La Quinta City Council
June 17, 2025

they are deposited. Interest is paid quarterly. The State retains an amount for reasonable costs of making the investments, not to exceed one-half of one percent of the earnings.

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

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

MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase-reverse repurchase agreements that establish each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer- lender to liquidate the underlying securities in the event of default by the 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 10 years.

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

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

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

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

YIELD: The rate of annual return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. 201 CLICK HERE to Return to Agenda
News Release

FOR IMMEDIATE RELEASE
Date: December 15, 2024 For more information contact:

Shaun L. Farrell, Chairperson
CMTA Investment Policy Certification
Phone: 209-712-0428
Email: [email protected]
(Sacramento, California) – The California Municipal Treasurers Association (CMTA) Investment Policy Certification has been granted to the City of La Quinta.

This Investment Policy Certification recognizes that CMTA has validated that the City of La Quinta’s Investment Policy adheres with the State of California Government Code and meets the program requirements within 18 different topics areas deemed to be best practices for investment policies. Those topics include: Scope, Prudence, Objective, Delegation of Authority, Ethics and Conflicts of Interest, Authorized Financial Dealers and Institutions, Authorized and Suitable Investments, Review of Investment Portfolio, Investment Pools/Mutual Funds, Collateralization, Safekeeping and Custody, Diversification, Maximum Maturities, Internal Controls, Performance Standards, Reporting, Investment Policy Adoption and Glossary. Once a policy is received by CMTA, it is independently evaluated using a scoring matrix by three separate CMTA professionals. When the agency receives a passing score, the Investment Policy earns the ‘Certified’ distinction.

To enhance the municipal treasurer’s role, CMTA has developed a number of certification programs to reflect best practices and increase an individual’s knowledge of fixed income instruments. The Investment Policy Certification program began in 2012 with the support from the California Debt and Investment Advisory Commission. It is open to all government agencies within the State of California including special districts, cities and counties.

CMTA was founded in 1958 by a handful of Municipal Treasurers from both Northern and Southern California whose primary interest was to improve their function in local Government. CMTA is a professional organization governed by active public officials who are representatives of their own local governmental units.

ATTACHMENT 1
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California Municipal
Treasurers Association
Investment Policy Certification
Issued on 12/15/2024
City of La Quinta
The California Municipal Treasurers Association certifies that the investment policy of the City of La Quinta complies with the current State statutes governing the investment practices of local government entities located within the State of California.

President
12/15/2024
Date
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City of La Quinta
CITY COUNCIL MEETING: June 17, 2025

STAFF REPORT
AGENDA TITLE: ADOPT RESOLUTIONS TO: (A) APPROVE FISCAL YEAR 2025/26

CLASSIFICATION AND SALARY PLAN/SCHEDULE, AND (B) APPROVE AMENDMENT NO. 3 TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF LA QUINTA AND THE LA QUINTA CITY EMPLOYEES’ ASSOCIATION

RECOMMENDATION
Adopt a resolutions to:
(A) Approve the classification plan and salary plan/schedule for fiscal year 2025/26, effective July 1, 2025, and
(B) Approve Amendment No. 3 to the Memorandum of Understanding between the City of La Quinta and the La Quinta City Employees’ Association.

EXECUTIVE SUMMARY
 The City’s classification plan and salary plan/schedule must be approved by Council and adopted by resolution in accordance with the City’s Personnel Policy.  The current Memorandum of Understanding (MOU) between the City and the La Quinta Employees’ Association (Association) provides a meet-and-confer reopener to determine the annual World at Work salary plan/schedule adjustment.  The City and Association met and conferred regarding the annual reopener to determine the fiscal year (FY) 2025/26 World at Work salary plan/schedule adjustment, and mutually agreed on a 3% salary/plan schedule adjustment effective July 1, 2025.
 The proposed Amendment No. 3 to the MOU, if approved, will implemented the agreed-upon terms for all Association members.
 The City provides the same salary plan/schedule benefits to non-represented regular full-time and part-time employees as those approved for Association members, ensuring consistency and equitable treatment across the workforce.

FISCAL IMPACT
The FY 2025/26 cost to implement the 3% salary plan/schedule adjustment is approximately $456,000, and funds are available in the Contingency for Staffing account (101-1007-50115).

CONSENT CALENDAR ITEM NO. 8
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BACKGROUND/ANALYSIS
The City’s classification plan and salary plan/schedule must be approved by Council and adopted by resolution in accordance with the City’s Personnel Policy.

In August 2022, the City and Association entered into a five-year MOU, which includes a meet-and-confer reopener to evaluate annual salary plan/schedule adjustments based on the World at Work Salary Budget Survey report.

Following collaborative discussions, the City and Association mutual agreed on a 3% salary plan/schedule adjustment effective July 1, 2025, which reflects both parties' commitment to maintaining fair and competitive compensation practices.

To implement these agreed-upon terms and ensure consistency, Council must adopt resolutions to approve both the amendment to the MOU and the City's FY 2025/26 Classification Plan and Salary Plan/Schedule for non-represented regular full-time and part-time employees.

Approving the updated Classification Plan and 3% salary plan/schedule enables the City to uphold its commitment to fair and transparent compensation practices. These approvals not only provide stability in salary administration but also strengthen the City's ongoing efforts to maintain a balanced and equitable workplace for all employees.

The City has a well-established practice of extending benefit adjustments granted to Association members to non-represented regular full-time and part-time employees.

ALTERNATIVES
The City and Association have engaged in good-faith negotiations to achieve equitable outcomes for both parties, and approval of the 3% salary plan/schedule adjustment would successfully conclude the FY 2025/26 reopener process. While staff does not recommend alternatives, Council retains the option to withhold the agreed-upon 3% salary plan/schedule adjustment.

Prepared by: Carla Triplett, Human Resources Deputy Director Approved by: Jon McMillen, City Manager
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RESOLUTION NO. 2025 – XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LA QUINTA, CALIFORNIA, APPROVING THE

CLASSIFICATION AND SALARY/PLAN SCHEDULE FOR
FISCAL YEAR 2025/2026
WHEREAS, the classification plan and salary plan/schedule of the City of La Quinta must be approved by the City Council and adopted by resolution in accordance with the City of La Quinta's ("City") Personnel Policy; and WHEREAS, the City desires to implement an updated classification plan and 3% salary/plan schedule adjustment for fiscal year 2025/2026 effective July 1, 2025; and WHEREAS, the City desires to establish a fair and equitable classification plan; and
WHEREAS, this document will supersede any prior resolutions and amendments and may be changed only upon approval of the City Council.

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

SECTION 1. The City Council hereby approves to implement the City's fiscal year 2025/2026 Classification Plan, attached hereto as Exhibit A and incorporated herewith by this reference, for all non-represented regular full-time and part-time employees.

SECTION 2. The City Council hereby approves to implement the City's fiscal year 2025/2026 Salary Plan/Schedule, attached hereto as Exhibit B and incorporated herewith by this reference, for all non-represented regular full-time and part-time employees.

PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City Council held on this 17th day of June 2025 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
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Resolution No. 2025 – XXX
FY 2025/2026 Classification and Salary Plan/Schedule
Adopted: June 17, 2025

___________________________
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
2025/2026 CLASSIFICATION PLAN
EFFECTIVE JULY 1, 2025
Administrative
Administrative Assistant Administrative Assistant A12
Administrative Technician Administrative Technician B21/B22 Executive Specialist Executive Specialist B25/B32
Building
Building Inspector Apprentice Building Inspector Apprentice B22 Building Inspector Building Inspector B23
Senior Building Inspector Senior Building Inspector B24/B31 Plans Examiner Plans Examiner B25/B32
Deputy Building Official Deputy Building Official C42
Centralized Services
Permit Technician Apprentice Permit Technician Apprentice B21 Permit Technician Permit Technician B22
Senior Permit Technician Senior Permit Technician B23
City Clerk
Records Technician Apprentice Records Technician Apprentice B21 Records Technician Records Technician B22
Records Coordinator Records Coordinator B25/B32
Deputy City Clerk Deputy City Clerk B25/B32
Code
Code Compliance Officer Apprentice Code Compliance Officer Apprentice B21 Code Compliance Officer Code Compliance Officer B22
Senior Code Compliance Officer Senior Code Compliance Officer B23 Animal Control/Code Compliance Supervisor Animal Control/Code Compliance Supervisor C42 Community Services
Recreation Leader Recreation Leader A11
Senior Recreation Leader Senior Recreation Leader A12
Community Services Specialist Community Services Specialist B23 Senior Community Services Specialist Senior Community Services Specialist B24 Data Administration
Data Reporting Specialist Data Reporting Specialist B24/B32 Engineering
Construction Inspector Apprentice Construction Inspector Apprentice B22 Construction Inspector Construction Inspector B23
Assistant Construction Manager Assistant Construction Manager C43 Associate Engineer Associate Engineer C44/C51
Senior Civil Engineer Senior Civil Engineer D63
Finance
Finance Technician Apprentice Finance Technician Apprentice B21 Finance Technician Finance Technician B22
Senior Finance Technician Senior Finance Technician B23 Junior Accountant Junior Accountant B24
Accountant Accountant B25/B32
Senior Accountant Senior Accountant C42
Human Resources
Human Resources Technician Apprentice Human Resources Technician Apprentice B21 Human Resources Technician Human Resources Technician B22 Maintenance & Operations
Maintenance & Operations Worker Maintenance & Operations Worker A12 Senior Maintenance & Operations Worker Senior Maintenance & Operations Worker A13 Maintenance & Operations Technician Maintenance & Operations Technician B23 Maintenance & Operations Coordinator Maintenance & Operations Coordinator B24/B31 Maintenance & Operations Crew Leader Maintenance & Operations Crew Leader B24/B31 Maintenance & Operations Superintendent Maintenance & Operations Superintendent C43 Management
Manager Building Official D61
Manager Finance Manager D61
Manager Hub Manager D61
Manager Marketing Manager D61
Manager Planning Manager D61
Manager Technology Manager D61
Deputy Director Community Services Deputy Director D63
Deputy Director Maintenance & Operations Deputy Director D63 Deputy Director Human Resources Deputy Director D63
Deputy Director Public Safety Deputy Director D63

CLASSIFICATION SERIES CLASSIFICATION SPECIFICATION AUTHORIZED WORKING TITLE RATING 1 RESOLUTION NO. 2025-0XX

EXHIBIT A
Adopted: June 17, 2025
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CITY OF LA QUINTA
2025/2026 CLASSIFICATION PLAN
EFFECTIVE JULY 1, 2025
Management (continued)
Director City Clerk E82
Director Design & Development Director E82
Director Director (Business Unit/Housing Development) E82 Director Finance Director/Treasurer E82
Director Public Works Director/City Engineer E82
City Manager City Manager F101*
Management Administration
Management Specialist Management Specialist B25
Management Analyst Apprentice Management Analyst Apprentice B25 Management Analyst Management Analyst C42
Senior Management Analyst Senior Management Analyst C43 Principal Management Analyst Principal Management Analyst C44/C51 Marketing/Communications
Marketing & Communications Specialist Apprentice Marketing & Communications Specialist Apprentice B23 Marketing & Communications Specialist Marketing & Communications Specialist B24/B31 Planning
Assistant Planner Apprentice Assistant Planner Apprentice B24 Assistant Planner Assistant Planner B25
Associate Planner Associate Planner C42
Senior Planner Senior Planner C44/C51
Traffic
Traffic Signal Technician Apprentice Traffic Signal Technician Apprentice B21 Traffic Signal Technician Traffic Signal Technician B22 * City Manager salary is determined by City Council contract

CLASSIFICATION SERIES CLASSIFICATION SPECIFICATION AUTHORIZED WORKING TITLE RATING 2 210 CLICK HERE to Return to Agenda
WORKING TITLE DBM STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 A11 $ 44,734.92 $ 47,323.15 $ 49,911.39 $ 52,499.62 $ 55,087.86 $ 57,676.09 $ 60,264.33 $ 62,852.56 Administrative Assistant
Maintenance & Operations Worker A12 $ 49,217.90 $ 52,065.51 $ 54,913.12 $ 57,760.72 $ 60,608.33 $ 63,455.94 $ 66,303.54 $ 69,151.15 Senior Maintenance & Operations Worker A13 $ 53,700.88 $ 56,807.86 $ 59,914.84 $ 63,021.82 $ 66,128.80 $ 69,235.78 $ 72,342.76 $ 75,449.74 Administrative Technician
Code Compliance Officer Apprentice
Finance Technician Apprentice
Human Resources Technician Apprentice
Permit Technician Apprentice
Records Technician Apprentice
Traffic Signal Technician Apprentice
B21 $ 58,197.33 $ 61,564.46 $ 64,931.59 $ 68,298.72 $ 71,665.85 $ 75,032.98 $ 78,400.11 $ 81,767.24 Administrative Technician
Building Inspector Apprentice
Code Compliance Officer
Construction Inspector Apprentice
Finance Technician
Human Resources Technician
Permit Technician
Records Technician
Traffic Signal Technician
B22 $ 62,680.31 $ 66,306.81 $ 69,933.32 $ 73,559.82 $ 77,186.32 $ 80,812.83 $ 84,439.33 $ 88,065.83 Building Inspector
Community Services Specialist
Construction Inspector
Maintenance & Operations Technician
Marketing & Communications Specialist Apprentice
Senior Code Compliance Officer
Senior Finance Technician
Senior Permit Technician
B23 $ 67,163.30 $ 71,049.18 $ 74,935.06 $ 78,820.93 $ 82,706.81 $ 86,592.69 $ 90,478.56 $ 94,364.44 Assistant Planner Apprentice
Data Reporting Specialist
Junior Accountant
Maintenance & Operations Coordinator
Maintenance & Operations Crew Leader
Marketing & Communications Specialist
Senior Building Inspector
Senior Community Services Specialist
B24 $ 73,343.11 $ 77,586.53 $ 81,829.95 $ 86,073.37 $ 90,316.80 $ 94,560.22 $ 98,803.64 $ 103,047.06 Accountant
Assistant Planner
Deputy City Clerk
Executive Specialist
Plans Examiner
Management Analyst Apprentice
Management Specialist
Records Coordinator
B25 $ 80,947.60 $ 85,630.99 $ 90,314.39 $ 94,997.79 $ 99,681.18 $ 104,364.58 $ 109,047.98 $ 113,731.37 B31 $ 73,343.11 $ 77,586.53 $ 81,829.95 $ 86,073.37 $ 90,316.80 $ 94,560.22 $ 98,803.64 $ 103,047.06 B32 $ 80,947.60 $ 85,630.99 $ 90,314.39 $ 94,997.79 $ 99,681.18 $ 104,364.58 $ 109,047.98 $ 113,731.37 WORKING TITLE DBM STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 STEP 9 STEP 10 Associate Planner
Animal Control/Code Compliance Supervisor
Deputy Building Official
Management Analyst
Senior Accountant
C42 $ 87,465.47 $ 92,373.25 $ 97,281.04 $ 102,188.82 $ 107,096.61 $ 112,004.39 $ 116,912.18 $ 121,819.96 $ 126,727.74 $ 131,635.53 Assistant Construction Manager
Maintenance & Operations Superintendent
Senior Management Analyst
C43 $ 92,261.93 $ 97,438.85 $ 102,615.77 $ 107,792.69 $ 112,969.61 $ 118,146.53 $ 123,323.45 $ 128,500.37 $ 133,677.29 $ 138,854.21 Associate Engineer
Principal Management Analyst
Senior Planner
C44 $ 98,268.33 $ 103,782.28 $ 109,296.23 $ 114,810.17 $ 120,324.12 $ 125,838.06 $ 131,352.01 $ 136,865.95 $ 142,379.90 $ 147,893.84 Building Official
Finance Manager
Hub Manager
Marketing Manager
Planning Manager
Technology Manager
D61 $ 111,476.65 $ 117,731.73 $ 123,986.81 $ 130,241.89 $ 136,496.97 $ 142,752.05 $ 149,007.13 $ 155,262.20 $ 161,517.28 $ 167,772.36 Community Services Deputy Director
Human Resources Deputy Director
Maintenance & Operations Deputy Director
Public Safety Deputy Director
Senior Civil Engineer
D63 $ 122,903.02 $ 129,799.24 $ 136,695.47 $ 143,591.69 $ 150,487.92 $ 157,384.14 $ 164,280.37 $ 171,176.59 $ 178,072.82 $ 184,969.04 City Clerk
Design & Development Director
Director (Business Unit/Housing Development)
Finance Director/City Treasurer
Public Works Director/City Engineer
E82 $ 148,041.42 $ 156,348.18 $ 164,654.95 $ 172,961.72 $ 181,268.49 $ 189,575.26 $ 197,882.03 $ 206,188.79 $ 214,495.56 $ 222,802.33 City Manager F101* $ 222,802.33 $ 232,490.96 $ 242,179.59 $ 251,868.22 $ 261,556.85 $ 271,245.48 $ 280,934.11 $ 290,622.74 $ 300,311.37 $ 310,000.00 Recreation Leader A11 $ 21.51 $ 22.75 $ 24.00 $ 25.24 $ 26.48 $ 27.73 $ 28.97 $ 30.22 Senior Recreation Leader A12 $ 23.66 $ 25.03 $ 26.40 $ 27.77 $ 29.14 $ 30.51 $ 31.88 $ 33.25 Elected Official Positions
(per La Quinta Municipal Code Section 2.04.050)
Mayor
Council Members
City Council Approval Effective Date
6/17/2025 7/1/2025
$ 2,300.00

PART-TIME EMPLOYEES (HOURLY)

FULL-TIME EMPLOYEES (ANNUAL)

FULL-TIME EMPLOYEES (ANNUAL)
Monthly
$ 2,800.00
2025-2026
Salary Schedule
RESOLUTION NO. 2025-0XX

EXHIBIT B
Adopted: June 17, 2025
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RESOLUTION NO. 2025 – XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LA QUINTA, CALIFORNIA, APPROVING AMENDMENT
NO. 3 TO THE MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY OF LA QUINTA AND THE LA
QUINTA EMPLOYEES’ ASSOCIATION
WHEREAS, Council adopted Resolution No. 2022-029 on August 2, 2022, approving the current five-year Memorandum of Understanding (“MOU”) between the City of La Quinta (“City”) and the La Quinta Employees’ Association (Association), expiring on June 30, 2027; and
WHEREAS, Council adopted Resolution No. 2023-021 on June 20, 2023, approving Amendment No. 1 to the MOU, providing a 2.7% World at Work salary plan/schedule adjustment effective July 1, 2023, and recognition of Christmas Eve as a designated paid holiday observed on December 22, 2023; and WHEREAS, Council adopted Resolution No. 2024-025 on June 18, 2024, approving Amendment No. 2 to the MOU, providing a 2.8% World at Work salary plan/schedule adjustment, updates to the fiscal year 2024/2025 salary plan/schedule and Vacation Leave Transfer Policy effective July 1, 2024; and WHEREAS, the current MOU between the City and the Association provides for an annual meet and confer reopener to determine annual World at Work salary plan/schedule adjustments; and
WHEREAS, the City and the Association, the recognized organization representing its members, have met and conferred over wages, hours, terms, and conditions of employment pursuant to Government Code 3500, as amended; and WHEREAS, the City and the Association have negotiated and mutually agreed upon a 3% salary plan/schedule adjustment effective July 1, 2025.

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

SECTION 1. The City Council hereby ratifies and approves the implementation of the economic benefit and right set forth in Amendment No. 3 between the City and Association, attached and incorporated herewith as Exhibit “A,” to the extent the City may legally ratify and approve the economic benefit and right in Amendment No. 3 within the terms of the MOU.

PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City Council held on this 17th day of June 2025 by the following vote:
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Resolution No. 2025 – xxx
Amendment No. 3 to MOU with La Quinta City Employee Association Adopted: June 17, 2025

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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AMENDMENT NO. 3

TO MEMORANDUM OF UNDERSTANDING
This AMENDMENT NO. 3 (AMENDMENT) is made by and between the CITY OF LA QUINTA (CITY) and the LA QUINTA CITY EMPLOYEES' ASSOCIATION (ASSOCIATION) as of June 17, 2025.

RECITALS
WHEREAS, City Council adopted Resolution No. 2022-029 on August 2, 2022, approving the current Memorandum of Understanding (MOU) between the CITY and the ASSOCIATION covering the period from August 2, 2022, through June 30, 2027; and WHEREAS, City Council adopted Resolution No. 2023-021 on June 20, 2023, approving Amendment No. 1 to the MOU providing a 2.7% World at Work salary plan/schedule adjustment effective July 1, 2023, and recognition of Christmas Eve as a designated paid holiday observed December 22, 2023; and WHEREAS, City Council adopted Resolution No. 2024-025 on June 18, 2024, approving Amendment No. 2 to the MOU providing a 2.8% World at Work salary plan/schedule adjustment, updated fiscal year 2024/2025 salary plan/schedule, and Vacation Leave Transfer Policy revisions effective July 1, 2024; and WHEREAS, Section 2.2 of the MOU provides for an annual meet and confer reopener to determine World at Work salary plan/schedule adjustments; and WHEREAS, in May 2025, the CITY and ASSOCIATION began labor negotiations to meet and confer over wages, hours, terms, and conditions of employment, pursuant to Government Code 3500; and
WHEREAS, the CITY and ASSOCIATION met and considered fiscal year 2025/2026 World at Work salary structure adjustments.

NOW, THEREFORE, it is agreed by and among the parties as follows:

1. The foregoing Recitals are true and correct and incorporated in full as part of this AMENDMENT.

2. The CITY and the ASSOCIATION have negotiated and agreed upon a 3.0% salary plan/schedule adjustment effective July 1, 2025, attached hereto as “Exhibit 1”; and

3. The reopener referenced in Section 2.2 of the MOU is concluded/closed for purposes of the fiscal year 2025/2026 salary plan/schedule adjustments; and

4. Except as modified by this Agreement, the MOU remains in full force and effect according to its terms.

RESOLUTION NO. 2025-0XX

EXHIBIT A
Adopted: June 17, 2025
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CITY OF LA QUINTA LA QUINTA CITY EMPLOYEES'

ASSOCIATION
By: By:

Its Mayor Its President
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WORKING TITLE DBM STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 A11 $ 44,734.92 $ 47,323.15 $ 49,911.39 $ 52,499.62 $ 55,087.86 $ 57,676.09 $ 60,264.33 $ 62,852.56 Administrative Assistant
Maintenance & Operations Worker A12 $ 49,217.90 $ 52,065.51 $ 54,913.12 $ 57,760.72 $ 60,608.33 $ 63,455.94 $ 66,303.54 $ 69,151.15 Senior Maintenance & Operations Worker A13 $ 53,700.88 $ 56,807.86 $ 59,914.84 $ 63,021.82 $ 66,128.80 $ 69,235.78 $ 72,342.76 $ 75,449.74 Administrative Technician
Code Compliance Officer Apprentice
Finance Technician Apprentice
Human Resources Technician Apprentice
Permit Technician Apprentice
Records Technician Apprentice
Traffic Signal Technician Apprentice
B21 $ 58,197.33 $ 61,564.46 $ 64,931.59 $ 68,298.72 $ 71,665.85 $ 75,032.98 $ 78,400.11 $ 81,767.24 Administrative Technician
Building Inspector Apprentice
Code Compliance Officer
Construction Inspector Apprentice
Finance Technician
Human Resources Technician
Permit Technician
Records Technician
Traffic Signal Technician
B22 $ 62,680.31 $ 66,306.81 $ 69,933.32 $ 73,559.82 $ 77,186.32 $ 80,812.83 $ 84,439.33 $ 88,065.83 Building Inspector
Community Services Specialist
Construction Inspector
Maintenance & Operations Technician
Marketing & Communications Specialist Apprentice
Senior Code Compliance Officer
Senior Finance Technician
Senior Permit Technician
B23 $ 67,163.30 $ 71,049.18 $ 74,935.06 $ 78,820.93 $ 82,706.81 $ 86,592.69 $ 90,478.56 $ 94,364.44 Assistant Planner Apprentice
Data Reporting Specialist
Junior Accountant
Maintenance & Operations Coordinator
Maintenance & Operations Crew Leader
Marketing & Communications Specialist
Senior Building Inspector
Senior Community Services Specialist
B24 $ 73,343.11 $ 77,586.53 $ 81,829.95 $ 86,073.37 $ 90,316.80 $ 94,560.22 $ 98,803.64 $ 103,047.06 Accountant
Assistant Planner
Deputy City Clerk
Executive Specialist
Plans Examiner
Management Analyst Apprentice
Management Specialist
Records Coordinator
B25 $ 80,947.60 $ 85,630.99 $ 90,314.39 $ 94,997.79 $ 99,681.18 $ 104,364.58 $ 109,047.98 $ 113,731.37 B31 $ 73,343.11 $ 77,586.53 $ 81,829.95 $ 86,073.37 $ 90,316.80 $ 94,560.22 $ 98,803.64 $ 103,047.06 B32 $ 80,947.60 $ 85,630.99 $ 90,314.39 $ 94,997.79 $ 99,681.18 $ 104,364.58 $ 109,047.98 $ 113,731.37 WORKING TITLE DBM STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 STEP 9 STEP 10 Associate Planner
Animal Control/Code Compliance Supervisor
Deputy Building Official
Management Analyst
Senior Accountant
C42 $ 87,465.47 $ 92,373.25 $ 97,281.04 $ 102,188.82 $ 107,096.61 $ 112,004.39 $ 116,912.18 $ 121,819.96 $ 126,727.74 $ 131,635.53 Assistant Construction Manager
Maintenance & Operations Superintendent
Senior Management Analyst
C43 $ 92,261.93 $ 97,438.85 $ 102,615.77 $ 107,792.69 $ 112,969.61 $ 118,146.53 $ 123,323.45 $ 128,500.37 $ 133,677.29 $ 138,854.21 Associate Engineer
Principal Management Analyst
Senior Planner
C44 $ 98,268.33 $ 103,782.28 $ 109,296.23 $ 114,810.17 $ 120,324.12 $ 125,838.06 $ 131,352.01 $ 136,865.95 $ 142,379.90 $ 147,893.84 Building Official
Finance Manager
Hub Manager
Marketing Manager
Planning Manager
Technology Manager
D61 $ 111,476.65 $ 117,731.73 $ 123,986.81 $ 130,241.89 $ 136,496.97 $ 142,752.05 $ 149,007.13 $ 155,262.20 $ 161,517.28 $ 167,772.36 Community Services Deputy Director
Human Resources Deputy Director
Maintenance & Operations Deputy Director
Public Safety Deputy Director
Senior Civil Engineer
D63 $ 122,903.02 $ 129,799.24 $ 136,695.47 $ 143,591.69 $ 150,487.92 $ 157,384.14 $ 164,280.37 $ 171,176.59 $ 178,072.82 $ 184,969.04 City Clerk
Design & Development Director
Director (Business Unit/Housing Development)
Finance Director/City Treasurer
Public Works Director/City Engineer
E82 $ 148,041.42 $ 156,348.18 $ 164,654.95 $ 172,961.72 $ 181,268.49 $ 189,575.26 $ 197,882.03 $ 206,188.79 $ 214,495.56 $ 222,802.33 City Manager F101* $ 222,802.33 $ 232,490.96 $ 242,179.59 $ 251,868.22 $ 261,556.85 $ 271,245.48 $ 280,934.11 $ 290,622.74 $ 300,311.37 $ 310,000.00 Recreation Leader A11 $ 21.51 $ 22.75 $ 24.00 $ 25.24 $ 26.48 $ 27.73 $ 28.97 $ 30.22 Senior Recreation Leader A12 $ 23.66 $ 25.03 $ 26.40 $ 27.77 $ 29.14 $ 30.51 $ 31.88 $ 33.25 Elected Official Positions
(per La Quinta Municipal Code Section 2.04.050)
Mayor
Council Members
City Council Approval Effective Date
6/17/2025 7/1/2025
$ 2,300.00

PART-TIME EMPLOYEES (HOURLY)

FULL-TIME EMPLOYEES (ANNUAL)

FULL-TIME EMPLOYEES (ANNUAL)
Monthly
$ 2,800.00
2025-2026
Salary Schedule
RESOLUTION NO. 2025-0XX
EXHIBIT 1
Adopted: June 17, 2025
216
City of La Quinta
CITY COUNCIL MEETING: June 17, 2025

STAFF REPORT
AGENDA TITLE: APPROVE SECOND AMENDMENT TO EMPLOYMENT

AGREEMENT FOR THE CITY MANAGER

RECOMMENDATION
Approve Second Amendment to Employment Agreement for the City Manager.

EXECUTIVE SUMMARY
 At its June 21, 2022, Regular Meeting, Council approved City Manager Jon McMillen’s current employment agreement, effective July 1, 2022 (Original Agreement) (Attachment 3).
 The Original Agreement memorialized Council’s decision to extend the employment term for three years but kept in place, subject to future amendment, compensation provisions that were from the original employment agreement effective July 1, 2019.
 The First Amendment to Employment Agreement (First Amendment) (Attachment 2), approved on October 4, 2022, modified specified compensation provisions.  The proposed Second Amendment to Employment Agreement (Second Amendment) (Attachment 1) would extend Mr. McMillen’s term for three additional years, commencing July 1, 2025, and, in general, keeps the same compensation provisions from the First Amendment but has an adjusted base salary and additional deferred compensation “match” provision.

FISCAL IMPACT
If the amendment is adopted, the City Manager’s base salary would be $310,000, commencing in fiscal year (FY) 2025-26. In the following fiscal years, any increases in base salary would be tied to any Council-approved cost of living/cost of labor increases for management-level full-time City employees.

The Second Amendment would continue the $30,000 in annual deferred compensation established by the First Amendment, and it would authorize the City to match, on an annual basis, such deferred compensation subject to contribution limits under federal law.

The City Manager will continue to receive the same fringe benefits as authorized for City full-time management-level employees.

CONSENT CALENDAR ITEM NO. 9
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BACKGROUND/ANALYSIS
In February 2019, the City hired an independent consulting firm with expertise in city management recruitment to assist the Council in the process of hiring a new city manager.

After a national recruitment that attracted 72 applicants from around the country, the list of finalists was narrowed to six semi-finalists and two finalists after discussions in closed session with Council, a series of interviews with candidates, and a thorough review of references, among other recruiting actions. At its May 21, 2019, regular meeting, Council unanimously voted (5-0 in favor) to appoint Mr. McMillen as City Manager, effective July 1, 2019, and to approve terms and conditions of a three-year employment agreement. At its June 21, 2022, regular meeting, Council approved a new employment agreement, effective July 1, 2022, for an additional three-year term and kept in place, subject to future amendment, the City Manager’s then-effective compensation provisions.

The First Amendment integrated into Mr. McMillen’s contract specified revised compensation provisions, including the allowance of $30,000 in annual deferred compensation, subject to being paid to a qualified retirement or supplemental retirement plan. At its October 4, 2022, regular meeting, Council unanimously approved the First Amendment.

The proposed Second Amendment modifies the current agreement’s base salary and deferred compensation provisions as outlined in the Fiscal Impact discussion, above. The modified compensation package brings the City Manager’s base salary and deferred compensation to be comparable and competitive with salaries and benefits of other city managers in the Coachella Valley.

Additionally, the proposed amendment revises the deferred compensation text based on comments from the City’s administrator of deferred compensation plans. As the Council may recall, when the First Amendment was adopted, a qualified retirement or supplemental retirement plan, authorized pursuant to federal law, had to be established for the implementation of the City Manager’s $30,000 deferred compensation provisions.

At that time, Council authorized City Staff to proceed to establish a qualified deferred compensation plan. Since then, the plan has been established, and for clarification purposes, the City’s plan administrator provided text amendments to Paragraph (B) of Section 6 to memorialize the relevant deferred compensation plan actually established, but substantively, there is no change from the First Amendment relating to the $30,000 allowed deferred compensation.

Additionally, the City’s plan administrator provided text for newly added Paragraph (C) of Section 6, which would add the City’s “matching” contribution allowance to the City Manager’s contract. The plan administrator’s suggested text has been integrated into the proposed Second Amendment.

The proposed Second Amendment also makes conforming and clarifying modifications to Section 10 to bring the Original Agreement in-line with potential increases in cost of living/cost of labor, as those adjustments may be approved by Council as part of any annual review of compensation for employees, including management-level employees. 218 CLICK HERE to Return to Agenda
Except for the 3-year extension term, adjusted base salary, and deferred compensation “match” provisions, no other substantive modifications to the current employment agreement are proposed.

ALTERNATIVES - None
Prepared by: Bill Ihrke, City Attorney
Approved by: Jon McMillen, City Manager
Attachments: 1. Amendment No. 2 to Employment Agreement for City Manager

2. Amendment No. 1 to Employment Agreement for City Manager

3. Employment Agreement for City Manager
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SECOND AMENDMENT TO EMPLOYMENT AGREEMENT
This SECOND AMENDMENT TO EMPLOYMENT AGREEMENT (the “Second Amendment”) is made and entered as of July 1, 2025 (the “Second Amendment Effective Date”), by and between the City of La Quinta, a public body (the “City” or “Employer”), and Jon McMillen, an individual (the “Employee”), both of whom understand as follows:

WITNESSETH:

WHEREAS, the City desires to continue to employ the services of Employee as the City Manager as provided by the La Quinta Municipal Code; and WHEREAS, the City and Employee entered into that certain EMPLOYMENT AGREEMENT made and entered July 1, 2022 (“Original Agreement”), as amended by that certain FIRST AMENDMENT TO EMPLOYMENT AGREEMENT made and entered October 4, 2022 (“First Amendment” and, collectively with the Original Agreement, the “Agreement”) which is the operative agreement for the city manager’s employment with the City; and WHEREAS, it is the desire of the City to extend the Term and to amend certain conditions of employment of said Employee as more particularly described herein; and WHEREAS, Employee desires to accept the continued employment as City Manager of said City.

NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree to the following amendment to the Original Agreement, as follows:

AMENDMENT:

Section 2 of the Original Agreement is deleted in its entirety and amended, to read:

Section 2. Term.

A. The initial term of this Agreement shall be from July 1, 2022, through and including June 30, 2025 (“Initial Term”). Commencing on the Second Amendment Effective Date, the renewal term shall be from July 1, 2025, through and including June 30, 2028 (“Renewal Term”), unless earlier terminated as provided in the Original Agreement as amended by this Second Amendment. The Initial Term and Renewal Term collectively shall be referred to as the “Term” of the Agreement. The parties may subsequently renew the Agreement pursuant to their mutual agreement.

B. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the City Council acting for the City to terminate the services of Employee at any time, with or without cause, subject only to the provisions set forth in Section 4, Paragraphs A, B and D of the Original Agreement.

ATTACHMENT 1 220 CLICK HERE to Return to Agenda

C. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the Employee to resign at any time from his position with Employer, subject only to the provision set forth in Section 4, Paragraph E, of the Original Agreement.

Section 6 of the Original Agreement, as amended by the First Amendment, is deleted in its entirety and amended, to read:

Section 6. Salary.

A. Employer agrees to pay Employee for his services rendered pursuant hereto a base salary of $310,000.00 (“Employee Base Salary”) commencing from July 1, 2025 (“Base Salary Effective Date”), payable in equal installments at the same time as other employees of the Employer are paid. Commencing on the second fiscal year after the Base Salary Effective Date (commencing July 1, 2026), and for each fiscal year thereafter in which Employee is employed pursuant to the Original Agreement (as may be amended including by this Second Amendment), Employee’s base salary for the applicable fiscal year shall be subject to any increase set forth in Section 10 of the Original Agreement (as may be amended including by this Second Amendment) applicable to management-level employees approved by the City Council. Employer may review the base salary and/or other benefits of Employee at the time of an annual evaluation which shall be initiated in May or June for each year of the Term. Employer may recommend adjustments to salary and/or other benefits to be memorialized by written amendment to this Agreement.

B. In addition to the annual base salary in Paragraph A above, Employer shall make a $30,000 annual contribution on behalf of Employee to a City-sponsored IRC Section 401(a) plan (“401(a) plan”). Prior to any Employer payment, City Council shall establish and authorize, or amend a previously established 401(a) plan to accept such contributions in accordance with United States Internal Revenue Code (Title 26 of the United States Code, and herein “IRC”). The City’s defined contribution shall be paid no later than December 31 after the immediately completed prior fiscal year. City Council authorizes Employee or his designee(s) to execute any documents necessary to maintain the 401(a) plan subject to the IRC.

Section 6, Paragraph C, of the Agreement is added, to read:

C. For any fiscal year commencing on and after the Second Amendment Effective Date, and for the duration of the Renewal Term, Employer shall match 100% of Employee deferrals made to City’s IRC Section 457(b) plan (“457(b) plan”) to the Citysponsored 401(a) plan up to IRC limits. The City's matching contributions will be made to the 401(a) plan no later than December 31 after the immediately completed prior fiscal year, pursuant to Section 6, Paragraph B of the First Amendment (as may be amended including by this Second Amendment). All Employer contributions to the 401(a) plan, including the defined contribution pursuant to Section 6, Paragraph B, of the First Amendment (as may be amended including by this Second Amendment), shall not exceed annual IRC limits on a combined basis.
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Section 10 of the Original Agreement is deleted in its entirety and amended, to read:

Section 10. Other Benefits.

Employee shall be provided with the same health, dental, vision, life insurance, and retirement benefit options and any future cost of living/cost of labor increases that occur after the Effective Date of the Original Agreement (and continuing after the Second Amendment Effective Date), as other general management-level full time employees of the City. Employee may receive an annual physical examination at City expense.

MISCELLANEOUS:

Except as specifically defined in this Second Amendment, all capitalized words and phrases shall have the same meaning ascribed to them in the Original Agreement and First Amendment.

The Original Agreement, First Amendment, and this Second Amendment shall constitute the entire agreement between the parties. Except as expressly amended by this Second Amendment, all of the terms and conditions in the Original Agreement as amended by the First Amendment remain in full force and effect.

If any provision, or any portion thereof, contained in this Second Amendment is held unconstitutional, invalid or unenforceable, the remainder of this Second Amendment and the Original Agreement and First Amendment, or portions thereof, shall be deemed severable, shall not be affected, and shall remain in full force and effect.

This Second Amendment may be signed in counterparts with signature pages transmitted by email, facsimile, personal delivery or overnight delivery, all of which will be treated as originals.
[signatures on next page]
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IN WITNESS WHEREOF, the City of La Quinta has caused this Second Amendment to be signed and executed in its behalf by its Mayor, and duly attested by its City Clerk, and the Employee has signed and executed this Second Amendment, both in duplicate, to become effective as of the Amendment Effective Date.

EMPLOYER: CITY OF LA QUINTA
By:_______________________________

LINDA EVANS
Mayor of the City of La Quinta
ATTEST:
___________________________
MONIKA RADEVA, City Clerk
City of La Quinta, California
APPROVED AS TO FORM:
_____________________________
William H. Ihrke, CITY ATTORNEY
City of La Quinta, California
EMPLOYEE:

By:_______________________________
Jon McMillen, an individual
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page 1

FIRST AMENDMENT TO EMPLOYMENT AGREEMENT
This FIRST AMENDMENT TO EMPLOYMENT AGREEMENT (the “Amendment”) is made and entered as of October 4, 2022 (the “Amendment Effective Date”), by and between the City of La Quinta, a public body (the “City” or “Employer”), and Jon McMillen, an individual (the “Employee”), both of whom understand as follows:

WITNESSETH:

WHEREAS, the City desires to continue to employ the services of Employee as the City Manager as provided by the La Quinta Municipal Code; and WHEREAS, the City and Employee entered into that certain EMPLOYMENT AGREEMENT made and entered July 1, 2022 (“Original Agreement”), which is the operative agreement for the city manager’s employment with the City; and WHEREAS, it is the desire of the City to amend certain conditions of employment of said Employee as contemplated in the Original Agreement; and WHEREAS, Employee desires to accept the continued employment as City Manager of said City.

NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree to the following amendment to the Original Agreement, as follows:

AMENDMENT:

Section 6 of the Original Agreement is deleted in its entirety and amended, to read:

Section 6. Salary.

A. Employer agrees to pay Employee for his services rendered pursuant hereto a base salary of $250,000.00 (“Employee Base Salary”) from July 1, 2022 (“Base Salary Effective Date”), payable in equal installments at the same time as other employees of the Employer are paid. For the first fiscal year commencing from the Base Salary Effective Date, Employee shall be deemed at Step 10 under the 2022/23 salary schedule in effect as of the Amendment Effective Date (“Applicable Salary Schedule”) notwithstanding an inconsistency with the Employee Base Salary set forth in this Amendment (which applies for the first fiscal year) and the salary identified for the city manager in the Applicable Salary Schedule. Commencing on the second fiscal year after the Base Salary Effective Date (commencing July 1, 2023), and for each fiscal year thereafter in which Employee is employed pursuant to the Original Agreement (as may be amended including by this Amendment), ATTACHMENT 2
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page 2
Employee’s base salary for the applicable fiscal year shall be the base salary that corresponds to the step level for the full time employee position of city manager as set forth in the Applicable Salary Schedule.

Employer may review the base salary and/or other benefits of Employee at the time of an annual evaluation which shall be initiated in May or June for each year of the Term. Employer may recommend adjustments to salary and/or other benefits to be memorialized by written amendment to the Original Agreement.

B. In addition to the annual base salary in Paragraph A above, Employee shall be entitled to $30,000.00 in annual deferred compensation. Any deferred compensation authorized pursuant to this paragraph shall be paid directly to a qualified retirement plan or supplemental retirement plan for Employee pursuant to the United States Internal Revenue Code or other lawful retirement plan authorized pursuant to applicable federal or state law (commonly referred to as a deferred compensation plan). Prior to any payment of deferred compensation to Employee pursuant to this paragraph, the City Council shall establish and authorize, if not previously established and authorized, the maintaining of a supplemental retirement plan in accordance with applicable law. Deferred compensation to Employee shall not be a payroll deduction and shall not be deemed or reported to the California Public Employees’ Retirement System (“CalPERS”) as “compensation earnable” as long as such deferred compensation is paid directly to the supplemental retirement plan qualified for treating the deferred compensation as such. Any payment of deferred compensation pursuant to this paragraph to be paid to a supplemental retirement plan shall be paid no later than December 31 after the immediately completed prior fiscal year. In explanation of the previous sentence, any deferred compensation to a supplemental retirement plan shall be paid, for fiscal year 2022-23, no later than December 31, 2023. After the City Council duly establishes and authorizes the maintaining of the supplemental retirement plan, the City Council authorizes Employee or his designee(s) to execute any documents necessary or proper to maintain the supplemental retirement plan prior to any payment of deferred compensation to Employee.

MISCELLANEOUS:

Except as specifically defined in this Amendment, all capitalized words and phrases shall have the same meaning ascribed to them in the Original Agreement.

The Original Agreement and this Amendment shall constitute the entire agreement between the parties. Except as expressly amended by this Amendment, 225 CLICK HERE to Return to Agenda
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all of the terms and conditions in the Original Agreement remain in full force and effect.

If any provision, or any portion thereof, contained in this Amendment is held unconstitutional, invalid or unenforceable, the remainder of this Amendment and the Original Agreement, or portion thereof, shall be deemed severable, shall not be affected, and shall remain in full force and effect.

This Amendment may be signed in counterparts with signature pages transmitted by email, facsimile, personal delivery or overnight delivery, all of which will be treated as originals.
[signatures on next page]
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EMPLOYMENT AGREEMENT
This EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered as of July 1, 2022 (the “Effective Date”), by and between the City of La Quinta, a public body (the “City” or “Employer”), and Jon McMillen, an individual (the “Employee”), both of whom understand as follows:

WITNESSETH:

WHEREAS, the City desires to continue to employ the services of Employee as the City Manager as provided by the La Quinta Municipal Code; and WHEREAS, it is the desire of the City to establish certain conditions of employment and to set working conditions of said Employee; and WHEREAS, Employee desires to accept the continued employment as City Manager of said City.

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

Section 1. Duties.

A. Employer hereby agrees to employ Employee as City Manager of said City to perform the functions and duties specified in the La Quinta Municipal Code and as provided by state and federal law and to perform other legally permissible and proper duties and functions as the City Council shall from time to time assign.

B. Employee, with prior written approval of the City Council, may undertake outside professional activities for compensation, including teaching, speaking and writing, provided they do not interfere with Employee’s normal duties and are done only during vacation or other non-working time of Employee and are not done with any existing vendors or contractors of the City. Under no circumstances shall such outside activity create a conflict of interest with the duties of the City Manager and the interests of the City.

Section 2. Term.

A. The term of this Agreement shall be from July 1, 2022 through and including June 30, 2025, unless earlier terminated as provided herein. Thereafter, the parties may renew the Agreement pursuant to their mutual agreement.

ATTACHMENT 3
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B. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the City Council acting for the City to terminate the services of Employee at any time, with or without cause, subject only to the provisions set forth in Section 4, paragraphs A, B and D of this Agreement.

C. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the Employee to resign at any time from his position with Employer, subject only to the provision set forth in Section 4, Paragraph E, of this Agreement.

Section 3. Administrative Leave with Pay.

Employer may place Employee on Administrative Leave with full pay and benefits at any time during the term of this Agreement. However, if the purpose of placing Employee on Administrative Leave With Pay is to conduct an investigation into potential wrongdoing, and after that investigation, Employee is convicted of a crime involving abuse of his/her office or position, then pursuant to Government Code Section 53243, Employee shall be required to fully reimburse City for any salary or benefits received while on Administrative Leave With Pay. “Abuse of office or position” shall be as defined in Government Code Section 53243.4, as may be amended.

Section 4. Termination and Severance Pay.

A. In the event Employee is terminated by the City Council during such time that Employee is willing and able to perform his/her duties under this Agreement, then Employer agrees to pay Employee a lump sum cash payment equal to either six months’ salary or the salary for the remaining term of this Agreement, whichever is less. Pursuant to Government Code Section 53243.5, if Employee is later convicted of a crime involving abuse of office or position, then any severance paid under this Section 4.A shall be returned by Employee to Employer.

B. Employee may be terminated at any time for willful misconduct as defined in Section 2.08.160 of the City’s Municipal Code or for abuse of his/her office or position as defined in Government Code Section 53243.4 as may be amended. The determination of what constitutes willful misconduct shall be within the sole discretion of the City Council, provided that it shall relate to the welfare of the City.

Willful misconduct includes conduct directly related to conduct in office and the duties of the office. It also includes conduct not directly related to the performance of the official duties of the office when such conduct has a direct and harmful effect on the welfare or reputation of the City. Evidence of such direct and harmful effects includes, but is not limited to, conviction of a felony or a crime of moral turpitude. Employee shall be entitled to the right to a hearing as provided in Sections 2.08.100 through 229 CLICK HERE to Return to Agenda

2.08.150 of the Municipal Code prior to termination under Sections 4.A and 4.B of this Agreement. In the event that Employee is terminated for willful misconduct or abuse of office or position, City shall have no obligation to pay and shall be prohibited from paying, the severance sum designated in Section 4.A above, or any severance sum at all.

C. Nothing in this Agreement shall prohibit Employer from imposing discipline less than termination upon Employee, including written reprimands, suspensions, or reductions in pay. Employee shall not be entitled to any due process as a result of the implementation of discipline less than termination.

D. In the event: (1) Employer at any time during the term of this Agreement reduces the salary or other financial benefits of Employee (other than a suspension of five (5) working days or less or a temporary reduction in salary of thirty (30) days or less) in a greater percentage than an applicable across-the-board reduction for all employees of Employer; or (2) Employer refuses, following written notice, to comply with any other provisions benefiting Employee herein; or (3) Employee resigns following a formal suggestion by the City Council that he/she resign, then Employee may, at his/her option, be deemed to be “terminated” as of that time, and shall be entitled to the severance provisions of Section 4.A above.

