ITEM 7B

Staff Report

Subject: Reimbursement request from Indian Wells for legal fees Contact: Erica Felci, Governmental Projects Manager (efelci@cvag.org) Recommendation: Receive and file the latest correspondence from the former CVAG Executive Director and recommend the Executive Committee takes one of following courses of action:

1) Approve the request to reimburse the City of Indian Wells for $12,290.99 for legal services and direct staff to find an appropriate source of funding, as it has been determined that the expense is ineligible for Measure A or TUMF funding; or

2) Reject the reimbursement request.

Background: In late 2016, CVAG committees were presented with a review of the expenditures related

to the Highway 111 project in the City of Indian Wells. As part of this analysis, CVAG staff and three

outside experts reviewed $9.1 million in Measure A and Transportation Uniform Mitigation Fee (TUMF)

funding that has been spent to date on the Highway 111 improvement project. The review found that

some of those expenditures – particularly the $2.5 million in CVAG transportation funds spent on sound

walls along the south side of the city’s Indian Wells Golf Resort – were ineligible for reimbursement.

On December 5, 2016, the Executive Committee voted unanimously to receive and file a declaration

from former CVAG Executive Director John Wohlmuth, and made a formal finding that “all parties acted

in good faith when determining reimbursement for the Highway 111 project in the City of Indian Wells.”

As it is noted in the minutes, it was declared that this issue had essentially been “put to bed” until the

60,000 vehicles per day trigger had been reached.

CVAG has received an invoice dated May 17, 2017 from the City of Indian Wells, which had, on its own

accord, decided to retain Jenkins & Hogin LLP. The City is now seeking “legal services reimbursement”

for $12,290.99. The two-page invoice lists only the dates of the invoices and when they were paid.

It should be noted that CVAG staff conducted the analysis by working in conjunction with the City of Indian Wells, including the sharing of records. At no point did CVAG seek reimbursement for the expenses that were not eligible for reimbursement through the Measure A or TUMF programs. Additionally, the findings by the Transportation Committee and the Technical Advisory Committee only suggested administrative steps to recover funds. If the City of Indian Wells were to file reimbursement requests for the sound wall project today, CVAG staff – based on the thorough review of all the documentation, including three independent analyses – would determine these expenses are ineligible for reimbursement. It was the extenuating circumstances

of Mr. Wohlmuth’s declaration – provided by Indian Wells just days before the Executive Committee was going to meet – that prompted CVAG staff to revise its recommendation to a “good faith” finding by the Executive Committee. Since that December decision, Mr. Wohlmuth has been in touch with CVAG and has been provided a copy of the project file. On May 26, CVAG staff received additional correspondence from Mr. Wohlmuth, in which he apologizes for “whatever confusion” resulted from his earlier declaration. He goes on to say that he “thought there was a second sound study for (the) Highway 111 widening, but I was wrong” and that, based on his own review of the files, “Measure A and TUMF funds cannot be utilized” for the sound walls. Fiscal Analysis: Riverside County Transportation Commission staff concurs that this expense cannot be reimbursed through Measure A. Should the Executive Committee support paying the reimbursement request, CVAG staff will further research an appropriate source of funding – possibly including the general fund – to cover the $12,290.99. Attachments: Invoice from City of Indian Wells, May 17, 2017 Letter from City of Indian Wells, January 6, 2017 Executive Committee minutes, December 5, 2016 Letter from John Wohlmuth, March 22, 2017

EXECUTIVE COMMITTEE MINUTES OF DECEMBER 5, 2016 PAGE 1

EXECUTIVE COMMITTEE MINUTES OF MEETING

DECEMBER 5, 2016

1. CALL TO ORDER

The December 5, 2016 Executive Committee meeting was called to order at 4:30 p.m. by Chair Dana Reed, City of Indian Wells at CVAG Conference room, Suite 119, in Palm Desert.

