Agenda packet — La Quinta City Council, June 2, 2026 (part 1 of 3)

CITY COUNCIL AGENDA Page 1 of 8 JUNE 2, 2026

CITY COUNCIL
AGENDA

CITY HALL COUNCIL CHAMBER
78495 Calle Tampico, La Quinta
REGULAR MEETING ON TUESDAY, JUNE 2, 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 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
City Council agendas and staff reports
are available on the City’s website at
www.LaQuintaCA.gov/PublicMeetings
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CITY COUNCIL AGENDA Page 2 of 8 JUNE 2, 2026

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)

4. PUBLIC EMPLOYEE PERFORMANCE EVALUATION (QUARTERLY REVIEW) PURSUANT TO GOVERNMENT CODE SECTION 54957, COUNCIL APPOINTED POSITION – CITY MANAGER

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

REPORT ON ACTION(S) TAKEN IN CLOSED SESSION

PLEDGE OF ALLEGIANCE

ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS

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

2. MARKETING AND ECONOMIC DEVELOPMENT STRATEGIES – FISCAL YEAR 2025/26 UPDATE AND PLAN FOR FISCAL YEAR 2026/27

3. BURRTEC WASTE AND RECYCLING – 2025 YEAR-END UPDATE BY MUNICIPAL

MARKETING MANAGER CLARA VERA

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

PAGE

1. APPROVE COUNCIL MEETING MINUTES DATED MAY 5, 2026 9

2. APPROVE COUNCIL MEETING MINUTES DATED MAY 19, 2026 19

3. AUTHORIZE OVERNIGHT TRAVEL FOR THE DEPUTY CITY CLERK TO

ATTEND THE ASSOCIATION OF RECORDS MANAGERS AND
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CITY COUNCIL AGENDA Page 3 of 8 JUNE 2, 2026
ADMINISTRATORS 2026 CALIFORNIA 4TH ANNUAL SUMMER CONFERENCE

OF INFORMATION AND RECORDS MANAGEMENT IN IRVINE, CALIFORNIA, JUNE 25-26, 2026

4. ADOPT RESOLUTION TO REQUEST COUNTY OF RIVERSIDE PLACE

COLLECTION COSTS FOR SOLID WASTE HANDLING SERVICES AT SINGLE FAMILY DWELLINGS ON TAX ROLLS FOR FISCAL YEAR 2026/27
[RESOLUTION NO. 2026-011]
29 5. ADOPT RESOLUTIONS TO: (A) APPROVE PRELIMINARY FISCAL YEAR 2026/27 ENGINEER’S ANNUAL LEVY REPORT FOR LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT 89-1, AND (B) DECLARE INTENT TO

LEVY ANNUAL ASSESSMENTS FOR LANDSCAPE AND LIGHTING
ASSESSMENT DISTRICT 89-1 [RESOLUTION NOS. 2026-012 AND 2026-013] 45 6. ADOPT RESOLUTION TO APPROVE FISCAL YEAR 2026/27 INVESTMENT

POLICY AND DELEGATE INVESTING AUTHORITY TO CITY TREASURER [RESOLUTION NO. 2026-014]
75 7. APPROVE COOPERATIVE AGREEMENT WITH THE CITY OF INDIAN WELLS

FOR DESIGN AND REPAIR OF THE WASHINGTON STREET BRIDGE, AS

PART OF THE BRIDGE PREVENTATIVE MAINTENANCE PROGRAM,
PROJECT NO. 2023-33
109

8. APPROVE COOPERATIVE AGREEMENT WITH THE CITY OF INDIO AND THE

COUNTY OF RIVERSIDE FOR DESIGN AND CONSTRUCTION OF THE
AVENUE 52 AND MONROE STREET TRAFFIC SIGNAL PROJECT NO. 2023- 02 125

9. APPROVE AGREEMENT FOR CONTRACT SERVICES WITH DESERT

RESORT MANAGEMENT FOR UNARMED SECURITY GUARD PATROL

SERVICES
145

10. APPROVE AMENDMENT NO. 10 TO AGREEMENT FOR CONTRACT SERVICES WITH GHD, INC FOR THE HIGHWAY 111 CORRIDOR PROJECT NO. 2019-05 177

11. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED MARCH 31, 2026
185

BUSINESS SESSION
PAGE

1. APPROVE CANCELLING THE REGULAR CITY COUNCIL MEETINGS OF JULY 7, AUGUST 18, AND SEPTEMBER 1, 2026
191

2. ADOPT RESOLUTION TO APPROVE AMENDED AND RESTATED RULES OF

PROCEDURE FOR PUBLIC MEETINGS AND RELATED FUNCTIONS AND ACTIVITIES OF THE CITY COUNCIL [RESOLUTION NO. 2026-015] 193

3. APPROVE THIRD ROUND OF COMMUNITY SERVICES GRANTS FOR FISCAL YEAR 2025/26
235
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CITY COUNCIL AGENDA Page 4 of 8 JUNE 2, 2026

4. APPROVE FIRST AMENDMENT TO AGREEMENT FOR LAW ENFORCEMENT SERVICES WITH RIVERSIDE COUNTY SHERIFF’S OFFICE
241

5. APPROVE AGREEMENT FOR CONTRACT SERVICES WITH SYNTECH

GROUP, INC FOR MANAGED INFORMATION TECHNOLOGY SERVICES
247

STUDY SESSION
PAGE

1. DISCUSS FISCAL YEAR 2026/27 PROPOSED BUDGET 301
PUBLIC HEARINGS – None

DEPARTMENTAL REPORTS

1. CITY MANAGER

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) CLICK HERE to Return to Agenda
CITY COUNCIL AGENDA Page 5 of 8 JUNE 2, 2026

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)
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. VISIT GREATER PALM SPRINGS CONVENTION AND VISITORS BUREAU (Evans)

23. FINANCIAL ADVISORY COMMISSION SPECIAL MEETING MINUTES DATED APRIL 8, 2026
377

24. PALM SPRINGS AIRPORT COMMISSION MEETING MINUTES DATED MAY 20, 2026
381

ADJOURNMENT
*********************************
The next regular meeting of the City Council will be held on June 16, 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 May 29, 2026, which is freely accessible to members of the public.

DATED: May 29, 2026
MONIKA RADEVA, City Clerk
City of La Quinta, California
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CITY COUNCIL AGENDA Page 6 of 8 JUNE 2, 2026

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.  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.

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CITY COUNCIL AGENDA Page 7 of 8 JUNE 2, 2026
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 JUNE 2, 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 audiovisual platform and must activate the “Raise Hand” feature on their electronic device (*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 device (*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 10 MAY 5, 2026

CITY COUNCIL

MINUTES
TUESDAY, MAY 5, 2026

CALL TO ORDER
A regular meeting of the La Quinta City Council was called to order at 3:00 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
Councilmember Peña said he will recuse himself from discussion and vote on Business Session Item No. 3 related to approval of agreement for contract services with Desert Recreation District for management and operations of the Fritz Burns Pool due to a potential conflict of interest stemming from the proximity of his real property to the project location.

Council concurred.

CLOSED SESSION

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 – ANTICIPATED LITIGATION; INITIATION OF LITIGATION PURSUANT TO PARAGRAPH (4) OF
SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9 (NUMBER OF CASES: 1)

COUNCIL RECESSED THE OPEN SESSION PORTION OF THE MEETING AND MOVED INTO CLOSED SESSION AT 3:03 P.M.

MAYOR EVANS RECONVENED THE OPEN SESSION PORTION OF THE CITY COUNCIL MEETING AT 4:00 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.
 CLOSED SESSION ITEM NO. 4 – pursuant to Government Code section 54957.1(a)(2), Council took the following action:

MOTION – A motion was made and seconded by Councilmembers Sanchez/Peña to authorize the City Attorney’s Office to initiate an action related to the anticipated litigation.

Motion passed unanimously.

City Attorney Ihrke explained that while at this time, the action, defendants, and other particulars need not be identified, once formally commenced, the action, defendants, and other particulars relating to the nature of the action would be disclosed to any person upon inquiry, unless to do so would jeopardize the City’s ability to effectuate service of process on one or more unserved parties, or to do so would jeopardize the ability to conclude any settlement negotiations to the City’s advantage. 10 CLICK HERE to Return to Agenda
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PLEDGE OF ALLEGIANCE
Councilmember Peña led the audience in the Pledge of Allegiance.

PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA
City Clerk Radeva said WRITTEN PUBLIC COMMENTS were received from La Quinta resident Stefan Sampo requesting that planting of fruit trees, vegetables, and berries on all landscaping plans be prioritized, which were distributed to Council, made public, published on the City’s website, and included in the public record of this meeting.

PUBLIC SPEAKER: Jamie Nations, La Quinta – was not present to speak when called upon by the Mayor; Request to Speak form listed the subject matter to be “short-term vacation rental fines/violations on an over 30-day rental.” PUBLIC SPEAKER: Tammy Martin, La Quinta, on behalf of Friends of the Desert Mountains – thanked Council and staff for assistance with the Coachella Valley Wildflower 5K event held at the top of La Quinta cove; and provided info on participants and volunteers.

PUBLIC SPEAKER: Alena Callimanis, La Quinta – thanked Council and staff member Sherry Barkas for the Read With Me article in the GEM publication; provided statistics on reservoir water levels; provided historic info on the Coachella Valley’s aquifer depletion resulting in increased purchase/reliance on Colorado River water; noted the new watersaving plan for California and neighboring states; requested that the Council carefully consider water use when reviewing all future development plans; questioned the need for a 12-acre recreation lake at Coral Mountain; and provided a hand-out of an article published by the Los Angeles Times, authored by Ian James, dated May 2, 2026, regarding new water-saving plan for California, Arizona, and Nevada to help address worsening shortages along the Colorado River over the next 2 years, which was distributed to Council, made public, published on the City’s website, and included in the public record of this meeting.

ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS

1. SILVERROCK (FORMERLY TALUS) DEVELOPMENT PROJECT – STATUS UPDATE
Background: 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 11 CLICK HERE to Return to Agenda
CITY COUNCIL MINUTES Page 4 of 10 MAY 5, 2026
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 noted there were no new updates to be reported on the bankruptcy case, which is proceeding in the winddown.

2. DOVES LANDING SCHOOL PRESENTATION BY FOUNDING

ADMINISTRATOR AND TEACHER KENNEDY ROCKER
Ms. Rocker noted that the Larsen Justice Center was named for her mother; provided a brief presentation on her background and experience; Doves Landing School, a microschool of 20 students, is now located at Palm Desert YMCA; provided the School’s purpose, functioning, focus, financing, and partnerships; and noted there is a proposed micro-school at the La Quinta Boys and Girls Club.

Council discussed the number of students and micro-schools; number of La Quinta students attending; number of graduated seniors; and offered to attend school graduations.

3. LA QUINTA ART CELEBRATION – NOVEMBER 2025 AND MARCH 2026

EVENTS SUMMARY PRESENTATION BY EVENT PRODUCER PAUL

ANDERSON WITH SCOPE EVENTS
Chief Executive Officer Anderson with SCOPE Events, LLC, event producer of the La Quinta Arts Celebration (LQAC), gave a brief presentation of the success of the events; the dedicated and loyal volunteers; rating of the event as number one in the country; AI produced marketing; weather impact on attendance and sales; and introduced his team.

4. CERTIFICATE OF RECOGNITION HONORING JUNIOR INSPIRATION AND

YOUTH ACHIEVEMENT AWARD RECIPIENT ETHAN MILLER
Senior Management Analyst Calderon provided a summary of the purpose and objectives for the Junior Inspiration and Youth Achievement Award program, and highlighted recipient Ethan Miller’s qualifications, accomplishments, and achievements.

Council commended Mr. Miller for his leadership, dedication, and hard work, and presented him with a Certificate of Recognition.

Mr. Miller thanked the Council for their support and recognition; and noted that there are many fellow students just as deserving of this award.
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5. CERTIFICATES OF RECOGNITION COMMEMORATING THE 2025/26 LA

QUINTA YOUTH COLLECTIVE (LQYC) AND PROGRAM UPDATE
Community Services Deputy Director Calderon and Senior Management Analyst Calderon provided background on the LQYC program and its objectives and noted this was the City’s inaugural LQYC class.

The LQYC student members, listed below in the order in which they spoke, introduced themselves and each gave a brief overview of their goals and career objectives following high school graduation, and shared their favorite part of participating in the LQYC:
 Isaac Chavez
 Ava Loren Garcia-Castillo
 Mason Nava
 Cassandra La Rose
 Shereen Simonian
 Mayra Garcia
 Isabella “Bella” Garczynski
 Emma Rutkowski
 Dominick Weir
 Vanessa Braginton
 Alexander Kirov
 Vanessa Taylor
 Farah Reagan
 Scarlet Gaffney
 Alessandra Soto
 Mateo Cazares Rodriguez
 Natalia Hoyle (not present)
 Juliet Ruiz (not present)
 Shaunte Taylor (not present)
 Cielo Verduzco (not present)
Council commended all LQYC participants for their interest, time, and hard work, and presented them with Certificates of Recognition.

CONSENT CALENDAR

1. APPROVE COUNCIL MEETING MINUTES DATED APRIL 7, 2026

2. APPROVE COUNCIL MEETING MINUTES DATED APRIL 21, 2026

3. ADOPT RESOLUTIONS (1) CALLING AND GIVING NOTICE OF THE HOLDING OF A GENERAL MUNICIPAL ELECTION ON TUESDAY, NOVEMBER 3, 2026, AND (2) REQUESTING RIVERSIDE COUNTY CONSOLIDATE THE
NOVEMBER 3, 2026, MUNICIPAL ELECTION WITH THE STATEWIDE GENERAL ELECTION [RESOLUTION NOS. 2026-009 AND 2026-010]

4. APPROVE AGREEMENT FOR CONTRACT SERVICES WITH COMPLETE

PAPERLESS SOLUTIONS, LLC FOR LASERFICHE SOFTWARE SUPPORT

SERVICES, AND PURCHASE OF LASERFICHE SELF-HOSTED

SUBSCRIPTION AND PROFESSIONAL SUPPORT HOURS

5. APPROPRIATE FUNDS AND APPROVE TURF REPLACEMENT COSTS FOR

SILVERROCK RESORT GOLF COURSE
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6. AWARD CONTRACT TO VANCE CORPORATION FOR THE MILES AVENUE PAVEMENT REHABILITATION PROJECT NO. 2023-01, LOCATED FROM

WASHINGTON STREET TO JEFFERSON STREET

7. REJECT ALL BIDS RECEIVED FOR THE CITYWIDE STRIPING REFRESH PROJECT NO. 2025-01 AND AUTHORIZE STAFF TO REVISE THE PLANS,

SPECIFICATIONS, AND ESTIMATES, AND READVERTISE THE PROJECT

FOR BID

8. AUTHORIZE OVERNIGHT TRAVEL FOR MAINTENANCE AND OPERATIONS

SUPERINTENDENT TO ATTEND THE CALIFORNIA JOINT POWERS

INSURANCE AUTHORITY LEADERSHIP ACADEMY IN PASO ROBLES,
CALIFORNIA, MAY 19-21, 2026

9. AUTHORIZE OVERNIGHT TRAVEL FOR PUBLIC WORKS ADMINISTRATIVE

TECHNICIAN TO ATTEND THE AMERICAN PUBLIC WORKS ASSOCIATION PUBLIC WORKS INSTITUTE IN DOWNEY, CALIFORNIA, MAY 26-28, 2026

10. AUTHORIZE OVERNIGHT TRAVEL FOR MARKETING MANAGER TO ATTEND THE CALIFORNIA TRAVEL ASSOCIATION SUMMIT 2026 IN NAPA VALLEY, CALIFORNIA, AUGUST 31 – SEPTEMBER 2, 2026

11. APPROVE DEMAND REGISTERS DATED APRIL 10 AND 17, 2026

12. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED FEBRUARY 28, 2026
MOTION – A motion was made and seconded by Councilmembers Peña/McGarrey to approve the Consent Calendar as presented, with Item No. 3 adopting Resolutions Nos. 2026-009 and 2026-010. Motion passed unanimously.

BUSINESS SESSION

1. APPROVE MEMORANDUM OF UNDERSTANDING (MOU) WITH GREATER

COACHELLA VALLEY CHAMBER OF COMMERCE (GCVCC) FOR FISCAL YEAR 2026/27
Marketing Manager Graham presented the staff report, which is on file in the Clerk’s Office.

PRESENTER: Brandon Marley, President and CEO with GCVCC – spoke about improvements to the car show event; the MOU cost increase; payment for event food vendors’ Health Department permits; the beer garden hours; sponsors; and car show logistics.
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CITY COUNCIL MINUTES Page 7 of 10 MAY 5, 2026
Council discussed the car show scheduling and parking; the GCVCC mission statement; and metrics tied to GCVCC missions.

MOTION – A motion was made and seconded by Councilmembers Sanchez/Fitzpatrick to approve a Memorandum of Understanding with the Greater Coachella Valley Chamber of Commerce for fiscal year 2026/27; and authorize the City Manager to execute the document. Motion passed unanimously.

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

WITH ACTION PARK ALLIANCE (APA) FOR MANAGEMENT AND

OPERATIONS OF THE LA QUINTA X-PARK
Community Services Deputy Director Calderon and Senior Management Analyst Calderon presented the staff report, which is on file in the Clerk’s Office.

PRESENTERS: Facility Manager Victor Delgado and Director of Operations Victor Nelson with Action Park Alliance – answered Council’s questions regarding summer hours of operation; community feedback regarding extended hours; APA’s ability to staff the facility for extended days and hours; noise complaint calls from neighbors; and membership fees – future discussion regarding possible fee increases to reduce the City’s subsidy to maintain and operate the park.

Council discussed raising membership fees – resident versus non-resident.

MOTION – A motion was made and seconded by Councilmembers McGarrey/Fitzpatrick to approve Amendment No. 1 to Agreement for Contract Services with Action Park Alliance to provide management and operations of the La Quinta X-Park, for a total not to exceed amount of $542,839, pursuant to Option 1 for expanded X-Park seven-day operations year-round with hours and programming to be determined by APA and City staff. Motion passed unanimously.

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

WITH DESERT RECREATION DISTRICT (DRD) FOR MANAGEMENT AND

OPERATIONS OF THE FRITZ BURNS POOL
COUNCILMEMBER PEÑA RECUSED HIMSELF FROM DISCUSSION AND
VOTE ON BUSINESS SESSION ITEM NO. 3 DUE TO A POTENTIAL CONFLICT

OF INTEREST STEMMING FROM THE PROXIMITY OF HIS REAL PROPERTY INTEREST TO THE PROJECT LOCATION, AND LEFT THE DAIS AT 5:55 P.M.

Community Services Deputy Director Calderon and Senior Management Analyst Calderon presented the staff report, which is on file in the Clerk’s Office.

Council discussed the cost of pool service and heating; access and hours of the activity pool; and pool programs and class fees set by DRD.
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CITY COUNCIL MINUTES Page 8 of 10 MAY 5, 2026
PRESENTER: Recreational Specialist Kyle Pleming with DRD – answered Council’s questions regarding programs, fees, parking, lifeguard staffing and certification; expects an increase in youth usage; parent supervision requirements; and schedule overlap/conflict between senior programs and children’s classes.

MOTION – A motion was made and seconded by Councilmembers Fitzpatrick/McGarrey to approve Amendment No. 2 to Agreement for Contract Services with Desert Recreation District for management and operations of the Fritz Burns Pool; and authorize the City Manager to execute the amendment. Motion passed: ayes – 4, noes – 0, abstain – 0, absent – 1 (Peña).

COUNCILMEMBER PEÑA RETURNED TO THE DIAS AT 6:14 P.M. FOR THE

REMAINDER OF THE MEETING

4. APPROVE SILVERROCK RESORT 2026/27 ANNUAL PLAN
Finance Director Martinez presented the staff report, which is on file in the Clerk’s Office.

PRESENTER: General Manager Randy Duncan, Landmark Golf Management, LLC – answered Council’s questions regarding number of golf rounds; turf conversion; key takeaways from hosting the 2025 La Quinta Ironman 70.3 triathlon event; and the 15% water conservation.

MOTION – A motion was made and seconded by Councilmembers Peña/Sanchez to approve the SilverRock Resort 2026/27 Annual Plan, as presented. Motion passed unanimously.

5. APPROVE AMENDMENT NO. 8 TO GOLF COURSE MANAGEMENT

AGREEMENT WITH LANDMARK GOLF MANAGEMENT, LLC FOR

SILVERROCK GOLF COURSE MANAGEMENT SERVICES
Finance Director Martinez said the staff report for Business Session Item No. 5 was presented along with Business Session Item No. 4 above, which is on file in the Clerk’s Office.

