La Quinta City Council
April 7, 2026

CITY COUNCIL AGENDA Page 1 of 8 APRIL 7, 2026

CITY COUNCIL
AGENDA

CITY HALL COUNCIL CHAMBER
78495 Calle Tampico, La Quinta
REGULAR MEETING ON TUESDAY, APRIL 7, 2026
3:00 P.M. CLOSED SESSION | 4:00 P.M. OPEN SESSION
Members of the public may listen to this meeting by tuning-in live via www.laquintaca.gov/livemeetings; past meetings are available through the video archive via www.laquintaca.gov/pastmeetings Closed captions in English and Spanish are available to all users through this video streaming service.

CALL TO ORDER
ROLL CALL: Councilmembers: Fitzpatrick, McGarrey, Peña, Sanchez, and Mayor Evans

PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA
At this time, members of the public may address the City Council on any matter not listed on the agenda pursuant to the “Public Comments – Instructions” listed at the end of the agenda. The City Council values your comments; however, in accordance with State law, no action shall be taken on any item not appearing on the agenda unless it is an emergency item authorized by the Brown Act [Gov. Code § 54954.2(b)].

CONFIRMATION OF AGENDA

CLOSED SESSION

1. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54957.6; CITY DESIGNATED REPRESENTATIVE: CARLA TRIPLETT, HUMAN RESOURCES DEPUTY DIRECTOR; AND EMPLOYEE ORGANIZATION: LA QUINTA CITY EMPLOYEES’ ASSOCIATION

2. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION; PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9;
NAME OF CASE: LANGDON V. CITY OF LA QUINTA (RIVERSIDE COUNTY SUP.

CT. CASE NO. CVPS2509382)
City Council agendas and staff reports
are available on the City’s website at
www.LaQuintaCA.gov/PublicMeetings
CLICK HERE to Return to Agenda
CITY COUNCIL AGENDA Page 2 of 8 APRIL 7, 2026

3. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION; PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9;
CASES NAMES AND NUMBERS – MULTIPLE (listed below, all in U.S. Bankruptcy Court, District of Delaware)
CASE NAME: CASE NUMBER
SilverRock Development Company, LLC 24-11647
SilverRock Lifestyle Residences, LLC 24-11648
SilverRock Lodging, LLC 24-11650
SilverRock Luxury Residences, LLC 24-11652
SilverRock Phase I, LLC 24-11654
RGC PA 789, LLC 24-11657

4. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION; PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9;
NAME OF CASE: CONSTRUCTION LOAN SERVICES II, LLC V. SILVERROCK DEVELOPMENT COMPANY, ET AL. (U.S. District Court, District of Delaware, CASE NO. 25-1342-CFC)

5. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION; PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9;
NAME OF CASE: CITY OF LA QUINTA V. SILVERROCK DEVELOPMENT COMPANY, ET AL. (RIVERSIDE COUNTY SUP. CT. CASE NO. CVPS2404750)

RECESS TO CLOSED SESSION
RECONVENE AT 4:00 P.M.

REPORT ON ACTION(S) TAKEN IN CLOSED SESSION

PLEDGE OF ALLEGIANCE

PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA
At this time, members of the public may address the City Council on any matter not listed on the agenda pursuant to the “Public Comments – Instructions” listed at the end of the agenda. The City Council values your comments; however, in accordance with State law, no action shall be taken on any item not appearing on the agenda unless it is an emergency item authorized by the Brown Act [Gov. Code § 54954.2(b)].

ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS CLICK HERE to Return to Agenda

1. SILVERROCK (FORMERLY TALUS) DEVELOPMENT PROJECT – STATUS UPDATE

2. COACHELLA VALLEY MUSIC AND ARTS FESTIVALS – 2026 COACHELLA AND STAGECOACH – EVENT PLAN AND EXPECTATIONS UPDATE BY COMMUNITY

SERVICES MANAGER JIM CURTIS WITH CITY OF INDIO
CITY COUNCIL AGENDA Page 3 of 8 APRIL 7, 2026

3. X-PARK OPERATIONS AND PROGRAM UPDATE BY DIRECTOR OF

OPERATIONS MARK LAUE AND OPERATIONS MANAGER VICTOR DELGADO

WITH ACTION PARK ALLIANCE

CONSENT CALENDAR
NOTE: Consent Calendar items are routine in nature and can be approved by one motion.

PAGE

1. APPROVE COUNCIL MEETING MINUTES DATED MARCH 3, 2026 9

2. APPROVE COUNCIL MEETING MINUTES DATED MARCH 17, 2026 15

3. ADOPT ORDINANCE NO. 631 ON SECOND READING AMENDING SECTIONS

3.25.020, 3.25.030, AND 3.25.070 OF CHAPTER 3.25 OF THE LA QUINTA

MUNICIPAL CODE RELATED TO SHORT-TERM VACATION RENTALS
25 4. AUTHORIZE OVERNIGHT TRAVEL FOR ONE SENIOR CODE COMPLIANCE

OFFICER TO ATTEND THE CALIFORNIA ASSOCIATION OF CODE
ENFORCEMENT OFFICERS 2ND ANNUAL LEADERSHIP SUMMIT IN ELK GROVE, CALIFORNIA, MAY 14-15, 2026
39 5. APPROVE AMENDMENT NO. 5 TO REIMBURSEMENT AGREEMENT WITH COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS FOR AVENUE 48 ARTS AND MUSIC LINE PROJECT NO. 2020-08
41 6. APPROVE AGREEMENTS FOR CONTRACT SERVICES WITH KEYSER

MARSTON ASSOCIATES, INC AND THE NATELSON DALE GROUP, INC FOR

ON-CALL ECONOMIC DEVELOPMENT CONSULTING SERVICES
57 7. APPROVE AGREEMENT GOVERNING SUBDIVISION AND USE OF REAL

PROPERTY BY AND BETWEEN THE CITY, INDIAN WELLS HOSPITALITY

GROUP, LLC, AND PACIFIC WEST COMMUNITIES TO SUBDIVIDE

APPROXIMATELY SIX-ACRE VACANT PARCEL, ASSESSOR PARCEL
NUMBER 600-020-057, LOCATED SOUTH OF HIGHWAY 111 AND WEST OF COSTCO DRIVE; CEQA: THE PROJECT IS EXEMPT FROM ENVIRONMENTAL REVIEW PURSUANT TO SECTION 15601(b)(3) OF THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT, COMMON SENSE EXEMPTION
127

8. RECEIVE AND FILE GENERAL PLAN AND HOUSING ELEMENT ANNUAL PROGRESS REPORTS FOR CALENDAR YEAR 2025
167

9. RECEIVE AND FILE SECOND QUARTER FISCAL YEAR 2025/26 TREASURY REPORTS FOR OCTOBER, NOVEMBER, AND DECEMBER 2025
237

10. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED JANUARY 31, 2026
311

11. APPROVE DEMAND REGISTERS DATED MARCH 6, 13, AND 20, 2026 317 CLICK HERE to Return to Agenda
CLICK HERE to Return to Agenda
CITY COUNCIL AGENDA Page 4 of 8 APRIL 7, 2026

BUSINESS SESSION
PAGE

1. INTRODUCE FOR FIRST READING AN ORDINANCE AMENDING CHAPTER 339

2.06 OF THE LA QUINTA MUNICIPAL CODE RELATED TO CITY BOARDS, COMMISSIONS, AND COMMITTEES [ORDINANCE NO. 632]

2. INTRODUCE FOR FIRST READING AN ORDINANCE TO: (1) REPEAL AND AMEND TITLE 10 ANIMALS OF THE LA QUINTA MUNICIPAL CODE, (2) ADOPT BY REFERENCE TITLE 6 OF THE RIVERSIDE COUNTY CODE OF

ORDINANCES RELATED TO ANIMALS WITH CERTAIN AMENDMENTS, AND (3) AMEND SECTION 11.44.020 OF THE LA QUINTA MUNICIPAL CODE

RELATED TO PEACE OFFICERS ENFORCEMENT POWERS
[ORDINANCE NO. 633]
349

3. APPROVE JUNIOR INSPIRATION AND YOUTH ACHIEVEMENT AWARD 451

NOMINEE

STUDY SESSION
PAGE

1. DISCUSS PROJECTS TO BE INCLUDED IN FISCAL YEARS 2026/27 459 THROUGH 2030/31 CAPITAL IMPROVEMENT PROGRAM

2. DISCUSS ADAMS STREET COMPLETE STREETS STUDY AND PROVIDE

DIRECTION ON PREFERRED ALTERNATIVE
467
PUBLIC HEARINGS – 5:00 p.m. or thereafter
For all Public Hearings on the agenda, a completed “Request to Speak” form must be filed with the City Clerk prior to consideration of that item; comments are limited to three (3) minutes (approximately 350 words).

Any person may submit written comments to the City Council prior to the public hearing and/or may appear and be heard in support of or opposition to the project(s) at the time of the public hearing. If a project(s) is challenged in court, it may be limited to raising only those issues raised at the public hearing or in written correspondence delivered to the City at or prior to the public hearing.

PAGE

1. CONTINUED FROM JANUARY 20, 2026: ADOPT RESOLUTIONS TO (1)

ADOPT A MITIGATED NEGATIVE DECLARATION (ENVIRONMENTAL
ASSESSMENT 2024-0002, SCH# 2025050964) AND (2) APPROVE SPECIFIC PLAN 2022-0002; AND (3) INTRODUCE FOR FIRST READING AN ORDINANCE TO APPROVE ZONE CHANGE 2024-0002, AND ZONING ORDINANCE
AMENDMENT 2024-0002 FOR THE HIGHWAY 111 SPECIFIC PLAN AND DEVELOPMENT CODE PROJECT; CEQA: A MITIGATED NEGATIVE
DECLARATION (ENVIRONMENTAL ASSESSMENT 2024-0002, SCH#
2025050964) HAS BEEN PREPARED FOR THE PROPOSED PROJECT; LOCATION: GENERALLY NORTH OF AVENUE 48, SOUTH OF THE

COACHELLA VALLEY STORMWATER CHANNEL, EAST OF WASHINGTON

STREET AND WEST OF JEFFERSON STREET
[RESOLUTION NOS. 2026-006 AND 2026-007; ORDINANCE NO. 634] 673
CITY COUNCIL AGENDA Page 5 of 8 APRIL 7, 2026
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DEPARTMENTAL REPORTS
PAGE

1. CITY MANAGER – MARKETING QUARTERLY REPORT JANUARY-MARCH 1,229 2026

2. CITY ATTORNEY

3. CITY CLERK

4. COMMUNITY SERVICES

5. DESIGN AND DEVELOPMENT

6. FINANCE

7. PUBLIC SAFETY

8. PUBLIC WORKS
MAYOR’S AND COUNCIL MEMBERS’ ITEMS

REPORTS AND INFORMATIONAL ITEMS

1. ART PURCHASE COMMITTEE (McGarrey & Sanchez)

2. CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (Sanchez)

3. CANNABIS AD HOC COMMITTEE (Peña & Sanchez)

4. COACHELLA VALLEY ANIMAL CAMPUS COMMISSION (Sanchez)

5. COACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT (Peña)

6. COACHELLA VALLEY MOUNTAINS CONSERVANCY (McGarrey)

7. COACHELLA VALLEY POWER AGENCY (Evans)

8. COACHELLA VALLEY UNIFIED SCHOOL DISTRICT COMMITTEE (Fitzpatrick & Peña)

9. COACHELLA VALLEY WATER DISTRICT JOINT POLICY COMMITTEE (Evans)

10. COMMUNITY SERVICE GRANT REVIEW COMMITTEE (Fitzpatrick & McGarrey)

11. COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS:

A) CONSERVATION COMMISSION (Evans)

B) CONSERVATION COMMISSION LEGISLATIVE ADVISORY AD HOC COMMITTEE (Fitzpatrick)
C) ENERGY AND SUSTAINABILITY RESOURCES COMMITTEE (Evans) D) EXECUTIVE COMMITTEE (Evans)
E) HOMELESSNESS COMMITTEE (Peña)
F) PUBLIC SAFETY COMMITTEE (Peña)
G) TRANSPORTATION COMMITTEE (Fitzpatrick)

12. DESERT RECREATION DISTRICT COMMITTEE (Fitzpatrick & McGarrey)

13. DESERT SANDS UNIFIED SCHOOL DISTRICT COMMITTEE (Evans & Sanchez)

14. ECONOMIC DEVELOPMENT SUBCOMMITTEE (Evans & Fitzpatrick)

15. GREATER COACHELLA VALLEY CHAMBER OF COMMERCE INFORMATION EXCHANGE COMMITTEE (Fitzpatrick)

16. LEAGUE OF CALIFORNIA CITIES:

A) ANNUAL CONFERENCE DELEGATE (Evans)
B) ENVIRONMENTAL QUALITY POLICY COMMITTEE (McGarrey)
C) EXECUTIVE COMMITTEE – RIVERSIDE COUNTY DIVISION (McGarrey) D) PUBLIC SAFETY COMMITTEE (Sanchez)

17. PALM SPRINGS AIR MUSEUM BOARD & EXECUTIVE COMMITTEE (Evans)

18. RIVERSIDE COUNTY:

A) AIRPORT LAND USE COMMISSION (Sanchez)
CITY COUNCIL AGENDA Page 6 of 8 APRIL 7, 2026

ADJOURNMENT
*********************************
The next regular meeting of the City Council will be held on April 21, 2026, at 4:00 p.m. at the City Hall Council Chamber, 78495 Calle Tampico, La Quinta, CA 92253.

DECLARATION OF POSTING
I, Monika Radeva, City Clerk of the City of La Quinta, do hereby declare that the foregoing Agenda for the La Quinta City Council meeting was published in accordance with the Brown Act [Gov. Code § 54954.2] on the City’s website, accessible directly from the City’s home page through the “Calendar / Public Meetings” icon link, and posted at the City Hall bulletin board, located near the entrance to the Council Chamber at 78495 Calle Tampico, La Quinta, CA 92253, on April 3, 2026, which is freely accessible to members of the public.

DATED: April 3, 2026
MONIKA RADEVA, City Clerk
City of La Quinta, California

PUBLIC NOTICES
 Agenda packet materials are available for public inspection: 1) at the Clerk’s Office at La Quinta City Hall, located at 78495 Calle Tampico, La Quinta, CA 92253; and 2) on the City’s website at www.laquintaca.gov/publicmeetings in accordance with the Brown Act [Gov. Code §§ 54954.2, 54956, and 54957.5]
 The La Quinta City Council Chamber is wheelchair accessible. If hearing assistance equipment is needed, please contact the City Clerk’s office at (760) 777-7147, 24-hours in advance of the meeting and accommodation will be made.

CLICK HERE to Return to Agenda
B) TRANSPORTATION COMMISSION (Fitzpatrick)
C) TRANSPORTATION COMMISSION AUDIT AD HOC COMMITTEE (Fitzpatrick)

D) TRANSPORTATION COMMISSION COACHELLA VALLEY SAN GORGONIO PASS AREA CORRIDOR AD HOC COMMITTEE (Fitzpatrick)

19. RIVERSIDE LOCAL AGENCY FORMATION COMMISSION (Sanchez)

20. SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS (Sanchez) A) REGIONAL COUNCIL (Sanchez)
B) JOINT POLICY COMMITTEE (Sanchez)
C) TRANSPORTATION COMMITTEE (Sanchez)

21. SUNLINE TRANSIT AGENCY (Peña)

22. 23.

VISIT GREATER PALM SPRINGS CONVENTION AND VISITORS BUREAU (Evans)

PALM SPRINGS AIRPORT COMMISSION MEETING MINUTES DATED MARCH 18, 2026
1,235
CITY COUNCIL AGENDA Page 7 of 8 APRIL 7, 2026
 If background material is to be presented to the City Council during a City Council meeting, please be advised that 15 copies of all documents, exhibits, etc., must be supplied to the City Clerk for distribution, or must be emailed to [email protected]. It is requested that this takes place prior to the beginning of the meeting.

PUBLIC COMMENTS - INSTRUCTIONS
Members of the public may address the City Council on any matter listed or not listed on the agenda as follows:

WRITTEN PUBLIC COMMENTS can be provided either in-person during the meeting by submitting 15 copies to the City Clerk, it is requested that this takes place prior to the beginning of the meeting; or can be emailed in advance to [email protected], no later than 12:00 p.m., on the day of the meeting. Written public comments will be distributed to Council, made public, and will be incorporated into the public record of the meeting, but will not be read during the meeting unless, upon the request of the Mayor, a brief summary of public comments is asked to be reported.

If written public comments are emailed, the email subject line must clearly state “Written Comments” and should include: 1) full name, 2) city of residence, and 3) subject matter.

VERBAL PUBLIC COMMENTS can be provided in-person during the meeting by completing a “Request to Speak” form and submitting it to the City Clerk; it is requested that this takes place prior to the beginning of the meeting. Please limit your comments to three (3) minutes (or approximately 350 words). Only one person at a time may speak and only after being recognized by the Mayor.

In accordance with City Council Resolution No. 2022-027, a one-time additional speaker time donation of three (3) minutes per individual is permitted; please note that the member of the public donating time must: 1) submit this in writing to the City Clerk by completing a “Request to Speak” form noting the name of the person to whom time is being donated to, and 2) be present at the time the speaker provides verbal comments.

Members of the public who utilize a translator shall be provided at least twice of the allotted time to ensure non-English speakers receive the same opportunity to directly address the Council.

Verbal public comments are defined as comments provided in the speakers’ own voice and may not include video or sound recordings of the speaker or of other individuals or entities, unless permitted by the Mayor.