2. ROLL CALL A roll call was taken and it was determined that a quorum was present. Those in attendance

were as follows: MEMBERS PRESENT AGENCY Mayor Joseph DeConinck City of Blythe Mayor Stan Henry City of Cathedral City Mayor Steven Hernandez City of Coachella Mayor Scott Matas City of Desert Hot Springs Councilmember Dana Reed City of Indian Wells Mayor Glenn Miller City of Indio Mayor Linda Evans City of La Quinta Mayor Robert Spiegel City of Palm Desert Mayor Robert Moon City of Palm Springs Councilmember Dana Hobart City of Rancho Mirage Chief of Staff Michelle DeArmond County of Riverside 4th District Supervisor Marion Ashley County of Riverside 5th District (Present through 7C) MEMBERS NOT PRESENT AGENCY Supervisor Kevin Jeffries County of Riverside 1st District Supervisor John Tavaglione County of Riverside 2nd District Supervisor Chuck Washington County of Riverside 3rd District Tribal Chair Jeff Grubbe Agua Caliente Band of Cahuilla Indians Tribal Chair Douglas Welmas Cabazon Band of Mission Indians NON-VOTING MEMBERS PRESENT AGENCY Councilmember Michael Wilson SCAG Regional Council Mayor Pro Tem Jan Harnik City of Palm Desert Peter Cosentini City of Blythe

Charlie McClendon City of Cathedral City Bill Pattison City of Coachella

Luke Rainey City of Desert Hot Springs

ITEM 6A

The audio file for this committee meeting can be found at: http://www.cvag.org/audio.htm

EXECUTIVE COMMITTEE MINUTES OF DECEMBER 5, 2016 PAGE 2

Wade McKinney City of Indian Wells Dan Martinez City of Indio Frank Spevacek City of La Quinta

Lauri Aylaian City of Palm Desert David Ready City of Palm Springs Randy Bynder City of Rancho Mirage Brian Nestande County of Riverside OTHERS PRESENT AGENCY Amber Amaya Coachella Unincorporated Barry Busch County of Riverside Crystal Crawford Ygrene Energy Isaiah Hagerman City of Rancho Mirage David Little County of Riverside Mariela Magaña Leadership Counsel Jesse Marx The Desert Sun Tom Mullen County of Riverside Alan Pace Petra Geotechnical Steve Renever County of Riverside Olivia Rodriguez Coachella Unincorporated Paul Rodriguez Rodriguez Consulting Group STAFF PRESENT Tom Kirk Gary Leong Martin Magaña Katie Barrows Eric Cowle Ben Druyon Erica Felci Lance Albrecht Joanna Stueckle Toni Eggebraaten CVAG Legal Counsel

3. PLEDGE OF ALLEGIANCE

Mayor Spiegel led the Executive Committee in the Pledge of Allegiance.

4. PUBLIC COMMENTS None.

5. EXECUTIVE COMMITTEE / DIRECTOR COMMENTS

Michelle DeArmond gave members an update on Supervisor John Benoit’s health. Councilmember Dana Hobart read a statement regarding the City of Indio’s $18 million Jefferson Street project settlement. A discussion ensued regarding the settlement and CVAG’s possible role. CVAG Legal Counsel suggested that a discussion on this issue is premature at the current time. Executive Director Tom Kirk indicated that any request from Indio would be brought to the Executive Committee for consideration.

EXECUTIVE COMMITTEE MINUTES OF DECEMBER 5, 2016 PAGE 3

Mr. Kirk updated the Executive Committee on the status of the CV Link Draft Environmental Impact Report (DEIR) as well as the DEIR for the sheep barrier project in La Quinta.

6. CONSENT CALENDAR

Councilmember Dana Reed announced that he would recuse himself from voting on item 6G - Approve Fourth Amendment to Agreement with Southern California Edison and Southern California Gas Company to Extend Desert Cities Energy Partnership through December 2018. Supervisor Ashley would abstain from the same item. IT WAS MOVED BY MAYOR SPIEGEL AND SECONDED BY SUPERVISOR ASHLEY TO:

A. APPROVE SEPTEMBER 26, 2016 EXECUTIVE COMMITTEE MINUTES B. APPROVE AMENDMENT NO. 2 TO THE SERVICES CONTRACT WITH MICHAEL BAKER

INTERNATIONAL TO EXTEND THE TERM OF THE CONTRACT TO DECEMBER 1, 2017 C. APPROVE SERVICES CONTRACT WITH NEWPORT TRAFFIC STUDIES FOR THE 2017

TRAFFIC COUNTS D. APPROVE REVISED MOU BETWEEN CVAG AND CITY OF PALM SPRINGS, AND

CORRESPONDING AMENDMENT NO. 1 TO CVAG’S REGIONAL PM10 STREET SWEEPING SERVICES CONTRACT FOR NET SAVINGS OF $17,587.77 THROUGH FY 17/18