MOTION – A motion was made and seconded by Councilmembers Peña/Fitzpatrick to approve Amendment No. 8 to Golf Course Management Agreement with Landmark Golf Management, LLC. to provide SilverRock golf course management services for three additional years until June 30, 2029, for a total not to exceed amount of $151,284 for fiscal year 2026/27 and an annual 5% increase for consecutive years; and authorize the City Manager to execute the amendment. Motion passed unanimously.

MAYOR EVANS CALLED FOR A BRIEF RECESS AT 6:22 P.M.
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MAYOR EVANS RECONVENED THE COUNCIL MEETING AT 6:39 P.M. WITH

ALL MEMBERS PRESENT

STUDY SESSION

1. DISCUSS LAW ENFORCEMENT SERVICES PROVIDED BY RIVERSIDE COUNTY SHERIFF’S OFFICE
Mayor Evans said WRITTEN PUBLIC COMMENTS were received from La Quinta resident Steve Lawrence commending the Riverside County Sheriff’s Department personnel assigned to La Quinta for their professionalism, personal approach, and leadership in representing the mission of La Quinta to residents and guests in the community, which were distributed to Council, published on the City’s website, and included in the public record of this meeting.

Public Safety Deputy Director Mendez and Management Analyst Chastain presented the staff report, which is on file in the Clerk’s Office.

Council discussed the service hours for the contract; reduction in crime rate; current average of service hours of 108; ability to increase service hours to 113 with an additional Deputy, as well as option 3 to increase service hours to 130; and commended La Quinta’s police team.

PRESENTER: Lieutenant Nicolas (Nick) Lingle with Riverside County Sheriff’s Department – answered Council’s questions regarding crime solving data; phase 2 of public safety cameras; lack of public requests to view public camera footage; restrictions on use of public camera videos; results from the addition of 1 motor officer; use of drones; functions of the 3 Community Service Officers (CSOs); reasons for the drop in crime; additional State resources to prosecute repeat offenders; School Resource Officers’ (SROs) work with drug crime; homelessness statistics; effect of the recently adopted La Quinta Municipal Code Chapter 11.46 related to unauthorized camping within the city; involvement of individual retail security; recruitment efforts; bicycle safety classes; youth bike/pedestrian safety; e-bike education and enforcement; e-bike patrols soon starting; equipment needs; and the proven benefits of technology investments and evolved policing.

Council reached a consensus and directed staff to prepare a contract with 108 service hours, and should additional needs come to light, Council will consider increasing the service hours in the future.

PUBLIC HEARINGS – None
DEPARTMENTAL REPORTS – All reports are on file in the City Clerk’s Office. 17 CLICK HERE to Return to Agenda
CITY COUNCIL MINUTES Page 10 of 10 MAY 5, 2026
MAYOR’S AND COUNCIL MEMBERS’ ITEMS
Mayor Evans reported on her, and other Councilmembers’ attendance at the City Birthday Celebration held at the Civic Center Campus; Launch Party; Desert Rodeo ribbon cutting; Coachella Valley Business and Economic Conference; and Chamber of Commerce State of Education event.

Councilmember Fitzpatrick reported on her attendance at the Desert Rodeo ribbon cutting; and, Kathy Kronemeyer’s celebration of life.

Councilmember McGarrey reported on her attendance at Corazo Credit Union ribbon cutting; the Hudson Martin PC law office in Old Town ribbon cutting; FIND Food Bank telethon; and the ABC Recovery Center tour.

Councilmember Sanchez reported on his, and other Councilmembers’ attendance at the Victims of Violent Crime candlelight vigil; and Shay’s Warriors Mothers’ Day high tea.

REPORTS AND INFORMATIONAL ITEMS
La Quinta’s representative for 2026, Mayor Evans reported on her participation in the following organizations’ meetings:
 CVAG COACHELLA VALLEY CONSERVATION COMMISSION
 CVAG ENERGY AND SUSTAINABILITY RESOURCES COMMITTEE
 CVAG EXECUTIVE COMMITTEE
 PALM SPRINGS AIR MUSEUM BOARD
 VISIT GREATER PALM SPRINGS CONVENTION AND VISITORS BUREAU La Quinta’s representative for 2026, Mayor Pro Tem Fitzpatrick reported on her participation in the following organization’s meeting:
 RIVERSIDE COUNTY TRANSPORTATION COMMISSION BUDGET COMMITTEE

ADJOURNMENT
There being no further business, a motion was made and seconded by Councilmembers Fitzpatrick/McGarrey to adjourn at 7:27 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 8 MAY 19, 2026

CITY COUNCIL

MINUTES
TUESDAY, MAY 19, 2026

CALL TO ORDER
A regular meeting of the La Quinta City Council was called to order at 3:00 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
City Manager McMillen requested to pull Consent Calendar Item No. 4 related to approving a Community Card Customer Agreement with Yiftee, Inc. for economic development subsidy for small businesses in La Quinta for fiscal year 2026/27 and consider it as Business Session Item No. 2 on tonight’s agenda. Council concurred.

CLOSED SESSION

3. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION; PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9;
CONSENT CALENDAR ITEM NO. 2
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CITY COUNCIL MINUTES Page 2 of 8 MAY 19, 2026
NAME OF CASE: CITY OF LA QUINTA V. SILVERROCK DEVELOPMENT COMPANY, ET AL. (RIVERSIDE COUNTY SUP. CT. CASE NO. CVPS2404750)

4. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION; INITIATION OF LITIGATION PURSUANT TO PARAGRAPH (4) OF
SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9 (NUMBER OF CASES: 1)

COUNCIL RECESSED THE OPEN SESSION PORTION OF THE MEETING AND MOVED INTO CLOSED SESSION AT 3:02 P.M.

MAYOR EVANS RECONVENED THE OPEN SESSION PORTION OF THE CITY COUNCIL MEETING AT 4:03 P.M. WITH ALL MEMBERS PRESENT
REPORT ON ACTION(S) TAKEN IN CLOSED SESSION:

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.
 CLOSED SESSION ITEM NO. 4 – pursuant to Government Code section 54957.1(a)(2), Council took the following action:

MOTION – A motion was made and seconded by Councilmembers Peña/Fitzpatrick to authorize the City Attorney’s office to initiate an action related to the anticipated litigation.

Motion passed unanimously.

Mr. Ihrke explained that while at this time the action, defendants, and other particulars do not need to be identified, once formal action has commenced, the action, defendants, and other particulars relating to the nature of the action would be disclosed to any person upon inquiry, unless to do so would jeopardize the City’s ability to effectuate service of process on one or more unserved parties or to do so would jeopardize the ability to conclude any settlement negotiations to the City’s advantage. 20 CLICK HERE to Return to Agenda
CITY COUNCIL MINUTES Page 3 of 8 MAY 19, 2026

PLEDGE OF ALLEGIANCE
Councilmember Sanchez led the audience in the Pledge of Allegiance.

PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA
PUBLIC SPEAKER: Tom Brohard, La Quinta – thanked Council for the restriping on Highway 111; mentioned previous discussion on widening the sidewalk for pedestrianscyclists-carts; and suggested the driveway exiting Rubio’s be restricted to entrance only.

City Manager McMillen provided details on the City’s examination of that access and egress as well as discussions with Fire personnel and are considering options.

City Clerk Radeva said WRITTEN PUBLIC COMMENTS were received from La Quinta resident Morgan Murmo requesting pedestrian crosswalk improvements at the Avenue 52 and Avenida Bermudas Roundabout leading to Fritz Burns Park, which were distributed to Council, made public, published on the City’s website, and included in the public record of this meeting.

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. Furthermore, TBE continues to move forward with the preliminary studies and property review, in furtherance of the Development Agreement and related agreements and reports that were approved by the City Council as part of the sale of the property and approval of TBE’s project. Prior Announcements regarding the bankruptcy case are available on the City’s website at www.laquintaca.gov/talus.

Mr. Ihrke said, as previously summarized a couple meetings ago, the case in the Bankruptcy Court resumed with a “wind-down” process, in which the court has the matter of resolving the allocation and distribution to creditors of the Sale Proceeds from the sale of the debtors property to TBE, along with wrapping-up the proceedings in the Bankruptcy Court.

In connection with that “wind-down” process, the Bankruptcy Court granted the debtors motion for an order (i) approving a Preliminary Combined Disclosure Statement and Chapter 11 Liquidation Plan (the “Plan”) on an Interim Basis for Solicitation Purposes 21 CLICK HERE to Return to Agenda
CITY COUNCIL MINUTES Page 4 of 8 MAY 19, 2026
Only; (ii) approving Solicitation and Voting Procedures for Creditors; and (iii) scheduling a combined Hearing for decisions to be made on the Plan.

As that name implied, debtors’ Solicitation Motion was a procedural step under Bankruptcy Law, teeing-up the Plan for creditors to approve or object to the proposed amounts and methodology of liquidating and allocating the net proceeds from the sale of debtors’ former property to TBE, among other provisions.

During that solicitation period, several key creditors objected to the proposed Plan. As a result of those objections, many of the parties in the bankruptcy case litigation propounded discovery, which is a method to obtain information or evidence, and served discovery requests on one another.

As such, the debtors, City, and key creditors once again engaged in settlement discussions and agreed to a “Global Plan Settlement,” which among multiple deal points, would amend for a second time the Combined Disclosure Statement and Chapter 11 Liquidation Plan (the “Second Amended Plan”), and will be considered by the Bankruptcy Court later this week.

Notably, several contingencies are included in the Global Plan Settlement, including the requirement that the City Council must approve the final terms of any settlement, if the Second Amended Plan is approved by the Bankruptcy Court.

The City Manager, Special Counsel, and the City Attorney’s office will keep the Council informed as to progress and the status of this case.

2. PROCLAMATION IN RECOGNITION OF THE 57TH ANNUAL PROFESSIONAL MUNICIPAL CLERKS WEEK - MAY 3-9, 2026
Mayor Evans and Councilmembers presented a proclamation recognizing the 57th Annual Professional Municipal Clerks Week to the City Clerk’s Department and thanked staff for their professionalism, dedication, and commitment to public service.

3. PROCLAMATION IN RECOGNITION OF LARRY BOHANNAN, A LEGENDARY

GOLF JOURNALIST FOR THE COACHELLA VALLEY, AND

CONGRATULATING HIM ON HIS RETIREMENT FROM THE DESERT SUN Mayor Evans presented a proclamation recognizing the 40-year career and accomplishment of Larry Bohannan as the area’s legendary golf journalist for the Desert Sun newspaper.

4. PRESENTATION BY COLLEGE OF THE DESERT (COD) PARTNERSHIP AND

COMMUNITY EDUCATION DIRECTOR VERONICA IZURIETA ON THE

LANDSCAPING CERTIFICATION PROGRAM THROUGH COD, IN

PARTNERSHIP WITH THE COACHELLA VALLEY ASSOCIATION OF

GOVERNMENTS (CVAG) AND COACHELLA VALLEY WATER DISTRICT
(CVWD)
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PRESENTER: COD PaCE Director Izurieta provided a presentation regarding the Landscaping Certification program offered by COD in partnership with CVAG and CVWD, including the mission and purpose of the program, goals, subjects covered, bilingual instruction, types of participants, location, number of students, free to all, La Quinta being one of the cities that require this certification, and program is open to all interested.

5. PRESENTATION BY SUNLINE TRANSIT AGENCY CEO/GENERAL MANAGER MONA BABAUTA ON THE AGENCY’S RIDES REIMAGINED PROJECT – PHASE 2
PRESENTER: SunLine Transit Agency CEO/General Manager Babauta – announced that SunLine is conducting another survey; explained SunLine’s Rides Reimagined project Phase 2 which is to develop service scenarios based on public input from Phase 1 surveys and public input forums; key findings from Phase 1 were provided along with two possible scenarios; public input will again be sought on the service scenarios developed.

Council discussed changes to La Quinta’s routes, and effect of gasoline prices on ridership.

CONSENT CALENDAR

1. APPROVE COUNCIL SPECIAL MEETING MINUTES DATED MAY 1, 2026

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

WITH ACTION PARK ALLIANCE FOR MANAGEMENT AND OPERATIONS OF

THE LA QUINTA X-PARK

3. APPROVE AMENDMENT NO. 7 TO AB 2766 MEMORANDUM OF

UNDERSTANDING WITH THE COACHELLA VALLEY ASSOCIATION OF
GOVERNMENTS TO PROVIDE FUNDING FOR THE REGIONAL PM10 STREET

SWEEPING PROGRAM

4. Pulled from Consent Calendar by staff and considered as Business Session Item No. 1 >>> APPROVE COMMUNITY CARD CUSTOMER AGREEMENT WITH

YIFTEE, INC FOR ECONOMIC DEVELOPMENT SUBSIDY FOR SMALL
BUSINESSES IN LA QUINTA FOR FISCAL YEAR 2026/27

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

ADVERTISE FOR BID THE CITYWIDE MISCELLANEOUS CONCRETE
IMPROVEMENTS PROJECT NO. 2024-06

6. AUTHORIZE THE PUBLIC WORKS DEPARTMENT TO UTILIZE RED TERRA NURSERY TO PURCHASE UP TO $70,000 OF PLANT MATERIAL IN FISCAL YEAR 2025/26

7. RECEIVE AND FILE THIRD QUARTER FISCAL YEAR 2025/26 TREASURY REPORTS FOR JANUARY, FEBRUARY, AND MARCH 2026
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MOTION – A motion was made and seconded by Councilmembers Fitzpatrick/McGarrey to approve Consent Calendar Item Nos. 1-3 and 5-7, as presented. Motion passed unanimously.

BUSINESS SESSION

1. Pulled from Consent Calendar by staff and considered as Business Session Item No. 1 >>> APPROVE COMMUNITY CARD CUSTOMER AGREEMENT WITH

YIFTEE, INC FOR ECONOMIC DEVELOPMENT SUBSIDY FOR SMALL
BUSINESSES IN LA QUINTA FOR FISCAL YEAR 2026/27
City Manager McMillen presented the staff report, which is on file in the Clerk’s Office.

Council discussed that the subsidy is part of the Shop Local program and is totally digital; vendors are paid the same day; time frame for use; trial program for the summer months in the Coachella Valley; marketing plan for the program; definition of summer months; set up to be done by Yiftee, Inc.; City’s limited ability by State law to subsidize local businesses; the financial benefit to the City revenues and City businesses of this program since the card funds must be spent within the City.

MOTION – A motion was made and seconded by Councilmembers Peña/Fitzpatrick to approve Community Card Customer Agreement with Yiftee, Inc. for economic development subsidy for small businesses in La Quinta for fiscal year 2026/27; and authorize the City Manager to execute the agreement. Motion passed unanimously.

STUDY SESSION

1. DISCUSS FISCAL YEAR 2026/27 PRELIMINARY PROPOSED BUDGET Finance Director Martinez presented the staff report, which is on file in the Clerk’s Office.

Council discussed unfunded pension liability payments; scoring and ranking of cities based on fiscal stability; transparency of the budget; development impact fees (DIF) payoff over the next fiscal year through the City’s Capital Improvements Program; the City’s fiscal year 2029-30 Recognized Obligation Payment Schedule (ROPS) payoff; Measure G funds; Financial Advisory Commission review and oversight; guidance from public workshops; results visible; and reinvestments in the City.

Council reviewed the dates for future budget review meetings in May and June, with consideration of budget adoption scheduled for June 16, 2026, and had no additional directions for staff.

PUBLIC HEARINGS – None
DEPARTMENTAL REPORTS – All reports are on file in the City Clerk’s Office. 24 CLICK HERE to Return to Agenda
CITY COUNCIL MINUTES Page 7 of 8 MAY 19, 2026
MAYOR’S AND COUNCIL MEMBERS’ ITEMS
Councilmembers thanked staff for the restriping on the west end of Highway 111, for the additional trash receptacles in the Park, and the rattlesnake signs at the top of the Cove.

Mayor Evans reported on her, and other Councilmembers’ attendance at Read With Me at Truman Elementary School; CVlink Day – La Quinta’s entry point and section; Concertin-the-Park; Southern California Association of Governments (SCAG) conference; Jack Bouquin’s 100th birthday; La Quinta High School IT Academy Senior Recognition event; Women Who Rule luncheon; Desert Sands Unified School District Chili Golf Tournament; Cathedral City State-of-the-City; Bruce Lee Memorial; Palm Springs Air Museum joint mixer; Harvey Milk diversity Breakfast; and Rotary Club’s First Responder Recognition.

Councilmember Peña reported on his attendance at the Contract Cities Gonzales Dinner.

Councilmember Sanchez reported on his, and other Councilmembers’ attendance at 29- PSP; and the Air Museum Learning Center.

REPORTS AND INFORMATIONAL ITEMS
La Quinta’s representative for 2026, Mayor Evans reported on her participation in the following local, regional and State meeting(s):
 CVAG COACHELLA VALLEY CONSERVATION COMMISSION
La Quinta’s representative for 2026, Mayor Pro Tem Fitzpatrick reported on her participation in the following local, regional and State meeting(s):
 RIVERSIDE COUNTY TRANSPORTATION COMMISSION (RCTC)
La Quinta’s representative for 2026, Councilmember McGarrey reported on her participation in the following local, regional and State meeting(s):
 COACHELLA VALLEY MOUNTAINS CONSERVANCY
 DESERT RECREATION DISTRICT COMMITTEE (Fitzpatrick & McGarrey)  LEAGUE OF CALIFORNIA CITIES – EXECUTIVE COMMITTEE, RIVERSIDE

COUNTY DIVISION
La Quinta’s representative for 2026, Councilmember Peña reported on his participation in the following local, regional and State meeting(s):
 CV MOSQUITO AND VECTOR CONTROL DISTRICT BOARD OF TRUSTEES  CVAG PUBLIC SAFETY COMMITTEE
La Quinta’s representative for 2026, Councilmember Sanchez reported on his participation in the following local, regional and State meeting(s):
 SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS
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ADJOURNMENT
There being no further business, a motion was made and seconded by Councilmembers McGarrey/Fitzpatrick to adjourn at 6:04 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: June 2, 2026

STAFF REPORT
AGENDA TITLE: AUTHORIZE OVERNIGHT TRAVEL FOR THE DEPUTY CITY CLERK

TO ATTEND THE ASSOCIATION OF RECORDS MANAGERS AND
ADMINISTRATORS 2026 CALIFORNIA 4TH ANNUAL SUMMER CONFERENCE OF INFORMATION AND RECORDS MANAGEMENT IN IRVINE, CALIFORNIA, JUNE 25- 26, 2026

RECOMMENDATION
Authorize overnight travel for the Deputy City Clerk to attend the Association of Records Managers and Administrators 2026 California 4th Annual Summer Conference of Information and Records Management in Irvine, California, June 25-26, 2025.

EXECUTIVE SUMMARY
 The Association of Records Managers and Administrators (ARMA) International is a non-profit membership association for information and records management professionals.
 The ARMA 2026 California 4th Annual Summer Conference of Information and Records Management is a 2-day event offering educational sessions, networking opportunities, continuing education credit opportunities for professional certifications, and sponsor exhibitions, which will allow staff to stay up to date with records management and information best practices and continue professional development.

FISCAL IMPACT
Estimated expenses are $1,000, which include registration, travel, lodging, parking, and meals. Funds are available in fiscal year 2025/26 City Clerk’s Travel and Training budget (Account No. 101-1005-60320).

BACKGROUND/ANALYSIS
ARMA International is a non-profit membership association for information and records management professionals.

The ARMA 2026 California 4th Annual Summer Conference of Information and Records Management is an opportunity for those who work in data and records archiving to learn best practices, stay informed on industry standards, and continue to improve in their roles.

CONSENT CALENDAR ITEM NO. 3
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This conference is a 2-day event covering subjects such as records retention and archiving, disaster recovery, information security, professional development, artificial intelligence, and a myriad of other topics, which will allow staff to stay up to date with records management best practices and continue professional development.

ALTERNATIVES
Council may elect not to authorize this request.

Prepared by: Olivia Rodriguez, Deputy City Clerk
Approved by: Monika Radeva, City Clerk
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City of La Quinta
CITY COUNCIL MEETING: June 2, 2026

STAFF REPORT
AGENDA TITLE: ADOPT RESOLUTION TO REQUEST COUNTY OF RIVERSIDE

PLACE COLLECTION COSTS FOR SOLID WASTE HANDLING SERVICES AT SINGLE FAMILY DWELLINGS ON TAX ROLLS FOR FISCAL YEAR 2026/27

RECOMMENDATION
Adopt a Resolution to request the County of Riverside place collection costs for solid waste handling services for single-family dwellings on the tax rolls for fiscal year 2026/27.

