance Fund (NCUSIF).
• Disclosure - Each financial institution maintaining invested funds in excess of the FDIC insured amount shall furnish the City a copy of the most recent Call Report (Consolidated Reports of Condition and Income) if requested. These reports can also be found at: https://cdr.ffiec.gov/public/ManageFacsimiles.aspx The City shall not invest or deposit in excess of the FDIC insured amount in banking institutions which do not disclose to the city a current listing of securities pledged for collateralization in public monies.

X. PERMISSIBLE DEPOSITS AND INVESTMENTS
It is the City’s policy to follow Title 5 of the California Government Code (the “State Code”) in regard to allowable securities, and to be sufficiently diversified with regard to security type and issuer. Permissible deposits and investments, as allowed by Chapter 4, Part 1, Division 2, Title 5 (hereinafter cited by §), include, but are not limited to, the following list. The State Code can be directly referenced at https://leginfo.legislature.ca.gov/ 463 Click Here to Return to Agenda

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Checking, Savings, and Sweep Accounts - The City will only maintain checking and savings accounts with state or national banks, savings associations, federal associations, and/or credit unions in accordance with §53635.2.
• Collateralization: The amount of the City's deposits or investments not insured by the FDIC shall be collateralized by securities in accordance with §53652. The Treasurer may invest in an interest-bearing active deposit account as approved in §53632. The deposit account must be collateralized with securities that are in accordance with §53632.5. In addition, the market value of the collateralized securities must be maintained in accordance with
§53652 and be held by a custodian in accordance with the requirements of §53656. The proportion of the City's share of the deposit account shall be determined in accordance with §53658.

Certificates of Deposit (Negotiable and Non-negotiable) – As authorized in §53601(i), the City may invest in Non-Negotiable and Negotiable Certificates of Deposits (CD) up to 30% of the overall portfolio. In no instance shall a CD or combined CDs with a single issuer exceed the FDIC or NCUSIF insurance limit of $250,000.

U.S. Treasury Bills, Notes, and Bonds – As authorized in §53601(b), the City may invest in U.S. Treasury bills, notes, and bonds directly issued and backed by the full faith and credit of the U.S. Government. The City's Investment Policy provides for investments in U.S.

Treasury issues of 100% of the portfolio.

U.S. Government Agency Securities and Federal Government Securities – As authorized in §53601(f), the City may invest in securities issued by U.S. Government instrumentalities and agencies (commonly referred to as government sponsored enterprises or GSE's). These securities may not be backed by the full faith and credit of the U.S.

Government (with the exception of Government National Mortgage Association (GNMA) securities). Examples of GSE's include Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC), Federal Home Loan Bank (FHLB), Federal Farm Credit Banks Funding Corporation (FFCB), Federal Agricultural Mortgage Corporation (FAMC), Tennessee Valley Authority (TVA), and GNMA securities.

The City's Investment Policy allows investment only in securities of GNMA, FNMA, FHLMC, FHLB, and FFCB. For Fiscal Year 2022-23, the maximum face amount per issuer is $20 million and the maximum face amount per purchase is $10 million.

Prime Commercial Paper – As authorized in §53601(h), a portion of the City's portfolio may be invested in commercial paper of the highest rating as provided for by a nationally recognized statistical rating organization (NRSRO) such as Moody’s, Fitch, or Standard & Poor’s (S&P). There are a number of other qualifications regarding investments in commercial paper based on the financial strength and size of the corporation and the size of the investment. The City limits on prime commercial paper are as defined in the State Code. 464 Click Here to Return to Agenda

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Local Agency Investment Fund (LAIF) – As authorized in §16429.1 and by LAIF policies, local government agencies are each authorized to invest up to the deposit limit as designated by the California State Treasurer. The City Treasurer may not invest more than the maximum amount per account as allowed byLAIF.

Money Market Mutual Funds – As authorized in §53601(l), local agencies are authorized to invest in shares of beneficial interest issued by diversified management companies (mutual funds) in an amount not to exceed 20% of the agency's portfolio. There are a number of other qualifications and restrictions regarding allowable investments in corporate notes and shares of beneficial interest issued by mutual funds which include (1) attaining the highest ranking or the highest letter and numerical rating provided by not less than two of the three largest nationally recognized rating services, or (2) having an investment advisor registered with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations and with assets under management in excess of five hundred million dollars ($500,000,000).

Corporate Notes – As authorized in §53601(k), local agencies may invest in corporate notes. The notes must be issued by corporations organized and operating in the United States or by depository institutions licensed by the United States or any other state and operating in the United States. The City's Investment Policy allows investment in corporate notes authorized by the Government Code with the following limitations:
• Maximum 30% of the portfolio;
• Maturities shall not exceed five years from date of purchase; • Eligible notes shall be regularly quoted and traded in the marketplace; • Eligible notes shall be in a rating category of "AA" or better by an NRSRO; • The maximum aggregate investment in each issuer shall not exceed $5 million (PAR value), or no more than 10% of the total investment assets in the commercial paper and the medium-term notes of any single issuer.