E. APPROVE RESOLUTION 16-006 SUPPORTING RIVERSIDE COUNTY’S BROADBAND

FIBER TO THE PREMISE MASTER PLAN F. APPROVE 2016/2017 USED OIL RECYCLING PROGRAM ADVERTISING STRATEGY

AND PROGRAM BUDGET G. APPROVE FOURTH AMENDMENT TO AGREEMENT WITH SOUTHERN CALIFORNIA

EDISON AND SOUTHERN CALIFORNIA GAS COMPANY TO EXTEND DESERT CITIES ENERGY PARTNERSHIP THROUGH DECEMBER 2018. THE MOTION CARRIED WITH 12 AYES and 5 MEMBERS ABSENT ON ITEMS A THROUGH F; AND 10 AYES, 1 RECUSAL, 1 ABSTAINTION, AND 5 MEMBERS ABSENT ON ITEM G. MAYOR JOSEPH DECONINCK AYE MAYOR STAN HENRY AYE MAYOR STEVEN HERNANDEZ AYE MAYOR SCOTT MATAS AYE COUNCILMEMBER DANA REED AYE (RECUSED SELF ON 6G) MAYOR GLENN MILLER AYE MAYOR LINDA EVANS AYE MAYOR ROBERT SPIEGEL AYE MAYOR ROBERT MOON AYE

EXECUTIVE COMMITTEE MINUTES OF DECEMBER 5, 2016 PAGE 4

COUNCILMEMBER DANA HOBART AYE SUPERVISOR KEVIN JEFFRIES ABSENT SUPERVISOR JOHN TAVAGLIONE ABSENT SUPERVISOR CHUCK WASHINGTON ABSENT CHIEF OF STAFF MICHELLE DeARMOND AYE SUPERVISOR MARION ASHLEY AYE (ABSTAINED ON 6G) TRIBAL CHAIR JEFF GRUBBE ABSENT TRIBAL CHAIR DOUGLAS WELMAS ABSENT

6.1 ITEM(S) HELD OVER FROM CONSENT CALENDAR None. 7. DISCUSSION / ACTION A. Transition of Ygrene’s CV Upgrade PACE Program to Statewide Program – Ben

Druyon Ben Druyon presented the staff report.

IT WAS MOVED BY MAYOR EVANS AND SECONDED BY MAYOR SPIEGEL TO:

1) APPROVE TRANSITION OF THE CV UPGRADE PROGRAM TO YGRENE’S

STATEWIDE PROGRAM UNDER THE GOLDEN STATE FINANCE AUTHORITY WHICH IS CONSISTENT WITH OTHER PACE STATEWIDE PROGRAMS, AND;

2) EXECUTE A NEW AGREEMENT WITH YGRENE, SIMILAR TO THE

AGREEMENTS ENTERED INTO BY CVAG AND OTHER PACE PROVIDERS, AND;

3) AUTHORIZE THE EXECUTIVE DIRECTOR OF CVAG AND/OR LEGAL COUNSEL

TO MAKE MINOR CHANGES OR REVISIONS TO THE AGREEMENT FOR CLARIFICATION PURPOSES.

THE MOTION CARRIED WITH 12 AYES and 5 MEMBERS ABSENT. MAYOR JOSEPH DECONINCK AYE MAYOR STAN HENRY AYE MAYOR STEVEN HERNANDEZ AYE MAYOR SCOTT MATAS AYE COUNCILMEMBER DANA REED AYE MAYOR GLENN MILLER AYE MAYOR LINDA EVANS AYE MAYOR ROBERT SPIEGEL AYE MAYOR ROBERT MOON AYE COUNCILMEMBER DANA HOBART AYE SUPERVISOR KEVIN JEFFRIES ABSENT SUPERVISOR JOHN TAVAGLIONE ABSENT SUPERVISOR CHUCK WASHINGTON ABSENT CHIEF OF STAFF MICHELLE DeARMOND AYE SUPERVISOR MARION ASHLEY AYE