E. In the event Employee voluntarily resigns his/her position with Employer before expiration of the above-referenced term of his/her employment, then Employee shall give Employer sixty (60) days’ notice in advance, unless the parties otherwise agree, and Employee shall not be entitled to any severance pay.

Section 5. Disability.

If Employee is permanently disabled or is otherwise unable to perform his/her duties because of sickness, accident, injury, mental incapacity or health for a period of six (6) successive weeks beyond any accrued sick leave to which Employee is entitled, or for the legal duration of the Family & Medical Leave Act (whichever is greater), Employer shall have the option to terminate this Agreement. Termination pursuant to this Section would not subject the City to payment of severance benefits as specified under Section 4.A above. However, Employee shall be compensated for any accrued, vacation, holidays, administrative leave and other accrued benefits on the same basis as any other employee of the City pursuant to the Personnel Rules.

Section 6. Salary.

A. Employer agrees to pay Employee for his services rendered pursuant hereto an annual base salary of $219,730.00, effective on July 1, 2022 (“Base Salary 230 CLICK HERE to Return to Agenda

Effective Date”), payable in equal installments at the same time as other employees of the Employer are paid. No later than ninety (90) days after the Base Salary Effective Date, Employee shall be eligible for an increase to the base salary in an amount to be determined by the City Council and, once determined, shall be (in accordance with any applicable law) retroactive to the Base Salary Effective Date and effective for the balance of the term of this Agreement and memorialized in an amendment to this Agreement; additionally, no later than ninety (90) days after the Base Salary Effective Date, Employee shall be eligible for an adjustment to the annual performance-based compensation set forth in Section 6, Paragraph B, and for any other terms and conditions relating to Employee’s compensation, to be memorialized in an amendment to this Agreement; provided, however, that any increase in the base salary, annual performance-based compensation, or other compensation shall be in the sole and absolute discretion of the City Council who may (but need not) use, as part of the assessment for an annual base salary increase, the same criteria set forth in Section 6, Paragraph B, of this Agreement. Employer agrees to review said base salary and/or other benefits of Employee at the time of an annual evaluation which shall be initiated in May or June for each year of the Term. Employer may recommend adjustments to salary and/or other benefits during the time period that the annual review is performed.

B. In addition to the annual base salary, Employee may be eligible for annual performance-based compensation in the amount of up to 5% of Employee’s annual base salary, not to exceed $10,000, for any year in which performance-based compensation may be paid. Performance-based compensation shall be paid in a lump-sum for any given year, and, for purposes of such compensation, a year shall correspond to the City’s fiscal year. Any payment of performance-based compensation shall be at the discretion of the City Council, and may only be paid if, in the City Council’s discretion, Employee successfully meets performance goals and objectives as more particularly described in Exhibit “A” attached hereto and incorporated by reference (the “Performance-Based Compensation Metrics”). The City Council may meet, in accordance with applicable law, at least one time every fiscal quarter to evaluate the performance of Employee with respect to the progress on the Performance-Based Compensation Metrics. Any performance-based compensation authorized by the City Council pursuant to this paragraph shall be paid directly to a supplemental retirement plan for Employee pursuant to United States Internal Revenue Code section 457(b) or other lawful supplemental retirement plan authorized pursuant to applicable federal or state law (commonly referred to as a deferred compensation plan and referred to herein as the “Supplemental Plan”). Prior to any payment of performance-based compensation to Employee pursuant to this paragraph, the City Council shall establish and authorize, if not previously established and authorized, the maintaining of a Supplemental Plan in accordance with applicable 231 CLICK HERE to Return to Agenda

law. Any performance-based compensation to Employee shall not be a payroll deduction and shall not be deemed or reported to the California Public Employees’ Retirement System (“CalPERS”) as “compensation earnable” as long as such performance-based compensation is paid directly to the Supplemental Plan. Any payment of performance-based compensation pursuant to this paragraph shall be paid to the Supplemental Plan no later than December 31 after the immediately completed prior fiscal year. In explanation of the previous sentence, any performancebased compensation for fiscal year 2018-19 shall be paid to the Supplemental Plan no later than December 31, 2019; for fiscal year 2019-20, paid no later than December 31, 2020; for fiscal year 2020-21, paid no later than December 31, 2021; and for fiscal year 2021-22, paid no later than December 31, 2022. After the City Council duly establishes and authorizes the maintaining of the Supplemental Plan, the City Council authorizes Employee or his designee(s) to execute any documents necessary or proper to maintain the Supplemental Plan prior to any payment of performance-based compensation to Employee, but the City Council retains any and all discretion to award or not award any and all performance-based compensation to Employee.

Section 7. Hours of Work.

In addition to working normal business hours, it is recognized that Employee must devote time outside the normal office hours to business of the Employer.

Employee shall have 120 hours of Administrative Leave. For partial calendar years, the hours of Administrative Leave shall be prorated. Employee may not be employed by, or provide services (except if authorized pursuant to Section 1, Paragraph B above) to, any other entity while employed by the City.

Section 8. No Transportation Allowance.

City shall not provide a transportation allowance. Employee shall not be provided a City vehicle. Employee shall be entitled to reimbursement for mileage for the use of Employee’s automobile for City business at then-applicable IRS rate.

Section 9. Vacation, Bereavement, and Sick Leave.

Employee shall accrue, and have credited to his/her personal account, vacation, bereavement and sick leave as provided for pursuant to the City’s Employee Personnel Rules.

Section 10. Other Benefits.

Employee shall be provided with the same health, dental, vision, life insurance, and retirement benefits and any future cost of living increases that occur after the 232 CLICK HERE to Return to Agenda

Effective Date, as other general full time employees of the City. Employee may receive an annual physical examination at City expense.

Section 11. Other Terms and Conditions of Employment.

A. The City Council, in consultation with the City Manager, shall fix any such other terms and conditions of employment, as it may determine from time to time, relating to the performance of Employee, provided such terms and conditions are not inconsistent with or in conflict with the provisions of this Agreement, the Municipal Code or any applicable state or federal law.

B. All regulations and rules of the Employer relating to vacation and sick leave, retirement and pension system contributions, holidays and other fringe benefits and working conditions as they now exist or hereafter may be amended, shall also apply to Employee as they would to other full-time employees of Employer, in addition to the benefits specifically set forth herein for the benefit of Employee.

Section 12. Notices.

Notices pursuant to this Agreement shall be given by: (1) email with verification of delivery; (2) facsimile transmission with confirmation; (3) personal delivery; (4) overnight delivery service with confirmation; or (5) deposit in the custody of the United States Postal Service, postage prepaid, addressed as follows:

EMPLOYER: CITY OF LA QUINTA
78-495 Calle Tampico
La Quinta, CA 92253
Attn: City Clerk
email: Monika Radeva <[email protected]>
with copy to: RUTAN & TUCKER, LLP
611 Anton Blvd., Suite 1400
Costa Mesa, CA 92626
Attn: William H. Ihrke, Esq.
email: [email protected]
EMPLOYEE: Jon McMillen
53521 Eisenhower Drive
La Quinta, CA 92253
Notice shall be deemed given as of the date of personal, overnight delivery, email, or facsimile service or as of the date of deposit of such written notice in the course of transmission in the United States Postal Service. 233 CLICK HERE to Return to Agenda

Section 13. General Provisions.

A. This Agreement shall constitute the entire agreement between the parties. No prior oral or written communications are incorporated herein.

B. This Agreement shall be binding upon and inure to the benefit of the heirs at law and executors of Employee.

C. This Agreement may be signed in counterparts with signature pages transmitted by email, facsimile, personal delivery or overnight delivery, all of which will be treated as originals.

D. If any provision, or any portion thereof, contained in this Agreement is held unconstitutional, invalid or unenforceable, the remainder of this Agreement, or portion thereof, shall be deemed severable, shall not be affected and shall remain in full force and effect.
[signatures on next page]
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City of La Quinta
CITY COUNCIL MEETING: June 17, 2025

STAFF REPORT
AGENDA TITLE: APPROVE AGREEMENT FOR CONTRACT SERVICES WITH ST.

FRANCIS ELECTRIC FOR ON-CALL TRAFFIC SIGNAL REPAIR SERVICES

RECOMMENDATION
Approve Agreement for Contract Services with St. Francis Electric to provide on-call traffic signal repair services; and authorize the City Manager to execute the agreement.

EXECUTIVE SUMMARY
• Repairs to the City’s traffic signals can require specialized equipment and certain expertise which is needed when staff is not available.
• In March 2025, the City published a request for proposals (RFP) for on-call traffic signal repair services; 4 proposals were received; St. Francis Electric (St. Francis) was selected as best qualified based on their experience and qualifications. • The proposed agreement for contract services with St. Francis will provide the necessary resources to maintain the traffic signal system and ensure continuity of services; the current agreement with St. Francis expires June 30, 2025.

FISCAL IMPACT
Annual compensation is $125,000 per fiscal year (FY). Proposed is a 5-year agreement, with a 3-year initial term, and an optional 2-year extension, for a total not to exceed amount of $625,000 for the life of the agreement. Funds will be budgeted for FY 2025/26 in the CIP Traffic Signal Maintenance 2425TMI account 401-0000-60188. Funding will be budgeted for future FY per the terms of the agreement.

BACKGROUND/ANALYSIS
In March 2025, the City published a RFP for on-call traffic signal repair services and received 4 proposals from St. Francis, Bear Electrical Solutions, Yunex Traffic, and Econolite. St. Francis was selected as the most qualified firm based on their experience and qualifications.

CONSENT CALENDAR ITEM NO. 10
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The proposed agreement with St. Francis, is for a 3-year initial term, beginning July 1, 2025, through June 30, 2028, at a not to exceed compensation amount of $125,000 per FY, with an option to extend for 2 additional years (Attachment 1).

The City has contracted with St. Francis for on-call traffic signal repair services since 2019; that agreement expired June 30, 2024. Council approved an agreement with St.

Francis at the June 4, 2024, meeting to continue services with St. Francis through June 30, 2025, due to the City being short staffed.

ALTERNATIVES
Staff does not recommend an alternative.

Prepared by: Carley Escarrega, Administrative Technician Approved by:Bryan McKinney, PE, City Engineer/Public Works Director Attachment: 1. Agreement for Contract Services with St. Francis Electric 238 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 St. Francis Electric, with a place of business at 2100 Iowa Ave, Riverside, CA 92507 (“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 Traffic Signal Repair 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 first-class work and/or services and Contracting Party is experienced in performing the Services contemplated herein and, in light of such status and experience, Contracting Party covenants that it shall follow industry standards in performing the Services required hereunder, and that all materials, if any, will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase “industry standards” shall mean those standards of practice recognized by one or more first-class firms performing similar services under similar circumstances.

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

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

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

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

1.5 Familiarity with Work. By executing this Agreement, Contracting Party warrants that (a) it has thoroughly investigated and considered the Services to be ATTACHMENT 1
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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.

Compensation for properly authorized Additional Services shall be made in accordance with Section 2.3 of this Agreement.
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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 One Hundred Twenty-Five Thousand Dollars ($125,000) per fiscal year, for the life of the Agreement, encompassing the Initial and any Extended Terms (the “Contract Sum”), except as provided in Section 1.7. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment in accordance with the percentage of completion of the Services, payment for time and materials based upon Contracting Party’s rate schedule, but not exceeding the Contract Sum, or such other reasonable methods as may be specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Contracting Party at all project meetings reasonably deemed necessary by City; Contracting Party shall not be entitled to any additional compensation for attending said meetings. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses when and if specified in the Schedule of Compensation.

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

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

2.3 Compensation for Additional Services. Additional Services approved in advance by the Contract Officer, or assigned designee, pursuant to Section 1.7 of this Agreement shall be paid for in an amount agreed to in writing by both City and Contracting Party in advance of the Additional Services being rendered by Contracting Party. Any compensation for Additional Services amounting to five percent (5%) or less of the 241 CLICK HERE to Return to Agenda
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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, 2025, and terminate on June 30, 2028 (“Initial Term”). This Agreement may be extended for two (2) additional year(s) 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) Name: Guy Smith, President
Telephone No.: (510) 639-0639 x211
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 Bryan McKinney, PE, City Engineer/Public Works Director, or assigned designee may be designated in writing by the City Manager of the City. It shall be Contracting Party’s responsibility to assure that the Contract Officer, or assigned designee, is kept informed of the progress of the performance of the Services, and Contracting Party shall refer any decisions, that must be made by City to the Contract Officer, or assigned designee.

Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer, or assigned designee. The Contract Officer, or assigned designee, shall have authority to sign all documents on behalf of City required hereunder to carry out the terms of this Agreement.

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

5. INSURANCE.

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

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

6. INDEMNIFICATION.

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

7. RECORDS AND REPORTS.

7.1 Reports. Contracting Party shall periodically prepare and submit to the Contract Officer, or assigned designee, such reports concerning Contracting Party’s performance of the Services required by this Agreement as the Contract Officer, or assigned designee, shall require. Contracting Party hereby acknowledges that City is greatly concerned about the cost of the Services to be performed pursuant to this Agreement. For this reason, Contracting Party agrees that if Contracting Party becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Services contemplated herein or, if Contracting Party is providing design services, the cost of the project being designed, Contracting Party shall promptly notify the Contract Officer, or assigned designee, of said fact, circumstance, technique, or event and the estimated 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 245 CLICK HERE to Return to Agenda
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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 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 246 CLICK HERE to Return to Agenda
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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 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 247 CLICK HERE to Return to Agenda
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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 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 248 CLICK HERE to Return to Agenda
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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.

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

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

10. MISCELLANEOUS PROVISIONS.

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

To City:

CITY OF LA QUINTA
Attention: Bryan McKinney, PE
78495 Calle Tampico
La Quinta, California 92253
[email protected]
To Contracting Party:

ST. FRANCIS ELECTRIC
Attn: Jill Petrie, Southern CA Area
2100 Iowa Ave
Riverside, CA 92507
[email protected]

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

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

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

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

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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St. Francis Electric
St. Francis Electric
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Exhibit A

Exhibit A
Scope of Services

1. Services to be Provided:
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Exhibit A

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Exhibit A

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

1. Prevailing Wage Compliance. If Contracting Party is a contractor performing public works and maintenance projects, as described in this Section 1.3, Contracting Party shall comply with applicable Federal, State, and local laws. Contracting Party is aware of the requirements of California Labor Code Sections 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Sections 16000, et seq., (collectively, the “Prevailing Wage Laws”), and La Quinta Municipal Code Section 3.12.040, which require the payment of prevailing wage rates and the performance of other requirements on “Public works” and “Maintenance” projects. If the Services are being performed as part of an applicable “Public works” or “Maintenance” project, as defined by the Prevailing Wage Laws, and if construction work over twentyfive thousand dollars ($25,000.00) and/or alterations, demolition, repair or maintenance work over fifteen thousand dollars ($15,000.00) is entered into or extended on or after January 1, 2015 by this Agreement, Contracting Party agrees to fully comply with such Prevailing Wage Laws including, but not limited to, requirements related to the maintenance of payroll records and the employment of apprentices. Pursuant to California Labor Code Section 1725.5, no contractor or subcontractor may be awarded a contract for public work on a “Public works” project unless registered with the California Department of Industrial Relations (“DIR”) at the time the contract is awarded. If the Services are being performed as part of an applicable “Public works” or “Maintenance” project, as defined by the Prevailing Wage Laws, this project is subject to compliance monitoring and enforcement by the DIR. Contracting Party will maintain and will require all subcontractors to maintain valid and current DIR Public Works contractor registration during the term of this Agreement. Contracting Party shall notify City in writing immediately, and in no case more than twenty-four (24) hours, after receiving any information that Contracting Party’s or any of its subcontractor’s DIR registration status has been suspended, revoked, expired, or otherwise changed. It is understood that it is the responsibility of Contracting Party to determine the correct salary scale. Contracting Party shall make copies of the prevailing rates of per diem wages for each craft, classification, or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at Contracting Party’s principal place of business and at the project site, if any. The statutory penalties for failure to pay prevailing wage or to comply with State wage and hour laws will be enforced. Contracting Party must forfeit to City TWENTY-FIVE DOLLARS ($25.00) per day for each worker who works in excess of the minimum working hours when Contracting Party does not pay overtime. In accordance with the provisions of Labor Code Sections 1810 et seq., eight (8) hours is the legal working day. Contracting Party also shall comply with State law requirements to maintain payroll records and shall provide for certified records and inspection of records as required by California Labor Code Section 1770 et seq., including Section 1776. In addition to the other indemnities provided under this Agreement, Contracting Party shall defend (with counsel selected by City), indemnify, and hold City, 255 CLICK HERE to Return to Agenda
Exhibit A

its elected officials, officers, employees, and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It is agreed by the parties that, in connection with performance of the Services, including, without limitation, any and all “Public works” (as defined by the Prevailing Wage Laws), Contracting Party shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law. Contracting Party acknowledges and agrees that it shall be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with such laws.

Contracting Party shall require the same of all subcontractors.

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

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

4. Trenches or Excavations. Pursuant to California Public Contract Code Section 7104, in the event the work included in this Agreement requires excavations more than four (4) feet in depth, the following shall apply:
(a) Contracting Party shall promptly, and before the following conditions are disturbed, notify City, in writing, of any: (1) material that Contracting Party believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; (2) subsurface or latent physical conditions at the site different from those indicated by information about the site made available to bidders prior to the deadline for submitting bids; or (3) unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the Agreement. 256 CLICK HERE to Return to Agenda
Exhibit A

(b) City shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in Contracting Party’s cost of, or the time required for, performance of any part of the work shall issue a change order per Section 1.8 of the Agreement. (c) in the event that a dispute arises between City and Contracting Party whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contracting Party’s cost of, or time required for, performance of any part of the work, Contracting Party shall not be excused from any scheduled completion date provided for by this Agreement, but shall proceed with all work to be performed under this Agreement. Contracting Party shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the contracting Parties.

5. Safety. Contracting Party shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out the Services, Contracting Party shall at all times be in compliance with all applicable local, state, and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

6. Liquidated Damages. Since the determination of actual damages for any delay in performance of the Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, Contracting Party shall be liable for and shall pay to City the sum of One Thousand dollars ($1,000.00) as liquidated damages for each working day of delay in the performance of any of the Services required hereunder, as specified in the Schedule of Performance. In addition, liquidated damages may be assessed for failure to comply with the emergency call out requirements, if any, described in the Scope of Services. City may withhold from any moneys payable on account of the Services performed by Contracting Party any accrued liquidated damages. 257 CLICK HERE to Return to Agenda
Exhibit B

Exhibit B
Schedule of Compensation
With the exception of compensation for Additional Services, provided for in Section 2.3 of this Agreement, the maximum total compensation to be paid to Contracting Party under this Agreement is not to exceed One Hundred Twenty-Five Thousand Dollars ($ 125,000) per fiscal year, for the life of the Agreement, encompassing the Initial and any Extended Terms (“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.
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Exhibit C

Exhibit C
Schedule of Performance
Contracting Party shall complete all services identified in the Scope of Services, Exhibit A of this Agreement, as requested by the City.
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Exhibit D

Exhibit D
Special Requirements
None
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Exhibit E

Exhibit E
Insurance Requirements
E.1 Insurance. Prior to the beginning of and throughout the duration of this Agreement, the following policies shall be maintained and kept in full force and effect providing insurance with minimum limits as indicated below and issued by insurers with A.M. Best ratings of no less than A-VI:

Commercial General Liability (at least as broad as ISO CG 0001) $1,000,000 (per occurrence)
$2,000,000 (general aggregate)
Must include the following endorsements:

General Liability Additional Insured
General Liability Primary and Non-contributory
Commercial Auto Liability (at least as broad as ISO CA 0001) $1,000,000 (per accident)
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 Contracting Party shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, Commercial General Liability insurance against all claims for injuries against persons or damages to property resulting from Contracting Party’s acts or omissions rising out of or related to Contracting Party’s performance under this Agreement. The insurance policy shall contain a severability of interest clause providing that the coverage shall be primary for losses arising out of Contracting Party’s performance hereunder and neither City nor its insurers shall be required to contribute to any such loss. An endorsement evidencing the foregoing and naming the City and its officers and employees as additional insured (on the Commercial General Liability policy only) must be submitted concurrently with the execution of this Agreement and approved by City prior to commencement of the services hereunder.

Contracting Party shall carry automobile liability insurance of $1,000,000 per accident against all claims for injuries against persons or 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 261 CLICK HERE to Return to Agenda
Exhibit E

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.
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. 262 CLICK HERE to Return to Agenda
Exhibit E

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 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.
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Exhibit E

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 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 264 CLICK HERE to Return to Agenda
Exhibit E

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 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. 265 CLICK HERE to Return to Agenda
Exhibit E

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. 266 CLICK HERE to Return to Agenda
Exhibit F

Exhibit F
Indemnification
F.1 Indemnity for the Benefit of City.
a. Indemnification for Professional Liability. When the law establishes a professional standard of care for Contracting Party’s Services, to the fullest extent permitted by law, Contracting Party shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officials, employees, and agents (“Indemnified Parties”) from and against any and all claims, losses, liabilities of every kind, nature, and description, damages, injury (including, without limitation, injury to or death of an employee of Contracting Party or of any subcontractor), costs and expenses of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation, to the extent same are caused in whole or in part by any negligent or wrongful act, error or omission of Contracting Party, its officers, agents, employees or subcontractors (or any entity or individual that Contracting Party shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Contracting Party shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A without the written consent of the Contracting Party. b. Indemnification for Other Than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Contracting Party shall indemnify, defend (with counsel selected by City), and hold harmless the Indemnified Parties from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses) incurred in connection therewith and costs of investigation, where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Contracting Party or by any individual or entity for which Contracting Party is legally liable, including but not limited to officers, agents, employees, or subcontractors of Contracting Party.
c. Indemnity Provisions for Contracts Related to Construction (Limitation on Indemnity). Without affecting the rights of City under any 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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Exhibit F

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. 268 CLICK HERE to Return to Agenda
City of La Quinta
CITY COUNCIL MEETING: June 17, 2025

STAFF REPORT
AGENDA TITLE: APPROVE DEMAND REGISTERS DATED MAY 23 AND 30, 2025

RECOMMENDATION
Approve demand registers dated May 23 and 30, 2025.

EXECUTIVE SUMMARY – None

FISCAL IMPACT
Demand of Cash:

City $ 6,360,561.73
Successor Agency of RDA $ 1,800.00
Housing Authority $ 24,365.57
$ 6,386,727.30

BACKGROUND/ANALYSIS
Routine bills and payroll must be paid between Council meetings. Attachment 1 details the weekly demand registers for May 23 and 30, 2025.

Warrants Issued:
216905-216953 $ 898,649.84
EFT 223-225 $ 12,091.65
216954-217000 $ 786,848.12
EFT 226-227 $ 281.88
Voids $ (2,500.00)
Wire Transfers $4,359,154.23
Payroll Tax Transfers $ 58,713.99
Payroll Direct Deposit $ 273,487.59
$ 6,386,727.30
One check was voided and reissued. The void was the result of the check being lost in the mail.

CONSENT CALENDAR ITEM NO. 11
269 CLICK HERE to Return to Agenda
Vendor Account Name Amount Purpose
Ortiz Enterprises, Inc. Construction $642,251.21 Dune Palms Bridge Progress Payment
Riverside County Sheriff Department(1) Various $314,912.35 Police Facilities Fee & Fuel Charges
Desert Concepts Construction, Inc. Various $228,194.41 L&L/Parks Maintenance Services
Hammel, Green, and Abrahamson, Inc. Design $71,546.40 Cultural Campus Design Firstline Environmental Solutions LLC Street
Cleaning/Accident
$50,274.05 Hazmat Cleaning Service
(1) Payment were made 05/23/25 & 05/30/25.

Wire Transfers: Fourteen transfers totaled $4,359,154. Of this amount, $4,059,791 was to CalPERS and $225,637 was to Landmark. (See Attachment 2 for a complete listing).

Investment Transactions: Full details of investment transactions, as well as total holdings, are reported quarterly in the Treasurer’s Report.

Prepared by: Jesse Batres, Finance Technician
Approved by: Rosemary Hallick, Principal Management Analyst Attachments: 1. Demand Registers

2. Wire Transfers

Transaction Issuer Type Par Value
Settle
Date
Coupon
Rate YTM
Purchase BMW Bank North American CD $ 5/23/2025 4.000% 4.000% 244,000 Maturity Discover Bank CD $ 5/27/2025 3.100% 3.100% 245,000 Maturity Federal Home Loan Mortgage Corp Agency $ 1,000,000 5/27/2025 0.625% 0.625% Purchase Federal National Mortgage Assoc. Agency $ 1,000,000 5/28/2025 4.500% 4.500% 270 CLICK HERE to Return to Agenda
6/9/2025 6:29:35 PM Page 1 of 5
Demand Register
City of La Quinta Packet: APPKT04173 - 05/23/2025 JB
Vendor Name Payment Number Description (Item) Account Name Account Number Amount Fund: 101 - GENERAL FUND
JENSEN, SHARLA W 223 1 DAY SESSION CLASSES Instructors 101-3002-60107 144.00 JENSEN, SHARLA W 223 PERSONAL TRAINING 3 SESSIONS CLASS… Instructors 101-3002-60107 264.00 JENSEN, SHARLA W 223 PERSONAL TRAINING 6 SESSIONS CLASS… Instructors 101-3002-60107 1,848.00 JENSEN, SHARLA W 223 PERSONAL TRAINING 6 SESSIONS CLASS Instructors 101-3002-60107 264.00 A1 AMERICAN 216905 WC GYM WIPES 4 CASSES Operating Supplies 101-3002-60420 846.51 ANSAFONE CONTACT CENTE… 216907 04/2025 & 05/2025 - PM 10 ANSWERIN… PM 10 - Dust Control 101-7006-60146 425.68 CALIFORNIA ASSOC OF PUBLIC 216909 CAPIO MEMBERSHIP RENEWAL M.GRA… Membership Dues 101-3007-60351 300.00 CALIFORNIA BARRICADE, INC. 216910 05/2025 CONSTRUCTION BARRICADES Contingency for Operations 101-1002-60510 864.00 COACHELLA VALLEY CONSER… 216913 04/2025 - MSHCP FEES MSHCP Mitigation Fee 101-0000-20310 3,370.00 COACHELLA VALLEY CONSER… 216913 04/2025 - MSHCP FEES CVMSHCP Admin Fee 101-0000-43631 -33.70 COACHELLA VALLEY WATER D… 216914 WATER SERVICE Water - Utilities 101-2002-61200 854.55 COACHELLA VALLEY WATER D… 216914 WATER SERVICE Water -Monticello Park - Utili… 101-3005-61201 2,139.42 COACHELLA VALLEY WATER D… 216914 WATER SERVICE Water -Fritz Burns Park - Utili… 101-3005-61204 300.16 COACHELLA VALLEY WATER D… 216914 WATER SERVICE Water -Seasons Park - Utilities 101-3005-61208 29.98 COACHELLA VALLEY WATER D… 216914 WATER SERVICE Water -Community Park - Util… 101-3005-61209 40.65 COACHELLA VALLEY WATER D… 216914 WATER SERVICE Water - Utilities 101-3008-61200 74.36 COACHELLA VALLEY WATER D… 216914 WATER SERVICE Water -Desert Pride - Utilities 101-3005-61206 415.55 COACHELLA VALLEY WATER D… 216914 WATER SERVICE PM 10 - Dust Control 101-7006-60146 43.90 CONVERGINT TECHNOLOGIES… 216915 PUBLIC SAFETY REPLACEMENT Public Safety Camera System… 101-2001-60692 4,172.50 CONVERGINT TECHNOLOGIES… 216915 PUBLIC SAFETY REPLACEMENT Public Safety Camera System… 101-2001-60692 125.50 DESERT RECREATION DISTRI… 216917 04/2025 - FB POOL OPERATIONS & PRO… Fritz Burns Pool Programming 101-3003-60184 6,466.54 DESERT RESORT MANAGEM… 216918 05/2025 - SECURITY PATROL SERVICES Professional Services 101-6004-60103 4,018.43 FEDEX 216919 05/03/25 - OVERNIGHT MAIL Postage 101-1007-60470 34.56 GARDAWORLD 216921 05/2025 - ARMORED SVCS Professional Services 101-1006-60103 328.28 GRAINGER 216922 OPTIC SENSOR Materials/Supplies 101-3008-60431 189.29 GRAINGER 216922 FOLDING TABLES Operating Supplies 101-7003-60420 1,249.58 GRAINGER 216922 METER VALVE ASSEMBLY FOR LQ PARK Maintenance/Services 101-3008-60691 462.56 H&G HOME IMPROVEMENTS … 216923 STUDY SESSION WALL PANELS INSTALLA… Maintenance/Services 101-3008-60691 4,315.86 LA QUINTA HIGH SCHOOL 216928 FY 24/25 COMMUNITY SERVICE GRANT Grants & Economic Develop… 101-3001-60510 2,500.00 LIVE FROM EARTH MUSIC 216929 05/24/25 - CONCERT IN THE PARK Community Experiences 101-3003-60149 2,176.00 LOGIC COMPENSATION GRO… 216930 CLASSIFICATION JOB DESCRIPTION UPD… Professional Services 101-1004-60103 893.75 MACIAS NURSERY, INC. 216931 Materials/Supplies 101-3005-60431 565.50 ODP BUSINESS SOLUTIONS, L… 216933 Office Supplies 101-2002-60400 63.74 ODP BUSINESS SOLUTIONS, L… 216933 Operating Supplies 101-3007-60420 58.36 HVAC 125.00
TREE