EXECUTIVE SUMMARY
• SB 1383, adopted in 2016 and effective January 2022, requires cities to provide organics recycling to all residents and businesses to reduce methane emissions from organic waste.
• In 2022 and 2023, Council approved an Amended and Restated Agreement and Amendment No. 1 with Burrtec Waste and Recycling Services, LLC to provide solid waste, recycling, organics, and household hazardous waste services, including billing residential accounts via the property tax roll. • On June 4, 2024, the City Council adopted Resolution No. 2024-021 (Amendment No. 2) requiring the procurement of qualifying compost and mulch to help the City comply with SB 1383.
• The County Tax Assessor requires Council to annually adopt a resolution requesting that the cost of solid waste collection services be placed on the residential tax rolls.

FISCAL IMPACT – None

BACKGROUND/ANALYSIS
On May 17, 2022, Council adopted Resolution No. 2022-013, approving an exclusive franchise Agreement with Burrtec for solid waste handling, recycling, organics, and household hazardous waste services, which provides for collection of single-family residential service charges through the County property tax roll. On June 6, 2023, Council adopted Resolution No. 2023-014, approving Amendment No. 1 to the Agreement and amending “Section 8.6.8, Acceptance of Recyclable Materials and Household Hazardous Waste,” to add collection of household hazardous waste services.

CONSENT CALENDAR ITEM NO. 4
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SB 1383 addresses short-lived climate pollutants, including methane emissions from organic waste in landfills, and requires cities to provide organics recycling services and to meet statewide organic waste disposal reduction targets. On June 4, 2024, Council adopted Resolution No. 2024-021, approving Amendment No. 2 to the Agreement and amending “Section 8.18, Provision for Recovered Organic Waste Product,” to implement procurement of a specified amount of qualifying compost and mulch, thereby supporting the City’s compliance with this state mandate.

The Agreement with Burrtec stipulates that the costs of solid waste collection, handling, and street sweeping services for single-family dwellings are to be collected through the property tax rolls. Section 24 of the Agreement authorizes Burrtec to adjust rates annually based on the Consumer Price Index and to pass through increases from the transfer station, and the resulting single-family residential and related service rates for fiscal year 2026/27 will be placed on the tax rolls effective July 1, 2026. These service costs are not subject to Proposition 218 voter approval because the rates are reasonably related to the cost of providing the services.

The table below details the proposed rates for fiscal year 2026/27 (Attachment 2).

Single-Family Dwelling 2025/26 Rate
(existing)
2026/27 Rate
(proposed)
Service Component $19.61/month $20.22/month
Disposal Component $7.67/month $8.05/month
AB 939 Fee $0.10/month $0.10/month
Total Rate $27.38/month
$328.56/year
$28.37/month
$340.44/year
Additional Residential Services 2025/26 Rate
(existing)
2026/27 Rate
(proposed)
Additional Refuse Cart $9.39/month
$112.68/year
$9.68/month
$116.16/year
Backyard Service for 3 containers $16.72/month
$200.64/year
$17.24/month
$206.88/year
Backyard Service additional container $3.30/month
$39.60/year
$3.39/month
$40.68/year
PGA 2nd Pick-up Day $17.23/month
$206.76/year
$17.87/month
$214.44/year
Surcharge for Homeowners Association
desiring Monday service
10% of Service
Component
10% of Service
Component
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ALTERNATIVES
Staff does not recommend an alternative.

Prepared by: Gil Villalpando, Director of Business Unit and Housing Development Approved by: Jon McMillen, City Manager
Attachments: 1. Resolution No. 2026-XXX

2. Waste Handling Service Rates – effective July 1, 2026 31 CLICK HERE to Return to Agenda
RESOLUTION NO. 2026 – 0XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITYOF LA

QUINTA, CALIFORNIA, REQUESTING THE COUNTY OF

RIVERSIDE TO PLACE COLLECTION OF COSTS FOR SOLID

WASTE HANDLING SERVICES AT SINGLE-FAMILY

DWELLINGS ON THE TAX ROLLS
WHEREAS, the La Quinta City Council wishes to ensure the uniform collection of rates for solid waste handling services at single-family dwellings and place collection thereof on the County of Riverside Tax Assessor’s Tax Rolls; and WHEREAS, the attached “Exhibit A” sets forth the maximum rates that may be collected for solid waste handling services at single-family dwellings in the City of La Quinta pursuant to a franchise agreement with an Effective Date of July 1, 2022, entitled “Amended and Restated Agreement Between The City of La Quinta and Burrtec Waste and Recycling Services, LLC, for Solid Waste Handling Services” (Agreement), as amended by that certain Amendment No. 1 to the Agreement, dated July 1, 2023, and Amendment No. 2 to the Agreement, dated July 1, 2024; and WHEREAS, the City of La Quinta has determined that applicable provisions, if any, of Proposition 218 (Articles XIII C and XIII D of the California Constitution) have been satisfied in connection with the matters addressed by the Resolution.

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

SECTION 1. The City Council hereby requests the Riverside County Tax Assessor to place collection of costs for solid waste handling services at single-family dwellings in the City on the County’s tax rolls as set forth by “Exhibit A,” attached hereto and incorporated by this reference.

PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City Council held on this 2nd day of June 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTACHMENT 1
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Resolution No. 2026 – 0XX
Residential Waste Fee Schedule on Tax Roll for Fiscal Year 2026/27 Adopted: June 2, 2026

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________________________
LINDA EVANS, Mayor
City of La Quinta, California
ATTEST:
_________________________
MONIKA RADEVA, City Clerk
City of La Quinta, California
APPROVED AS TO FORM:
___________________________
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
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Resolution No. 2026 – 0XX
Residential Waste Fee Schedule on Tax Roll for Fiscal Year 2026/27 Adopted: June 2, 2026

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EXHIBIT A
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ATTACHMENT 2
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City of La Quinta
Maximum Rates For Single Family Dwellings - Monthly*
Effective July 1, 2026
Single Family Dwellings Service Disposal AB939 Total Monthly Total Yearly Component Component Fees Rate* Rate
Tax Roll Billing $ 20.22 $ 8.05 $ 0.10 $ 28.37 $ 340.44 Direct Billing $ 22.17 $ 8.05 $ 0.10 $ 30.32 $ 363.84
Additional Refuse Cart $ 9.68 $ 9.68 $ 116.16
Cart Replacement - ( Per Section 8.1.8 F) one-time fee $ 81.23 $ 81.23 n/a Bulky Item: in excess of 4 items or non-regular collection day** $ 24.37 $ 24.37 n/a Backyard Service
Basic Additional Charge for Backyard Service $ 17.24 $ 17.24 $ 206.88 Charge for additional Recycling or Organics Cart $ 3.39 $ 3.39 $ 40.68 PGA- 2
nd Pick-Up Day $ 11.69 $ 6.18 $ 17.87 $ 214.44
Surcharge for HOA's Desiring Monday Service 10% of Service Component 10% of Service Component *The maximum rates on this sheet shall apply to all customers receiving automated or manual service utilizing carts or cans, including specifically such customers (if any) at commercial premises. **Charged for pickups in excess of four items, or pickup on a non-collection day. Pickup otherwise at no additional charge. 37 CLICK HERE to Return to Agenda
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City of La Quinta
CITY COUNCIL MEETING: June 2, 2026

STAFF REPORT
AGENDA TITLE: ADOPT RESOLUTIONS TO: (A) APPROVE PRELIMINARY FISCAL YEAR 2026/27 ENGINEER’S ANNUAL LEVY REPORT FOR LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT 89-1, AND (B) DECLARE INTENT TO LEVY

ANNUAL ASSESSMENTS FOR LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT 89-1

RECOMMENDATION
A. Adopt a Resolution approving the preliminary fiscal year 2026/27 Engineer’s Annual Levy Report for Landscape and Lighting Assessment District 89-1; and B. Adopt a Resolution declaring the City’s intent to levy annual assessments for construction, maintenance, and servicing landscape and lighting improvements within the Citywide Landscape and Lighting Assessment District 89-1 and giving notice thereof.

EXECUTIVE SUMMARY
• Annually, Council must take certain actions to allow the City to levy annual assessments pertaining to Citywide Landscape and Lighting Assessment District 89-1 (District).
• These actions include adopting the recommended resolutions and scheduling a public hearing (Hearing).
• The annual assessments fund 25% of the citywide landscape, lighting, median, and parkways maintenance costs. The fiscal year (FY) 2026/27 assessment rate will remain at $35.60 per dwelling/parcel also identified as an equivalent benefit unit (EBU). This has been the rate since 1997.
• Any increase to the assessment rate requires a benefit analysis; new assessments must then be approved by a majority vote of all property owners within the City, which comprises the District.

FISCAL IMPACT
The estimated FY 2026/27 cost for retention basin maintenance, and median and parkway landscape and lighting maintenance is $4,000,756 (Table 1 on pages 12 and 13 of 3).

CONSENT CALENDAR ITEM NO. 5
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The EBU will generate an estimated $1,001,491. The City will also receive $150,000 from County Service Area 152, levied by Riverside County, for retention basin maintenance. The combined income is projected to be $1,151,491, leaving a shortfall, funded by the General Fund, of $2,849,265.

BACKGROUND/ANALYSIS
In 1989, the City formed the District to fund the maintenance, construction, and servicing of landscape areas, streetlights and traffic signals. Pursuant to the Landscape and Lighting Act of 1972, the City must annually perform a series of activities as outlined in Attachment 4, including preparation of an annual engineer’s report.

The FY 2026/27 Preliminary Engineer’s Annual Levy Report (Engineer’s Report), included as Attachment 3, has been prepared by City staff and Willdan Financial Services (Willdan), who provides parcel recognition support to establish the maintenance budget and identify the benefitting parcels. Below is a comparison of the FYs 2025/26 and 2026/27 Engineer’s Reports (Table 2 on page 14 of Attachment 3 ).

FY 2025/26 FY 2026/27
Citywide Benefit Zone Yes Yes
Number of Local Benefit Zones 6 6
Number of Equivalent Benefit Units (EBU’s) 28,149 28,132 EBU Rate $35.60/EBU $35.60/EBU
District Revenue $1,002,096 $1,001,491
Willdan projects a decrease of 17 in EBU’s from FYs 2025/26 to 2026/27; actuals will be based on the final FY 2026/27 County Secured Tax Roll.

All property owners, including those within the six local benefit zones, would be assessed a flat rate. The methodology has remained the same under the provisions of Proposition 218, which prohibits assessment increases without the approval of a simple majority of property owners in a public vote within the District.

The Council is required to approve the Engineer’s Report and schedule a public hearing to allow property owners an opportunity to provide testimony regarding any proposed changes. The hearing is scheduled for June 16, 2026.

Approving the Engineer’s Report does not impose the proposed EBU; the City can only levy the fee after a public hearing. Upon conclusion of the hearing, Council may consider the testimony and a resolution confirming the assessment diagram and EBU Rate.

The Engineer’s report also includes an annual review of the general funds budgeted for parks (Table 1) for Council to consider if they ever chose to pursue the creation of a Parks Assessment District.
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ALTERNATIVES
Council may elect to increase assessments in order to fully fund the District costs. Staff projects that the assessment would need to increase to $142.26 per EBU to balance the District budget. If Council selects this option, a District-wide benefit analysis and approval of the new assessments by vote of all affected property owners would be required.

Prepared by: Dianne Hansen, Maintenance & Operations Superintendent Approved by: Bryan McKinney, Public Works Director/City Engineer Attachments: 1. Resolution No. 2026-XXX

2. Resolution No. 2026-XXX

3. Preliminary Engineer’s Annual Levy Report FY 2026/27

4. Annual Activities Report
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RESOLUTION NO. 2026 – XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LA QUINTA, CALIFORNIA, APPROVING THE PRELIMINARY
ENGINEER’S REPORT FOR FISCAL YEAR 2026/2027 IN

CONNECTION WITH LA QUINTA LANDSCAPE AND
LIGHTING ASSESSMENT DISTRICT 89-1
WHEREAS, the City Engineer has prepared and filed a report entitled “La Quinta Landscape and Lighting Assessment District 89-1, Preliminary Engineer’s Report” (the “Report”) with the City Clerk of the City of La Quinta; and WHEREAS, the Report has been presented to City Council for review; and WHEREAS, the City Council has carefully examined and reviewed such Report.

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

SECTION 1. The Report, as filed, is hereby approved.

SECTION 2. The City Council authorizes and directs the City Clerk to (i) submit certified copies of this resolution to the County of Riverside and (ii) take such other and further actions as may be necessary and proper for the County Assessor to place this assessment on the tax roll.

SECTION 2. This Resolution shall go into effect upon adoption.

PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held on this 2nd day of June 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________
LINDA EVANS, Mayor
City of La Quinta, California
ATTACHMENT 148 CLICK HERE to Return to Agenda
Resolution No. 2026 – XXX
Preliminary Engineer’s Report L&L District 89-1
Adopted: June 2, 2026

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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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RESOLUTION NO. 2026 – XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LA QUINTA, CALIFORNIA, DECLARING ITS INTENTION

TO LEVY THE ANNUAL ASSESSMENTS FOR

CONSTRUCTION, MAINTENANCE, AND SERVICING

LANDSCAPING AND LIGHTING IMPROVEMENTS WITHIN

THE BOUNDARIES OF THE TERRITORY INCLUDED IN

THE CITYWIDE LANDSCAPE AND LIGHTING
ASSESSMENT DISTRICT 89-1 AND TO LEVY AND

COLLECT ASSESSMENTS PURSUANT TO THE
LANDSCAPE AND LIGHTING ACT OF 1972 AND GIVING

NOTICE THEREOF
WHEREAS, the City Council, by its Resolution No. 89-9, initiated proceedings pursuant to provisions of the Landscape and Lighting Act of 1972, being Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22500 (hereinafter referred to as “the Act”), for the formation of a Landscape and Lighting Assessment District designated “La Quinta Landscape and Lighting Assessment District 89-1,” shall include all of the territory located within the boundaries of the City; and
WHEREAS, the City Council desires to levy and collect assessments within Landscape and Lighting Assessment District 89-1 for the Fiscal Year commencing July 1, 2026, and ending June 30, 2027, to pay the costs and expenses of constructing, operating, maintaining, and servicing landscaping, lighting and associated facilities located within public places in the City; and
WHEREAS, the Engineer selected by the City Council has prepared and filed a report in connection with the Landscape and Lighting Assessment District 89-1 with the City Clerk of the City of La Quinta; and
WHEREAS, the report has presented to the City Council and the City Council did, by previous Resolution, approve such report.

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

SECTION 1. The City Council has previously formed Landscape and Lighting Assessment District 89-1 pursuant to the provisions of the Landscaping and Lighting Act of 1972, being Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22500.

SECTION 2. The City Council hereby finds that the maintenance and operation of projects identified in the Preliminary Engineer’s Report for Landscape and Lighting ATTACHMENT 2
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Resolution No. 2026 – XXX
Intent to Levy L&L District 89-1
Adopted: June 2, 2026

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Assessment District 89-1 consisting solely of exempt items of sidewalks, streets, sewers, water, flood control, and/or drainage pursuant to Article 13D Section 5(a) of the California Constitution, that the public interest requires the maintenance of the improvements, and declares its intention to levy and collect assessments for the fiscal year commencing July 1, 2026, and ending June 30, 2027, to pay for the costs and expenses of the improvements described in Section 4 hereof.

SECTION 3. The territory included within the boundaries of the Assessment District includes all of the land included within the boundaries of the City.

SECTION 4. Reference is hereby made to the report of the Engineer on file with the City Clerk of the City of La Quinta for a full and fair description of the improvements, the boundaries of the Assessment District and any zones therein and the proposed assessments upon assessable lots and parcels of land within the Assessment District.

SECTION 5. Notice is hereby given that June 16, 2026, at 5:00 p.m., at the City Council Chamber, located at 78495 Calle Tampico, La Quinta, California, 92253, is the time and place fixed for a Public Meeting by the City Council to allow public testimony regarding the assessment.

SECTION 6. Notice is hereby given that June 16, 2026, at 5:00 p.m., at the City Council Chamber, located at 78495 Calle Tampico, La Quinta, California, 92253, is the time and place fixed to hold a duly noticed Public Hearing by the City Council on the question of the levy of the proposed assessment for Landscape and Lighting Assessment District 89-1. Any interested person may file a written protest with the City Clerk prior to the conclusion of the hearing, or, withdrawal of the protest. A written protest shall state all grounds of objections and a protest by a property owner shall contain a description sufficient to identify the property owned by such property owner. At the hearing, all interested persons shall be afforded the opportunity to hear and be heard.

SECTION 7. The City Clerk is hereby authorized and directed to give notice of such hearings as provided in the Act.

SECTION 8. The City Council hereby designates The Desert Sun as the newspaper in which notice of the Public Hearing shall be published.

SECTION 9. The City Council authorizes and directs the City Clerk to (i) submit certified copies of this resolution to the County of Riverside and (ii) take such other and further actions as may be necessary and proper for the County Assessor to place this assessment on the tax roll.

SECTION 10. This Resolution shall go into effect upon adoption. 51 CLICK HERE to Return to Agenda
Resolution No. 2026 – XXX
Intent to Levy L&L District 89-1
Adopted: June 2, 2026

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PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held on this 2nd day of June 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
APPROVED AS TO FORM:
___________________________
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
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City of La Quinta
Street Lighting and Landscape
District No. 89-1
2026/2027 ENGINEER’S ANNUAL LEVY REPORT
Intent Meeting: June 2, 2026
Public Hearing: June 16, 2026
27368 Via Industria
Suite 200
Temecula, CA 92590
T 951.587.3500 | 800.755.6864
F 951.587.3510
www.willdan.com
ATTACHMENT 3
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AFFIDAVIT FOR THE ENGINEER'S ANNUAL LEVY REPORT
City of La Quinta
Street Lighting and Landscape District No. 89-1
Riverside County, State of California
This Report and the enclosed diagrams show the exterior boundaries of the District therein including the improvements, budgets, parcels and assessments to be levied for Fiscal Year 2026/2027, as they existed at the time of the passage of the Resolution of Intention. Reference is hereby made to the Riverside County Assessor’s maps for a detailed description of the lines and dimensions of parcels within the District. The undersigned respectfully submits the enclosed Report as directed by the City Council.

Dated this ____________ day of ______________, 2026.

Willdan Financial Services
Assessment Engineer
On Behalf of the City of La Quinta
By: ________________________________
Josephine Moses
Vice-President and Assistant Director, District Administration Services By: ________________________________
Tyrone Peter
P.E. # C 81888
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ENGINEER'S REPORT

CITY OF LA QUINTA

STREET LIGHTING AND LANDSCAPE
DISTRICT NO. 89-1
I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll thereto attached, was filed with me on the day of , 2026.

BY: Monika Radeva, City Clerk
City of La Quinta
Riverside County, California
I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll thereto attached, was approved and confirmed by the City Council of the City of La Quinta, California, on the day of , 2026.

BY: Monika Radeva, City Clerk
City of La Quinta
Riverside County, California
I HEREBY CERTIFY that the enclosed Assessment Roll was filed with the County Auditor of the County of Riverside, on the day of , 2026.

BY: Monika Radeva, City Clerk
City of La Quinta
Riverside County, California
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TABLE OF CONTENTS
I. OVERVIEW 1
A. INTRODUCTION 1
B. COMPLIANCE WITH CURRENT LEGISLATION 1
C. HISTORICAL BACKGROUND AND LEGISLATION 2
II. DESCRIPTION OF THE DISTRICT 2
A. DISTRICT BOUNDARIES AND SPECIFIC AREAS OF IMPROVEMENT 2 B. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT 2
C. IMPROVEMENTS WITHIN THE DISTRICT 4
III. METHOD OF APPORTIONMENT 5
A. GENERAL 5
B. BENEFIT ANALYSIS 5
C. METHODOLOGY 6
IV. DISTRICT BUDGETS 10
A. DESCRIPTION OF BUDGET ITEMS 10
B. 2026/2027 DISTRICT BUDGET 11
APPENDIX A – DISTRICT ASSESSMENT DIAGRAM 15
APPENDIX B – 2026/2027 COLLECTION ROLL 16
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2026/2027 City Of La Quinta L&L 89-1 Page 1 of 16
I. OVERVIEW
A. INTRODUCTION
The City of La Quinta (the “City”) annually levies and collects special assessments in order to provide and maintain the facilities, improvements and services within Street Lighting and Landscape District No. 89-1 (the “District”). The District was formed in 1989 pursuant to the Landscaping and Lighting Act of 1972 (the “1972 Act”), Part 2 of Division 15 of the Streets and Highways Code and authorizes the Agency to annually levy and collect assessments to maintain the services and improvements related thereto.