EXECUTIVE COMMITTEE MINUTES OF DECEMBER 5, 2016 PAGE 5

TRIBAL CHAIR JEFF GRUBBE ABSENT TRIBAL CHAIR DOUGLAS WELMAS ABSENT

B. Ineligible Use of Measure A and TUMF Funding by City of Indian Wells – Erica Felci

Erica Felci presented the alternate staff report and recommendation. Mr. Kirk stated that this issue has been “put to bed” and CVAG staff will not seek reimbursement for the Highway 111 sound wall until such time that the 60,000 car per day trigger, which is outlined in the contract, is met or exceeded. IT WAS MOVED BY MAYOR MILLER AND SECONDED BY COUNCILMEMBER HOBART TO RECEIVE AND FILE THE DECLARATION REGARDING THE SOUND WALL; MAKE A FINDING THAT ALL PARTIES ACTED IN GOOD FAITH WHEN DETERMINING REIMBURSEMENT FOR THE HIGHWAY 111 PROJECT IN THE CITY OF INDIAN WELLS; AND SEEK REIMBURSEMENT WHEN THE 60,000 PER DAY TRIGGER IS MET. THE MOTION CARRIED WITH 12 AYES and 5 MEMBERS ABSENT. MAYOR JOSEPH DECONINCK AYE MAYOR STAN HENRY AYE MAYOR STEVEN HERNANDEZ AYE MAYOR SCOTT MATAS AYE COUNCILMEMBER DANA REED AYE MAYOR GLENN MILLER AYE MAYOR LINDA EVANS AYE MAYOR ROBERT SPIEGEL AYE MAYOR ROBERT MOON AYE COUNCILMEMBER DANA HOBART AYE SUPERVISOR KEVIN JEFFRIES ABSENT SUPERVISOR JOHN TAVAGLIONE ABSENT SUPERVISOR CHUCK WASHINGTON ABSENT CHIEF OF STAFF MICHELLE DeARMOND AYE SUPERVISOR MARION ASHLEY AYE TRIBAL CHAIR JEFF GRUBBE ABSENT TRIBAL CHAIR DOUGLAS WELMAS ABSENT Eric Cowle presented the staff reports for Items 7C, 7D and 7E together.

C. Reimbursement Agreement Between CVAG and the County of Riverside of the Project Approval and Environmental Document (PA & ED) Phase for the Avenue 48 Between Van Buren Street and Dillon Road Widening Project – Eric Cowle IT WAS MOVED BY MAYOR HERNANDEZ AND SECONED BY MAYOR SPIEGEL TO APPROVE A REIMBURSEMENT AGREEMENT BETWEEN CVAG AND THE COUNTY OF RIVERSIDE FOR THE PROJECT APPROVAL AND ENVIRONMENTAL DOCUMENT (PA & ED) PHASE OF THE AVENUE 48 BETWEEN VAN BUREN STREET AND DILLON ROAD WIDENING PROJECT IN THE AMOUNT NOT TO EXCEED $450,000 AND AUTHORIZE THE EXECUTIVE DIRECTOR TO ENTER INTO A SUB-AGREEMENT WITH THE CITY OF COACHELLA AS NECESSARY.

EXECUTIVE COMMITTEE MINUTES OF DECEMBER 5, 2016 PAGE 6

THE MOTION CARRIED WITH 12 AYES and 5 MEMBERS ABSENT. MAYOR JOSEPH DECONINCK AYE MAYOR STAN HENRY AYE MAYOR STEVEN HERNANDEZ AYE MAYOR SCOTT MATAS AYE COUNCILMEMBER DANA REED AYE MAYOR GLENN MILLER AYE MAYOR LINDA EVANS AYE MAYOR ROBERT SPIEGEL AYE MAYOR ROBERT MOON AYE COUNCILMEMBER DANA HOBART AYE SUPERVISOR KEVIN JEFFRIES ABSENT SUPERVISOR JOHN TAVAGLIONE ABSENT SUPERVISOR CHUCK WASHINGTON ABSENT CHIEF OF STAFF MICHELLE DeARMOND AYE SUPERVISOR MARION ASHLEY AYE TRIBAL CHAIR JEFF GRUBBE ABSENT TRIBAL CHAIR DOUGLAS WELMAS ABSENT

D. Consider Amendment Number Three to the Reimbursement Agreement Between CVAG and the City of Coachella for Improvement of the Interchange at Interstate 10 and Avenue 50 – Eric Cowle