OFFICE SUPPLIES

OFFICE SUPPLIES
PACIFIC WEST AIR CONDITIO… 216936 05/2025 - CH WATER TREATMENT 101-3008-60667 PALMS TO PINES PRINTING 216937 04/2025 - DUNE PALMS BRIDGE PROGR… Printing 101-3007-60410 333.21 PROPER SOLUTIONS INC 216938 05/09/25 - TEMP AGENCY SERVICES G.R… Temporary Agency Services 101-1004-60125 1,706.80 RASA/ERIC NELSON 216939 PMER 2025-0002 ONCALL MAP CHECKI… Map/Plan Checking 101-7002-60183 350.00 RASA/ERIC NELSON 216939 PMER 2025-0001 ONCALL MAP CHECKI… Map/Plan Checking 101-7002-60183 350.00 RIVERSIDE COUNTY SHERIFF … 216940 03/25-04/24/25 - MOTOR FUEL CHARGES Sheriff - Other 101-2001-60176 1,224.36 SECURITAS SECURITY SERVIC… 216941 SECURITY SERVICE FOR PRIVATE RENTAL Rental Expense 101-3003-60157 240.00 SHIRY, TERESA 216942 BALLROOM BEGINNING DI CLASSES Instructors 101-3002-60107 31.50 SMITH PIPE & SUPPLY CO 216943 EQUIPMENT OIL Tools/Equipment 101-3005-60432 42.41 STAPLES ADVANTAGE 216944 CITYWIDE CUPS Citywide Supplies 101-1007-60403 138.74 STAPLES ADVANTAGE 216944 NAME TAGS Office Supplies 101-7003-60400 18.69 STAPLES ADVANTAGE 216944 OFFICE SUPPLIES Office Supplies 101-1006-60400 121.84 TAG/AMS INC 216945 04/2025 - RANDOM DOT TESTING Consultants/Employee Servic… 101-1004-60104 345.00 TERRA NOVA PLANNING & R… 216946 01/01-04/30/25 - SPHERE ANNEXATION … Professional Services 101-6002-60103 2,592.75 THE CHAMBER 216947 05/2025 - GEM PUBLICATION Marketing & Tourism Promot… 101-3007-60461 12,778.25 T-MOBILE 216948 4/21-5/5/25 POLICE GPS/TIMING ADVA… Special Enforcement Funds 101-2001-60175 165.00 TPX COMMUNICATIONS 216949 04/23-05/22/25 - EOC PHONE SERVICE Telephone - Utilities 101-2002-61300 165.00 VINTAGE E & S INC 216951 04/22/25 - CH ELECTRIC BOX COVERS IN… Maintenance/Services 101-3008-60691 422.42 WILLIAMS, BILLEE 216953 YOGA FLOW CLASS Instructors 101-3002-60107 27.30 ATTACHMENT 1
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Vendor Name Payment Number Description (Item) Account Name Account Number Amount WILLIAMS, BILLEE 216953 PILATES CLASS Instructors 101-3002-60107 245.70 WILLIAMS, BILLEE 216953 MAT PILATES DI CLASSES Instructors 101-3002-60107 100.80 Fund 101 - GENERAL FUND Total: 61,336.28
Fund: 202 - LIBRARY & MUSEUM FUND
CINTAS FIRST AID & SAFETY 216911 LIBRARY FIRST AID SERVICES Operating Supplies 202-3004-60420 57.76 CINTAS FIRST AID & SAFETY 216911 MUSEUM FIRST AID SERVICES Operating Supplies 202-3006-60420 36.54 COACHELLA VALLEY WATER D… 216914 WATER SERVICE Water - Utilities 202-3006-61200 258.71 PACIFIC WEST AIR CONDITIO… 216936 05/2025 - LIBRARY WATER TREATMENT HVAC 202-3004-60667 125.00 Fund 202 - LIBRARY & MUSEUM FUND Total: 478.01
Fund: 215 - LIGHTING & LANDSCAPING FUND
COACHELLA VALLEY WATER D… 216914 WATER SERVICE Water - Medians - Utilities 215-7004-61211 4,188.84 IMPERIAL IRRIGATION DIST 216927 ELECTRICITY SERVICE Electric - Utilities 215-7004-61116 463.16 IMPERIAL IRRIGATION DIST 216927 ELECTRICITY SERVICE Electric - Medians - Utilities 215-7004-61117 54.10 TRI-STATE MATERIALS INC 216950 HARDSCAPE MATERIALS Materials/Supplies 215-7004-60431 2,592.45 TRI-STATE MATERIALS INC 216950 HARDSCAPE MATERIALS Materials/Supplies 215-7004-60431 4,968.46 VINTAGE E & S INC 216951 04/07-04/11/25 - AVE 52 MEDIAN LIGHT… Maintenance/Services 215-7004-60691 5,059.24 VINTAGE E & S INC 216951 04/14-04/14/25 - AVE 52 MEDIAN LIGHT… Maintenance/Services 215-7004-60691 6,208.65 Fund 215 - LIGHTING & LANDSCAPING FUND Total: 23,534.90 Fund: 221 - AB 939 - CALRECYCLE FUND
THE CHAMBER 216947 05/2025 - RECYCLING GEM PUBLICATION AB 939 Recycling Solutions 221-0000-60127 2,000.00 Fund 221 - AB 939 - CALRECYCLE FUND Total: 2,000.00
Fund: 224 - TUMF FUND
COACHELLA VALLEY ASSOC O… 216912 04/2025 - TUMF FEES TUMF Payable to CVAG 224-0000-20320 8,520.00 Fund 224 - TUMF FUND Total: 8,520.00
Fund: 401 - CAPITAL IMPROVEMENT PROGRAMS
AMERICAN BUSINESS BANK 216906 04/2025 DUNE PALMS BRIDGE RETENTI… Retention Payable 401-0000-20600 33,802.70 HAMMEL, GREEN, AND ABR… 216924 04/2025 - CULTURAL CAMPUS DESIGN Design 401-0000-60185 71,546.40 HERMANN DESIGN GROUP I… 216925 04/2025 - CITYWIDE IRRIGATION MAST… Design 401-0000-60185 10,113.75 ORTIZ ENTERPRISES INC. 216934 04/2025 - DUNE PALMS BRIDGE PROGR… Retention Payable 401-0000-20600 -33,802.70 ORTIZ ENTERPRISES INC. 216934 04/2025 - DUNE PALMS BRIDGE PROGR… Construction 401-0000-60188 676,053.91 WEBB, ALBERT A ASSOCIATES 216952 04/2025 WASHINGTON ST/ART & MUSIC… Design 401-0000-60185 34,144.85 Fund 401 - CAPITAL IMPROVEMENT PROGRAMS Total: 791,858.91 Fund: 501 - FACILITY & FLEET REPLACEMENT
WEX BANK 225 03/26-04/25/25 - FUEL Fuel & Oil 501-0000-60674 8,788.74 BMW MOTORCYCLES OF RIV… 216908 MOTORCYCLE REPAIRS A1245 Motorcycle Repair & Mainte… 501-0000-60679 477.03 DANIEL'S TIRE SERVICE, INC. 216916 TIRES FOR BACKHOE Vehicle Repair & Maintenan… 501-0000-60676 1,806.36 DANIEL'S TIRE SERVICE, INC. 216916 2017 CHEVY COLORADO VIN H1266558… Vehicle Repair & Maintenan… 501-0000-60676 894.60 HILARIO, BENJAMIN 216926 VEHICLE WASHES Vehicle Repair & Maintenan… 501-0000-60676 630.00 MYFLEETCENTER 216932 2022 CHEVY EQUINOX VIN L181405 OIL … Vehicle Repair & Maintenan… 501-0000-60676 189.25 PACIFIC MOBILE STRUCTURES… 216935 06/2025 - TRAILER RENTAL Building Leases 501-0000-71032 3,088.51 Fund 501 - FACILITY & FLEET REPLACEMENT Total: 15,874.49 Fund: 502 - INFORMATION TECHNOLOGY
MICROSOFT CORPORATION 224 04/10-05/09/25 - MS AZURE ONLINE SV… Software Licenses 502-0000-60301 782.91 TPX COMMUNICATIONS 216949 04/23-05/22/25 - PHONE SERVICE Telephone - Utilities 502-0000-61300 3,937.06 Fund 502 - INFORMATION TECHNOLOGY Total: 4,719.97
Fund: 504 - INSURANCE FUND
CINTAS FIRST AID & SAFETY 216911 FB POOL FIRST AID SERVICES Operating Supplies 504-1010-60420 58.03 CINTAS FIRST AID & SAFETY 216911 LANDSCAPE MAINT FIRST AID SERVICES Operating Supplies 504-1010-60420 13.66 CINTAS FIRST AID & SAFETY 216911 PW YARD FIRST AID SERVICES Operating Supplies 504-1010-60420 37.88 CINTAS FIRST AID & SAFETY 216911 WC FIRST AID SERVICES Operating Supplies 504-1010-60420 117.53 CINTAS FIRST AID & SAFETY 216911 CH FIRST AID SERVICES Operating Supplies 504-1010-60420 249.70 Fund 504 - INSURANCE FUND Total: 476.80
Fund: 601 - SILVERROCK RESORT
FERGUSON ENTERPRISES, INC 216920 PRESSURE ZONE BACKFLOW PREVENTER… Repair & Maintenance 601-0000-60660 962.43 GARDAWORLD 216921 05/2025 - SRR ARMORED SVCS Bank Fees 601-0000-60455 718.56 GARDAWORLD 216921 04/2025 - SRR ARMORED SVCS EXCESS … Bank Fees 601-0000-60455 15.08 272 CLICK HERE to Return to Agenda
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Vendor Name Payment Number Description (Item) Account Name Account Number Amount GARDAWORLD 216921 04/2025 - SRR ARMORED SVCS TIER PRIC… Bank Fees 601-0000-60455 246.06 Fund 601 - SILVERROCK RESORT Total: 1,942.13
Grand Total: 910,741.49
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Fund Summary
Fund Expense Amount
101 - GENERAL FUND 61,336.28
202 - LIBRARY & MUSEUM FUND 478.01
215 - LIGHTING & LANDSCAPING FUND 23,534.90
221 - AB 939 - CALRECYCLE FUND 2,000.00
224 - TUMF FUND 8,520.00
401 - CAPITAL IMPROVEMENT PROGRAMS 791,858.91
501 - FACILITY & FLEET REPLACEMENT 15,874.49
502 - INFORMATION TECHNOLOGY 4,719.97
504 - INSURANCE FUND 476.80
601 - SILVERROCK RESORT 1,942.13
Grand Total: 910,741.49
Account Summary
Account Number Account Name Expense Amount
101-0000-20310 MSHCP Mitigation Fee 3,370.00
101-0000-43631 CVMSHCP Admin Fee -33.70
101-1002-60510 Contingency for Operati… 864.00
101-1004-60103 Professional Services 893.75
101-1004-60104 Consultants/Employee S… 345.00
101-1004-60125 Temporary Agency Servi… 1,706.80
101-1006-60103 Professional Services 328.28
101-1006-60400 Office Supplies 121.84
101-1007-60403 Citywide Supplies 138.74
101-1007-60470 Postage 34.56
101-2001-60175 Special Enforcement Fu… 165.00
101-2001-60176 Sheriff - Other 1,224.36
101-2001-60692 Public Safety Camera Sys… 4,298.00
101-2002-60400 Office Supplies 63.74
101-2002-61200 Water - Utilities 854.55
101-2002-61300 Telephone - Utilities 165.00
101-3001-60510 Grants & Economic Deve… 2,500.00
101-3002-60107 Instructors 2,925.30
101-3002-60420 Operating Supplies 846.51
101-3003-60149 Community Experiences 2,176.00
101-3003-60157 Rental Expense 240.00
101-3003-60184 Fritz Burns Pool Progra… 6,466.54
101-3005-60431 Materials/Supplies 565.50
101-3005-60432 Tools/Equipment 42.41
101-3005-61201 Water -Monticello Park -… 2,139.42
101-3005-61204 Water -Fritz Burns Park -… 300.16
101-3005-61206 Water -Desert Pride - Util… 415.55
101-3005-61208 Water -Seasons Park - Ut… 29.98
101-3005-61209 Water -Community Park … 40.65
101-3007-60351 Membership Dues 300.00
101-3007-60410 Printing 333.21
101-3007-60420 Operating Supplies 58.36
101-3007-60461 Marketing & Tourism Pr… 12,778.25
101-3008-60431 Materials/Supplies 189.29
101-3008-60667 HVAC 125.00
101-3008-60691 Maintenance/Services 5,200.84
101-3008-61200 Water - Utilities 74.36
101-6002-60103 Professional Services 2,592.75
101-6004-60103 Professional Services 4,018.43
101-7002-60183 Map/Plan Checking 700.00
101-7003-60400 Office Supplies 18.69
101-7003-60420 Operating Supplies 1,249.58
101-7006-60146 PM 10 - Dust Control 469.58
202-3004-60420 Operating Supplies 57.76
202-3004-60667 HVAC 125.00
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Account Summary
Account Number Account Name Expense Amount
202-3006-60420 Operating Supplies 36.54
202-3006-61200 Water - Utilities 258.71
215-7004-60431 Materials/Supplies 7,560.91
215-7004-60691 Maintenance/Services 11,267.89
215-7004-61116 Electric - Utilities 463.16
215-7004-61117 Electric - Medians - Utilit… 54.10
215-7004-61211 Water - Medians - Utiliti… 4,188.84
221-0000-60127 AB 939 Recycling Solutio… 2,000.00
224-0000-20320 TUMF Payable to CVAG 8,520.00
401-0000-20600 Retention Payable 0.00
401-0000-60185 Design 115,805.00
401-0000-60188 Construction 676,053.91
501-0000-60674 Fuel & Oil 8,788.74
501-0000-60676 Vehicle Repair & Maint… 3,520.21
501-0000-60679 Motorcycle Repair & Ma… 477.03
501-0000-71032 Building Leases 3,088.51
502-0000-60301 Software Licenses 782.91
502-0000-61300 Telephone - Utilities 3,937.06
504-1010-60420 Operating Supplies 476.80
601-0000-60455 Bank Fees 979.70
601-0000-60660 Repair & Maintenance 962.43
Grand Total: 910,741.49
Project Account Summary
Project Account Key Project Account Name Project Name Expense Amount **None** **None** **None** 89,802.54
111205CT Construction Expense Dune Palms Bridge Imp/BRLKS-5433(014) 676,053.91 111205RP Retention Payable Dune Palms Bridge Imp/BRLKS-5433(014) 0.00 201804E Landscape & Lighting Median Islan… Landscape & Lighting Median Island Improvements 18,828.80 201901D Design Expense Village Art Plaza Promenade & Cultural Campus 71,546.40 202309D Design Expense Washington Street Connector to Art and Music Line 34,144.85 202330E Park Landscape Maintenance Servi… Park Landscape Maintenance Services 565.50 202415D Design Expense Citywide Irrigation Upgrade 10,113.75 BDAYE City Picnic & Birthday Celebration … City Picnic & Birthday Celebration 34.56 CONCERTE Concert Expense Master Account for all SRR Concert Series 2,176.00 SOIE SOI - Sphere of Influence Misc Exp… (SOI) Sphere of Influence Fiscal Study 2,592.75 SRRE SilverRock Events Expense SilverRock Events 864.00 STVRE Short Term Vacation Rental Expen… Short Term Vacation Rental Tracking 4,018.43 Grand Total: 910,741.49
*Project codes are generally used to track Capital Improvement Program (CIP) projects, other large public works projects, developer deposits, or city-wide events. Normal operational expenditures are not project coded and, therefore, will report as "none" in this section.
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Demand Register
City of La Quinta Packet: APPKT04179 - 05/30/2025 JB
Vendor Name Payment Number Description (Item) Account Name Account Number Amount Fund: 101 - GENERAL FUND
CASTRO JR, DELFIN P. 226 FY 24/25 WELLNESS DOLLARS REIMB D.… Annual Wellness Dollar Reim… 101-1004-50252 81.88 FERNANDEZ, SIJIFREDO M 227 FY 24/25 WELLNESS DOLLARS REIMB S.F… Annual Wellness Dollar Reim… 101-1004-50252 200.00 4IMPRINT 216954 GIVEAWAYS FOR CITY BDAY EVENT LQ Police Volunteers 101-2001-60109 2,654.29 AIR & HOSE SOURCE, INC. 216955 HOSES Materials/Supplies 101-3005-60431 249.24 AMERICAN FORENSIC NURSE… 216956 BLOOD ALCOHOL ANALYSIS Blood/Alcohol Testing 101-2001-60174 944.00 AMERICAN FORENSIC NURSE… 216956 BLOOD ALCOHOL ANALYSIS Blood/Alcohol Testing 101-2001-60174 368.00 BETTER WILDLIFE CONTROL L… 216958 CIVIC CENTER TURTLES/KOI RELOCATION… Maintenance/Services 101-3005-60691 4,600.00 BIO-TOX LABORATORIES 216959 BLOOD ALCOHOL ANALYSIS Blood/Alcohol Testing 101-2001-60174 226.88 BIO-TOX LABORATORIES 216959 BLOOD ALCOHOL ANALYSIS Blood/Alcohol Testing 101-2001-60174 1,380.50 BIO-TOX LABORATORIES 216959 BLOOD ALCOHOL ANALYSIS Blood/Alcohol Testing 101-2001-60174 283.05 CHARTER COMMUNICATIONS… 216962 05/16-06/15/25 - FS #32 CABLE (3201) Cable/Internet - Utilities 101-2002-61400 101.71 CHARTER COMMUNICATIONS… 216962 05/16-06/15/25 - FS #32 CABLE (3301) Cable/Internet - Utilities 101-2002-61400 10.50 CHARTER COMMUNICATIONS… 216962 05/16-06/15/25 - FS #70 CABLE (4701) Cable/Internet - Utilities 101-2002-61400 48.00 COACHELLA VALLEY WATER D… 216964 WATER SERVICE Water - Civic Center Park - Uti… 101-3005-61202 292.50 COACHELLA VALLEY WATER D… 216964 WATER SERVICE Water -Community Park - Util… 101-3005-61209 6,699.29 CV PIPELINE CORP 216966 SEPARATOR CLEANING Maintenance/Services 101-7003-60691 2,030.00 DAVE BANG, INC. 216967 EISENHOWER PARK REPLACEMENT PAR… Materials/Supplies 101-3005-60431 482.06 DESERT CONCEPTS CONSTR… 216968 05/2025 - PARKS LANDSCAPE MAINTEN… Landscape Contract 101-3005-60112 79,300.58 DESERT CONCEPTS CONSTR… 216968 05/2025 - L&L MAINTENANCE SERVICES Landscape Contract 101-2002-60112 5,000.00 DESERT CONCEPTS CONSTR… 216968 05/16/25 - CH BOUGAINVILLEA REMOV… Maintenance/Services 101-3005-60691 1,440.00 DESERT GROWERS NURSERY 216969 PLANTS Materials/Supplies 101-3005-60431 156.60 DESERT TREE SPRAYING 216970 FIREANT TREATMENT AT SRR EVENT PA… Maintenance/Services 101-3005-60691 450.00 FIRSTLINE ENVIRONMENTAL … 216971 HAZMAT CLEANING FRED WARING/WA… Street Cleaning/Accidents 101-7003-60120 50,274.05 FRONTIER COMMUNICATIO… 216972 05/2025 - LQ PARK PHONE Telephone - Utilities 101-3005-61300 62.66 GRAINGER 216973 PARTITION COLUMN FOR FB PARK Materials/Supplies 101-3008-60431 114.42 GRAINGER 216973 TRANSPORT DRUMS Tools/Equipment 101-7003-60432 677.57 HR GREEN PACIFIC INC 216974 04/2025 - ONCALL PLAN CHECK ENGINE… Map/Plan Checking 101-7002-60183 2,205.00 JNS MEDIA SPECIALISTS 216975 MEDIA VIDEO/PHOTO PROJECT Marketing & Tourism Promot… 101-3007-60461 13,800.00 JOE A GONSALVES & SON 216976 12/2024 - LOBBYIST SERVICES Contract Services - Administr… 101-1002-60101 3,500.00 JOE A GONSALVES & SON 216976 06/2025 - LOBBYIST SERVICES Contract Services - Administr… 101-1002-60101 3,500.00 MERCHANTS BUILDING MAI… 216977 03/19/25 - SRR EVENT PARK RESTROOM… Janitorial 101-3008-60115 47.76 MERCHANTS BUILDING MAI… 216977 03/22/25 - SRR EVENT PARK RESTROOM… Janitorial 101-3008-60115 47.76 MERCHANTS BUILDING MAI… 216977 04/2025 - JANITORIAL SERVICES Janitorial 101-3008-60115 15,833.98 MERCHANTS BUILDING MAI… 216977 04/19/25 - RESTOCK LQ PARK RESTRO… Janitorial 101-3008-60115 47.76 MICHELLE GONZALEZ 216978 05/11-05/14/25 - TYLER CONNECT M.G… Travel & Training 101-6006-60320 641.74 MISSION LINEN SUPPLY 216979 05/08/25 - UNIFORM LAUNDRY SERVICE Uniforms 101-3005-60690 39.35 MISSION LINEN SUPPLY 216979 05/08/25 - UNIFORM LAUNDRY SERVICE Uniforms 101-3008-60690 23.62 MISSION LINEN SUPPLY 216979 05/15/25 - UNIFORM LAUNDRY SERVICE Uniforms 101-3005-60690 39.22 MISSION LINEN SUPPLY 216979 05/15/25 - UNIFORM LAUNDRY SERVICE Uniforms 101-3008-60690 23.53 MISSION LINEN SUPPLY 216979 05/22/25 - UNIFORM LAUNDRY SERVICE Uniforms 101-3005-60690 39.35 MISSION LINEN SUPPLY 216979 05/22/25 - UNIFORM LAUNDRY SERVICE Uniforms 101-3008-60690 23.62 MISSION LINEN SUPPLY 216979 M&O DUFFEL BAGS Operating Supplies 101-7003-60420 592.31 MONTENEGRO, ALEXIS 216980 CLASS A DMV LICENSE FEE REIMB A.MO… Travel & Training 101-7003-60320 100.06 NATIONAL STORMWATER C… 216982 06/11/25 - CACEO TRAINING FOR CODE… Travel & Training 101-6004-60320 600.00 NATIONAL STORMWATER C… 216982 07/14/25 - CACEO TRAINING FOR CODE… Prepaid Expense 101-0000-13600 1,200.00 OCEAN SPRINGS TECH INC 216983 05/2025 - LQ PARK SPLASH PAD MAINT… LQ Park Water Feature 101-3005-60554 2,854.00 PAX FITNESS REPAIR 216984 FITNESS EQUIPMENT REPAIRS Operating Supplies 101-3002-60420 800.26 PROPER SOLUTIONS INC 216985 05/16/25 - TEMP AGENCY SERVICES G.R… Temporary Agency Services 101-1004-60125 1,706.80 RED TERRA NURSERY, LLC 216986 PLANTS Materials/Supplies 101-3005-60431 1,315.88 RIVERSIDE ASSESSOR 216987 04/2025 - RECORDING FEES Technical 101-6004-60108 420.00 RIVERSIDE COUNTY SHERIFF … 216988 07/01/24-06/30/25 - POLICE FACILITIES … Sheriff - Other 101-2001-60176 313,687.99 SOUTHWEST AQUATICS INC 216992 05/2025 - LAKE MAINTENANCE SERVICES Civic Center Lake Maintenan… 101-3005-60117 1,417.50 SOUTHWEST AQUATICS INC 216992 05/2025 - LAKE MAINTENANCE SERVICES SilverRock Lake Maintenance 101-3005-60189 1,417.50 276 CLICK HERE to Return to Agenda
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Vendor Name Payment Number Description (Item) Account Name Account Number Amount US BANK 216997 01/01-03/31/25 - CUSTODY SERVICE FEE Administration 101-1006-60102 3,750.00 VERIZON WIRELESS 216998 04/14-05/13/25 - EOC CELL (7813) Mobile/Cell Phones/Satellites 101-2002-61304 135.55 VINTAGE ASSOCIATES 216999 05/2025 - SRR LANDSCAPE MAINTENAN… Landscape Contract 101-3005-60112 14,181.33 Fund 101 - GENERAL FUND Total: 542,119.65
Fund: 201 - GAS TAX FUND
CUSTOM CONCRETE CREATI… 216965 PURCHASE OF SIDEWALK LIFTER Machinery & Equipment 201-7003-80100 7,964.62 MISSION LINEN SUPPLY 216979 05/08/25 - UNIFORM LAUNDRY SERVICE Uniforms 201-7003-60690 47.22 MISSION LINEN SUPPLY 216979 UNIFORMS Uniforms 201-7003-60690 49.59 MISSION LINEN SUPPLY 216979 05/15/25 - UNIFORM LAUNDRY SERVICE Uniforms 201-7003-60690 47.06 MISSION LINEN SUPPLY 216979 05/22/25 - UNIFORM LAUNDRY SERVICE Uniforms 201-7003-60690 47.22 SIGNARAMA 216989 WAYFINDERS SIGNS Traffic Control Signs 201-7003-60429 695.92 TOPS' N BARRICADES INC 216994 TRAFFIC CONTROL SIGNS Traffic Control Signs 201-7003-60429 201.75 TOPS' N BARRICADES INC 216994 TRAFFIC CONTROL SIGNS Traffic Control Signs 201-7003-60429 56.55 TOPS' N BARRICADES INC 216994 TRAFFIC SIGN HARDWARE Traffic Control Signs 201-7003-60429 271.88 TOPS' N BARRICADES INC 216994 TRAFFIC CONTROL SIGNS Traffic Control Signs 201-7003-60429 41.11 TOPS' N BARRICADES INC 216994 TRAFFIC CONTROL SIGNS Traffic Control Signs 201-7003-60429 793.88 TOPS' N BARRICADES INC 216994 TRAFFIC CONTROL SIGN Traffic Control Signs 201-7003-60429 54.27 TOPS' N BARRICADES INC 216994 TRAFFIC CONTROL SIGN HARDWARE Traffic Control Signs 201-7003-60429 133.76 Fund 201 - GAS TAX FUND Total: 10,404.83
Fund: 202 - LIBRARY & MUSEUM FUND
DESERT CONCEPTS CONSTR… 216968 05/2025 - PARKS LANDSCAPE MAINTEN… Landscape Contract 202-3004-60112 2,767.75 DESERT CONCEPTS CONSTR… 216968 05/2025 - PARKS LANDSCAPE MAINTEN… Landscape Contract 202-3006-60112 1,730.00 FRONTIER COMMUNICATIO… 216972 05/04-06/03/25 - LIBRARY DIA CIRCUIT Cable/Internet - Utilities 202-3004-61400 704.15 FRONTIER COMMUNICATIO… 216972 05/13-06/12/25 - MUSEUM PHONE Telephone - Utilities 202-3006-61300 190.95 MERCHANTS BUILDING MAI… 216977 04/2025 - JANITORIAL SERVICES Janitorial 202-3004-60115 3,264.32 MERCHANTS BUILDING MAI… 216977 04/2025 - JANITORIAL SERVICES Janitorial 202-3006-60115 989.54 Fund 202 - LIBRARY & MUSEUM FUND Total: 9,646.71
Fund: 215 - LIGHTING & LANDSCAPING FUND
BLUETRITON BRANDS INC 216960 DRINKING WATER Operating Supplies 215-7004-60420 65.64 COACHELLA VALLEY WATER D… 216964 WATER SERVICE Water - Medians - Utilities 215-7004-61211 3,915.59 DESERT CONCEPTS CONSTR… 216968 05/2025 - PARKS LANDSCAPE MAINTEN… Landscape Contract 215-7004-60112 14,535.00 DESERT CONCEPTS CONSTR… 216968 05/2025 - L&L MAINTENANCE SERVICES Landscape Contract 215-7004-60112 461.08 DESERT CONCEPTS CONSTR… 216968 05/2025 - L&L MAINTENANCE SERVICES Landscape Contract 215-7004-60112 110,000.00 DESERT CONCEPTS CONSTR… 216968 05/05-05/09/25 - AVE 52 MEDIAN REST… Maintenance/Services 215-7004-60691 7,200.00 DESERT CONCEPTS CONSTR… 216968 05/12-05/15/25 - AVE 52 MEDIAN REST… Maintenance/Services 215-7004-60691 5,760.00 FRONTIER COMMUNICATIO… 216972 05/07-06/06/25 - PHONE SERVICE Electric - Utilities 215-7004-61116 167.00 FRONTIER COMMUNICATIO… 216972 05/10-06/09/25 - PHONE SERVICE Electric - Utilities 215-7004-61116 72.77 SMITH PIPE & SUPPLY CO 216991 IRRIGATION PVC PIPES Materials/Supplies 215-7004-60431 115.70 TRI-STATE MATERIALS INC 216995 HARDSCAPE MATERIALS Materials/Supplies 215-7004-60431 3,746.48 TRI-STATE MATERIALS INC 216995 HARDSCAPE MATERIALS Materials/Supplies 215-7004-60431 2,435.74 VINTAGE ASSOCIATES 216999 05/2025 - SRR LANDSCAPE MAINTENAN… Landscape Contract 215-7004-60112 5,129.00 VINTAGE ASSOCIATES 216999 05/2025 - SRR LANDSCAPE MAINTENAN… SilverRock Way Landscape 215-7004-60143 5,671.00 VINTAGE E & S INC 217000 04/21-05/02/25 - AVE 52 MEDIAN LIGHT… Maintenance/Services 215-7004-60691 5,025.76 Fund 215 - LIGHTING & LANDSCAPING FUND Total: 164,300.76 Fund: 237 - SUCCESSOR AGCY PA 1 ADMIN
US BANK 216997 04/01/25-03/31/26 - 2021 BOND TRUST… Prepaid Expense 237-0000-13600 1,800.00 Fund 237 - SUCCESSOR AGCY PA 1 ADMIN Total: 1,800.00
Fund: 241 - HOUSING AUTHORITY
CAHA, BECKY 216961 04/2025 - HOUSING CONSULTANT SERV… Professional Services 241-9101-60103 7,537.50 Fund 241 - HOUSING AUTHORITY Total: 7,537.50
Fund: 270 - ART IN PUBLIC PLACES FUND
SIGNATURE SCULPTURE 216990 APP WASHINGTON ST BRIDGE REPAINTI… APP Maintenance & Display 270-0000-60683 2,579.00 Fund 270 - ART IN PUBLIC PLACES FUND Total: 2,579.00
Fund: 401 - CAPITAL IMPROVEMENT PROGRAMS
MSA CONSULTING INC 216981 04/2025 - LQ CULTURAL CAMPUS SURV… Technical 401-0000-60108 2,030.00 MSA CONSULTING INC 216981 04/2025 - HWY 111 RESURFACING PROJ… Technical 401-0000-60108 9,968.75 ST. FRANCIS ELECTRIC, LLC 216993 04/2025 - ONCALL TRAFFIC SIGNAL MAI… Construction 401-0000-60188 10,040.50 Fund 401 - CAPITAL IMPROVEMENT PROGRAMS Total: 22,039.25 277 CLICK HERE to Return to Agenda
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Vendor Name Payment Number Description (Item) Account Name Account Number Amount Fund: 501 - FACILITY & FLEET REPLACEMENT
CHEVROLET CADILLAC 216963 2018 CHEVY SILVERADO VIN Z252560 R… Vehicle Repair & Maintenan… 501-0000-60676 1,633.52 CHEVROLET CADILLAC 216963 2022 CHEVY COLORADO VIN N1331388… Vehicle Repair & Maintenan… 501-0000-60676 98.44 VINTAGE E & S INC 217000 CH EV CHARGERS MAINTENANCE SERVI… City Bldg Repl/Repair 501-0000-71103 4,522.98 Fund 501 - FACILITY & FLEET REPLACEMENT Total: 6,254.94 Fund: 502 - INFORMATION TECHNOLOGY
CHARTER COMMUNICATIONS… 216962 05/15-06/14/25 - WC CABLE (3301) Cable/Internet - Utilities 502-0000-61400 168.08 CHARTER COMMUNICATIONS… 216962 05/10-06/09/25 - CH CABLE (2601) Cable/Internet - Utilities 502-0000-61400 191.29 CHARTER COMMUNICATIONS… 216962 05/10-06/09/25 - CH INTERNET (1801) Cable/Internet - Utilities 502-0000-61400 2,079.00 CHARTER COMMUNICATIONS… 216962 05/10-06/09/25 - WC CABLE (2101) Cable/Internet - Utilities 502-0000-61400 14.73 CHARTER COMMUNICATIONS… 216962 05/10-06/09/25 - CITY YARD CABLE (580… Cable/Internet - Utilities 502-0000-61400 81.63 FRONTIER COMMUNICATIO… 216972 05/03-06/02/25 - 2ND CITY INTERNET LI… Cable/Internet - Utilities 502-0000-61400 2,619.73 FRONTIER COMMUNICATIO… 216972 05/12-06/11/25 - X-PARK INTERNET Cable/Internet - Utilities 502-0000-61400 1,086.48 FRONTIER COMMUNICATIO… 216972 05/04-06/03/25 - WC DIA CIRCUIT Cable/Internet - Utilities 502-0000-61400 704.15 FRONTIER COMMUNICATIO… 216972 05/04-06/03/25 - DSL SVC Cable/Internet - Utilities 502-0000-61400 727.90 TRITON TECHNOLOGY SOLUT… 216996 HELO BACK UP RECORDER AJA FOR CH… Maintenance Agreements 502-0000-60300 2,305.68 VERIZON WIRELESS 216998 04/02-05/01/25 - CITY IPADS (5587) Cell/Mobile Phones 502-0000-61301 1,262.82 VERIZON WIRELESS 216998 04/02-05/01/25 - CITY CELL SVC (5496) Cell/Mobile Phones 502-0000-61301 6,781.12 Fund 502 - INFORMATION TECHNOLOGY Total: 18,022.61
Fund: 503 - PARK EQUIP & FACILITY FUND
BELSON OUTDOORS LLC 216957 FIXIT PLUS BIKE REPAIR STATION Parks 503-0000-71060 2,424.75 Fund 503 - PARK EQUIP & FACILITY FUND Total: 2,424.75
Grand Total: 787,130.00
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Fund Summary
Fund Expense Amount
101 - GENERAL FUND 542,119.65
201 - GAS TAX FUND 10,404.83
202 - LIBRARY & MUSEUM FUND 9,646.71
215 - LIGHTING & LANDSCAPING FUND 164,300.76
237 - SUCCESSOR AGCY PA 1 ADMIN 1,800.00
241 - HOUSING AUTHORITY 7,537.50
270 - ART IN PUBLIC PLACES FUND 2,579.00
401 - CAPITAL IMPROVEMENT PROGRAMS 22,039.25
501 - FACILITY & FLEET REPLACEMENT 6,254.94
502 - INFORMATION TECHNOLOGY 18,022.61
503 - PARK EQUIP & FACILITY FUND 2,424.75
Grand Total: 787,130.00
Account Summary
Account Number Account Name Expense Amount
101-0000-13600 Prepaid Expense 1,200.00
101-1002-60101 Contract Services - Admi… 7,000.00
101-1004-50252 Annual Wellness Dollar … 281.88
101-1004-60125 Temporary Agency Servi… 1,706.80
101-1006-60102 Administration 3,750.00
101-2001-60109 LQ Police Volunteers 2,654.29
101-2001-60174 Blood/Alcohol Testing 3,202.43
101-2001-60176 Sheriff - Other 313,687.99
101-2002-60112 Landscape Contract 5,000.00
101-2002-61304 Mobile/Cell Phones/Sate… 135.55
101-2002-61400 Cable/Internet - Utilities 160.21
101-3002-60420 Operating Supplies 800.26
101-3005-60112 Landscape Contract 93,481.91
101-3005-60117 Civic Center Lake Maint… 1,417.50
101-3005-60189 SilverRock Lake Mainten… 1,417.50
101-3005-60431 Materials/Supplies 2,203.78
101-3005-60554 LQ Park Water Feature 2,854.00
101-3005-60690 Uniforms 117.92
101-3005-60691 Maintenance/Services 6,490.00
101-3005-61202 Water - Civic Center Park… 292.50
101-3005-61209 Water -Community Park … 6,699.29
101-3005-61300 Telephone - Utilities 62.66
101-3007-60461 Marketing & Tourism Pr… 13,800.00
101-3008-60115 Janitorial 15,977.26
101-3008-60431 Materials/Supplies 114.42
101-3008-60690 Uniforms 70.77
101-6004-60108 Technical 420.00
101-6004-60320 Travel & Training 600.00
101-6006-60320 Travel & Training 641.74
101-7002-60183 Map/Plan Checking 2,205.00
101-7003-60120 Street Cleaning/Accidents 50,274.05
101-7003-60320 Travel & Training 100.06
101-7003-60420 Operating Supplies 592.31
101-7003-60432 Tools/Equipment 677.57
101-7003-60691 Maintenance/Services 2,030.00
201-7003-60429 Traffic Control Signs 2,249.12
201-7003-60690 Uniforms 191.09
201-7003-80100 Machinery & Equipment 7,964.62
202-3004-60112 Landscape Contract 2,767.75
202-3004-60115 Janitorial 3,264.32
202-3004-61400 Cable/Internet - Utilities 704.15
202-3006-60112 Landscape Contract 1,730.00
202-3006-60115 Janitorial 989.54
202-3006-61300 Telephone - Utilities 190.95
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Account Summary
Account Number Account Name Expense Amount
215-7004-60112 Landscape Contract 130,125.08
215-7004-60143 SilverRock Way Landsca… 5,671.00
215-7004-60420 Operating Supplies 65.64
215-7004-60431 Materials/Supplies 6,297.92
215-7004-60691 Maintenance/Services 17,985.76
215-7004-61116 Electric - Utilities 239.77
215-7004-61211 Water - Medians - Utiliti… 3,915.59
237-0000-13600 Prepaid Expense 1,800.00
241-9101-60103 Professional Services 7,537.50
270-0000-60683 APP Maintenance & Disp… 2,579.00
401-0000-60108 Technical 11,998.75
401-0000-60188 Construction 10,040.50
501-0000-60676 Vehicle Repair & Maint… 1,731.96
501-0000-71103 City Bldg Repl/Repair 4,522.98
502-0000-60300 Maintenance Agreements 2,305.68
502-0000-61301 Cell/Mobile Phones 8,043.94
502-0000-61400 Cable/Internet - Utilities 7,672.99
503-0000-71060 Parks 2,424.75
Grand Total: 787,130.00
Project Account Summary
Project Account Key Project Account Name Project Name Expense Amount **None** **None** **None** 519,320.37
201804E Landscape & Lighting Median Islan… Landscape & Lighting Median Island Improvements 11,323.68 201901T Technical Expense Village Art Plaza Promenade & Cultural Campus 2,030.00 202328E Citywide Landscape Maintenance … Citywide Landscape Maintenance Srvcs (L&L AD 89-1) 128,421.08 202330E Park Landscape Maintenance Servi… Park Landscape Maintenance Services 101,245.81 202412T Technical Expense FY24/25 PMP - Fred Waring Drive - Misc Locations 9,968.75 2425TMICT Construction Expense FY24/25 Traffic Maintenance Improvements10,040.50 BDAYE City Picnic & Birthday Celebration … City Picnic & Birthday Celebration 2,654.29 CONCERTE Concert Expense Master Account for all SRR Concert Series 95.52 CSA152E CSA 152 Expenses CSA 152 Project Tracking 2,030.00 Grand Total: 787,130.00
*Project codes are generally used to track Capital Improvement Program (CIP) projects, other large public works projects, developer deposits, or city-wide events. Normal operational expenditures are not project coded and, therefore, will report as "none" in this section.
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City of La Quinta
Bank Transactions 05/19/2025-05/30/2025
Wire Transaction
Listed below are the wire transfers from 05/19/2025-05/30/2025.

Wire Transfers:
05/19/2025 - WIRE TRANSFER - LANDMARK $225,637.40
05/22/2025 - WIRE TRANSFER - CALPERS $25,444.00
05/22/2025 - WIRE TRANSFER - CALPERS $69,299.00
05/22/2025 - WIRE TRANSFER - CALPERS $3,905,257.00
05/22/2025 - WIRE TRANSFER - J&H ASSET PROPERTY MANAGEMENT, INC. $35,938.34 05/29/2025 - WIRE TRANSFER - CALPERS $7,670.57
05/29/2025 - WIRE TRANSFER - COLONIAL LIFE $9,099.14
05/29/2025 - WIRE TRANSFER - CALPERS $15,430.47
05/29/2025 - WIRE TRANSFER - CALPERS $36,689.86
05/29/2025 - WIRE TRANSFER - LQCEA $583.00
05/29/2025 - WIRE TRANSFER - MISSION SQUARE $4,105.00
05/29/2025 - WIRE TRANSFER - MISSION SQUARE $15,925.34
05/30/2025 - WIRE TRANSFER - STANDARD OF OREGON $1,824.64 05/30/2025 - WIRE TRANSFER - LINCOLN NATIONAL $6,250.47 TOTAL WIRE TRANSFERS OUT $4,359,154.23
ATTACHMENT 2
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City of La Quinta
CITY COUNCIL MEETING: June 17, 2025

STAFF REPORT
AGENDA TITLE: APPROVE SILVERROCK RESORT 2025/26 ANNUAL PLAN

RECOMMENDATION
Approve the SilverRock Resort 2025/26 Annual Plan.

EXECUTIVE SUMMARY
 Landmark Golf Management LLC (Landmark) manages the SilverRock Resort golf course and is required to provide an annual operations plan for Council’s review and approval.
 The SilverRock 2025/26 Annual Plan (Plan) (Attachment 1) reflects the projected number of rounds, revenues, and operation costs.
 The golf operations are projected to have a net loss of $496,000 due to several factors including increased operational expenses, allocation of resident card sales revenue, and continued on-site construction.

FISCAL IMPACT
The General Fund is projected to underwrite $600,000 of the overall fiscal year (FY) 2025/26 SilverRock expenses. The projected golf operations expenses (not including City staff oversight costs) are $5,657,771; and projected golf operations revenue is $5,161,510 for a net loss of $496,261. The City will also fund $305,000 for golf course and non-golf course management/oversight by City staff and will recognize $150,000 in resident card revenue, which is not currently listed in the Plan. All revenue and expenses will be included in the proposed FY 2025/26 City Budget.

SilverRock Golf Course FY 2025/26
Operations Revenue $5,161,510
Operations Budget -$5,657,771
Net Revenue ($496,261)
SilverRock Property Management/Oversight FY 2025/26
General Fund Advance 600,000
City Management/Oversight -305,000
Resident Card Revenue 150,000
Golf Course Net Revenue -496,261
Final Surplus/(Deficit) (51,261)
BUSINESS SESSION ITEM NO. 3
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BACKGROUND/ANALYSIS
In July 2013, the City entered into a Golf Course Management Agreement (Agreement) with Landmark. The Agreement requires an annual plan for golf operations. The Plan provides projected annual revenues and expenses, department costs, staffing and service levels. In 2023, Council approved Amendment No. 6 to the Agreement, extending the term through June 30, 2026. The Plan forecasts continuing the food service from the Ahmanson House and continuing the pro-shop from the temporary club house until the permanent club house opens.

Additional assumptions include:
 41,445 rounds of play with an average projected revenue of $113.89 per round, based on the total revenue (less food and beverage) divided by the total rounds.

The average green fee is $104.43. The difference between revenue per round and the average green fee is the additional revenue generated from merchandise sales, and revenue from the driving range, including lessons. Revenue from the food and beverage operations is not included.
 No increase to the minimum wage is projected at this time.  Continuing the 2% annual contribution of approximately $87,000 to the capital reserve as contained in Amendment No. 2 to the Agreement. The current balance of the capital reserve is $740,000.
 Increasing the annual management fee by 5% pursuant to Amendment No. 6.

The proposed advertising budget is $113,787 and is included in the Marketing Department expenses ($173,662) on page 18 of the Plan. SilverRock will continue to be promoted as a premier golf destination, especially during hotel construction, via the internet, newspapers, magazines, directories, television, and radio.

ALTERNATIVES
Council may direct staff to make modifications to the Annual Plan.

Prepared by: Claudia Martinez, Finance Director/City Treasurer Approved by: Jon McMillen, City Manager
Attachment: 1. SilverRock Resort 2025/26 Annual Plan
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SilverRock Resort-Arnold Palmer Classic Course
2025-2026 ANNUAL PLAN
Prepared For:

City of La Quinta
SilverRock Resort
Prepared By:

Landmark Golf Management
Submitted:

May 20, 2025
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ATTACHMENT 1

SILVERROCK RESORT
Annual Plan
Fiscal Year 2025-2026
Table of Contents
Part I-Project Overview
Project Fact Sheet 1
Mission Statement 2
Philosophy Statement 3
Organizational Chart 4
Key Employee Staffing 5
Part II-Assumptions
2025-2026 Assumptions 6, 7, 8, 9
Part III-Operational Financial Projections
2025-2026 Consolidated Income Statement 10
Part IV-Department Detail
Golf Rounds and Revenue 11
Golf Shop / Merchandise 12
Carts, Bagroom & Range 13
Course Services 14
Golf Course Maintenance 15, 16
General & Administrative 17
Marketing 18
Clubhouse 19
Miscellaneous 20
Part V-Food and Beverage
Department Detail 21
Part VI-Other
Marketing Narrative Plan 22, 23, 24
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COURSE NAME SilverRock Resort-Arnold Palmer Classic Course ADDRESS 79-179 Ahmanson Lane, La Quinta, Ca. 92253
TELEPHONE 1-888-600-7272
1-760-777-8884
WEBSITE WWW.SILVERROCK.ORG
MANAGEMENT Randy Duncan, PGA, Director of Golf / General Manager Chris Hoyer, Golf Course Superintendent
COURSE YARDAGE SILVER 7,239 PAR 72
GOLD 6,809 PAR 72
BLUE 6,313 PAR 72
WHITE 5,669 PAR 72
GREEN 5,089 PAR 72
RED 4,542 PAR 72
GRASS TYPES GREENS: TIF DWARF / MINIVERDE
FAIRWAY / TEES: TIF SPORT / 419 / LATITUDE 36
ROUGHS: TIF SPORT / 419 / LATITUDE 36

OWNER CITY OF LA QUINTA

MANAGED BY LANDMARK GOLF MANAGEMENT, LLC
74-947 HIGHWAY 111, SUITE 215
INDIAN WELLS, CA 92210
PHONE: (760) 776-6688
DATE COURSE OPENED February 14, 2005

PROJECT FACT SHEET
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SILVERROCK RESORT
Annual Plan
Fiscal Year 2025-2026
Mission Statement
“TO BE THE BEST”
“TO HAVE THE BEST GOLF FACILITIES”
“TO HAVE THE BEST GOLF COURSE CONDITIONS”
“TO PROVIDE THE BEST SERVICE”
SilverRock Resort is dedicated to providing the finest public golf experience. All Staff Members of the facility play an important role in our Mission. Staff is supported through training and resources to ensure success. SilverRock Resort aspires to represent ownership and management with the highest standard of service in the Golf/Resort Industry and produce superior golf course conditions to meet and exceed the goals.

Goals and Objectives: To support our Mission Statement and to achieve the projected Annual Plan; SilverRock Resort will pursue the following goals and objectives:
• To hire and train staff members that will provide a high standard of guest services and maintain the highest level of course conditions
• To maintain and pursue an aggressive Marketing Plan that benefits/acknowledges the La Quinta Residents, local residents, avid tourist golfers and golfing public
• To have each Department operate within their annual budget allowing SilverRock Resort to reach the net operating goals 288 CLICK HERE to Return to Agenda

SILVERROCK RESORT
Annual Plan
Fiscal Year 2025-2026

PHILOSOPHY STATEMENT
After twenty and a half years of operations, an Annual Plan accommodated the operational start-up through and including grow-in, final construction of the Arnold Palmer Classic Course, a notable Grand Opening Celebration and four successful years as one of the home courses of the Bob Hope Classic. As the 2025-2026 Annual Plan is implemented, SilverRock will embark on its 21st year of operations. Focus will continue to be on broadening the awareness, marketability and noteworthiness of SilverRock Resort’s Arnold Palmer Classic Course, golf facilities and amenities.

The philosophy that Landmark Golf Management perpetuates at SilverRock Resort is: an operation that allows management to utilize golf industry best-practices in accommodating market-driven demands as market shifts may occur. Each golf course facility has its own personality and characteristics; therefore, each golf operation is unique to some degree and should be managed with personality and characteristics taken into consideration. Golf operators that adjust procedures to short and long term market and industry fluctuations are better suited to maximize opportunities.

In this upcoming twelve months of operations, Landmark Golf Management will put forth every effort to best position SilverRock Resort as a place to frequent in the eyes and minds of the influential decision makers in the world of golf.

BRAND PROMISE
Discover the mystique of SilverRock Resort, the crown
jewel of La Quinta and its golf legacy. Rich in both
history and legend, the majestic Santa Rosa Mountains
frame an unwavering commitment to an exceptional
experience at SilverRock Resort.

Our Promise: Exceptional in All, For All, Always.
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Annual Plan 2025-2026 SRR.xls
Asst. Golf Professionals
Golf Shop BuyerSales Associates
Carts/Bag Room Shuttle/Valet
Starters/Rangers Driving Range
Guest / Outside Service
Outside Services Manager
Golf Shop
Head Golf Professional
Asst. Superintendent
Mechanic(s)
Irrigation Technician
Spray TechnicianGreenskeeper(s)
Administrative Asst.

Golf Course Maintenance
Superintendent
Admin. Asst.

To Controller & GM
Accounting
Controller / Human Resources
Restaurant
F&B Server(s) / Cart Attendent(s)
Food & Beverage
F&B Manager
Marketing & Sales
Tournament Sales Manager
SilverRock - Randy Duncan
General Mgr. / Director of Golf
Landmark Golf Management Management Team
City Manager
City of La Quinta
City Council & Staff
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RUN DATE: 20-May-25
Key Employee Staffing PREPARED BY:

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

GOLF OPERATION OUTSIDE SERVICES
OUTSIDE SERVICES MANAGER (FULL TIME) 1 1 1 1 1 1 1 1 1 1 1 1OUTSIDE SERVICES SUPERVISORS (FULL-TIME) 1 1 1 1 1 1 1 1 1 1 1 1 DRIVING RANGE (PART-TIME) 1 1 1 1 1 1 2 2 2 2 1 1
CART/BAG/VALET/BAG DROP (FULL-TIME) 1 1 1 1 1 1 1 1 1 1 1 1 CART/BAG/VALET/BAG DROP (PART-TIME) 3 3 4 6 9 9 9 9 9 9 8 4 SHUTTLE DRIVER (PART-TIME) 1 1 1 1 2 2 2 2 2 2 0 0
8 8 9 11 15 15 16 16 16 16 12 8

GOLF SHOP
HEAD GOLF PROFESSIONAL (FULL TIME) 1 1 1 1 1 1 1 1 1 1 1 1 1ST ASSISTANT PROFESSIONAL (FULL TIME) 0 0 0 0 0 0 0 0 0 0 0 0 MERCHANDISER (FULL TIME) 1 1 1 1 1 1 1 1 1 1 1 1
ASSISTANT PROFESSIONAL (FULL TIME) 1 1 1 1 1 1 1 1 1 1 1 1 SALES CLERKS (FULL TIME) 0 0 0 0 1 1 1 1 1 1 0 0
SALES CLERKS (PART TIME) 2 2 3 4 4 4 4 4 4 4 4 2
5 5 6 7 8 8 8 8 8 8 7 5

COURSE SERVICES
STARTERS (PART TIME) 3 3 3 3 5 5 5 5 5 5 5 3
RANGER/MARSHALS (PART TIME) 1 1 1 1 5 5 5 5 5 5 4 3
4 4 4 4 10 10 10 10 10 10 9 6

GOLF COURSE MAINTENANCE
SUPERINTENDENT (FULL TIME) 1 1 1 1 1 1 1 1 1 1 1 1
ASST SUPERINTENDENT (FULL TIME) 1 1 1 1 1 1 1 1 1 1 1 1 FOREMAN/SPRAY TECHNICIAN (FULL TIME) 1 1 1 1 1 1 1 1 1 1 1 1HEAD MECHANIC / FACILITY MANAGER (FULL TIME)1 1 1 1 1 1 1 1 1 1 1 1 ASST MECHANIC (FULL TIME) 1 1 1 1 1 1 1 1 1 1 1 1
HEAD IRRIGATOR (FULL TIME) 1 1 1 1 1 1 1 1 1 1 1 1
ASST IRRIGATOR (FULL TIME) 1 1 1 1 1 1 1 1 1 1 1 1
GREENKEEPERS (FULL TIME) 8 8 8 9 9 9 9 9 9 9 9 8
GRENSKEEPERS (PART TIME) 3 3 3 3 3 3 3 3 3 3 3 3
TOTAL COURSE MAINTENANCE STAFF 18 18 18 19 19 19 19 19 19 19 19 18

FOOD & BEVERAGE
F & B MANAGER / SUPERVISOR (FULL TIME) 0 0 0 0 0 0 0 0 0 0 0 0 CHEF (FULL TIME) 1 1 1 1 1 1 1 1 1 1 1 1
COOK (FULL TIME) 1 1 1 1 1 2 2 2 2 2 1 1
PREP COOK (PART TIME) 0 0 0 1 2 2 3 3 3 3 2 0
LEAD SERVER (FULL-TIME) 1 1 1 1 1 1 1 1 1 1 1 1
F & B WAIT/BEVERAGE CART/HALF(FULL TIME) 1 1 1 1 1 1 1 1 1 1 1 1F & B WAIT/BEVERAGE CART/HALF(PART TIME) 2 2 2 1 3 4 4 4 4 3 2 1 BUSER / DISHWASHER (PART TIME) 0 0 1 0 1 1 1 1 1 1 1 0
6 6 7 6 10 12 13 13 13 12 9 5
G & A
DIRECTOR OF GOLF/GM (FULL TIME) 1 1 1 1 1 1 1 1 1 1 1 1 CLUB CONTROLLER (FULL TIME) 1 1 1 1 1 1 1 1 1 1 1 1
ADMINISTRATIVE ASSISTANT (FULL TIME) 1 1 1 1 1 1 1 1 1 1 1 1 3 3 3 3 3 3 3 3 3 3 3 3

MARKETING/TOURNAMENT
TOURNAMENT SALES / GROUP COORDINATOR (FULL TIME) 1 1 1 1 1 1 1 1 1 1 1 1 (FULL TIME HEALTH BENEFITS) 1 1 1 1 1 1 1
TOTAL EMPLOYEES 45 45 48 51 66 68 70 70 70 69 60 46
2025-2026 ANNUAL PLAN
Landmark Golf Management
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Revenue & Operations Overview Assumptions
General Operations
It is assumed that all hotel and commercial construction will remain paused during the 2025–2026 fiscal year. This ongoing construction will continue to negatively impact golf course operations throughout the summer of 2025 and the entire 2025–2026 season. As a result, maximum revenue potential will not be achieved due to unsightly construction fencing, temporary facilities, and limited clubhouse amenities. Additionally, restricted access to the Ahmanson Ranch House and parking areas is expected to reduce Food & Beverage sales for the fiscal year.

Despite these challenges, every effort will be made to provide the best possible guest experience at SilverRock.

The Permanent Clubhouse is not expected to open during the 2025–2026 fiscal year.

Golf operations will continue to be conducted out of temporary clubhouse facilities (double-wide trailers) located in the “dog bone” area near the hole #2 tee boxes. The SilverRock Grill will remain operational at the existing Ahmanson Clubhouse until the new facility opens.

SilverRock is scheduled to host the 2025 La Quinta Ironman on Sunday, December 7, 2025, requiring a full-course closure for the day. This one-day revenue loss has been factored into the 2025-2026 Annual Plan.

Re-Grassing Project – Front 9
Turf renovation on the Front 9 is scheduled to begin in early summer 2025 and continue through the third week of August. The current TifSport turf will be replaced with a more drought-tolerant Bermuda grass variety known for faster transition. The Front 9 will be closed throughout July and most of August. If the grow-in progresses as planned, all 18 holes will reopen by the last week of August 2025.

To maintain an 18-hole experience, players will be able to play the Back 9 twice during this period. A similar renovation of the Back 9 is anticipated for summer 2026, with revenue losses for May and June 2026 already included in this plan.

Golf Operations & Merchandise
• Hours of Operation (July–August):
o Last tee time: 12:50 p.m.
o Golf Shop open: 6:00 a.m. – 2:00 p.m.
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• Merchandise sales will be negatively affected by reduced traffic due to construction, especially from July through October 2025.

Food & Beverage
• The Ahmanson Ranch House and SilverRock Grill will operate with limited access and reduced hours from summer 2025 through September 2025.

Green Fees
Green fees include use of a golf cart and warm-up range balls. An average rate of $104.43 per round is projected, based on 41,445 annual paid rounds. Non-resident rates are expected to increase by approximately 3%, subject to market conditions. Rates will be adjusted dynamically based on demand and utilization. • La Quinta Resident Rates (unchanged):
o High Season: $60
o Shoulder Season: $49
o Summer Season: $35
• Resident Guest Policy: Guests accompanying a La Quinta Resident receive 30% off posted rates (excluding twilight and discounted rates). Booking remains at three (3) days in advance, same as resident cardholders.

Closures & Maintenance
• Overseeding: September 30 – October 31, 2025
o Course closed during these dates; revenue reduction accounted for in projections.
• Aerification: Scheduled for August 2025 and June 2026 o Revenue reduced for 5–7 days per cycle.

Greens Fee Mix
Projected breakdown of green fee sources:
• 33% La Quinta Residents
• 25% Public
• 10% Public Twilight
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• 32% Other (tournaments, wholesalers, juniors, guest replays, discounts) Other Revenue
• Miscellaneous Revenue: $4.26/round from club rentals, repairs, handicap fees, driving range, rider fees, and teaching pros.
• Golf Shop Merchandise: $4.26/round in retail sales.
• Resident Card Fees: Resident card renewals will be handled by the Wellness Center. Revenue of ~$165,000 will be excluded from SilverRock’s projections.

Cost of Goods Sold
• Merchandise: 55%
• Food & Beverage: 33%
Expense Overview
Labor & Staffing
• Minimum Wage: No increase is projected.
• Golf Carts/Bag Room/Driving Range: Includes staffing and operational supplies.

Shuttle service remains due to distance between temporary clubhouse and practice areas.
• Golf Shop: Includes golf pros, merchandise staff, receiving, and operations. • Course Services: Rangers/starters and related expenses. • Maintenance: Includes superintendent and crew compensation, supplies, and seasonal cost increases due to overseeding. Education and training costs are also budgeted.

Utilities
• Water & Electrical: Budgeted under Maintenance.
• Annual Electricity Costs: $236,340, covering:
o Front entry waterfalls
o Well pump
o Pump station
o Lake circulation systems
o Cart storage
o Both clubhouses
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Food & Beverage
Includes all temporary clubhouse staffing and operational expenses. Landmark Golf Management will continue managing F&B under a separate agreement, including the liquor license arrangement.

Marketing
Covers marketing, PR, advertising, website management, collateral, and tournament sales. (Refer to pages 22–24 for the Marketing Plan Narrative.) Facilities & Management
• Clubhouse: Includes janitorial, landscaping, parking lot upkeep, and roving patrol for site security.
• Management Fee: Per the Management Agreement, Landmark’s monthly fee will increase 5% to $12,007.
• Insurance: Includes general liability and golf equipment coverage.

Property/business interruption insurance excluded.
• G&A: Covers salaries for General Manager, Controller, and Admin Assistant, as well as professional fees, payroll services, and equipment rentals. • Personal Property Lease Tax: Only taxes on purchased/leased equipment are included.
• Capital Reserves: 2% of green fees set aside, per City of La Quinta directive.

Equipment Leases & Other
• Golf Carts: No lease expense due to City’s 2024 purchase of a new fleet. • GPS Lease: Monthly cost is $5,092 for the GPS system on all carts. • Computer Replacements: All computers utilizing Windows 11 are at End of Life upgrades. $27,000 has been allocated in this Annual Plan to replace all computer with old systems.
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2025-2026 ANNUAL PLAN SilverRock Resort
CONSOLIDATED INCOME STATEMENT RUN DATE: 21-May-25 02:43 PM FOR FISCAL YEAR - JULY 2025 - JUNE 2026 PREPARED BY: Landmark Golf Management DEPARTMENT BUDGET JUL. AUG. SEP. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUN.