This Engineer’s Annual Levy Report (the “Report”) describes the District, any changes to the District, and the proposed assessments for Fiscal Year 2026/2027.

The proposed assessments are based on the estimated cost to maintain improvements that provide special benefit to properties assessed within the District. The various improvements within the District and the costs of those improvements are identified and budgeted separately, including expenditures, deficits, surpluses, revenues, and reserves. The word “parcel,” for the purposes of this Report, refers to an individual property assigned its own Assessor Parcel Number (“APN”) by the Riverside County Assessor’s Office. The Riverside County Auditor/Controller uses Assessor Parcel Numbers and specific fund numbers on the tax roll to identify properties assessed for special district benefit assessments.

Each parcel within the District is assessed proportionately for those improvements provided by the District and from which the parcel receives special benefit.

Following consideration of public comments, written protests at a noticed public hearing and review of the Report, the City Council may order amendments to the Report or confirm the Report as submitted. Following final approval of the Report, and confirmation of the assessments, the City Council may order the levy and collection of assessments for Fiscal Year 2026/2027 pursuant to the 1972 Act. In such case, the assessment information will be submitted to the Riverside County Auditor/Controller and included on the property tax roll for each benefiting parcel for Fiscal Year 2026/2027.

B. COMPLIANCE WITH CURRENT LEGISLATION
The District was formed in 1989 pursuant to the 1972 Act. As such, the City has determined that pursuant to California Constitution Article XIIID Section 5 Subsection A the existing assessments are exempt from the substantive and procedural requirements of Proposition 218. Any new or increased assessments above the maximum assessment rates previously approved and levied by the City Council would be subject to both the substantive and procedural requirements of the Proposition.
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2026/2027 City Of La Quinta L&L 89-1 Page 2 of 16
C. HISTORICAL BACKGROUND AND LEGISLATION
The assessments for the District provide a special benefit to the parcels assessed, and the City utilizes General Fund Revenues to fund improvements and services that are considered general benefit.

This District was formed pursuant to the 1972 Act, which permits the establishment of assessment districts by cities for the purpose of providing for the maintenance of certain public improvements, which include the facilities existing within the District, as those improvements provide a special benefit to parcels.

The City Council reviews the current and projected years’ costs for the construction, operation, maintenance, and servicing of the District facilities and sets the assessment for the ensuing fiscal year, which runs between July 1 and June 30.

II. DESCRIPTION OF THE DISTRICT
A. DISTRICT BOUNDARIES AND SPECIFIC AREAS OF IMPROVEMENT The boundaries of the District are coterminous with the boundaries of the City. The Diagram of the District showing the exterior boundaries has been submitted to the City Clerk at the City and is included by reference.

B. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT
As applicable or may be applicable to this District, the 1972 Act defines improvements to mean one or any combination of the following:
 The installation or planting of landscaping.
 The installation or construction of statuary, fountains, and other ornamental structures and facilities.
 The installation or construction of public lighting facilities.  The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof, including, but not limited to, grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities.  The maintenance or servicing, or both, of any of the foregoing. 58 CLICK HERE to Return to Agenda
2026/2027 City Of La Quinta L&L 89-1 Page 3 of 16
 The acquisition of any existing improvement otherwise authorized pursuant to this section.

Incidental expenses associated with the improvements including, but not limited to:
 The cost of preparation of the Report, including plans, specifications, estimates, diagram, and assessment;
 The costs of printing, advertising, and the publishing, posting and mailing of notices;
 Compensation payable to the Riverside County (the “County”) for collection of assessments;
 Compensation of any engineer or attorney employed to render services;  Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements;
 Any expenses incidental to the issuance of bonds or notes pursuant to Section 22662.5.
 Costs associated with any elections held for the approval of a new or increased assessment.

The 1972 Act defines "Maintain" or "maintenance" to mean furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including:
 Repair, removal, or replacement of all or any part of any improvement.  Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury.
 The removal of trimmings, rubbish, debris, and other solid waste.  The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.
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2026/2027 City Of La Quinta L&L 89-1 Page 4 of 16
C. IMPROVEMENTS WITHIN THE DISTRICT
The District improvements are the operation, servicing and maintenance of landscaping, lighting and appurtenant facilities, including, but not limited to, personnel, electrical energy, water, materials, contracting services, and other items necessary for the satisfactory operation of these services described as follows:
 Landscaping and Appurtenant Facilities include, but are not limited to, landscaping, planting, shrubbery, trees, irrigation systems, hardscapes, fixtures, sidewalk maintenance and appurtenant facilities, located within the public street rights-of-way, medians, trails, and dedicated street, drainage or sidewalk easements within the boundary of the District.  Lighting and Appurtenant Facilities include, but are not limited to, poles, fixtures, bulbs, conduits, equipment including guys, anchors, posts and pedestals, metering devices, controllers and appurtenant facilities as required to provide safety lighting and traffic signals within public street rights-of-way and easements within the boundaries of the District.  Maintenance is defined as the furnishing of services and materials for the operation and usual maintenance, operation and servicing of the landscaping, public lighting facilities and appurtenant facilities, including repair, removal or replacement of landscaping, public lighting facilities, or appurtenant facilities; providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; and the removal of trimmings, rubbish, debris and other solid waste.
 Servicing is defined as the furnishing of water for the irrigation of the landscaping and the furnishing of electric current or energy, gas or other illuminating agent for the public lighting facilities, or for the lighting or operation of landscaping or appurtenant facilities.

The plans and specifications for the improvements are on file in the office of the City Engineer and are by reference made a part of this Report. 60 CLICK HERE to Return to Agenda
2026/2027 City Of La Quinta L&L 89-1 Page 5 of 16
III. METHOD OF APPORTIONMENT
A. GENERAL
The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements that include the construction, maintenance and servicing of public lights, landscaping and appurtenant facilities.

The 1972 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value:
“The net amount to be assessed upon lands within an
assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.”
The formula used for calculating assessments in this District therefore reflects the composition of the parcels, and the improvements and services provided, to apportion the costs based on benefit to each parcel.

B. BENEFIT ANALYSIS
Properties within the District boundary are found to derive a special benefit from the improvements provided by the District. These properties include single family residential, non-residential, vacant residential and non-residential, golf courses, agricultural and hillside conservation properties, vacant and remote non-residential and rural and estate residential properties.

Special Benefits
The method of apportionment (method of assessment) is based on the premise that each assessed parcel receives special benefit from the improvements maintained and funded by the assessments, specifically, landscaping and lighting improvements installed in connection with the development of these parcels. The desirability of properties within the District is enhanced by the presence of wellmaintained landscaping and lighting improvements in close proximity to those properties.

The annual assessments outlined in this Report are based on the estimated costs to provide necessary services, operation, administration, and maintenance required to ensure the satisfactory condition and quality of each improvement.

The special benefits associated with the landscaping improvements are specifically:
 Enhanced desirability of properties through association with the 61 CLICK HERE to Return to Agenda
2026/2027 City Of La Quinta L&L 89-1 Page 6 of 16
improvements.
 Improved aesthetic appeal of properties within the District providing a positive representation of the area.
 Enhanced adaptation of the urban environment within the natural environment from adequate green space and landscaping.
 Environmental enhancement through improved erosion resistance, and dust and debris control.
 Increased sense of pride in ownership of property within the District resulting from well-maintained improvements associated with the properties.
 Reduced criminal activity and property-related crimes (especially vandalism) against properties in the District through well-maintained surroundings and amenities.
 Enhanced environmental quality of the parcels by moderating temperatures, providing oxygenation and attenuating noise.

The special benefits of street lighting are the convenience, safety, and security of property, improvements, and goods, specifically:
 Enhanced deterrence of crime – an aid to police protection.  Increased nighttime safety on roads and highways.
 Improved visibility of pedestrians and motorists.
 Improved ingress and egress to and from property.
 Reduced vandalism, damage to improvements or property, and other criminal acts.
 Improved traffic circulation and reduced nighttime accidents and personal property loss.
 Increased promotion of business during nighttime hours in the case of commercial properties.

The preceding special benefits contribute to a specific enhancement and desirability of each of the assessed parcels within the District.

C. METHODOLOGY
Pursuant to the 1972 Act, the costs of the District may be apportioned by any formula or method that distributes the net amount to be assessed among the assessable parcels in proportion to the estimated special benefits to be received by each such parcel from the improvements. The special benefit formula used within the District should reflect the composition of the parcels - and the 62 CLICK HERE to Return to Agenda
2026/2027 City Of La Quinta L&L 89-1 Page 7 of 16
improvements and services provided therein - to apportion the costs based on estimated special benefit to each parcel.

The cost to provide maintenance and service of the improvements within the District shall be equitably distributed among each assessable parcel based on the estimated special benefit received by each parcel.

Equivalent Benefit Units
To equitably spread special benefit to each parcel, it is necessary to establish a relationship between the various types of properties within the District and the improvements that benefit those properties. Each parcel within the District is assigned an Equivalent Benefit Unit (“EBU”) factor that reflects its land use, size and development, or development potential. Parcels that receive special benefit from the various District improvements are proportionately assessed for the cost of those improvements based on their calculated EBU. The EBU method assessment for this District uses the Single-Family Residential parcel as the basic unit of assessment. A Single Family Residential (“SFR”) parcel equals one EBU.

Every other land-use is assigned an EBU factor based on an assessment formula that equates the property’s specific land-use and relative special benefits compared to the Single-Family Residential parcel.

The EBU method of apportioning special benefits is typically seen as the most appropriate and equitable assessment methodology for districts formed under the 1972 Act, as the benefits to each parcel from the improvements are apportioned as a function of land use type, size, and development. The following table provides a listing of land use types, the EBU factors applied to that land use and the multiplying factor used to calculate each parcel’s individual EBU for each improvement provided in the District.

During the formation of the District, a methodology was developed to calculate the EBUs for other residential and non-residential land use parcels, which are outlined below for reference. Every land use is assigned EBUs based on the assessment formula approved for the District. Parcels which have been determined to receive greater benefit than the SFR parcel are assigned more than 1 EBU and parcels that are determined to receive lesser benefit than SFR parcels are assigned less than 1 EBU as reflected in the Assessment Methodology.
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Single-Family Residential
The City’s General Plan allows up to one acre of area for subdivided residential lots. The subdivided single-family lot equal to or less than one acre in size is the basic unit for calculation of benefit assessments. Parcels less than one acre in size zoned for single-family residential use are assessed one (1) EBU.

Multi-Family Residential
Multi-Family Residential parcels are assessed for one-half (0.5) EBU per unit.

Non-Residential
The factor used for converting nonresidential is based on the average number of typical single-family residential lots of five per acre. Therefore, non-residential parcels will be assessed five (5) EBUs per acre with a minimum number per parcel of one (1) EBU.

Vacant Residential
Parcels defined as single family residential parcels less than one acre and having no structure will be assessed 33 percent (33%) of a single-family dwelling, or 0.33 EBU per parcel.

Vacant Non-Residential
Parcels not considered single family residential parcels less than one acre and having no structure will be assessed based on acreage. The typical development in La Quinta occurs in increments of twenty (20) acres or less. The first twenty (20) acres of a Vacant Non-Residential parcel will be assessed at a rate of 33 percent (33%) of developed non-residential properties, or 1.65 EBU per acre or any portion of an acre. The minimum number of EBUs per parcel is one (1) EBU. Any parcel of land greater than twenty (20) acres is considered open space and exempt from assessment until such time as parcel subdivision or development occurs.

Land Use EBU Factor
Exempt Parcels 0.0
Single Family Residential Parcels 1.0 per unit
Multi-Family Residential Parcels 0.5 per unit
Non-Residential Parcels 5.0 per acre; 1.0 minimum
Vacant Residential Parcels 0.33 per unit
Vacant Non-Residential Parcels 1.65 per acre for first 20 acres only Golf Course Parcels 0.50 per acre; 1.0 minimum
Agricultural Parcels 0.25 per acre; 1.0 minimum
Hillside Conservative Zone Parcels 0.10 per acre
Vacant & Remote Parcels 0.825 per acre for first 20 acres only Rural/Estate Residential 1.0 + 0.33 per acre in excess 1 acre 64 CLICK HERE to Return to Agenda
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Golf Courses
Properties identified as golf courses will be assessed at a rate of 10 percent (10%) of the developed nonresidential properties, or 0.50 EBU per acre or any portion of an acre. The minimum number per parcel is one (1) EBU.

Agricultural
Properties identified as agricultural will be assessed at a rate of 5 percent (5%) of developed non-residential properties, or 0.25 EBU per acre or any portion of an acre. The minimum number per parcel is one (1) EBU.

Hillside Conservation
Parcels located in areas zoned Hillside Conservation per the City’s Official Zoning Map will be assessed on the basis of allowable development within the Hillside Conservation Zone. The parcel will be assessed as one dwelling unit per ten (10) acres or 0.10 EBU per acre or any portion of an acre.

Vacant and Remote Non-Residential Parcels (LAFCO Annexation No. 9) Parcels not considered single family residential parcels less than one (1) acre and do not contain structures, will be assessed based on acreage. The City defines Vacant and Remote Non-Residential as parcels physically separated from City services and not readily able to develop due to difficult access and utility limitations. The land values are typically one half the value of other Vacant NonResidential parcels because of the high cost of constructing appropriate access and utility infrastructures necessary. The Vacant and Remote Non-Residential parcels are assessed at a rate of 0.825 EBUs per acre or portion thereof, for the first twenty (20) acres, with a minimum of one (1) EBU per parcel.

Rural/Estate Residential
Parcels of one acre or more in size but having only one residential unit are identified as Rural/Estate Residential. These parcels will be assessed at a rate of one (1) EBU for the first acre and 0.33 EBUs for each additional acre or portion of an acre.

Exempt Property
Publicly owned property and utility rights-of-way are exempt from assessment, as well as parcels of land shown on the County Assessor's records as Vacant Desert Land, Vacant Mountain Land, Agricultural Preserve and Public Utility owned land.

This Report does not propose an increase in the District’s assessment rates for Fiscal Year 2026/2027 over or above the maximum rate established. The proposed rate per EBU for Fiscal Year 2026/2027 is the same rate assessed for Fiscal Year 2025/2026. The base assessment rate to be approved for Fiscal Year 2026/2027 is $35.60.

The maximum assessment rate per EBU may not increase without a vote of the property owners in the District. Therefore, the assessment is proposed to remain at the maximum amount of $35.60 per EBU. This equates to total projected 65 CLICK HERE to Return to Agenda
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assessment revenue of $1,001,491. The City proposes the remaining $7,965,291 be funded through a General Fund contribution of $7,815,291 and $150,000 of revenue from CSA 152.

IV. DISTRICT BUDGETS
A. DESCRIPTION OF BUDGET ITEMS
The 1972 Act requires that a special fund be established and maintained for the revenues and expenditures of the District. Funds raised by assessment shall be used only for the purposes as stated herein. A contribution to the District by the City may be made to reduce assessments, as the City Council deems appropriate.

The following describes the services and costs that are funded through the District, shown in the District Budgets.

District Costs
Personnel – Reflects relevant City Staff salaries, wages and benefits, and also includes Worker’s Compensation Insurance, Stand-By, and Overtime Labor.

Contract Services – Includes contracted labor, such as the County Tax Roll Administration Fees, maintenance and repair of traffic signals, tree trimming, and security service.

Rental Services – Reflects funds used for the purpose of uniform rental.

Vehicle Operations – Includes the maintenance of fleet vehicles.

Utilities – Includes the electric, telephone, and water services.

Travel Training & Meetings – Reflects the funds used for the purposes of training and meetings.

Information Technology – Includes computers, printers, and other related items and services.

Operating Supplies – This item includes plant replacement, safety gear, field materials, and the materials used for the purposes of removing graffiti.

Small Tools/Equipment – Includes non-capital small tools and equipment.

District Administration – The cost for providing the coordination of District services and operations, response to public concerns and education, as well as procedures associated with the levy and collection of assessments. This item also includes the costs of contracting with professionals to provide any additional administrative, legal or engineering services specific to the District 66 CLICK HERE to Return to Agenda
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including any required notices, mailings or property owner protest ballot proceedings.

B. 2026/2027 DISTRICT BUDGET
For the purpose of estimating costs for the maintenance and servicing, actual costs are used where possible. However, where the improvements are new, or where actual maintenance experience is lacking, cost estimates will be used to determine costs. The Budget of estimated cost of operation, servicing, and maintenance for Fiscal Year 2026/2027 is summarized on the next page in Table 1. 67 CLICK HERE to Return to Agenda
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Table 1 - Fiscal Year 2026/2027 Budget
Category Description
Estimated
Expenditures Funding
Fiscal Year 2026/2027 L & L
Assessments
General Fund–
Parks
Personnel
Salaries-Permanent Full Time $617,583 $266,041 $351,542 Other Benefits & Deductions 344,437 155,815 188,622
Stand By 25,000 10,000 15,000
Stand By Overtime 65,000 30,000 35,000
Overtime 22,000 10,000 12,000
Total Personnel $1,074,020 $471,856 $602,164
Contract Services
Annual Lighting & Landscape Report $0 $0 $0
Civic Center Campus Lake
Maintenance 50,000 0 50,000
Lighting Contract Services 84,000 84,000 0
Financial Services Admin. Fee 0 0 0
Citywide Maintenance Contract 2,993,112 1,745,000 1,248,112 Undeveloped Parks PM10 Services 0 0 0
Maintenance & Repair 1,005,000 400,000 605,000
CVWD Lease-Pioneer Dog Park 0 0 0
Tree Trimming 65,000 50,000 15,000
Janitorial Services 0 0 0
Security Service - Corporation Yard 0 0 0
Fritz Burns Park 320,000 0 320,000
Lighting Service 1,000 0 1,000
SilverRock Way Landscaping 140,500 95,500 45,000
Total Contract Services $4,658,612 $2,374,500 $2,284,112 Rental Services
Uniforms $8,500 $3,500 $5,000
Total Rental Services $8,500 $3,500 $5,000
Park Equipment Vehicle
Operations
Facilities Charges $0 $0 $0
Fleet Maintenance 238,600 65,100 173,500
Facility & Equipment Depreciation 995,000 0 995,000
Total Operations $1,233,600 $65,100 $1,168,500
Gas $25,000 $0 $25,000
Utilities Electric 401,350 142,000 259,350
Phone $1,600 $0 $1,600
Water 492,900 250,000 242,900
Total Utilities $920,850 $392,000 $528,850
Travel Training &
Meetings
$15,000 $5,000 $10,000
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Category Description
Estimated
Expenditures Funding
Fiscal Year 2026/2027 L & L
Assessments
General Fund–
Parks
Information Technology
Computers Printers and Services $234,400 $91,300 $143,100 Total Information Technology $234,400 $91,300 $143,100
Operating Supplies
Plant Replacement $750,000 $550,000 $200,000
Graffiti Removal 25,000 10,000 15,000
Safety Gear 4,300 3,000 1,300
Field Materials 21,000 15,000 6,000
Total Operating Supplies $800,300 $578,000 $222,300
Small Tools / Equipment
Non-Capital $6,000 $4,000 $2,000
Total Small Tools/Equipment $6,000 $4,000 $2,000
Total Landscape & Lighting Budget $8,951,282 $3,985,256 $4,966,026 District Administration
Public Works Administration $0 $0 $0
Citywide Administration $15,500 $15,500 $0
Total District Administration $15,500 $15,500 $0
Total Landscape & Lighting Expenditures $8,966,782 $4,000,756 $4,966,026 Less: CSA 152 Revenue ($150,000) ($150,000) $0
Less: General Fund Contribution (7,815,291) (2,849,265) 4,966,026 Balance to Levy $1,001,491 $1,001,491
Total EBU 28,132.13
Levy Per EBU $35.60

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The following information was obtained from the Riverside County Assessor's Secured Roll, Assessor's Parcel Maps, and the City’s Planning Department. The land use categories were developed to classify the different land use types in the City.