Professionally Managed Account(s) – The City Treasurer may place up to 50% of the portfolio with a professional portfolio management/investment management firm (firm). The firm will be approved by the City Council based upon the City Treasurer's recommendation pursuant to completion of a public request for proposal (RFP). The firm shall have:
• An established professional reputation for asset or investment management; • Knowledge and working familiarity with State and Federal laws governing and restricting the investment of public funds;
• Substantial experience providing investment management services to local public agencies whose investment policies and portfolio size are similar to those of the City; • Professional liability (errors and omissions) insurance and fidelity bonding in such amounts as are required by the City; and
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• Registration with the Securities and Exchange Commission under the Investment Advisers Act of 1940
Before engagement by the City and except as may be specifically waived or revised, the firm shall commit to adhere to the provisions of the City's Investment Policy with the following exceptions:
• The firm may be granted the discretion to purchase and sell investment securities in accordance with this Investment Policy;
• The firm is not required to adhere to a buy-and-hold policy; and • The firm does not need City Manager or City Treasurer approval to make permissible investments.

Local Agency Bonds and California Local Agency Obligations – As authorized in §53601(a) and §53601(e), the City may invest in California local agency obligations. §53601(a) pertains to investing in bonds issued by a local agency, or by the department, board, agency or authority of the local agency.
§53601(e) pertains to investing in bonds and other defined indebtedness of any local agency, or department, board, agency or authority of the local agency within the State of California. The Agency obligations must be invested in the long-term rating category of A or better by an NRSRO.

In the case of an initial public offering, including refinancings, the Treasurer may purchase directly from the Bond Underwriter. In the case of secondary issues, the Treasurer will rely on the approved Broker/Dealers.

XI. INVESTMENT POOLS
There are three (3) types of investment pools:
• State-run pools (e.g., LAIF);
• Pools that are operated by a political subdivision where allowed by law and the political subdivision is the trustee (e.g., County Pools, and Joint Powers Authorities such as the California Asset Management Program (CAMP)); and
• Pools that are operated for profit by third parties (e.g. money market funds).

The City's Investment Policy permits investment in pools and money market funds as authorized by State Code §16429.1, §53601(l) and §53601(p).

XII. PAYMENT AND CUSTODY
The City shall engage qualified third-party custodians to act in a fiduciary capacity to maintain appropriate evidence of the City's ownership of securities and other eligible investments. Such custodians shall disburse funds received from the City for a purchase to the broker, dealer or seller only after receiving evidence that the City has legal, record ownership of the securities. 466 Click Here to Return to Agenda

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Even though ownership is evidenced in book-entry form rather than by actual certificates, this procedure is commonly referred to as the delivery versus payment (DVP) method for the transfer of securities.

XIII. INTEREST EARNING DISTRIBUTION POLICY
Interest earnings are generated from pooled investments and specific investments. The following provisions apply to the calculation and distribution of interest earnings.

1. Pooled Investments – It is the general policy of the City to pool all available operating cash of the City of La Quinta, Successor Agency to the City of La Quinta Redevelopment Agency, La Quinta Financing Authority, and La Quinta Housing Authority, and to allocate interest earnings as a payment to each fund of an amount based on the month-end cash balance included in the common portfolio for the earning period.

2. Specific Investments – Specific investments purchased by a fund shall incur all earnings and expenses to that particular fund.

XIV. INTERNAL CONTROLS AND INDEPENDENT AUDITOR
The City Treasurer shall establish a system of internal controls to accomplish the following objectives:
• Safeguard assets;
• The orderly and efficient conduct of its business, including adherence to management policies;
• Prevention or detection of errors and fraud;
• The accuracy and completeness of accounting records; and • Timely preparation of reliable financial information.

While no internal control system, however elaborate, can guarantee absolute assurance that the City's assets are safeguarded, it is the intent of the City's internal control to provide a reasonable assurance that management of the investment function meets the City's objectives.

The internal controls shall address the following:
• Control of collusion. Collusion is a situation where two or more employees are working in conjunction to defraud their employer.
• Separation of transaction authority from accounting and record keeping. By separating the person who authorizes or performs the transaction from the people who record or otherwise account for the transaction, a separation of duties is achieved. • Custodial safekeeping. Securities purchased from any bank or dealer including appropriate collateral (as defined by State Law) shall be placed with an independent third party for custodial safekeeping.
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place. Delivered securities must be properly safeguarded against loss or destruction.