ROUNDS
ROUNDS 41,445 900 1,000 2,850 500 5,250 4,700 4,900 5,300 6,200 4,995 3,000 1,850

REVENUE
GREEN FEES 4,328,074 43,785 50,400 195,225 34,775 569,888 449,320 548,800 698,540 817,160 530,469 278,250 111,463 MISC. REV/RANGE/CARTS/RENTALS 176,460 4,150 3,550 4,150 1,150 18,000 22,300 27,350 28,500 29,100 21,645 11,420 5,145 GOLF SHOP MERCHANDISE 215,788 1,800 2,000 5,700 1,250 26,250 25,850 26,950 34,450 40,300 27,473 14,700 9,065 FOOD & BEVERAGE 786,921 9,000 10,200 36,480 4,500 103,950 93,060 104,762 111,565 132,060 108,891 50,438 22,015 TOTAL REVENUE 5,507,242 58,735 66,150 241,555 41,675 718,088 590,530 707,862 873,055 1,018,620 688,478 354,808 147,688

COST OF SALES
PRO SHOP 120,776 1,007 1,119 3,190 700 14,692 14,468 15,084 19,282 22,556 15,376 8,228 5,074 FOOD & BEVERAGE 224,956 2,584 2,995 10,780 1,351 29,999 26,856 29,611 31,707 37,411 30,719 14,367 6,576 TOTAL COST OF SALES 345,732 3,592 4,114 13,970 2,051 44,691 41,324 44,695 50,989 59,967 46,096 22,595 11,650 GROSS PROFIT 5,161,510 55,143 62,036 227,585 39,624 673,397 549,206 663,167 822,066 958,653 642,382 332,213 136,038

OPERATING EXPENSES
GOLF CARTS\BAGS\RANGE 484,646 25,622 25,822 26,719 24,365 59,641 43,201 51,692 51,892 51,317 51,017 41,582 31,777 GOLF SHOP 299,105 16,125 16,125 17,158 13,991 29,578 30,793 33,066 31,551 31,551 31,019 27,914 20,233 COURSE SERVICES 137,080 3,952 3,952 4,494 1,000 15,088 15,263 16,940 16,890 16,890 17,215 15,198 10,199 GOLF COURSE MAINTENANCE 2,206,881 180,075 146,927 164,427 378,056 162,601 174,272 165,589 162,142 160,841 187,749 154,868 169,332WATER & ELECTRIC COST 333,584 27,130 26,130 27,380 28,180 33,620 25,025 26,920 25,840 26,870 29,840 30,230 26,419 GENERAL & ADMINISTRATIVE 563,339 43,332 43,382 44,582 72,032 44,732 48,032 45,382 44,432 44,432 44,132 44,232 44,632 MARKETING 173,263 5,013 5,013 6,108 17,063 22,433 17,689 22,894 20,539 21,214 14,019 12,764 8,519 CLUBHOUSE 171,756 13,988 13,988 13,988 16,488 13,988 13,988 14,488 13,988 14,488 13,988 13,988 14,388 MANAGEMENT FEE 144,084 12,007 12,007 12,007 12,007 12,007 12,007 12,007 12,007 12,007 12,007 12,007 12,007 CAPITAL RESERVES 86,561 876 1,008 3,905 696 11,398 8,986 10,976 13,971 16,343 10,609 5,565 2,229INSURANCE 90,744 7,562 7,562 7,562 7,562 7,562 7,562 7,562 7,562 7,562 7,562 7,562 7,562 PERSONAL PROPERTY LEASE TAXES 6,000 6,000 0 0 0 0 0 0 0 0 0 0 0 LEASES 354,456 29,538 29,538 29,538 29,538 29,538 29,538 29,538 29,538 29,538 29,538 29,538 29,538 FOOD & BEVERAGE 606,271 35,291 34,241 38,320 21,996 52,590 61,094 73,621 70,801 72,246 61,803 50,023 34,243 TOTAL OPERATING EXPENSES 5,657,771 406,511 365,696 396,187 622,974 494,776 487,451 510,675 501,153 505,299 510,498 445,472 411,079NET INCOME (496,261) (351,368) (303,660) (168,602) (583,349) 178,621 61,755 152,492 320,913 453,354 131,884 (113,259) (275,041) NET INCOME % -9.0% -598.2% -459.0% -69.8% -1399.8% 24.9% 10.5% 21.5% 36.8% 44.5% 19.2% -31.9% -186.2% Average Green Fee $104.43 $48.65 $50.40 $68.50 $69.55 $108.55 $95.60 $112.00 $131.80 $131.80 $106.20 $92.75 $60.25Average $ Misc. Income per Rd $4.26 $4.61 $3.55 $1.46 $2.30 $3.43 $4.74 $5.58 $5.38 $4.69 $4.33 $3.81 $2.78 Average $ Merchandise per Rd $5.21 $2.00 $2.00 $2.00 $2.50 $5.00 $5.50 $5.50 $6.50 $6.50 $5.50 $4.90 $4.90 Total Average Revenue per Round $113.89 $65.26 $66.15 $84.76 $83.35 $136.78 $125.64 $144.46 $164.73 $164.29 $137.83 $118.27 $79.83 296
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2025-2026 ANNUAL PLAN SilverRock Resort RUN DATE: 20-May-25 04:31 PM Projections - July 2025 to June 2026 PREPARED BY: Landmark Golf Management 0.60

0.40 Golf Rounds Total JUL. AUG. SEP. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUN.

Resident Rnds (Weekday) 7,046 153 170 485 85 893 799 833 901 1054 849 510 315 Resident Rnds (Weekend) 5,388 117 130 371 65 683 611 637 689 806 649 390 241 Sub-Total Resident Rnds 12,434 270 300 855 150 1575 1410 1470 1590 1860 1499 900 555 % of Total 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 Public Rnds (Weekday) 8,289 180 200 570 100 1050 940 980 1060 1240 999 600 370 Public Rnds (Weekend) 6,217 135 150 428 75 788 705 735 795 930 749 450 278 Sub-Total Public Rnds 14,506 315 350 998 175 1838 1645 1715 1855 2170 1748 1050 648 % of Total 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 Public Twi (Weekday) 4,559 99 110 314 55 578 517 539 583 682 549 330 204 Public Twi (Weekend) 3,730 81 90 257 45 473 423 441 477 558 450 270 167 Sub-Total Twilight Rnds 8,289 180 200 570 100 1050 940 980 1060 1240 999 600 370 % of Total 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 Other (Weekday) 3,730 81 90 257 45 473 423 441 477 558 450 270 167 Other (Weekend) 2,487 54 60 171 30 315 282 294 318 372 300 180 111 Sub-Total Other 6,217 135 350 998 175 1838 1645 1715 1855 2170 1748 1050 648 % of Total 0.15 0.15 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 Total Rounds 41,445 900 1,000 2,850 500 5,250 4,700 4,900 5,300 6,200 4,995 3,000 1,850

0.45 2,101 1,781 2,473 434 5,223 4,650 5,331 5,306 6,199 #REF! #REF! #REF! Green Fees 0.55
Resident Rnds (Weekday) $ 33.00 $ 33.00 $ 45.00 $ 49.00 $ 49.00 $ 49.00 $ 60.00 $ 60.00 $ 60.00 $ 49.00 $ 49.00 $ 49.00 Resident Rnds (Weekend) $ 33.00 $ 33.00 $ 45.00 $ 49.00 $ 49.00 $ 49.00 $ 60.00 $ 60.00 $ 60.00 $ 49.00 $ 49.00 $ 49.00 Public Rnds (Weekday) $ 55.00 $ 55.00 $ 75.00 $ 75.00 $ 150.00 $ 120.00 $ 140.00 $ 180.00 $ 180.00 $ 145.00 $ 125.00 $ 60.00 Public Rnds (Weekend) $ 65.00 $ 65.00 $ 95.00 $ 85.00 $ 155.00 $ 120.00 $ 150.00 $ 190.00 $ 190.00 $ 155.00 $ 135.00 $ 75.00 Public Twi (Weekday) $ 45.00 $ 50.00 $ 65.00 $ 80.00 $ 110.00 $ 100.00 $ 120.00 $ 140.00 $ 140.00 $ 110.00 $ 95.00 $ 65.00 Public Twi (Weekend) $ 55.00 $ 60.00 $ 75.00 $ 80.00 $ 115.00 $ 115.00 $ 130.00 $ 145.00 $ 145.00 $ 115.00 $ 100.00 $ 75.00 Other (Weekday) $ 50.00 $ 55.00 $ 75.00 $ 70.00 $ 125.00 $ 115.00 $ 120.00 $ 135.00 $ 135.00 $ 110.00 $ 85.00 $ 50.00 Other (Weekend) $ 60.00 $ 65.00 $ 85.00 $ 80.00 $ 115.00 $ 120.00 $ 130.00 $ 145.00 $ 145.00 $ 115.00 $ 95.00 $ 65.00 Golf Revenue
Resident Rnds (Weekday) 368,799 $ 5,049 $ 5,610 $ 21,803 $ 4,165 $ 43,733 $ 39,151 $ 49,980 $ 54,060 $ 63,240 $ 41,608 $ 24,990 $ 15,411 Resident Rnds (Weekend) 282,023 $ 3,861 $ 4,290 $ 16,673 $ 3,185 $ 33,443 $ 29,939 $ 38,220 $ 41,340 $ 48,360 $ 31,818 $ 19,110 $ 11,785 Public Rnds (Weekday) 1,134,705 $ 9,900 $ 11,000 $ 42,750 $ 7,500 $ 157,500 $ 112,800 $ 137,200 $ 190,800 $ 223,200 $ 144,855 $ 75,000 $ 22,200 Public Rnds (Weekend) 907,871 $ 8,775 $ 9,750 $ 40,613 $ 6,375 $ 122,063 $ 84,600 $ 110,250 $ 151,050 $ 176,700 $ 116,134 $ 60,750 $ 20,813 Public Twi (Weekday) 496,755 $ 4,455 $ 5,500 $ 20,378 $ 4,400 $ 63,525 $ 51,700 $ 64,680 $ 81,620 $ 95,480 $ 60,440 $ 31,350 $ 13,228 Public Twi (Weekend) 434,266 $ 4,455 $ 5,400 $ 19,238 $ 3,600 $ 54,338 $ 48,645 $ 57,330 $ 69,165 $ 80,910 $ 51,698 $ 27,000 $ 12,488 Other (Weekday) 412,466 $ 4,050 $ 4,950 $ 19,238 $ 3,150 $ 59,063 $ 48,645 $ 52,920 $ 64,395 $ 75,330 $ 49,451 $ 22,950 $ 8,325 Other (Weekend) 291,191 $ 3,240 $ 3,900 $ 14,535 $ 2,400 $ 36,225 $ 33,840 $ 38,220 $ 46,110 $ 53,940 $ 34,466 $ 17,100 $ 7,215 Total Revenue 4,328,074 $ 43,785 $ 50,400 $ 195,225 $ 34,775 $ 569,888 $ 449,320 $ 548,800 $ 698,540 $ 817,160 $ 530,469 $ 278,250 $ 111,463 $98,680 $99,584 $172,993 $42,785 $563,301 $448,957 $492,441 $581,698 $717,929 $461,682 $316,000 $125,000 Avg. Rate $ 104.43 $ 48.65 $ 50.40 $ 68.50 $ 69.55 $ 108.55 $ 95.60 $ 112.00 $ 131.80 $ 131.80 $ 106.20 $ 92.75 $ 60.25 Misc Revenue $ 76.13 ##########
Club Rental 42,175 $ 800 $ 750 $ 1,000 $ 3,900 $ 4,500 $ 6,000 $ 7,000 $ 7,500 $ 6,000 $ 3,500 $ 1,225 Driving Range Balls 98,500 $ 1,600 $ 1,500 $ 1,400 $ 10,000 $ 13,000 $ 16,000 $ 17,000 $ 17,000 $ 9,900 $ 7,425 $ 3,675 Rider Fees 22,190 $ 1,000 $ 1,100 $ 1,500 $ 2,500 - $ $ 3,100 $ 3,100 $ 3,100 $ 3,200 $ 2,850 $ 495 $ 245 Handicap Fees 4,595 $ 250 $ 200 $ 250 $ 650 $ 600 $ 700 $ 750 $ 400 $ 400 $ 395 $ - $ - Independent Instructor Fees 6,500 $ - $ - $ - $ 1,000 - $ $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,500 $ - $ - Ball Retreival 2,500 $ 500 $ - $ - $ 500 $ - $ - $ 500 $ - $ 1,000 - $ $ - $ - $ - Total 176,460 $ 4,150 $ 3,550 $ 4,150 $ 1,150 $ 18,000 $ 22,300 $ 27,350 $ 28,500 $ 29,100 $ 21,645 $ 11,420 $ 5,145 297
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2025-2026 ANNUAL PLAN SilverRock Resort RUN DATE: 20-May-25 04:26 PM Projections - July 2025 to June 2026 PREPARED BY: Landmark Golf Management GOLF SHOP - 61 TOTAL JUL. AUG. SEP. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUN.

GOLF SHOP MERCHANDISE SALES
TOTAL # OF ROUNDS 41,445 900 1,000 2,850 500 5,250 4,700 4,900 5,300 6,200 4,995 3,000 1,850AVERAGE REVENUE / ROUND $5.21 $2.00 $2.00 $2.00 $2.50 $5.00 $5.50 $5.50 $6.50 $6.50 $5.50 $4.90 $4.90TOTAL MERCHANDISE SALES $215,788 1,800 2,000 5,700 1,250 26,250 25,850 26,950 34,450 40,300 27,473 14,700 9,065 9,500 53,350
MERCHANDISE REVENUE 75.00% 25.00%
Soft Goods Sales 161,841 1,350 1,500 4,275 938 19,688 19,388 20,213 25,838 30,225 20,604 11,025 6,799Hard Goods Sales 53,947 450 500 1,425 313 6,563 6,463 6,738 8,613 10,075 6,868 3,675 2,266 TOTAL MERCHANDISE REVENUE 215,788 1,800 2,000 5,700 1,250 26,250 25,850 26,950 34,450 40,300 27,473 14,700 9,065 COST OF SALES 55.97% 55.97% 55.97% 55.97% 55.97% 55.97% 55.97% 55.97% 55.97% 55.97% 55.97% 55.97% 55.97% COS - Merchandise (58%) 125,157 1,044 1,160 3,306 725 15,225 14,993 15,631 19,981 23,374 15,934 8,526 5,258 Purchase Disc Taken - (5%) (6,258) (52) (58) (165) (36) (761) (750) (782) (999) (1,169) (797) (426) (263)Freight - Merchandise 1,877 16 17 50 11 228 225 234 300 351 239 128 79 TOTAL COST OF SALES 120,776 1,007 1,119 3,190 700 14,692 14,468 15,084 19,282 22,556 15,376 8,228 5,074 GROSS PROFIT 95,011 793 881 2,510 550 11,558 11,382 11,866 15,168 17,744 12,096 6,472 3,991 SALARIES AND BENEFITS 9,414 9,993 8,760 8,248 10,870 12,042 13,527 12,480 Salaries and Wages 215,677 10,768 10,768 11,661 8,601 22,329 23,379 24,099 24,099 24,099 23,639 17,919 14,319 Payroll Taxes 21,028 1,050 1,050 1,137 839 2,177 2,279 2,350 2,350 2,350 2,305 1,747 1,396 Workers' Compensation 12,889 644 644 697 514 1,334 1,397 1,440 1,440 1,440 1,413 1,071 856Health Insurance/Benefits 30,636 2,553 2,553 2,553 2,553 2,553 2,553 2,553 2,553 2,553 2,553 2,553 2,553 TOTAL SALARIES AND BENEFITS 280,230 15,015 15,015 16,048 12,506 28,393 29,608 30,441 30,441 30,441 29,909 23,289 19,123

OTHER EXPENSES
Office Supplies 3,000 250 250 250 250 250 250 250 250 250 250 250 250Dues and Subscriptions 2,300 0 0 0 0 0 0 0 0 0 0 2,300Freight / Delivery 75 0 0 0 25 25 25 0 0 0 0 0 0Travel 90 0 0 0 0 0 0 15 15 15 15 15 15 Uniforms 2,400 100 100 100 100 300 200 500 200 200 200 200 200Telephone 1,320 110 110 110 110 110 110 110 110 110 110 110 110Seminars / Training 3,690 150 150 150 500 0 100 1,250 35 35 35 1,250 35 Miscellaneous 6,000 500 500 500 500 500 500 500 500 500 500 500 500 TOTAL OTHER EXPENSES 18,875 1,110 1,110 1,110 1,485 1,185 1,185 2,625 1,110 1,110 1,110 4,625 1,110 TOTAL EXPENSES 299,105 16,125 16,125 17,158 13,991 29,578 30,793 33,066 31,551 31,551 31,019 27,914 20,233 Seminars/Training - Reimbursement for eligible golf shop employees (Director of Golf, Head Professional & 1st Assistant Golf Professional) for PGA Training, Education and Travel Expenses. Office Supplies are made up of: Golf Cart Rental Agreements,Golf Club Rental Agreements, Gift Certificates & Merchandise BagsUniforms- Each Full-Time Emp receives (1) shirt per month 298
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2025-2026 ANNUAL PLAN SilverRock Resort RUN DATE: 20-May-25 04:26 PM Projections - July 2025 to June 2026 PREPARED BY: Landmark Golf Management CARTS, BAGROOM & RANGE - 641 TOTAL JUL. AUG. SEP. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUN.

SALARIES AND BENEFITS
Increase in
Budget 12K 6,574 8,506 4,181 9,821 11,246 12,697 13,780 Salaries and Wages 284,534 13,532 13,532 14,838 8,713 26,960 26,960 34,320 34,320 34,320 34,320 24,960 17,760Payroll Taxes 35,424 1,685 1,685 1,847 1,085 3,357 3,357 4,273 4,273 4,273 4,273 3,108 2,211 Workers' Compensation 17,004 809 809 887 521 1,611 1,611 2,051 2,051 2,051 2,051 1,492 1,061 Health Insurance/Benefits 27,232 1,702 1,702 1,702 1,702 2,553 2,553 2,553 2,553 2,553 2,553 2,553 2,553 TOTAL SALARIES AND BENEFITS 364,194 17,727 17,727 19,274 12,020 34,481 34,481 43,197 43,197 43,197 43,197 32,112 23,585 153,005 11,258 8,062 9,003 3,900 11,890 15,750 17,092 14,750 15,700 15,750 14,350 15,500

SUPPLIES AND MATERIALS
Range Expendable Supplies 6,750 600 600 150 150 1,800 150 1,000 1,000 150 150 500 500Towel Replacement 2,182 120 120 120 120 185 195 250 250 250 250 250 72Bottled Water 30,000 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500Cart Supplies 1,850 0 0 0 500 500 500 75 75 50 50 50 50 Range Balls 15,000 0 0 0 0 15,000 0 0 0 0 0 0 0
TOTAL SUPPLIES AND MATERIALS 55,782 3,220 3,220 2,770 3,270 19,985 3,345 3,825 3,825 2,950 2,950 3,300 3,122

REPAIRS AND MAINTENANCE
Equipment Repair - Golf 3,600 300 300 300 300 300 300 300 300 300 300 300 300 TOTAL REPAIRS AND MAINTENANCE 3,600 300 300 300 300 300 300 300 300 300 300 300 300

OTHER EXPENSES
Expendable Supplies 9,600 800 800 800 800 800 800 800 800 800 800 800 800Printing / Stationary 420 0 0 0 0 0 0 70 70 70 70 70 70Cart Maintenance & Repairs 26,400 2,100 2,300 2,100 2,300 2,100 2,300 2,100 2,300 2,100 2,300 2,100 2,300Freight / Delivery 450 75 75 75 75 75 75 0 0 0 0 0 0 Uniforms 5,200 0 0 0 2,000 500 500 0 0 500 0 1,500 200Laundry and Linen 9,600 800 800 800 800 800 800 800 800 800 800 800 800Miscellaneous 9,400 600 600 600 2,800 600 600 600 600 600 600 600 600 TOTAL OTHER EXPENSES 61,070 4,375 4,575 4,375 8,775 4,875 5,075 4,370 4,570 4,870 4,570 5,870 4,770 TOTAL EXPENSES 484,646 25,622 25,822 26,719 24,365 59,641 43,201 51,692 51,892 51,317 51,017 41,582 31,777 Expendable Supplies are made up of: - Scorecards, Tees, Pencils, Trash Bags,Cups & First Aid Supplies.Uniforms- Each employee receives 4 shirts, 1 hat per season 299
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2025-2026 ANNUAL PLAN SilverRock Resort RUN DATE: 20-May-25 04:31 PM Projections - July 2025 to June 2026 PREPARED BY: Landmark Golf Management COURSE SERVICES - 643 TOTAL JUL. AUG. SEP. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUN.

SALARIES AND BENEFITS
increas 5K
current 6K 1,850 1,400 2,590 800 5,667 5,700 5,700
Salaries and Wages 115,017 3,264 3,264 3,689 0 12,800 12,800 14,400 14,400 14,400 14,400 12,960 8,640Payroll Taxes 11,214 318 318 360 0 1,248 1,248 1,404 1,404 1,404 1,404 1,264 842 Workers' Compensation 6,873 195 195 220 0 765 765 861 861 861 861 774 516 TOTAL SALARIES AND BENEFITS 133,105 3,777 3,777 4,269 0 14,813 14,813 16,665 16,665 16,665 16,665 14,998 9,999

SUPPLIES AND MATERIALS
Expendable Supplies 1,050 50 50 100 100 100 100 100 100 100 100 75 75 TOTAL SUPPLIES AND MATERIALS 1,050 50 50 100 100 100 100 100 100 100 100 75 75

OTHER EXPENSES
Uniforms 2,125 75 75 75 800 75 250 75 75 75 400 75 75
Safety Equipment 600 50 50 50 50 50 50 50 50 50 50 50 50 Miscellaneous 200 0 0 0 50 50 50 50 0 0 0 0 0 1
TOTAL OTHER EXPENSES 2,926 125 125 125 900 175 350 176 125 125 450 125 125 TOTAL COURSE SERVICES EXPENSES 137,080 3,952 3,952 4,494 1,000 15,088 15,263 16,940 16,890 16,890 17,215 15,198 10,199 Expendable Supplies are made up of: Clipboards, Paper (starter sheets, ranger sheets), Towels, Trash BagsUniforms- Each employee receives 4 shirts, 1 hat per season 300
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SilverRock Resort RUN DATE: 20-May-25 04:31 PM
Projections - July 2025 to June 2026 PREPARED BY: Landmark Golf Management MAINTENANCE DEPARTMENT - 63 TOTAL JUL. AUG. SEP. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUN.

SALARIES AND BENEFITS
Salaries and Wages 847,222 61,134 62,684 62,684 72,107 71,081 74,210 75,284 75,232 75,238 75,238 72,079 70,250 Overtime Hourly Wages 30,518 0 1,824 1,824 16,000 2,052 0 0 2,106 2,500 2,106 2,106 0 Payroll Taxes 85,580 5,961 6,290 6,290 8,590 7,130 7,235 7,340 7,540 7,579 7,541 7,233 6,849Workers' Compensation 31,232 2,201 2,300 2,300 2,980 2,608 2,672 2,710 2,759 2,769 2,759 2,645 2,529Health Insurance/Benefits 160,013 12,838 12,838 12,838 12,838 13,689 13,689 13,689 13,689 13,689 13,689 13,689 12,838 TOTAL SALARIES AND BENEFITS 1,154,564 82,134 85,936 85,936 112,515 96,560 97,806 99,023 101,326 101,775 101,333 97,752 92,466

SUPPLIES AND MATERIALS
Fertilizer 122,800 10,000 4,300 9,000 30,000 10,000 10,000 10,000 6,000 6,000 15,000 4,500 8,000 Flowers/Plants 13,000 0 0 0 6,000 0 0 5,000 0 0 0 2,000 0 Gas & Oils 81,600 6,800 6,800 6,800 6,800 6,800 6,800 6,800 6,800 6,800 6,800 6,800 6,800 Golf Course Accessories 16,000 0 0 0 14,000 0 0 0 0 2,000 0 0 0 Chemicals & Pesticides 56,000 14,000 2,000 8,000 8,000 5,000 0 0 6,000 0 8,000 0 5,000 POA Control 10,000 0 0 0 0 0 10,000 0 0 0 0 0 0Sand/Mulch/Bunker 52,500 5,000 0 5,000 12,500 2,500 5,000 2,500 2,500 2,500 12,500 2,500 0 Seed 145,000 0 0 0 140,000 5,000 0 0 0 0 0 0
Small Tools 6,000 500 500 500 500 500 500 500 500 500 500 500 500 Sod 8,000 0 2,500 1,000 0 0 0 0 0 0 0 0 4,500
Topdressing 13,000 5,000 4,000 0 0 0 0 0 0 0 0 0 4,000 16,000 0 TOTAL SUPPLIES AND MATERIALS 539,900 57,300 20,100 30,300 217,800 24,800 37,300 24,800 21,800 17,800 42,800 16,300 28,800

REPAIRS AND MAINTENANCE
Buildings & Bridges 6,000 500 500 500 500 500 500 500 500 500 500 500 500 Equipment 54,000 3,500 4,000 4,500 10,000 5,000 3,000 3,000 3,500 5,000 5,000 4,000 3,500 Irrigation System 40,500 4,500 4,500 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,500 3,500 3,500Pumps 10,500 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 500 0 Lake Maint Contract 52,152 4,346 4,346 4,346 4,346 4,346 4,346 4,346 4,346 4,346 4,346 4,346 4,346 Trees 16,550 0 0 6,000 550 0 0 0 0 0 0 0 10,000
TOTAL REPAIRS AND MAINTENANCE 179,702 13,846 14,346 19,346 19,396 13,846 11,846 11,846 12,346 13,846 14,346 12,846 21,846 2025-2026 ANNUAL PLAN
301
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SilverRock Resort RUN DATE: 20-May-25 04:31 PM
Projections - July 2025 to June 2026 PREPARED BY: Landmark Golf Management MAINTENANCE DEPARTMENT - 63 TOTAL JUL. AUG. SEP. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUN. 2025-2026 ANNUAL PLAN

OTHER EXPENSES
Contract Services Soil/Tissue Tests 2,000 0 0 0 0 0 0 0 0 0 0 2,000 0 Dues and Subscriptions 900 0 0 0 0 0 0 800 0 0 0 0 100
Employee Education 4,700 0 0 1,400 0 0 400 2,500 250 0 50 50 50 Equipment Rental 3,400 200 150 150 1,000 600 200 200 200 200 200 200 100 Auto Expense 4,800 400 400 400 400 400 400 400 400 400 400 400 400Licenses and Permits 4,300 100 0 0 250 0 50 0 0 1,000 2,900 0 0 Miscellaneous 1,200 100 100 100 100 100 100 100 100 100 100 100 100 Supplies 5,950 750 750 750 500 500 500 500 500 500 500 100 100Propane/Natural Gas 360 30 30 30 30 30 30 30 30 30 30 30 30 Safety Equipment & Training 3,850 200 100 750 800 500 400 400 200 200 100 100 100 Telephone/DSL 5,700 475 475 475 475 475 475 475 475 475 475 475 475Waste/Trash Removal 7,200 600 600 600 600 600 600 600 600 600 600 600 600Uniforms & Linen/Towels 15,600 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 TOTAL OTHER EXPENSES 59,960 4,155 3,905 5,955 5,455 4,505 4,455 7,305 4,055 4,805 6,655 5,355 3,355TOTAL MAINTENANCE EXP. (EXCL Landscaping) 1,934,126 157,435 124,287 141,537 355,166 139,711 151,407 142,974 139,527 138,226 165,134 132,253 146,467 4,500
LANDSCAPE 13,000 12,200 12,700 13,100 11,400 13,800 12,600 9,600 Contract Labor 264,000 22,000 22,000 22,000 22,000 22,000 22,000 22,000 22,000 22,000 22,000 22,000 22,000 Landscape Wages & Benefits 264,000 22,000 22,000 22,000 22,000 22,000 22,000 22,000 22,000 22,000 22,000 22,000 22,000 Small Tools 1,025 100 100 100 100 100 75 75 75 75 75 75 75 Repairs & Maintenance - Drip Irrigation 4,250 250 250 500 500 500 500 250 250 250 250 250 500Uniforms 3,480 290 290 290 290 290 290 290 290 290 290 290 290 TOTAL LANDSCAPE MAINTENANCE 272,755 22,640 22,640 22,890 22,890 22,890 22,865 22,615 22,615 22,615 22,615 22,615 22,865 COURSE & LANDSCAPE MAINTENANCE TOTAL 2,206,881 180,075 146,927 164,427 378,056 162,601 174,272 165,589 162,142 160,841 187,749 154,868 169,332(EXCL UTILITIES)

WATER & ELECTRICITY COSTS
Water Cost 97,244 8,630 7,630 8,880 9,680 14,480 3,785 5,680 4,600 5,630 8,600 11,730 7,919 Electricity Cost 236,340 18,500 18,500 18,500 18,500 19,140 21,240 21,240 21,240 21,240 21,240 18,500 18,500 TOTAL WATER AND ELECTRIC COST 333,584 27,130 26,130 27,380 28,180 33,620 25,025 26,920 25,840 26,870 29,840 30,230 26,419 TOTAL COURSE MAINTENANCE EXPENSES 2,540,465 207,205 173,057 191,807 406,236 196,221 199,297 192,509 187,982 187,711 217,589 185,098 195,751 302
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SilverRock Resort RUN DATE: 20-May-25 11:42 AM
Projections - July 2025 to June 2026 PREPARED BY: Landmark Golf Management G & A DEPARTMENT - 67 TOTAL JUL. AUG. SEP. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUN.

SALARIES AND BENEFITS
Salaries and Wages 330,827 27,569 27,569 27,569 27,569 27,569 27,569 27,569 27,569 27,569 27,569 27,569 27,569Payroll Taxes 32,256 2,688 2,688 2,688 2,688 2,688 2,688 2,688 2,688 2,688 2,688 2,688 2,688Workers' Compensation 26,141 2,178 2,178 2,178 2,178 2,178 2,178 2,178 2,178 2,178 2,178 2,178 2,178Health Insurance/Benefits 61,776 5,148 5,148 5,148 5,148 5,148 5,148 5,148 5,148 5,148 5,148 5,148 5,148 TOTAL SALARIES AND BENEFITS 450,999 37,583 37,583 37,583 37,583 37,583 37,583 37,583 37,583 37,583 37,583 37,583 37,583

REPAIRS AND MAINTENANCE
Equipment Repair 7,300 150 150 1,000 1,500 900 850 700 500 750 450 250 100 TOTAL REPAIRS AND MAINTENANCE 7,300 150 150 1,000 1,500 900 850 700 500 750 450 250 100

OTHER EXPENSES
Office Supplies 1,260 105 105 105 105 105 105 105 105 105 105 105 105 Printing / Stationary 3,300 100 100 100 100 100 400 400 400 400 400 400 400 Postage 900 75 75 75 75 75 75 75 75 75 75 75 75
Recruiting / Relocation 1,200 0 0 150 150 150 200 150 200 200 0 0 0 Dues and Subscriptions 1,550 50 0 300 50 50 50 100 200 50 50 50 600 Freight / Delivery 600 50 50 50 50 50 50 50 50 50 50 50 50 Travel 1,100 0 100 0 0 0 0 0 100 0 200 500 200
Promotion 1,200 100 100 100 100 100 100 100 100 100 100 100 100 Auto Expense 6,000 500 500 500 500 500 500 500 500 500 500 500 500 Equipment Rental (Copier/Storage/Cell Phone) 6,000 500 500 500 500 500 500 500 500 500 500 500 500 Uniforms 2,000 150 150 150 350 150 150 150 150 150 150 150 150 Professional Fees (I.T. & Safety Fees) 45,000 1,500 1,500 1,500 28,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 Seminars / Training 3,400 200 200 200 200 200 200 1,200 200 200 200 200 200 Payroll Processing 20,520 1,710 1,710 1,710 1,710 1,710 1,710 1,710 1,710 1,710 1,710 1,710 1,710 Computer Supplies (POS Support Fees) 6,300 500 500 500 500 500 500 500 500 500 500 500 800 Bank & ADP Fees 1,080 90 90 90 90 90 90 90 90 90 90 90 90 Miscellaneous 10,000 500 500 500 500 1,000 4,000 500 500 500 500 500 500 TOTAL OTHER EXPENSES 111,410 6,130 6,180 6,530 33,480 6,780 10,130 7,630 6,880 6,630 6,630 6,930 7,480 TOTAL G & A EXPENSES 569,709 43,863 43,913 45,113 72,563 45,263 48,563 45,913 44,963 44,963 44,663 44,763 45,163 Uniforms- Benefit to be shared between GM & ControllerEntertainment & Promotion - GM promoting property for potential clients2025-2026 ANNUAL PLAN 303
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2025-2026 ANNUAL PLAN SilverRock Resort MARKETING 20-May-25 11:42 AM Projections - July 2025 to June 2026 PREPARED BY: Landmark Golf Management MARKETING DEPARTMENT - 66 TOTAL JUL. AUG. SEP. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUN.

SALARIES AND BENEFITS
Salaries and Wages 15,000 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250Payroll Taxes 1,463 122 122 122 122 122 122 122 122 122 122 122 122Workers' Compensation 1,185 99 99 99 99 99 99 99 99 99 99 99 99 Health Insurance/Benefits 5,957 0 0 0 0 0 851 851 851 851 851 851 851 TOTAL SALARIES AND BENEFITS 23,605 1,471 1,471 1,471 1,471 1,471 2,322 2,322 2,322 2,322 2,322 2,322 2,322

OTHER EXPENSES
Office Supplies 1,200 100 100 100 100 100 100 100 100 100 100 100 100Printing / Stationary 4,425 0 0 200 3,000 200 200 200 125 125 125 125 125Postage 600 50 50 50 50 50 50 50 50 50 50 50 50 Contract Services Web Page 1,800 150 150 150 150 150 150 150 150 150 150 150 150Dues and Subscriptions 735 0 0 0 0 0 0 35 400 300 0 0 0Uniforms 600 0 0 0 300 50 50 50 50 50 50 0 0Telephone 1,200 100 100 100 100 100 100 100 100 100 100 100 100Civic, Community and Trade Show 2,250 75 75 75 75 750 750 75 75 75 75 75 75 Public Relations 1,000 0 0 0 0 0 0 500 500 0 0 0 0Promotions / Meals 300 25 25 25 25 25 25 25 25 25 25 25 25 Promotion - (Media, Vendor Days, etc) 700 0 0 0 50 50 50 300 50 50 50 50 50 Advertising (Ad Purchases) 113,787 2,566 2,566 3,461 10,266 15,961 11,366 16,461 14,066 15,341 8,446 8,741 4,546 Collateral Material - (Scorecards, Rack Cds, Tees, Pencils, Ball Markers)21,000 500 500 500 1,500 3,500 2,500 2,500 2,500 2,500 2,500 1,000 1,000 Miscellaneous 350 0 0 0 0 50 50 50 50 50 50 50
TOTAL OTHER EXPENSES 149,947 3,566 3,566 4,661 15,616 20,986 15,391 20,596 18,241 18,916 11,721 10,466 6,221 TOTAL MARKETING EXPENSES 173,552 5,037 5,037 6,132 17,087 22,457 17,713 22,918 20,563 21,238 14,043 12,788 8,543Promotion/Meals - Off property events (Chamber Mixers, Rotaries andentertaining potential clients)Promotion/Media/Vendor Days - Radio/TV Onsite Broadcasting.Vendor Days - Show casing property in exchange for positive publicity 304
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SilverRock Resort MARKETING 20-May-25 11:42 AM
Projections - July 2025 to June 2026 PREPARED BY: Landmark Golf Management TEMPORARY CLUBHOUSE - 800 TOTAL JUL. AUG. SEP. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUN.

SUPPLIES AND MATERIALS
Expendable Supplies 2,400 200 200 200 200 200 200 200 200 200 200 200 200 Laundry Supplies 3,840 320 320 320 320 320 320 320 320 320 320 320 320 TOTAL SUPPLIES AND MATERIALS 6,240 520 520 520 520 520 520 520 520 520 520 520 520

REPAIRS AND MAINTENANCE
Building Structures 3,600 300 300 300 300 300 300 300 300 300 300 300 300Restaurant Repairs 8,400 700 700 700 700 700 700 700 700 700 700 700 700Equipment Repair 8,400 700 700 700 700 700 700 700 700 700 700 700 700 TOTAL REPAIRS AND MAINTENANCE 20,400 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700

OTHER EXPENSES
Contract Services Cleaning 8,000 500 500 500 2,500 500 500 500 500 500 500 500 500 Telephone 21,000 1,750 1,750 1,750 1,750 1,750 1,750 1,750 1,750 1,750 1,750 1,750 1,750 Cable-Roadrunner 5,040 420 420 420 420 420 420 420 420 420 420 420 420 Water 7,296 608 608 608 608 608 608 608 608 608 608 608 608Safety Equipment 1,200 100 100 100 100 100 100 100 100 100 100 100 100Propane Gas 12,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000Flowers and Decorations 1,900 0 0 0 500 0 0 500 0 500 0 0 400Building Security (Roving Patrol) 88,680 7,390 7,390 7,390 7,390 7,390 7,390 7,390 7,390 7,390 7,390 7,390 7,390Miscellaneous 0 0 0 0 0 0 0 0 0 0 0 0 0 TOTAL OTHER EXPENSES 145,116 11,768 11,768 11,768 14,268 11,768 11,768 12,268 11,768 12,268 11,768 11,768 12,168 TOTAL CLUBHOUSE EXPENSES 171,756 13,988 13,988 13,988 16,488 13,988 13,988 14,488 13,988 14,488 13,988 13,988 14,388 Expendable Supplies made up of: Locksmith, Trashbags, Lightbulbs, Mats,Items related to Maintenance of Clubhouse 2025-2026 ANNUAL PLAN
305
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SilverRock Resort RUN DATE: 20-May-25 04:26 PM
Projections - July 2025 to June 2026 PREPARED BY: Landmark Golf Management MISC. DEPARTMENT - 980 & 990 TOTAL JUL. AUG. SEP. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUN. 12,500

MISC OTHER EXPENSES
Management Fee - Fixed 144,084 12,007 12,007 12,007 12,007 12,007 12,007 12,007 12,007 12,007 12,007 12,007 12,007 FF&E Reserve (2.0%) 86,561 876 1,008 3,905 696 11,398 8,986 10,976 13,971 16,343 10,609 5,565 2,229General Liability Insurance 90,744 7,562 7,562 7,562 7,562 7,562 7,562 7,562 7,562 7,562 7,562 7,562 7,562Personal Property Taxes 6,000 6,000 0 0 0 0 0 0 0 0 0 0 0 327,389 26,445 20,577 23,474 20,265 30,967 28,555 30,545 33,540 35,912 30,178 25,134 21,798

LEASE/RENTAL EXPENSES
Golf Course Maintenance Lease 288,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 GPS Lease (Up-Link) 61,656 5,138 5,138 5,138 5,138 5,138 5,138 5,138 5,138 5,138 5,138 5,138 5,138Equipment Rental Other 4,800 400 400 400 400 400 400 400 400 400 400 400 400 354,456 29,538 29,538 29,538 29,538 29,538 29,538 29,538 29,538 29,538 29,538 29,538 29,538 2025-2026 ANNUAL PLAN
306
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RUN DATE: 20-May-25 04:31 PM
PREPARED BY: Landmark Golf Management
FOOD & BEVERAGE DEPT - 62 TOTAL JUL. AUG. SEP. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUN.

FOOD REVENUE
TOTAL NUMBER OF ROUNDS 41,445 900 1,000 2,850 500 5,250 4,700 4,900 5,300 6,200 4,995 3,000 1,850

FOOD REVENUE
Snack Shop/Terrace Food $ 342,805 $ 4,500 $ 5,000 $ 17,100 $ 2,000 $ 47,250 $ 42,300 $ 44,100 $ 47,700 $ 55,800 $ 44,955 $ 21,000 $ 11,100Beverage Cart Food $ 39,095 $ 225 $ 500 $ 2,138 $ 500 $ 5,250 $ 4,700 $ 4,900 $ 5,300 $ 6,200 $ 4,995 $ 3,000 $ 1,388Other Food Income $ - $ - $ - $ - $ - $ - $ - Non-Taxable Tournament Site Fees $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Special Events $ - $ - $ - $ - $ - TOTAL FOOD REVENUE $ 381,900 $ 4,725 $ 5,500 $ 19,238 $ 2,500 $ 52,500 $ 47,000 $ 49,000 $ 53,000 $ 62,000 $ 49,950 $ 24,000 $ 12,488 $ 9,254 $ 7,063 $ 17,972 $ 2,621 $ 32,205 $ 20,946 $ 30,377 $ 29,047

BEVERAGE REVENUE
Snack Shop/Terrace Beer & Wine $ 145,440 $ 1,080 $ 1,200 $ 3,420 $ 600 $ 21,000 $ 18,800 $ 19,600 $ 21,200 $ 24,800 $ 19,980 $ 10,800 $ 2,960Snack Shop/Terrace Sodas $ 36,360 $ 270 $ 300 $ 855 $ 150 $ 5,250 $ 4,700 $ 4,900 $ 5,300 $ 6,200 $ 4,995 $ 2,700 $ 740Beverage Cart Beer & Wine $ 198,216 $ 2,633 $ 2,800 $ 7,980 $ 625 $ 23,100 $ 20,680 $ 29,645 $ 29,150 $ 35,805 $ 29,970 $ 11,250 $ 4,579Beverage Cart Sodas $ 25,004 $ 293 $ 400 $ 4,988 $ 625 $ 2,100 $ 1,880 $ 1,617 $ 2,915 $ 3,255 $ 3,996 $ 1,688 $ 1,249 TOTAL BEVERAGE REVENUE $ 405,021 $ 4,275 $ 4,700 $ 17,243 $ 2,000 $ 51,450 $ 46,060 $ 55,762 $ 58,565 $ 70,060 $ 58,941 $ 26,438 $ 9,528 $ 7,174 $ 5,780 $ 12,209 $ 1,939 $ 15,385 $ 12,175 $ 23,905 $ 24,530 TOTAL FOOD & BEVERAGE REVENUE $ 786,921 $ 9,000 $ 10,200 $ 36,480 $ 4,500 $ 103,950 $ 93,060 $ 104,762 $ 111,565 $ 132,060 $ 108,891 $ 50,438 $ 22,015 LESS COST OF SALES $ 1
COS - Food (37%) $ 137,484 $ 1,701 $ 1,980 $ 6,926 $ 900 $ 18,900 $ 16,920 $ 17,640 $ 19,080 $ 22,320 $ 17,982 $ 8,640 $ 4,496COS - Beer & Wine (25%) $ 72,131 $ 742.50 $ 840.00 $ 2,394.00 $ 257.25 $ 9,261.00 $ 8,290.80 $ 10,341.45 $ 10,573.50 $ 12,727.05 $ 10,489.50 $ 4,630.50 $ 1,583.14COS - Sodas (27%) $ 15,341 $ 140.63 $ 175.00 $ 1,460.63 $ 193.75 $ 1,837.50 $ 1,645.00 $ 1,629.25 $ 2,053.75 $ 2,363.75 $ 2,247.75 $ 1,096.88 $ 497.19COS- Employee Meals $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - TOTAL COST OF SALES $ 224,956 $ 2,584 $ 2,995 $ 10,780 $ 1,351 $ 29,999 $ 26,856 $ 29,611 $ 31,707 $ 37,411 $ 30,719 $ 14,367 $ 6,576GROSS PROFIT $ 561,965 $ 6,416 $ 7,205 $ 25,700 $ 3,149 $ 73,952 $ 66,204 $ 75,151 $ 79,858 $ 94,649 $ 78,172 $ 36,070 $ 15,439

SALARIES AND BENEFITS
Salaries and Wages $ 391,053 $ 19,908 $ 19,908 $ 22,420 $ 10,055 $ 33,257 $ 41,995 $ 49,209 $ 49,209 $ 49,209 $ 42,732 $ 32,566 $ 20,585Payroll Taxes $ 43,016 $ 2,190 $ 2,190 $ 2,466 $ 1,106 $ 3,658 $ 4,619 $ 5,413 $ 5,413 $ 5,413 $ 4,701 $ 3,582 $ 2,264Workers' Compensation $ 14,078 $ 717 $ 717 $ 807 $ 362 $ 1,197 $ 1,512 $ 1,772 $ 1,772 $ 1,772 $ 1,538 $ 1,172 $ 741Health Insurance $ 73,168 $ 6,097 $ 6,097 $ 6,097 $ 6,097 $ 6,097 $ 6,097 $ 6,097 $ 6,097 $ 6,097 $ 6,097 $ 6,097 $ 6,097 TOTAL SALARIES AND BENEFITS $ 521,315 $ 28,911 $ 28,911 $ 31,790 $ 17,621 $ 44,210 $ 54,223 $ 62,491 $ 62,491 $ 62,491 $ 55,068 $ 43,418 $ 29,688 SUPPLIES AND MATERIALS #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! Expendable Supplies $ 4,280 $ 300 $ 300 $ 300 $ 580 $ 200 $ 400 $ 400 $ 400 $ 400 $ 400 $ 300 $ 300Bar Utensils $ 1,250 $ 150 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100Menus, Napkins and Placemats $ 3,825 $ 175 $ 175 $ 175 $ 500 $ 250 $ 250 $ 550 $ 350 $ 350 $ 350 $ 350 $ 350 TOTAL SUPPLIES AND MATERIALS $ 9,355 $ 625 $ 575 $ 575 $ 1,180 $ 550 $ 750 $ 1,050 $ 850 $ 850 $ 850 $ 750 $ 750

REPAIRS AND MAINTENANCE
Equipment Repair $ 5,900 $ 400 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 TOTAL REPAIRS AND MAINTENANCE $ 5,900 $ 400 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500

OTHER EXPENSES
Office Supplies $ 1,500 $ 100 $ 100 $ 100 $ 250 $ 250 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 Phone $ 857 $ 71 $ 71 $ 71 $ 71 $ 71 $ 71 $ 71 $ 76 $ 71 $ 71 $ 71 $ 71 Equipment Rental $ 1,285 $ 109 $ 109 $ 109 $ 95 $ 109 $ 100 $ 109 $ 109 $ 109 $ 109 $ 109 $ 109 Natural Gas - Propane $ 12,000 $ 2,000 $ - $ 2,000 $ - $ 2,000 $ - $ 2,000 $ - $ 2,000 $ - $ 2,000 $ - Non-Capital Equipment $ 2,050 $ 100 $ 100 $ 100 $ 50 $ 50 $ 50 $ 700 $ 700 $ 50 $ 50 $ 50 $ 50 Uniforms $ 4,300 $ 150 $ 150 $ 150 $ 1,500 $ 150 $ 500 $ 250 $ 250 $ 350 $ 550 $ 150 $ 150 Laundry and Linen $ 8,850 $ 650 $ 650 $ 650 $ - $ 650 $ 650 $ 1,200 $ 1,200 $ 1,200 $ 650 $ 650 $ 700 Bank Fees $ 20,630 $ 1,150 $ 1,150 $ 1,250 $ - $ 2,400 $ 2,500 $ 2,500 $ 2,700 $ 2,700 $ 2,080 $ 1,150 $ 1,050 Seminars / Training $ 225 $ 25 $ 25 $ 25 $ 25 $ - $ - $ - $ 25 $ 25 $ 25 $ 25 $ 25Cleaning Supplies $ 7,400 $ 400 $ 400 $ 400 $ - $ 850 $ 850 $ 950 $ 950 $ 950 $ 950 $ 350 $ 350 Flowers and Decorations $ 2,604 $ 100 $ 100 $ 100 $ 204 $ 300 $ 300 $ 300 $ 250 $ 250 $ 300 $ 200 $ 200 Licenses and Permits $ 1,800 $ - $ 900 $ - $ - $ - $ - $ 900 $ - $ - $ - $ - Miscellaneous $ 6,200 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 600 $ 600 $ 500 $ 500 $ 500 TOTAL OTHER EXPENSES $ 69,701 $ 5,355 $ 4,255 $ 5,455 $ 2,695 $ 7,330 $ 5,621 $ 9,580 $ 6,960 $ 8,405 $ 5,385 $ 5,355 $ 3,305 $ 2,500 $ 3,809 $ 1,773 $ 2,860 $ 10,545 $ 5,600 $ 6,100 $ 9,000 $ 7,900 $ 9,700 $ 6,100 $ 4,500 TOTAL EXPENSES $ 606,271 $ 35,291 $ 34,241 $ 38,320 $ 21,996 $ 52,590 $ 61,094 $ 73,621 $ 70,801 $ 72,246 $ 61,803 $ 50,023 $ 34,243 TOTAL FOOD & BEVERAGE PROFIT (Loss) $ (44,307) $ (28,876) $ (27,036) $ (12,620) $ (18,847) $ 21,361 $ 5,110 $ 1,530 $ 9,057 $ 22,403 $ 16,369 $ (13,953) $ (18,804) #REF! 2024-2025 Annual Budget 2024-2025 Annual Budget
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2025–2026 Marketing Plan
Objective
To expand brand awareness for SilverRock Resort, promote the Arnold Palmer Classic Course as a premier golf destination in the Coachella Valley, and increase golf and golf-related revenues.

Given the ongoing construction delays surrounding the resort—luxury hotels, spa, convention center, permanent clubhouse, and private residences—it will be essential to continually market SilverRock in a positive light throughout all phases of development.

Budget Overview
The 2025–2026 Marketing Plan is based on a slightly reduced budget of $171,186. It includes spending on:
• Print advertising
• Television
• Digital marketing
• Social media
• Collateral materials
• Partial tournament coordinator salary
• Public relations
• Supplies
• Website and email marketing
Of the total, $113,787 is allocated to advertising efforts.

Print Advertising
Print advertising will be reduced again this year but will maintain a presence in core local and regional publications, including:
• Golfing Palm Springs
• Desert Golf & Tennis
• CV Golf Guides
• Desert Golfing Digest
These ads target Coachella Valley residents and resort/tourist golfers across Southern California.

Most print campaigns now include bundled digital placements for added exposure. 308 CLICK HERE to Return to Agenda
TV & Radio
SilverRock will continue running 30-second television spots on local network affiliates. No new commercials are planned until construction nears completion and the new clubhouse is operational.

No radio advertising is budgeted for this fiscal year.

In-Room Media
SilverRock commercials continue to run in partnership with the Travelers Channel, which is broadcast in 18 local hotels representing over 3,500 rooms throughout the Coachella Valley.

The Travelers Channel serves as a visual concierge for hotel guests, promoting area attractions, restaurants, history, and services.

Digital Marketing
Digital efforts include display banners on geo-targeted platforms such as:
• ESPN LA
• GolfChannel.com
• PGA.com
• SCGA.com
Targeted keywords include "Golf," "Best Golf Courses," and "Tee Times in Greater Palm Springs/La Quinta," resulting in over 10 million impressions. SilverRock will continue strategic partnerships to maintain a strong digital presence.

Social Media
In partnership with GolfNow, SilverRock will maintain a strong and growing presence on platforms like Facebook and Instagram.
• The Facebook page has nearly 20,000 followers and is a key communication tool. • Instagram efforts will expand, with more short-form “beauty clips” showcasing the golf course.

Online Reviews, Reputation Management & Word-of-Mouth
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Online platforms such as Google, Yelp, and GolfPass (powered by GolfNow) are actively monitored. All reviews receive a response within 48 hours.

Reputation management remains a critical priority—especially during ongoing construction—to ensure guest satisfaction and maintain SilverRock’s standing as a top golf destination.

Content Email Marketing
SilverRock will continue to collaborate with select publications and partners to deploy contentdriven email marketing. These campaigns are designed to engage subscribers and promote both golf and food & beverage offerings.

Website & Online Bookings
Most tee times are now booked online and prepaid at the time of booking. A continued focus will be placed on:
• Enhancing the mobile-friendly website
• Improving user experience across desktop, tablet, and mobile • Promoting digital gift card purchases
• Showcasing the SilverRock Grill menus (breakfast & lunch) SilverRock also offers a free app (available on iOS and Android), allowing golfers to book tee times instantly with no booking fees.

Junior Golf Initiatives
SilverRock proudly supports junior golf through:
• Junior lessons and rates
• Hosting the La Quinta High School Boys and Girls Golf Teams • Continued participation in the SCGA Youth on Course program, which allows juniors to access golf at affordable green fees.

Collateral Materials
Marketing collateral such as rack cards, scorecards, and information packets will be produced as needed. These materials promote SilverRock’s identity and history, including its role as the former Home Course of the Bob Hope Classic (2008–2011).
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City of La Quinta
CITY COUNCIL MEETING: June 17, 2025

STAFF REPORT
AGENDA TITLE: APPROVE AGREEMENT FOR CONTRACT SERVICES WITH AK

JOHNSTON LLC FOR SPECIAL EVENT AUDIO AND VISUAL SERVICES

RECOMMENDATION
Approve Agreement for Contract Services with AK Johnston LLC. for special event audio and visual services.