Table 2
Land Use
Fiscal Year
2026/2027
Parcel Count
Fiscal Year
2026/2027
County
Acres
Fiscal Year
2025/2026
EBU
Fiscal Year
2025/2026
Levy
Fiscal Year
2026/2027
EBU (1)
Fiscal Year
2026/2027
Levy (2)
Agricultural 17 371.44 93.22 $3,318.60 93.22 $3,318.60
Exempt 96 139.74 0.00 0.00 0.00 0.00
Golf Course 281 3,490.78 1,802.59 64,170.74 1,802.59 64,170.74 Hillside Conservation 13 318.93 31.89 1,135.28 31.89 1,135.28 Multi-Family Residential 34 94.80 642.00 22,855.20 642.00 22,855.20 Non-Residential 286 580.02 2,914.90 103,770.44 2,914.90 103,770.44 Rural/ Estate 59 125.55 100.43 3,574.84 100.43 3,574.84 Vacant/ Remote 15 146.20 120.62 4,293.80 120.62 4,293.80 Single Family
Residential 21,597 3,978.00 21,597.00 768,853.20 21,597.00 768,853.20 Vacant Residential 1,100 772.13 363.00 12,914.00 363.00 12,914.00 Vacant Non-Residential 171 499.78 466.47 16,604.68 466.47 16,604.68 Total 23,669 10,517.37 28,132.13 $1,001,490.78 28,132.13 $1,001,490.78

(1) The difference in the “Balance to Levy” amount in Table 1 and the total FY 2026/2027 Levy amount in Table 2 is a rounding difference due to the County even penny requirement for each charged parcel.

Actuals will be based on the final County Secured Roll for Fiscal Year 2026/2027.

Differences are generally due to changes in County Land Use Classifications or Assessor’s Parcel Number changes.
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APPENDIX A – DISTRICT ASSESSMENT DIAGRAM
The Boundary Diagrams for the original districts have previously been submitted to the Clerk of the City in the format required under the 1972 Act and are made part of this Report by reference.

The parcel identification, lines and dimensions of each parcel within the District are those lines and dimensions shown on the Assessor’s Maps of Riverside County for the year in which this Report was prepared and is incorporated by reference and made part of this Report.

The attached Landscape Maintenance Map displays the landscape maintenance areas within the City.
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APPENDIX B – 2026/2027 COLLECTION ROLL
Parcel identification, for each lot or parcel within the District, shall be the parcel as shown on the Riverside County Assessor’s Parcel Maps and/or the Riverside County Secured Tax Roll for the year in which this Report is prepared.

Non-assessable lots or parcels may include government owned land, public utility owned property, land principally encumbered with public right-of-ways or easements and dedicated common areas. These parcels will not be assessed.

A listing of parcels within the District, along with the proposed assessment amounts, has been submitted to the City Clerk and, by reference, is made part of this Report.

Upon approval of the Report and confirmation of the assessments, the assessment information will be submitted to the County Auditor/Controller and included on the property tax roll in Fiscal Year 2026/2027. If the parcels or APNs within the District and referenced in this Report, are re-numbered, re-apportioned or changed by the County Assessor’s Office after approval of the Report, the new parcel or APNs with the appropriate assessment amount will be submitted to the County Auditor/Controller. If the parcel change made by the County includes a parcel split, parcel merger or tax status change, the assessment amount submitted on the new parcels or APNs will be based on the method of apportionment and levy amount approved in this Report by the City Council. 72 CLICK HERE to Return to Agenda
ATTACHMENT 4

ANNUAL ACTIVITIES

LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT
Adopt the following Resolutions:

1. Approve Preliminary Engineer’s Report (June 2, 2026).

2. Intention to levy annual assessment and notice of Public Meeting/Hearing (June 16, 2026).

3. Conduct a Public Meeting to allow testimony regarding the proposed assessments prior to Public Hearing (June 16, 2026).

4. Conduct a Public Hearing to allow written protests of the proposed assessment to be considered by the City Council prior to adoption of the final assessments (June 16, 2026).
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City of La Quinta
CITY COUNCIL MEETING: June 2, 2026

STAFF REPORT
AGENDA TITLE: ADOPT RESOLUTION TO APPROVE FISCAL YEAR 2026/27

INVESTMENT POLICY AND DELEGATE INVESTING AUTHORITY TO CITY

TREASURER

RECOMMENDATION
Adopt resolution to approve fiscal year 2026/27 Investment Policy and delegate investing authority to City Treasurer.

EXECUTIVE SUMMARY
• In accordance with State and local laws, the City annually reviews its Investment Policy and proposes any updates and revisions to ensure legal compliance and consistency with best practices. The Council may also delegate authority to the City Treasurer to manage the City’s funds pursuant to said policy. • On May 13, 2026, the Financial Advisory Commission (FAC) reviewed the proposed draft Investment Policy for fiscal year (FY) 2026/27, included as Exhibit A to the attached resolution, and recommended Council approval. • If the proposed resolution is adopted, the Investment Policy it is approving will go into effect July 1, 2026.

FISCAL IMPACT – None.

BACKGROUND
Pursuant to California Government Code § 53646(a)(2), a local agency may annually render to its legislative body (and any oversight committee), a statement of investment policy which shall be considered at a public meeting.

Pursuant to La Quinta Municipal Code (LQMC) § 2.70.040 the FAC shall review the Investment Policy at least annually. On May 13, 2026, the FAC reviewed the proposed draft Investment Policy for FY 2026/27, and recommended Council approval.

Pursuant to LQMC § 3.08.010 and California Government Code § 53607, the Council may delegate the authority to invest or reinvest funds, or to sell or exchange securities so purchased, to the City Treasurer annually.

CONSENT CALENDAR ITEM NO. 6
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The City has been awarded the Investment Policy Certificate of Excellence from the Association of Public Treasurers of the United States and Canada (APT US&C), and the policy has been certified by the California Municipal Treasurers Association (CMTA). With these recognitions, the City finds the policy is sound and generally not in need of major revisions at this time.

In addition, there were no new regulatory changes in FY 2025/26 that impacted the City’s policy. Therefore, staff recommends only minor grammatical or formatting changes to the policy to enhance clarity or correct typographical errors. The proposed updates remain within the legal bounds of State law, protect the safety and liquidity of the City’s investment portfolio, and allow staff to maximize yield when prudent.

ALTERNATIVES
The policy has been recognized by APT US&C and CMTA as being comprehensive as written, and therefore no alternatives are recommended at this time.

Prepared by: Rosemary Hallick, Principal Management Analyst Approved by: Claudia Martinez, Finance Director
Attachment: 1. Resolution No. 2026-XXX

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RESOLUTION NO. 2026 – XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF LA QUINTA, CALIFORNIA, APPROVING AND
ADOPTING FISCAL YEAR 2026/2027 INVESTMENT

POLICY AND DELEGATING INVESTING AUTHORITY TO

CITY TREASURER
WHEREAS, the general purpose of the Investment Policy is to provide the rules and standards users must follow in investing funds of the City of La Quinta; and WHEREAS, the primary objectives, in order of priority, of the City of La Quinta’s investment activity shall be:

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

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

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

The investment portfolio shall be designed with the objective of attaining a market rate of return or yield throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs; and WHEREAS, the authority to invest moneys of the City of La Quinta, sell or exchange securities, and deposit them for safekeeping, and management responsibility for the investment program is delegated to the city treasurer pursuant to La Quinta Municipal Code § 3.08.010 and California Government Code § 53607, the city treasurer shall establish and implement written procedures for the operation of the City’s investment program consistent with the Investment Policy for each fiscal year; and WHEREAS, the city treasurer is authorized to purchase, at their original sale or after they have been issued, securities which are permissible investments under the City Council adopted City Investment Policy; and
WHEREAS, the Investment Policy will be adopted before the end of June of each year and amended as considered necessary.

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

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

ATTACHMENT 1
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Resolution No. 2026-XXX
Investment Policy for Fiscal Year 2026/2027
Adopted: June 2, 2026

Page 2 of 3 ends

SECTION 2. The City Council hereby adopts the Fiscal Year 2026/2027 Investment Policy attached hereto as “Exhibit A” and incorporated herewith by this reference.

SECTION 3. The City Council hereby delegates authority to the city treasurer to manage the City’s funds pursuant to said policy.

SECTION 4. Severability – if any provisions of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable.

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

SECTION 5. This Resolution shall become effective upon adoption. The Investment Policy adopted by this Resolution shall go into effect July 1, 2026.

PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council, held on this 2nd day of June 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
________________________
LINDA EVANS, Mayor
City of La Quinta, California
ATTEST:
_________________________
MONIKA RADEVA, City Clerk
City of La Quinta, California
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Resolution No. 2026-XXX
Investment Policy for Fiscal Year 2026/2027
Adopted: June 2, 2026

Page 3 of 3 ends

APPROVED AS TO FORM:
___________________________
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
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RESOLUTION NO. 2026-XXX

EXHIBIT A
Adopted: June 2,, 2026
Fiscal Year 2026/2027
Table of Contents
Section Topic Page
Executive Summary 1
I General Purpose 2
II Investment Policy 2
III Scope 2
IV Objectives 3
V Maximum Maturities 5
VI Prudence 5
VII Authority 5
VIII Ethics and Conflicts of Interest 6
IX Authorized Financial Dealers and Institutions 6
X Permissible Deposits and Investments 7
XI Investment Pools 10
XII Payment and Custody 10
XIII Interest Earning Distribution Policy 11
XIV Internal Control and Independent Auditors 11
XV Reporting Standards 12
XVI Review of Investment Portfolio 13
XVII Financial Advisory Commission – City of La Quinta 13 XVIII Investment Policy Adoption 13
Appendices Page
A Municipal Code Ordinance 2.70 – FinancialAdvisory Commission 14 B Municipal Code Ordinance 3.08 – Investment of Moneys and Funds 16 C Segregation of Major Investment Responsibilities 18
D Listing of Approved Financial Institutions 19
E Investment Management Process and Risk 20
F Glossary 22
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CITY OF LA QUINTA
Investment Policy Fiscal
Year 2026/2027

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

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

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

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

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

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

The Investment Policy shall be adopted by resolution of the La Quinta City Council on an annual basis, before the end of each fiscal year (June).
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City of La Quinta
Statement of Investment Policy July 1, 2026 through June 30, 2027 Adopted by the City Council on June 2, 2026
I. G ENERAL PURPOSE
The general purpose of this document is to provide the rules and standards that must be followed in administering the City of La Quinta's deposits andinvestments.

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

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

Financial assets and investment activity not subject to this policy The City's Investment Policy does not apply to the following:
 Cash and Investments raised from Conduit Debt Financing;  Funds held in trust in the City's name in pension or other post-retirementbenefit programs;
 Cash and Investments held in lieu of retention by banks or other financial institutionsfor construction projects;
 Short or long-term loans made to other entities by the City, Authorities or Agency;  Short term (Due to/from) or long term (Advances from/to) obligations made either between the City and its funds or between the City, Authorities, or Agency;and  Investment of bond proceeds. The City's Investment Policy shall not govern bond proceeds and bond reserve fund investments. California Code Section 82 CLICK HERE to Return to Agenda

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

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

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

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

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

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

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

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

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

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

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

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

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

Treasury Note, and the yield for the State Treasurer's Local Agency Investment Fund (LAIF). The Treasurer may use these or any other published rates of return that the Treasurer deems appropriate for comparison to the return on the City's investment portfolio. 84 CLICK HERE to Return to Agenda

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

The City shall follow Title 5 of the California Government Code §53601 (the “State Code”) regarding maximum maturities, in that “no investment shall be made in any security…that at the time of the investment has a term remaining to maturity in excess of five years, unless the legislative body has granted express authority to make that investment either specifically or as part of an investment program approved by the legislative body no less that three months prior to the investments”. In order to accommodate the occasional occurrence of settlement dates slightly exceeding five (5) years to final maturity, the City may invest in any security that has a maturity of five (5) years plus up to thirty (30) days from settlement date. In no case shall a forward settlement date exceed 45 days from the time of investment.

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

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

VII. A UTHORITY
Authority to manage the City's investment portfolio is derived from Chapter 3.08 of the City's Municipal Code. Management responsibility for the investment program is delegated to the City Treasurer for a period of one year pursuant to State Code §53607 and the City Council's annual approval.

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

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

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

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

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

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

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

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

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

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

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

X. P ERMISSIBLE DEPOSITS AND INVESTMENTS
It is the City’s policy to follow Title 5 of the State Code in regard to allowable securities, and to be sufficiently diversified with regard to security type and issuer. Permissible deposits and investments, as allowed by Chapter 4, Part 1, Division 2, Title 5 (hereinafter cited by §), include, but are not limited to, the following list, (which in some instances may be more restrictive than State Code). The State Code can be directly referenced at:
https://leginfo.legislature.ca.gov/
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C hecking, Savings, and Sweep Accounts - The City will only maintain checking and savings accounts with state or national banks, savings associations, federal associations, and/or credit unions in accordance with §53635.2. The City may also purchase non-negotiable certificates of deposits, provided that either the combined balances at any banking institution do not exceed FDIC limits or funds are collateralized as noted below. • Collateralization: The amount of the City's deposits or investments not insured by the FDIC shall be collateralized by securities in accordance with §53652. The Treasurer may invest in an interest-bearing active deposit account as approved in §53632. The deposit account must be collateralized with securities that are in accordance with §53632.5. In addition, the market value of the collateralized securities must be maintained in accordance with §53652 and be held by a custodian in accordance with the requirements of §53656. The proportion of the City's share of the deposit account shall be determined in accordance with §53658.

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

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

Treasury issues of 100% of theportfolio.

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

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

The City's Investment Policy allows investment only in securities of GNMA, FNMA, FHLMC, FHLB, and FFCB. For Fiscal Year 2026/27, the maximum face amount per issuer is $30 million and the maximum face amount per purchase is $10million.

P rime Commercial Paper – As authorized in §53601(h), a portion of the City's portfolio may be invested in commercial paper of the highest rating as provided for by a nationally recognized statistical rating organization (NRSRO) such as Moody’s, Fitch, or Standard & Poor’s (S&P). There are a number of other qualifications regarding investments in commercial paper based on the financial strength and size of the corporation and the size of the investment. The City limits on prime commercial paper are as defined in the State Code. 88 CLICK HERE to Return to Agenda

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

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

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

Professionally Managed Account(s) – The City Treasurer may place the portfolio with a professional portfolio management/investment management firm (firm). The firm will be approved by the City Council based upon the City Treasurer's recommendation pursuant to completion of a public request for proposal (RFP). The firm shall have:
• An established professional reputation for asset or investment management; • Knowledge and working familiarity with State and Federal laws governing and restricting the investment of public funds;
• Substantial experience providing investment management services to local public agencies whose investment policies and portfolio size are similar to those of theCity; • Professional liability (errors and omissions) insurance and fidelity bonding in such amounts as are required by the City; and
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• Registration with the Securities and Exchange Commission under the Investment Advisers Act of 1940
Before engagement by the City and except as may be specifically waived or revised, the firm shall commit to adhere to the provisions of the City's Investment Policy with the following exceptions:
• The firm may be granted the discretion to purchase and sell investment securitiesin accordance with this Investment Policy;
• The firm is not required to adhere to a buy-and-hold policy; and • The firm does not need City Manager or City Treasurer approval to makepermissible investments.
ns Municipal Bonds – As authorized in §53601(a), (c), (d)and (e), the City may invest in bonds issued by the local agency, the State of California, the other 49 states, and other local agencies within this state,
The municipal obligations must be rated in the long-term rating category of A or better by an NRSRO.

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

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

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

XII. PAYMENT AND CUSTODY
The City shall engage qualified third-party custodians to act in a fiduciary capacity to maintain appropriate evidence of the City's ownership of securities and other eligible investments. Such custodians shall disburse funds received from the City for a purchase to the broker, dealer or seller only after receiving evidence that the City has legal, record ownership of the securities. 90 CLICK HERE to Return to Agenda

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

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

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

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

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

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

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

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

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

The system of internal control developed by the City shall be reviewed annually by the independent auditor in connection with the annual audit of the City's Financial Statements. The independent auditor's letter on internal control over financial reporting and compliance as it pertains to cash and investments, if any, shall be directed to the City Manager who will direct the City Treasurer to provide a written response to the independent auditor's letter. The auditor's letter, as it pertains to cash and investment activities, and the City Treasurer's response shall be provided to the City's Financial Advisory Commission for their consideration. Following the completion of each annual audit, the independent auditor shall meet with the Financial Advisory Commission and discuss the auditing procedures performed and the review of internal control over cash and investment activities. "
XV. R EPORTING STANDARDS
The City Treasurer shall submit a quarterly Treasurer’s Report to the City Council and the Financial Advisory Commission that includes all cash and investments under the authority of the Treasurer. In addition, the City Treasurer or designee shall ensure all investment transactions are reported on at least a monthly basis as they occur throughout the quarter. The Treasurer's Report shall summarize cash and investment activity and changes in balances and include the following:
• A certification by the City Treasurer;
• A listing of purchases and sales/maturities of investments; 92 CLICK HERE to Return to Agenda

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

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

Due to market conditions, some securities may no longer comply subsequent to the date of purchase, therefore a formal quarterly review of the portfolio will be conducted to identify any securities which may have fallen out of compliance. Additionally, staff will monitor monthly statements, financial news, market updates, custodial bank corporate actions notices and/or any other information available that may communicate current ratings or credit quality of investments.

Any major incidences of noncompliance identified during such review will be reported to the Financial Advisory Commission for confirmation of staff course ofaction.

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

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

XVIII. I NVESTMENT POLICY ADOPTION
The City's Investment Policy will be reviewed annually by the City's Financial Advisory Commission and the City Treasurer. The Financial Advisory Commission will forward the Investment Policy with any revisions to the City Manager and City Attorney for their review and comment. A joint meeting will be held with the Financial Advisory Commission, City Manager, City Attorney, and City Treasurer to review the Investment Policy and any comments prior to submission to the City Council for their consideration. The Investment Policy shall be adoptedby resolution of the City Council annually before the end of June of each year. 93 CLICK HERE to Return to Agenda

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City of La Quinta Municipal Code Chapter 2.70

FINANCIAL ADVISORY COMMISSION

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

2.70.020 Number of members.

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

2.70.30 Qualifications of members.

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

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

2.70.40 Powers and duties.

A. The principal functions of the FAC are:

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

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

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

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

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

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

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

2.70.050 References to the Investment Advisory Board.

If any other chapter(s) or section(s) in this code refers to the Investment Advisory Board, that chapter(s) or section(s) shall be deemed to refer to the Financial Advisory Commission established by the ordinance amending chapter 2.70 of this code. 95 CLICK HERE to Return to Agenda

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City of La Quinta Municipal Code Chapter 3.08

INVESTMENT OF MONEYS AND FUNDS

3.08.010 Investment of city moneys and deposit of securities.

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

3.08.020 Authorized investments.

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

3.08.030 Sales of Securities.

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

3.08.040 City bonds.

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

3.08.050 Reports.

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

3.08.060 Deposits of securities.

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

APPENDIX B
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until they are withdrawn therefrom by the city treasurer. (Ord. 529 § 1, 2015; Ord. 2 § 1, 1982)

3.08.070 Trust fund administration.

Any departmental trust fund established by the city council pursuant to Section 36523 of the Government Code shall be administered by the city treasurer in accordance with Section 36523 and 36524 of the Government Code and any other applicable provisions of law. (Ord. 2 § 1, 1982) 97 CLICK HERE to Return to Agenda

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SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES
Function Responsible Parties
Develop and recommend modifications to the City's
formal Investment Policy
City Treasurer, Principal Management Analyst, and
Financial Advisory Commission
Review City's Investment Policy and recommend
City Council action
City Manager and City Attorney
Adopt formal Investment Policy City Council
Implement formal Investment Policy City Treasurer
Review financial institutions and select investments City Treasurer or Principal Management Analyst Acknowledge investment selections City Manager or his/her designee Execute investment transactions City Manager, City Treasurer, or Principal Management Analyst
Confirm wires Finance Manager, Senior Accountant, or
Administrative Technician
Record investment transactions in City's accounting
records
Finance Manager or Senior Accountant
Investment certification- match broker confirmation
to City's investment records
City Treasurer or Principal Management Analyst
Reconcile investment records to accounting
records and bank statements
Principal Management Analyst
Reconcile investment records to treasurer's report
of investments
City Treasurer, Finance Manager or Principal
Management Analyst

APPENDIX C
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Security of investments at City Finance Manager or Administrative Technician Security of investments outside of City Third Party Custodian Review internal control procedures External Auditor
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Listing of Approved Financial Institutions
Banking Services
Custodian Services
Deferred Compensation
Broker/Dealer Services
Government/Joint Powers Authority Pools
Trustee Services
Other Post Employment Benefits (OPEB) Trust
Pension Trust - Administration
-Sunwest Bank, Irvine, CA (Banking Services - Dune Palms Mobile Estates)
-BMO Commercial Bank
-Stifel
-U.S. Bank Trust Company, N.A.
-International City/County Management Association Retirement Corporation (ICMA-RC) dba MissionSquare Retirement
-Stifel, Nicholaus, & Company, Inc.
-Higgins Capital Management, Inc.
-Great Pacific Securities
-State of California Local Agency Investment Fund (LAIF) -California Asset Management Program (CAMP)
-County of Riverside Pooled Investment Fund(1)
-U.S. Bank Trust Company, NA(2)
-California Employers' Retirement Benefits Trust
(CERBT)/CalPERS
-Public Agency Retirement Services (PARS)
(1)The County of Riverside Treasurer maintains one Pooled Investment Fund for all local jurisdictions having funds on deposit in the County Treasury. The City’s fire funds, which are property taxes collected to fund fire services in the City, are kept in reserve with the County to be used as expenses are incurred. (2)U.S.Bankis thefiscalagentforthefollowingbonds: 2016and2021SuccessorAgency to theLaQuintaRedevelopmentAgency (RDA)Bonds.AsofMarch2024,U.S.BankisthecustodianfortheCity'sinvestmentportfolio.U.S.Bankisalsothetrusteeandasset custodian for the PARS pension trust and the CAMP pool..