The potential for fraud and loss increases with physically delivered securities. • Clear delegation of authority to subordinate staff members. Subordinate staff members must have a clear understanding of their authority and responsibilities to avoid improper actions. Clear delegation of authority also preserves the internal control structure that is contingent on the various staff positions and their respective responsibilities as outlined in the Segregation of Major Investment Responsibilities (Appendix C). • Written confirmation of telephone transactions for investments and wire transfers. Due to the potential for error and improprieties arising from telephone transactions, all telephone transactions shall be supported by written communications or electronic confirmations and approved by the appropriate person. Written communications may be via fax or email if on letterhead and the safekeeping institution has a list of authorized signatures.

Fax correspondence must be supported by evidence of verbal or written follow- up. • Development of a wire transfer agreement with the City's bank and third-party custodian.

This agreement should outline the various controls, security provisions, and delineate responsibilities of each party making and receiving wire transfers.

The system of internal controls developed by the City shall be reviewed annually by the independent auditor in connection with the annual audit of the City's Financial Statements. The independent auditor's letter on internal control over financial reporting and compliance as it pertains to cash and investments, if any, shall be directed to the City Manager who will direct the City Treasurer to provide a written response to the independent auditor's letter. The auditor's letter, as it pertains to cash and investment activities, and the City Treasurer's response shall be provided to the City's Financial Advisory Commission for their consideration. Following the completion of each annual audit, the independent auditor shall meet with the Financial Advisory Commission and discuss the auditing procedures performed and the review of internal controls for cash and investment activities. See Appendix C, "Segregation of Major Investment Responsibilities."
XV. REPORTING STANDARDS
The City Treasurer shall submit a quarterly Treasurer’s Report to the City Council and the Financial Advisory Commission that includes all cash and investments under the authority of the Treasurer. In addition, the City Treasurer or designee shall ensure all investment transactions are reported on a monthly basis as they occur throughout the quarter. The Treasurer's Report shall summarize cash and investment activity and changes in balances and include the following:
• A certification by the City Treasurer;
• A listing of purchases and sales/maturities of investments; 468 Click Here to Return to Agenda

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• Cash and Investments categorized by authorized investments; LAIF will also be provided quarterly and show yield and maturity;
• Comparison of month-end actual holdings to Investment Policy limitations; • A two-year list of historical interest rates.

XVI. REVIEW OF INVESTMENT PORTFOLIO
The securities held by the City must be in compliance with this Policy at the time of purchase.

Due to market conditions, some securities may no longer comply subsequent to the date of purchase, therefore a quarterly review of the portfolio will be conducted to identify any securities which may have fallen out of compliance. Any major incidences of noncompliance identified during such review will be reported to the Financial Advisory Commission for confirmation of staff course of action.

XVII. FINANCIAL ADVISORY COMMISSION - CITY OF LA QUINTA The Financial Advisory Commission (FAC) is composed of seven members from the public that are appointed by the City Council. The FAC’s membership, qualifications, and powers and duties are prescribed in Chapter 2.70 of the La Quinta Municipal Code and included in this policy as Appendix A.

On an annual basis, in conjunction with the Political Reform Act disclosure statutes, or at any time if a change in circumstances warrants, each commissioner will provide the City Council with a disclosure statement which identifies any matters that have a bearing on the appropriateness of that member's service on the FAC. All commissioners shall report annually to the City Clerk on Form 700, Statement of Economic Interests, any activities, interests, or relationships that may be, or have the appearance of, a conflict of interest.

XVIII. INVESTMENT POLICY ADOPTION
The City's Investment Policy will be reviewed annually by the City's Financial Advisory Commission and the City Treasurer. The Financial Advisory Commission will forward the Investment Policy with any revisions to the City Manager and City Attorney for their review and comment. A joint meeting will be held with the Financial Advisory Commission, City Manager, City Attorney, and City Treasurer to review the Investment Policy and any comments prior to submission to the City Council for their consideration. The Investment Policy shall be adopted by resolution of the City Council annually before the end of June of each year. 469 Click Here to Return to Agenda

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City of La Quinta Municipal Code Chapter 2.70

FINANCIAL ADVISORY COMMISSION

2.70.010 General rules regarding the financial advisory commission. Except as set out below, see Chapter 2.06 for general provisions.

2.70.020 Number of members.

The financial advisory commission ("FAC") shall initially consist of seven members appointed by, and serving at the will of, the city council. The city council may increase or decrease the number of members from time to time but in no event shall the membership exceed nine members or be less than five members.

2.70.30 Qualifications of members.

A. In addition to the qualification requirements set forth in Section 2.06.040 of this code, a minimum of three of the members shall be finance professionals and shall have a verifiable background in finance and/or securities, preferably with knowledge and/or experience in markets, financial controls and accounting for securities.

B. For those applying for the professional position, background information will be requested, and potential candidates must agree to a background check and verification by the city manager or designee.