EXECUTIVE SUMMARY
 The City’s community event lineup includes a variety of family-friendly experiences that provide an opportunity for residents and visitors to participate in fun, engaging, and memorable activities throughout the year.
 On January 24, 2025, staff published a Request for Proposal (RFP) seeking a vendor to provide audio and visual (AV) services for City events including the Veterans Recognition Ceremony, Annual Tree Lighting, and City Birthday Celebration; 4 proposals were received.
 AK Johnston LLC. (AK Johnston) was selected as best qualified based on their experience, available resources, and ability to elevate signature City events. Staff seek Council approval for a 1-year agreement (Attachment 1), with the option to extend for 2 additional years.

FISCAL IMPACT
Total estimated cost per the proposed agreement is not to exceed $960,000, as detailed in the table below, for the initial 1-year term and an optional 2-year extension, based on successful performance by the vendor. The contingency is intended to account for anticipated rises in labor, transportation, and equipment costs. Funds will be budgeted per fiscal year (FY) in accordance with the agreement in the Community Experiences account no. 101-3003-60149.

Term Estimated Cost
FY 2025/26 $300,000
FY 2026/27 $300,000
FY 2027/28 $315,750
Contingency FYs 2025/26 to 2027/28
(calculated at 5%) $ 44,250
Grand Total: $960,000
BUSINESS SESSION ITEM NO. 4
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BACKGROUND/ANALYSIS
The City of La Quinta is committed to offering high-quality community events that attract residents and visitors, enhance community pride, and support local businesses. The annual event lineup includes a variety of family-friendly experiences including the Veterans Recognition Ceremony, Annual Tree Lighting, City Birthday Celebration, and Concerts in the Park Series. To ensure these events are successful and memorable, professional AV services are essential for delivering clear sound, engaging visuals, and seamless event execution.

On January 24, 2025, staff published an RFP seeking qualified AV vendors to partner with the City for upcoming events; and 4 proposals were received. The RFP was published on the City website and distributed to several AV vendors throughout Southern California.,. Each vendor was interviewed by a panel of staff members from the Community Services Department and City Manager’s Office. The interview panel unanimously recommend AK Johnston as the preferred AV vendor due to their extensive experience and proven track record in providing AV services for large-scale public events across the nation. The company stands out for its reliability and innovative approach to event production, supported by state-of-the-art equipment and a highly technical team that ensures exceptional sound, lighting, and stage quality. Furthermore, AK Johnston has proposed enhancements such as interactive event elements and creative stage designs, all of which promise to elevate the City’s events, attract more visitors, and enrich the overall experience. Their commitment to punctuality and efficiency also guarantees that events will begin on time and proceed smoothly, minimizing disruptions and maximizing enjoyment for all attendees.

The cost for enhanced AV services exceeds that of previous years; however, this investment is justified by the anticipated improvements in service quality and operational efficiency. Quality AV is a cornerstone of successful events, and the benefits, including improved sound clarity, professional staging, and innovative features, will be immediately apparent to event attendees. These improvements are expected to increase event attendance, boost local economic activity, and further solidify La Quinta’s reputation as a premier destination for community gatherings. If approved, AK Johnston will begin AV services for the City’s events in FY 2025/26.

ALTERNATIVES
Council may direct staff to explore other vendors for AV services.

Prepared by: Michael Calderon, Senior Management Analyst Approved by: Christina Calderon, Community Services Deputy Director Attachments: 1. Agreement for Contract Services with AK Johnston

2. AK Johnston Case Studies
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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 AKJOHNSTON, California Limited Liability Corporation, with a place of business at 533 S. Rose Street, Anaheim, California 92805 (“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 audio-visual services for the Cities community events, as specified in the “Scope of Services” attached hereto as “Exhibit A” and incorporated herein by this reference (the “Services”). Contracting Party represents and warrants that Contracting Party is a provider of first-class work and/or services and Contracting Party is experienced in performing the Services contemplated herein and, in light of such status and experience, Contracting Party covenants that it shall follow industry standards in performing the Services required hereunder, and that all materials, if any, will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase “industry standards” shall mean those standards of practice recognized by one or more first-class firms performing similar services under similar circumstances.

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

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

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

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

1.5 Familiarity with Work. By executing this Agreement, Contracting Party warrants that (a) it has thoroughly investigated and considered the Services to be 313 CLICK HERE to Return to Agenda
ATTACHMENT 1
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.

Compensation for properly authorized Additional Services shall be made in accordance with Section 2.3 of this Agreement.
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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 Nine Hundred Sixty Thousand Seven Hundred Fifty Dollars ($960,750), 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 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 315 CLICK HERE to Return to Agenda
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, 2025, and terminate on June 30, 2026 (“Initial Term”). This Agreement may be extended for two additional year(s) 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) Name: John Mitchell
Telephone No.: 1-818-303-6238
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 Christina Calderon or assigned designee may be designated in writing by the City Manager of the City. It shall be Contracting Party’s responsibility to assure that the Contract Officer, or assigned designee, is kept informed of the progress of the performance of the Services, and Contracting Party shall refer any decisions, that must be made by City to the Contract Officer, or assigned designee. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer, or assigned designee. The Contract Officer, or assigned designee, shall have authority to sign all documents on behalf of City required hereunder to carry out the terms of this Agreement.

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

5. INSURANCE.

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

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

6. INDEMNIFICATION.

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

7. RECORDS AND REPORTS.

7.1 Reports. Contracting Party shall periodically prepare and submit to the Contract Officer, or assigned designee, such reports concerning Contracting Party’s performance of the Services required by this Agreement as the Contract Officer, or assigned designee, shall require. Contracting Party hereby acknowledges that City is greatly concerned about the cost of the Services to be performed pursuant to this Agreement. For this reason, Contracting Party agrees that if Contracting Party becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Services contemplated herein or, if Contracting Party is providing design services, the cost of the project being designed, Contracting Party shall promptly notify the Contract Officer, or assigned designee, of said fact, circumstance, technique, or event and the estimated 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 319 CLICK HERE to Return to Agenda
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 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 320 CLICK HERE to Return to Agenda
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 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 321 CLICK HERE to Return to Agenda
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 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 322 CLICK HERE to Return to Agenda
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.

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

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

10. MISCELLANEOUS PROVISIONS.

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

To City:

CITY OF LA QUINTA
Attention: Christina Calderon
78495 Calle Tampico
La Quinta, California 92253
To Contracting Party:

AK JOHNSTON
Attention: John Mitchell
533 S Rose St.

Anaheim, California 92805

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

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

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

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

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:

AK JOHNSTON
a California Limited Liability Company
AUSTIN JOHNSTON, Founder/CEO
Dated: ___________________________
ATTEST:

MONIKA RADEVA, City Clerk
City of La Quinta, California
APPROVED AS TO FORM:

WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
326 CLICK HERE to Return to Agenda
Exhibit A
Scope of Services
Services to be Provided:

Contracting Party shall provide and operate all necessary audio, visual, and lighting equipment for each City event as specified in the Project Schedule (Attachment 1), including but not limited to microphones (wired and wireless), speakers, monitors, audio mixers, projectors/screens, stage lighting, and staging as required.

Contracting Party shall arrive on site a minimum of four (4) hours prior to event start for setup and testing, provide on-site technical support throughout the event, and handle all teardown and removal post-event. Contracting Party will participate in pre-event site visits as requested and ensure all equipment is fully functional, with backup solutions available for critical components.

Audio and Visual Services to include:

Equipment Provision
• Sufficient microphones (wired and wireless handheld as needed for presenters, performers, and audience Q&A).
• Adequate speakers and monitors to ensure clear sound coverage for the entire event area.
• Audio mixers/sound boards to balance and control all audio sources. • Projectors and/or large screens/monitors for presentations, videos, or live feeds. • Stage setup (if required for specific events), including risers and stairs. • Stage and ambient lighting, including spotlights and colored lighting as needed for performances and presentations.
• Video cameras for recording or live streaming, if applicable. • All necessary cables, connectors, power supplies, and backup equipment.

Service Requirements
• On-site AV technicians for setup, operation, troubleshooting, and teardown. • Pre-event site visit and technical assessment to confirm venue needs, test acoustics, and identify power and placement requirements. 327 CLICK HERE to Return to Agenda
• Full system setup and comprehensive testing of all equipment prior to the event start.
• Live technical support throughout the event to address any issues immediately. • Post-event teardown and removal of all AV equipment.

Timing and Logistics
• AV company must arrive no less than [typically 3–5 hours, or as specified based on event size] before the event start time to allow for setup, testing, and troubleshooting.
• For larger or more complex events, setup may need to begin the day prior; specify the minimum lead time required.
• Participation in pre-event rehearsals or run-throughs, if scheduled, to ensure all AV elements function as intended.

General Provisions
• The AV provider must ensure all equipment is in good working order and provide backup units for critical components (e.g., spare microphones, cables). • Compliance with all venue safety and electrical requirements. • Coordination with event staff regarding event schedule, cues, and any special requirements (e.g., accessibility needs like captioning).

Video and Photography
• Professional photography and video with post-production editing including B-Roll and interview shoots, stock music, stock video, graphics/FX, and professional voiceover for the Veterans Recognition Ceremony, Tree Lighting Ceremony, City Birthday, and one (1) Concert in the Park.

Tentative Event Schedule
The City of La Quinta provides the following tentative event schedule for AV services throughout the year. The event dates, times, and locations are subject to change due to unforeseen circumstances or scheduling needs. The City will communicate any changes to Contracting Party in advance and collaborate closely to confirm and secure key event dates, particularly for signature events such as Concerts in the Park. This approach ensures flexibility while maintaining clear coordination to support successful event execution.
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DATE EVENT LOCATION TIME
Tuesday
August 26, 2025
Hunter Lopez
Vigil
Civic Center Campus 7:00pm – 8:00pm
Thursday
September 11, 2025
9/11 Candlelight
Vigil
Civic Center Campus 7:00pm – 8:00pm
Friday
October 3rd or 10, 2025
Fall Event La Quinta Park 5:00pm – 9:00pm
Tuesday
November 11, 2025
Veterans
Recognition
Ceremony
City Hall 9:00am – 11:00am
Friday
December 5, 2025
Tree Lighting
Ceremony
Civic Center Campus 6:00pm – 8:00pm
Sunday
December 7, 2025
IRONMAN Finish
Line Event
Silverrock Park TBD
Wednesday
February 4, 2026
Concert in the
Park
Silverrock Park TBD
Saturday
February 28, 2026
Concert in the
Park
Silverrock Park TBD
Wednesday
March 4, 2026
Concert in the
Park
Silverrock Park TBD
Saturday
March 28, 2026
Concert in the
Park
Silverrock Park TBD
Saturday
April 25, 2026
La Quinta
Birthday
Celebration
Civic Center Campus 9:00am – 12:00pm
Wednesday
May 6, 2026
Concert in the
Park
Silverrock Park TBD
Saturday
May 23, 2026
Concert in the
Park
Silverrock Park TBD
If the Agreement is extended in accordance with Section 3.4 Term of the Agreement, City and Contracting Party shall execute a written amendment that will identify the services to be provided by Contracting Party for the Extended Term. 329 CLICK HERE to Return to Agenda

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

1. Prevailing Wage Compliance. If Contracting Party is a contractor performing public works and maintenance projects, as described in this Section 1.3, Contracting Party shall comply with applicable Federal, State, and local laws. Contracting Party is aware of the requirements of California Labor Code Sections 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Sections 16000, et seq., (collectively, the “Prevailing Wage Laws”), and La Quinta Municipal Code Section 3.12.040, which require the payment of prevailing wage rates and the performance of other requirements on “Public works” and “Maintenance” projects. If the Services are being performed as part of an applicable “Public works” or “Maintenance” project, as defined by the Prevailing Wage Laws, and if construction work over twentyfive thousand dollars ($25,000.00) and/or alterations, demolition, repair or maintenance work over fifteen thousand dollars ($15,000.00) is entered into or extended on or after January 1, 2015 by this Agreement, Contracting Party agrees to fully comply with such Prevailing Wage Laws including, but not limited to, requirements related to the maintenance of payroll records and the employment of apprentices. Pursuant to California Labor Code Section 1725.5, no contractor or subcontractor may be awarded a contract for public work on a “Public works” project unless registered with the California Department of Industrial Relations (“DIR”) at the time the contract is awarded. If the Services are being performed as part of an applicable “Public works” or “Maintenance” project, as defined by the Prevailing Wage Laws, this project is subject to compliance monitoring and enforcement by the DIR. Contracting Party will maintain and will require all subcontractors to maintain valid and current DIR Public Works contractor registration during the term of this Agreement. Contracting Party shall notify City in writing immediately, and in no case more than twenty-four (24) hours, after receiving any information that Contracting Party’s or any of its subcontractor’s DIR registration status has been suspended, revoked, expired, or otherwise changed. It is understood that it is the responsibility of Contracting Party to determine the correct salary scale. Contracting Party shall make copies of the prevailing rates of per diem wages for each craft, classification, or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at Contracting Party’s principal place of business and at the project site, if any. The statutory penalties for failure to pay prevailing wage or to comply with State wage and hour laws will be enforced. Contracting Party must forfeit to City TWENTY-FIVE DOLLARS ($25.00) per day for each worker who works in excess of the minimum working hours when Contracting Party does not pay overtime. In accordance with the provisions of Labor Code Sections 1810 et seq., eight (8) hours is the legal working day. Contracting Party also shall comply with State law requirements to maintain payroll records and shall provide for certified records and inspection of records as required by California Labor Code Section 1770 et seq., including Section 1776. In addition to the other indemnities provided under this Agreement, Contracting Party shall defend (with counsel selected by City), indemnify, and hold City, 330 CLICK HERE to Return to Agenda
its elected officials, officers, employees, and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It is agreed by the parties that, in connection with performance of the Services, including, without limitation, any and all “Public works” (as defined by the Prevailing Wage Laws), Contracting Party shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law. Contracting Party acknowledges and agrees that it shall be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with such laws.

Contracting Party shall require the same of all subcontractors.

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

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

4. Trenches or Excavations. Pursuant to California Public Contract Code Section 7104, in the event the work included in this Agreement requires excavations more than four (4) feet in depth, the following shall apply:
(a) Contracting Party shall promptly, and before the following conditions are disturbed, notify City, in writing, of any: (1) material that Contracting Party believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; (2) subsurface or latent physical conditions at the site different from those indicated by information about the site made available to bidders prior to the deadline for submitting bids; or (3) unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the Agreement. 331 CLICK HERE to Return to Agenda
(b) City shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in Contracting Party’s cost of, or the time required for, performance of any part of the work shall issue a change order per Section 1.8 of the Agreement. (c) in the event that a dispute arises between City and Contracting Party whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contracting Party’s cost of, or time required for, performance of any part of the work, Contracting Party shall not be excused from any scheduled completion date provided for by this Agreement, but shall proceed with all work to be performed under this Agreement. Contracting Party shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the contracting Parties.

5. Safety. Contracting Party shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out the Services, Contracting Party shall at all times be in compliance with all applicable local, state, and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

6. Liquidated Damages. Since the determination of actual damages for any delay in performance of the Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, Contracting Party shall be liable for and shall pay to City the sum of One Thousand dollars ($1,000.00) as liquidated damages for each working day of delay in the performance of any of the Services required hereunder, as specified in the Schedule of Performance. In addition, liquidated damages may be assessed for failure to comply with the emergency call out requirements, if any, described in the Scope of Services. City may withhold from any moneys payable on account of the Services performed by Contracting Party any accrued liquidated damages. 332 CLICK HERE to Return to Agenda
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 Nine Hundred and Sixty Thousand Dollars ($960,000) for the life of the Agreement, encompassing the Initial and any Extended Terms (“Contract Sum”). The Contract Sum shall be paid to Contracting Party in installment payments in an agreed upon amount and properly invoiced by Contracting Party in conformance with Section 2.2 of this Agreement.

Payment Schedule is as follows:

FY 2025/26 Annual Compensation – $300,000
FY 2026/27 Annual Compensation – $300,000
FY 2027/28 Annual Compensation – $315,750
Contingency FYs 2025/26 – 2027/28 – $44,250
Estimated event cots are detailed in the table below:
333 CLICK HERE to Return to Agenda
AKJOHNSTON PROPOSAL 253000
Hunter Lopez Vigil
14 March 2025
Production Technology and Staging $9,450.00
1 Audio Engineering, Outboard Amplification & Speaker System $5,500.00 $5,500.00 Four (4) powered speakers will be set around the stage and on the stage deck for front-fill to create an audible environment that is balanced right to left, front to back within the space. Processing and equalization from the sound mix is also included.
1 Wireless Handheld Microphones $125.00 $125.00
1 Microphones: Package TBD $125.00 $125.00
Better defined once the artist rider is received
4 Theatrical Lighting Package $600.00 $2,400.00
LED Leko package on heavy pipe and base positions
1 16'x8' Riser at 2’ Tall, Black Carpet Top & Black Skirting Included $700.00 $700.00 1 Stage Stairs $25.00 $25.00
1 Electrical Cable Package $250.00 $500.00
1 FOH Drape Masking Kit with Hardware $75.00 $75.00
1 Power Provided by Venue to LOCATION CLIENT CLIENT
Labor $4,500.00
1 Audio Engineer (A1) for Load-In, Show Run and Strike $900.00 $900.00 3 Stagehands for Load-In and Strike $600.00 $1,800.00
1 Lighting Technician (L1) for Load-In, Show Run and Strike $900.00 $900.00 1 Technical Supervisor $900.00 $900.00
Production Fees $2,000.00
1 RT Transportation, La Quinta CA $1,500.00 $1,500.00
1 Tool Kit & Cleaning Kit $250.00 $250.00
1 Production Expendables $250.00 $250.00
Event Subtotal $15,950.00
Insurance $319.00
*California Sales Tax (7.75%) $269.38
Grand Total Amount $16,538.38
Proposal is based off 12-week lead time from written approval, signed contract and deposit completion. Delays to provide approvals, signatures or monetary payments may delay delivery or expedite fees may apply to rush project! Late payments are subject to 3% monthly interest charges.

Payment Schedule
Final Payment Due NET15 to AKJOHNSTON $16,538.38
Exhibit B
Schedule of Compensation
334 CLICK HERE to Return to Agenda
Event Information:

Hunter Lopez Vigil
Event time 7pm-9pm
Approx 300 attendendees
Delivery/Location Information:

City of La Quinta Civic Center Campus
78495 Calle Tampico
La Quinta, CA 92253
Client/Billing Information:

City of La Quinta
78495 Calle Tampico
La Quinta, CA 92253
Contact Information :

Michael Calderon , Community Services Analyst
760-777-7014
[email protected]
AKJ Contact:

John Mitchell
Vice President, Client Services
[email protected]
DISCLAIMER: ALL CREATIVE IDEAS, CONCEPTS, DESIGNS AND ENGINEERING CONTAINED WITHIN THIS DOCUMENT AND ASSOCIATED DOCUMENTS IS EXCLUSIVE PROPERTY OF AKJOHNSTON GROUP AND ITS AFFILIATES, INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL. 533 S. Rose St., Anaheim, California 92805 | www.akjohnston.com | (866) 212-2192 | [email protected] 335 CLICK HERE to Return to Agenda
AKJOHNSTON PROPOSAL 253000
9/11 Vigil
14 March 2025
Production Technology and Staging $5,965.00
1 Audio Engineering, Outboard Amplification & Speaker System $3,190.00 $3,190.00 Four (4) powered speakers will be set around the stage and on the stage deck for front-fill to create an audible environment that is balanced right to left, front to back within the space. Processing and equalization from the sound mix is also included.
1 Wireless Handheld Microphones $125.00 $125.00
1 Microphones: Package TBD $150.00 $150.00
Better defined once the artist rider is received
2 Theatrical Lighting Package $600.00 $1,200.00
LED Leko package on heavy pipe and base positions
1 16'x8' Riser at 2’ Tall, Black Carpet Top & Black Skirting Included $700.00 $700.00 1 Stage Stairs $25.00 $25.00
1 Electrical Cable Package $250.00 $500.00
1 FOH Drape Masking Kit with Hardware $75.00 $75.00
1 Power Provided by Venue to LOCATION CLIENT CLIENT
Labor $5,850.00
1 Audio Assistant (A2) for Load-In, Show Run and Strike $750.00 $750.00 1 Audio Engineer (A1) for Load-In, Show Run and Strike $900.00 $900.00 4 Stagehands for Load-In and Strike $600.00 $2,400.00
1 Lighting Technician (L1) for Load-In, Show Run and Strike $900.00 $900.00 1 Technical Supervisor $900.00 $900.00
Production Fees $2,000.00
1 RT Transportation, La Quinta CA $1,500.00 $1,500.00
1 Tool Kit & Cleaning Kit $250.00 $250.00
1 Production Expendables $250.00 $250.00
Event Subtotal $13,815.00
Insurance $276.30
*California Sales Tax (7.75%) $269.38
Grand Total Amount $14,360.68
Proposal is based off 12-week lead time from written approval, signed contract and deposit completion. Delays to provide approvals, signatures or monetary payments may delay delivery or expedite fees may apply to rush project! Late payments are subject to 3% monthly interest charges.

Payment Schedule
336 CLICK HERE to Return to Agenda
Final Payment Due NET15 to AKJOHNSTON $14,360.68
Event Information:
9/11 Vigil
Event time 7pm-9pm
Approx 300 attendendees
Delivery/Location Information:

City of La Quinta Civic Center Campus
78495 Calle Tampico
La Quinta, CA 92253
Client/Billing Information:

City of La Quinta
78495 Calle Tampico
La Quinta, CA 92253
Contact Information :

Michael Calderon , Community Services Analyst
760-777-7014
[email protected]
AKJ Contact:

John Mitchell
Vice President, Client Services
[email protected]
DISCLAIMER: ALL CREATIVE IDEAS, CONCEPTS, DESIGNS AND ENGINEERING CONTAINED WITHIN THIS DOCUMENT AND ASSOCIATED DOCUMENTS IS EXCLUSIVE PROPERTY OF AKJOHNSTON GROUP AND ITS AFFILIATES, INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL. 533 S. Rose St., Anaheim, California 92805 | www.akjohnston.com | (866) 212-2192 | [email protected] 337 CLICK HERE to Return to Agenda
AKJOHNSTON PROPOSAL 253000
Veterans Recognition Ceremony
14 March 2025
Production Technology and Staging $5,890.00
1 Audio Engineering, Outboard Amplification & Speaker System $3,190.00 $3,190.00 Four (4) powered speakers will be set around the stage and on the stage deck for front-fill to create an audible environment that is balanced right to left, front to back within the space. Processing and equalization from the sound mix is also included.
1 Wireless Handheld Microphones $125.00 $125.00
2 80" LED-LCD Monitor in 1080p HD on 84" Floor Stand $875.00 $1,750.00 1 Laptop Playback and Slide Advance for Presentation $250.00 $250.00 1 Electrical Cable Package $250.00 $500.00
1 FOH Drape Masking Kit with Hardware $75.00 $75.00
1 Power Provided by Venue to LOCATION CLIENT CLIENT
Labor $4,950.00
1 Audio Assistant (A2) for Load-In, Show Run and Strike $750.00 $750.00 1 Audio Engineer (A1) for Load-In, Show Run and Strike $900.00 $900.00 4 Stagehands for Load-In and Strike $600.00 $2,400.00
1 Technical Supervisor $900.00 $900.00
Production Fees $2,000.00
1 RT Transportation, La Quinta CA $1,500.00 $1,500.00
1 Tool Kit & Cleaning Kit $250.00 $250.00
1 Production Expendables $250.00 $250.00
Event Subtotal $12,840.00
Insurance $256.80
*California Sales Tax (7.75%) $269.38
Grand Total Amount $13,366.18
Proposal is based off 12-week lead time from written approval, signed contract and deposit completion. Delays to provide approvals, signatures or monetary payments may delay delivery or expedite fees may apply to rush project! Late payments are subject to 3% monthly interest charges.

Payment Schedule
Final Payment Due NET15 to AKJOHNSTON $13,366.18
Project Information:
338 CLICK HERE to Return to Agenda
Veterans Recognition Ceremony
Event from 9am-11am
Approx 450 attendees
Delivery/Location Information:

City of La Quinta Civic Center Campus
78495 Calle Tampico
La Quinta, CA 92253
Client/Billing Information:

City of La Quinta
78495 Calle Tampico
La Quinta, CA 92253
Contact Information :

Michael Calderon , Community Services Analyst
760-777-7014
[email protected]
AKJ Contact:

John Mitchell
Vice President, Client Services
[email protected]
DISCLAIMER: ALL CREATIVE IDEAS, CONCEPTS, DESIGNS AND ENGINEERING CONTAINED WITHIN THIS DOCUMENT AND ASSOCIATED DOCUMENTS IS EXCLUSIVE PROPERTY OF AKJOHNSTON GROUP AND ITS AFFILIATES, INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL. 533 S. Rose St., Anaheim, California 92805 | www.akjohnston.com | (866) 212-2192 | [email protected] 339 CLICK HERE to Return to Agenda
AKJOHNSTON PROPOSAL 253000
Fall Event
14 March 2025
Production Technology and Staging $9,675.00
1 Audio Engineering, Outboard Amplification & Speaker System $5,500.00 $5,500.00 Talent audio will transmit into our digital audio mixing console for levels and sound performance to control throughout the program and event. The band music mix from their audio console and all spoken word, will be amplified through powered speakers surrounding the space for audible clarity and range during the eve
1 Band Microphone package $1,200.00 $1,200.00
Better defined once the artist rider is received
1 Laptop Playback and Slide Advance for Presentation $250.00 $250.00 1 Theatrical Lighting Package $2,400.00 $2,400.00
LED Leko package on heavy pipe and base positions
1 Electrical cable package $250.00 $250.00
1 FOH Drape Masking Kit - with Hardware $75.00 $75.00
1 Power Provided by Venue to LOCATION CLIENT CLIENT
Labor $4,950.00
1 Audio Assistant (A2) for Load-In, Show Run and Strike $750.00 $750.00 1 Audio Engineer for Load-In, Show Run and Strike $900.00 $900.00 4 Stagehands for Load-In and Strike $600.00 $2,400.00
1 Technical Supervisor $900.00 $900.00
Production Fees $2,000.00
1 RT Transportation, La Quinta CA $1,500.00 $1,500.00
1 Tool Kit & Cleaning Kit $250.00 $250.00
1 Production Expendables $250.00 $250.00
Event Subtotal $16,625.00
Insurance $332.50
*California Sales Tax (7.75%) $269.38
Grand Total Amount $17,226.88
Proposal is based off 12-week lead time from written approval, signed contract and deposit completion. Delays to provide approvals, signatures or monetary payments may delay delivery or expedite fees may apply to rush project! Late payments are subject to 3% monthly interest charges.

Payment Schedule
Final Payment Due NET15 to AKJOHNSTON $17,226.88
Project Information:
340 CLICK HERE to Return to Agenda
Fall Event
TBD location and time
Approx 500-1000 attendees
Delivery/Location Information:

City of La Quinta Civic Center Campus
78495 Calle Tampico
La Quinta, CA 92253
Client/Billing Information:

City of La Quinta
78495 Calle Tampico
La Quinta, CA 92253
Contact Information :

Michael Calderon , Community Services Analyst
760-777-7014
[email protected]
AKJ Contact:

John Mitchell
Vice President, Client Services
[email protected]
DISCLAIMER: ALL CREATIVE IDEAS, CONCEPTS, DESIGNS AND ENGINEERING CONTAINED WITHIN THIS DOCUMENT AND ASSOCIATED DOCUMENTS IS EXCLUSIVE PROPERTY OF AKJOHNSTON GROUP AND ITS AFFILIATES, INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL. 533 S. Rose St., Anaheim, California 92805 | www.akjohnston.com | (866) 212-2192 | [email protected] 341 CLICK HERE to Return to Agenda
AKJOHNSTON PROPOSAL 253000
Tree Lighting Ceremony
14 March 2025
Production Technology and Staging $10,200.00
1 Audio Engineering, Outboard Amplification & Speaker System $5,500.00 $5,500.00 Talent audio will transmit into our digital audio mixing console for levels and sound performance to control throughout the program and event. The band music mix from their audio console and all spoken word, will be amplified through powered speakers surrounding the space for audible clarity and range during the eve
4 Wireless Handheld Microphones $125.00 $500.00
6 Microphones: For Performing Act TBD $125.00 $750.00
Better defined once the artist rider is received
1 Theatrical Lighting Package $3,200.00 $3,200.00
LED Leko package on heavy pipe and base positions. Additional ambient lighting on the edge of the stage to add movement and texture 1 Ambient lighting package
1 16ftx14ft Stage CLENT CLIENT
1 Stage Stairs CLENT CLIENT
1 Laptop Playback and Slide Advance for Presentation $250.00 $250.00 1 Power Provided by Venue to LOCATION CLIENT CLIENT
Labor $8,400.00
2 Audio Assistant (A2) for Load-In, Show Run and Strike $750.00 $1,500.00 1 Audio Engineer (A1) for Load-In, Show Run and Strike $900.00 $900.00 6 Stagehands for Load-In and Strike $600.00 $3,600.00
2 Lighting Technician for Load-In, Show Run and Strike $750.00 $1,500.00 1 Technical Supervisor $900.00 $900.00
Production Fees $2,000.00
1 RT Transportation, La Quinta CA $1,500.00 $1,500.00
1 Tool Kit & Cleaning Kit $250.00 $250.00
1 Production Expendables $250.00 $250.00
Event Subtotal $20,600.00
Insurance $412.00
*California Sales Tax (7.75%) $269.38
Grand Total Amount $21,281.38
Proposal is based off 12-week lead time from written approval, signed contract and deposit completion. Delays to provide approvals, signatures or monetary payments may delay delivery or expedite fees may apply to rush project! Late payments are subject to 3% monthly interest charges.
342 CLICK HERE to Return to Agenda
Payment Schedule
Final Payment Due NET15 to AKJOHNSTON $21,281.38
Project Information:

Tree Lighting Ceremony
Approximate 1000 attendees
Delivery/Location Information:

City of La Quinta Civic Center Campus
78495 Calle Tampico
La Quinta, CA 92253
Client/Billing Information:

City of La Quinta
78495 Calle Tampico
La Quinta, CA 92253
Contact Information :

Michael Calderon , Community Services Analyst
760-777-7014
[email protected]
AKJ Contact:

John Mitchell
Vice President, Client Services
[email protected]
DISCLAIMER: ALL CREATIVE IDEAS, CONCEPTS, DESIGNS AND ENGINEERING CONTAINED WITHIN THIS DOCUMENT AND ASSOCIATED DOCUMENTS IS EXCLUSIVE PROPERTY OF AKJOHNSTON GROUP AND ITS AFFILIATES, INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL. 533 S. Rose St., Anaheim, California 92805 | www.akjohnston.com | (866) 212-2192 | [email protected] 343 CLICK HERE to Return to Agenda
AKJOHNSTON PROPOSAL 253000
Iron Man Finish Line
14 March 2025
Production Technology and Staging $6,775.00
1 Audio Engineering, Outboard Amplification & Speaker System $5,500.00 $5,500.00 Talent audio will transmit into our digital audio mixing console for levels and sound performance to control throughout the program and event. The band music mix from their audio console and all spoken word, will be amplified through powered speakers surrounding the space for audible clarity and range during the eve
1 Band Microphone package $1,200.00 $1,200.00
Better defined once the artist rider is received
1 FOH Drape Masking Kit - with Hardware $75.00 $75.00
1 Power Provided by Venue to LOCATION CLIENT CLIENT
Labor $4,950.00
1 Audio Assistant (A2) for Load-In, Show Run and Strike $750.00 $750.00 1 Audio Engineer (A1) for Load-In, Show Run and Strike $900.00 $900.00 4 Stagehands for Load-In and Strike $600.00 $2,400.00
1 Technical Supervisor $900.00 $900.00
Production Fees $8,000.00
1 RT Transportation, La Quinta CA $1,500.00 $1,500.00
1 Tool Kit & Cleaning Kit $250.00 $250.00
1 Production Expendables $250.00 $250.00
1 Band contracting services $6,000.00 $6,000.00
Event Subtotal $19,725.00
Insurance $394.50
*California Sales Tax (7.75%) $269.38
Grand Total Amount $20,388.88
Proposal is based off 12-week lead time from written approval, signed contract and deposit completion. Delays to provide approvals, signatures or monetary payments may delay delivery or expedite fees may apply to rush project! Late payments are subject to 3% monthly interest charges.

Payment Schedule
Final Payment Due NET15 to AKJOHNSTON $20,388.88
Project Information:

Ironman Triathlon Finish Line Event
TBD Day and time
Approximate 1000 attendees
344 CLICK HERE to Return to Agenda
Delivery/Location Information:

City of La Quinta Civic Center Campus
78495 Calle Tampico
La Quinta, CA 92253
Client/Billing Information:

City of La Quinta
78495 Calle Tampico
La Quinta, CA 92253
Contact Information :

Michael Calderon , Community Services Analyst
760-777-7014
[email protected]
AKJ Contact:

John Mitchell
Vice President, Client Services
[email protected]
DISCLAIMER: ALL CREATIVE IDEAS, CONCEPTS, DESIGNS AND ENGINEERING CONTAINED WITHIN THIS DOCUMENT AND ASSOCIATED DOCUMENTS IS EXCLUSIVE PROPERTY OF AKJOHNSTON GROUP AND ITS AFFILIATES, INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL. 533 S. Rose St., Anaheim, California 92805 | www.akjohnston.com | (866) 212-2192 | [email protected] 345 CLICK HERE to Return to Agenda
AKJOHNSTON PROPOSAL 253000
City Picnic and Birthday
Celebration
14 March 2025
Production Technology and Staging $6,900.00
1 Audio Engineering, Outboard Amplification & Speaker System $5,500.00 $5,500.00 Talent audio will transmit into our digital audio mixing console for levels and sound performance to control throughout the program and event. The band music mix from their audio console and all spoken word, will be amplified through powered speakers surrounding the space for audible clarity and range during the event.
1 Wireless Handheld Microphones $125.00 $125.00
1 Band Microphone package $1,200.00 $1,200.00
Better defined once the artist rider is received
1 16ftx24ft Stage CLENT /
1 Stage Stairs CLENT CLIENT
1 FOH Drape Masking Kit - with Hardware $75.00 $75.00
1 Power Provided by Venue to LOCATION CLIENT CLIENT
Labor $4,950.00
1 Audio Assistant (A2) for Load-In, Show Run and Strike $750.00 $750.00 1 Audio Engineer (A1) for Load-In, Show Run and Strike $900.00 $900.00 4 Stagehands for Load-In and Strike $600.00 $2,400.00
1 Technical supervisor $900.00 $900.00
Production Fees $8,000.00
1 RT Transportation, La Quinta CA $1,500.00 $1,500.00
1 Tool Kit & Cleaning Kit $250.00 $250.00
1 Production Expendables $250.00 $250.00
1 Band contracting services $6,000.00 $6,000.00
Event Subtotal $19,850.00
Insurance $397.00
*California Sales Tax (7.75%) $269.38
Grand Total Amount $20,516.38
Proposal is based off 12-week lead time from written approval, signed contract and deposit completion. Delays to provide approvals, signatures or monetary payments may delay delivery or expedite fees may apply to rush project! Late payments are subject to 3% monthly interest charges.

Payment Schedule
Final Payment Due NET15 to AKJOHNSTON $20,516.38
346 CLICK HERE to Return to Agenda
Project Information:

City Picnic and Birthday Celebration
9am-12pm
Approximate 1000 attendees
Delivery/Location Information:

City of La Quinta Civic Center Campus
78495 Calle Tampico
La Quinta, CA 92253
Client/Billing Information:

City of La Quinta
78495 Calle Tampico
La Quinta, CA 92253
Contact Information :

Michael Calderon , Community Services Analyst
760-777-7014
[email protected]
AKJ Contact:

John Mitchell
Vice President, Client Services
[email protected]
DISCLAIMER: ALL CREATIVE IDEAS, CONCEPTS, DESIGNS AND ENGINEERING CONTAINED WITHIN THIS DOCUMENT AND ASSOCIATED DOCUMENTS IS EXCLUSIVE PROPERTY OF AKJOHNSTON GROUP AND ITS AFFILIATES, INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL. 533 S. Rose St., Anaheim, California 92805 | www.akjohnston.com | (866) 212-2192 | [email protected] 347 CLICK HERE to Return to Agenda
AKJOHNSTON PROPOSAL 253000
Concerts in the Park: (6) Events
14 March 2025
Production Technology and Staging $11,275.00
1 Audio Engineering, Outboard Amplification & Speaker System $5,500.00 $5,500.00 Talent audio will transmit into our digital audio mixing console for levels and sound performance to control throughout the program and event. The band music mix from their audio console and all spoken word, will be amplified through powered speakers surrounding the space for audible clarity and range during the event.
1 Band Microphone package $1,200.00 $1,200.00
Better defined once the artist rider is received
1 FOH Drape Masking Kit - with Hardware $75.00 $75.00
1 Truss structure for supplemental event lighting and speaker positions
$4,500.00 $4,500.00
Moving light package and audio array for quality audio support 1 Power Provided by Venue to LOCATION CLIENT CLIENT
Labor $5,850.00
1 Audio Assistant (A2) for Load-In, Show Run and Strike $750.00 $750.00 1 Audio Engineer (A1) for Load-In, Show Run and Strike $900.00 $900.00 4 Stagehands for Load-In and Strike $600.00 $2,400.00
1 Lighting Technician (L1) for Load-In, Show Run and Strike $900.00 $900.00 1 Technical Supervisor $900.00 $900.00
Production Fees $8,000.00
1 RT Transportation, La Quinta CA $1,500.00 $1,500.00
1 Tool Kit & Cleaning Kit $250.00 $250.00
1 Production Expendables $250.00 $250.00
1 Band contracting services $6,000.00 $6,000.00
Event Subtotal $25,125.00
Insurance $502.50
*California Sales Tax (7.75%) $269.38
Grand Total Amount per EACH Event $25,896.88
Grand Total Amount per Event Series of Six (6) Events $155,381.25 Proposal is based off 12-week lead time from written approval, signed contract and deposit completion. Delays to provide approvals, signatures or monetary payments may delay delivery or expedite fees may apply to rush project! Late payments are subject to 3% monthly interest charges.

Payment Schedule
Final Payment Due NET15 to AKJOHNSTON $155,381.25
348 CLICK HERE to Return to Agenda
Project Information:

Concerts in the park (6 concerts over the spring/summer season) 02/2026 (2) , 03/2026 (2), 05/2026 (2)
Approximate 500 attendees
Delivery/Location Information:

Silverrock Park
La Quinta , CA
Client/Billing Information:

City of La Quinta
78495 Calle Tampico
La Quinta, CA 92253
Contact Information :

Michael Calderon , Community Services Analyst
760-777-7014
[email protected]
AKJ Contact:

John Mitchell
Vice President, Client Services
[email protected]
DISCLAIMER: ALL CREATIVE IDEAS, CONCEPTS, DESIGNS AND ENGINEERING CONTAINED WITHIN THIS DOCUMENT AND ASSOCIATED DOCUMENTS IS EXCLUSIVE PROPERTY OF AKJOHNSTON GROUP AND ITS AFFILIATES, INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL. 533 S. Rose St., Anaheim, California 92805 | www.akjohnston.com | (866) 212-2192 | [email protected] 349 CLICK HERE to Return to Agenda
PROJECT 253000
Social Media Content Capture and
Management

5.5.25 Professional Photo and Video with Post-Production Editing for La Quinta $19,800.00 Includes passive B-Roll and interview shoots for engaging post-production like the Indio piece. Stock music, stock video, graphics and FX, as well as professional voiceover or subtitling will be billed actuals upon consumption and is NOT yet included! Rates below are for each event and include one cinematographer and one photographer along with their respective travel fees. An Executive Producer is also included but will not be onsite for shoot days.
1 Photo-Video for Veterans' Recognition Ceremony $4,950.00 $4,950.00 (1) photo shooter, (1) video shooter for (4) hours of live event that is mobile. (20) selects and (2) sizzle reels: 30-sec and 90-sec to be delivered. (2) business day turnaround for all assets
1 Photo-Video for Tree Lighting Ceremony and Event $4,950.00 $4,950.00 (1) photo shooter, (1) video shooter for (4) hours of live event that is mobile. (20) selects and (2) sizzle reels: 30-sec and 90-sec to be delivered. (2) business day turnaround for all assets
1 Photo-Video for City Picnic $4,950.00 $4,950.00
(1) photo shooter, (1) video shooter for (4) hours of live event that is mobile. (20) selects and (2) sizzle reels: 30-sec and 90-sec to be delivered. (2) business day turnaround for all assets
1 Photo-Video for Concerts in the Park 1 $4,950.00 $4,950.00 (1) photo shooter, (1) video shooter for (4) hours of live event that is mobile. (20) selects and (2) sizzle reels: 30-sec and 90-sec to be delivered. (2) business day turnaround for all assets
Project Subtotal $19,800.00
*California Sales Tax (7.75%) $0.00
Grand Total Amount per Proposed Events Series $19,800.00 Client must provide 20-days notice in writing to cancel or suspend services; failure to do so shall result in a kill fee up-to 100% of total. Late payments are subject to 3% monthly interest charges.

Project Information:

La Quinta Media Services
Per-event basis, as defined above
Delivery/Location Information:

La Quinta Venue TBD
Digital Delivery
Client/Billing Information:

City of La Quinta
TBD
La Quinta, CA
Contact Information :

TBD
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TBD
TBD
AKJ Contact:

Houston Hooker
[email protected]
DISCLAIMER: ALL CREATIVE IDEAS, CONCEPTS, DESIGNS AND ENGINEERING CONTAINED WITHIN THIS DOCUMENT AND ASSOCIATED DOCUMENTS IS EXCLUSIVE PROPERTY OF AKJOHNSTON GROUP AND ITS AFFILIATES, INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL. 533 S. Rose St., Anaheim, California 92805 | www.akjohnston.com | (866) 212-2192 | [email protected] 351 CLICK HERE to Return to Agenda
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 (Attachment 1), attached hereto and incorporated herein by this reference. 352 CLICK HERE to Return to Agenda
Exhibit
D
Special Requirements
None
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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. 354 CLICK HERE to Return to Agenda
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 356 CLICK HERE to Return to Agenda
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 357 CLICK HERE to Return to Agenda
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 358 CLICK HERE to Return to Agenda
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. 359 CLICK HERE to Return to Agenda
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. 361 CLICK HERE to Return to Agenda
capabilities + case studies | spring 2025
AKJOHNSTON is a turnkey industry-leader in experiential marketing + production.

Our multidisciplinary team of artists, visionaries, planners and technicians partner with our clients to bring brands and stories to life in exceptional ways. 362 CLICK HERE to Return to Agenda
ATTACHMENT 2
where story meets experience.

Founded in 2008 as a technical production firm, AKJOHNSTON, has evolved to become an award-winning turnkey agency offering a limitless range of design, production and management capabilities. Housed in over 86,000 square feet across six strategically located facilities from our Anaheim Headquarters to our Los Angeles creative studio - to our Las Vegas and San Antonio branches and into New York City - we offer our clients local service with international reach.

Our Creative teams strategize, develop and design impactful campaigns. Our Production teams transform those bold visions into reality, developing logistical roadmaps and methods to execute the impossible! Our Fabrication department builds world-class experiences from the ground up and is one of the top-awarded fabricators in the industry.

From the tried-and-true tradeshow booth, to cutting-edge activations, pop-ups and tours - we are at the intersection of where stories are told through sensory experiences. 363 CLICK HERE to Return to Agenda
technical
capabilities
Moving lights, pin spots, pixel tubes and uplights - we bring light to both arenas and exhibits. We have an impressive catalog of over one thousand fixtures, and that doesn’t even cover the miles of bistro lights and neon! lighting
audio
We turn it up from silent disco to Steven Tyler with experience presenting everything in between! We maintain mixers, mics and outboard gear to create immersive audio within experiential environments all the way up to outdoor concerts. video
Projection to LED panels (even moving light LED panels)… little screens to massive displays… processing and mapping… content and creative… we have video technologies for any project and purpose.
staging + rigging
Three types of staging in inventory, along with all the accessories to make curved, angled, or fully-custom stage and scaffold solutions. Over a mile of show trussing and rigging gear - all managed with impeccable safety standards. direction
Tech positions up the wazoo! With in-house designs and programming, we cover staffing from technical direction, stage hands, stage managers, show callers and every A1, L1 and V1 in-between.
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As a boutique agency, with all of our sectors under one roof, we are able to manage all aspects of our projects down to the smallest details. agency
capabilities
project management
design + strategy
With an in-house design team, we are able to strategize holistic campaigns, stunts and activations that deliver on diverse KPIs with cutting-edge design that push the boundaries.
permitting + engineering
With in-house project engineering and partnerships with international engineering firms, we have the ability to design and build with engineer-stamped plans anywhere - you can even find us in international waters.
branding + marketing
Our graphic design team is knowledgeable on multiple web platforms and creates graphic content always in-line with the brand and the brand’s focus. logistics, trucking + warehousing
We are fully transparent about all things production to ensure that every truck, nut, bolt, body and contract is in-place on time!
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Our versatile team excels at capturing and editing captivating videos, from brand films and event recaps to interviews and social media content. Relive the magic through our dynamic content creation.
media
capabilities
content capture + social
web and ux design
Enhance your brand's online impact with our expertise in compelling web design, high-converting landing pages, targeted micro-pages, user-friendly apps, and a customer-centric approach that amplifies user engagement. special projects
Delve into our specialty projects: AR, VR, games, animation, projection mapping, motion graphics, award submission videos, and behind-the-scenes documentaries.

Experience your story come alive with captivating visuals. out-of-home
Whether you need content for a digital billboard, LED screen, or any other type of outdoor display, we have the expertise to create eye-catching visuals that make your brand stand out in the crowded advertising landscape.
hybrid and broadcast
Elevate your brand digitally with exciting livestreams, engaging webinars, innovative virtual conferences, alluring broadcasting, and interactive events. We ensure your brand shines!
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rental
inventory
Elevate your event with our versatile inventory of bars, counters, tables, chairs, and soft seating options that combine style and functionality. Choose from a wide variety of styles to suit your event theme and atmosphere.
furnishings
flooring
We maintain a range of flooring solutions including hard, soft, carpet, and rugs to create the perfect foundation for your event space, ensuring comfort and aesthetics, or conserve resources with 80% post-consumer red carpet from recycled water bottles! decor and set dressing
Tszuj that set with our curated collection of props, decor and set dressing items - from plants, pots, vases, accessories, books, containers, lamps and hedges, we maintain decor items for press junkets, themed sets and scenic moments to fill space! scenic and wall systems
Create a captivating event layout with our set flats and Aluvision wall systems, providing a customizable and visually stunning backdrop for your event -and using rental systems or theatrical flats saves both cost and environmental resources. mobile vehicles
Take it to go with our fleet of mobile vehicles! From trailers to vintage Citroen trucks, Bronco’s to box trucks, parade floats to carts… we own and operate mobile vehicles and environments that go beyond a food truck - unless you want our food truck, too! 367 CLICK HERE to Return to Agenda
fabrication
capabilities
From hand-crafted to precision CNC, our millwork team takes wood seriously from conceptual organic craftsmanship to commercial prevision parts fabrication, build and finishing.
mill
metal
Heavy metal or light metal, whatever you prefer! With a plasma CNC and plenty of handheld metal tools for our talented metals team, we can scale from finite parts to shipping container playgrounds.
print
Dye-sublimated, printed or die-cut? Large or small format? With three machines working all day and night, we know how to pump out quality print that actually matches a Pantone color - we even do it in an environmentally sustainable manner. specialties
Foam, fabric, acrylic, agricultural and weird stuff we find interesting… we are constantly challenging new materials and substrates that create dimension and enhance memorable experiences in tangible sensory ways! tech integration
Integration of lighting, video, audio and robotics within our builds is how we nerd out on the weekends. Whether we are talking about responsive scenic, monitors built into everything, or even a 20’ robotic claw game… yeah, we do that. 368 CLICK HERE to Return to Agenda
The AKJOHNSTON team maintains an “EnvironMentality” making conscious shifts in our operation to become greener as we grow. Sure, we source FSC-certified materials, maintain filtration and purification of shop systems, solar and LED-illuminated facilities and a truck fleet less than four years old to address conservation of resources.