Public speakers may elect to use printed presentation materials to aid their comments; 15 copies of such printed materials shall be provided to the City Clerk to be disseminated to the City Council, made public, and incorporated into the public record of the meeting; it is requested that the printed materials are provided prior to the beginning of the meeting. There shall be no use of Chamber resources and technology to display visual or audible presentations during public comments, unless permitted by the Mayor.

All writings or documents, including but not limited to emails and attachments to emails, submitted to the City regarding any item(s) listed or not listed on this agenda are public records. All information in such writings and documents is subject to disclosure as being in the public domain and subject to search and review by electronic means, including but not limited to the City’s Internet website and any other Internet Web-based platform or other Web-based form of communication. All information in such writings and documents similarly is subject to disclosure pursuant to the California Public Records Act [Gov. Code § 7920.000 et seq.].

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CITY COUNCIL AGENDA Page 8 of 8 APRIL 7, 2026
TELECONFERENCE ACCESSIBILITY – INSTRUCTIONS
Teleconference accessibility may be triggered in accordance with the Brown Act “during a proclaimed state of emergency or local emergency,” as defined [Gov. Code § 54953.8.2]; or if a member of the City Council requests to attend and participate in this meeting remotely pursuant to any of the following: (1) “disability” [Gov. Code § 54953(c)], or (2) “just cause” [Gov. Code § 54953.8.3], as defined. In such instances, remote public accessibility and participation will be facilitated via the Zoom Webinar audio-visual platform as detailed at the end of this agenda. *** TELECONFERENCE AND TELEPHONIC PROCEDURES***

APPLICABLE ONLY WHEN TELECONFERENCE ACCESSIBILITY IS IN EFFECT ZOOM LINK: https://us06web.zoom.us/s/88215960899
Meeting ID: 882 1596 0899
Or join by phone: (253) 215 – 8782
VERBAL PUBLIC COMMENTS – members of the public may attend and participate in this meeting by teleconference or telephonic accessibility via the Zoom Webinar audio-visual platform and must activate the “Raise Hand” feature on their electronic devise (*9 for telephonic participation) when public comments are prompted by the Mayor, and will be queued in consecutive order; the City will facilitate the ability for a member of the public to be audible to the City Council and general public and allow them to speak on the item(s) requested. Members of the public must unmute themselves via the “Audio” feature on their electronic devise (*6 for telephonic participation) when prompted upon being recognized by the Mayor, in order to become audible to the City Council and the public.

WRITTEN PUBLIC COMMENTS can be provided either in person during the meeting or emailed to the City Clerk’s Office at [email protected] any time prior to the adjournment of the meeting, and will be distributed to the City Council, made public, incorporated into the public record of the meeting, and will not be read during the meeting unless, upon the request of the Mayor, a brief summary of any public comment is asked to be read, to the extent the City Clerk’s Office can accommodate such request.

CLOSED CAPTION AND TRANSLATION
Closed Caption and Translation are accessible through the Zoom Webinar audio-visual platform and accessible in real-time to all teleconference attendees. Members of the public must activate the “Show Captions” feature on their device for closed caption; and may use the “Options Arrow” to select from the list of available languages for translation. *9 *6
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CITY COUNCIL MINUTES Page 1 of 5 MARCH 3, 2026

CITY COUNCIL

MINUTES
TUESDAY, MARCH 3, 2026

CALL TO ORDER
A regular meeting of the La Quinta City Council was called to order at 3:30 p.m. by Mayor Evans.

PRESENT: Councilmembers Fitzpatrick, McGarrey, Peña, Sanchez, and Mayor Evans ABSENT: None
PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None
CONFIRMATION OF AGENDA – Confirmed

CLOSED SESSION

1. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION; PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9;
CASES NAMES AND NUMBERS – MULTIPLE (listed below, all in U.S.

Bankruptcy Court, District of Delaware)
CASE NAME: CASE NUMBER
SilverRock Development Company, LLC 24-11647
SilverRock Lifestyle Residences, LLC 24-11648
SilverRock Lodging, LLC 24-11650
SilverRock Luxury Residences, LLC 24-11652
SilverRock Phase I, LLC 24-11654
RGC PA 789, LLC 24-11657

2. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION; PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9;
NAME OF CASE: CONSTRUCTION LOAN SERVICES II, LLC V. SILVERROCK DEVELOPMENT COMPANY, ET AL. (U.S. District Court, District of Delaware, CASE NO. 25-1342-CFC)

3. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION; PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9;
NAME OF CASE: CITY OF LA QUINTA V. SILVERROCK DEVELOPMENT COMPANY, ET AL. (RIVERSIDE COUNTY SUP. CT. CASE NO. CVPS2404750) CONSENT CALENDAR ITEM NO. 19
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CITY COUNCIL MINUTES Page 2 of 5 MARCH 3, 2026

COUNCIL RECESSED THE OPEN SESSION PORTION OF THE MEETING AND MOVED INTO CLOSED SESSION AT 3:31 P.M.

MAYOR EVANS RECONVENED THE OPEN SESSION PORTION OF THE CITY COUNCIL MEETING AT 4:00 P.M. WITH ALL MEMBERS PRESENT
REPORT ON ACTION(S) TAKEN IN CLOSED SESSION:

City Attorney Ihrke reported the following pursuant to Government Code section 54957.1 (Brown Act):
 CLOSED SESSION ITEM NO. 1 – no reportable action; Council’s authorization remains in place for the City Attorney, in coordination with the City Attorney’s Office and Special Counsel, to defend and protect the interests of the City in the multiple bankruptcy cases filed by SilverRock Development Company LLC. and its responsive affiliates as reported out for Closed Session Item No. 2 from the August 6, 2024, Council meeting.
 CLOSED SESSION ITEM NO. 2 – no reportable action.
 CLOSED SESSION ITEM NO. 3 – no reportable action.

PLEDGE OF ALLEGIANCE
Mayor Evans led the audience in the Pledge of Allegiance.

PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA
PUBLIC SPEAKER: William Putz, La Quinta – spoke regarding the plants at Adams park across from fire station on Adams Street; appreciates the landscape upgrades but concerned about the planting of bougainvillea shrubs along the back wall of the park which when mature, will produce significant petal debris for surrounding neighbors to clean up from their yards and pools; and asked that the bougainvillea be swapped out for a better-suited plant if possible.

PUBLIC SPEAKER: Paula Simons, Chief Executive Office with the Family YMCA of the Desert (YMCA) – said the Eisenhower Drive casita property for childcare approved by Council is open; thanked the City for the team effort to make opening possible; shared positive feedback received from children and their parents; recently hosted the Eric Marsh Foundation (in the line of duty fire deaths) Widow’s Retreat in La Quinta, and thanked all for the warm welcome they received; and announced that she is leaving the YMCA for a move to Alzheimer’s Coachella Valley effective March 31, 2026. 10 CLICK HERE to Return to Agenda
CITY COUNCIL MINUTES Page 3 of 5 MARCH 3, 2026

ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS

1. SILVERROCK (FORMERLY TALUS) DEVELOPMENT PROJECT – STATUS UPDATE City Attorney Ihrke said on August 5, 2024, SilverRock Development Company LLC and its affiliates (debtors), collectively referred to as “SDC,” voluntarily petitioned for Chapter 11 bankruptcy in U.S. Bankruptcy Court in Delaware; and per Council’s direction and approval, the City retained Special Counsel who has continuously been working with the City Manager and City Attorney throughout these proceedings. A milestone for the case was accomplished with the December 9, 2025, sale of the debtors’ 130+/- acre property, formerly known as the Talus project, to Turnbridge Equities (TBE) pursuant to the bankruptcy court’s order authorizing the sale. Prior Announcements regarding the bankruptcy case are available on the City’s website at www.laquintaca.gov/talus.

City Attorney Ihrke said the bankruptcy case for the debtors is ongoing. As previously announced, the bankruptcy court granted the debtors motion for an Order Authorizing a Mediation to try and reach an agreement among the key secured creditors as to the allocation and distribution of the net proceeds available from the sale of the debtors’ property; the mediation is ongoing; and Council will be kept apprized as to the progress and the status of the case.

2. INTRODUCE NEW RIVERSIDE COUNTY FIRE CHIEF ROBERT FISH La Quinta Division Fire Chief Richard Tovar with the Riverside County Fire Department introduced newly promoted Riverside County Fire Chief Robert Fish. Chief Fish provided a brief background of his experience and qualifications; information on the La Quinta fire team; an update on the acquisition of a new fire ladder truck; and reported on the County’s recruitment efforts.

CONSENT CALENDAR

1. APPROVE COUNCIL MEETING MINUTES DATED JANUARY 20, 2026

2. APPROVE COUNCIL MEETING MINUTES DATED FEBRUARY 3, 2026

3. APPROVE COUNCIL SPECIAL MEETING MINUTES DATED FEBRUARY 11, 2026 – COMMUNITY WORKSHOP

4. APPROVE COUNCIL MEETING MINUTES DATED FEBRUARY 17, 2026

5. ADOPT ORDINANCE NO. 630 ON SECOND READING AMENDING SECTIONS

1.01.003 AND 12.20.020 OF THE LA QUINTA MUNICIPAL CODE RELATED TO

CONFORMING AND CORRECTIVE REVISIONS GOVERNING CONTENTS OF

CODE AND SPEED LIMITS REGULATIONS RESPECTIVELY

6. ADOPT RESOLUTION APPROVING SITE DEVELOPMENT PERMIT 2026-0001 FOR A FIRST TIME EXTENSION OF SITE DEVELOPMENT PERMIT 2022-0007 FOR 125-ROOM HAMPTON INN HOTEL; LOCATION: SOUTHWEST CORNER 11 CLICK HERE to Return to Agenda
CITY COUNCIL MINUTES Page 4 of 5 MARCH 3, 2026

OF AUTO CENTRE DRIVE AND LA QUINTA DRIVE WITHIN THE CENTRE AT LA QUINTA SPECIFIC PLAN AREA; APPLICANT: VERDANT LAQUINTA LLC [RESOLUTION NO. 2026-002]

7. APPROVE AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT SERVICES

WITH PALMS TO PINE PRINTING FOR PROMOTIONAL AND PRINTING SERVICES TO INCREASE COMPENSATION UP TO $135,000 PER FISCAL YEAR

8. APPROVE MILLS ACT AGREEMENT WITH ROBERT LINDEMANN AND ULLA

LEMBORN FOR DESIGNATED HISTORIC LANDMARK PROPERTY LOCATED AT 51495 AVENIDA DIAZ; PROJECT NO. MILLS 2025-0002

9. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED DECEMBER 31, 2025

10. APPROVE DEMAND REGISTERS DATED FEBRUARY 6 AND 13, 2026 MOTION – A motion was made and seconded by Councilmembers Fitzpatrick/McGarrey to approve the Consent Calendar as presented, with Item No. 5 adopting Ordinance No. 630 and Item No. 6 adopting Resolution No. 2026-002. Motion passed unanimously.

BUSINESS SESSION – None
STUDY SESSION – None
PUBLIC HEARINGS – None
DEPARTMENTAL REPORTS – All reports are on file in the City Clerk’s Office.

MAYOR’S AND COUNCIL MEMBERS’ ITEMS
Mayor Evans reported on her, and other Councilmembers’ attendance at the Desert Regional Cardiac Center ribbon cutting; funding update meeting with Congressman Calvert; Modernism Week reception in Palm Springs and the welcome reception at La Quinta Country Club; Desert Healthcare District listening session; Eric Marsh Foundation Widows’ Retreat; Chamber of Commerce car show; Coachella Valley Journalism Foundation luncheon; ribbon cuttings at 1/2sies Co. and Village Records; Desert Valley Builders’ Association luncheon where City Manager McMillen provided an update on La Quinta development; Old Town Artisan Studio moonlight reception; Health and Research for Communities (HARC) survey data release; La Quinta Arts Celebration; and Read Across America school readings.

Councilmember McGarrrey reported on her, and other Councilmembers’ attendance at the Do The Right Thing ceremony; and the International Horse Park women’s networking night.
12 CLICK HERE to Return to Agenda
CITY COUNCIL MINUTES Page 5 of 5 MARCH 3, 2026
Councilmember Sanchez reported on his, and other Councilmembers’ attendance at the Steve Chase gala; Olive Crest gala; and Tools for Tomorrow gala.

Mayor Evans directed City Attorney Ihrke to contact the developer and Riverside County regarding their false advertising which states that the new Summerwell apartment complex at 55150 Monroe Street in Riverside County’s unincorporated Thermal area is located in La Quinta.

REPORTS AND INFORMATIONAL ITEMS
La Quinta’s representative for 2026, Mayor Evans reported on her participation in the following organization’s meeting:
 DESERT SANDS SCHOOL DISTRICT COMMITTEE (Evans & Sanchez) La Quinta’s representative for 2026, Mayor Pro Tem Fitzpatrick reported on her participation in the following organization’s meeting:
 RIVERSIDE COUNTY TRANSPORTATION COMMISSION (RCTC)
La Quinta’s representative for 2026, Councilmember McGarrey reported on her participation in the following organization’s meeting:
 GREATER CV CHAMBER OF COMMERCE INFORMATION EXCHANGE

COMMITTEE
La Quinta’s representative for 2026, Councilmember Peña reported on his participation in the following organizations’ meetings:
 ART PURCHASE COMMITTEE
 SUNLINE TRANSIT AGENCY
La Quinta’s representative for 2026, Councilmember Sanchez reported on his participation in the following organizations’ meetings:
 DESERT SANDS SCHOOL DISTRICT COMMITTEE (Evans & Sanchez)  RIVERSIDE COUNTY AIRPORT LAND USE COMMISSION
 RIVERSIDE LOCAL AGENCY FORMATION COMMISSION

ADJOURNMENT
There being no further business, a motion was made and seconded by Councilmembers McGarrey/Sanchez to adjourn at 4:55 p.m. Motion passed unanimously.

Respectfully submitted,
MONIKA RADEVA, City Clerk
City of La Quinta, California
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CITY COUNCIL MINUTES Page 1 of 10 MARCH 17, 2026

CITY COUNCIL

MINUTES
TUESDAY, MARCH 17, 2026

CALL TO ORDER
A regular meeting of the La Quinta City Council was called to order at 3:30 p.m. by Mayor Evans.

PRESENT: Councilmembers Fitzpatrick, McGarrey, Peña, Sanchez, and Mayor Evans ABSENT: None
PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None

CONFIRMATION OF AGENDA
Mayor Evans said she will comment on Consent Calendar Item No. 10 related to consideration of plans, specifications, engineer’s estimate, and advertise for bid the Miles Avenue Pavement Rehabilitation Project No. 2023-01. Council concurred.

CLOSED SESSION

1. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION; PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9;
CASES NAMES AND NUMBERS – MULTIPLE (listed below, all in U.S.

Bankruptcy Court, District of Delaware)
CASE NAME: CASE NUMBER
SilverRock Development Company, LLC 24-11647
SilverRock Lifestyle Residences, LLC 24-11648
SilverRock Lodging, LLC 24-11650
SilverRock Luxury Residences, LLC 24-11652
SilverRock Phase I, LLC 24-11654
RGC PA 789, LLC 24-11657

2. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION; PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9;
NAME OF CASE: CONSTRUCTION LOAN SERVICES II, LLC V. SILVERROCK DEVELOPMENT COMPANY, ET AL. (U.S. District Court, District of Delaware, CASE NO. 25-1342-CFC)

3. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION; PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9;
NAME OF CASE: CITY OF LA QUINTA V. SILVERROCK DEVELOPMENT COMPANY, ET AL. (RIVERSIDE COUNTY SUP. CT. CASE NO. CVPS2404750) CONSENT CALENDAR ITEM NO. 215 CLICK HERE to Return to Agenda CITY COUNCIL MINUTES Page 2 of 10 MARCH 17, 2026

COUNCIL RECESSED THE OPEN SESSION PORTION OF THE MEETING AND MOVED INTO CLOSED SESSION AT 3:32 P.M.

MAYOR EVANS RECONVENED THE OPEN SESSION PORTION OF THE CITY COUNCIL MEETING AT 4:02 P.M. WITH ALL MEMBERS PRESENT
REPORT ON ACTION(S) TAKEN IN CLOSED SESSION:

City Attorney Ihrke reported the following pursuant to Government Code section 54957.1 (Brown Act):
 CLOSED SESSION ITEM NO. 1 – no reportable action; Council’s authorization remains in place for the City Attorney, in coordination with the City Attorney’s Office and Special Counsel, to defend and protect the interests of the City in the multiple bankruptcy cases filed by SilverRock Development Company LLC and its responsive affiliates as reported out for Closed Session Item No. 2 from the August 6, 2024, Council meeting.

Mr. Ihrke noted that a summary of the bankruptcy proceedings status for SilverRock Development Company LLC and its affiliates will be provided under the Announcements, Presentations, and Written Communications section of the agenda, as Presentation Item No. 1.
 CLOSED SESSION ITEM NO. 2 – no reportable action.
 CLOSED SESSION ITEM NO. 3 – no reportable action.

PLEDGE OF ALLEGIANCE
Mayor Pro Tem Fitzpatrick led the audience in the Pledge of Allegiance.

PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA
PUBLIC SPEAKER: David Dinnel, La Quinta – explained that during the March 2026 BNP Paribas Open tennis event in Indian Wells parking enforcement on his street was a problem for his cleaning crew; he has brought this issue to the City’s attention in the past, but the problem persists; has had heated arguments with police personnel the past two years when they attempted to issue parking tickets; created forms for service workers’ dashboards along with other documentation for police, but arguments and debates continue; asked that the City work with law enforcement on a permanent solution; and requested an update on an issue he brought to Council’s attention at the February 3, 2026, meeting regarding Airbnb withholding renters’ telephone numbers – City Clerk Radeva provided a status report.