2.70.040 Powers and duties.

A. The principal functions of the FAC are:

1. Review at least annually the city's investment policy and recommend appropriate changes;

2. Review at least quarterly the treasury report and note compliance with the investment policy and adequacy of cash and investments for anticipated obligations;

3. Receive and consider other reports provided by the city treasurer;

4. Meet with the independent auditor after completion of the annual audit of the city's financial statements, and receive and consider the auditor's comments on auditing procedures, internal controls, and findings for cash and investment activities;

5. Review at least annually the revenue derived from the one percent (1%) transactions and use tax instituted by voters in November 2016 to ensure these funds are used to provide services, programs and capital projects in the city of La Quinta.

APPENDIX A
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6. Serve as a resource for the city treasurer on matters such as proposed investments, internal controls, use of or change of financial institutions, custodians, brokers and dealers.

B. The FAC will report to the city council after each meeting either in person or through correspondence at a regular city council meeting. (Ord. 556 § 1, 2017)

2.70.050 References to the Investment Advisory Board.

If any other chapter(s) or section(s) in this code refers to the Investment Advisory Board, that chapter(s) or section(s) shall be deemed to refer to the Financial Advisory Commission established by the ordinance amending chapter 2.70 of this code. 471 Click Here to Return to Agenda

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City of La Quinta Municipal Code Chapter 3.08

INVESTMENT OF MONEYS AND FUNDS

3.08.010 Investment of city moneys and deposit of securities.

Pursuant to, and in accordance with, and to the extent allowed by Sections 53607 and 53608 of the California Government Code, the authority to invest and reinvest moneys of the city, to sell or exchange securities, and to deposit them and provide for their safekeeping, is delegated to the city treasurer, which, for purposes of this chapter, is defined in Section 2.12.010 of this code. (Ord. 529 § 1, 2015; Ord. 2 § 1,
1982)

3.08.020 Authorized investments.

Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized to purchase, at their original sale or after they have been issued, securities which are permissible investments under the city council adopted city investment policy and any provision of state law relating to the investing of general city funds, including, but not limited to, Sections 53601 and 53635 of the California Government Code, as said sections now read or may hereafter be amended, from moneys in the city treasurer's custody which are not required for the immediate necessities of the city and as he or she may deem wise and expedient, and to sell or exchange for other eligible securities and reinvest the proceeds of the securities so purchased. (Ord. 529 § 1, 2015; Ord. 2 § 1, 1982)

3.08.030 Sales of Securities.

From time to time the city treasurer shall sell the securities in which city moneys have been invested pursuant to this chapter, so that the proceeds may, as appropriate, be applied to the purchase for which the original purchase money may have been designated or placed in the city treasury. (Ord.2 § 1 1982)

3.08.040 City bonds.

Bonds issued by the city and purchased pursuant to this chapter may be cancelled either in satisfaction of sinking fund obligations or otherwise if proper and appropriate; provided, however, that the bonds may be held uncancelled and while so held may be resold. (Ord. 2 § 1 (part), 1982)

3.08.050 Reports.

The city treasurer shall make a quarterly report to the city council of all investments made pursuant to the authority delegated in this chapter and as permitted by Section 53646(b)(1) of the Government Code. (Ord. 529 § 1, 2015; Ord. 2 § 1, 1982)

APPENDIX B
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3.08.060 Deposits of securities.

Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized to deposit for safekeeping, the securities in which city moneys have been invested pursuant to this chapter, in any institution or depository authorized by the city council adopted investment policy and terms of any state law, including, but not limited to, Section 53608 of the Government Code, as it now reads or may hereafter be amended. In accordance with said section, the city treasurer shall take from the institution or depository a receipt for the securities so deposited and shall not be responsible for the securities delivered to and receipted for by the institution or depository until they are withdrawn therefrom by the city treasurer. (Ord. 529 § 1, 2015; Ord. 2 § 1, 1982)

3.08.070 Trust fund administration.

Any departmental trust fund established by the city council pursuant to Section 36523 of the Government Code shall be administered by the city treasurer in accordance with Section 36523 and 36524 of the Government Code and any other applicable provisions of law. (Ord. 2 § 1, 1982)
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Function Responsible Parties
Develop and recommend modifications to the City's
formal Investment Policy
City Treasurer, Principal Management Analyst, and
Financial Advisory Commission
Review City's Investment Policy and recommend
City Council action City Manager and City Attorney
Adopt formal Investment Policy City Council
Implement formal Investment Policy City Treasurer
Review financial institutions and select investments City Treasurer or Principal Management Analyst Acknowledge investment selections City Manager or his/her designee Execute investment transactions
City Manager, City Treasurer, or Principal
Management Analyst
Confirm wires
Accounting Manager, Senior Accountant, or
Administrative Technician
Record investment transactions in City's accounting
records Accounting Manager or Senior Accountant
Investment cerification- match broker confirmation
to City's investment records City Treasurer or Principal Management Analyst Reconcile investment records to accounting records
and bank statements Principal Management Analyst
Reconcile investment records to treasurer's report
of investments
City Treasurer, Accounting Manager, or Principal
Management Analyst
Security of investments at City Accounting Manager or Administrative Technician Security of investments outside of City Third Party Custodian Review internal control procedures External Auditor

SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES

APPENDIX C
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Banking Services -Bank of the West, San Francisco, CA (Banking Services) -Sunwest Bank, Irvine, CA (Banking Services - Dune Palms Mobile Estates)
-BMO Commercial Bank
Custodian Services -The Bank of New York Mellon/Pershing LLC -Stifel
Deferred Compensation -International City/County Management Association Retirement Corporation (ICMA-RC) dba MissionSquare Retirement
Broker/Dealer Services -Stifel, Nicholaus, & Company, Inc. -Higgins Capital Management, Inc.
-Great Pacific Securities
Government/Joint Powers Authority Pools -State of California Local Agency Investment Fund (LAIF) -California Asset Management Program (CAMP)
-County of Riverside Pooled Investment Fund(1)
Trustee Services -U.S. Bank Trust Company, NA(2)
Other Post Employment Benefits (OPEB) Trust -California Employers' Retirement Benefits Trust (CERBT)/CalPERS
Pension Trust - Administration -Public Agency Retirement Services (PARS) Listing of Approved Financial Institutions
(1)The County of Riverside Treasurer maintains one Pooled Investment Fund for all local jurisdictions having funds on deposit in the County Treasury. The City’s fire funds, which are property taxes collected to fund fire services in the City, are kept in reserve with the County to be used as expenses are incurred. (2) U.S. Bank is the fiscal agent for all of the following bonds: 2013 (refunded in 2021), 2014 (refunded in 2021), 2016, and 2021 Successor Agency to the La Quinta Redevelopment Agency (RDA) Bonds. U.S. Bank is also the trustee and asset custodian for the PARS pension trust. As of January 29, 2022, U.S. Bank, National Association transitioned its Global Corporate Trust business to wholly owned subsidiary U.S. Bank Trust Company, National Association.

APPENDIX D
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INVESTMENT MANAGEMENT PROCESS AND RISK
Except as provided for in Section 27000.3, Government Code Section 53600.3 declares as a trustee each person, treasurer, or governing body authorized to make investment decisions on behalf of local agencies. Trustees are subject to the prudent investor standard. These persons shall act with care, skill, prudence, and diligence under the circumstances then prevailing when investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing funds. Section 53600.5 further stipulates that the primary objective of any person investing public funds is to safeguard principal; secondly, to meet liquidity needs of the depositor; and lastly, to achieve a return or yield on invested funds (Government Code Section 27000.5 specifies the same objectives for county treasurers and board of supervisors).

Risk is inherent throughout the investment process. There is investment risk associated with any investment activity and opportunity risk related to inactivity. Market risk is derived from exposure to overall changes in the general level of interest rates while credit risk is the risk of loss due to the failure of the insurer of a security. The market value of a security varies inversely with the level of interest rates. If an investor is required to sell an investment with a five percent yield in a comparable seven percent rate environment, that security will be sold at a loss. The magnitude of that loss will depend on the amount of time until maturity.

Purchasing certain allowable securities with a maturity of greater than five years requires approval of the governing board (see Government Code Section 53601). Part of that approval process involves assessing and disclosing the risk and possible volatility of longer-term investments
Another element of risk is liquidity risk. Instruments with call features or special structures, or those issued by little known companies, are examples of "story bonds" and are often thinly traded. Their uniqueness often makes finding prospective buyers in a secondary market more difficult and, consequently, the securities' marketability and price are discounted. However, under certain market conditions, gains are also possible with these types of securities.

Default risk represents the possibility that the borrower may be unable to repay the obligation as scheduled. Generally, securities issued by the federal government and its agencies are considered the most secure, while securities issued by private corporations or negotiable certificates of deposit issued by commercial banks have a greater degree of risk. Securities with additional credit enhancements, such as bankers acceptances, collateralized repurchase agreements and collateralized bank deposits are somewhere between the two on the risk spectrum.

The vast majority of portfolios are managed within a buy and hold policy. Investments are purchased with the intent and capacity to hold that security until maturity. At times, market forces or operations may dictate swapping one security for anotheror

APPENDIX E
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selling a security before maturity. Continuous analysis and fine tuning of the investment portfolio are considered prudent investment management.

The Government Code contains specific provisions regarding the types of investments and practices permitted after considering the broad requirement of preserving principal and maintaining liquidity before seeking yield. These provisions are intended to promote the use of reliable, diverse, and safe investment instruments to better ensure a prudently managed portfolio worthy of public trust.