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

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

Purchasing certain allowable securities with a maturity of greater than five years requires approval of the governing board (see Government Code Section 53601). Part of that approval process involves assessing and disclosing the risk and possible volatility of longer-term investments Another element of risk is liquidity risk. Instruments with call features or special structures, or those issued by little known companies, are examples of "story bonds" and are often thinly traded.

Their uniqueness often makes finding prospective buyers in a secondary market more difficult and, consequently, the securities' marketability and price are discounted. However, under certain market conditions, gains are also possible with these types of securities.

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

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

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

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

Source: Chapter II. Fund Management from the Local Agency Investment Guidelines Issued by California Debt and Investment Advisory Commission
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GLOSSARY
The purpose of this glossary is to provide the reader of the City of La Quinta investment policies with a better understanding of financial terms as used in municipal investing or the financial sector in general. The glossary was adopted from the California Municipal Treasurers Association, therefore all terms appearing in this glossary may not be used in the policy.

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

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

A SKED: The price at which securities are offered.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

G OVERNMENT SPONSORED ENTERPRISES (GSEs): Privately held corporations with public purposes created by the U.S. Congress to reduce the cost of capital for certain borrowing sectors of the economy. Securities issues by GSEs carry the implicit backing of the U.S. Government, but they are not direct obligations of the U.S. Government. Typically referred to as ‘Agency Bonds’ or ‘Agencies’.

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

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

FHLBs (Federal Home Loan Bank) - Issued by the Federal Home Loan Bank System to help finance the housing industry. The notes and bonds provide liquidity and home mortgage credit to savings and loan associations, mutual savings banks, cooperative banks, insurance companies, and mortgage-lending institutions. They are issued irregularly for various maturities. The minimum denomination is $5,000. The notes are issued with maturities of less than one year and interest is paid at maturity.

FFCBs (Federal Farm Credit Bank) – Debt instruments used to finance the short and intermediate term needs of farmers and the national agricultural industry. They are issued monthly with threeand six-month maturities. The FFCB issues larger issues (one to ten year) on a periodic basis.

These issues are highly liquid.
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FHLMCs or Freddie Mac (Federal Home Loan Mortgage Corporation) - a government sponsored entity established in 1970 to provide a secondary market for conventional home mortgages.

Mortgages are purchased solely from the Federal Home Loan Bank System member lending institutions whose deposits are insured by agencies of the United States Government. They are issued for various maturities and in minimum denominations of $10,000. Principal and interest is paid monthly.

FAMCs or Farmer Mac (Federal Agricultural Mortgage Corporation) - FAMC increases the availability and affordability of credit for the benefit of American agriculture and rural communities.

They are the nation’s premier secondary market for agricultural credit, providing financial solutions to a broad spectrum of the agricultural community, including agricultural lenders, agribusinesses, and other institutions that can benefit from access to flexible, low-cost financing and risk management tools. FAMC is regulated by the Farm Credit Administration.

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

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

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

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

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

G OVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae):

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

LAIF (Local Agency Investment Fund): - A special fund in the State Treasury which local agencies may use to deposit funds for investment. There is no minimum investment period, the minimum transaction is $5,000 and the City follows the state guidance for maximum total balance.

The City is restricted to a maximum of ten transactions per month. It offers highliquidity because deposits can be converted to cash in 24 hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share basis determined by the amounts deposited and the length of time
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they are deposited. Interest is paid quarterly. The State retains an amount for reasonable costs of making the investments, not to exceed one-half of one percent of theearnings.

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

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

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

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

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

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

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

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

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

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

PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) registered securities broker-dealers, banks and a few unregulated firms. 106 CLICK HERE to Return to Agenda

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Q UALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits.

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

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

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

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

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

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

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

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

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

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

TREASURY BILLS: A non-interest- bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months or one year. 107 CLICK HERE to Return to Agenda

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T REASURY BONDS: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10years.

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

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

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

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

Y IELD: The rate of annual return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. 108 CLICK HERE to Return to Agenda
City of La Quinta
CITY COUNCIL MEETING: June 2, 2026

STAFF REPORT
AGENDA TITLE: APPROVE COOPERATIVE AGREEMENT WITH THE CITY OF

INDIAN WELLS FOR DESIGN AND REPAIR OF THE WASHINGTON STREET BRIDGE,

AS PART OF THE BRIDGE PREVENTATIVE MAINTENANCE PROGRAM, PROJECT NO. 2023-33

RECOMMENDATION
Approve a Cooperative Agreement with the City of Indian Wells for the design and repair of the Washington Street Bridge (Bridge No. 56C0266), as part of the Bridge Preventative Maintenance Program, Project No. 2023-33; and authorize the City Manager to execute the agreement.

EXECUTIVE SUMMARY
 The proposed project consists of the design and construction of preventative maintenance improvements to the Washington Street Bridge which is located along the jurisdictional boundary between the City of La Quinta and the City of Indian Wells (Bridge No. 56C0266) (Attachment 1).
 The project will be delivered through the Caltrans Bridge Preventive Maintenance Program (BPMP) Project No. 2023-33 (Project) and includes preparation of plans, specifications, and estimates (PS&E), bidding, and construction.  Proposed improvements include deck spall repairs and deck sealing, joint seal replacement, abutment backwall repairs, slope protection improvements, bent cap repairs, and bearing pad replacements.
 The Cooperative Agreement (Agreement) establishes each agency’s roles and responsibilities related to project delivery, cost sharing, reimbursement, and ongoing maintenance obligations.
 Project costs will be split evenly, with the City of La Quinta serving as the lead agency for project delivery, including environmental clearance, design, bidding, construction management, and project closeout.

FISCAL IMPACT
The Fiscal Year (FY) 2024/25 CIP includes $165,000 in the General Fund and the FY 2025/26 CIP includes $560,800 in Federal funds to complete the plans, specifications, and engineer’s estimate. There are currently adequate funds available to proceed with CONSENT CALENDAR ITEM NO. 7
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design. Staff will return to the Council for additional funding authorization, if necessary, upon completion of the final design and receipt of construction bids.

Design Phase Construction /CE
/Contingency (Estimate)
City of La Quinta share $ 30,672 $ 106,440
City of Indian Wells share $ 30,672 $ 106,440
Federal share $ 245,378 $ 837,120
Total Phase Budgets: $ 306,722 $ 1,050,000
Federal funds are anticipated to cover a majority of the total project costs, with the remaining local share split equally between the two agencies.

BACKGROUND/ANALYSIS
The proposed project will address identified maintenance needs in order to preserve the structural integrity of the bridge, extend its service life, and ensure continued public safety.

Preventive maintenance improvements are intended to minimize long-term repair costs and reduce the likelihood of more extensive rehabilitation in the future.

The City of Indian Wells will participate in project funding and coordination, including review of project design documents within its jurisdiction.

Project costs will be shared between the agencies in accordance with the Agreement, with each City responsible for fifty (50) percent of the local share of costs.

Contingent upon approval of the Agreement on June 2, 2026, staff will proceed with final design, environmental clearance, and subsequent construction bidding.

The proposed project schedule is as follows:

Council Considers Cooperative Agreement June 2, 2026
Execute Cooperative Agreement June 2026
Complete Final Design/Environmental/Permitting Spring 2028 Bidding/Construction Summer 28-Summer 29
Accept Improvements Spring 2029

ALTERNATIVES
Staff does not recommend an alternative.

Prepared by: Carley Escarrega, Administrative Technician Approved by: Bryan McKinney, P.E., Public Works Director/City Engineer Attachments: 1. Vicinity Map

2. Cooperative Agreement
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*IMPORTANT* Maps and data are to be used for reference purposes only. Map features are approximate, and are not necessarily accurate to surveying or engineering standards. The County of Riverside makes no warranty or guarantee as to the content (the source is often third party), accuracy, timeliness, or completeness of any of the data provided, and assumes no legal responsibility for the information contained on this map. Any use of this product with respect to accuracy and precision shall be the sole responsibility of the user. © Riverside County GIS
Legend
2023-33 BPMP
Notes
REPORT PRINTED ON...5/21/2026 3:46:24 PM

VICINITY MAP
0 1, 3,009
505
Feet
City Boundaries
City Areas
World_Street_Map
ATTACHMENT 1
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COOPERATIVE AGREEMENT

FOR DESIGN AND REPAIR OF THE WASHINGTON STREET BRIDGE

BRIDGE PREVENTATIVE MAINTENANCE PROGRAM (BPMP)
This COOPERATIVE AGREEMENT FOR DESIGN AND REPAIR OF THE WASHINGTON STREET BRIDGE (hereinafter “Agreement”) is entered into this ______ day of _______________, 2026 between the City of La Quinta, a municipal corporation and charter city, referred to herein as “La Quinta,” and the City of Indian Wells, a municipal corporation and charter city, referred to herein as “Indian Wells”. La Quinta and Indian Wells are collectively referred to in this Agreement as “Contracting Parties” or “Parties.”

1.0 SCOPE OF AGREEMENT

1.1 Scope. In compliance with all terms and conditions of this Agreement, Contracting Parties hereby agree to engineer, construct, and finance the preventative maintenance improvements for the Washington Street Bridge (“Project”) as part of the Bridge Preventative Maintenance Program (BPMP), as depicted in Exhibit “A” attached hereto and incorporated herein by reference. La Quinta, as lead agency, has retained Dokken Engineering as the designer for the project. The total cost for the Project is specified in the Project Estimate in Exhibit “B” attached hereto and incorporated herein by reference (total cost for the Project is referred to herein as the “Project Cost” and each estimated item, collectively, are referred to herein as the “Construction Project Costs” and individually as a “Construction Project Cost”). The construction of the Project will be publicly bid to construction contractors and subcontractors (collectively referred to herein as “Contractors”), and thus subject to all California laws governing publicly bid projects.

Contracting Parties hereby agree that La Quinta will be responsible for contract administration and completion of all Project design, bidding, and construction components. Indian Wells shall reimburse La Quinta its share of the Project Cost as defined in Exhibit ”B”, in accordance with the terms of this Agreement.

1.2 Compliance with Law. The Project contemplated herein shall be paid for and designed and constructed in accordance with all ordinances, resolutions, statutes, rules, regulations, and laws of La Quinta, Indian Wells, and any Federal, State, or other local governmental agency of competent jurisdiction.

1.3 Wage and Hour Compliance. Contracting Parties shall require all Contractors to comply with applicable Federal, State, and local wage and hour laws for the Project.

1.4 Licenses, Permits, Fees and Assessments. Contracting Parties shall require Contractors to obtain such licenses, permits, and approvals as may be required by law for the performance of the Project, and Contractors shall be responsible 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 Project.

1.5 Familiarity with Project. Any Contractor shall warrant that they (a) have thoroughly investigated and considered the Project to be performed, (b) have investigated the site where the Project is to be constructed and fully acquainted with the conditions there existing, (c) have carefully considered how the Project should be completed, and (d) fully understand the facilities, difficulties, and restrictions attending completion of the Project.

1.6 Additional Services. In accordance with the terms and conditions of this Agreement, Contracting Parties shall fund and construct the Project as depicted in Exhibit “A” herein and the Project Cost in Exhibit “B” herein. If any additional work is required in addition to the work specified in Exhibit “B” (“Additional Work”), Contracting Parties shall not authorize any ATTACHMENT 2
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Contractor to perform such Additional Work until receiving prior written authorization from both Contracting Parties.

All contract change orders which individually or cumulatively exceed 15% of the bid price as described in Exhibit “B” for the relevant contract bid items (i.e., specific Construction Project Cost) shall be submitted by La Quinta to Indian Wells for review and approval prior to authorization by La Quinta to Contractor.

1.7 Responsibility for Operations and Maintenance Following Project Completion. Upon completion of the Project, the Contracting Parties shall assume repair and maintenance responsibilities as set forth in the existing maintenance agreement.

2.0 PAYMENT OF COSTS

2.1 Contract Sum. For the Project contemplated by this Agreement, Contracting Parties shall pay a combined total price that is the Project Cost, as described in Exhibit “B.” The Construction Project Costs set forth in Exhibit “B” are preliminary estimates and may be adjusted based on actual construction costs. Should actual Construction Project Costs exceed the estimated amount in Exhibit “B”, La Quinta shall submit an amendment to Indian Wells for Indian Well’s review and approval, which shall not be unreasonably withheld or delayed. Following approval of such amendment, each Contracting Party shall be responsible for fifty percent (50%) of the local share of the additional Construction Project Cost(s), unless otherwise mutually agreed in writing by the Contracting Parties.

La Quinta shall be responsible for the initial payment of the Construction Project Costs.

Indian Wells shall deposit Fifteen Thousand Dollars ($15,000) upon execution of this Agreement, and Indian Wells shall pay the remainder of its share of the Construction Project Costs upon invoice from La Quinta, or as otherwise agreed in writing by the Contracting Parties. Indian Wells’ obligation to pay the remainder of its share of the Construction Project Costs until the total Project Cost is paid off.

As set forth above in this Agreement, any Additional Services required shall be approved in advance and paid for based on the Contracting Party’s jurisdictional requirement, or as mutually agreed upon in writing, after obtaining written authorization for such Additional Services from both Contracting Parties.

3.0 COORDINATION OF WORK

3.1 Representative of Contracting Party. The following principals of each Contracting Party (the “Representatives”) are hereby designated as being the representatives of each Contracting Party authorized to act in its behalf with respect to this Agreement and the Project covered by this Agreement, and to make all decisions in connection therewith:
a. Bryan McKinney, P.E., City of La Quinta
E-mail: [email protected]
b. Dina Purvis, City of Indian Wells
E-mail: [email protected]
The foregoing Representatives shall be responsible during the term of this Agreement for directing all activities of their respective Contracting Party. For purposes of this Agreement, the foregoing Representatives may not be changed without the approval of all Contracting Parties, which approval shall not be unreasonably withheld or denied.

3.2 Contracting Party Responsibilities. In furtherance of this Agreement, and as the lead agency for the Project, La Quinta hereby agrees to complete the following:
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(1) To prepare an environmental document and to obtain necessary environmental clearances in accordance with the California Environmental Quality Act (CEQA) and the National Environmental Policy Act (NEPA).
(2) To prepare Plans, Specifications and Estimates (“PS&E”) for the Project. PS&E shall be prepared in accordance with the standards and practices of La Quinta and Indian Wells based on respective jurisdictional boundaries and all applicable laws and regulations therein (or as otherwise mutually agreed upon by the respective Contracting Party). Upon completion of the draft PS&E, La Quinta shall deliver written notice thereof to Indian Wells requesting whether Indian Wells would like to review the draft PS&E prior to finalization. If Indian Wells requests to review the draft PS&E, Indian Wells shall review to confirm the PS&E conforms with its jurisdictions’ applicable laws and regulations therein, within thirty (30) days of receipt of the draft PS&E. If Indian Wells does not respond to La Quinta within said 30-day period, Indian Wells shall be deemed to have confirmed the draft PS&E conforms to its jurisdictions’ applicable laws and regulations therein. If Indian Wells identifies any inconsistencies in the draft PS&E with its jurisdictions’ applicable laws and regulations therein, Indian Wells shall deliver, within said 30- day period, to La Quinta specific instructions and details relating to the corrections necessary or proper to the draft PS&E to have the final PS&E conform its jurisdictions’ applicable laws and regulations. La Quinta shall integrate any corrections from Indian Wells prior to issuance of the final PS&E, unless the La Quinta City Engineer finds and determines, in their reasonable discretion, that the correction is in direct conflict and irreconcilable with La Quinta’s obligations under this Agreement as lead agency with oversight of the Project. (3) To prepare final design documents and drawings for the Project by or under the direction of a civil engineer registered and licensed in the State of California. Such specifications, plans and reports shall bear the professional seal, certificate and signature of the professional engineer responsible for their preparation. (4) To apply for a no fee encroachment permit for work within Indian Wells street rights-of-way, in accordance with Indian Wells standard permit procedures; provided, however, that Indian Wells agrees to cooperate in the issuance of any other required permits necessary for the Project.
(5) To obtain temporary encroachment permits from the Coachella Valley Water District (“CVWD”).
(6) To obtain temporary construction permits from property owners, as needed. (7) To identify and locate all utility facilities within the project area as part of the project design responsibility. If any existing public and/or private utility facilities conflict with the proposed improvements, La Quinta shall make all necessary arrangements with the owners of each facility for their protection, relocation, or removal as appropriate. All utility facilities shall be identified on the project plans and specifications, and conflicting utilities shall be denoted. La Quinta shall require the utility owner and/or its contractors performing the relocation work to obtain the appropriate encroachment permit for the Jurisdiction in which work is to occur. La Quinta and Indian Wells shall coordinate and cooperate in the effort to establish prior rights related to utility encroachment within each Jurisdiction’s right-of-way. ln the case that any utility companies are determined to have prior rights, the cost of relocating utilities shall be borne by the jurisdiction of the respective Contracting Party in which the conflicting utility is located.
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(8) To advertise for and award the construction contract for the Project pursuant to applicable statutes, regulations, and laws.
(9) To furnish a representative to perform the function of construction manager during construction of the Project.
(10) To furnish qualified support personnel to perform any required construction survey, construction testing, and construction inspection to assure that the construction is performed in accordance with the approved construction documents.
(11) To administer any public works work directives and subsequent contract change orders for the design of the Project.
(12) To retain or cause to be retained records and accounts relating to the design and construction of the Project, for audit by Indian Wells, for a period of three (3) years from the date of final payment to Dokken Engineering and future consultants and contractors.
(13) Upon completion of the Project, to furnish Indian Wells a complete set of full-sized reproducible “Drawing of Record” plans as a digital PDF as requested by Indian Wells.
(14) Within sixty (60) days of completion of the Project, provide a final accounting of the Project and invoice (or refund) Indian Wells for the Contracting Agencies’ portion of the Project Cost.
(15) All improvements shall be designed to be constructed within existing public rights of way within the respective Contracting Parties’ jurisdictional boundaries.

Indian Wells hereby agrees to issue, at no cost to La Quinta unless reimbursable by outside funding sources, upon application by La Quinta or any employee, agent, or contractor of La Quinta, the necessary encroachment permits for required work within Indian Wells’ street rightof-way associated with the Project.

In the construction phase of the Project, La Quinta will provide or contract for a representative to perform the function of “Resident Engineer,” and Indian Wells hereby reserves the right to provide a representative to assist the Resident Engineer. Representatives from Indian Wells may consult with La Quinta’s Resident Engineer; however, La Quinta’s Resident Engineer’s decision shall be considered final.

3.3 Independent Contractor. The Parties hereby acknowledge that neither Contracting Parties nor any employees of Contracting Parties shall have any control over the manner, mode, or means by which a Contractor and a Contractor’s agents and employees perform the services contemplated in the Project Cost for the Project, except as otherwise set forth herein. La Qunita shall ensure that all contracts with the contractors for the Project shall state that:
(1) the Contracting Parties shall not be liable for compensation or indemnification to any Contractor for injury or sickness arising out of performing the Services for the Project hereunder.
(2) Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, any Contractor and any of its employees, agents, and subcontractors providing services for the Project shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by Contracting Parties, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of Contracting Parties and entitlement to any contribution to be 115 CLICK HERE to Return to Agenda
paid by Contracting Party for employer contributions and/or employee contributions for PERS benefits.

4.0 INDEMNIFICATION.

4.1 Indemnification by La Quinta. La Quinta agrees to indemnify, defend and hold harmless Indian Wells, and its respective officials, officers, agents and employees from and against liability, expenses (including reasonable attorneys’ fees), losses, suits and actions, and for damages relating to suits and actions (including bodily injury, death, personal injury, or property damage) arising from La Quinta’s performance or failure to perform under this Agreement, except to the extent such liability, expenses, losses, and damages are caused by the negligence or willful misconduct of Indian Wells, in its respective comparative amounts as established by a court of competent jurisdiction or otherwise stipulated by the Contracting Parties.