In addition, we consider upcycling, recycling and donations to so that scenic and raw materials reach their maximum potential to touch audiences far beyond original usage. Most recently, we began mixing paint in-house to control waste while continuing to find new and unique ways to lessen our impact while executing durable, functional and incredible projects.

We also account for cost considerations about the end of a project at the beginning; allowing our clients to factor in recycling, upcycling and donations holistically. From donation of excess catering to the mulching of food waste; repurposing builds and raw materials or donating sets to charitable organizations, we have done it all to ensure great work for our clients becomes great work for communities beyond our activations’ reach! Sustainability and impact is always a built-in KPI
environmentality

AUSTIN KNIGHT JOHNSTON
FOUNDER + CEO, AKJOHNSTON GROUP
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Since day one, we have been guided by a diverse team that embraces their culture, heritage and values in every way. We create experiences that capture and are accessible to everyone - and we do that by representing a broad spectrum of persons that best mirror the values of the brands we elevate through experiences.

From the top, our diverse leaders reflect the company we keep being made up of women, persons of color and LGBTQ representation that celebrates and elevates an even more diverse team of idea makers, movers and shakers. As a whole, the snapshot of our company demographics fall within 3% of the representation of physical locations to which we are based.

We believe that inclusion is the real factor here: the acknowledgment of diversity in conjunction with equal opportunities, compensation and advancement of our persons of color, ethnicities, gender expressions and sexual identities across the board so that everyone gets a seat at the table.

We value transparency and are continually audited by the best and brightest clients that will only work with the most inclusionary vendors. While we are always listening and improving, we’re proud to be here and embrace these core principles.

Inclusion is not only our business- it’s a core value
diversity
+ inclusion

AUSTIN KNIGHT JOHNSTON
FOUNDER + CEO, AKJOHNSTON GROUP

CERTIFIED DIVERSE SUPPLIER
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akjohnston.com
GT’s “Feel the Synergy” Summer Series
design | fabrication | print | production | technology
We brought the ‘synergy’ with GT’s Living Foods this summer! By custom designing, crafting and building the iconic Synergy Stage and atmosphere for their Summer Concert, GT’s music campaign was made vivid.

Our custom mirrored stage covered the pool, creating a focal moment for performing artists and photo opportunities. The serenity florals of the outdoor lounge were filled with influencers and artists alike, all enjoying sounds from musical performances by Baltimore native, Chelsea Jordan and multi-instrumentalist recording artist and producer, NoMBe. The energy couldn’t have been higher while sipping on tried-and-true Synergy Kombucha flavors all evening long!
As visitors weaved through the event, a custom bracelet-making station was set to make friendship bracelets and vibrant photo walls were set up for all the iconic personalities floating through. We custom welded and fabricated a ‘Find Your Flavor’ booth station, which read the aura of the person as they stepped inside, giving guests a fun-filled flavor reading! From the electric music-inspired welcome moment, through the flavorful entrance tunnel, Synergy flavors were highlighted and transformed into a meaningful musical initiative for GT’s Living Foods.

Strategically placed in the Hollywood hills, 200 plus attendees enjoyed the scenic views of Downtown Los angeles while enjoying over 600 bottles Kombucha.
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akjohnston.com case studies / gt synergy
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Spotify Now Playing 2024
design | fabrication | scenic | print | tech | integration | touring Spotify tapped us to create, build and execute the annual Now Playing soiree, from custom signage like the What’s Your Sign Zodiac-themed Bar, stage and set designs, a Viewing Lounge for guests to relax to sweet tunes, a Jam Session Lounge to create custom beats, and more!
Special musical guests, including Halsey made an appearance, serenading the crowd with her hit songs.

Furthermore, visitors got to take home custom-made keepsakes to remember 2024 with a friendship bracelet making station by Ian Charms, branded Spotify tote bags and sweaters, and custom watches vinyl records, where visitors got to choose their very own design!
To top it off, Pop Up Bagels flew dough from New York City, alongside David Chang, founder of Momofuku, who partnered with 24 Carrots to curate a specialized menu for guests to enjoy throughout the event! As a treat, Erewhon provided a custom Spotify smoothie just for Now Playing 2024!
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akjohnston.com case studies / spotify now playing 2024
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Barbie Movie Premiere After Party
design | fabrication | print & graphics | production | logistics Step with us into the magic of Barbie Land!
Picture this: a sprawling 60-foot inflatable, a giant rotating Barbie "B", and a mesmerizing DJ booth featuring an exclusive performance by the iconic Mark Ronson. Our interactive photo moments invite your guests to immerse themselves in Barbie's vibrant universe, while the original Barbie pink Corvette and authentic film costumes add a touch of Hollywood glamour.

Our expert team at AKJOHNSTON handles everything seamlessly—from managing both internal and external vendors to orchestrating lighting and sound, and bringing every fabricated element and creative design to life.

We started with an exclusive pre-release viewing of the movie to ensure every detail aligned perfectly with Barbie’s world.

With over 2,500 guests, this became the largest premiere after-party in WB history! We also balanced the presence of fourteen sponsors in the space by creating holistic and additive opportunities for Xbox, American Express, Mattel, Ruggable, O-P-I and others at the after-party!
Take a look at the recap video we produced HERE!
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akjohnston.com case studies / barbie movie world premiere after party 376 CLICK HERE to Return to Agenda
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Sun Bum | Sonny’s DayDream
design | fabrication | print & graphics | production | logistics We brought three lucky artists’ drawings to life at “Sonny’s DayDream'' in Encinitas, California! Guests were able to walk through a banana yellow hallway, into a kid-friendly world of creativity and fun. From multiple interactive photo features to a miniature skate ramp, there was all kinds of fun and imagination for the entire family! Our in-house fabrication and design team built and executed SunBum’s first-ever art installation designed by the winner’s of the Kids Rule Art Contest.
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akjohnston.com case studies / sun bum sonny’s daydream
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akjohnston.com
Amazon Chainsmokers Concert
print & graphics | neon lighting | logistics
What better way to conclude VidCon than by partying with the Chainsmokers? We designed, installed, and managed eight brand activations at VidCon, and the Chainsmokers' performance was the perfect culmination of our efforts.

We installed an Amazon Prime Video neon sign we hung as the background for the Chainsmokers concert with aircraft cables 25’ high. Draping and dressing the stage to create a unified look along with a seamless backdrop for the DJ booth at 6’ tall and 40’ wide. Our contributions to stage design, fabrication, and lighting were instrumental in making the event a success. 379 CLICK HERE to Return to Agenda
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akjohnston.com
Alo House
design | fabrication | print & graphics | production | logistics We collaborated with our friends over at Sunset/Studios and helped bring the beautiful Alo House to life with custom fabricated letters, a boxing activation, and a natural wood pergola structure that housed a boho-chic lounge that helped everyone feel extra zen!
Take a look at the video recap HERE!
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akjohnston.com case studies / alo house
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Kim Crawford at BNP Paribas
mgmt | fabrication | tech
[agency credit: cogent]
We helped serve up Kim Crawford at BNP Paribas with lots of custom fabricated pieces and managed the build of elements on site. Side tables were made using clear acrylic boxes and filling them with tennis balls which popped off the white rental furniture and custom branded pillows.

A tennis ball wall was built for behind the custom built bar with a dimensional slogan taking front and center. Two photo moments were fabricated: one being a large gold swing with a tennis racket back and the other a backdrop with an oversized tennis racket for guests to pose with.

All the lanterns and chandeliers were also fabricated and color matched to Kim Crawford gold. An LED screen provided guests with a live feed of the tournament.
akjohnston.com
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akjohnston.com case studies / kim crawford at BNP
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YSL Beauty Station Pop Up
production | fabrication | print | tech | i&d
[agency credit: partipris & hk corp]
What had begun as a simple stunt of an extension of the YSL Beauty Hotel during weekend one of Coachella, quickly grew to include an 80’ pop-up store, impressive and immersive set dressing, a half-acre balloon field, billboard and a 25’ high neon lipstick monolith - all for the Insta! With only three weeks to build, we quickly scaled our involvement to fabricate fixtures, props, signage and large format fabrications that needed to withstand 130MPH wind, 120-degree temperatures and even rain. The result was incredible, sparking international press and exposure for the four days of our activation. Not only did YSL capture incredible photo and video campaign media, but the station then opened to the public and quickly thereafter became a viral sensation.

Our pop-up store was a hit: hosting beauty stations, custom engraved cosmetics, a bar and even a YSL Beauty vending machine for guests to enjoy. With 15,000 guests and 350-million social media impressions, no one could have predicted that this would be the most successful pop-up store in YSL’s history with higher sales by period and sales per square foot over the course of the long weekend!
Take a look at the recap video HERE!
akjohnston.com
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With the launch of a newly renovated courtyard, Segerstrom Center for the Arts looked to us to create a high-end evening welcoming guests to the space in a casually chic, yet elevated setting. The alfresco evening consisted of wooden farmhouse table and clean white dining chairs. On top was a simply curated table setting and a large floral arrangement made solely of pink hued roses. The integration of marble and wood in the lounge vignettes and bars created a high-end, but still intimate environment.

Argyros Plaza Dedication
design | mgmt | fabrication
akjohnston.com
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case studies / segerstrom center for the arts - argyros plaza dedication akjohnston.com 388 CLICK HERE to Return to Agenda
thank you!
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City of La Quinta
CITY COUNCIL MEETING: June 17, 2025

STAFF REPORT
AGENDA TITLE: RECEIVE AND FILE ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR YEAR ENDED JUNE 30, 2024

RECOMMENDATION
Receive and file the Annual Comprehensive Financial Report for the year ended June 30, 2024.

EXECUTIVE SUMMARY
 California cities must obtain an annual audit of their financial statements by an independent auditor at the close of each fiscal year.
 The annual audit produces the Annual Comprehensive Financial Report (ACFR) (Exhibit A), which was issued on May 15, 2025.
 The independent auditors rendered an unmodified (“clean”) opinion, which is the most favorable conclusion.
 The ACFR was presented to the Financial Advisory Commission (FAC) on June 4, 2025.

FISCAL IMPACT - None

BACKGROUND/ANALYSIS
At the end of each fiscal year, the City’s financial records are audited by an independent audit firm pursuant to California law. The results (including City background information, statistical data, and detailed financial reports) are compiled and presented in the ACFR.

In the independent auditors’ report (located at the front of the financial section of the ACFR), Lance, Soll & Lunghard LLP (LSL) issued an unmodified opinion on the City’s financial statements for the year ended June 30, 2024, which is the most favorable conclusion. The independent audit involved examining evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and estimates made by management, and evaluating the overall financial statement presentation.

BUSINESS SESSION ITEM NO. 5
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Attachment 1, provides a summary of the ACFR which is in Exhibit A. Attachment 2, provides a summary of Unrestricted Funds.

The City’s ACFR can be found in the Finance section on the City’s website. While the City’s financial statements were presented fairly in all material respects, a significant deficiency/noncompliance was identified due to the delayed submission of the City’s Single Audit report, which resulted from delays in the prior year’s audit completion. The City acknowledges the importance of timely submission and has implemented an accelerated timeline for completing future reports, along with improved coordination efforts with the external audit team. As in previous years, the ACFR will be submitted to the Government Finance Officers Association (GFOA) award program for excellence in financial reporting.

A Single Audit for fiscal year 2023/24 – a separate audit requirement under Federal law for entities that spend $750,000 or more in federal funds during a fiscal year, was issued on May 17, 2025.

ALTERNATIVES
The ACFR and audit are required by State law, therefore, no alternatives are recommended.

Prepared by: Claudia Martinez, Finance Director/City Treasurer Approved by: Jon McMillen, City Manager
Attachments: 1. 2023/24 Annual Comprehensive Financial Report Summary

2. 2023/24 Unrestricted Funds Summary

3. 2023/24 Annual Comprehensive Financial Report
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Fiscal Year 2023/24
Annual Comprehensive Financial Report (ACFR)
Summary
Summary of ACFR Contents
The fiscal year (FY) 2023/24 Annual Comprehensive Financial Report (ACFR) (Exhibit A) contains numerous comprehensive financial reports pertaining to all aspects of the City’s finances and includes financial statements for all City funds (general, special revenue, housing, capital project, internal service, and other fund types). The ACFR also contains information regarding the City’s accounting methods and procedures, and the results of the independent audit. Financial information is conveyed both by major fund type and in a comprehensive manner; thus, the information is somewhat complex to interpret. Because of this, specific detailed information regarding the General Fund year-end budget results for FY 2023/24 was presented separately at the February 18, 2025, Council meeting.

The Management Discussion and Analysis section provides an overview and analysis of the financial statements, which is useful when reading through the ACFR. In addition, the Notes to the Basic Financial Statements provide a written explanation of accounting methods and year-over-year changes.

The Statistical Section presents a ten-year comparison of City financial, economic, and demographic trends.

Responsibility for both the accuracy and the completeness of all disclosures rests with the City of La Quinta. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to fairly present the financial position and results of City operations.

The ACFR was prepared in conformance with Generally Accepted Accounting Principles (GAAP). The City’s financial reporting is based upon all Governmental Accounting Standards Board (GASB) pronouncements; these pronouncements are the most authoritative source of governmental GAAP.

LSL, LLP, has issued an unmodified (“clean”) opinion on the City’s financial statements for the year ended June 30, 2024, which is the most favorable conclusion. While the City’s financial statements were presented fairly in all material respects, a significant deficiency/noncompliance was identified due to the delayed submission of the City’s Single Audit report, which resulted from delays in the prior year’s audit completion. The City acknowledges the importance of timely submission and has implemented an accelerated timeline for completing future reports, along with improved coordination efforts with the external audit team.

We believe that the ACFR meets the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting Program requirements and have submitted it to determine eligibility for another certificate. The City has previously received this prestigious award for the past twenty-seven years.

ATTACHMENT 1
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Significant Changes and Financial Highlights
Governmental Revenues and Expenses
Governmental Activities include thirty-one (31) individual governmental funds. There are four (4) major governmental funds: the General Fund, one Capital Improvement capital project fund, one Housing Authority special revenue fund, and one Disaster Recovery special revenue fund. Data from the other twenty-seven (27) governmental funds are combined into a single, aggregate presentation.

Key Highlights:
 General Fund overall fund balance increased by approximately $23.8 million when compared to the ending balance in FY 2022/23. This was mostly attributed to revenue exceeding budget projections, coupled with expenditure savings.  General Fund Reserves are 100% funded to established target amounts for FY 2023/24 representing a combined balance of $45 million.
 At the end of FY 2023/24, the City had positive balances in all three categories of Net Position (Net Investment in Capital Assets, Restricted, and Unrestricted) for the governmental and business-type activities.
 Governmental revenues increased over the prior fiscal year with the major categories being use of money and property, capital grants and contributions, and property taxes, offset by decreases in charges for services and other taxes.  A majority of General Fund revenues experienced positive variances when compared to the final budget.
 Actual expenses were $42.7 million lower than the final budget, of which $900,000 was carried over into FY 2024/25 for continuing appropriations related to operations. Funds not being carried over are recognized as Unassigned Fund Balance in the General Fund. Capital Improvement Projects (CIP) revenue commitments totaling $21.7 million are reflected in Assigned reserves and operational carryovers are noted in Committed reserves.

Governmental Fund Balances
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances. Such information is useful in assessing the City's financing requirements.

In particular, Unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. The Unassigned General Fund balance comprised $65,216,616, or 31%, of the total $209,785,707 balance and included savings from total final FY 2023/24 General Fund budgeted expenditures including transfers and multi-year capital project carryovers.

As of the end of FY 2023/24, the City's total governmental funds reported combined ending fund balances of $269,901,894 and General Fund balances of $209,785,707 as follows:
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2023/24 Governmental Fund Balances
When compared to FY 2022/23, total governmental fund balance increased by $30,081,926 and total General Fund balance increased by $23,808,199.
2022/23 Governmental Fund Balances
General Fund Balances
A year-over-year decrease of $2,432,000 in Nonspendable is mainly attributed to the FY 2023/24 Redevelopment Agency (RDA) loan repayment of $2,750,000 offset by interest earnings of $273,000 resulting in a net decrease of $2,477,000 in Due from Other Governments. The outstanding loan balance to the RDA of $21,405,000 is recognized as 80% in the General Fund and 20% in the Housing Authority Fund. Additional information on the loan repayment can be found in Note 17 of the financial statements.

Restricted reserves are limited to funds held in a Section 115 Pension Trust, set aside to fund the City’s pension obligations. The trust was initially established in FY 2018/19 with a deposit of $6,540,000, followed by an additional $3,460,000 in FY 2019/20. In FY 2022/23, a one-time discretionary payment of $5,000,000 was made to CalPERS to reduce the City’s unfunded pension liabilities, utilizing funds from the trust. The increase in FY 2023/24 was primarily driven by interest earnings within the trust. All Other Funds fund balance increased by $2,308,000 and represents totals for the Housing Fund and other Restricted funds.

Committed reserves decreased by approximately $1,700,000, primarily due to a reduction in operational carryovers. In the prior year, $2,600,000 was carried over to support ongoing operations, whereas only $900,000 was required in the current year. The lower carryover amount reflects that additional operational support was not needed this year, indicating improved budget alignment and operational efficiency.

Category General Fund Percent All Other Funds Percent Total Funds Percent Nonspendable 22,698,006 $ 11% $ 0.001% 22,698,506 500 $ 8% Restricted 5,666,575 3% 64,214,488 107% 69,881,063 26%
Committed 45,900,000 22% - 0% 45,900,000 17%
Assigned 70,304,510 34% - 0% 70,304,510 26%
Unassigned 65,216,616 31% (4,098,801) -7% 61,117,815 23% TOTAL 209,785,707 $ 100% 60,116,187 $ 100% 269,901,894 $ 100% Category General Fund Percent All Other Funds Percent Total Funds Percent Nonspendable 25,130,438 $ 14% $ 0.001% 25,130,906 468 $ 10% Restricted 5,317,487 3% 61,906,132 115% 67,223,619 28%
Committed 47,600,009 26% - 0% 47,600,009 20%
Assigned 63,824,533 34% - 0% 63,824,533 27%
Unassigned 44,105,041 24% (8,064,140) -15% 36,040,901 15% TOTAL 185,977,508 $ 100% 53,842,460 $ 100% 239,819,968 $ 100% 395 CLICK HERE to Return to Agenda
An increase of $6,480,000 in assigned reserves was due to Measure G sales tax reserve of $3,771,000 and $3,666,000 in the fire services trust.

Outstanding Debt
Total governmental activities debt decreased by $143,725 from $1,703,426 to $1,559,701. This decrease is attributed to a reduction of $213,365 in subscription IT liabilities offset by an increase of $38,684 in leases and $31,507 in compensated absences. Additional information on long-term debt can be found in Note 5 of the financial statements.

Defined Benefit Pension Plan and Section 115 Trust
As of June 30, 2024, the City reported a liability of $2,699,409 for its proportionate share of the collective net pension liability. The net pension liability was measured as of June 30, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2022. Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports and additional information on the City’s pension plan can be found in Note 9.

As of June 30, 2024, the Section 115 Pension Trust had a balance of $5,666,575, additional information can be found in Note 12. The trust sets aside monies to fund the City’s pension obligations.

Contributions to the trust are irrevocable and assets are protected from creditors. The purpose of the trust is to address the City’s pension obligations by accumulating assets to reduce the net pension liability. However, assets in the trust are recorded as restricted fund balance until they are transferred to the pension plan (CalPERS).

Other Post-Employment Benefit Plan (OPEB)
In contrast to the Net Pension Liability, the OPEB Trust established to fund retiree health benefits, had a balance of $1,856,315 which decreases the OPEB liability of $1,522,159 and is reported as an asset balance of $334,156. Additional information on OPEB can be found in Note 11 of the financial statements.

Major Capital Improvements
The Capital Improvement Fund is primarily used to record the expenditures for capital projects. The fund had forty-seven (47) active Capital Improvement Projects during FY 2023/24. The five most active projects were:
 Dune Palms Bridge Improvements ($11,475,000)
 Avenue 50 Pavement Rehabilitation ($2,605,000)
 Fred Waring Drive Pavement Rehabilitation ($2,444,000)  Citywide Pavement Management Plan ($1,830,000)
 Citywide Landscape Renovation Improvements ($1,290,000) Debt Type: 2023 2024
Leases $ 53,111 $ 91,795
Financed Purchases 551 - Compensated Absences 1,154,090 1,185,597 Subscription IT liabilities 495,674 282,309
TOTAL 1,703,426 $ $ 1,559,701
Governmental Activities
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These projects, along with others, leveraged State or Federal grant funds or were significantly supported with Measure G sales tax revenues.

Long-term Financial Sustainability
The City ensures that its long-range goals are met through a variety of Boards and Commissions. Each is comprised of Council-appointed residents, may include a City Council representative, and are supported by City staff. In addition, the City has adopted various financial policies and practices with the goal of sustaining a fiscally resilient government over the long-term, as well as increasing transparency and encouraging public engagement.

The City has taken a proactive approach to rising pension and public safety costs by building its reserve categories and paying down the City’s pension obligations. The City also continues to collaborate with Riverside County and other regional cities on police services to identify long-term savings. As of June 30, 2024, all four of the City’s reserve categories (Cash Flow Reserve, Natural Disaster, Economic Disaster, and Capital Replacement) are fully funded to policy targets.

The City Council has a history of implementing strategic measures to ensure the long-term fiscal sustainability of the City. These measures include adopting a structurally balanced budget, funding long-term needs, and maintaining robust reserve levels. As a result, the City has been able to maintain essential services despite economic fluctuations and is well-prepared to face future financial challenges.
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ATTACHMENT 2
ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR 2023/24 –

UNRESTRICTED FUNDS SUMMARY
The Annual Comprehensive Financial Report (ACFR) is a set of financial statements for a state, municipality or other governmental entity that comply with the accounting requirements established by the Governmental Accounting Standards Board (GASB).

GASB is a private non-governmental organization, an arm of the Financial Accounting Foundation, that creates accounting reporting standards, or generally accepted accounting principles (GAAP), for state and local governments in the United States, i.e.

GASB sets the standards governing the content of an ACFR.

The ACFR must be audited by an independent auditor using generally accepted government auditing standards.

GASB Concepts Statement No. 34 requires the net assets of a government to be reported in three (3) categories: 1) invested in capital assets net of related debt, 2) restricted, and 3) unrestricted.

As shown in the chart below, the City’s Net Position (total assets and deferred outflows) is stated on page 5 of the Management Discussion and Analysis or MD&A of the fiscal year (FY) 2023/24 ACFR for La Quinta, and further described in detail on page 9.

Per ACFR reporting guidelines, in particular GASB No. 34, the three (3) categories of a government’s net assets are defined as follows:

Capital Assets category reflects investments in capital assets (e.g., land, buildings; machinery, equipment), net of related debt, which the City uses to provide services to citizens; consequently, these assets are not available for future spending.

City capital assets totaling $592,061,273 or 65% of the city’s total $905,004,075 Net Position (total assets and deferred outflows) include:
 129 miles of streets and 121 miles of sidewalks
 18 parks with amenities that include swimming pools, pickleball and tennis courts; X Park; soccer fields and softball/baseball diamonds; dog parks; playground equipment; and more.
 22 city-owned buildings
Capital Assets $ 592,061,273
Restricted $ 70,215,219
Unrestricted $ 242,727,583
TOTAL NET POSITION 905,004,075 $
Net Position Summary
FY 2023/24
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 83.6 miles of bike paths
 4,800-plus street signs
 51 traffic light signals, 111 public safety cameras
 582 catch basins
Restricted category is comprised of funds earmarked for a specific purpose; these restrictions are imposed on the City by an outside agency.

Unrestricted category is defined as funds that can be used to meet ongoing obligations because they are not restricted by an outside agency. It is important to note, however, that under GASB reporting requirements for the ACFR, fund restrictions established by the City’s own policies are not reflected. As a result, some funds categorized as unrestricted for reporting purposes may still be subject to internal limitations.

For purposes of ACFR reporting, the City’s unrestricted net position is comprised of funds committed or assigned for certain reserves or projects, including assets that are in nonspendable form per the agency’s established policies and procedures. For La Quinta some of the major restrictions to Unrestricted funds, as reported by FY 2023/24 ACFR are summarized below:
 Non-Spendable: Land Held for Resale $5,403,652
 Non-Spendable: Due from Successor Agency $17,123,777
(Payable in annual installments through FY 2029/30 from the Successor Agency’s Redevelopment Property Tax Trust Fund (RPTTF) enforceable obligations)  Restricted for Pension Trust (Section 115 Trust) $5,666,575  Reserves – Committed $45,000,000
 Reserves – Assigned $70,304,510
 Internal Service Funds $26,98,115
(Equipment Replacement, Information Technology, Park Equipment and Facilities, and Insurance)
Unassigned Fund Balance
The Unassigned Fund Balance at approximately $61.1 million, as reported by the City’s FY 2023/24 ACFR, are funds that have not been assigned to other Special Revenue Funds and that have not been restricted, committed, or assigned to specific purposes within the General Fund.

The full detail of the $242,727,583 Unrestricted net cash position, as reported in the City’s FY 2023/24 ACFR, is provided in the table below and demonstrates that the City does not have $242.7 million available to meet ongoing obligations due to internal restrictions and obligations:
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The City and City Council have an obligation to La Quinta’s residents/taxpayers to spend/allocate funds responsibly – staying within budget to cover all cost obligations/expenditures to keep the City safe and to maintain City facilities, roads, sidewalks, and parks.

The City Council and Staff continue to exercise fiscal prudence in the stewardship of taxpayers’ dollars. Each year during the budget process, surplus funds are allocated to reserve accounts—some designated for specific purposes and others maintained as unassigned reserves. These funds are available to address emergencies, such as earthquakes, natural disasters, pandemics, or economic recessions, and to help offset rising costs associated with inflation, ensuring the City’s financial stability and operational continuity.

It is vital for the City and for local governments to maintain adequate levels of fund balance to mitigate current and future risks such as revenue shortfalls and unanticipated expenditures. The City's fiscally conservative approach in prior years enabled us to successfully navigate extraordinary events such as the Great Recession of 2008, the global pandemic, and other cyclical economic shifts impacting our community. Both City staff and elected officials recognize their fiduciary responsibility to safeguard public resources and maintain the trust of our residents. This document reflects our continued commitment to prudent financial management and transparency.

Governmental Activities- Unrestricted Net Position
Nonspendable
Prepaid Costs 171,077
Land held for resale 5,403,652
Due from Successor Agency 17,123,777
Restricted for
Section 115 Trust 5,666,575
Committed to
Natural Disaster Reserve 15,000,000
Economic Downturn Reserve 13,000,000
Cash Flow Reserve 5,000,000
Capital Replacement Reserve 12,000,000
Carryovers 900,000
Assigned for
Public Safety 15,652,616
Sales Tax Reserve 32,985,374
Capital Projects 21,666,520
Unassigned 61,117,815
Internal Service Funds- Unrestricted 26,987,115
Unavailable Revenues: Housing Authority & Non-Major Special Revenue Funds 8,687,467 SUB-TOTAL $ 241,361,988
Business-Type Activities: Unrestricted Net Position (SilverRock) 1,365,595 UNRESTRICTED GRAND TOTAL $ 242,727,583
FY 2023/24 ACFR
Unrestricted Net Position Summary
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NET POSITION (UNRESTRICTED) CATEGORY DEFINITIONS
As stated in Governmental Accounting Standards Board (GASB) Summary of Statement No. 34 – Basic Financial Statements- and Management’s Discussion and Analysis (MD&A) for state and local governments, the definitions provided give a brief description on the categories that make up the unrestricted net position in both governmental activities and business-type activities.

Governmental Activities
Non-spendable includes amounts that cannot be spent on operating expenditures because they are either not in spendable form or are legally or contractually required to be maintained intact. This may include prepaid items, land held for resale, and amounts due from the Successor Agency to pay estimated installment payments of enforceable obligations until obligations of the Former Agency are paid in full and assets have been liquidated.

Restricted includes amounts that are externally imposed by creditors, grantors, contributions, laws and regulations of other governments, or imposed by law. The Section 115 Trust is irrevocably dedicated to funding obligations of the City’s pension beneficiaries, other post-employment beneficiaries or costs of administering the Trust.

Committed includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of City’s highest authority, the City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is by a resolution. This includes the City’s four (4) defined reserve categories and carryovers for General Fund operational expenditures.

Assigned includes amounts that are constrained by the City’s intent to be used for specific purposes, but are neither restricted nor committed. City Council is authorized to assign amounts to a specific purpose pursuant to the policy-making powers granted through a resolution. This includes Public Safety which represents property tax accumulated and held in trust by the County of Riverside for fire protection, accumulated resources related to the City’s sales tax Measure G, and capital projects which is comprised of carryover balances for capital projects.

Unassigned includes the residual amounts that have not been restricted, committed, or assigned to specific purposes. The General Fund is the only fund that reports a positive unassigned fund balance. The unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

Internal Service Funds are used to allocate costs among the City’s various functions.

The City has four (4) internal service funds: Equipment Replacement, Information Technology, Park Equipment and Facilities, and Insurance.

Unavailable Revenues represents when an asset is recorded but the revenue is not yet available, such as a deferred inflow. These deferred resources are reported as 401 CLICK HERE to Return to Agenda
unavailable until such time as the revenue becomes available. The unrestricted net position is the remaining portion of net position that is not externally restricted.

Business-Type Activities represents the City’s enterprise fund to account for the SilverRock Golf Course operations, which is considered a major fund. 402 CLICK HERE to Return to Agenda
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2024
Prepared by: Finance Department
California
ATTACHMENT 3
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CITY OF LA QUINTA, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Prepared by:

Finance Department
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CITY OF LA QUINTA, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents
Page
Number

INTRODUCTORY SECTION
Letter of Transmittal ............................................................................................................................................i Principal Officials ............................................................................................................................................... vi Organizational Chart of City Departments ........................................................................................................ vii Certificate of Achievement for Excellence in Financial Reporting .................................................................... viii

FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT ........................................................................................................... 1 MANAGEMENT’S DISCUSSION AND ANALYSIS .......................................................................................... 5

BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:

Statement of Net Position ................................................................................................................... 17 Statement of Activities ......................................................................................................................... 18 Fund Financial Statements:

Balance Sheet - Governmental Funds ................................................................................................ 20 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ......................................................................................................... 23 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ......................................................................................................... 24 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the
Statement of Activities ......................................................................................................................... 26 Statement of Net Position - Proprietary Fund ..................................................................................... 27 Statement of Revenues, Expenses and Changes in Net
Position - Proprietary Fund ................................................................................................................. 28 Statement of Cash Flows - Proprietary Fund ...................................................................................... 29 Statement of Net Position - Fiduciary Funds ...................................................................................... 31 Statement of Changes in Net Position – Fiduciary Funds .................................................................. 32 Notes to Financial Statements ................................................................................................................. 33 406 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents
Page
Number

REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedules
General Fund ..................................................................................................................................... 69 Housing Authority .............................................................................................................................. 70 Disaster Recovery ............................................................................................................................ 71 Schedule of Proportionate Share of the Net Pension Liability – Miscellaneous Plan .............................. 72 Schedule of Plan Contributions – Miscellaneous Plan ............................................................................ 73 Schedule of OPEB Contributions ............................................................................................................. 73 Schedule of Changes in Net OPEB Liability/(Asset) and Related Ratios ................................................ 74 Notes to Required Supplementary Information ........................................................................................ 76

COMBINING AND INDIVIDUAL FUND SCHEDULES
Combining Balance Sheet - Nonmajor Governmental Funds ............................................................. 80 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds ........................................................................... 87 Budgetary Comparison Schedules - Special Revenue Funds:

State Gas Tax ............................................................................................................................... 94 Library and Museum ....................................................................................................................... 95 Federal Assistance ........................................................................................................................ 96 State Law Enforcement Services ................................................................................................... 97 Lighting and Landscaping .............................................................................................................. 98 Quimby ........................................................................................................................................... 99 La Quinta Public Safety Officer .................................................................................................... 100 Art in Public Places ...................................................................................................................... 101 South Coast Air Quality ................................................................................................................ 102 AB 939 .......................................................................................................................................... 103 Law Enforcement ......................................................................................................................... 104 Measure A .................................................................................................................................... 105 Economic Development ............................................................................................................... 106 AB 1379 ........................................................................................................................................ 107 407 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents
Page
Number
Budgetary Comparison Schedules - Capital Projects:

Capital Improvements ................................................................................................................ 108 Maintenance Facilities DIF ......................................................................................................... 109 Infrastructure ............................................................................................................................. 110 Civic Center ................................................................................................................................ 111 Transportation ............................................................................................................................ 112 Parks and Recreation ................................................................................................................. 113 Library Development .................................................................................................................. 114 Community Center .................................................................................................................... 115 Street Facility ............................................................................................................................. 116 Park Facility ............................................................................................................................... 117 Fire Facility ................................................................................................................................. 118 Budgetary Comparison Schedules – Debt Service Funds:

Financing Authority ..................................................................................................................... 119 Internal Service Funds:

Combining Statement of Net Position ............................................................................................ 122 Combining Statement of Revenues, Expenses and
Changes in Fund Net Position ........................................................................................................ 123 Combining Statement of Cash Flows .............................................................................................. 124

STATISTICAL SECTION
Net Position by Component ...................................................................................................................... 128 Changes in Net Position ........................................................................................................................... 130 Changes in Net Position – Governmental Activities ................................................................................. 134 Changes in Net Position – Business-type Activities ................................................................................. 136 Fund Balances of Governmental Funds ................................................................................................... 138 Changes in Fund Balances of Governmental Funds ................................................................................ 140 Tax Revenue by Source ........................................................................................................................... 142 Top 25 Bradley-Burns Sales Tax Producers ............................................................................................ 143 Top 25 Measure G Sales Tax Producers ................................................................................................. 145 Taxable Sales by Category ....................................................................................................................... 146 408 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents
Page
Number
Assessed Value of Taxable Property ......................................................................................................... 148 Direct and Overlapping Property Tax Rates ............................................................................................... 149 Principal Property Taxpayers ...................................................................................................................... 150 Property Tax Levies and Collections .......................................................................................................... 151 Ratios of Outstanding Debt by Type ........................................................................................................... 152 Ratio of General Bonded Debt Outstanding ............................................................................................... 154 Direct and Overlapping Debt ...................................................................................................................... 155 Legal Debt Margin Information ................................................................................................................... 156 Pledged-Revenue Coverage ...................................................................................................................... 158 Demographic and Economic Statistics ....................................................................................................... 159 Principal Employers .................................................................................................................................... 160 Full-time City Employees by Function ........................................................................................................ 161 Operating Indicators by Function ................................................................................................................ 162 Capital Assets Statistics by Function .......................................................................................................... 163 Schedule of Insurance in Force .................................................................................................................. 164 409 CLICK HERE to Return to Agenda
 
May 15, 2025
To the Citizens of La Quinta, and the Honorable Mayor and Members of the City Council:

It is with great pleasure that we present to you the Annual Comprehensive Financial Report (ACFR) of the City of La Quinta for the fiscal year ending June 30, 2024. The ACFR has been prepared by the Finance Department for the benefit of City Council members, citizens, investors, grantors, employees, and others who may have an interest in the financial well-being of the City.

The ACFR presents information regarding the City’s financial activities. This transmittal letter provides a non-technical summary of the City’s finances, services, achievements, and economic outlook. A more detailed analysis is presented in the Management’s Discussion and Analysis section (MD&A) that immediately follows the independent auditor’s report. The MD&A provides an overview and analysis of the basic financial statements and complements this transmittal.

Responsibility for both the accuracy and the completeness of all disclosures rests with the City of La Quinta. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to fairly present the financial position and results of City operations. Supplementary disclosures are included to summarize the City’s financial activities.

This ACFR was prepared in conformance with Generally Accepted Accounting Principles (GAAP). The City’s financial reporting is based upon all Governmental Accounting Standards Board (GASB) Statements; these pronouncements are the most authoritative source for governmental GAAP. The City is responsible for ensuring an adequate internal control structure is in place. The internal control structure is subject to constant evaluation by the management of the City and annual review by independent auditors. Reviews determine the adequacy of the internal control structure, as well as to determine if the City complied with applicable laws and regulations. In reviewing internal control structures, the cost of a control should not exceed the benefits to be derived, hence the objective is to provide reasonable, rather than absolute assurance, that the financial statements are free of any material misstatements.

LSL, LLP (LSL), has issued an unmodified opinion on the City’s financial statements for the year ended June 30, 2024. This is the most favorable conclusion. The independent auditor’s report is located at the front of the financial section. The independent audit involved examining evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and estimates made by management, and evaluating the overall financial statement presentation and conformity with GAAP.
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Government Profile
The City of La Quinta is located 120 miles east of Los Angeles in the eastern portion of Riverside County known as the Coachella Valley. The City has a permanent population of approximately 38,000, within a boundary of 36 square miles. Each year nearly 18,000 seasonal residents also call La Quinta home from October through May. A natural paradise in the Coachella Valley, the City is nestled between the Santa Rosa and San Bernardino Mountains, is an integral part of the Coachella Valley’s world-renowned resort and retirement area, and is known for its championship golf, festivals and community events, health and wellness, stunning views and spectacular trails.

The City was incorporated in 1982 as a general law City and became a charter city in November 1996.

It is governed by a five-member City Council under the Council/Manager form of government. The Mayor is directly elected, serves a two-year term, and represents the City at many public functions; the four Council Members serve four-year terms, with two Council Members elected every two years. The Mayor and Council Members are elected at large and also serve as the Board of Directors of the Housing and Finance Authorities.

The Council appoints the City Manager, who in turn appoints the Directors of the various departments except for the City Attorney who is appointed by the Council. The Finance Director also serves as the City/Housing Authority Treasurer and the City Manager is also the Executive Director of the Housing Authority.

The City provides a range of services, which include street and infrastructure construction and maintenance; community development and planning; affordable housing programs; code compliance; recreational and cultural activities; and operations management.

The City contracts with other government agencies and private entities for specific services, including police and fire protection, library and museum services, water and sewer service, electricity service, public transit, refuse collection, and street sweeping.

The City’s annual operating and capital improvement budgets are adopted by resolutions for the fiscal year that begins July 1st. Separate resolutions are adopted by the City Council and Board of Directors of the Housing and Finance Authorities.

The annual budget is the foundation for the City’s financial planning and control. The budget is prepared by fund, function, department, and line item. Activities of the General, Special Revenue, Debt Service, and Capital Project Funds are included in the appropriated budget.

Department Directors may transfer line-item resources within a division with the approval of the City Manager. The City Manager may authorize transfers between divisions and departments. ii
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Local Economy
According to the State of California Employment Development Department, as of October 2024, the unadjusted unemployment rate for La Quinta was 6.7%, which was higher than unadjusted rates for Riverside County’s at 5.6% and the statewide average of 5.3%. Current unemployment rates are impacted by statewide trends showing that California’s overall job growth has slowed, particularly in sectors such as Professional and Business Services and segments of the government workforce.

The City’s dominant industries are tourism, recreation, and retail, with the following being major employers: Desert Sands Unified School District, PGA West and Citrus Club, La Quinta Resort and Club, Costco, and Wal-Mart Super Center.

Throughout the year La Quinta hosts a variety of multi-generational open-air events and shines in the national spotlight as the only PGA golf tour event in the region with the American Express Golf Tournament, which includes two nights of outdoor concerts. The City also hosts Ironman 70.3 in La Quinta, which brings over 3,000 athletes and supporters from all over the world to the Coachella Valley. The City’s cultural diversity, values, unique characteristics and attributes are commemorated through artists who showcase their high-quality artwork at the fine art event, La Quinta Art Celebration, which is now held twice a year and is ranked number one in the United States by ArtFair Sourcebook’s Top 100 Fine Art Events.

Substantially or entirely completed projects during 2023/24 included Dunkin’ Donuts, Five Below, PGA Superstore, Ms. Boba, Luna Grill, and Handel’s Ice Cream along the Highway 111 corridor and El Toro Loco on Calle Tampico.

Long-term Financial Planning
Sound financial governance and prudent planning continues to be management’s focus. The City has a long history of providing superior service, life enrichment opportunities, and a quality environment to its residents, businesses, and visitors. La Quinta has taken a proactive approach to rising pension and public safety costs by building its reserve categories and paying down the City’s pension obligations. The City also continues to collaborate with Riverside County Sheriff's Department on police services to identify long-term savings.

The City ensures that its long-range goals are met through a variety of Boards and Commissions. Each is comprised of Council-appointed residents, may include a City Council representative, and are supported by City staff. In addition, the City has adopted various financial policies and practices with the goal of sustaining a fiscally resilient government over the long-term, assuring fiscal sustainability, as well as increasing transparency and encouraging public engagement. iii
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In 2023/24, the General Fund’s overall fund balance increased by about $23.8 million when compared to the ending balance in 2022/23, mainly due to revenue increases surpassing budget projections and prudent spending controls. As of June 30, 2024, all four of the City’s reserve categories (Cash Flow Reserve, Natural Disaster, Economic Disaster, and Capital Replacement) are fully funded to policy targets.

In June 2024, the City Council adopted a balanced budget for fiscal year 2024/25, which strategically allocated Measure G reserves to support capital improvement projects. As a result of this allocation, the adopted budget projected operating revenues exceeding expenses by $3,382,635. The 2024/25 budget also maintains sustained funding for essential services, including police, fire protection, and the maintenance of critical infrastructure.

La Quinta has cultivated a sound foundation of General Fund revenues including sales tax, transient occupancy tax, and property tax. The City was incorporated in 1982 after Proposition 13 was approved (the landmark property tax reform initiative enacted in 1978); as such, the City receives a smaller share of property tax revenue but has also secured additional property tax revenue from the County for fire and library services.

The Future
The City has a mixture of housing and commercial developments under construction. Larger residential developments underway include Jefferson Street Apartments, Village Hospitality Homes, Diamante by Crestwood Communities, Stone Creek, and Palo Verde. Commercial developments include the Dune Palms mixed-use project featuring Chick-fil-A and Quick Quack Car Wash, the Hampton Inn hotel, the Calle Estado mixed-use project, McQuaid Studio, and the expansion of Tower Market. Approved housing developments on the horizon include Flora at Jefferson Square, La Quinta Village Apartments, Sierra Blanca, Club at Coral Mountain, Travertine, and Bravo Estates.

The Highway 111 Corridor Plan (Plan) continues to be a priority with daily traffic exceeding 40,000 vehicles, and accounting for nearly 80% of the City’s annual sales tax revenue. The two-mile-long, 400-acre regional commercial hub at the center of the City, is being evaluated to create a more connected and walkable environment through the implementation of form-based code (FBC). FBC is anticipated to reshape the corridor by adding mixed-use and infill development and incorporating ever-evolving shopping trends. The City acquired vacant property on the north side of Highway 111, which is anticipated to be developed as a mixed-use project with commercial and residential components furthering the City’s goals of fostering mixed-use development, affordable housing, multi-modal transportation, and the development of the Highway 111 corridor. iv
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Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its ACFR for the fiscal year ended June 30, 2023. This was the twenty-seventh consecutive year that the City received this prestigious award. In order to be awarded a Certificate of Achievement, the City must publish an easily readable and efficiently organized ACFR. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for one year. We believe that our current ACFR continues to meet the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate.

We would like to express our appreciation to the City Council and the Financial Advisory Commission for their ongoing oversight of the financial affairs of the City and their prudent fiscal, economic, and land use policy and direction. We also thank City staff with special appreciation to the Finance Department for their continued effort to provide accurate financial data and the preparation of this report.

Respectfully Submitted,
Jon McMillen, City Manager Claudia Martinez, Finance Director v
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City of La Quinta
List of Principal Officers
June 30, 2024

CITY COUNCIL
Linda Evans, Mayor
John Peña, Mayor Pro Tem
Kathleen Fitzpatrick, Council Member
Deborah McGarrey Council Member
Steve Sanchez, Council Member

ADMINISTRATION
Jon McMillen, City Manager
Claudia Martinez, Finance Director/ City Treasurer
Danny Castro, Design and Development Director
Bryan McKinney, Public Works Director/ City Engineer
Gilbert Villalpando, Business Unit/Housing Development Director Monika Radeva, City Clerk
William H. Ihrke, City Attorney
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viii
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LSLCPAS.COM
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
City of La Quinta, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of La Quinta, California (the “City”), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
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To the Honorable Mayor and Members of the City Council
City of La Quinta, California
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, and required pension and other postemployment benefits schedules, as listed on the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 419 CLICK HERE to Return to Agenda
To the Honorable Mayor and Members of the City Council
City of La Quinta, California
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual fund financial statements and schedules (“supplementary information”) are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 15, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Irvine, California
May 15, 2025
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MANAGEMENT DISCUSSION

AND ANALYSIS
(UNAUDITED)
This narrative provides an overview and analysis of the City of La Quinta’s (City) financial activities for the fiscal year ending June 30, 2024. The City Executive Team encourages readers to consider this information in conjunction with the data provided in our transmittal letter, which is in an earlier section of this report. All amounts, unless otherwise indicated, are rounded to the nearest thousand dollars and dates are represented by fiscal year. 422 CLICK HERE to Return to Agenda

HIGHLIGHTS
At the close of 2023/24 (June 30, 2024):
 The total assets and deferred outflows of the City exceeded its total liabilities and deferred inflows at the close of the fiscal year 2023/24 by $905,004,000 (net position). Of this amount, $242,728,000 (unrestricted net position) may be used to meet ongoing obligations and approximately $592,061,000 or 65% was invested in capital assets and is not available to meet ongoing obligations.  Governmental activities total net position increased by $45,586,000 and the Business-Type total net position increased by $820,000 which is attributable to the SilverRock Golf Course.
 Governmental funds (General Fund, Housing Authority, Disaster Recovery Fund, Capital Improvement Fund, sixteen (16) non-major special revenue funds, ten (10) non-major capital projects funds, and one (1) non-major debt service fund) had a combined ending fund balance of $269,902,000, an increase of $30,082,000. The primary reasons for this increase can be attributed to taxes exceeding the original budget projections coupled with expenditure savings and a positive fair market value adjustment to the overall investment portfolio.  The unassigned General Fund balance comprised $65,217,000, or 31%, of the total $209,786,000 balance and represented 39% of total final General Fund budgeted expenses including transfers and multi-year capital projects.  Total governmental activities debt decreased by $143,000 from $1,703,000 to $1,560,000.

OVERVIEW
Government-Wide Financial Statements
The government-wide financial statements provide a broad overview of the City’s finances. There are two statements – statement of net position and statement of activities, as described below.

The statement of net position presents information on all City assets and deferred outflows of resources as well as liabilities, and deferred inflows of resources, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the City’s financial position is improving or deteriorating.

The statement of activities presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event occurs giving rise to the change, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods, for example, earned but unused vacation leave.

Both of these government-wide financial statements distinguish City functions, which are principally supported by taxes, fees, and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or 423 CLICK HERE to Return to Agenda
a significant portion of their costs through user charges (business-type activities).