IT WAS MOVED BY MAYOR HERNANDEZ AND SECONDED BY MAYOR SPIEGEL TO APPROVE AMENDMENT NUMBER THREE TO THE REIMBURSEMENT AGREEMENT BETWEEN CVAG AND THE CITY OF COACHELLA FOR IMPROVEMENT OF THE INTERCHANGE AT INTERSTATE 10 AND AVENUE 50 INCREASING CVAG’S REGIONAL SHARE BY AN AMOUNT NOT TO EXCEED $425,768. THE MOTION CARRIED WITH 12 AYES and 5 MEMBERS ABSENT. MAYOR JOSEPH DECONINCK AYE MAYOR STAN HENRY AYE MAYOR STEVEN HERNANDEZ AYE MAYOR SCOTT MATAS AYE COUNCILMEMBER DANA REED AYE MAYOR GLENN MILLER AYE MAYOR LINDA EVANS AYE MAYOR ROBERT SPIEGEL AYE MAYOR ROBERT MOON AYE COUNCILMEMBER DANA HOBART AYE SUPERVISOR KEVIN JEFFRIES ABSENT SUPERVISOR JOHN TAVAGLIONE ABSENT SUPERVISOR CHUCK WASHINGTON ABSENT CHIEF OF STAFF MICHELLE DeARMOND AYE SUPERVISOR MARION ASHLEY AYE TRIBAL CHAIR JEFF GRUBBE ABSENT TRIBAL CHAIR DOUGLAS WELMAS ABSENT

EXECUTIVE COMMITTEE MINUTES OF DECEMBER 5, 2016 PAGE 7

E. Reimbursement Agreement between CVAG and the City of Coachella for the Environmental and Engineering phase of the Avenue 50 Project between SR86 and I-10 – Eric Cowle

IT WAS MOVED BY MAYOR HERNANDEZ AND SECONDED BY MAYOR SPIEGEL TO APPROVE A REIMBURSEMENT AGREEMENT BETWEEN CVAG AND THE CITY OF COACHELLA FOR THE ENVIRONMENTAL AND ENGINEERING PHASE OF THE AVENUE 50 PROJECT BETWEEN SR86 AND I-10 IN THE AMOUNT NOT TO EXCEED $1,365,000. THE MOTION CARRIED WITH 12 AYES and 5 MEMBERS ABSENT. MAYOR JOSEPH DECONINCK AYE MAYOR STAN HENRY AYE MAYOR STEVEN HERNANDEZ AYE MAYOR SCOTT MATAS AYE COUNCILMEMBER DANA REED AYE MAYOR GLENN MILLER AYE MAYOR LINDA EVANS AYE MAYOR ROBERT SPIEGEL AYE MAYOR ROBERT MOON AYE COUNCILMEMBER DANA HOBART AYE SUPERVISOR KEVIN JEFFRIES ABSENT SUPERVISOR JOHN TAVAGLIONE ABSENT SUPERVISOR CHUCK WASHINGTON ABSENT CHIEF OF STAFF MICHELLE DeARMOND AYE SUPERVISOR MARION ASHLEY AYE TRIBAL CHAIR JEFF GRUBBE ABSENT TRIBAL CHAIR DOUGLAS WELMAS ABSENT

8. INFORMATION

a) Status of I-10 Interchange Projects

b) CVAG Regional Arterial Program - Project Status Report

c) CVAG Regional Arterial Program – Contract Status Report d) Executive Committee Attendance Roster

e) Status of Regional Traffic Signal Synchronization Project

f) CVAG Quarterly Investment Report

g) CVAG Retention Policy

h) Work Group Update: Roy’s Desert Resource Center

i) Community Choice Aggregation: Business Plan/Feasibility Study Update

EXECUTIVE COMMITTEE MINUTES OF DECEMBER 5, 2016 PAGE 8

j) ATP Funding for CV Link

A discussion ensued regarding item 8g in relation to retention of emails. Mr. Kirk indicated that staff would take this issue to the TAC for discussion regarding member practices.

9. ANNOUNCEMENTS

Upcoming Meetings at 73-710 Fred Waring Drive, Suite 119, Palm Desert: Technical Advisory Committee – Monday, January 9, 2017 at 11:00 a.m. Executive Committee – Monday, January 30, 2017 at 4:30 p.m.

10. ADJOURNMENT

There being no further business, Chair Reed adjourned the meeting at 5:05 p.m.

Respectfully submitted,

Joanna Stueckle Joanna Stueckle Executive Assistant