4.2 Indemnification by Indian Wells. Indian Wells agrees to indemnify, defend and hold harmless La Quinta, and its respective officials, officers, agents and employees from and against liability, expenses (including reasonable attorneys’ fees), losses, suits and actions, and for damages relating to suits and actions (including bodily injury, death, personal injury, or property damage) arising from Indian Wells’ performance or failure to perform under this Agreement, except to the extent such liability, expenses, losses, and damages are caused by the negligence or willful misconduct of La Quinta, in its respective comparative amounts as established by a court of competent jurisdiction or otherwise stipulated by the Contracting Parties.

4. 3 Indemnification from Contractor. Contracting Parties shall require each and every Contractor performing work for the Project to indemnify, defend (with counsel of the respective Contracting Party’s choosing), and hold harmless, to the maximum extent allowable by law, the Contracting Parties for that work performed on the Project by the Contractor.

5.0 RECORDS AND REPORTS.

5.1 Records. Contracting Parties shall 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 Project (“Books and Records”) for three (3) years following completion of the Project. Any and all such Books and Records shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contracting Parties shall have full and free access to such Books and Records of any other Contracting Party at all times during normal business hours, including the right to inspect, copy, audit, and make records and transcripts from such Books and Records.

5.2 Ownership of Documents. Upon the completion of the Project, 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 for the Project (the “Documents and Materials”) shall be the joint property of both Contracting Parties, as long as Indian Wells pays for its share of the Project Cost as provided in this Agreement. Subject to completion of the Project and full payment by Indian Wells of its share of the Project Cost, either Contracting Party shall be entitled to use or reuse such completed Documents and Materials for other projects and/or use uncompleted documents for any purpose.

6.0 ENFORCEMENT OF AGREEMENT.
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6.1 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, without regard to conflicts of law principles. 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 Parties covenant and agree to submit to the personal jurisdiction of such court in the event of such action.

6.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the other Contracting 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 as soon thereafter as practicably may be accomplished, provided that if the default is an immediate danger to the health, safety, or general welfare, the injured party may take such immediate action as deemed 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.

6.3 Waiver. No delay or omission in the exercise of any right or remedy of a nondefaulting party on any default shall impair such right or remedy or be construed as a waiver.

Contracting Parties’ consent or approval of any act by any other Contracting Party requiring consent or approval shall not be deemed to waive or render unnecessary consent to or approval of any subsequent act of a Contracting Party. Any waiver by any Contracting 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.

6.4 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 Contracting Parties are cumulative and the exercise by any 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 another party.

6.5 Legal Action. In addition to any other rights or remedies, any 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.

6.6 Attorneys' Fees. If any Contracting 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 Contacting Parties, as public agencies, agree that they shall have the obligation to pay for their own, respective attorneys’ fees and other costs.

7.0 CITY OFFICERS AND EMPLOYEES; NONDISCRIMINATION.

7.1 Non-liability of City Officers and Employees. No officer, official, employee, agent, representative, or volunteer of any Contracting Party shall be personally liable to any Contracting Party, or any successor in interest, in the event of any default or breach by any Contracting Party 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.

7.2 Conflict of Interest. Contracting Parties covenant that neither Contracting Parties, nor any officer or principal thereof, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of Contracting Parties or which would in any way hinder 117 CLICK HERE to Return to Agenda
Contracting Parties’ performance of this Agreement. Contracting Parties agree to at all times avoid conflicts of interest or the appearance of any conflicts of interest in the performance of this Agreement.

No officer or employee of any Contracting Party 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 that officer or employee’s financial interest or the financial interest of any corporation, partnership or association in which that officer or employee is, directly or indirectly, interested, in violation of any local or State statute or regulation.

7.3 Covenant against Discrimination. Contracting Parties covenant 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 under Federal or State law, 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 Parties shall take affirmative action to ensure employees and Contractor’s employees and agents are treated during employment without regard to their race, color, creed, religion, sex, marital status, sexual orientation, national origin, ancestry, or on account of any impermissible classification under Federal or State law.

8.0 MISCELLANEOUS PROVISIONS

8.1 Notice. Any notice, demand, request, consent, approval, or communication any Party desires or is required to give to any other Party shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Any 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 of La Quinta:

CITY OF LA QUINTA
Attention: City Manager
78-495 Calle Tampico
La Quinta, California 92253
To City of Indian Wells:

CITY OF INDIAN WELLS
Attention: Public Works Director
44-950 Eldorado Drive
Indian Wells, CA 92210

8.2 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 any party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.

8.3 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.

8.4 Counterparts. This Agreement may be executed in any number of counterparts, each of which will be an original, but all of which together will constitute one instrument. Each party of this Agreement agrees to the use of electronic signatures, such as digital signatures that meet the requirements of the California Uniform Electronic Transactions Act ((“CUETA”) Cal. Civ. Code §§ 1633.1 to 1633.17), for executing this Agreement. The parties further agree that the electronic signatures of the parties included in this Agreement are intended to authenticate this writing and 118 CLICK HERE to Return to Agenda
to have the same force and effect as manual signatures. Electronic signature means an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record pursuant to the CUETA as amended from time to time. The CUETA authorizes use of an electronic signature for transactions and contracts among parties in California, including a government agency. Digital signature means an electronic identifier, created by computer, intended by the party using it to have the same force and effect as the use of a manual signature, and shall be reasonably relied upon by the parties. For purposes of this section, a digital signature is a type of "electronic signature" as defined in subdivision (i) of Section 1633.2 of the Civil Code.

8.5 Integrated Agreement. This Agreement including the exhibits hereto is the entire, complete, and exclusive expression of the understanding of the Contracting 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.

8.6 Amendment. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by both Contracting Parties. The Contracting Parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void.

8.7 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 any Party of the basic benefit of their bargain or renders this Agreement meaningless.

8.8 No Third Party Beneficiaries. There are no intended third-party beneficiaries under this Agreement and no such other third parties shall have any rights or obligations hereunder.

8.9 Authority. The persons executing this Agreement on behalf of each of the Contracting 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
Dated:

ATTEST:

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

WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
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CITY OF INDIAN WELLS,
a California municipal corporation
CHRISTOPHER FREELAND, City Manager
Dated:

ATTEST:

City Clerk
City of Indian Wells, California
APPROVED AS TO FORM:

City Attorney
City of Indian Wells, California
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Exhibit A
Project Description and Scope for the Washington Street Bridge Preventative Maintenance Bridge Number: 56C0266
The Project consists of preparing plans, specifications, and estimates (PS&E); bidding; and construction of preventative maintenance improvements for the Washington Street Bridge (Bridge No. 56C0266), located at the boundary between the City of La Quinta and the City of Indian Wells.

The maintenance items to be addressed in the include deck spall repairs and deck sealing, joint seal replacement, abutment backwall repairs, slope protection improvements, bent cap repairs, and bearing pad replacements, as further described in the BPMP work list. 122 CLICK HERE to Return to Agenda
BPMP work list
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Exhibit B
Project Cost Estimate
Design (Current Approved Contract.) –
Total Federal Share La Quinta Share –
50%
Indian Wells Share –
50%
$306,722 $245,377 $30,672 $30,672
Construction/CE/Cont. (Estimate. Actual cost will be available after successful bid. Each City will be responsible for 50% of the Local Share) –
Total Estimate Federal Share
Estimate
La Quinta Share
Estimate - 50%
Indian Wells Share
Estimate - 50%
$1,050,000 $837,120 $106,440 $106,440
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City of La Quinta
CITY COUNCIL MEETING: June 2, 2026

STAFF REPORT
AGENDA TITLE: APPROVE COOPERATIVE AGREEMENT WITH THE CITY OF INDIO

AND THE COUNTY OF RIVERSIDE FOR DESIGN AND CONSTRUCTION OF THE AVENUE 52 AND MONROE STREET TRAFFIC SIGNAL PROJECT NO. 2023-02

RECOMMENDATION
Approve Cooperative Agreement with the City of Indio and County of Riverside for the design and construction of traffic signal and intersection improvements at Avenue 52 and Monroe Street Project No. 2023-02; and authorize the City Manager to execute the Agreement in a form acceptable to the City Attorney.

EXECUTIVE SUMMARY
 The proposed project consists of the design and construction of a new traffic signal and intersection improvements at Avenue 52 and Monroe Street (Attachment 1).  The intersection is located within a multi-jurisdictional area involving the Cities of La Quinta and Indio, and County of Riverside, and is intended to improve regional traffic operations, access, and safety.
 The Cooperative Agreement establishes each agency’s roles and responsibilities related to project delivery, cost sharing, reimbursement, and future maintenance obligations.
 Project costs are apportioned based on jurisdictional responsibility and infrastructure needs within each agency’s respective boundary, with the City of La Quinta serving as the lead agency for project delivery, including environmental clearance, design, bidding, construction management, and project closeout.

FISCAL IMPACT
The project is part of the fiscal year (FY) 2023/24 Capital Improvement Program (CIP) and has $150,000 in Transportation Development Impact Fee (DIF) funding.

The total estimated project cost is $1,600,000. The current estimated agency contributions are shown below. There are currently adequate funds available to begin design. Once a designer is selected staff may request additional funds.

CONSENT CALENDAR ITEM NO. 8
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Total Budget Design Phase
City of La Quinta $ 346,000 $ 60,100
City of Indio $ 579,390 $ 84,990
County of Riverside $ 674,610 $ 83,910
Total Project Budget: $ 1,600,000 $ 229,000

BACKGROUND/ANALYSIS
The Avenue 52 and Monroe Street intersection is a multi-jurisdictional effort among the Cities of La Quinta and Indio, and the County of Riverside. The City of Indio has jurisdiction in the northern two quadrants of the signal; the City of La Quinta has jurisdiction within the southwest quadrant; and the County of Riverside has jurisdiction within the southeast quadrant.

The proposed improvements include the installation of a new traffic signal and related intersection improvements. Improvements include traffic signal poles and equipment, signing and striping, roadway modifications, curb ramp improvements, and utility relocations. The Cities of La Quinta and Indio quadrants are in their ultimate configurations. The County of Riverside quadrant is proposed to be widened to the ultimate configuration with this project.

Each agency will contribute to project costs based on jurisdictional responsibility and will maintain improvements within its boundaries following construction. The City of Indio is anticipated to serve as the lead agency for signal operations with a separate future Maintenance Agreement.

Contingent upon approval of the Cooperative Agreement for this project on June 2, 2026, the following is the proposed project schedule:

Council Considers Project Award June 2, 2026
Execute Cooperative Agreement June 2026
Complete Final Design/Environmental Summer 2027
Construction Summer 2027 - Winter 2027
Accept Improvements Spring 2028

ALTERNATIVES
Staff does not recommend an alternative.

Prepared by: Carley Escarrega, Administrative Technician Approved by: Bryan McKinney, P.E., Public Works Director/City Engineer Attachments: 1. Vicinity Map

2. Cooperative Agreement

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*IMPORTANT* Maps and data are to be used for reference purposes only. Map features are approximate, and are not necessarily accurate to surveying or engineering standards. The County of Riverside makes no warranty or guarantee as to the content (the source is often third party), accuracy, timeliness, or completeness of any of the data provided, and assumes no legal responsibility for the information contained on this map. Any use of this product with respect to accuracy and precision shall be the sole responsibility of the user. © Riverside County GIS
Legend
2023-02 AVE 52 & MONROE ST TRAFFIC SIGNAL PROJECT
Notes
REPORT PRINTED ON...5/20/2026 4:38:48 PM

VICINITY MAP
0 6, 12,037
019
Feet
County Boundary
World_Street_Map
ATTACHMENT 1
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COOPERATIVE AGREEMENT

FOR DESIGN AND CONSTRUCTION OF
AVENUE 52 AND MONROE STREET
This COOPERATIVE AGREEMENT FOR DESIGN AND CONSTRUCTION OF AVENUE 52 AND MONROE STREET (hereinafter “Agreement”) is entered into this ______ day of _______________, 2026 between the City of La Quinta, a municipal corporation and charter city, referred to herein as “La Quinta,” the City of Indio, a California municipal corporation, organized as a general law city, referred to herein as “Indio,” and the County of Riverside, a political subdivision of the State of California, referred to herein as “County.” La Quinta, Indio, and County are collectively referred to in this Agreement as “Contracting Parties” or “Parties.”

1.0 SCOPE OF AGREEMENT

1.1 Scope. In compliance with all terms and conditions of this Agreement, Contracting Parties hereby agree to engineer, construct, finance, operate, and maintain improvements made to Avenue 52 and Monroe Street. This Agreement sets forth the roles and responsibilities of each Contracting Party. This includes the evaluations of the interconnectedness with adjacent signals (wireless vs. wired), environmental determination and installation of a new traffic signal to ensure the intersection operates at an acceptable level of service (“Project”), as depicted in Exhibit “A” attached hereto and incorporated herein by reference. The cost of proposed improvements to design and construct the Project is specified in the Project Estimate in Exhibit “B” attached hereto and incorporated herein by reference (“Project Cost”). It is understood that Indio has jurisdiction over the northern section of the Project, 50% of the Project Area, the County has jurisdiction over the southeast section of the Project, 25% of the Project Area, and La Quinta has jurisdiction over the southwest section of the Project, 25% of the Project Area. Parties hereby agree that design and construction of the Project will be publicly advertised for proposals from professional services firms for plans and specifications and publicly bid to construction contractors and subcontractors (collectively referred to herein as “Contractors”), and thus subject to all California laws governing publicly bid projects. Contracting Parties hereby agree that the City of La Quinta will serve as the lead agency for the Project and shall be responsible for the public bidding process and the completion of all Project components. Indio and the County shall reimburse La Quinta for the Project Cost as defined in Exhibit ”B”, excluding the items in Section 3.2, in accordance with the terms of this Agreement.

1.2 Compliance with Law. The Project contemplated herein shall be paid for and constructed 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 Parties shall require all Contractors to comply with applicable Federal, State, and local wage and hour laws for the Project.

1.5 Familiarity with Project. La Qunita shall ensure that any Contractor retained for the Project shall warrant that they (a) have thoroughly investigated and considered the Project to be performed, (b) have investigated the site where the Project is to be constructed and fully ATTACHMENT 2
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2 acquainted with the conditions there existing, (c) have carefully considered how the Project should be completed, and (d) fully understand the facilities, difficulties, and restrictions attending completion of the Project.

1.6 Additional Services. In accordance with the terms and conditions of this Agreement, Contracting Parties shall fund and construct the Project as depicted in Exhibit “A” herein and the Project Cost in Exhibit “B” herein. If any additional work is required in addition to the work specified in Exhibit “B,” (“Additional Work”), Contracting Parties shall not authorize any Contractor to perform such Additional Work until receiving prior written authorization from all Contracting Parties.

All contract change orders which individually or cumulatively exceed 10% of the bid price as described in Exhibit “B” for the relevant contract bid items shall be submitted by La Quinta to Indio and County for review and approval prior to authorization by La Quinta to Contractor. County hereby authorized the County Executive Officer (or authorized designee), and La Quinta and Indio hereby authorize their respective City Managers (or authorized designees), to approve or disapprove, in their respective reasonable discretion, any change orders as authorize by applicable law including Public Contract Code Section 20395.

1.7 Responsibility for Operations and Maintenance Following Project Completion. Upon completion of the Project, the Contracting Parties shall assume maintenance responsibilities for the improvements within the respective jurisdictions of the Contracting Parties, except that the Contracting Parties shall enter into a separate agreement on the operation and maintenance of the new traffic signal constructed as part of this Project with the City of Indio listed as the lead.

Notwithstanding, any agreement(s) in place prior to this Agreement shall remain in full force and effect in accordance with the terms and provisions of those preexisting agreements.

2.0 PAYMENT OF COSTS

2.1 Contract Sum. For the Project contemplated by this Agreement, Contracting Parties shall pay a combined total price in the amount of $1,600,000 (“Project Cost”), as described in more detail in Exhibit “B.” This cost is estimated for the purposes of this agreement. The final, actual, costs are to be split by the percentages identified in Exhibit “B.” Agency Staff costs will be paid by each agency. La Quinta will only distribute contract costs to each agency.

La Quinta shall be responsible for the initial payment of Project Costs. Indio and County shall issue a check payable to La Quinta in the amount of $100,000 upon execution of this Agreement and the remainder of their respective obligations for Project Costs upon the start date of construction of the Project.

Any Additional Services required shall be approved in advance and paid for based on jurisdiction requirement or as mutually agreed upon obtaining a written amendment to this agreement executed by all Parties, for such Additional Services. 129 CLICK HERE to Return to Agenda
3 3.0 COORDINATION OF WORK

3.1 Representative of Contracting Party. The following principals of each Contracting Party (“Representatives”) are designated as the primary contacts authorized to act on behalf of their respective Contracting Party for coordination and decision-making related to the Project, consistent with the terms of this Agreement. For purposes of this Agreement, the foregoing Representatives may not be changed without the approval of all Contracting Parties, which approval shall not be unreasonably withheld or denied.

Approval of amendments to this Agreement, including approval of Additional Services or changes affecting Project Costs or cost-sharing, shall require a written amendment executed by all Contracting Parties.
a. Bryan McKinney, P.E., City of La Quinta (City Engineer & Public Works Director) E-mail: [email protected]
b. Juan Raya, P.E., City of Indio
E-mail: [email protected]
c. Dennis Acuna, Director of Transportation Riverside County Transportation Department E-mail: [email protected]

3.2 Contracting Party Responsibilities. In furtherance of this Agreement, and as the lead agency for the Project, La Quinta hereby agrees to complete the following objective:
(1) To prepare an environmental document and to obtain necessary environmental clearances in accordance with the California Environmental Quality Act (CEQA). (2) To prepare Plans, Specifications and Estimates (PS&E) for the Project. PS&E shall be prepared in accordance with the standards and practices of La Quinta, Indio, and County based on respective jurisdictional boundaries and all applicable laws and regulations therein (or as otherwise agreed upon by the respective Contracting Party). Upon completion of the draft PS&E, La Quinta shall deliver the draft PS&E for review and comment prior to finalization. County and/or Indio shall review to confirm the PS&E conforms with the respective jurisdictions’ applicable laws and regulations therein, within thirty (30) days of receipt of the draft PS&E.

If County and/or Indio identify any inconsistencies in the draft PS&E with that respective jurisdictions’ applicable laws and regulations therein, the Contracting Party shall deliver, within said 30-day period, to La Quinta specific instructions and details relating to the corrections necessary or proper to the draft PS&E to have the final PS&E conform with that respective jurisdictions’ applicable laws and regulations. La Quinta shall integrate any corrections from the respective Contracting Party prior to issuance of the final PS&E, unless the La Quinta City Engineer finds and determines, in their reasonable discretion, that the correction is in direct conflict and irreconcilable with La Quinta’s obligations under this Agreement as lead agency with oversight of the Project. (3) To prepare final design documents and drawings for the Project by or under the direction of a Civil Engineer registered and licensed in the State of California. Such specifications, plans and reports shall bear the professional seal, certificate and signature of the professional engineer responsible for their preparation. (4) To identify and locate all utility facilities within the project area as part of the project design responsibility. If any existing public and/or private utility facilities conflict 130 CLICK HERE to Return to Agenda
4 with project construction, La Quinta shall make all necessary arrangements with the owners of each facility for their protection, relocation, or removal. All utility facilities shall be identified on the project plans and specifications, and conflicting utilities shall be denoted. La Quinta shall require the utility owner and/or its contractors performing the relocation work to obtain the encroachment permit of that Jurisdiction. La Quinta, Indio, and County shall coordinate and cooperate ln the effort to establish prior rights related to utility encroachment into each Jurisdiction’s right-of-way. ln the case that any utility companies are determined to have prior rights, the cost of relocating utilities shall be borne by the Jurisdiction in which the conflicting utility resides.
(5) To advertise for and award the Project Construction Contract pursuant to applicable statues.
(6) To furnish a representative to perform the function of Construction Manager during construction of the Project.
(7) To furnish qualified support personnel to perform any required construction survey, construction testing, and construction inspection to assure that the construction is performed in accordance with the approved construction documents. (8) To administer any public works work directives and subsequent contract change orders for construction of the Project.
(9) To retain or cause to be retained for audit by Indio and County for a period of three (3) years from the date of final payment to the Contractor, all records and accounts relating to construction of the Project.
(10) Upon completion of the Project, to furnish Indio and County a complete set of full-sized reproducible “Drawing of Record” plans on Mylar or as a digital PDF as requested by Indio and County.
(11) Within sixty (60) days of completion of the Project, provide a final accounting of the Project and invoice (or refund) Indio and County for the Contracting Agencies’ portion of the Project Cost.
(12) All improvements shall be designed to be constructed within existing public rights of way within the respective jurisdictions’ boundaries.