PUBLIC SPEAKER: Phil Walls, Public Affairs Specialist with U.S. Small Business Administration – announced that disaster assistance is available to businesses, homeowners, renters, and non-profits to cover losses; provided submission deadlines; and asked the City to help with disseminating the information to residents and businesses. 16 CLICK HERE to Return to Agenda
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ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS

1. SILVERROCK (FORMERLY TALUS) DEVELOPMENT PROJECT – STATUS UPDATE City Attorney Ihrke said on August 5, 2024, SilverRock Development Company LLC and its affiliates (debtors), collectively referred to as “SDC,” voluntarily petitioned for Chapter 11 bankruptcy in U.S. Bankruptcy Court in Delaware; and per Council’s direction and approval, the City retained Special Counsel who has continuously been working with the City Manager and City Attorney throughout these proceedings. A milestone for the case was accomplished with the December 9, 2025, sale of the debtors’ 130+/- acre property, formerly known as the Talus project, to Turnbridge Equities (TBE) pursuant to the bankruptcy court’s order authorizing the sale (“Sale Order”). Prior Announcements regarding the bankruptcy case are available on the City’s website at www.laquintaca.gov/talus.

City Attorney Ihrke said the bankruptcy case for the debtors is ongoing. As previously announced, the bankruptcy court granted the debtors motion for an Order Authorizing a Mediation to try and reach an agreement among the key secured creditors as to the allocation and distribution of the net proceeds available from the sale of the debtors’ property. The mediation had been ongoing for several weeks, but late last week, the mediators officially notified the debtors and all parties that there was an impasse, and as such, the mediation was over without a resolution as to the allocation and distribution of the sale proceeds to the key secured creditors.

This means that the bankruptcy case will resume, and the bankruptcy judge will now address the matter of resolving the allocation and distribution of the proceeds from the sale of the debtors’ property to the key secured creditors.

This also means that the appeal in the U.S. District Court in Delaware will resume; and as previously announced, one creditor, Construction Loan Services II, LLC. d/b/a Builders Capital (Builders), filed an appeal of the bankruptcy court’s Sale Order, in accordance with federal bankruptcy procedure, which was pending in the Delaware District Court.

Mr. Ihrke explained that in response to Builders’ appeal, the City, TBE, and debtors filed a Joint Motion to Dismiss Builders’ appeal based on relevant federal bankruptcy statutes and case law. Per stipulated agreement of the parties, the briefing for Builders’ appeal and the Joint Motion to Dismiss were stayed, or temporary “postponed,” sot that the parties could focus on the mediation. Now that the impasse of the mediation has been declared, the briefing on the appeal and Motion to Dismiss will resume.

Mr. Ihrke said it was important to note that because both, the U.S. Bankruptcy Court and the Delaware District Court, denied a prior motion brought by Builders to stay the Sale Order of the debtors’ property, the new TBE project, as approved by Council will still move forward in the ordinary course, with applications and review of land use entitlements to be processed according to the operative Development Agreement, also approved by Council in 2025, and other applicable state and city laws. 17 CLICK HERE to Return to Agenda
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The City Manager, Special Counsel, and our office will keep the Council informed as to progress and the status of the case.

2. >>> Taken out of agenda order, considered after Business Session Item No. 2 below IRONMAN 70.3 LA QUINTA TRIATHLON – DECEMBER 7, 2025, EVENT

SUMMARY AND ECONOMIC REPORT BY EVENT OPERATIONS MANAGER

MAX LITTLE

3. PROCLAMATION IN RECOGNITION OF GOVERNMENT FINANCE
PROFESSIONAL WEEK – MARCH 23-27, 2026
Council thanked the La Quinta Finance Department Director Martinez and team, and presented a proclamation in recognition and observance of Government Finance Professional Week; specifically recognized the City’s entire finance team for its achievements including La Quinta’s ranking, since 2024, as number 7 out of 420 cities on the California Policy Center’s list of fiscally healthy cities; and La Quinta being among only 10 cities to earn the highest fiscal health grade of A.

CONSENT CALENDAR

1. ADOPT RESOLUTION TO REAFFIRM ADOPTION OF ANNUAL
ASSESSMENTS FOR COUNTY SERVICE AREA 152, AUTHORIZE RIVERSIDE

COUNTY TO CONTINUE TO LEVY ASSESSMENTS, AND INDEMNIFY AND

HOLD THE COUNTY HARMLESS FOR LEVYING ASSESSMENTS ON CITY PARCELS [RESOLUTION NO. 2026-003]

2. EXCUSE ABSENCE OF COMMISSIONER BIONDI FROM THE MARCH 9, 2026,

ARTS AND COMMUNITY SERVICES COMMISSION QUARTERLY MEETING AND COMMISSIONERS HASSETT AND HUNDT FROM THE MARCH 10, 2026,

PLANNING COMMISSION MEETING

3. AUTHORIZE OVERNIGHT TRAVEL FOR TWO COUNCILMEMBERS TO ATTEND THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY 2026 ELECTED OFFICIALS SUMMIT IN CHULA VISTA, CALIFORNIA, APRIL 29 – MAY 1, 2026

4. AUTHORIZE OVERNIGHT TRAVEL FOR ONE COUNCILMEMBER TO ATTEND

THE LEAGUE OF CALIFORNIA CITIES PUBLIC SAFETY POLICY
COMMITTEE MEETING IN COSTA MESA, CALIFORNIA, MARCH 27, 2026

5. AUTHORIZE OVERNIGHT TRAVEL FOR DESIGN AND DEVELOPMENT DEPARTMENT HUB MANAGER TO ATTEND TYLER CONNECT 2026
ANNUAL CONFERENCE IN LAS VEGAS, NEVADA, APRIL 7-10, 2026

6. ACCEPT OFF-SITE IMPROVEMENTS ASSOCIATED WITH THE OASIS RESIDENTIAL DEVELOPMENT, TRACT MAP NO. 32201, LOCATED AT THE NORTHWEST CORNER OF AVENUE 60 AND MADISON STREET
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7. ACCEPT OFF-SITE AND ON-SITE IMPROVEMENTS ASSOCIATED WITH THE

ESTATES AT POINT HAPPY RESIDENTIAL DEVELOPMENT, TRACT MAP NO. 31348, LOCATED SOUTH OF HIGHWAY 111 AND WEST OF

WASHINGTON STREET

8. ACCEPT DUNE PALMS BRIDGE IMPROVEMENTS PROJECT NO. 2011-05,

LOCATED ON DUNE PALMS ROAD AT THE COACHELLA VALLEY STORM

WATER CHANNEL

9. APPROVE PURCHASE AND UPLIFTS OF 2026 CHEVROLET 2500

SILVERADO UTILITY BED WORK TRUCK WITH A LIFTGATE FROM
PARADISE CHEVROLET CADILLAC, AND DECLARE CURRENT 2017
CHEVROLET 2500 SILVERADO UTILITY BED WORK TRUCK AS SURPLUS

AND APPROVE DISPOSAL METHOD

10. APPROVE PLANS, SPECIFICATIONS, ENGINEER’S ESTIMATE, AND

ADVERTISE FOR BID THE MILES AVENUE PAVEMENT REHABILITATION PROJECT NO. 2023-01

11. APPROVE THREE AGREEMENTS FOR CONTRACT SERVICES WITH (1) PACIFIC WEST INDUSTRIES, INC, (2) RIVCO MECHANICAL SERVICES, INC, AND (3) F.M. THOMAS AIR CONDITIONING, INC, FOR ON-CALL

HEATING, VENTILATION, AND AIR CONDITIONING MAINTENANCE, REPAIR,

AND REPLACEMENT

12. APPROVE AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT SERVICES

WITH HR GREEN PACIFIC FOR ON-CALL PUBLIC WORKS DEVELOPMENT

PLAN CHECK SERVICES

13. APPROVE AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES

WITH DUDEK TO PROVIDE ADDITIONAL DESIGN SERVICES FOR THE CIVIC CENTER LAKE AND IRRIGATION CONVERSION PROJECT NO. 2016-06

14. APPROVE DEMAND REGISTERS DATED FEBRUARY 20 AND 27, 2026 CONSENT CALENDAR – COMMENTS on ITEM NO. 10:

Mayor Evans said the City continues to make substantial financial investments in pavement management, rehabilitation, and enhancements to ensure La Quinta’s road infrastructure is well maintained and improved.

MOTION – A motion was made and seconded by Councilmembers Fitzpatrick/Peña to approve the Consent Calendar as presented, with Item No. 1 adopting Resolution No. 2026-003. Motion passed unanimously.

BUSINESS SESSION

1. RECEIVE AND FILE FISCAL YEAR 2024/25 GENERAL FUND YEAR-END

BUDGET REPORT AND APPROVE THE AMENDED BUDGET CARRYOVERS 19 CLICK HERE to Return to Agenda
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Finance Director Martinez presented the staff report, which is on file in the Clerk’s Office.

Council discussed transparent accounting for Measure G expenditures; surplus funds; investing in quality of life for the La Quinta community; and unfunded pensions.

MOTION – A motion was made and seconded by Councilmembers Peña/Fitzpatrick to receive and file fiscal year 2024/25 General Fund Year-End Budget Report and approve the amended budget carryovers as presented. Motion passed unanimously.

2. RECEIVE AND FILE FISCAL YEAR 2025/26 MID-YEAR BUDGET REPORT,

APPROVE THE RECOMMENDED BUDGET ADJUSTMENTS, AND ADOPT

RESOLUTION TO ADD ENGINEERING SPECIALIST POSITION
[RESOLUTION NO. 2026-004]
Finance Director Martinez presented the staff report, which is on file in the Clerk’s Office.

MOTION – A motion was made and seconded by Councilmembers Peña/McGarrey to:
(1) Receive and file fiscal year 2025/26 Mid-Year Budget Report and approve the recommended budget adjustments as presented; and
(2) Adopt Resolution No. 2026-004 to update the Classification Plan and Salary Plan/Schedule for fiscal year 2025/26 to add an Engineering Specialist position as presented:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA,

CALIFORNIA, APPROVING A REVISED CLASSIFICATION PLAN AND

SALARY PLAN/SCHEDULE ADDING AN ENGINEERING SPECIALIST
CLASSIFICATION IN FISCAL YEAR 2025/26
Motion passed unanimously.

ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS – Continued

2. >>> Taken out of agenda order
IRONMAN 70.3 LA QUINTA TRIATHLON – DECEMBER 7, 2025, EVENT

SUMMARY AND ECONOMIC REPORT BY EVENT OPERATIONS MANAGER

MAX LITTLE
PRESENTER: Operations Director Max Little with World Triathlon Corporation Southwest Region – provided a recap of the La Quinta Ironman 70.3 triathlon event, held on December 7, 2025, including athlete origins, the 3 courses, complaint calls, and traffic, parking, dust, trash and food availability issues; historic economic impact; and detailed the goals and planned enhancements for the upcoming 2026 Ironman event, including shuttle service, parking, athlete accessibility, traffic flow, and event atmosphere.

MAYOR EVANS CALLED FOR A BRIEF RECESS AT 5:17 P.M.
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MAYOR EVANS RECONVENED THE COUNCIL MEETING AT 5:28 P.M. WITH

ALL MEMBERS PRESENT

3. APPROVE AGREEMENT REGARDING INSUBSTANTIAL MODIFICATION TO

DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF LA QUINTA

AND CM WAVE DEVELOPMENT LLC RELATING TO DEVELOPMENT
AGREEMENT 2023-1000 FOR THE CORAL MOUNTAIN CLUB PROJECT; LOCATION: SOUTH OF AVENUE 58, WEST OF MADISON STREET, AND NORTH OF AVENUE 60
City Attorney Ihrke presented the staff report, which is on file in the Clerk’s Office.

Council discussed the reason for the range of $1 to $1.7 million threshold related to the annual mitigation fee per residential unit for public safety costs; ability for future Homeowners Associations (HOA) within this development to decide whether or not to allow short-term vacation rentals within its respective areas; and ability of the HOA to refuse to pay mitigation fee.

MOTION – A motion was made and seconded by Councilmembers Peña/Fitzpatrick to approve Agreement Regarding Insubstantial Modification to Development Agreement by and between the City of La Quinta and CM Wave Development LLC, relating to Development Agreement 2023-1000 for the Coral Mountain Club project; and authorize the City Manager to execute the agreement. Motion passed unanimously.

4. INTRODUCE FOR FIRST READING AN ORDINANCE AMENDING CHAPTER

3.25 OF THE LA QUINTA MUNICIPAL CODE RELATED TO SHORT-TERM VACATION RENTALS [ORDINANCE NO. 631]
City Attorney Ihrke and City Clerk Radeva presented the staff report, which is on file in the Clerk’s Office.

Council discussed website alerts regarding the updated code.

MOTION – A motion was made and seconded by Councilmembers Sanchez/Fitzpatrick to take up Ordinance No. 631 by title and number only and waive further reading. Motion passed unanimously.

City Clerk Radeva read the following title of Ordinance No. 631 into the record:

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AMENDING SECTIONS 3.25.020, 3.25.030, AND 3.25.070 OF CHAPTER 3.25 OF THE LA QUINTA MUNICIPAL CODE RELATED TO SHORTTERM VACATION RENTALS MOTION – A motion was made and seconded by Councilmembers Sanchez/Fitzpatrick to introduce at first reading Ordinance No. 631 amending Sections 3.25.020, 3.25.030, and 3.25.070 of Chapter 3.25 of the La Quinta Municipal Code related to Short-Term Vacation Rentals. Motion passed unanimously.
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STUDY SESSION – None

PUBLIC HEARINGS

1. ADOPT RESOLUTION TO APPROVE THE PROPERTY LOCATED AT 57600

CORAL MOUNTAIN COURT AS A QUALIFIED AND CERTIFIED LARGE LOT PURSUANT TO SECTION 3.25.057 OF THE LA QUINTA MUNICIPAL CODE [RESOLUTION NO. 2026-005]
Deputy City Clerk Rodriguez presented the staff report, which is on file in the Clerk’s Office.

MAYOR EVANS DECLARED THE PUBLIC HEARING OPEN AT 5:59 P.M.

APPLICANT: Kevin Murray, property owner – said the property was built for family use; the anticipated STVR use is for private individuals or families, not groups; there is no intent to rent it for special events, such as large weddings, etc., and noted he landscaped the vacant lot he owns, immediately next to the subject property, to mitigate the dust blowing from it during wind storms onto the adjacent Palo Verde residential community.

Mayor Pro Tem Fitzpatrick and Councilmember McGarrey discussed concerns about (1) the closeness of the subject property to the adjacent Palo Verde residential development to the east, and (2) allowing STVR use for a property surrounded by communities that do not permit such use.

Council discussed the success of the STVR program in La Quinta the last few years, including minimal complaints and proactive enforcement; effective communications with the community regarding the resources available to report complaints and view information on permitted STVRs via the public portal website; the “quiet enjoyment” of any property is not automatically adversely affected due to a nearby property being permitted for STVR use because of the requirements and processes put in place to ensure compliance with the STVR program; generally, weddings and other similar type events would require a Special Event Permit from the City; and the permanent ban on the issuance of new STVR permits citywide is still in effect, thus, even though any residential development may adopt Covenants, Conditions, and Restrictions (CC&Rs) to allow STVR use within its boundaries, no new STVR permits can be issued as long as the ban remains in effect.

MAYOR EVANS DECLARED THE PUBLIC HEARING CLOSED AT 6:12 P.M.

City Clerk Radeva said WRITTEN PUBLIC COMMENTS were received from the residents listed below, in alphabetical order, residing in the Palo Verde residential development bordering the subject property to the east, which were distributed to Council, made public, published on the City’s website, and included in the public record of this meeting:
 John Jankovich – opposed
 Peggy Pape – opposed
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Council discussed property rights; applying Council-adopted criteria consistently; and public hearing notice requirements and clarity to the public of consequences of this type of approvals.

City Attorney Ihrke explained the public hearing notice requirements and stated that the notice for this action met all requirements of the law.

MOTION – A motion was made and seconded by Councilmembers Sanchez/Peña to adopt Resolution No. 2026-005 as presented:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING THE PROPERTY LOCATED AT 57600 CORAL

MOUNTAIN COURT, LA QUINTA, CALIFORNIA, IDENTIFIED AS ASSESSOR PARCEL NUMBER 762-440-035, AS A “QUALIFIED AND CERTIFIED LARGE LOT” PURSUANT TO SECTION 3.25.057 OF THE LA QUINTA MUNICIPAL CODE
LARGE LOT QUALIFIED AND CERTIFIED 2025-0001
APPLICANT: KEVIN MURRAY
OWNERS: KEVIN MURRAY AND SHERRI MURRAY
Motion passed: ayes – 3, noes – 2 (Fitzpatrick and McGarrey), abstain – 0, absent – 0.

DEPARTMENTAL REPORTS – All reports are on file in the City Clerk’s Office.

3. CITY CLERK – SHORT-TERM VACATION RENTAL PROGRAM QUARTERLY REPORT – OCTOBER – DECEMBER 2025
Council discussed the fully positive 4th quarter 2025 STVR report.

MAYOR’S AND COUNCIL MEMBERS’ ITEMS
Mayor Evans reported on her, and other Councilmembers’ attendance at One Future Coachella Valley; Para Karate; Career Day at John Glenn Middle School; Welcome event for Friends of the Desert Mountains 5K; Mary Hepp’s 101st birthday; Richard Jandt celebration of life; Savers Thrift Store ribbon cutting; La Quinta High School scholarship presentation; Rotary induction; and the Concert in the Park.

Mayor Pro Tem Fitzpatrick reported on her attendance at Vista Santa Rosa Community Council meeting.

Councilmember McGarrey reported on her attendance at Read Across America at a local school; and the Wildflower Festival in Palm Desert.

Councilmember Peña reported on his, and other Councilmembers’ attendance at the Boys and Girls Club of Coachella Valley Grand Auction event on March 14, 2026.

Councilmember Sanchez reported on his attendance at Alex Yang tree dedication. 23 CLICK HERE to Return to Agenda
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REPORTS AND INFORMATIONAL ITEMS
La Quinta’s representative for 2026, Mayor Evans reported on her participation in the following organizations’ meetings:
 COACHELLA VALLEY POWER AGENCY JOINT POWERS AGREEMENT
 CVAG EXECUTIVE COMMITTEE
La Quinta’s representative for 2026, Mayor Pro Tem Fitzpatrick reported on her participation in the following organization’s meeting:
 RIVERSIDE COUNTY TRANSPORTATION COMMISSION (RCTC)
La Quinta’s representative for 2026, Councilmember McGarrey reported on her participation in the following organization’s meeting:
 COACHELLA VALLEY MOUNTAINS CONSERVANCY
La Quinta’s representative for 2026, Councilmember Sanchez reported on his participation in the following organization’s meeting:
 SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS

ADJOURNMENT
There being no further business, a motion was made and seconded by Councilmembers Peña/McGarrey to adjourn at 6:46 p.m. Motion passed unanimously.

Respectfully submitted,
MONIKA RADEVA, City Clerk
City of La Quinta, California
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City of La Quinta
CITY COUNCIL MEETING: April 7, 2026

STAFF REPORT
AGENDA TITLE: ADOPT ORDINANCE NO. 631 ON SECOND READING AMENDING SECTIONS 3.25.020, 3.25.030, AND 3.25.070 OF CHAPTER 3.25 OF THE

LA QUINTA MUNICIPAL CODE RELATED TO SHORT-TERM VACATION RENTALS

RECOMMENDATION
Adopt Ordinance No. 631 on second reading amending Sections 3.25.020, 3.25.030, and

3.25.070 of Chapter 3.25 of the La Quinta Municipal Code related to Short-Term Vacation Rentals.

EXECUTIVE SUMMARY
 Staff periodically reviews Chapter 3.25 of the La Quinta Municipal Code (LQMC) related to the City’s Short-Term Vacation Rental (STVR) program, and proposes amendments to update or clarify requirements and regulations as needed.  A recent trial court decision, reversing an administrative hearing officer’s decision, decided that the definition of “short-term vacation rental unit” could be interpreted to mean an owner without an STVR permit could nonetheless allow persons to rent and occupy a residence for 30 days or less if there was evidence of a lease agreement for longer than 30 days.
 While the City has prevailed numerous times in the past in administrative hearings and trial court appeals that have raised this argument, staff and the City Attorney’s Office recommend clarifying amendments to a few definitions, as well as the legislative intent, to address the recent trial court decision.
 On March 17, 2026, Council introduced Ordinance No. 631 for first reading to amend Sections 3.25.020, 3.25.030, and 3.25.070 of the LQMC related to STVRs. If adopted on second reading, Ordinance No. 631 will go into effect 30 days after adoption, or on May 7, 2026.

FISCAL IMPACT – None.

BACKGROUND AND ANALYSIS
Staff periodically reviews Chapter 3.25 of the LQMC related to the STVR program, and proposes amendments to update or clarify requirements and regulations as needed. As part of the last revisions in December 2024 (Ordinance No. 619), the Council amended Chapter

3.25 to add the definition of “subtenant” to explicitly state that any rental activity of a privately owned dwelling, regardless of whether it was directly rented or sub-rented by the occupant(s), CONSENT CALENDAR ITEM NO. 3
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for 30-days or less constitutes an STVR rental and is subject to the STVR program requirements and regulations.

The City’s Code Enforcement Office, in conjunction with the City’s Lead Code Enforcement Attorney, are periodically called to investigate alleged code violations and, after conducting investigations and obtaining evidence, periodically issue citations for violations of the City’s STVR Regulations in Chapter 3.25.

Over the years, a few residential owners have argued that a written lease for more than 30 days should be conclusive evidence that the residence is not an STVR and thus not subject to Chapter 3.25. Repeatedly in response to such arguments, the City has countered that the actual use of a residence is determinative of whether it is an STVR subject to regulations and compliance under Chapter 3.25. The City routinely prevailed on this argument because, among other reasons, proper statutory interpretation of Chapter 3.25 required viewing the ordinance as a whole in light of the overall legislative intent, not just one definition in LQMC Section 3.25.030.

However, a recent trial court decision, which was brought as an appeal of an administrative hearing officer’s decision favorable to the City, focused solely on the definition of “short-term vacation rental unit” as possibly being interpreted to allow a person to rent a residence without an STVR permit, even if there is evidence of multiple persons occupying the residence sporadically for less than 30 days, as long as there is a written lease with an occupant for more than 30 days.

Staff and the City Attorney’s Office recommend amending the definition of “short-term vacation rental unit” to address the cited ambiguity that led to the trial court’s decision. The proposed amendment “parses out” the elements of the current definition to clarify that an STVR unit is any privately owned residential dwelling rented for transient use and occupied by any person(s) for a period of thirty (30) consecutive calendar days or less. A proposed conforming amendment to the definition of “subtenant” is included, as well as proposed amendments that list common “secondary effects” to which the regulations in Chapter 3.25 are intended to limit or prevent (LQMC Section 3.25.020).

Some minor amendments are also proposed to Section 3.25.070 – Operational Requirements and Standard Conditions and are intended to consolidate provisions, remove unnecessary detail, and clarify terms.

On March 17, 2026, Council introduced Ordinance No. 631 for first reading to amend Sections

3.25.020, 3.25.030, and 3.25.070 of the LQMC related to STVRs as listed above. If adopted on second reading, Ordinance No. 631 will go into effect 30 days after adoption, or on May 7, 2026.

ALTERNATIVES
Council may elect not to introduce the proposed ordinance; approve only some of the amendments and/or additions; or instruct staff to make additional/different amendments.

Prepared by: Monika Radeva, City Clerk
Approved by: Jon McMillen, City Manager
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ORDINANCE NO. 631

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

LA QUINTA, CALIFORNIA, AMENDING SECTIONS

3.25.020, 3.25.030, AND 3.25.070 OF CHAPTER 3.25 OF

THE LA QUINTA MUNICIPAL CODE RELATED TO

SHORT-TERM VACATION RENTALS
WHEREAS, Chapter 3.25 of the La Quinta Municipal Code (LQMC) relates to short-term vacation rentals, including permitted uses, short-term vacation rental process and permitting procedures, requirements, violations, fines, etc.; and WHEREAS, the City has the authority to regulate residential uses, including shortterm vacation rental uses, operating within the City; and WHEREAS, the proposed amendments to Section 3.25.020 – Purpose are intended to list common “secondary effects” to which the regulations of Chapter 3.25 are intended to limit or prevent; and
WHEREAS, the proposed amendments to Section 3.25.030 – Definitions are:
(1) Intended to “parse out” the elements of the current definition of a “short-term vacation rental unit” to clarify that an STVR unit is any privately owned residential dwelling rented for transient use and occupied by any person (s) for a period of 30 consecutive calendar days or less; and
(2) Add a definition for “Long-term rental;” and
(3) Provide a conforming amendment to the definition of “subtenant;” and (4) Provide other miscellaneous conforming amendments throughout the rest of the definitions; and
WHEREAS, the proposed amendments to Section 3.25.070 – Operational requirements and standard conditions are intended to consolidate provisions, remove unnecessary detail, and clarify terms.

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

SECTION 1. Chapter 3.25 shall be amended as written in “Exhibit A” attached hereto and incorporated herein by this reference.

SECTION 2. EFFECTIVE DATE: This Ordinance shall be in full force and effect thirty (30) days after its adoption.
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Ordinance No. 631
Chapter 3.25 Short-Term Vacation Rentals – Amending Sections 3.25.020, 3.25.030, and 3.25.070 Adopted: April 7, 2026

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

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

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

PASSED, APPROVED and ADOPTED, at a regular meeting of the La Quinta City Council held this 7th day of April 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________
LINDA EVANS, Mayor
City of La Quinta, California
ATTEST:
_________________________
MONIKA RADEVA, City Clerk
City of La Quinta, California
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Ordinance No. 631
Chapter 3.25 Short-Term Vacation Rentals – Amending Sections 3.25.020, 3.25.030, and 3.25.070 Adopted: April 7, 2026

APPROVED AS TO FORM:
___________________________
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
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Title 3 - REVENUE AND FINANCE
Chapter 3.25 SHORT-TERM VACATION RENTALS
La Quinta, California, Municipal Code Created: 2026-01-28 09:56:34 [EST] (Supp. No. 7, Update 3)

Chapter 3.25 SHORT-TERM VACATION RENTALS

3.25.020 Purpose.

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

1. Prevent the circumvention by any owner of a dwelling (or any real property) in the city from operating a short-term vacation rental (STVR), without properly obtaining a permit and license required by this chapter, by claiming to have a rental arrangement longer than thirty (30) days but nonetheless collecting rent from a tenant or subtenant who occupies a residence for thirty (30) consecutive calendar days or less;

2. Require sufficient parking so that neighboring dwellings and other property uses are not unduly adversely impacted by the use of a residential dwelling on a short-term basis as a short-term vacation rental;

3. Impose strict obligations on occupants of short-term vacation rental units to limit excessive outside or ambient noise that would unduly interfere with the use and enjoyment of neighboring dwellings or other property owners;

4. Prevent conversion of rooms, without required permitting or licensing as set forth in this chapter and this code, from a non-bedroom use to bedroom use for the purpose of increasing the maximum allowed number of occupants using a short-term vacation rental unit;

5. Maintain the residential character of the city’s residential zones and neighborhoods by avoiding transitory uses which are not properly permitted pursuant to this chapter; and

6. Prohibit any property from being used as a short-term vacation rental unless such use is allowed within an area of the city and properly permitted pursuant to this chapter.

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

C. The requirements of this chapter shall be presumed to apply to any residential dwelling that has received a short-term vacation rental permit. A rebuttable presumption arises that, whenever there is an occupant(s), paying rent or not, of a residential dwelling that has received a short-term vacation rental permit, the requirements of this chapter shall apply, including but not limited to any suspension or other modifications imposed on a short-term vacation rental permit as set forth in this chapter. The city manager or authorized designee shall have the authority to implement any necessary or appropriate policies and procedures to apply the rebuttable presumption set forth in this section. (Ord. 619 § 1, Exh. A, 12-17-2024; Ord. No. 607, Exh. A, 12-5-2023; Ord. 590 § 1(Exh. A), 3-16-2021; Ord. 586 § 1(Exh. A), 12-15-2020; Ord. 572 § 1, 2018; Ord. 563 § 1, 2017; Ord. 501 § 2, 2012) ORDINANCE NO. 631

EXHIBIT A
Adopted: _______, 2026
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Created: 2026-01-28 09:56:34 [EST]
(Supp. No. 7, Update 3)

3.25.030 Definitions.

For purposes of this chapter, the following words and phrases shall have the meaning respectively ascribed to them by this section:
"Advertise," "advertisement," "advertising, "publish," and "publication" mean any and all means, whether verbal or written, through any media whatsoever whether in use prior to, at the time of, or after the enactment of the ordinance adding this definition, used for conveying to any member or members of the public the ability or availability to rent a short-term vacation rental unit as defined in this section, or used for conveying to any member or members of the public a notice of an intention to rent a short-term vacation rental unit as defined in this section. For purposes of this definition, the following media are listed as examples, which are not and shall not be construed as exhaustive: verbal or written announcements by proclamation or outcry, newspaper advertisement, magazine advertisement, handbill, written or printed notice, printed or poster display, billboard display, e-mail or other electronic/digital messaging platform, electronic commerce/commercial Internet websites, and any and all other electronic media, television, radio, satellite-based, or Internet website. "Applicable laws, rules and regulations" means any laws, rules, regulations and codes (whether local, state or federal) pertaining to the use and occupancy of a privately owned dwelling unit as a short-term vacation rental. "Applicant" means the owner of the short-term vacation rental unit. "Authorized agent or representative" means a designated agent or representative who is appointed by the owner and is also responsible for compliance with this chapter with respect to the short-term vacation rental unit. "Booking transaction" means any reservation or payment service provided by a person or entity who facilitates a home-sharing or vacation rental (including short-term vacation rental) transaction between a prospective occupant and an owner or owner's authorized agent or representative. "City manager" means that person acting in the capacity of the city manager for the City of La Quinta or authorized designee.
"Declaration of non-use" means the declaration described in Section 3.25.050. "Dwelling" has the same meaning as set forth in Section 9.280.030 (or successor provision, as may be amended from time to time) of this code; "dwelling" does not include any impermanent, transitory, or mobile means of temporary lodging, including but not limited to mobile homes, recreational vehicles (RVs), car trailers, and camping tents.
"Estate home" is defined as a single-family detached residence with five (5) or more bedrooms, subject to evaluation criteria and inspection of the property pursuant to Section 3.25.060(D)(1). An estate home is a sub-type of short-term vacation rental unit and shall be subject to a general short-term vacation rental permit, primary residence short-term vacation rental permit, or homeshare short-term vacation rental permit, as applicable, pursuant to this chapter.
"General short-term vacation rental permit" is a type of short-term vacation rental permit that is neither a homeshare short-term vacation rental permit nor a primary residence short-term vacation rental permit. “Good guest brochure” and "Good neighbor brochure" mean a document prepared by the city that summarizes the general rules of conduct, consideration, and respect, including, without limitation, provisions of this code and other applicable laws, rules or regulations pertaining to the use and occupancy of short-term vacation rental units. "Homeshare short-term vacation rental permit" is a type of short-term vacation rental permit whereby the owner hosts visitors in the owner's dwelling, for compensation, for periods of thirty (30) consecutive calendar days or less, while the owner lives on-site and in the dwelling, throughout the visiting occupant's stay. 31 CLICK HERE to Return to Agenda
Created: 2026-01-28 09:56:34 [EST]
(Supp. No. 7, Update 3)

"Hosting platform" means a person or entity who participates in the home-sharing or vacation rental (including short-term vacation rental) business by collecting or receiving a fee, directly or indirectly through an agent or intermediary, for conducting a booking transaction using any medium of facilitation, including but not limited to the Internet.
"Large lot" means a single "parcel," as defined in Section 9.280.030 (or successor provision, as may be amended from time to time) of this code, that meets all of the criteria set forth in subsection (A) of Section 3.25.057. "Local contact person" means the person designated by the owner or the owner's authorized agent or representative who shall be available twenty-four (24) hours per day, seven (7) days per week with the ability to respond to the location within thirty (30) minutes for the purpose of: (1) taking remedial action to resolve any complaints; and (2) responding to complaints regarding the condition, operation, or conduct of occupants of the short-term vacation rental unit. A designated local contact person must obtain a business license otherwise required by Sections 3.24.060 and 3.28.020 (or successor provisions, as may be amended from time to time) of this code.
“Long-term rental,” solely for purposes of this chapter, means any rental that is not a short-term vacation rental, as defined in this chapter.
"Management company" means any individual or entity, whether for profit or nonprofit, and regardless of entity type, such as a limited liability company, corporation, or sole proprietorship, that is retained by an owner to be the owner's authorized agent or representative, or is the owner of a short-term vacation rental unit subject to this chapter, and is engaged in or represents itself to be engaged in the business of managing real property. "Multi-unit lock-off STVR unit" means a specific design and construction of a single-family detached dwelling or multi-family attached unit(s) dwelling, which construction is designed to allow sections of such dwelling to be locked-off and separated into individual stand-alone units and meets one (1) or more of the exemptions set forth in Section 3.25.055. The design and construction of a multi-unit lock-off STVR unit provides at a minimum for:
a) Independent living facilities within the space secured by a lock-off door(s), b) Separate access to the exterior area(s) and public right-of-way without the need to enter or walk through the primary living area of the dwelling or other lock-off STVR units, and c) Permanent provisions for sleeping and sanitation (bathroom) within the space secured by a lock-off door(s).

Examples of multi-unit lock-off STVR units include a dwelling that has "hotel- or motel-like" exterior access door(s) and interior security door(s) that can be secured from either side between two (2) stand-alone units where each stand-alone unit has the ability to secure itself from the other adjacent unit; or, a two (2)-story dwelling (such as a two (2)-story duplex) in which the first floor and second floor are separate lock-off STVR units, and the first and second floors each have their own independent exterior access to the exterior areas and public right-of-way. A multi-unit lock-off STVR unit is a sub-type of short-term vacation rental unit and shall be subject to a general shortterm vacation rental permit or primary residence short-term vacation rental permit, as applicable, pursuant to this chapter.
"Notice of permit modification, suspension or revocation" means the notice the city may issue to an applicant, authorized agent or representative, local contact person, occupant, owner, responsible person, or any other person or entity authorized to be issued such notice under this code for a short-term vacation rental unit, upon a determination by the city of a violation of this chapter or other provisions of this code relating to authorized uses of property subject to this chapter.
"Occupant" means any person(s) occupying the dwelling at any time. "Owner" means the person(s) or entity(ies) that hold(s) legal and/or equitable title to the subject short-term vacation rental unit.
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Created: 2026-01-28 09:56:34 [EST]
(Supp. No. 7, Update 3)

"Primary residence" means a dwelling where an owner spends the majority of the calendar year on the property used as a short-term vacation rental unit, and the property is identified in the Riverside County assessor's record as the owner's primary residence.
"Primary residence short-term vacation rental permit" is a type of short-term vacation rental permit whereby the short-term vacation rental unit is the owner's primary residence, as defined herein in this section. "Property" means a residential legal lot of record on which a short-term vacation rental unit is located. "Qualified and certified large lot" has the meaning as set forth in Section 3.25.057. "Rent" has the same meaning as set forth in Section 3.24.020 (or successor provision, as may be amended from time to time) of this code.
"Rental agreement" means a written or verbal agreement for use and occupancy of a privately owned residential dwelling, including a dwelling that has been issued a short-term vacation rental permit or a dwelling that may have a short-term vacation rental permit which has been or is under suspension. "Responsible person" means the signatory of a rental agreement for the rental, use and occupancy of a short-term vacation rental unit, or any person(s) occupying the short-term vacation rental unit without a rental agreement but with the permission of the owner(s), owner's authorized agent(s) or representative(s), or local contact(s) who is at least twenty-one (21) years of age, and who is legally responsible for ensuring that all occupants of the short-term vacation rental unit and/or their guests comply with all applicable laws, rules and regulations pertaining to the use and occupancy of the subject short-term vacation rental unit. "Short-term vacation rental permit" means a permit that permits the use of a privately owned residential dwelling as a short-term vacation rental unit pursuant to the provisions of this chapter, and which incorporates by consolidation a transient occupancy permit and a business license otherwise required by Sections 3.24.060 and

3.28.020 (or successor provisions, as may be amended from time to time) of this code. A short-term vacation rental permit is one (1) of the following types: (1) general short-term vacation rental permit, (2) primary residence short-term vacation rental permit, or (3) homeshare short-term vacation rental permit, as defined in this section. “Short-term vacation rental” and “short-term rental” mean any privately owned residential dwelling rented for transient use for a period of thirty (30) consecutive calendar days or less. When calculating thirty (30) consecutive calendar days or less, count portions of calendar days as full days. "Short-term vacation rental unit" means any privately owned residential dwelling rented for transient use for a period of thirty (30) consecutive calendar days or less. For purposes of this definition: (a) “residential dwelling” includes, but is not limited to, a single-family detached or multiple-family attached unit, apartment house, condominium, cooperative apartment, duplex, or any portion of such dwellings or property or yard features appurtenant thereto (b) “transient use” includes, but is not limited to, dwelling or lodging purposes, such as overnight sleeping purposes; and (c) when calculating thirty (30) consecutive calendar days or less, count portions of calendar days as full days. For avoidance of doubt, the existence of a dwelling with a lawful occupant who has a rental agreement for more than thirty (30) consecutive days shall not be conclusive that a short-term vacation rental permit is not required if any other occupant is a subtenant, tenant, or transient, using that dwelling for a transient use for a period of thirty (30) consecutive days or less (see subsection (T) of Section 3.25.070). "STVR" may be used by city officials as an abbreviation for "short-term vacation rental." "Subtenant" means any person subject to, or claiming to be subject to, an arrangement in which a privately owned residential dwelling, rented to a lawful occupant, is in turn sub-rented or sub-leased by that lawful occupant to another person or third party, where said arrangement allows for the use and/or occupancy of the dwelling, whether or not said arrangement is with or without a rental agreement, and whether or not the lawful occupant still occupies the residential dwelling.
"Suspension" means that short-term vacation rental permit that is suspended pursuant to Section 3.25.090. 33 CLICK HERE to Return to Agenda
Created: 2026-01-28 09:56:34 [EST]
(Supp. No. 7, Update 3)

"Tenant" or "transient," means any person, including any subtenant, who seeks to rent or who does rent, or who occupies or seeks to occupy, or has a right to occupy, a privately owned residential dwelling, for thirty (30) consecutive calendar days or less.
(Ord. 619 § 1, Exh. A, 12-17-2024; Ord. No. 607, Exh. A, 12-5-2023; Ord. 595 § 1(Exh. A), 6-15-2021; Ord. 590 § 1(Exh. A), 3-16-2021; Ord. 586 § 1(Exh. A), 12-15-2020; Ord. 572 § 1, 2018; Ord. 563 § 1, 2017; Ord. 501 § 2, 2012)

3.25.070 Operational requirements and standard conditions.

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

1. An estate home may be established for short-term vacation rental use subject to evaluation and inspection of the property pursuant to Section 3.25.060(D)(1).

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

B. The responsible person(s) shall be an occupant(s) of the short-term vacation rental unit for which he, she or they signed a rental agreement for such rental, use and occupancy. The responsible person(s) shall also be responsible for any person(s) occupying the short-term vacation rental unit without a rental agreement with the permission of the owner(s), owner's authorized agent(s) or representative(s), or local contact(s) and their guests. The responsible person(s) shall be legally responsible for ensuring that all occupants of the shortterm vacation rental unit and/or their guests comply with all applicable laws, rules and regulations pertaining to the use and occupancy of the subject short-term vacation rental unit. The responsible person(s) shall not sub-rent or sub-lease the short-term vacation rental unit to a subtenant. No non-permanent improvements to the property, such as tents, trailers, or other mobile units, may be used as short-term vacation rentals.

The total number of occupants, including the responsible person(s) and children regardless of age, allowed to occupy any given short-term vacation rental unit may be within the ranges set forth in the table below. By the issuance of a short-term vacation rental permit, the city or its authorized designees, including police, shall have the right to conduct a count of all persons occupying the short-term vacation rental unit in response to a complaint or any other legal grounds to conduct an inspection resulting from the use of the short-term vacation rental unit, and the failure to allow the city or its authorized designees the ability to conduct such a count may constitute a violation of this chapter. The city council may by resolution further restrict occupancy levels provided those restrictions are within the occupancy ranges set forth below.

Number of Bedrooms Total of Overnight* Occupants Total Daytime** Occupants (Including Number of Overnight Occupants)
0—Studio 2 2—8
1 2—4 2—8
2 4—6 4—8
3 6—8 6—12
4 8—10 8—16
5 10—12 10—18
6 12—14 12—20
7 14 14—20
8 16 16—22
9 18 18—24
*Overnight (10:01 p.m.—6:59 a.m.)
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Created: 2026-01-28 09:56:34 [EST]
(Supp. No. 7, Update 3)

**Daytime (7:00 a.m.—10:00 p.m.)
C. The person(s) listed as the local contact person in the short-term vacation rental unit's online registration profile shall be available twenty-four (24) hours per day, seven (7) days per week, with the ability to respond to the location within thirty (30) minutes to complaints regarding the condition, operation, or conduct of occupants of the short-term vacation rental unit or their guests. The person(s) listed as a local contact person shall be able to respond personally to the location, or to contact the owner or the owner's authorized agent or representative to respond personally to the location, within thirty (30) minutes of notification or attempted notification by the city or its authorized short-term vacation rental designated hotline service provider. No provision in this section shall obligate the city or its authorized short-term vacation rental designated hotline service provider to attempt to contact any person or entity other than the person(s) listed as the local contact person.

D. The owner, the owner's authorized agent or representative and/or the owner's designated local contact person shall use reasonably prudent business practices to ensure that the occupants and/or guests of the short-term vacation rental unit do not create unreasonable or unlawful noise or disturbances, engage in disorderly conduct, or violate any applicable law, rule or regulation pertaining to the use and occupancy of the subject short-term vacation rental unit.

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

F. Prior to occupancy of a short-term vacation rental unit, the owner(s) or the owner's authorized agent(s) or representative(s) and/or the owner’s designated local contact person shall:

1. Obtain the contact information of the responsible person;

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

G. The owner, the owner's authorized agent or representative and/or the owner's designated local contact person shall, upon notification or attempted notification that the responsible person and/or any occupant and/or guest of the short-term vacation rental unit has created unreasonable or unlawful noise or disturbances, engaged in disorderly conduct, or committed violations of any applicable law, rule or regulation pertaining to the use and occupancy of the subject short-term vacation rental unit, promptly respond within thirty (30) minutes to immediately halt and prevent a recurrence of such conduct by the 35 CLICK HERE to Return to Agenda
Created: 2026-01-28 09:56:34 [EST]
(Supp. No. 7, Update 3)

responsible person and/or any occupants and/or guests. Failure of the owner, the owner's authorized agent or representative and/or the owner's designated local contact person to respond to calls or complaints regarding the condition, operation, or conduct of occupants and/or guests of the short-term vacation rental unit within thirty (30) minutes, shall be subject to all administrative, legal and equitable remedies available to the city.

H. The owner of a short-term vacation rental unit that has a valid homeshare short-term vacation rental permit shall occupy the dwelling during the transient stay. A violation of any provision of this chapter, this code, or any other applicable federal, state, or local laws or codes, by the owner, owner's authorized agent or representative and/or the owner's designated local contact person shall be subject to all administrative, legal and equitable remedies available to the city.

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

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

K. Reserved.

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

M. Guesthouses, detached from the primary residential dwelling on the property, or the primary residential dwelling on the property, may be rented pursuant to this chapter as long as the guesthouse and the primary residential dwelling are rented to one (1) party; provided, however, that this Subsection (M) does not apply to multi-unit lock-off STVR units.

N. The owner and/or the owner's authorized agent or representative shall post the number of authorized bedrooms, the current short-term vacation rental permit number, and whether the short-term vacation rental unit is permitted as a “Homeshare,” as defined in this chapter, at the beginning or top of any advertisement that promotes the availability or existence of a short-term vacation rental unit; provided, however, this requirement may be satisfied if a hosting platform used by the owner and/or owner's authorized agent or representative provides a designated field(s) to post the number of authorized bedrooms and the current short-term vacation rental permit number for the short-term vacation rental unit.

In the instance of audio-only advertising of the same, the short-term vacation rental permit number and the number of authorized bedrooms, and whether the short-term vacation rental unit is permitted as a “Homeshare” shall be read as part of the advertisement.

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

P. The city manager, or designee, shall have the authority to impose additional conditions on the use of any given short-term vacation rental unit to ensure that any potential secondary effects unique to the subject 36 CLICK HERE to Return to Agenda
Created: 2026-01-28 09:56:34 [EST]
(Supp. No. 7, Update 3)

short-term vacation rental unit are avoided or adequately mitigated, including, but not limited to, a mitigating condition that would require the installation of a noise monitoring device to keep time-stamped noise level data from the property that will be made available to the city upon city's reasonable request.

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

R. On-site parking shall be on an approved driveway, garage, and/or carport areas only; this section does not impose restrictions on public street parking regulations. Recreational vehicles may be parked in accordance with the provisions set forth in Section 9.60.130 (or successor provision, as may be amended from time to time) of this code.

S. No "apartment," "apartment building," or "apartment project," as defined in Section 9.280.030 (or successor provision, as may be amended from time to time) of this code shall be eligible to apply for or obtain a shortterm vacation rental permit.

T. A privately owned residential dwelling, regardless of whether it is permitted or not as a short-term vacation rental unit, rented for a period of thirty one (31) consecutive calendar days or more, counting portions of calendar days as full days, by any person(s), with or without a rental agreement, that is subsequently subrented or sub-leased to a Subtenant for a period of thirty (30) consecutive days or less, counting portions of calendar days as full days, constitutes use of the privately owned residential dwelling as a short-term vacation rental unit and is subject to the provisions of this chapter. This Subsection (T) is declaratory of existing law under this chapter.
(Ord. 619 § 1, Exh. A, 12-17-2024; Ord. No. 608, § 1, 12-5-2023; Ord. No. 607, Exh. A, 12-5-2023; Ord. 590 § 1(Exh.

A), 3-16-2021; Ord. 586 § 1(Exh. A), 12-15-2020; Ord. 577 § 1, 2019; Ord. 572 § 1, 2018; Ord. 563 § 1, 2017; Ord. 501 § 2, 2012)
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF LA QUINTA )
I, MONIKA RADEVA, City Clerk of the City of La Quinta, California, do hereby certify the foregoing to be a full, true, and correct copy of Ordinance No. 631 which was introduced at a regular meeting on the 17th day of March 2026, and was adopted at a regular meeting held on the 7th day of April 2026, not being less than 5 days after the date of introduction thereof.

I further certify that the foregoing Ordinance was posted in three places within the City of La Quinta as specified in the Rules of Procedure adopted by City Council Resolution No. 2022-027.
________________________
MONIKA RADEVA, City Clerk
City of La Quinta, California

DECLARATION OF POSTING
I, MONIKA RADEVA, City Clerk of the City of La Quinta, California, do hereby certify that the foregoing ordinance was posted on April 8, 2026, pursuant to Council Resolution. ________________________
MONIKA RADEVA, City Clerk
City of La Quinta, California
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City of La Quinta
CITY COUNCIL MEETING: April 7, 2026

STAFF REPORT
AGENDA TITLE: AUTHORIZE OVERNIGHT TRAVEL FOR ONE SENIOR CODE

COMPLIANCE OFFICER TO ATTEND THE CALIFORNIA ASSOCIATION OF CODE ENFORCEMENT OFFICERS 2ND ANNUAL LEADERSHIP SUMMIT IN ELK GROVE, CALIFORNIA, MAY 14-15, 2026

RECOMMENDATION
Authorize overnight travel for one Code Compliance Officer to attend the California Association of Code Enforcement Officers 2nd Annual Leadership Summit in Elk Grove, California, May 14-15, 2026.

EXECUTIVE SUMMARY
• The California Association of Code Enforcement Officers (CACEO) provides trainings and professional education for code enforcement officers, and hosts an annual Leadership Summit.
• Attending the CACEO Leadership Summit offers Senior Code Officers the opportunity to improve their skills in effective leadership, learn how to drive results through innovation and collaboration, and develop effective strategies to adapt, remain resilient, and manage conflict and stress.

FISCAL IMPACT
Estimated expenses are $1,500, which includes registration, transportation, lodging, and meals. Funds are available in fiscal year 2025/26 Code Compliance/Animal Control training budget (Account No. 101-6004-60320).

BACKGROUND/ANALYSIS
CACEO was founded in the early 1980s to provide training and professional education for code enforcement officers. The organization is dedicated to advance the code enforcement profession by serving and supporting its members by offering valuable educational resources, providing legislative advocacy on issues that impact the field and creating a network for members to connect, exchange information and share successful practices.

The CACEO Leadership Summit is a valuable opportunity for Senior Code Enforcement Officers to learn from industry leaders about emerging trends, and practical strategies that can be applied in a dynamic environment. The summit is designed to enhance leadership capabilities while fostering connections with other professionals in the field.

CONSENT CALENDAR ITEM NO. 4
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Sessions will focus on navigating challenges and change, preparing participants with tools to manage difficult situations, address conflict, and maintain productivity in highpressure events. Attendees will also learn strategies to inspire and motivate others, and ability to positively influence both staff and the public. The program also emphasizes the importance of building strong leadership foundations along with the development of ethical, inclusive, and effective leadership practices.

ALTERNATIVES
Council may elect not to authorize this request.

Prepared by: Lisa Chastain, Public Safety Management Analyst Approved by: Martha Mendez, Public Safety Deputy Director 40 CLICK HERE to Return to Agenda
City of La Quinta
CITY COUNCIL MEETING: April 7, 2026

STAFF REPORT
AGENDA TITLE: APPROVE AMENDMENT NO. 5 TO REIMBURSEMENT

AGREEMENT WITH COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS FOR AVENUE 48 ARTS AND MUSIC LINE PROJECT NO. 2020-08

RECOMMENDATION
Approve Amendment No. 5 to the Reimbursement Agreement with the Coachella Valley Association of Governments for the Avenue 48 Arts and Music Line Project No. 2020-08; and authorize the City Manager to execute the amendment.

EXECUTIVE SUMMARY
• Coachella Valley Association of Governments (CVAG) is the lead agency for the Avenue 48 Arts and Music Line project improvements and has contracted Albert A. Webb Associates to design the project (Attachment 1). • In March 2020 the City approved a reimbursement agreement with CVAG (Agreement) along with the Cities of Coachella and Indio. The participating cities’ local share of the design cost is determined by their respective linear mileage of the project.
• CVAG was successful in receiving an Active Transportation Program (ATP) grant in the amount of $36.483 million for the construction.
• Amendment No. 1 updated the cost share associated with the design, Amendment No. 2 added additional design, Amendment No. 3 incorporated construction management costs and added the non-infrastructure services, and Amendment No. 4 added additional design to the Agreement.
• Amendment No. 5 extends the Agreement term through December 31, 2029, and authorizes additional scope of services for Albert A. Webb Associates for the project design.

FISCAL IMPACT
Amendment No. 5 will revise CVAG’s 75% total regional share under the Agreement to $6,384,275, and the 25% local share to $2,128,091. The total project cost is allocated as follows:

CONSENT CALENDAR ITEM NO. 5
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Executed Amendment
Amount
Regional
Share
Local
Share
Original Contract March 18, 2020 $2,731,897 $2,048,923 $682,974 Amendment No. 1 February 28, 2022 $0.00 $0.00 $0.00
Amendment No. 2 December 5, 2022 $1,060,000 $795,000 $265,000 Amendment No. 3 December 4, 2023 $1,494,063 $1,120,547 $373,516 Amendment No. 4 April 29, 2024 $2,234,565 $1,675,924 $558,641 Amendment No. 5 June 30, 2025 $991,841 $743,881 $247,960 Total Contract notto-exceed $8,512,366 $6,384,275 $2,128,091 The 25%, or $2,128,091, local share is divided between the Cities of La Quinta, Indio, and Coachella based on their respective linear mileage of the project; each city’s share is detailed in the table below. The City’s total share of the 25% is $532,023, which includes an additional $61,990 for Amendment No. 5. There is sufficient funding in the project budget (401-0000-60188-202008-D) for the additional cost to the City.

La Quinta Indio Coachella Total Local Share (25%)
$532,023
(25%)
$1,425,821
(67%)
$170,247
(8%)
$2,128,091
(100%)

BACKGROUND/ANALYSIS
CVAG coordinated with the cities of La Quinta, Coachella, Indio, and Riverside County to develop the 10-mile project. The Arts and Music Line is a community connector to the CV Link that’s located primarily along Avenue 48 between Highway 86 and Washington Street as depicted in the project map included as Attachment 1. The eastern end will extend along Dillon Road to the Spotlight 29 Casino. The western end will extend southward along Washington Street and then further west and south along Eisenhower Drive, connecting to the Bear Creek Trailhead at the western terminus of Calle Tampico.

The project’s design will incorporate both light and sound and provide pedestrians and cyclists with safe access to the music and art festivals at the Empire Polo Grounds.

Partnerships with two school districts and Golden Voice provides an opportunity to feature students’ art and music along the route.

In March 2020, the City executed a reimbursement agreement with CVAG and the cities of Indio and Coachella for the design of the project. The Avenue 48 Arts and Music Line is a priority identified in CVAG’s Transportation Project Prioritization Study (TPPS) and was therefore eligible for regional transportation funding. By designing this project, CVAG was able to secure a $36.483M ATP grant for construction.

Amendment No. 1, executed February 2022, revised the cost share after a portion of the La Quinta improvements was removed to improve the chances of receiving ATP grant funding.
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Amendment No. 2, executed December 2022, included additional design costs.

Amendment No. 3, executed December 2023, extended the term of the Agreement through December 31, 2025, incorporated the costs associated with pre-construction and construction management services per CVAG’s agreements with Anser Advisory Management, LLC and T.Y. Lin International, and added non-infrastructure services per CVAG’s agreement with Chen Ryan Associates.

Amendment No. 4, executed April 2024, included additional design services and costs.

Proposed Amendment No. 5 (Attachment 2) extends the term of the Agreement through December 31, 2029, authorizes additional project design services in accordance with the enclosed Albert A. Webb Associates letter, dated April 17, 2025, and increases the total local share to a not-to-exceed amount of $2,128,091.

ALTERNATIVES
Council may elect not to approve this amendment.

Prepared by: Carley Escarrega, Administrative Technician Approved by: Bryan McKinney, PE, Public Works Director/City Engineer Attachments: 1. Avenue 48 Arts and Music Line Project Map

2. Amendment No. 5 to Reimbursement Agreement With CVAG 43 CLICK HERE to Return to Agenda

MILES AVE
AVEN E 46
AVENUE 50

LAE TAMPICO
AVENUE 52
AVENUE 54
4, 300 8, 600 Feet ' 6.

PA, ar
5-
ilVir.FiSIDE COUNTY
PROJECT LOCATION.
w- 11 o
Legend
Proposed Improvements
amp Arts and Music Line
School Connection Spurs
Connection to CV Link
Existing/ Planned Conditions
CV Link
Bicycle Lanes
Bear Creek Trail
Schools
Polo Fields/ Local Event Venue
Coachella
Indio
La Quinta
Unincorporated Riverside Count)
1 CVAG Arts and Music Line
Active Transportation Program Cycle 6 Grant Application Project Location Map
ATTACHMENT 1
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Contract No. CVAG-20-018-05
Project: ATP – Arts and Music Line

AMENDMENT NUMBER FIVE
TO THE

REIMBURSEMENT AGREEMENT BY AND BETWEEN

CVAG AND THE CITY OF LA QUINTA

FOR THE
ATP – ARTS AND MUSIC LINE
This AMENDMENT NUMBER FIVE is made and entered into this 30th day of June 2025, by and between the Coachella Valley Association of Governments, a California joint powers agency (CVAG), the City of La Quinta (Agency) and is made with reference to the following background facts and circumstances. All other terms and conditions shall remain the same as stated in the original agreement dated March 18, 2020 for the ATP – Arts and Music Line Project.

1. This Amendment Number Five extends the term to December 31, 2029.

2. This Amendment Number Five authorizes the additional scope of services in accordance with the attached Albert A. Webb Associates letter dated April 17, 2025 for the not-to-exceed amount of $991,841. The total amount payable shall not exceed $7,095,253.

3. This Amendment Number Five increases CVAG’s Regional Share to $6,384,275, and the Local Share to $2,128,091.

4. This Amendment Number Five authorizes CVAG to amend the cost-sharing agreements between CVAG and the Cities of La Quinta, Indio and Coachella for design costs related to the ATP - Arts and Music Line, by adding $991,841 to the total costs for a revised total of $8,512,366 which represents an additional $743,881 totaling $6,384,275 for the 75 percent CVAG share and an additional $247,960 totaling $2,128,091 for the 25 percent local share.

CVAG Approval
Date
Amendment
Amount
Regional
Share
(75%)
Local
Share
(25%)
Original Contract March 18, 2020 $2,731,897 $2,048,923 $682,974 Amendment Number One February 28, 2022 No Cost $0 $0
Amendment Number Two December 5, 2022 $1,060,000 $795,000 $265,000 Amendment Number Three December 4, 2023 $1,494,063 $1,120,547 $373,516 Amendment Number Four April 29, 2024 $2,234,565 $1,675,924 $558,641 Amendment Number Five June 30, 2025 $991,841 $743,881 $247,960 Total Contract not-to-exceed $8,512,366 $6,384,275 $2,128,091 Based on the revised additional $247,960 to the local share, the revised 25 percent local share, totals $2,128,091 per this amendment, which will be split between the cities of La Quinta, Coachella and Indio as follows:

La Quinta Indio Coachella Total Local Share
(25%)
$532,023 $1,425,821 $170,247 $2,128,091
(25%) (67%) (8%) (100%)
ATTACHMENT 2
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Contract No. CVAG-20-018-05
Project: ATP – Arts and Music Line
The parties hereto have caused this Amendment Number Five to be executed by their duly authorized representatives on the above-reference date.

ATTEST CITY OF LA QUINTA
By: ___________________________ By: ___________________________ Monika Radeva, City Clerk Jon McMillen, City Manager

ATTEST COACHELLA ASSOCIATION OF

GOVERNMENTS
By: _______________________________ By: _____________________________ Allen McMillen, Procurement and Contracts Tom Kirk, CVAG Executive Director 46 CLICK HERE to Return to Agenda
Contract No. CVAG-20-018-05
Project: ATP – Arts and Music Line
Attachment A-1
Albert A. Webb Associates – Arts & Music Line Amendment No. 5 Additional Scope of Services and Compensation
Please refer to the following Albert A. Webb Associates letter dated April 17, 2025. 47 CLICK HERE to Return to Agenda
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City of La Quinta
CITY COUNCIL MEETING: April 7, 2026

STAFF REPORT
AGENDA TITLE: APPROVE AGREEMENTS FOR CONTRACT SERVICES WITH

KEYSER MARSTON ASSOCIATES, INC AND THE NATELSON DALE GROUP, INC

FOR ON-CALL ECONOMIC DEVELOPMENT CONSULTING SERVICES

RECOMMENDATION
Approve agreements for contract services with Keyser Marston Associates, Inc. and The Natelson Dale Group, Inc., for on-call economic development consulting services; and authorize the City Manager to execute the agreements.

EXECUTIVE SUMMARY
 Economic development consulting services are needed to conduct financial analysis and develop strategies on an on-call, as-needed basis.  In March 2026, staff published a Request for Qualifications (RFQ) seeking proposals from qualified and experienced firms to provide on-call economic development services and received five responses.
 Keyser Marston Associates, Inc. (KMA) and The Natelson Dale Group, Inc. (NDG) were selected as best qualified based on their experience, versatility, and local market knowledge. The two proposed agreements are for a combined contract amount not to exceed $530,000 from April 8, 2026, through June 30, 2031.

FISCAL IMPACT
The proposed agreements are for a combined aggregate not to exceed amount of $530,000 as detailed in the table below. Funds are available in fiscal year (FY) 2025/26 budget in the Professional Services account no. 101-1002-60103, and will be budgeted pursuant to the agreements terms for future FYs.

On-Call Economic Development Services
Initial Term Extended Term
FY 2025/26 $30,000 FY 2028/29 $100,000
FY 2026/27 $100,000 FY 2029/30 $100,000
FY 2027/28 $100,000 FY 2030/31 $100,000
Total $530,000
CONSENT CALENDAR ITEM NO. 6
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BACKGROUND/ANALYSIS
Economic development consulting services from qualified firms allow the City to conduct studies such as economic impact reports, workforce and employment impact analyses, market and feasibility analyses, return on investment analyses, as well as identify strategic opportunities for job creation, investment, business expansion, infrastructure improvement, and tax revenue projections, which assist the City in evaluation of policy options and maximize economic development outcomes.

In March 2026, staff published a Request for Qualifications (RFQ) seeking proposals from qualified and experienced firms to provide on-call economic development services and received five proposals. KMA and NDG were selected as most qualified to provide the services based on their experience, broad program and service offerings, and local market knowledge.

Staff seeks Council approval of two agreements, from April 8, 2026, through June 30, 2031, for a combined aggregate not to exceed amount of $530,000, with KMA (Attachment 1) and NDG (Attachment 2), to allow for the City to conduct necessary studies and analyses on an on-call as-needed basis.

ALTERNATIVES
Council may elect not to approve or to modify the agreements.

Prepared by: Oscar Mojica, Deputy City Clerk
Approved by: Jon McMillen, City Manager
Attachments: 1. Agreement for Contract Services with KMA

2. Agreement for Contract Services with NDG
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Revised – Sept. 2025

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 Charter City organized under the Constitution and laws of the State of California with its principal place of business at 78495 Calle Tampico, La Quinta, California 92253, and Keyser Marston Associates, Inc. with a place of business at 777 South Figueroa St. Suite 2555, Los Angeles, CA 90017 (“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 Economic Development Consulting, 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.

ATTACHMENT 1
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1.5 Familiarity with Work. By executing this Agreement, Contracting Party warrants that (a) it has thoroughly investigated and considered the Services to be performed, (b) it has investigated the site where the Services are to be performed, if any, and fully acquainted itself with the conditions there existing, (c) it has carefully considered how the Services should be performed, and (d) it fully understands the facilities, difficulties, and restrictions attending performance of the Services under this Agreement.

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

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

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

1.7 Additional Services. In accordance with the terms and conditions of this Agreement, Contracting Party shall perform services in addition to those specified in the Scope of Services (“Additional Services”) only when directed to do so by the Contract Officer, or assigned designee, provided that Contracting Party shall not be required to perform any Additional Services without compensation. Contracting Party shall not perform any Additional Services until receiving prior written authorization through a duly executed written amendment or change order from the Contract Officer, or assigned designee, incorporating therein any adjustment in (i) the Contract Sum, in accordance with Section 2.3 of this Agreement, 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. 60 CLICK HERE to Return to Agenda
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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 Five Hundred and Thirty Thousand Dollars ($530,000) (the “Contract Sum”), except as provided in Section 1.7. Contracting Party expressly acknowledges and agrees that the Contract Sum in this Agreement is the aggregate total amount covering this Agreement, that certain Agreement for Contract Services by and between the City and The Natelson Dale Group, Inc., of or about even date as this Agreement, such that the Contract Sum as defined herein is the maximum amount available for services provided under the two agreements. 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.
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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 through a duly executed amendment or change order 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%) of the Contract Sum or Fifteen Thousand Dollars ($15,000), whichever is less, 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 without prior written approval through a duly executed amendment or change order 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 are 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 April 8, 2026, 62 CLICK HERE to Return to Agenda
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and terminate on June 30, 2031 (“Initial Term”). This Agreement may be extended upon mutual agreement by both parties (“Extended Term”), and executed in writing.

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: Kevin Engstrom, Senior Principal
Telephone No.: (213) 622-8095
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 Jon McMillen, City Manager 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 63 CLICK HERE to Return to Agenda
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transfer shall release Contracting Party of any liability hereunder without the express consent of City.

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

City shall have no voice in the selection, discharge, supervision, or control of Contracting Party’s employees, servants, representatives, or agents, or in fixing their number or hours of service. Contracting Party shall perform all Services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Contracting Party shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Contracting Party in its business or otherwise or a joint venture or a member of any joint enterprise with Contracting Party. Contracting Party shall have no power to incur any debt, obligation, or liability on behalf of City. Contracting Party shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. Except for the Contract Sum paid to Contracting Party as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Contracting Party for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Contracting Party for injury or sickness arising out of performing the Services hereunder. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Contracting Party and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits. Contracting Party agrees to pay all required taxes on amounts paid to Contracting Party under this Agreement, and to indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason 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.
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4.6 City Cooperation. City shall provide Contracting Party with any plans, publications, reports, statistics, records, or other data or information pertinent to the Services to be performed hereunder which are reasonably available to Contracting Party only from or through action by City.

5. INSURANCE.

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

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

6. INDEMNIFICATION.

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

7. RECORDS AND REPORTS.

7.1 Reports. Contracting Party shall periodically prepare and submit to the Contract Officer, or assigned designee, such reports concerning Contracting Party’s performance of the Services required by this Agreement as the Contract Officer, or assigned designee, shall require. Contracting Party hereby acknowledges that City is greatly concerned about the cost of the Services to be performed pursuant to this Agreement. For this reason, Contracting Party agrees that if Contracting Party becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Services contemplated herein or, if Contracting Party is providing design services, the cost of the project being designed, Contracting Party shall promptly notify the Contract Officer, or assigned designee, of said fact, circumstance, technique, or event and the estimated 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 65 CLICK HERE to Return to Agenda
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enable the Contract Officer, or assigned designee, to evaluate the performance of such Services. Any and all such Books and Records shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer, or assigned designee, shall have full and free access to such Books and Records at all times during normal business hours of City, including the right to inspect, copy, audit, and make records and transcripts from such Books and Records.

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

7.3 Ownership of Documents. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents, and other materials plans, drawings, estimates, test data, survey results, models, renderings, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings, digital renderings, or data stored digitally, magnetically, or in any other medium prepared or caused to be prepared by Contracting Party, its employees, subcontractors, and agents in the performance of this Agreement (the “Documents and Materials”), with the exception of proprietary computer models developed by Contracting Party, 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.
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7.5 Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, rights of reproduction, and other intellectual property embodied in the Documents and Materials. Contracting Party shall require all subcontractors, if any, to agree in writing that City is granted a non-exclusive and perpetual license for the Documents and Materials the subcontractor prepares under this Agreement. Contracting Party represents and warrants that Contracting Party has the legal right to license any and all of the Documents and Materials. Contracting Party makes no such representation and warranty in regard to the Documents and Materials which were prepared by design professionals other than Contracting Party or provided to Contracting Party by City.

Contracting Party shall retain ownership of its proprietary computer models used in performance of services under this agreement, provided City is granted a non-exclusive perpetual license to use the outputs and deliverables generated by such models for the purposes of the Project and any related future work. 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.
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8.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer, or assigned designee; provided that if the default is an immediate danger to the health, safety, or general welfare, City may take such immediate action as City deems warranted.

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

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

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

8.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights 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 68 CLICK HERE to Return to Agenda
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Services hereunder except such as may be specifically approved by the Contract Officer, or assigned designee. Contracting Party shall be entitled to compensation for all Services rendered prior to receipt of the notice of termination and for any Services authorized by the Contract Officer, or assigned designee, thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, or assigned designee, except amounts held as a retention pursuant to this Agreement.

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

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

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

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 69 CLICK HERE to Return to Agenda
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the express written consent of the Contract Officer, or assigned designee. Contracting Party agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement.

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

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

10. MISCELLANEOUS PROVISIONS.

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

To City:

CITY OF LA QUINTA
Attention: Jon McMillen, City Manager
78495 Calle Tampico
La Quinta, California 92253
To Contracting Party:

KEYSER MARSTON ASSOCIATES, INC
Kevin Engstrom, Senior Principal
777 South Figueroa St., Suite 2555
Los Angeles, CA 90017

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

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

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

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

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

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:

KEYSER MARSTON ASSOCIATES,
INC.

Kevin Engstrom, Senior Principal
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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Exhibit A

Exhibit A
Scope of Services

1. Services to be Provided:

Contracting Party shall perform comprehensive economic development and economic impact analysis on an on-call, as needed basis including, but not limited to the following, based on the methodology described herein:
 Plan, organize, and participate in economic development strategies  Plan, organize, and develop infrastructure financing strategies  Conducting special studies and preparing comprehensive reports such as:
o Fiscal and economic impact reports
o Workforce and employment impact analyses
o Return on investment analyses
o Market and feasibility analyses
o Regional impact studies
o Geographic analyses
o Other analyses and studies as assigned
 Identify strategic opportunities for job creation, investment, business expansion and infrastructure improvement
 Assess workforce related economic effects such as employment, wage, and job creation impacts
 Evaluate and prepare tax revenue projections
 Propose and assist in negotiation of terms for development and tax revenue sharing agreements
 Evaluate policy options and projected economic effects  Make recommendations to maximize economic development outcomes  Propose metrics for ongoing monitoring and evaluation of development projects  Identify and engage with key stakeholders
 Prepare financial scenarios illustrating ramifications of proposed development terms  Identify direct, indirect and induced impacts
 Preparation of reports in compliance with Government Code Section 53083  Other responsibilities as assigned
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City of La Quinta | Qualifications: Economic Development – On-Call Services | March 2026 | 17 Following is an outline of the steps that KMA may undertake in order to complete work that may be requested by the City. Please note that these steps are based on a typical scope of work and may be subject to change based on the nature of each analysis, the number of properties or sites identified by the City for analysis, the number of key staff dedicated to the project, and any additional services or meetings requested by the City in order to complete the project.