Source: Chapter II. Fund Management from the Local Agency Investment Guidelines Issued by California Debt and Investment Advisory Commission
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GLOSSARY
(Adopted from the Municipal Treasurers Association)
The purpose of this glossary is to provide the reader of the City of La Quinta investment policies with a better understanding of financial terms used in municipal investing.

AGENCIES: Federal agency securities and/or Government-sponsored enterprises.

ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR): The official annual report for the City of La Quinta. It includes combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.

ASKED: The price at which securities are offered.

BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer.

BROKER: A broker brings buyers and sellers together for a commission.

CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large- denomination CD's are typically negotiable.

COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.

COMMERCIAL PAPER: Short-term unsecured promissory notes issued by a corporation to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation, IBM, Bank America, etc.

CONDUIT FINANCING: A form of Financing in which a government or a government agency lends its name to a bond issue, although it is acting only as a conduit between a specific project and bond holders. The bond holders can look only to the revenues from the project being financed for repayment and not to the government or agency whose name appears on the bond.

COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date.

DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.

DEBENTURE: A bond secured only by the general credit of the issuer.

APPENDIX F
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DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.

DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities).

DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.

DISCOUNT SECURITIES: Non-interest-bearing money market instruments that are issued at discount and redeemed at maturity for full face value
DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.

GOVERNMENT SPONSORED ENTERPRISES (GSEs): Privately held corporations with public purposes created by the U.S. Congress to reduce the cost of capital for certain borrowing sectors of the economy. Securities issues by GSEs carry the implicit backing of the U.S.

Government, but they are not direct obligations of the U.S. Government. Typically referred to as ‘Agency Bonds’ or ‘Agencies’.

FNMAs or Fannie Mae (Federal National Mortgage Association) - Like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages.

FNMA's securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.

FHLBs (Federal Home Loan Bank) - Issued by the Federal Home Loan Bank System to help finance the housing industry. The notes and bonds provide liquidity and home mortgage credit to savings and loan associations, mutual savings banks, cooperative banks, insurance companies, and mortgage-lending institutions. They are issued irregularly for various maturities.

The minimum denomination is $5,000. The notes are issued with maturities of less than one year and interest is paid at maturity.

FFCBs (Federal Farm Credit Bank) – Debt instruments used to finance the short and intermediate term needs of farmers and the national agricultural industry. They are issued monthly with three- and six-month maturities. The FFCB issues larger issues (one to ten year) on a periodic basis. These issues are highly liquid.
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FHLMCs or Freddie Mac (Federal Home Loan Mortgage Corporation) - a government sponsored entity established in 1970 to provide a secondary market for conventional home mortgages. Mortgages are purchased solely from the Federal Home Loan Bank System member lending institutions whose deposits are insured by agencies of the United States Government. They are issued for various maturities and in minimum denominations of $10,000.

Principal and interest is paid monthly.

FAMCs or Farmer Mac (Federal Agricultural Mortgage Corporation) - FAMC increases the availability and affordability of credit for the benefit of American agriculture and rural communities. They are the nation’s premier secondary market for agricultural credit, providing financial solutions to a broad spectrum of the agricultural community, including agricultural lenders, agribusinesses, and other institutions that can benefit from access to flexible, low-cost financing and risk management tools. FAMC is regulated by the Farm Credit Administration.

Other federal agency issues are Small Business Administration notes (SBA's), Government National Mortgage Association notes (GNMA's), and Tennessee Valley Authority notes (TVA's).

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit per entity.

FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open- market operations.

FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.

FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 regional banks and about 3,000 commercial banks that are members of the system.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae):

Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FMHM mortgages. The term "pass-throughs" is often used to describe Ginnie Maes.

LAIF (Local Agency Investment Fund): - A special fund in the State Treasury which local agencies may use to deposit funds for investment. There is no minimum investment period, the minimum transaction is $5,000 and the City follows the state guidance for maximum total balance. The City is restricted to a maximum of ten transactions per month. It offers high liquidity because deposits can be converted to cash in 24 hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share basis determined by the amounts deposited and the length of time
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they are deposited. Interest is paid quarterly. The State retains an amount for reasonable costs of making the investments, not to exceed one-half of one percent of theearnings.

LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.

LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment
MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.

MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase-reverse repurchase agreements that establish each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer- lender to liquidate the underlying securities in the event of default by the sellerborrower.

MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.

MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded.

NRSRO (NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION): A credit rating agency recognized by the Securities and Exchange Commission (SEC). Examples include Fitch Ratings, Inc., Moody’s Investor’s Services, Inc., and S&P Global Ratings, among others.

OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid.

OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect.

Open market operations are the Federal Reserve's most important and most flexible monetary policy tool.

PORTFOLIO: Collection of all cash and securities under the direction of the City Treasurer, including Bond Proceeds.

PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) registered securities broker-dealers, banks and a few unregulated firms.
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QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits.

RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return.

REPURCHASE AGREEMENT (RP OR REPO) and REVERSE REPURCHASE AGREEMENTS (RRP or RevRepo): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions.

Exception: When the Fed is said to be doing RP, it is lending money that is increasing bank reserves.

SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection.

SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.

SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation.

SEC RULE 15C3-1: See Uniform Net Capital Rule.

SSAE 16: The Statement on Standards for Attestation Engagements No. 16 (SSAE 16) is a set of auditing standards and guidance on using the standards, published by the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA) for redefining and updating how service companies report on compliance controls. The Service Organizational Control report (SOC-1) contains internal controls over financial reporting and is used by auditors and office controllers.

STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, SLMA, etc.) and Corporations which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, and derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve.

SURPLUS FUNDS: Section 53601 of the California Government Code defines surplus funds as any money not required for immediate necessities of the local agency. The City has defined immediate necessities to be payment due within one week.

TREASURY BILLS: A non-interest- bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months or one year.
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TREASURY BONDS: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10years.

TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years.

UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio.

Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.

UNIFORM PRUDENT INVESTOR ACT: The State of California has adopted this Act. The Act contains the following sections: duty of care, diversification, review of assets, costs, compliance determinations, delegation of investments, terms of prudent investor rule, and application.

YIELD: The rate of annual return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. 483 Click Here to Return to Agenda
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INVESTMENT POLICY
ATTACHMENT 1
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Exhibit A
Fiscal Year 2022/20232023-
2024 Table of Contents
Section Topic Page
Executive Summary 1
I General Purpose 2
II Investment Policy 2
III Scope 2
IV Objectives 3
V Maximum Maturities 5
VI Prudence 5
VII Authority 5
VIII Ethics and Conflicts of Interest 6
IX Authorized Financial Dealers and Institutions 6
X Permissible Deposits and Investments 7
XI Investment Pools 10
XII Payment and Custody 10
XIII Interest Earning Distribution Policy 11
XIV Internal Controls and Independent Auditors 11
XV Reporting Standards 12
XVI Review of Investment Portfolio 13
XVII Financial Advisory Commission – City of La Quinta 13 XIII Investment Policy Adoption 13
Appendices Topic Page
A Municipal Code Ordinance 2.70 – Financial Advisory Commission 14 B Municipal Code Ordinance 3.08 – Investment of Moneys and Funds 16 C Segregation of Major Investment Responsibilities 18
D Listing of Approved Financial Institutions 19
E Investment Management Process and Risk 20
F Glossary 22
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CITY OF LA QUINTA
Investment Policy Fiscal
Year 2022/20232023/2024

Authority to manage the City's investment portfolio is derived from the City Municipal Code.

The Investment Policy shall be adopted by resolution of the La Quinta City Council on an annual basis, before the end of each fiscal year (June).
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City of La Quinta
Statement of Investment Policy July 1, 2021 2023 through June 30, 2022 2024 Adopted by the City Council on June 20216, 20222023
I. GENERAL PURPOSE
The general purpose of this document is to provide the rules and standards that must be followed in administering the City of La Quinta's deposits and investments.

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5922(d) governs the investment of bond proceeds and reserve funds in accordance with bond indenture provisions.

IV. OBJECTIVES
The objectives of the City's investment activity, in order of priority and importance, are:

2. Interest Rate Risk is the risk that market values of securities in the portfolio will decline due to changes in general interest rates. Interest rate risk may be mitigated by:
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Performance Standards: As a basis for comparison only, the Treasurer's quarterly reports will display the rates of return on the three-month Bill, six-month Bill, the one and two-year U.S.

Treasury Note, and the yield for the State Treasurer's Local Agency Investment Fund (LAIF).

The Treasurer may use these or any other published rates of return that the Treasurer deems appropriate for comparison to the return on the City's investment portfolio. 490 Click Here to Return to Agenda

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VI. PRUDENCE and FIDUCIARY DUTY
The City shall follow the State Code §53600.3 regarding fiduciary duty and the Prudent Investor Standard as follows:

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• State of California Department of Financial Protection and Innovation (1- 866-275- 2677).

All Broker/Dealers and financial institutions that provide investment services will be subject to City Council approval.

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Treasury issues of 100% of the portfolio.

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The City's Investment Policy permits investment in pools and money market funds as authorized by State Code §16429.1, §53601(l) and §53601(p).

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2. Specific Investments – Specific investments purchased by a fund shall incur all earnings and expenses to that particular fund.

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place. Delivered securities must be properly safeguarded against loss or destruction.

Fax correspondence must be supported by evidence of verbal or written follow- up. • Development of a wire transfer agreement with the City's bank and third-party custodian.

This agreement should outline the various controls, security provisions, and delineate responsibilities of each party making and receiving wire transfers.