Indio and County agree to provide, at no cost to La Quinta unless reimbursable by outside funding sources, oversight of the Project within Indio and the County's jurisdiction, promptly review and approve, as appropriate, submittals by La Quinta, and cooperate in the timely processing of the Project.

Indio and County hereby agree to issue, at no cost to La Quinta unless reimbursable by outside funding sources, upon application by La Quinta or any employee, agent, or contractor of La Quinta, the necessary encroachment permits for required work within the Contracting Parties’ street right-of-way associated with the Project, as deemed appropriate by Indio and County.

In construction of the Project, La Quinta will contract for a representative to perform the function of “Resident Engineer,” and Indio and County hereby reserve the right to provide a 131 CLICK HERE to Return to Agenda
5 representative to assist the Resident Engineer. Representatives from Indio and County may consult with La Quinta’s Resident Engineer; however, La Quinta’s Resident Engineer’s decision shall be considered final.

3.3 Independent Contractor. The Parties hereby acknowledge that neither Contracting Parties nor any employees of Contracting Parties shall have any control over the manner, mode, or means by which Contractor and its agents and employees perform the services contemplated in the Project Cost, except as otherwise set forth herein. La Qunita shall ensure that all contracts with the Contractors for the Project shall state that:
(1) the Contracting Parties shall not be liable for compensation or indemnification to Contractor for injury or sickness arising out of performing the Services for the Project hereunder.
(2) Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Contractor and any of its employees, agents, and subcontractors providing services for the Project shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by Contracting Parties, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of Contracting Parties and entitlement to any contribution to be paid by Contracting Party for employer contributions and/or employee contributions for PERS benefits.

4.0 INDEMNIFICATION.

4.1 Indemnification by La Quinta. La Quinta agrees to indemnify, defend and hold harmless Indio and County, and their respective officials, officers, agents and employees from and against liability, expenses (including reasonable attorneys’ fees), losses, suits and actions, and for damages relating to suits and actions (including bodily injury, death, personal injury, or property damage) arising from La Quinta’s performance or failure to perform under this Agreement, except to the extent such liability, expenses, losses, and damages are caused by the negligence or willful misconduct of Indio and/or County, in their respective comparative amounts as established by a court of competent jurisdiction or otherwise stipulated by the Contracting Parties.

4.2 Indemnification by Indio. Indio agrees to indemnify, defend and hold harmless La Quinta and County, and their respective officials, officers, agents and employees from and against liability, expenses (including reasonable attorneys’ fees), losses, suits and actions, and for damages relating to suits and actions (including bodily injury, death, personal injury, or property damage) arising from Indio’s performance or failure to perform under this Agreement, except to the extent such liability, expenses, losses, and damages are caused by the negligence or willful misconduct of La Quinta and/or County, in their respective comparative amounts as established by a court of competent jurisdiction or otherwise stipulated by the Contracting Parties.

4.3 Indemnification by County. County agrees to indemnify, defend and hold harmless La Quinta and Indio, and their respective officials, officers, agents and employees from and against liability, expenses (including reasonable attorneys’ fees), losses, suits and actions, and for damages relating to suits and actions (including bodily injury, death, personal injury, or property damage) arising from County’s performance or failure to perform under this Agreement, except to the extent such liability, expenses, losses, and damages are caused by the negligence or willful misconduct of La Quinta and/or Indio, in their respective comparative amounts as established by a court of competent jurisdiction or otherwise stipulated by the Contracting Parties. 132 CLICK HERE to Return to Agenda
6 4.4 Indemnification from Contractor. La Quinta shall ensure that each and every Contractor performing work for the Project will indemnify, defend, and hold harmless, to the maximum extent allowable by law, the Contracting Parties for that work performed on the Project by the Contractor.

5.0 RECORDS AND REPORTS.

5.2 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 for the Project (the “Documents and Materials”) shall be the joint property of all Contracting Parties. Any Contracting Party shall be entitled to use or reuse such completed Documents and Materials for other projects and/or use uncompleted documents for any purpose.

6.0 ENFORCEMENT OF AGREEMENT.

6.1 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 Parties covenant and agree to submit to the personal jurisdiction of such court in the event of such action.

6.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the remaining Contracting Parties 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 as soon thereafter as practicably may be accomplished, provided that if the default is an immediate danger to the health, safety, or general welfare, the injured party may take such immediate action as deemed 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.

6.3 Waiver. No delay or omission in the exercise of any right or remedy of a nondefaulting party on any default shall impair such right or remedy or be construed as a waiver.

Contracting Parties’ consent or approval of any act by any other Contracting Party requiring 133 CLICK HERE to Return to Agenda
7 consent or approval shall not be deemed to waive or render unnecessary consent to or approval of any subsequent act of Contracting Party. Any waiver by any Contracting 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.

7.0 CITY OFFICERS AND EMPLOYEES; NONDISCRIMINATION.

7.1 Non-liability of County and City Officers and Employees. No officer, official, employee, agent, representative, or volunteer of any Contracting Party shall be personally liable to any Contracting Party, or any successor in interest, in the event of any default or breach by any Contracting Party 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.

7.2 Conflict of Interest. Contracting Parties covenant that neither Contracting Parties, nor any officer or principal thereof, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of Contracting Parties or which would in any way hinder Contracting Parties’ performance of this Agreement. Contracting Parties agree to at all times avoid conflicts of interest or the appearance of any conflicts of interest in the performance of this Agreement.

No officer or employee of any Contracting Party 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 local or State statute or regulation.

Contracting Parties shall take affirmative action to ensure employees and Contractor’s employees and agents are treated during employment without regard to their race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry. 134 CLICK HERE to Return to Agenda
8 8.0 MISCELLANEOUS PROVISIONS

To City of La Quinta:

CITY OF LA QUINTA
Attention: City Manager
78-495 Calle Tampico
La Quinta, California 92253
To City of Indio:

CITY OF INDIO
Attention: City Manager
100 Civic Center Mall
Indio, CA 92201
County of Riverside

RIVERSIDE COUNTY TRANSPORTATION DEPARTMENT
Attention: Director of Transportation
4080 Lemon Street, 8th Floor
Riverside, CA 92501

8.4 Counterparts/ Electronic Signatures. This Agreement may be executed in any number of counterparts, each of which will be an original, but all of which together will constitute one instrument. Each party of this Agreement agrees to the use of electronic signatures, such as digital signatures that meet the requirements of the California Uniform Electronic Transactions Act ((“CUETA”) Cal. Civ. Code §§ 1633.1 to 1633.17), for executing this Agreement. The parties further agree that the electronic signatures of the parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic signature means an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record pursuant to the CUETA as amended from time to time. The CUETA authorizes use of an electronic signature for transactions and contracts among parties in California, including a government agency. Digital signature means an electronic identifier, created by computer, intended by the party using it to have the same force and effect as the use of a manual signature, and shall be reasonably relied upon by the parties. For purposes of this section, a digital signature is a type of "electronic signature" as defined in subdivision (i) of Section 1633.2 of the Civil Code.
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9 8.5 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.

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

8.8 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.

8.9 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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10 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
Dated:

ATTEST:

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

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

CITY OF INDIO,
a California municipal corporation
BRYAN MONTGOMERY, City Manager
Dated:

ATTEST:

City Clerk
City of Indio, California
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11 APPROVED AS TO FORM:

City Attorney
City of Indio, California

COUNTY OF RIVERSIDE,
a California municipal corporation

APPROVAL BY THE BOARD OF

SUPERVISORS
Chair, Riverside County Board of Supervisors
Dated:

APPROVED AS TO FORM:

Minh C. Tran
County Counsel
Kristine Bell-Valdez,
Deputy County Counsel
ATTEST:

Kimberly Rector
Clerk of the Board (Seal)
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12 Exhibit A
Project Improvement Scope
The Summary of Scope of Services for Avenue 52 and Monroe Street Project is as follows:

1. Conduct existing utility research for all utilities within the project limits to identify, locate, and layout all above and underground improvements.

2. Ensure compliance with the Americans with Disabilities Act (ADA) requirements by incorporating accessibility pedestrian signals, crosswalks, curb ramps, and other features to enhance accessibility and safety for individual with disabilities.

3. Prepare preliminary and final plans, specifications, and estimate for Avenue 52 and Monroe Street traffic signal.

4. Cause the Construction of the Project to include:
a. Reconstruct the roadway section within the intersection up to the end of the curb returns on the northwest corner and northeast corner.
b. Reconstruct southwest curb ramp to meet ADA compliance requirements. c. Construct curb ramp and full curb return at ultimate location within County Limits on the southeast corner. The tie-in to the existing roadway will be held at the limits shown in the attached exhibit. Improvements will modify median. d. Re-stripe the intersection and legs for new signal.
e. Wired/Wireless Interconnect to adjacent signals. Wired will be the first approach.

Wireless will only be used if wired is not feasible.

5. Obtain all necessary permits and approvals from relevant authorities for the installation of a new traffic signal.
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13 140 CLICK HERE to Return to Agenda
Exhibit A
Project Exhibit
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© 2024 Microsoft Corporation © 2024 Maxar ©CNES (2024) Distribution Airbus DS TRACT MAP NO. 31202-111' 12' 8' 14' 11' 11' 11' 8' 12' 12' AVENUE 52 MONROE ST PARCEL MAP NO. 19984 PARCEL MAP 5204 12' 12' 4' 3' PARCEL MAP NO. 18452 CITY OF INDIO CITY OF INDIO CITY OF LA QUINTA RIVERSIDE COUNTY 12' 12'10' 7' FOR EXHIBIT PURPOSES ONLY SCALE: NTS CITY OF LA QUINTA IMPROVEMENTS CITY OF INDIO IMPROVEMENTS RIVERSIDE COUNTY IMPROVEMENTS SPLIT COST IMPROVEMENTS PROPOSED TRAFFIC SIGNAL LEGEND 142
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Exhibit B
Project Preliminary Cost Estimate
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Exhibit B
Preliminary Project Cost Estimate
12/18/2025
ITEM
NO.

DESCRIPTION UNIT QTY. UNIT PRICE EXTENDED
PRICE
City of La
Quinta
City of Indio County Comments
1 Mobilization LS 1 $84,000 $84,000 $28,000 $28,000 $28,000 Split Even 2 Traffic Control LS 1 $80,000 $80,000 $26,666 $26,666 $26,668 Split Even 3 Dust Control LS 1 $15,000 $15,000 $5,000 $5,000 $5,000 Split Even 4 Widening - Clearing and Grubbing SF 15,000 $2 $30,000 $0 $0 $30,000 Per Jurisdiction 5 Remove and Replace Curb Ramp LS 1 $12,000 $12,000 $12,000 $0 $0 Per Jurisdiction 6 Widening - Earthwork LS 1 $14,000 $14,000 $0 $0 $14,000 Per Jurisdiction 7 Left Turn Pocket - Unclassified Excavation LS 1 $8,000 $8,000 $2,000 $4,000 $2,000 % of Jurisdiction 8 Rehab - Unclassified Excavation SF 5,325 $2 $10,650 $0 $7,406 $3,244 Per Jurisdiction 9 Rehab - Primary 4.5" AC over 6" AB SF 5,325 $6.50 $34,613 $0 $24,070 $10,543 Per Jurisdiction 10 Widening - Primary 4.5" AC over 6" AB SF 14,425 $6.50 $93,763 $0 $0 $93,763 Per Jurisdiction 11 Left Turn Pocket - Primary 4.5" AC over 6" AB SF 2,450 $6.50 $15,925 $3,981 $7,963 $3,981 % of Jurisdiction 12 Widening Curb Ramp EA 1 $8,000.00 $8,000 $0 $0 $8,000 Per Jurisdiction 13 Left Turn Pocket - Median Curb LF 170 $25.00 $4,250 $1,063 $2,125 $1,063 % of Jurisdiction 14 Left Turn Pocket - Place Back/Modify Existing
Median Landscape and Irrigation
SF 510 $12.00 $6,120 $1,530 $3,060 $1,530
% of Jurisdiction
15 Furnish and Install Signal LS 1 $440,000.00 $440,000 $110,000 $220,000 $110,000 % of Jurisdiction 16 Furnish and Construct IID Backbone LS 1 $50,000.00 $50,000 $12,500 $25,000 $12,500 % of Jurisdiction (Signal Service) 17 Signage and Striping LS 1 $8,000 $8,000 $3,200 $3,200 $4,800 % of Construction $914,320 $205,940 $356,489 $355,092
$91,432 $20,594 $35,649 $35,509 Preliminary Contingency of Unknown Prior to Design 1 $227,000 $393,000 $386,000
23% 39% 38% Percentage Breakdown
Design: $151,000 $34,100 $58,990 $57,910 % of Construction, will change to actual per jurisdiction 2 Professional: $78,000 $26,000 $26,000 $26,000 Split Even Insp/Test/Survey: $99,000 $22,400 $38,700 $37,900 % of Construction 3 CVWD/BOR Relocations $100,000 $0 $0 $100,000 Per Jurisdiction IID Meter and Design: $20,000 $5,000 $10,000 $5,000 % of Jurisdiction (Signal Service) Contingency: $146,000 $31,500 $52,700 $61,800 10% of whole 4 Total Preliminary Estimate: $1,600,000 $346,000 $579,390 $674,610 $1,006,000
IID utility poles will be relocated due to widening in
County and IID does not have prior rights
CVWD/ BOR Irrigation Line/Above Ground Utilities
will need to be relocated due to widening in County
and do have prior rights
Sub Total Construction:

Comments/Assumptions: Design Contingency 10%:

County Section will be widened per Exhibit A
attached to this document. Curb will only be placed
at curb return
ROW is not required
Construction:
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City of La Quinta
CITY COUNCIL MEETING: June 2, 2026

STAFF REPORT
AGENDA TITLE: APPROVE AGREEMENT FOR CONTRACT SERVICES WITH

DESERT RESORT MANAGEMENT FOR UNARMED SECURITY GUARD PATROL

SERVICES

RECOMMENDATION
Approve Agreement for Contract Services with Desert Resort Management for unarmed security guard patrol services, for a total not to exceed amount of $150,000; and authorize the City Manager to execute the agreement.

EXECUTIVE SUMMARY
 In 2020, the City launched a pilot program to test whether a private security guard could respond effectively to short-term vacation rental (STVR) hotline complaints on weekend nights. The program was successful, and Desert Resort Management (DRM) has been under contract with the City since December 2020.  In March 2026, staff published a Request for Proposal (RFP) for unarmed security guard patrol services to respond to STVR hotline complaints and patrolling City properties; received 14 proposals; and DRM was selected as the most qualified firm.
 Proposed is an Agreement for Contract Services (Attachment 1) with DRM to provide unarmed security patrol services, from 6 PM to 2 AM, Friday through Sunday, for an initial 2-year term (2026/28), and an optional 1-year extension (2028/29).

FISCAL IMPACT
Total compensation is not to exceed $150,000 for the initial 2-year term and the optional 1-year term extension. If approved, funds will be allocated in the FY 2026/27 Code Compliance/Animal Control Professional Services budget (Account No. 101-6004-60103) and will be budgeted pursuant to the agreement terms for future FYs. Estimated fiscal year (FY) costs are as follows:

Term DESERT RESORT MANAGEMENT SECURITY Cost
Initial Term
FY 2026/27 Security Guard Patrol Services $49,075
FY 2027/28 Security Guard Patrol Services $49,075
Extended Term
FY 2028/29 Security Guard Patrol Services $49,075
Contingency $2,775
Grand Total: $150,000
CONSENT CALENDAR ITEM NO. 9
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BACKGROUND/ANALYSIS
In 2020, the City launched a pilot program with DRM and another security company to provide patrol services for monitoring STVR activity and patrolling properties. Following the program’s success, DRM demonstrated their ability to provide the required services and were awarded the contract. The current agreement is set to expire in June 2026.

In March 2026, staff published an RFP seeking proposals for weekend unarmed security patrols related to STVR activity. The City received 14 proposals, and after a thorough evaluation process, DRM was identified as the most qualified due to their competitive pricing, ability to deliver the required level of service, and experience in the security industry.

The proposed agreement with DRM for security services includes responding to and documenting STVR hotline complaints, coordinating with law enforcement, and preparing incident reports. DRM will also patrol suspended STVR properties and City owned properties and report any criminal activity or visible hazards observed while on duty.

Patrol services will be provided Friday through Sunday from 6 PM to 2 AM. Patrol locations include, but are not limited to, the La Quinta Civic Center Campus (City Hall, Wellness Center, Library, and related facilities), Fritz Burns Park, La Quinta Park, SilverRock Park, X Park, and the La Quinta Museum. The initial term is for 2-years with an optional 1-year extension; for a total compensation not to exceed $150,000.

If approved, the agreement will ensure continued weekend security patrol services to support enforcement of the City’s STVR regulations, provide timely responses to hotline complaints, and patrols of properties.

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

Prepared by: Lisa Chastain, Public Safety Management Analyst Approved by: Martha Mendez, Public Safety Deputy Director Attachment: 1. Agreement for Contract Services with DRM 146 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 Desert Resort Management (Palm Desert), a California Corporation with its principal place of business at 42635 Melanie Place, Suite 103, Palm Desert, California 92211 (“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 security patrols of Short-Term Vacation Rentals (STVRs) and city property, with an unarmed security guard, three days a week, 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. 148 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 One Hundred and Fifty Thousand Dollars ($150,000), for the life of the Agreement, encompassing the Initial and any Extended Terms (the “Contract Sum”), except as provided in Section 1.7. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment in accordance with the percentage of completion of the Services, payment for time and materials based upon Contracting Party’s rate schedule, but not exceeding the Contract Sum, or such other reasonable methods as may be specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Contracting Party at all project meetings reasonably deemed necessary by City; Contracting Party shall not be entitled to any additional compensation for attending said meetings. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses when and if specified in the Schedule of Compensation.

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

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

2.3 Compensation for Additional Services. Additional Services approved in advance by the Contract Officer, or assigned designee, pursuant to Section 1.7 of this Agreement shall be paid for in an amount agreed to in writing 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 149 CLICK HERE to Return to Agenda
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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 July 1, 2026, and terminate on June 30, 2028 (“Initial Term”). This Agreement may be extended for 1 additional year(s) upon mutual agreement by both parties (“Extended Term”), and executed in writing.
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4. COORDINATION OF WORK.

4.1 Representative of Contracting Party. The following principals of Contracting Party (“Principals”) are hereby designated as being the principals and representatives of Contracting Party authorized to act in its behalf with respect to the Services specified herein and make all decisions in connection therewith:
(a) Mark Dodge, Branch President and CEO
Telephone No.: 760-346-1161
Email: [email protected]
(b) Terry Kramer, Executive Vice-President
Telephone No.:760-346-1161
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 Martha Mendez, Public Safety Deputy Director or assigned designee may be designated in writing by the City Manager of the City. It shall be Contracting Party’s responsibility to assure that the Contract Officer, or assigned designee, is kept informed of the progress of the performance of the Services, and Contracting Party shall refer any decisions, that must be made by City to the Contract Officer, or assigned designee. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer, or assigned designee. The Contract Officer, or assigned designee, shall have authority to sign all documents on behalf of City required hereunder to carry out the terms of this Agreement.

4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability, and reputation of Contracting Party, its principals, and its employees were a substantial inducement for City to enter into this Agreement. Except as set forth in this Agreement, Contracting Party shall not contract or subcontract with any other entity to perform in whole or in part the Services required hereunder without the express written approval of City. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated, or encumbered, voluntarily or by operation of law, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Contracting Party, taking all transfers into account on a cumulative basis. Any attempted or purported assignment or contracting or subcontracting by Contracting Party without City’s express written approval shall be null, void, and of no effect. No approved 151 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 153 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 155 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 156 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. 157 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:
78495 Calle Tampico
La Quinta, California 92253
To Contracting Party:

Desert Resort Management
(PALM DESERT)
Attention: Mark Dodge
42635 Melanie Place
Palm Desert, CA, 92211

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:

CONTRACTING PARTY:

Desert Resort Management
(PALM DESERT) C/O Desert Resort
Management, INC:

Name: Mark Dodge
Title: CEO
ATTEST:

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

Name:

Title:

APPROVED AS TO FORM:

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

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La Quinta City CouncilJune 2, 2026

La Quinta City Council
June 2, 2026