Project Feasibility Analysis
A pro forma analysis is conducted to evaluate the feasibilty of a proposed project. The analysis includes an evaluation of project costs, revenues and anticipated returns. Based on the relationship of these factors, the feasibility of a project can be measured. If the feasibility of a project is in question, KMA will work with the City to identify implementation opportunities for the proposed project. Land uses within KMA’s expertise include mixed-use, retail, industrial, market rate and affordable housing, office, and hotel. This scope of work may include the following tasks:
• Review project site plans and elevations to gain an understanding of the proposed development program • Identify comparable projects in the region to assess proposed quality level • Review project costs
• Compare project costs to similar quality projects in the region • Estimate project costs, including direct/hard construction costs, indirect/soft costs and capitalized financing costs • Identify potential project tenants
• Conduct market research to identify reasonable pricing and programming assumptions • Estimate project rents, sales prices and vacancy levels • Estimate project operating costs based on similar projects in the region • Evaluate project feasibility utilizing appropriate return hurdles • Identify appropriate method for measuring returns, including: Internal Rate of Return (IRR), Discounted Cash Flow Analysis, Stabilized Return on Costs and/or Return on Equity • Summarize project feasibility. If project is not feasible, KMA will:
• Identify implementation tools to incentivize development and maintain economic health of the City • Evaluate the impact of alternative funding sources, including New Market Tax Credits, EB-5 financing, Community Development Block Grant and other relevant opportunities • Identify opportunities for City and developer to engage in a public/private partnership • Assist in briefing senior management and/or preparation for City Council Meetings as requested • Meet with City Staff as requested
• Provide other related services as requested by City
Exhibit A

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City of La Quinta | Qualifications: Economic Development – On-Call Services | March 2026 | 18 Market Analysis
KMA will evaluate and summarize the market conditions effecting development opportunities in La Quinta. By collecting information from appropriate sources, KMA will have the data necessary to assess market demand and prepare accurate pro forma analyses of proposed projects. The market research allows KMA to participate in planning efforts, identify key land uses/industries with market support and provide the City with recommendations on feasible techniques and methods for financing real estate projects. This scope of work includes the following:
• Summarize the existing socio-economic and business/employment characteristics of the market area population • Identify current productivity levels (e.g. retail sales) • Prepare surplus leakage analysis identifying retail tenant opportunities • Collect rent, vacancy and inventory data from industry sources • Collect land and building sales data for commercial properties • Contact brokers active in the market area to gain insights into potential tenants and real estate data • Identify rents, sales prices and vacancy levels for existing for-sale and rental residential • Summarize the characteristics of new residential projects including unit sizing, pricing, inventory and absorption schedules
• Prepare demand projections for retail, office, industrial, residential and hotel uses • Identify potential tenants and market area voids
• Identify key opportunity sites
• Evaluate physical issues affecting viability of opportunity sites • Overall, KMA will help the City to understand existing market conditions, which will allow the City to best identify the strengths, weaknesses and opportunities for key development sites • Assist in briefing senior management and/or preparation for City Council Meetings as requested • Meet with City Staff as requested
• Provide other related services as requested by City
Exhibit A

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City of La Quinta | Qualifications: Economic Development – On-Call Services | March 2026 | 19 Highest and Best Use Analysis
A market analysis provides the basis for highest and best use analyses, in which KMA evaluates a range of land use alternatives and provides recommendations focused on maximizing economic viability of a site or opportunity area.

Particular attention is given to identifying voids in the marketplace and the potential overbuilding of some types of spaces. For these analyses, KMA may consider a range of residential and non-residential uses as requested by the City.

This scope of work includes the following:
• Summarize the existing socio-economic and business/employment characteristics of the market area population • Conduct a detailed market study of the City and the market area’s retail, office, industrial and residential markets, including demand projections and identification of near to mid-term development opportunities for various land uses
• Contact brokers active in the market area to gain insights into potential tenants and real estate data • Identify potential tenants and market area voids
• Identify key opportunity sites
• Review existing economic, physical and regulatory barriers to identify potential development limitations and issues
• Evaluate a range of land use alternatives for key opportunity sites under both existing and revised zoning conditions • Determine depth of market demand, likely development configurations, and potential mix of products and tenant types under various land use scenarios
• Provide recommendations for the opportunity sites focusing on maximizing economic viability and compatibility with current surrounding land uses
• Assist in briefing senior management and/or preparation for City Council Meetings as requested • Meet with City Staff as requested
• Provide other related services as requested by City
Exhibit A

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City of La Quinta | Qualifications: Economic Development – On-Call Services | March 2026 | 20 Financial Analysis /Real Property Negotiation Services
Financial Analysis & Negotiation Services involve the review, evaluation and/or preparation of various real estate analyses and the review and evaluation of comparable sale or lease transaction structures and key business and legal provisions. Financial Services also require an understanding of, as appropriate, seller’s or buyer’s goals, objectives and return requirements. As requested, KMA will review and evaluate any or all of the above and summarize them as part of the assisting in the negotiation and completion of the City acquisition or disposition transactions. Major tasks include the following:
• Evaluate development costs
• Identify approriate method for measuring returns, including: Internal Rate of Return (IRR), Discounted Cash Flow Analysis, Stabilized Return on Costs and/or Return on Equity • Review debt and equity requirements
• Preparation of cash flow projections
• Preparing return analyses reflecting the appropriate metrics • As necessary, as part of an evaluation, prepare market analyses, pro forma analyses and development feasibility analyses to confirm or reject developer offers
• Review lease and sale transaction documents to assist City in establishing provisions for rent or sale price, rent adjustments, reappraisals, evidence of financing, assignment and transfer requirements, etc. • Assist and advise City in establishing negotiating strategy related to scope of development, lease term, financial terms and schedule of performance and other items
• Prepare alternative cash flow projection scenarios to measure impact of proposed negotiating positions • Assist and advise City in sale and lease negotiations • Prepare staff or consultant reports related to the transaction • Assist with drafting of key financial elements of legal documents • Review legal documents to ensure the veracity of the financial conditions • Prepare requests for qualifications and/or proposals and assist in developer selection process • Assist in briefing senior management and/or preparation for City Council Meetings as requested • Meet with City Staff as requested
• Provide other related services as requested by City
Exhibit A

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City of La Quinta | Qualifications: Economic Development – On-Call Services | March 2026 | 21 Fiscal/ Economic Analyses
The economic and financial impact of a project is important to understand for the purposes of directing the City’s resources. To that end, major tasks KMA will undertake include:
• Ensure the project is economically feasible through a review of market conditions • Evaluate the on-site City revenues generated by a project including, but not limited to, sales tax, property tax and other relevant revenue sources
• Estimate on-site employment generated by a project
• Estimate the potential City service costs associated with a proposed project, including public safety, public works, city management and other relevant costs
• Estimate the direct, indirect and induced economic impact of a project utilizing the appropriate multipliers • Estimate direct, indirect and induced employment generated by a proposed project • Estimate construction employment generated by a project • Review the financial capability of developers to ensure they have the financial wherewithal to undertake the proposed development • Review tenant, brand and operator agreements to ensure the quality of the proposed development is consistent with City expectations
• Consider impact of existing and new entitlements on project feasibility and City’s opportunities for community benefits if new entitlements are pursued
• Identify opportunities for City and developer to engange in a public/private partnership • Assist in briefing senior management and/or preparation for City Council Meetings as requested • Meet with City Staff as necessary
• Provide other related services as requested by the City Disposition/Valuation of City Owned Properties
The disposition/ valuation services will rely on financial and pro forma analyses, evaluation of project area comparables sales, review of appraisals and other relevant factors. The analysis includes an evaluation of project costs, revenues and anticipated returns. Based on the relationship of these factors, the value of a site can be measured. To this end, KMA will undertake the following tasks:
• Review project site plans and elevations to gain an understanding of the proposed development program • Estimate project costs, including: direct/hard construction costs, indirect/soft costs and capitalized financing costs • Estimate project rents, sales prices and vacancy levels. • Estimate project operating costs based on similar projects in the region • Evaluate site value assuming developer returns based on current and anticipated market conditions • Review market area land and building comps to assist in evaluating value • Assist City in negotiating appropriate transaction terms • Provide expert witness testimony
• Assist in briefing senior management and/or preparation for City Council Meetings as requested • Meet with City Staff as necessary
• Provide other related services as requested by the City Exhibit A

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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, Exhibit A

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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.

Exhibit A

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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. 81 CLICK HERE to Return to Agenda
Exhibit B

Exhibit B
Schedule of Compensation
For the avoidance of doubt, the compensation thresholds on this Exhibit B do not include compensation for Additional Services (if any) authorized pursuant to Section 1.7 and compensated pursuant to Section 2.3 of this Agreement.

Contract Sum
Compensation for Services shall not exceed the following Contract Sum for the entire Term of this Agreement: Five Hundred and Thirty Thousand Dollars ($530,000), to be paid for duly authorized Services performed consistent with the terms and conditions of this Agreement, at the rates detailed in this Exhibit B.

Contracting Party expressly acknowledges and agrees that the Contract Sum in this Agreement is the aggregate total amount covering this Agreement, that certain Agreement for Contract Services by and between the City and The Natelson Dale Group, Inc., of or about even date as this Agreement, such that the Contract Sum as defined herein is the maximum amount available for services provided under all three agreements.

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.

In accordance with the terms and conditions of this Agreement, Contracting Party shall perform services on an as-needed basis only when directed to do so by the Contract Officer, or assigned designee. Services may be ordered in the sole discretion of the Contract Officer, or assigned designee, and are not guaranteed. Contracting Party shall not perform any services without receiving prior written authorization from the Contract Officer, or assigned designee, incorporating therein (i) a description of the services to be performed, (ii) the time to perform the services, and (iii) the related compensation.

Initial Term:

FY 2025/26 $ 30,000
FY 2026/27 $100,000
FY 2027/28 $100,000
FY 2028/29 $100,000
FY 2029/30 $100,000
FY 2030/31 $100,000
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Exhibit B

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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.
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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 checked below 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 aggregate OR
$2,000,000 per occurrence/$4,000,000 aggregate OR
$2,000,000 per occurrence/$4,000,000 aggregate
Must include the following endorsements:

General Liability Additional Insured
General Liability Primary and Non-contributory
Commercial Automobile Liability (at least as broad as ISO CA 0001):
$1,000,000 combined single limit for bodily injury and property damage Auto Liability Additional Insured
Workers’ Compensation (per statutory requirements):

Statutory Limits / Employer’s Liability $1,000,000 per accident or disease OR Must include the following endorsements:

Workers’ Compensation Endorsement with Waiver of Subrogation Workers’ Compensation Declaration of Sole Proprietor
California Workers' Compensation Requirements Acknowledgement Professional Liability (Errors and Omissions):

Errors and Omissions liability insurance with a limit of not less than $1,000,000 per claim
Cyber Liability
$1,000,000 per occurrence/$2,000,000 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 86 CLICK HERE to Return to Agenda
Exhibit E

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 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.

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.

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 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.
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Exhibit E

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.

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.
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Exhibit E

E.3 General Conditions Pertaining to Provisions of Insurance Coverage by Contracting Party. Contracting Party and City agree to the following with respect to insurance provided by Contracting Party:

1. Contracting Party agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials, employees, and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Contracting Party also agrees to require all contractors, and subcontractors to do likewise.

2. No liability insurance coverage provided to comply with this Agreement shall prohibit Contracting Party, or Contracting Party’s employees, or agents, from waiving the right of subrogation prior to a loss. Contracting Party agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise.

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

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

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

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

7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all the coverages required and an additional insured endorsement to Contracting Party’s general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems 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 89 CLICK HERE to Return to Agenda
Exhibit E

to apply first and on a primary, non-contributing basis in relation to any other insurance or self-insurance available to City.

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

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

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

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

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

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 90 CLICK HERE to Return to Agenda
Exhibit E

Contracting Party’s insurance agent to this effect is acceptable. A certificate of insurance and an additional insured endorsement is required in these specifications applicable to the renewing or new coverage must be provided to City within five (5) days of the expiration of coverages.

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

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

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

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

20. Contracting Party agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Contracting Party for the cost of additional insurance 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. 91 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. 93 CLICK HERE to Return to Agenda
Revised – Sept. 2025

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 Charter City organized under the Constitution and laws of the State of California with its principal place of business at 78495 Calle Tampico, La Quinta, California 92253, and The Natelson Dale Group, Inc. with a place of business at P.O. Box 489, Yorba Linda, CA 92885 (“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 Economic Development Consulting, 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.

ATTACHMENT 2
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-2-

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

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

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

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

1.7 Additional Services. In accordance with the terms and conditions of this Agreement, Contracting Party shall perform services in addition to those specified in the Scope of Services (“Additional Services”) only when directed to do so by the Contract Officer, or assigned designee, provided that Contracting Party shall not be required to perform any Additional Services without compensation. Contracting Party shall not perform any Additional Services until receiving prior written authorization through a duly executed written amendment or change order from the Contract Officer, or assigned designee, incorporating therein any adjustment in (i) the Contract Sum, in accordance with Section 2.3 of this Agreement, 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. 95 CLICK HERE to Return to Agenda
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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 Five Hundred and Thirty Thousand Dollars ($530,000) (the “Contract Sum”), except as provided in Section 1.7. Contracting Party expressly acknowledges and agrees that the Contract Sum in this Agreement is the aggregate total amount covering this Agreement, that certain Agreement for Contract Services by and between the City and Keyser Marston Associates, Inc., of or about even date as this Agreement, such that the Contract Sum as defined herein is the maximum amount available for services provided under the two agreements. 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.
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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 through a duly executed amendment or change order 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%) of the Contract Sum or Fifteen Thousand Dollars ($15,000), whichever is less, 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 without prior written approval through a duly executed amendment or change order 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 are 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 April 8, 2026, 97 CLICK HERE to Return to Agenda
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and terminate on June 30, 2031 (“Initial Term”). This Agreement may be extended upon mutual agreement by both parties (“Extended Term”), and executed in writing.

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: Roger Dale, Managing Principal
Telephone No.: (714) 692-9596
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 Jon McMillen, City Manager 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 98 CLICK HERE to Return to Agenda
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transfer shall release Contracting Party of any liability hereunder without the express consent of City.

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

City shall have no voice in the selection, discharge, supervision, or control of Contracting Party’s employees, servants, representatives, or agents, or in fixing their number or hours of service. Contracting Party shall perform all Services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Contracting Party shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Contracting Party in its business or otherwise or a joint venture or a member of any joint enterprise with Contracting Party. Contracting Party shall have no power to incur any debt, obligation, or liability on behalf of City. Contracting Party shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. Except for the Contract Sum paid to Contracting Party as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Contracting Party for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Contracting Party for injury or sickness arising out of performing the Services hereunder. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Contracting Party and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits. Contracting Party agrees to pay all required taxes on amounts paid to Contracting Party under this Agreement, and to indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason 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.
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4.6 City Cooperation. City shall provide Contracting Party with any plans, publications, reports, statistics, records, or other data or information pertinent to the Services to be performed hereunder which are reasonably available to Contracting Party only from or through action by City.

5. INSURANCE.

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

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

6. INDEMNIFICATION.

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

7. RECORDS AND REPORTS.

7.1 Reports. Contracting Party shall periodically prepare and submit to the Contract Officer, or assigned designee, such reports concerning Contracting Party’s performance of the Services required by this Agreement as the Contract Officer, or assigned designee, shall require. Contracting Party hereby acknowledges that City is greatly concerned about the cost of the Services to be performed pursuant to this Agreement. For this reason, Contracting Party agrees that if Contracting Party becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Services contemplated herein or, if Contracting Party is providing design services, the cost of the project being designed, Contracting Party shall promptly notify the Contract Officer, or assigned designee, of said fact, circumstance, technique, or event and the estimated 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 100 CLICK HERE to Return to Agenda
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enable the Contract Officer, or assigned designee, to evaluate the performance of such Services. Any and all such Books and Records shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer, or assigned designee, shall have full and free access to such Books and Records at all times during normal business hours of City, including the right to inspect, copy, audit, and make records and transcripts from such Books and Records.

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

7.3 Ownership of Documents. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents, and other materials plans, drawings, estimates, test data, survey results, models, renderings, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings, digital renderings, or data stored digitally, magnetically, or in any other medium prepared or caused to be prepared by Contracting Party, its employees, subcontractors, and agents in the performance of this Agreement (the “Documents and Materials”) shall be the property of City and shall be delivered to City upon request of the Contract Officer, or assigned designee, or upon the expiration or termination of this Agreement, and Contracting Party shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the Documents and Materials hereunder. Any use, reuse or assignment of such completed Documents and Materials for other projects and/or use of uncompleted documents without specific written 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.
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7.5 Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, rights of reproduction, and other intellectual property embodied in the Documents and Materials. Contracting Party shall require all subcontractors, if any, to agree in writing that City is granted a non-exclusive and perpetual license for the Documents and Materials the subcontractor prepares under this Agreement. Contracting Party represents and warrants that Contracting Party has the legal right to license any and all of the Documents and Materials. Contracting Party makes no such representation and warranty in regard to the Documents and Materials which were prepared by design professionals other than Contracting Party or provided to Contracting Party by City. City shall not be limited in any way in its use of the Documents and Materials at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk.

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

7.7 Confidential or Personal Identifying Information. Contracting Party covenants that all City data, data lists, trade secrets, documents with personal identifying information, documents that are not public records, draft documents, discussion notes, or other information, if any, developed or received by Contracting Party or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Contracting Party to any person or entity without prior written authorization by City or unless required by law. City shall grant authorization for disclosure if required by any lawful administrative or legal proceeding, court order, or similar directive with the force of law. All City data, data lists, trade secrets, documents with personal identifying information, documents that are not public records, draft documents, discussions, or other 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 102 CLICK HERE to Return to Agenda
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as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer, or assigned designee; provided that if the default is an immediate danger to the health, safety, or general welfare, City may take such immediate action as City deems warranted.

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

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

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

8.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights 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 103 CLICK HERE to Return to Agenda
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authorized by the Contract Officer, or assigned designee, thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, or assigned designee, except amounts held as a retention pursuant to this Agreement.

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

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

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

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. 104 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: Jon McMillen, City Manager
78495 Calle Tampico
La Quinta, California 92253
To Contracting Party:

THE NATELSON DALE GROUP, INC
Attention: Roger Dale, Managing
Principal
P.O. Box 489
Yorba Linda, CA 92885

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:

THE NATELSON DALE GROUP, INC.

Roger Dale, Managing Principal
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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Exhibit A
Exhibit A
Scope of Services

1. Services to be Provided:

Contracting Party shall perform comprehensive economic development and economic impact analysis on an on-call, as needed basis including, but not limited to the following listed below, based on the methodology described herein:
 Plan, organize, and participate in economic development strategies  Plan, organize, and develop infrastructure financing strategies  Conducting special studies and preparing comprehensive reports such as:
o Fiscal and economic impact reports
o Workforce and employment impact analyses
o Return on investment analyses
o Market and feasibility analyses
o Regional impact studies
o Geographic analyses
o Other analyses and studies as assigned
 Identify strategic opportunities for job creation, investment, business expansion and infrastructure improvement
 Assess workforce related economic effects such as employment, wage, and job creation impacts
 Evaluate and prepare tax revenue projections
 Propose and assist in negotiation of terms for development and tax revenue sharing agreements
 Evaluate policy options and projected economic effects  Make recommendations to maximize economic development outcomes  Propose metrics for ongoing monitoring and evaluation of development projects  Identify and engage with key stakeholders
 Prepare financial scenarios illustrating ramifications of proposed development terms  Identify direct, indirect and induced impacts
 Preparation of reports in compliance with Government Code Section 53083  Other responsibilities as assigned

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Overview of Methodology and Approach for Major Assignment Types (On-Call Economic Development Consulting Services) Project/ Assignment Type
Fiscal impact analysis - City revenue and cost
•
impacts
•
•
•
•
Economic impact analysis
•
Real estate market analysis - retail
•
•
Highlights of Methodology/Approach
Focus on annually-recurring General Fund
cost/revenue impacts to City
Develop customized revenue/cost
forecasting model based on per-capita/
per-employee factors derived from City's
budget
Adjust model factors to account for La
Quinta's sizeable part-time/seasonal
population
Customize revenue forecasts for sales
tax, property tax, and TOT based on
unique characteristics (case study
approach) of proposed project(s)
Confirm projected impacts on municipal
services with affected City departments
Projection of direct and indirect impacts
of proposed development projects,
quantified in terms of:
0 Jobs
0 Incomes
0 Output (local business spending)
Evaluate performance of La Quinta's
existing retail facilities
Customize TNDG's in-house retail
demand forecasting model (forecasts
demand for new retail space based on
local/region demographics, visitor
spending, and proximity of competitive
shopping districts in neighboring cities)

STATEMENT OF QUALIFICATIONS
The Natelson Dale Group, Inc.

Key Data/Analytical Resources Used
• City's budget and related documentation
• Demographic data from Census, ESRI,
SCAG, California Department of Finance
• Project description and data supplied by
project applicants (and independently
verified by TNDG's supplement research)
• Project description and data supplied by
project applicants (and independently
verified by TNDG's supplement research)
• Standard input-output models (e.g.,
IMPLAN, RIMS II, etc.)
• Demographic data from Census, ESRI,
SCAG, California Department of Finance
• Taxable sales data (CDTFA)
• costar
• HDL
• Placer.ai
• Site selection criteria of targeted retail/
restaurant tenants
19

Exhibit A
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Project/ Assignment Type
Real estate market analysis- office/business
•
park
•
Real estate market analysis- hotel
•
•
Real estate market analysis- housing
•
•
Highlights of Methodology/Approach
Evaluate performance of La Quinta's
existing office/business park space (rent,
vacancy, and absorption rates compared
to competing Coachella Valley cities)
Customize TNDG's in-house office
demand forecasting model (forecasts
demand for office/business park space
based on local/regional employment
growth by industry)
Evaluate performance of La Quinta's
existing hotel inventory (occupancy
levels, room rates, and demand growth
compared to Coachella Valley
benchmarks)
Customize TNDG's in-house hotel
demand forecasting model (forecasts
demand for new hotel nights based on La
Quinta's potential share of regional
growth)
Forecast demand (annualized over 10-20
forecast horizon) for new housing
development in City
Segment demand forecasts by type
(single-family versus multi-family), tenure
(ownership versus rental units), and
price/rent levels (including affordability
categories tied to City's RHNA/Housing
Element targets)

STATEMENT OF QUALIFICATIONS
The Natelson Dale Group, Inc.

Key Data/Analytical Resources Used
• Demographic data from Census, ESRI,
SCAG, California Department of Finance
• Lightcast (industry-level employment
estimates and forecasts)
• costar
• STR data (segmented by facility category)
• Demographic data from Census, ESRI,
SCAG, California Department of Finance
• Costar (for rental housing data)
• TNDG research (ownership housing data)
• City's Housing Element
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Exhibit A
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Project/ Assignment Type
Pro forma financial analysis
Economic development strategic plan (EDSP)
Infrastructure financing strategy (project/
subarea specific)
Negotiation of development and tax-sharing
agreements
Highlights of Methodology/Approach
• Customized pro forma model reflecting
the land use mix, market positioning, and
ownership structure of proposed
development project(s)
• Test implications of proposed City
policies on feasibility of projects
• SWOT analysis (demographic and
economic comparisons to competitors)
• Target industry analysis
• Workforce development analysis
• Stakeholder/community engagement
• EDSP Action Plan, including:
0 Marketing/business attraction
0 Staffing/partnerships
0 Funding sources
• Evaluate potential funding sources and
financing mechanisms relevant to specific
projects or districts within La Quinta
• Recommend financing strategies based
on evaluated options relevant to specific
proposed community facilities and capital
improvements
[Approach to be customized based on the
nature and specific requirements of proposed
development projects; typically would
include independent revenue forecasts
prepared by TNDG, review of applicantsubmitted forecasts, and strategic support of City's negotiation process.]

STATEMENT OF QUALIFICATIONS
The Natelson Dale Group, Inc.

Key Data/Analytical Resources Used
• Costar (for commercial/residential
income factors, building sale values and
cap rates)
• TNDG research (land sale values)
• Cost data published by Rider Levett
Bucknall (RLB)
• Demographic data from Census, ESRI,
SCAG, California Department of Finance
• Lightcast (industry-level employment
estimates and forecasts)
• Taxable sales data (CDTFA)
• costar
• HDL
• Placer.ai
• Project financing resources available
through CALED and State
• TNDG research on available grant funding
(Federal, State, regional)
• Customized research, analysis and
forecasts prepared by TNDG based
requirements of specific proposed
project(s)
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Exhibit A
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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, Exhibit A

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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.

Exhibit A

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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.

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Exhibit B

Exhibit B
Schedule of Compensation
For the avoidance of doubt, the compensation thresholds on this Exhibit B do not include compensation for Additional Services (if any) authorized pursuant to Section 1.7 and compensated pursuant to Section 2.3 of this Agreement.

Contract Sum
Compensation for Services shall not exceed the following Contract Sum for the entire Term of this Agreement: Five Hundred and Thirty Thousand Dollars ($530,000), to be paid for duly authorized Services performed consistent with the terms and conditions of this Agreement, at the rates detailed in this Exhibit B.

Contracting Party expressly acknowledges and agrees that the Contract Sum in this Agreement is the aggregate total amount covering this Agreement, that certain Agreement for Contract Services by and between the City and Keyser Marston Associates, Inc., of or about even date as this Agreement, such that the Contract Sum as defined herein is the maximum amount available for services provided under all three agreements.

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.

In accordance with the terms and conditions of this Agreement, Contracting Party shall perform services on an as-needed basis only when directed to do so by the Contract Officer, or assigned designee. Services may be ordered in the sole discretion of the Contract Officer, or assigned designee, and are not guaranteed. Contracting Party shall not perform any services without receiving prior written authorization from the Contract Officer, or assigned designee, incorporating therein (i) a description of the services to be performed, (ii) the time to perform the services, and (iii) the related compensation.

Initial Term:

FY 2025/26 $ 30,000
FY 2026/27 $100,000
FY 2027/28 $100,000
FY 2028/29 $100,000
FY 2029/30 $100,000
FY 2030/31 $100,000
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Exhibit B

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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.
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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 checked below 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 aggregate OR
$2,000,000 per occurrence/$4,000,000 aggregate OR
$2,000,000 per occurrence/$4,000,000 aggregate
Must include the following endorsements:

General Liability Additional Insured
General Liability Primary and Non-contributory
Commercial Automobile Liability (at least as broad as ISO CA 0001):
$1,000,000 combined single limit for bodily injury and property damage Auto Liability Additional Insured
Workers’ Compensation (per statutory requirements):

Statutory Limits / Employer’s Liability $1,000,000 per accident or disease OR Must include the following endorsements:

Workers’ Compensation Endorsement with Waiver of Subrogation Workers’ Compensation Declaration of Sole Proprietor
California Workers' Compensation Requirements Acknowledgement Professional Liability (Errors and Omissions):

Errors and Omissions liability insurance with a limit of not less than $1,000,000 per claim
Cyber Liability
$1,000,000 per occurrence/$2,000,000 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 119 CLICK HERE to Return to Agenda
Exhibit E

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 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.

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.

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 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.
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Exhibit E

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.

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.
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Exhibit E

E.3 General Conditions Pertaining to Provisions of Insurance Coverage by Contracting Party. Contracting Party and City agree to the following with respect to insurance provided by Contracting Party:

1. Contracting Party agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials, employees, and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Contracting Party also agrees to require all contractors, and subcontractors to do likewise.

2. No liability insurance coverage provided to comply with this Agreement shall prohibit Contracting Party, or Contracting Party’s employees, or agents, from waiving the right of subrogation prior to a loss. Contracting Party agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise.

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

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

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

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

7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all the coverages required and an additional insured endorsement to Contracting Party’s general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems 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 122 CLICK HERE to Return to Agenda
Exhibit E

to apply first and on a primary, non-contributing basis in relation to any other insurance or self-insurance available to City.

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

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

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

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

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

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 123 CLICK HERE to Return to Agenda
Exhibit E

Contracting Party’s insurance agent to this effect is acceptable. A certificate of insurance and an additional insured endorsement is required in these specifications applicable to the renewing or new coverage must be provided to City within five (5) days of the expiration of coverages.

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

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

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

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

20. Contracting Party agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Contracting Party for the cost of additional insurance 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. 124 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. 126 CLICK HERE to Return to Agenda
City of La Quinta
CITY COUNCIL MEETING: April 7, 2026

STAFF REPORT
AGENDA TITLE: APPROVE AGREEMENT GOVERNING SUBDIVISION AND USE OF

REAL PROPERTY BY AND BETWEEN THE CITY, INDIAN WELLS HOSPITALITY

GROUP, LLC, AND PACIFIC WEST COMMUNITIES TO SUBDIVIDE
APPROXIMATELY SIX-ACRE VACANT PARCEL, ASSESSOR PARCEL NUMBER 600- 020-057, LOCATED SOUTH OF THE HIGHWAY 111 AND WEST OF COSTCO DRIVE; CEQA: THE PROJECT IS EXEMPT FROM ENVIRONMENTAL REVIEW PURSUANT TO SECTION 15601(b)(3) OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT,

COMMON SENSE EXEMPTION

RECOMMENDATION
Approve Agreement Governing Subdivision and Use of Real Property by and between the City, Indian Wells Hospitality Group, LLC, and Pacific West Communities to subdivide an approximately 6-acre vacant parcel, identified as Assessor Parcel Number 600-020- 057, located south of Highway 111 and west of Costco Drive, and find that the proposed project is exempt from the provisions of the California Environmental Quality Act pursuant to Section 15061(b)(3), the Common Sense Exemption; and authorize the City Manager to execute the agreement and all necessary implementing documents to facilitate the subdivision and eventual disposition of the property.

EXECUTIVE SUMMARY
 On December 17, 2024, Council declared an approximately 6-acres vacant parcel (APN 600-020-057), located south of Highway 111 and west of Costco Drive as surplus land, in accordance with the Surplus Land Act (SLA).  On August 14, 2025, following a successful Notice of Availability (NOA) process, the California Department of Housing and Community Development (HCD) issued written findings confirming the City’s compliance with disposition requirements (Attachment 1).
 The City has identified two development partners: Indian Wells Hospitality Group (IWHG/Sunridge) for a boutique hotel and restaurant on the northerly 3 acres (Parcel A), and Pacific West Communities (Pacific) for a 96-unit affordable housing community on the southerly 3 acres (Parcel B).
 The proposed agreement (Attachment 2) establishes the legal framework for the subdivision of the property, the concentration of affordability covenants on Parcel B, and the recovery of administrative costs from the developers.

CONSENT CALENDAR ITEM NO. 7
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FISCAL IMPACT – None.

Under Section 1.3 of the agreement, the City initially agrees to defer application and processing fees for the subdivision map applications. However, the City Manager maintains the discretion to require a "Parcel A Processing Fee Reimbursement" from IWHG/Sunridge and a "Parcel B Processing Fee Reimbursement" from Pacific at the close of escrow.

BACKGROUND/ANALYSIS
On December 17, 2024, Council adopted Resolution No. 2024-047 (Attachment 3) formally declaring the property as "surplus land" as defined by Government Code Section 54221(b)(1). The declaration was a mandatory prerequisite under the SLA for any sale or long-term lease of public property.

Following Council’s declaration, the City Manager’s office issued an NOA on January 3, 2025, to all required specified entities. During the mandatory 60-day response period, the City received interest from 4 affordable housing entities and one commercial developer.

This led to a 90-day good faith negotiation period as mandated by state law. The City’s negotiations resulted in a unique mixed-use development concept that pairs a high-end hospitality product with a high-density affordable residential community. On August 14, 2025, HCD issued its "Written Findings" regarding the City’s disposition documentation.

HCD concluded that the City had met all statutory requirements of the SLA, provided that the 100% affordable housing mandate was successfully implemented on the entirety of the property.

The subject property, APN 600-020-057, is a prime 6.4-acre vacant site, located south of Highway 111 and west of Costco Drive. The land is bordered to the south by Vista Coralina Lane and is located within the City's Regional Commercial (CR) zoning district.

This parcel represents a significant infill development opportunity in the City's primary commercial corridor.

The selected development partners for this site are as follows:

1. IWHG/Sunridge – tasked with developing the northerly approximately 3 acres (Parcel A) into an AC Hotel by Marriott and a standalone restaurant pad.

2. Pacific – tasked with developing the southerly approximately 3 acres (Parcel B) into a 3-story, 96-unit affordable housing project
The proposed agreement serves as the coordinating document subdividing the single parcel into 2 distinct legal lots. The City will submit all necessary applications to perfect the recording of final maps that correspond to the proposed Parcels A and B, specifically described in Certificate of Compliance (COC) 2024-0001 included in the agreement, recorded by the County of Riverside on October 29, 2025 (DOC # 2025-0333914). The City's obligation to record the final maps is contingent upon the successful finalization of Purchase and Sale Agreements (PSA) and Development Agreements (DA) with both projects, which will be brought for Council’s review and consideration in the future. 128 CLICK HERE to Return to Agenda

ENVIRONMENTAL REVIEW
The City has reviewed the proposed action and determined that it is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et seq.) pursuant to CEQA Guidelines Section 15061(b)(3), commonly referred to as the Common Sense Exemption.

Pursuant to Section 15061(b)(3), CEQA applies only to projects that have the potential for causing a significant effect on the environment. The proposed action, approving an agreement governing the legal subdivision of a City owned parcel and establishing the framework for recovery of administrative costs, does not authorize any ground disturbance, construction, or physical alteration of the environment. It can be seen with certainty that there is no possibility that the approval of this agreement may have a significant direct or reasonably foreseeable indirect physical effect on the environment.

ALTERNATIVES
Prepared by: Doug Kinley, Senior Management Analyst
Approved by: Gilbert Villalpando, Director
Attachments: 1. HCD Findings Letter dated 8/14/2025

2. Agreement Governing Subdivision and Use of Real Property

3. Resolution No. 2024-047 and SLA Staff Report dated 12/17/2024 129 CLICK HERE to Return to Agenda
SLA0001885
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
651 Bannon Street, Suite 400, Sacramento, CA 95811
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
August 14, 2025
Doug Kinley, Senior Management Analyst
City of La Quinta
78495 Calle Tampico
La Quinta CA, 92253
SENT VIA EMAIL TO: [email protected]
Dear Doug Kinley:

RE: Written Findings Regarding the City of La Quinta’s Surplus Land Disposition Documentation for the Property Located Along the Highway 111 Corridor and Bordered Southerly by Vista Coralina Lane with APN 600- 020-057
Thank you for submitting your surplus land documentation, on behalf of the City of La Quinta (City), for review by the California Department of Housing and Community Development (HCD). Your complete documentation was received on July 7, 2025. This letter constitutes HCD’s written findings pursuant to Government Code section 54230.5 of the Surplus Land Act (SLA), for the surplus land located along the Highway 111 Corridor and Bordered Southerly by Vista Coralina Lane with APN 600-020-057 (Property).

Analysis
According to your letter and supporting documents, a Resolution declaring the (Property) to be surplus was issued on December 17, 2024, and Notices of Availability (NOA) were sent on January 3, 2025. During the required 60-day period, four affordable housing entities and one development entity expressed interest in the property. The City has provided a summary of the negotiations, which resulted in the City accepting two development partners, Sunridge Properties and The Pacific Companies. The City’s documentation included a draft affordability covenant, requiring 100 percent affordable housing, to be recorded against the Property for a period of 55 years for rental housing and 45 years for ownership housing.

Conclusion
If the submitted documentation and assertions by the City are complete and accurate, HCD finds that all the requirements under the SLA for the purposes of disposing of the (Property/Properties) have been met. Once a final disposition has taken place, please provide HCD with a copy of the respective recorded covenant pursuant to SLA Guidelines, Section 400(b)(1).

ATTACHMENT 1
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Doug Kinley, Senior Management Analyst