Governmental activities include general government, public safety, community services, planning and development and public works; business-type activities include the SilverRock Golf course operations.

The government-wide financial statements include not only the City of La Quinta (known as the primary government), but also the La Quinta Financing Authority and the La Quinta Housing Authority. Although legally separate entities, they function for all practical purposes as City departments.

The government-wide financial statements are listed in the table of contents under the Financial Section of this report.

Fund Financial Statements
A fund is a grouping of related accounts and is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure compliance with finance-related legal requirements. All City’s funds are aggregated into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements.

However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements.

Because the focus is narrower than the government-wide financial statements, it is useful to compare this information with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City maintains thirty-one (31) individual governmental funds, which are distinguished between major and non-major funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances. There are four (4) major governmental funds: the General Fund, the Housing Authority special revenue fund, the Disaster Recovery special revenue fund, and the Capital Improvement capital project fund. Data from the other twenty-seven (27) governmental funds are combined into a single, aggregate presentation.

Individual fund data for each of these non-major governmental funds is provided in the form of combining statements in the Combining and Individual Fund Statements and Schedules section of the report.
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The City adopts an annual budget for its General Fund. A budgetary comparison schedule has been provided to demonstrate compliance with the adopted budget.

The basic governmental fund financial statements can be found in the table of contents under the heading Basic Financial Statements.

Proprietary Funds
Proprietary funds are broken down into enterprise and internal service funds.

Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City maintains one (1) enterprise fund to account for the SilverRock Golf Course operations, which is considered a major fund.

Internal service funds are used to allocate costs among the City’s various functions. The City has four (4) internal service funds: Equipment Replacement, Information Technology, Park Equipment and Facilities, and Insurance. Because these four (4) services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements on the Combining and Individual Fund Statements and Schedules section of the report.

The basic proprietary fund financial statements are listed in the table of contents under Proprietary Funds: Statement of Net Position, Statement of Revenues, Expenses and Changes in Net Position, and Statement of Cash Flows.

Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.

The City reports on two fiduciary funds: 1) the Pension (and Other Employee Benefit) Trust fund which accounts for the Defined Contribution Pension Trust established to provide supplemental retirement benefits for employees, and (2) Successor Agency of the Former RDA Private-Purpose Trust Fund which provides for activities associated with the dissolution of the former Redevelopment Agency.

The basic fiduciary fund financial statements are listed in the table of contents under Fiduciary Funds: Statement of Net Position and Statement of Changes in Net Position.

Notes to the Financial Statements
The notes to the financial statements provide information that is essential to obtain a full understanding of the data provided in the government-wide and fund financial statements. These notes are listed in the table of contents under Notes to Financial Statements.
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Other Information
In addition to the financial statements and accompanying notes, this report also presents the combining statements referred to earlier in connection with non-major governmental funds, internal service funds, and agency funds. The non-major governmental funds’ combining statements are presented immediately following the Required Supplementary Information while the combined statements for the internal service funds and agency funds are presented following the budgetary comparison schedules for the debt service funds.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government's financial position. The City’s net position, the difference between assets and liabilities and deferred inflows/outflows, is one way to measure the City’s financial health or financial position. Over time, increases or decreases in the City’s net position indicate whether its financial health is improving or deteriorating. The City’s net position increased from $858,597,00 to $905,004,000 at the close of the 2023/24, which is $46,407,000 more than the previous year. Increases were reflected in restricted and unrestricted net position for governmental activities.

The largest portion of the City’s Net Position ($574,870,000 or 67% for 2022/23 and $592,061,000 or 65% for 2023/24) reflects investment in capital assets (e.g., land, buildings; machinery, and equipment), net of related debt. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending.

City of La Quinta Net Position
An additional portion of the City's net position ($62,284,000 or 7% in 2023 and $70,215,000 or 8% in 2024) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position $242,728,000 (27%) may be used to meet the government's ongoing obligations to citizens and creditors.

At the end of 2023/24, the City had positive balances in all three categories of net position for the governmental and business-type activities.

Current and other assets 309,087,961 $ 346,290,680 $ 12% 1,546,130 $ 1,841,674 $ 19% 310,634,091 $ 348,132,354 $ 12% Capital assets 533,177,093 549,571,823 3% 42,558,046 42,987,413 1% 575,735,139 592,559,236 3% Total Assets 842,265,054 895,862,503 6% 44,104,176 44,829,087 2% 886,369,230 940,691,590 6% Deferred outflows of
resources 19,619,118 11,707,753 -40% - 0% - 19,619,118 11,707,753 -40% - - 0%
Current liabilities 26,214,135 33,085,649 26% 379,823 476,079 25% 26,593,958 33,561,728 26% Non-current liabilities 15,253,979 4,259,110 -72% 315,520 123,859 0% 15,569,499 4,382,969 -72% Total Liabilities 41,468,114 37,344,759 -10% 695,343 599,938 -14% 42,163,457 37,944,697 -10% Deferred inflows of
resources 5,227,571 9,450,571 81% - 0% - 5,227,571 9,450,571 81% Net Position:

Net investment in capital
assets 532,627,757 549,197,719 3% 42,242,526 42,863,554 1% 574,870,283 592,061,273 3% Restricted 62,283,620 70,215,219 13% - 0% - 62,283,620 70,215,219 13% Unrestricted 220,277,110 241,361,988 10% 1,166,307 1,365,595 17% 221,443,417 242,727,583 10% Total Net Position $ 815,188,487 $ 860,774,926 6% $ 43,408,833 $ 44,229,149 2% $ 858,597,320 $ 905,004,075 5% Total by Fiscal Year
%
Change 2023 2024
Governmental Activities Business-Type Activities
%
Change
%
Change 2023 2024 2023 2024
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Governmental Activities
Governmental activities net position increased by $45,586,000 accounting for a positive 6% percent change in the net position from the previous year. Key elements of these changes are as follows:

City of La Quinta Changes in Net Position
Governmental revenues overall increased by $14,876,000 with the largest increases being $12,708,000 in use of money and property, followed by $5,318,000 for capital grants and contributions and $3,950,000 in property taxes.

Expenses for Governmental Activities increased by $3,559,000 (an 5% increase when compared to 2022/23), with the largest increase being $6,486,000 in Planning & Development offset by a decrease of $6,486,000 increase in General Government. As noted earlier, Governmental Activities includes 31 individual governmental funds and includes capital asset activity allocated on a percentage basis by department. Additional information on capital asset activity distribution can be found in Note 4.
 The General Fund contributed $1,466,000 to the business-type activities of the golf course. Funds were utilized to support operations per the adjusted budget.

Business-Type Activities
This was the nineteenth full year of operations for the SilverRock Golf Resort since the golf course opened in 2005.

Charges for services primarily consisted of green fees which totaled $4,965,000, $198,000 higher than the previous year, with golf course expenses of $5,643,000, which were $123,000 or approximately 2% more than the previous year.

In 2023/24, the General Fund transferred $1,466,000 to the SilverRock Golf Fund to support operations. After this transfer, the net position increase by $820,000.

PROGRAM REVENUES:

Charges for Services 6,551,700 $ 4,921,690 $ (1,630,010) $ 4,767,458 $ 4,965,124 $ 197,666 $ 11,319,158 $ 9,886,814 $ (1,432,344) $ Operating Grants and Contributions 7,136,358 7,265,464 129,106 - - - 7,136,358 7,265,464 129,106 Capital Grants and Contributions 8,760,788 14,078,555 5,317,767 - - - 8,760,788 14,078,555 5,317,767

GENERAL REVENUES & TRANSFERS -
Property Taxes 20,697,081 24,646,620 3,949,539 - - - 20,697,081 24,646,620 3,949,539 Other Taxes 51,942,858 49,202,291 (2,740,567) - - - 51,942,858 49,202,291 (2,740,567) Investment Income 5,058,717 - ( 12,456 5,058,717) - (12,456) - 5,071,173 (5,071,173) Net Change in Fair Value of
Investments (1,519,171) - 20,665 1,519,171 - (20,665) (1,498,506) - 1,498,506 Use of Money & Property 12,708,191 12,708,191 - - 32,253 32,253 - 12,740,444 12,740,444 Motor Vehicle In Lieu 5,110,569 5,584,194 473,625 - - - 5,110,569 473,625 5,584,194 Miscellaneous 1 1,432,619 207 ,640,182 ,563 - - - 1 1,432,619 207 ,640,182 ,563 TOTAL REVENUES 105 120 ,171,519 14 ,047,187 4 ,875,668 4 ,800,579 196 ,997,377 109 ,798 125 ,972,098 15 ,044,564 ,072,466 EXPENSES:

General Government 17,213,248 10,727,413 (6,485,835) - - - 17,213,248 10,727,413 (6,485,835) Public Safety 29,156,519 25,457,350 3,699,169 - - - 25,457,350 29,156,519 3,699,169 Planning & Development 3,146,264 8,432,348 5,286,084 - - - 3,146,264 8,432,348 5,286,084 Community Services 9,550,001 13,647,971 4,097,970 - - - 9,550,001 13,647,971 4,097,970 Public Works 14,043,797 10,982,293 (3,061,504) - - - 14,043,797 10,982,293 (3,061,504) Interest on Long-Term Debt 25,504 48,204 22,700 - - - 25,504 48,204 22,700 Golf Course - - - 5,520,342 5,643,061 122,719 5,520,342 5,643,061 122,719 TOTAL EXPENSES 69,436,164 72,994,748 3,558,584 5,520,342 5,643,061 122,719 74,956,506 78,637,809 3,681,303 Excess or Deficiency before
Transfers & Extraordinary Items 35,735,355 47,052,439 11,317,084 (719,763) (645,684) 74,079 35,015,592 46,406,755 11,391,163

TRANSFERS & EXTRAORDINARY
ITEMS:

Transfers( 600,000) (1,466,000) (866,000) 600,000 1,466,000 866,000 - - - Increase in Net Position 35,135,355 45,586,439 10,451,084 (119,763) 820,316 940,079 35,015,592 46,406,755 11,391,163 Net Position - Beginning 780,053,132 815,188,487 35,135,355 43,528,596 43,408,833 (119,763) 823,581,728 858,597,320 35,015,592 NET POSITION - ENDING 815,188,487 $ $ 860,774,926 $ 45,586,439 $ 43,408,833 $ 44,229,149 $ 820,316 $ 858,597,320 $ 905,004,075 $ 46,406,755 2024 Change
Governmental Activities Business-Type Activities Total by Fiscal Year 2023 2024 Change 2023 2024 Change 2023
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FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental Funds
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.

As of the end of 2023/24, the City's governmental funds reported combined ending fund balances as follows:

City of La Quinta Governmental Fund Balances
Governmental fund balances ended the year totaling $269,902,000, an increase of $30,082,000 in comparison with the prior years’ ending balance of $239,820,000.

These collective fund balances include the General Fund, Housing Authority, Financing Authority, Capital Improvement Fund, and various Special Revenue funds.

Nonspendable
Nonspendable fund balance totaled $22,699,000 or 8%; this represents amounts that are not available to pay for operating expenditures because they are in the form of land and receivables.

Restricted
Restricted fund balance totaled $69,881,000 or 26%; these amounts represent funds with external limitations on spending. Significant restrictions include: Section 115 trust of $5,667,000 restricted for pension liabilities; Library and Museum totaling $13,660,000 which represents property tax increment money that can only be used for library and museum services; Measure A funding of $3,467,000 which can only be used for transportation; Transportation capital project fund of $5,868,000 in developer fees that are restricted for the acquisition, construction and improvement of the City’s infrastructure; and Economic Development funding of $3,486,000 that can only be used for future economic development in the City.

Committed
$45,900,000 (17%) are committed fund balances which are the result of self-imposed limitations established by the City Council. In May 2018, the City adopted a Reserve Policy that established committed General Fund reserve categories, including Natural Disaster Reserves, Economic Disaster Reserves, Cash Flow Reserves, and Capital Category General Fund Percent All Other Funds Percent Total Funds Percent Nonspendable 22,698,006 $ 11% 500 $ 0.001% 22,698,506 $ 8% Restricted 5,666,575 3% 64,214,488 107% 69,881,063 26%
Committed 45,900,000 22% - 0% 45,900,000 17%
Assigned 70,304,510 34% - 0% 70,304,510 26%
Unassigned 65,216,616 31% (4,098,801) -7% 61,117,815 23% TOTAL 209,785,707 $ 100% 60,116,187 $ 100% 269,901,894 $ 100% 428 CLICK HERE to Return to Agenda
Replacement Reserves. The Policy was updated in 2023 to include increased funding targets. As of June 30, 2024, all reserve categories are fully funded at their target levels.

Assigned
Assigned funds are constrained by the City’s intent to use them for specific purposes and represent a total of $70,305,000 (26%) of the total fund balance. $21,667,000 represents funds for approved multi-year capital projects that were not spent by the end of the year, therefore they are carried over until the projects are completed.

Available Measure G sales tax revenue ended the year at $32,985,000 and $15,653,000 represents funds held in trust with the County of Riverside for fire services.

Unassigned
The remaining fund balance of $61,118,000 represents unassigned fund balances or the residual net resources after taking into consideration the other classifications. The Capital Improvement Fund accounted for $2,184,000 of the negative $4,099,000 balance of all other funds. The remaining negative balance was largely attributed to the Library Development Impact Fee Fund. This amount represents an advance due to the Redevelopment (RDA) Successor Agency and is included in the Successor Agency of the former RDA as a receivable.

General Fund
The General Fund is the City’s chief operating fund. At the end of 2023/24, the unassigned fund balance was $65,217,000 while total fund balance was $209,786,000.

The General Fund balance increased by $23,809,000 in 2023/24. Key factors were:
 A year-over-year decrease of $2,432,000 in non-spendable is attributed to the 2023/24 Redevelopment Agency loan repayment of $2,750,000 offset by interest earnings of $273,000 resulted in a net decrease of $2,477,000 in Due from Other Governments. The outstanding loan balance of $21,405,000 is recognized as 80% in the General Fund and 20% in the Housing Authority Fund.
 Restricted reserves are limited to funds held in a Section 115 Pension Trust set aside to fund the City’s pension obligations. The trust was initially established in FY 2018/19 with a deposit of $6,540,000, followed by an additional $3,460,000 in FY 2019/20. In FY 2022/23, a one-time discretionary payment of $5,000,000 was made to CalPERS to reduce the City’s unfunded pension liabilities, utilizing funds from the trust. The increase in FY 2023/24 was primarily driven by interest earnings within the trust.  Committed reserves decreased by $1,700,000, primarily due to a reduction in operational carryovers. In the prior year, $2,600,000 was carried over to support ongoing operations, whereas only $900,000 was required in the current year.

The lower carryover amount reflects that additional operational support was not needed this year, indicating improved budget alignment and operational efficiency.
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 An increase of $6,480,000 in assigned reserves was due to Measure G sales tax reserve ($3,771,000) and ($3,666,000) in the fire services trust. Assigned to public safety represents property tax accumulated and held in trust by the County of Riverside for fire protection, disaster preparedness and response, fire prevention, rescue, hazardous materials mitigation, technical rescue response, medical emergency services, and public service assistance (the County and City negotiated an agreement wherein the County fire service property tax revenue generated in the two former City redevelopment project areas is pledged to the City to fund the aforementioned services). This portion of assigned fund balance as of June 30, 2024 is $15,653,000. These increases combined with a decrease in multi-year Capital Projects ($957,000) contributed to the overall increase in assigned reserves.

Housing Authority Fund
The Housing Authority Fund is used to account for the activities of the Housing Authority; the Housing Authority invests in programs and projects that preserve and increase the supply of affordable housing in the City. The fund balance decreased by $1,610,000 to end the year at $24,756,000.

Capital Improvement Fund
The Capital Improvement Fund is primarily used to record the expenditures for capital projects. The fund had forty-seven (47) active Capital Improvement Projects budgeted during 2023/24. The five most active projects were:
 Dune Palms Bridge Improvements ($11,475,000)
 Avenue 50 Pavement Rehabilitation ($2,605,000)
 Fred Waring Drive Pavement Rehabilitation ($2,444,000)  Citywide Pavement Management Plan ($1,830,000)
 Citywide Landscape Renovation Improvements ($1,290,000) These projects, along with others, leveraged State or Federal grant funds or were significantly supported with Measure G sales tax revenues.

PROPRIETARY FUNDS
The City of La Quinta's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.

The financial activities of the City enterprise fund are addressed in the discussion of the City’s business-type activities. In addition, the City has four (4) internal service funds to accumulate resources for equipment and vehicle replacement, information technology, insurance, and park equipment and facility replacement. 430 CLICK HERE to Return to Agenda

GENERAL FUND BUDGETARY HIGHLIGHTS
Most General Fund revenues experienced positive variances when compared to the final budget specifically related to use of money and property and tax revenues.

Revenue appropriations and transfers in increased by $4,399,000 between the original ($78,578,000) and final amended budget ($82,977,000). The category representing the largest variances is taxes, which represents 84% of all General Fund revenues.

Actuals for taxes include the three largest funding sources for the City – sales taxes $27,642,000, transient occupancy taxes (TOT) $15,683,000, and property taxes $12,682,000. Combined, these top three revenues account for $56,007,000 or 73% of all taxes, resulting in a $793,000 decrease from the prior fiscal year in sales and transient occupancy taxes offset by a increase in property taxes.

The Extraordinary Item includes $273,000 to record the annual former Redevelopment Agency loan repayment interest earned in 2023/24. The loan repayments are structured to pay all principal first, then interest. Each year the City records the payment received and interest earned in accordance with the State Department of Finance approved loan repayment schedule. Loan repayments are not budgeted; these funds are recognized in unassigned reserves and reduce non-spendable reserves each year. Furthermore, 80% of the extraordinary gain is recognized in the General Fund and 20% in the Housing Authority Fund.

Expenditure appropriations and transfers out increased by $29,048,000 between the original ($72,829,000) and final amended budget ($101,877,000) which included the following significant change:
 $22,623,000 in operational and capital improvement project carryover appropriations from prior fiscal years to 2023/24 as approved by City Council.

CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The City’s capital assets for its governmental and business-type activities as of June 30, 2024, were $592,559,000 (net of accumulated depreciation). This includes land, right of way, buildings and improvements, machinery and equipment, streets and bridges, construction in progress, and the right to use lease and subscription assets.

The investment in capital assets decreased by $16,824,000 in 2023/24 primarily due to an increase in construction in progress.

The following chart lists the asset categories for governmental and business-like activities net of depreciation:

City of La Quinta Capital Assets (net of depreciation)
2023 2024 2023 2024 2023 2024
Land $ 83,717,732 $ 87,280,570 $ 39,712,956 $ 39,712,955 $ 123,430,688 $ 126,993,525 Buildings & Improvements 36,354,815 35,162,219 2,484,095 2,269,551 38,838,910 37,431,770 Equipment & Furniture 1,147,737 1,499,415 49,910 16,467 1,197,647 1,515,882 Vehicles 1,281,556 1,022,210 867,343 1,281,556 - 1,889,553 Infrastructure 401,770,282 397,919,236 - 401,770,282 - 397,919,236 Right to use Leased Assets 49,643 - 311,085 121,097 360,728 121,097 Right to use Subscription IT Assets 592,321 - - - 592,321 - Right to use Lease & Subscription Assets - 402,236 - - - 402,236 Construction in Progress 8,263,007 - 26,285,937 - 8,263,007 26,285,937 TOTAL 533,177,093 $ 549,571,823 $ 42,558,046 $ 42,987,413 $ 575,735,139 $ 592,559,235 $ Governmental Activities Business-Type Activities Total By Fiscal Year Description
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Major capital asset events under Governmental Activities included the following:
 Recording infrastructure improvements, street improvements, street right of way, street sidewalks and curbs and gutters, traffic signals, street medians, and construction in progress.

Business-Type Activities
The Golf Course capital asset balance at June 30, 2024, was $42,987,000, net of accumulated depreciation. The balance increase of $429,000 reflects the purchase of golf carts in the Vehicles category in 2023/24.

Additional information on the City of La Quinta’s capital assets can be found in Note 4 to the financial statements.

Long-Term Debt
At the end of 2023/24, the City governmental activities had total outstanding debt of $1,560,000, which is $144,000 less than the previous year. Of the total amount, $92,000 represents leases, $282,000 represents subscription IT liabilities, and $1,186,000 in employee compensated absences.

City of La Quinta Outstanding Debt
Additional information on long-term debt can be found in Note 5 of the financial statements.

REQUEST FOR INFORMATION
This financial report is designed to provide a general overview of the City’s finances.

Questions concerning this information or requests for additional information should be addressed to the City of La Quinta, Claudia Martinez, Finance Director/City Treasurer, 78495 Calle Tampico, La Quinta, CA, 92253, by telephone at 760-777-7055, or by email at finance@laquintaca.

Debt Type: 2023 2024
Leases $ 53,111 $ 91,795
Financed Purchases 551 -
Compensated Absences 1,154,090 1,185,597
Subscription IT liabilities 282,309 495,674
TOTAL 1,703,426 $ $ 1,559,701
Governmental Activities
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CITY OF LA QUINTA, CALIFORNIA
Statement of Net Position
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments $ 1,449,251 266,729,385 $ $ 268,178,636 Receivables:

Accounts - 2,106,591 2,106,591
Taxes - 6,895,002 6,895,002
Accrued interest 883 6,005,424 6,006,307
Due from other governments 29,061,585 - 29,061,585
Notes and loans 22,414,377 - 22,414,377
Leases - 1,334,093 1,334,093
Deposits 47,964 250,000 297,964
Restricted assets:

Cash and investments 5,666,575 - 5,666,575
Inventories 141,540 - 141,540
Land held for resale - 5,403,652 5,403,652
Prepaid costs - 291,876 291,876
Net OPEB Asset - 334,156 334,156
Capital assets (not being depreciated) 39,712,955 399,640,855 439,353,810 Capital assets (net of accumulated depreciation/amortization) 3,274,458 149,930,968 153,205,426 Total assets 44,829,087 895,862,503 940,691,590

DEFERRED OUTFLOWS OF RESOURCES
Pension-related 11,361,579 - 11,361,579
OPEB-related - 346,174 346,174
Total deferred outflows of resources 11,707,753 11,707,753 -

LIABILITIES
Accounts payable 12,881,315 440,445 13,321,760
Due to other governments - 1,121,132 1,121,132
Accrued liabilities - 590,931 590,931
Accrued interest 134 7,160 7,294
Deposits payable 35,500 7,066,131 7,101,631
Unearned revenue 11,418,980 - 11,418,980
Noncurrent liabilities:

Due within one year: leases, SBITA
and compensated absences 546,785 72,563 619,348
Due in more than one year:

Net pension liability 2,699,409 - 2,699,409
Leases, SBITA, and compensated absences 1,012,916 51,296 1,064,212 Total liabilities 599,938 37,344,759 37,944,697

DEFERRED INFLOWS OF RESOURCES
Pension-related - 7,705,327 7,705,327
OPEB-related - 524,199 524,199
Lease-related - 1,221,045 1,221,045
Total deferred inflows of resources 9,450,571 9,450,571 -

NET POSITION
Net investment in capital assets 42,863,554 549,197,719 592,061,273 Restricted:

General government 26,037,252 - 26,037,252
Public safety - 1,926,497 1,926,497
Community development 18,130,448 - 18,130,448
Parks and recreation 7,588,221 - 7,588,221
Public works 10,532,070 - 10,532,070
OPEB Section 115 Trust 5,666,575 - 5,666,575
OPEB - 334,156 334,156
Unrestricted 1,365,595 241,361,988 242,727,583
Total net position $ 44,229,149 860,774,926 $ 905,004,075 $ June 30, 2024
Primary Government
See Notes to Financial Statements
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CITY OF LA QUINTA, CALIFORNIA
Statement of Activities
For the Year Ended June 30, 2024
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs:

Primary government:

Governmental activities:

General government $ 10,727,413 $ 3,861,857 $ 639,349 $ - Public safety 29,156,519 988,238 226,896 -
Planning and development 8,432,348 167,376 - -
Community services 13,647,971 4,207,392 - -
Public works 10,982,293 71,595 2,024,451 14,078,555
Interest on long-term debt 48,204 - - -
Total governmental activities 72,994,748 4,921,690 7,265,464 14,078,555 Business-type activities:

Golf Course 5,643,061 4,965,124 - -
Total business-type activities 5,643,061 4,965,124 - -
Total primary government $ 78,637,809 $ 9,886,814 $ 7,265,464 $ 14,078,555 General revenues and transfers:

General revenues:

Property taxes
Sales taxes
Transient occupancy taxes
Franchise taxes
Business licenses taxes
Other taxes
Motor vehicle in lieu - unrestricted
Use of money and property
Other
Transfers
Total general revenues and transfers
Change in net position
Net position-beginning
Net position-ending
Program Revenues
See Notes to Financial Statements
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Governmental Business-Type
Activities Activities Total
$ - (6,226,207) $ $ (6,226,207)
- (27,941,385) (27,941,385)
- (8,264,972) (8,264,972)
- (9,440,579) (9,440,579)
- 5,192,308 5,192,308
- (48,204) (48,204)
- (46,729,039) (46,729,039)
(677,937) - (677,937)
(677,937) - (677,937)
$ (677,937) (46,729,039) $ (47,406,976) $
- 24,646,620 24,646,620
- 29,601,430 29,601,430
- 15,682,835 15,682,835
- 2,419,887 2,419,887
- 395,593 395,593
- 1,102,546 1,102,546
- 5,584,194 5,584,194
32,253 12,708,191 12,740,444
- 1,640,182 1,640,182
1,466,000 (1,466,000) -
92,315,478 1,498,253 93,813,731
45,586,439 820,316 46,406,755
43,408,833 815,188,487 858,597,320
$ 44,229,149 860,774,926 $ 905,004,075 $
Primary Government
Net (Expenses) Revenues and
Changes in Net Position
See Notes to Financial Statements
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CITY OF LA QUINTA, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2024
Capital
Projects Fund
General
ASSETS
Cash and investments 19,682,214 184,192,969 $ 10,415,934 $ $ 817,344 Receivables:

Accounts 957,711 105,363 - 934,764
Taxes 6,262,399 - - -
Notes and loans 22,414,377 - - -
Accrued interest 204,039 5,727,497 12,424 -
Leases 1,334,093 - - -
Prepaid costs - 170,577 - -
Deposits 47,964 - - -
Due from other governments 17,524,493 4,280,944 - 5,699,864 Due from other funds - 2,202,992 - -
Property held for resale - 5,403,652 - -
Restricted assets:

Cash and investments 5,666,575 - - -
Total assets $ 223,919,500 $ 52,258,359 $ 10,428,358 $ 7,451,972

LIABILITIES
Accounts payable $ 22,616 4,593,089 $ - $ $ 6,230,458
Accrued liabilities 21,169 528,314 - -
Unearned revenues - - 9,987,008 1,431,972
Deposits payable 26,350 7,039,781 - -
Due to other governments - 2,505 - -
Due to other funds 1,390,783 - - -
Total liabilities 12,163,689 1,460,918 9,987,008 7,662,430

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 26,041,611 749,059 - 1,973,989
Leases - 1,221,045 - -
Total deferred inflows of resources 1,970,104 26,041,611 1,973,989 -

FUND BALANCES (DEFICITS)
Nonspendable 22,698,006 - - -
Restricted 24,755,830 5,666,575 441,350 -
Committed 45,900,000 - - -
Assigned 70,304,510 - - -
Unassigned 65,216,616 - - (2,184,447)
Total fund balances (deficits) 209,785,707 24,755,830 441,350 (2,184,447) Total liabilities, deferred inflows of resources,
and fund balances (deficits) $ 223,919,500 $ 52,258,359 $ 10,428,358 $ 7,451,972 Special Revenue Funds
Housing
Authority
Disaster
Recovery
Capital
Improvements
See Notes to Financial Statments.
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CITY OF LA QUINTA, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Receivables:

Accounts
Taxes
Notes and loans
Accrued interest
Leases
Prepaid costs
Deposits
Due from other governments
Due from other funds
Property held for resale
Restricted assets:

Cash and investments
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Leases
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
Total Total
Nonmajor Governmental
Funds Funds
$ 37,583,982 $ 252,692,443
108,753 2,106,591
632,603 6,895,002
- 22,414,377
44,725 5,988,685
500 1,334,593
- 170,577
- 47,964
1,556,284 29,061,585
- 2,202,992
- 5,403,652
- 5,666,575
$ 39,926,847 $ 333,985,036
$ 11,590,766 744,603 $
39,391 588,874
- 11,418,980
- 7,066,131
1,118,627 1,121,132
812,209 2,202,992
33,988,875 2,714,830
28,873,222 108,563
- 1,221,045
30,094,267 108,563
22,698,506 500
39,017,308 69,881,063
- 45,900,000
- 70,304,510
(1,914,354) 61,117,815
37,103,454 269,901,894
$ 39,926,847 $ 333,985,036
See Notes to Financial Statments.
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Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2024
Amounts reported for governmental activities in the Statement of Net Position are different because:

Total fund balances - governmental funds $ 269,901,894
535,127,553
Deferred outflows-pension related 11,361,579 $
Deferred outflows-OPEB related 346,174
Deferred inflows-pension related (7,705,327)
Deferred inflows-OPEB related (524,199)
Total deferred outflows and inflows related to postemployment benefits 3,478,227 Long-term receivables 28,873,222
Net OPEB asset 334,156
Total other long-term assets 29,207,378
26,987,115
Leases (42,235)
Compensated absences (1,185,597)
Net pension liability (2,699,409)
Total long-term liabilities (3,927,241)
Net position of governmental activities $ 860,774,926
Long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds.

CITY OF LA QUINTA, CALIFORNIA
Capital assets, net of accumulated depreciation/amortization, used in governmental activities are not financial resources and, therefore, are not reported in the funds.

Differences between expected and actual experiences, assumption changes and net differences between projected and actual earnings, and contributions subsequent to the measurement date for the postretirement benefits (pension and OPEB) are recognized as deferred outflows of resources and deferred inflows of resources on the Statement of Net Position.

Other long-term assets that are not available to pay for current period expenditures and, therefore, are either labeled unavailable or not reported in the funds.

Internal service funds provide services to other funds on a cost-reimbursement basis.

The assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the internal service funds are included in governmental activities in the Statement of Activities.

See Notes to Financial Statements
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CITY OF LA QUINTA, CALIFORNIA
Statement of Revenues, Expenditures,
and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2024
General

REVENUES
Taxes $ 76,894,958 $ - $ - $ -
Assessments - - - -
Licenses and permits - 2,820,613 - -
Intergovernmental - 523,573 - 14,078,555
Charges for services - 1,494,422 - -
Use of money and property 2,295,077 7,714,344 491,528 - Fines and forfeitures - 408,125 - -
Developer fees - - - 100,044
Miscellaneous 149,395 1,346,240 - -
Total revenues 91,202,275 2,444,472 491,528 14,178,599

EXPENDITURES
Current:

General government 7,600,439 - - -
Public safety 25,273,718 - - -
Community services 10,589,615 250,000 - -
Planning and development 5,708,043 1,566,300 - -
Public works 2,314,134 - - -
Capital outlay 3,625,185 169,919 - 24,630,204
Debt service: - - - -
Principal 24,452 - - -
Interest and fiscal charges - - - -
Total expenditures 51,680,320 5,441,485 24,630,204 -
Excess (deficiency) of revenues
over (under) expenditures 39,521,955 (2,997,013) 491,528 (10,451,605)

OTHER FINANCING SOURCES (USES)
Transfers In 1,387,009 - - 14,366,766
Transfers Out - (15,763,243) - -
Debt Issuance Proceeds - 49,487 - -
Total other financing sources (uses) (15,713,756) 1,387,009 - 14,366,766 Net change in fund balances 23,808,199 (1,610,004) 491,528 3,915,161 Fund balances (deficit)-beginning 26,365,834 185,977,508 (50,178) (6,099,608) Fund balances (deficit)-ending $ 209,785,707 $ 24,755,830 $ 441,350 $ (2,184,447) Capital
Projects
Funds
Housing
Authority
Disaster
Recovery
Special Revenue Funds
Capital
Improvements
See Notes to Financial Statments.
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CITY OF LA QUINTA, CALIFORNIA
Statement of Revenues, Expenditures,
and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Taxes
Assessments
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Developer fees
Miscellaneous
Total revenues

EXPENDITURES
Current:

General government
Public safety
Community services
Planning and development
Public works
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures

OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Debt Issuance Proceeds
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
Total Total
Nonmajor Governmental
Funds Funds
$ 2,031,365 $ 78,926,323
988,238 988,238
- 2,820,613
6,641,847 21,243,975
- 1,494,422
1,746,509 12,247,458
- 408,125
779,387 879,431
3,634 1,499,269
12,190,980 120,507,854
907 7,601,346
100,817 25,374,535
1,946,056 12,785,671
316,246 7,590,589
4,803,686 7,117,820
57,549 28,482,857
- 24,452
32,495 32,495
89,009,765 7,257,756
31,498,089 4,933,224
3,325,049 19,078,824
(4,781,231) (20,544,474)
- 49,487
(1,456,182) (1,416,163)
30,081,926 3,477,042
33,626,412 239,819,968
$ 37,103,454 $ 269,901,894
See Notes to Financial Statments.
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Reconciliation of the Statement of Revenues, Expenses and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2024
Amounts reported for governmental activities in the Statement of Activities are different because:

Net change in fund balances - total governmental funds: $ 30,081,926 Capital outlay 25,136,457
Depreciation/amortization expense (8,964,547)
Total adjustment 16,171,910
Earned but unavailable grant revenues (1,244,088)
Total adjustment (1,244,088)
Loss/(gain) on disposal of capital assets (197,658)
Total adjustment (197,658)
Leases issued (49,487)
Principal payments 24,452
Total adjustment (25,035)
2,288,018
Compensated absences (31,507)
Changes in pension liabilities and related deferred outflows and inflows of resources (1,457,534) Changes in OPEB liabilities and related deferred outflows and inflows of resources 407 Total adjustment (1,488,634)
Change in net position of governmental activities 45,586,439 $ Internal service funds provide services to other funds on a cost-reimbursement basis.

The net revenue of certain activities of internal service funds is reported with governmental activities.

Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.

CITY OF LA QUINTA, CALIFORNIA
Governmental funds report capital outlays are expenditures. However, in the Statement of Activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation/amortization expense. This is the amount by which capital outlays exceeded depreciation/amortization expense in the current period.

Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.

The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, and donations) is to increase/(decrease) net position.

Bond and other debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position.

Repayment of bond and other debt principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the Statement of Net Position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities.

See Notes to Financial Statements
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CITY OF LA QUINTA, CALIFORNIA
Statement of Net Position
Proprietary Funds
June 30, 2024
Governmental
Activities
Internal
Service Funds
ASSETS
Current assets:

Cash and investments $ 1,449,251 $ 14,036,942
Receivables:

Accrued interest 883 16,739
Prepaid costs - 120,799
Deposits 250,000 -
Inventories 141,540 -
Total current assets 1,841,674 14,174,480
Noncurrent:

Capital assets, net of depreciation/amortization 42,987,413 14,444,270 Total noncurrent assets 42,987,413 14,444,270
Total assets 44,829,087 28,618,750

LIABILITIES
Current liabilities:

Accounts payable 440,445 1,290,549
Accrued liabilities - 2,057
Accrued interest 134 7,160
Deposits payable 35,500 -
Leases 72,563 38,288
Subscriptions - 194,001
Total current liabilities 548,642 1,532,055
Noncurrent liabilities:

Leases 51,296 11,272
Subscriptions - 88,308
Total noncurrent liabilities 51,296 99,580
Total liabilities 599,938 1,631,635

NET POSITION
Net investment in capital assets 42,863,554 14,112,401
Unrestricted 1,365,595 12,874,714
Total net position $ 26,987,115 44,229,149 $
Business-Type
Activities
Golf
See Notes to Financial Statements.
444 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2024
Governmental
Activities
Internal
Service Funds

OPERATING REVENUES
Sales and service charges $ 4,965,124 $ 7,008,048
Total operating revenues 4,965,124 7,008,048

OPERATING EXPENSES
Administration and general - 362,697
Contract services 4,974,292 1,991,319
Software and supplies - 947,382
Fuel and oil - 119,877
Repairs and maintenance 145,133 243,679
Depreciation and amortization 517,448 1,605,934
Total operating expenses 5,636,873 5,270,888
Operating income (loss) (671,749) 1,737,160

NONOPERATING REVENUES (EXPENSES)
Interest Revenue 32,253 579,149
Interest Expense (6,188) (15,709)
Other Income - 4,272
Gains (Losses) on Sale of Capital Asset - (16,504)
Total nonoperating revenues (expenses) 26,065 551,208
Income (loss) before transfers (645,684) 2,288,368
Transfers In 1,466,000 -
Transfers Out - (350)
Change in net position 820,316 2,288,018
Net position-beginning 43,408,833 24,699,097
Net position-ending $ 26,987,115 44,229,149 $
Business-Type
Activities
Golf
See Notes to Financial Statements.
445 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
Governmental
Activities
Internal
Service Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users $ 4,965,124 $ -
Cash received from interfund services provided - 7,008,048 Cash payments to suppliers for goods and services (5,052,141) (2,846,469) Net cash provided by (used for)
operating activities (87,017) 4,161,579

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers from other funds 1,466,000 -
Transfers to other funds - (350)
Net cash provided by (used for)
noncapital financing activities 1,466,000 (350)

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition and construction of capital assets (946,816) (2,042,916) Principal paid on capital debt (191,661) (213,365)
Interest paid on capital debt (6,473) (26,377)
Net cash provided by (used for)
capital and related financing activities (1,144,950) (2,282,658)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 31,924 572,673
Net cash provided by (used for)
investing activities 31,924 572,673
Net increase (decrease) in
cash and cash equivalents 265,957 2,451,244
Cash and cash equivalents-beginning 1,183,294 11,585,698 Cash and cash equivalents-ending $ 1,449,251 $ 14,036,942 Business-Type
Activities
Golf
See Notes to Financial Statements.
446 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
Governmental
Activities
Internal
Service Funds
Business-Type
Activities
Golf

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED BY (USED FOR)

OPERATING ACTIVITIES
Operating income (loss) $ (671,749) $ 1,737,160
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:

Depreciation/amortization expense 517,448 1,605,934
(Increase) decrease in inventories (29,258) -
(Increase) decrease in prepaid items - 132,256
Increase (decrease) in accounts payable 96,542 685,811
Increase (decrease) in accrued liabilities - 418
Total adjustments 584,732 2,424,419
Net cash provided by (used for)
operating activities $ 4,161,579 (87,017) $
See Notes to Financial Statements.
447 CLICK HERE to Return to Agenda
Private
Purpose
Trust Fund
ASSETS
Cash and cash equivalents $ 74,073 $ 15,672,078
Investments - Short-term - -
Receivables:

Accrued interest 88 241
Prepaid costs - 259,708
Due from other governments - 1,118,627
Restrcted assets
Cash with fiscal agent - 1,670
Total assets 17,052,324 74,161

DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding - 13,516,518
Total deferred outflows of resources 13,516,518 -

LIABILITIES
Accrued interest - 1,020,494
Long-term debt:

Due in one year - 16,860,817
Due in more than one year - 152,244,008
Total liabilities 170,125,319 -

NET POSITION
Restricted for pensions 74,161 -
Restricted for the dissolution of the former RDA - (139,556,477) Total net position $ 74,161 $ (139,556,477)

CITY OF LA QUINTA, CALIFORNIA
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024
Pension (and
Other
Employee
Benefit) Trust
Fund
See Notes to Financial Statements.
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Private
Purpose
Trust Fund

ADDITIONS
Investment earnings:

Investment income 3,664 53,463
Total investment earnings 3,664 53,463
Taxes - 20,192,466
Miscellaneous 5,000 -
Total additions 20,245,929 8,664

DEDUCTIONS
Administrative expenses 12,833 31,591
Interest and fiscal charges - 4,887,006
Total deductions 4,918,597 12,833
Net increase (decrease) in fiduciary net position (4,169) 15,327,332 Net position-beginning 78,330 (154,883,809)
Net position-ending $ 74,161 $ (139,556,477)

CITY OF LA QUINTA, CALIFORNIA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2024
Pension (and
Other
Employee
Benefit) Trust
Fund
See Notes to Financial Statements.
449 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of La Quinta, California (City) was incorporated May 1, 1982, under the general laws of the State of California. In November 1996, the City became a charter City. The City operates under the Council – Manager form of government.

The City provides many community services including public safety, highway and street maintenance, health and social services, cultural and leisure services, public improvements, planning and zoning services, and community development services.

The accounting policies of the City conform to generally accepted accounting principles applicable to governments.

As required by generally accepted accounting principles, these financial statements present the City and its component units, which are entities for which the City is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization’s governing body and the City is able to impose its will on that organization or there is a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable if an organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City’s financial statements to be misleading or incomplete.

All of the City’s component units are considered to be blended component units. Blended component units, although legally separate entities, are, in substance, part of the City’s operations and so data from these units are reported with the interfund data of the primary government.

The following organizations are considered to be component units of the City:

City of La Quinta Public Financing Authority
The La Quinta Public Financing Authority (Financing Authority) was established pursuant to a Joint Exercise of Powers Agreement dated November 19, 1991, between the City and the Former Redevelopment Agency (now Successor Agency). The purpose of the Financing Authority is to provide financing necessary for the construction of various public improvements through the issuance of debt. Although the Financing Authority is legally separate, it is reported as if it were part of the City because the City Council also serves as the governing board of the Financing Authority and the management of the City has operational responsibility for the Financing Authority. The activities of the Financing Authority are recorded in the debt service fund. Separate financial statements of the Financing Authority are not prepared.

City of La Quinta Housing Authority
The La Quinta Housing Authority (Housing Authority) was established pursuant to California Housing Authorities Law (Health and Safety Code Sections 34200 et seq.) on September 15, 2009. The purpose of the Housing Authority is to provide safe and sanitary housing opportunities for La Quinta residents. Although the Housing Authority is legally separate, it is reported as if it were part of the City because the City Council also serves as the governing board of the Housing Authority and the management of the City has operational responsibility for the Housing Authority. The activities of the Housing Authority are recorded in the Housing Authority Special Revenue Fund. Separate financial statements of the Housing Authority are not prepared.

Government-Wide and Fund Financial Statements
The basic financial statements of the City are composed of the following:
 Government-wide financial statements
 Fund financial statements
 Notes to the financial statements
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CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Government-Wide Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. All fiduciary activities are reported only in the fund financial statements. Governmental activities, which normally are supported by taxes, intergovernmental revenues, and other nonexchange transactions, are reported separately from business-type activities, which rely to a significant extent on fees and charges to external customers for support.

Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include charges for services, special assessments, and payments made by parties outside of the reporting City’s citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Taxes and other items not properly included among program revenues are reported instead as general revenues. Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements, rather than reported as expenditures. Proceeds of long-term debt are recorded as a liability in the government-wide financial statements, rather than as other financing sources. Amounts paid to reduce long- term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as expenditures.

Fund Financial Statements
The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and expenditures or expenses, as appropriate.

Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Fund financial statements for the governmental, proprietary, and fiduciary funds are presented after the government-wide financial statements. These statements display information about major funds individually and nonmajor funds in the aggregate for governmental and proprietary funds. Fiduciary statements include financial information for fiduciary funds. Fiduciary funds of the city primarily represent assets held by the City in a custodial capacity for other individuals or organizations.

Measurement Focus, Basis of Accounting and Financial Statement Presentation Government-Wide Financial Statements
While separate government-wide and fund financial statements are presented, they are interrelated. The governmental activities column incorporates data from governmental funds and internal service funds, while business-type activities incorporate data from the government's enterprise funds. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements.

The government-wide financial statements are reported using the economic resources measurement focus and accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred regardless of the related cash flows. Property taxes are recognized in the year they are levied. Grants and similar items are recognized as soon as all eligibility requirements imposed by the providers are met. 451 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Governmental Funds
In the fund financial statements, governmental funds are presented using the current resources focus and modified-accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses a 60-day availability period.

Revenue recognition is subject to the measurable and availability criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed delivered tax revenues are recognized as revenues in the period in which the underlying exchange transaction on which they are based takes place.

Imposed nonexchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government-mandated and voluntary non- exchange transactions are recognized as revenues when all applicable eligibility requirements have been met.

Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government.

In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets, deferred outflows of resources, current liabilities, and deferred inflows of resources are generally included on their balance sheets. The reported fund balance is considered to be a measure of “available spendable resources”. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses).

Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.

Noncurrent portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus. Special reporting treatments are used to indicate, however, that they should not be considered “available spendable resources”, since they do not represent net current assets.

Recognition of governmental fund type revenues represented by noncurrent receivables are deferred until they become current receivables. Noncurrent portions of other long-term receivables are offset by fund balance reserve accounts.

Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.

Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures.

Proprietary Funds
The City’s enterprise and internal service funds are proprietary funds. In the fund financial statements, proprietary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned, and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds are presented using the economic resources measurement focus. This means that all assets, all deferred outflows of resources, all liabilities, and all deferred inflows of resources (whether current or noncurrent) associated with their activity are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position. 452 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Amounts paid to acquire capital assets are capitalized as assets in the proprietary fund financial statements, rather than reported as expenditures. Proceeds of long-term debt are recorded as a liability in the proprietary fund financial statements, rather than as another financing source. Amounts paid to reduce long-term indebtedness of the proprietary funds are reported as a reduction of the related liability, rather than as expenditures.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Enterprise Funds are charges to customers for sales and services.

Operating expenses for Enterprise Funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

Fiduciary Funds
The pension and private-purpose trust funds are reported using the economic resources measurement focus and the accrual basis of accounting.

Major Funds, Internal Service Funds and Fiduciary Fund Types The City’s major governmental funds are as follows:

General Fund – This fund is the primary fund of the City and is used to account for all revenue and expenditures of the City not legally restricted as to use. A broad range of municipal activities are provided through this fund including City Manager, City Attorney, Finance, City Clerk, Community Development, Police Services, Public Works, and Community Services.

Housing Authority – This fund accounts for the combined housing activities of the Housing Authority in Project Areas 1 and 2 which promotes and provides for quality housing. Revenues will be provided from the receipts and collections of rents, notes and loans. All monies in the Housing Authority must be used in accordance with the applicable housing-related provisions of the California Housing Authorities Law.

Disaster Recovery Fund – To account for the use of one-time federal funding designed to deliver relief to American workers and aid in economic recovery in the wake of COVID-19. This Act was passed by Congress in 2021, to provide Coronavirus fiscal recovery funds to state and local governments.

Capital Improvement Fund – This capital projects fund is used to account for the planning, design and construction of various capital projects throughout the City.

The City’s major proprietary fund is as follows:

Golf Course – This fund accounts for the activities of the SilverRock Golf Resort.

Other fund types of the City are as follows:

Special Revenue Funds – These funds account for the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects.

Capital Projects Funds – These funds account for financial resources that are restricted, committed, or assigned to expenditures for capital outlay.

Debt Service Fund – This fund accounts for the servicing of long-term debt. 453 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Internal Service Funds
Equipment Replacement Fund – This fund accounts for equipment and vehicle maintenance and replacement services provided to other departments on a cost-reimbursement basis.

Information Technology Fund – This fund is used to account for the acquisition for computer equipment, maintenance, and services to support information systems within the City. Costs are reimbursed by the benefiting departments.

Park Equipment and Facilities Fund – This fund is used to account for the purchase and replacement of City owned and operated park equipment and facilities. Costs are reimbursed by the benefiting departments.