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XVI. REVIEW OF INVESTMENT PORTFOLIO
The securities held by the City must be in compliance with this Policy at the time of purchase.

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City of La Quinta Municipal Code Chapter 2.70

FINANCIAL ADVISORY COMMISSION

2.70.010 General rules regarding the financial advisory commission. Except as set out below, see Chapter 2.06 for general provisions.

2.70.020 Number of members.

2.70.30 Qualifications of members.

2.70.040 Powers and duties.

A. The principal functions of the FAC are:

1. Review at least annually the city's investment policy and recommend appropriate changes;

2. Review at least quarterly the treasury report and note compliance with the investment policy and adequacy of cash and investments for anticipated obligations;

3. Receive and consider other reports provided by the city treasurer;

APPENDIX A
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6. Serve as a resource for the city treasurer on matters such as proposed investments, internal controls, use of or change of financial institutions, custodians, brokers and dealers.

B. The FAC will report to the city council after each meeting either in person or through correspondence at a regular city council meeting. (Ord. 556 § 1, 2017)

2.70.050 References to the Investment Advisory Board.

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City of La Quinta Municipal Code Chapter 3.08

INVESTMENT OF MONEYS AND FUNDS

3.08.010 Investment of city moneys and deposit of securities.

3.08.020 Authorized investments.

3.08.030 Sales of Securities.

3.08.040 City bonds.

3.08.050 Reports.

APPENDIX B
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3.08.060 Deposits of securities.

3.08.070 Trust fund administration.

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Function Responsible Parties
Develop and recommend modifications to the City's
formal Investment Policy
City Treasurer, Financial Services Principal
Management Analyst, and Financial Advisory
Commission
Review City's Investment Policy and recommend
City Council action City Manager and City Attorney
Adopt formal Investment Policy City Council
Implement formal Investment Policy City Treasurer
Review financial institutions and select investments
City Treasurer or Financial Services Principal
Management Analyst
Acknowledge investment selections City Manager or his/her designee Execute investment transactions
City Manager, City Treasurer, or Financial Services
Principal Management Analyst
Confirm wires
Accounting Manager, Senior Accountant, or
Management Assistant Administrative Technician
Record investment transactions in City's accounting
records Accounting Manager or Senior Accountant
Investment cerification- match broker confirmation
to City's investment records
City Treasurer or Financial Services Principal
Management Analyst
Reconcile investment records to accounting records
and bank statements Financial Services Principal Management Analyst Reconcile investment records to treasurer's report
of investments
City Treasurer, Accounting Manager or Financial
Services Principal Management Analyst
Security of investments at City
Accounting Manager or Management Assistant
Administrative Technician
Security of investments outside of City Third Party Custodian Review internal control procedures External Auditor

SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES

APPENDIX C
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Listing of Approved Financial Institutions
Banking Services -Bank of the West, San Francisco, CA
(Banking Services)
-BMO Commercial Bank
-Sunwest Bank, Irvine, CA (BankingServices
- Dune Palms Mobile Estates)
Custodian Services -The Bank of New York Mellon/PershingLLC -Stifel
Deferred Compensation -International City/County Management Association Retirement Corporation (ICMARC) dba MissionSquare Retirement Broker/DealerServices -Stifel, Nicholaus, & Company,
Inc.
-Higgins Capital Management, Inc.
-Great Pacific Securities
Government/Joint PowersAuthority Pools -State of California Local Agency Investment Fund (LAIF)
-CaliforniaAsset Management Program (CAMP)
-County of Riverside Pooled Investment Fund(1)
Trustee Services -U.S. Bank Trust Company, NA(2)
Other Post Employment Benefits (OPEB) Trust -California Employers' Retirement Benefits Trust (CERBT)/CalPERS
Pension Trust - Administration -Public Agency Retirement Services (PARS) (1)The County of Riverside Treasurer maintains one Pooled Investment Fund for all local jurisdictions having funds on deposit in the County Treasury. The City’s fire funds, which are property taxes collected to fund fire services in the City, are kept in reserve with the County to be used as expenses are incurred.
(2) U.S. Bank is the fiscal agent for all of the following bonds: 2013 (refunded in 2021), 2014 (refunded in 2021), 2016, and 2021 Successor Agency to the La Quinta Redevelopment Agency (RDA) Bonds. U.S. Bank is also the trustee and asset custodian for the PARS pension trust. As of January 29, 2022, U.S. Bank, NationalAssociation transitioned its Global Corporate Trust business to wholly owned subsidiary U.S. Bank Trust Company, NationalAssociation.

APPENDIX D
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APPENDIX E
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selling a security before maturity. Continuous analysis and fine tuning of the investment portfolio are considered prudent investment management.

Source: Chapter II. Fund Management from the Local Agency Investment Guidelines Issued by California Debt and Investment Advisory Commission
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