Insurance Fund – This fund accounts for City-wide insurances: liability, property, earthquake, workers compensation and risk management. Expenses are shared among departments on an allocation basis.

Fiduciary Funds
Pension (and Other Employee Benefits) Trust Fund – This fund accounts for the activities of the Supplemental Pension Savings Plan, which accumulates resources for pension benefit payments to qualified government employees.

Private-Purpose Trust Fund – This fund accounts for the assets and liabilities of the Successor Agency to the Former Redevelopment Agency and its allocated revenue to pay estimated installment payments of enforceable obligations until obligations of the Former Agency are paid in full and assets have been liquidated.

Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Equity
Cash and Investments
For financial reporting purposes, investments are adjusted to their fair value. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments.

The City pools cash and investments of all funds, except for assets held within the Section 115 trust and amounts held by fiscal agents. Each fund’s share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various funds based on each fund’s month end cash and investment balance.

Cash and Cash Equivalents
For purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Cash equivalents also represent the proprietary fund’s share in the City’s cash and investment pool. Cash equivalents have an original maturity date of three months or less from the date of purchase. For purposes of the statement of cash flows, the entire balance of cash and investments on the combined balance sheet for the proprietary funds is considered cash and cash equivalents.

Lease Receivable
Lease receivable is recorded by the City as the present value of future lease payments expected to be received from the lessee during the lease term, reduced by any provision for estimated uncollectible amounts. Lease receivables are subsequently reduced over the life of the lease as cash is received in the applicable reporting period. The present value of future lease payments to be received are discounted based on the interest rate the City charges the lessee.
454 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Restricted Section 115 Trust Cash and Investments
All assets in the Section 115 Trust are irrevocably dedicated to funding obligations of the City’s pension beneficiaries, other post-employment beneficiaries or costs of administering the Trust. The funds are not considered plan assets of either the pension plan or OPEB plan and are therefore considered restricted assets of the City.

Inventory
Inventory is valued at cost using the first in/first out (FIFO) method. The City uses the consumption method of accounting for inventories.

Prepaid Costs
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. The City utilizes the consumption method, in which prepaid items are accounted for in the period that the benefit was received.

Capital Assets
Capital assets (including infrastructure) are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist. Contributed capital assets are valued at their acquisition value at the date of the contribution. Generally, capital asset purchases in excess of $5,000 are capitalized if they have an expected useful life of three years or more.

Capital Assets include public domain (infrastructure) consisting of certain improvements including roads, streets, sidewalks, medians, and storm drains.

Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method in the government-wide financial statements and in the fund financial statements of the proprietary funds. Depreciation is charged as an expense against operations and accumulated depreciation is reported on the respective balance sheet.

The following schedule summarizes capital asset useful lives:

Lease assets are recognized at the lease commencement date and represent the City’s right to use an underlying asset for the lease term. Leased assets are measured at the initial value of the lease liability plus any payments made to the lessor before commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term, plus any initial direct costs necessary to please the lease asset into service. Right to use leased assets are amortized over the shorter of the lease term or useful lives of the underlying asset using the straight-line method. The amortization period varies from 3 to 5 years.

Subscription IT assets are recognized at the subscription commencement date and represent the City’s right to use the underlying IT asset for the subscription term. Subscription IT assets are measured at the initial value of the subscription liability plus any payments made to the vendor at the commencement of the subscription term, less any subscription incentives received from the vendor at or before the commencement of the subscription term, plus any capitalizable initial implementation costs necessary to place the subscription asset into service. Subscription IT assets are amortized over the shorter of the subscription term or useful life of the underlying asset using the straight line method. The amortization period varies from 3 to 5 years.

Buildings and improvements 10-30 years
Equipment and furniture 3-20 years
Vehicles 5-10 years
Infrastructure 10-50 years
Software 5-10 years
Right to use leases assets Shorter of useful life or lease or subscription term 455 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Property Taxes
Under California law, property taxes are assessed and collected by the counties up to 1 percent of assessed value, plus other increases approved by the voters. The property taxes are recorded initially in a pool and are then allocated to the cities based on complex formulas. Accordingly, the City of La Quinta accrues only those taxes that are received from the County within sixty days after year-end.

Deferred Outflows/Inflows of Resources
In addition to assets, the statements of net position and the governmental fund balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. Governmental activities recorded deferred outflows of resources related to pensions and other post-employment benefits. See Notes 9 and 11 for more information about deferred outflows of pensions and post-employment benefits, respectively. The Private Purpose Trust Fund- Successor Agency of the former RDA recorded deferred outflows of resources related to debt refunding. See Note 17 for more information on the deferred outflows of resources related to debt refunding.

In addition to liabilities, the statements of net position and governmental fund balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

The City has reported two items on the governmental fund balance sheet that qualify for reporting in this category.

The first is unavailable revenues that were not received within the City’s availability period. These amounts are deferred and recognized as inflows of resources in the period that the amounts become available. At the government-wide statements, this item is eliminated and recognized as revenue in the period earned since “availability” of resources is not a criteria used in government-wide statements. The second item is a deferred inflow related to leases where the City is the lessor. The deferred inflows of resources related to leases is recognized on a straight line basis as an inflow of resources (revenue) over the term of the lease. Additionally, governmental activities recorded deferred inflows of resources related to pensions and OPEB. See Notes 9 and 11 for more information about deferred inflows of pensions and post-employment benefits, respectively.

Compensated Absences
Vacation and sick time are vested on a percentage based on number of years employed at the City. Maximum accumulation of sick and vacation is 40 and 60 days, respectively.

Upon termination or retirement, permanent employees are entitled to receive compensation at their current base salary for all unused vacation leave. If an employee terminates with a minimum of two years’ service, the employee is entitled to receive 25 percent of the value of his unused sick leave. The percentage increases by 25 percent for each five-year period until the employee is entitled to 100 percent of the value of their unused sick leave. This will occur upon the completion of twenty years of continuous employment. The General Fund resources are used to pay for the accumulated benefits to employees.

Long-Term Obligations
In the government-wide financial statements and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.

Lien date January 1
Levy date July 1
Due dates November 1 and February 1
Collection dates December 10 and April 10
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CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources.

Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Lease liabilities represent the City’s obligation to make lease payments arising from the lease. Lease liabilities are recognized at the lease commencement date based on the present value of future lease payments expected to be made during the lease term. The present value of lease payments is discounted based on a borrowing rate determined by the City.

Subscription liabilities represent the City’s obligation to make subscription payments arising from the subscription contract. Subscription liabilities are recognized at the subscription commencement date based on the present value of future subscription payments expected to be made during the subscription term. The present value of subscription payments is discounted based on a borrowing rate determined by the City.

Fund Balance
In the fund financial statements, governmental funds report the following fund balance classifications:

Nonspendable includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.

Restricted includes amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws of regulations of other governments or (b) by law through constitutional provisions or enabling legislation.

Committed includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City’s highest authority, the City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is by a resolution.

Assigned includes amounts that are constrained by the City’s intent to be used for specific purposes but are neither restricted nor committed. City Council is authorized to assign amounts to a specific purpose. The City Council authorizes assigned amounts for specific purposes pursuant to the policy-making powers granted through a resolution.

Unassigned includes the residual amounts that have not been restricted, committed, or assigned to specific purposes. The general fund is the only fund that reports a positive unassigned fund balance.

Fund Balance Flow Assumptions – governmental fund financial statements Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied.

It is the City’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance.

Unassigned fund balance is applied last.

Net Position Flow Assumption – government-wide and proprietary fund financial statements Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted net position to have been depleted before unrestricted net position is applied. 457 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and deferred outflows/inflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.

New Accounting Pronouncements
Adopted in the Current Year
GASB Statement No. 100 – In June 2022, the GASB issued Statement No. 100, Accounting Changes and Error Corrections—An Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The requirements of this Statement are effective for accounting changes and error corrections made in fiscal years beginning after June 15, 2023, and all reporting periods thereafter. The City has not determined the effect on the financial statements.

Effective in Future Fiscal Years
The City is currently evaluating the potential impact of the following issued, but not yet effective, accounting standards.

GASB Statement No. 101 – In June 2022, the GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter. The City has not determined the effect on the financial statements.

GASB Statement No. 102 – In December 2023, the GASB issued Statement No. 102, Certain Risk Disclosures.

The objective of this Statement is to provide users of government financial statements with essential information about risks related to a state or local government’s vulnerabilities due to the variety of risks they face. The requirements of this Statement are effective for fiscal years beginning after June 15, 2024. The City has not determined the effect on the financial statements.

GASB Statement No. 103 – In April 2024, the GASB issued Statement No. 103, Financial Reporting Model Improvements. The objective of this statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. The requirements of this Statement are effective for fiscal years beginning after June 15, 2025. The City has not determined the effect on the financial statements.

GASB Statement No. 104 – In September 2024, the GASB issued Statement No. 104, Disclosure of Certain Capital Assets. The objective of this statement is to require certain types of capital assets to be disclosed separately in the capital assets note disclosures required by Statement 34. Lease assets recognized in accordance with Statement No. 87, Leases, and intangible right-to-use assets recognized in accordance with Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, should be disclosed separately by major class of underlying asset in the capital as-sets note disclosures. Subscription assets recognized in accordance with Statement No. 96, Subscription-Based Information Technology Arrangements, also should be separately disclosed.

In addition, this Statement requires intangible assets other than those three types to be disclosed separately by major class.
458 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 2: CASH AND INVESTMENTS
Cash and investments as of June 30, 2024, are classified in the accompanying financial statements as follows:

Investments Authorized by the California Government Code and the City’s Investment Policy The table below identifies the investment types that are authorized by the California Government Code and the City’s investment policy. The table also identifies certain provisions of the California Government Code (or the City’s investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk.

This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.

Investments Authorized by the City Section 115 Trust
Investments of the Trust are governed by the provisions of the City of La Quinta Section 115 Trust Agreement, rather than the general provisions of the California Government Code or the City’s investment policy. Investments authorized for funds held in the Section 115 Trust include Equity and Fixed Income Mutual Funds. The strategic range allowed for Equity and Fixed Income Mutual Funds is 20%-40% and 50%-80%, respectively. There are no limitations on the maximum amount that can be invested in one issuer or the maximum maturity of an investment. .

Statement of Net Position
Cash and investments 268,178,636 $
Restricted cash and investments 5,666,575
Statement of Fiduciary Net Position
Cash and investments 15,746,151
Cash and investments with fiscal agent 1,670
Total cash and investments 289,593,032 $
Cash and investment as of June 30, 2024, consist of the following:

Cash on hand $ 3,300
Deposits with financial institutions 44,553,114
Investments 245,036,618
Total cash and investments 289,593,032 $
Investment Types
Maximum
Maturity
Maximum
Percentage
Allowed
Maximum
Investment
U.S. Treasury Obligations 5 years N/A N/A
U.S. Agency Securities 5 years N/A 20 million
Local Agency Bonds 5 years N/A N/A
California Local Agency Obligations 5 years N/A N/A
Commercial Paper 270 days 40% 10% of any single issuer
Certificates of Deposit 5 years 30% 250,000
Negotiable Certificates of Deposits 5 years 30% 250,000 Corporate Notes 5 years 30% 5 million
Investment Pools (Riverside County Pool) N/A N/A N/A
Money Market Mutual Funds N/A 20% 10% of City funds per fund Local Agency Investment Fund (LAIF) N/A N/A LAIF Limit
Investment Agreements 92 days 20% N/A
459 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.

Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates.

One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of short term and long-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:

Investment Type Total
1 year
Or Less 1 to 3 years 3 to 5 years
Certificates of Deposit $ 38,277,993 $ 11,183,442 $ 12,789,987 $ 14,304,564 Federal agency securities
Federal Farm Credit Bank 19,024,300 3,922,250 2,299,920 12,802,130 Federal National Mortgage Association 12,736,025 3,959,185 7,781,510 995,330 Federal Home Loan Mortgage Corp 9,006,243 960,380 5,053,833 2,992,030 Federal Home Loan Bank 19,195,385 4,711,526 9,598,270 4,885,589 U.S. Treasurey Notes 43,344,770 9,430,285 16,255,513 17,658,973 Corporate Notes 2,429,645 - 464,065 1,965,580
Money Market Mutual Funds 5,768,589 5,768,589 - -
Local Agency Investment Fund (LAIF) 21,909,996 21,909,996 - - CAMP 52,022,811 52,022,811 - -
Riverside County Pool 15,652,616 15,652,616 - -
Section 115 Trust
Equity Mutual Funds 5,666,575 5,666,575 - -
Held by Fiscal Agent
Money Market Mutual Funds 1,670 1,670 - -
Total $ 245,036,618 $ 135,189,325 $ 54,243,098 $ 55,604,196 Remaining Maturity (in Years)
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CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.

The City's investment policy limits investments in commercial paper and money market mutual funds to those rated the highest rating as rated by Moody’s or Standard and Poor’s (S&P). Presented below are the S&P ratings as of year-end:

Investments in any one issuer that represent 5 percent or more of total City’s investments are as follows:

Disclosures Relating to Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The City utilizes delivery versus payment for investment purchases, which requires investments to be received prior to delivery of cash payment.

The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110 percent of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150 percent of the secured public deposits, or by letters of credit issued by the Federal Home Loan Bank of San Francisco having a value of 105 percent of the secured public deposits.

Investment Type Total Aaa Aa
Federal Agency Securities $ 59,961,953 $ 59,961,953 - $ Corporate Notes 2,429,645 464,065 1,965,580
CAMP 52,022,811 $ 52,022,811
Money Market Mutual Funds 5,768,589 5,768,589 -
Total 120,182,998 $ 58,255,465 $ 61,927,533
Exempt from Credit Risk Disclosure:

U.S. Treasury Notes 43,344,770
Not Rated:

Certificates of Deposit 38,277,993
Local Agency Investment Pool 21,909,996
Riverside County Pool 15,652,616
Section 115 Trust:

Equity Mutual Funds 5,666,575
Held by Fiscal Agent:

Money Market Mutual Funds 1,670
Total Investments $ 245,036,618
Issuer Investment Type
Reported
Amount
Percent of
Portfolio
Federal National Mortgage Association Federal Agency Securities $ 12,736,025 5.20% Federal Farm Credit Bank Federal Agency Securities 19,024,300 7.76% Federal Home Loan Bank Federal Agency Securities 19,195,385 7.83% 461 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
As a public funds depository, BMO Bank N.A. maintains a public funds deposit collateralization program that is designed to comply with all applicable statutes and regulations governing public funds deposits, including pledge and perfection of collateral. Accounts holding public funds are labeled as such and trigger collateralization.

Collateral needs are met based on the prior day close of business. However, same-day collateral requests may be accommodated upon request.

Investment in Riverside County Pool
The City is a voluntary participant in the Riverside County Pooled Investment Fund that is regulated by California Government Code Section 53646 and managed by the Riverside County Treasurer. The City’s investment in this pool is reported in the accompanying financial statements of net position and prepared using the accrual basis of accounting. Investments are reported at fair value. The balance available for withdrawal is based on the accounting records maintained by the County. The Riverside County Pooled Investment Fund is not registered with the Securities and Exchange Commission and is not rated.

Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relations to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Deposits and withdrawals are made on the basis of $1 and not fair value.

Accordingly, the City’s measurement of fair value of its investment with LAIF is based on uncategorized inputs, not defined as a level 1, level 2, or level 3 input. LAIF is not registered with the Securities and Exchange Commission and is not rated.

Investment in California Asset Management Program
The City is a voluntary participant in the California Asset Management Program (CAMP) that is regulated by the California Government Code Section 53601 (p) and managed by a Board of Trustees comprised of finance directors and treasurers of California public agencies that are members of the Joint Powers Authority. The City’s investment in this pool is reported in the accompanying financial statements of net position and prepared using the accrual basis of accounting. Investments are reported at net asset value on the basis of $1 and not fair value, accordingly, CAMP is measured on uncategorized inputs similar to LAIF. The balance available for withdrawal is based on the accounting records maintained by CAMP. CAMP is not registered with the Securities and Exchange Commission. 462 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
Fair Value Measurements
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset.

Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. Investments categorized as Level 2 are valued using the market approach and quoted market prices.

The City has the following recurring fair value measurements as of June 30, 2024:

NOTE 3: NOTES RECEIVABLE
In September 1994, the former redevelopment agency sold certain real property to LINC Housing for $2,112,847.

The property was used to construct single-family homes and rental units to increase the City's supply of low- and moderate-income housing. The note bears interest at 6 percent per annum and is due in full on June 15, 2029. On February 1, 2012, this receivable was transferred to the Housing Authority, which took over the housing function of the former redevelopment agency upon dissolution. As of June 30, 2024, the outstanding principal balance is $2,035,388 and the outstanding interest is $3,498,652.

In February 2011, the former redevelopment agency entered into Disposition and Development Agreement with Coral Mountain Partners L.P. (“Coral Mountain”) to fund up to $29,000,000 for the construction of a low- and moderate-income apartment complex with an estimated completion date of the apartment complex of March 2014.

The former redevelopment agency’s $29,000,000 loan is evidenced by a Promissory Note executed by Coral Mountain (“Note”). Interest on the outstanding note amount will bear simple interest of 1 percent. Principal and interest will be repaid on or before May 1st of each year from annual residual receipts as defined in the Note once the project is completed and may be repaid early if the property is refinanced, or if the property is transferred to another entity. On February 1, 2012, this receivable was transferred to the Housing Authority which took over the housing function of the former redevelopment agency upon dissolution.

As of June 30, 2024, the outstanding principal balance is $20,357,692 and the outstanding interest balance is $2,185,268.

Other notes receivable as of February 1, 2012, included in the Housing Authority which took over the housing function of the former redevelopment agency upon dissolution totaled $21,297 at June 30, 2024.

Total Level 1 Level 2
Investments
U.S. Treasury $ 43,344,770 $ 43,344,770 $ -
Federal Agency Securities 59,961,953 - 59,961,953
Corporate Notes 2,429,645 - 2,429,645
Certificates of Deposit 38,277,993 - 38,277,993
Total leveled investments 144,014,361 43,344,770 100,669,591 Investments with uncategorized inputs
Money Market Mutual Funds 5,768,589
Local Agency Investment Fund 21,909,996
CAMP 52,022,811
Riverside County Pool 15,652,616
Section 115 Trust
Equity Mutual Funds 5,666,575
Held by Fiscal Egent
Money Market Mutual Funds 1,670
Total investments $ 245,036,618
463 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 4: CAPITAL ASSETS
Capital asset activity for governmental activities for the year ended June 30, 2024, is as follows:

Depreciation and amortization expense was charged to the following functions in the Statement of Activities:

Balance Balance
July 1, 2023 Additions Deletions Transfers June 30, 2024 Governmental activities:

Capital assets, not being depreciated/amortized
Land $ 83,717,732 $ 3,584,438 $ (21,600) $ 87,280,570 - $ Right of way 286,074,348 - - 286,074,348 -
Construction-in-progress 8,263,007 21,063,928 (3,040,998) - 26,285,937 Total capital assets, not being depreciated/amortized 378,055,087 24,648,366 (21,600) (3,040,998) 399,640,855 Capital assets, depreciable
Buildings and improvements 81,413,491 1,292,809 (61,000) 82,645,300 - Equipment and furniture 3,602,381 703,841 (195,598) 4,110,624 - Vehicles 2,266,095 253,304 (140,273) 2,379,126 -
Infrastructure 268,323,682 25,155 3,040,998 - 271,389,835 Right to use lease and subscription assets
Building 78,226 65,776 (78,226) - 65,776
Equipment 38,118 49,487 (38,118) - 49,487
Vehicles 121,958 (100,065) - - 21,893
Subscriptions 1,061,781 140,635 (184,138) 1,018,278 -
Total right to use lease and subscription assets 1,300,083 255,898 (400,547) 1,155,434 - Total depreciable capital assets 356,905,732 2,531,007 (797,418) 3,040,998 361,680,319 Less accumulated depreciation
Buildings and improvements 45,058,676 2,424,405 - 47,483,081 - Equipment and furniture 2,454,644 352,163 (195,598) 2,611,209 - Vehicles 984,539 394,614 (22,237) 1,356,916 -
Infrastructure 152,627,748 6,917,199 - 159,544,947 -
Total accumulated depreciation 201,125,607 10,088,381 (217,835) 210,996,153 - Less right to use lease and subscription assets accumulated amortization Building 67,363 32,790 (78,228) - 21,925
Equipment 21,582 10,109 (24,587) - 7,104
Vehicles 99,714 17,472 (100,065) - 17,121
Subscriptions 469,460 421,729 (184,141) - 707,048
Total accumulated amortization 658,119 482,100 (387,021) - 753,198 Total accumulated depreciation and amortization 201,783,726 10,570,481 (604,856) 211,749,351 - Total capital assets being depreciated/amortized, net 155,122,006 (8,039,474) (192,562) 3,040,998 149,930,968 Total Governmental Activities $ 533,177,093 $ 16,608,892 $ (214,162) $ 549,571,823 - $ General governments $ 3,209,394
Public safety 3,882,290
Planning and development 658,780
Community services 885,170
Public works 328,913
Internal service funds 1,605,934
$ 10,570,481
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CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 4: CAPITAL ASSETS (CONTINUED)
Capital asset activity for business-type activities for the year ended June 30, 2024, is as follows:

Depreciation and amortization expense was charged to following functions in the Statement of Activities:

NOTE 5: CHANGES IN LONG-TERM LIABILITIES
The following is a summary of changes in governmental long-term liabilities of the City for the fiscal year ended June 30, 2024:

Compensated absences have been typically liquidated from the General Fund.

Balance Balance
July 1, 2023 Additions Deletions June 30, 2024
Business-Type activities
Capital assets, not being depreciated
Land $ 39,712,955 $ - $ 39,712,955 - $
Capital assets, being depreciated
Buildings and improvements 6,636,465 - 6,636,465 -
Equipment and furniture 1,670,293 - 1,670,293 -
Vehicles - 946,816 946,816 -
Software 20,255 - - 20,255
Total capital assets, being depreciated 8,327,013 946,816 9,273,829 - Right to use lease assets, being amortized
Equipment 796,621 (313,547) - 483,074
Total depreciable capital assets 9,123,634 946,816 (313,547) 9,756,903 Less accumulated depreciation for
Buildings and improvements 4,152,370 214,544 4,366,914 - Equipment and furniture 1,620,383 33,443 1,653,826 -
Vehicles - 79,473 79,473
Software 20,255 - - 20,255
Total accumulated depreciation 5,793,008 327,460 6,120,468 - Accumulated amortization, equipment 485,536 189,988 (313,547) 361,977 Total accumulated depreciation and amortization 6,278,544 517,448 (313,547) 6,482,445 Total capital assets being depreciated/amortized, net 2,845,090 429,368 3,274,458 - Total Business - Type Activities $ 42,558,045 $ 429,368 $ 42,987,413 - $ Golf Course $ 517,448
Balance at
July 1, 2023 Additions Deletions
Balance
June 30, 2024
Due within
One Year
Governmental Activities
Compensated absences payable 1,154,090 $ 1,185,597 $ 1,154,090 $ 1,185,597 $ 305,117 Leases 53,111 38,684 - 91,795 47,667
Financed purchases 551 - 551 - -
Subscription IT liabilities 495,674 140,635 354,000 282,309 194,001 $ 1,364,916 1,703,426 $ 1,508,641 $ 1,559,701 546,785 $ 465 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 5: CHANGES IN LONG-TERM LIABILITIES (CONTINUED)
Leases
The City has entered into multiple lease agreements for buildings, vehicles, and equipment. The City is required to make principal and interest payments through 2025. The lease agreements have interest rates between 1.5% to 4% based on the City’s estimated incremental borrowing rate at the inception of the lease. As of June 30, 2024, the net right to use asset balance is $91,006 and the lease liability balance is $91,765. The current year amortization and interest expense associated with the lease activities was $60,371 and $506.

Remaining principal and interest payments on the lease are as follows:

Subscription IT Liabilities
The City has entered into several Subscription-Based Information Technology Arrangements (SBITAs) for virtual permitting software, employee hiring subscription, website design & implementation software, HR and finance software, and Microsoft office software. The City is required to make principal and interest payments through June 2027. The subscription liability was valued using discount rates between 3.87% and 4.14% based on the City incremental borrowing rate at the inception of the subscriptions. As of June 30, 2024, the net right to use asset balance is $311,230 and the lease liability balance is $282,309. The current year amortization and interest expense associated with the lease activities was $421,729 and $10,759.

Principal and interest payments on the SBITAs are as follows:

The following is a summary of changes in business-type activities long-term liabilities of the City for the fiscal year ended June 30, 2024:

Year Ending June 30, Principal Interest
2025 $ 47,667 $ 2,347
2026 20,986 1,012
2027 10,060 608
2028 10,419 247
2029 2,663 3
$ 91,795 $ 4,217
Year Ending June 30, Principal Interest
2024 $ 194,001 $ 11,199
2025 43,292 3,516
2026 45,016 1,792
$ 282,309 $ 16,507
466 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 5: CHANGES IN LONG-TERM LIABILITIES (CONTINUED)
The City Golf Course fund has entered into multiple lease agreements for equipment. The City is required to make principal and interest payments through 2027. The lease agreements have interest rates between 1.5% to 4% based on the City’s estimated incremental borrowing rate at the inception of the lease. As of June 30, 2024, the net right to use asset balance is $121,097 and the lease liability balance is $123,859. The current year amortization and interest expense associated with the lease activities was $189,988 and $6,396.

Remaining principal and interest payments on the leases are as follows:

NOTE 6: Leases – Lessor Activities
The City has accrued receivable for three land leases. The remaining receivable for these leases was $1,334,093 for the year ended June 30, 2024. Deferred inflows related to these leases were $1,221,045 as of June 30, 2024.

Interest revenue recognized on these leases was $42,419 for the year ended June 30, 2024. Principal receipts of $98,262 were recognized during the fiscal year. The interest rate on the leases was 3 percent. Final receipt is expected in fiscal year 2043.

NOTE 7: INTERFUND RECEIVABLES AND PAYABLES
A. Investments Authorized by the California Government Code and the City’s Investment Policy The composition of current interfund receivable and payable balances is as follows:

Interfund balances reflect short term borrowings for deficit cash balances at June 30, 2024.

Year Ending June 30, Principal Interest
2025 $ 72,563 $ 2,821
2026 32,028 1,417
2027 19,268 241
$ 123,859 $ 4,479
Year Ending June 30, Principal Interest
2025 $ 105,696 $ 39,428
2026 113,401 36,077
2027 121,478 32,485
2028 129,866 28,716
2029 138,809 24,530
2030-2034 299,385 80,474
2035-2039 205,691 50,535
2040-2044 219,767 14,299
$ 1,334,093 $ 306,544
467 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 8: INTERFUND TRANSFERS
a. $9,585,185 was transferred from the General Fund to the Capital Improvement Fund to fund various capital projects.
b. $4,781,231 was transferred to the Capital Improvement Fund from various non-major funds to support various capital project operations and expenses.
c. $3,325,049 was transferred from the General Fund to various non-major funds to support various administrative operations and expenses within the City.
d. $1,466,000 was transferred from the General Fund to the Golf Course Fund to subsidize operations. e. $1,387,009 was transferred from the General Fund to the Housing Authority Fund to support administrative operations.

NOTE 9: DEFINED BENEFIT PENSION PLAN
Miscellaneous Plan
Plan Description
All qualified employees are eligible to participate in the City’s Miscellaneous Employee Pension Plan, a cost- sharing multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS). Benefit provisions under these plans are established by State statute and City resolution.

CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provision, assumption and membership information. Copies of the report can be found on the CalPERS website.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment.

General Fund
Non-major
Governmental
Internal
Service Funds Total
Housing Authority 1,387,009 $ - $ - $ 1,387,009 $
Capital Improvements 9,585,185 4,781,231 350 14,366,766 Nonmajor Governmental 3,325,049 - - 3,325,049
Golf Course Fund 1,466,000 - - 1,466,000
Total 15,763,243 $ 4,781,231 $ 350 $ 20,544,824 $
Transfers In
Transfer Out
468 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 9: DEFINED BENEFIT PENSION PLAN (CONTINUED)
Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: The Basic Death Benefit, the 1959 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The Plan’s provisions and benefits in effect at June 30, 2024 are summarized as follows:

Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions are determined annually on an actuarial basis as of June 30th by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

Employer contributions to the pension plan were $1,683,062 for the year ended June 30, 2024.

Pension Liabilities, Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of June 30, 2024, the City reported a liability of $2,699,409 for its proportionate share of the collective net pension liability. The net pension liability was measured as of June 30, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2022.The City’s proportion of the collective net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The City’s proportion of the collective net pension liability as of June 30, 2023 and 2024 is as follows:

For the year ended June 30, 2024, the City recognized pension expense of $3,140,594.

Tier I Tier II PEPRA
Before On or After On or After
Hire date November 1, 2012 November 1, 2012 January 1, 2013 Benefit formula 2.5% @55 2% @60 2% @62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 and up 50 and up 52 and up
Monthly benefits, as a % of eligible compensation 2% to 2.5% 2% to 2.5% 1% to 2% Required employees contributions rates 8.00% 7.00% 6.75% Required employer contributions rates 12.200% 8.650% 7.590% Proportion - June 30, 2023 0.1173%
Proportion - June 30, 2024 0.0216%
Change - Increase (Decrease) -0.0957%
469 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 9: DEFINED BENEFIT PENSION PLAN (CONTINUED)
At June 30, 2024, the City reported deferred outflows and deferred inflows of resources related to pensions as follows:

The $1,683,062 reported as deferred outflows of resources resulting from contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2025.

Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Actuarial Methods and Assumptions Used to Determine Total Pension Liability For the measurement period ended June 30, 2023 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2022 total pension liability. The total pension liability in the June 30, 2022 actuarial valuation was determined using the following actuarial methods and assumptions:

Deferred Outlows
of Resources
Deferred Inflows
of Resources
Pension contributions subsequent to measurement date 1,683,062 $ - $ Changes in assumptions - 162,975
Differences between expected and actual experience 137,900 21,392 Net difference between projected and actual earnings on pension plan investments 437,058 - Change in employer's proportion 7,671,120 -
Difference between the city's contribution and proportionate share of contributions 8,940,584 12,815 Total $ 7,705,327 11,361,579 $
Deferred Outflows/
Year Ended June 30, (Inflows) of resources
2025 $ 495,553
2026 583,536
2027 881,561
2028 12,540
Total $ 1,973,190
Miscellaneous
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry - Age Normal Cost Method
Discount Rate 6.90%
Inflation 2.30%
Projected Salary Increase Varies by Entry Age and Service Mortality Rate Table Derived using CalPERS' Membership Data for all Fund Post - retirement benefit increase Contract COLA up to 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power applies
470 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 9: DEFINED BENEFIT PENSION PLAN (CONTINUED)
Discount Rate
The discount rate used to measure the total pension liability was 6.90 percent. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current contribution rate and that the City’s contributions will be made at rates equal to the difference between actuarially determined contributions rates and the employee rate. Based on those assumptions, each pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees.

Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated and, combined with risk estimates, are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return.

These geometric rates of return are summarized in the following table:

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net position liability for each Plan, calculated using the discount rate for each Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percent point lower or 1 percent higher than the current rate:

Pension Plan Fiduciary Net Position
Detailed information about the Plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

Strategic
Allocation Real Return
Global equity - cap weighted 30.00% 4.45%
Global equity -non-cap-weighted 12.00% 3.84%
Private equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emergind Market Debt 5.00% 2.48%
Private equity 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100%
Asset Class
Discount
Rate -1%
(5.90%)
Current
Discount Rate
(6.90%)
Discount
Rate +1%
(7.90%)
Net Pension Liability (Asset) 11,295,551 $ 2,699,409 $ (4,375,955) $ 471 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 10: DEFINED CONTRIBUTION PLAN
The Supplemental Pension Savings Plan is a defined contribution pension plan established by the City to provide retirement excess benefits to general employees of the City. At June 30, 2024, there was one plan member. There are no required contributions by plan members. During the 2023-2024 fiscal year the City made no contributions to fund the Supplemental Pension Savings Plan
NOTE 11: OTHER POST EMPLOYMENT BENEFIT PLAN (OPEB)
Plan Description
The City’s Retiree Health Plan is a single-employer defined benefit healthcare plan. The City contributes on behalf of all eligible retirees’ $149/month for the calendar year 2022 and $151/month for calendar year 2023, increased in all future years according to the rate of medical inflation. These benefits are provided per contract between the City and the employee associations. A separate financial report is not available for the plan.

The City participates in the California Employers’ Retiree Benefit Trust (CERBT) for the purpose of accumulating funding for OPEB obligations. The CERBT is a Section 115 Trust and is an agent multiple employer plan for those electing to prefund OPEB obligations.

Benefits Provided
Retirees are eligible for medical benefits if they retire at age 50+, have 5+ years of service within CalPERS, and were enrolled in the CalPERS health system at retirement. The City provides PEMHCA minimum for each subscriber, regardless of elected coverage tier.

Employees Covered by Benefit Terms
At June 30, 2022, the most recent valuation date, the following current and former employees were covered by the benefit terms of the plan:

Contributions
The City makes contributions to the plan based on an actuarially determined rate. Employees are not required to contribute to the plan. For the year ended June 30, 2024, the City’s cash contributions to the plan including the implied subsidy were $56,838.

Active employees 97
Inactive employees or beneficiaries currently receiving benefits 16 Total 113
472 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 11: OTHER POST EMPLOYMENT BENEFIT PLAN (OPEB) (CONTINUED) Net OPEB Liability/(Asset)
Actuarial Assumptions – The net OPEB liability/(asset) in the June 30, 2022, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

Mortality rates were based on the CalPERS November 2021 Experience Study for Public Agency Miscellaneous Plans.

Changes of Assumptions
Healthcare trend rates were decreased from a rate of 6.7% decreasing gradually to an ultimate rate of 3.8% to 6.5% decreasing gradually to an ultimate rate of 3.73% for the valuation as of June 30, 2022.

Discount Rate
The discount rate used to measure the total OPEB liability was 5.50 percent for the Plan. The projection of cash flows used to determine the discount rate assumed that the City contribution will be made at rates equal to the actuarially determined contribution rates.

Changes in Net OPEB Asset:

The changes in the net OPEB liability/(asset) for the Plan as of June 30, 2024 are as follows:

Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions
Discount Rate 5.50%
Inflation 2.30%
Investment Rate of Return 5.50%
Mortality (1)
Healthcare Trend Rate 6.5% for fiscal year 2023,
gradually decreasing to an
ultimate rate of 3.73% in fiscal
year 2075.
(1) Derived using CalPERS Membership Date for all Funds Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability/(Asset)
Balance at June 30, 2023 1,415,511 $ 1,792,999 $ (377,488) $ Changes in the year
Service cost 85,632 - 85,632
Interest 80,987 - 80,987
Differences between expected - - -
and actual experience
Changes of assumptions (1,901) - (1,901)
Net investment income - 63,830 (63,830)
Employer contributions - 58,070 (58,070)
Benefit payments (58,070) (58,070) -
Administrative expense - (514) 514
Net changes 106,648 63,316 43,332
Balance at June 30, 2024 $ 1,522,159 $ 1,856,315 $ (334,156) 473 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 11: OTHER POST EMPLOYMENT BENEFIT PLAN (OPEB) (CONTINUED) Sensitivity of the Net OPEB Asset to Changes in the Discount Rate The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (4.50 percent) or 1-percentage-point higher (6.50 percent) than the current discount rate:

For the year ended June 30, 2024, the City recognized OPEB expense of $56,431. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

The $56,838 reported as deferred outflows of resources related to OPEB resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability for the fiscal year ending June 30, 2025. Other amounts reported as deferred outflows or deferred inflows of resources related to OPEB will be recognized in as OPEB expense as follows:

Discount
Rate -1%
(4.50%)
Current
Discount Rate
(5.50%)
Discount
Rate +1%
(6.50%)
Net OPEB Liability/(Asset) (139,708) $ (334,156) $ (496,807) $ 1% Decrease
(5.5% decreasing
to 2.7%)
Current Trend Rate
(6.5% decreasing
to 3.7%
1% Increase
(7.5% decreasing
to 4.7%)
Net OPEB Liability/(Asset) $ (544,608) $ (334,156) $ (70,984) Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
OPEB contributions subsequent to measurement date $ 56,838 $ - Changes in assumptions 47,731 24,053
Difference between expected and actual liability 86,518 500,146 Net difference between projected and investment earnings 155,087 - Total $ 346,174 $ 524,199
Deferred Outflows/
Year Ended June 30, (Inflows) of resources
2025 $ (8,991)
2026 (10,909)
2027 37,625
2028 (38,500)
2029 (45,357)
Thereafter (168,731)
Total $ (234,863)
474 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 12: SECTION 115 TRUST
In the fiscal year 2019, the City Council approved the creation of a Section 115 Trust Agreement with U.S Bank National Association, and Public Agency Retirement Services (PARS), Trust Administrator. The Section 115 Trust was established as a means to set aside monies to fund the City’s pension and OPEB obligations.

Contributions to the Section 115 Trust are irrevocable, the assets are dedicated to providing benefits to plan members, and the assets are protected from creditors of the City. The purpose of the creation of the section 115 Trust was to address the City’s pension obligations by accumulating assets to reduce the net pension liability.

However, in accordance with generally accepted accounting principles, the assets in the Section 115 Trust are not considered to have present service capacity as plan assets and are therefore considered restricted assets of the City rather than pension plan assets. Accordingly, the Section 115 Trust’s assets are recorded as restricted for pension benefits in the City’s General Fund rather than assets of the pension plan during the measurement of the net pension liability. The assets held in trust will be considered pension plan assets at the time they are transferred out of the Trust into the pension plan.

The balance in the Trust for the fiscal year ended June 30, 2024 was $5,666,575. The City currently funds its OPEB obligations through the CERBT program, and although the Section 115 Trust is able to accept OPEB funds, the City has no immediate plans to fund OPEB obligations through the Section 115 Trust.

NOTE 13: RISK MANAGEMENT
Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City of La Quinta is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 126 California public entities and is organized under a joint powers’ agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.

Self-Insurance Programs of the CJPIA
Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for self- insurance programs is based on actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool.

Primary Liability Program
Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers.

The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence.

Subsidence losses also have a $50 million per occurrence limit. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority’s website: https://cjpia.org/coverage/risk-sharing-pools/ 475 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 13: RISK MANAGEMENT (CONTINUED)
Workers’ Compensation
Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $75,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.

For 2023-24 the Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million.

Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members.

Purchased Insurance
Property Insurance – The City of La Quinta participates in the all-risk property protection program of the Authority.

This insurance protection is underwritten by several insurance companies. City of La Quinta property is currently insured according to a schedule of covered property submitted by the City of La Quinta to the Authority.

City of La Quinta property currently has all-risk property insurance protection in the amount of $88,131,428. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.

Special Event Tenant User Liability Insurance – The City of La Quinta further protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the City of La Quinta according to a schedule. The City of La Quinta then pays for the insurance. The insurance is facilitated by the Authority.

Earthquake and Flood Insurance – The City of La Quinta purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is part of the property protection insurance program of the Authority. City of La Quinta property currently has earthquake protection in the amount of $0. There is a deductible of 5% per unit of value with a minimum deductible of $100,000.

Crime Insurance – The City of La Quinta purchases crime insurance coverage in the amount of $1,000,000 with a $5,000 deductible. The fidelity coverage is provided through the Authority.

Pollution Legal Liability Insurance – The City of La Quinta participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of La Quinta. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million.

Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2023-2024.
476 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 14: FUND BALANCE
Fund Balance Classifications
At June 30, 2024, the governmental funds report the following fund balance classifications:

Fund Balance Commitments
In the governmental fund financial statements, committed reserves include:

Natural Disaster Emergency Reserves: These funds may be utilized for the preparation, recovery, and restoration of services before, during and/or after a natural disaster (such as flood, earthquake, etc.) as defined by City Code

2.20.020.

The target of $15,000,000 was determined by conducting a risk analysis of all City assets, insurance levels, and potential federal/state contributions towards disaster recovery efforts. For the year ended June 30, 2024, the City has committed $15,000,000 to this category.

Economic Downturn Reserves: These funds may be used in such instances as a declared national, state, or regional recession; loss of a major (top 10) revenue-generating business; or a natural disaster resulting in a significant decline in revenues. These reserves may also be used if overall revenues decrease, or expenditures increase more than 10% of the previous year’s actual revenues or expenditures.

The target of $13,000,000, was based on a long-term analysis of the revenue and expenditure flows (which included the financial impacts of the Great Recession, the loss of Redevelopment Agencies, and the COVID-19 pandemic) as well as the application of the Consumer Price Index (CPI) increases to the original base target. For the year ended June 30, 2024, the City has committed $13,000,000 to this category.

Total Total
Housing Disaster Capital Nonmajor Governmental
General Authority Recovery Improvement Funds Funds
Nonspendable
Land held for resale $ 5,403,652 $ - $ - $ - $ 5,403,652 - $ Prepaid costs 170,577 - - - 500 171,077
Advances to other funds 17,123,777 - - - 17,123,777 -
Total nonspendable 22,698,006 - - - 22,698,506 500
Restricted
General government - 441,350 - - 441,350 -
Public Safety - - - 845,858 - 845,858
Community services - - - 14,634,322 - 14,634,322
Planning and development 24,755,830 - - 4,398,228 - 29,154,058 Public works - - - 7,512,849 - 7,512,849
Capital projects - - - 11,626,051 - 11,626,051
Section 115 Trust 5,666,575 - - - 5,666,575 -
Total restricted 5,666,575 24,755,830 441,350 39,017,308 - 69,881,063 Committed
Natural Disaster Reserve 15,000,000 - - - 15,000,000 -
Economic Downturn Reserve 13,000,000 - - - 13,000,000 - Cash Flow Reserve 5,000,000 - - - 5,000,000 -
Capital Replacement Reserve 12,000,000 - - - 12,000,000 - Carryovers 900,000 - - - 900,000 -
Total committed 45,900,000 - - - 45,900,000 -
Assigned
Public safety 15,652,616 - - - 15,652,616 -
Sales Tax Reserve 32,985,374 - - - 32,985,374 -
Capital projects 21,666,520 - - - 21,666,520 -
Total assigned 70,304,510 - - - 70,304,510 -
Unassigned 65,216,616 - (2,184,447) - (1,914,354) 61,117,815 Total fund balances (deficits) $ 209,785,707 $ 24,755,830 $ 441,350 $ (2,184,447) $ 37,103,454 $ 269,901,894 477 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 14: FUND BALANCE (CONTINUED)
Cash Flow Reserves: These funds are maintained to have adequate cash on hand to account for the uneven receipt of revenue. For example, property tax accounts for a large percentage of annual revenue, the bulk of which is not remitted until December and May of each year.

The target for the Cash Flow Reserves is 10% of each year’s revenue budget, or a minimum of $5,000,000. For the year ended June 30, 2024, the City has committed $5,000,000 to this category.

Capital Improvement Reserves: These funds may be used for capital assets and infrastructure rehabilitation, improvement, and replacement.

The target of $12,000,000 is based on annual depreciation of assets and may be adjusted by the Consumer Price Index (CPI). For the year ended June 30, 2024, the City has committed $12,000,000 to this category.

Carryovers: These funds are items appropriated in a prior fiscal year that have yet to be spent. Carryovers committed to Fiscal Year 2023-2024 totaled $900,000 at June 30, 2024.

Assigned Fund Balance
The City has the following assigned fund balance shown on the balance sheet:

Assigned to public safety represents property tax accumulated and withheld by the County of Riverside to be used for fire protection, disaster preparedness, fire prevention, rescue, hazardous materials mitigation, technical rescue response, medical emergency services, and public service assists. The assigned fund balance related to this item as of June 30, 2024 is $15,652,616.

Assigned to capital projects is comprised of carryover balances for capital projects. The capital project carryover balances as of June 30, 2024 are $21,666,520. Accumulated resources related to the City’s sales tax Measure G is $32,985,374 as of June 30, 2024.

Deficit Fund Balance
At June 30, 2024, the following funds had deficit fund balances:

NOTE 15: GOLF COURSE MANAGEMENT AGREEMENT
The City entered into an agreement with Landmark Golf Management LLC (operator) to manage the golf operations at the city-owned SilverRock Golf Course. The Agreement entered into on April 6, 2004, sets forth a five-year term commencing upon the completion of the golf course. On January 14, 2005, the golf course was deemed to be complete, and management was turned over to the operator. The contract has been amended and extended numerous times with the current contract expiring June 30, 2024. The contract provides that the operator will manage the day-to-day operations, hire employees, provide golf pro shop and food services, manage all marketing and promotional activities, prepare the annual budget report for Council consideration, and manage accounting and payroll functions. In addition to the annual payment for management services, the City has advanced the operator $250,000 to pay for golf course expenses. Twice a month the operator submits a request for reimbursement to the City to replenish the City’s advance. In addition, the agreement sets forth the establishment of a capital reserve fund of 2 percent of green fees. For the fiscal year ending June 30, 2024, the Golf Course had a loss before transfers of $645,684.

Major Capital Projects Fund
Capital Improvement (2,184,447)
Nonmajor Special Revenue Funds
Quimby (735,460)
Housing Grant (60,267)
Nonmajor Capital Projects Fund
Library Development (1,118,627)
478 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 16: CONSTRUCTION COMMITMENTS
Various construction projects were in progress at June 30, 2024. Projects costs are paid out of the capital improvements fund. The following material construction commitments, for which funds have been encumbered, existed at June 30, 2024, with an estimated cost to complete.

NOTE 17: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of La Quinta that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.

The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 3, 2012, the City Council elected to become the Successor Agency for the Former Redevelopment Agency (‘Former Agency”) in accordance with the Bill as part of City resolution number 2012-002.

After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the Former Agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012.

The Successor Agency to the Former Agency is reported as a fiduciary fund (private purpose trust fund).

Project Name Project Number Contract Amount
Expenditures
to date as of
June 30, 2024
Remaining
Commitments
Capital Improvement Fund
Dune Palms Bridge Improvement 111205 $ 29,756,245 $ (19,034,401) $ 10,721,844 Madison Street Median Landscape Conversion 151604 1,300,000 (635,863) 664,137 La Quinta Landscape renovation Improvement 201603 9,963,148 (7,709,098) 2,254,050 Corporate Yard Admin Offices & Crew 201805 1,591,013 (58,598) 1,532,415 Village Art Plaza Promenade & Cultural Campus 201901 4,810,000 (572,048) 4,237,952 Avenue 50 Bridge Spanning The Evacuation Channel 201902 16,349,000 (46,227) 16,302,773 Hwy 111 Corridor Area Plan Implementation 201905 12,284,000 (962,733) 11,321,267 Avenue 48 Art and Music Line Project 202008 2,400,000 (288,205) 2,111,795 Dune Palms Rd Pavement Rehab-Fred 202101 1,221,100 (39,438) 1,181,662 Fritz Burns Park Improvements 202102 11,350,000 (360,652) 10,989,348 City Hall Capacity Improvements 202202 800,000 (75) 799,925 Avenue 50 Widening Improvements 202205 1,118,509 (33,777) 1,084,732 Phase II Camera System 202212 1,651,756 (700) 1,651,056 Ave 58 Pavement Rehabilitation 202301 1,380,000 (630) 1,379,370 Washington Street Connector 202309 1,200,000 (350) 1,199,650 SilverRock Dust Control Improvements 202310 1,000,000 1,000,000 - Citywide Dog Park Improvements 202407 1,500,000 1,500,000 - Welcome Center Improvements 202409 750,000 - 750,000
479 CLICK HERE to Return to Agenda

CITY OF LA QUINTA, CALIFORNIA
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 17: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (CONTINUED)
Cash and Investments
Cash and investments reported in the accompanying financial statements consisted of the following: